[Title 48 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 1996 Edition]
[From the U.S. Government Printing Office]


          48



          Federal Acquisition Regulations System



[[Page i]]

          CHAPTERS 15 TO 28

          Revised as of October 1, 1996
          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF OCTOBER 1, 1996
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1996



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................     vii

  Title 48:
    Chapter 15--Environmental Protection Agency...............       3
    Chapter 16--Office of Personnel Management Federal 
        Employees Health Benefits Acquisition Regulation......     103
    Chapter 17--Office of Personnel Management................     143
    Chapter 18--National Aeronautics and Space Administration.     145
    Chapter 19--United States Information Agency..............     557
    Chapter 20--Nuclear Regulatory Commission.................     569
    Chapter 21--Office of Personnel Management, Federal 
        Employees Group Life Insurance Federal Acquisition 
        Regulation............................................     617
    Chapter 23--Social Security Administration................     651
    Chapter 24--Department of Housing and Urban Development...     655
    Chapter 25--National Science Foundation...................     699
    Chapter 28--Department of Justice.........................     707
  Finding Aids:
    Table of CFR Titles and Chapters..........................     757
    Alphabetical List of Agencies Appearing in the CFR........     773
    List of CFR Sections Affected.............................     783

[[Page iv]]



      



                                                                                                                
                                  ----------------------------------------------------------                    

  Cite this Code:  CFR                                                         
                                                                                                                
  To cite the regulations in this volume use title, part                       
  and section number. Thus, 48 CFR 1501.000 refers to                         
  title 48, part 1501, section 000.                                           
                                  ----------------------------------------------------------                    
                                                                                                                


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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 1996), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
in the Federal Register (Table II). A list of CFR titles, chapters, and 
parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408.
SALES
    The Government Printing Office (GPO) processes all sales and 
distribution of the CFR. For payment by credit card, call 202-512-1800, 
M-F 8 a.m. to 4 p.m. e.s.t. or fax your order to 202-512-2233, 24 hours 
a day. For payment by check, write to the Superintendent of Documents, 
Attn: New Orders, P.O. Box 371954, Pittsburgh, PA 15250-7954. For GPO 
Customer Service call 202-512-1803.

                              Richard L. Claypoole,
                                    Director,
                          Office of the Federal Register.

October 1, 1996.



[[Page vii]]



                               THIS TITLE

    Title 48--Federal Acquisition Regulations System is composed of 
eight volumes. The chapters in these volumes are arranged as follows: 
Chapter 1 (parts 1 to 51), chapter 1 (parts 52 to 99), chapter 2 (parts 
201 to 251 and parts 252 to 299), chapters 3 to 6, chapters 7 to 14, 
chapters 15 to 28 and chapter 29 to end. The contents of these volumes 
represent all current regulations codified under this title of the CFR 
as of October 1, 1996.

    The Federal acquisition regulations in chapter 1 are those 
government-wide acquisition regulations jointly issued by the General 
Services Administration, the Department of Defense, and the National 
Aeronautics and Space Administration. Chapters 2 through 99 are 
acquisition regulations issued by individual government agencies. Parts 
1 to 69 in each of chapters 2 through 99 are reserved for agency 
regulations implementing the Federal acquisition regulations in chapter 
1 and are numerically keyed to them. Parts 70 to 99 in chapters 2 
through 99 contain agency regulations supplementing the Federal 
acquisition regulations.

    The OMB control numbers for the Federal Acquisition Regulations 
System appear in section 1.106 of chapter 1. For the convenience of the 
user section 1.106 is reprinted in the Finding Aids section of the 
second volume containing chapter 1 (parts 52 to 99).

    The two volumes containing chapter 1 include an index to the Federal 
acquisition regulations. The second volume, containing chapter 1 (parts 
52 to 99), includes contract clauses and forms.

    For this volume, Ruth Reedy Green was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page viii]]



 
[[Page 1]]



            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM




                 (This book contains chapters 15 to 28)

  --------------------------------------------------------------------

                                                                    Part
Chapter 15--Environmental Protection Agency.................        1501
Chapter 16--Office of Personnel Management Federal Employees 
  Health Benefits Acquisition Regulation....................        1601
Chapter 17--Office of Personnel Management..................        1733
Chapter 18--National Aeronautics and Space Administration...        1801
Chapter 19--United States Information Agency................        1901
Chapter 20--Nuclear Regulatory Commission...................        2001
Chapter 21--Office of Personnel Management, Federal 
  Employees Group Life Insurance Federal Acquisition 
  Regulation................................................        2101
Chapter 23--Social Security Administration..................        2301
Chapter 24--Department of Housing and Urban Development.....        2401
Chapter 25--National Science Foundation.....................        2501
Chapter 28--Department of Justice...........................        2801

[[Page 3]]



               CHAPTER 15--ENVIRONMENTAL PROTECTION AGENCY




                          (Parts 1500 to 1599)

  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
1501            General.....................................           5
1502            Definition of words and terms...............           8
1503            Improper business practices and personal 
                    conflicts of interest...................           8
1504            Administrative matters......................          10
                   SUBCHAPTER B--ACQUISITION PLANNING
1505            Publicizing contract actions................          11
1506            Competition requirements....................          11
1508            Required sources of supply..................          12
1509            Contractor qualifications...................          13
1510            Specifications, standards, and other 
                    purchase descriptions...................          17
1512            Contract delivery or performance............          19
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
1513            Small purchases and other simplified 
                    purchase procedures.....................          20
1514            Sealed bidding..............................          21
1515            Contracting by negotiation..................          22
1516            Types of contracts..........................          36
1517            Special contracting methods.................          40
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
1519            Small business and small disadvantaged 
                    business concerns.......................          42
1520            Labor surplus area concerns.................          44
1522            Application of labor laws to government 
                    acquisitions............................          45

[[Page 4]]

1523            Environmental, conservation, occupational 
                    safety, and drug-free workplace.........          45
1524            Protection of privacy and freedom of 
                    information.............................          47
1525            Foreign acquisition.........................          47
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
1527            Patents, data, and copyrights...............          48
1529            Taxes.......................................          48
1530            Cost accounting standards...................          49
1531            Contract cost principles and procedures.....          49
1532            Contract financing..........................          49
1533            Protests, disputes and appeals..............          50
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
1535            Research and development contracting........          52
1536            Construction and architect-engineer 
                    contracts...............................          53
1537            Service contracting.........................          55
                    SUBCHAPTER G--CONTRACT MANAGEMENT
1542            Contract administration.....................          56
1545            Government property.........................          57
1546            Quality assurance...........................          58
1548            Value engineering...........................          58
                     SUBCHAPTER H--CLAUSES AND FORMS
1552            Solicitation provisions and contract clauses          60
1553            Forms.......................................          99

                Appendix I to chapter 15....................         101

[[Page 5]]



                          SUBCHAPTER A--GENERAL





PART 1501--GENERAL--Table of Contents




Sec.
1501.000  Scope of part.

              Subpart 1501.1--Purpose, Authority, Issuance

1501.101  Purpose.
1501.103  Applicability.
1501.104  Issuance.
1501.104-1  Publication and code arrangement.
1501.104-2  Arrangement of regulations.
1501.104-3  Copies.

             Subpart 1501.3--Agency Acquisition Regulations

1501.301  Policy.
1501.370  OMB approvals under the Paperwork Reduction Act.

                       Subpart 1501.4--Deviations

1501.401  Definition.
1501.403  Individual deviations.

       Subpart 1501.6--Contracting Authority and Responsibilities

1501.602-3  Ratification of unauthorized commitments.
1501.603  Selection, appointment, and termination of appointment.
1501.603-1  General.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8835, Mar. 8, 1984, unless otherwise noted.



Sec. 1501.000  Scope of part.

    The Federal Acquisition Regulation System brings together, in title 
48 of the Code of Federal Regulations, the acquisition regulations 
applicable to all executive agencies of the Government. This part 
establishes a system of Environmental Protection Agency (EPA) 
acquisition regulations, referred to as the EPAAR, for the codification 
and publication of policies and procedures of EPA which implement and 
supplement the Federal Acquisition Regulation (FAR).



              Subpart 1501.1--Purpose, Authority, Issuance



Sec. 1501.101  Purpose.

    This subpart establishes Chapter 15, the Environmental Protection 
Agency Acquisition Regulation (EPAAR), within Title 48, the Federal 
Acquisition Regulations System.

[60 FR 38505, July 27, 1995]



Sec. 1501.103  Applicability.

    The FAR and the EPAAR apply to all acquisitions as defined in part 2 
of the FAR, except where expressly excluded.
1501.104  Issuance.



Sec. 1501.104-1  Publication and code arrangement.

    The EPAAR will be published in: (a) The Federal Register, (b) 
cumulated form in the Code of Federal Regulations (CFR), and (c) a 
separate loose-leaf form in a distinctive light blue color.



Sec. 1501.104-2  Arrangement of regulations.

    (a) References and citations. This regulation may be referred to as 
the Environmental Protection Agency Acquisition Regulation or the EPAAR. 
References to EPAAR materials shall be made in a manner similar to that 
prescribed by FAR 1.104-2(c).



Sec. 1501.104-3  Copies.

    Copies of the EPAAR in Federal Register and CFR form may be 
purchased from the Superintendent of Documents, Government Printing 
Office (GPO), Washington, DC 20402. Copies of loose-leaf EPAAR are 
distributed within EPA and may be obtained from the EPA Facilities and 
Support Services Division.

[[Page 6]]



             Subpart 1503.3--Agency Acquisition Regulations



Sec. 1501.301  Policy.

    The EPAAR is prescribed by the Director, Office of Acquisition 
Management.

[49 FR 8835, Mar. 8, 1984, as amended at 59 FR 18976, Apr. 21, 1994]



Sec. Sec. 1501.370  OMB approvals under the Paperwork Reduction Act.

    The information collection activities contained in the EPAAR 
sections listed below have been approved by the Office of Management and 
Budget (OMB) and have been issued OMB numbers in accordance with section 
3504(h) of the Paperwork Reduction Act of 1980, 44 U.S.C. 3501, et seq.

------------------------------------------------------------------------
                                                             OMB control
                      48 CFR citation                            No.    
------------------------------------------------------------------------
  Specification, Standards and other Purchase Descriptions              
                                                                        
1510.011-70 through 1510.011-72............................    2030-0005
1510.011-80 through 1510.011-81............................    2030-0023
Contract delivery or performance 1512.104..................    2030-0023
                                                                        
  Small Purchase and Other Simplified Purchase Procedures               
                                                                        
1513.505 through 1513.570..................................    2030-0007
                                                                        
                     Contract Financing                                 
                                                                        
1532.170(a)................................................    2030-0016
                                                                        
        Solicitation Provisions and Contract Clauses                    
                                                                        
1552.209-71................................................    2030-0023
1552.209-73 through 1552.209-74............................    2030-0023
1552.210-72................................................    2030-0005
1552.210-80................................................    2030-0023
1552.212-71................................................    2030-0023
1552.215-72 through 1552.215-76............................    2030-0006
1552.227-76................................................    2030-0023
------------------------------------------------------------------------


[59 FR 18619, Apr. 19, 1994, as amended at 59 FR 32134, June 22, 1994; 
61 FR 29316, June 10, 1996]



                       Subpart 1501.4--Deviations



Sec. 1501.401  Definition.

    A deviation to the EPAAR is defined in the same manner as a 
deviation to the FAR (see FAR 1.401).

[49 FR 8835, Mar. 9, 1984; 49 FR 24734, June 15, 1984]



Sec. 1501.403  Individual deviations.

    Requests for individual deviations from the FAR and the EPAAR shall 
be submitted to the Head of the Contracting Activity (HCA) for approval. 
Requests submitted shall cite the specific part of the FAR or EPAAR from 
which it is desired to deviate; shall set forth the nature of the 
deviation(s); and shall give the reasons for the action requested. The 
HCA shall transmit copies of approved individual FAR deviations to the 
FAR Secretariat.



       Subpart 1501.6--Contracting Authority and Responsibilities



Sec. 1501.602-3  Ratification of unauthorized commitments.

    (a) Definition. Unauthorized commitment, as used in this subpart, 
means an agreement that is not binding solely because the Government 
representative who made it lacked the authority to enter into that 
agreement on behalf of the Government. The term does not relate to the 
Agency process for the reservation of funds.
    (b) Applicability. The provisions of this section apply to all 
unauthorized commitments, whether oral or written and without regard to 
dollar value. Examples of unauthorized commitments are;
    (1) Ordering supplies or services by an individual without 
contracting authority;
    (2) Unauthorized direction of work through assignment of orders or 
tasks;
    (3) Unauthorized addition of new work;
    (4) Unauthorized direction of contractors to subcontract with 
particular firms; or
    (5) Any other unauthorized direction which changed the terms and 
conditions of the contract.
    (c) Ratification approvals and concurrences. (1) The Chief of the 
Contracting Office is the ratifying official, provided that he/she has 
redelegable contracting authority.
    (2) For ratification actions which arise in regional offices or 
laboratory sites, the Chief of the Contracting Office to whom the 
activity functionally reports is the ratifying official.
    (3) All proposed ratification actions of $250,000 or more for which 
the Chief of the Contracting Office is not the ratifying official shall 
be forwarded for review to the responsible PCMD Associate Director prior 
to approval by the ratifying official.

[[Page 7]]

    (d) Procedures. (1) The program office shall notify the cognizant 
contracting office by memorandum of the circumstances surrounding an 
unauthorized commitment. The notification shall include:
    (i) All relevant documents and records;
    (ii) Documentation of the necessity for the work and benefit derived 
by the Government;
    (iii) A statement of the delivery status of the supplies or services 
associated with the unauthorized commitment;
    (iv) A list of the procurement sources solicited (if any) and the 
rationale for the source selected;
    (v) If only one source was solicited, a justification for other than 
full and open competition (JOFOC) as required by FAR 6.302, FAR 6.303, 
and 1506.303, or for small purchases exceeding the competition threshold 
in FAR 13.106, a sole source justification as required by 1513.170;
    (vi) A statement of steps taken or proposed to prevent reoccurrence 
of any unauthorized commitment.
    (2) The Division Director (or equivalent) of the responsible office 
shall approve the memorandum. If expenditure of funds is involved, the 
program office shall include a Procurement Request/Order, EPA Form 1900-
8, with funding sufficient to cover the action. The appropriation data 
cited on the 1900-8 shall be valid for the period in which the 
unauthorized commitment was made.
    (3) Upon receiving the notification, the Contracting Officer shall 
prepare a determination and findings regarding ratification of the 
unauthorized commitment for the ratifying official. The determination 
and findings shall include sufficient detail to support the recommended 
action. If ratification of the unauthorized commitment is recommended, 
the determination and findings shall include a determination that the 
price is fair and reasonable. To document the determination, additional 
information may be required from the Contractor. Concurrence by the 
Office of General Counsel is not mandatory, but shall be sought in 
difficult or unusual cases.
    (4) The ratifying official may inform the Inspector General (IG) of 
the action by memorandum through the Head of the Contracting Activity 
(HCA). For ratification actions exceeding the small purchase limitation, 
the ratifying official shall submit a memorandum to the Assistant 
Administrator for Administration and Resources Management through the 
HCA for transmittal to the Assistant, Associate, or Regional 
Administrator (or equivalent level) of the person responsible for the 
unauthorized commitment. This memorandum should contain a brief 
description of the circumstances surrounding the unauthorized 
commitment, recommend corrective action, and include a copy of any 
memorandum sent to the IG. Submission of a memorandum to the appropriate 
Assistant, Associate, or Regional Administrator for unauthorized 
commitments at or below the small purchase limitation is optional and 
may be accomplished at the discretion of the ratifying official.
    (e) Paid Advertisements. (1) EPA is generally not authorized to 
ratify improperly ordered paid advertisements. The ratifying official, 
however, may determine payment is proper subject to the limitations in 
FAR 1.602-3(c) if the individual responsible for the unauthorized 
commitment acted in good faith to comply with Agency acquisition 
policies and procedures.
    (2) The paying office shall forward invoice claims received in its 
office for improper paid advertisements to the cognizant ratifying 
official for a determination regarding ratification of the action.
    (3) If the ratifying official determines that an unauthorized 
commitment cannot be ratified by the Agency, the ratifying official 
shall instruct the submitter to present its claim to the General 
Accounting Office in accordance with the instructions contained in 4 CFR 
part 31, Claims Against the United States, General Procedures.
    (f) Payment of Properly Ratified Claims. After the unauthorized 
commitment is ratified, the Contractor must submit an invoice (or 
resubmit an invoice if one was previously submitted) citing

[[Page 8]]

the appropriate contract or purchase order number.

[55 FR 18340, May 2, 1990, as amended at 59 FR 18976, Apr. 21, 1994; 60 
FR 38505, July 27, 1995]
1501.603  Selection, appointment, and termination of appointment.



Sec. 1501.603-1  General.

    EPA Contracting Officers shall be selected and appointed and their 
appointments terminated in accordance with the Contracting Officer 
warrant program specified in chapter 8 of the EPA ``Contracts Management 
Manual.''



PART 1502--DEFINITION OF WORDS AND TERMS--Table of Contents




    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).



                       Subpart 1502.1--Definitions



Sec. 1502.100  Definitions.

    Chief of the Contracting Office (CCO) means the Office of 
Acquisition Management Division Directors at Headquarters, Research 
Triangle Park and Cincinnati.
    Head of the Contracting Activity (HCA) means the Director, Office of 
Acquisition Management.
    Legal Counsel means those attorneys assigned to the Contracts Law 
Branch and the Research Triangle Park General Counsel Branch, Office of 
the General Counsel and designated by the Assistant General Counsel as 
Contract Law Specialists.
    Procurement Executive (PE) means the Director, Office of Acquisition 
Management.

[59 FR 18977, Apr. 21, 1994]



PART 1503--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents




Sec.
1503.000  Scope of part.

                       Subpart 1503.1--Safeguards

1503.101  Standards of conduct.
1503.103  Independent pricing.

Subpart 1503.2--Contractor Gratuities to Government Personnel [Reserved]

  Subpart 1503.3--Reports of Suspected Antitrust Violations [Reserved]

                     Subpart 1503.4--Contingent Fees

1503.408  Evaluation of the SF 119.

      Subpart 1503.5--Other Improper Business Practices [Reserved]

  Subpart 1503.6--Contracts With Government Employees or Organizations 
                       Owned or Controlled by Them

1503.600-70  Scope of subpart.
1503.600-71  Definitions.
1503.601  Policy.
1503.602  Exceptions.
1503.670  Solicitation disclosure provision.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8837, Mar. 8, 1984, unless otherwise noted.



Sec. 1503.000  Scope of part.

    This part implements FAR part 3, cites EPA regulations on employee 
responsibilities and conduct, establishes responsibility for reporting 
violations and related actions, and provides for authorization of 
exceptions to policy.

[[Page 9]]



                       Subpart 1503.1--Safeguards

1503.101  Standards of conduct.
1503.103  Independent pricing.



Subpart 1503.2--Contractor Gratuities to Government Personnel [Reserved]



  Subpart 1503.3--Reports of Suspected Antitrust Violations [Reserved]



                     Subpart 1503.4--Contingent Fees

1503.408  Evaluation of the SF 119.



      Subpart 1503.5--Other Improper Business Practices [Reserved]



  Subpart 1503.6--Contracts with Government Employees or Organizations 
                       Owned or Controlled by Them



Sec. 1503.600-70  Scope of subpart.

    This subpart implements and supplements FAR subpart 3.6 and sets 
forth EPA policy and procedures for identifying and dealing with 
conflicts of interest and improper influence or favoritism in connection 
with contracts involving current or former EPA employees. This subpart 
does not apply to agreements with other departments or agencies of the 
Federal Government, nor to contracts awarded to State or local units of 
Government.



Sec. 1503.600-71  Definitions.

    (a) Regular employee means any officer or employee of EPA who is 
employed or appointed, with or without compensation, to serve more than 
130 days during any period of 365 consecutive days, including regular 
officers of the Public Health Service Commissioned Corps and reserve 
officers of the Public Health Service Commissioned Corps while on active 
duty.
    (b) Special employee means an officer or employee of EPA who is 
retained, designated, appointed or employed to perform, with or without 
compensation, temporary duties either on a full-time or intermittent 
basis for not more that 130 days during any period of 365 consecutive 
days and who actually served more than 60 days during such 365-day 
period.



Sec. 1503.601  Policy.

    (a) No contract may be awarded without competition to a former 
regular or special EPA employee (or to a business concern or other 
organization owned or substantially owned or controlled by a former 
employee) whose employment terminated within 365 calendar days before 
submission of a proposal to EPA.
    (b) No contract shall be awarded without competition to a firm which 
employs, or proposes to employ, a current regular or special EPA 
employee or a former EPA regular or special employee whose employment 
terminated within 365 calendar days before submission of a proposal to 
EPA, if either of the following conditions exits:
    (1) The current or former EPA regular or special employee is or was 
involved in development or negotiating the proposal for the prospective 
contractor.
    (2) The current or former EPA regular or special employee will be 
involved directly or indirectly in the management, administration, or 
performance of the contract.



Sec. 1503.602  Exceptions.

    The Assistant Administrator for Administration and Resources 
Management may authorize an exception, in writing, to the policy in FAR 
3.601 and 1503.601 for the reasons stated in FAR 3.602, if the exception 
would not involve a violation of 18 U.S.C. 203, 18 U.S.C. 205, 18 U.S.C. 
207, 18 U.S.C. 208, or EPA regulations at 40 CFR part 3. The Assistant 
Administrator shall consult with the Designated Agency Ethics Official 
before authorizing any exceptions.

[60 FR 38505, July 27, 1995]



Sec. 1503.670  Solicitation of disclosure provision.

    The Contracting Officer shall insert the provision at 1552.203-70, 
Current/Former Agency Employee Involvement

[[Page 10]]

Certification, in all solicitations for sole source acquisitions.

[50 FR 14357, Apr. 11, 1985]



PART 1504--ADMINISTRATIVE MATTERS--Table of Contents




                     Subpart 1504.8--Contract Files

Sec.
1504.804  Closeout of contract files.
1504.804-5  Detailed procedures for closing out contract files.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 28246, July 11, 1984, unless otherwise noted.



                     Subpart 1504.8--Contract Files

1504.804  Closeout of contract files.



Sec. 1504.804-5  Detailed procedures for closing out contract files.

    In addition to those procedures set forth in FAR 4.804-5, the 
contracting office shall, before final payment is made under a cost 
reimbursement type contract, verify the allowability, allocability, and 
reasonableness of costs claimed. Verification of total costs incurred 
should be obtained from the Office of Audit through the cost advisory 
group at the contracting office in the form of a final audit report. 
Similar verification of actual costs shall be made for other contracts 
when cost incentives, price redeterminations, or cost-reimbursement 
elements are involved. Termination settlement proposals shall be 
submitted to the cost advisory group at the contracting office for 
review by the Office of Audit as prescribed by FAR 49.107. All such 
audits will be coordinated through the cost advisory group in the 
contracting office. Exceptions to these procedures are the quick close-
out procedures as described in 1542.708 and Unit 2 of the EPA 
Acquisition Handbook.

[[Page 11]]



                   SUBCHAPTER B--ACQUISITION PLANNING





PART 1505--PUBLICIZING CONTRACT ACTIONS--Table of Contents




Sec.
1505.000  Scope of part.

          Subpart 1505.2--Synopses of Proposed Contract Actions

1505.202  Exceptions.
1505.203  Publicizing and response time.
1505.271  [Reserved].

                 Subpart 1505.4--Release of Information

1505.405  Exchange of acquisition information.

              Subpart 1505.5--Paid Advertisement [Reserved]

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8838, Mar. 8, 1984, unless otherwise noted.



Sec. 1505.000  Scope of part.

    This part provides instructions on publicizing contract 
opportunities and response time, instructions on information to include 
in the synopses of proposed contracts, instructions on publicizing 
orders under GSA schedule contracts, policy references relative to 
release of information, and procedures for obtaining information on 
previous Government contracts.

[50 FR 14357, Apr. 11, 1985]



          Subpart 1505.2--Synopses of Proposed Contract Actions



Sec. 1505.202  Exceptions.

    The Contracting Officer need not submit the notice required by FAR 
5.201 when the Contracting Officer determines in writing that the 
contract is for the services of experts for use in preparing or 
prosecuting a civil or criminal action under the Superfund Amendments 
and Reauthorization Act of 1986.

[60 FR 38505, July 27, 1995]



Sec. 1505.203  Publicizing and response time.

    (a) The Contracting Officer may, at his/her discretion under certain 
circumstances, elect to transmit a synopsis to the Commerce Business 
Daily (CBD) of a proposed contract action that falls within an exception 
to the synopsis requirement in FAR 5.202(a). For those contract actions, 
the Contracting Officer may provide for a lesser time period than the 15 
days required by FAR 5.203(a) and the 30 days required by FAR 5.203 (b) 
or (c), and the 45 days required by FAR 5.203(d). The Contracting 
Officer must identify the basis for the lesser time periods for response 
in the synopsis.
    (b) The authority for paragraph (a) does not extend to the synopsis 
of contract actions falling within the exception in FAR 5.202(a)(7), if 
to do so would disclose the originality of thought or innovativeness of 
the proposed research.

[50 FR 14357, Apr. 11, 1985]
1505.271  [Reserved]



                 Subpart 1505.4--Release of Information



Sec. 1505.405  Exchange of acquisition information.

    Contracting Officers shall insert the solicitation provision at 
1552.214-70 and 1552.215-72, Past Performance, to obtain information on 
previous Government contracts or subcontracts.



              Subpart 1505.5--Paid Advertisement [Reserved]



PART 1506--COMPETITION REQUIREMENTS--Table of Contents




Sec.
1506.000  Scope of part.

[[Page 12]]

  Subpart 1506.2--Full and Open Competition After Exclusion of Sources 
                               [Reserved]

          Subpart 1506.3--Other Than Full and Open Competition

1506.302-5  Authorized or required by statute.
1506.303-2  Content.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 50 FR 14357, Apr. 11, 1985, unless otherwise noted.



Sec. 1506.000  Scope of part.

    This part implements FAR part 6. It prescribes the Environmental 
Protection Agency policies and procedures in obtaining full and open 
competition in the acquisition process.



  Subpart 1506.2--Full and Open Competition After Exclusion of Sources 
                               [Reserved]



          Subpart 1506.3--Other Than Full and Open Competition



Sec. 1506.302-5  Authorized or required by statute.

    (a) Authority. Section 109(e) of the Superfund Amendments and 
Reauthorization Act of 1986 (SARA) is cited as authority.
    (b) Application. (1) The contracting officer may use other than full 
and open competition to acquire the services of experts for use in 
preparing or prosecuting a civil or criminal action under SARA whether 
or not the expert is expected to testify at trial. The contracting 
officer need not prepare the written justification under FAR 6.303 when 
acquiring expert services under the authority of section 109(e) of SARA. 
The contracting officer shall document the official contract file when 
using this authority.
    (2) The contracting officer shall give notice to the Agency's 
Competition Advocate whenever a contract award is made using other than 
full and open competitition under this authority. The notice shall 
contain a copy of the contract and the summary of negotiations.

[53 FR 31872, Aug. 22, 1988]



Sec. 1506.303-2  Content.

    The documentation requirements in this section apply only to 
acquisitions processed using other than small purchase procedures. 
(Refer to 1513.170 for documentation for small purchase acquisitions).
    (a) The initiating office shall prepare a written justification for 
other than full and open competition (JOFOC) that documents the facts 
and circumstances substantiating the infeasibility of full and open 
competition for each recommended limited sources or sole source 
acquisition when required by FAR 6.302.
    (b) The recommendation shall be entitled ``Justification for Other 
Than Full and Open Competition'' and shall be signed at the programmatic 
Division Director or comparable office level prior to submission with 
the procurement request. The JOFOC shall contain the information 
prescribed in FAR 6.303-2 (a) and (b).
    (c) If unusual and compelling urgency (see FAR 6.303-2) is a basis 
for the JOFOC, then the following applies. Explain the circumstances 
that led to the need for an urgent contractual action. Explain why the 
requirement could not have been processed in sufficient time to permit 
full and open competition. It should be noted that the existence of 
legislation, court order, or Presidential mandate is not, of itself, a 
sufficient basis for a JOFOC. However, the circumstances necessitating 
legislation, court order, or Presidential mandate may justify 
contractual action on an other than full and open competition basis.
    (d) If the proposed acquisition has been synopsized in accordance 
with the applicable requirements in FAR subpart 5.2, the Contracting 
Officer must incorporate the evaluation of responses to the synopsis in 
the JOFOC. (See 1506.371(d) for contents of the evaluation document).

[50 FR 14357, Apr. 11, 1985; 50 FR 15425, Apr. 18, 1985]



PART 1508--REQUIRED SOURCES OF SUPPLY--Table of Contents




    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

[[Page 13]]



      Subpart 1508.8--Acquisition of Printing and Related Supplies



Sec. 1508.870  Contract clause.

    Contracting Officers shall insert the contract clause at 1552.208-
70, Printing, in all contracts which require printing, duplication, 
binding, reproduction, and related services and are subject to the 
provisions of the Government Printing and Binding Regulations published 
by the Joint Committee on Printing, Congress of the United States.

[49 FR 8838, Mar. 8, 1984]



PART 1509--CONTRACTOR QUALIFICATIONS--Table of Contents




Sec.
1509.000  Scope of part.

           Subpart 1509.1--Responsible Prospective Contractors

1509.105  Procedures.

          Subpart 1509.170--Contractor Performance Evaluations

1509.170-1  Scope of subpart.
1509.170-2  Applicability.
1509.170-3  Purpose.
1509.170-4  Procedures.

        Subpart 1509.4--Debarment, Suspension, and Ineligibility

1509.403  Definitions.
1509.404  Consolidated list of debarred, suspended, and ineligible 
          contractors.
1509.406  Debarment.
1509.406-3  Procedures.
1509.407  Suspension.
1509.407-3  Procedures.

          Subpart 1509.5--Organizational Conflicts of Interest

1509.500  Scope of subpart.
1509.502  Applicability.
1509.503  Waiver.
1509.505-4  Obtaining access to proprietary information.
1509.505-70  Information sources.
1509.507-1  Solicitation provisions.
1509.507-2  Contract clause.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8839, Mar. 8, 1984, unless otherwise noted.



Sec. 1509.000  Scope of part.

    This part implements FAR part 9 and provides policy and procedures 
pertaining to contractor's responsibility; debarment, suspension, and 
ineligibility; and organizational conflicts of interest.



           Subpart 1509.1--Responsible Prospective Contractors

1509.105  Procedures.



          Subpart 1509.170--Contractor Performance Evaluations



Sec. 1509.170-1  Scope of subpart.

    This subpart establishes EPA policy and procedures for evaluation of 
contractor performance.



Sec. 1509.170-2  Applicability.

    The provisions of this subpart apply to: (a) All contracts for 
research and development and for services other than management 
consulting services when the contract amount is $25,000 and above, and 
(b) all contracts for management consulting services, without regard to 
dollar value. FAR 36.201 and 36.604 provide detailed instructions for 
conduct of construction and architect-engineering Contractor performance 
evaluation.



Sec. 1509.170-3  Purpose.

    The purpose of this subpart is to: (a) Provide an orderly and 
uniform method of determining and recording the effectiveness of 
contractors in meeting contractual obligations; (b) emphasize to 
contractors the importance of satisfying contractual obligations; (c) 
create within the EPA a record of contractor performance and a means for 
considering this record in future acquisition actions; and (d) provide a 
system for identifying contractors with a history of poor performance.



Sec. 1509.170-4  Procedures.

    (a) Use and preparation of forms. EPA Form 1900-26, Contracting 
Officer's Evaluation of Contractor Performance, and EPA Form 1900-27, 
Project Officer's Evaluation of Contractor Performance, shall be 
prepared at the completion of the technical effort of

[[Page 14]]

the contract or purchase order to record the effectiveness of 
contractors in meeting contractual obligations. Forms shall be prepared 
in accordance with the instructions printed on the back of each form.
    (b) Responsibilities for preparation of forms.
    (1) The Policy Training and, Oversight Division (PTOD), Office of 
Acquitition Management, 3802F shall originate EPA Form 1900-26 and EPA 
Form 1900-27 within two weeks after the completion of the technical 
effort of the contract or purchase order.
    (2) The Contracting Officer administering the contract shall prepare 
the business evaluation on EPA Form 1900-26; forward the original of the 
form to the Quality Assurance Branch, Office of Management 3802F, 
Washington, DC 20460; and retain a copy in the contract file.
    (3) The Project Officer with technical responsibility for the 
contract shall prepare the technical evaluation on EPA Form 1900-27; 
forward the form to the Quality Assurance Branch, Office of Acquisition 
Management, 3802F, Washington, DC 20460; and forward a copy to the 
Contracting Officer for insertion in the contract file.
    (c) Unsatisfactory performance ratings. The Contracting Officer 
shall apprise the Contractor of any overall rating of 
``unsatisfactory.'' If the Contractor submits comments in response to 
such a rating, the evaluator shall include the comments as an attachment 
to the evaluation form. Evaluators shall make appropriate changes to the 
performance evaluations if any are warranted by the Contractor's 
comments.
    (d) Review of evaluations. The Quality Assurance Branch, Office of 
Acquisition Management, shall review each evaluation as it is received, 
and compare it with recent evaluations submitted for the same 
Contractor. If the Quality Assurance Section discerns a pattern of 
unsatisfactory performance, it will notify the appropriate Contracting 
Officer for his/her possible action, which may include referral of the 
matter in accordance with 1509.406-3(a)(1).
    (e) Filing of forms. Evaluation forms shall be filed in the 
Contractor performance evaluation files maintained by the Quality 
Assurance, Office of Acquisition Management.
    (f) Release of ratings. Information on Contractors' performance 
ratings may be obtained by contacting the Quality Assurance Branch, 
Office of Acquisition Management. Contractors' performance ratings 
determined by the Contracting Officer and the Project Officer may be 
released to other Government agencies at their specific written request, 
and on condition that the information will not be made available outside 
of the Government. Requests for information on the ratings from 
individuals or entities outside of the Government shall be processed in 
accordance with the Freedom of Information Act and 40 CFR part 2.

[49 FR 8839, Mar. 8, 1984; 49 FR 24734, June 15, 1984, as amended at 59 
FR 18976, Apr. 21, 1994]



        Subpart 1509.4--Debarment, Suspension, and Ineligibility



Sec. 1509.403  Definitions.

    The Director, Grants Administration Division, is designated the 
``debarring official'' and the ``suspending official'' as defined in FAR 
9.403 and is designated as the agency official authorized to make the 
decisions required in FAR 9.405(a), 9.405-1(b), 9.405-2, 9.406-1(c), and 
9.407-1(d).



Sec. 1509.404  Consolidated list of debarred, suspended, and ineligible contractors.

    The Director, Grants Administration Division (or designee) is 
responsible for notifying GSA in accordance with FAR 9.404(c).
1509.406  Debarment.



Sec. 1509.406-3  Procedures.

    (a) Investigation and referral--(1) Contracting Officer 
responsibility. (i) When contracting personnel discover information 
which indicates that a cause for debarment or suspension may exist, they 
shall promptly report such information by memorandum to the cognizant 
Chief of the Contracting Office. Purchasing agents in the small purchase 
activities which do not come under the cognizance of the Headquarters, 
Research Triangle Park

[[Page 15]]

(RTP), or Cincinnati contracting offices shall report such information 
by memorandum directly to the Head of the Contracting Activity (HCA).
    (ii) Contracting Officers shall review the GSA consolidated list to 
ensure that the Agency does not solicit offers from, award contracts to, 
or consent to subcontract with listed contractors.
    (2) Chief of the Contracting Office responsibility. When the Chief 
of the Contracting Office determines that sufficient information exists 
to support the reasonable belief that a cause for debarment or 
suspension may exist, such information shall be promptly reported by 
memorandum to the HCA. The memorandum to the HCA may be a cover 
memorandum which forwards the Contracting Officer's memorandum and 
provides the Chief of the Contracting Office's assessment of the 
information, any investigative report or audit, and any additional 
information he/she has discovered.
    (3) HCA responsibility. Upon receipt of a report of a suspected 
debarment or suspension situation, the HCA or the designee shall take 
the following actions:
    (i) Notify the Debarring Official that investigation of a potential 
debarment has been initiated.
    (ii) Review the reported information.
    (iii) Investigate as necessary to verify or develop additional 
information. Request investigative support from the EPA Inspector 
General when appropriate.
    (iv) Refer the matter to the Debarring Official for consideration of 
debarment; or recommend to the Debarring Official that the matter be 
closed without further action because the facts do not constitute a 
cause for debarment.
    (v) Obtain legal counsel's opinion on referrals or recommendations 
made to the Debarring Official.
    (vi) Notify EPA Contracting Officers of those Contractors who are 
ineligible for solicitation, award, or subcontracting but who do not 
appear on the GSA Consolidated List; e.g., those who are ineligible 
based on a settlement reached by the Debarring Official under which the 
Contractor has agreed to voluntarily exclude itself from participation 
in Government contracting/subcontracting for a specified period or 
because of a Notice of Proposal to Debar.
    (4) Debarring Official's responsibility. The Debarring Official 
shall:
    (i) Review referrals from the HCA together with the HCA's 
recommendations, if any, and determine whether further consideration by 
the Debarring Official is warranted and take such actions as are 
required by FAR subpart 9.4;
    (ii) Obtain the HCA's recommendation prior to reaching a voluntary 
exclusion settlement with a Contractor in lieu of debarment;
    (iii) Promptly notify the HCA of Contractors with whom a settlement 
in lieu of debarment has been reached under which the Contractor 
voluntarily excludes itself from or restricts its participation in 
Government contracting/subcontracting for a specified period; and of 
Contractors who have received a Notice of Proposal to Debar.
1509.407  Suspension.



Sec. 1509.407-3  Procedures.

    The procedures prescribed in 1509.406-3(a) shall be followed under 
conditions which appear to warrant suspension of a Contractor.



          Subpart 1509.5--Organizational Conflicts of Interests



Sec. 1509.500  Scope of subpart.

    This subpart establishes EPA policy and procedures for identifying, 
evaluating, and resolving organizational conflicts of interest. EPA's 
policy is to avoid, neutralize, or mitigate organizational conflicts of 
interest. If EPA is unable to neutralize or mitigate the effects of a 
potential conflict of interest, EPA will disqualify the prospective 
contractor or will terminate the contract when potential or actual 
conflicts are identified after award.

[49 FR 8839, Mar. 8, 1984; 49 FR 24734, June 15, 1984]



Sec. 1509.502  Applicability.

    This subpart applies to all EPA contracts except agreements with 
other Federal agencies. However, this subpart applies to contracts with 
the

[[Page 16]]

Small Business Administration (SBA) under the 8(a) program.



Sec. 1509.503  Waiver.

    The Head of the Contracting Activity may waive any general rule or 
procedure of this subpart by determining that its application in a 
particular situation would not be in the Government's interest. Any 
request for waiver must be in accordance with FAR 9.503. The Assistant 
General Counsel for Contracts and Information Law shall be consulted on 
such waiver requests.

[49 FR 8839, Mar. 8, 1984, as amended at 61 FR 29316, June 10, 1996]



Sec. 1509.505-4  Obtaining access to proprietary information.

    Contractors gaining access to confidential business information of 
other companies in performing advisory services for EPA shall comply 
with the special requirements of 40 CFR part 2 and the provisions of 
their contracts relating to the treatment of confidential business 
information.



Sec. 1509.505-70  Information sources.

    (a) Disclosure. Prospective EPA Contractors responding to 
solicitations or submitting unsolicited proposals shall provide 
information to the Contracting Officer for use in identifying, 
evaluating, or resolving potential organizational conflicts of interest. 
The submittal may be a certification or a disclosure, pursuant to 
paragraph (a) (1) or (2) of this section.
    (1) If the prospective contractor is not aware of any information 
bearing on the existence of any organizational conflict of interest, it 
may so certify.
    (2) Prospective contractors not certifying in accordance with 
paragraph (a)(1) of this section must provide a disclosure statement 
which describes concisely all relevant facts concerning any past, 
present, or planned interests relating to the work to be performed and 
bearing on whether they, including their chief executives, directors, or 
any proposed consultant or subcontractor, may have a potential 
organizational conflict of interest.
    (b) Failure to disclose information. Any prospective contractor 
failing to provide full disclosure, certification, or other required 
information will not be eligible for award. Nondisclosure or 
misrepresentation of any relevant information may also result in 
disqualification from award, termination of the contract for default, or 
debarment from Government contracts, as well as other legal action or 
prosecution. In response to solicitations, EPA will consider any 
inadvertent failure to provide disclosure certification as a ``minor 
informality'' (as explained in FAR 14.405); however, the prospective 
contractor must correct the omission promptly.
    (c) Exception. Where the Contractor has previously submitted a 
conflict of interest certification or disclosure for a contract, only an 
update of such statement is required when the contract is modified.

[49 FR 8839, Mar. 8, 1994. Redesignated at 59 FR 18619, Apr. 19, 1994]



Sec. 1509.507-1  Solicitation provisions.

    (a) Advance notice of limitations. The Contracting Officer shall 
alert prospective contractors by placing a notice in the solicitation 
whenever a particular acquisition might create an organizational 
conflict of interest. The notice will:
    (1) Include the information prescribed in (FAR) 48 CFR 9.507-1;
    (2) Refer prospective contractors to this subpart; and
    (3) Require proposers to disclose relevant facts concerning any 
past, present, or currently planned interests relating to the work 
described in the solicitation.
    (b) Required solicitation provision. Except in solicitations where 
the Organizational Conflict of Interest provision is geared toward the 
particular acquisition (see 1509.507-1(a)(1)), the Contracting Officer 
shall include in all solicitations the provisions at 1552.209-70 and 
1552.209-72. The provision is optional in solicitations for small 
purchases.

[49 FR 8839, Mar. 8, 1994. Redesignated and amended at 59 FR 18619, Apr. 
19, 1994]



Sec. 1509.507-2  Contract clause.

    (a) The Contracting Officer shall include the clause at 1552.209-71 
in all contracts in excess of the small purchase limitation and, as 
appropriate, in small purchases. Contracts for other

[[Page 17]]

than Superfund work shall include Alternate I in this clause in lieu of 
paragraph (e).
    (b) The Contracting Officer shall include the clause at 1552.209-73 
in all solicitations and contracts for Superfund work in excess of the 
small purchase limitation and, as appropriate, in small purchases for 
Superfund work.
    (c) The Contracting Officer shall include the clause at 1552.209-74 
or its alternates in the following solicitations and contracts for 
Superfund work in excess of the small purchase limitation and, as 
appropriate, in small purchases for Superfund work. The Contracting 
Officer shall include the clause at 1552.209-74 in all Alternative 
Remedial Contracting Strategy (ARCS) solicitations and contracts, except 
Site Specific solicitations and contracts. Alternate I shall be used in 
all Time Critical Rapid Response (TCRR) solicitations and contracts, 
except site specific solicitations and contracts. The term ``TCRR'' in 
the Limitation of Future Contracting clauses includes not only TCRR 
solicitations and contracts but Emergency Response Cleanup Services 
(ERCS) and other emergency type solicitations and contracts. TCRR pilot 
scale studies are included in the term ``treatability studies''. 
Alternate II shall be used in all Technical Assistance Team (TAT) 
solicitations and contracts. Alternate III shall be used in all 
Environmental Services Assistance Team (ESAT) solicitations and 
contracts. Alternate IV shall be used in all Technical Enforcement 
Support (TES) solicitations and contracts. Alternate V shall be used in 
all Superfund Headquarters Support solicitations and contracts. The 
Contracting Officer is authorized to modify paragraph (c) of Alternate V 
to reflect any unique limitations applicable to the program 
requirements. Alternate VI shall be used in all Site Specific 
solicitations and contracts.
    (d) Clauses for incorporation into contracts existing as of May 19, 
1994 shall be negotiated by the EPA Contracting Officer, on a case-by-
case basis, and shall be substantially similar to those prescribed in 
this section.

[59 FR 18619, Apr. 19, 1994]



PART 1510--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE DESCRIPTIONS--Table of Contents




Sec.
1510.001  Definitions.
1510.002  Policy.
1510.007  Deviations.
1510.011  Solicitation provisions and contract clauses.
1510.011-70  Reports of work.
1510.011-71  [Reserved]
1510.011-72  Monthly progress report.
1510.011-73--1510.011-74  [Reserved]
1510.011-75  Working files.
1510.011-76  Legal analysis.
1510.011-77  Final reports.
1510.011-78  Management consulting services.
1510.011-79  Information Resources Management.
1510.011-80  Annual certification.

    Authority: Sec. 205(c), 63 Stat. 390; as amended, 40 U.S.C. 486(r).

    Source: 49 FR 8841, Mar. 8, 1984, unless otherwise noted.



Sec. 1510.001  Definitions.

    Information resources management (IRM) means any planning, 
budgeting, organizing, directing, training, promoting, controlling, and 
managing activities associated with the burden, collection, creation, 
use and dissemination of information. IRM includes both the information 
itself, and the management of information and related resources such as 
personnel, equipment, funds, and technology.

[56 FR 42236, Aug. 27, 1991]



Sec. 1510.002  Policy.

    Contractor compliance with EPA IRM policies is necessary for the 
efficient management of information and technology used to support EPA's 
mission. These policies provide the structure for the Agency's IRM 
program.

[56 FR 42236, Aug. 27, 1991]



Sec. 1510.007  Deviations.

    The CCO is the designated official responsible for ensuring that 
Federal specifications are used and that exceptions and deviations are 
justified in accordance with FAR 10.007(a).

[49 FR 8841, Mar. 8, 1984, as amended at 55 FR 24579, June 18, 1990; 59 
FR 18976, Apr. 21, 1994]

[[Page 18]]



Sec. 1510.011  Solicitation provisions and contract clauses.



Sec. 1510.011-70  Reports of work.

    Contracting Officers shall insert one of the contract clauses at 
1552.210-70 when the contract requires the delivery of reports. 
Alternate I should be used to specify reports in the contract schedule, 
whereas the other clause should be used when reports are specified in a 
contract attachment.
1510.011-71  [Reserved]



Sec. 1510.011-72  Monthly progress report.

    Contracting Officers shall insert a contract clause substantially 
the same as the clause at 1552.210-72 when monthly progress reports are 
required.

[61 FR 29316, June 10, 1996]
1510.011-73--1510.011-74  [Reserved]



Sec. 1510.011-75  Working files.

    Contracting Officers shall insert the contract clause at 1552.210-74 
in all applicable EPA contracts where accurate working files on all work 
documentation is required in the performance of the contract.

[49 FR 8841, Mar. 8, 1984. Redesignated at 55 FR 39622, Sept. 28, 1990]



Sec. 1510.011-76  Legal analysis.

    Contracting Officers shall insert the clause at 1552-210-75 when it 
is determined that the contract involves legal analysis.

[49 FR 8841, Mar. 8, 1984. Redesignated at 55 FR 39622, Sept. 28, 1990]



Sec. 1510.011-77  Final reports.

    Contracting Officers shall insert the contract clause at 1552.210-76 
when a contract requires both a draft and a final report.

[49 FR 8841, Mar. 8, 1984. Redesignated at 55 FR 39622, Sept. 28, 1990]



Sec. 1510.011-78  Management consulting services.

    Contracting Officers shall insert the contract clause at 1552.210-77 
in all contracts for management consulting services.

[49 FR 8841, Mar. 8, 1984. Redesignated at 55 FR 39622, Sept. 28, 1990]



Sec. 1510.011-79  Information Resources Management.

    The Contracting Officer shall insert the clause at 1552.210-79, 
Compliance with EPA Policies for Information resources management, into 
all solicitations and contracts.

[56 FR 42236, Aug. 27, 1991]



Sec. 1510.011-80  Annual certification.

    The Contracting Officer shall insert the clause at 1552.210-80 in 
Superfund solicitations and contracts in excess of the small purchase 
limitation, where the solicitation or contract does not include EPAAR 
1552.212-71, Work Assignments, Alternate I, or a similar clause 
requiring conflict of interest certifications during contract 
performance.

This clause requires an annual conflict of interest certification from 
contractors when the contract does not require the submission of other 
conflict of interest certifications during contract performance. 
Contracts requiring annual certifications include: Site Specific 
contracts and the Contract Laboratory Program (CLP) and the Sample 
Management Office (SMO) contracts.

The annual certification requires a contractor to certify that all 
organizational conflicts of interest have been reported, and that its 
personnel performing work under EPA contracts or relating to EPA 
contracts have been informed of their obligation to report personal and 
organizational conflicts of interest to the Contractor. The annual 
certification shall cover the one-year period from the date of contract 
award for the initial certification, and a one-year period since the 
previous certification for subsequent certifications. The certification 
must be received by the Contracting Officer no later than 45 days after 
the close of the certification period covered.

[59 FR 18619, Apr. 19, 1994]

[[Page 19]]



PART 1512--CONTRACT DELIVERY OR PERFORMANCE--Table of Contents




    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).



            Subpart 1512.1--Delivery or Performance Schedules



Sec. 1512.104  Contract clauses.

    (a) The Contracting Officer shall insert the clause at 1552.212-70, 
Level of Effort, in term form contracts.
    (b) The Contracting Officer shall insert the contract clause at 
1552.212-71, Work Assignments, in cost-reimbursement type term form 
contracts when work assignments are used. For Superfund contracts, 
except for contracts which require annual conflict of interest 
certifications (e.g., Site Specific contracts and the Contract 
Laboratory Program (CLP) and Sample Management Office (SMO) contracts), 
the Contracting Officer shall use the clause with either Alternate I or 
Alternate II. Alternate I shall be used for contractors who have at 
least 3 years of records that may be searched for certification 
purposes. Alternate II shall be used for contractors who do not have at 
least three years of records that may be searched.

[49 FR 8842, Mar. 8, 1984, as amended at 59 FR 18619, Apr. 19, 1994]

[[Page 20]]



          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES





PART 1513--SMALL PURCHASES AND OTHER SIMPLIFIED PURCHASE PROCEDURES--Table of Contents




                         Subpart 1513.1--General

Sec.
1513.106  Competition and price reasonableness.
1513.170  Competition exceptions and justification for sole source small 
          purchase acquisitions.
1513.170-1  Contents of sole source justifications.
1513.170-2  Approval.
1513.170-3  Exceptions.

                      Subpart 1513.4--Imprest Fund

1513.404  Conditions for use.

                     Subpart 1513.5--Purchase Orders

1513.505  Purchase order and related forms.
1513.505-2  Agency order forms in lieu of Optional Forms 347 and 348.
1513.507  Clauses.
1513.570  Oral purchase orders.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8842, Mar. 8, 1984, unless otherwise noted.



                         Subpart 1513.1--General



Sec. 1513.106  Competition and price reasonableness.

    Solicitation mailing lists shall be established and maintained by 
the three major contracting offices: Headquarters in Washington, DC, 
Cincinnati, and Research Triangle Park. Contracting personnel at 
regional and laboratory locations are authorized to use the lists 
maintained by any of these offices (see 1514.205-1).
1513.170  Competition exceptions and justification for sole source small 
purchase acquisitions.



Sec. 1513.170-1  Contents of sole source justifications.

    The program office submitting the procurement request must submit, 
as a separate attachment, a brief written statement in support of any 
sole source acquisition. The statement must cite one or more of the 
circumstances in FAR 6.302, and the necessary facts to support each 
circumstance. Although program offices may not cite the authority in FAR 
6.302-7, the public interest may be used as a basis to support a sole 
source acquisition. If the acquisition has been synopsized as a notice 
of proposed sole source acquisition, the statement must include the 
results of the evaluation of responses to the synopsis. (See 1505.270 
for contents of a synopsis of a proposed sole source acquisition).

[50 FR 14359, Apr. 11, 1985]



Sec. 1513.170-2  Approval.

    The Contracting Officer is the approving official for all sole 
source acquisitions processed using small purchase procedures.

[50 FR 14359, Apr. 11, 1985]



Sec. 1513.170-3  Exceptions.

    A written justification is not required for the following types of 
acquisitions: (a) Acquisitions under mandatory Federal Supply Schedule 
or mandatory ADP and TSP schedules; and (b) acquisitions required by 
statute to be obtained from a specific source, such as the National 
Industries for the Blind or Other Severely Handicapped or Federal Prison 
Industries.

[50 FR 14359, Apr. 11, 1985]



                      Subpart 1513.4--Imprest Fund



Sec. 1513.404  Conditions for use.

    Imprest funds may be used for small purchases when the transaction 
does not exceed $500 ($750 under emergency conditions).

[55 FR 48623, Nov. 21, 1990]

[[Page 21]]



                     Subpart 1513.5--Purchase Orders

1513.505  Purchase order and related forms.



Sec. 1513.505-2  Agency order forms in lieu of Optional Forms 347 and 348.

    Contracting Officers may use the EPA Form 1900-8, Procurement 
Request/Order, in lieu of Optional Forms 347 and 348 for individual 
purchases prepared in accordance with the instructions printed on the 
reverse thereof (see 1553.213-70).



Sec. 1513.507  Clauses.

    (a) It is the general policy of the Environmental Protection Agency 
that Contractor or vendor prescribed leases or maintenance agreements 
for equipment shall not be executed.
    (b) The Contracting Officer shall, where appropriate, insert the 
clause at 1552.213-70, Notice to Suppliers of Equipment, in orders for 
purchases or leases of automatic data processing equipment, word 
processing, and similar types of commercially available equipment for 
which vendors, as a matter of routine commercial practice, have 
developed their own leases and/or customer service maintenance 
agreements.



Sec. 1513.570  Oral purchase orders.

    (a) Except as noted in paragraph (c) of this section, Contracting 
Officers should issue oral purchase orders for supplies or services for 
competitive acquisitions whose estimated value is $25,000 or less. Oral 
orders reduce procurement leadtime and costs associated with processing 
purchase orders; therefore, files must be documented to substantiate why 
an oral order was not used if the following conditions are present:
    (1) Supplies or services are readily available.
    (2) Specifications are not detailed and terms are not complex.
    (3) The vendor will accept an oral order and does not require 
written confirmation of the order.
    (b) When an oral order is placed the Contracting Officer shall 
document the file to include the following:
    (1) An abstract of offers (for competitive acquisitions);
    (2) Adequate sole source justification (for noncompetitive 
requirements);
    (3) The date the order was placed;
    (4) The purchase order number;
    (5) The vendor's name, address and phone number;
    (6) The procurement amount;
    (7) Delivery and discount terms;
    (8) A record showing that the vendor was advised of all applicable 
FAR and EPAAR clauses.
    (9) A record showing that one copy of the purchase order was 
distributed to the originator, the commitment clerk, the servicing 
finance office and the shipping/receiving officer.
    (c) Oral purchase orders shall not be used for--
    (1) Acquisitions for construction over $2,000.
    (2) Acquisitions for services over $2,500 which are subject to the 
Service Contract Act.

[56 FR 32518, July 17, 1991, as amended at 60 FR 21993, May 4, 1995]



PART 1514--SEALED BIDDING--Table of Contents




Sec.
1514.000  Scope of part.

                  Subpart 1514.2--Solicitation of Bids

1514.201  Preparation of invitations for bids.
1514.201-6  Solicitation provisions.
1514.201-7  Contract clauses.
1514.205  Solicitation mailing lists.
1514.205-5  Release of solicitation mailing lists.

          Subpart 1514.4--Opening of Bids and Award of Contract

1514.404  Rejection of bids.
1514.406  Mistakes in bids.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8843, Mar. 8, 1984, unless otherwise noted.



Sec. 1514.000  Scope of part.

    This part implements and supplements FAR part 14 by providing 
additional guidance regarding the development of lists of qualified 
bidders, including small and disadvantaged business sources, and by 
requiring additional information from bidders that will be used in 
evaluating bids for award.

[[Page 22]]



                  Subpart 1514.2--Solicitation of Bids

1514.201  Preparation of invitations for bids.



Sec. 1514.201-6  Solicitation provisions.

    (a) The Contracting Officer shall insert the solicitation provision 
at 1552.214-70, Past Performance, in all invitations for bids.
    (b) The Contracting Officer shall insert the solicitation provision 
at 1552.214-71, Contract Award-Other Factors-Sealed Bidding, in 
invitations for bids when it is appropriate to describe other factors 
that will be used in evaluating bids for award.

[50 FR 14359, Apr. 11, 1985]



Sec. 1514.201-7  Contract clauses.

    The CCO is authorized to waive the inclusion of the clauses at FAR 
52.214-27 and 52.214-28, in accordance with FAR 14.201-7.

[55 FR 24579, June 18, 1990, as amended at 58 FR 18976, Apr. 21, 1994]
1514.205  Solicitation mailing lists.



Sec. 1514.205-5  Release of solicitation mailing lists.

    EPA installations shall make the solicitation mailing list, 
established under 1514.205-1, available to the public and Contractors 
during normal business hours.



          Subpart 1514.4--Opening of Bids and Award of Contract

1514.404  Rejection of bids.
1514.406  Mistakes in bids.



PART 1515--CONTRACTING BY NEGOTIATION--Table of Contents




Sec.
1515.000  Scope of part.

  Subpart 1515.4--Solicitation and Receipt of Proposals and Quotations

1515.407  Solicitation provisions.
1515.413  Disclosure and use of information before award.

                  Subpart 1515.5--Unsolicited Proposals

1515.506  Agency procedures.
1515.507  Contracting methods.

                    Subpart 1515.6--Source Selection

1515.600  Scope of subpart.
1515.602  Applicability.
1515.603  Purpose.
1515.604  Responsibilities and duties.
1515.604-70  Personal conflicts of interest.
1515.605  Evaluation factors.
1515.608  Proposal evaluation.
1515.609  Competitive range.
1515.611  Best and final offers.
1515.612  Formal source selection.

                    Subpart 1515.8--Price Negotiation

1515.804  Cost or pricing data.

                         Subpart 1515.9--Profit

1515.900  Scope of subpart.
1515.902  Policy.
1515.905  Profit-analysis factors.
1515.970  EPA structured approach for developing profit or fee 
          objectives.
1515.970-1  General.
1515.970-2  EPA structured system.
1515.970-3  Documentation.

Subpart 1515.10--Preaward, Award, and Postaward Notifications, Protests, 
                         and Mistakes [Reserved]

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8843, Mar. 8, 1984, unless otherwise noted.



Sec. 1515.000  Scope of part.

    This part implements and supplements FAR part 15. It prescribes the 
Environmental Protection Agency policies and procedures for contracting 
for supplies and services by negotiations.



  Subpart 1515.4--Solicitation and Receipt of Proposals and Quotations



Sec. 1515.407  Solicitation provisions.

    (a) In addition to those provisions prescribed in FAR 15.407, the 
Contracting Officer shall insert in negotiated solicitations the 
provisions at--
    (1) 1552.215-73, Instructions for the Preparation of Technical and 
Cost or

[[Page 23]]

Pricing Proposals (use Alternate I [Reserved]; Alternate II for cost-
reimbursable, level of effort contracts when the Government's 
requirement is for fully dedicated staff for a twelve month period(s) 
and performance is on a Government facility; or Alternate III for cost-
reimbursable, level of effort contracts when the Government's 
requirement is for fully dedicated staff for a twelve month period(s) 
and performance is not on a Government facility;
    (2) 1552.215-76, General Financial and Organizational Information.
    (b) The Contracting Officer shall insert the provision at 1552.215-
74, Cost Proposal Instructions, in negotiated solicitations when cost or 
pricing data is required in an offeror's proposal and it is necessary to 
obtain the detailed cost data specified in the provision. While designed 
to obtain cost data for acquisitions under the Comprehensive 
Environmental Response, Compensation and Liability Act, the provision 
may be used in other negotiated solicitations.

[49 FR 8843, Mar. 8, 1984, as amended at 54 FR 36980, Sept. 26, 1989; 58 
FR 45846, Aug. 31, 1993; 61 FR 47065, Sept. 6, 1996]



Sec. 1515.413  Disclosure and use of information before award.

    (a) Contracting Officers shall follow the Alternate II proposal 
evaluation procedures in FAR 15.413-2.
    (b) After receipt of proposals, none of the information contained in 
them or concerning the number or identity of offerors shall be made 
available to the public or to anyone in the Government not having a 
legitimate interest. In the event an outside evaluation is to be 
obtained, information in proposals or information concerning the number 
or identity of offerors shall be disclosed only to the extent authorized 
by and in accordance with the procedures of FAR 15.413-2(f) and these 
regulations, 1515.413.
    (c) During the preaward or preacceptance period of a negotiated 
acquisition, only the contracting officer, the contracting officer's 
superiors having contractual authority, and others specifically 
authorized shall transmit technical or other information and conduct 
discussions with prospective contractors. Information shall not be 
furnished to a prospective contractor if, alone or together with other 
information, it may afford the prospective contractor an advantage over 
others (see FAR 15.610, Written or oral discussion). However, general 
information that is not prejudicial to others may be furnished upon 
request.
    (d) The Chief of the Contracting Office (CCO) is the designated 
official to make the decision as provided by FAR 15.413-2(f)(1).
    (e) The Contracting Officer shall submit a written determination to 
the CCO whenever the use of FAR 15.413-2(f) procedures is contemplated. 
Following CCO approval, proposals may be released to non-Government 
employees for review and evaluation consistent with the provisions of 
FAR 15.413-2(f)(2)-(5).
    (f) The following written certification and agreement shall be 
obtained from the non-Government evaluator prior to the release of any 
proposal to that evaluator:

          CERTIFICATION ON THE USE AND DISCLOSURE OF PROPOSALS

RFP____________________________________________________________________
Offeror_________________________________________________________________
    1. I hereby certify that to the best of my knowledge and belief, no 
conflict of interest exists that may diminish my capacity to perform an 
impartial, technically sound, objective review of this proposal(s) or 
otherwise result in a biased opinion or unfair competitive advantage.
    2. I agree to use any proposal information only for evaluation 
purposes. I agree not to copy any information from the proposal(s), to 
use my best effort to safeguard such information physically, and not to 
disclose the contents of nor release any information relating to the 
proposal(s) to anyone outside of the Source Evaluation Board assembled 
for this acquisition or individuals designated by the Contracting 
Officer.
    3. I agree to return to the Government all copies of proposals, as 
well as any abstracts, upon completion of the evaluation.

_______________________________________________________________________
(Name and Organization)

_______________________________________________________________________
(Date of Execution)

                          (End of Certificate)

    (g) The Contracting Officer shall place the Government Notice for 
Handling Proposals (FAR 15.413-2(e)) on the

[[Page 24]]

cover pages of all proposals upon their receipt.

[53 FR 38293, Sept. 30, 1988]



                  Subpart 1515.5--Unsolicited Proposals



Sec. 1515.506  Agency procedures.

    The Director, Grants Administration Division (3903F), EPA, 401 M 
Street SW., Washington, DC 20460, is the Agency contact point 
established to coordinate the receipt and handling of unsolicited 
proposals.

[49 FR 8843, Mar. 8, 1984, as amended at 60 FR 21993, May 4, 1995]



Sec. 1515.507   Contracting methods.

    The Department of Housing and Urban Development-Independent Agencies 
Appropriation Act contains a requirement that none of the funds provided 
in the Act may be used for payment through grants or contracts to 
recipients that do not share in the cost of conducting research 
resulting from proposals that are not specifically solicited by the 
Government. Accordingly, contracts which result from unsolicited 
proposals shall provide for the Contractor to bear a portion of the cost 
of performance for work subject to the Act. However, where there is no 
measurable gain to the performing organization, cost sharing is not 
required.



                    Subpart 1515.6--Source Selection



Sec. 1515.600  Scope of subpart.

    This subpart establishes EPA policies and procedures for the source 
evaluation and selection processes in competitive negotiated 
acquisitions.



Sec. 1515.602  Applicability.

    FAR subpart 15.6 and this subpart apply to all competitive 
negotiated acquisitions in excess of $25,000, except architect 
engineering services which are covered in 1536.6.

[50 FR 14359, Apr. 11, 1985]



Sec. 1515.603  Purpose.

    EPA personnel shall conduct source evaluation and selection in 
accordance with consistent standards and procedures that ensure fair and 
impartial treatment of all offerors.



Sec. 1515.604  Responsibilities and duties.

    In addition to those cited in FAR 15.604, the following 
responsibilities and duties are assigned:
    (a) Source Selection Official. The Source Selection Official (SSO) 
is the official responsible for overall management of the source 
selection process. Duties of the SSO include, but are not limited to, 
appointing members and chairpersons of the Source Evaluation Board, the 
Technical Evaluation Panel (TEP), and the Business Evaluation Panel 
(BEP); and approving solicitation related documents. However, the 
Contracting Officer is responsible for approving amendments to 
solicitation documents. The SSO may waive in writing the requirement in 
1515.612(a)(1)(v) for at least one member of the TEP to be an individual 
not involved in managing the current contract. The SSO also approves the 
competitive range determination and makes the source selection decision.
    (b) Source Evaluation Board. The Source Evaluation Board (SEB) 
consists of a chairperson who is responsible for all of the procedural 
and administrative aspects of the SEB, and other specialists, e.g., 
technical, procurement, and financial, as may be deemed appropriate by 
the SSO. An attorney from the Office of General Counsel should serve in 
an advisory role to the SEB. The SEB makes recommendations to the SSO on 
selection of a contractor for award.
    (c) Technical Evaluation Panel (TEP). The Program Office has the 
responsibility for developing the technical evaluation criteria and 
statement of work for the solicitation. The TEP has the responsibility 
for evaluating the technical aspects of the offerors' technical 
proposals. Based on the recommendation of the Program Office, the SSO 
has the discretion of assigning this evaluation responsibility to the 
Project Officer, if appropriate, or to the TEP. When offerors' past 
performance is evaluated as part of the technical proposal evaluation 
process, the past performance evaluation shall be

[[Page 25]]

conducted by the TEP, or by the Contracting Officer and the Project 
Officer. Based on input from the Project Officer, the Contracting 
Officer has the discretion of assigning this responsibility to the TEP 
or to the Contracting Officer and Project Officer.
    (d) Business Evaluation Panel (BEP). (1) Outside of the technical 
review, the Contracts Office has the lead for reviewing solicitation 
evaluation criteria and the Statement of Work from a business 
perspective; evaluating the business, pricing, and contractual aspects 
of the offerors' business and technical proposals; and examining other 
factors such as the responsibility of the offerors. Based on the 
recommendation of the Contracting Officer, the SSO has the discretion to 
designate these responsibilities to the Contracting Officer or 
designating a BEP. Sections 1515.612(a)(1) (vi) and (vii) are applicable 
only when the SSO has designated a BEP.
    (2) When no BEP is convened, the Contracting Officer shall perform a 
preliminary cost evaluation of each offeror's cost/price proposal to 
identify any cost elements that appear unreasonable or questionable. 
When cost analysis is employed, the Contracting Officer shall perform a 
detailed cost analysis of the business proposal which includes an 
evaluation of the offeror's subcontracting program, management 
structure, and any other relevant factors which may prevent award to an 
offeror. This analysis may be included in a separate report, in the 
competitive range determination, or in the pre/post-negotiation 
memorandum.

[49 FR 8843, Mar. 8, 1984, as amended at 55 FR 24579, June 18, 1990; 59 
FR 18976, Apr. 21, 1994; 61 FR 47065, Sept. 6, 1996]



Sec. 1515.604-70  Personal conflicts of interests.

    (a) Only regular or special Government employees of EPA as defined 
in 40 CFR 3.102, or where appropriate, other Federal Government 
agencies, may participate in the evaluation and selection process. In 
the event an outside evaluation is to be obtained, non-Government 
employees may participate only if the procedures in FAR 15.413-2(f) and 
1515.413 are followed.
    (b) Each EPA employee (including special employees) engaged in 
source evaluation and selection is required to be familiar with the 
provisions of 40 CFR part 3 regarding personal conflicts of interests. 
The employee shall inform the Source Selection Official in writing if 
his/her participation in the source evaluation and selection process 
could be interpreted as a possible or apparent conflict of interest. The 
SSO shall relieve any EPA employee who has a conflict of interest of 
further duties in connection with the evaluation and selection process.
    (c) Each EPA employee (including special employees (as defined by 
1503.600-71 (b)) involved in source evaluation and selection is required 
to comply with the Office of Government Ethics ethics provisions at 5 
CFR Part 2635.

[49 FR 8843, Mar. 8, 1984, as amended at 53 FR 38293, Sept. 30, 1988; 61 
FR 47066, Sept. 6, 1996]



Sec. 1515.605  Evaluation factors.

    The evaluation factors that will be considered in making the source 
selection and their relative importance shall be included in ``Part IV, 
Section M, Evaluation Factors for Award,'' in each solicitation.
    (a) The Contracting Officer shall insert the provisions at 1552.215-
70, ``EPA Source Evaluation and Selection Procedures--Negotiated 
Procurement'' and either: the provision in 1552.215-71, ``Evaluation 
Factors for Award,'' where all evaluation factors other than cost or 
price when combined are significantly more important than cost or price; 
or the provision in Alternate I to 1552.215-71, where all evaluation 
factors other than cost or price when combined are significantly less 
important than cost or price; or the provision in Alternate II to 
1552.215-71, where award will be made to the offeror with the lowest-
evaluated cost or price whose technical proposal meets the minimum needs 
of the Government; or the provision in Alternate III where all 
evaluation factors other than cost or price when combined are 
approximately equal to cost or price. The Contracting Officer may use 
provisions substantially the same as 1552.215-71, Alternate I to 
1552.215-71, Alternate II to 1552.215-71, or Alternate

[[Page 26]]

III to 1552.215-71 without requesting a deviation to the EPAAR.
    (b) Technical evaluation criteria should be prepared in accordance 
with FAR 15.605 and inserted into paragraph (b) of the provision at 
1552.215-71, Alternate I, and Alternate III. If technical evaluation 
criteria are used in Alternate II, the criteria should be prepared in 
accordance with FAR 15.605 and inserted into paragraph (b). When past 
performance is to be used as an evaluation factor, the Contracting 
Officer must develop criteria for evaluating past performance and 
include such criteria in section M of the solicitation.
    (c) Evaluation Methodologies. Evaluation criteria may be developed 
using methodologies other than numerical scoring, e.g., adjectival 
ratings or color scoring. The relative importance of the evaluation 
criteria must be clearly identified in the solicitation. The Contracting 
Officer should identify and prepare evaluation criteria consistent with 
FAR 15.605.

[49 FR 8843, Mar. 8, 1984, as amended at 61 FR 47066, Sept. 6, 1996]



Sec. 1515.608  Proposal evaluation.

    (a) The initial technical evaluations of proposals shall be 
conducted in accordance with the following procedures.
    (1) Technical proposals shall be evaluated solely on the factors 
specified in the solicitation and in accordance with FAR 15.608. 
Additionally, the evaluation of technical proposals (including past 
performance factors) shall be accomplished using the scoring plan shown 
below or one specifically developed for the solicitation. Contracting 
Officers may request that the TEP also indicate whether proposals are 
acceptable or unacceptable, and/or whether the offerors' response to 
individual criteria are acceptable or unacceptable.

                              Scoring Plan                              
------------------------------------------------------------------------
              Value                        Descriptive statement        
------------------------------------------------------------------------
0...............................  The factor is not addressed, or is    
                                   totally deficient and without merit. 
1...............................  The factor is addressed, but contains 
                                   deficiencies and/or weaknesses that  
                                   can be corrected only by major or    
                                   significant changes to relevant      
                                   portions of the proposal, or the     
                                   factor is addressed so minimally or  
                                   vaguely that there are widespread    
                                   information gaps. In addition,       
                                   because of the deficiencies,         
                                   weaknesses, and/or information gaps, 
                                   serious concerns exist on the part of
                                   the TEP about the offeror's ability  
                                   to perform the required work.        
2...............................  Information related to the factor is  
                                   incomplete, unclear, or indicates an 
                                   inadequate approach to, or           
                                   understanding of the factor. The TEP 
                                   believes there is question as to     
                                   whether the offeror would be able to 
                                   perform satisfactorily.              
3...............................  The response to the factor is         
                                   adequate. Overall, it meets the      
                                   specifications and requirements, such
                                   that the TEP believes that the       
                                   offeror could perform to meet the    
                                   Government's minimum requirements.   
4...............................  The response to the factor is good    
                                   with some superior features.         
                                   Information provided is generally    
                                   clear, and the approach is acceptable
                                   with the possibility of more than    
                                   adequate performance.                
5...............................  The response to the factor is superior
                                   in most features.                    
------------------------------------------------------------------------

    (2) Ranking. The assignment of numerical scores to a technical 
proposal establishes the relative rank of that proposal with respect to 
those of other offerors. The use of pre-established cut-off scores to 
determine the competitive range or the source to be selected is 
prohibited. Each member of the TEP shall independently evaluate and 
score each offer. The TEP Chairperson shall develop a consensus opinion 
on the scores assigned to each offer. The averaging of individual TEP 
member's scores to arrive at an overall panel score is prohibited.
    (3) The goal of the technical evaluation is to understand each 
offeror's proposal and to assess each proposal relative to the specified 
evaluation factors. The TEP report(s) should address any perceived 
strengths, as well as any perceived weaknesses or deficiencies, and 
risks associated with the offerors' performance. Scores may or may not 
change from the initial evaluation to the supplemental evaluation, 
depending on the offerors' response to interrogatories. The supplemental 
TEP report must explain the rationale for no change in score, as well as 
any decrease or increase in score as a result of the offerors' response 
to interrogatories.
    (b) Technical evaluation panel report of initial offers. The TEP 
shall deliver

[[Page 27]]

their report to the Contracting Officer upon completion of the 
evaluation of initial offers.
    (1) The TEP report shall include: (i) A detailed scoring of each 
offer received and a narrative summary of facts and findings of 
significant strengths, weaknesses, and risks associated with each offer. 
The narrative summary and the score must be consistent. Score sheets 
prepared by each individual panel member must be made available upon the 
Contracting Officer's request. For contracts valued at $500,000 or less, 
the Chairperson of the TEP may use the short form technical evaluation 
format (EPA Form 1900-61); and
    (ii) Any interrogatories the Contracting Officer should submit to 
offerors to clarify their technical proposals to address any weaknesses, 
deficiencies, or questions associated with their technical proposals. 
The Contracting Officer may review the technical proposals and TEP 
evaluation, and submit any additional interrogatories deemed 
appropriate.
    (2)(i) A statement that the respective technical evaluation panel 
members are free from actual or potential personal conflicts of 
interest, and are in compliance with the Office of Government Ethics 
ethics provisions at 5 CFR Part 2635.
    (ii) Any information which might reveal that a offeror has an actual 
or potential organizational conflict of interest.
    (3) The Contracting Officer may release the cost/price proposals to 
the entire TEP or solely to the TEP Chairperson, after the TEP has 
completed its evaluation of initial proposals. The TEP or Chairperson 
should evaluate cost/price proposals to determine whether the offerors' 
cost/price proposals adequately reflect their technical proposals and 
the requirements of the solicitation, and demonstrate that the proposed 
price or cost provides an adequate understanding of the requirements of 
the solicitation. Any inconsistencies between the proposals and the 
solicitation requirements should be identified. Any inconsistencies 
between the cost and technical proposals should also be identified.
    (c) Safeguarding information. The following procedures are 
prescribed for protecting source selection information.
    (1) Offerors' identities, offer contents, and prices shall be 
treated with the utmost discretion to avoid compromising the evaluation 
results or giving any offeror an unfair competitive advantage. Any 
questions regarding the receipt and distribution of offers, status of 
the proceedings, or other matters shall be referred to the Contracting 
Officer or designated contract specialist.
    (2) After receipt of proposals, the contract specialist shall 
serially number all proposal copies received, distribute the required 
number of proposal copies to the TEP and BEP, and be responsible for the 
collection and final disposal of proposal copies. The panel chairpersons 
shall maintain a log of proposal distribution within the TEP and BEP. 
The contract specialist shall destroy all excess copies of proposals in 
a timely manner. The original copy of each unsuccessful proposal should 
be retained by the contract specialist as a reference in conducting 
debriefings. A minimum of two copies of the successful proposal should 
be retained (contract file copy/Project Officer file copy) for reference 
in administering the contract. Final disposition of the file shall be 
accomplished in accordance with FAR subpart 4.8, and the EPA ``Records 
Management Manual.''
    (d) Rejection of proposals. The Competition Advocate is authorized 
to make the determination in FAR 15.608(b).

[49 FR 8843, Mar. 8, 1984, as amended at 50 FR 14359, Apr. 11, 1985; 59 
FR 18976, Apr. 21, 1994; 60 FR 38505, July 27, 1995; 61 FR 29316, June 
10, 1996; 61 FR 47066, Sept. 6, 1996 ]



Sec. 1515.609  Competitive range.

    (a) The Contracting Officer shall prepare the determination of the 
competitive range for the subsequent concurrence of the SSO. Where there 
is reasonable doubt regarding the inclusion of a particular offer within 
the competitive range, that doubt should be resolved in favor of 
inclusion. All determinations must be completely documented to support 
the competitive range decision.

[[Page 28]]

    (b) When the procurement action is expected to exceed $5,000,000 
($25,000,000 for ADP and Superfund), the SSO may call for an oral 
briefing by the Contracting Officer prior to concurrence on the 
competitive range decision.
    (c)(1) When a single proposal is the only proposal in the 
competitive range, as part of the required discussion in the competitive 
range determination, Contracting Officers shall address at a minimum the 
following factors: Whether the requirement could have been broken up 
into smaller components; whether the solicitation provided adequate 
response time; whether the requirement could have been satisfied with 
reduced staffing levels (discussion may be combined with the first 
factor); and if applicable, whether the work required on-site could 
otherwise be performed at a contractor's facility, avoiding the cost and 
logistical implications of relocating employees.
    (2) In cases where only a single proposal has been received and a 
competitive range determination has not been prepared, the discussion of 
the reasons for receipt of the single proposal which otherwise would be 
contained in the competitive range determination shall be included in 
the source selection document. The discussion in the source selection 
document at a minimum shall address the factors referenced in paragraph 
(c)(1) of this section.
    (3) The Contracting Officer shall provide a copy of the competitive 
range determination or source selection document to the Competition 
Advocate after approval of the determination or document by the 
designated Source Selection Official.

[49 FR 8843, Mar. 8, 1984, as amended at 55 FR 24579, June 18, 1990; 59 
FR 18976, Apr. 21, 1994; 61 FR 47067, Sept. 6, 1996]



Sec. 1515.611  Best and final offers.

    The Contracting Officer shall establish a common cut-off date for 
receipt of revised proposals and/or confirmations of negotiations (best 
and final offers) upon completion of negotiations.

[61 FR 47067, Sept. 6, 1996]



Sec. 1515.612  Formal source selection.

    (a) Responsibilities for evaluation and selection. The Source 
Selection Official (SSO) shall appoint the SEB, TEP, and BEP members 
prior to issuance of the solicitation to allow the members to 
participate in the development and review of the solicitation document. 
Appointments should be recommended in the source selection plan prepared 
by the Contracting Officer in accordance with FAR 15.612(c). Individuals 
involved in the evaluation and selection process shall be at the levels 
specified below.
    (1) Acquisitions having a potential value exceeding $15,000,000 
($25,000,000 for ADP and Superfund):
    (i) SSO--CCO
    (ii) SEB Chairperson--Branch Chief or as otherwise designated by the 
CCO.
    (iii) SEB Membership--The SSO will determine the organizational 
levels of the individuals to serve on the SEB.
    (iv) TEP Chairperson--The SSO will determine, based on the 
recommendation of the requesting program office, the Chairperson of the 
TEP. For recompetes or follow-on contracts, the Chairperson should 
normally not be the incumbent contract's Project Officer.
    (v) TEP Membership--At least two members, in addition to the Project 
Officer, who are knowledgeable of the procurement's technical aspects. 
If the procurement is a follow-on to an existing contract, at least one 
of the TEP members should be someone who is not involved in managing the 
current contract, preferably from outside of the program division which 
originated the requirement. See 1515.604(a) for waiver of this 
requirement.
    (vi) BEP Chairperson--Contracting Officer (CO).
    (vii) BEP Membership--Contract specialist and cost/price analyst.
    (2) Acquisition having a potential value of $15,000,000 or less 
($25,000,000 or less for ADP and Superfund):
    (i) SSO--To be determined by the Chief of the Contracting Office, 
unless otherwise restricted in his/her delegation of procurement 
authority.
    (ii) SEB--An SEB need be established only when requested by the 
program office or determined necessary by the SSO. The SSO shall 
determine the organizational levels of the individuals to serve on the 
SEB.

[[Page 29]]

    (iii) TEP and BEP chairpersons and memberships shall be constituted 
as in paragraphs (a)(1)(iv) through (vii) of this section. (For 
contracts valued at $500,000 or less, the Project Officer may be the 
only member of the TEP and the Contracting Officer or contract 
specialist may be the only member of the BEP.)
    (b) Source selection decision--(1) Source Evaluation Board Report. 
In procurements where an SEB is convened, the SEB shall provide the SSO 
with a report on its findings. The report shall be submitted after 
completion of discussions or full negotiations, depending on the source 
selection method employed, and shall include:
    (i) A description of the acquisition;
    (ii) A summary of the significant strengths, weaknesses, and risks 
associated with each offer still in the competitive range. This summary 
shall generally be an independent assessment of the facts and findings 
appearing in the TEP and BEP reports. The SEB report contains 
recommendations for selection; and
    (iii) A statement that the SEB members are free from actual or 
potential personal conflicts of interest.
    (2) Source selection. (i) The Contracting Officer shall prepare the 
source selection decision for the SSO's subsequent approval. The 
decision shall document the consideration given to price or cost, 
technical merit, and other factors contained in the solicitation. These 
other factors (e.g., record of prior performance, the offeror's 
subcontracting plan, etc.) may be used as the unscored discriminating 
elements for determining the selection of a source between two otherwise 
substantially equal offers from both a cost and technical standpoint.
    (ii) The SEB report to the SSO may serve as the source selection 
decision provided the recommendation of the SEB is accepted by the SSO 
and the SEB report includes the information required by 
1515.612(b)(2)(i).
    (c) Source Selection Plan. No separate source selection plan is 
required. The Contracting Officer may include the information required 
by FAR 15.612(c) in the individual acquisition plan.

[49 FR 8843, Mar. 8, 1984, as amended at 55 FR 24579, June 18, 1990; 59 
FR 18976, Apr. 21, 1994; 60 FR 21993, May 4, 1995; 61 FR 47067, Sept. 6, 
1996]



                    Subpart 1515.8--Price Negotiation

1515.804  Cost or pricing data.



                         Subpart 1515.9--Profit



Sec. 1515.900  Scope of subpart.

    This subpart implements FAR subpart 15.9 and prescribes the EPA 
structured approach for determining profit or fee prenegotiation 
objectives.



Sec. 1515.902  Policy.

    (a) EPA structured approach. FAR 15.902 requires that agencies use a 
structured approach for determining the profit or fee objective in those 
acquisitions that require cost analysis. The structured approach 
prescribed in 1515.970 shall be used by EPA Contracting Officers in 
developing a prenegotiation profit or fee objective except as provided 
in paragraph (b)(1) of this section. The purpose of the structured 
approach is:
    (1) To provide a standard method of evaluation;
    (2) To ensure consideration of all relative factors;
    (3) To provide a basis for documentation and explanation of the 
profit negotiation objective;
    (4) To allow Contractors to earn profits commensurate with the 
assumption of risk;
    (5) To reward Contractors who provide their own facilities, 
financing and personnel; and
    (6) To reward Contractors who undertake more difficult work 
requiring higher risks.
    (b)(1) Other methods. Contracting Officers may use methods other 
than those prescibed in 1515.970 for estabishing profit or fee 
objectives under the following circumstances.
    (i) Architect-engineering contracts;
    (ii) Personal or professional service contracts;

[[Page 30]]

    (iii) Management contracts, e.g., for maintenance or operation of 
Government facilities;
    (iv) Termination settlements;
    (v) Engineering services, labor-hour, time and materials contracts 
which provide for payment on a man-hour, man-day, or man-month basis, 
and where the contribution by the Contractor constitutes the furnishing 
of personnel rather than the output of an integrated research, 
engineering, or manufacturing operation;
    (vi) Construction contracts; and
    (vii) Cost-plus-award-fee contracts.
    (2) Generally, it is expected that such methods will:
    (i) Provide the Contracting Officer with a technique that will 
ensure consideration of the relative value of the appropriate profit 
factors described under ``Profit Factors,'' and
    (ii) Serve as a basis for documentation of the objective.
    (c) Under unusual circumstances, the CCO may specifically waive the 
requirement for the use of the guidelines. Such exceptions shall be 
justified in writing and authorized only in situations where the 
guidelines method is determined to be unsuitable.
    (d) Limitations. In the event that any of the methods used would 
result in establishing a fee objective in violation of limitations 
established by statute (see FAR 15.903(d), the maximum fee objective 
shall be the percentage allowed pursuant to such limitations. No 
administrative ceilings on profits or fees shall be established.

[49 FR 8843, Mar. 8, 1984; 49 FR 24734, June 15, 1984, as amended at 55 
FR 24579, June 18, 1990; 59 FR 18976, Apr. 21, 1994]



Sec. 1515.905  Profit-anaylsis factors.

    Profit-analysis factors prescribed in the EPA structured approach in 
analyzing profit or fee include those prescribed by FAR 15.905-1 and 
additional factors authorized by FAR 15.905-2 to foster achievement of 
program objectives. These profit or fee factors are prescribed in 
1515.970-2.
1515.970  EPA structured approach for developing profit or fee 
objectives.



Sec. 1515.970-1  General.

    (a) It is the policy of the Agency to utilize profit to attract 
Contractors who possess talents and skills necessary to the 
accomplishment of the objectives of the EPA and to stimulate efficient 
contract performance. In negotiating profit/fee, it is necessary that 
all relative factors be considered, and that fair and reasonable amounts 
be negotiated which give the Contractor a profit objective commensurate 
with the nature of the work to be done, the Contractor's input to the 
total performance, and the risks assumed by the Contractor.
    (b) To properly reflect differences among contracts and the 
circumstances relating thereto and to select an appropriate relative 
profit/fee in consideration of these differences and circumstances, 
weightings have been developed for application by the Contracting 
Officer to standard measurement bases representative of the prescribed 
profit factors cited in FAR 15.905 and paragraph 1515.970-2(a)(1). Each 
profit factor or subfactor, or component thereof, has been assigned 
weights relative to their value to the contract's overall effort and the 
range of weights to be applied to each profit factor.



Sec. 1515.970-2  EPA structured system.

    (a)(1) Profit factors. The factors set forth below and the weighted 
ranges listed after each factor shall be used in all instances where the 
profit is to be specifically negotiated.

                 Contractor's Input to Total Performance                
------------------------------------------------------------------------
              Direct materials                  Weight range (percent)  
------------------------------------------------------------------------
Purchases...................................  1 to 4  .                 
Subcontracts................................  1 to 5  .                 
Equipment...................................  1 to 2  .                 
Engineering labor...........................  8 to 15 .                 
Engineering overhead........................  6 to 9  .                 
Manufacturing labor.........................  5 to 9  .                 
Manufacturing overhead......................  4 to 7  .                 
Consultants.................................  2 to 5  .                 
Other direct costs..........................  1 to 3  .                 
General and administrative expenses.........  5 to 8  .                 

[[Page 31]]

                                                                        
Contractor's assumptions of contract cost     0 to 6  .                 
 risk.                                                                  
Record of contractor's performance..........  -2 to +2.                 
  Cost efficiency                                                       
  Management                                                            
  Extent of investment                                                  
  Reliability of cost estimates                                         
  Inventive and developmental contributions                             
  Timely performance                                                    
  Small business participation                                          
  Labor surplus area participation                                      
  Extent of Government assistance                                       
  Effect of competition                                                 
------------------------------------------------------------------------

    (2) The Contracting Officer shall first measure the ``Contractor's 
Input to Total Performance'' by the assignment of a profit percentage 
within the designated weight ranges to each element of contract cost 
recognized by the Contracting Officer. Such costs are multiplied by the 
specific percentages to arrive at specific dollar profits. The amount 
calculated for facilities capital cost of money shall not be included as 
part of the cost base for the computation of profit or fee. A complete 
discussion of how facilities capital cost of money is determined and how 
it is applied and administered is set forth in FAR 31.205-10.
    (3) After computing a total dollar profit for the Contractor's Input 
to Total Performance, the Contracting Officer shall calculate the 
specific profit dollars assigned for cost risk and performance. This is 
accomplished by multiplying the total Government cost objective, 
exclusive of any facilities capital cost of money, by the specific 
weight assigned to cost risk and performance. The Contracting Officer 
shall then determine the profit or fee objective by adding the total 
profit dollars for the Contractor's Input to Total Performance to the 
specific dollar profits assigned to cost risk and performance. The 
profit or fee objective shall then be reduced by an amount equal to the 
amount of facilities capital cost of money allowed. EPA Form 1900-2 
shall be used to facilitate the calculation of this profit or fee 
objective.
    (4) The weight factors shown are designed for arriving at profit or 
fee objectives for other than nonprofit and not-for-profit 
organizations. Adjustments as explained below are to be made to reflect 
differences between profit and nonprofit organizations.
    (i) For purposes of this subparagraph, nonprofit and not-for-profit 
organizations are defined as those business entities organized and 
operated exclusively for charitable, scientific or educational purposes, 
no part of the net earnings of which inure to the benefit of any private 
shareholder or individual, no substantial part of the activities of 
which is carrying on propaganda or otherwise attempting to influence 
legislation or participating in any political campaign on behalf of any 
candidate for public office, and which are exempt from Federal income 
taxation under section 51 of the Internal Revenue Code.
    (ii) For contracts with nonprofit and not-for-profit organizations 
where fees are involved, the following adjustments are required:
    (A) A special factor of -3 percent shall be assigned in all cases.
    (B) The weighted ranges from ``Record of Contractor's Performance'' 
shall be halved, i.e., -1 percent to +1 percent rather than -2 percent 
to +2 percent.
    (b) Assignment of values to specific factors--(1) General. In making 
his/her judgment of the value of each factor, the Contracting Officer 
should be governed by the definition, description, and purpose of the 
factors together with considerations for evaluating them as set forth 
herein.
    (2) Contractor's input to total performance. This factor is a 
measure of how much the Contractor itself is expected to contribute to 
the overall effort necessary to meet the contract performance 
requirements in an efficient manner. This factor, which is apart from 
the Contractor's responsibility for contract performance, takes into 
account what resources are necessary and what the Contractor itself must 
do to accomplish a conversion of ideas and materials into the final item 
called for in the contract. This is a recognition that within a given 
performance output, or within a given sales dollar figure, necessary 
efforts on the part of individual contractors can vary widely in both 
value and quantity, and that the profit

[[Page 32]]

objective should reflect the extent and nature of the Contractor's 
contribution to total performance. Greater profit opportunity should be 
provided under contracts requiring a high degree of professional and 
managerial skill and to prospective contractors whose skills, 
facilities, and technical assets can be expected to lead to efficient 
and economical contract performance. The evaluation of this factor 
requires an analysis of the cost content of the proposed contract as 
follows:
    (i) Direct materials (purchased parts, subcontracted items, and 
other material). Analysis of these cost items shall include an 
evaluation of the managerial and technical effort necessary to obtain 
the required purchased parts, subcontracted items, and other materials. 
This evaluation shall include consideration of the number of orders and 
suppliers, and whether established sources are available or new sources 
must be developed. The Contracting Officer shall also determine whether 
the Contractor will, for example, obtain the materials by routine orders 
or readily available supplies (particularly those of substantial value 
in relation to the total contract costs), or by detailed subcontracts 
for which the prime Contractor will be required to develop complex 
specifications involving creative design or close tolerance 
manufacturing requirements. Consideration should be given to the 
managerial and technical efforts necessary for the prime Contractor to 
administer subcontracts, and select subcontractors, including efforts to 
break out subcontracts from sole sources, through the introduction of 
competition. These determinations should be made for purchases of raw 
materials or basic commodities, purchases of processed material 
including all types of components of standard or near-standard 
characteristics, and purchases of pieces, assemblies, subassemblies, 
special tooling, and other products special to the end-item. In the 
application of this criterion, it should be recognized that the 
contribution of the prime Contractor to its purchasing program might be 
substantial. This might be applicable in the management of 
subcontracting programs involving many sources, involving new complex 
components and instrumentation, incomplete specifications, and close 
surveillance by the prime Contractor's representative. Recognized costs 
proposed as direct material cost such as scrap charges shall be treated 
as material for profit evaluation. If intracompany transfers are 
accepted at price, in accordance with FAR 31.205-26(e), they should be 
excluded from the fee computation. Other intracompany transfers shall be 
evaluated by individual components of cost, i.e., material, labor, and 
overhead. Normally, the lowest weight for direct material is 2 percent. 
A weighting of less than 2 percent and would be appropriate only in 
unusual circumstances when there is a minimal contribution by the 
Contractor in relation to the total cost of the material.
    (ii) Equipment. It is the policy of the Agency to contract with 
individuals or firms who have special capabilities relative to the needs 
of the EPA. These capabilities include personnel with particular skills, 
or talents, and facilities (plant and equipment) necessary to complete 
the contract objectives. For the purpose of profit/fee analysis, 
equipment includes purchased items which are not to be an integral part 
of the final product. It would generally consist of production or test 
equipment. Where the EPA has to provide equipment to be Contractor 
either as Government-furnished equipment or Contractor-acquired 
equipment, appropriate profit/fee adjustments are necessary. Generally, 
a low weight range shall be assigned to the cost of such equipment (1 to 
2 percent).
    (iii) Engineering labor and manufactuirng labor. Analysis of the 
engineering labor and manufacturing labor items of the cost content of 
the contract should include evaluation of the comparative quality and 
level of the engineering talents, manufacturing skills, and experience 
to be employed. In evaluating engineering labor for the purpose of 
assigning profit dollars, consideration should be given to the amount of 
notable scientific talent or unusual or scarce engineering talent needed 
in contrast to journeyman engineering effort or supporting personnel. 
The diversity, or lack thereof, of scientific and engineering 
specialties required for contract performance and

[[Page 33]]

the corresponding need for engineering supervision and coordination 
should be evaluated. Similarly, the variety of manufacturing labor 
skills required and the Contractor's manpower resources for meeting 
these requirements should be considered. For the purpose of profit/fee 
computation, manufacturing labor includes all nonprofessional labor, 
e.g., secretaries, technicians and carpenters, etc.
    (iv) Engineering overhead, manufacturing overhead, and general and 
administrative expenses. (A) Where practicable, analysis of these 
overhead items of costs should include the evaluation of the make up of 
the expenses and how much they contribute to contract performance. This 
analysis should include a determination of the amount of labor within 
these overhead pools and how this labor would be treated if it were 
considered as direct labor under the contract. The allocable labor 
elements should be given the same profit consideration that they would 
receive if they were treated as direct labor. The other elements of 
these overhead pools should be evaluated to determine whether they are 
routine expenses such as utilities, depreciation, and maintenance, and 
hence given lesser profit consideration given the pools as a whole.
    (B) It is not necessary that the Contractor's accounting system 
break down its overhead expenses within the classification of 
engineering overhead, manufacturing overhead, and general and 
administrative expenses. The Contractor whose accounting system only 
reflects one overhead rate on all direct labor need not change its 
system to correspond with all the above classifications. Where 
practicable, the Contracting Officer in his/her evaluation of such a 
Contractor's overhead rate should break out the applicable sections of 
the composite rate which could be classified as engineering overhead, 
manufacturing overhead, and general and administrative expenses and 
follow the appropriate evaluation technique. When it is not practicable 
to evaluate the elements of the burden pool, the following rates should 
usually apply:

------------------------------------------------------------------------
                                                                 Percent
------------------------------------------------------------------------
Engineering overhead..........................................       7.5
Manufacturing overhead........................................       5.5
Composite overhead............................................       6.5
G&A...........................................................       6.5
------------------------------------------------------------------------

    (C) It is not necessary for the Contracting Officer to make a 
separate profit evaluation of overhead expenses in connection with each 
procurement action for substantially the same product with the same 
contractor. Once an analysis of the profit weight to be assigned the 
overhead pool has been made, the weight assigned may be used for future 
procurements with the same contractor until there is a change in the 
cost composition of the overhead pool or the contract circumstances.
    (v) Consultants. Consultant costs, whether related to an individual 
consultant or consulting firm should be analyzed from the standpoint of 
what talents and skills the consultants have and how they will be used 
on the contract. The analysis should consider if the Contractor normally 
should be expected to have people with comparable expertise employed as 
full-time staff or if the contract requires skills not normally 
available on an employer-employee relationship. Where the Contractor is 
using consultants to perform services which could normally be expected 
to be done in-house, the rating factor should be generally below 2 to 3 
percent. Where noted experts are retained for consultation on the 
contract, the rating will generally be higher.
    (vi) Other direct costs. Items of costs, such as travel, 
subsistence, printing, and computers should generally be assigned a 
rating of 1 to 3 percent. The analysis of these costs should be similar 
to the analysis of direct materials.
    (3) Contractor's assumption of contract cost risk. (i) It is the 
policy of the Administration to shift the risk of contract costs to the 
fullest extent practicable to contractors and to compensate them for the 
assumption of this risk. Evaluation of this risk requires a 
determination of:
    (A) The degree of cost responsibility the Contractor assumes, (B) 
the reliability of the cost estimates in relation to the task assumed, 
and (C) the chance of the Contractor's success or failure. This factor 
is specially limited

[[Page 34]]

to the risk of contract costs. Thus, such risks of losing potential 
profits in other fields are not within the scope of this factor.
    (ii) The first and basic determination of the degree of cost 
responsibility assumed by the Contractor is related to the sharing of 
total risk of contract cost by the Government and the Contractor through 
the selection of contract type. The extremes are a cost-plus-fixed-fee 
contract requiring only that the Contractor use its best efforts to 
perform a task, and a firm-fixed-price contract for a complex item. Such 
cost-plus-fixed-fee contract would reflect a minimum assumption of cost 
responsibility, whereas such firm-fixed-price contract would reflect a 
complete assumption of cost responsibility. Therefore, in the first step 
of determining what value is to be given for the Contractor's assumption 
of contract cost risk, a zero rating shall be given to a proposed cost-
plus-fixed-fee best efforts contract, and a higher rating shall be given 
to a closely priced firm-fixed-price contract for a new, complex item.
    (iii) The second determination is that of the reliability of the 
cost estimates. Sound price negotiation requires well-defined contract 
objectives and reliable cost estimates. An excessive cost estimate 
reduces the possibility that the cost of performance will exceed the 
contract price, thereby reducing the Contractor's assumption of contract 
cost risk.
    (iv) The third determination is that of the difficulty of the 
Contractor's task. The Contractor's task can be difficult or easy, 
regardless of the type of contract.
    (v) Contractors are likely to assume greater cost risks only if the 
Contracting Officers objectively analyze the risk incident to proposed 
contracts and are willing to compensate Contractors for it. Generally, a 
cost-plus-fixed-fee contract would not justify a reward for risk in 
excess of 1 percent, nor would a firm-fixed-price contract justify a 
reward of less than 4 percent. Where proper contract type selection has 
been made, the reward for risk by contract type would usually fall into 
the following percentages ranges:

------------------------------------------------------------------------
              Type of contract                    Percentage ranges     
------------------------------------------------------------------------
Cost-plus-fixed-fee........................  0 to 1.                    
Cost-plus-incentive-fee including cost       1 to 2.                    
 incentives only.                                                       
Cost-plus-incentive-fee including cost,      2\1/2\ to 3.               
 performance, and delivery incentives.                                  
Fixed-price-incentive including cost         2 to 4.                    
 incentives only.                                                       
Fixed-price-incentive including cost,        3 to 5.                    
 performance, and delivery incentives.                                  
Prospective price determination............  4 to 5.                    
Firm-fixed-price...........................  4 to 6.                    
------------------------------------------------------------------------

    (A) These ranges may not be appropriate for all procurement 
situations. For instance, a fixed-price-incentive contract which is 
closely priced with a low ceiling price and a high incentive share may 
be tantamount to a firm-fixed-price contract. In this situation, the 
Contracting Officer might determine that a basis exists for high 
confidence in the reasonableness of the estimate, and that little 
opportunity exists for cost reduction without extraordinary efforts. The 
Contractor's willingness to accept ceilings on their burden rates should 
be considered as a risk factor for cost-plus-fixed-fee contracts.
    (B) In making a contract cost risk evaluation in a procurement 
action that involves definitization of a letter contract, consideration 
should be given to the effect on total contract cost risk as a result of 
having partial performance under a letter contract. Under some 
circumstances, it may be reasoned that the total amount of cost risk has 
been effectively reduced by the existence of a letter contract. Under 
other circumstances, it may be apparent that the Contractor's cost risk 
remained substantially as great as though a letter contract had not been 
used. Where a Contractor has begun work under an anticipatory cost 
letter, the risk assumed is greater than the normal situation. To be 
equitable the determination of a profit weight for application to the 
total of all recognized costs, both those incurred and those yet to be 
expended, must be made with consideration to all attendant 
circumstances, not just to the portion of costs incurred or percentages 
of work completed, prior to definitization.

[[Page 35]]

    (4) Record of contract performance. (i) The purpose of this factor 
is to motivate Contractors to improve their performance by rewarding 
them for excellent past performance and penalizing them for poor 
performance. Effective use of this factor requires that: (A) Reports on 
the various aspects of past performance be obtained and evaluated; and 
(B) this information be used in such a way as to motivate Contractors to 
improve their performance.
    (ii) The evaluation of a particular Contractor's past performance 
and the importance placed upon the various subfactors listed below 
should be done in such a way as to motivate the Contractor to improve 
its performance. For instance, it might be pointless, in evaluating the 
performance of an autonomous division of a multidivisional contractor, 
to place emphasis on the performance of another autonomous division. 
Under such circumstances, the management of the division being evaluated 
might have no means of controlling the performance of the other 
division; therefore, emphasis on this performance by assigning a plus or 
minus rating to this factor might have a negative effect upon motivation 
to improve.
    (iii) The weight to be assigned to this factor is arrived at on a 
judgment basis rather than an arithmetical averaging of weights assigned 
to all factors, depending upon the particular procurement situation, and 
the relative importance of the various factors. For example, an 
evaluation of a particular Contractor may indicate that its performance 
was satisfactory in most areas, except that it showed a preference for 
doing all work in-house and a disinclination to support Government small 
business objectives. In such a case the Contracting Officer may feel 
that the importance of these factors might justify the assignment of a 
lower overall rating for the record of past performance.
    (iv) As stated above, the purpose of this factor is to reward a 
Contractor for excellent past performance and penalize it for poor 
performance. Therefore, performance which is rated as merely 
satisfactory should generally be assigned a weight of zero. However, a 
Contractor who has consistently met contractual requirements may be 
awarded a plus.
    (v) The following factors are to be considered in evaluating a 
Contractor's performance record:
    (A) Cost efficiency. Low cost performance reflecting economic use of 
facilities and manpower, sound purchasing methods and subcontracting 
procedures, and effective inventory control are criteria for 
consideration. Improvement in efficiency through investment in plant 
modernization, past efficiencies, or lack thereof, effectiveness of the 
Contractor's make-or-buy program, purchasing and subcontracting system 
and inventory control should be evaluated.
    (B) Management. Stability and competence of managment personnel, 
their willingness and ability to adjust company resources to meet 
peculiarly difficult and changing control requirements are criteria for 
consideration. The degree of cooperation by the Contractor with the 
objectives of the Government should be considered.
    (C) Extent of the contractor's investment. The extent of a 
Contractor's total investment (i.e., both equity and borrowed capital) 
in the performance of the contract will be taken into consideration in 
determining the amount of the fee or profits.
    (D) Reliability of cost estimates. Accuracy and reliability of 
previous cost estimates should be considered. Where substantial overruns 
have occurred, the Contracting Officer should attempt to determine the 
reasons.
    (E) Inventive and developmental contributions. Extent and nature of 
Contractor-initiated and financed research, development, design work, 
product engineering, quality control, and manufacturing processes and 
techniques in the areas of concern to the EPA should be analyzed.
    (F) Timely performance. The Contractor's performance record, 
considering excusable delays and the Contractor's efforts to overcome 
delays, should be analyzed.
    (G) Small business participation. The Contractor's policies and 
procedures which energetically support Government small business 
programs pursuant to FAR subpart 19.7 should be given favorable 
consideration. Any unusual

[[Page 36]]

effort which the Contractor displays in subscontracting with small 
concerns, particularly for development type work likely to result in 
later production opportunities, and overall effectiveness of the 
Contractor in subcontracting with and furnishing assistance to small 
concerns should be considered. Conversely, failure or unwillingness on 
the part of the Contractor to support Government small business policies 
should be viewed as evidence of poor performance for the purpose of 
establishing a profit objective.
    (H) Labor surplus area participation. A similar review and 
evaluation (as required in paragraph (b)(4)(v)(G) of this section) 
should be given to the Contractor's policies and procedures supporting 
the Government's labor surplus area program pursuant to FAR part 20. 
Particular favorable consideration should be given to a Contractor who: 
(1) Makes a significant effort to help find jobs and provide training 
for the hardcore unemployed, or (2) promotes maximum subcontractor 
utilization of certified-eligible concerns, as defined in FAR 20.101.
    (I) Extent of Government assistance. The Government encourages its 
Contractors to perform their contracts with the minimum of financial, 
facilities, or other assistance from the Government. Where extraordinary 
financial, facilities, or other assistance must be furnished to a 
Contractor by the Government, such extraordinary assistance should have 
a modifying effect in determining what constitutes a fair and reasonable 
profit or fee.
    (J) Effect of competition. When competition is effective and 
proposals are on a firm-fixed-price basis, the Contracting Officer 
normally need not consider in detail the amount of estimated profit 
included in a price. When effective competition is lacking, and in all 
cases where cost analysis is performed in accordance with FAR subpart 
15.8, the estimate for profit, target profit or fee, or the proposed 
fixed fee should be analyzed in the same manner as all other elements of 
price.

[49 FR 8843, Mar. 8, 1984; 49 FR 24734, June 15, 1984]



Sec. 1515.970-3   Documentation.

    Determination of the profit or fee objective, in accordance with 
this subpart shall be fully documented. Since the profit objective is 
the Contracting Officer's pre-negotiation evaluation of a total profit 
allowance for the proposed contract, the amounts developed for each 
category of cost will probably change in the course of negotiation. 
Furthermore, the negotiated profit will probably vary from the profit 
objective and from the prenegotiation detailed application of the 
weights to each element of the Contractor's input to total performance. 
Since the profit objective is viewed as a whole rather than as its 
component parts, insignificant variations from the prenegotiation profit 
objective, as a result of changes to the Contractor's input to total 
performance, need not be documented in detail. Conversely, significant 
deviations from the profit objective necessary to reach a final 
agreement on profit or fee shall be explained in the record of 
negotiation prepared in accordance with FAR 15.808.



Subpart 1515.10--Preaward, Award, and Postaward Notifications, Protests, 
                         and Mistakes [Reserved]



PART 1516--TYPES OF CONTRACTS--Table of Contents




Sec.
1516.000  Scope of part.

              Subpart 1516.3--Cost-Reimbursement Contracts

1516.301-70  Payment of fee.
1516.303  Cost-sharing contracts.
1516.303-71  Definition.
1516.303-72  Policy.
    1516.303-73  Types of cost-sharing.
1516.303-74  Determining the value of in-kind contributions.
1516.303-75  Amount of cost-sharing.
1516.303-76  Fee on cost-sharing contracts by subcontractors.
1516.303-77  Administrative requirements.
1516.307  Contract clauses.
1516.370  Solicitation provision.

                   Subpart 1516.4--Incentive Contracts

1516.404-2  Cost-plus-award-fee contracts.
1516.404-270  Scope.
1516.404-271  Applicability.

[[Page 37]]

1516.404-272  Definitions.
1516.404-273  Limitations.
1516.404-274  Waiver.
1516.405  Contract clauses.

              Subpart 1516.5--Indefinite-Delivery Contracts

1516.505  Contract clauses.

  Subpart 1516.6--Time-and-Materials, Labor-Hour, and Letter Contracts

1516.603  Letter Contracts.
1516.603-3  Limitations.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8852, Mar. 8, 1984, unless otherwise noted.



Sec. 1516.000  Scope of part.

    This part implements and supplements FAR part 16. It provides policy 
and procedures for cost-plus-award-fee type contracts and prescribes 
additional contract clauses for use with cost-reimbursement and 
indefinite-delivery type contracts.



              Subpart 1516.3--Cost-Reimbursement Contracts



Sec. 1516.301-70  Payment of fee.

    The policy of EPA for cost-reimbursement, term form contracts is to 
make provisional payment of fee (i.e. the fixed fee on cost-plus-fixed-
fee type contracts or the base fee on cost-plus-award-fee type 
contracts) on a percentage of work completed basis, when such a method 
will not prove detrimental to proper contract performance. Percentage of 
work completed is the ratio of the direct labor hours performed in 
relation to the direct labor hours set forth in the contract in clause 
1552.212-70, ``Level of Effort--Cost Reimbursement Term Contract.'' 
Provisional payment of fee will remain subject to withholding 
provisions, such as 48 CFR 52.216-8, Fixed Fee.

[56 FR 43711, Sept. 4, 1991]
1516.303  Cost-sharing contracts.



Sec. 1516.303-71  Definition.

    Cost-sharing is a generic term denoting any situation where the 
Government does not fully reimburse a contractor for all allowable costs 
necessary to accomplish the project under the contract. This term 
encompasses cost-matching and cost-limitations, in addition to cost-
sharing. Cost-sharing does not include usual contractual limitations 
such as indirect cost ceilings in accordance with FAR 42.707, or 
ceilings on travel or other direct costs. Cost-sharing contracts may be 
required as a result of Congressional mandate.

[61 FR 14504, Apr. 2, 1996]



Sec. 1516.303-72  Policy.

    (a) The Agency shall use cost-sharing contracts where the principal 
purpose is ultimate commercialization and utilization of technologies by 
the private sector. There should also be a reasonable expectation of 
future economic benefits for the contractor and the Government beyond 
the Government's contract.
    (b) Cost-sharing may be accomplished by a contribution to either 
direct or indirect costs, provided such costs are reasonable, allocable 
and allowable in accordance with the cost principles of the contract. 
Allowable costs which are absorbed by the contractor as its share of 
contract costs may not be charged directly or indirectly to the Agency 
or the Federal Government.
    (c) Unsolicited proposals will be considered on a case-by-case basis 
by the Contracting Officer as to the appropriateness of cost-sharing.

[61 FR 14504, Apr. 2, 1996]



Sec. 1516.303-73  Types of cost-sharing.

    (a) Cost-sharing may be accomplished in various forms or 
combinations. These include, but are not limited to: cash outlays, real 
property or interest therein, personal property or services, cost 
matching, or other in-kind contributions.
    (b) In-kind contributions represent non-cash contributions provided 
by the performing contractor which would normally be a charge against 
the contract. While in-kind contributions are an acceptable method of 
cost-sharing, should the booked costs of property appear unrealistic, 
the fair market value of the property shall be determined pursuant to 
1516.303-74 of this chapter.

[[Page 38]]

    (c) In-kind contributions may be in the form of personal property 
(equipment or supplies) or services which are directly beneficial, 
specifically identifiable and necessary for the performance of the 
contract. In-kind contributions must meet all of the following criteria 
before acceptance.
    (1) Be verifiable from the contractor's books and records;
    (2) Not be included as contributions under any other Federal 
contract;
    (3) Be necessary to accomplish project objectives;
    (4) Provide for types of charges that would otherwise be allowable 
under applicable Federal cost principles appropriate to the contractor's 
organization; and
    (5) Not be paid for by the Federal Government under any contract, 
agreement or grant.

[61 FR 14504, Apr. 2, 1996]



Sec. 1516.303-74  Determining the value of in-kind contributions.

    In-kind contributions accepted from a contractor will be addressed 
on a case-by-case basis provided the established values do not exceed 
fair market values.
    (a) Where the Agency receives title to donated land, building, 
equipment or supplies and the property is not fully consumed during 
performance of the contract, the Contracting Officer should establish 
the property's value based on the contractor's booked costs (i.e., 
acquisition cost less depreciation, if any) at the time of donation. If 
the booked costs reflect unrealistic values when compared to current 
market conditions, the Contracting Officer may establish another 
appropriate value if supported by an independent appraisal of the fair 
market value of the donated property or property in similar condition 
and circumstances.
    (b) The Contracting Officer will monitor reports of in-kind costs as 
they are incurred or recognized during the contract period of 
performance to determine that the value of in-kind services does not 
exceed fair market values.
    (c) The value of any services or the use of personal or real 
property donated by a contractor should be established when necessary in 
accordance with generally accepted accounting policies and Federal cost 
principles.

[61 FR 14505, Apr. 2, 1996]



Sec. 1516.303-75  Amount of cost-sharing.

    (a) Contractors should contribute a reasonable amount of the total 
project cost covered under the contract. The ratio of cost participation 
should correlate to the apparent advantages available to performers and 
the proximity of implementing commercialization, i.e., the higher the 
potential for future profits, the higher the contractor's share should 
be.
    (b) Fee will not be paid to the contractor or any member of the 
contractor team (subcontractors and consultants) which has a substantial 
and direct interest in the contract, or is in a position to gain long 
term benefits from the contract. A vulnerability the Contracting Officer 
should consider in reviewing a prime contractor's request for consent to 
subcontract is whether subcontractors under prime cost-sharing contracts 
have a significant direct interest in the contract to gain long-term 
benefits from the contract.
    (c) The Contracting Officer, with the input of technical experts, 
may consider the following factors in determining reasonable levels of 
cost sharing:
    (1) The availability of the technology to competitors;
    (2) Improvements in the contractor's market share position;
    (3) The time and risk necessary to achieve success;
    (4) If the results of the project involve patent rights which could 
be sold or licensed;
    (5) If the contractor has non-Federal sources of funds to include as 
cost participation; and
    (6) If the contractor has the production and other capabilities to 
capitalize the results of the project.
    (d) A contractor's cost participation can be provided by other 
subcontractors with which it has contractual arrangements to perform the 
contract as long as the contractor's cost-sharing goal is met.

[61 FR 14505, Apr. 2, 1996]

[[Page 39]]



Sec. 1516.303-76  Fee on cost-sharing contracts by subcontractors.

    (a) Subcontractors under prime cost-sharing contracts who do not 
have a significant direct interest in the contract or who are not in a 
position to gain long-term benefits from the contract may earn a fee.
    (b) Contracting Officers should be alert to a potential 
vulnerability for the Government under cost-sharing contracts when 
evaluating proposed subcontractors or consenting to a subcontract during 
contract administration, where the subcontractor is a wholly-owned 
subsidiary of the prime. The vulnerability consists of the subsidiary 
earning a large amount of fee, which could be returned to the prime 
through stock dividends or other intercompany transactions. This could 
circumvent the objective of a cost-sharing contract.

[61 FR 14505, Apr. 2, 1996]



Sec. 1516.303-77  Administrative requirements.

    (a) The initial Procurement Request shall reflect the total 
estimated cost of the cost-sharing contract. The face page of the 
contract award shall indicate the total estimated cost of the contract, 
the Contractor's share of the cost, and the Government's share of the 
cost.
    (b) The manner of cost-sharing and how it is to be accomplished 
shall be set forth in the contract. Additionally, contracts which 
provide for cost-sharing shall require the contractor to maintain 
records adequate to reflect the nature and extent of their cost-sharing 
as well as those costs charged the Agency. Such records may be subject 
to an Agency audit.

[61 FR 14505, Apr. 2, 1996]



Sec. 1516.307  Contract clauses.

    (a) The Contracting Officer shall insert the clause in 1552.216-71, 
Date of Incurrence of Cost, in cost-reimbursement contracts when an 
anticipatory cost letter has been issued on the project.
    (b) The Contracting Officer shall insert the clause at 1552.216-74, 
Payment of Fee, in solicitations and contracts where a cost-
reimbursement term form contract is contemplated, unless the Contracting 
Officer determines that such a provision would be detrimental to 
ensuring proper contract performance.
    (c) The Contracting Officer shall insert a clause substantially the 
same as 48 CFR 1552.216-75, Estimated Cost and Cost-Sharing, in 
solicitations and contracts where the total incurred costs are shared by 
the contractor on a straight percentage basis. The Contracting Officer 
may develop other clauses, as appropriate, following the same approach, 
but reflecting different cost-sharing arrangements negotiated on 
specific contract actions.

[49 FR 8852, Mar. 8, 1984, as amended at 56 FR 43711, Sept. 4, 1991; 61 
FR 14505, Apr. 2, 1996]



Sec. 1516.370  Solicitation provision.

    The solicitation document shall state whether any cost-sharing is 
required, and may set forth a target level of cost-sharing. Although 
technical considerations are normally most important, the degree of 
cost-sharing may be considered in a selection decision when cost becomes 
a determinative factor in a selection decision.

[61 FR 14505, Apr. 2, 1996]



                   Subpart 1516.4--Incentive Contracts

1516.404-2  Cost-plus-award-fee contracts.



Sec. 1516.404-270  Scope.

    This subsection establishes the EPA policy for cost-plus- award-fee 
(CPAF) type contracts.

[60 FR 43404, Aug. 21, 1995]



Sec. 1516.404-271  Applicability.

    Contracting Officers shall consider all contract actions conforming 
to the limitations of FAR 16.404-2(c) as candidates for award as a CPAF 
contract.

[60 FR 43404, Aug. 21, 1995]



Sec. 1516.404-272  Definitions.

    (a) Performance Evaluation Board (PEB). Group of Government 
officials responsible for assessing the quality of contract performance 
and recommending the appropriate fee.

[[Page 40]]

    (b) Fee Determination Official. Individual responsible for reviewing 
the recommendations of the PEB and making the final determination of the 
amount of award fee to be awarded to the contractor.

[60 FR 43404, Aug. 21, 1995]



Sec. 1516.404-273  Limitations.

    (a) No award fee may be earned if the Fee Determination Official 
determines that contractor performance has been satisfactory or less 
than satisfactory. A contractor may earn award fee only for performance 
rated above satisfactory or excellent. All award fee plans shall 
disclose to offerors the numerical rating necessary to be deemed ``above 
satisfactory'' or ``excellent'' for award fee purposes.
    (b) The base fee shall not exceed three percent of the estimated 
cost of the contract, exclusive of the fee.
    (c) Unearned award fee may not be carried forward from one 
performance period into a subsequent performance period unless approved 
by the FDO.
    (d) The payment of award fee on a provisional basis is not 
authorized.

[60 FR 43404, Aug. 21, 1995]



Sec. 1516.404-274  Waiver.

    The Chief of the Contracting Office may waive the limitations in 
paragraphs (a), (b), and (d) of 1516.404-273 on a case-by-case basis 
when unusual or compelling circumstances exist. The waiver shall be 
supported by a justification and coordinated with the Procurement Policy 
Branch in the Office of Acquisition Management.

[60 FR 43404, Aug. 21, 1995]



Sec. 1516.405  Contract clauses.

    (a) The Contracting Officer shall insert the clause at 1552.216-70, 
Award Fee (SEPT 1995), in solicitations and contracts when a cost-plus-
award-fee contract is contemplated.
    (b) The Contracting Officer shall insert the clause at 1552.216-75, 
Base Fee and Award Fee Proposal (SEPT 1995), in all solicitations which 
contemplate the award of cost-plus-award-fee contracts. The Contracting 
Officer shall insert the appropriate percentages in accordance with FAR 
15.903(d).

[60 FR 43404, Aug. 21, 1995]



              Subpart 1516.5--Indefinite-Delivery Contracts



Sec. 1516.505  Contract clauses.

    (a) The Contracting Officer shall insert the clause in 1552.216-72, 
Ordering--By Designated Ordering Officers, in indefinite delivery/
indefinite quantity type solicitations and contracts.
    (b) The Contracting Officer shall insert the clause in 1552.216-73, 
Fixed Rates for Services--Indefinite Delivery/Indefinite Quantity 
Contract, in solicitations and contracts to specify fixed rates for 
services.



  Subpart 1516.6--Time-and-Materials, Labor-Hour, and Letter Contracts

1516.603  Letter Contracts.



Sec. 1516.603-3  Limitations.

    The CCO is authorized to make the determination in FAR 16.603-3.

[55 FR 24580, June 18, 1990, as amended at 59 FR 18976, Apr. 21, 1994]



PART 1517--SPECIAL CONTRACTING METHODS--Table of Contents




                         Subpart 1517.2--Options

Sec.
1517.200  Scope of subpart.
1517.204  Contracts.
1517.207  Exercise of options.
1517.208  Solicitation provisions and contract clauses.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8854, Mar. 8, 1984, unless otherwise noted.



                         Subpart 1517.2--Options



Sec. 1517.200  Scope of subpart.

    This subpart does not apply to contracts for services involving: (a) 
Construction, alteration, or repair of real property; (b) architect-
engineering services; (c) automatic data processing

[[Page 41]]

equipment systems; and (d) telecommunication equipment and services. 
However, it does not preclude the use of options in those contracts.



Sec. 1517.204  Contracts.

    The CCO may approve a contract with a base contract period and 
option periods which total in excess of five (5) years, unless otherwise 
prohibited by statute.

[60 FR 12713, Mar. 8, 1995]



Sec. 1517.207  Exercise of options.

    (a) Unless otherwise approved by the Chief of the Contracting 
Office, contracts for services employing option periods shall require 
that a preliminary written notice of the Government's intention to 
exercise the option be furnished to the Contractor a minimum of sixty 
(60) calendar days prior to the date for the exercise of the option. 
Failure to provide such preliminary notice within the timeframe 
established in the contract waives the Government's right to 
unilaterally exercise the option and requires the negotiation of a 
bilateral contract modification in order to extend the period of 
performance, where such an extension is authorized.
    (b) When the term of the service contract coincides with the fiscal 
year and delays in receipt of authority to obligate funds for the new 
fiscal year are anticipated, the Contracting Officer, if the contract so 
provides (see FAR 17.204(d)), may, within 60 days after the end of the 
fiscal year, unilaterally exercise an option to extend the term of the 
contract. The option may be exercised only if funds become available 
within the 60-day period. In the event that sufficient funding is not 
available within the 60 day period, the Government waives the right to 
exercise the option, thereby rendering any additional requirements 
subject to full and open competition requirements.
    (c) The Contracting Officer, if the contract so provides, may, 
subject to the conditions in FAR 17.204(d), 32.703-2, and 32.705-1(a), 
exercise an option contingent upon the availability of funds. To 
exercise such an option, the contract must contain the clause in FAR 
52.232-18, Availability of Funds. Under no circumstances shall any 
action be taken which could be construed as creating a legal liability 
on the part of the Government until a formal notice of availability of 
funds in the form of a contract modification has been issued by the 
Contracting Officer.

[49 FR 8854, Mar. 8, 1984, as amended at 50 FR 14359, Apr. 11, 1985]



Sec. 1517.208  Solicitation provisions and contract clauses.

    (a) The Contracting Officer shall insert the solicitation provision 
at 1552.217-70, Evaluation of Contract Options, in Requests for 
Proposals when options are included.
    (b) The Contracting Officer shall insert the clause at 1552.217-71, 
Option To Extend the Term of the Contract--Cost-Type Contract, when 
applicable.
    (c) The Contracting Officer shall insert the clause at 1552.217-72, 
Option To Extend the Term of the Contract--Cost-Plus-Award-Fee Contract, 
when applicable.
    (d) The Contracting Officer shall insert the clause at 1552.217-73, 
Option for Increased Quantity--Cost-Type Contract, when applicable.
    (e) The Contracting Officer shall insert the clause at 1552.217-74, 
Option for Increased Quantity--Cost-Plus-Award-Fee Contract, when 
applicable.
    (f) The Contracting Officer shall insert the clause at 1552.217-75, 
Option To Extend the Effective Period of the Contract--Time and 
Materials or Labor Hour Contract, when applicable.
    (g) The Contracting Officer shall insert the clause at 1552.217-76, 
Option To Extend the Effective Period of the Contract--Indefinite 
Delivery/Indefinite Quantity Contract, when applicable.

[[Page 42]]



                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS





PART 1519--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS--Table of Contents




Sec.
1519.000  Scope of part.

                        Subpart 1519.2--Policies

1519.201  Policy.
1519.201-1  Director of Small and Disadvantaged Business Utilization.
1519.201-2  Small and disadvantaged business utilization specialists.
1519.202-5  Data collection and reporting requirements.

              Subpart 1519.5--Set-Asides for Small Business

1519.501  Review of acquisitions.
1519.503  Class set-aside for construction.

    Subpart 1519.6--Certificates of Competency and Determinations of 
                         Eligibility [Reserved]

      Subpart 1519.7--Subcontracting with Small Business and Small 
                     Disadvantaged Business Concerns

1519.705-2  Determining the need for a subcontract plan.
1519.705-4  Reviewing the subcontracting plan.
1519.705-70  Synopsis of contracts containing Pub. L. 95-507 
          subcontracting plans and goals.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8855, Mar. 8, 1984, unless otherwise noted.



Sec. 1519.000  Scope of part.

    This part implements FAR part 19 and provides policy and procedures 
for the development and conduct of the Agency small business and small, 
disadvantaged business utilization programs; for review of acquisitions 
for small business set-asides; and for subcontracting with small and 
small disadvantaged business concerns.



                        Subpart 1519.2--Policies



Sec. 1519.201  Policy.

    Each program's Assistant or Associate Administrator shall be 
responsible for developing its socioeconomic goals on a fiscal year 
basis. The goals shall be developed in collaboration with the supporting 
Chiefs of Contracting Offices and the local Small and Disadvantaged 
Business Utilization Specialist (SDBUS), and the Office of Small and 
Disadvantaged Business Utilization (OSDBU). The goals will be based on 
advance procurement plans and past performance. The goals shall be 
submitted to the Director, OSDBU, at least thirty (30) days prior to the 
start of the fiscal year.



Sec. 1519.201-1  Director of Small and Disadvantaged Business Utilization.

    The Director, OSDBU, provides guidance and advice, as appropriate, 
to Agency program and contracts officials on small and small 
disadvantaged business programs. The Director, OSDBU, is the central 
point of contact for inquiries concerning the small and disadvantaged 
business programs from industry, the Small Business Administration 
(SBA), and the Congress, and shall advise the Administrator and staff of 
such inquiries as required. The Director, OSDBU, shall represent the 
Agency in the negotiations with the other Government agencies on small 
and small disadvantaged business matters.



Sec. 1519.201-2  Small and disadvantaged business utilization specialists.

    (a) Small and Disadvantaged Business Utilization Specialists (SDBUS) 
shall be appointed in writing for each contracting office. The SDBUS 
will normally be appointed from members of staffs of the appointing 
authority. The SDBUS is administratively responsible directly to the 
appointing authority and, on matters relating to small and small 
disadvantaged business program activities, receives technical guidance 
from the Director, OSDBU. The appointing authorities are the Chiefs of 
the Contracting Offices.

[[Page 43]]

    (b) A copy of each appointment and termination of all SDBU 
specialists shall be forwarded to the Director, OSDBU. In addition to 
performing the duties outlined in paragraph (c) of this section that are 
normally performed in the activity to which assigned, the SDBUS shall 
perform such additional functions as may be prescribed from time to time 
in furtherance of overall small and small disadvantaged business 
utilization program goals. The SDBUS is not precluded from being 
assigned the responsibility for the labor surplus area program 
prescribed by FAR part 20. The SDBUS may be appointed on either a full- 
or part-time basis; however, when appointed on a part-time basis, the 
small business duty shall take precedence over collateral 
responsibilities.
    (c) The SDBUS appointed pursuant to paragraph (a) of this section, 
shall perform the following duties as appropriate:
    (1) Maintain a program designed to locate capable small business 
sources for current and future acquisitions;
    (2) Coordinate inquiries and requests for advice from small and 
small disadvantaged business concerns on acquisition matters;
    (3) Review all proposed solicitations in excess of the small 
purchase limitation, assure that small business concerns will be 
afforded an equitable opportunity to compete, and, as appropriate, 
initiate recommendations for small business set-asides, or offers of 
requirements to the SBA for the 8(a) program, and complete EPA Form 
1900-37, ``Record of Procurement Request Review,'' as appropriate:
    (4) Take action to assure the availability of adequate 
specifications and drawings, when necessary, to obtain small business 
participation in an acquisition. When small business concerns cannot be 
given an opportunity on a current acquisition, initiate action, in 
writing, with appropriate technical and contracting personnel to ensure 
that necessary specifications and/or drawings for future acquisitions 
are available.
    (5) Review proposed contracts for possible breakout of items or 
services suitable for acquisition from small business and small 
disadvantaged business concerns;
    (6) Advise small businesses with respect to the financial assistance 
available under existing laws and regulations and assist such concerns 
in applying for financial assistance;
    (7) Participate in the evaluation of a prime contractor's small 
business subcontracting programs;
    (8) Assure that adequate records are maintained, and accurate 
reports prepared, concerning small business participation in acquisition 
programs (see 1519.202-5);
    (9) Make available to SBA copies of solicitations when so requested;
    (10) Act as liaison with the appropriate SBA office or 
representative in connection with set-asides, certificates of 
competency, size classification, and any other matter concerning the 
small or small disadvantaged business programs.

[49 FR 8855, Mar. 8, 1984, as amended at 55 FR 24579, June 18, 1990]



Sec. 1519.202-5  Data collection and reporting requirements.

    (a) As required, monthly reports of factual information, covering 
acquisition actions and dollars awarded to small businesses, small 
disadvantaged businesses, women-owned small businesses, the Small 
Business Administration under the authority of section 8(a) of the Small 
Business Act, and information on actions and dollars made under small 
business set-asides shall be submitted by the Procurement and Contracts 
Management Division, to the Director, OSDBU.
    (b) The Financial Management Division will submit to the Director, 
OSDBU, a copy of the Small Purchase Activity Report that shows by each 
EPA purchasing activity the following information (cumulative monthly) 
for small purchases:
    (1) Total actions and dollar value of awards;
    (2) Total actions and dollar value of awards to all businesses;
    (3) Total actions and dollar value of awards to small businesses;
    (4) Total actions and dollar value of construction awards to small 
businesses made by set-aside;

[[Page 44]]

    (5) Total actions and dollar value of small business awards made by 
set-asides, excluding set-asides for construction;
    (6) Total actions and dollar value of awards made to the Small 
Business Administration pursuant to section 8(a) of the Small Business 
Act; and
    (7) Total actions and dollar value of awards made to small 
disadvantaged businesses.
    (c) The reports identified in paragraphs (a) and (b) of this section 
are to be submitted to the Director, OSDBU, no later than the 20th day 
following the end of the reporting period with the exception of the last 
report of the fiscal year which shall be submitted no later than the 
30th day following the end of the fiscal year.



              Subpart 1519.5--Set-Asides for Small Business



Sec. 1519.501  Review of acquisitions.

    (a) If no Small Business Administration (SBA) representative is 
available, the Small and Disadvantaged Business Utilization Specialist 
(SDBUS) shall initiate recommendations to the Contracting Officer for 
small business set-asides with respect to individual acquisitions or 
classes of acquisitions or portions thereof.
    (b) When the SDBUS has recommended that all, or a portion, of an 
individual acquisition or class of acquisitions be set aside for small 
business, the Contracting Officer shall promptly either: (1) Concur in 
the recommendation or (2) disapprove the recommendation, stating in 
writing the reasons for disapproval. If the Contracting Officer 
disapproves the recommendation of the SDBUS, the SDBUS may appeal to the 
appropriate appointing authority, whose decision shall be final.



Sec. 1519.503  Class set-aside for construction.

    (a) Each proposed acquisition for construction estimated to cost 
between $10,000 and $1,000,000 shall be set-aside for exclusive small 
business participation. Such set-asides shall be considered to be 
unilateral small business set-asides, and shall be withdrawn in 
accordance with the procedure of FAR 19.506 only if found not to serve 
the best interest of the Government.
    (b) Small business set-aside preferences for construction 
acquisitions in excess of $1,000,000 shall be considered on a case-by-
case basis.



    Subpart 1519.6--Certificates of Competency and Determinations of 
                         Eligibility [Reserved]



      Subpart 1519.7--Subcontracting With Small Business and Small 
                     Disadvantaged Business Concerns



Sec. 1519.705-2  Determining the need for a subcontract plan.

    One copy of the determination required by FAR 19.705-2(c) shall be 
placed in the contract file and one copy provided the Director, Office 
of Small and Disadvantaged Business Utilization (OSDBU).



Sec. 1519.705-4  Reviewing the subcontracting plan.

    In determining the acceptability of a proposed subcontracting plan, 
the Contracting Officer shall obtain advice and recommendations from the 
OSDBU, which shall in turn coordinate review by the Small Business 
Administration Procurement Center Representative (if any).



Sec. 1519.705-70  Synopsis of contracts containing Pub. L. 95-507 subcontracting plans and goals.

    The synopsis of contract award, where applicable, shall include a 
statement identifying the contract as one containing Pub. L. 95-507 
subcontracting plans and goals.

[49 FR 8855, Mar. 8, 1984; 49 FR 24734, June 15, 1984]



PART 1520--LABOR SURPLUS AREA CONCERNS--Table of Contents




    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

[[Page 45]]



                   Subpart 1520.1--General [Reserved]



  Subpart 1520.3--Labor Surplus Area Subcontracting Program [Reserved]



PART 1522--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS--Table of Contents




Sec.
1522.000  Scope of part.

                  Subpart 1522.1--Basic Labor Policies

1522.103  Overtime.

            Subpart 1522.6--Walsh-Healey Public Contracts Act

1522.608  Procedures.

              Subpart 1522.8--Equal Employment Opportunity

1522.803  Responsibilities.
1522.804  Affirmative action programs.
1522.804-2  Construction.

        Subpart 1522.10--Service Contract Act of 1965 [Reserved]

  Subpart 1522.13--Special Disabled and Vietnam Era Veterans [Reserved]

        Subpart 1522.14--Employment of the Handicapped [Reserved]

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8857, June 15, 1984, unless otherwise noted.



Sec. 1522.000  Scope of part.

    This part implements FAR part 22 and provide procedures to be 
followed in obtaining approvals or deteminations from the Small Business 
Administration (SBA), the Department of Labor (DOL) or the Office of 
Contract Compliance Programs (OFCCP) on matters related to the 
application of labor laws.



                  Subpart 1522.1--Basic Labor Policies

1522.103  Overtime.



            Subpart 1522.6--Walsh-Healey Public Contracts Act

1522.608  Procedures.



              Subpart 1522.8--Equal Employment Opportunity



Sec. 1522.803  Responsibilities.

    If the applicability of E.O. 11246 and implementing regulations are 
questioned, the Contracting Officer shall route the matter through the 
CCO to the EPA Office of Civil Rights.

[49 FR 8857, June 15, 1984, as amended at 55 FR 24579, June 18, 1990; 59 
FR 18976, Apr. 21, 1994]
1522.804  Affirmative action programs.



Sec. 1522.804-2  Construction.

    Each contracting office having construction contract responsibility 
shall maintain a list of geographical areas subject to affirmative 
action requirements. The list can be obtained from the Office of 
Contract Compliance Programs, U.S. Department of Labor.

[49 FR 8857, Mar. 8, 1984; 49 FR 24734, June 15, 1984]



        Subpart 1522.10--Service Contract Act of 1965 [Reserved]



  Subpart 1522.13--Special Disabled and Vietnam Era Veterans [Reserved]



        Subpart 1522.14--Employment of the Handicapped [Reserved]



PART 1523--ENVIRONMENTAL, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE--Table of Contents




       Subpart 1523.3--Hazardous Material and Material Safety Data

Sec.
1523.303  Contract clause.
1523.303-70  Protection of human subjects.

[[Page 46]]

1523.303-71  Decontamination of Government-furnished property.

          Subpart 1523.70--Energy-Efficient Computer Equipment

1523.7000  Background.
1523.7001  Policy.
1523.7002  Waivers.
1523.7003  Contract clause.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8857, Mar. 8, 1984, unless otherwise noted.



       Subpart 1523.3--Hazardous Material and Material Safety Data

1523.303  Contract clause.



Sec. 1523.303-70  Protection of human subjects.

    Contracting Officers shall insert the contract clause at 1552.223-70 
when the contract involves human test subjects.



Sec. 1523.303-71  Decontamination of Government-furnished property.

    Contracting Officers shall insert the contract clause at 1552.245-
70, Decontamination of Government-Furnished Property, when it is 
anticipated that a Contractor will use Government-furnished or 
Contractor-acquired property in the clean-up of hazardous or toxic 
substances in the environment.



          Subpart 1523.70--Energy-Efficient Computer Equipment

    Source: 61 FR 14506, Apr. 2, 1996, unless otherwise noted.



Sec. 1523.7000  Background.

    (a) Executive Order 12845 requires the Federal Government to 
purchase only microcomputers, including personal computers, monitors and 
printers, which meet ``EPA Energy Star'' requirements for energy 
efficiency. This equipment is often identified by the Energy StarTM 
logo and is capable of entering and recovering from an energy-efficient 
low power state.
    (b) The EPA Energy Star Computer Program is a voluntary partnership 
effort with the computer industry to promote the introduction of energy-
efficient personal computers, monitors, and printers which can reduce 
air pollution caused by utility power generation, and ease the burden on 
building air conditioning and electrical systems. The Energy Star 
Program is designed to be a self-certifying computer industry program, 
policed informally by the computer industry itself.
    (c) FIRMR Bulletin C-35 (dated 11/19/93) describes procedures that 
will promote the acquisition of energy-efficient microcomputers and 
associated computer equipment.



Sec. 1523.7001  Policy.

    (a) The ``Energy Star'' Executive Order (E.O. 12845) applies to the 
following equipment:
    (1) Personal Computers (stand-alone).
    (2) Personal Computers (end-user on network).
    (3) Notebook and other portable computers.
    (4) PC printers - laser, inkjet or dot matrix (stand-alone or 
networked).
    (5) High-speed printers used on a PC network (less than 
approximately 20 pages per minute).
    (6) Monitors (CRT or Flat-panel LCD).
    (b) ``Energy Star'' requirements do not apply to the following 
equipment:
    (1) Workstations.
    (2) File servers.
    (3) Mainframe equipment.
    (4) Minicomputers.
    (5) High-speed printers used with mainframe computers (30 or more 
pages per minute).
    (6) Mainframe or ``dumb'' terminals.
    (7) X-terminals.
    (c) All new acquisitions for microcomputers, including personal 
computers, monitors, and printers, shall contain specifications which 
meet EPA Energy Star requirements for energy efficiency unless a waiver 
has been obtained in accordance with internal Agency procedures. The EPA 
Energy Star requirement applies in instances where the Contracting 
Officer authorizes the contractor to acquire property in accordance with 
FAR 45.302-1.
    (d) The Energy Star requirement also applies to all applicable 
equipment ordered from GSA Schedule Contracts, open market buys, and 
Bankcard purchases.

[[Page 47]]



Sec. 1523.7002  Waivers.

    (a) There are several types of computer equipment which technically 
fall under the current Energy Star Program, but for which EPA 
established blanket waivers because Energy Star compliant versions of 
this equipment were unavailable in the marketplace. Blanket waivers 
apply to the following types of equipment:
    (1) LAN servers, including file servers; application servers; 
communication servers; including bridges and routers;
    (2) UNIX RISC based processors with their high-end monitors;
    (3) Large LAN printers (greater than 19 pages/minute output); and
    (4) Scientific computing equipment which is used for real-time data 
acquisition and which, if subjected to a power down mode, would 
jeopardize the research project.
    (b) It is anticipated that there will be Energy Star models of this 
equipment in the future, but in the near term EPA will not specify 
Energy Star qualifications when purchasing the items listed in this 
section.



Sec. 1523.7003  Contract clause.

    The Contracting Officer shall insert a clause substantially the same 
as 48 CFR 1552.239-103, Acquisition of Energy Star Compliant 
Microcomputers, Including Personal Computers, Monitors, and Printers, in 
all solicitations and contracts for the acquisition of microcomputers, 
including personal computers, monitors and printers. The Contracting 
Officer shall also insert the clause in solicitations and contracts 
where the Contracting Officer authorizes the contractor to acquire 
property in accordance with FAR 45.302-1.



PART 1524--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION--Table of Contents




    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).



            Subpart 1524.1--Protection of Individual Privacy



Sec. 1524.104  Solicitation provisions.

    The Contracting Officer shall insert the provision at 1552.224-70, 
Social Security Numbers of Consultants and Certain Sole Proprietors and 
Privacy Act Statement, in all solicitations.

[49 FR 8858, Mar. 8, 1984]



          Subpart 1524.2--Freedom of Information Act [Reserved]



PART 1525--FOREIGN ACQUISITION--Table of Contents






          Subpart 1525.1--Buy American Act--Supplies [Reserved]

[[Page 48]]



             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS





PART 1527--PATENTS, DATA, AND COPYRIGHTS--Table of Contents




              Subpart 1527.4--Rights in Data and Copyrights

Sec.
1527.404  Basic rights in data clause.
1527.409  Solicitation provisions and contract clauses.
    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).



              Subpart 1527.4--Rights in Data and Copyrights



Sec. 1527.404  Basic rights in data clause.

    The Contracting Officer shall insert in the Limited Rights Notice 
when using Alternate II of FAR 52.227-14 the following purposes for 
disclosure of limited data outside the Government.
    (a) Use (except for manufacture) by support service contractors;
    (b) Evaluation by nongovernment evaluators;
    (c) Use (except for manufacture) by other contractors participating 
in the Government's program of which the specific contract is a part, 
for information and use in connection with the work performed under each 
contract;
    (d) Emergency repairs or overhaul work;
    (e) Release to a foreign government, or instrumentality thereof, as 
the interests of the United States Government may require, for 
information or evaluation, or for emergency repair or overhaul work by 
such government.

[55 FR 48623, Nov. 21, 1990]



Sec. 1527.409  Solicitation provisions and contract clauses.

    The Contracting Officer shall insert the clause in 1552.227-76 in 
all Superfund solicitations and contracts in excess of the small 
purchase limitation and, as appropriate, in small purchases. The clause 
may be used in other contracts if considered necessary by the 
Contracting Officer.

[59 FR 18620, Apr. 19, 1994]



PART 1529--TAXES--Table of Contents




                  Subpart 1529.3--State and Local Taxes

1529.303  Application of State and local taxes to Government contractors 
          and subcontractors.

                    Subpart 1529.4--Contract Clauses

1529.401  Domestic contracts.
1529.401-70  Cost-reimbursable type contracts.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 54 FR 49998, Dec. 4, 1989, unless otherwise noted.



                  Subpart 1529.3--State and Local Taxes



Sec. 1529.303  Application of State and local taxes to Government contractors and subcontractors.

    Contractors are responsible for determining the availability of 
State and local tax exemptions and obtaining such exemptions, if 
available, unless the Contracting Officer determines under FAR 31.205-
41(b)(3) that the administrative burden outweighs the corresponding 
benefit. Contractors are responsible for ensuring that subcontractors 
also seek and obtain such exemptions, if available.



                    Subpart 1529.4--Contract Clauses

1529.401  Domestic contracts.



Sec. 1529.401-70  Cost-reimbursable type contracts.

    Contracting Officers shall insert the clause at 1552.229-70 in all 
solicitations and contracts when it is anticipated a cost-reimbursable 
type contract shall

[[Page 49]]

be used or a contractor or subcontractor shall be reimbursed for 
materials at cost.



PART 1530--COST ACCOUNTING STANDARDS--Table of Contents






          Subpart 1530.3--CAS Contract Requirements [Reserved]



PART 1531--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents






                Subpart 1531.1--Applicability [Reserved]



PART 1532--CONTRACT FINANCING--Table of Contents




Sec.
1532.000  Scope of part.

                         Subpart 1532.1--General

1532.102  Description of contract financing methods.
1532.111  Contract clauses.
1532.170  Forms.

               Subpart 1532.4--Advance Payments [Reserved]

                  Subpart 1532.8--Assignment of Claims

1532.805  Procedure.
1532.805-70  Forms.

                     Subpart 1532.9--Prompt Payment

1532.908  Contract clauses.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8858, Mar. 8, 1984, unless otherwise noted.



Sec. 1532.000  Scope of part.

    This part implements and supplements FAR part 32 and provides 
policies and procedures for contract financing and other payment 
matters. This includes--
    (a) Progress payments;
    (b) Advance payments;
    (c) Prompt Payment Act implementation;
    (d) Assignment of claims; and
    (e) Selected clauses and forms.



                         Subpart 1532.1--General



Sec. 1532.102  Description of contract financing methods.

    Progress payments based on a percentage or stage of completion are 
authorized for use as a payment method under EPA contracts or 
subcontracts for construction and alteration or repair of buildings, 
structures, or other real property.

[60 FR 38505, July 27, 1995]



Sec. 1532.111  Contract clauses.

    The Contracting Officer shall insert the clause at 1552.232-73, 
Payments--Fixed Rate Services Contract, in solicitations and indefinite 
delivery/indefinite quantity contracts when services are being acquired 
on a fixed-rate basis.



Sec. 1532.170  Forms.

    (a) EPA Form 1900-10 Contractor's Cumulative Claim and 
Reconciliation, at 1553.232-74, shall be used for an accounting of the 
cumulative charges and costs for cost-reimbursement contracts from 
inception of the contract to completion. It shall be submitted by the 
Contractor upon submission of the completion voucher.
    (b) EPA Form 1900-68, Notice of Contract Costs Suspended and/or 
Disallowed, at 1553.232-75, shall be inserted in all cost-reimbursement 
type and fixed-rate type contracts.

[49 FR 8858, Mar. 8, 1984, as amended at 61 FR 29317, June 10, 1996]



               Subpart 1532.4--Advance Payments [Reserved]



                  Subpart 1532.8--Assignment of Claims

1532.805  Procedure.



Sec. 1532.805-70  Forms.

    (a) EPA Form 1900-3, Assignee's Release, at 1553.232-70 is required 
to be submitted by the assignee for cost-reimbursement contracts prior 
to final payment under the contract.
    (b) EPA Form 1900-4, Assignee's Assignment of Refunds, Rebates, 
Credits, and Other Amounts, at 1553.232-71 must

[[Page 50]]

accompany the assignee's release prior to final payment under cost-
reimbursement contracts.
    (c) EPA Form 1900-5, Contractor's Assignment of Refunds, Rebates and 
Credits, at 1553.232-72 must be prepared by the Contractor prior to 
final payment under cost-reimbursement contracts and must accompany the 
Contractor's Release.
    (d) EPA Form 1900-6, Contractor's Release, at 1553.232-73 must be 
submitted by the Contractor prior to final payment under cost-
reimbursement contracts.



                     Subpart 1532.9--Prompt Payment



Sec. 1532.908  Contract clauses.

    The Contracting Officer shall insert a clause substantially the same 
as that at 1552.232-70 in all solicitations and contracts for cost 
reimbursable acquisitions. If a fixed-rate type contract is 
contemplated, the Contracting Officer shall use the clause with its 
Alternate I.

[61 FR 29317, June 10, 1996]



PART 1533--PROTESTS, DISPUTES AND APPEALS--Table of Contents




Sec.
1533.000  Scope of part.

                        Subpart 1533.1--Protests

1533.103  Protests to the Agency.
1533.103-70  Time for filing.

                  Subpart 1533.2--Disputes and Appeals

1533.203  Applicability.
1533.212  Contracting Officer's duties upon appeal.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 50 FR 14359, Apr. 11, 1985, unless otherwise noted.



Sec. 1533.000  Scope of part.

    This part implements and supplements FAR part 33 and prescribes 
policies and procedures for processing protests and contract disputes 
and appeals.



                        Subpart 1533.1--Protests

1533.103  Protests to the Agency.



Sec. 1533.103-70  Time for filing.

    (a) Protests based upon alleged improprieties in a solicitation 
which are apparent prior to bid opening or the closing date for receipt 
of initial proposals shall be filed prior to bid opening or the closing 
date for receipt of initial proposals. In acquisitions where proposals 
are requested, alleged improprieties which do not exist in the initial 
solicitation but which are subsequently incorporated into the 
solicitation must be protested not later than the next closing date for 
receipt of proposals following the incorporation.
    (b) In cases other than those covered in paragraph (a) of this 
section, protests shall be filed not later than ten working days after 
the basis of protest is known or should have been known, whichever is 
earlier.



                  Subpart 1533.2--Disputes and Appeals



Sec. 1533.203  Applicability.

    Pursuant to an interagency agreement between the EPA and the 
Department of the Interior Board of Contract Appeals (IBCA), the IBCA 
will hear appeals from final decisions of EPA Contracting Officers 
issued pursuant to the Contract Disputes Act. The rules and regulations 
of the IBCA appear in 43 CFR part 4.



Sec. 1533.212  Contracting Officer's duties upon appeal.

    Upon receipt of notice of appeal, the Contracting Officer shall take 
the following actions:
    (a) Submission of the notice of appeal to IBCA. (1) When a notice of 
appeal in any form has been received, the Contracting Officer shall 
endorse on it the date of the notice's mailing (or the date of receipt 
if the notice was otherwise conveyed) and within 5 days shall forward 
the notice of appeal to the IBCA by certified mail. The Contracting 
Officer shall verbally notify the legal counsel that the appeal has been 
received.

[[Page 51]]

    (2) A notice of appeal, whether filed within the time prescribed by 
the ``Disputes'' clause or not, shall be submitted to the IBCA. The 
Contracting Officer shall forward promptly every notice of appeal to 
IBCA even if the intention to appeal is only vaguely or indirectly 
expressed, and regardless of the form of the notice, or of the method by 
which the notice was furnished to the Contracting Officer.
    (3) Copies of the notice of appeal shall be sent simultaneously to 
the Quality Assurance Branch, Office of Acquisition Management and to 
legal counsel.
    (b) Establishment and submission of appeal files to IBCA. (1) 
Following receipt of a notice of appeal, or advice that an appeal has 
been filed, the Contracting Officer shall promptly compile the appeal 
file (copies of all documents pertinent to the appeal), and four 
duplicate appeal files. The file shall include the following:
    (i) The findings of fact and the Contracting Officer's final 
decision from which the appeal is taken, and the letter or letters or 
other documents of claim in response to which the decision was issued;
    (ii) The contract, and pertinent plans, specifications, amendments, 
and change orders;
    (iii) Correspondence between the parties and other data pertinent to 
the appeal;
    (iv) Transcripts of any testimony taken during the course of 
proceedings and affidavits, or statements of any witnesses on the matter 
in dispute made prior to the filing of the notice of appeal with the 
Board;
    (v) Such additional information as may be considered material.
    (2) In addition to the above, the Contracting Officer shall prepare 
an index listing each document included in the file submitted to the 
IBCA, and place copies of such index in the submission and duplicate 
files.
    (3) Contracting Officers, in making the submission, may not submit 
original ducuments which are a part of the official contract file. 
Copies of the pertinent documents shall be submitted.
    (4) Within 15 days of receipt or advice of a notice of appeal, the 
official and two duplicate files shall be forwarded through legal 
counsel to the Office of Acquisition Management for review. The 
Procurement and Contracts Management Division shall forward the official 
appeal file to the IBCA within the 30 day time limitation set forth in 
43 CFR 4.104(a). One duplicate file shall be retained by the Contracting 
Officer, one by the Procurement and Contracts Management Division, and 
one by legal counsel.
    (5) If for any reason the Contracting Officer anticipates that a 
timely submission cannot be made, he/she shall immediately advise legal 
counsel by telephone of the extent of the anticipated delay and the 
reasons therefor. However, every effort will be exerted to make timely 
submissions.
    (6) At the time of transmittal of the appeal file to the Board, the 
Contracting Officer shall notify the appellant of the transmittal and 
provide a copy of the appeal file to the appellant. Within the 
transmittal to the IBCA, the Contracting Officer shall indicate that the 
appellant has been provided with a copy of the appeal file.

[50 FR 14359, Apr. 11, 1985, as amended at 59 FR 18977, Apr. 21, 1994]

[[Page 52]]



             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING





PART 1535--RESEARCH AND DEVELOPMENT CONTRACTING--Table of Contents




Sec.
1535.007  Solicitations.
1535.007-70  Contract clauses.
    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).



Sec. 1535.007  Solicitations.

    (a) Contracting Officers shall insert the following provisions in 
all solicitations when the Contracting Officer has determined that EPA 
may furnish the contractor with confidential business information which 
EPA has obtained from third parties under the Federal Insecticide, 
Fungicide and Rodenticide Act (7 U.S.C. 136 et seq.).
    (1) 48 CFR 1552.235-72, Control and Security of Federal Insecticide, 
Fungicide, and Rodenticide Act Confidential Business Information; and
    (2) 48 CFR 1552.235-73, Access to Federal Insecticide, Fungicide, 
and Rodenticide Act Confidential Business Information.
    (b) Contracting Officers shall insert the following provisions in 
all solicitations when the Contracting Officer has determined that EPA 
may furnish the contractor with confidential business information which 
EPA has obtained from third parties under the Toxic Substances Control 
Act (15 U.S.C. 2601 et seq.)
    (1) 48 CFR 1552.235-74, Control and Security of Toxic Substances 
Control Act Confidential Business Information, and
    (2) 48 CFR 1552.235-75, Access to Toxic Substances Control Act 
Confidential Business Information.

[61 FR 14264, Apr. 1, 1996]



Sec. 1535.007-70  Contract clauses.

    The following clauses are prescribed for research and development 
(R&D) contracts. They may also be used in other than R&D contracts when 
applicable (see 1537.110).
    (a) The Contracting Officer shall insert the contract clause at 
1552.235-70, Screening Business Information for Claims of 
Confidentiality, in contracts when the Contracting Officer has 
determined that during performance of this contract, the Contractor may 
be required to collect information to perform the work required under 
this contract. Some of the information may consist of trade secrets or 
commercial or financial information that would be considered as 
proprietary or confidential by the business that has the right to the 
information.
    (b) The Contracting Officer shall insert the clause at 48 CFR 
1552.235-71, Treatment of Confidential Business Information, in 
solicitations and contracts when the Contracting Officer has determined 
that in the performance of the contract, EPA may furnish confidential 
business information to the contractor obtained from third parties under 
the Clean Air Act (42 U.S.C. 7401 et seq.), the Federal Water Pollution 
Control Act (33 U.S.C. 1251 et seq.), the Safe Drinking Water Act (42 
U.S.C. 300f et seq.), the Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 301 et seq.), the Resource Conservation and Recovery Act (42 
U.S.C. 301 et seq.), the Federal Insecticide, Fungicide and Rodenticide 
Act (7 U.S.C. 136 et seq.), the Comprehensive Environmental Response, 
Compensation, and Liability Act (42 U.S.C. 9601 et seq.), and the 
provision at 48 CFR 1552.235-70, Release of Contractor Confidential 
Business Information. EPA regulations on confidentiality of business 
information in 40 CFR part 2, subpart B require that the contractor 
agree to the clause entitled ``Treatment of Confidential Business 
Information'' before any confidential business information may be 
furnished to the contractor.
    (c) The Contracting Officer shall insert the clause at 48 CFR 
1552.235-76, Treatment of Confidential Business Information, in 
solicitations and contracts when the Contracting Officer has determined 
that in the performance of the contract, EPA may furnish the contractor 
with confidential business information obtained from third parties under 
the Toxic Substances Control Act (15 U.S.C. 2601 et seq.). EPA 
regulations on confidentiality of business information in 40 CFR part 2, 
subpart B require that the contractor

[[Page 53]]

agree to the clause entitled ``Treatment of Confidential Business 
Information'' before any confidential business information may be 
furnished to the contractor.
    (d) The Contracting Officer shall insert the clause at 48 CFR 
1552.235-77, Data Security for Federal Insecticide, Fungicide, and 
Rodenticide Act, Confidential Business Information, when the contract 
involves access to confidential business information related to the 
Federal Insecticide, Fungicide, and Rodenticide Act, and the Treatment 
of Confidential Business Information clause (48 CFR 1552.235-71) and the 
Screening Business Information for Claims of Confidentiality clause (48 
CFR 1552.235-70) are included.
    (e) The Contracting Officer shall insert the clause at 48 CFR 
1552.235-78, Data Security for Toxic Substances Control Act Confidential 
Business Information, when the contract involves access to confidential 
business information related to the Toxic Substances Control Act, and 
the Treatment of Confidential Business Information clause (48 CFR 
1552.235-76) and Screening Business Information for Claims of 
Confidentiality clause (48 CFR 1552.235-70) are included.
    (f) Contracting Officers shall insert the clause 48 CFR 1552.235-79, 
Release of Contractor Confidential Business Information, in all 
solicitations and contracts in order to authorize the Agency to release 
confidential business information under certain circumstances.

[49 FR 8862, Mar. 8, 1984; 49 FR 24734, June 15, 1984, as amended at 61 
FR 14265, Apr. 1, 1996]



PART 1536--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS--Table of Contents




     Subpart 1536.2--Special Aspects of Contracting for Construction

Sec.
1536.201  Evaluation of contractor performance.
1536.209  Construction contracts with architect-engineer firms.

                    Subpart 1536.5--Contract Clauses

1536.521  Specifications and drawings for construction.

               Subpart 1536.6--Architect-Engineer Services

1536.602  Selection of firms for architect-engineer contracts.
1536.602-2  Establishment of evaluation boards.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8863, Mar. 8, 1984, unless otherwise noted.



     Subpart 1536.2--Special Aspects of Contracting for Construction



Sec. 1536.201  Evaluation of contracting performance.

    (a) The Contracting Officer will obtain input from the Project 
Officer on the contractor's performance. The Contracting Officer will 
prepare the contractor performance report as prescribed in FAR 36.201 
within two weeks after final acceptance of the work or contract 
termination.
    (b) Prior to submitting any report or unsatisfactory performance to 
the reviewing official, the Contracting Officer will advise the 
contractor of any proposed unsatisfactory rating (see FAR 36.201(a)(3)).
    (c) The official at one level above the Contracting Officer will 
review each performance report.
    (d) The Contracting Officer will forward the original of the 
performance report to the Quality Assurance Branch, Office of 
Acquisition Management. The Quality Assurance Section will file the form 
in the contractor performance evaluation files which it maintains.
    (e) The Quality Assurance Branch will review the report when it is 
received and compare it with recent evaluations of that contractor. If 
the Quality Assurance Section discerns a pattern of unsatisfactory 
performance, it will notify the Contracting Officer for possible action, 
which may include referral of the matter to the Compliance Staff or to 
the Inspector General for investigation.
    (f) Information from the performance report shall not be released 
outside of the Agency, except to other Government agencies at their 
written request, and on condition that the information will not be made 
available outside the

[[Page 54]]

Government. Requests from non-Government sources for information from 
performance reports shall be processed in accordance with EPA's Freedom 
of Information Act procedures at 40 CFR part 2.

[49 FR 8863, Mar. 8, 1984, as amended at 59 FR 18977, Apr. 21, 1994]



Sec. 1536.209  Construction contracts with architect-engineer firms.

    (a) The provisions of FAR 36.209 do not apply to subcontractors 
performing treatability studies.
    (b) The provisions of FAR 36.209 also do not apply to subcontractors 
whose input during the design phase does not substantially affect the 
course of the design work.
    (c) Approval under FAR 36.209 is not required for subcontractors 
under paragraph (a) or (b) of this section. Approval for all other 
subcontractors and prime contractors may be granted by the CCO. In 
reviewing requests for approval, the RAD shall consider factors such as 
the availability of other firms to perform the necessary construction or 
Superfund remedial action work, the estimated cost to the Government, 
and the policy of the Agency to promote the use of innovative 
technology.

[55 FR 49283, Nov. 27, 1990, as amended at 59 FR 18977, Apr. 21, 1994]



                    Subpart 1536.5--Contract Clauses



Sec. 1536.521  Specifications and drawings for construction.

    The Contracting Officer shall insert the clause at 1552.236-70, 
Samples and Certificates, in soliciations and contracts when a fixed 
price construction contract is expected to exceed the small purchase 
limitation. The clause may be inserted in solicitations and contracts 
when the contract is expected to be within the small purchase 
limitation.



               Subpart 1536.6--Architect-Engineer Services

1536.602  Selection of firms for architect-engineer contracts.



Sec. 1536.602-2  Establishment of evaluation boards.

    (a) The Environmental Protection Agency Architect-Engineer 
Evaluation Board is established as a central permanent Board located at 
Headquarters EPA under authority delegated to the Director, Office of 
Acquisition Management. The Board shall perform all architect-engineer 
evaluations on an agency-wide basis. The Agency Board shall be composed 
of not less than three nor more than five voting members and one non-
voting advisory member from the contracting office. The following 
constitutes the minimum composition of the Architect-Engineer Evaluation 
Board:
    (1) Member and Chairperson. Chief, Engineering, Planning, and 
Architecture Branch, Facilities Management and Services Division or his/
her designee;
    (2) Member. A professional engineer or architect from EPA to be 
designated by the Chairperson;
    (3) Member. A program official initiating the requirement or a 
designated representative; and
    (4) Advisory Member. A Contracting Officer or his/her 
representative.
    (b) The Chief of the Contracting Office (CCO) is delegated the 
authority to appoint either one or two additional voting members as may 
be appropriate for a particular project.
    (c) In the event of an emergency or extended absence, a member may 
designate, in writing, with the concurrence of the Chairperson, an 
alternate experienced in architecture, engineering, or construction to 
serve in his/her absence.
    (d) The duties of the advisory member shall include, but not be 
limited to, the following:
    (1) Assuring that the criteria set forth in the public notice are 
applied in the evaluation process; and

[[Page 55]]

    (2) Assuring that actions taken during the evaluation process do not 
compromise subsequent procurement actions.

[59 FR 18977, Apr. 21, 1994]



PART 1537--SERVICE CONTRACTING--Table of Contents




               Subpart 1537.1--Service Contracts--General

Sec.
1537.110  Solicitation provisions and contract clauses.

            Subpart 1537.2--Advisory and Assistance Services

1537.200  Scope of subpart.
1537.205  Management controls.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8864, Mar. 8, 1984, unless otherwise noted.



               Subpart 1537.1--Service Contracts--General



Sec. 1537.110  Solicitation provisions and contract clauses.

    The following clauses are prescribed for service contracts. They may 
also be used in research and development contracts when applicable (see 
1535.007-70).
    (a) The Contracting Officer shall insert the clause at 1552.237-70, 
Contract Publication Review Procedures, in solicitations and contracts 
when the products of the contract are subject to contract publication 
review.
    (b) The Contracting Officer shall insert the clause at 1552.237-71, 
Technical Direction, in cost-reimbursement type solicitations and 
contracts.
    (c) The Contracting Officer shall insert the clause at 1552.237-72, 
Key Personnel, in solicitations and contracts when it is necessary for 
contract performance to identify Contractor key personnel.
    (d) The Contracting Officer shall insert the clause at 1552.237-73, 
Consultant Services and Consent, in solicitations and contracts where 
the services of consultants are required.
    (e) The Contracting Officer shall insert the clause at 1552.237-74, 
Publicity, in solicitations and contracts pertaining to the removal or 
remedial activities under the Comprehensive Environmental Response, 
Compensation and Liability Act (CERCLA).
    (f) The Contracting Officer shall insert the clause at 1552.237-75, 
Paperwork Reduction Act, in solicitations and contracts requiring the 
collection of identical information from (10) or more public 
respondents.



            Subpart 1537.2--Advisory and Assistance Services



Sec. 1537.200  Scope of subpart.

    This subpart applies only to the types of services described in FAR 
37.203. It does not apply to services which the Contracting Officer has 
determined are not advisory and assistance.

[56 FR 5957, Feb. 14, 1991]



Sec. 1537.205  Management controls.

    (a) The requesting office shall make the initial determination of 
whether the requirement is for advisory and assistance services as 
defined in FAR 37.203. If services are determined to be advisory and 
assistance, the requesting office shall prepare a procurement request 
addressing the items shown in FAR 37.206.
    (b) The Contracting Officer shall review the initiating office's 
determination. In the event that the Contracting Officer disagrees with 
the initiating office's determination, he/she will discuss his/her 
findings with the initiating office before making a final determination. 
The Contracting Officer's determination on whether services are advisory 
and assistance is final.
    (c) The Assistant Administrator for Administration and Resources 
Management has been designated as the official responsible for ensuring 
that the acquisition of advisory and assistance services meets the 
provisions in Office of Management and Budget (OMB) Circular A-120.

[56 FR 5957, Feb. 14, 1991]

[[Page 56]]



                    SUBCHAPTER G--CONTRACT MANAGEMENT





PART 1542--CONTRACT ADMINISTRATION--Table of Contents




Sec.
1542.000  Scope of part.

                   Subpart 1542.7--Indirect Cost Rates

1542.700  Scope of subpart.
1542.705  Final indirect cost rates.
1542.705-70  Solicitation and contract clause.
1542.708  Quick-closeout procedures.

         Subpart 1542.12--Novation and Change of Name Agreements

1542.1200  Scope of subpart.
1542.1202  Responsibility for executing agreements.
1542.1203  Processing agreements.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8865, Mar. 8, 1984, unless otherwise noted.



Sec. 1542.000  Scope of part.

    This part implements FAR part 42 and prescribes general policies and 
procedures for performing contract administration functions and related 
audit services.



                   Subpart 1542.7--Indirect Cost Rates



Sec. 1542.700  Scope of subpart.

    This subpart implements and supplements FAR subpart 42.7 and 
prescribes policies and procedures for establishing: (a) Billing rates 
and (b) final indirect costs.



Sec. 1542.705  Final indirect cost rates.

    The EPA shall use the Contracting Officer determination procedure 
for all business units for which it shall be required to negotiate final 
indirect cost rates.



Sec. 1542.705-70  Solicitation and contract clause.

    The Contracting Officer shall insert the clause in 1552.242-70, 
Indirect Costs, in solicitations and contracts where indirect costs 
apply.



Sec. 1542.708  Quick-closeout procedures.

    (a) The Contracting Officer or contract administrator, as 
appropriate, may use quick-closeout procedures for settlement of 
indirect costs on cost-reimbursement contracts prior to a final audit 
certification when the conditions specified by FAR 42.708(a) (1) through 
(3) have been met and: (1) The contract has an estimated cost, excluding 
fee of $2,000,000, or less, and (2) the cumulative estimated costs of 
one Contrator's contracts closed out using these quick-closeout 
procedures do not exceed $5,000,000 per contract office.
    (b) Under the quick-closeout procedures, if final rates have been 
negotiated for all but one of the fiscal years and 25 percent or less of 
the total costs claimed are for that fiscal year, the Contracting 
Officer or contract administrator shall close the contract using one of 
the following rates:
    (1) The previous year final rates.
    (2) The subsequent year final rates.
    (3) Provisional rates, if less than the rates in paragraph (b) (1) 
or (2) of this section.
    (4) Any other rates claimed by the Contractor if they are less than 
those in paragraph (b) (1), (2), or (3) of this section.
    (c) When the final rates have not been negotiated and the procedures 
in paragraph (b) of this section do not apply, the Contracting Officer 
or contract administrator shall request the Cost Policy and Rate 
Negotiation Branch (CPRN), Office of Acquisition Management to negotiate 
or to obtain final rates.

[49 FR 8865, Mar. 8, 1984, as amended at 59 FR 18977, Apr. 21, 1994; 60 
FR 21994, May 4, 1995]



         Subpart 1542.12--Novation and Change of Name Agreements



Sec. 1542.1200  Scope of subpart.

    This subpart implements FAR subpart 42.12 and provides policies and 
procedures for executing and processing novation and change-of-name 
agreements.

[[Page 57]]



Sec. 1542.1202  Responsibility for executing agreements.

    (a) Any EPA contracting office upon being notified of a successor in 
interest to, or change of name of, one of its Contractors shall promptly 
report such information by memorandum to the Director, Policy, Training 
and Oversight Division (POTD).
    (b) To avoid duplication of effort on the part of EPA contracting 
offices in preparing and executing agreements to recognize a change of 
name or successor in interest, only one supplemental agreement will be 
prepared to effect necessary changes for all contracts between EPA and 
the Contractor involved. The Chief of the Procurement Policy Branch, 
Policy, Training and Oversight Division (PTOD), will, in each case, 
designate the Contracting Office responsible for taking all necessary 
and appropriate action with respect to either recognizing or not 
recognizing a successor in interest, or recognizing a change of name 
agreement.

[49 FR 8865, Mar. 8, 1984, as amended at 55 FR 24580, June 18, 1990; 59 
FR 18977, Apr. 21, 1994]



Sec. 1542.1203  Processing agreements.

    (a) The responsible contracting office shall:
    (1) Obtain from the Contractor a list of all affected contracts, the 
names and addresses of the contracting offices responsible for these 
contracts, and the required documentary evidence.
    (2) Verify the accuracy of the list of contracts through the 
Contract Information System.
    (3) Draft and execute a supplemental agreement to one of the 
contracts affected but covering all applicable outstanding and 
incomplete contracts affected by the transfer of assets or change of 
name. A supplemental agreement number need not be obtained for contracts 
other than for the one under which the supplemental agreement is 
written. The supplemental agreement will contain a list of the contracts 
affected and, for distribution purposes, the names and addresses of the 
contracting offices having contracts subject to the supplemental 
agreement.
    (b) Agreements and supporting documents covering successors in 
interest shall be reviewed for legal sufficiency by legal counsel.
    (c) After execution of the supplemental agreement, the designated 
office shall forward an authenticated copy of the supplemental agreement 
to the Director, Policy, Training and Oversight Division, and to each 
affected contract office.

[49 FR 8865, Mar. 8, 1984, as amended at 59 FR 18977, Apr. 21, 1994]



PART 1545--GOVERNMENT PROPERTY--Table of Contents




Sec.
1545.000  Scope of part.

                         Subpart 1545.1--General

1545.106  Government property clauses.

      Subpart 1545.3--Providing Government Property to Contractors

1545.309  Providing Government production and research property under 
          special restrictions.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8866, Mar. 8, 1984, unless otherwise noted.



Sec. 1545.000  Scope of part.

    This part implements FAR part 45, Government Property, and sets 
forth policy and procedures with respect to providing property for use 
by contractors in performance of EPA contracts.



                         Subpart 1545.1--General



Sec. 1545.106  Government property clauses.

    (a) In accordance with 1523.303-71, the Contracting Officer shall 
insert the contract clause at 1552.245-70 when it is anticipated that a 
Contractor will use Government-furnished or Contractor-acquired property 
in the cleanup of hazardous or toxic substances in the environment.
    (b) The Contracting Officer shall insert the contract clause at 
1552.245-71, Government-Furnished Data, in any contract in which the 
Government is to furnish data to the Contractor. The data to be provided 
shall be identified in the clause.

[[Page 58]]

    (c) The Contracting Officer shall insert the contract clause at 
1552.245-72, Fabrication or Acquisition of Nonexpendable Property, in 
all cost-reimbursement type contracts or contracts with cost-
reimbursement portions.

[49 FR 8866, Mar. 8, 1984; 49 FR 24734, June 15, 1984]



      Subpart 1545.3--Providing Government Property to Contractors



Sec. 1545.309  Providing Government production and research property under special restrictions.

    Government production and research property, other than foundations 
and similar improvements necessary for installing special tooling, 
special test equipment, or plant equipment, shall not be installed or 
constructed on land not owned by the Government in such fashion as to be 
nonseverable unless the contract under which the property is provided 
contains--
    (a) One of the provisions in FAR 45.309(a);
    (b) A requirement that the Government will have the right to abandon 
in place all nonseverable Government property provided; and
    (c) A requirement that the Government will not have any obligation 
to disassemble or remove the property or to restore or to rehabilitate 
the premises on which the property is located.



PART 1546--QUALITY ASSURANCE--Table of Contents




Sec.
1546.000  Scope of part.

              Subpart 1546.2--Contract Quality Requirements

1546.201  General.

                       Subpart 1546.7--Warranties

1546.704  Authority for use of warranties.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8867, Mar. 8, 1984, unless otherwise noted.



Sec. 1546.000  Scope of part.

    This part implements and supplements FAR part 46 and provides EPA 
policy and procedures on contract quality assurance requirements and 
warranties. It includes selected clauses and guidance on their use.



              Subpart 1546.2--Contract Quality Requirements



Sec. 1546.201  General.

    (a) The Contracting Officer shall ensure that Procurement Request/
Orders (EPA Form 1900-8) in excess of $25,000 be accompanied by a 
Quality Assurance (QA) review form for those acquisitions in the object 
classifications prescribed in chapter 2 of the ``Contracts Management 
Manual'' which covers procurement request preparation.
    (b) Where the QA review form provides for the submission of a QA 
program plan in an offeror's proposal, the Contracting Officer shall use 
the provision shown in 1552.246-70 in the solicitation.
    (c)(1) The Contracting Officer shall include the provision contained 
in 1552.246-71 in the solicitation when a QA project plan is required as 
part of the proposal submission. The QA project plan is a specific 
delineation of an offeror's approach for accomplishing the QA 
specification in a Statement of Work.
    (2) When a QA project plan is not a required part of the technical 
proposal, the Contracting Officer may require the QA project plan as a 
deliverable under the contract by use of the clause in 1552.246-72.



                       Subpart 1546.7--Warranties



Sec. 1546.704  Authority for use of warranties.

    The Contracting Officer shall ensure that the use of a warranty 
clause in a contract has the concurrence of the Project Officer.



PART 1548--VALUE ENGINEERING--Table of Contents




    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8867, Mar. 8, 1984, unless otherwise noted.

[[Page 59]]



                 Subpart 1548.1--Policies and Procedures



Sec. 1548.102  Policies.

    The EPA is exempt from the requirements of FAR part 48 as authorized 
in FAR 48.102(a).

[[Page 60]]



                     SUBCHAPTER H--CLAUSES AND FORMS





PART 1552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents




             Subpart 1552.2--Texts of Provisions and Clauses

Sec.
1552.203-70  Current/former agency employee involvement certification.
1552.208-70  Printing.
1552.209-70  Organizational conflict of interest notification.
1552.209-71  Organizational conflicts of interest.
1552.209-72  Organizational conflict of interest certification.
1552.209-73  Notification of conflicts of interest regarding personnel.
1552.209-74  Limitation of future contracting.
1552.210-70  Reports of work.
1552.210-71  [Reserved]
1552.210-72  Monthly progress report.
1552.210-73--1552.210-74  [Reserved]
1552.210-75  Working files.
1552.210-76  Legal analysis.
1552.210-77  Final reports.
1552.210-78  Management consulting services.
1552.210-79  Compliance with EPA Policies for Information Resources 
          Management.
1552.210-80  Annual certification.
1552.212-70  Level of effort--cost-reimbursement term contract.
1552.212-71  Work assignments.
1552.213-70  Notice to suppliers of equipment.
1552.214-70  Past performance.
1552.214-71  Contract award--other factors--formal advertising.
1552.215-70  EPA source selection and selection procedures--negotiated 
          procurements. (Sep 1996)
1552.215-71  Evaluation factors for award.
1552.215-73  Instructions for the preparation of technical and cost or 
          pricing proposals.
1552.215-74  Cost proposal instructions.
1552.215-75  [Reserved]
1552.215-76  General financial and organizational information.
1552.216-70  Award fee.
1552.216-71  Date of incurrence of cost.
1552.216-72  Ordering--by designated ordering officers.
1552.216-73  Fixed rates for services--indefinite delivery/indefinite 
          quantity contract.
1552.216-74  Payment of fee.
1552.216-75  Base fee and award fee proposal.
1552.216-76  Estimated cost and cost-sharing.
1552.217-70  Evaluation of contract options.
1552.217-71  Option to extend the term of the contract--cost-type 
          contract.
1552.217-72  Option to extend the term of the contract--cost-plus-award-
          fee contract.
1552.217-73  Option for increased quantity--cost-type contract.
1552.217-74  Option for increased quantity--cost-plus-award-fee 
          contract.
1552.217-75  Option to extend the effective period of the contract--time 
          and materials or labor hour contract.
1552.217-76  Option to extend the effective period of the contract--
          indefinite delivery-indefinite quantity contract.
1552.223-70  Protection of human subjects.
1552.224-70  Social security numbers of consultants and certain sole 
          proprietors and Privacy Act statement.
1552.227-76  Project employee confidentiality agreement.
1552.229-70  State and local taxes.
1552.232-70  Submission of invoices.
1552.232-71--1552.232-72  [Reserved]
1552.232-73  Payments--fixed rate services contract.
1552.235-70  Screening business information for claims of 
          confidentiality.
1552.235-71  Treatment of confidential business information.
1552.235-72  Control and Security of Federal Insecticide, Fungicide, and 
          Rodenticide Act confidential business information (Apr 1996).
1552.235-73  Access to Federal Insecticide, Fungicide, and Rodenticide 
          Act Confidential business information (Apr 1996).
1552.235-74  Control and Security of Toxic Substances Control Act 
          Confidential business information (Apr 1996).
1552.235-75  Access to Toxic Substances Control Act confidential 
          business information (Apr 1996).
1552.235-76  Treatment of confidential business information (Apr 1996).
1552.235-77  Data Security for Federal Insecticide, Fungicide, and 
          Rodenticide Act confidential business information (Apr 1996).
1552.235-78  Data security for Toxic Substances Control Act confidential 
          business information (Apr 1996).
1552.235-79  Release of contractor confidential business information 
          (Apr 1996).
1552.236-70  Samples and certificates.
1552.237-70  Contract publication review procedure.
1552.237-71  Technical direction.
1552.237-72  Key personnel.
1552.237-73  Consultant services and consent.
1552.237-74  Publicity.
1552.237-75  Paperwork Reduction Act.

[[Page 61]]

1552.239-103  Acquisition of Energy Star compliant microcomputers, 
          including personal computers, monitors and printers.
1552.242-70  Indirect costs.
1552.245-70  Decontamination of government property.
1552.245-71  Government-furnished data.
1552.245-72  Fabrication or acquisition of nonexpendable property.
1552.246-70  Quality Assurance (QA) Program Plan.
1552.246-71  Quality Assurance (QA) Project Plan.
1552.246-72  Quality Assurance (QA) Project Plan documentation.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8867, Mar. 8, 1984, unless otherwise noted.



             Subpart 1552.2--Texts of Provisions and Clauses



Sec. 1552.203-70  Current/former agency employee involvement certification.

    As prescribed in 1503.603, insert the following solicitation 
provision in all EPA solicitation documents for sole source 
acquisitions.

   Current/Former Agency Employee Involvement Certification (Apr 1984)

    The offeror (quoter) hereby certifies that:
    (a) He is [  ] is not [  ] a former regular or special EPA employee 
whose EPA employment terminated within one year prior to submission of 
this offer (quote).
    (b) He does [  ] does not [  ] employ or propose to employ a 
current/former regular or special EPA employee whose EPA employment 
terminated within one year prior to submission of this offer (quote) and 
who has been or will be involved, directly or indirectly, in developing 
or negotiating this offer (quote) for the offeror (quoter), or in the 
management, administration or performance of any contract resulting from 
this offer (quote).
    (c) He does [  ] does not [  ] employ or propose to employ as a 
consultant or subcontractor under any contract resulting from this offer 
(quote) a current/former regular or special EPA employee whose EPA 
employment terminated within one year prior to submission of this offer 
(quote).
    (d) A former regular or special EPA employee whose EPA employment 
terminated within one year prior to submission of this offer (quote) or 
such former employee's spouse or minor child does [  ] does not [  ] own 
or substantially own or control the offeror's (quoter's) firm.
    (e) See EPAAR part 1503 for definitions of the terms ``regular'' and 
``special employee.''

                           (End of provision)

[49 FR 8867, Mar. 8, 1984, as amended at 50 FR 14360, Apr. 11, 1985]



Sec. 1552.208-70  Printing.

    As prescribed in 1508.870, insert the following contract clause in 
all type contracts which require printing, duplication, binding, 
reproduction, and related services and are subject to the provisions of 
the Government Printing and Binding Regulations published by the Joint 
Committee on Printing, Congress of the United States.

                           Printing (Apr 1984)

    Unless otherwise specified in this contract, the Contractor shall 
not engage in, nor subcontract for, any printing (as that term is 
defined in title I of the Government Printing and Binding Regulations in 
effect on the effective date of this contract) in connection with the 
performance of work under this contract. Provided, however, that 
performance of a requirement under this contract involving the 
duplication of less than 5,000 units of only one page, or less than 
25,000 units in the aggregate of multiple pages, such pages not 
exceeding a maximum image size of 10\3/4\ by 14\1/4\ inches, will not be 
deemed to be printing.

                             (End of clause)



Sec. 1552.209-70  Organizational conflict of interest notification.

    As prescribed in 1509.507-1(b), insert the following solicitation 
provision in all solicitations except:
    (a) When specific notices or clauses are required per EPAAR part 
1509;
    (b) When the procurement is with another federal agency (however, 
the provision is included in solicitations issued under the Small 
Business Administration's (SBA) 8(a) program); and
    (c) When the procurement is accomplished through small purchase 
procedures (use is optional for small purchases).

       Organizational Conflict of Interest Notification (Apr 1984)

    (a) The prospective Contractor certifies, to the best of its 
knowledge and belief, that it is not aware of any information bearing on 
the existence of any potential organizational conflict of interest. If 
the prospective Contractor cannot so certify, it shall provide a 
disclosure statement in its proposal which

[[Page 62]]

describes all relevant information concerning any past, present, or 
planned interests bearing on whether it (including its chief executives 
and directors, or any proposed consultant or subcontractor) may have a 
potential organizational conflict of interest.
    (b) Prospective Contractors should refer to FAR subpart 9.5 and 
EPAAR part 1509 for policies and procedures for avoiding, neutralizing, 
or mitigating organizational conflicts of interest.
    (c) If the Contracting Officer determines that a potential conflict 
exists, the prospective Contractor shall not receive an award unless the 
conflict can be avoided or otherwise resolved through the inclusion of a 
special contract clause or other appropriate means. The terms of any 
special clause are subject to negotiation.

                           (End of provision)

[49 FR 8867, Mar. 8, 1994, as amended at 59 FR 18620, Apr. 19, 1994]



Sec. 1552.209-71  Organizational conflicts of interest.

    As prescribed in 1509.507-2, insert the following contract clause in 
all contracts except:
    (a) When specific clauses are required per EPAAR part 1509;
    (b) When the procurement is with another Federal agency (however, 
the provision is included in contracts with SBA and its subcontractor 
under the 8(a) program); and
    (c) When the procurement is accomplished through small purchase 
procedures (use is optional for small purchases).

             Organizational Conflicts of Interest (May 1994)

    (a) The Contractor warrants that, to the best of the Contractor's 
knowledge and belief, there are no relevant facts or circumstances which 
could give rise to an organizational conflict of interest, as defined in 
FAR subpart 9.5, or that the Contractor has disclosed all such relevant 
information.
    (b) Prior to commencement of any work, the Contractor agrees to 
notify the Contracting Officer immediately that, to the best of its 
knowledge and belief, no actual or potential conflict of interest exists 
or to identify to the Contracting Officer any actual or potential 
conflict of interest the firm may have. In emergency situations, 
however, work may begin but notification shall be made within five (5) 
working days.
    (c) The Contractor agrees that if an actual or potential 
organizational conflict of interest is identified during performance, 
the Contractor will immediately make a full disclosure in writing to the 
Contracting Officer. This disclosure shall include a description of 
actions which the Contractor has taken or proposes to take, after 
consultation with the Contracting Officer, to avoid, mitigate, or 
neutralize the actual or potential conflict of interest. The Contractor 
shall continue performance until notified by the Contracting Officer of 
any contrary action to be taken.
    (d) Remedies--The EPA may terminate this contract for convenience, 
in whole or in part, if it deems such termination necessary to avoid an 
organizational conflict of interest. If the Contractor was aware of a 
potential organizational conflict of interest prior to award or 
discovered an actual or potential conflict after award and did not 
disclose it or misprepresented relevant information to the Contracting 
officer, the Government may terminate the contract for default, debar 
the Contractor from Government contracting, or pursue such other 
remedies as may be permitted by law or this contract.
    (e) The Contractor agrees to insert in each subcontract or 
consultant agreement placed hereunder, except for subcontracts or 
consultant agreements for well drilling, fence erecting, plumbing, 
utility hookups, security guard services, or electrical services, 
provisions which shall conform substantially to the language of this 
clause, including this paragraph (e), unless otherwise authorized by the 
Contracting Officer.

                             (End of clause)

                      Alternate I to Paragraph (e)

    (e) The Contractor agrees to insert in each subcontract or 
consultant agreement placed hereunder provisions which shall conform 
substantially to the language of this clause, including this paragraph 
(e), unless otherwise authorized by the Contracting Officer.

[49 FR 8867, Mar. 8, 1994, as amended at 59 FR 18620, Apr. 19, 1994]



Sec. 1552.209-72  Organizational conflict of interest certification.

    As prescribed in 1509.507-1(b), insert the following provision in 
all solicitation documents when applicable.

      Organizational Conflict of Interest Certification (Apr 1984)

    The offeror [  ] is [  ] is not aware of any information bearing on 
the existence of any potential organizational conflict of interest. If 
the offeror is aware of information bearing on whether a potential 
conflict may exist, the offeror shall provide a disclosure statement 
describing this information. (See section L of the solicitation for 
further information.)

[[Page 63]]

                           (End of provision)

[49 FR 8867, Mar. 8, 1994, as amended at 59 FR 18620, Apr. 19, 1994]



Sec. 1552.209-73  Notification of conflicts of interest regarding personnel.

    As prescribed in 1509.507-2(b) insert the following clause: 1994)
    (a) In addition to the requirements of the contract clause en1994)
    (a) In addition to the requirements of the contract clause entitled 
``Organizational Conflicts of Interest,'' the following provisions with 
regard to employee personnel performing under this contract shall apply 
until the earlier of the following two dates: the termination date of 
the affected employee(s) or the expiration date of the contract.
    (b) The Contractor agrees to notify immediately the EPA Project 
Officer and the Contracting Officer of (1) any actual or potential 
personal conflict of interest with regard to any of its employees 
working on or having access to information regarding this contract, or 
(2) any such conflicts concerning subcontractor employees or consultants 
working on or having access to information regarding this contract, when 
such conflicts have been reported to the Contractor. A personal conflict 
of interest is defined as a relationship of an employee, subcontractor 
employee, or consultant with an entity that may impair the objectivity 
of the employee, subcontractor employee, or consultant in performing the 
contract work.
    (c) The Contractor agrees to notify each Project Officer and 
Contracting Officer prior to incurring costs for that employee's work 
when an employee may have a personal conflict of interest. In the event 
that the personal conflict of interest does not become known until after 
performance on the contract begins, the Contractor shall immediately 
notify the Contracting Officer of the personal conflict of interest. The 
Contractor shall continue performance of this contract until notified by 
the Contracting Officer of the appropriate action to be taken.
    (d) The Contractor agrees to insert in any subcontract or consultant 
agreement placed hereunder, except for subcontracts or consultant 
agreements for well drilling, fence erecting, plumbing, utility hookups, 
security guard services, or electrical services, provisions which shall 
conform substantially to the language of this clause, including this 
paragraph (d), unless otherwise authorized by the Contracting Officer.

                             (End of clause)

[59 FR 18620, Apr. 19, 1994]



Sec. 1552.209-74  Limitation of future contracting.

    As prescribed in 1509.507-2(c), insert the following clause or 
alternate:

           Limitation of Future Contracting (ARCS) (May 1994)

    (a) The parties to this contract agree that the Contractor will be 
restricted in its future contracting in the manner described below. 
Except as specifically provided in this clause, the Contractor shall be 
free to compete for contracts on an equal basis with other companies.
    (b) The Contractor will be ineligible to enter into a contract for 
remedial action projects for which the Contractor has developed the 
statement of work or the solicitation package.
    (c) The following applies when ARCS work is performed under this 
contract and when both ARCS work and Field Investigative Team (FIT) work 
are performed on the same site under this contract: Unless prior written 
approval is obtained from the cognizant EPA Contracting Officer, the 
Contractor, during the life of the work assignment and for a period of 
five (5) years after the completion of the work assignment, agrees not 
to enter into a contract with or to represent any party, other than EPA, 
with respect to: (1) any work relating to CERCLA activities which 
pertain to a site where the Contractor previously performed work for EPA 
under this contract; or (2) any work that may jeopardize CERCLA 
enforcement actions which pertain to a site where the Contractor 
previously performed work for the EPA under this contract.
    (d) The following applies to FIT work at sites under this contract 
where only FIT work is performed, except for those sites where EPA has 
made a determination of ``no further remedial action planned'' (NFRAP): 
Unless prior written approval is obtained from the cognizant EPA 
Contracting Officer, the Contractor, during the life of the work 
assignment and for a period of three (3) years after the completion of 
the work assignment, agrees not to enter into a contract with or to 
represent any party, other than EPA, with respect to: (1) Any work 
relating to CERCLA activities which pertain to a site where the 
Contractor previously performed work for EPA under this contract; or (2) 
any work that may jeopardize CERCLA enforcement actions which pertain to 
a site where the Contractor previously performed work for the EPA under 
this contract.
    (e) The Contractor agrees in advance that if any bids/proposals are 
submitted for any work that would require written approval of the 
Contracting Officer prior to entering into a contract subject to the 
restrictions of

[[Page 64]]

this clause, then the bids/proposals are submitted at the Contractor's 
own risk. Therefore, no claim shall be made against the Government to 
recover bid/proposal costs as a direct cost whether the request for 
authorization to enter into the contract is denied or approved.
    (f) To the extent that the work under this contract requires access 
to proprietary or confidential business or financial data of other 
companies, and as long as such data remains proprietary or confidential, 
the Contractor shall protect such data from unauthorized use and 
disclosure.
    (g) The Contractor agrees to insert in each subcontract or 
consultant agreement placed hereunder, except for subcontracts or 
consultant agreements for nondiscretionary technical or engineering 
services, including treatability studies, well drilling, fence erecting, 
plumbing, utility hookups, security guard services, or electrical 
services, provisions which shall conform substantially to the language 
of this clause, including this paragraph (g) unless otherwise authorized 
by the Contracting Officer. The Contractor may request in writing that 
the Contracting Officer exempt from this clause a particular subcontract 
or consultant agreement for nondiscretionary technical or engineering 
services not specifically listed above, including laboratory analysis. 
The Contracting Officer will review and evaluate each request on a case-
by-case basis before approving or disapproving the request.
    (h) If the Contractor seeks an expedited decision regarding its 
initial future contracting request, the Contractor may submit its 
request to both the Contracting Officer and the next administrative 
level within the Contracting Officer's organization.
    (i) A review process available to the Contractor when an adverse 
determination is received shall consist of a request for reconsideration 
to the Contracting Officer or a request for review submitted to the next 
administrative level within the Contracting Officer's organization. An 
adverse determination resulting from a request for reconsideration by 
the Contracting Officer will not preclude the contractor from requesting 
a review by the next administrative level. Either a request for review 
or a request for reconsideration must be submitted to the appropriate 
level within 30 calendar days after receipt of the initial adverse 
determination.

                             (End of clause)

     Limitation of Future Contracting Alternate I (TCRR) (May 1994)

    (a) The parties to this contract agree that the Contractor will be 
restricted in its future contracting in the manner described below. 
Except as specifically provided in this clause, the Contractor shall be 
free to compete for contracts on an equal basis with other companies.
    (b) If the Contractor, under the terms of this contract, or through 
the performance of work pursuant to this contract, is required to 
develop specifications or statements of work and such specifications or 
statements of work are incorporated into an EPA solicitation, the 
Contractor shall be ineligible to perform the work described in that 
solicitation as a prime Contractor or subcontractor under an ensuing EPA 
contract.
    (c) Unless prior written approval is obtained from the cognizant EPA 
Contracting Officer, the Contractor, during the life of the delivery 
order or tasking document and for a period of five (5) years after the 
completion of the delivery order or tasking document, agrees not to 
enter into a contract with or to represent any party, other than EPA, 
with respect to: (1) any work relating to CERCLA activities which 
pertain to a site where the Contractor previously performed work for EPA 
under this contract; or (2) any work that may jeopardize CERCLA 
enforcement actions which pertain to a site where the Contractor 
previously performed work for the EPA under this contract.
    (d) During the life of this contract, including any options, the 
Contractor agrees that unless otherwise authorized by the Contracting 
Officer:
    (1) It will not provide any Technical Assistance Team (TAT) type 
activities (e.g., TAT contracts) to EPA within the Contractor's Time 
Critical Rapid Response (TCRR) assigned geographical area(s), either as 
a prime contractor, subcontractor, or consultant.
    (2) It will not provide any Technical Assistance Team (TAT) type 
activities (e.g., TAT contracts) to EPA as a prime contractor, 
subcontractor or consultant at a site where it has performed or plans to 
perform TCRR work.
    (3) It will be ineligible for award of TAT type activities contracts 
for sites within its respective TCRR assigned geographical area(s) which 
result from a CERCLA administrative order, a CERCLA or RCRA consent 
decree or a court order.
    (e) The Contractor agrees in advance that if any bids/proposals are 
submitted for any work that would require written approval of the 
Contracting Officer prior to entering into a contract subject to the 
restrictions of this clause, then the bids/proposals are submitted at 
the Contractor's own risk. Therefore, no claim shall be made against the 
Government to recover bid/proposal costs as a direct cost whether the 
request for authorization to enter into the contract is denied or 
approved.
    (f) To the extent that the work under this contract requires access 
to proprietary or confidential business or financial data of

[[Page 65]]

other companies, and as long as such data remains proprietary or 
confidential, the Contractor shall protect such data from unauthorized 
use and disclosure.
    (g) The Contractor agrees to insert in each subcontract or 
consultant agreement placed hereunder, except for subcontracts or 
consultant agreements for nondiscretionary technical or engineering 
services, including treatability studies, well drilling, fence erecting, 
plumbing, utility hookups, security guard services, or electrical 
services, provisions which shall conform substantially to the language 
of this clause, including this paragraph (g) unless otherwise authorized 
by the Contracting Officer. The Contractor may request in writing that 
the Contracting Officer exempt from this clause a particular subcontract 
or consultant agreement for nondiscretionary technical or engineering 
services not specifically listed above, including laboratory analysis. 
The Contracting Officer will review and evaluate each request on a case-
by-case basis before approving or disapproving the request.
    (h) If the Contractor seeks an expedited decision regarding its 
initial future contracting request, the Contractor may submit its 
request to both the Contracting Officer and the next administrative 
level within the Contracting Officer's organization.
    (i) A review process available to the Contractor when an adverse 
determination is received shall consist of a request for reconsideration 
to the Contracting Officer or a request for review submitted to the next 
administrative level within the Contracting Officer's organization. An 
adverse determination resulting from a request for reconsideration by 
the Contracting Officer will not preclude the Contractor from requesting 
a review by the next administrative level. Either a request for review 
or a request for reconsideration must be submitted to the appropriate 
level within 30 calendar days after receipt of the initial adverse 
determination.

                             (End of clause)

     Limitation of Future Contracting, Alternate II (TAT) (May 1994)

    (a) The parties to this contract agree that the Contractor will be 
restricted in its future contracting in the manner described below. 
Except as specifically provided in this clause, the Contractor shall be 
free to compete for contracts on an equal basis with other companies.
    (b) If the Contractor, under the terms of this contract, or through 
the performance of work pursuant to this contract, is required to 
develop specifications or statements of work and such specifications or 
statements of work are incorporated into an EPA solicitation, the 
Contractor shall be ineligible to perform the work described in that 
solicitation as a prime Contractor or subcontractor under an ensuing EPA 
contract.
    (c) Unless prior written approval is obtained from the cognizant EPA 
Contracting Officer, the Contractor, during the life of the technical 
direction document and for a period of five (5) years after the 
completion of the technical direction document, agrees not to enter into 
a contract with or to represent any party, other than EPA, with respect 
to: (1) Any work relating to CERCLA activities which pertain to a site 
where the Contractor previously performed work for EPA under this 
contract; or (2) any work that may jeopardize CERCLA enforcement actions 
which pertain to a site where the Contractor previously performed work 
for the EPA under this contract.
    (d) During the life of this contract, including any options, the 
Contractor agrees that unless otherwise authorized by the Contracting 
Officer:
    (1) It will not provide to EPA cleanup services (e.g., Time Critical 
Rapid Response (TCRR) contracts) within the Contractor's Technical 
Assistance Team (TAT) assigned geographical area(s), either as a prime 
Contractor, subcontractor, or consultant.
    (2) Unless an individual design for the site has been prepared by a 
third party, it will not provide to EPA as a prime contractor, 
subcontractor or consultant any remedial construction services at a site 
where it has performed or plans to perform TAT work. This clause will 
not preclude TAT contractors from performing construction management 
services under other EPA contracts.
    (3) It will be ineligible for award of TCRR type activities 
contracts for sites within its respective TAT assigned geographical 
area(s) which result from a CERCLA administrative order, a CERCLA or 
RCRA consent decree or a court order.
    (e) The Contractor agrees in advance that if any bids/proposals are 
submitted for any work that would require written approval of the 
Contracting Officer prior to entering into a contract subject to the 
restrictions of this clause, then the bids/proposals are submitted at 
the Contractor's own risk. Therefore, no claim shall be made against the 
Government to recover bid/proposal costs as a direct cost whether the 
request for authorization to enter into the contract is denied or 
approved.
    (f) To the extent that the work under this contract requires access 
to proprietary or confidential business or financial data of other 
companies, and as long as such data remains proprietary or confidential, 
the Contractor shall protect such data from unauthorized use and 
disclosure.
    (g) The Contractor agrees to insert in each subcontract or 
consultant agreement placed hereunder, except for subcontracts or 
consultant agreements for nondiscretionary technical or engineering 
services, including

[[Page 66]]

treatability studies, well drilling, fence erecting, plumbing, utility 
hookups, security guard services, or electrical services, provisions 
which shall conform substantially to the language of this clause, 
including this paragraph (g) unless otherwise authorized by the 
Contracting Officer. The Contractor may request in writing that the 
Contracting Officer exempt from this clause a particular subcontract or 
consultant agreement for nondiscretionary technical or engineering 
services not specifically listed above, including laboratory analysis. 
The Contracting Officer will review and evaluate each request on a case-
by-case basis before approving or disapproving the request.
    (h) If the Contractor seeks an expedited decision regarding its 
initial future contracting request, the Contractor may submit its 
request to both the Contracting Officer and the next administrative 
level within the Contracting Officer's organization.
    (i) A review process available to the Contractor when an adverse 
determination is received shall consist of a request for reconsideration 
to the Contracting Officer or a request for review submitted to the next 
administrative level within the Contracting Officer's organization. An 
adverse determination resulting from a request for reconsideration by 
the Contracting Officer will not preclude the Contractor from requesting 
a review by the next administrative level. Either a request for review 
or a request for reconsideration must be submitted to the appropriate 
level within 30 calendar days after receipt of the initial adverse 
determination.

(End of clause)

    Limitation of Future Contracting; Alternate III (ESAT) (May 1994)

    (a) The parties to this contract agree that the Contractor will be 
restricted in its future contracting in the manner described below. 
Except as specifically provided in this clause, the Contractor shall be 
free to compete for contracts on an equal basis with other companies.
    (b) If the Contractor, under the terms of this contract, or through 
the performance of work pursuant to this contract, is required to 
develop specifications or statements of work and such specifications or 
statements of work are incorporated into an EPA solicitation, the 
Contractor shall be ineligible to perform the work described in that 
solicitation as a prime Contractor or subcontractor under an ensuing EPA 
contract.
    (c) To the extent that the work under this contract requires access 
to proprietary or confidential business or financial data of other 
companies, and as long as such data remains proprietary or confidential, 
the Contractor shall protect such data from unauthorized use and 
disclosure.
    (d) The Contractor agrees to insert in each subcontract or 
consultant agreement placed hereunder, except for subcontracts or 
consultant agreements for nondiscretionary technical or engineering 
services, including treatability studies, well drilling, fence erecting, 
plumbing, utility hookups, security guard services, or electrical 
services, provisions which shall conform substantially to the language 
of this clause, including this paragraph (d) unless otherwise authorized 
by the Contracting Officer. The Contractor may request in writing that 
the Contracting Officer exempt from this clause a particular subcontract 
or consultant agreement for nondiscretionary technical or engineering 
services not specifically listed above, including laboratory analysis. 
The Contracting Officer will review and evaluate each request on a case-
by-case basis before approving or disapproving the request.
    (e) If the Contractor seeks an expedited decision regarding its 
initial future contracting request, the contractor may submit its 
request to both the Contracting Officer and the next administrative 
level within the Contracting Officer's organization.
    (f) A review process available to the Contractor when an adverse 
determination is received shall consist of a request for reconsideration 
to the Contracting Officer or a request for review submitted to the next 
administrative level within the Contracting Officer's organization. An 
adverse determination resulting from a request for reconsideration by 
the Contracting Officer will not preclude the Contractor from requesting 
a review by the next administrative level. Either a request for review 
or a request for reconsideration must be submitted to the appropriate 
level within 30 calendar days after receipt of the initial adverse 
determination.

(End of clause)

     Limitation of Future Contracting, Alternate IV (TES) (May 1994)

    (a) The parties to this contract agree that the Contractor will be 
restricted in its future contracting in the manner described below. 
Except as specifically provided in this clause, the Contractor shall be 
free to compete for contracts on an equal basis with other companies.
    (b) During the performance period of this contract, the Contractor 
will be ineligible to enter into any contract for remedial planning and/
or implementation projects for sites within the assigned geographical 
area(s) covered by this contract without the prior written approval of 
the EPA Contracting Officer.
    (c) If the Contractor, under the terms of this contract, or through 
the performance of work pursuant to this contract, is required to 
develop specifications or statements of work and such specifications or 
statements

[[Page 67]]

of work are incorporated into an EPA solicitation, the Contractor shall 
be ineligible to perform the work described in that solicitation as a 
prime Contractor or subcontractor under an ensuing EPA contract.
    (d) Unless prior written approval is obtained from the cognizant EPA 
Contracting Officer, the Contractor, during the life of the work 
assignment and for a period of seven (7) years after the completion of 
the work assignment, agrees not to enter into a contract with or to 
represent any party, other than EPA, with respect to: (1) Any work 
relating to CERCLA activities which pertain to a site where the 
Contractor previously performed work for EPA under this contract; or (2) 
any work that may jeopardize CERCLA enforcement actions which pertain to 
a site where the Contractor previously performed work for the EPA under 
this contract.
    (e) The Contractor agrees in advance that if any bids/proposals are 
submitted for any work that would require written approval of the 
Contracting Officer prior to entering into a contract subject to the 
restrictions of this clause, then the bids/proposals are submitted at 
the Contractor's own risk. Therefore, no claim shall be made against the 
Government to recover bid/proposal costs as a direct cost whether the 
request for authorization to enter into the contract is denied or 
approved.
    (f) To the extent that the work under this contract requires access 
to proprietary or confidential business or financial data of other 
companies, and as long as such data remains proprietary or confidential, 
the Contractor shall protect such data from unauthorized use and 
disclosure.
    (g) The Contractor agrees to insert in each subcontract or 
consultant agreement placed hereunder, except for subcontracts or 
consultant agreements for nondiscretionary technical or engineering 
services, including treatability studies, well drilling, fence erecting, 
plumbing, utility hookups, security guard services, or electrical 
services, provisions which shall conform substantially to the language 
of this clause, including this paragraph (g) unless otherwise authorized 
by the Contracting Officer. The Contractor may request in writing that 
the Contracting Officer exempt from this clause a particular subcontract 
or consultant agreement for nondiscretionary technical or engineering 
services not specifically listed above, including laboratory analysis. 
The Contracting Officer will review and evaluate each request on a case-
by-case basis before approving or disapproving the request.
    (h) If the Contractor seeks an expedited decision regarding its 
initial future contracting request, the Contractor may submit its 
request to both the Contracting Officer and the next administrative 
level within the Contracting Officer's organization.
    (i) A review process available to the Contractor when an adverse 
determination is received shall consist of a request for reconsideration 
to the Contracting Officer or a request for review submitted to the next 
administrative level within the Contracting Officer's organization. An 
adverse determination resulting from a request for reconsideration by 
the Contracting Officer will not preclude the Contractor from requesting 
a review by the next administrative level. Either a request for review 
or a request for reconsideration must be submitted to the appropriate 
level within 30 calendar days after receipt of the initial adverse 
determination.

(End of clause)

  Limitation of Future Contracting, Alternate V (Headquarters Support) 
                               (May 1994)

    (a) The parties to this contract agree that the Contractor will be 
restricted in its future contracting in the manner described below. 
Except as specifically provided in this clause, the Contractor shall be 
free to compete for contracts on an equal basis with other companies.
    (b) If the Contractor, under the terms of this contract, or through 
the performance of work pursuant to this contract, is required to 
develop specifications or statements of work and such specifications or 
statements of work are incorporated into an EPA solicitation, the 
Contractor shall be ineligible to perform the work described in that 
solicitation as a prime Contractor or subcontractor under an ensuing EPA 
contract.
    (c) The Contractor, during the life of this contract, will be 
ineligible to enter into a contract with EPA to perform response action 
work (e.g., Alternative Remedial Contracting Strategy (ARCS), Time 
Critical Rapid Response (TCRR), Technical Assistance Team (TAT), and 
Technical Enforcement Support (TES) contracts), unless otherwise 
authorized by the Contracting Officer.
    (d) The Contractor agrees in advance that if any bids/proposals are 
submitted for any work that would require written approval of the 
Contracting Officer prior to entering into a contract subject to the 
restrictions of this clause, then the bids/proposals are submitted at 
the Contractor's own risk. Therefore, no claim shall be made against the 
Government to recover bid/proposal costs as a direct cost whether the 
request for authorization to enter into the contract is denied or 
approved.
    (e) To the extent that the work under this contract requires access 
to proprietary or confidential business or financial data of other 
companies, and as long as such data remains proprietary or confidential, 
the Contractor shall protect such data from unauthorized use and 
disclosure.

[[Page 68]]

    (f) The Contractor agrees to insert in each subcontract or 
consultant agreement placed hereunder, except for subcontracts or 
consultant agreements for nondiscretionary technical or engineering 
services, including treatability studies, well drilling, fence erecting, 
plumbing, utility hookups, security guard services, or electrical 
services, provisions which shall conform substantially to the language 
of this clause, including this paragraph (f) unless otherwise authorized 
by the Contracting Officer. The Contractor may request in writing that 
the Contracting Officer exempt from this clause a particular subcontract 
or consultant agreement for nondiscretionary technical or engineering 
services not specifically listed above, including laboratory analysis. 
The Contracting Officer will review and evaluate each request on a case-
by-case basis before approving or disapproving the request.
    (g) If the Contractor seeks an expedited decision regarding its 
initial future contracting request, the Contractor may submit its 
request to both the Contracting Officer and the next administrative 
level within the Contracting Officer's organization.
    (h) A review process available to the Contractor when an adverse 
determination is received shall consist of a request for reconsideration 
to the Contracting Officer or a request for review submitted to the next 
administrative level within the Contracting Officer's organization. An 
adverse determination resulting from a request for reconsideration by 
the Contracting Officer will not preclude the Contractor from requesting 
a review by the next administrative level. Either a request for review 
or a request for reconsideration must be submitted to the appropriate 
level within 30 calendar days after receipt of the initial adverse 
determination.

(End of clause)

  Limitation of Future Contracting; Alternate VI (Site Specific) (May 
                                  1994)

    The parties to this contract agree that the Contractor will be 
restricted in its future contracting in the manner described below. 
Except as specifically provided in this clause, the Contractor shall be 
free to compete for contracts on an equal basis with other companies.
    (b) If the Contractor, under the terms of this contract, or through 
the performance of work pursuant to this contract, is required to 
develop specifications or statements of work and such specifications or 
statements of work are incorporated into an EPA solicitation, the 
Contractor shall be ineligible to perform the work described in that 
solicitation as a prime contractor or subcontractor under an ensuing EPA 
contract.
    (c) Unless prior written approval is obtained from the cognizant EPA 
Contracting Officer, the Contractor, during the life of the contract and 
for a period of five (5) years after the expiration of the contract 
agrees not to enter into a contract with or to represent any party, 
other than EPA, with respect to: (1) any work relating to CERCLA 
activities which pertain to the site where the Contractor previously 
performed work for EPA under this contract; or (2) any work that may 
jeopardize CERCLA enforcement actions which pertain to the site where 
the Contractor previously performed work for the EPA under this 
contract.
    (d) During the life of this contract, including any options, the 
Contractor agrees that unless otherwise authorized by the Contracting 
Officer:
    (1) It will not provide any Technical Assistance Team (TAT) type 
activities (e.g., TAT contracts) to EPA on the site either as a prime 
contractor, subcontractor, or consultant.
    (2) It will be ineligible for award of contracts pertaining to this 
site which result from a CERCLA administrative order, a CERCLA or RCRA 
consent decree or a court order.
    (e) The Contractor agrees in advance that if any bids/proposals are 
submitted for any work that would require written approval of the 
Contracting Officer prior to entering into a contract subject to the 
restrictions of this clause, then the bids/proposals are submitted at 
the Contractor's own risk. Therefore, no claim shall be made against the 
Government to recover bid/proposal costs as a direct cost whether the 
request for authorization to enter into the contract is denied or 
approved.
    (f) To the extent that the work under this contract requires access 
to proprietary or confidential business or financial data of other 
companies, and as long as such data remains proprietary or confidential, 
the Contractor shall protect such data from unauthorized use and 
disclosure.
    (g) Contractors who are performing nondiscretionary technical or 
engineering services, including construction work, may request a waiver 
from or modification to this clause by submitting a written request to 
the Contracting Officer. The Contracting Officer shall make the 
determination regarding whether to waive or modify the clause on a case-
by-case basis.
    (h) The Contractor agrees to insert in each subcontract or 
consultant agreement placed hereunder, except for subcontracts or 
consultant agreements for nondiscretionary technical or engineering 
services, including treatability studies, well drilling, fence erecting, 
plumbing, utility hookups, security guard services, or electrical 
services, provisions which shall conform substantially to the language 
of this clause, including this paragraph (h) unless otherwise authorized 
by the Contracting Officer. The Contractor may

[[Page 69]]

request in writing that the Contracting Officer exempt from this clause 
a particular subcontract or consultant agreement for nondiscretionary 
technical or engineering services not specifically listed above, 
including laboratory analysis. The Contracting Officer will review and 
evaluate each request on a case-by-case basis before approving or 
disapproving the request.
    (i) If the Contractor seeks an expedited decision regarding its 
initial future contracting request, the Contractor may submit its 
request to both the Contracting Officer and the next administrative 
level within the Contracting Officer's organization.
    (j) A review process available to the Contractor when an adverse 
determination is received shall consist of a request for reconsideration 
to the Contracting Officer or a request for review submitted to the next 
administrative level within the Contracting Officer's organization. An 
adverse determination resulting from a request for reconsideration by 
the Contracting Officer will not preclude the Contractor from requesting 
a review by the next administrative level. Either a request for review 
or a request for reconsideration must be submitted to the appropriate 
level within 30 calendar days after receipt of the initial adverse 
determination.

(End of clause)

[59 FR 18620, Apr. 19, 1994]



Sec. 1552.210-70  Reports of work.

    As prescribed in 1510.011-70, insert one of the contract clauses in 
this subsection when the contract requires the delivery of reports. The 
basic clause should be used when reports are specified in a contract 
attachment. Alternate I is to be used to specify reports in the contract 
schedule.

                       Reports of Work (Apr 1984)

    The Contractor shall prepare and deliver reports in accordance with 
Attachment.* * *
    The OMB clearance number for progress reports delivered under this 
contract is 2030-0005 with an expiration date of May 31, 1986.

                             (End of clause)

            Reports of Work (Apr 1984) Alternate I (Apr 1984)

    The Contractor shall prepare and deliver the below listed reports to 
the designated addressees. Each report shall cite the contract number 
and identify the Environmental Protection Agency as the sponsoring 
agency.
    The OMB clearance number for progress reports delivered under this 
contract is 2030-0005 with an expiration date of May 31, 1986. Required 
reports are:

------------------------------------------------------------------------
           Reports description              No. copies     Addressees   
------------------------------------------------------------------------
                                           ...........  ................
                                           ...........  ................
                                           ...........  ................
------------------------------------------------------------------------

                             (End of clause)

1552.210-71  [Reserved]



Sec. 1552.210-72  Monthly progress report.

    As prescribed in 1510.011-72, insert the following clause:

                   Monthly Progress Report (Jun 1996)

    (a) The Contractor shall furnish ______ copies of the combined 
monthly technical and financial progress report stating the progress 
made, including the percentage of the project completed, and a 
description of the work accomplished to support the cost. If the work is 
ordered using work assignments or delivery orders, include the estimated 
percentage of task completed during the reporting period for each work 
assignment or delivery order.
    (b) Specific discussions shall include difficulties encountered and 
remedial action taken during the reporting period, and anticipated 
activity with a schedule of deliverables for the subsequent reporting 
period.
    (c) The Contractor shall provide a list of outstanding actions 
awaiting Contracting Officer authorization, noted with the corresponding 
work assignment, such as subcontractor/consultant consents, overtime 
approvals, and work plan approvals.
    (d) The report shall specify financial status at the contract level 
as follows:
    (1) For the current reporting period, display the amount claimed.
    (2) For the cumulative period and the cumulative contract life 
display: the amount obligated, amount originally invoiced, amount paid, 
amount suspended, amount disallowed, and remaining approved amount. The 
remaining approved amount is defined as the total obligated amount, less 
the total amount originally invoiced, plus total amount disallowed.
    (3) Labor hours.
    (i) A list of employees, their labor categories, and the numbers of 
hours worked for the reporting period.
    (ii) For the current reporting period, display the expended direct 
labor hours and costs broken out by EPA contract labor hour category for 
the prime contractor and each subcontractor and consultant.
    (iii) For the cumulative contract period and the cumulative contract 
life display: the negotiated, expended and remaining direct labor hours 
and costs broken out by EPA contract labor hour category for the prime

[[Page 70]]

contractor, and each subcontractor and consultant.
    (iv) Display the estimated direct labor hours and costs to be 
expended during the next reporting period.
    (4) Display the current dollar ceilings in the contract, net amount 
invoiced, and remaining amounts for the following categories: Direct 
labor hours, total estimated cost, award fee pool (if applicable), 
subcontracts by individual subcontractor, travel, program management, 
and Other Direct Costs (ODCs).
    (5) Unbilled allowable costs. Display the total costs incurred but 
unbilled for the current reporting period and cumulative for the 
contract.
    (6) Average cost of direct labor. Compare the actual average cost 
per hour to date with the average cost per hour of the approved work 
plans for the current contract period.
    (e) The report shall specify financial status at the work assignment 
or delivery order level as follows:
    (1) For the current period, display the amount claimed.
    (2) For the cumulative period display: amount shown on workplan, or 
latest work assignment/delivery order amendment amount (whichever is 
later); amount currently claimed; amount paid; amount suspended; amount 
disallowed; and remaining approved amount. The remaining approved amount 
is defined as: the workplan amount or latest work assignment or delivery 
order amount (whichever is later), less total amounts originally 
invoiced, plus total amount disallowed.
    (3) Labor hours.
    (i) A list of employees, their labor categories, and the number of 
hours worked for the reporting period.
    (ii) For the current reporting period, display the expended direct 
labor hours and costs broken out by EPA contract labor hour category for 
the prime contractor and each subcontractor and consultant.
    (iii) For the current reporting period, cumulative contract period, 
and the cumulative contract life display: the negotiated, expended and 
remaining direct labor hours and costs broken out by EPA contract labor 
hour category for the prime contractor and each subcontractor and 
consultant.
    (iv) Display the estimated direct labor hours and costs to be 
expended during the next reporting period.
    (v) Display the estimates of remaining direct labor hours and costs 
required to complete the work assignment or delivery order.
    (4) Unbilled allowable costs. Display the total costs incurred but 
unbilled for the current reporting period and cumulative for the work 
assignment.
    (5) Average cost of direct labor. Display the actual average cost 
per hour with the cost per hour estimated in the workplan.
    (6) A list of deliverables for each work assignment or delivery 
order during the reporting period.
    (f) This submission does not change the notification requirements of 
the ``Limitation of Cost'' or ``Limitation of Funds'' clauses requiring 
separate written notice to the Contracting Officer.
    (g) The reports shall be submitted to the following addresses on or 
before the ______ of each month following the first complete reporting 
period of the contract. See EPAAR 1552.232-70, Submission of Invoices, 
paragraph (e), for details on the timing of submittals. Distribute 
reports as follows:

------------------------------------------------------------------------
               No. of copies                          Addressee         
------------------------------------------------------------------------
____________..............................  Project Officer.            
____________..............................  Contracting Officer.        
------------------------------------------------------------------------


[61 FR 29317, June 10, 1996]
1552.210-73--1552.210-74  [Reserved]



Sec. 1552.210-75  Working files.

    As prescribed in 1510.011-75, insert the following clause in all 
applicable EPA contracts.

                        Working Files (Apr 1984)

    The Contractor shall maintain accurate working files (by task or 
work assignment) on all work documentation including calculations, 
assumptions, interpretations of regulations, sources of information, and 
other raw data required in the performance of this contract. The 
Contractor shall provide the information contained in its working files 
upon request of the Contracting Officer.

                             (End of clause)

[49 FR 8867, Mar. 8, 1984. Redesignated at 55 FR 39622, Sept. 28, 1990, 
as amended at 21994, May 4, 1995]



Sec. 1552.210-76  Legal analysis.

    As prescribed in 1510.011-76, insert this contract clause when it is 
determined that the contract involves legal analysis.

                        Legal Analysis (Apr 1984)

    The Contractor shall furnish to the Project Officer one (1) copy of 
any draft legal analysis. The Government will provide a response to the 
Contractor within thirty (30) calendar days after receipt. The 
Contractor shall not finalize the analysis until the Government has 
given approval.

[[Page 71]]

                             (End of clause)

[49 FR 8867, Mar. 8, 1984. Redesignated at 55 FR 39622, Sept. 28, 1990, 
as amended at 60 FR 21994, May 4, 1995]



Sec. 1552.210-77  Final reports.

    As prescribed in 1510.011-77, insert this contract clause when a 
contract requires a draft and a final report.

                        Final Reports (Apr 1984)

    (a) ``Draft Report''--The Contractor shall submit to the Project 
Officer ____ copies of the draft final report on or before ____ (date) 
____ The Contractor shall furnish to the Contracting Officer a copy of 
the letter transmitting the draft. The draft shall be typed double-
spaced or space-and-a-half and shall include all pertinent material 
required in the final report. The Government will review for approval or 
disapproval the draft and provide a response to the Contractor within 
____ calendar days after receipt. If the Government does not provide a 
response within the allotted review time, the Contractor immediately 
shall notify the Contracting Officer in writing.
    (b) ``Final Report''--The Contractor shall deliver a final report on 
or before the last day of the period of performance specified in the 
contract. Distribution is as follows:

------------------------------------------------------------------------
             No. of copies                          Addressee           
------------------------------------------------------------------------
1.....................................  EPA Library.                    
1.....................................  Contracting Officer.            
1.....................................  Project Officer.                
------------------------------------------------------------------------

                             (End of clause)

[49 FR 8867, Mar. 8, 1984. Redesignated at 55 FR 39622, Sept. 28, 1990, 
as amended at 60 FR 21994, May 4, 1995]



Sec. 1552.210-78  Management consulting services.

    As prescribed in 1510.011-78, insert the following contract clause 
in all contracts for management consulting services.

                Management Consulting Services (Apr 1985)

    All reports containing recommendations to the Environmental 
Protection Agency shall include the following information on the cover 
of each report: (a) Name and business address of the contractor; (b) 
contract number; (c) contract dollar amount; (d) whether the contract 
was subject to full and open competition or a sole source acquisition; 
(e) name of the EPA Project Officer and the EPA Project Officer's office 
identification and location; and (f) date of report.

                             (End of clause)

[50 FR 14360, Apr. 11, 1985; 50 FR 15425, Apr. 18, 1985. Redesignated at 
55 FR 39622, Sept. 28, 1990, as amended at 60 FR 21994, May 4, 1995]



Sec. 1552.210-79  Compliance with EPA Policies for Information Resources Management.

    As prescribed in 1510.011-79, insert the following clause:

 Compliance With EPA Policies for Information Resources Management (Sep 
                                  1991)

    (a) Definition. Information Resources Management (IRM) is defined as 
any planning, budgeting, organizing, directing, training, promoting, 
controlling, and managing activities associated with the burden, 
collection, creation, use and dissemination of information. IRM includes 
both information itself, and the management of information and related 
resources such as personnel, equipment, funds, and technology. Examples 
of these services include but are not limited to the following:
    (1) The acquisition, creation, or modification of a computer program 
or automated data base for delivery to EPA or use by EPA or contractors 
operating EPA programs.
    (2) The analysis of requirements for, study of the feasibility of, 
evaluation of alternatives for, or design and development of a computer 
program or automated data base for use by EPA or contractors operating 
EPA programs.
    (3) Services that provide EPA personnel access to or use of computer 
or word processing equipment, software, or related services.
    (4) Services that provide EPA personnel access to or use of: Data 
communications; electronic messaging services or capabilities; 
electronic bulletin boards, or other forms of electronic information 
dissemination; electronic record-keeping; or any other automated 
information services.
    (5) Services that are subject to the Brooks Act of 1965, as amended 
(Pub. L. 89-306).
    (b) General. The Contractor shall perform any IRM related work under 
this contract in accordance with the IRM policies, standards and 
procedures set forth in this clause and noted below. Upon receipt of a 
work request (i.e. delivery order or work assignment), the Contractor 
shall check this listing of directives (see paragraph (d) for electronic 
access). The applicable directives for performance of the work request 
are those in effect on the date of issuance of the work request.
    (1) IRM Policies, Standards and Procedures. The 2100 Series (2100-
2199) of the Agency's Directive System contains the majority of the 
Agency's IRM policies, standards and procedures.

[[Page 72]]

    (2) Groundwater Program IRM Requirement. A contractor performing any 
work related to collecting Groundwater data; or developing or enhancing 
data bases containing Groundwater quality data shall comply with EPA 
Order 7500.1A--Minimum Set of Data Elements for Groundwater.
    (3) EPA Computing and Telecommunications Services. The Enterprise 
Technology Services Division (ETSD) Operational Directives Manual 
contains procedural information about the operation of the Agency's 
computing and telecommunications services. Contractors performing work 
for the Agency's National Computer Center or those who are developing 
systems which will be operating on the Agency's national platforms must 
comply with procedures established in the Manual. (This document is only 
available through electronic access.)
    (c) Printed Documents. Documents listed in (b)(1) and (b)(2) may be 
obtained from: U.S. Environmental Protection Agency Office of 
Administration Facilities Management and Services Division Distribution 
Section Mail Code: 3204 401 M Street, S.W. Washington, D.C. 20460 Phone: 
(202) 260-5797
    (d) Electronic access. (1) Internet. A complete listing, including 
full text, of documents included in the 2100 Series of the Agency's 
Directive System, as well as the two other EPA documents noted in this 
clause, is maintained on the EPA Public Access Server on the Internet. 
Gopher Access: gopher.epa.gov is the address to access the EPA Gopher. 
Select `menu keyword search' from the menu and search on the term `IRM 
Policy'. Look for IRM Policy, Standards and Guidance. World Wide Web 
Access: http://www.epa.gov is the address for the EPA's www homepage. 
From the homepage, search on the term `IRM Policy' and look for IRM 
Policy, Standards and Guidance.
    (2) Dial-Up Modem. All documents, including the listing, are 
available for browsing and electronic download through a dial-up modem. 
Dial (919) 558-0335 for access to the menu that contains the listing for 
EPA policies. Set the communication parameters to 8 data bits, no 
parity, 1 stop bit (8,N,1) Full Duplex, and the emulator to VT-100. The 
information is the same whether accessed through dial-up or the 
Internet. For technical assistance, call 1-800-334-2405.

(End of Clause)

[56 FR 42236, Aug. 27, 1991, as amended at 61 FR 33693, June 28, 1996]



Sec. 1552.210-80  Annual certification.

    As prescribed in 1510.011-80, insert the following clause:

                     Annual Certification (May 1994)

    The Contractor shall submit an annual conflict of interest 
certification to the Contracting Officer. In this certification, the 
Contractor shall certify annually that, to the best of the Contractor's 
knowledge and belief, all actual or potential organizational conflicts 
of interest have been reported to EPA. In addition, in this annual 
certification, the Contractor shall certify that it has informed its 
personnel who perform work under EPA contracts or relating to EPA 
contracts of their obligation to report personal and organizational 
conflicts of interest to the Contractor. Such certification must be 
signed by a senior executive of the company and submitted in accordance 
with instructions provided by the Contracting Officer. The initial 
certification shall cover the one-year period from the date of contract 
award, and all subsequent certifications shall cover successive annual 
periods thereafter, until expiration or termination of the contract. The 
certification must be received by the Contracting Officer no later than 
45 days after the close of the certification period covered.

(End of clause)

[59 FR 18623, Apr. 19, 1994]



Sec. 1552.212-70  Level of effort--cost-reimbursement term contract.

    As prescribed in 1512.104(a), insert the following contract clause 
in cost-reimbursement term contracts including cost contracts without 
fee, cost-sharing contracts, cost-plus-fixed-fee (CPFF) contracts, cost-
plus-incentive-fee contracts (CPIF), and cost-plus-award-fee contracts 
(CPAF).

      Level of Effort--Cost-Reimbursement Term Contract (Apr 1984)

    (a) The Contractor shall perform all work and provide all required 
reports within the level of effort specified below. The Government 
hereby orders----direct labor hours for the base period, which 
represents the Government's best estimate of the level of effort to 
fulfill these requirements.
    (b) Direct labor includes personnel such as engineers, scientists, 
draftsmen, technicians, statisticians, and programmers and not support 
personnel such as company management, typists, and key punch operators 
even though such support personnel are normally treated as direct labor 
by the Contractor. The level of effort specified in paragraph (a) 
includes Contractor, subcontractor, and consultant labor hours.
    (c) If the Contractor provides less than 90 percent of the level of 
effort specified for the base period or any optional period ordered, an 
equitable downward adjustment of the fixed fee, if any, for that period 
will be made. The Government may require the Contractor to provide 
additional effort up to 110 percent

[[Page 73]]

of the level of effort for any period until the estimated cost for that 
period has been reached. However, this additional effort shall not 
result in any increase in the fixed fee, if any. If this is a cost-plus-
incentive-fee (CPIF) contract, the term ``fee'' in this paragraph means 
``base fee and incentive fee.'' If this is a cost-plus-award-fee (CPAF) 
contract, the term ``fee'' in this paragraph means ``base fee and award 
fee.''
    (d) If the level of effort specified to be ordered during a given 
base or option period is not ordered during that period, that level of 
effort may not be acumulated and ordered during a subsequent period.
    (e) These terms and conditions do not supersede the requirements of 
either the ``Limitation of Cost'' or ``Limitation of Funds'' clauses.

                             (End of clause)



Sec. 1552.212-71  Work assignments.

    As prescribed in 1512.104(b), insert the following contract clause 
in cost-reimbursement type term form contracts when work assignments are 
to be used.

                       Work Assignments (Apr 1984)

    (a) The contractor shall perform work under this contract as 
specified in written work assignments issued by the Contracting Officer.
    (b) Each work assignment will include (1) a numerical designation, 
(2) the estimate of required labor hours, (3) the period of performance 
and schedule of deliverables, and (4) the description of the work.
    (c) The Contractor shall acknowledge receipt of each work assignment 
by returning to the Contracting Officer a signed copy of the work 
assignment within ____ calendar days after its receipt. The Contractor 
shall begin work immediately upon receipt of a work assignment. Within 
____ calendar days after receipt of a work assignment, the Contractor 
shall submit ____ copies of a work plan to the Project Officer and ____ 
copies to the Contracting Officer. The work plan shall include a 
detailed technical and staffing plan and a detailed cost estimate. 
Within ____ calendar days after receipt of the work plan, the 
Contracting Officer will provide written approval or disapproval of it 
to the Contractor. If the Contractor has not received approval on a work 
plan within ____ calendar days after its submission, the Contractor 
shall stop work on that work assignment. Also, if the Contracting 
Officer disapproves a work plan, the Contractor shall stop work until 
the problem causing the disapproval is resolved. In either case, the 
Contractor shall resume work only when the Contracting Officer finally 
approves the work plan.
    (d) This clause does not change the requirements of the ``Level of 
Effort'' clause, nor the notification requirements of either the 
``Limitation of Cost'' or ``Limitation of Funds'' clauses.
    (e) Work assignments shall not allow for any change to the terms or 
conditions of the contract. Where any language in the work assignment 
may suggest a change to the terms or conditions, the Contractor shall 
immediately notify the Contracting Officer.

                             (End of clause)

    Alternate I. As prescribed in 1512.104(b), modify the existing 
clause by adding the following paragraph (f) to the basic clause:
    (f) Within 20 days of receipt of the work assignment or similar 
tasking document, the Contractor shall provide a conflict of interest 
certification. Where work assignments or similar tasking documents are 
issued under this contract for work on or directly related to a site, 
the Contractor is only required to provide a conflict of interest 
certification for the first work assignment issued for that site. For 
all subsequent work on that site under this contract, the Contractor has 
a continuing obligation to search and report any actual or potential 
conflicts of interest, but no additional conflict of interest 
certifications are required.
    Before submitting the conflict of interest certification, the 
contractor shall search its records accumulated, at a minimum, over the 
past three years immediately prior to the receipt of the work assignment 
or similar tasking document. In the COI certification, the Contractor 
must certify to the best of the Contractor's knowledge and belief, that 
all actual or potential organizational conflicts of interest have been 
reported to the Contracting Officer or that to the best of the 
Contractor's knowledge and belief, no actual or potential organizational 
conflicts of interest exist. In addition, the Contractor must certify 
that its personnel who perform work under this work assignment or 
relating to this work assignment have been informed of their obligation 
to report personal and organizational conflicts of interest to the 
Contractor. The certification shall also include a statement that the 
Contractor recognizes its continuing obligation to identify and report 
any actual or potential conflicts of interest arising during performance 
of this work assignment or other work related to this site.
    Alternate II. As prescribed in 1512.104(b), modify the existing 
clause by adding the following paragraph (f) to the basic clause:
    (f) Within 20 days of receipt of the work assignment or similar 
tasking document, the Contractor shall provide a conflict of interest 
certification. Where work assignments or similar tasking documents are 
issued under this contract for work on or directly related to a site, 
the Contractor is only required to provide a conflict of interest 
certification for the first work assignment issued for that

[[Page 74]]

site. For all subsequent work on that site under this contract, the 
Contractor has a continuing obligation to search and report any actual 
or potential conflicts of interest, but no additional conflict of 
interest certifications are required.
    Before submitting the conflict of interest certification, the 
contractor shall initially search through all of its available records 
to identify any actual or potential conflicts of interest. During the 
first three years of this contract, the contractor shall search through 
all records created since the beginning of the contract plus the records 
of the contractor prior to the award of the contract until a minimum of 
three years of records are accumulated. Once three years of records have 
accumulated, prior to certifying, the contractor shall search its 
records accumulated, at a minimum, over the past three years immediately 
prior to the receipt of the work assignment or similar tasking document. 
In the certification, the Contractor must certify to the best of the 
Contractor's knowledge and belief, that all actual or potential 
organizational conflicts of interest have been reported to the 
Contracting Officer or that to the best of the Contractor's knowledge 
and belief, no actual or potential organizational conflicts of interest 
exist. In addition, the Contractor must certify that its personnel who 
perform work under this work assignment or relating to this work 
assignment have been informed of their obligation to report personal and 
organizational conflicts of interest to the Contractor. The 
certification shall also include a statement that the Contractor 
recognizes its continuing obligation to identify and report any actual 
or potential conflicts of interest arising during performance of this 
work assignment or other work related to this site.

(End of clause)

[49 FR 8867, Mar. 8, 1994, as amended at 59 FR 18624, Apr. 19, 1994]



Sec. 1552.213-70  Notice to suppliers of equipment.

    As prescribed in 1513.507(b), the Contracting Officer shall insert 
the following contract clause in orders for or lease of commercially 
available equipment.

               Notice to Suppliers of Equipment (Apr 1984)

    (a) It is the general policy of the Environmental Protection Agency 
that Contractor or vendor prescribed leases or maintenance agreements 
for equipment will NOT be executed.
    (b) Performance in accordance with the terms and conditions of the 
vendor's commercial lease, or customer service maintenance agreement, 
unless specified in the Schedule, may render the vendor's performance 
unacceptable, thereby permitting the Government to apply such 
contractual remedies as may be permitted by law, regulation, or the 
terms of this order.

                             (End of clause)

[49 FR 8867, Mar. 8, 1984; 49 FR 24734, June 15, 1984]



Sec. 1552.214-70  Past performance.

    As prescribed in 1514.210-6(a), insert this solicitation provision 
in all invitations for bids:

                       Past Performance (Apr 1984)

    Bidders shall provide as part of their bids submission: a list of 
Government contracts received during the last two years for identical or 
similar work to that being procured under this solicitation. For each 
contract, state the contract number, the Government agency placing the 
contract, the type of contract, and a brief description of the work.

                           (End of provision)

[49 FR 8867, Mar. 8, 1984, as amended at 50 FR 14360, Apr. 11, 1985]



Sec. 1552.214-71  Contract award--other factors--formal advertising.

    As prescribed in 1514.201-6(b), insert the following solicitation 
provision in invitations for bids (IFB) when it is appropriate to 
describe other factors that will be used in evaluating bids for award. 
This provision is used to describe the other factors mentioned in the 
solicitation provisions ``Contract Award--Formal Advertising'' (FAR 
52.214-10), and ``Contract Award--Construction'' (FAR 52.214-19). All 
other evaluation provisions in the IFB (e.g., evaluation of options) 
should be cross-referenced in this provision. The other factors set 
forth in the provision should represent a consolidated statement of the 
exact basis upon which bids will be evaluated for award.

      Contract Award--Other Factors--Formal Advertising (Apr 1984)

    The Government will award a contract resulting from this 
solicitation as stated in the ``Contract Award'' provision. The other 
factors that will be considered are:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

[[Page 75]]

                           (End of provision)



Sec. 1552.215-70  EPA Source selection and selection procedures--negotiated procurements. (Sep 1996)

    As prescribed in 1515.605, insert the following provision.

 EPA Source Selection and Selection Procedures--Negotiated Procurments 
                               (Sep 1996)

    (a) The Government will perform source selection in accordance with 
FAR Part 15 and the EPA Source Evaluation and Selection Procedures in 
EPAAR Part 1515 (48 CFR Part 1515). The significant features of this 
procedure are:
    (1) The Government will perform either cost analysis or price 
analysis of the offeror's cost/business proposal in accordance with FAR 
Parts 15 and 31, as appropriate. In addition, the Government will also 
evaluate proposals to determine contract cost or price realism.
    Cost or price realism relates to an offeror's demonstrating that the 
proposed cost or price provides an adequate reflection of the offeror's 
understanding of the requirements of this solicitation, i.e., that the 
cost or price is not unrealistically low or unreasonably high.
    (2) The Government will evaluate technical proposals as specified in 
1552.215-71, Evaluation Factors for Award.
    (b) In addition to evaluation of the previously discussed elements, 
the Government will consider in any award decision the responsibility 
factors set forth in FAR Part 9.

                           (End of Provision)

[61 FR 47067, Sept. 6, 1996]



Sec. 1552.215-71  Evaluation factors for award.

    As prescribed in 1515.605, insert one of the following provisions.

                 Evaluation Factors for Award (Sep 1996)

    (a) The Government will make award to the responsible offeror(s) 
whose offer conforms to the solicitation and is most advantageous to the 
Government, cost or price and other factors considered. For this 
solicitation, all evaluation factors other than cost or price when 
combined are significantly more important than cost or price.
    (b) Technical Evaluation Criteria:

_______________________________________________________________________

_______________________________________________________________________

                           (End of Provision)

                 Evaluation Factors for Award (Sep 1996)

                         Alternate I (Sep 1996)

    (a) The Government will make award to the responsible offeror(s) 
whose offer conforms to the solicitation and is most advantageous to the 
Government, cost or price, and other factors considered. For this 
solicitation, all evaluation factors other than cost or price when 
combined are significantly less important than cost or price.
    (b) Technical Evaluation Criteria:

_______________________________________________________________________

_______________________________________________________________________

                           (End of Provision)

 Evaluation Factors for Award--Proposal Meets the Minimum Needs of the 
             Government With the Lowest Evaluated Cost/Price

                         Alternate II (Sep 1996)

    (a) The Government will make award to the lowest-evaluated cost or 
price, technically acceptable, responsible offeror whose offer meets the 
minimum needs of the Government. In the event that there are two or more 
technically acceptable, equal price (cost) offers, the Government will 
consider other factors, as listed below in descending order of 
importance:

_______________________________________________________________________

_______________________________________________________________________
    (b) Technical Evaluation Criteria:

_______________________________________________________________________

_______________________________________________________________________

                           (End of Provision)

                 Evaluation Factors for Award (Sep 1996)

                         Alternate III (Sep 96)

    (a) The Government will make award to the responsible offeror(s) 
whose offer conforms to the solicitation and is most advantageous to the 
Government, cost or price, and other factors considered. For this 
solicitation, all evaluation factors other than cost or price when 
combined are approximately equal to cost or price.
    (b) Technical Evaluation Criteria:

_______________________________________________________________________

_______________________________________________________________________

                           (End of Provision)

[61 FR 47067, Sept. 6, 1996]

[[Page 76]]



Sec. 1552.215-73  Instructions for the preparation of technical and cost or pricing proposals.

    As prescribed in 1515.407(a), insert the following provision:

   Instructions for the Preparation of Technical and Cost or Pricing 
                          Proposals (Aug. 1993)

    (a) Technical proposal instructions.
    (1) Submit your technical proposal as a separate part of the total 
proposal package. Omit all cost or pricing details from the technical 
proposal. Include the following elements in your technical proposal (see 
also the Statement of Work and the Technical Evaluation Criteria):
    (i) Technical approach;
    (ii) Technical management;
    (iii) Key technical personnel;
    (iv) Assumptions, deviations, and exceptions (as necessary); and
    (v) Additional information.
    (2) Special technical proposal instructions.
_______________________________________________________________________
_______________________________________________________________________
    (b) Cost or pricing proposal instructions.
    Your cost or price proposal shall be specific, complete in every 
detail, and separate from your technical proposal. In addition to a hard 
copy of the information, to expedite review of your proposal, you are 
requested to submit a computer disk containing the financial data 
required under 1552.21573(b)(2) through (b)(9), if this information is 
available using a commercial spreadsheet program on a personal computer. 
Please indicate the software program used to create this information. 
Offerors should include the formulas and factors used in calculating the 
financial data on the disk as well as the basic financial information. 
Although submission of the computer disk will expedite review, failure 
to submit the disk will not affect consideration of your proposal.
    (1) General--Submit cost or pricing data on Standard Form 1411, 
Contract Pricing Proposal Cover Sheet, prepared in accordance with FAR 
15.804-6, FAR Table 15-3, and the following:
    (i) Clearly identify separate cost or pricing data associated with 
any:
    (A) Options to extend the term of the contract;
    (B) Options for the Government to order incremental quantities; and/
or
    (C) Major tasks, if required by the special instructions.

You may indicate the above cost or price detailed data in narrative form 
or on a spread sheet, provided that all cost or pricing data is 
adequately and clearly described. Place recap/summary information on the 
SF 1411.
    (ii) Clearly identify all costs and data in support of the proposed 
cost/price. Include the index required by FAR 15.804, Table 15-2 
Paragraph 4.
    (iii) Submit a current financial statement, including a balance 
sheet and a statement of profit and loss for the last completed fiscal 
year. Specify resources available to perform the contract without 
assistance from any outside source. If sufficient resources are not 
available, indicate in your proposal the amount required and the 
anticipated source (i.e., bank loans, letter or lines of credit, etc.).
    (iv) If other division, subsidiaries, a parent or affiliated 
companies will perform work or furnish materials under this proposed 
contract, please provide the name and location of such affiliate and 
your intercompany pricing policy. Separately identify costs and 
supporting data for each such entity proposed.
    (v) If the contract schedule includes a ``Fixed Rates for Services'' 
clause, please provide in your cost proposal a schedule duplicating the 
format in the clause and include your proposed fixed hourly rates per 
labor category for the base and any option contract periods.
    (vi) If the contract includes the clause at EPAAR 1552.232-73, 
``Payments--Fixed-Rate Services Contract,'' or the clause at FAR 52.232-
7, ``Payments Under Time and Materials and Labor-Hour Contracts,'' 
include in your cost proposal the estimated costs and burden rate you 
will apply to materials, other direct costs, or subcontracts. The 
Government will include these costs as part of its cost proposal 
evaluation.
    (vii) Whenever subcontractor effort is included in the proposed 
costs, the prime contractor shall include an additional supporting cost 
summary consolidating all costs (both contractor and subcontractor) by 
element for each contract period.
    (2) Direct Labor.
    (i) Attach support schedules for each proposed labor category, 
indicating both proposed hours and rates. Explain the basis of the 
proposed labor rates, including a complete justification for all 
judgmental factors used to develop weights applied to your company's 
category or individual rates that comprise the rates for labor 
categories specified in the solicitation. This explanation should 
describe how your technical approach coincides with the proposed costs.
    Describe for each labor category proposed your company's 
qualifications and experiences requirements. If individual rates are 
used, also provide the employee's name. If specific individuals are 
identified in the technical proposal, correlate these individuals with 
the labor categories specified in the solicitation.
    Provide a matrix summarizing the effort proposed, including the 
subcontracts, by professional and technical level specified in the 
solicitation.

[[Page 77]]

    (ii) Indicate whether current rates or escalated rates are used. If 
escalation is included, state the degree (percent) and methodology. The 
methodology shall include the effective date of the base rates and the 
policy on salary reviews (e.g. anniversary date of employee or salary 
reviews for all employees on a specific date).
    (iii) State whether any additional direct labor (new hires) will be 
required during the performance period of this acquisition. If so, state 
the number required.
    (iv) With respect to educational institutions, include the following 
information for those professional staff members whose salary is 
expected to be covered by a stipulated salary support agreement pursuant 
to OMB Circular A-21.
    (A) Individual's name;
    (B) Annual salary and the period for which the salary is applicable;
    (C) List of other research projects or proposals for which salary is 
allocated, and the proportionate time charged to each; and
    (D) Other duties, such as teaching assignments, adminstrative 
assignments, and other institutional activities. Show the proportionate 
time charged to each. (Show proportionate time charges as a percentage 
of 100% of time for the entire academic year, exclusive of vacation or 
sabbatical leave.)
    (3) Indirect costs (overhead, general, and administrative expenses). 
Unless your proposed indirect rate(s) have recently been accepted by a 
contracting agency of the Government, provide detailed supporting 
computations. These computations may include historical as well as 
budgeted data. Indicate whether your computations are based upon 
historical or projected data. If your rates have been recently approved, 
include a copy of the agreement. If the agreement does not cover the 
projected performance period of the proposed effort, provide the 
rationale and any estimated rate calculations for the proposed 
performance period.
    (4) Travel expense.
    (i) Attach a schedule illustrating how travel was computed. Include 
a breakdown indicating the number of trips, number of travellers, 
destination, purpose and cost.
    (ii) If the solicitation specifies the amount of travel costs, this 
amount is exclusive of any applicable indirect costs and fee.
    (5) Consultant service.
    Identify the contemplated consultants. State the amount of service 
estimated to be required and the consultant's quoted daily or hourly 
rate.
    (6) When the cost of a subcontract is substantial (25 percent of the 
estimated contract value or $10,000, whichever is less), include details 
of subcontract costs in the same format as the prime Contractor's costs. 
Include a cost or price analysis of the subcontract costs in accordance 
with FAR 15.806-1(a)(2).
    (7) Equipment (not including special equipment).
    (i) If direct charges for use of existing contractor equipment are 
proposed, provide a description of these items and details of the basis 
of such charges.
    (ii) If equipment purchases are proposed, provide a description of 
these items, details of the proposed costs (including at least three 
price quotes), and a justification as to why the Government should 
furnish the equipment or allow its purchase with contract funds.
    (iii) Identify Government-owned property in the possession of the 
offeror or proposed to be used in the performance of the contract, and 
the Government agency which has cognizance over the property.
    (8) Facilities and special equipment, including tooling.
    (i) If special purpose facilities or equipment is being proposed, 
provide a description of these items, details of the proposed costs 
including competitive prices, and justification as to why the Government 
should furnish the equipment or allow its purchase with contract funds.
    (ii) If fabrication by the prime Contractor is contemplated, include 
details of material, labor, and overhead.
    (9) Other Direct Costs.
    (i) Attach a schedule detailing how other direct costs were 
computed. Identify the major ODC items that under your accounting system 
would be a direct change on any resulting contract.
    (ii) If the solicitation specifies the amount of other direct costs, 
this amount is exclusive of any applicable indirect cost and fee.

                           (End of provision)

    Alternate I (AUG 1993). If this solicitation is for a cost-
reimbursable, level of effort type contract, add the following at the 
end of paragraph (b)(2)(i):
    All management and support (such as clerical, corporate and day-to-
day management) hours and costs proposed to be a direct charge, in 
accordance with your normal accounting treatment, are to be shown 
separately from that for the technical effort.
    Alternate II (AUG 1993). If the Government's requirement is a fully 
dedicated staff person for a twelve month period(s) for each specified 
position and performance is on a Government facility, add the following 
paragraph (b)(2)(v) to the basic provision:
    (v) The level of effort for each position is to be proposed in 
workyears. A workyear is considered to consist of 2080 hours inclusive 
of direct and indirect time (40 hours per week  x  52 weeks per year = 
2080 hours). Your proposal must identify proposed workyears and clearly 
identify how many hours in each workyear are direct (i.e. productive 
working hours) and how many are indirect (i.e. paid absences). If your 
company policy includes a

[[Page 78]]

different base work week, your total available hours would be different. 
For example, if your company's policy calls for a 37.5 hour work week, 
you would deduct your paid absences from 1950 hours (37.5 hr/wk  x  
52wks/yr = 1950 hrs). It should also clearly identify the paid absences 
as to how many hours are for holiday and how many hours are for vacation 
and sick leave.

    The amount of indirect time (paid absences) identified in your 
proposal must be consistent with company policy and must allow for the 
ten Federal Government holidays.
    Alternate III (AUG 1993). If the Government's requirement is a fully 
dedicated staff person for a twelve month period(s) for each specified 
position and performance is not on a Government facility, add the 
following paragraph (b)(2)(v) to the basic provision:
    (v) The level of effort for each position is to be proposed in 
workyears. A workyear is considered to consist of 2080 hours inclusive 
of direct and indirect time (40 hours per week  x  52 weeks per year 
=2080 hours). Your proposal must identify proposed workyears and clearly 
identify how many hours in each workyear are direct (i.e. productive 
working hours) and how many are indirect (i.e. paid absences). If your 
company policy includes a different base work week, your total available 
hours would be different. For example, if your company's policy calls 
for a 37.5 hour work week, you would deduct your paid absences from 1950 
hours (37.5 hr/wk  x  52 wks/yr = 1950 hrs).

[49 FR 8867, Mar. 8, 1984; 49 FR 24734, June 15, 1984, as amended at 58 
FR 45844, 45846, Aug. 31, 1993]



Sec. 1552.215-74  Cost proposal instructions.

    As prescribed in 1515.407(c), insert a provision substantially as 
follows in negotiated procurement solicitation documents when cost or 
pricing data is required in an offeror's proposal and it is necessary to 
obtain the detailed cost data specified in the provision. While designed 
to obtain cost data for procurements under the Comprehensive 
Environmental Response, Compensation and Liability Act (CERCLA) (``Super 
Fund'') program, the provision may be used in other negotiated 
solicitations.

                  Cost Proposal Instructions (Aug 1993)

    Offerors are instructed to prepare their cost proposals in 
sufficient detail to permit thorough and complete evaluation by the 
Government. Categories of labor to be employed, for example, and the 
associated number of estimated hours per category, shall be clearly 
identified. All items of equipment, together with estimated usage hours, 
shall be set forth. All material costs, travel and per diem costs, 
analysis costs, and transportation and disposal costs shall be 
identified as well. Where proposed rates are not based upon catalog or 
list prices, the basis for the proposed rates shall be identified. 
Equipment rates may be proposed on any basis (e.g., hourly, daily, 
weekly, monthly).
    The cost proposal shall be submitted on Standard Form 1411, Contract 
Pricing Proposal Cover Sheet, prepared in accordance with general 
instructions in FAR 15.804-6 and FAR Table 15-3. Summary data should be 
placed on SF 1411, and the following format should be followed in 
preparing the detailed cost proposal. All items which are subcontracted 
should be clearly identified and should include the name and address of 
the proposed subcontractor. Written quotations for all subcontracted 
services must accompany your cost proposal.
    (a) Direct Labor

----------------------------------------------------------------------------------------------------------------
           Labor categories                Estimated hours             Rate/hour                  Total         
----------------------------------------------------------------------------------------------------------------
(1) Technical Direct Labor                                                                                      
                                                                                                                
                                       .......................  $......................  $......                
                                       .......................  $......................  $......                
                                       .......................  $......................  $......                
Technical direct labor cost subtotal.  .......................  .......................  $......                
                                                                                                                
(2) Management Direct Labor                                                                                     
                                                                                                                
                                       .......................  $......................  $......                
                                       .......................  $......................  $......                
                                       .......................  $......................  $......                
Management direct labor cost subtotal  .......................  .......................  $......                
    Total direct labor cost subtotal.  .......................  .......................  $......                
----------------------------------------------------------------------------------------------------------------


    If it is your company's policy to charge project/program management 
labor as an indirect charge, state your policy in your proposal.
    (b) Equipment.

------------------------------------------------------------------------
                                         Estimated     Rate      Total  
            Item description               usage    (dollars)  (dollars)
------------------------------------------------------------------------
                                         .........  .........  .........
                                         .........  .........  .........
                                         .........  .........  .........
                                                              ----------
  Equipment cost subtotal..............  .........  .........  .........
------------------------------------------------------------------------

    (c) Travel and subsistence.
    (1) Travel.

------------------------------------------------------------------------
                                                     Cost per           
      Number of persons         From  To   Mileage     trip      Total  
                                                    (dollars)  (dollars)
------------------------------------------------------------------------
                               .....  ..  ........  .........  .........
                               .....  ..  ........  .........  .........
------------------------------------------------------------------------


[[Page 79]]

    (2) Subsistence.

------------------------------------------------------------------------
                                                     Rate per           
           Number of persons             Number of     day       Total  
                                            days    (dollars)  (dollars)
------------------------------------------------------------------------
                                         .........  .........  .........
                                         .........  .........  .........
                                                              ----------
  Travel and per diem subtotal.........  .........  .........  .........
------------------------------------------------------------------------

    (d) Materials and safety equipment.

------------------------------------------------------------------------
                                                       Unit             
            Item description             Estimated    price      Total  
                                          quantity  (dollars)  (dollars)
------------------------------------------------------------------------
                                         .........  .........  .........
                                         .........  .........  .........
                                         .........  .........  .........
                                                              ----------
  Material cost subtotal...............  .........  .........  .........
------------------------------------------------------------------------

    (e) Sampling and analytical services.

------------------------------------------------------------------------
                                                    Price per           
            Type of analysis             Number of   analysis    Total  
                                          analyses  (dollars)  (dollars)
------------------------------------------------------------------------
                                         .........  .........  .........
                                         .........  .........  .........
                                         .........  .........  .........
                                                              ----------
  Analytical cost subtotal.............  .........  .........  .........
------------------------------------------------------------------------

    (f) Transportation.

----------------------------------------------------------------------------------------------------------------
                                                                                               Dollar           
                                                                                                 per            
                                                                      Size  Number  Estimated   mile            
                          Type of material                             of     of    number of    or      Total  
                                                                      load   miles    loads    dollar  (dollars)
                                                                                                 per            
                                                                                                load            
----------------------------------------------------------------------------------------------------------------
                                                                     .....  ......  .........  ......  .........
                                                                     .....  ......  .........  ......  .........
                                                                                                      ----------
  Transporta- tion cost subtotal...................................  .....  ......  .........  ......  .........
----------------------------------------------------------------------------------------------------------------

    (g) Disposal.

----------------------------------------------------------------------------------------------------------------
                                                                                              Dollar            
                                                                                               per              
               Type of material                       Method of disposal         Estimated  gallon or    Total  
                                                                                  quantity    dollar   (dollars)
                                                                                             per ton            
----------------------------------------------------------------------------------------------------------------
                                               ................................  .........  .........  .........
                                               ................................  .........  .........  .........
                                                                                                      ----------
  Disposal cost subtotal.....................  ................................  .........  .........  .........
----------------------------------------------------------------------------------------------------------------

    (h) Other Miscellaneous Services or Charges.
    Include in this category any costs associated with mobilization and/
or demobilization, handling charges on materials or subcontracts, and 
any other estimated costs not included in the above categories.

        (Please Itemize and Provide Breakdowns Where Applicable)

_______________________________________________________________________
_______________________________________________________________________
Other Costs Subtotal      $_____________________________________________

                           (End of provision)

[49 FR 8867, Mar. 8, 1984, as amended at 58 FR 45846, Aug. 31, 1993]
1552.215-75  [Reserved]



Sec. 1552.215-76  General financial and organizational information.

    As prescribed in 1515.407(a)(3), insert the following provisions:

       General Financial and Organizational Information (Apr 1984)

    Offerors or quoters are requested to provide information regarding 
the following items in sufficient detail to allow a full and complete 
business evaluation. If the question indicated is not applicable or the 
answer is none, it should be annotated. If the offeror has previously 
submitted the information, it should certify the validity of that data 
currently on file at EPA or update all outdated information on file.
    (a) Contractor's Name: ________.
    (b) Address (If financial records are maintained at some other 
location, show the address of the place where the records are kept):
_______________________________________________________________________
    (c) Telephone Number: ________.
    (d) Individual(s) to contact re this proposal:
_______________________________________________________________________
    (e) Cognizant Government:
  Audit Agency:_________________________________________________________
  Address:______________________________________________________________
  Auditor:______________________________________________________________
    (f)(1) Work Distribution for the Last Completed Fiscal Accounting 
Period:

Sales:                                                                  
  Government cost-reimbursement type prime contracts and                
   subcontracts............................................    $........
  Government fixed-price prime contracts and subcontracts..    $........
  Commercial sales.........................................    $........
                                                                        
                                                            ------------
      Total sales..........................................    $........
                                                                        

    (2) Total sales for first and second fiscal years immediately 
preceding last completed fiscal year.

Total sales for first preceding fiscal year................    $........
Total sales for second preceding fiscal year...............    $........
                                                                        


[[Page 80]]

    (g) Is company a separate entity or division?
_______________________________________________________________________
    If a division or subsidiary corporation, name parent company:
_______________________________________________________________________
    (h) Date Company Organized: ________.
    (i) Manpower:
  Total Employer:_______________________________________________________
  Direct:_______________________________________________________________
  Indirect:_____________________________________________________________
  Standard Work Week (Hours):___________________________________________
    (j) Commercial Products: ________.
    (k) Attach a current organizational chart of the company.
    (l) Description of Contractor's system of estimating and 
accumulating costs under Government contracts. (Check appropriate 
blocks.)

------------------------------------------------------------------------
                                                 Estimated/     Standard
                                                actual cost       cost  
------------------------------------------------------------------------
Estimating System:                                                      
  Job Order.................................  ...............  .........
  Process...................................  ...............  .........
Accumulating System:                                                    
  Job Order.................................  ...............  .........
  Process...................................  ...............  .........
------------------------------------------------------------------------

    Has your cost estimating system been approved by any Government 
agency?

Yes ____  No ____
    If yes, give name and address of agency:
_______________________________________________________________________
    Has your cost accumulation system been approved by any Government 
agency?

Yes ____  No ____
    If yes, give name and address of agency:
_______________________________________________________________________
    (m) What is your fiscal year period? (Give month-to-month dates):
_______________________________________________________________________
What were the indirect cost rates for your last completed fiscal year?

------------------------------------------------------------------------
                                               Indirect cost   Basis of 
                 Fiscal year                       rate       allocation
------------------------------------------------------------------------
Fringe Benefits.............................  ..............  ..........
Overhead....................................  ..............  ..........
G&A Expense.................................  ..............  ..........
Other.......................................  ..............  ..........
------------------------------------------------------------------------

    (n) Have the proposed indirect cost rate(s) been evaluated and 
accepted by any Government agency?

Yes ____  No ____
    If yes, name and location of the Government agency:
_______________________________________________________________________
    Date of last preaward audit review by a Government agency: ______.
    (If the answer is no, data supporting the proposed rates must 
accompany the cost or price proposal. A breakdown of the items 
comprising overhead and G&A must be furnished.)
    (o) Cost estimating is performed by:
  Accounting Department_________________________________________________
  Contracting Department________________________________________________
  Other_________________________________________________________________

                                   (describe)

    (p) Has system of control of Government property been approved by a 
Government agency?

Yes ____  No ____
    If yes, name and location of the Government agency:
_______________________________________________________________________
    (q) Purchasing System: FAR 44.302 requires EPA, where it is the 
cognizant Government agency, to conduct a Contractor Purchasing System 
Review for each contractor whose sales to the Government, using other 
than sealed bid procedures, are expected to exceed $10 million (annual 
billings) during the next twelve months. The $10 million sales threshold 
is comprised of prime contracts, subcontracts under Government prime 
contracts, and modifications (except when the negotiated price is based 
on established catalog or market prices or is set by law or regulation). 
Has your purchasing system been approved by a Government agency?

Yes __________ No __________
If yes, name and location of the Government agency:
_______________________________________________________________________

Period of Approval:_____________________________________________________
If no, do you estimate that your negotiated sales to the Government 
during the next twelve months will meet the $10 million threshold?
Yes __________ No __________
If you respond yes to the $10 million threshold question, is EPA the 
cognizant agency for your organization based on the preponderance of 
Government contract dollars?
Yes __________ No __________
If EPA is not your cognizant Government agency, provide the name and 
location of the
cognizant agency________________________________________________________
_______________________________________________________________________
Are your purchasing policies and procedures written?
Yes __________ No __________
    (r) Does your firm have an established written incentive competition 
or bonus plan?

Yes ____  No ____

                           (End of provision)

(Approved by the Office of Management and Budget under control number 
2030-0006)

[49 FR 8867, Mar. 8, 1984, as amended at 54 FR 36980, Sept. 6, 1989; 55 
FR 13535, Apr. 11, 1990]



Sec. 1552.216-70  Award Fee.

    As prescribed in 1516.405(a), insert the following clause:

[[Page 81]]

                          Award Fee (Sept 1995)

    (a) The Government shall pay the contractor a base fee, if any, and 
such additional fee as may be earned, as provided in the award fee plan 
incorporated into the Schedule.
    (b) Award fee determinations made by the Government under this 
contract are unilaterally determined by the Fee Determination Official 
(FDO) and are not subject to appeal under the Disputes clause.
    (c) The Government may unilaterally change the award fee plan at any 
time, via contract modification, at least thirty (30) calendar days 
prior to the beginning of the applicable evaluation period. Changes 
issued in a unilateral modification are not subject to equitable 
adjustments, consideration, or any other renegotiation of the contract.

(End of Clause)


[60 FR 43404, Aug. 21, 1995]



Sec. 1552.216-71  Date of incurrence of cost.

    At prescribed in 1516.307, insert the following contract clause in 
cost-reimbursement contracts when an anticipatory cost letter has been 
issued on the project. The beginning dates and the not-to-exceed amount 
to be inserted in the clause should be those in the anticipatory cost 
letter.

                  Date of Incurrence of Cost (Apr 1984)

    The Contractor is entitled to reimbursement for allowable, allocable 
costs incurred during the period of ____________ to the award date of 
this contract in an amount not to exceed
$_______________________________________________________________________
All terms and conditions of this contract are in effect from
_______________________________________________________________________

                             (End of clause)



Sec. 1552.216-72  Ordering--by designated ordering officers.

    As prescribed in 1516.505(a), insert the following in indefinite 
delivery/indefinite quantity contracts.

          Ordering--By Designated Ordering Officers (Apr 1984)

    (a) The Government will order any supplies and services to be 
furnished under this contract by issuing delivery orders on Optional 
Form 347, or any agency prescribed form, from ______ through ______. In 
addition to the Contracting Officer, the following individuals are 
authorized ordering officers.
_______________________________________________________________________
_______________________________________________________________________
    (b) A Standard Form 30 will be the method of amending delivery 
orders.
    (c) The Contractor shall acknowledge receipt of each order and shall 
prepare and forward to the Ordering Officer within ten (10) calendar 
days the proposed staffing plan for accomplishing the assigned task 
within the period specified.
    (d) If the Contractor considers the estimated labor hours or 
specified work completion date to be unreasonable, he/she shall promptly 
notify the Ordering Officer and Contracting Officer in writing within 10 
calendar days, stating why the estimated labor hours or specified 
completion date is considered unreasonable.
    (e) Each delivery order will have a ceiling price, which the 
Contractor may not exceed. When the Contractor has reason to believe 
that the labor payment and support costs for the order, which will 
accrue in the next thirty (30) days, will bring total cost to over 85 
percent of the ceiling price specified in the order, the Contractor 
shall notify the Ordering Officer.
    (f) Paragraphs (c), (d), and (e) of this clause apply only when 
services are being ordered.

                             (End of clause)



Sec. 1552.216-73  Fixed rates for services--indefinite delivery/indefinite quantity contract.

    As prescribed in 1516.505(b), insert the following clause to specify 
fixed rates for services in indefinite delivery/indefinite quantity 
contracts. When the contract contains options, the clause should be 
modified to reflect the information and data for the base period and any 
option periods.

   Fixed Rates for Services--Indefinite Delivery/Indefinite Quantity 
                           Contract (Apr 1984)

    The following fixed rates shall apply for payment purposes for the 
duration of the contact.

------------------------------------------------------------------------
                                             Estimated                  
                                    Skill     direct     Fixed          
     Personnel classification       level      labor     hourly   Total 
                                               hours      rate          
------------------------------------------------------------------------
                                   .......  ..........  .......  .......
                                   .......  ..........  .......  .......
                                   .......  ..........  .......  .......
                                   .......  ..........  .......  .......
------------------------------------------------------------------------

    The rate, or rates, set forth above cover all expenses, including 
report preparation, salaries, overhead, general and administrative 
expenses, and profit.
    The Contractor shall voucher for only the time of the personnel 
whose services are applied directly to the work called for in individual 
Delivery Orders and accepted by the EPA Project Officer. The Government 
shall pay the Contractor for the life of a delivery order at rates in 
effect when the delivery

[[Page 82]]

order was issued, even if performance under the delivery order crosses 
into another period. The Contractor shall maintain time and labor 
distribution records for all employees who work under the contract. 
These records must document time worked and work performed by each 
individual on all Delivery Orders.

                             (End of clause)



Sec. 1552.216-74  Payment of fee.

    As prescribed in 1516.307(b), insert the following clause:

                        Payment of Fee (May 1991)

    (a) The term fee in this clause refers to either the fixed fee under 
a cost-plus-fixed-fee type contract, or the base fee under a cost-plus-
award-fee type contract.
    (b) The Government will make provisional fee payments on the basis 
of percentage of work completed. Percentage of work completed is the 
ratio of direct labor hours performed to the direct labor hours set 
forth in clause 1552.212-70, Level of Effort--Cost-Reimbursement Term 
Contract.

                             (End of clause)

[56 FR 43711, Sept. 4, 1991]



Sec. 1552.216-75  Base Fee and Award Fee Proposal.

    As prescribed in 1516.405(b), insert the following clause.

               Base Fee and Award Fee Proposal (Sept 1995)

    For the purpose of this solicitation, offerors shall propose a 
combination of base fee and award fee within the maximum fee limitation 
of ______% as stated in FAR 15.903(d). Base fee shall not exceed 3% of 
the estimated cost, excluding fee, and the award fee shall not be less 
than ______% of the total estimated cost, excluding fee. The combined 
percentage of base and award fee does not exceed ______% of the total 
estimated cost, excluding fee.

(End of Clause)

[60 FR 43404, Aug. 21, 1995]



Sec. 1552.216-76  Estimated Cost and Cost-Sharing.

    As prescribed in 1516.307(c), insert the following clause:

               Estimated Cost and Cost-Sharing (Apr 1996)

    (a) The total estimated cost of performing the work under this 
contract is $________. The Contractor's share of this cost shall not 
exceed $________. The Government's share of this cost shall not exceed 
$________.
    (b) For performance of the work under the contract, the Contractor 
shall be reimbursed for not more than ______ percent of the cost of 
performance determined to be allowable under the Allowable Cost and 
Payment clause. The remaining balance of allowable cost shall constitute 
the Contractor's share.
    (c) Fee shall not be paid to the prime contractor under this cost-
sharing contract.
    (d) The Contractor shall maintain records of all costs incurred and 
claimed for reimbursement as well as any other costs claimed as part of 
its cost share. Those records shall be subject to audit by the 
Government.
    (e) Costs contributed by the Contractor shall not be charged to the 
Government under any other contract, grant or agreement (including 
allocation to other contracts as part of an independent research and 
development program) nor be included as contributions under any other 
Federal contract.

                             (End of Clause)

[61 FR 14505, Apr. 2, 1996]



Sec. 1552.217-70  Evaluation of contract options.

    As prescribed in 1517.208(a), insert the following solicitation 
provision in Requests for Proposals when the solicitation contains 
options.

                Evaluation of Contract Options (Apr 1984)

    For award purposes, in addition to an offeror's response to the 
basic requirement, the Government will evaluate its response to all 
options, both technical and cost. Evaluation of options will not 
obligate the Government to exercise the options. For this solicitation 
the options are as specified in section H.

                           (End of provision)



Sec. 1552.217-71  Option to extend the term of the contract--cost-type contract.

    As prescribed in 1517.208(b), insert this contract clause in cost-
reimbursement type term form contracts when applicable. If only one 
option period is used, enter ``NA'' in the proper places of the clause. 
If more than two option periods apply, the clause may be modified 
accordingly.

Option to Extend the Term of the Contract--Cost-Type Contract (Apr 1984)

    The Government has the option to extend the term of this contract 
for ______ additional period(s). If more than 60 days remain in the 
contract period of performance, the

[[Page 83]]

Government, without prior written notification, may exercise this option 
by issuing a contract modification. To exercise this option within the 
last 60 days of the period of performance, the Government must provide 
to the Contractor written notification prior to that last 60-day period. 
This preliminary notification does not commit the Government to 
exercising the option. The Government's estimated level of effort is 
______ direct labor hours for the first option period and ______ for the 
second. Use of an option will result in the following contract 
modifications:
    (a) The ``Period of Performance'' clause will be amended to cover a 
base period from ____ to --____ and option periods from ____ to ____ and 
____ to ____.
    (b) Paragraph (a) of the ``Level of Effort'' clause will be amended 
to reflect a new and separate level of effort of ____ for the first 
option period and a new and separate level of effort of ____ for the 
second option period.
    (c) The ``Estimated Cost and Fixed Fee'' clause will be amended to 
reflect increased estimated costs and fixed fee for each option period 
as follows:

------------------------------------------------------------------------
                                                     Option 1   Option 2
------------------------------------------------------------------------
Estimated cost....................................  .........  .........
Fixed fee.........................................  .........  .........
                                                                        
                                                   ---------------------
    Total.........................................  .........  .........
------------------------------------------------------------------------

    (d) If the contract contains ``not to exceed amounts'' for elements 
of other direct costs (ODC), those amounts will be increased as follows:

------------------------------------------------------------------------
              Other direct cost item                 Option 1   Option 2
------------------------------------------------------------------------
                                                    .........  .........
                                                    .........  .........
                                                                        
                                                   ---------------------
                                                    .........  .........
------------------------------------------------------------------------

                             (End of clause)



Sec. 1552.217-72  Option to extend the term of the contract--cost-plus-award-fee contract.

    As prescribed in 1517.208(c), insert this contract clause in cost-
plus-award-fee term contracts when applicable. If only one option period 
is used, enter ``NA'' in the proper places of the clause. If more than 
two option periods apply, modify the clause accordingly.

Option To Extend the Term of the Contract--Cost-Plus-Award-Fee Contract 
                               (Apr 1984)

    (a) The Government has the option to extend the term of this 
contract for ______ additional periods. If more than 60 days remain in 
the contract period of performance, the Government, without prior 
written notification, may exercise this option by issuing a contract 
modification. To exercise this option within the last 60 days of the 
period of performance, the Government must provide to the Contractor 
written notification prior to that last 60-day period. This preliminary 
notification does not commit the Government to exercising the option. 
The Government's estimated level of effort is ______ direct labor hours 
for the first option period and ______ for the second. Use of an option 
will result in the following contract modifications:
    (b) The ``Period of Performance'' clause will be amended to cover a 
base period from ____ to ____ and option periods from ____ to ____ and 
____ to ____.
    (c) Paragraph (a) of the ``Level of Effort'' clause will be amended 
to reflect a new and separate level of effort of ____ for the first 
option period and a new and separate level of effort of ____ for the 
second option period.
    (d) The ``Estimated Cost Base Fee and Award Fee'' clause will be 
amended to reflect increased estimated costs and base fee and award fee 
pool for each option period as follows:

------------------------------------------------------------------------
                                                     Option 1   Option 2
------------------------------------------------------------------------
Estimated cost....................................  .........  .........
Base fee..........................................  .........  .........
Award fee pool....................................  .........  .........
                                                                        
                                                   ---------------------
    Total.........................................  .........  .........
------------------------------------------------------------------------

    (e) If this contract contains ``not to exceed amounts'' for elements 
of other direct costs (ODC), those amounts will be increased as follows:

------------------------------------------------------------------------
              Other direct cost item                 Option 1   Option 2
------------------------------------------------------------------------
                                                    .........  .........
                                                    .........  .........
                                                    .........  .........
                                                                        
                                                   ---------------------
                                                    .........  .........
------------------------------------------------------------------------

                             (End of clause)

[49 FR 8867, Mar. 8, 1984; 49 FR 24734, June 15, 1984]



Sec. 1552.217-73  Option for increased quantity--cost-type contract.

    As prescribed in 1517.208(d), insert this contract clause in cost-
reimbursement type term form contracts when applicable. If only one 
option period is used, enter ``NA'' in the proper places of the clause. 
If more than two option periods apply, modify the clause accordingly.

[[Page 84]]

      Option for Increased Quantity--Cost-Type Contract (Apr 1984)

    By issuing a contract modification, the Government may increase the 
estimated level of effort by ______ direct labor hours during the base 
period, ______ during the first option period, and ______ during the 
second option period. The Government may issue a maximum of ______ 
orders to increase the level of effort in blocks of ______ hours during 
any given period. The estimated cost and fixed fee of each block of 
hours is as follows:

------------------------------------------------------------------------
                                                 Base    Option   Option
                                                period     1        2   
------------------------------------------------------------------------
Estimated cost...............................  .......  .......  .......
Fixed fee....................................  .......  .......  .......
                                                                        
                                              --------------------------
    Total....................................  .......  .......  .......
------------------------------------------------------------------------

    When these options are exercised, paragraph (a) of the ``Level of 
Effort'' clause and the ``Estimated Cost and Fixed Fee'' clause will be 
modified accordingly.

                             (End of clause)



Sec. 1552.217-74  Option for increased quantity--cost-plus-award-fee contract.

    As prescribed in 1517.208(e), insert this contract clause in cost-
plus-award-fee term contracts when applicable. If only one option period 
is used, enter ``NA'' in the proper places of the clause. If more than 
two option periods apply, the clause may be modified accordingly.

 Option for Increased Quantity--Cost-Plus-Award-Fee Contract (Apr 1984)

    By issuing a contract modification, the Government may increase the 
estimated level of effort by ______ direct labor hours during the base 
period, ______ during the first option period, and ______ during the 
second option period. The Government may issue a maximum of ______ 
orders to increase the level of effort in blocks of ______ hours during 
any given period. The estimated cost, base fee, and award fee pool of 
each block of hours is as follows:

------------------------------------------------------------------------
                                                 Base    Option   Option
                                                period     1        2   
------------------------------------------------------------------------
Estimated cost...............................  .......  .......  .......
Base fee.....................................  .......  .......  .......
Award fee pool...............................  .......  .......  .......
                                              ----------                
    Total....................................  .......  .......  .......
------------------------------------------------------------------------

    When these options are exercised, paragraph (a) of the ``Level of 
Effort'' clause and the ``Estimated Cost, Base Fee, and Award Fee'' 
clause will be modified accordingly.

                             (End of clause)



Sec. 1552.217-75  Option to extend the effective period of the contract--time and materials or labor hour contract.

    As prescribed in 1517.208(f), insert this clause in time and 
materials or labor hour type contracts when applicable. This clause will 
be modified to reflect the actual number of option periods for the 
acquisition. If only one option period is used, modify (c) accordingly.

    Option to Extend the Effective Period of the Contract--Time and 
               Materials or Labor Hour Contract (Apr 1984)

    (a) The Government has the option to extend the effective period of 
this contract for ______ additional period(s). If more than sixty (60) 
days remain in the contract effective period, the Government, without 
prior written notification, may exercise this option by issuing a 
contract modification. To unilaterally exercise this option within the 
last 60 days of the effective period, the Government must issue written 
notification of its intent to exercise the option prior to that last 60-
day period. This preliminary notification does not commit the Government 
to exercising the option.
    (b) If the option(s) are exercised, the ``Ceiling Price'' clause 
will be modified to reflect a new and separate ceiling price of $____ 
for the first option period and a new and seperate ceiling price of 
$____ for the second option period.
    (c) The ``Effective Period of the Contract'' clause will be modified 
to cover a base period from ______ to ______ and option periods from 
______ to ______ and ______ to ______.

                             (End of clause)

[49 FR 8867, Mar. 8, 1984; 49 FR 24734, June 15, 1984]



Sec. 1552.217-76  Option to extend the effective period of the contract--indefinite delivery/indefinite quantity contract.

    As prescribed in 1517.208(g), the following is used in indefinite 
delivery/indefinite quantity type contracts with options to extend the 
effective period of the contract. The clause may be adjusted depending 
upon the number of options. If only one option period is used, modify 
(b) and (c) accordingly.

[[Page 85]]

   Option to Extend the Effective Period of the Contract--Indefinite 
                  Delivery/Indefinite Quantity Contract

    (a) The Government has the option to extend the effective period of 
this contract for ______ additional period(s). If more than sixty (60) 
days remain in the contract effective period, the Government, without 
prior written notification, may exercise this option by issuing a 
contract modification. To unilaterally exercise this option within the 
last 60 days of the effective period, the Government must issue written 
notification of its intent to exercise the option prior to that last 60-
day period. This preliminary notification does not commit the Government 
to exercising the option.
    (b) If the options are exercised, the ``Minimum and Maximum Contract 
Amount'' clause will be modified to reflect new and separate minimums of 
______ for the first option period and ______ for the second option 
period, and new and separate maximums of ______ for the first option 
period and ______ for the second option period.
    (c) The ``Effective Period of the Contract'' clause will be modified 
to cover a base period from ______ to ______ and option periods from 
______ to ______ and ______ to ______.

                             (End of clause)



Sec. 1552.223-70  Protection of human subjects.

    As prescribed in 1523.303-70, insert the following contract clause 
when the contract involves human test subjects.

                 Protection of Human Subjects (Apr 1984)

    (a) The Contractor shall protect the rights and welfare of human 
subjects in accordance with the procedures specified in its current 
Institutional Assurance on file with the Agency. The Contractor shall 
certify at least annually that an appropriate institutional committee 
has reviewed and approved the procedures which involve human subjects in 
accordance with the appliable Institutional Assurance accepted by the 
Agency.
    (b) The Contractor shall bear full responsibility for the proper and 
safe performance of all work and services involving the use of human 
subjects under this contract.

                             (End of clause)



Sec. 1552.224-70  Social security numbers of consultants and certain sole proprietors and Privacy Act statement.

    As prescribed in 1524.104, insert the following provision in all 
solicitations.

Social Security Numbers of Consultants and Certain Sole Proprietors and 
                    Privacy Act Statement (Apr 1984)

    (a) Section 6041 of title 26 of the U.S. Code requires EPA to file 
Internal Revenue Service (IRS) Form 1099 with respect to individuals who 
receive payments from EPA under purchase orders or contracts. Section 
6109 of title 26 of the U.S. Code authorizes collection by EPA of the 
social security numbers of such individuals for the purpose of filing 
IRS Form 1099. Social security numbers obtained for this purpose will be 
used by EPA for the sole purpose of filing IRS Form 1099 in compliance 
with section 6041 of title 26 of the U.S. Code.
    (b) If the offeror or quoter is an individual, consultant, or sole 
proprietor and has no Employer Identification Number, insert the 
offeror's or quoter's social security number on the following line.

                           (End of provision)



Sec. 1552.227-76  Project employee confidentiality agreement.

    As prescribed in 1527.409, insert the following clause:

          Project Employee Confidentiality Agreement (May 1994)

    (a) The Contractor recognizes that Contractor employees in 
performing this contract may have access to data, either provided by the 
Government or first generated during contract performance, of a 
sensitive nature which should not be released to the public without 
Environmental Protection Agency (EPA) approval. Therefore, the 
Contractor agrees to obtain confidentiality agreements from all of its 
employees working on requirements under this contract.
    (b) Such agreements shall contain provisions which stipulate that 
each employee agrees that the employee will not disclose, either in 
whole or in part, to any entity external to EPA, the Department of 
Justice, or the Contractor, any information or data (as defined in FAR 
Section 27.401) provided by the Government or first generated by the 
Contractor under this contract, any site-specific cost information, or 
any enforcement strategy without first obtaining the written permission 
of the EPA Contracting Officer. If a contractor, through an employee or 
otherwise, is subpoenaed to testify or produce documents, which could 
result in such disclosure, the Contractor must provide immediate advance 
notification to the EPA so that the EPA can authorize such disclosure or 
have the opportunity to take action to prevent such disclosure. Such 
agreements shall be effective for the life of the contract and for a 
period of five (5) years after completion of the contract.

[[Page 86]]

    (c) The EPA may terminate this contract for convenience, in whole or 
in part, if it deems such termination necessary to prevent the 
unauthorized disclosure of information to outside entities. If such a 
disclosure occurs without the written permission of the EPA Contracting 
Officer, the Government may terminate the contract, for default or 
convenience, or pursue other remedies as may be permitted by law or this 
contract.
    (d) The Contractor further agrees to insert in any subcontract or 
consultant agreement placed hereunder, except for subcontracts or 
consultant agreements for well drilling, fence erecting, plumbing, 
utility hookups, security guard services, or electrical services, 
provisions which shall conform substantially to the language of this 
clause, including this paragraph, unless otherwise authorized by the 
Contracting Officer.

(End of clause)

[59 FR 18624, Apr. 19, 1994]



Sec. 1552.229-70  State and local taxes.

    As prescribed in 1529.401-70, insert the following clause:

                    State and Local Taxes (Nov 1989)

    In accordance with FAR 29.303 and FAR 31.205-41, the Contractor or 
any subcontractor under this contract shall not be reimbursed for 
payment of any State and local taxes for which an exemption is 
available. The Contractor is responsible for determining the 
availability of State and local tax exemptions and obtaining such 
exemptions, if available. The Contractor shall include this clause, 
suitably modified to identify the parties, in all subcontracts at any 
tier. The Contractor shall notify the Contracting Officer if problems 
arise in obtaining a State and local tax exemption. The contractor may 
seek a waiver by the Contracting Officer from this requirement if the 
administrative burden of seeking an exemption appears to outweigh the 
potential savings to the Government.

                             (End of clause)

[54 FR 49998, Dec. 4, 1989]



Sec. 1552.232-70  Submission of invoices.

    As prescribed in 1532.908, insert the following clause:

                    Submission of Invoices (Jun 1996)

    In order to be considered properly submitted, an invoice or request 
for contract financing payment must meet the following contract 
requirements in addition to the requirements of FAR 32.905:
    (a) Unless otherwise specified in the contract, an invoice or 
request for contract financing payment shall be submitted as an original 
and five copies. The Contractor shall submit the invoice or request for 
contract financing payment to the following offices/individuals 
designated in the contract: the original and two copies to the 
Accounting Operations Office shown in Block ______ on the cover of the 
contract; two copies to the Project Officer (the Project Officer may 
direct one of these copies to a separate address); and one copy to the 
Contracting Officer.
    (b) The Contractor shall prepare its invoice or request for contract 
financing payment on the prescribed Government forms. Standard Forms 
Number 1034, Public Voucher for Purchases and Services other than 
Personal, shall be used by contractors to show the amount claimed for 
reimbursement. Standard Form 1035, Public Voucher for Purchases and 
Services other than Personal--Continuation Sheet, shall be used to 
furnish the necessary supporting detail or additional information 
required by the Contracting Officer. The Contractor may submit self-
designed forms which contain the required information.
    (c)(1) The Contractor shall prepare a contract level invoice or 
request for contract financing payment in accordance with the invoice 
preparation instructions identified as a separate attachment in Section 
J of the contract. If contract work is authorized by individual work 
assignments, the invoice or request for contract financing payment shall 
also include a summary of the current and cumulative amounts claimed by 
cost element for each work assignment and for the contract total, as 
well as any supporting data for each work assignment as identified in 
the instructions.
    (2) The invoice or request for contract financing payment shall 
include current and cumulative charges by major cost element such as 
direct labor, overhead, travel, equipment, and other direct costs. For 
current costs, each major cost element shall include the appropriate 
supporting schedule identified in the invoice preparation instructions. 
Cumulative charges represent the net sum of current charges by cost 
element for the contract period.
    (3) The charges for subcontracts shall be further detailed in a 
supporting schedule showing the major cost elements for each 
subcontract. The degree of detail for any subcontract exceeding $5,000 
is to be the same as that set forth under (c)(2).
    (4) The charges for consultants shall be further detailed in the 
supporting schedule showing the major cost elements of each consultant. 
For current costs, each major cost element of the consulting agreement 
shall also include the supporting schedule identified in the invoice 
preparation instructions.

[[Page 87]]

    (d) Invoices or requests for contract financing payment must clearly 
indicate the period of performance for which payment is requested. 
Separate invoices or requests for contract financing payment are 
required for charges applicable to the basic contract and each option 
period.
    (e)(1) Notwithstanding the provisions of the clause of this contract 
at FAR 52.216-7, Allowable Cost and Payment, invoices or requests for 
contract financing payment shall be submitted once per month unless 
there has been a demonstrated need and Contracting Officer approval for 
more frequent billings. When submitted on a monthly basis, the period 
covered by invoices or requests for contractor financing payments shall 
be the same as the period for monthly progress reports required under 
this contract.
    (2) If the Contracting Officer allows submissions more frequently 
than monthly, one submittal each month shall have the same ending period 
of performance as the monthly progress report.
    (3) Where cumulative amounts on the monthly progress report differ 
from the aggregate amounts claimed in the invoice(s) or request(s) for 
contract financing payments covering the same period, the contractor 
shall provide a reconciliation of the difference as part of the payment 
request. Alternate I (JUN 1996). If used in a fixed-rate type contract, 
substitute the following paragraphs (c)(1) and (2) for paragraphs (c)(1) 
and (2) of the basic clause:
    (c)(1) The Contractor shall prepare a contract level invoice or 
request for contract financing payment in accordance with the invoice 
preparation instructions identified as a separate attachment in Section 
J of the contract. If contract work is authorized by individual delivery 
orders, the invoice or request for contract financing payment shall also 
include a summary of the current and cumulative amounts claimed by cost 
element for each delivery order and for the contract total, as well as 
any supporting data for each delivery order as identified in the 
instructions.
    (2) The invoice or request for contract financing payment that 
employs a fixed rate feature shall include current and cumulative 
charges by contract labor category and by other major cost elements such 
as travel, equipment, and other direct costs. For current costs, each 
cost element shall include the appropriate supporting schedules 
identified in the invoice preparation instructions.

[61 FR 29317, June 10, 1996]
1552.232-71--1552.232-72  [Reserved]



Sec. 1552.232-73  Payments--fixed-rate services contract.

    As prescribed in 1532.111, insert the following in indefinite 
delivery/indefinite quantity contracts with fixed services rates.

            Payments--Fixed-Rate Services Contract (Apr 1984)

    The Government shall pay the Contractor as follows upon the 
submission of invoices or vouchers approved by the Contracting Officer:
    (a) Hourly rate. (1) The amounts shall be computed by multiplying 
the appropriate hourly rates prescribed in the Schedule by the number of 
direct labor hours performed. The rates shall include wages, indirect 
costs, general and administrative expenses, and profit. Fractional parts 
of an hour shall be payable on a prorated basis. Vouchers may be 
submitted once each month (or at more frequent intervals, if approved by 
the Contracting Officer) to the paying office. The Contractor shall 
substantiate vouchers by evidence of actual payment and by individual 
daily job, timecards, or other substantiation approved by the 
Contracting Officer. Promptly after receipt of each substantiated 
voucher, the Government shall, except as otherwise provided in this 
contract and subject to the terms of paragraph (e) of this contract, pay 
the voucher as approved by the Contracting Officer.
    (2) Unless otherwise prescribed in the Schedule, the Contracting 
Officer shall withhold 5 percent of the amounts due under this paragraph 
(a), but the total amount withheld shall not exceed $50,000. The amounts 
withheld shall be retained until the execution and delivery of a release 
by the Contractor as provided in paragraph (f) of this contract.
    (3) Unless the Schedule prescribes otherwise, the hourly rates in 
the Schedule shall not be varied by virtue of the Contractor having 
performed work on an overtime basis. If no overtime rates are provided 
in the Schedule and overtime work is approved in advance by the 
Contracting Officer, overtime rates shall be negotiated. Failure to 
agree upon these overtime rates shall be treated as a dispute under the 
``Disputes'' clause of this contract. If the Schedule provides rates for 
overtime the premium portion of those rates will be reimbursable only to 
the extent the overtime is approved by the Contracting Officer.
    (b) Materials, other direct costs, and subcontracts. (1) The 
allowability of direct materials and other direct costs shall be 
determined by the Contracting Officer in accordance with subpart 31.2 of 
the Federal Acquisition Regulation (FAR) in effect on the date of this 
contract. Reasonable and allocable material handling costs or indirect 
costs may be included in the charge for material or other direct costs 
to the extent they are clearly excluded from the hourly rate. Material 
handling and/or indirect cost rates are

[[Page 88]]

specified in the ``Indirect Costs'' clause. Material handling costs are 
comprised of indirect costs, including, when appropriate, general and 
administrative expense allocated to direct materials in accordance with 
the Contractor's usual accounting practices consistent with subpart 31.2 
of the FAR. The Contractor shall be reimbursed for items and services 
purchased directly for the contract only when cash, checks, or other 
forms of actual payment have been made for such purchased items or 
services. Direct materials or other direct costs, as used in this 
clause, are those items which enter directly into the end product, or 
which are used or consumed directly in connection with the furnishing of 
the end product.
    (2) Subcontracted effort may be included in the fixed hourly rates 
discussed in paragraph (a)(1) of this clause and will be reimbursed as 
discussed in that paragraph. Otherwise, the cost of subcontracts that 
are authorized under the subcontracts clause of this contract shall be 
reimbursable costs under this clause provided that the costs are 
consistent with paragraph (3) of this clause. Reimbursable costs in 
connection with subcontracts shall be limited to the amounts paid to the 
subcontractor in the same manner as for items and services purchased 
directly for the contract under paragraph (1) of this clause; however, 
this requirement shall not apply to a Contractor that is a small 
business concern. Reimbursable costs shall not include any costs arising 
from the letting, administration, or supervision of performance of the 
subcontract, if the costs are included in the hourly rates payable under 
paragraph (a)(1) of this clause.
    (3) To the extent able, the Contractor shall (i) obtain materials at 
the most advantageous prices available with due regard to securing 
prompt delivery of satisfactory materials; and (ii) take all cash and 
trade discounts, rebates, allowances, credits, salvage, commissions, and 
other benefits. When unable to take advantage of the benefits, the 
Contractor shall promptly notify the Contracting Officer and give the 
reasons. Credit shall be given to the Government for cash and trade 
discounts, rebates, allowances, credits, salvage, the value of any 
appreciable scrap, commissions, and other amounts that have accrued to 
the benefit of the Contractor, or would have accrued except for the 
fault or neglect of the Contractor. The benefits lost without fault or 
neglect on the part of the Contractor, or lost through fault of the 
Government, shall not be deducted from gross costs.
    (4) If the nature of the work to be performed requires the 
Contractor to furnish material which is regularly sold to the general 
public in the normal course of business by the Contractor, the price to 
be paid for such material, notwithstanding paragraph (b)(1) of this 
contract, shall be on the basis of an established catalog or list price, 
in effect when the material is furnished, less all applicable discounts 
to the Government; provided, that in no event shall such price be in 
excess of the Contractor's sales price to its most favored customer for 
the same item in like quantity, or the current market price, whichever 
is lower.
    (c) Contracting Officer notification. For contract administration 
purposes, the Contractor shall notify the Contracting Officer in writing 
when the total value of all delivery orders issued exceeds 85 percent of 
the maximum price specified in the schedule.
    (d) Maximum amount. The Government shall not be obligated to pay the 
Contractor any amount in excess of the maximum amount in the Schedule, 
and the Contractor shall not be obligated to continue performance if to 
do so would exceed the maximum amount set forth in the Schedule, unless 
or until the Contracting Officer shall have notified the Contractor in 
writing that the maximum amount has been increased and shall have 
specified in the notice a revised maximum that shall constitute the 
maximum amount for performance under this contract. When and to the 
extent that the maximum amount set forth in the Schedule has been 
increased, any hours expended, and material or other direct costs 
incurred by the Contractor in excess of the maximum amount before the 
increase, shall be allowable to the same extent as if the hours expended 
and material costs had been incurred after the increase in the maximum 
amount.
    (e) Audit. At any time before final payment under this contract, the 
Contracting Officer may request audit of the invoices or vouchers and 
substantiating material. Each payment previously made shall be subject 
to reduction to the extent of amounts, on preceding invoices or 
vouchers, that are found by the Contracting Officer not to have been 
properly payable and shall also be subject to reduction for overpayments 
or to increase for underpayments. Upon receipt and approval of the 
voucher or invoice designated by the Contractor as the ``completion 
voucher'' or ``completion invoice'' and substantiating material, and 
upon compliance by the Contractor with all terms of this contract 
(including, without limitation, terms relating to patents and the terms 
of paragraphs (f) and (g) of this clause), the Government shall promptly 
pay any balance due the Contractor. The completion invoice or voucher, 
and substantiating material, shall be submitted by the Contractor as 
promptly as practicable following completion of the work under this 
contract, but in no event, later than one year (or such longer period as 
the Contracting Officer may approve in writing) from the date of 
completion.
    (f) Assignment. The Contractor, and each assignee under an 
assignment entered into under this contract and in effect at the time

[[Page 89]]

of final payment under this contract, shall execute and deliver, at the 
time of and as a condition precedent to final payment under this 
contract, a release discharging the Government, its officers, agents, 
and employees of and from all liabilities, obligations, and claims 
arising out of or under this contract, subject only to the following 
exceptions:
    (1) Specified claims in stated amounts, or in estimated amounts if 
the amounts are not susceptible of exact statement by the Contractor.
    (2) Claims, together with reasonable incidental expenses, based upon 
the liabilities of the Contractor to third parties arising out of 
performing this contract, that are not known to the Contractor on the 
date of the execution of the release, and of which the Contractor gives 
notice in writing to the Contracting Officer not more than 6 years after 
the date of the release or the date of any notice to the Contractor that 
the Government is prepared to make final payment, whichever is earlier.
    (3) Claims for reimbursement of costs (other than expenses of the 
Contractor by reason of its indemnification of the Government against 
patent liability), including reasonable incidental expenses, incurred by 
the Contractor under the terms of this contract relating to patents.
    (g) Refunds. The Contractor agrees that any refunds, rebates, or 
credits (including any related interest) accruing to or received by the 
Contractor or any assignee, that arise under the materials portion of 
this contract and for which the Contractor has received reimbursement, 
shall be paid by the Contractor to the Government. The Contractor and 
each assignee, under an assignment entered into under this contract and 
in effect at the time of final payment under this contract, shall 
execute and deliver, at the time of and as a condition precedent to 
final payment under this contract, an assignment to the Government of 
such refunds, rebates, or credits (including any interest) in form and 
substance satisfactory to the Contracting Officer.

                             (End of clause)



Sec. 1552.235-70  Screening business information for claims of confidentiality.

    As prescribed in 1535.007-70(a), insert the following contract 
clause in all types of contracts when the Contracting Officer has 
determined that during performance of this contract, the Contractor may 
be required to collect information to perform the work required under 
this contract. Some of the information may consist of trade secrets or 
commercial or financial information that would be considered as 
proprietary or confidential by the business that has the right to the 
information. The following clause enables EPA to resolve any claims of 
confidentiality concerning the information that the Contractor will 
furnish under a contract. The clause entitled ``Treatment of 
Confidential Business Information'' shall also be included in the 
contract:

 Screening Business Information for Claims of Confidentiality (Apr 1984)

    (a) Whenever collecting information under this contract, the 
Contractor agrees to comply with the following requirements:
    (1) If the Contractor collects information from public sources, such 
as books, reports, journals, periodicals, public records, or other 
sources that are available to the public without restriction, the 
Contractor shall submit a list of these sources to the appropriate 
program office at the time the information is initially submitted to 
EPA. The Contractor shall identify the information according to source.
    (2) If the Contractor collects information from a State or local 
Government or from a Federal agency, the Contractor shall submit a list 
of these sources to the appropriate program office at the time the 
information is initially submitted to EPA. The Contractor shall identify 
the information according to source.
    (3) If the Contractor collects information directly from a business 
or from a source that represents a business or businesses, such as a 
trade association:
    (i) Before asking for the information, the Contractor shall identify 
itself, explain that it is performing contractual work for the U.S. 
Environmental Protection Agency, identify the information that it is 
seeking to collect, explain what will be done with the information, and 
give the following notice:
    (A) You may, if you desire, assert a business confidentiality claim 
covering part or all of the information. If you do assert a claim, the 
information will be disclosed by EPA only to the extent, and by means of 
the procedures, set forth in 40 CFR part 2, subpart B.
    (B) If no such claim is made at the time this information is 
received by the Contractor, it may be made available to the public by 
the Environmental Protection Agency without further notice to you.
    (C) The contractor shall, in accordance with FAR part 9, execute a 
written agreement regarding the limitations of the use of this 
information and forward a copy of the agreement to the Contracting 
Officer.
    (ii) Upon receiving the information, the Contractor shall make a 
written notation that the notice set out above was given to

[[Page 90]]

the source, by whom, in what form, and on what date.
    (iii) At the time the Contractor initially submits the information 
to the appropriate program office, the Contractor shall submit a list of 
these sources, identify the information according to source, and 
indicate whether the source made any confidentiality claim and the 
nature and extent of the claim.
    (b) The Contractor shall keep all information collected from 
nonpublic sources confidential in accordance with the clause in this 
contract entitled ``Treatment of Confidential Business Information'' as 
if it had been furnished to the Contractor by EPA.
    (c) The Contractor agrees to obtain the written consent of the 
Contracting Officer, after a written determination by the appropriate 
program office, prior to entering into any subcontract that will require 
the subcontractor to collect information. The Contractor agrees to 
include this clause, including this paragraph (c), and the clause 
entitled ``Treatment of Confidential Business Information'' in all 
subcontracts awarded pursuant to this contract that require the 
subcontractor collect information.

                             (End of clause)



Sec. 1552.235-71  Treatment of confidential business information.

    As prescribed in 1535.007-70(b), insert the following contract 
clause in all types of contracts when the Contracting Officer has 
determined that in the performance of a contract, EPA may furnish 
confidential business information to the Contractor that EPA obtained 
under the Clean Air Act (42 U.S.C. 7401 et seq.), the Federal Water 
Pollution Control Act (33 U.S.C. 1251, et seq.), the Safe Drinking Water 
Act (42 U.S.C. 300f et seq.), the Federal Insecticide, Fungicide, and 
Rodenticide Act (7 U.S.C. 136 et seq.), the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 301 et seq.), the Resource Conservation and 
Recovery Act (42 U.S.C. 6901 et seq.), or the Toxic Substances Control 
Act (15 U.S.C. 2601 et seq.). EPA regulations on confidentiality of 
business information in 40 CFR part 2 subpart B require that the 
Contractor agree to the clause entitled ``Treatment of Confidential 
Business Information'' before any confidential business information may 
be furnished to the Contractor:

        Treatment of Confidential Business Information (Apr 1984)

    (a) The Contracting Officer, after a written determination by the 
appropriate program office, may disclose confidential business 
information to the Contractor necessary to carry out the work required 
under this contract. The Contractor agrees to use the confidential 
information only under the following conditions:
    (1) The Contractor and Contractor's Employees shall: (i) use the 
confidential information only for the purposes of carrying out the work 
required by the contract; (ii) not disclose the information to anyone 
other than EPA employees without the prior written approval of the 
Assistant General Counsel for Contracts and Information Law; and (iii) 
return to the Contracting Officer all copies of the information, and any 
abstracts or excerpts therefrom, upon request by the Contracting 
Officer, whenever the information is no longer required by the 
Contractor for the performance of the work required by the contract, or 
upon completion of the contract.
    (2) The Contractor shall obtain a written agreement to honor the 
above limitations from each of the Contractor's employees who will have 
access to the information before the employee is allowed access.
    (3) The Contractor agrees that these contract conditions concerning 
the use and disclosure of confidential information are included for the 
benefit of, and shall be enforceable by, both EPA and any affected 
business having a proprietary interest in the information.
    (4) The Contractor shall not use any confidential information 
supplied by EPA or obtained during performance hereunder to compete with 
any business to which the confidential information relates.
    (b) The Contractor agrees to obtain the written consent of the 
Contracting Officer, after a written determination by the appropriate 
program office, prior to entering into any subcontract that will involve 
the disclosure of confidential business information by the Contractor to 
the subcontractor. The Contractor agrees to include this clause, 
including this paragraph (b), in all subcontracts awarded, pursuant to 
this contract, that require the furnishing of confidential business 
information to the subcontractor.

                             (End of clause)



Sec. 1552.235-72  Control and Security of Federal Insecticide, Fungicide, and Rodenticide Act Confidential Business Information (Apr 1996).

    As prescribed in 1535.007(a), insert the following provision:

[[Page 91]]

Control And Security of Federal Insecticide, Fungicide, And Rodenticide 
            Act Confidential Business Information (Apr 1996)

    The offeror certifies that--
    --the Contractor and its employees have read and are familiar with 
the requirements for the control and security of Federal Insecticide, 
Fungicide, and Rodenticide Act confidential business information 
contained in the manual entitled ``Federal Insecticide, Fungicide, and 
Rodenticide Act Information Security Manual.'' (See also 1552.235-77 
elsewhere in this solicitation.)

(End of Provision)

[61 FR 14265, Apr. 1, 1996]



Sec. 1552.235-73  Access to Federal Insecticide, Fungicide, and Rodenticide Act Confidential Business Information (Apr 1996).

    As prescribed in 1535.007(a), insert the following provision:

     Access to Federal Insecticide, Fungicide, and Rodenticide Act 
              Confidential Business Information (Apr 1996)

    In order to perform duties under the contract, the Contractor will 
need to be authorized for access to Federal Insecticide, Fungicide, and 
Rodenticide Act (FIFRA) confidential business information (CBI). The 
Contractor and all of its employees handling CBI while working under the 
contract will be required to follow the procedures contained in the 
security manual entitled ``FIFRA Information Security Manual.'' These 
procedures include applying for FIFRA CBI access authorization for each 
individual working under the contract who will have access to FIFRA CBI, 
execution of confidentiality agreements, and designation by the 
Contractor of an individual to serve as a Document Control Officer. The 
Contractor will be required to abide by those clauses contained in EPAAR 
1552.235-70, 1552.235- 71, and 1552.235-77 that are appropriate to the 
activities set forth in the contract.
    Until EPA has approved the Contractor's security plan, the 
Contractor may not be authorized for FIFRA CBI access away from EPA 
facilities.

(End of Provision)

[61 FR 14265, Apr. 1, 1996]



Sec. 1552.235-74  Control and Security of Toxic Substances Control Act Confidential Business Information (Apr 1996).

    As prescribed in 1535.007(b), insert the following provision:

   Control and Security of Toxic Substances Control Act Confidential 
                     Business Information (Apr 1996)

    The offeror certifies that--
    --the Contractor and its employees have read and are familiar with 
the requirements for the control and security of Toxic Substances 
Control Act confidential business information contained in the manual 
entitled ``Toxic Substances Control Act Confidential Business 
Information Security Manual.'' (See also 1552.235-78 elsewhere in this 
solicitation.)

(End of Provision)

[61 FR 14265, Apr. 1, 1996]



Sec. 1552.235-75  Access to Toxic Substances Control Act Confidential Business Information (Apr 1996).

    As prescribed in 1535.007(b), insert the following provision:

Access to Toxic Substances Control Act Confidential Business Information 
                               (Apr 1996)

    In order to perform duties under the contract, the Contractor will 
need to be authorized for access to Toxic Substances Control Act (TSCA) 
confidential business information (CBI). The Contractor and all of its 
employees handling CBI while working under the contract will be required 
to follow the procedures contained in the security manual entitled 
``TSCA Confidential Business Information Security Manual.'' These 
procedures include applying for TSCA CBI access authorization for each 
individual working under the contract who will have access to TSCA CBI, 
execution of confidentiality agreements, and designation by the 
Contractor of an individual to serve as a Document Control Officer. The 
Contractor will be required to abide by those clauses contained in EPAAR 
1552.235-70, 1552.235- 71, and 1552.235-78 that are appropriate to the 
activities set forth in the contract.
    Until EPA has inspected and approved the Contractor's facilities, 
the Contractor may not be authorized for TSCA CBI access away from EPA 
facilities.

(End of Provision)

[61 FR 14265, Apr. 1, 1996]



Sec. 1552.235-76  Treatment of Confidential Business Information (Apr 1996).

    As prescribed in 1535.007-70(c), insert the following clause:

        Treatment of Confidential Business Information (Apr 1996)

    (a) The Project Officer (PO) or his/her designee, after a written 
determination by the appropriate program office, may disclose

[[Page 92]]

confidential business information (CBI) to the Contractor necessary to 
carry out the work required under this contract. The Contractor agrees 
to use the CBI only under the following conditions:
    (1) The Contractor and Contractor's employees shall (i) use the CBI 
only for the purposes of carrying out the work required by the contract; 
(ii) not disclose the information to anyone other than properly cleared 
EPA employees without the prior written approval of the Assistant 
General Counsel for Information Law or his/her designee; and (iii) 
return the CBI to the PO or his/her designee, whenever the information 
is no longer required by the Contractor for performance of the work 
required by the contract, or upon completion of the contract.
    (2) The Contractor shall obtain a written agreement to honor the 
above limitations from each of the Contractor's employees who will have 
access to the information before the employee is allowed access.
    (3) The Contractor agrees that these contract conditions concerning 
the use and disclosure of CBI are included for the benefit of, and shall 
be enforceable by, both EPA and any affected businesses having a 
proprietary interest in the information.
    (4) The Contractor shall not use any CBI supplied by EPA or obtained 
during performance hereunder to compete with any business to which the 
CBI relates.
    (b) The Contractor agrees to obtain the written consent of the CO, 
after a written determination by the appropriate program office, prior 
to entering into any subcontract that will involve the disclosure of CBI 
by the Contractor to the subcontractor. The Contractor agrees to include 
this clause, including this paragraph (b), in all subcontracts awarded 
pursuant to this contract that require the furnishing of CBI to the 
subcontractor.

(End of Clause)

[61 FR 14266, Apr. 1, 1996]



Sec. 1552.235-77  Data Security for Federal Insecticide, Fungicide, and Rodenticide Act Confidential Business Information (Apr 1996).

    As prescribed in 1535.007-70(d), insert the following clause:

 Data Security for Federal Insecticide, Fungicide, and Rodenticide Act 
              Confidential Business Information (Apr 1996)

    The Contractor shall handle Federal Insecticide, Fungicide, and 
Rodenticide Act (FIFRA) confidential business information (CBI) in 
accordance with the contract clause entitled ``Treatment of Confidential 
Business Information'' and ``Screening Business Information for Claims 
of Confidentiality,'' the provisions set forth below, and the 
Contractor's approved detailed security plan.
    (a) The Project Officer (PO) or his/her designee, after a written 
determination by the appropriate program office, may disclose FIFRA CBI 
to the contractor necessary to carry out the work required under this 
contract. The Contractor shall protect all FIFRA CBI to which it has 
access (including CBI used in its computer operations) in accordance 
with the following requirements:
    (1) The Contractor and Contractor's employees shall follow the 
security procedures set forth in the FIFRA Information Security Manual. 
The manual may be obtained from the Project Officer (PO) or the Chief, 
Information Services Branch (ISB), Program Management and Support 
Division, Office of Pesticide Programs (OPP) (H7502C), U.S. 
Environmental Protection Agency, 401 M Street, SW, Washington, DC 20460.
    (2) The Contractor and Contractor's employees shall follow the 
security procedures set forth in the Contractor's security plan(s) 
approved by EPA.
    (3) Prior to receipt of FIFRA CBI by the Contractor, the Contractor 
shall submit a certification statement to the Chief of the ISB, with a 
copy to the Contracting Officer (CO), certifying that all employees who 
will be cleared for access to FIFRA CBI have been briefed on the 
handling, control and security requirements set forth in the FIFRA 
Information Security Manual.
    (4) The Contractor Document Control Officer (DCO) shall obtain a 
signed copy of the FIFRA ``Contractor Employee Confidentiality 
Agreement'' from each of the Contractor's employees who will have access 
to the information before the employee is allowed access.
    (b) The Contractor agrees that these requirements concerning 
protection of FIFRA CBI are included for the benefit of, and shall be 
enforceable by, both EPA and any affected business having a proprietary 
interest in the information.
    (c) The Contractor understands that CBI obtained by EPA under FIFRA 
may not be disclosed except as authorized by the Act, and that any 
unauthorized disclosure by the Contractor or the Contractor's employees 
may subject the Contractor and the Contractor's employees to the 
criminal penalties specified in FIFRA (7 U.S.C. 136h(f)). For purposes 
of this contract, the only disclosures that EPA authorizes the 
Contractor to make are those set forth in the clause entitled 
``Treatment of Confidential Business Information.''
    (d) The Contractor agrees to include the provisions of this clause, 
including this paragraph (d), in all subcontracts awarded pursuant to 
this contract that require the furnishing of CBI to the subcontractor.
    (e) At the request of EPA or at the end of the contract, the 
Contractor shall return to

[[Page 93]]

the EPA PO or his/her designee all documents, logs, and magnetic media 
which contain FIFRA CBI. In addition, each Contractor employee who has 
received FIFRA CBI clearance will sign a ``Confidentiality Agreement for 
Contractor Employees Upon Relinquishing FIFRA CBI Access Authority.'' 
The Contractor DCO will also forward those agreements to the EPA PO or 
his/her designee, with a copy to the CO, at the end of the contract.
    (f) If, subsequent to the date of this contract, the Government 
changes the security requirements, the CO shall equitably adjust 
affected provisions of this contract, in accordance with the ``Changes'' 
clause when:
    (1) The Contractor submits a timely written request for an equitable 
adjustment; and
    (2) The facts warrant an equitable adjustment.

(End of Clause)

[61 FR 14266, Apr. 1, 1996]



Sec. 1552.235-78  Data security for Toxic Substances Control Act confidential business information (Apr 1996).

    As prescribed in 1535.007-70(e), insert the following clause:

  Data Security for Toxic Substances Control Act Confidential Business 
                         Information (Apr 1996)

    The Contractor shall handle Toxic Substances Control Act (TSCA) 
confidential business information (CBI) in accordance with the contract 
clause entitled ``Treatment of Confidential Business Information'' and 
``Screening Business Information for Claims of Confidentiality.''
    (a) The Project Officer (PO) or his/her designee, after a written 
determination by the appropriate program office, may disclose TSCA CBI 
to the contractor necessary to carry out the work required under this 
contract. The Contractor shall protect all TSCA CBI to which it has 
access (including CBI used in its computer operations) in accordance 
with the following requirements:
    (1) The Contractor and Contractor's employees shall follow the 
security procedures set forth in the TSCA CBI Security Manual. The 
manual may be obtained from the Director, Information Management 
Division (IMD), Office of Pollution Prevention and Toxics (OPPT), U.S. 
Environmental Protection Agency (EPA), 401 M Street, SW, Washington, DC 
20460. Prior to receipt of TSCA CBI by the Contractor, the Contractor 
shall submit a certification statement to the Director of the EPA OPPT/
Office of Program Management and Evaluation, with a copy to the 
Contracting Officer (CO), certifying that all employees who will be 
cleared for access to TSCA CBI have been briefed on the handling, 
control, and security requirements set forth in the TSCA CBI Security 
Manual.
    (2) The Contractor shall permit access to and inspection of the 
Contractor's facilities in use under this contract by representatives of 
EPA's Assistant Administrator for Administration and Resources 
Management, and the TSCA Security Staff in the OPPT, or by the EPA 
Project Officer.
    (3) The Contractor Document Control Officer (DCO) shall obtain a 
signed copy of EPA Form 7740-6, ``TSCA CBI Access Request, Agreement, 
and Approval,'' from each of the Contractor's employees who will have 
access to the information before the employee is allowed access. In 
addition, the Contractor shall obtain from each employee who will be 
cleared for TSCA CBI access all information required by EPA or the U.S. 
Office of Personnel Management for EPA to conduct a Minimum Background 
Investigation.
    (b) The Contractor agrees that these requirements concerning 
protection of TSCA CBI are included for the benefit of, and shall be 
enforceable by, both EPA and any affected business having a proprietary 
interest in the information.
    (c) The Contractor understands that CBI obtained by EPA under TSCA 
may not be disclosed except as authorized by the Act, and that any 
unauthorized disclosure by the Contractor or the Contractor's employees 
may subject the Contractor and the Contractor's employees to the 
criminal penalties specified in TSCA (15 U.S.C. 2613(d)). For purposes 
of this contract, the only disclosures that EPA authorizes the 
Contractor to make are those set forth in the clause entitled 
``Treatment of Confidential Business Information.''
    (d) The Contractor agrees to include the provisions of this clause, 
including this paragraph (d), in all subcontracts awarded pursuant to 
this contract that require the furnishing of CBI to the subcontractor.
    (e) At the request of EPA or at the end of the contract, the 
Contractor shall return to the EPA PO or his/her designee, all 
documents, logs, and magnetic media which contain TSCA CBI. In addition, 
each Contractor employee who has received TSCA CBI clearance will sign 
EPA Form 7740-18, ``Confidentiality Agreement for Contractor Employees 
Upon Relinquishing TSCA CBI Access Authority.'' The Contractor DCO will 
also forward those agreements to the EPA OPPT/IMD, with a copy to the 
CO, at the end of the contract.
    (f) If, subsequent to the date of this contract, the Government 
changes the security requirements, the CO shall equitably adjust 
affected provisions of this contract, in accordance with the ``Changes'' 
clause, when:
    (1) The Contractor submits a timely written request for an equitable 
adjustment; and,

[[Page 94]]

    (2) The facts warrant an equitable adjustment.

(End of Clause)

[61 FR 14266, Apr. 1, 1996]



Sec. 1552.235-79  Release of contractor confidential business information (Apr 1996).

    As prescribed in 1535.007-70(f), insert the following clause:

   Release of Contractor Confidential Business Information (Apr 1996)

    (a) The Environmental Protection Agency (EPA) may find it necessary 
to release information submitted by the Contractor either in response to 
this solicitation or pursuant to the provisions of this contract, to 
individuals not employed by EPA. Business information that is ordinarily 
entitled to confidential treatment under existing Agency regulations (40 
CFR Part 2) may be included in the information released to these 
individuals. Accordingly, by submission of this proposal or signature on 
this contract or other contracts, the Contractor hereby consents to a 
limited release of its confidential business information (CBI).
    (b) Possible circumstances where the Agency may release the 
Contractor's CBI include, but are not limited to the following:
    (1) To other Agency contractors tasked with assisting the Agency in 
the recovery of Federal funds expended pursuant to the Comprehensive 
Environmental Response, Compensation, and Liability Act, 42 U.S.C. Sec. 
9607, as amended, (CERCLA or Superfund);
    (2) To the U.S. Department of Justice (DOJ) and contractors employed 
by DOJ for use in advising the Agency and representing the Agency in 
procedures for the recovery of Superfund expenditures;
    (3) To parties liable, or potentially liable, for costs under CERCLA 
Sec. 107 (42 U.S.C. Sec. 9607), et al, and their insurers (Potentially 
Responsible Parties) for purposes of facilitating settlement or 
litigation of claims against such parties;
    (4) To other Agency contractors who, for purposes of performing the 
work required under the respective contracts, require access to 
information the Agency obtained under the Clean Air Act (42 U.S.C. 7401 
et seq.); the Federal Water Pollution Control Act (33 U.S.C.1251 et 
seq.); the Safe Drinking Water Act (42 U.S.C. 300f et seq.); the Federal 
Insecticide, Fungicide and Rodenticide Act (7 U.S.C. 136 et seq.); the 
Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.); the 
Toxic Substances Control Act (15 U.S.C. 2601 et seq.); or the 
Comprehensive Environmental Response, Compensation, and Liability Act 
(42 U.S.C. 9601 et seq.);
    (5) To other Agency contractors tasked with assisting the Agency in 
handling and processing information and documents in the administration 
of Agency contracts, such as providing both preaward and post award 
audit support and specialized technical support to the Agency's 
technical evaluation panels;
    (6) To employees of grantees working at EPA under the Senior 
Environmental Employment (SEE) Program;
    (7) To Speaker of the House, President of the Senate, or Chairman of 
a Committee or Subcommittee;
    (8) To entities such as the General Accounting Office, boards of 
contract appeals, and the Courts in the resolution of solicitation or 
contract protests and disputes;
    (9) To Agency contractor employees engaged in information systems 
analysis, development, operation, and maintenance, including performing 
data processing and management functions for the Agency; and
    (10) Pursuant to a court order or court-supervised agreement.
    (c) The Agency recognizes an obligation to protect the contractor 
from competitive harm that may result from the release of such 
information to a competitor. (See also the clauses in this document 
entitled ``Screening Business Information for Claims of 
Confidentiality'' and ``Treatment of Confidential Business 
Information.'') Except where otherwise provided by law, the Agency will 
permit the release of CBI under subparagraphs (1), (3), (4), (5), (6), 
or (9) only pursuant to a confidentiality agreement.
    (d) With respect to contractors, 1552.235-71 will be used as the 
confidentiality agreement. With respect to Potentially Responsible 
Parties, such confidentiality agreements may permit further disclosure 
to other entities where necessary to further settlement or litigation of 
claims under CERCLA. Such entities include, but are not limited to 
accounting firms and technical experts able to analyze the information, 
provided that they also agree to be bound by an appropriate 
confidentiality agreement.
    (e) This clause does not authorize the Agency to release the 
Contractor's CBI to the public pursuant to a request filed under the 
Freedom of Information Act.
    (f) The Contractor agrees to include this clause, including this 
paragraph (f), in all subcontracts at all levels awarded pursuant to 
this contract that require the furnishing of confidential business 
information by the subcontractor.

(End of Clause)

[61 FR 14267, Apr. 1, 1996]



Sec. 1552.236-70  Samples and certificates.

    As prescribed in 1536.521, insert the following contract clause in 
construction contracts.

[[Page 95]]

                   Samples and Certificates (Apr 1984)

    When required by the specifications or the Contracting Officer, 
samples, certificates, and test data shall be submitted after award of 
the contract, prepaid, in time for proper action by the Contracting 
Officer or his/her designated representative. Certificates and test data 
shall be submitted in triplicate to show compliance of materials and 
construction specified in the contract performance requirements. Samples 
shall be submitted in duplicate by the Contractor, except as otherwise 
specified, to show compliance with the contract requirements. Materials 
or equipment for which samples, certifications or test data are required 
shall not be used in the work until approved in writing by the 
Contracting Officer.

                             (End of clause)



Sec. 1552.237-70  Contract publication review procedures.

    As prescribed in 1537.110, insert the following contract clause when 
the products of the contract are subject to contract publication review.

            Contract Publication Review Procedures (Apr 1984)

    (a) Material generated under this contract intended for release to 
the public is subject to the Agency's publication review process in 
accordance with the EPA Order on this subject and the following.
    (b) Except as indicated in paragraph (c) of this contract, the 
Contractor shall not independently publish or print material generated 
under this contract until after completion of the EPA review process. 
The Project Officer will notify the Contractor of review completion 
within ____ calendar days after the Contractor's transmittal to the 
Project Officer of material generated under this contract. If the 
Contractor does not receive Project Officer notification within this 
period, the Contractor shall immediately notify the Contracting Officer 
in writing.
    (c) The Contractor may publish, in a scientific journal, material 
resulting directly or indirectly from work performed under this 
contract, subject to the following:
    (1) The Contractor shall submit to the Contracting Officer and the 
Project Officer, at least 30 days prior to publication, a copy of any 
paper, article, or other dissemination of information intended for 
publication.
    (2) The Contractor shall include the following statement in a 
journal article which has not been subjected to EPA review: ``Although 
the research described in this article has been funded wholly or in part 
by the United States Environmental Protection Agency contract (number) 
to (Name of Contractor), it has not been subject to the Agency's review 
and therefore does not necessarily reflect the views of the Agency, and 
no official endorsement should be inferred.''
    (3) Following publication of the journal article, the Contractor 
shall submit five copies of the journal article to the Project Officer, 
and one copy to the Contracting Officer.
    (d) If the Government has completed the review process and agreed 
that the contract material may be attributed to EPA, the Contractor 
shall include the following statement in the document:
    This material has been funded wholly or in part by the United States 
Environmental Protection Agency under contract (number) to (name). It 
has been subject to the Agency's review, and it has been approved for 
publication as an EPA document. Mention of trade names or commercial 
products does not constitute endorsement or recommendation for use.
    (e) If the Government has completed the review process, but decides 
not to publish the material, the Contractor may independently publish 
and distribute the material for its own use and its own expense, and 
shall include the following statement in any independent publication:
    Although the information described in this article has been funded 
wholly or in part by the United States Environmental Protection Agency 
under contract (number) to (name), it does not necessarily reflect the 
views of the Agency and no official endorsement should be inferred.

                             (End of clause)



Sec. 1552.237-71  Technical direction.

    As prescribed in 1537.110, insert the following contract clause in 
cost-reimbursement contracts.

                     Technical Direction (Apr 1984)

    (a) The Project Officer will provide technical direction on contract 
performance. Technical direction includes:
    (1) Direction to the Contractor which assists him in accomplishing 
the Statement of Work.
    (2) Comments on and approval of reports or other deliverables.
    (b) Technical direction must be within the contract Statement of 
Work. The Project Officer does not have the authority to issue technical 
direction which (1) institutes additional work outside the scope of the 
contract; (2) constitutes a change as defined in the ``Changes'' clause; 
(3) causes an increase or decrease in the estimated cost of the 
contract; (4) alters the period of performance; or (5) changes any of 
the other express terms or conditions of the contract.
    (c) Technical direction will be issued in writing by the Project 
Officer or confirmed

[[Page 96]]

by him in writing within five (5) calendar days after verbal issuance.

                             (End of clause)



Sec. 1552.237-72  Key personnel.

    As prescribed in 1537.110, insert the following contract clause when 
it is necessary for contract performance to identify Contractor key 
personnel.

                        Key Personnel (Apr 1984)

    (a) The Contractor shall assign to this contract the following key 
personnel:
_______________________________________________________________________
_______________________________________________________________________
    (b) During the first ninety (90) days of performance, the Contractor 
shall make no substitutions of key personnel unless the substitution is 
necessitated by illness, death, or termination of employment. The 
Contractor shall notify the Contracting Officer within 15 calendar days 
after the occurrence of any of these events and provide the information 
required by paragraph (c) of this clause. After the initial 90-day 
period, the Contractor shall submit the information required by 
paragraph (c) to the Contracting Officer at least 15 days prior to 
making any permanent substitutions.
    (c) The Contractor shall provide a detailed explanation of the 
circumstances necessitating the proposed substitutions, complete resumes 
for the proposed substitutes, and any additional information requested 
by the Contracting Officer. Proposed substitutes should have comparable 
qualifications to those of the persons being replaced. The Contracting 
Officer will notify the Contractor within 15 calendar days after receipt 
of all required information of the decision on substitutions. This 
clause will be modified to reflect any approved changes of key 
personnel.

                             (End of clause)



Sec. 1552.237-73  Consultant services and consent.

    As prescribed in 1537.110, insert the following contract clause in 
contracts where the services of consultants are required. Enter ``none'' 
in paragraph (b) if consent is not given for one or more consultants at 
the time of award.

               Consultant Services and Consent (Apr 1984)

    (a) The Contractor shall obtain the consent of the Contracting 
Officer prior to using any consultant on this contract. The Contractor 
shall determine whether any consultant that is used has in effect an 
agreement with another Federal agency for similar or like services and, 
if so, shall notify the Contracting Officer.
    (b) The Contractor may use the following consultants for the period 
of time at the rate shown.

------------------------------------------------------------------------
                                                       Not to exceed the
                Name                    Number of      (daily) (hourly) 
                                      (days) (hours)        rate of     
------------------------------------------------------------------------
                                     ...............          $........ 
                                     ...............          $........ 
------------------------------------------------------------------------

                             (End of clause)



Sec. 1552.237-74  Publicity.

    As prescribed in 1537.110, insert the following contract clause in 
contracts pertaining to the removal or remedial activities under the 
Comprehensive Environmental Response, Compensation and Liability Act 
(CERCLA) (``Super Fund'') program. The term ``on-scene coordinator'' may 
be substituted with ``Project Officer.''

                          Publicity (Apr 1984)

    (a) The Contractor agrees to notify and obtain the verbal approval 
of the on-scene coordinator (or Project Officer) prior to releasing any 
information to the news media regarding the removal or remedial 
activities being conducted under this contract.
    (b) It is also agreed that the Contractor shall acknowledge EPA 
support whenever the work funded in whole or in part by this contract is 
publicized in any news media.

                             (End of clause)



Sec. 1552.237-75  Paperwork Reduction Act.

    As prescribed in 1537.110, insert this contract clause in any 
contract requiring the collection of identical information from ten (10) 
or more public respondents.

                   Paperwork Reduction Act (Apr 1984)

    If it is established at award or subsequently becomes a contractual 
requirement to collect identical information from ten (10) or more 
public respondents, the Paperwork Reduction Act of 1980, 44 U.S.C. 3501 
et seq. applies. In that event, the Contractor shall not take any action 
to solicit information from any of the public respondents until notified 
in writing by the Contracting officer that the required Office of 
Management and Budget (OMB) final clearance was received.

[[Page 97]]

                             (End of clause)



Sec. 1552.239-103  Acquisition of Energy Star Compliant Microcomputers, Including Personal Computers, Monitors and Printers.

    As prescribed in 1523.7003, insert the following clause:

ACQUISITION OF ENERGY STAR COMPLIANT MICROCOMPUTERS, INCLUDING PERSONAL 
                    COMPUTERS, MONITORS, AND PRINTERS

                              (April 1996)

    (a) The Contractor shall provide computer products that meet EPA 
Energy Star requirements for energy efficiency. By acceptance of this 
contract, the Contractor certifies that all microcomputers, including 
personal computers, monitors, and printers to be provided under this 
contract meet EPA Energy Star requirements for energy efficiency.
    (b) The Contractor shall ship all products with the standby feature 
activated or enabled.
    (c) The Contractor shall provide models that have equivalent 
functionality to similar non-power managed models. This functionality 
should include as a minimum:
    (1) The ability to run commercial off-the-shelf software both before 
and after recovery from a low power state, including retention of files 
opened (with no loss of data) before the power management feature was 
activated.
    (2) If equipment will be used on a local area network (LAN), the 
contractor shall provide equipment that is fully compatible with network 
environments, e.g., personal computers resting in a low-power state 
should not be disconnected from the network.
    (d) The contractor shall provide monitors that are capable of being 
powered down when connected to the accompanying personal computer.

                             (End of Clause)

[61 FR 14507, Apr. 2, 1996]



Sec. 1552.242-70  Indirect costs.

    As prescribed in 1542.705-70, insert the following clause in all 
cost-reimbursement type contracts. If ceilings are not being 
established, enter ``not applicable'' in (c).

                        Indirect Costs (Apr 1984)

    (a) In accordance with paragraph (d) of the ``Allowable Cost and 
Payment'' clause, the final indirect cost rates applicable to this 
contract shall be established between the Contractor and the appropriate 
Government representative (EPA, other Government agency, or auditor), as 
provided by FAR 42.703(a). EPA's procedures require a Contracting 
Officer determination of indirect cost rates for its contracts. In those 
cases where EPA is the cognizant agency (see FAR 42.705-1), the final 
rate proposal shall be submitted to the cognizant audit activity and to 
the following designated Contracting Officer: Environmental Protection 
Agency, Chief, Cost Policy and Rate Negotiation Branch (3804F), Cost 
Advisory and Financial Analysis Division, Washington, DC 20460.

Where EPA is not the cognizant agency, the final rate proposal shall be 
submitted to the above-cited address, to the cognizant audit agency, and 
to the designated Contracting Officer of the cognizant agency. Upon 
establishment of the final indirect cost rates, the Contractor shall 
submit an executed Certificate of Current Cost or Pricing Data (see FAR 
15.804-4) applicable to the data furnished in connection with the final 
rates to the cognizant audit agency. The final rates shall be contained 
in a written understanding between the Contractor and the appropriate 
Government representative. Pursuant to the ``Allowable Cost and 
Payment'' clause, the allowable indirect costs under this contract shall 
be obtained by applying the final agreed upon rate(s) to the appropriate 
bases.
    (b) Until final annual indirect cost rates are established for any 
period, the Government shall reimburse the contractor at billing rates 
established by the appropriate Government representative in accordance 
with FAR 42.704, subject to adjustment when the final rates are 
established. The established billing rates are currently as follows:

------------------------------------------------------------------------
           Cost center                Period        Rate         Base   
------------------------------------------------------------------------
                                   ...........  ...........  ...........
                                   ...........  ...........  ...........
------------------------------------------------------------------------

    These billing rates may be prospectively or retroactively revised by 
mutual agreement, at the request of either the Government or the 
Contractor, to prevent substantial overpayment or underpayment.
    (c) Notwithstanding the provisions of paragraphs (a) and (b) of this 
clause, ceilings are hereby established on indirect costs reimbursable 
under this contract. The Government shall not be obligated to pay the 
Contractor any additional amount on account of indirect costs in excess 
of the ceiling rates listed below:

------------------------------------------------------------------------
           Cost center                Period        Rate         Base   
------------------------------------------------------------------------
                                   ...........  ...........  ...........
                                   ...........  ...........  ...........
------------------------------------------------------------------------


[[Page 98]]

                             (End of clause)

[49 FR 8867, Mar. 8, 1984, as amended at 59 FR 18977, Apr. 21, 1994]



Sec. 1552.245-70  Decontamination of government property.

    As prescribed in 1545.106(a) and 1545.303-71, insert the following 
contract clause when it is anticipated that a Contractor will use 
Government-furnished or Contractor-acquired property in the cleanup of 
hazardous or toxic substances in the environment.

            Decontamination of Government Property (Apr 1984)

    In addition to the requirements of the ``Government Property'' 
clause, the Contractor shall certify in writing that any Government-
furnished property or Contractor-acquired property is returned to the 
Government free from contamination by any hazardous or toxic substances.

                             (End of clause)



Sec. 1552.245-71  Government-furnished data.

    As prescribed in 1545.106(b), insert the following contract clause 
in any contract that the Government is to furnish the Contractor data. 
Identify in the clause the data to be provided.

                  Government-Furnished Data (Apr 1984)

    (a) The Government shall deliver to the Contractor the Government-
furnished data described in the contract. If the data, suitable for its 
intended use, is not delivered to the Contractor, the Contracting 
Officer shall equitably adjust affected provisions of this contract in 
accordance with the ``Changes'' clause when:

    (1) The Contractor submits a timely written request for an equitable 
adjustment; and
    (2) The facts warrant an equitable adjustment.
    (b) Title to Government-furnished data shall remain in the 
Government.
    (c) The Contractor shall use the Government-furnished data only in 
connection with this contract.
    (d) The following data will be furnished to the Contractor on or 
about the time indicated:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

                             (End of clause)



Sec. 1552.245-72  Fabrication or acquisition of nonexpendable property.

    As prescribed in 1545.106(c), insert the following contract clause 
in all cost-reimbursement type contracts or contracts with cost-
reimbursement portions.

     Fabrication or Acquisition of Nonexpendable Property (Apr 1984)

    The Contractor shall not fabricate nor acquire under this contract, 
either directly or indirectly through a subcontract, any item of 
nonexpendable property without written approval from the Contracting 
Officer.

                             (End of clause)



Sec. 1552.246-70  Quality Assurance (QA) Program plan.

    As prescribed in 1546.201(b), insert the following solicitation 
provision in Requests for Proposals if a program plan is required. A QA 
program plan is a general statement of an offeror's capability for QA.

             Quality Assurance (QA) Program Plan (Apr 1984)

    Each offeror, as a separate and identifiable part of its technical 
proposal, shall submit a Quality Assurance (QA) program plan setting 
forth the offeror's capability for quality assurance. The plan shall 
address the following:
    (a) A statement of policy concerning the organization's commitment 
to implement a Quality Control/Quality Assurance program to assure 
generation of measurement data of adequate quality to meet the 
requirements of the Statement of Work.
    (b) An organizational chart showing the position of a QA function or 
person within the organization. It is highly desirable that the QA 
function or person be independent of the functional groups which 
generate measurement data.
    (c) A delineation of the authority and responsibilities of the QA 
function or person and the related data quality responsibilities of 
other functional groups of the organization.
    (d) The type and degree of experience in developing and applying 
Quality Control/Quality Assurance procedures to the proposed sampling 
and measurement methods needed for performance of the Statement of Work.
    (e) The background and experience of the proposed personnel relevant 
to accomplish the QA specifications in the Statement of Work.

[[Page 99]]

    (f) The offeror's general approach for accomplishing the QA 
specifications in the Statement of Work.

                           (End of provision)



Sec. 1552.246-71  Quality Assurance (QA) Project Plan.

    As prescribed in 1546.201(c)(1), insert the following solicitation 
provision in Requests for Proposals when a QA project plan is required 
as part of the proposal submission. A QA project plan is a specific 
delineation of an offeror's approach for accomplishing the QA 
specifications in a Statement of Work. When offerors are required to 
submit a project plan, a program plan may or may not be required. The 
project plan may be a part of an offeror's technical proposal, or a 
deliverable under the contract.

             Quality Assurance (QA) Project Plan (Apr 1984)

    The offeror, as a separate and identifiable part of its technical 
proposal, shall submit a Quality Assurance (QA) project plan which shall 
describe specific procedures and responsibilities needed to accomplish 
the QA specifications in the Statement of Work. The project plan shall 
consist of the following form and content:
    (a) Title page, with provision for approval signatures.
    (b) Table of contents.
    (c) Project description.
    (d) Project organization(s) and responsibilities.
    (e) Quality Assurance objectives for measurement data, in terms of 
precision, accuracy, completeness, representativeness and comparability.
    (f) Sampling procedures.
    (g) Sample custody.
    (h) Calibration procedures, references, and frequency.
    (i) Analytical procedures.
    (j) Data reduction, validation, and reporting.
    (k) Internal quality control checks and frequency.
    (l) Quality assurance performance audits, system audits, and 
frequency.
    (m) Quality Assurance reports to management.
    (n) Preventive maintenance procedures and schedules.
    (o) Specific procedures to be used in routinely assessing data 
precision and accuracy, representativeness, comparability, and 
completeness of the specific measurement parameters involved.
    (p) Correction action.

                           (End of provision)

[49 FR 8867, Mar. 8, 1984; 49 FR 24735, June 15, 1984]



Sec. 1552.246-72  Quality Assurance (QA) Project Plan documentation.

    As prescribed in 1546.201(c)(2), insert the following clause in 
negotiated contracts when QA Project Plan Documentation is needed. A QA 
project plan is a specific delineation of an offeror's approach for 
accomplishing the QA specifications in a Statement of Work. When 
offerors are required to submit a project plan, a program plan may or 
may not be required. When a QA project plan was not a required part of 
the technical proposal, the project plan may be required as a 
deliverable under the contract by use of the following. However, the 
Statement of Work must contain a specification for the form and content 
of the project plan before this paragraph may be used.

      Quality Assurance (QA) Project Plan Documentation (Apr 1984)

    (a) The Contractor shall submit to the Project Officer ____ copies 
of a Draft Project Plan for Quality Assurance within ____ days after the 
effective date of the contract.
    (b) The Government will review and return the Draft Project Plan 
indicating approval or disapproval, and comments, if necessary, within 
______ calendar days. In the event the government delays review and 
return of the Draft Project Plan beyond the period specified, the 
Contractor shall immediately notify the Contracting Officer in writing. 
The Contractor shall deliver the Final Project Plan within ______ days 
after the effective date of the contract.
    (c) The Contracting Officer will incorporate the approved Quality 
Assurance Project Plan into the contract.

                             (End of clause)



PART 1553--FORMS--Table of Contents




Sec.
1553.000  Scope of part.

                  Subpart 1553.2--Prescription of Forms

1553.209  Contractor qualifications.
1553.209-70  EPA Form 1900-26, Contracting Officer's Evaluation of 
          Contractor Performance.
1553.209-71  EPA Form 1900-27, Project Officer's Evaluation of 
          Contractor Performance.

[[Page 100]]

1553.213  Small purchases and other simplified purchase procedures.
1553.213-70  EPA Form 1900-8, Procurement Request/Order.
1553.216  Types of contracts.
1553.216-70  EPA Form 1900-41A, CPAF Contract Summary of Significant 
          Performance Observation.
1553.216-71  EPA Form 1900-41B, CPAF Contract Individual Performance 
          Event.
1553.232  Contract financing.
1553.232-70  EPA Form 1900-3, Assignee's Release.
1553.232-71  EPA Form 1900-4, Assignee's Assignment of Refunds, Rebates, 
          Credits and Other Amounts.
1553.232-72  EPA Form 1900-5, Contractor's Assignment of Refunds, 
          Rebates, and Credits.
1553.232-73  EPA Form 1900-6, Contractor's Release.
1553.232-74  EPA Form 1900-10, Contractor's Cumulative Claim and 
          Reconciliation.
1553.232-75  EPA Form 1900-68, notice of contract costs suspended and/or 
          disallowed.
1553.232-76  [Reserved]

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c).

    Source: 49 FR 8886, Mar. 8, 1984, unless otherwise noted.

    Editorial Note: Forms referenced in part 1553 do not appear in the 
Code of Federal Regulations.



Sec. 1553.000  Scope of part.

    This part prescribes Agency forms for use in acquisitions and 
contains requirements and information generally applicable to the forms.



                  Subpart 1553.2--Prescription of Forms

1553.209  Contractor qualifications.



Sec. 1553.209-70  EPA Form 1900-26, Contracting Officer's Evaluation of Contractor Performance.

    As prescribed in 1509.170-4(a), EPA Form 1900-26 shall be used by 
the Contracting Officer to record his/her evaluation of Contractor 
performance.



Sec. 1553.209-71  EPA Form 1900-27, Project Officer's Evaluation of Contractor Performance.

    As prescribed in 1509.170-4(a), EPA Form 1900-27 shall be used by 
the Project Officer to record his/her evaluation of Contractor 
performance.
1553.213  Small purchases and other simplified purchase procedures.



Sec. 1553.213-70  EPA Form 1900-8, Procurement Request/Order.

    As prescribed in 1513.505-2, EPA Form 1900-8 may be used in lieu of 
Optional Forms 347 and 348 for individual purchases.



Sec. 1553.216  Types of contracts.



Sec. 1553.216-70  EPA Form 1900-41A, CPAF Contract Summary of Significant Performance Observation.

    As prescribed in 1516.404-278, EPA Form 1900-41A shall be used to 
document significant performance observations under CPAF contracts.



Sec. 1553.216-71  EPA Form 1900-41B, CPAF Contract Individual Performance Event.

    As prescribed in 1516.404-278, EPA Form 1900-41B shall be used to 
document individual performance events under CPAF contracts.
1553.232  Contract financing.



Sec. 1553.232-70  EPA Form 1900-3, Assignee's Release.

    As prescribed in 1532.805-70(a), the EPA Form 1900-3 is required to 
be submitted by the assignee for cost-reimbursement contracts prior to 
final payment under the contract.



Sec. 1553.232-71  EPA Form 1900-4, Assignee's Assignment of Refunds, Rebates, Credits and Other Amounts.

    As prescribed in 1532.805-70(b), the EPA Form 1900-4 must accompany 
the assignee's release prior to final payment under cost-reimbursement 
contracts.



Sec. 1553.232-72  EPA Form 1900-5, Contractor's Assignment of Refunds, Rebates, and Credits.

    As prescribed in 1532.805-70(c), the EPA Form 1900-5 must be 
prepared by the Contractor prior to final payment under cost-
reimbursement contracts and must accompany the Contractor's release.

[[Page 101]]



Sec. 1553.232-73  EPA Form 1900-6, Contractor's Release.

    As prescribed in 1532.805-70(d), the EPA Form 1900-6 must be 
submitted by the Contractor under cost-reimbursement contracts prior to 
final payment thereunder.



Sec. 1553.232-74  EPA Form 1900-10, Contractor's Cumulative Claim and Reconciliation.

    As prescribed in 1532.170(a), the EPA Form 1900-10 shall be used for 
an accounting of the cumulative charges and costs for cost-reimbursement 
contracts from the inception of the contract to completion. It shall be 
submitted by the Contractor along with the completion voucher.



Sec. 1553.232-75  EPA Form 1900-68, notice of contract costs suspended and/or disallowed.

    As prescribed in 1532.170(b), the Contracting Officer shall insert 
EPA Form 1900-68 in all cost-reimbursement type and fixed-rate type 
contracts.

[61 FR 29318, June 10, 1996]



Sec. 1553.232-76  [Reserved]

    Appendix I to Chapter 15--Environmental Protection Agency; Class 
 Justification for Other Than Full and Open Competition in Acquisitions 
  From the Federal Prison Industries and the Government Printing Office

    1. The Environmental Protection Agency (EPA) anticipates the 
acquisition of supplies from the Federal Prison Industries (UNICOR) and 
the acquisition of Government printing and related supplies from the 
Government Printing Office (GPO) to meet the needs of the Agency.
    2. The Agency is authorized to make these acquisitions from the 
UNICOR and GPO without full and open competition under the authority in 
41 U.S.C. 253(c)(5) as sources required by statute, i.e., 18 U.S.C. 4124 
and 44 U.S.C. 501-504, 1121.
    3. The anticipated cost of these acquisitions to the Agency will be 
fair and reasonable.
    4. This class justification applies to any proposed acquisition made 
by the EPA from the UNICOR or GPO.
    5. This class justification will remain in effect until April 1, 
1988.
    6. The undersigned certifies that this class justification is 
accurate and complete to the best of his knowledge and belief.

[50 FR 14361, Apr. 11, 1985]

[[Page 103]]



CHAPTER 16--OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH BENEFITS ACQUISITION REGULATION




                          (Parts 1600 to 1699)

  --------------------------------------------------------------------








                          SUBCHAPTER A--GENERAL
Part                                                                Page
1601            Federal Acquisition Regulations System......         105
1602            Definitions of words and terms..............         106
1603            Improper business practices and personal 
                    conflicts of interest...................         108
1604            Administrative matters......................         109
                   SUBCHAPTER B--ACQUISITION PLANNING
1605            Publicizing contract actions................         110
1606            Competition requirements....................         110
1609            Contractor qualifications...................         110
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
1614            Sealed bidding..............................         113
1615            Contracting by negotiation..................         113
1616            Types of contracts..........................         116
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
1622            Application of labor laws to Government 
                    acquisitions............................         118
1624            Protection of privacy and freedom of 
                    information.............................         118
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
1631            Contract cost principles and procedures.....         119
1632            Contract financing..........................         121

[[Page 104]]

1633            Protests, disputes, and appeals.............         123
                  SUBCHAPTER G--CONTRACT ADMINISTRATION
1642            Contract administration.....................         124
1644            Subcontracting policies and procedures......         127
1646            Quality assurance...........................         127
1649            Termination of contracts....................         127
                     SUBCHAPTER H--CLAUSES AND FORMS
1652            Contract clauses............................         129
1653            Forms.......................................         142

[[Page 105]]



                          SUBCHAPTER A--GENERAL





PART 1601--FEDERAL ACQUISITION REGULATIONS SYSTEM--Table of Contents




              Subpart 1601.1--Purpose, Authority, Issuance

Sec.
1601.101  Purpose.
1601.102  Authority.
1601.103  Applicability.
1601.104  Issuance.
1601.104-1  Publication and code arrangement.
1601.104-2  Arrangement of regulation.
1601.105  OMB approval under the Paperwork Reduction Act.

         Subpart 1601.3--Agency Acquisition Regulation (FEHBAR)

1601.301  Policy.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16037, May 1, 1987, unless otherwise noted.



              Subpart 1601.1--Purpose, Authority, Issuance



Sec. 1601.101  Purpose.

    (a) This subpart establishes chapter 16, Office of Personnel 
Management Federal Employees Health Benefits Acquisition Regulation, 
within title 48, the Federal Acquisition Regulation System, of the Code 
of Federal Regulations. The short title of this regulation shall be 
FEHBAR.
    (b) The purpose of the FEHBAR is to implement and supplement the 
Federal Acquisition Regulation (FAR) specifically for acquiring and 
administering contracts with health insurance carriers in the Federal 
Employees Health Benefits Program (FEHBP).



Sec. 1601.102  Authority.

    (a) The FEHBAR is issued by the Director of the Office of Personnel 
Management in accordance with the authority of 5 U.S.C. chapter 89 and 
other applicable law and regulation.
    (b) The FEHBAR does not replace or incorporate regulations found at 
5 CFR part 890, which provides the substantive policy guidance for 
administration of the FEHBP under 5 U.S.C. Chapter 89. The following is 
the order of precedence in interpreting a contract provision under the 
FEHBP:
    (1) 5 U.S.C. Chapter 89;
    (2) 5 CFR part 890;
    (3) 48 CFR Chapters 1 and 16;
    (4) The FEHBP contract.

[52 FR 16037, May 1, 1987, as amended at 59 FR 14764, Mar. 30, 1994]



Sec. 1601.103  Applicability.

    The FAR is generally applicable to contracts negotiated in the FEHBP 
pursuant to 5 U.S.C. chapter 89. The FEHBAR implements and supplements 
the FAR where necessary to identify basic and significant acquisition 
policies unique to the FEHBP.



Sec. 1601.104  Issuance.



Sec. 1601.104-1  Publication and code arrangement.

    (a) The FEHBAR and its subsequent changes are published in
    (1) Daily issues of the Federal Register; and
    (2) Cumulative form of the Code of Federal Regulations.
    (b) The FEHBAR is issued as chapter 16 of title 48 of the Code of 
Federal Regulations.



Sec. 1601.104-2  Arrangement of regulation.

    (a) General. The FEHBAR conforms with the arrangement and numbering 
system prescribed by FAR 1.104. However, when a FAR part or subpart is 
adequate for use without further OPM implementation or supplementation, 
there will be no corresponding FEHBAR part, subpart, etc. The FEHBAR is 
to be used in conjunction with the FAR and the order for use is:
    (1) FAR;
    (2) FEHBAR.
    (b) Citation. (1) In formal documents, such as legal briefs, 
citation of chapter 16 material that has been published in the Federal 
Register will be to title 48 of the Code of Federal Regulations.
    (2) In informal documents, any section of chapter 16 may be 
identified as ``FEHBAR'' followed by the section number.

[[Page 106]]



Sec. 1601.105  OMB approval under the Paperwork Reduction Act.

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to obtain approval from the Office of Management and 
Budget (OMB) before collecting information from ten or more members of 
the public. The information collection and recordkeeping requirements 
contained in this regulation have been approved by the OMB. The 
following OMB control numbers apply.

------------------------------------------------------------------------
                         Provision                           Control No.
------------------------------------------------------------------------
FEHBAR 1604.705............................................    3206-0145
FAR 9.1....................................................    3206-0145
------------------------------------------------------------------------



         Subpart 1601.3--Agency Acquisition Regulation (FEHBAR)



Sec. 1601.301  Policy.

    (a) Procedures, contract clauses, and other aspects of the 
acquisition process for contracts in the FEHBP shall be consistent with 
the principles of the FAR. Changes to the FAR that are otherwise 
authorized by statute or applicable regulation, dictated by the 
practical realities associated with the unique nature of health care 
procurements, or necessary to satisfy specific needs of the Office of 
Personnel Management shall be implemented as amendments to the FEHBAR 
and published in the Federal Register, or as deviations to the FAR in 
accordance with FAR subpart 1.4.
    (b) Internal procedures, instructions, and guides that are necessary 
to clarify or implement the FEHBAR within OPM may be issued by agency 
officials specifically designated by the Director, OPM. Normally, such 
designations will be specified in the OPM Administrative Manual, which 
is routinely available to agency employees and will be made available to 
interested outside parties upon request. Clarifying or implementing 
procedures, instructions, and guides issued pursuant to this section of 
the FEHBAR must--
    (1) Be consistent with the policies and procedures contained in this 
regulation as implemented and supplemented from time to time; and
    (2) Follow the format, arrangement, and numbering system of this 
regulation to the extent practicable.



PART 1602--DEFINITIONS OF WORDS AND TERMS--Table of Contents




Sec.
1602.000-70  Scope of part.

               Subpart 1602.1--Definitions of FEHBP Terms

1602.170  Definition of terms.
1602.170-1  Carrier.
1602.170-2  Community rate.
1602.170-3  Comprehensive medical plan.
1602.170-4  Contractor.
1602.170-5  Director.
1602.170-6  Experience rate.
1602.170-7  FEHBP.
1602.170-8  Health benefits plan.
1602.170-9  Letter of credit.
1602.170-10  OPM.
1602.170-11  Similarly sized subscriber groups.
1602.170-12  Subcontractor.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16038, May 1, 1987, unless otherwise noted.



Sec. 1602.000-70  Scope of part.

    This part defines words and terms commonly used in this regulation.



               Subpart 1602.1--Definitions of FEHBP Terms



Sec. 1602.170  Definition of terms.

    In this chapter, unless otherwise indicated, the following terms 
have the meaning set forth in this subpart.



Sec. 1602.170-1  Carrier.

    Carrier, as defined in 5 U.S.C. 8901(7), means a voluntary 
association, corporation, partnership, or other nongovernmental 
organization which is lawfully engaged in providing, paying for, or 
reimbursing the cost of, health services under group insurance policies 
or contracts, medical or hospital service agreements, membership or 
subscription contracts, or similar group arrangements, in consideration 
of premiums or other periodic charges payable to the carrier, including 
a health benefits plan duly sponsored or underwritten by an employee 
organization.

[[Page 107]]



Sec. 1602.170-2  Community rate.

    (a) Community rate means a rate of payment based on a per member per 
month capitation rate or its equivalent that applies to a combination of 
the subscriber groups for a comprehensive medical plan. This capitation 
rate or its equivalent is a market price consistent with FAR 15.804-3. 
References in this subchapter to ``price analysis'' or ``established 
market price'' relating to the applicability of policy and contract 
clauses refer to comprehensive medical plans using community rates.
    (b) Adjusted community rate means a community rate which has been 
adjusted for expected use of medical resources of the FEHBP group. An 
adjusted community rate is a prospective rate and cannot be 
retroactively revised to reflect actual experience, utilization, or 
costs of the FEHBP group.

[55 FR 27414, July 2, 1990]



Sec. 1602.170-3  Comprehensive medical plan.

    Comprehensive Medical Plan means a plan as defined under 5 U.S.C. 
8903(4).



Sec. 1602.170-4  Contractor.

    Contractor means carrier.



Sec. 1602.170-5  Director.

    Director means the Director of the Office of Personnel Management.



Sec. 1602.170-6  Experience rate.

    Experience rate means a rate for a given group that is the result of 
that group's actual paid claims, administrative expenses, retentions, 
and estimated claims incurred but not reported, adjusted for benefit 
modifications, utilization trends, and economic trends. Actual paid 
claims include any actual or negotiated benefits payments made to 
providers of medical services for the provision of health care such as 
capitation not adjusted for specific groups, per diems, and Diagnostic 
Related Group (DRG) payments.

[54 FR 27414, July 2, 1990]



Sec. 1602.170-7  FEHBP.

    FEHBP means the Federal Employees Health Benefits Program.



Sec. 1602.170-8  Health benefits plan.

    Health benefits plan, as defined in 5 U.S.C. 8901(6), means a group 
insurance policy or contract, medical or hospital service agreement, 
membership or subscription contract, or similar group arrangements 
provided by a carrier for the purpose of providing, paying for, or 
reimbursing expenses for health services.



Sec. 1602.170-9  Letter of credit.

    Letter of credit means the method by which certain carriers, and 
their underwriters if authorized, receive recurring premium payments and 
contingency reserve payments by drawing against a commitment (certified 
by a responsible OPM official) which specifies a dollar amount 
available. For each carrier participating in the letter of credit 
arrangement for payment under this part, the terms ``carrier reserves,'' 
and ``special reserves'' include any balance in the carrier's letter of 
credit account.

[53 FR 51783, Dec. 23, 1988, as amended at 57 FR 14359, Apr. 20, 1992]



Sec. 1602.170-10  OPM.

    OPM means the Office of Personnel Management.

[52 FR 16038, May 1, 1987. Redesignated at 53 FR 51783, Dec. 23, 1988]



Sec. Sec. 1602.170-11  Similarly sized subscriber groups.

    Similarly sized subscriber groups (SSSGs) are a comprehensive 
medical plan's two employer groups that:
    (a) As of the date specified by OPM in the rate instructions, have a 
subscriber enrollment closest to the FEHBP subscriber enrollment; and,
    (b) Use any rating method other than retrospective experience 
rating; and,
    (c) Meet the criteria specified in the rate instructions issued by 
OPM.

[59 FR 14764, Mar. 30, 1994]



Sec. 1602.170-12  Subcontractor.

    Subcontractor means any supplier, distributor, vendor, or firm that 
furnishes supplies or services to or for a

[[Page 108]]

prime contractor or another subcontractor, except for providers of 
direct medical services or supplies pursuant to the Carrier's health 
benefits plan.

[52 FR 16038, May 1, 1987. Redesignated at 53 FR 51783, Dec. 23, 1988, 
and further redesignated at 55 FR 27414, July 2, 1990]



PART 1603--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents




      Subpart 1603.70--Misleading, Deceptive, or Unfair Advertising

Sec.
1603.701  Policy.
1603.702  Additional guidelines.
1603.703  Contract clause.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16039, May 1, 1987, unless otherwise noted.



      Subpart 1603.70--Misleading, Deceptive, or Unfair Advertising



Sec. 1603.701  Policy.

    (a) OPM prepares and distributes or makes available to Federal 
employees and annuitants a comparison booklet which presents summary 
information and a benefits brochure which details benefits, limitations, 
and premium rates for all participating plans. OPM does not encourage, 
support, or reimburse participating carriers for the costs of 
advertisements. However, while OPM believes that advertising is 
unnecessary, it recognizes that the decision to use advertising rests 
with each carrier.
    (b) OPM discourages advertising that is misleading or deceptive. 
This includes advertising that is directed at other carriers' plans 
participating in the Program and which uses incomplete or inappropriate 
comparisons or disparaging or minimizing techniques. Such unfair 
practices are prejudicial to the interests of the vast majority of 
carriers whose advertising is fair and accurate.
    (c) Failure to conform to the requirements of this subpart shall be 
a material breach of the contract and may result in withdrawal of 
approval to continue participation in the FEHB Program.



Sec. 1603.702  Additional guidelines.

    Any advertisements which identify a carrier's participation in the 
FEHBP shall--
    (a) Be limited to the merits of the carrier's FEHBP plan and shall 
be limited to factual statements of the benefits and rates offered by 
that plan. The official document for benefit and rate comparisons among 
FEHBP plans is the comparison chart issued by OPM.
    (b) Not use the FEHBP logo.
    (c) Recognize that the officially approved plan brochure is the sole 
contractual statement of benefits, limitations, and exclusions. All 
advertisements that in any way discuss plan benefits shall contain the 
following statement:

    This is a summary (or brief description) of the features of the 
(plan's name). Before making a final decision, please read the plan's 
officially approved brochure, (brochure number). All benefits are 
subject to the definitions, limitations, and exclusions set forth in the 
official brochure.
    (d) Set forth the rates for the plan, if the advertisements discuss 
benefits.
    (e) Not give instructions on enrollment. Statements on enrollment 
procedures, requirements, or eligibility shall be limited to those such 
as:
    To sign up, fill out a Health Benefits Registration Form (Standard 
Form 2809) from your personnel office indicating the enrollment you 
want:
    The enrollment codes for (plan's name) are:

      Self Only ____________ Enrollment Code____________

      Self and Family ____________ Enrollment Code ____________

    The form must then be returned to your personnel office before the 
(date) deadline. Your (plan's name) coverage will begin the first pay 
period in January, (year). If you are a retired Federal employee and 
need forms, contact the Office of Personnel Management at P.O. Box 809, 
Washington, DC 20044.



Sec. 1603.703  Contract clause.

    The clause at 1652.203-70 shall be inserted in all FEHBP contracts.

[[Page 109]]



PART 1604--ADMINISTRATIVE MATTERS--Table of Contents




              Subpart 1604.7--Contractor Records Retention

Sec.
1604.703  Policy.
1604.705  Specific retention periods.

                Subpart 1604.70--Coordination of Benefits

1604.7001  Coordination of benefits clause.

             Subpart 1604.71--Disputed Health Benefit Claims

1604.7101  Filing health benefit claims/court review of disputed claims.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16039, May 1, 1987, unless otherwise noted.



              Subpart 1604.7--Contractor Records Retention



Sec. 1604.703  Policy.

    In view of the unique payment schedules of FEHBP contracts and the 
compelling need for records retention periods sufficient to protect the 
Government's interest, contractors shall be required to maintain records 
for periods determined in accordance with the provisions of FAR 
4.703(b)(1).



Sec. 1604.705  Specific retention periods.

    Unless the contracting officer determines that there exists a 
compelling reason to include only the contract clause specified by FAR 
52.215-2 ``Audit--Negotiation,'' the contracting officer shall insert 
the clause at 1652.204-70 in all FEHBP contracts.



                Subpart 1604.70--Coordination of Benefits



Sec. 1604.7001  Coordination of benefits clause.

    OPM expects all FEHBP plans to coordinate benefits. Accordingly, the 
clause set forth at 1652.204-71 shall be inserted in all FEHBP 
contracts.



             Subpart 1604.71--Disputed Health Benefit Claims



Sec. Sec. 1604.7101  Filing Health Benefit Claims/Court Review of Disputed Claims.

    Guidelines for a Federal Employees Health Benefit (FEHB) Program 
covered individual to file a claim for payment or service and for legal 
actions on disputed health benefit claims are found at 5 CFR 890.105 and 
890.107, respectively. The contract clause at 1652.204-72 of this 
chapter, reflecting this guidance, must be inserted in all FEHB Program 
contracts.

[61 FR 15198, Apr. 5, 1996]

[[Page 110]]



                   SUBCHAPTER B--ACQUISITION PLANNING





PART 1605--PUBLICIZING CONTRACT ACTIONS--Table of Contents




    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.



Sec. 1605.000  Applicability.

    FAR part 5 has no practical application to the FEHBP because OPM 
does not issue solicitations. Eligible contractors (i.e., qualified 
health benefits carriers) are identified in accordance with 5 U.S.C. 
8903. Offerors voluntarily come forth in accordance with procedures 
provided in 5 CFR part 890.

[52 FR 16039, May 1, 1987]



PART 1606--COMPETITION REQUIREMENTS--Table of Contents




    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.



Sec. 1606.001   Applicability.

    FAR part 6 has no practical application to FEHBP contracts in view 
of the statutory exception provided by 5 U.S.C. 8902.

[52 FR 16039, May 1, 1987]



PART 1609--CONTRACTOR QUALIFICATIONS--Table of Contents




        Subpart 1609.4--Debarment, Suspension, and Ineligibility

1609.470  Notification of Debarment, Suspension, and Ineligibility.
1609.471  Contractor certification.

     Subpart 1609.70--Minimum Standards for Health Benefits Carriers

1609.7001  Minimum standards for health benefits carriers.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.



        Subpart 1609.4--Debarment, Suspension, and Ineligibility

    Source: 59 FR 14764, Mar. 30, 1994, unless otherwise noted.



Sec. 1609.470  Notification of Debarment, Suspension, and Ineligibility.

    (FAR) 48 CFR, part 9, subpart 9.4 is supplemented as set out in the 
certification required in 1609.471 by converting the FAR ``offeror's'' 
certification at (FAR) 48 CFR 52.209-5 into a carrier's certification. 
This change reflects the FEHBP's statutory exemption from competitive 
bidding (5 U.S.C. 8902), which obviates the issuance of solicitations.



Sec. 1609.471  Contractor certification.

    All FEHBP carriers and applicant carriers are required to submit the 
following certification. Applicant carriers must submit the 
certification prior to OPM's determination on the application for 
approval to participate in the FEHBP. Current carriers must submit the 
certification once, along with their benefit and rate proposals for the 
1995 contract year.

  Debarment, Suspension, Proposed Debarment, and Other Responsibility 
                                 Matters

    The Carrier certifies, to the best of its knowledge and belief, 
that--
    (a) The Carrier and/or any of its Principals--
    (1) Are ( ) are not ( ) presently debarred, suspended, proposed for 
debarment, or declared ineligible for the award of contracts by any 
Federal agency;
    (2) Have ( ) have not ( ), within a 3-year period preceding this 
certification, been convicted of or had a civil judgment rendered 
against them for: Commission of fraud or a criminal offense in 
connection with obtaining, attempting to obtain, or performing a public 
(Federal, state, or local) contract or subcontract; violation of Federal 
or state antitrust statutes relating to the submission of offers; or 
commission of embezzlement, theft, forgery, bribery, falsification or 
destruction of records, making false statements, or receiving stolen 
property; and
    (3) Are ( ) are not ( ) presently indicted for, or otherwise 
criminally or civilly charged by a governmental entity with, commission 
of any of the offenses enumerated in subdivision (a)(2) of this clause.
    (4) The Carrier has ( ) has not ( ), within a 3-year period 
preceding this certification, had one or more contracts terminated for 
default by any Federal agency.
    (b) Principals, for the purposes of this certification, means 
officers; directors; owners;

[[Page 111]]

partners; and persons having primary management or supervisory 
responsibilities within a business entity (e.g., general manager; plant 
manager; head of a subsidiary, division, or business segment, and 
similar positions).
    This certification concerns a matter within the jurisdiction of an 
agency of the United States and the making of a false, fictitious, or 
fraudulent certification may render the Carrier subject to prosecution 
under section 1001, title 18, United States Code.
    (c) The Carrier shall provide immediate written notice to the 
Contracting Officer if, at any time, the Carrier learns that its 
certification was erroneous when submitted or has become erroneous by 
reason of changed circumstances.
    (d) A Carrier's certification that any of the actions mentioned in 
the certification exists will not necessarily result in termination of 
the contract. However, the certification, or the Carrier's failure to 
provide such additional information as requested by the Contracting 
Officer, will be considered in connection with a determination of the 
Carrier's responsibility under subpart 1609.70, Minimum Standards for 
Health Benefits Carriers.
    (e) Nothing contained in the certification shall be construed to 
require establishment of a system of records in order to render, in good 
faith, the certification required by this section. The knowledge and 
information of the Carrier is not required to exceed that which is 
normally possessed by a prudent person in the ordinary course of 
business dealings.
    (f) The certification in this section is a material representation 
of fact upon which reliance is placed by the Contracting Officer. If it 
is later determined that the Carrier knowingly rendered an erroneous 
certification, in addition to other remedies available to the 
Government, the Contracting Officer may terminate the contract for 
default.

Carrier Name:___________________________________________________________
_______________________________________________________________________
Name of Chief Executive Officer

Date signed:____________________________________________________________

(End of Certificate)



     Subpart 1609.70--Minimum Standards for Health Benefits Carriers



Sec. 1609.7001  Minimum standards for health benefits carriers.

    (a) The carrier of an approved health benefits plan shall meet the 
requirements of chapter 89 of title 5, United States Code; part 890 of 
title 5, Code of Federal Regulations; chapter 1 of title 48, Code of 
Federal Regulations, and the following standards. The carrier shall 
continue to meet the requirements of chapter 89 of title 5, United 
States Code, and the standards cited in this paragraph while under 
contract with OPM. Failure to meet these requirements and standards is 
cause for OPM's withdrawal of approval of the health benefits carrier 
and termination of the contract in accordance with 5 CFR 890.204.
    (1) It must be lawfully engaged in the business of supplying health 
benefits.
    (2) It must have, in the judgement of OPM, the financial resources 
and experience in the field of health benefits to carry out its 
obligations under the plan.
    (3) It must keep such reasonable financial and statistical records, 
and furnish such reasonable financial and statistical reports with 
respect to the plan, as may be requested by OPM.
    (4) It must permit representatives of OPM and of the General 
Accounting Office to audit and examine its records and accounts which 
pertain, directly or indirectly, to the plan at such reasonable times 
and places as may be designated by OPM or the General Accounting Office.
    (5) It must accept, subject to adjustment for error or fraud, in 
payment of its charges for health benefits for all enrollees in its 
plan, the enrollment charges received by the Employees Health Benefits 
(EHB) Fund less amounts set aside for the administrative and contingency 
reserves prescribed in 5 CFR 890.503. OPM makes available or pays the 
amounts within 30 days of receipt by the EHB Fund.
    (6) A carrier that is an employee organization must continue 
coverage, without requirement of membership, of any eligible survivor 
annuitants, former spouses continuing coverage with the carrier under 5 
CFR 890.803, children temporarily continuing coverage with the carrier 
under 5 CFR 890.1103(a)(2), or former spouses temporarily continuing 
coverage with the carrier under 5 CFR 890.1103(a)(3).
    (7) It must timely submit to OPM a properly completed and signed 
novation or change-of-name agreement in accordance with subpart 1642.12 
of this chapter.

[[Page 112]]

    (b) In addition to the standards in paragraph (a) of this section, 
the carrier must perform the contract in accordance with prudent 
business practices. A carrier's sustained poor business practice in the 
management or administration of a health benefits plan is cause for 
OPM's withdrawal of approval of the health benefits carrier and 
termination of the carrier's contract. Prudent business practices 
include, but are not limited to, the following:
    (1) Timely compliance with OPM instructions and directives.
    (2) Legal and ethical business and health care practices.
    (3) Compliance with the terms of the FEHB contract, regulations and 
statutes.
    (4) Timely and accurate adjudication of claims or rendering of 
medical services.
    (5) A system for accounting for costs incurred under the contract, 
when required, which includes segregating and pricing FEHB medical 
utilization and allocating indirect and administrative costs in a 
reasonable and equitable manner.
    (6) Accurate accounting reports of actual, allowable, allocable, and 
reasonable costs incurred in the administration of the contract.
    (7) Application of performance standards for assuring contract 
quality as required by 1646.270(d).
    (8) Establishment and maintenance of a system of internal control 
that provides reasonable assurance that:
    (i) The provision and payments of benefits and other expenses are in 
compliance with legal, regulatory, and contractual guidelines;
    (ii) FEHB funds, property, and other assets are safeguarded against 
waste, loss, unauthorized use, or misappropriation; and,
    (iii) Data are accurately and fairly disclosed in all reports 
required by OPM.
    (c) The following types of activities are examples of poor business 
practices which adversely affect the health benefits carrier's 
responsibility under its contract. A pattern of poor conduct or evidence 
of misconduct in these areas is cause for OPM to withdraw approval of 
the carrier:
    (1) Presenting false claims by charging expenses to the contract 
which according to the contract terms are not chargeable to the 
contract;
    (2) Using fraudulent or unethical business or health care practices 
or otherwise displaying a lack of business integrity or honesty;
    (3) Repeatedly and knowingly providing false or misleading 
information in the rate setting process;
    (4) Repeated failure to comply with OPM instructions and directives;
    (5) Having an accounting system that is incapable of separately 
accounting for costs incurred under the contract and/or that lacks the 
internal controls necessary to fulfill the terms of the contract; and
    (6) Failure to assure that the plan provides properly paid or denied 
claims, or providing medical services which are inconsistent with 
standards of good medical practice.
    (d) The Director or his or her designee will determine whether to 
propose withdrawal of approval and hold a hearing based on the 
seriousness of the carrier's actions and its proposed method to effect 
corrective action.

[57 FR 14359, Apr. 20, 1992. Redesignated and amended at 59 FR 14764, 
14765, Mar. 30, 1994]

[[Page 113]]



          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES





PART 1614--SEALED BIDDING--Table of Contents




    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.



Sec. 1614.000  Applicability.

    FAR part 14 has no practical application to FEHBP contracts in view 
of the statutory exemption provided by 5 U.S.C. 8902.

[52 FR 16039, May 1, 1987]



PART 1615--CONTRACTING BY NEGOTIATION--Table of Contents




          Subpart 1615.1--General Requirements for Negotiation

Sec.
1615.170  Negotiation authority.

  Subpart 1615.4--Solicitations and Receipt of Proposals and Quotations

1615.401  Applicability.

                    Subpart 1615.6--Source Selection

1615.602  Applicability.

                    Subpart 1615.8--Price Negotiation

1615.802  Policy.
1615.804-70  Certificate of accurate pricing for community rate plans.
1615.804-71  Supplemental representation for SF 1412.
1615.804-72  Rate reduction for defective pricing or defective cost or 
          pricing data.
1615.805-70  Carrier investment of FEHB funds.
1615.805-71  Investment income clause.

                         Subpart 1615.9--Profit

1615.902  Policy.
1615.905  Profit analysis factors.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16040, May 1, 1987, unless otherwise noted.



          Subpart 1615.1--General Requirements for Negotiation



Sec. 1615.170  Negotiation authority.

    The authority to negotiate FEHBP contracts is conferred by 5 U.S.C. 
8902.



  Subpart 1615.4--Solicitations and Receipt of Proposals and Quotations



Sec. 1615.401  Applicability.

    FAR subpart 15.4 has no practical application to the FEHBP because 
OPM does not issue solicitations. Eligible contractors (i.e., qualified 
health benefits carriers) are identified in accordance with 5 U.S.C. 
8903. Offerors voluntarily come forth in accordance with procedures 
provided in 5 CFR part 890.



                    Subpart 1615.6--Source Selection



Sec. 1615.602  Applicability.

    FAR subpart 15.6 has no practical application to the FEHBP because 
prospective contractors (carriers) are considered for inclusion in the 
FEHBP in accordance with criteria provided in 5 U.S.C. chapter 89 and 5 
CFR part 890 rather than on the basis of competition between prospective 
carriers.



                    Subpart 1615.8--Price Negotiation



Sec. 1615.802  Policy.

    Pricing of FEHB contracts is governed by 5 U.S.C. 8902(i), 5 U.S.C. 
8906, and other applicable law. FAR subpart 15.8 shall be implemented by 
applying the policies and procedures--to the extent practicable--as 
follows:
    (a)(1) Cost analysis shall be used for contracts where premiums and 
subscription income are determined on the basis of experience rating.
    (2) The application of FAR 15.802(b)(2) should not be construed to 
prohibit the consideration of preceding year surpluses or deficits in 
carrier-held reserves in the rate adjustments for subsequent year 
renewals of contracts based on cost analysis.

[[Page 114]]

    (b)(1) Price analysis for contracts where premiums and subscription 
income are based on community rates (market prices). For contracts with 
fewer than 1,500 FEHBP subscribers, OPM may rely on a basic 
reasonableness test in combination with a carrier's representation that 
the market price submitted on SF 1412, Claim for Exemption from 
Submission of Certified Cost or Pricing Data, is based on the price 
offered to its similarly sized subscriber groups (see FEHBAR 1602.170-
11).
    (2) For contracts with 1,500 FEHBP subscribers or more and for 
contracts with fewer than 1,500 FEHBP subscribers that do not use the SF 
1412, OPM shall require that the plan provide the data and methodology 
used to determine the FEHBP rates. OPM shall also require the data and 
methodology used to determine the rates for the plan's similarly sized 
subscriber groups.
    (3) Contracts will be subject to a downward price adjustment if OPM 
determines that the Federal group was charged more than it would have 
been charged using a methodology consistent with that used for the 
SSSGs. Such adjustments will be based on the lowest rates determined for 
the Federal group using the methodology (including discounts) for the 
two SSSGs.
    (4) FEHBP community rated carriers shall comply with SSSG criteria 
provided annually by OPM in the rate instructions for the applicable 
contract period.

[52 FR 16040, May 1, 1987, as amended at 55 FR 27414, July 2, 1990; 59 
FR 14765, Mar. 30, 1994]



Sec. 1615.804-70  Certificate of accurate pricing for community rated plans.

    The contracting officer shall require a carrier that rates using a 
community rate as defined by FEHBAR 1602.170-2 to execute the 
Certificate of Accurate Pricing for Community Rated Plans contained in 
this section unless the carrier has been exempted from filing certified 
cost or pricing data pursuant to 1615.802(b)(1). The carrier shall 
submit the Certificate to OPM at the time it submits its rate 
reconciliation.

        Certificate of Accurate Pricing for Community Rated Plans

    This is to certify that, to the best of my knowledge and belief: (1) 
the cost or pricing data submitted (or, if not submitted, maintained and 
identified by the carrier as supporting documentation) to the 
Contracting Officer or the Contracting Officer's representative or 
designee in support of the ______* FEHBP rates were developed in 
accordance with the requirements of 48 CFR Chapter 16 and the FEHBP 
contract, and are accurate, complete, and current as of the date this 
certificate is executed; and (2) The FEHBP rates were developed in a 
manner consistent with the methodology used to rate the plan's similarly 
sized subscriber groups and approved by OPM.
---------------------------------------------------------------------------

    *Insert the year for which the rates apply. Normally, this will be 
the year for which the rates are being reconciled.

Firm: __________________________________________________________________
Name: __________________________________________________________________
Title: _________________________________________________________________
Signature: _____________________________________________________________
Date of Execution: _____________________________________________________

(End of Certificate)

[59 FR 14765, Mar. 30, 1994]



Sec. 1615.804-71  Supplemental representation for SF 1412.

    Carriers with less than 1,500 FEHBP subscribers may request an 
exemption from submission of certified cost and pricing data. The 
request for exemption is made on SF 1412, Claim for Exemption from 
Submission of Certified Cost or Pricing Data (see FAR 53.301-1412), 
which contains a representation that all the statements made on or 
attached to the SF 1412 are correct. In addition to the representation 
made on the SF 1412, the Contracting Officer shall require the carrier 
to execute the Supplemental Representation for SF 1412 shown below. The 
carrier shall attach the supplemental representation to the SF 1412.

                 Supplemental Representation for SF 1412

    The Carrier represents that the market price used to determine the 
______ * FEHBP rates is no greater than the market price quoted to the 
Carrier's similarly sized subscriber groups (see FEHBAR 1602.170-11); 
that adjustments made to the market price were consistent with the 
rating methodology used to rate the Carrier's similarly sized subscriber 
groups; and that the adjustments

[[Page 115]]

were developed in accordance with the requirements of 48 CFR chapter 16 
and the FEHBP contract.

Firm____________________________________________________________________

Name____________________________________________________________________

Title___________________________________________________________________

Signature_______________________________________________________________

Date of execution_______________________________________________________

    * Identify the time period to which the rates apply. The rate must 
be either the actual rate in effect for the current contract term or a 
quoted rate for the next contract term.

[55 FR 27414, July 2, 1990]



Sec. 1615.804-72  Rate reduction for defective pricing or defective cost or pricing data.

    The clause set forth in 1652.215-70 shall be inserted in all FEHBP 
contracts based on established market price.

[55 FR 27415, July 2, 1990]



Sec. 1615.805-70  Carrier investment of FEHB funds.

    (a) This paragraph does not apply to contracts based on price 
analysis.
    (b) The carrier is required to invest and reinvest all funds on 
hand, including any attributable to the special reserve or the reserve 
for incurred but unpaid claims, exceeding the funds needed to discharge 
promptly the obligations incurred under the contract.
    (c) The carrier is required to credit income earned from its 
investment of FEHB funds to the special reserve on behalf of the FEHB 
Program. If a carrier fails to invest excess FEHB funds or to credit any 
income due the contract, for whatever reason, it shall return or credit 
any investment income lost to OPM or the special reserve.
    (d) Investment income. Investment income is the net amount earned by 
the carrier after deducting investment expenses.

[52 FR 16040, May 1, 1987, as amended at 55 FR 27415, July 2, 1990]



Sec. 1615.805-71  Investment income clause.

    The clause set forth in 1652.215-71 shall be inserted in all 
contracts based on cost analysis.



                         Subpart 1615.9--Profit



Sec. 1615.902  Policy.

    (a) OPM will determine the profit or fee prenegotiation objective 
(service charge) portion of FEHBP contracts by use of a weighted 
guidelines structured approach when the pricing of such contracts is 
determined by cost analysis. The service charge so determined shall be 
the total service charge that may be negotiated for the contract and 
shall encompass any service charge (whether entitled service charge, 
profit, fee, contribution to reserves or surpluses, or any other title) 
that may have been negotiated by the prime contractor with any 
subcontractor or underwriter.
    (b) OPM will not guarantee a minimum service charge.



Sec. 1615.905  Profit analysis factors.

    (a) OPM contracting officers will apply a weighted guidelines method 
in developing the service charge prenegotiation objective for FEHBP 
contracts. The following factors as defined in FAR 15.905-1 will be 
applied to projected incurred claims and allowable administrative 
expenses:
    (1) Contractor performance. OPM will consider such elements as the 
accurate and timely processing of benefit claims and the volume and 
validity of disputed claims as measures of economical and efficient 
contract performance. This factor will be judged apart from the 
contractor's basic responsibility for contract performance and will be a 
measure of the extent and nature of the contractor's contribution to the 
FEHBP through the application of managerial expertise and effort. 
Evidence of effective contract performance will receive a plus weight, 
and poor performance or failure to comply with contract terms and 
conditions a negative weight. Innovations of benefit to the FEHBP 
generally a plus weight, documented inattention or indifference to cost 
control a negative weight.
    (2) Contract cost risk. OPM will consider such underwriting elements 
as the availability of margins, group size, enrollment demographics and 
fluctuation, and the probability of conversion and adverse selection, as 
well as the extent of financial assistance the carrier renders to the 
contract, in assessing

[[Page 116]]

the degree of cost responsibility and associated risk assumed by the 
contractor as a factor in negotiating profit. It should be noted that 
the ``loss carry forward basis'' of experience rated group insurance 
practices limits this factor in an overall determination of profit. This 
factor is intended to provide profit opportunities commensurate with the 
contractor's share of cost risks only, taking into account such elements 
as the adequacy and reliability of data for estimating costs, etc., 
offset by the ``loss carry forward basis'' of experience rating.
    (3) Federal socioeconomic programs. OPM will consider documented 
evidence of successful, contractor-initiated efforts to support such 
Federal socioeconomic programs as drug and substance abuse deterrents, 
and other concerns of the type enumerated in FAR 15.905-1(c) as a factor 
in negotiating profit. This factor will be related to the quality of the 
contractor's policies and procedures and the extent of unusual effort or 
achievement demonstrated. Evidence of effective support of Federal 
socioeconomic programs will receive a plus weight; poor support will 
receive a negative weight.
    (4) Capital investments. This factor is generally not applicable to 
FEHBP contracts because facilities capital cost of money may be an 
allowable administrative expense. Generally, this factor shall be given 
a weight of zero. However, special purpose facilities or investments 
costs of direct benefit to the FEHBP that are not recoverable as 
allowable or allocable administrative expenses may be taken into account 
in assigning a plus weight.
    (5) Cost control. OPM will consider contractor-initiated efforts 
such as improved benefit design, cost-sharing features, innovative peer 
review, or other professional cost containment efforts as a factor in 
negotiating profit. This factor shall be used to reward contractors with 
additional profit opportunities for self-initiated efforts to control 
contract costs.
    (6) Independent development. OPM will consider any profit 
opportunities that may be directly related to relevant independent 
efforts such as the development of a unique and enhanced customer 
support system that is of demonstrated value to the FEHBP and for which 
developmental costs have not been recovered directly or indirectly 
through allowable administrative expenses. This factor will be used to 
provide additional profit opportunities based upon an assessment of the 
contractor's investment and risk in developing techniques, methods, 
practices, etc., having viability to the program at large. Improvements 
and innovations recognized and rewarded under any of the other profit 
factors cannot be considered.
    (b) The weight ranges for each factor to be used in the weighted 
guidelines approach are set forth below:

------------------------------------------------------------------------
               Profit factor                   Weight ranges (percent)  
------------------------------------------------------------------------
1. Contractor performance.................  -.2 to +.45.                
2. Contract cost risk*....................  +.02 to +.2.                
3. Federal socioeconomic programs.........  -.05 to +.05.               
4. Capital investments....................  0 to +.02.                  
5. Cost control...........................  0 to +.35.                  
6. Independent development................  0 to +.03.                  
------------------------------------------------------------------------
*The contract cost risk factor is subdivided into two parts: group size 
  (.02 to .10) and other risk elements (0 to .10). With respect to the  
  group size element, subweights should be assigned as follows:         


                                                                        
                Enrollment                        Weight (percent)      
                                                                        
  10,000 or less..........................  .06 to .10.                 
  10,001-50,000...........................  .05 to .09.                 
  50,001-200,000..........................  .04 to .07.                 
  200,001-500,000.........................  .03 to .06.                 
  500,001 and over........................  .02 to .04.                 
                                                                        



PART 1616--TYPES OF CONTRACTS--Table of Contents




                Subpart 1616.1--Selecting Contract Types

Sec.
1616.102  Policies.
1616.105  Solicitation provision.

                  Subpart 1616.2--Fixed-Price Contracts

1616.270  Clause--contracts based on established market price (community 
          rate).
1616.271  Clause--contracts based on cost analysis (experience rate).

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16041, May 1, 1987, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 1616 appear at 55 FR 
27415, July 2, 1990.

[[Page 117]]



                Subpart 1616.1--Selecting Contract Types



Sec. 1616.102  Policies.

    (a) FEHBP contracts in which benefits provided and subscription 
income are based on community rating (i.e., established market price) 
shall be negotiated fixed-price contracts with economic price 
adjustments.
    (b) FEHBP contracts in which benefits provided and subscription 
income are based on experience rating shall be a combination of 
negotiated fixed-price contracts with provisions for a form of 
retroactive price redetermination.



Sec. 1616.105  Solicitation provision.

    FAR 16.105 has no practical application because the statutory 
provisions of 5 U.S.C. chapter 89 obviate the issuance of solicitations.



                  Subpart 1616.2--Fixed-Price Contracts



Sec. 1616.270  Clause--contracts based on established market price (community rate).

    The clause at 1652.216-70 shall be inserted in all FEHBP contracts 
based on established market price.



Sec. 1616.271  Clause--contracts based on cost analysis (experience rate).

    The clause at 1652.216-71 shall be inserted in all FEHBP contracts 
based on cost analysis.

[[Page 118]]



                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS





PART 1622--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS--Table of Contents






                  Subpart 1622.1--Basic Labor Policies

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.



Sec. 1622.103-70  Contract clause.

    The clause at 1652.222-70 shall be inserted in all FEHBP contracts.

[55 FR 27415, July 2, 1990]



PART 1624--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION--Table of Contents






            Subpart 1624.1--Protection of Individual Privacy

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.



Sec. 1624.104  Contract clause.

    Records retained by FEHBP carriers on Federal subscribers and 
members of their families serve the carriers' own commercial function of 
paying health benefits claims and are not maintained to accomplish an 
agency function of OPM. Consequently, the records do not fall within the 
provisions of the Privacy Act. Nevertheless, OPM recognizes the need for 
carriers to keep certain records confidential. The clause at 1652.224-70 
shall be inserted in all FEHBP contracts.

[52 FR 16041, May 1, 1987]

[[Page 119]]



             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS





PART 1631--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents




         Subpart 1631.2--Contracts With Commercial Organizations

Sec.
1631.200  Scope of subpart.
1631.201-70  FEHBP credits.
1631.203-70  FEHBP General and Administrative (G&A) expenses.
1631.205  Selected costs.
1631.205-41  Taxes.
1631.205-70  FEHBP public relations and advertising costs.
1631.205-71  FEHBP bad debts.
1631.205-72  FEHBP compensation for personal services.
1631.205-73  FEHBP interest expense.
1631.205-74  FEHBP losses on other contracts.
1631.205-75  Selling costs.
1631.205-76  Trade, business, technical and professional activity costs.
1631.205-77  FEHBP start-up and other nonrecurring costs.
1631.205-78  FEHBP printed material costs.
1631.205-79  Mandatory statutory reserves.
1631.205-80  Major subcontractor service charges.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16041, May 1, 1987, unless otherwise noted.



         Subpart 1631.2--Contracts With Commercial Organizations



Sec. 1631.200  Scope of subpart.

    The cost principles under this subpart apply only to contracts in 
which premiums and subscription income are determined on the basis of 
experience rating, in which cost analysis is performed, or in which 
price is determined on the basis of actual costs incurred.



Sec. 1631.201-70  FEHBP credits.

    The provisions of FAR 31.201-5 shall apply to income, rebates, 
allowances, and other credits resulting from benefit payments that 
include, but are not limited to--
    (a) Coordination of benefit refunds;
    (b) Hospital year-end settlements;
    (c) Uncashed and returned checks;
    (d) Utilization review refunds;
    (e) Refunds attributable to litigation with subscribers or providers 
of health services; and
    (f) Erroneous benefit payment, overpayment, and duplicate payment 
recoveries.



Sec. 1631.203-70  FEHBP General and Administrative (G&A) expenses.

    The provisions of FAR 31.203 apply to the allocation of indirect 
costs by means of a ``dividend or retention formula.''
1631.205  Selected costs.



Sec. 1631.205-41  Taxes.

    5 U.S.C. 8909(f)(1) prohibits the imposition of taxes, fees, or 
other monetary payment, directly or indirectly, on FEHB premiums by any 
State, the District of Columbia, or the Commonwealth of Puerto Rico, or 
by any political subdivision or other governmental authority of those 
entities. Therefore, FAR 31.205-41 is modified to include those taxes as 
unallowable costs. The prohibited payments, referred to elsewhere in 
these regulations as ``premium taxes,'' applies to all payments directed 
by States or municipalities, regardless of how they may be titled, to 
whom they must be paid, or the purpose for which they are collected, and 
it applies to all forms of direct and indirect measurements on FEHBP 
premiums, however modified, to include cost per contract or enrollee, 
with the sole exception of a tax on net income or profit, if that tax, 
fee, or payment is applicable to a broad range of business activity.

[56 FR 57496, Nov. 12, 1991]



Sec. 1631.205-70  FEHBP public relations and advertising costs.

    (a) The cost of media messages that are directed at advising current 
FEHBP subscribers on how to obtain benefits shall be an allowable 
expense within the meaning of FAR 31.205-1 because this service is 
directly related to performance of the FEHBP contract. If there is any 
question about the allowability of such a cost, the carrier may

[[Page 120]]

request advance approval regarding the content and cost of the message.
    (b) Costs of media messages not provided for in paragraph (a) of 
this section are allowable if the content is specifically approved by 
the contracting officer and all of the following criteria are met:
    (1) The primary effect of the message is to disseminate information 
on health care cost containment or preventive health care;
    (2) The costs of the carrier's messages are allocated to all 
underwritten and non-underwritten lines of business; and
    (3) The contracting officer approves the total dollar amount of the 
carrier's messages to be charged to the FEHBP in advance of the contract 
year.
    (c) Costs of messages that are intended to, or which have the 
primary effect of, calling favorable attention to the carrier (or 
subcontractor) for the purpose of enhancing its overall image or selling 
its health plan are not allowable.



Sec. 1631.205-71  FEHBP bad debts.

    Erroneous benefit payments are not automatically disallowed by FAR 
31.205-3.



Sec. 1631.205-72  FEHBP compensation for personal services.

    Overtime on an FEHBP contract would normally meet the condition 
specified in FAR 22.103. Premiums for overtime, extra-pay shifts, and 
multi-shifts meeting the specified conditions shall be allowed without 
prior approval.



Sec. 1631.205-73  FEHBP interest expense.

    (a) Interest charges incurred in the administration of FEHBP 
contracts are not allowable in accordance with FAR 31.205-20. However, 
interest charges that are associated with the carrier's investment of 
FEHBP account funds are not considered administrative costs and may be 
allowable under very limited circumstances if all of the following 
criteria are met:
    (1) Borrowing is limited to the positive balance of the carrier's 
entire FEHBP investment portfolio;
    (2) FEHBP funds are tied up in long-term securities;
    (3) Liquidation of long-term securities would cost more than the 
cost of the interest;
    (4) The interest rates charged are at or below current market rates; 
and
    (5) Advance written approval of the contracting officer is obtained 
before such costs are incurred.
    (b) The carrier must demonstrate on a case-by-case basis that 
borrowing rather than cashing in long-term investments shall actually 
result in cost savings to the FEHB Program. Satisfactory demonstration 
of cost savings is a prerequisite to contracting officer approval of the 
interest cost as a charge to the contract.
    (c) If the interest charge is allowed, the risk factor in the 
service charge will be adjusted downward so that the carrier does not 
recover interest costs through both the service charge and an allowance 
under this paragraph.



Sec. 1631.205-74  FEHBP losses on other contracts.

    FAR 31.205-23 shall not be construed to prohibit the application of 
the normal ``loss carry forward'' principle that is fundamental to 
continuing insurance contracts that are based on experience rating.



Sec. 1631.205-75  Selling costs.

    (a) FAR 31.205-38 is modified to eliminate from allowable costs 
those costs related to sales promotion and the payment of sales 
commissions fees or salaries to employees or outside commercial or 
selling agencies for enrolling Federal subscribers in a particular FEHB 
plan.
    (b) Selling costs are allowable costs to FEHBP contracts to the 
extent that they are necessary for conducting annual contract 
negotiations with the Government and for liaison activities necessary 
for ongoing contract administration. Personnel and related travel costs 
are allowable for attendance at Open Season health fairs and other 
similar activities sponsored by Government agencies (but see FAR 31.205-
1 ``Public relations and advertising costs'', and Federal Personnel 
Manual Supplement 890-1, Subchapter S2-3(f) ``Controlling contacts 
between employees and carriers'').

[[Page 121]]



Sec. 1631.205-76  Trade, business, technical, and professional activity costs.

    (a) FEHBP participating plans, carriers, and underwriters shall seek 
the advance written approval of the contracting officer for allowability 
of all or part of the costs associated with trade, business, technical, 
and professional activities (FAR 31.205-43) when the allocable costs of 
such participation to the FEHBP will exceed $1,000 annually and when the 
carrier or underwriter allocates more than 50% of the membership cost of 
a trade, business, technical, or professional organization to the FEHBP.
    (b) When approval of costs for membership in an organization is 
required, the carrier or underwriter must demonstrate conclusively that 
membership in such an organization and participation in its activities 
extend beyond the contractual relationship with OPM, have a reasonable 
relationship to providing care and services to FEHBP enrollees, and that 
the organization is not engaged in activities such as those cited in FAR 
31.205-22 (lobbying costs) for which costs are not allowable.



Sec. 1631.205-77  FEHBP start-up and other nonrecurring costs.

    Precontract costs (FAR 31.205-32) shall be allowed only to the 
extent provided for by advance agreement in accordance with FAR 31.109.



Sec. 1631.205-78  FEHBP printed material costs.

    Unless OPM determines that it is in the best interest of the FEHBP 
to do otherwise, if a carrier orders printed material that is available 
from the Government Printing Office (GPO) under the ``rider system'' 
from another source, the allowable contract charges shall be the lesser 
of the amount actually paid or the cost that would have been incurred 
had the carrier ridden OPM's GPO order.



Sec. 1631.205-79  Mandatory statutory reserves.

    Charges for mandatory statutory reserves are not allowed unless 
provided for in the contract. When the term ``mandatory statutory 
reserve'' is specifically identified as an allowable contract charge 
without further definition or explanation, it means a requirement 
imposed by State law upon the carrier to set aside a specific amount or 
rate of funds into a restricted reserve that is accounted for separately 
from all other reserves and surpluses of the carrier and which may be 
used only with the specific approval of the State official designated by 
law to make such approvals. The amount chargeable to the contract may 
not exceed an allocable portion of the amount actually set aside. If the 
statutory reserve is no longer required for the purpose for which it was 
created, and these funds become available for the general use of the 
carrier, a pro rata share based upon FEHBP's contribution to the total 
carrier's set aside shall be returned to the FEHBP in accordance with 
FAR 31.201-5.



Sec. 1631.205-80  Major subcontractor service charges.

    In a subcontract for enrollment and eligibility determinations, 
administration of claims and payment of benefits, and payment or 
provision of actual health services, and/or assumption of insurance risk 
or underwriting, when costs are determined on the basis of actual costs 
incurred or experience rating, any amount that exceeds the allowable 
cost of the subcontract (whether entitled service charge, profit, fee, 
contribution to reserve, surplus, or any other title) is not allowable 
under the contract. Amounts which exceed allowable costs may be paid to 
a major subcontractor only from the service charge negotiated between 
OPM and the Carrier.



PART 1632--CONTRACT FINANCING--Table of Contents




                         Subpart 1632.1--General

Sec.
1632.170  Recurring premium payments to carriers.
1632.171  Clause--community-rated contracts.
1632.172  Clause--experience-rated contracts.

                     Subpart 1632.6--Contract Debts

1632.607  Tax credit.
1632.617  Contract clause.

[[Page 122]]

                    Subpart 1632.7--Contract Funding

1632.770  Contingency reserve payments.
1632.771  Non-commingling of FEHBP funds.
1632.772  Contract clause.

                  Subpart 1632.8--Assignment of Claims

1632.806-70  Contract clause.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16043, May 1, 1987, unless otherwise noted.



                         Subpart 1632.1--General



Sec. 1632.170  Recurring premium payments to carriers.

    (a) Recurring payments to carriers of community-rated plans. OPM 
will pay to carriers of community-rated plans the premium payments 
received for the plan less the amounts credited to the contingency and 
administrative reserves. Premium payments will be due and payable not 
later than 30 days after receipt by the Federal Employees Health 
Benefits (FEHB) Fund.
    (b)(1) Recurring payments to carriers of experience-rated plans. OPM 
will make payments on a letter of credit (LOC) basis. Premium payments 
received for the plan, less the amounts credited to the contingency and 
administrative reserves, will be made available for carrier drawdown not 
later than 30 days after receipt by the FEHB Fund. In addition, 
contingency reserve and interest distribution payments will be made 
available for carrier drawdown from the LOC account. Carriers will use 
the LOC account in accordance with guidelines issued by OPM.
    (2) Withdrawals from the LOC account will be made on a checks-
presented basis. Under a checks-presented bases, drawdown on the LOC is 
delayed until the checks issued for FEHB Program disbursements are 
presented to the carrier's bank for payment.
    (3) OPM may grant a waiver of the restriction of LOC disbursements 
to a checks-presented basis if the carrier requests the waiver in 
writing and demonstrates to OPM's satisfaction that the checks-presented 
basis of LOC disbursements will result in significantly increased 
liability under the contract, or that the checks-presented basis of LOC 
disbursements is otherwise clearly and significantly detrimental to the 
operation of the plan. Payments to carriers that have been granted a 
waiver may be made by an alternative payment methodology, subject to OPM 
approval.

[57 FR 14360, Apr. 20, 1992]



Sec. 1632.171  Clause--community-rated contracts.

    The clause at 1652.232-70 shall be inserted in all community-rated 
FEHBP contracts.

[57 FR 14360, Apr. 20, 1992]



Sec. 1632.172  Clause--experience-rated contracts.

    The clause at 1652.232-71 shall be inserted in all experience-rated 
FEHBP contracts.

[57 FR 14360, Apr. 20, 1992]



                     Subpart 1632.6--Contract Debts



Sec. 1632.607  Tax credit.

    FAR 32.607 has no practical application to FEHBP contracts. The 
statutory provisions at 5 U.S.C. 8906(c) and (d) authorize joint 
enrollee and Government contributions to the FEHBP Fund. Because the 
Fund is comprised of contributions by enrollees as well as the 
Government, carriers may not offset debts to the Fund by a tax credit 
which is solely a Government obligation.



Sec. 1632.617  Contract clause.

    The clause at (FAR) 48 CFR 52.232-17 will be modified in all FEHBP 
contracts to exclude the words ``net of any applicable tax credit under 
the Internal Revenue Code (26 U.S.C. 1481).''

[59 FR 14765, Mar. 30, 1994]



                    Subpart 1632.7--Contract Funding



Sec. 1632.770  Contingency reserve payments.

    (a) Payments from the contingency reserve shall be made in 
accordance with 5 CFR 890.503.
    (b) A carrier for an FEHB plan may apply to OPM at any time for a 
payment from the contingency reserve that is in addition to those 
amounts, if any, paid under 5 CFR 890.503(c)(1)

[[Page 123]]

through (c)(4), if the carrier can show good cause, such as, unexpected 
adverse claims experience. OPM will decide whether to allow the request 
in whole or in part and will advise the carrier of its decision. 
However, OPM shall not unreasonably withhold approval for amounts 
requested that exceed the plan's preferred minimum balance for the 
contingency reserve.



Sec. 1632.771  Non-commingling of FEHBP funds.

    (a) This section applies to contracts based on cost analysis.
    (b) Carrier or underwriter commingling of FEHBP funds with those 
from other sources makes it difficult to precisely determine FEHBP cash 
balances at any given time or to precisely determine investment income 
attributable to FEHBP invested assets.
    (c) FEHBP funds shall be maintained separately from other cash and 
investments of the carrier or underwriter. Cash and investment balances 
reported on FEHBP Annual Accounting Statements must agree with the 
carrier's books and records.
    (d) This requirement may be waived by the contracting officer in 
accordance with the clause at 1652.232-70 when adequate accounting and 
other controls are in effect. If the requirement is waived, the waiver 
will remain in effect until it is withdrawn by OPM. The waiver shall be 
withdrawn if OPM determines that the accounting controls are no longer 
adequate to properly account for FEHBP funds.



Sec. 1632.772  Contract clause.

    The clause at 1652.232-70 shall be included in all contracts that 
are based on cost analysis.



                  Subpart 1632.8--Assignment of Claims



Sec. 1632.806-70  Contract clause.

    The clause set forth in 1652.232-73 shall be inserted in all FEHBP 
contracts.

[55 FR 27415, July 2, 1990]



PART 1633--PROTESTS, DISPUTES, AND APPEALS--Table of Contents




    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.



Sec. 1633.070  Designation of the Board of Contract Appeals.

    The Armed Services Board of Contract Appeals (ASBCA) serves as the 
Board of Contract Appeals for the FEHBP. The rules of procedure followed 
in a dispute shall be those prescribed by the ASBCA.

[52 FR 16043, May 1, 1987]

[[Page 124]]



                    SUBCHAPTER G--CONTRACT MANAGEMENT





PART 1642--CONTRACT ADMINISTRATION--Table of Contents




         Subpart 1642.12--Novation and Change-of-Name Agreements

Sec.
1642.1201  Definitions.
1642.1204  Agreement to recognize a successor in interest (novation 
          agreement).
1642.1205  Agreement to recognize carrier's change of name.

  Subpart 1642.70--Management Agreement (in Lieu of Novation Agreement)

1642.7001  Management agreement.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 59 FR 14765, Mar. 30, 1994, unless otherwise noted.



         Subpart 1642.12--Novation and Change-of-Name Agreements



Sec. 1642.1201  Definitions.

    The definitions at (FAR) 48 CFR 42.1201 shall have the same meaning 
for this subpart.



Sec. 1642.1204  Agreement to recognize a successor in interest (novation agreement).

    (a) (FAR) 48 CFR 42.1204 shall be implemented as provided in this 
section. The contracting officer shall insert the following agreement in 
all FEHBP contracts for use when the contractor's assets or the entire 
portion of the assets pertinent to the performance of the contract, as 
determined by the Government, are transferred.

                           Novation Agreement

    The (insert corporate name) (Transferor), a corporation duly 
organized and existing under the laws of (insert State) with its 
principal office in (insert city, state); the (insert corporate name) 
(Transferee), (if appropriate add ``formerly known as the ______ 
Corporation'') a corporation duly organized and existing under the laws 
of (insert State) with its principal office in (insert city); and the 
UNITED STATES OF AMERICA (Government) enter into this Agreement 
effective (insert date transfer of assets became effective under 
applicable State law).
    (a) THE PARTIES AGREE TO THE FOLLOWING FACTS:
    (1) The Government, represented by various Contracting Officers of 
the Office of Personnel Management (OPM), has entered into Contract 
Number ______ with the Transferor. The term contracts, as used in this 
Agreement, means the contract cited in this paragraph and all other 
contracts and purchase orders, including any and all amendments and 
modifications made between the Government and the Transferor before the 
effective date of this Agreement (whether or not performance and payment 
have been completed and releases executed if the Government or the 
Transferor has any remaining rights, duties, or obligations under these 
contracts and purchase orders).
    (2) As of ____ 19__ (insert date transfer of assets became effective 
under applicable State law), the Transferor has transferred to the 
Transferee all the assets of the Transferor, or the entire portion of 
the Transferor's assets pertinent to performing the contract, as 
determined by OPM, by virtue of a(an) (insert term describing the legal 
transaction involved) between the Transferor and the Transferee.
    (3) The Transferee has acquired all the assets of the Transferor, or 
the entire portion of the Transferor's assets pertinent to performing 
the contract, as determined by OPM, by virtue of the transfer in 
paragraph (a)(1).
    (4) The Transferee has assumed all obligations and liabilities of 
the Transferor pertinent to performing the contract, as determined by 
OPM, by virtue of the transfer in paragraph (a)(1).
    (5) The Transferee is in a position to fully perform all obligations 
that may exist under the contract.
    (6) It is consistent with the Government's interest to recognize the 
Transferee as the successor party to the contract.
    (7) Evidence of the transfer in paragraph (a)(1) has been filed with 
the Government.
    (8) [If applicable:] A certificate dated ____, 19__, signed by the 
Secretary of State of (insert State), to the effect that the corporate 
name of (insert old corporate name) was changed to (insert new corporate 
name) on ____, 19__, has been filed with the Government.
    (b) IN CONSIDERATION OF THESE FACTS, THE PARTIES AGREE THAT BY THIS 
AGREEMENT--
    (1) The Transferor confirms the transfer to the Transferee, and 
waives any claims and rights against the Government or the Federal 
Employees Health Benefits Fund that it now has or may have in the future 
in connection with the contract.

[[Page 125]]

    (2) The Transferee agrees to be bound by and to perform the contract 
in accordance with the conditions contained in the contract. The 
Transferee also assumes all obligations and liabilities of, and all 
claims against, the Transferor pertinent to the contract, as determined 
by OPM, as if the Transferee were the original party to the contract.
    (3) The Transferee ratifies all previous actions taken by the 
Transferor with respect to the contract, with the same force and effect 
as if the action had been taken by the Transferee.
    (4) The Government recognizes the Transferee as the Transferor's 
successor in interest in and to the contract. The Transferee by this 
Agreement becomes entitled to all rights, titles, and interests of the 
Transferor in and to the contract as if the Transferee were the original 
party to the contract. Following the effective date of this Agreement, 
the terms Carrier and Contractor as used in the contract, shall refer to 
the Transferee.
    (5) Except as expressly provided in this Agreement, nothing in it 
shall be construed as a waiver of any rights of the Government against 
the Transferor.
    (6) All payments and reimbursements previously made by the 
Government to the Transferor, and all other previous actions taken by 
the Government under the contract, shall be considered to have 
discharged those parts of the Government's obligations under the 
contract. All payments and reimbursements made by the Government after 
the date of this Agreement in the name of or to the Transferor shall 
have the same force and effect as if made to the Transferee, and shall 
constitute a complete discharge of the Government's obligations under 
the contract, to the extent of the amounts paid or reimbursed.
    (7) The Transferor and the Transferee agree that the Government is 
not obligated to pay or reimburse either of them for, or otherwise give 
effect to, any costs, taxes, or other expenses, or any related 
increases, directly or indirectly arising out of or resulting from the 
transfer of this Agreement, other than those that the Government in the 
absence of this transfer or Agreement would have been obligated to pay 
or reimburse under the terms of the contract.
    (8) The Transferor guarantees payment of all liabilities and the 
performance of all obligations that the Transferee (i) assumes under 
this Agreement or (ii) may undertake in the future should this contract 
be modified under its terms and conditions. The Transferor waives notice 
of, and consents to, any such future modifications.
    (9) The contract shall remain in full force and effect, except as 
modified by this Agreement. Each party has executed this Agreement 
effective (insert the date transfer of assets became effective under 
applicable State law).

UNITED STATES OF AMERICA,
By __________ Date__________
Title __________
    (Enter Transferor's name)
By __________ Date__________
    Title __________
    (Corporate Seal)

    (Enter Transferee's name)
By __________
Title __________
    (Corporate Seal)

                               Certificate

    I, ______, certify that I am the Secretary of (insert name of 
Transferor); that ______, who signed this Agreement for this 
corporation, was then ______ of this corporation; and that this 
Agreement was duly signed for and on behalf of this corporation by 
authority of its governing body and within the scope of its corporate 
powers.
    Witness my hand and the seal of this corporation this ______ day of 
______, 19____.

By __________
    (Corporate Seal)

                               Certificate

    I, ______, certify that I am the Secretary of (insert name of 
Transferee); that ______, who signed this Agreement for this 
corporation, was then ______ of this corporation; and that this 
Agreement was duly signed for and on behalf of this corporation by 
authority of its governing body and within the scope of its corporate 
powers.
    Witness my hand and the seal of this corporation this ______ day of 
______ 19__,

By______________________________________________________________________
    (Corporate Seal)

    (End of Agreement)

    (b) Failure to submit the properly completed and signed Novation 
Agreement in a timely manner shall be cause for termination of the 
contract by OPM in accordance with FEHBAR 1652.249-70.
    (c) The Contracting Officer shall terminate the contract if it is 
determined not to be in the Government's interest to recognize a 
successor in interest to the contract. The effective date will be 
decided by the Contracting Officer after considering the best interests 
of FEHBP enrollees.



Sec. 1642.1205  Agreement to recognize carrier's change of name.

    (a) (FAR) 42.1205 shall be implemented as provided in this section. 
The

[[Page 126]]

Contracting Officer shall insert the following Agreement in all FEHBP 
contracts for use when the carrier changes its name and the Government's 
and contractor's rights and obligations remain unaffected.

                        Change-of-Name Agreement

    The (insert new Carrier name), a corporation duly organized and 
existing under the laws of (insert State), and the UNITED STATES OF 
AMERICA (Government), enter into this Agreement effective (insert date 
when the change of name became effective under applicable State law).
    (a) THE PARTIES AGREE TO THE FOLLOWING FACTS:
    (1) The Government, represented by various Contracting Officers of 
the Office of Personnel Management (OPM), has entered into Contract 
Number ______ with the (insert old Carrier name). The term contracts as 
used in this Agreement means the contract cited in this paragraph and 
all other contracts and purchase orders and all modifications thereto 
made by the Government and the Contractor before the effective date of 
this Agreement (whether or not performance and payment have been 
completed and releases executed if the OPM or the Carrier has any 
remaining rights, duties, or obligations under these contracts and 
purchase orders).
    (2) The (insert old Carrier name), by an amendment to its 
certificate of incorporation, dated ____, 19__, has changed its 
corporate name to (insert new Carrier name).
    (3) This amendment accomplishes a change of corporate name only and 
all rights and obligations of the Government and the Carrier under the 
contract are unaffected by this change.
    (4) Documentary evidence of this change of corporate name has been 
filed with the Government.
    (b) IN CONSIDERATION OF THESE FACTS, THE PARTIES AGREE THAT:
    (1) The contract is amended by substituting the name `` (insert new 
Carrier name)'' for the name ``(insert old Carrier name)'' wherever it 
appears in the contract; and
    (2) Each party has executed this Agreement effective the day and 
year stated in paragraph (a)(2).

UNITED STATES OF AMERICA,
__________ Date ________________________________________________________
Title___________________________________________________________________
    (Enter new Carrier name)
By __________ Date __________
Title___________________________________________________________________
    (Corporate Seal)

                               Certificate

    I, ______, certify that I am the Secretary of (insert new Carrier 
name); that ______, who signed this Agreement for this corporation, was 
then (insert position held) of this corporation; and that this Agreement 
was duly signed for and on behalf of this corporation by authority of 
its governing body and within the scope of its corporate powers.
    Witness my hand and the seal of this corporation this ____ day of 
____ 19__.

By______________________________________________________________________
    (Corporate Seal)

                           (End of Agreement)

    (b) Failure to submit the properly completed and signed Change-of-
Name Agreement in a timely manner may be cause for termination of the 
contract by OPM in accordance with FEHBAR 1652.249-70.



  Subpart 1642.70--Management Agreement (in Lieu of Novation Agreement)



Sec. 1642.7001  Management agreement.

    When it is in the best interest of FEHBP enrollees to continue a 
contract for an interim period after the carrier discontinues its 
operations and has entered into a Purchase and Sale Agreement (or other 
descriptive term), but before a successor in interest has been 
recognized by OPM, the carrier may submit for OPM approval a Management 
Agreement that enables it to continue a contract through an agreement 
with a third party to administer the day-to-day performance of the 
contract. Examples of situations in which a Management Agreement may be 
accepted by OPM are:
    (a) When a transfer of assets does not meet the criteria for a 
novation;
    (b) While a request for a novation is pending;
    (c) While awaiting a decision on a request for a novation;
    (d) As an interim measure, when the timing of a transfer of assets 
or the timing of a carrier's withdrawal make administration of the 
contract inconvenient;
    (e) When it is not in the interests of the Government to either 
recognize a successor in interest or to immediately terminate the 
existing FEHBP contract.

[[Page 127]]



PART 1644--SUBCONTRACTING POLICIES AND PROCEDURES--Table of Contents




                         Subpart 1644.1--General

Sec.
1644.170  Policy for FEHBP subcontracting consent.

                 Subpart 1644.2--Consent to Subcontracts

1644.270  FEHBP contract clause.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16043, May 1, 1987, unless otherwise noted.



                         Subpart 1644.1--General



Sec. 1644.170  Policy for FEHBP subcontracting consent.

    For all FEHBP contracts, advance approval shall be required on 
subcontracts or modifications to subcontracts when the amount charged 
the FEHBP contract exceeds $100,000.



                 Subpart 1644.2--Consent to Subcontracts



Sec. 1644.270  FEHBP contract clause.

    The clause set forth at 1652.244-70 shall be inserted in all FEHBP 
contracts.



PART 1646--QUALITY ASSURANCE--Table of Contents




              Subpart 1646.2--Contract Quality Requirements

Sec.
1646.270  General.

                    Subpart 1646.3--Contract Clauses

1646.301  Contractor inspection requirements.
    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.



              Subpart 1646.2--Contract Quality Requirements



Sec. 1646.270  General.

    (a) This section prescribes general policies and procedures to 
ensure that services acquired under the FEHBP contract conform to the 
contract's quality requirements.
    (b) OPM shall periodically evaluate the contractor's system of 
internal controls under the quality assurance program required by the 
contract and will acknowledge in writing whether or not the system is 
consistent with the requirements set forth in the contract. After the 
initial review, subsequent reviews may be limited to changes in the 
contractor's internal control guidelines. However, a limited review does 
not diminish the contractor's obligation to apply the full internal 
control system.
    (c) OPM will issue specific performance standards for the FEHBP 
contracts and will inform carriers of the applicable performance 
standards prior to negotiations for the contract year. OPM will 
benchmark its standards against standards generally accepted in the 
insurance industry. The contracting officer may authorize nationally 
recognized standards to be used to fulfill this requirement.
    (d) FEHBP carriers shall comply with the performance standards 
issued under paragraph (c) of this section.

[59 FR 14767, Mar. 30, 1994]



                    Subpart 1646.3--Contract Clauses



Sec. 1646.301  Contractor inspection requirements.

    The clause set forth at 1652.246-70 shall be inserted in all FEHBP 
contracts.

[52 FR 16044, May 1, 1987]



PART 1649--TERMINATION OF CONTRACTS--Table of Contents




Sec.
1649.002-70  Applicability of the FAR to FEHB acquisitions.

                   Subpart 1649.1--General Principles

1649.101-70  FEHBP renewal and withdrawal of approval clause.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16044, May 1, 1987, unless otherwise noted.



Sec. 1649.002-70  Applicability of the FAR to FEHB acquisitions.

    (a) Termination of FEHB contracts because of withdrawal of approval 
is

[[Page 128]]

controlled by 5 U.S.C. 8902(e) and 5 CFR 890.204.
    (b) Termination of FEHB contracts because of nonrenewal of the 
contract at the end of the contract term is controlled by 5 U.S.C. 
8902(a) and 5 CFR 890.205.
    (c) The procedures for settlement of contracts after they are 
terminated shall be those contained in FAR part 49.

[57 FR 19387, May 6, 1992]



                   Subpart 1649.1--General Principles



Sec. 1649.101-70  FEHBP renewal and withdrawal of approval clause.

    The clause in 1652.249-70 shall be inserted in all FEHBP contracts.

[[Page 129]]



                     SUBCHAPTER H--CLAUSES AND FORMS





PART 1652--CONTRACT CLAUSES--Table of Contents




                 Subpart 1652.2--Texts of FEHBP Clauses

1652.203-70  Misleading, deceptive, or unfair advertising.
1652.204-70  Contractor records retention.
1652.204-71  Coordination of Benefits.
1652.204-72  Filing health benefit claims/court review of disputed 
          claims.
1652.215-70  Rate Reduction for Defective Pricing or Defective Cost or 
          Pricing Data.
1652.215-71  Investment Income.
1652.216-70  Accounting and price adjustment.
1652.216-71  Accounting and Allowable Cost.
1652.222-70  Notice of significant events.
1652.224-70  Confidentiality of Records.
1652.232-70  Payments--community-rated contracts.
1652.232-71  Payments--experience-rated contracts.
1652.232-72  Non-commingling of FEHBP funds.
1652.232-73  Approval for the Assignment of Claims.
1652.244-70  Subcontracts.
1652.246-70  FEHB Inspection.
1652.249-70  Renewal and withdrawal of approval.

                   Subpart 1652.3--FEHBP Clause Matrix

1652.370  Use of the matrix.

    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 52 FR 16044, May 1, 1987, unless otherwise noted.



Sec. 1652.000  Applicable clauses.

    The clauses of subpart 52.2 specified below shall be applicable to 
FEHBP acquisitions.

                        Section and clause title

52.202-1  Definitions (Apr. 1984).
52.203-1  Officials not to Benefit (Apr. 1984).
52.203-3  Gratuities (Apr. 1984).
52.203-5  Covenant Against Contingent Fees (Apr. 1984).
52.203-7  Anti-Kickback Procedures.
52.203-9  Requirement for Certificate of Procurement Integrity--
          Modification.
52.203-12  Limitation on Payments to Influence Certain Federal 
          Transactions.
52.209-6  Protecting the Government's Interest When Subcontracting With 
          Contractors Debarred, Suspended, or Proposed for Debarment.
52.215-1  Examination of Records by Comptroller General (Apr. 1984).
52.215-2  Audit--Negotiation (Jan. 1987).
52.215-22  Price Reduction for Defective Cost or Pricing Data (Apr. 
          1984).
52.215-23  Price Reduction for Defective Cost or Pricing Data--
          Modifications (Apr. 1985).
52.215-24  Subcontractor Cost or Pricing Data (Apr. 1985).
52.215-25  Subcontractor Cost or Pricing Data--Modifications (Apr. 
          1985).
52.215-30  Facilities Capital Cost of Money (Apr. 1984).
52.215-31  Waiver of Facilities Capital Cost of Money (Apr. 1984).
52.219-8  Utilization of Small Business Concerns and Small Disadvantaged 
          Business Concerns (June 1985).
52.219-13  Utilization of Women-Owned Small Businesses (Aug. 1986).
52.220-3  Utilization of Labor Surplus Area Concerns (Apr. 1984).
52.222-3  Convict Labor (Apr. 1984).
52.222-4  Contract Work Hours and Safety Standards Act--Overtime 
          Compensation--General (Mar. 1986).
52.222-26  Equal Opportunity (Apr. 1984).
52.222-28  Equal Opportunity Preaward Clearance of Subcontracts (Apr. 
          1984).
52.222-29  Notification of Visa Denial (Apr. 1984).
52.222-35  Affirmative Action for Special Disabled and Vietnam Era 
          Veterans (Apr. 1984).
52.222-36  Affirmative Action for Handicapped Workers (Apr. 1984).
52.223-2  Clean Air and Water (Apr. 1984).
52.223-6  Drug-Free Workplace.
52.229-3  Federal, State, and Local Taxes (Apr. 1984).
52.229-4  Federal, State, and Local Taxes (Noncompetitive Contract) 
          (Apr. 1984).
52.229-5  Taxes--Contracts Performed in U.S. Possessions or Puerto Rico 
          (Apr. 1984).
52.229-6  Taxes--Foreign Fixed-Price Contracts (Apr. 1984).
52.230-2  Cost Accounting Standards.
52.230-3  Disclosure and Consistency of Cost Accounting Practices.
52.230-5  Administration of Cost Accounting Standards.
52.230-6  Consistency in Cost Accounting Practices (Apr. 1984).
52.232-1; 1632.111  Payments (Jan. 1987).
52.232-8  Discounts for Prompt Payment (July 1985).
52.232-11  Extras (Apr. 1984).
52.232-17; 1632.617  Interest (Jan. 1987).

[[Page 130]]

52.232-23  Assignment of Claims (Jan. 1986).
52.232-24  Prohibition of Assignment of Claims (Jan. 1986).
52.233-1  Disputes (Apr. 1984).
52.242-1  Notice of Intent to Disallow Costs (Apr. 1984).
52.242-13  Bankruptcy.
52.243-1  Changes--Fixed Price--Alternate I (Apr. 1984).
52.244-5  Competition in Subcontracting (Apr. 1984).
52.245-2  Government Property (Fixed-Price Contracts) (Apr. 1984).
52.246-25  Limitation of Liability--Services (Apr. 1984).
52.247-63  Preference for U.S.-Flag Air Carriers (Apr. 1984).
52.249-2  Termination for Convenience of the Government (Fixed-Price).
52.249-8  Default (Fixed-Price Supply and Service).
52.251-1  Government Supply Sources (Apr. 1984).
52.252-2  Clauses Incorporated by Reference (Apr. 1984).
52.252-4  Alterations in Contract (Apr. 1984).
52.252-6  Authorized Deviations in Clauses (Apr. 1984).

[52 FR 16044, May 1, 1987, as amended at 59 FR 14767, Mar. 30, 1994]



                 Subpart 1652.2--Texts of FEHBP Clauses



Sec. 1652.203-70  Misleading, deceptive, or unfair advertising.

    As prescribed in 1603.703, the following clause shall be inserted in 
all FEHBP contracts:

         Misleading, Deceptive, or Unfair Advertising (Jan 1991)

    (a) The Carrier agrees that any advertising material, including that 
labeled promotional material, marketing material, or supplemental 
literature, shall be truthful and not misleading.
    (b) Criteria to assess compliance with paragraph (a) of this clause 
are available in the FEHB Supplemental Literature Guidelines which are 
developed by OPM and should be used, along with the additional 
guidelines set forth in FEHBAR 1603.702, as the primary guide in 
preparing material; further guidance is provided in the NAIC ``Rules 
Governing Advertising of Accident and Sickness Insurance With 
Interpretive Guidelines.'' Guidelines are periodically updated and 
provided to the Carrier by OPM.
    (c) Failure to conform to paragraph (a) of this clause may result in 
a reduction in the service charge, if appropriate, and corrective action 
to protect the interest of Federal Members. Corrective action will be 
appropriate to the circumstances and may include, but is not limited to 
the following actions by OPM:
    (1) Directing the Carrier to cease and desist distribution, 
publication, or broadcast of the material;
    (2) Directing the Carrier to issue corrections at the Carrier's 
expense and in the same manner and media as the original material was 
made; and
    (3) Directing the Carrier to provide, at the Carrier's expense, the 
correction in writing by certified mail to all enrollees of the Plan(s) 
that had been the subject of the original material.
    (d) Egregious or repeated offenses may result in the following 
action by OPM:
    (1) Suspending new enrollments in the Carrier's Plan(s);
    (2) Providing Enrollees an opportunity to transfer to another plan; 
and
    (3) Terminating the contract in accordance with Section 1.15, 
Renewal and Withdrawal of Approval.
    (e) Prior to taking action as described in paragraphs (c) and (d) of 
this clause, the OPM will notify the Carrier and offer an opportunity to 
respond.
    (f) The Carrier shall incorporate this clause in subcontracts with 
its underwriter, if any, and other subcontractors directly involved in 
the preparation or distribution of such advertising material and shall 
substitute ``Contractor'' or other appropriate reference for the term 
``Carrier.''

                             (End of Clause)

[55 FR 27415, July 2, 1990]



Sec. 1652.204-70  Contractor records retention.

    As prescribed in 1604.705, the following clause shall be inserted in 
all FEHBP contracts.

                 Contractor Records Retention (Jan 1991)

    Notwithstanding the provisions of section 5.7 (FAR 52.215-2(d)) 
``Audit-Negotiation'' and the SF 1412, the Carrier will retain and make 
available all records applicable to a contract term that support the 
annual statement of operations and the rate submission for that contract 
term for a period of 5 years after the end of the contract term to which 
the records relate, except that individual enrollee and/or patient claim 
records shall be maintained for 3 years after the end of the contract 
term to which the claim records relate.

                             (End of Clause)

[52 FR 16044, May 1, 1987, as amended at 55 FR 27415, July 2, 1990]

[[Page 131]]



Sec. 1652.204-71  Coordination of Benefits.

    As prescribed in 1604.7001, the following clause shall be inserted 
in all FEHBP contracts:

                   Coordination of Benefits (Jan 1991)

    (a) The Carrier shall coordinate the payment of benefits under this 
contract with the payment of benefits under Medicare, other group health 
benefits coverages, and the payment of medical and hospital costs under 
no-fault or other automobile insurance that pays benefits without regard 
to fault.
    (b) The Carrier shall not pay benefits under this contract until it 
has determined whether it is the primary carrier or unless permitted to 
do so by the Contracting Officer.
    (c) In coordinating benefits between plans, the Carrier shall follow 
the order of precedence established by the NAIC Model Guidelines for 
Coordination of Benefits (COB) as specified by OPM.
    (d) Where (1) the Carrier makes payments under this contract which 
are subject to COB provisions; (2) the payments are erroneous, not in 
accordance with the terms of the contract, or in excess of the 
limitations applicable under this contract; and (3) the Carrier is 
unable to recover such COB overpayments from the Member or the providers 
of services or supplies, the Contracting Officer may allow such amounts 
to be charged to the contract; the Carrier must be prepared to 
demonstrate that it has made a diligent effort to recover such COB 
overpayments.
    (e) COB savings shall be reported by experience rated carriers each 
year along with the Carrier's annual accounting statement in a form 
specified by OPM.
    (f) Changes in the order of precedence established by the NAIC Model 
Guidelines implemented after January 1 of any given year shall be 
required no earlier than the beginning of the following contract term.

                             (End of Clause)

[55 FR 27415, July 2, 1990]



Sec. Sec. 1652.204-72  Filing health benefit claims/court review of disputed claims.

    As prescribed in 1604.7101 of this chapter, the following clause 
must be inserted in all FEHB Program contracts.

      Filing Health Benefit Claims/Court Review of Disputed Claims

    (a) General. (1) The Carrier resolves claims filed under the Plan. 
All health benefit claims must be submitted initially to the Carrier. If 
the Carrier denies a claim (or a portion of a claim), the covered 
individual may ask the Carrier to reconsider its denial. If the Carrier 
affirms its denial or fails to respond as required by paragraph (b) of 
this clause, the covered individual may ask OPM to review the claim. A 
covered individual must exhaust both the Carrier and OPM review 
processes specified in this clause before seeking judicial review of the 
denied claim.
    (2) This clause applies to covered individuals and to other 
individuals or entities who are acting on the behalf of a covered 
individual and who have the covered individual's specific written 
consent to pursue payment of the disputed claim.
    (b) Time limits for reconsidering a claim. (1) The covered 
individual has 6 months from the date of the notice to the covered 
individual that a claim (or a portion of a claim) was denied by the 
Carrier in which to submit a written request for reconsideration to the 
Carrier. The time limit for requesting reconsideration may be extended 
when the covered individual shows that he or she was prevented by 
circumstances beyond his or her control from making the request within 
the time limit.
    (2) The Carrier has 30 days after the date of receipt of a timely-
filed request for reconsideration to:
    (i) Affirm the denial in writing to the covered individual;
    (ii) Pay the bill or provide the service; or
    (iii) Request from the covered individual or provider additional 
information needed to make a decision on the claim. The Carrier must 
simultaneously notify the covered individual of the information 
requested if it requests additional information from a provider. The 
Carrier has 30 days after the date the information is received to affirm 
the denial in writing to the covered individual or pay the bill or 
provide the service. The Carrier must make its decision based on the 
evidence it has if the covered individual or provider does not respond 
within 60 days after the date of the Carrier's notice requesting 
additional information. The Carrier must then send written notice to the 
covered individual of its decision on the claim. The covered individual 
may request OPM review as provided in paragraph (b)(3) of this clause if 
the Carrier fails to act within the time limit set forth in this 
paragraph.
    (3) The covered individual may write to OPM and request that OPM 
review the Carrier's decision if the Carrier either affirms its denial 
of a claim or fails to respond to a covered individual's written request 
for reconsideration within the time limit set forth in paragraph (b)(2) 
of this clause. The covered individual must submit the request for OPM 
review within the time limit specified in paragraph (e)(1) of this 
clause.
    (4) The Carrier may extend the time limit for a covered individual's 
submission of additional information to the Carrier when the covered 
individual shows he or she was not notified of the time limit or was 
prevented

[[Page 132]]

by circumstances beyond his or her control from submitting the 
additional information.
    (c) Information required to process requests for reconsideration. 
(1) The covered individual must put the request to the Carrier to 
reconsider a claim in writing and give the reasons, in terms of 
applicable brochure provisions, that the denied claim should have been 
approved.
    (2) If the Carrier needs additional information from the covered 
individual to make a decision, it must:
    (i) Specifically identify the information needed;
    (ii) State the reason the information is required to make a decision 
on the claim;
    (iii) Specify the time limit (60 days after the date of the 
Carrier's request) for submitting the information; and
    (iv) State the consequences of failure to respond within the time 
limit specified, as set out in paragraph (b)(2) of this section.
    (d) Carrier determinations. The Carrier must provide written notice 
to the covered individual of its determination. If the Carrier affirms 
the initial denial, the notice must inform the covered individual of:
    (1) The specific and detailed reasons for the denial;
    (2) The covered individual's right to request a review by OPM; and
    (3) The requirement that requests for OPM review must be received 
within 90 days after the date of the Carrier's denial notice and include 
a copy of the denial notice as well as documents to support the covered 
individual's position.
    (e) OPM review. (1) If the covered individual seeks further review 
of the denied claim, the covered individual must make a request to OPM 
to review the Carrier's decision. Such a request to OPM must be made:
    (i) Within 90 days after the date of the Carrier's notice to the 
covered individual that the denial was affirmed; or
    (ii) If the Carrier fails to respond to the covered individual as 
provided in paragraph (b)(2) of this clause, within 120 days after the 
date of the covered individual's timely request for reconsideration by 
the Carrier; or
    (iii) Within 120 days after the date the Carrier requests additional 
information from the covered individual, or the date the covered 
individual is notified that the Carrier is requesting additional 
information from a provider. OPM may extend the time limit for a covered 
individual's request for OPM review when the covered individual shows he 
or she was not notified of the time limit or was prevented by 
circumstances beyond his or her control from submitting the request for 
OPM review within the time limit.
    (2) In reviewing a claim denied by the Carrier, OPM may:
    (i) Request that the covered individual submit additional 
information;
    (ii) Obtain an advisory opinion from an independent physician;
    (iii) Obtain any other information as may in its judgment be 
required to make a determination; or
    (iv) Make its decision based solely on the information the covered 
individual provided with his or her request for review.
    (3) When OPM requests information from the Carrier, the Carrier must 
release the information within 30 days after the date of OPM's written 
request unless a different time limit is specified by OPM in its 
request.
    (4) Within 90 days after receipt of the request for review, OPM will 
either:
    (i) Give a written notice of its decision to the covered individual 
and the Carrier; or
    (ii) Notify the individual of the status of the review. If OPM does 
not receive requested evidence within 15 days after expiration of the 
applicable time limit in paragraph (e)(3) of this clause, OPM may make 
its decision based solely on information available to it at that time 
and give a written notice of its decision to the covered individual and 
to the Carrier.
    (f) OPM, upon its own motion, may reopen its review if it receives 
evidence that was unavailable at the time of its original decision.
    (g) Court review. (1) A suit to compel enrollment under Sec. 890.102 
of Title 5, Code of Federal Regulations, must be brought against the 
employing office that made the enrollment decision.
    (2) A suit to review the legality of OPM's regulations under this 
part must be brought against the Office of Personnel Management.
    (3) Federal Employees Health Benefits (FEHB) carriers resolve FEHB 
claims under authority of Federal statute (chapter 89, title 5, United 
States Code). A covered individual may seek judicial review of OPM's 
final action on the denial of a health benefits claim. A legal action to 
review final action by OPM involving such denial of health benefits must 
be brought against OPM and not against the Carrier or the Carrier's 
subcontractors. The recovery in such a suit shall be limited to a court 
order directing OPM to require the Carrier to pay the amount of benefits 
in dispute.
    (4) An action under paragraph (3) of this clause to recover on a 
claim for health benefits:
    (i) May not be brought prior to exhaustion of the administrative 
remedies provided in paragraphs (a) through (f) of this clause;
    (ii) May not be brought later than December 31 of the 3rd year after 
the year in which the care or service was provided; and
    (iii) Will be limited to the record that was before OPM when it 
rendered its decision affirming the Carrier's denial of benefits.

                             (End of Clause)

[61 FR 15198, Apr. 5, 1996]

[[Page 133]]



Sec. 1652.215-70  Rate Reduction for Defective Pricing or Defective Cost or Pricing Data.

    As prescribed in 1615.804-72, the following clause shall be inserted 
in contracts based on established market price:

 Rate Reduction for Defective Pricing or Defective Cost or Pricing Data 
                               (Oct 1994)

    If any rate established in connection with this contract was 
increased because (1) the Carrier furnished cost or pricing data that 
were not complete, accurate, or current as certified in the Certificate 
of Accurate Pricing for Community Rated Plans (FEHBAR 1615.804-70); (2) 
the Carrier furnished pricing data that were not accurate as represented 
on the Claim for Exemption from Submission of Certified Cost or Pricing 
Data (SF 1412); (3) the Carrier developed FEHBP rates with a rating 
methodology and structure inconsistent with that used to develop rates 
for similarly sized subscriber groups (see FEHBAR 1602.170-11) as 
certified in the Certificate of Accurate Pricing for Community Rated 
Plans or represented in the Supplemental Representation for SF 1412; or 
(4) the Carrier furnished data or information of any description that 
were not complete, accurate, and current--then, the rate shall be 
reduced in the amount by which the price was increased because of the 
defective data or information. When the Contracting Office determines 
that the Carrier did not charge a market price and the Government is 
entitled to a refund, the refund shall bear simple interest from the 
date the overcharge was paid by the Government to the Carrier until the 
date the overcharge is liquidated. In calculating the amount of interest 
due, the quarterly rate determinations by the Secretary of the Treasury 
under the authority of 26 U.S.C. 6621(a)(2) applicable to the periods 
the overcharge was retained by the Carrier shall be used.

                             (End of Clause)

[55 FR 27415, July 2, 1990, as amended at 59 FR 62346, Dec. 5, 1994]



Sec. 1652.215-71  Investment Income.

    As prescribed in 1615.805-71, the following clause shall be inserted 
in all FEHBP contracts based on cost analysis:

                      Investment Income (Jan 1991)

    (a) The Carrier shall invest and reinvest all FEHB funds on hand 
that are in excess of the funds needed to promptly discharge the 
obligations incurred under this contract. The Carrier shall seek to 
maximize investment income with prudent consideration to the safety and 
liquidity of investments.
    (b) All investment income earned on FEHB funds shall be credited to 
the Special Reserve on behalf of the FEHBP.
    (c) When the Contracting Officer concludes that the Carrier failed 
to comply with paragraph (a) or (b) of this clause, the Carrier shall 
credit the Special Reserve with investment income that would have been 
earned, at the rate(s) specified in paragraph (f) of this clause, had it 
not been for the Carrier's noncompliance. ``Failed to comply with 
paragraph (a) or (b)'' means: (1) Making any charges against the 
contract which are not allowable, allocable, or reasonable; or (2) 
failing to credit any income due the contract and/or failing to place 
excess funds, including subscription income and payments from OPM not 
needed to discharge promptly the obligations incurred under the 
contract, refunds, credits, payments, deposits, investment income 
earned, uncashed checks, or other amounts owed the Special Reserve, in 
income producing investments and accounts.
    (d) Investment income lost as a result of unallowable, unallocable, 
or unreasonable charges against the contract shall be paid from the 1st 
day of the contract term following the contract term in which the 
unallowable charge was made and shall end on the earlier of: (1) The 
date the amounts are returned to the Special Reserve (or the Office of 
Personnel Management); (2) the date specified by the Contracting 
Officer; or, (3) the date of the Contracting Officer's Final Decision.
    (e) Investment income lost as a result of failure to credit income 
due the contract or failure to place excess funds in income producing 
investments and accounts shall be paid from the date the funds should 
have been invested or appropriate income was not credited and shall end 
on the earlier of: (1) The date the amounts are returned to the Special 
Reserve (or the Office of Personnel Management); (2) the date specified 
by the Contracting Officer; or, (3) the date of the Contracting 
Officer's Final Decision.
    (f) The Carrier shall credit the Special Reserve for income due in 
accordance with this clause. All amounts payable shall bear lost 
investment income compounded semiannually at the rate established by the 
Secretary of the Treasury as provided in section 12 of the Contract 
Disputes Act of 1978 (Public Law 95-563), which is applicable to the 
period in which the amount becomes due, as provided in paragraphs (d) 
and (e) of this clause. Thereafter, the rate shall be the rate 
applicable for each 6-month period as fixed by the Secretary until the 
amount is paid.
    (g) The Carrier shall incorporate this clause into agreements with 
underwriters of the Carrier's FEHB plan and shall substitute 
``underwriter'' or other appropriate reference for the term ``Carrier.''

[[Page 134]]

                             (End of Clause)

[55 FR 27416, July 2, 1990]



Sec. 1652.216-70  Accounting and price adjustment.

    As prescribed in 1616.270, the following clause shall be inserted in 
all FEHBP contracts based on established market price:

               Accounting and Price Adjustment (Jan 1990)

    (a) Annual Accounting Statement. The Carrier, not later than 90 days 
after the end of each contract period, shall furnish to OPM for that 
contract period an accounting of its operations under the contract. The 
accounting shall be in the form prescribed by OPM.
    (b) Adjustment. (1) This contract is community rated as defined in 
FEHBAR Sec. 1602.170-2.
    (2) The subscription rates agreed to in this contract are derived 
from the market price, which is a per member per month (PMPM) capitation 
or its equivalent that applies to a combination of subscriber groups. 
The market price established in this contract may be an estimate of the 
Carrier's actual market price that will be in effect during the contract 
period.
    (3) If, for the contract period, the Carrier establishes an actual 
market price higher than the market price established for this contract 
and the higher market price is actually paid by the similarly sized 
subscriber groups (see FEHBAR 1602.170-11), the Carrier may include an 
adjustment to the next contract period's FEHBP rates to recover the 
difference between the estimated market price and the actual market 
price.
    (4) If for the contract period, the Carrier establishes an actual 
market price lower than the market price established for this contract 
and the lower market price is actually paid by similarly sized 
subscriber groups, the Carrier shall reimburse the Fund, for example, by 
reducing the next contract period's FEHB rates to reflect the difference 
between the estimated market price and the actual market price.
    (5) No upward adjustment in the rate established for this contract 
will be allowed or considered by the Government or will be made by the 
Carrier in this or in any other contract period on the basis of actual 
costs incurred, actual benefits provided, or actual size or composition 
of the FEHBP group during this contract period.
    (6) In the event this contract is not renewed, neither the 
Government nor the Carrier shall be entitled to any adjustment or claim 
for the difference between the estimated and the actual market price, 
PMPM capitation or revenue requirement.

                             (End of Clause)

[52 FR 16044, May 1, 1987, as amended at 55 FR 27416, July 2, 1990]



Sec. 1652.216-71  Accounting and Allowable Cost.

    As prescribed in 1616.271, the following clause shall be inserted in 
all FEHBP contracts based on cost analysis:

                Accounting and Allowable Cost (Jan 1991)

    (a) Annual Accounting Statement. (1) The Carrier, not later than the 
date specified by the contract, shall furnish to OPM for that contract 
period an accounting of its operations under the contract. The 
accounting shall be in the form prescribed by OPM and shall include, 
among other things, a Balance Sheet and a Summary Statement of FEHBP 
Financial Operations. The Summary Statement of FEHBP Financial 
Operations shall include the following items for each option provided by 
the contract:
    (i) Subscription income received and accrued (including amounts 
received from the Contingency Reserve);
    (ii) Health benefits charges paid and accrued;
    (iii) Administrative expenses and other charges paid and accrued;
    (iv) Income on investments;
    (v) Other adjustments;
    (vi) Sum of items (i) minus (ii) minus (iii) plus (iv) plus or minus 
(v).
    (2) The Carrier shall have its most recent financial statement and 
that of its underwriter, if any, audited by an accounting firm that 
ascribes to the standards of the American Institute of Certified Public 
Accountants. The report shall be submitted to OPM not later than 180 
days after the end of the contract period.
    (3) Based on the results of either the independent audit or a 
Government audit, the Carrier's annual accounting statements may be (i) 
adjusted by amounts found not to constitute allowable costs; or (ii) 
adjusted for prior overpayments or underpayments.
    (b) Definition of costs. (1) The allowable costs chargeable to the 
contract for a contract period shall be the actual, necessary and 
reasonable amounts incurred with proper justification and accounting 
support, determined in accordance with the terms of this contract, 
subpart 31.2 of the Federal Acquisition Regulation (FAR) and subpart 
1631.2 of the Federal Employees Health Benefits Acquisition Regulation 
(FEHBAR) applicable on the first day of the contract period.
    (2) In the absence of specific contract terms to the contrary, 
contract costs shall be classified in accordance with the following 
criteria:

[[Page 135]]

    (i) Benefits. Benefit costs consist of payments made and liabilities 
incurred for covered health care services on behalf of FEHBP 
subscribers, less any refunds, rebates, allowances or other credits 
received.
    (ii) Administrative expenses. Administrative expenses consist of all 
allocable, allowable and reasonable expenses incurred in the 
adjudication of subscriber benefit claims or incurred in the Carrier's 
overall operation of the business. Unless otherwise stated in the 
contract, administrative expenses include, in part: all taxes (excluding 
premium taxes, as provided in section 1631.205-41), insurance and 
reinsurance premiums, medical and dental consultants used in the 
adjudication process, concurrent or managed care review when not billed 
by a health care provider and other forms of utilization review, the 
cost of maintaining eligibility files, legal expenses incurred in the 
litigation of benefit payments and bank charges for letters of credit. 
Administrative expenses exclude the cost of carrier personnel, 
equipment, and facilities directly used in the delivery of health care 
services, which are benefit costs, and the expense of managing the FEHBP 
investment program which is a reduction of investment income earned.
    (iii) Investment income. The Carrier is required to invest and 
reinvest all funds on hand, including any in the Special Reserve or any 
attributable to the reserve for incurred but unpaid claims, which are in 
excess of the funds needed to discharge promptly the obligations 
incurred under the contract. Investment income represents the net amount 
earned by the Carrier after deducting investment expenses as a result of 
investing the FEHBP funds. The direct or allocable indirect expenses 
incurred in managing the investment program, such as consultant or 
management fees are chargeable against the investment income earned.
    (iv) Other charges--(A) Mandatory statutory reserves. Charges for 
mandatory statutory reserves are not allowable unless specifically 
provided for in the contract. When the term ``mandatory statutory 
reserve'' is specifically identified as an allowable contract charge 
without further definition or explanation, it means a requirement 
imposed by State law upon the Carrier to set aside a specific amount or 
rate of funds into a restricted reserve that is accounted for separately 
from all other reserves and surpluses of the Carrier and which may be 
used only with the specific approval of the State official designated by 
law to make such approvals. The amount chargeable to the contract may 
not exceed an allocable portion of the amount actually set aside. If the 
statutory reserve is no longer required for the purpose for which it was 
created, and these funds become available for the general use of the 
Carrier, a pro rata share based upon FEHBP's contribution to the total 
Carrier's set aside shall be returned to the FEHBP in accordance with 
FAR 31.201-5.
    (B) Premium taxes. When the term premium taxes is used in this 
contract without further definition or explanation, it means a tax, fee, 
or other monetary payment directly or indirectly imposed on FEHB 
premiums by any State, the District of Columbia, or the Commonwealth of 
Puerto Rico, or by any political subdivision or other governmental 
authority of those entities, with the sole exception of a tax on net 
income or profit, if that tax, fee, or payment is applicable to a broad 
range of business activity.
    (c) Certification of Accounting Statement Accuracy. (1) The Carrier 
shall certify the annual accounting statement in the form set forth in 
paragraph (c)(3) of this clause. The certificate shall be signed by the 
chief executive officer and the chief financial officer of the Carrier.
    (2) The Carrier shall require an authorized agent of its 
underwriter, if any, also to certify the annual accounting statement.
    (3) The certificate required shall be in the following form:

             Certification of Accounting Statement Accuracy

    This is to certify that I have reviewed this accounting statement 
and to the best of my knowledge and belief:
    1. The statement was prepared in conformity with the guidelines 
issued by the Office of Personnel Management and fairly presents the 
financial results of this contract period in conformity with those 
guidelines;
    2. The costs included in the statement are allowable and allocable 
in accordance with the terms of the contract and with the cost 
principles of the Federal Employees Health Benefits Acquisition 
Regulation and the Federal Acquisition Regulation;
    3. Income, rebates, allowances, refunds and other credits made or 
owed in accordance with the terms of the contract and applicable cost 
principles have been included in the statement;
    4. If applicable, the letter of credit account was managed in 
accordance with 5 CFR part 890, 48 CFR chapter 16, and OPM guidelines.

Carrier Name:___________________________________________________________

_______________________________________________________________________
Name of Chief Executive Officer
(Type or Print)

_______________________________________________________________________
Name of Chief Financial Officer
(Type or Print)

_______________________________________________________________________
Signature of Chief Executive Officer

_______________________________________________________________________
Signature of Chief Financial Officer

_______________________________________________________________________
Date Signed


[[Page 136]]


_______________________________________________________________________
Date Signed

_______________________________________________________________________

Underwriter:____________________________________________________________

Name and Title of Responsible Corporate
Official (Type or Print):_______________________________________________

Signature of Responsible Corporate Official:
_______________________________________________________________________

Date Signed:____________________________________________________________

                          (End of Certificate)

                             (End of Clause)

[55 FR 27416, July 2, 1990, as amended at 56 FR 57497, Nov. 12, 1991; 57 
FR 14360, Apr. 20, 1992]



Sec. 1652.222-70   Notice of significant events.

    As prescribed in 1622.103-70, the following clause shall be inserted 
in all FEHBP contracts.

                 Notice of Significant Events (Jan 1991)

    (a) The Carrier agrees to notify OPM of any Significant Event within 
ten (10) working days after the Carrier becomes aware of it. As used in 
this section, a Significant Event is any occurrence or anticipated 
occurrence that might reasonably be expected to have a material effect 
upon the Carrier's ability to meet its obligations under this contract, 
including, but not limited to, any of the following:
    (1) Disposal of major assets;
    (2) Loss of 15% or more of the Carrier's overall membership;
    (3) Termination or modification of any contract or subcontract if 
such termination or modification might have a material effect on the 
Carrier's obligations under this contract;
    (4) Addition or termination of provider agreements;
    (5) Any changes in underwriters, reinsurers, or participating plans;
    (6) The imposition of, or notice of the intent to impose, a 
receivership, conservatorship, or special regulatory monitoring;
    (7) The withdrawal of, or notice of intent to withdraw, State 
licensing, HHS qualification, or any other status under Federal or State 
law;
    (8) Default on a loan or other financial obligation;
    (9) Any actual or potential labor dispute that delays or threatens 
to delay timely performance or substantially impairs the functioning of 
the Carrier's facilities or facilities used by the Carrier in the 
performance of the contract;
    (10) Any change in its charter, constitution, or by-laws which 
affects any provision of this contract or the Carrier's participation in 
the Federal Employees Health Benefits Program; or
    (11) Any significant changes in policies and procedures or 
interpretations of the contract or brochure which would affect the 
benefits available under the contract or the costs charged to the 
contract.
    (12) Any fraud, embezzlement or misappropriation of FEHB funds; or
    (13) Any written exceptions, reservations or qualifications 
expressed by the independent accounting firm (which ascribes to the 
standards of the American Institute of Certified Public Accountants) 
contracted with by the Carrier to provide an opinion on its annual 
financial statements.
    (b) Upon learning of a Significant Event OPM may institute action, 
in proportion to the seriousness of the event, to protect the interest 
of Members, including, but not limited to--
    (1) Directing the Carrier to take corrective action;
    (2) Suspending new enrollments under this contract;
    (3) Advising Enrollees of the Significant Event and providing them 
an opportunity to transfer to another plan;
    (4) Withholding payment of subscription income or restricting access 
to the Carrier's Letter of Credit account.
    (5) Terminating the enrollment of those enrollees who, in the 
judgment of OPM, would be adversely affected by the Significant Event; 
or
    (6) Terminating this contract pursuant to section 1.15, renewal and 
withdrawal of approval.
    (c) Prior to taking action as described in paragraph (b) of this 
clause, the OPM will notify the Carrier and offer an opportunity to 
respond.
    (d) The Carrier shall insert this clause in any subcontract or 
subcontract modification if both the amount of the subcontract or 
modification charged to the FEHBP (or, in the case of a community rated 
carrier, applicable to the FEHBP) exceeds $100,000 and the amount of the 
subcontract or modification to be charged to the FEHBP (or, in the case 
of a community rated carrier, applicable to the FEHBP) exceeds 25 
percent of the total cost of the subcontract or modification. If the 
Carrier is a CMP, it shall also insert this clause in all provider 
agreements over $25,000. If the Carrier is not a CMP, it shall also 
insert this clause in the contract with its underwriter, if any. The 
Carrier shall substitute ``Contractor'' or other appropriate reference 
for the term ``Carrier.''

[[Page 137]]

                             (End of Clause)

[52 FR 16044, May 1, 1987, as amended at 55 FR 27417, July 2, 1990]



Sec. 1652.224-70  Confidentiality of records.

    As prescribed in 1624.104, the following clause shall be inserted in 
all FEHBP contracts:

                  Confidentiality of Records (Jan 1991)

    (a) The Carrier shall use the personal data on employees and 
annuitants that is provided by agencies and OPM, including social 
security numbers, for only those routine uses stipulated for the data 
and published annually in the Federal Register as a part of OPM's notice 
of systems of records.
    (b) The Carrier shall also hold all medical records, and information 
relating thereto, of Federal subscribers and family members confidential 
except as follows:
    (1) As may be reasonably necessary for the administration of this 
contract;
    (2) As authorized by the patient or his or her guardian;
    (3) As disclosure is necessary to permit Government officials having 
authority to investigate and prosecute alleged civil or criminal 
actions;
    (4) As necessary to audit the contract;
    (5) As necessary to carry out the coordination of benefits 
provisions of this contract; and
    (6) For bona fide medical research or educational purposes. Release 
of information for medical research or educational purposes shall be 
limited to aggregated information of a statistical nature that does not 
identify any individual by name, social security number, or any other 
identifier unique to an individual.
    (c) If the carrier uses medical records for the administration of 
the contract, or for bona fide medical research or educational purposes, 
it shall so state in the plan's brochure.

                             (End of clause)

[52 FR 16044, May 1, 1987, as amended at 55 FR 27417, July 2, 1990]



Sec. 1652.232-70  Payments--community-rated contracts.

    As prescribed in 1632.171, the following clause shall be inserted in 
all community-rated FEHBP contracts:

                                Payments

    (a) OPM will pay to the Carrier, in full settlement of its 
obligations under this contract, subject to adjustment for error or 
fraud, the subscription charges received for the plan by the Employees 
Health Benefits Fund (hereinafter called the Fund) less the amounts set 
aside by OPM for the Contingency Reserve and for the administrative 
expenses of OPM, plus any payments made by OPM from the Contingency 
Reserve.
    (b) The specific subscription rates, charges, allowances and 
limitations applicable to the contract are set forth in Appendix B.
    (c) Recurring payments from premiums shall be due and payable not 
later than thirty days after receipt by the Fund. The Contracting 
Officer may authorize special non-recurring payments from the 
Contingency Reserve in accordance with OPM's regulations.
    (d) In the event this contract between the Carrier and OPM is 
terminated or not renewed in accordance with General Provision 1.15, 
RENEWAL and WITHDRAWAL OF APPROVAL, the Contingency Reserve of the 
Carrier held by OPM shall be available to the Carrier to pay the 
necessary and proper charges against this contract to the extent that 
the reserves held by the Carrier are insufficient for that purpose.

                             (End of Clause)

[53 FR 51784, Dec. 23, 1988, as amended at 57 FR 14360, Apr. 20, 1992]



Sec. 1652.232-71  Payments--experience-rated contracts.

    As prescribed in 1632.172, the following clause shall be inserted in 
all experience-rated FEHBP contracts:

                                Payments

    (a) OPM will pay to the Carrier, in full settlement of its 
obligations under this contract, subject to adjustment for error or 
fraud, the subscription charges received for the Plan by the Employees 
Health Benefits Fund (hereinafter called the Fund) less the amounts set 
aside by OPM for the Contingency Reserve and for the administrative 
expenses of OPM, plus any payments made by OPM from the Contingency 
Reserve.
    (b) The specific subscription rates, charges, allowances and 
limitations applicable to the contract are set forth in Appendix B.
    (c) Recurring payments from premiums shall be made available for 
carrier and/or underwriter drawdown not later than thirty days after 
receipt by the Fund. The Contracting Officer may authorize special non-
recurring payments from the Contingency Reserve in accordance with OPM's 
regulations.
    (d) In the event this contract between the Carrier and OPM is 
terminated or not renewed in accordance with General Provision 1.15, 
RENEWAL and WITHDRAWAL OF APPROVAL, the Contingency Reserve of the 
Carrier held by OPM shall be available to the Carrier to pay the 
necessary and proper

[[Page 138]]

charges against this contract to the extent that the Carrier reserves 
are insufficient for that purpose.

                             (End of Clause)

[53 FR 51784, Dec. 23, 1988, as amended at 57 FR 14361, Apr. 20, 1992]



Sec. 1652.232-72  Non-commingling of FEHBP funds.

    As prescribed in 1632.772, the following clause shall be inserted in 
all contracts based on cost analysis.

                   Non-Commingling of Funds (Jan 1991)

    (a) The Carrier and/or its underwriter shall keep all FEHBP funds 
for this contract (cash and investments) physically separate from funds 
obtained from other sources. Accounting for such FEHBP funds shall not 
be based on allocations or other sharing mechanisms and shall agree with 
the Carrier's accounting records.
    (b) In certain instances the physical separation of FEHBP funds may 
not be practical or desirable. In such cases, the Carrier may request a 
waiver from this requirement from the Contracting Officer. The waiver 
shall be requested in advance and the Carrier shall demonstrate that 
accounting techniques have been established that will clearly measure 
FEHBP cash and investment income (i.e., subsidiary ledgers). 
Reconciliations between amounts reported and actual amounts shown in 
accounting records shall be provided as supporting schedules to the 
Annual Accounting Statements.
    (c) The Carrier shall incorporate this clause in all subcontracts 
that exceed $25,000 and shall substitute ``contractor'' or other 
appropriate reference for ``Carrier and/or its underwriter.''

                             (End of Clause)

[52 FR 16044, May 1, 1987. Redesignated at 53 FR 51784, Dec. 23, 1988, 
and amended at 55 FR 27418, July 2, 1990]



Sec. 1652.232-73  Approval for the Assignment of Claims.

    As prescribed in 1632.806-70, the following clause shall be inserted 
in all FEHBP contracts:

              Approval for Assignment of Claims (Jan 1991)

    (a) Notwithstanding the provisions of section 5.35, (FAR 52.232-23) 
Assignment of Claims, the Carrier shall not make any assignment under 
the Assignment of Claims Act without the prior written approval of the 
Contracting Officer.
    (b) Unless a different period is specified in the Contracting 
Officer's written approval, an assignment shall be in force only for a 
period of 1 year from the date of the Contracting Officer's approval. 
However, assignments may be renewed upon their expiration.

                             (End of Clause)

[55 FR 27418, July 2, 1990]



Sec. 1652.244-70  Subcontracts.

    As prescribed by 1644.270, the following clause shall be inserted in 
all FEHBP contracts:

                         Subcontracts (Jan 1991)

    (a) The Carrier shall notify the Contracting Officer reasonably in 
advance of entering into any subcontract or subcontract modification, or 
as otherwise specified by this contract, if both the amount of the 
subcontract or modification charged to the FEHB Program (in the case of 
a community rated carrier, applicable to the FEHB Program) exceeds 
$100,000 and is 25 percent of the total cost of the subcontract.
    (b) The advance notification required by paragraph (a) of this 
clause shall include the information specified below:
    (1) A description of the supplies or services to be subcontracted;
    (2) Identification of the type of subcontract to be used;
    (3) Identification of the proposed subcontract and an explanation of 
why and how the proposed subcontractor was selected, including the 
competition obtained;
    (4) The proposed subcontract price and the Carrier's cost or price 
analysis;
    (5) The subcontractor's current, complete, and accurate cost or 
pricing data and Certificate of Current Cost or Pricing Data, if 
required by other contract provisions;
    (6) The subcontractor's Disclosure Statement or Certificate relating 
to Cost Accounting Standards when such data are required by other 
provisions of this contract; and
    (7) A negotiation memorandum reflecting--
    (i) The principal elements of the subcontract price negotiations;
    (ii) The most significant consideration controlling establishment of 
initial or revised prices;
    (iii) The reason cost or pricing data were or were not required;
    (iv) The extent, if any, to which the Carrier did not rely on the 
subcontractor's cost or pricing data in determining the price objective 
and in negotiating the final price;
    (v) The extent to which it was recognized in the negotiation that 
the subcontractor's cost or pricing data were not accurate, complete, or 
current; the action taken by the

[[Page 139]]

Carrier and the subcontractor; and the effect of any such defective data 
on the total price negotiated;
    (vi) The reasons for any significant difference between the 
Carrier's price objective and the price negotiated; and
    (vii) A complete explanation of the incentive fee or profit plan 
when incentives are used. The explanation shall identify each critical 
performance element, management decisions used to quantify each 
incentive element, reasons for the incentives, and a summary of all 
trade-off possibilities considered.
    (c) The Carrier shall obtain the Contracting Officer's written 
consent before placing any subcontract for which advance notification is 
required under paragraph (a) of this clause. However, the Contracting 
Officer may ratify in writing any such subcontract. Ratification shall 
constitute the consent of the Contracting Officer.
    (d) The Contracting Officer may waive the requirement for advance 
notification and consent required by paragraphs (a), (b), and (c) of 
this clause where the Carrier and subcontractor submit an application or 
renewal as a contractor team arrangement as defined in FAR subpart 9.6 
and--
    (1) The Contracting Officer evaluated the arrangement during 
negotiation of the contract or contract renewal; and
    (2) The subcontractor's price and/or costs were included in the 
plan's rates that were reviewed and approved by the Contracting Officer 
during negotiation of the contract or contract renewal.
    (e) Unless the consent or approval specifically provides otherwise, 
consent by the Contracting Officer to any subcontract shall not 
constitute a determination (1) of the acceptability of any subcontract 
terms or conditions; (2) of the allowability of any cost under this 
contract; or (3) to relieve the Carrier of any responsibility for 
performing this contract.
    (f) No subcontract placed under this contract shall provide for 
payment on a cost-plus-a-percentage-of-cost basis. Any fee payable under 
cost reimbursement type subcontracts shall not exceed the fee 
limitations in FAR 15.903(d). Any profit or fee payable under a 
subcontract shall be in accordance with the provision of subpart 3.7, 
Service charge.
    (g) The Carrier shall give the Contracting Officer immediate written 
notice of any action or suit filed and prompt notice of any claim made 
against the Carrier by any subcontractor or vendor that, in the opinion 
of the Carrier, may result in litigation related in any way to this 
contract with respect to which the Carrier may be entitled to 
reimbursement from the Government.

                             (End of clause)

[52 FR 16044, May 1, 1987, as amended at 55 FR 27418, July 2, 1990]



Sec. 1652.246-70  FEHB Inspection.

    As prescribed in 1646.301, the following clause shall be inserted in 
all FEHBP contracts:

                       FEHB Inspection (Jan 1991)

    (a) The Government or its agent has the right to inspect and 
evaluate the work performed or being performed under the contract, and 
the premises where the work is being performed, at all reasonable times 
and in a manner that will not unduly delay the work. If the Government 
or its agent performs inspection or evaluation on the premises of the 
Carrier or a subcontractor, the Carrier shall furnish and require the 
subcontractor to furnish all reasonable facilities and assistance for 
the safe and convenient performance of these duties.
    (b) The Carrier shall insert this clause in all subcontracts for 
underwriting and administrative services and shall substitute 
``Contractor'' or other appropriate reference for the term ``Carrier.''

                             (End of Clause)

[55 FR 27418, July 2, 1990]



Sec. 1652.249-70  Renewal and withdrawal of approval.

    As prescribed in 1649.101-70, the following clause shall be inserted 
in all FEHBP contracts:

              Renewal and Withdrawal of Approval (Jan 1991)

    (a) Pursuant to 5 U.S.C. 8902(a), the contract renews automatically 
for a term of 1 year each January 1st, unless written notice of intent 
not to renew is given either by OPM or the Carrier not less than 60 
calendar days before the renewal date, or unless modified by mutual 
agreement.
    (b) This contract also may be terminated at other times by order of 
OPM pursuant to 5 U.S.C. 8902(e). After OPM notifies the Carrier of its 
intent to terminate the contract, OPM may take action as it deems 
necessary to protect the interests of members, including but not limited 
to--
    (1) Suspending new enrollments under the contract;
    (2) Advising enrollees of the asserted deficiencies; and
    (3) Providing enrollees an opportunity to transfer to another Plan.
    (c) OPM may, after proper notice, terminate the contract at the end 
of the contract term if it finds that the Carrier did not have

[[Page 140]]

at least 300 enrollees enrolled in its plan at any time during the two 
preceding contract terms.

                             (End of Clause)

[52 FR 16044, May 1, 1987, as amended at 55 FR 27418, July 2, 1990; 57 
FR 19388, May 6, 1992]



                   Subpart 1652.3--FEHBP Clause Matrix



Sec. 1652.370  Use of the matrix.

    (a) The matrix in this section lists the FAR and FEHBAR clauses to 
be used with contracts based on cost analysis and contracts based on 
established catalog or market price. Carriers shall submit initial 
applications and requests for renewals on the basis that the new 
contract or contract renewal will include the clauses indicated.
    (b) Certain contract clauses are mandatory for FEHBP contracts. 
Other clauses are to be used only when made applicable by pertinent 
sections of the FAR or FEHBAR. An ``M'' in the ``Use Status'' column 
indicates that the clause is mandatory. An ``A'' indicates that the 
clause is to be used only when the applicable conditions are met.
    (c) Clauses are incorporated in the contract either in full text or 
by reference. If the full text is to be used, the matrix indicates a 
``T''. If the clause is incorporated by reference, the matrix indicates 
an ``R''.

                                               FEHBP Clause Matrix                                              
----------------------------------------------------------------------------------------------------------------
                                                                                        Use with contracts based
                                                                                                   on           
        Clause no.                Text reference               Title        Use status -------------------------
                                                                                            Cost        Price   
                                                                                          analysis     analysis 
----------------------------------------------------------------------------------------------------------------
FAR 52.202-1.............  FAR 2.2.....................  Definitions.....  M..........  T..........  T          
FAR 52.203-1.............  FAR 3.102-2.................  Officials Not to  M..........  T..........  T          
                                                          Benefit.                                              
FAR 52.203-3.............  FAR 3.202...................  Gratuities......  M..........  T..........  T          
FAR 52.203-5.............  FAR 3.404(c)................  Covenant Against  M..........  T..........  T          
                                                          Contingent Fees.                                      
FAR 52.203-7.............  FAR 3.502-3.................  Anti-Kickback     M..........  T..........  T          
                                                          Procedures.                                           
FAR 52.203-9.............  FAR 3.104-10(b).............  Requirement for   M..........  T..........  T          
                                                          Certificate of                                        
                                                          Procurement                                           
                                                          Integrity--Modi                                       
                                                          fication.                                             
FAR 52.203-12............  FAR 3.808...................  Limitation on     M..........  T..........  T          
                                                          Payments to                                           
                                                          Influence                                             
                                                          Certain Federal                                       
                                                          Transactions.                                         
1652.203-70..............  1603-703....................  Misleading,       M..........  T..........  T          
                                                          Deceptive, or                                         
                                                          Unfair                                                
                                                          Advertising.                                          
1652.204-70..............  1604.705....................  Contractor        M..........  T..........  T          
                                                          Records                                               
                                                          Retention.                                            
1652.204-71..............  1604.7001...................  Coordination of   M..........  T..........  T          
                                                          Benefits.                                             
FAR 52.209-6.............  FAR 9.409(b)................  Protecting the    M..........  T..........  T          
                                                          Government's                                          
                                                          Interest When                                         
                                                          Subcontracting                                        
                                                          With                                                  
                                                          Contractors                                           
                                                          Debarred,                                             
                                                          Suspended, or                                         
                                                          Proposed for                                          
                                                          Debarment.                                            
FAR 52.215-1.............  FAR 15.106-1(b).............  Examination of    M..........  T..........  T          
                                                          Records by                                            
                                                          Comptroller                                           
                                                          General.                                              
FAR 52.215-2.............  FAR 15.106-2(b).............  Audit-            M..........  T..........  T          
                                                          Negotiation.                                          
FAR 52.215-22............  FAR 15.804-8(a).............  Price Reduction   M..........  T..........  ...........
                                                          for Defective                                         
                                                          Cost or Pricing                                       
                                                          Data.                                                 
FAR 52.215-23............  FAR 15.804-8(b).............  Price Reduction   M..........  ...........  T          
                                                          for Defective                                         
                                                          Cost or Pricing                                       
                                                          Data-Modificati                                       
                                                          ons.                                                  
FAR 52.215-24............  FAR 15.804-8(c).............  Subcontractor     M..........  T..........  ...........
                                                          Cost or Pricing                                       
                                                          Data.                                                 
FAR 52.215-25............  FAR 15.804-8(d).............  Subcontractor     M..........  ...........  T          
                                                          Cost or Pricing                                       
                                                          Data-Modificati                                       
                                                          ons.                                                  
FAR 52.215-27............  FAR 15.804-8(e).............  Termination of    M..........  T..........  T          
                                                          Defined Benefit                                       
                                                          Pension Plans.                                        
FAR 52.215-30............  FAR 15.904..................  Facilities        M..........  T..........  ...........
                                                          Capital Cost of                                       
                                                          Money.                                                
FAR 52.215-31............  FAR 15.904..................  Waiver of         A..........  T..........  ...........
                                                          Facilities                                            
                                                          Capital Cost of                                       
                                                          Money.                                                

[[Page 141]]

                                                                                                                
FAR 52.215-39............  FAR 15.804-8(f).............  Reversion or      M..........  T..........  T          
                                                          Adjustment of                                         
                                                          Plans for                                             
                                                          Postretirement                                        
                                                          Benefits Other                                        
                                                          Than Pensions                                         
                                                          (PRB).                                                
1652.215-70..............  1615.804-72.................  Rate Reduction    M..........  ...........  T          
                                                          for Defective                                         
                                                          Pricing or                                            
                                                          Defective Cost                                        
                                                          or Pricing Data.                                      
1652.215-71..............  1615.805-71.................  Investment        M..........  T..........  ...........
                                                          Income.                                               
1652.216-70..............  1616.270....................  Accounting and    M..........  ...........  T          
                                                          Price                                                 
                                                          Adjustment.                                           
1652.216-71..............  1616.271....................  Accounting and    M..........  T..........  ...........
                                                          Allowable Cost.                                       
FAR 52.219-8.............  FAR 19.708(a)...............  Utilization of    M..........  T..........  T          
                                                          Small Business                                        
                                                          Concerns and                                          
                                                          Small                                                 
                                                          Disadvantaged                                         
                                                          Business                                              
                                                          Concerns.                                             
FAR 52.219-13............  FAR 19.902..................  Utilization of    M..........  T..........  T          
                                                          Women-Owned                                           
                                                          Small                                                 
                                                          Businesses.                                           
FAR 52.220-3.............  FAR 20.302(a)...............  Utilization of    M..........  T..........  T          
                                                          Labor Surplus                                         
                                                          Area Concerns.                                        
FAR 52.222-1.............  FAR 22.103-5(a).............  Notice to the     M..........  T..........  T          
                                                          Government of                                         
                                                          Labor Disputes.                                       
FAR 52.222-3.............  FAR 22.202..................  Convict Labor...  M..........  T..........  T          
FAR 52.222-4.............  FAR 22.305(a)...............  Contract Work     M..........  T..........  T          
                                                          Hours and                                             
                                                          Safety                                                
                                                          Standards Act-                                        
                                                          Overtime                                              
                                                          Compensation-Ge                                       
                                                          neral.                                                
FAR 52.222-26............  FAR 22.810(e)...............  Equal             M..........  T..........  T          
                                                          Opportunity.                                          
FAR 52.222-28............  FAR 22.810(g)...............  Equal             M..........  T..........  T          
                                                          Opportunity                                           
                                                          Preaward                                              
                                                          Clearance of                                          
                                                          Subcontracts.                                         
FAR 52.222-29............  FAR 22.810(h)...............  Notification of   A..........  T..........  T          
                                                          Visa Denial.                                          
FAR 52.222-35............  FAR 22.1308(a)..............  Affirmative       M..........  T..........  T          
                                                          Action for                                            
                                                          Special                                               
                                                          Disabled and                                          
                                                          Vietnam Era                                           
                                                          Veterans.                                             
FAR 52.222-36............  FAR 22.1408(a)..............  Affirmative       M..........  T..........  T          
                                                          Action for                                            
                                                          Handicapped                                           
                                                          Workers.                                              
1652.222-70..............  1622.103-70.................  Notice of         M..........  T..........  T          
                                                          Significant                                           
                                                          Events.                                               
FAR 52.223-2.............  FAR 23.105(b)...............  Clean Air and     A..........  T..........  T          
                                                          Water.                                                
FAR 52.223-6.............  FAR 23.505(c)...............  Drug-Free         A..........  T..........  T          
                                                          Workplace.                                            
1652.224-70..............  1624.104....................  Confidentiality   M..........  T..........  T          
                                                          of Records.                                           
FAR 52.229-3.............  FAR 29.401-3................  Federal, State    M..........  ...........  T          
                                                          and Local Taxes.                                      
FAR 52.229-4.............  FAR 29.401-4................  Federal, State    M..........  T..........  ...........
                                                          and Local Taxes                                       
                                                          (Noncompetitive                                       
                                                          Contract).                                            
FAR 52.229-5.............  FAR 29.401-5................  Taxes-Contracts   A..........  T..........  T          
                                                          Performed in                                          
                                                          U.S.                                                  
                                                          Possessions or                                        
                                                          Puerto Rico.                                          
FAR 52.229-6.............  FAR 29.402-1(a).............  Taxes-Foreign     A..........  T..........  T          
                                                          Fixed Price                                           
                                                          Contracts.                                            
FAR 52.230-2.............  FAR 30.201-4(a)(1)..........  Cost Accounting   A..........  T..........  T          
                                                          Standards.                                            
FAR 52.230-3.............  FAR 30.201-4(b)(1)..........  Disclosure and    A..........  T..........  T          
                                                          Consistency of                                        
                                                          Cost Accounting                                       
                                                          Practices.                                            
FAR 52.230-5.............  FAR 30.201-4(d)(1)..........  Administration    A..........  T..........  T          
                                                          of Cost                                               
                                                          Accounting                                            
                                                          Standards.                                            
FAR 52.232-8.............  FAR 32.111(c)(1)............  Discounts for     M..........  T..........  T          
                                                          Prompt Payment.                                       
FAR 52.232-17............  FAR 32.617(a) Modification:   Interest........  M..........  ...........  T          
                            1632.617.                                                                           
FAR 52.232-23............  FAR 32.806(a)(1)............  Assignment of     A..........  T..........  T          
                                                          Claims.                                               
1652.232-70..............  1632.171....................  Payments--contra  A..........  T..........  T          
                                                          cts without                                           
                                                          letter of                                             
                                                          credit payment                                        
                                                          arrangements.                                         
1652.232-71..............  1632.172....................  Payments--contra  A..........  T..........  T          
                                                          cts with letter                                       
                                                          of credit                                             
                                                          payment                                               
                                                          arrangements.                                         

[[Page 142]]

                                                                                                                
1652.232-72..............  1632.772....................  Non-Commingling   M..........  T..........  ...........
                                                          of FEHBP Funds.                                       
1652.232-73..............  1632.806-70.................  Approval for      M..........  T..........  T          
                                                          Assignment of                                         
                                                          Claims.                                               
FAR 52.233-1.............  FAR 33.214..................  Disputes........  M..........  T..........  T          
FAR 52.242-1.............  FAR 42.802..................  Notice of Intent  M..........  T..........  ...........
                                                          to Disallow                                           
                                                          Costs.                                                
FAR 52.242-13............  FAR 42.903..................  Bankruptcy......  M..........  T..........  T          
FAR 52.249-2.............  FAR 49.502(b)(1)(i).........  Termination for   M..........  T..........  T          
                                                          Convenience of                                        
                                                          the Government                                        
                                                          (Fixed-Price).                                        
FAR 52.249-8.............  FAR 49.504(a)(1)............  Default (Fixed-   M..........  T..........  T          
                                                          Price Supply                                          
                                                          and Service).                                         
FAR 52.243-1.............  FAR 43.205(a)(1)............  Changes--Fixed    M..........  T..........  T          
                                                          Price--Alternat                                       
                                                          e I.                                                  
1652.244-70..............  1644.270....................  Subcontracts....  M..........  T..........  T          
FAR 52.244-5.............  FAR 44.204(e)...............  Competition in    M..........  T..........  T          
                                                          Subcontracting.                                       
FAR 52.245-2.............  FAR 45.106(b)(1)............  Government        M..........  T..........  T          
                                                          Property (Fixed-                                      
                                                          Price                                                 
                                                          Contracts).                                           
FAR 52.246-25............  FAR 46.805(a)(4)............  Limitation of     M..........  T..........  ...........
                                                          Liability-Servi                                       
                                                          ces.                                                  
1652.246-70..............  1646.301....................  FEHBP Inspection  M..........  T..........  T          
FAR 52.247-63............  FAR 47.405..................  Preference for    M..........  T..........  T          
                                                          U.S.-Flag Air                                         
                                                          Carriers.                                             
1652.249-70..............  1649.101-70.................  Renewal and       M..........  T..........  T          
                                                          Withdrawal of                                         
                                                          Approval.                                             
FAR 52.251-1.............  FAR 51.107..................  Government        A..........  T..........  ...........
                                                          Supply Sources.                                       
FAR 52.252-2.............  FAR 52.107(b)...............  Clauses           M..........  T..........  T          
                                                          Incorporated by                                       
                                                          Reference.                                            
FAR 52.252-4.............  FAR 52.107(d)...............  Alterations in    M..........  T..........  T          
                                                          Contract.                                             
FAR 52.252-6.............  FAR 52.107(f)...............  Authorized        M..........  T..........  T          
                                                          Deviations in                                         
                                                          Clauses.                                              
----------------------------------------------------------------------------------------------------------------

[52 FR 16044, May 1, 1987, as amended at 55 FR 27418, July 2, 1990; 59 
FR 14767, Mar. 30, 1994]



PART 1653--FORMS--Table of Contents




    Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.



Sec. 1653.000  FEHBP forms.

    The following forms specified in FAR subparts 53.2 and 53.3 are 
applicable to FEHBP acquisitions:

------------------------------------------------------------------------
       Part 53.2                Part 53.3               Form title      
------------------------------------------------------------------------
53.201-1                 53.301-1402             SF 1402-Certificate of 
                                                  Appointment.          
53.203                   53.301-119              SF 119--Statement of   
                                                  Contingent or Other   
                                                  Fees.                 
53.204-2(a)              53.301-279              SF 279 FPDS--Individual
                                                  Contract Action Report
                                                  (over $10,000).       
53.204-2(b)              53.301-281              SF 281 FPDS--Summary of
                                                  Contract Actions of   
                                                  $10,000 or less.      
53.215-2(b)              53.301-1412             SF 1412--Claim for     
                                                  Exemption from        
                                                  Submission of         
                                                  Certified Cost or     
                                                  Pricing Data.         
53.229                   53.301-1094             SF 1094--U.S. Tax      
                                                  Exemption Certificate.
53.229                   53.301-1094A            SF 1094A--Tax Exemption
                                                  Certificates          
                                                  Accountability Record.
------------------------------------------------------------------------

[52 FR 16048, May 1, 1987]

[[Page 143]]



               CHAPTER 17--OFFICE OF PERSONNEL MANAGEMENT




                          (Parts 1700 to 1799)

  --------------------------------------------------------------------
Part                                                                Page
1733            Protests, disputes, and appeals.............         144

[[Page 144]]



PART 1733--PROTESTS, DISPUTES, AND APPEALS--Table of Contents




                  Subpart 1733.2--Disputes and Appeals

Sec.
1733.203  Applicability.
1733.203-70  Designation of the Interior Board of Contract Appeals to 
          decide OPM appeals.
1733 209  Suspected fraudulent claims.
1733.211  Contracting officer's decision.
1733.212  Contracting officer's duties upon appeal.
1733.214  Contract clause.

    Authority: 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 51 FR 44296, Dec. 9, 1986, unless otherwise noted.



                  Subpart 1733.2--Disputes and Appeals



Sec. 1733.203  Applicability.

    (a) The Office of Personnel Management's (OPM) procurement executive 
shall make the determination prescribed under FAR 33.203(b).
    (b) Requests for determinations under paragraph (a) of this section 
shall be submitted by OPM's contracting officer through OPM's head of 
the contracting activity to the procurement executive for further 
action.



Sec. 1733.203-70  Designation of the Interior Board of Contract Appeals to decide OPM appeals.

    (a) The Interior Board of Contract Appeals (IBCA) has been 
designated by the Director of OPM to consider and determine appeals from 
decisions of a contracting officer arising under a contract or relating 
to a contract made by OPM. This delegation governs disputes between OPM 
and its prime contractors and does not encompass any claim made by a 
third party beneficiary of, or by a subscriber to, a Federal employee 
insurance program.
    (b) The address of IBCA is 4015 Wilson Boulevard, Arlington, VA 
22203.
    (c) IBCA rules of procedure can be found in 43 CFR part 4.



Sec. 1733.209  Suspected fraudulent claims.

    If the contractor is unable to support any part of the claim and 
there is evidence that the inability is attributable to 
misrepresentation of fact or to fraud on the part of the contractor, the 
contracting officer shall refer the matter through the head of the 
contracting activity to OPM's Offices of the Inspector General and the 
General Counsel.



Sec. 1733.211  Contracting officer's decision.

    The written decision required by FAR 33.211(a)(4) shall include, in 
the paragraph listed under FAR 33.211(a)(4)(v), specific reference to 
the Interior Board of Contract Appeals, 4015 Wilson Boulevard, 
Arlington, VA 22203, and its procedures under 43 CFR part 4. The IBCA 
optional small claims (expedited) procedures and accelerated procedures 
under 43 CFR 4.113 shall also be referenced as required by the FAR.



Sec. 1733.212  Contracting officer's duties upon appeal.

    (a) When a notice of appeal has been received, the contracting 
officer shall endorse on the appeal the date of mailing (or the date of 
receipt if the notice was not mailed) and forward it to IBCA by 
certified mail within 5 days of receipt. OPM's Office of the General 
Counsel and the Department of the Interior's (DOI) Office of the 
Solicitor shall also be notified of the appeal by the contracting 
officer. 43 CFR 4.103.
    (b) The contracting officer shall prepare and transmit the 
documentation and information required by 43 CFR 4.104 in the form of an 
appeal file to IBCA, OPM's Office of the General Counsel, DOI's Office 
of the Solicitor, and appellant or appellant's counsel within 30 days 
after receipt of a notice of appeal or advice that an appeal has been 
docketed by IBCA.



Sec. 1733.214  Contract clause.

    The Disputes clause contained in FAR 52.233-1 shall be used with its 
Alternate I in all OPM solicitations and contracts.



[[Page 145]]



        CHAPTER 18--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION




                          (Parts 1800 to 1899)

  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
1801            Federal acquisition regulations system......         147
1802            Definitions of words and terms..............         151
1803            Improper business practices and personal 
                    conflicts of interest...................         152
1804            Administrative matters......................         156
           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
1805            Publicizing contract actions................         164
1806            Competition requirements....................         167
1807            Acquisition planning........................         170
1808            Required sources of supplies and services...         177
1809            Contractor qualifications...................         181
1811            Describing agency...........................         185
1812            Acquisition of commercial items.............         188
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
1813            Small purchase and other simplified purchase 
                    procedures..............................         190
1814            Sealed bidding..............................         196
1815            Contracting by negotiation..................         199
1816            Types of contracts..........................         222
1817            Special contracting methods.................         232
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
1819            Small business programs.....................         236
1822            Application of labor laws to government 
                    acquisitions............................         248
1823            Environment, conservation, occupational 
                    safety, and drug-free workplace.........         255
1824            Protection of privacy and freedom of 
                    information.............................         259

[[Page 146]]

1825            Foreign acquisition.........................         259
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
1827            Patents, data, and copyrights...............         268
1828            Bonds and insurance.........................         283
1829            Taxes.......................................         287
1830            Cost accounting standards...................         288
1831            Contract cost principles and procedures.....         291
1832            Contract financing..........................         292
1833            Protests, disputes, and appeals.............         300
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
1834            Major system acquisition....................         303
1835            Research and development contracting........         305
1836            Construction and architect-engineer 
                    contracts...............................         310
1837            Service contracting.........................         314
1839            Acquisition of Federal information 
                    processing resources....................         319
                    SUBCHAPTER G--CONTRACT MANAGEMENT
1840      [Reserved]
1841            Acquisition of utility services.............         325
1842            Contract administration.....................         329
1843            Contract modifications......................         346
1844            Subcontracting policies and procedures......         348
1845            Government property.........................         351
1846            Quality assurance...........................         389
1847            Transportation..............................         397
1848            Value engineering...........................         399
1849            Termination of contracts....................         400
1850            Extraordinary contractual actions...........         404
1851            Use of government sources by contractors....         407
                     SUBCHAPTER H--CLAUSES AND FORMS
1852            Solicitation provisions and contract clauses         409
1853            Forms.......................................         468
             SUBCHAPTER I--AGENCY SUPPLEMENTARY REGULATIONS
1870            NASA supplementary regulations..............         473
1871            Midrange procurement procedures.............         542

  Editorial Note: Nomenclature changes to Chapter 18 appear at 58 FR 
51136, Sept. 30, 1993.

[[Page 147]]



                          SUBCHAPTER A--GENERAL





PART 1801--FEDERAL ACQUISITION REGULATIONS SYSTEM--Table of Contents




Sec.
1801.000  Scope of part.

              Subpart 1801.1  Purpose, Authority, Issuance

1801.103  Authority.
1801.104  Applicability.
1801.105  Issuance.
1801.105-1  Publication and code arrangement.
1801.105-2  Arrangement of regulations.
1801.105-3  Copies.
1801.105-370  Internal dissemination.
1801.106  OMB approval under the Paperwork Reduction Act.

                     Subpart 1801.2  Administration

1801.270  Amendment of Regulation.
1801.270-1  Revisions.
1801.270-2  Procurement Notices.
1801.270-3  Effective date.
1801.270-4  Numbering.
1801.271  NASA procedures for FAR and NFS changes.
1801.272  Procurement Information Circulars.

             Subpart 1801.3  Agency Acquisition Regulations

1801.301  Policy.
1801.303  Publication and codification.

                 Subpart 1801.4  Deviations From the FAR

1801.400  Scope of subpart.
1801.471  Procedure for requesting deviations.

     Subpart 1801.6  Career Development, Contracting Authority, and 
                            Responsibilities

1801.601  General.
1801.602-3  Ratification of unauthorized commitments.
1801.603  Selection, appointment, and termination of appointment.
1801.603-2  Selection.
1801.670  Delegations to contracting officer's technical representatives 
          (COTRs).

               Subpart 1801.7  Determinations and Findings

1801.707  Signatory authority.
1801.770  Legal review.

Authority: 42 U.S.C. 2473(c)(1).

    Source: 61 FR 40534, Aug. 5, 1996, unless otherwise noted.



Sec. 1801.000   Scope of part.

    This part sets forth general information about the National 
Aeronautics and Space Administration (NASA) Federal Acquisition 
Regulations (FAR) Supplement, also referred to as the NFS.



              Subpart 1801.1--Purpose, Authority, Issuance



Sec. 1801.103   Authority. (NASA supplements paragraph (a))

    (a) Under the following authorities, the Administrator has delegated 
to the Associate Administrator for Procurement authority to prepare, 
issue, and maintain the NFS:
    (i) The National Aeronautics and Space Act of 1958 (Public Law 85-
568; 42 U.S.C. 2451 et seq.).
    (ii) 10 U.S.C. chapter 137.
    (iii) Other statutory authority.
    (iv) FAR subpart 1.3.



Sec. 1801.104  Applicability.

    The NFS applies to all acquisitions as defined in FAR Part 2 except 
those expressly excluded by the FAR or this chapter.
1801.105  Issuance.



Sec. 1801.105-1  Publication and code arrangement. (NASA supplements paragraphs (a) and (b))

    (a)(i) The NFS is published in the same publications and formats as 
the FAR.
    (ii) The NFS is published in ``editions'' and ``versions.'' An 
``edition'' is a loose-leaf publication of the entire regulation and is 
denoted by the calendar year of publication. A ``version'' is the basic 
loose-leaf edition NFS with all NFS Directive (NFSD) change pages filed 
up to and including the NFSD number that corresponds to the ``version'' 
number. For example, for the 1989 edition of the NFS, Version 89.3 
consists of pages from NFSD 89-0 (basic NFS), with change pages filed 
from NFSDs 89-1, 89-2, and 89-3.

[[Page 148]]

    (b) The NFS is issued as chapter 18 of title 48, Code of Federal 
Regulations (CFR).



Sec. 1801.105-2  Arrangement of regulations. (NASA supplements paragraph (b))

    (b)(1)(A) Numbering of NFS text implementing the FAR shall be the 
same as that of the related FAR text, except when the NFS coverage 
exceeds one paragraph. In such case the NFS text is numbered by skipping 
a unit in the FAR 1.105-2(b)(2) prescribed numbering sequence. For 
example, two paragraphs implementing FAR 1.105-2(b)(1) are numbered 
1801.105-2(b)(1) (A) and (B), rather than (1) (i) and (ii). Further 
subdivision of the NFS implementing paragraphs would follow the 
prescribed sequence in FAR 1.105(b)(2).
    (B) NFS text that supplements the FAR is numbered the same as its 
FAR counterpart with the addition of a number 70 and up. For example, 
NFS supplement of FAR subsection 1.105-3 is numbered 1801.105-370. 
Supplemental text exceeding one paragraph is numbered using the FAR 
1.105-2(b)(2) prescribed numbering sequence without skipping a unit.
    (2) Subdivision numbering below the fourth level repeats the 
numbering sequence using italicized letters and numbers.



Sec. 1801.105-3  Copies (NASA paragraphs (1), (2) and (3))

    (1) Subscriptions to the NFS may be obtained by writing to 
Superintendent of Documents, U.S. Government Printing Office (GPO), 
Washington, DC 20402, or by calling (202) 512-1800. All requests should 
cite the NFS GPO Subscription Stock No. 933-003-00000-1. A subscription 
consists of the basic edition, plus all changes issued for an indefinite 
period. The prices and periods of subscriptions are set by GPO.
    (2) The NFS is also available on the Internet (address: http://
www.hq.nasa.gov/office/procurement/regs/nfstoc.htm).
    (3) Copies of NASA Handbooks (NHBs), NASA Management Instructions 
(NMIs), NASA Policy Directives (NPDs), and NASA Procedures and 
Guidelines (NPGs) may be obtained from NASA Headquarters, Office of 
Management Systems and Facilities (Code JM).



Sec. 1801.105-370  Internal dissemination.

    The Headquarters Office of Procurement (Code HK), (202-358-1248), 
distributes the FAR, Federal Acquisition Circulars (FACs), the NFS, 
NFSDs, Procurement Notices (PNs), and Procurement Information Circulars 
(PICs) directly to NASA Headquarters offices and installation 
distribution points. NASA center personnel may be placed on the 
distribution list or may obtain extra copies by contacting the 
designated distribution point for their installation.



Sec. 1801.106  OMB approval under the Paperwork Reduction Act. (NASA paragraphs (1) and (2))

    (1) NFS requirements. The following OMB control numbers apply:

------------------------------------------------------------------------
                                                             OMB control
                        NFS  segment                             No.    
------------------------------------------------------------------------
1815.406-70(b)(5)(iii).....................................    2700-0082
1815.608-72................................................    2700-0080
1819.......................................................    2700-0073
1819.72....................................................    2700-0078
1827.......................................................    2700-0052
1843.......................................................    2700-0054
NF 533.....................................................    2700-0003
NF 667.....................................................    2700-0004
NF 1018....................................................    2700-0017
------------------------------------------------------------------------

    (2) Solicitations and contracts. Various requirements in a 
solicitation or contract, generally in the statement of work, are not 
tied to specific paragraphs cleared in paragraph (1) of this section, 
yet require information collection or recordkeeping. The following OMB 
control numbers apply to these requirements: 2700-0086 (acquisitions up 
to $25,000), 2700-0087 (solicitations that may result in bids or 
proposals not exceeding $500,000), 2700-0085 (solicitations that may 
result in bids or proposals exceeding $500,000), 2700-0088 (contracts 
not exceeding $500,000), and 2700-0089 (contracts exceeding $500,000).



                      Subpart 1801.2--Aministration

1801.270  Amendment of regulation.



Sec. 1801.270-1  Revisions.

    The NFS is amended by publishing amendments in the Federal Register 
and issuing NFSDs containing loose- 

[[Page 149]]

leaf replacement pages revising various segments of it (also see 
1801.270-2). Each replacement page bears the NFSD number and page number 
at the top. A vertical bar at the side of a line indicates that a change 
has been made within that line.



Sec. 1801.270-2  Procurement Notices.

    (a) The NFS is amended by publishing amendments in the Federal 
Register and issuing Procurement Notices (PNs) when it is necessary or 
advisable to change the NFS in advance of an NFSD.
    (b) Unless otherwise indicated, each PN remains in effect until the 
effective date of the subsequent NFSD incorporating the PN or until 
specifically canceled.



Sec. 1801.270-3  Effective date.

    (a) Compliance with a revision to the NFS shall be in accordance 
with the NFSD or PN containing the revision.
    (b) Unless otherwise stated, solicitations that have been issued, 
and bilateral agreements for which negotiations have been completed, 
before the receipt of new or revised contract clauses need not be 
amended to include the new or revised clauses if including them would 
unduly delay the acquisition.



Sec. 1801.270-4  Numbering.

    NFSDs and PNs are numbered consecutively, prefixed by the last two 
digits of the calendar year of issuance of the current edition of the 
NFS.



Sec. 1801.271  NASA procedures for FAR and NFS changes.

    (a) Informal suggestions for improving the NFS, including correction 
of errors, should be directed to the Headquarters Office of Procurement 
(Code HK).
    (b) (1) Formal requests for changes to the FAR or the NFS should be 
written and contain
    (i) A description of the problem the suggested revision is designed 
to cure,
    (ii) The revision in the form of a marked-up copy of the current FAR 
or NFS language or the text of any additional language,
    (iii) The consequences of making no change and the benefits to be 
expected from a change, and
    (iv) Any other information necessary for understanding the 
situation, such as relationship between FAR and NFS coverage, legal 
opinions, coordination with other offices, and existing agreements.
    (2) Formal requests for FAR and NFS changes should be sent to Code 
HK. Requests from Headquarters offices should originate at the division 
level or higher, while installation requests should be signed at the 
procurement officer or higher level.



Sec. 1801.272   Procurement Information Circulars.

    (a) The Procurement Information Circular (PIC) is used for internal 
dissemination of procurement-related information and directives not 
suitable for inclusion in the NFS. Code HK is responsible for issuing 
PICs.
    (b) PICs are numbered on a calendar year basis, beginning with 
number 1, prefixed by the last two digits of the year.



             Subpart 1801.3--Agency Acquisition Regulations



Sec. 1801.301   Policy. (NASA supplements paragraphs (a) and (b))

    (a) (2) Heads of NASA field installations may prescribe policies and 
procedures that do not have a significant effect beyond the internal 
operating procedures of their installations. All other policies, 
procedures, and solicitation and contract provisions and clauses must be 
forwarded to the Headquarters Office of Procurement (Code HK) for 
approval in accordance with 1801.271(b).
    (b) (i) 41 U.S.C. 418b requires publication of NFS changes for 
public comment where there will be a significant effect beyond the 
internal operating procedures of the agency or a significant cost or 
administrative impact on contractors or offerors. However, it does not 
define ``significant effect beyond the internal operating procedures'' 
or ``significant cost or administrative impact.'' Examples of policies 
or procedures that fall in either of these categories are:
    (A) A contract clause requiring contractors to take precautions to 
avoid injury to Florida manatees, which have

[[Page 150]]

been designated as an endangered species, has a significant cost impact 
for contractors who must obtain protective devices for boat propellers 
and take other safety actions.
    (B) A contract clause requiring contractors to follow the 
Government's holiday schedule, thereby disallowing premium pay for work 
on contractor-designated holidays, will have an effect outside the 
internal operating procedures of the agency.
    (C) A contract clause requiring contractors to segregate costs by 
appropriations will affect the contractor's internal accounting system 
and have a significant impact.
    (D) Requiring contractor compliance with NASA's Space Transportation 
System Personnel Reliability Program will have an effect outside the 
internal operating procedures of the agency.
    (ii) In contrast, the following would not have to be publicized for 
public comment:
    (A) Security procedures for identifying and badging contractor 
personnel to obtain access at a NASA installation.
    (B) A one-time requirement in a construction contract for the 
contractor to develop a placement plan and for inspection prior to any 
concrete being placed. (This is a part of the specification or statement 
of work.)
    (C) A policy that requires the NASA installation to maintain copies 
of unsuccessful offers.



Sec. 1801.303   Publication and codification. (NASA supplements paragraph (a))

    (a) Part, subpart, and section numbers 70 through 89 are reserved 
for NFS supplementary material for which there is no FAR counterpart.



                 Subpart 1801.4--Deviations From the FAR



Sec. 1801.400   Scope of subpart.

    This subpart prescribes the policies and procedures for authorizing 
deviations from the FAR and the NFS.



Sec. 1801.471   Procedure for requesting deviations.

    (a) Requests for authority to deviate from the FAR or the NFS shall 
be submitted by the Procurement Officer to the Headquarters Office of 
Procurement (Code HS).
    (b) Each request for a deviation shall contain, as a minimum--
    (1) Identification of the FAR or the NFS requirement from which a 
deviation is sought;
    (2) A full description of the deviation, the circumstances in which 
it will be used, and the specific contract action(s) to which it 
applies;
    (3) A description of its intended effect;
    (4) A statement as to whether the deviation has been requested 
previously and, if so, the circumstances of the previous request;
    (5) Identification of the contractor(s) and the contract(s) 
affected, including dollar value(s);
    (6) Detailed reasons supporting the request, including any pertinent 
background information; and
    (7) A copy of counsel's concurrence or comments.
    (c) In addition to the information required by 1801.471(b), requests 
for individual deviations from FAR cost principles under FAR 31.101 
should include a copy of the contractor's request for cost allowance.



     Subpart 1801.6--Career Development, Contracting Authority, and 
                            Responsibilities



Sec. 1801.601   General.

    The authority to contract for authorized supplies and services is 
delegated to the Associate Administrator for Procurement and 
installation officials by NPD 5101.32.



Sec. 1801.602-3  Ratification of unauthorized commitments. (NASA supplements paragraphs (b) and (c))

    (b) Policy. Individuals making unauthorized commitments may be 
subject to disciplinary action, and the issue may be referred to the 
Office of Inspector General.
    (c)(7) The authority in FAR 1.602-3 may be exercised only when--
    (A) The Government employee who made the unauthorized commitment, or 
his/her supervisor, if appropriate, initiates a procurement request in 
accordance with 1804.7301.

[[Page 151]]

    (B) The procurement request and/or accompanying documentation 
identifies the individual who made the unauthorized commitment, and 
includes a statement signed by the individual that explains why normal 
acquisition procedures were not followed, explains why the firm was 
selected, lists other sources considered, describes the work, and 
estimates or states the agreed price. If the Government representative 
who made the unauthorized commitment is no longer available, appropriate 
program personnel shall provide the information described in this 
paragraph.
    (C) The procurement request is submitted through the director of the 
cognizant program office at the contracting activity, or comparable 
official. In the procurement request, the director shall describe 
measures taken to prevent the recurrence of the unauthorized commitment.
1801.603  Selection, appointment, and termination of appointment.



Sec. 1801.603-2  Selection.

    Normally, only GS-1102 and -1105 personnel with the proper training 
and experience may be appointed contracting officers and only when a 
valid organizational need can be demonstrated.



Sec. 1801.670  Delegations to contracting officer's technical representatives (COTRs).

    A COTR delegation may be made only by the contracting officer 
cognizant of that contract at the time the delegation is made. If the 
cognizant contracting officer is absent, the delegation letter may be 
signed by a warranted contracting officer at any level above the 
cognizant contracting officer. An individual COTR may have only the 
duties specifically identified in a written delegation to him or her by 
name (i.e., COTR duties may not be delegated to a position) and has no 
authority to exceed them. COTRs should be informed that they may be 
personally liable for unauthorized commitments. Contracting officer 
authority to sign or authorize contractual instruments shall not be 
delegated through a COTR designation or by any means other than a 
contracting officer warrant.



               Subpart 1801.7--Determinations and Findings



Sec. 1801.707  Signatory authority.

    Signatory authority for determinations and findings (D&Fs) is 
specified in the FAR or the NFS text for the associated subject matter. 
The Administrator may make any of the D&Fs that may be made by the 
Associate Administrator for Procurement or by a contracting officer.



Sec. 1801.770  Legal review.

    Each D&F, including class D&Fs, shall be reviewed by counsel for 
form and legality before signature by the approving authority.



PART 1802--DEFINITIONS OF WORDS AND TERMS--Table of Contents




Sec.
1802.000  Scope of part.

                       Subpart 1802.1--Definitions

1802.101  Definitions.

    Authority:  42 U.S.C. 2473(c)(1)

    Source:61 FR 40537, Aug. 5, 1996, unless otherwise noted.



Sec. 1802.000  Scope of part.

    Commonly used words and terms are defined in FAR subpart 2.1. This 
part 1802 gives NASA-specific meanings for some of these words and terms 
and defines other words and terms commonly used in the NASA acquisition 
process.



                       Subpart 1802.1--Definitions



Sec. 1802.101  Definitions.

    Administrator means the Administrator or Deputy Administrator of 
NASA.
    Contracting activity in NASA includes the NASA Headquarters 
installation and the following field installations: Ames Research 
Center, Dryden Flight Research Center, Goddard Space Flight Center, 
Johnson Space Center, Kennedy Space Center, Langley Research

[[Page 152]]

Center, Lewis Research Center, Marshall Space Flight Center, Space 
Station Program Office and Stennis Space Center.
    Head of the agency or agency head means the Administrator or Deputy 
Administrator of NASA.
    Head of the contracting activity means, for field installations, the 
Director or other head and, for NASA Headquarters, the Associate 
Administrator for Headquarters Operations.
    Procurement officer means the chief of the contracting office, as 
defined in FAR 2.101.
    Senior Procurement Executive means the Associate Administrator or 
Deputy Associate Administrator for Procurement, Office of Procurement, 
NASA Headquarters (Code H).



PART 1803--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents




                       Subpart 1803.1--Safeguards

Sec.
1803.101  Standards of conduct.
1803.101-1  General.
1803.101-2  Solicitation and acceptance of gratuities by Government 
          personnel.
1803.104  Procurement integrity.
1803.104-4  Definitions.
1803.104-5  Disclosure, protection, and marking of proprietary and 
          source selection information.
1803.104-7  Postemployment restrictions applicable to Government 
          officers and employees serving as procurement officials and 
          certifications required from procurement officials leaving 
          Government service.
1803.104-8  Knowing violations, duty to inquire, and ethics advisory 
          opinions.
1803.104-11  Processing violations or possible violations.
1803.104-12  Ethics program training requirements.

     Subpart 1803.2--Contract or Gratuities to Government Personnel

1803.203  Reporting suspected violations of the Gratuities clause.

        Subpart 1803.3--Reports of Suspected Antitrust Violations

1803.303  Reporting suspected antitrust violations.

            Subpart 1803.5--Other Improper Business Practices

1803.502  Subcontractor kickbacks.

  Subpart 1803.6--Contracts With Government Employees or Organizations 
                       Owned or Controlled by Them

1803.602  Exceptions.

            Subpart 1803.7--Voiding and Rescinding Contracts

1803.704  Policy.
1803.705  Procedures.

Subpart 1803.8--Limitation on the Payment of Funds to Influence Federal 
                              Transactions

1803.804  Policy.
1803.806  Processing suspected violations.

    Authority: 42 U.S.C. 2473(c)(1)

    Source:61 FR 40537, Aug. 5, 1996, unless otherwise noted.



                       Subpart 1803.1--Safeguards

1803.101  Standards of conduct.



Sec. 1803.101-1  General.

    The statutory prohibitions and their application to NASA personnel 
are discussed in NHB 1900.1, Standards of Conduct for NASA Employees, 
and NHB 1900.2, Standards of Conduct for NASA Special Government 
Employees. All NASA personnel involved in acquisitions shall become 
familiar with these statutory prohibitions. Any questions concerning 
them shall be referred to legal counsel. In addition to criminal 
penalties, the statutes provide that transactions entered into in 
violation of these prohibitions are voidable (18 U.S.C. 218).



Sec. 1803.101-2  Solicitation and acceptance of gratuities by Government personnel.

    Any suspected violations shall be reported promptly to the 
installation's Office of Inspector General. (See Standards of Conduct 
for NASA Employees, NHB 1900.1.)
1803.104  Procurement integrity.



Sec. 1803.104-4  Definitions.

    Designated agency ethics official means for Headquarters, the 
General

[[Page 153]]

Counsel, and the Associate General Counsel for General Law, and for each 
center, the Chief Counsel.



Sec. 1803.104-5  Disclosure, protection, and marking of proprietary and source selection information. (NASA supplements paragraphs (c) and (d))

    (c)(i) The originator of information that may be source selection 
information shall consult with the contracting officer or the 
procurement officer, who shall determine whether the information is 
source selection information. NASA personnel responsible for preparing 
material described in FAR 3.104-4(k)(2)(i) through (ix) shall assure 
that the material is marked with the legend in FAR 3.104-5(c) at the 
time the material is prepared.
    (ii) Unless marked with the legend ``SOURCE SELECTION INFORMATION--
SEE FAR 3.104,'' draft specifications, purchase descriptions, and 
statements of work are not considered source selection information and 
may be released during a market survey in order to determine the 
capabilities of potential competitive sources (see FAR subpart 7.1). All 
documents, once released, must remain available to the public until the 
conclusion of the acquisition.
    (d)(1) Government employees serving in the following positions are 
authorized access to proprietary or source selection information, but 
only to the extent necessary to perform their official duties:
    (A) Personnel participating in source evaluation board (SEB) 
procedures under 1870.303, App. I, or personnel evaluating an offeror's 
or bidder's technical or cost proposal under other competitive 
procedures, and personnel evaluating protests.
    (B) Personnel assigned to the contracting office.
    (C) The initiator of the procurement request (to include the 
official having principal technical cognizance over the requirement).
    (D) Small business specialists.
    (E) Personnel assigned to counsel's office.
    (F) Personnel assigned to the Defense Contract Audit Agency and 
contract administration offices of the Department of Defense.
    (G) Personnel responsible for the review and approval of documents 
in accordance with the Master Buy Plan Procedure in subpart 1807.71.
    (H) Other government employees authorized by the contracting 
officer.
    (I) Supervisors, at any level, of the personnel listed in paragraphs 
1803.104-5(d)(1) (A) through (H).
    (J) Duly designated ombudsman.
    (3) For contracts and contract modifications over $100,000, release 
of proprietary or source selection information to another Government 
activity shall be made by a letter citing the obligation under FAR 
3.104-5(d) to maintain a list of persons or classes of persons 
authorized access to proprietary or source selection information and to 
provide the list to the contracting officer for the contract file.




Sec. 1803.104-7  Postemployment restrictions applicable to Government officers and employees serving as procurement officials and certifications required from 
          procurement officials leaving Government service. (NASA 
          supplements paragraph (a))

    (a) The contracting officer shall obtain the following certification 
from any procurement official leaving the Government or transferring to 
another Government agency or any contractor employee serving as a 
procurement official who ceases performance of those duties during the 
conduct of an acquisition expected to result in a contract or 
modification in excess of $100,000.

(Certification)

   Procurement Official Certification Upon Termination of Government 
                                 Service

    I, [Name of procurement official], hereby certify that I understand 
the continuing obligation under Section 27 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 423) not to disclose proprietary or 
source selection information relating to any ongoing acquisition for 
which I have served as a procurement official.
    Signature of procurement official and date ______________
    Identify applicable acquisitions (ones for which awards have not 
been made at the time of the procurement official's departure):
    THIS CERTIFICATION CONCERNS A MATTER WITHIN THE JURISDICTION OF AN 
AGENCY OF THE UNITED STATES

[[Page 154]]

AND THE MAKING OF A FALSE, FICTITIOUS, OR FRAUDULENT CERTIFICATION MAY 
RENDER THE MAKER SUBJECT TO PROSECUTION UNDER TITLE 18, UNITED STATES 
CODE, SECTION 1001.

(End of certification)



Sec. 1803.104-8  Knowing violations, duty to inquire, and ethics advisory opinions.

    When a contracting officer has not been appointed, questions 
regarding whether information is proprietary or source selection 
information shall be referred to the procurement officer.



Sec. 1803.104-11  Processing violations or possible violations. (NASA supplements paragraphs (a), (b) and (f))

    (a)(1) The Procurement Officer is the individual designated to 
receive the contracting officer's report of violations in accordance 
with FAR 3.104-11.
    (b) The head of the contracting activity (HCA) or designee shall 
refer all information describing an actual or possible violation to the 
installation's counsel and inspector general staff and to the Associate 
Administrator for Procurement (Code HS).
    (f) When the HCA or designee determines that award is justified by 
urgent and compelling circumstances or is otherwise in the interest of 
the Government, then that official shall submit a copy of the 
determination to the Associate Administrator for Procurement (Attn: Code 
HS) simultaneous with transmittal to the Administrator.



Sec. 1803.104-12   Ethics program training requirements. (NASA supplements paragraph (a))

    (a)(3) Individuals who will serve as procurement officials shall 
complete either Optional Form 333 or the following certification. The 
Privacy Act Notice is intended for use when either the executed Optional 
Form 333 or the executed certification will be filed in the employee's 
official personnel file and a social security number is needed. When an 
individual's social security number is being requested, Centers may use 
the attached Privacy Act Notice or an appropriate alternative Privacy 
Act Notice. The Privacy Act Notice may be omitted if a social security 
number is not being requested.

(Certification)

      Procurement Integrity Certification for Procurement Officials

    As a condition of serving as a procurement official, I, [Name], 
hereby certify that I am familiar with the provisions of subsections 
27(b), (c), and (e) of the Office of Federal Procurement Policy Act (41 
U.S.C. 423) as amended by section 814 of Public Law 101-189. I further 
certify that I will not engage in any conduct prohibited by such 
subsections and will report immediately to the contracting officer any 
information concerning a violation or possible violation of subsections 
27 (a), (b), (d), or (f) of the Act and applicable implementing 
regulations. A written explanation of subsections 27(a) through (f) has 
been made available to me. I understood that, should I leave the 
Government during the conduct of an acquisition for which I have served 
as a procurement official, I have a continuing obligation under section 
27 not to disclose proprietary or source selection information relating 
to the acquisition and a requirement to so certify.
    I understand that my execution of this certification does not make 
me a procurement official, nor will it be utilized to establish that I 
am a procurement official.
    Signature and date
(End of certification)
(Notice)
Name 

Social Security Number 

              Privacy Act Notice to Employees and Officials

    In accordance with the Privacy Act of 1974, as amended (5 U.S.C. 
552a), the following notice is provided: AUTHORITY FOR COLLECTION OF 
INFORMATION: 41 U.S.C. 423 and Executive Order 9397. Your signature on 
the Procurement Integrity Certification for Procurement Officials and 
disclosure of your Social Security Number are voluntary, but possible 
effects upon you if the certification is not signed and the Social 
Security Number is not provided include the following:
    Disqualification from particular work or duty assignments, or from 
the position for which you have applied or which you currently hold, or 
other appropriate action, or administrative delay in processing your 
certification.
    Principal purpose for collection of this information:
    To obtain and maintain a completed certification from any person 
designated as a ``Procurement Official,'' as defined by 41 U.S.C. 423 
and applicable acquisition regulations.
    Routine uses which may be made of the collected information:
    Transfers to Federal, state, local, or foreign agencies when 
relevant to civil, criminal, administrative, or regulatory 
investigations or proceedings, including transfer to

[[Page 155]]

the Office of Government Ethics in connection with its program oversight 
responsibilities, or pursuant to a request by any appropriate Federal 
agency in connection with hiring, retention, or grievance of an employee 
or applicant, the issuance of a security clearance, the award or 
administration of a contract, the issuance of a license, grant, or other 
benefit, to committees of the Congress, or any other use specified by 
the Office of Personnel Management (OPM) in the system of records 
entitled ``PM/GOT-1. General Personnel Records,'' as published in the 
Federal Register periodically by OPM.

(End of Notice)



     Subpart 1803.2--Contract or Gratuities to Government Personnel



Sec. 1803.203   Reporting suspected violations of the Gratuities clause.

    Any suspected violations of the clause at FAR 52.203-3, Gratuities, 
shall be reported to the installation's Office of Inspector General.



        Subpart 1803.3--Reports of Suspected Antitrust Violations



Sec. 1803.303   Reporting suspected antitrust violations. (NASA supplements paragraphs (b) and (d))

    (b)(i) When offers are received that, in the opinion of the 
contracting officer, indicate possible antitrust violations, the 
contracting officer shall report the circumstances to the General 
Counsel, NASA Headquarters, through the Office of Procurement (Code HS). 
Reports should not be submitted automatically but only when there is 
reason to believe the offers may not have been arrived at independently. 
These reports shall be submitted with conformed copies of bids or 
proposals, contract documents, and other supporting data, and shall set 
forth--
    (A) The noncompetitive pattern or situation under consideration;
    (B) Purchase experience in the same product or service for a 
reasonable period (one or more years) preceding receipt of the offers 
under consideration, including unit and total contract prices and 
abstracts of bids;
    (C) Community of financial interest among offerors, insofar as it is 
known;
    (D) The extent, if any, to which specification requirements or 
patents restrict competition;
    (E) Any information available about the pricing system employed in 
offers believed to reflect noncompetitive practices; and
    (F) Any other pertinent information.
    (ii) Evidence of practices that, in the opinion of he General 
Counsel, NASA Headquarters, may violate the antitrust laws shall be 
forwarded to the Attorney General of the United States (see FAR 3.303).
    (d) The contracting officer shall submit the identical bid report 
required by FAR 3.303(d) to NASA Headquarters, Office of Procurement 
(Code HS). The report shall include the reasons for suspecting 
collusion. Code HS shall forward a copy to the NASA Office of the 
Inspector General.



            Subpart 1803.5--Other Improper Business Practices



Sec. 1803.502   Subcontractor kickbacks.

    Contracting officers shall report suspected violations of the Anti-
Kickback Act in accordance with 1809.470.



  Subpart 1803.6--Contracts With Government Employees or Organizations 
                       Owned or Controlled by Them



Sec. 1803.602   Exceptions.

    The Associate Administrator for Procurement has been delegated the 
authority to authorize an exception to the policy in FAR 3.601. The 
Associate Administrator for Procurement has redelegated this authority 
to the heads of contracting activities (HCAs) for individual actions in 
the aggregate of $100,000 and below, inclusive of follow-on 
acquisitions, with concurrence by the HCA's Office of Chief Counsel. All 
requests above the HCA's authority shall be forwarded to the Associate 
Administrator for Procurement (Code HS) for approval.

[[Page 156]]



            Subpart 1803.7--Voiding and Rescinding Contracts



Sec. 1803.704   Policy. (NASA supplements paragraph (a))

    (a) The Associate Administrator for Procurement has been delegated 
authority to void or rescind contracts when there is a final conviction 
for violation of 18 U.S.C. 201-224 (Bribery, Graft and Conflicts of 
Interest) relating to them.



Sec. 1803.705   Procedures.

    Procurement officers shall make reports to the Associate 
Administrator for Procurement (Code HS). The Associate Administrator for 
Procurement is responsible for the actions, notices, and decisions 
required by FAR 3.705(c), (d), and (e).



Subpart 1803.8--Limitation on the Payment of Funds to Influence Federal 
                              Transactions



Sec. 1803.804  Policy

    Procurement officers shall forward one copy of each Disclosure of 
Lobbying Activities (SF-LLL) furnished pursuant to FAR 3.803 to the 
Office of Procurement (Code HS). The original shall be retained in the 
contract file. Forms shall be submitted semi-annually by April 15th for 
the six-month period ending March 31st, and by October 15th for the 
period ending September 30th.



Sec. 1803.806  Processing suspected violations.

    The Associate Administrator for Procurement (Code HS) is the 
designated official to whom suspected violations of the Act shall be 
referred.



PART 1804--ADMINISTRATIVE MATTERS--Table of Contents




                   Subpart 1804.1--Contract Executive

Sec.
1804.103  Contract clause.
1804.170  Contract effective date.

                  Subpart 1804.2--Contract Distribution

1804.202  Agency distribution requirements.

   Subpart 1804.4--Safeguarding Classified Information Within Industry

1804.402  General.
1804.404-70  Contract clause.
1804.470  Security requirements for unclassified automated information 
          resources.
1804.470-1  Scope.
1804.470-2  Policy.
1804.470-3  Contract clauses.

                   Subpart 1804.6--Contract Reporting

1804.601  Record requirements.
1804.602  Federal Procurement Data System.
1804.670  Individual Procurement Action Report (NASA Form 507 series).
1804.670-1  Applicability and coverage.
1804.670-2  Submission due date.
1804.670-3  Preparing Individual Procurement Action Reports (NASA Forms 
          507, 507A, 507B, 507G, and 507M).
1804.671  Committee on Academic Science and Engineering (C.A.S.E.) 
          Report.

                Subpart 1804.8--Government Contract Files

1804.802-70  Handling of classified material.
1804.803  Contents of contract files.
1804.803-70  Checklist.
1804.804  Closeout of contract files.
1804.804-2  Closeout of the contracting office files if another office 
          administers the contract.
1804.804-5 Detailed procedures for closing out contract files.
1804.805  Storage, handling, and disposal of contract files.
1804.805-70  Review, separation, and retirement of contract files.

     Subpart 1804.70--Transfer of Contracting Office Responsibility

1804.7000  Scope of subpart.
1804.7001  Definition.
1804.7002  Approval of transfer requests.
1804.7003  Responsibilities of the contracting officer of the 
          transferring installation.
1804.7003-1  Coordinations.
1804.7003-2  File inventory.
1804.7003-3  Notifications.
1804.7003-4  Transfer.
1804.7003-5  Retention documentation.
1804.7004  Responsibilities of the contracting officer of the receiving 
          installation.
1804.7004-1  Pre-transfer file review.
1804.7004-2  Post-transfer actions.

     Subpart 1804.71--Uniform Acquisition Instrument Identification

1804.7100  Scope of subpart.
1804.7101  Policy.
1804.7102  Prefixes.
1804.7103  Serial numbers.
1804.7104  Modifications of contracts or agreements.

[[Page 157]]

     Subpart 1804.72--Review and Approval of Contractual Instruments

1804.7200  Contract review by Headquarters.

                  Subpart 1804.73--Procurement Requests

1804.7301  General.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 61 FR 40539, Aug. 5, 1996, unless otherwise noted.



                   Subpart 1804.1--Contract Execution



Sec. 1804.103  Contract clause.

    The contracting officer shall include the clause at FAR 52.204-1, 
Approval of Contract, in solicitations, contracts, and supplemental 
agreements that require higher level approval. For actions requiring 
Headquarters approval, insert ``NASA Associate Administrator for 
Procurement'' in the clause's blank space.



Sec. 1804.170  Contract effective date.

    (a) Contract effective date means the date agreed upon by the 
parties for beginning the period of performance under the contract. In 
no case shall the effective date precede the date on which the 
contracting officer or designated higher approval authority signs the 
document.
    (b) Costs incurred before the contract effective date are 
unallowable unless they qualify as precontract costs (see FAR 31.205-32) 
and the clause prescribed at 1831.205-70 is used.



                  Subpart 1804.2--Contract Distribution



Sec. 1804.202  Agency distribution requirements

    In addition to the requirements in FAR 4.201, the contracting 
officer shall distribute one copy of each R&D contract, including the 
Statement of Work, to the NASA Center for AeroSpace Information (CASI), 
Attention: Document Processing Section, 800 Elkridge Landing Road, 
Linthicum Heights, MD 21090-2934.



   Subpart 1804.4--Safeguarding Classified Information Within Industry



Sec. 1804.402  General. (NASA supplements paragraph (b))

    (b) NASA industrial security policies and procedures are prescribed 
in NMI 1600.2, NASA Security Program. (See also 1842.202-72).



Sec. 1804.404-70  Contract clause.

    The contracting officer shall insert the clause at 1852.204-75, 
Security Classification Requirements, in solicitations and contracts if 
work is to be performed will require security clearances. This clause 
may be modified to add instructions for obtaining security clearances 
and access to security areas that are applicable to the particular 
acquisition and installation.
1804.470  Security requirements for unclassified automated information 
resources.



Sec. 1804.470-1  Scope.

    This section implements the acquisition-related aspects of Federal 
policies for assuring the security of unclassified automated information 
resources.



Sec. 1804.470-2  Policy.

    NASA policies and procedures on automated information security are 
prescribed in NMI 2410.7, Assuring the Security and Integrity of NASA 
Automated Information Resources, and in NHB 2410.9, NASA Automated 
Information Security Handbook, Chapters 3 and 4. Security requirements 
for safeguarding sensitive information in unclassified Federal computer 
systems are required in:
    (a) Contracts for automatic data processing equipment, software, the 
management or operation of Data Processing Installations (DPIs) or 
related services; and
    (b) Contracts under which contractor personnel must have physical or 
electronic access to sensitive automated information, or automated 
information that supports mission-critical functions.

[[Page 158]]



Sec. 1804.470-3  Contract clauses.

    The contracting officer shall insert the clause substantially as 
stated at 1852.204-76, Security Requirements for Unclassified Automated 
Information Resources, in solicitations and contracts involving 
unclassified automated information resources. Paragraph (a) of the 
clause shall be completed with information supplied by the cognizant 
requiring activity.



                   Subpart 1804.6--Contract Reporting



Sec. 1804.601  Record requirements.

    The Headquarters Office of Procurement (Code HC) is responsible for 
meeting the requirements of FAR 4.601, based on installation submission 
of Individual Procurement Action Reports (NASA Form 507 series) data.



Sec. 1804.602  Federal Procurement Data System. (NASA supplements paragraph (d))

    (d) Code HC is responsible for requesting, obtaining, and reporting 
Contractor Establishment Codes to the FPDS.



Sec. 1804.670  Individual Procurement Action Report (NASA Form 507 series).

    The Individual Procurement Action Report and Supplements (NASA Form 
507 series) provide essential procurement records and statistics through 
a single uniform reporting program as a basis for required recurring and 
special reports to Congress, Federal Procurement Data Center, and other 
Federal agencies. The preparation and utilization of the NASA Form 507 
series are integral parts of the agencywide Financial and Contractual 
Status (FACS) system.



Sec. Sec. 1804.670-1  Applicability and coverage.

    The following procurement actions are individually reportable and 
require the completion of one or more of the forms in the 507 series.
    (a) Initial basic procurements. (1) All contracts, regardless of 
dollar obligation amount.
    (2) All grants, cooperative agreements, and funded Space Act 
agreements.
    (3) Intragovernmental procurements and purchase orders when the 
initial value is more than $25,000.
    (4) All purchase orders for advisory and assistance services.
    (5) Purchase orders of $25,000 or less for services within the four 
designated industry groups identified at FAR 19.1005(a) under the Small 
Business Competitiveness Demonstration Program. (These actions are not 
FACS reportable, but are required for FPDS reports.)
    (b) Modifications. Modifications that
    (1) Obligate or deobligate funds, regardless of dollar amount,
    (2) Change the estimated cost and/or fee,
    (3) Extend the completion date, or
    (4) Add or change procurement statistics previously reported.



Sec. 1804.670-2  Submission due date.

    The FACS report shall have information as of the last day of the 
month and shall arrive in NASA Headquarters not later than the close of 
business on the fifth work day following each month being reported. The 
installation procurement officer should establish an agreement with the 
installation financial officer on a cut-off date for processing 
contractual documents to ensure that the FACS procurement submission and 
the FACS financial submission for the month include the same contracts.



Sec. 1804.670-3  Preparing Individual Procurement Action Reports (NASA Forms 507, 507A, 507B, 507G, and 507M).

    (a) The information required by the following forms shall be 
provided when submitting individual Procurement Action Reports:
    (1) New contract awards--NASA Forms 507, 507A, and 507B.
    (2) New grants, cooperative agreements, funded Space Act agreements, 
intragovernmental agreements, and orders against federal supply 
schedules--NASA Forms 507G and 507B.
    (3) Modifications to any procurement action--NASA Forms 507M and, if 
necessary, 507B.

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    (b) The NASA Forms 507 series shall be prepared in accordance with 
instructions issued by Code HC. These instructions will be issued and 
updated through Procurement Information Circulars (PICs).



Sec. 1804.671  Committee on Academic Science and Engineering (C.A.S.E.) Report.

    NASA Form 1356, C.A.S.E. Report on College and University Projects, 
shall be prepared for awards to nonprofit institutions of higher 
education or to nonprofit institutions that are operationally affiliated 
or integrated with an educational institution. Information on this form 
is used to produce reports required by the National Science Foundation 
and to respond to inquiries. Submission is required regardless of 
instrument type (contract, grant, cooperative agreement, or funded Space 
Act agreement) and type of proposal (solicited or unsolicited). 
Instructions appear on the form itself and constitute the detailed 
guidance for preparation and submission. The form, which is either 
included with the acquisition package or initiated by the contracting 
office, shall be completed, reviewed, and promptly forwarded upon award 
to the Headquarters Office of Human Resources and Education (Code FET).



                Subpart 1804.8--Government Contract Files



Sec. 1804.802-70  Handling of classified material.

    When a contract is unclassified, classified material relating to 
that contract shall be maintained in a separate file folder and 
container, and the unclassified folder shall be marked to indicate the 
location of the classified material. The front and back of each folder 
containing classified material shall be marked with the highest 
classification assigned to any document in the folder.
1804.803  Contents of contract files.



Sec. 1804.803-70  Checklist.

    NASA Form 1098, Checklist for Contract Award File Content, shall be 
used as the ``top page'' in contract files.
1804.804  Closeout of contract files.



Sec. 1804.804-2  Closeout of the contracting office files if another office administers the contract. (NASA supplements paragraph (b))

    (b) Upon receiving the NASA Form 1611 or DD Form 1594, Contract 
Completion Statement, from the contract administration office and 
complying with FAR 4.804-2(b), the contracting officer shall complete 
the form.



Sec. 1804.804-5  Detailed procedures for closing out contract files. (NASA supplements paragraphs (a) and (b))

    (a) When the contracting office retains contract administration 
(excluding acquisitions under the simplified acquisition threshold), the 
contracting officer shall comply with FAR 4.804-5(a) by completing NASA 
Form 1612, Contract Closeout Checklist, and DD Form 1593, Contract 
Administration Completion Record.
    (b) To comply with FAR 4.804-5(b), the contracting officer shall 
complete NASA Form 1611 or DD Form 1594, Contract Completion Statement, 
except for acquisitions under the simplified acquisition threshold.



Sec. 1804.805  Storage, handling, and disposal of contract files. (NASA supplements paragraph (a))

    (a) See NHB 1441.1, NASA Records Disposition Handbook.



Sec. 1804.805-70  Review, separation, and retirement of contract files.

    (a) Upon determination of contract completion under the procedures 
outlined in 1804.804, each office shall remove the official contract 
files from the active file series, mark each file folder with 
``Completed (Date)'', and place the folder in a completed (inactive) 
contract file series. Separate series should be established for 
contracts of $25,000 or less and for contracts of more than $25,000, to 
facilitate later disposal. Any original or official file copies of 
documents contained in duplicate or ``working'' contract files shall be 
removed and placed in the appropriate official file; any remaining 
material in the duplicate or ``working'' file shall be destroyed 
immediately or

[[Page 160]]

segregated and marked for early disposal.
    (b) Each office shall review contractor ``general'' files (i.e., a 
file containing documents relating generally to a contractor rather than 
a specific contract) at least once annually and remove documents that--
    (1) Are obsolete or superseded documents relating generally to the 
contractor (e.g., documents no longer pertinent to any aspect of a 
contractor's current or future capability, performance, or programs, and 
documents relating to a contractor that is no longer a possible source 
of supplies, services, or technical assistance) and dispose of the 
documents as authorized in 1804.805; or
    (2) Pertain only to completed contracts. Place those files that are 
not routine in nature in inactive files for later disposal, and 
immediately dispose of routine documents as authorized in NHB 1441.1, 
NASA Records Disposition Handbook.



     Subpart 1804.70--Transfer of Contracting Office Responsibility



Sec. 1804.7000  Scope of subpart.

    This subpart contains policies and procedures applicable to the 
transfer of contracts between NASA installations.



Sec. 1804.7001  Definition.

    Transfer of a contract, as used in this subpart, means that process 
whereby a contract and all future responsibility for a contract held by 
one installation are transferred or reassigned in writing to another 
installation.



Sec. 1804.7002  Approval of transfer requests.

    (a) The approval authority for requests to transfer a contract is 
the official in charge of the cognizant Headquarters program office or 
designee. Requests for approval shall be submitted by the director of 
the transferring installation after receiving the concurrence of the 
director of the receiving installation. Concurrence of the Associate 
Deputy Administrator (Code AI) is also required for a transfer where an 
installation's roles and missions may be affected.
    (b) Approval of a program transfer by the cognizant Headquarters 
official constitutes approval to transfer program-related contracts.
1804.7003  Responsibilities of the contracting officer of the 
transferring installation.



Sec. 1804.7003-1  Coordinations.

    The contracting officer of the transferring installation shall take 
the following steps before transferring the contract:
    (a) Agree on a plan and schedule with the contracting officer of the 
receiving installation for transferring contract responsibility and 
contract files.
    (b) Coordinate with the following offices:
    (1) Financial Management Office, to determine the contract financial 
records to be transferred and the method, timing, and dollar amount of 
such transfers.
    (2) Technical (Engineering and Project) Office, to determine the 
status of any outstanding engineering changes.
    (3) Reliability and Quality Assurance Office, to determine status 
and method of transferring the reliability and quality assurance 
functions.
    (4) Industrial Property and Facilities Office, to determine the 
method of transferring the Government property records.
    (5) Transportation Office, to determine the status of bills of 
lading furnished the contractor.
    (6) Security Office, to determine whether any classified material is 
outstanding and whether special precautions are necessary during the 
transfer process.
    (7) Other organizational elements, to determine the status of any 
other actions such as new technology, materials reports, PERT, and 
safety.



Sec. 1804.7003-2  File inventory.

    The contracting officer of the transferring installation shall 
prepare an inventory of the contract file. This inventory shall also 
include a separate listing of all outstanding requests for contract 
administration assistance issued to other Government agencies, 
indicating the name and address of the

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agency office, functions requested to be performed, estimated cost of 
the services, and estimated reimbursement due the administration agency 
for the services yet to be performed for each requested function. Copies 
of this inventory shall be provided to the contracting officer of the 
receiving installation.



Sec. 1804.7003-3  Notifications.

    The contracting officer of the transferring installation shall 
provide written notification of the planned transfer to the contractor 
and all agencies performing or requested to perform administration 
services.



Sec. 1804.7003-4  Transfer.

    (a) Upon completion of the actions described in 1804.7003-1 through 
1804.7003-3, the contracting officer of the transferring installation 
shall issue a letter to the contractor, agencies performing contract 
administration functions, contracting officer representatives, and the 
contracting officer of the receiving installation. This letter shall 
provide notification of the transfer date, termination of appointment of 
the contracting officer's representatives, and the name, mailing 
address, and telephone number of the contracting officer of the 
receiving installation.
    (b) After issuing the letters described in 1804.7003-4(a), the 
contracting officer of the transferring installation shall send the 
contract file to the contracting officer of the receiving installation 
with a letter transferring contract responsibility. This letter shall 
contain a provision for acceptance of the responsibility for the 
contract and its related files by the contracting officer of the 
receiving installation.



Sec. 1804.7003-5  Retention documentation.

    The contracting officer of the transferring installation shall 
retain for permanent file a copy of the approvals and concurrences 
required by 1804.7002, the transfer acceptance letter of the contracting 
officer of the receiving installation, and any additional documents 
necessary for a complete summary of the transfer action.
1804.7004  Responsibilities of the contracting officer of the receiving 
installation.



Sec. 1804.7004-1  Pre-transfer file review.

    The contracting officer of the receiving installation shall review 
the contract, letters of request, actions in process, and other related 
files and to request corrective action, if necessary, before the 
official transfer of the contract. This review may be waived by written 
notification to the contracting officer of the transferring 
installation.



Sec. 1804.7004-2  Post-transfer actions.

    The contracting officer of the receiving installation shall--
    (a) Provide the contracting officer of the transferring installation 
written acceptance of contract responsibility and receipt of the 
contract files;
    (b) Inform all offices affected within the installation of the 
receipt of the contract;
    (c) Appoint new contracting officer's technical representatives, as 
necessary;
    (d) Issue a contract modification to provide for the administrative 
changes resulting from the transfer action (e.g., identifying offices 
responsible for performing contract administration and making payment 
and the office to which vouchers, reports, and data are to be 
submitted);
    (e) Provide copies of the contract documents to affected 
installation offices; and
    (f) If appropriate, supplement the letter of request to the 
Government agency providing contract administration services to reflect 
the changes resulting from the transfer action. The supplement may 
terminate or amend an existing contract administration support 
arrangement or may request support in additional areas.



     Subpart 1804.71--Uniform Acquisition Instrument Identification



Sec. 1804.7100  Scope of subpart.

    This subpart contains the procedures for uniform numbering of NASA 
solicitations, contracts (including letter contracts), purchase orders 
(including requests to other Government agencies), basic ordering 
agreements, other

[[Page 162]]

agreements between the parties involving the payment of appropriated 
funds or collection of funds for credit to the Treasury of the United 
States, and modifications or supplements to these instruments.



Sec. 1804.7101  Policy.

    (a) Contractual documents shall be numbered with approved prefixes 
and serial numbers as prescribed in this subpart. If other 
identification is required for center purposes, it shall be placed on 
the document in such a location as to clearly separate it from the 
identification number.
    (b) The identification number shall consist of not more than 11 
alpha-numeric characters positioned as prescribed in this subpart and 
shall be retained unchanged for the life of the particular instrument.



Sec. 1804.7102  Prefixes.

    (a) Approved prefixes are as follows:

------------------------------------------------------------------------
                                                         Purchase order 
            Installation              Contract prefix        prefix     
------------------------------------------------------------------------
Ames Research Center...............  NAS 2............  A               
Dryden Flight Research Center......  NAS 4............  E               
Goddard Space Flight Center........  NAS 5............  S               
Headquarters.......................  NASW.............  W               
Lyndon B. Johnson Space Center.....  NAS 9............  T               
John F. Kennedy Space Center.......  NAS10............  CC              
Langley Research Center............  NAS 1............  L               
Lewis Research Center..............  NAS 3............  C               
George C. Marshall Space Flight      NAS 8............  H               
 Center.                                                                
NASA Management Office-JPL.........  NAS 7............  WO              
John C. Stennis Space Center.......  NAS13............  NS              
Space Station Program Office.......  NAS15............  K               
------------------------------------------------------------------------

    (b) The contract prefix shall be used for the following documents:
    (1) Contracts, including letter contracts, indefinite-delivery 
contracts, utilities, leases of real property and renewals.
    (2) Easements.
    (3) Basic ordering agreements.
    (4) Other written agreements involving payment or receipt of funds 
not covered by 1804.7102(e).
    (c) Contracts totally funded under reimbursable arrangements with 
the department of Energy shall use a DEN prefix instead of the NAS 
prefix (e.g., DEN 8 for Marshall).
    (d) Space Act agreements awarded under the authority of Section 
203(c)(5) or 203(c)(6) of the Space Act shall use an NCA prefix instead 
of the NAS prefix (e.g., NCA 8 for Marshall).
    (e) The purchase order prefix shall be used for purchase orders 
(including blanket purchase agreements) and requests to other Government 
agencies to furnish supplies or services.
    (f) Solicitations shall be numbered in accordance with installation 
procedures, except that in all cases the identifying number shall begin 
with the portion of the installation's contract prefix following 
``NAS.''
    (g) If a prefix is required for an installation or office not listed 
in this section, a request for a prefix assignment shall be submitted to 
the Headquarters Office of Procurement (Code HC).



Sec. 1804.7103  Serial numbers.

    (a) Installations shall number contracts and agreements identified 
in 1804.7102(b) serially by fiscal year. The serial number shall be five 
digits beginning with a two-digit fiscal year identifier followed by a 
three digits commencing with ``001'' and continuing in succession. For 
example, the first contracts awarded by Ames Research Center in fiscal 
year 1997 shall be numbered NAS 2 97001 and NAS 2 97002. Fiscal year 
identification is optional for Space Act agreements.
    (b) Serial number for purchase orders shall be assigned serially 
without fiscal year identification. When the series of numbers exceeds 
five digits (over 99,999), a new series shall be used, beginning the 
series with number ``1'' and followed by the capital letter ``A.'' 
Should additional series become necessary, they will be distinguished by 
the capital letters ``B,'' ``C,'' and so forth, as may be required, 
except that the letters ``I'' and ``O'' shall not be used.



Sec. 1804.7104  Modifications of contracts or agreements.

    (a) Modifications of definitive or letter contracts or agreements 
shall (1) bear the same identification as the contract or agreement 
being modified and (2) be numbered consecutively for each contract or 
agreement, beginning with Modification Number 1, regardless

[[Page 163]]

of whether the modification is accomplished by unilateral or bilateral 
action. Except for termination notices, modifications shall be effected 
by the use of Standard Form 30, Amendment of Solicitation/Modification 
of Contract.
    (b) Definitive contracts superseding letter contracts shall retain 
the same contract number as that originally assigned to the letter 
contract. Actions definitizing letter contracts are considered 
modifications and shall be assigned modification numbers in accordance 
with paragraph (a) of this section.



     Subpart 1804.72--Review and Approval of Contractual Instruments



Sec. 1804.7200  Contact review by Headquarters.

    (a) Requests for approval of contracts and supplemental agreements 
by the Associate Administrator for Procurement shall be submitted to the 
Headquarters Office of Procurement (Code HS) in sufficient time to allow 
a minimum of 15 days for review.
    (b) Each request for approval shall be accompanied by (1) five 
copies of the contractual document, one of which has been executed by 
the contractor and contracting officer, and (2) the official contract 
file containing the appropriate documentation as set forth in FAR 
4.803(a). However, for the items specified in FAR 4.803(a) (10), (11), 
and (12), the contracting officer shall provide documentation pertaining 
only to the successful offeror; and, in lieu of the items specified in 
FAR 4.803(a)(26) (ii) and (iii), the contracting officer shall provide 
an index briefly describing the content of all previous modifications.
    (c) The approval required under this section shall be made by 
signature of the Associate Administrator for Procurement on the 
contract/supplemental agreement.



                  Subpart 1804.73--Procurement Requests



Sec. 1804.7301  General.

    Except in unusual circumstances, the contracting office shall not 
issue solicitations until an approved procurement request, containing a 
certification that funds are available, has been received. However, the 
contracting office may take all necessary actions up to the point of 
contract obligation before receipt of the approved procurement request 
certifying that funds are available when--
    (a) Such action is necessary to meet critical program schedules;
    (b) Program authority has been issued and funds to cover the 
procurement will be available prior to the date set for contract award 
or contract modification; and
    (c) The procurement officer authorizes such action in writing before 
solicitation issuance.
    (d) The solicitation includes the clause at FAR 52.232-18, 
Availability of Funds. The clause shall be deleted from the resultant 
contract.

[[Page 164]]



           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING





PART 1805--PUBLICIZING CONTRACT ACTIONS--Table of Contents




              Subpart 1805.1--Dissemination of Information

Sec.
1805.101  Methods of disseminating information.

             Subpart 1805.2--Synopses of Proposed Contracts

1805.201  General.
1805.205  Special situations.
1805.207  Preparation and transmittal of synopses.
1805.207-70  Synopses of Architect-Engineer Services and Federal 
          Information Processing Resources.

               Subpart 1805.3--Synopses of Contract Awards

1805.303  Announcement of contract awards.
1805.303-70  NASA Headquarters public announcement.
1805.303-71  Notification to the Administrator of significant 
          procurement actions.

                 Subpart 1805.4--Release of Information

1805.402  General public.
1805.403  Requests from Members of Congress.

                   Subpart 1805.5--Paid Advertisements

1805.502  Authority.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 61 FR 40543, Aug. 5, 1996, unless otherwise noted.



              Subpart 1805.1--Dissemination of Information



Sec. 1805.101  Methods of disseminating information. (NASA supplements paragraph (b))

    (b)(4) For NASA policy regarding paid advertisements, see 1805.502.



             Subpart 1805.2--Synopses of Proposed Contracts



Sec. 1805.201  General. (NASA supplements paragraph (a))

    (a)(i) Except for acquisitions described in (a)(ii) of this section, 
a copy of each synopsis shall be made available on the Internet as well 
as published in the CBD.
    (ii) Midrange acquisitions (see part 1871) with annual values of up 
to $500,000 shall be made available only on the Internet.



Sec. 1805.205  Special situations. (NASA supplements paragraph (a))

    (a) Potential sources responding to R&D advance notices shall be 
added to the appropriate solicitation mailing list for the subsequent 
solicitation and, if they do not appear on the solicitation mailing 
lists established in accordance with FAR 14.205-1, shall be requested to 
submit Standard Form 129, Solicitation Mailing List Application. 
Responding sources on established lists may be requested to submit 
amended applications in order to reflect their current capabilities.
1805.207  Preparation and transmittal of synopses.



Sec. 1805.207-70  Synopses of Architect-Engineer Services and Federal Information Processing Resources.

    (a) Architect-engineering services. (1) Each notice publicizing the 
acquisition of architect-engineer services shall be headed ``C. 
Architect-Engineer Services.''
    (2) In addition to meeting the requirements of FAR 5.207(c), the 
project description shall--
    (i) State the relative importance the Government attaches to the 
significant evaluation criteria and the date by which responses to the 
notice must be received, including submission of Standard Form 255, 
Architect-Engineer and Related Services Questionnaire for Specific 
Project, if required;
    (ii) Describe any specialized qualifications, security 
classifications, and

[[Page 165]]

limitations on eligibility for consideration;
    (iii) Describe qualifications or performance data required from 
architect-engineer firms; and
    (iv) If the acquisition is to be set aside for small business, state 
this fact, indicating the specific size standard to be used and 
requiring that eligible responding firms submit a small business 
representation.
    (3) Contracting officers shall add at the end of the synopsis:

    See Note 24. Provisions of Note 24 apply to this notice except that 
(a) in the sentence beginning ``Selection of firms for negotiations,'' 
the fourth additional consideration listed is changed to read: ``(4) 
past experience, if any, of the firm with respect to performance on 
contracts with NASA, other Government agencies, and private industry;'' 
and (b) in the last sentence, ``National Aeronautics and Space 
Administration'' is substituted for ``Department of Defense.''

    (b) Federal Information Processing (FIP) Resources. (1) When total 
requirement quantities are expected to satisfy the needs of only a 
single field installation, each notice publicizing the acquisition of 
FIP resources under an indefinite delivery/idenfinite quantity contract 
or under a contract that includes options for additional quantities of 
such resources shall include the following:

    The ____ (identify contracting activity) is the primary delivery 
point for the items described in this synopsis. However, NASA may order 
delivery to the following alternate locations: ____ (List other NASA 
installations and their locations).

    (2) When the contemplated contract will authorize orders from 
locations other than the awarding installation, the notice shall fully 
describe the ordering scope.



               Subpart 1805.3--Synopses of Contract Awards



Sec. 1805.303  Announcement of contract awards. (NASA supplements paragraph (a))

    (a)(i) In lieu of the $3 million threshold cited in FAR 5.303(a), 
NASA Headquarters public announcement is required for award of contract 
actions that have a total anticipated value, excluding unexercised 
options, of $25 million or greater. This threshold applies to new 
awards, contract modifications, and option exercises, but not to 
incremental funding or cost overrun modifications.
    (A) For undefinitized contract actions, the not-to-exceed (NTE) or 
ceiling price value is the face value.
    (B) For indefinite delivery, time and material, labor hour, and 
similar contracts, the estimated amount of the basic contract is the 
face value. Individual orders up to the face value shall not be 
announced regardless of value. However, after the face value is reached, 
any subsequent modifications or orders of $25 million or greater must be 
announced.
    (ii) NASA Headquarters public announcement is also required for 
award of a contract action with a value of less than $25 million if the 
contracting officer believes it to have Agency public information 
implications.
    (iii) Contractual instruments requiring Headquarters public 
announcement shall not be distributed nor shall any source outside NASA 
be notified of their status until the public announcement procedures in 
1805.303-70 have been completed.



Sec. 1805.303-70  NASA Headquarters public announcement.

    (a) For those contract actions requiring Headquarters public 
announcement in accordance with 1805.303, the contracting officer shall 
furnish a draft news release including the following information, 
through the installation Public Affairs Office, via facsimile 
transmission to the Headquarters Office of Public Affairs, News and 
Imaging Branch (Code PM):
    (1) A brief description of the work, including identification of the 
program and project;
    (2) Identification of the contract action as either a new contract 
or additional work of services under an existing contract;
    (3) Contract type. For undefinitized contract actions, identify the 
planned contract type of the definitized instrument;
    (4) The dollar amount authorized for the instant action and the 
estimated

[[Page 166]]

total cost of the contract if this is different. For undefinitized 
contract actions, indicate the NTE or ceiling price amount;
    (5) Name and address (including zip code) of the contractor;
    (6) Principal work performance locations;
    (7) Names and addresses of any unsuccessful offerors.
    (b) The information in paragraph (a) of this section shall be 
provided to Code PM before transmitting a letter contract to a 
contractor for signature. For actions other than letter contracts, the 
information should be transmitted to Code PM after contractor signature, 
if applicable, no later than 48 hours before the planned award.
    (c) For contract actions requiring Headquarters approval in 
accordance with 1804.72, the draft news release required by paragraph 
(a) of this section shall be provided to the Headquarters Office of 
Procurement (Code HS) with the request for approval. Code HS will 
forward the information to Code PM after approval.
    (d) Code PM will advise the installation Public Affairs Office of 
the date public announcement of the contract action will be made. 
Installations may proceed with award and local release of the 
information no earlier than 4:00 p.m. ET of the date Code PM makes 
public announcement. If earlier award is considered appropriate, 
installations must request authorization from the Associate 
Administrator for Procurement (Code HS).



Sec. 1805.303-71  Notification to the Administrator of significant procurement actions.

    (a) In addition to the public announcement requirements described in 
1805.303-70, contracting officers shall notify the Administrator of the 
following procurement actions at least five (5) workdays prior to 
planned public announcement of the actions:
    (1) Planned contract award for competitive acquisitions of $25 
million or more, including all priced options.
    (2) Planned contract award of non-competitive awards and new work 
modifications of $100 million or more, including all priced options.
    (3) Planned award of other procurement actions at any dollar value 
thought to be of significant interest to Headquarters.
    (b) To provide notification to the Administrator, the contracting 
officer shall send the information listed in paragraphs (b) (1) through 
(10) of this subsection to the Headquarters Office of Procurement (Code 
HS) via facsimile transmission (202-358-4065). Immediately prior to 
transmission, the contracting officer shall notify Code HS by telephone 
(202-358-2080) of the impending transmission. In accordance with FAR 
3.104-5(c), the contracting officer shall mark all pages that include 
source selection information with the legend ``SOURCE SELECTION 
INFORMATION--SEE FAR 3.104.'' The following information shall be sent:
    (1) Title and a brief nontechnical description of the work, 
including identification of the program or project;
    (2) Identification of the contract action as either a new contract 
or additional supplies or services under an existing contract;
    (3) Contract type (including whether a cost contract is completion 
or level-of-effort). For undefinitized contract actions, identify the 
planned contract type of the definitized instrument;
    (4) The total contract value for the instant action including all 
priced options. Also include the Government's most probable cost. For 
undefinitized contract actions, indicate the NTE or ceiling price 
amount;
    (5) The name, address, and business size status of the prime 
contractor and each major (over $1M) subcontractor;
    (6) Small business and small disadvantaged business subcontracting 
goals both in dollars and percentage of the value of the action 
including all options;
    (7) Principal work performance locations;
    (8) Brief description of any unusual circumstances;
    (9) The names and telephone numbers of the contracting officer and 
project manager; and
    (10) For competitive selections only, provide on a separate 
attachment the names and addresses of all unsuccessful offerors and a 
brief explanation of the general basis for the selection.

[[Page 167]]

    (c) The field installation shall not proceed with any awards or 
announcements until Code HS has advised that the Administrator has been 
notified of the proposed action and the supporting information. Once 
this advice is received from Code HS, the field installation shall 
proceed with the public announcement procedures described in 1805.303-
70.



                 Subpart 1805.4--Release of Information



Sec. 1805.402   General public. (NASA paragraphs (1) and (2))

    (1) Unless the head of the contracting activity determines that 
disclosure would be prejudicial to the interests of NASA, installation 
Public Affairs Offices may make public the following information on NASA 
acquisitions:
    (i) The names of firms invited to submit offers;
    (ii) The names of firms that attended any pre-bid or pre-proposal 
conference; and
    (iii) The names of firms that submitted offers.
    (2) Other requests for information under the Freedom of Information 
Act shall be processed in accordance with FAR 24.2 and 1824.2.



Sec. 1805.403   Requests from Members of Congress. (NASA supplements paragraph (a))

    (a) All proposed replies to congressional inquiries shall be 
prepared and forwarded, with full documentation, to the Headquarters 
Office of Legislative Affairs (Code L) for approval and release.



                   Subpart 1805.5--Paid Advertisements



Sec. 1805.502   Authority.

    Use of paid advertisements for procurement purposes (except CBD 
announcements) is not authorized in NASA.



PART 1806--COMPETITION REQUIREMENTS--Table of Contents




  Subpart 1806.2--Full and Open Competition After Exclusion of Sources

Sec.
1806.202  Establishing or maintaining alternative sources.
1806.202-70  Formats.

          Subpart 1806.3--Other Than Full and Open Competition

1806.302  Circumstances permitting other than full and open competition.
1806.302-4  International agreement.
1806.302-470  Documentation.
1806.302-7  Public interest.
1806.303  Justifications.
1806.303-1  Requirements.
1806.303-170  Sole-source purchases by contractors.
1806.303.2  Content.
1806.303-270  Use of unusual and compelling urgency authority.
1806.304-70  Approval of NASA justifications.

                  Subpart 1806.5--Competition Advocates

1806.501  Requirement.
1806.502  Duties and responsibilities.

Authority: 42 U.S.C. 2473(c)(1).

    Source: 61 FR 40545, Aug. 5, 1996, unless otherwise noted.



  Subpart 1806.2--Full and Open Competition After Exclusion of Sources



Sec. 1806.202   Establishing or maintaining alternative sources. (NASA supplements paragraphs (a) and (b))

    (a) The authority of FAR 6.202 is to be used to totally or partially 
exclude a particular source.
    (b) The supporting data and the D&F must name the source to be 
excluded and shall include the following information as applicable and 
any other relevant information:
    (i) The specific purpose to be served in excluding the source as 
enumerated in FAR 6.202(a).
    (ii) The acquisition history of the supplies or services, including 
sources, prices, quantities, and dates of award.
    (iii) The circumstances making it necessary to exclude a particular 
source from the contract action:

[[Page 168]]

    (A) Reasons for lack of sources; e.g., the technical complexity and 
criticality of the item.
    (B) Current annual requirement and prospective needs for the 
supplies and services.
    (C) Projected future requirements.
    (iv) Whether the existing source must be totally excluded from the 
action or whether a partial exclusion is sufficient.
    (v) The potential effect of exclusion on the excluded source in 
terms of any loss of capability to furnish the supplies or services in 
subsequent contract actions.
    (vi) When the authority of FAR 6.202(a)(1) is cited, the basis for--
    (A) Assumptions regarding future competition; and
    (B) The determination that exclusion of a particular source will 
likely result in reduced overall costs for anticipated future 
acquisitions, including (as a minimum) discussion of start-up costs, 
costs associated with facilities, duplicative administration costs (such 
as for additional inspection or testing), economic order quantities, and 
life-cycle-cost considerations.
    (vii) When an additional source or additional sources must be 
established to provide production capacity to meet current and 
mobilization requirements--
    (A) The current annual and the mobilization requirements for the 
item, citing the source of, or the basis for, the planning data;
    (B) A comparison of current production capacity with current and 
mobilization requirements; and
    (C) The hazards of relying on the present source and the time 
required for new sources to acquire the necessary facilities and skills 
and achieve the production capacity necessary to meet requirements.



Sec. Sec. 1806.202-70   Formats.

    A sample format for D&Fs citing the authority of FAR 6.202(a) 
follows:

   Natonal Aeronautics and Space Administration, Washington, DC 20546

                       Determination and Findings

                      Authority to Exclude a Source

    On the basis of following findings and determination, which I make 
under the authority of 10 U.S.C. 2304(b)(1) as implemented by FAR 6.202, 
the proposed contract action described below may be awarded using full 
and open competition after exclusion of______(1).

                                Findings

    1. It is proposed that the following requirement be acquired using 
full and open competition after exclusion of the source identified 
above.
    2. The source identified above can be expected to receive an award 
for this requirement unless excluded.
    3. It is necessary to establish or maintain an alternative source or 
sources.
    4. The exclusion of this source will increase or maintain 
competition and is likely to result in reduction of ______(2) in overall 
costs for any anticipated acquisition of the supplies or services being 
acquired. This estimate is based on ______ (3).
    (See Note 4 for the use of Alternates I and II below.)
    Alternate I: The exclusion of this source will serve the national 
defense interest by having an alternative supplier available for 
furnishing the supplies or services being acquired, in case of a 
national emergency or industrial mobilization, because______(5).
    Alternate II: The exclusion of this source will serve the national 
defense interest by establishing or maintaining an essential 
engineering, research, or development capability of an educational or 
other nonprofit institution or a federally funded research and 
development center, because______(5).

                              Determination

    The exclusion of the source identified above will increase or 
maintain competition and is likely to result in reduced overall costs 
for any anticipated acquisition of the supplies or services being 
acquired.
    (See Note 4 for the use of Alternates I and II below.)
    Alternate I: It is in the interest of the national defense to 
exclude the source identified above in order to have an alternative 
supplier available for furnishing the supplies or services being 
acquired, in case of a national emergency or industrial mobilization.
    Alternate II: It is in the interest of national defense to exclude 
the source identified above in order to establish or maintain

[[Page 169]]

an essential engineering, research, or development capability to be 
provided by an educational or other nonprofit institution or a federally 
funded research and development center.
Date____________

    Notes:
    1. Name of source to be excluded.
    2. Description of estimated reduction in overall costs.
    3. Description of how estimate was derived.
    4. In paragraph 4 and in the Determination, the basic wording is 
appropriate when FAR 6.202(a)(1) applies; Alternate I is appropriate 
when FAR 6.202(a)(2) applies; and Alternate II is appropriate when FAR 
6.202(a)(3) applies.
    5. Description of circumstances necessitating the exclusion of the 
identified source.



          Subpart 1806.3--Other Than Full and Open Competition

Sec. 1806.302  Circumstances permitting other than full and open 
competition.
Sec. 1806.302-4  International agreement.



Sec. Sec. 1806.302-470   Documentation.

    Pursuant to 10 U.S.C. 2304(f)(2)(E), an individual justification for 
other than full and open competition under the authority of FAR 6.302-4 
is not required when the procurement officer signs a Memorandum for the 
Record that:
    (a) Describes the specific terms of the international agreement or 
treaty that limit acquisitions in support of, or as a result of, the 
agreement or treaty to less than full and open competition;
    (b) Is reviewed and approved by the appropriate competition advocate 
in accordance with NFS 1806.304-70; and
    (c) Is included in each official contract file in the place for 
filing a Justification for Other than Full and Open Competition (see 
NASA Form 1098).



Sec. 1806.302-7  Public interest. (NASA supplements paragraph (c))

    (c)(2) The notice to Congress shall be made by NASA Headquarters, 
Office of Legislative Affairs (Code LC). Code HS shall request the 
notice to be made immediately upon approval of a D&F and shall advise 
the contracting activity of the date upon which the notification period 
ends.
    (3) The contracting officer shall prepare the D&F required by FAR 
6.302-7(c)(1) in any format that clearly documents the determination and 
the supporting findings.
1806.303  Justifications.



Sec. 1806.303-1  Requirements. (NASA supplements paragraphs (b) and (d))

    (b) Justifications for using less than full and open competition may 
be prepared by the technical office initiating the contract action when 
it is recommending the use of the justification authority, or by the 
contracting officer if the technical office does not make such a 
recommendation.
    (d) The contracting officer shall send a copy of each approved 
justification or D&F that cites that authority of FAR 6.302-1 (a)(2)(i) 
or FAR 6.302-7 to NASA Headquarters, International Relations Division 
(Code IR), unless one of the exceptions at FAR 25.403 applies to the 
acquisition. The transmittal shall indicate that the justification is 
being furnished under FAR 6.303-1(d).



Sec. 1806.303-170  Sole-source purchases by contractors.

    The requirements of FAR part 6 and this part 1806 apply if NASA 
directs a prime contractor (by specifications, drawings, parts lists, or 
otherwise) to purchase items on a sole-source basis. Accordingly, 
procurement officers shall take necessary actions to ensure that such 
sole-source acquisitions are properly justified. Where ``brand name or 
equal'' purchase descriptions list the salient physical, functional, or 
other characteristics of the item being procured and are properly used 
under 1811.104, the justification requirements of FAR part 6 and this 
part 1806 do not apply.
1806.303-2  Content.



Sec. 1806.303-270  Use of unusual and compelling urgency authority.

    If the authority at FAR 6.302-2 is used for extending the 
performance period of an existing services contract, the justification 
shall contain the information required by FAR 6.303-2 and;
    (a) Documentation that the acquisition process for the successor 
contract was started early enough to allow for adequately planning and 
conducting a full and open competition, together

[[Page 170]]

with a description of the circumstances that prevented award in a timely 
manner; and
    (b) Documentation of the reasons why no other source could 
practicably compete for the interim requirement.



Sec. 1806.304-70  Approval of NASA justifications.

    Concurrences and approvals for justifications of contract actions 
conducted in accordance with FAR subparts 6.2 and 6.3 shall be obtained 
as follows:
    (a) For proposed contracts over $500,000 but not exceeding 
$10,000,000--
    (1) Concurring official: Procurement Officer
    (2) Approving official: Center or Headquarters Competition Advocate.
    (b) For proposed contracts over $10,000,000 but not exceeding 
$50,000,000--
    (1) Concurring officials:
    (i) Procurement Officer
    (ii) Center or Headquarters Competition Advocate
    (2) Approving official: Center Director or Associate Administrator 
for Headquarters Operations.
    (c) For proposed contracts over $50,000,000--
    (1) Concurring officials:
    (i) Procurement Officer
    (ii) Center or Headquarters Competition Advocate
    (iii) Center Director or Associate Administrator for Headquarters 
Operations
    (iv) Agency Competition Advocate
    (2) Approving Official: Associate Administrator for Procurement
    (d) The approval authority of FAR 6.304(a)(3) may not be delegated 
to other than the installation's Deputy Director.
    (e) For proposed contract actions requiring approval by the 
Associate Administrator for Procurement, the original justification 
shall be forwarded to the Associate Administrator for Procurement (Code 
HS).
    (f) Regardless of dollar value, class justifications shall be 
approved by the Associate Administrator for Procurement.



                  Subpart 1806.5--Competition Advocates



Sec. 1806.501  Requirement. (NASA paragraphs (1), (2), (3) and (4))

    (1) The Deputy Associate Administrator for Procurement is the agency 
competition advocate, reporting to the Associate Deputy Administrator on 
issues related to competition of NASA acquisitions.
    (2) The Center Deputy Directors or Associate Directors are the 
competition advocates for their contracting activities.
    (3) The Director, Program Operations Division, Code HS, is the 
competition advocate for the Headquarters contracting activity.
    (4) The Deputy Manager is the contracting activity competition 
advocate for the Space Station Program Office.



Sec. 1806.502  Duties and responsibilities. (NASA supplements paragraph (b))

    (b)(i) Center competition advocates shall submit annual reports to 
the agency competition advocate (Code HS) on or before November 30.
    (ii) The agency competition advocate shall submit an annual agency 
report on or before January 31.



PART 1807--ACQUISITION PLANNING--Table of Contents




                    Subpart 1807.1--Acquisition Plans

Sec.
1807.103  Agency-head responsibilities.
1807.105  Contents of written acquisition plans.
1807.170  Acquisition Strategy Meeting (ASM)

   Subpart 1807.2--Planning for the Purchase of Supplies in Economic 
                               Quantities

1807.204  Responsibilities of contracting officers.

        Subpart 1807.3--Contractor Versus Government Performance

1807.307  Appeals.

            Subpart 1807.5--Inherently Governmental Functions

1807.503  Policy.

[[Page 171]]

                        Subpart 1807.70--Reserved

                    Subpart 1807.71--Master Buy Plan

1807.7100  General.
1807.7101  Applicability.
1807.7102  Submission, selection, and notification procedures.
1807.7102-1  Submission of Master Buy Plan.
1807.7102-2  Submission of amendments to the Master Buy Plan.
1807.7102-3  Selection and notification procedures.
1807.7103  Format of Master Buy Plan.

                Subpart 1807.72--Acquisition Forecasting

1807.7200  Scope of subpart.
1807.7201  Definitions.
1807.7202  Policy.
1807.7203  Responsibilities.
1807.7204  Forecast data.
1807.7205  Public availability.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 61 FR 47068, Sept. 6, 1996, unless otherwise noted.



                    Subpart 1807.1--Acquisition Plans



Sec. 1807.103  Agency-head responsibilities. (NASA supplements paragraphs (d) and (e))

    (d)(i) Except as provided in paragraph (d)(iii) of this section, 
acquisition plans shall be prepared according to the following:
    (A) For acquisitions requiring Headquarters approval, by an 
Acquisition Strategy Meeting (ASM) (see 1807.170);
    (B) For acquisitions not requiring Headquarters approval and 
expected to exceed $5 million, by installation-approved ASMs or written 
acquisition plans; and,
    (C) For acquisitions not expected to exceed $5 million, in 
accordance with installation procedures.
    (ii) The estimated dollar amounts shall include all options and 
later phases of the same program or project.
    (iii) Acquisition plans are not required for the following 
acquisitions:
    (A) Architect-engineering services;
    (B) Broad agency announcements (see 1835.016) or unsolicited 
proposals;
    (C) Basic research from nonprofit organizations;
    (D) Utility services available from only one source;
    (E) From or through other Government agencies;
    (F) Industrial facilities required in support of related contracts; 
or
    (G) MidRange procedure awards (see part 1871). However, acquisition 
plans are required for commercial item acquisitions that exceed the 
MidRange dollar thresholds for noncommercial items.
    (iv) Acquisition plans shall be approved before soliciting 
proposals.
    (v) Approval of an acquisition plan does not constitute approval of 
any special conditions, or special clauses that may be required unless 
the plan so specifies, and the individual having approval authority is a 
signatory of the plan. All required deviations shall be approved through 
the procedures described in FAR 1.4 and 1801.4.
    (vi) A single acquisition plan may be used for all phases of a 
phased acquisition provided the plan fully addresses each phase, and no 
significant changes occur after plan approval to invalidate the 
description of the phases. If such significant changes do occur, the 
plan shall be amended and approved at the same level as the original 
plan.
    (e) Acquisition plans should be prepared on a program or system 
basis when practical. In such cases, the plan should fully address all 
component acquisitions of the program or system.



Sec. 1807.105  Contents of written acquisition plans. (NASA supplements paragraphs (a) and (b))

    Acquisition plans shall address each applicable topic listed in FAR 
7.105, as supplemented by this section. Plans shall be structured by 
subject heading using each italicized topic heading in the same sequence 
as presented in the FAR. Subheadings should be used when appropriate 
(e.g., the separate items under contracting considerations at 
7.105(b)(4)). Topics not applicable to a given acquisition (e.g., 
design-to-cost and should-cost are not compatible with service 
acquisitions), should be marked N/A.
    (a)(1) Describe in nontechnical terms the supplies or services to be 
acquired. Include quantities.
    (3) Identify the estimated cost and describe the estimating 
methodology.
    (5) Specify the delivery or performance period requirements 
separately by

[[Page 172]]

the basic contract, each option, and the total.
    (8) Streamlining applies to all NASA acquisitions. Describe all 
planned streamlining procedures.
    (b)(3) Address how cost realism will be evaluated.
    (4)(A) If an incentive contract is planned, describe the planned 
incentive(s) and the anticipated effects.
    (B) Describe subcontracting issues, including all applicable 
subcontracting goals. (See FAR part 19 and part 1819).
    (5)(A) Identify the estimated cost separately by the basic contract, 
each option and total amount.
    (B) Identify the funding by fiscal year and unique project number 
(UPN).
    (C) Discuss planned approaches to eliminate funding shortfalls (vs. 
the estimated cost).
    (6) Identify the type of work statement/specification planned. 
Specifically address the applicability of performance-based requirement 
descriptions and the availability of commercial sources for the 
supplies/services.
    (10) Address contract management issues, including planned 
delegations of administrative functions.
    (19) If the period between release of solicitation to contract award 
is more than 120 calendar days (180 days for formal SEB competitions), 
explain why that goal cannot be met.



Sec. 1807.170  Acquisition Strategy Meeting (ASM).

    (a) The ASM is an acquisition plan conducted through a meeting 
attended by all interested NASA offices. At the meeting, the acquisition 
plan topics and structure specified in 1807.105 are presented in 
briefing format, and formal written minutes prepared to summarize the 
decision, actions, and conclusions of the ASM members. The approved 
minutes, along with the briefing charts, shall be included in the 
contract file to document completion of the acquisition plan required by 
1807.103.
    (b) The ASM is not a requirements definition meeting. It is a 
meeting to seek approval for the proposed acquisition approach for 
requirements that were previously defined and agreed to by the cognizant 
offices.
    (c) Headquarters ASMs will be chaired by the Associate Administrator 
for Procurement or designee. The Headquarters Office of Procurement 
(Code HS) will prepare the minutes of Headquarters ASMs and distribute 
them to all attendees for review prior to approval by the ASM 
chairperson.
    (d) For field installation ASMs, the minutes shall be approved in 
accordance with installation procedures.



   Subpart 1807.2--Planning for the Purchase of Supplies in Economic 
                               Quantities



Sec. 1807.204  Responsibilities of contracting officers.

(NASA supplements paragraph (a))
    (a) The contracting officer shall transmit in writing to the 
cognizant inventory management/requirements office either the actual 
offeror responses or a summary of their salient points. The transmittal 
should be made within five working days after the closing date for 
receipt of offers; however, if a response indicates the potential for a 
significant savings, it should be transmitted immediately.



        Subpart 1807.3--Contractor Versus Government Performance



Sec. 1807.307  Appeals. (NASA supplements paragraph (a))

    (a) Installations shall establish appeals procedures in accordance 
with NMI 7410.3, Delegation of Authority for Acquisition of Commercial 
Activities for NASA's Use.



            Subpart 1807.5--Inherently Governmental Functions



Sec. 1807.503  Policy. (NASA supplements paragraph (e))

    (e) The field installation requirements office shall provide the 
contracting officer the written determination that none of the statement 
of work tasks are inherently governmental. Disagreements regarding the 
determination shall be resolved in accordance with installation 
procedures.

[[Page 173]]



                       Subpart 1807.70--[Reserved]



                    Subpart 1807.71--Master Buy Plan



Sec. 1807.7100  General.

    The Master Buy Plan provides information on planned acquisitions to 
enable management to focus its attention on a representative selection 
of high-dollar-value and otherwise sensitive acquisitions.



Sec. 1807.7101  Applicability.

    (a) The Master Buy Plan applies to each negotiated acquisition, 
including supplemental agreements, where the dollar value, including the 
aggregate amount of options, follow-on acquisitions, or later phases of 
multi-phase acquisitions, is expected to equal or exceed $50,000,000.
    (b) For initial annual Master Buy Plan submission only, each 
installation shall submit its three largest acquisitions regardless of 
dollar value and all acquisitions over $50,000,000.
    (c) The procedure also applies to:
    (1) Any supplemental agreement that contains either new work, a 
debit change order, or a credit change order (or any combination/
consolidation thereof), if the absolute value of the actions equals or 
exceeds $50,000,000 (e.g., the absolute value of a supplemental 
agreement adding $30,000,000 of new work and deleting $30,000,000 of 
work is $60,000,000, and is therefore subject to the Master Buy Plan).
    (2) Any supplement agreement that contains one or more elements (new 
work and/or individual change orders) of a sensitive nature that, in the 
judgment of the installation or Headquarters, warrants Headquarters 
consideration under the Master Buy Plan, even though the value does not 
equal or exceed $50,000,000.
    (d) The Master Buy Plan does not apply to incremental funding 
actions or termination settlement agreements.
1807.7102  Submission, selection, and notification procedures.



Sec. 1807.7102-1  Submission of Master Buy Plan.

    (a) Prior to July 15th of every year, each installation shall submit 
to the Headquarters Office of Procurement (Code HS) a Master Buy Plan 
(electronically or original and eight copies) for the next fiscal year, 
listing every known acquisition that
    (1) Meets the criteria in 1807.7101,
    (2) Is expected to be initiated in that fiscal year, and
    (3) Has not been included in a previous Master Buy Plan or amendment 
to a Master Buy Plan.
    (b) The fiscal year Master Buy Plan shall list all uncompleted 
acquisitions selected for Headquarters review and approval from prior 
Master Buy Plans and amendments to Master Buy Plans. These acquisitions 
should be listed by the appropriate fiscal year Master Buy Plan and 
individual item numbers, and should indicate the current status of the 
individual acquisition documents previously selected for Headquarters 
review and approval.
    (c) Plans shall be prepared in accordance with 1807.7103 and shall 
identify the individual acquisition documents involved for every 
acquisition listed. Acquisition documents that may require Headquarters 
approval will be held in abeyance until receipt of the notification 
required by 1807.7102-3. This is not to preclude the planning for or 
initiation of such documents up to that point where Headquarters 
approval may be required.



Sec. 1807.7102-2  Submission of amendments to the Master Buy Plan.

    (a) Acquisitions identified by installations after submission of 
their Master Buy Plan and meeting the criteria in 1807.7102-1(a) shall 
be submitted to Headquarters in accordance with 1807.7103 and identified 
as an amendment to the fiscal year Master Buy Plan submission.
    (b) Master Buy Plan submissions should not be accomplished after the 
fact. Amendments shall be submitted sufficiently in advance of contract 
award date to allow Headquarters to select those acquisition documents 
that will be subject to Headquarters review and approval without 
creating an unacceptable delay in contract placement.
    (c) When timely submittal is not possible, the installation shall 
provide with the amendment a narrative explaining the circumstances 
leading to

[[Page 174]]

the late submittal. A Master Buy Plan submission for a contract change 
order expected to meet the criteria in 1807.7101 shall be submitted to 
Headquarters immediately upon issuance of the change order.



Sec. 1807.7102-3  Selection and notification procedures.

    (a) The Headquarters Office of Procurement (Code HS) shall select 
acquisition documents from the Master Buy Plan and amendments to Master 
Buy Plans to receive Headquarters review and approval and shall 
designate source selection officials.
    (b) When, subsequent to document selection or delegation, an 
acquisition is changed (for example, increase or decrease in dollar 
amount, change in requirement), canceled, superseded, deferred, or 
becomes no longer subject to the Master Buy Plan procedures in 
accordance with the criteria in 1807.7101, the installation shall 
immediately notify Code HS, giving the reasons. Code HS shall notify the 
installation's procurement office in writing of any further action that 
may be required.
    (c) Acquisition documents not selected for Headquarters review will 
be subject to after-the-fact reviews by Headquarters during normal 
procurement management surveys or other special reviews. Acquisition 
delegations may subsequently be rescinded if a Headquarters review is 
deemed appropriate.



Sec. 1807.7103  Format of Master Buy Plan.

    In accordance with the requirements of 1807.7102-1 and 1807.7102-2, 
Master Buy Plans and amendments to Master Buy Plans shall be prepared in 
accordance with the format illustrated in Table 1807-1.



                Subpart 1807.72--Acquisition Forecasting



Sec. 1807.7200  Scope of subpart.

    This subpart prescribes the acquisition forecasting procedure 
required to comply with the Business Opportunity Development Reform Act 
of 1988.



Sec. 1807.7201  Definitions.

    Class of contracts means a grouping of acquisitions, either by 
dollar value or by the nature of supplies and services to be acquired.
    Contract opportunity means planned new contract awards exceeding 
$25,000.



Sec. 1807.7202  Policy.

    As required by statute, it is NASA policy to
    (a) Prepare an annual forecast and semiannual update of expected 
contract opportunities or classes of contract opportunities for each 
fiscal year;
    (b) Include in the forecast contract opportunities that small 
business concerns, including those owned and controlled by socially and 
economically disadvantaged individuals, may be capable of performing; 
and
    (c) Make available such forecasts to the public.



Sec. 1807.7203   Responsibilities.

    (a) NASA procurement officers shall furnish the Headquarters Office 
of Procurement (Code HS) with the data required in 1807.7204 on 
September 1 for the annual forecast and March 15 for the semiannual 
update.
    (b) Code HS will prepare and distribute the consolidated annual 
forecast and the semiannual update.



Sec. 1807.7204   Forecast data.

    (a) The annual forecast shall contain--
    (1) Summary historical data (based on information provided by the 
Headquarters Office of Procurement (Codes HC and HS)) on the class of 
contract opportunities below the simplified acquisition threshold;
    (2) Identification of all known contract opportunities in excess of 
the simplified acquisition threshold. Each such action should be 
identified as one of the three broad categories of acqusition--Research 
and Development, Services, or Supplies and Equipment and shall include 
the following information:
    (i) A brief description not to exceed ten typed lines;
    (ii) Approximate dollar value within the following dollar ranges: 
$100,000 to $1,000,000; $1,000,000 to $5,000,000; and over $5,000,000;
    (iii) Anticipated time (by fiscal year quarter) for the issuance of 
the solicitation;

[[Page 175]]

    (iv) Identification if it is reserved for performance by small 
business concerns including those owned and controlled by socially and 
economically disadvantaged individuals;
    (v) Identification as competitive or noncompetitive; and
    (vi) Identification and telephone number of a center point of 
contact.
    (b) The semiannual report shall be an update of the data provided by 
the annual forecast. This update should provide information on new 
requirements not previously reported and on changes in data related to 
actions previously identified.



Sec. 1807.7205  Public availability.

    (a) The annual forecast and semiannual update are available via the 
NASA Acquisition Internet Service (NAIS) (http://procurement.nasa.gov.).
    (b) The forecasts may also be obtained from the Headquarters Office 
of Procurement (Code HS) and the Office of Small and Disadvantaged 
Business Utilization (Code K).

[[Page 176]]

                              TABLE 1807-1
[GRAPHIC] [TIFF OMITTED] TR06SE96.000


[[Page 177]]





PART 1808--REQUIRED SOURCES OF SUPPLIES AND SERVICES--Table of Contents




Sec.
1808.002  Use of other Government supply sources.
1808.002-70  Acquisition of radioisotopes.
1808.002-71  Acquisition of liquid hydrogen.
1808.002-72  Acquisition of propellants.
1808.002-75  Acquisition of mercury.

                Subpart 1808.1--Excess Personal Property

1808.103  Information on available excess personal property.

                Subpart 1808.4--Federal Supply Schedules

1808.404  Using schedules.
1808.404-3  Requests for waivers.

    Subpart 1808.6--Acquisition From Federal Prison Industries, Inc.

1808.605  Clearances.

Subpart 1808.7--Acquisition From Nonprofit Agencies Employing People Who 
                     Are Blind or Severely Disabled

1808.705  Procedures.
1808.705-1  General.

      Subpart 1808.8--Acquisition of Printing and Related Supplies

1808.802  Policy.
1808.870  Contract clause.

               Subpart 1808.11--Leasing of Motor Vehicles

1808.1100  Scope of subpart.

    Authority: 42 U.S.C. 2473(c)(1)

    Source: 61 FR 47073, Sept. 6, 1996, unless otherwise noted.
1808.002  Use of other Government supply sources.



Sec. 1808.002-70  Acquisition of radioisotopes.

    (a) DOE Form 5400.3, U.S. Department of Energy Isotope Order Blank, 
and NRC Form 313, U.S. Nuclear Regulatory Commission Application for 
Material License, shall be used to acquire radioisotopes, as stated on 
the back of DOE Form 5400.3. No other type of order blank, purchase 
order, or contract may be used in lieu of these forms.
    (b) NRC Form 313 shall be filed with the Chief, Radioisotopes 
Licensing Branch, Division of Fuel Cycle and Material Safety, United 
States Nuclear Regulatory Commission, Washington, DC 20555. If the 
application meets all regulatory requirements and applicable standards, 
the Radioisotopes Licensing Branch, Nuclear Regulatory Commission, will 
issue a license to the applicant. After receipt of the license, a 
completed DOE Form 5400.3 (in duplicate, if the contracting office wants 
an accepted copy of the form back from the supplier), the license, and a 
Government bill of lading shall be sent to the appropriate DOE 
laboratory. If a bill of lading is not furnished, shipment shall be made 
collect on a commercial bill of lading, to be converted at destination.
    (c) NRC Form 313 and DOE Form 5400.3 shall be requisitioned directly 
from United States Nuclear Regulatory Commission, Attn: Radioisotopes 
Licensing Branch, Division of Fuel Cycle and Material Safety, 
Washington, DC 20555.



Sec. 1808.002-71  Acquisition of liquid hydrogen.

    Rquests for liquid hydrogen shall be submitted to the John F. 
Kennedy Space Center, National Aeronautics and Space Administration, 
Kennedy Space Center, FL 32899, Attn: Director of Logistics Operations.



Sec. 1808.002-72  Acqusition of propellants.

    (a) General. NASA (and its contractors when authorized in accordance 
with 1851.1) may acquire the items listed in paragraph (j) of this 
section (except for liquid hydrogen; see 1808.002-71) on a reimbursable 
basis from the San Antonio Air Logistics Center (SA-ALC), Kelly Air 
Force Base, Texas, under the Air Force Missile Procurement Fund (MPF). 
The Air Force MPF shall be used as a supply source for propellants 
whenever there are economic or other advantages to the Government. Field 
installations and offices obtaining supplies from the MPF shall comply 
with the reporting requirements of paragraph (f) of this section.
    (b) Requests for acquisition. To obtain the materials listed in 
paragraph (j) of this section from the Air Force MPF, NASA contracting 
offices will

[[Page 178]]

execute a NASA-Defense Purchase Request (NASA Form 523) (see 1853.303-
523) and forward it to Headquarters, SA-ALC, Kelly Air Force Base, TX 
78241, Attention: SFS. The following additional information should be 
provided on the form:
    (1) Contract number (when material is required for use by a NASA 
contractor).
    (2) Delivery address.
    (3) Mode of transportation (rail, trailer, barge, etc.). When the 
procurement request covers requirements for materials not previously 
forecasted or covers significant changes to previously reported 
requirements, SA-ALC should be notified immediately of such 
requirements.
    (c) Delivery requests.
    (1) A delivery request is a call on the Air Force, made against a 
NASA-Defense Purchase Request (NASA Form 523), specifying the time and 
place of delivery. On the basis of the estimated requirements, the Air 
Force will notify NASA field installations and contractors of the name 
and address of the Air Force office or producing contractor's plant to 
which requests for delivery of materials shall be made. Delivery 
requests may be placed by any means of communication that time 
justifies; however, all verbal requests for delivery must be confirmed 
in writing within 24 hours. The delivery request, whether oral or 
written, must cite the NASA-Defense Purchase Request number under which 
the material is being ordered and contain the following information:
    (i) Nomenclature and National Stock Number.
    (ii) Quantity.
    (iii) Program, project, and task.
    (iv) Contract number (when material is required for use by a NASA 
contractor).
    (v) Delivery address.
    (vi) Dates of delivery.
    (vii) Mode of transportation.
    (viii) Location of weighting stations and scales (if weighing of the 
products before delivery is required).
    (2) Each delivery request shall be numbered as follows to simplify 
identification and control: the last two digits of the calendar year; a 
dash; and a consecutive number beginning with 1 to run through the year 
(e.g., 89-5, for the fifth request made in 1989). Changes to a request 
are identified by adding an alphabetical designator beginning with (A) 
to the number.
    (d) Receiving procedures.
    (1) Receiving documents. Receipt of materials shall be evidenced on 
the receiving document received with the shipment by the signature of an 
individual authorized by NASA to receive materials from the Air Force. 
Every effort should be made to ensure that the NASA-Defense Purchase 
Request number is recorded on the receiving document before signing.
    (2) Weighing facilities. Local weighing facilities (NASA-owned, 
contractor-owned, commercial, or State-operated) may be used to 
determine quantities of product received. If a discrepancy exists 
between the quantities shown on receiving documents and the quantities 
actually received--
    (i) A certified weighing ticket evidencing actual weight at 
destination shall be obtained; and
    (ii) A copy of the receiving document (AF Form 857 or DD Form 250) 
and the original weighting ticket shall be forwarded to Headquarters, 
SA-ALC, Kelly Air Force Base, TX 78241, Attention: ACFOM, identifying 
the discrepancy.
    (3) Distribution of receipts. Copies of all receiving documents 
except the AF Form 857 shall be transmitted to the Headquarters, SA-ALC, 
Kelly Air Force Base, TX 78241, Attention: SACAOM. Receiving documents 
may be accumulated and submitted on the 10th, 20th, and last day of each 
month.
    (e) Billing. The costs of materials obtained through the MPF are 
reimbursable. After delivery, a Standard Form 1080 (Voucher for 
Transfers Between Appropriations and/or Funds (Disbursement)), supported 
by documentary evidence of delivery, will be submitted by Headquarters, 
SA-ALC to the NASA installation designated in the NASA Form 523.
    (f) Reporting requirements.
    (1) Field installations shall submit periodic estimates of 
requirements for materials listed in paragraph (j) of this section for 
all programs under their

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cognizance, including in-house contractor requirements. Reports shall be 
submitted in duplicate on AF Form 858, Forecast of Propellant 
Requirements.
    (2) The reports shall be forwarded no later than June 1 and December 
1 to reach Headquarters, SA-ALC, Kelly AFB, TX 78241, Attn: SFS. 
Supplemental reports advising of additions to or significant changes in 
previous reports may be submitted at any time. The reports, covering all 
materials listed in paragraph (j) of this section, due in June and 
December, shall begin with requirements as of the following July 1 and 
January 1, respectively, and shall cover a 3-year period. Requirements 
shall be shown by month for the first 6 months, and by quarters for the 
remaining 2\1/2\-year period.
    (3) Estimated requirements and other pertinent data required from 
contractors shall be obtained on Air Force Form 858.
    (g) Report content. Reports shall be made using a separate report 
form for each material and shall provide, for each item of material, 
the--
    (1) Contract number;
    (2) Program and/or project;
    (3) Specific task within the project;
    (4) End use when not associated with the named program or project;
    (5) Contractor's name;
    (6) Specific location of use (shipping destination); and
    (7) Planned source of supply.
    (h) Basis for developing materials requirements. In computing 
requirements, consideration shall be given to such elements as lead 
time, waste factors, transfer, and storage losses so that phased 
requirements reflect the total gross quantities required to be delivered 
to the use or storage site. Since the requirements estimates are being 
used by other Government agencies acting as supply sources to contract 
for materials, estimates must be as accurate as possible.
    (i) NASA coordination. The Kennedy Space Center shall coordinate the 
review of all data and establish NASA policy and procedures. The data 
shall be used as the basis for NASA requirements reports to various 
Government agencies for planning and supply support.
    (j) Table of reportable materials.

Ammonia, Technical (Anhydrous) (Low Oil Content) 99.97 percent purity, 
    Spec 0-A-445
Argon Gas, 6000 PSI, AFPID 6830-5
Propellant, Ammonia, Liquid, Anhydrous 99.5 percent purity, Spec MIL-P-
    27406
Propellant, Chlorine Trifluoride, Spec MIL-P-81399
Propellant, Deuterium, Gaseous, AFPID 9135-20
Propellant, Fluorine, Gaseous, Spec MIL-P-27405
Propellant, Fluorine, Liquid, Spec MIL-P-27405
Helium, Technical Grade A, Spec BB-H-1168
Propellant, Isopropyl Alcohol, AFPID 9135-18
Propellant, Hydrazine, Standard Grade, Spec MIL-P-26536
Propellant, Hydrazine, Monopropellant Grade, Spec MIL-P-26536
Propellant, Hydrazine/Unsymmetrical Dimethylhydrazine, Spec MIL-P-27402
Propellant, Hydrogen, Gaseous, Type I, Spec MIL-P-27201
Propellant, Hydrogen, Liquid, Type II, Spec MIL-P-27201
Propellant, Hydrogen Peroxide, Spec MIL-P-16005
Propellant, Hydrogen Peroxide, Electrolytic Process, Spec MIL-P-16005
Propellant, Jet Fuel, Grade RJ-1, Spec MIL-F-25558
Propellant, JPX, 50% UDMH-50% JP-4, Spec MIL-P-26694
Propellant, JPX, 17% UDMH-83% JP-4, Spec MIL-P-26694
Propellant, Kerosene, Grade RP-1, Spec MIL-P-25576
Propellant, Monomethyl Hydrazine, Spec MIL-P-27404
Propellant, Neon, Liquid, AFPID 9135-16
Propellant, Nitric Acid, Type IIIB, Spec MIL-P-7254
Propellant, Nitric Acid, Type III LS, Spec MIL-P-7254
Propellant, Nitric Acid, Type IV (High Density Acid), Spec MIL-P-7254
Propellant, Nitrogen Tetroxide (NTO) (MON-1) (MON-3), Spec MIL-P-26539
Propellant, Nitrogen Tetroxide (NTO), MIL-P-26539
Propellant, Nitrogen Tetroxide (MON-1), Spec MIL-P-26539

[[Page 180]]

Propellant, Nitrogen Tetroxide (MON-3), Spec MIL-P-26539
Propellant, Oxygen, Grade B, Spec MIL-P-25508
Propellant, Oxygen, Grade A, Spec MIL-P-25508
Propellant, Oxygen, Grade F, Spec MIL-P-25508
Propellant Pressurizing Agent, Helium, Spec MIL-P-27407, 99.995 pct min 
    assay
Propellant Pressurizing Agent, Nitrogen, Type II, Liquid Grade C, Spec 
    MIL-P-27401
Propellant Pressurizing Agent, Nitrogen, Type I, Gaseous Grade A, Spec 
    MIL-P-27401
Propellant Pressurizing Agent, Nitrogen, Type I, Grade B, Spec MIL-P-
    27401
Propellant Pressurizing Agent, Nitrogen, Type II, Grade A, Spec MIL-P-
    27401
Propellant Pressurizing Agent, Nitrogen, Type II, Grade B, Spec MIL-P-
    27401
Propellant, Unsymmetrical Dimethyl-hydrazine, Spec MIL-P-25604
Propellant, Nitrogen Trifluoride Spec MIL-P-87896
Propellant, Pressurizing Agent, Argon, Liquid, AFPID 9135-19



Sec. 1808.002-75  Acquisition of mercury.

    (a) Requests for mercury by NASA installations for their use or for 
use by their cost-reimbursement type contractors shall be made to the 
Mercury Contract Specialist, Directorate of Stockpile Contracts, DLA, 
Defense National Stockpile Center, 8725 John J. Kingman Rd., #3339, Ft. 
Belvoir, VA 22060-6223. DLA will furnish the current fair market value 
to NASA. The unit of issue is a 76-pound flask.
    (b) Requests for clearance to purchase quantities of 76 pounds or 
more from sources other than DLA shall be submitted to the office in 
paragraph (a) of this section and must be accompanied by a statement of 
reasons why the available excess mercury is unsuitable for use by the 
requesting field installation.



                Subpart 1808.1--Excess Personal Property



Sec. 1808.103  Information on available excess personal property.

    In addition to the sources identified in FAR 8.103, information on 
availability of NASA excess property is maintained by the Installation 
Property Disposal Officer and the NASA Equipment Management System 
(NEMS) Coordinator.



                Subpart 1808.4--Federal Supply Schedules

1808.404  Using schedules.



Sec. 1808.404-3  Requests for waivers. (NASA supplements paragraphs (a) and (b)).

    (a) The head of the NASA office initiating the procurement request 
or a designated representative shall furnish the NASA contracting office 
a signed statement identifying the supplies or services to be purchased 
and explaining why similar items listed in the applicable schedule will 
not meet the requirement.
    (b) If a waiver is not granted, the case shall be referred to the 
Associate Administrator for Procurement (Code HS) for a final decision 
as to whether the non-schedule item will be purchased. The Associate 
Administrator for Procurement shall promptly notify the Commissioner, 
Federal Supply Service, GSA, and the contracting office of the decision.



    Subpart 1808.6--Acquisition From Federal Prison Industries, Inc.



Sec. 1808.605  Clearances. (NASA supplements paragraphs (a) and (c)).

    (a) NASA purchase orders or contracts written pursuant to a general 
or blanket clearance need not be supported by a copy of the clearance, 
but the clearance number must be cited on the purchase order or contract 
as well as on the initial voucher. A copy of the clearance certificate 
must be attached to the initial voucher.
    (c) When disputes occur, the contracting officer shall refer the 
matter

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to the Associate Administrator for Procurement (Code HS) for review and 
any further action. Such referrals shall include a complete statement of 
the attempts made to resolve the matter.



Subpart 1808.7--Acquisition From Nonprofit Agencies Employing People Who 
                     are Blind or Severely Disabled

1808.705  Procedures.



Sec. 1808.705-1  General.

    The Federal Standard Requisitioning and Issue Procedure (Federal 
Property Management Regulation, Subpart 101-26.2) shall be used to 
obtain nonprofit agency-produced supplies from GSA supply distribution 
facilities.



      Subpart 1808.8--Acquisition of Printing and Related Supplies



Sec. 1808.802  Policy. (NASA supplements (paragraph (b)).

    (b) (i) The Headquarters Information Resources Management Division 
(Code JT) is the NASA central printing authority.
    (ii) Requests for approval to contract for printing supplies or 
services shall be addressed to Code JT. Approval to contract for such 
supplies or services is restricted to those requirements meeting the 
following conditions:
    (A) An individual order is under $1,000;
    (B) The order is not of a continuing or repetitive nature; and,
    (C) The Public Printer certifies it cannot be provided more 
economically through the GPO.



Sec. 1808.870  Contract clause.

    The contracting officer shall insert the clause at 1852.208-81, 
Restrictions on Printing and Duplicating, in solicitations and contracts 
where there is a requirement for any printing, and/or any duplicating/
copying in excess of that described in paragraph (c) of the clause.



               Subpart 1808.11--Leasing of Motor Vehicles



Sec. 1808.1100  Scope of subpart.

    NASA procedures for leasing motor vehicles from GSA or commercial 
sources are contained in NMI 6000.5, Transportation Management.



PART 1809--CONTRACTOR QUALIFICATIONS--Table of Contents




           Subpart 1809.1--Responsible Prospective Contractors

Sec.
1809.104-4  Subcontract responsibility.
1809.106  Preaward surveys.
1809.106-1  Conditions for preaward surveys.
1809.106-2  Requests for preaward surveys.
1809.106-3  Interagency preaward surveys.
1809.106-70  Preaward surveys performed by NASA installations.

               Subpart 1809.2--Qualifications Requirements

1809.200  Scope of subpart.
1809.202  Policy.
1809.203  QPL's, QML's, and QBL's.
1809.203-70  General.
1809.203-71  Waiver of qualification requirements.
1809.206  Acquisitions subject to qualification requirements.
1809.206-1  General.
1809.206-70  Small businesses.
1809.206-71  Contract clause.

        Subpart 1809.4--Debarment, Suspension, and Ineligibility

1809.403  Definitions.
1809.404  List of Parties Excluded from Federal Procurement and 
          Nonprocurement programs.
1809.405  Effect of listing.
1809.405-1  Continuation of current contracts.
1809.405-2  Restrictions on subcontracting.
1809.406  Debarment.
1809.406-3  Procedures.
1809.407  Suspension.
1809.407-3  Procedures.
1809.408  Certification regarding debarment, suspension, proposed 
          debarment, and other responsibility matters.
1809.470  Reporting of suspected evasive actions and causes for 
          debarment or suspension.
1809.470-1  Situations requiring reports.
1809.470-2  Contents of reports.
1809.470-3  Addresses and copies of reports.

[[Page 182]]

   Subpart 1809.5--Organizational and Consultant Conflicts of Interest

1809.500  Scope of subpart.
1809.503  Waiver.
1809.506  Procedures.
1809.507  Solicitation provisions and contract clause.
1809.507-2  Contract clause.

              Subpart 1809.6--Contractor Team Arrangements

1809.670  Contract clause.

    Authority: 42 U.S.C. 2473(c)(1)

    Source: 61 FR 47075, Sept. 6, 1996, unless otherwise noted.



           Subpart 1809.1--Responsible Prospective Contractors



Sec. 1809.104-4  Subcontractor responsibility.

    Generally, the Canadian Commercial Corporation's (CCC) proposal of a 
firm as its subcontractor is sufficient basis for an affirmative 
determination of responsibility. However, when the CCC determination of 
responsibility is not consistent with other information available to the 
contracting office, the contracting officer shall request from the CCC 
and any other sources whatever information is necessary to make the 
responsibility determination.
    Upon request, CCC shall be furnished the rationale for any 
subsequent determination of nonresponsibility.
1809.106  Preaward surveys.



Sec. 1809.106-1  Conditions for preaward surveys. (NASA supplements paragraph (a)).

    (a) (i) Preaward surveys are used only to assist the contracting 
officer to make determinations of responsibility under FAR 9.104. They 
are not to be used to obtain information useful to proposal evaluation 
that does not directly relate to the responsibility determination. 
Accordingly, preaward surveys shall not be used except in rare 
circumstances when determination of responsibility cannot be made 
without the specific information that can be provided only in a preaward 
survey report and only after all other means of obtaining the required 
information have been explored.
    (ii) Surveys shall not be performed for companies of any size 
performing study or research contracts.
    (iii) The procurement officer shall approve all preaward survey 
requests.



Sec. 1809.106-2  Requests for preaward surveys. (NASA supplements paragraph (a))

    (a) The ``Walsh-Healey Public Contracts Act'' block of Section I is 
for information purposes only. If information is needed for a 
determination on the offeror's eligibility under the Walsh-Healey Act, 
it must be specifically requested in block 20.H. of Section III.



Sec. 1809.106-3  Interagency preaward surveys. (NASA supplements paragraph (a))

    (a) If the survey will be performed for NASA by a DOD agency, the SF 
1403 request is to be sent to the appropriate office shown in the DOD 
Directory of Contract Administration Services Components, DLAH 4105.4, 
Attn: Preaward Survey Monitor. DOD normally allows seven working days in 
which to conduct a full survey and submit the report to the requesting 
agency.



Sec. 1809.106-70  Preaward surveys performed by NASA installations.

    In discussions with representatives of the company being surveyed, 
NASA preaward survey team members shall not refer to or comment on the 
possibility of award to the prospective contractor. This does not 
preclude discussion with a prospective contractor of questionable areas 
that require clarification. Information obtained during the survey will 
be treated in strict confidence and divulged only to those Government 
representatives having a need to know.



               Subpart 1809.2--Qualifications Requirements



Sec. 1809.200  Scope of subpart.

    This subpart prescribes policies and procedures to be followed in 
the use of qualified products lists for acquisition of parts as 
authorized by NMI 5320.5, Basic Policy for NASA Space Flight

[[Page 183]]

Program Electrical, Electronic, and Electromechanical (EEE) Parts.



Sec. 1809.202  Policy. (NASA supplements paragraphs (a) and (e))

    (a) Authority regarding agency head actions under FAR 9.202(a) is 
delegated to the cognizant technical activity, with approval by the 
installation's competition advocate.
    (e) The approval authority of FAR 9.202(e) is delegated to the 
installation's competition advocate. Requests shall be prepared by the 
cognizant requirements office and submitted via the procurement officer.
1809.203  QPL's, QML's and QBL's.



Sec. 1809.203-70  General. (NASA supplements paragraph (a))

    (a) The Deputy Associate Administrator for the Office of Safety and 
Mission Assurance (Code Q), is responsible for justifying, determining, 
and approving NASA's need for inclusion and continued use of 
qualification requirements in specifications under the NASA EEE Parts 
and Advanced Interconnect Program.



Sec. 1809.203-71  Waiver of qualification requirements.

    When acquiring a product under a specification that includes 
qualification requirements either for the end item or for components of 
the end item, the NASA installation conducting the acquisition can waive 
the qualification requirements. Directing a waiver of the end item 
qualification requirement constitutes adequate authorization for waiver 
of product qualification requirements. When a waiver has been granted, 
the solicitation shall specifically indicate that the qualification 
requirement is inapplicable. Such information shall also be included in 
any synopsis of the acquisition (see FAR subpart 5.2).
1809.206  Acquisitions subject to qualification requirements.



Sec. 1809.206-1  General. (NASA supplements paragraph (b) and (c))

    (b)(i) The authority to determine that an emergency exists is 
delegated to the installation's competition advocate. Requests for 
determination shall be prepared by the cognizant requirements office and 
submitted through the procurement officer.
    (ii) Requests not to enforce a qualification requirement in a 
nonemergency situation shall be prepared by the cognizant requirements 
office and approved by the Headquarters Office of Safety and Mission 
Assurance (Code Q).
    (c) If an offeror seeks to demonstrate its capability, both the 
product and the producer must meet the established standards.



Sec. 1809.206-70  Small businesses.

    If a small business otherwise eligible for award has been placed in 
a special status on a Qualified Products List (Mil-Bul-103) or the 
Qualified Manufacturers List (QML-38510) established as a part of the 
NASA Microelectronics Reliability Program and the contracting officer 
determines that the small business does not appear to have the capacity 
to perform, the certificate of competency procedures in FAR subpart 19.6 
are applicable.



Sec. 1809.206-71  Contract clause.

    When qualified products (end items or components of end items) are 
being procured, the contracting officer shall insert the clause at 
1852.209-70, Product Removal from Qualified Products List, in the 
solicitation and in the resulting contract.



        Subpart 1809.4--Debarment, Suspension, and Ineligibility



Sec. 1809.403  Definitions.

    For purposes of FAR subpart 9.4 and this subpart, the Associate 
Administrator for Procurement is the ``debarring official,'' the 
``suspending official,'' and the agency head's ``designee.''



Sec. 1809.404  List of parties excluded from federal procurement and nonprocurement programs. (NASA supplements paragraphs (c) and (d))

    (c) The Office of Procurement (Code HS) is responsible for taking 
the actions listed in FAR 9.404(c).
    (d)(1) Installation procurement offices shall notify Code HS of how 
many

[[Page 184]]

copies of the List they want and provide a single mailing address at the 
installation. Code HS will place the order for the copies which will be 
mailed directly to the installation. Electronic access is also available 
as described in the List.



Sec. 1809.405  Effect of listing

    If it is believed that a new contract or subcontract must be awarded 
to a firm on the List of Parties Excluded from Federal Procurement and 
Nonprocurement Programs, the procurement officer shall prepare a request 
for a determination with all necessary supporting information and 
forward it to the Associate Administrator for Procurement (Code HS) for 
approval.



Sec. 1809.405-1  Continuation of current contracts. (NASA supplements paragraph (c))

    (c) Approval of contract renewals or extensions shall be requested 
in accordance with 1809.405.



Sec. 1809.405-2  Restrictions on subcontracting. NASA supplements paragraph (a)).

    (a) Approval of consent to subcontract shall be requested in 
accordance with 1809.405.
1809.406  Debarment.



Sec. 1809.406-3  Procedures. (NASA supplements paragraph (a))

    (a) The report required by FAR 9.406-3(a) shall be prepared in 
accordance with 1809.470.
1809.407  Suspension.



Sec. 1809.407-3  Procedures. (NASA supplements paragraph (a))

    (a) Reports shall be prepared in accordance with 1809.470.



Sec. 1809.408  Certification regarding debarment, suspension, proposed debarment, and other responsibility matters. (NASA supplements paragraph (a))

    (a)(2) (A) If the offeror indicates that it has been indicted, 
charged, convicted, or had a civil judgment rendered against it, the 
contracting officer shall immediately notify the Associate Administrator 
for Procurement (Code HS), providing details as known, and shall await a 
response before awarding the contract.
    (B) If the offeror discloses information that indicates a need for a 
debarment or suspension determination, the contracting officer shall 
report the facts to the Associate Administrator for Procurement (Code 
HS) in accordance with 1809.470.
1809.470  Reporting of suspected evasive actions and causes for 
debarment or suspension.



Sec. 1809.470-1  Situations requiring reports.

    A report incorporating the information required by 1809.470-2 of 
this subpart shall be forwarded by the procurement officer to the 
Associate Administrator for Procurement (Code HS) when a contractor:
    (a) Has committed, or is suspected of having committed, any of the 
acts described in FAR 9.406-2 and 9.407-2; or
    (b) Is suspected of attempting to evade the prohibitions of a 
debarment or suspension imposed under the FAR by changes of address, 
multiple addresses, formation of new companies, or other devices.



Sec. 1809.470-2  Contents of reports.

    Each report shall be coordinated with local counsel and shall 
include substantially the following information, if available:
    (a) Name and address of the contractor.
    (b) Names of the principal officers, partners, owners, or managers.
    (c) All known affiliates, subsidiaries, or parent firms, and the 
nature of the affiliation.
    (d) A description of the contract or contracts concerned, including 
the contract number and office identifying numbers or symbols, the 
amount of each contract, the amounts paid the contractor and still due, 
and the percentage of work completed and to be completed.
    (e) The status of vouchers.
    (f) Whether the contract has been assigned pursuant to the 
Assignment of Claims Act, and, if so, the name and address of the 
assignee and a copy of the assignment.

[[Page 185]]

    (g) Whether any other contracts are outstanding with the contractor 
or any affiliates, and, if so, their amount, whether they are assigned 
pursuant to the Assignment of Claims Act, and the amounts paid or due on 
them.
    (h) A complete summary of all pertinent evidence. If a request for 
debarment or suspension is based on an indictment or a conviction, 
provide the evidence upon which the indictment or conviction is based.
    (i) An estimate of any damages, sustained by the Government as a 
result of the contractor's action, including an explanation of the 
method used in making the estimate.
    (j) Recommendation as to
    (1) Whether the contractor should be suspended or debarred,
    (2) Whether any limitations should be applied to such action,
    (3) Whether current contracts should be terminated, and
    (4) The period of any debarment.
    (k) As an enclosure, a copy of the contract(s) or pertinent 
excerpts, appropriate exhibits, testimony or statements of witnesses, 
copies of assignments, and other relevant documentation.



Sec. 1809.470-3  Addresses and copies of reports.

    Reports, including enclosures, shall be submitted to the Office of 
Procurement (Code HS), with an additional copy to the Headquarters 
Office of General Counsel (Code G).



   Subpart 1809.5--Organizational and Consultant Conflicts of Interest



Sec. 1809.500  Scope of subpart.

    The Associate Administrator for Procurement has authorized the 
procurement officer to take those actions reserved in FAR subpart 9.5 
for the head of the contracting activity. However, see 1809.503 
regarding waivers.



Sec. 1809.503  Waiver.

    The Administrator has designated the Associate Administrator for 
Procurement as the approval authority for waivers under FAR 9.503. The 
procurement officer shall forward requests for waivers under FAR 9.503 
to the Associate Administrator for Procurement (Code HS) for action.



Sec. 1809.506  Procedures. (NASA supplements paragraph (b))

    (b) The approving official is the procurement officer when the 
installation has source selection authority and the Associate 
Administrator for Procurement (Code HS) when NASA Headquarters has that 
authority.
1809.507  Solicitation provisions and contract clause.



Sec. 1809.507-2  Contract clause.

    The contracting officer may insert a clause substantially the same 
as the clause at 1852.209-71, Limitation of Future Contracting, in 
solicitations and contracts.



              Subpart 1809.6--Contractor Team Arrangements



Sec. 1809.670  Contract clause.

    The contracting officer shall insert the clause at 1852.209-72, 
Composition of the Contractor, in all construction invitations for bids 
and resulting contracts. The clause may be used in other solicitations 
and contracts to clarify a contractor team arrangement where the prime 
contractor consists of more than one legal entity, such as a joint 
venture.



PART 1811--DESCRIBING AGENCY NEEDS--Table of Contents




Sec.
1811.002  Policy.

     Subpart 1811.1--Selecting and Developing Requirements Documents

1811.104  Items peculiar to one manufacturer.
1811.104-70  Brand name or equal purchase descriptions.
1811.104-71  NASA solicitation provision.

            Subpart 1811.4--Delivery or Performance Schedules

1811.403  Supplies or services.
1811.404  Contract clauses.

                   Subpart 1811.5--Liquidated Damages

1811.502 Policy.

[[Page 186]]

                Subpart 1811.6 Priorities and Allocations

1811.602  General.
1811.603  Procedures.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 61 FR 47078, Sept. 6, 1996, unless otherwise noted.



Sec. 1811.002  Policy. (NASA supplements paragraph (b))

    (b) Implementation of the Metric Conversion Act of 1975, as amended, 
shall be in accordance with NPD 8010.2B, Use of the Metric System of 
Measurements in NASA Programs.



     Subpart 1811.1--Selecting and Developing Requirements Documents

1811.104  Items peculiar to one manufacturer.



Sec. 1811.104-70  Brand name or equal purchase descriptions.

    (a) Use of brand-name purchase descriptions is the least preferred 
method for describing Agency requirements. Purchase descriptions 
containing references to one or more brand-name products, or components 
of a product, followed by ``or equal'' may be used only in accordance 
with this part 1811.
    (b) The term ``or equal'' should not be added if it is determined 
under FAR 11.104 that only a particular product meets the essential 
requirements of the Government.
    (c) To the extent feasible, all acceptable brand-name products 
should be referenced. If ``brand-name-or-equal'' is used, offerors must 
be given the opportunity to offer products other than those referenced 
by brand-name if those products will meet the needs of the Government in 
essentially the same manner.
    (d) ``Brand-name-or-equal'' purchase descriptions should set forth 
the salient physical, functional, or other characteristics essential to 
the needs of the Government. Purchase descriptions should include the 
following items and any other information necessary to describe the 
item:
    (1) Complete common generic identification of the item.
    (2) Model, make, or catalog number for each brand name product, and 
identity of the commercial catalog in which it appears.
    (3) Name of manufacturer, producer, or distributor of each brand 
name product referenced (and address if company is not well known).
    (e) When it is needed to describe the item required, a commercial 
catalog description, or pertinent extracts, may be used if the 
description is identified in the solicitation as being that of the 
manufacturer, producer, or distributor. The contracting officer shall 
ensure that a copy of any catalog referenced (except parts catalogs) is 
available on request for review by offerors at the contracting office.
    (f) Offerors offering brand-name products shall not be required to 
furnish samples; however, solicitations may require the submission of 
samples from offerors proposing ``or equal'' products.
    (g) Proposals offering products differing from brand-name products 
referenced in a ``brand-name-or-equal'' purchase description shall be 
considered for award if the contracting officer determines that the 
offered products meet the salient characteristics required by the 
solicitation. Offers shall not be rejected because of minor differences 
in design, construction, or features that do not affect the suitability 
of the products for their intended use.
    (h) Except as provided in paragraph (i)(1) of this section, when a 
``brand-name-or-equal'' purchase description is included in a 
solicitation, the following shall be inserted after each item so 
described in the solicitation for completion by the offeror:

Offering:
Manufacturer's Name_____________________________________________________

Brand___________________________________________________________________

No._____________________________________________________________________

    (i) If the contracting officer determines that the provision at 
1852.211-70 should apply only to certain components, the requirements of 
paragraph (h) of this section shall apply to them, and a statement 
substantially as follows shall be included:

    The provision entitled Brand Name or Equal applies to the following 
components:

(List the components to which the provision applies.)


[[Page 187]]


    (j) Award documents for brand-name-or-equal acquisitions shall 
identify the specific products or components the contractor is to 
furnish. This identification shall include any brand name and make or 
model number, descriptive material, and any modifications of brand name 
products specified in the solicitation.



Sec. 1811.104-71  NASA solicitation provision.

    When a ``brand-name-or-equal'' purchase description is used, the 
contracting officer shall insert in the solicitation the provision at 
1852.211-70, Brand Name or Equal.



            Subpart 1811.4--Delivery or Performance Schedules



Sec. 1811.403  Supplies or services. (NASA supplements paragraph (a))

    (a)(3) Contract delivery or performance schedules shall not be 
expressed in terms of a notice of award. A notice of award as a specific 
document, separate from the award document itself, is not a contractual 
document and shall not be used as a reference point for contract 
performance. See 1814.408 for additional information on notices of 
award.



Sec. 811.404  Contract clauses. (NASA supplements paragraph (a))

    (a)(2) FAR 52.211-8, Time of Delivery, Alternates II and III, shall 
not be used in NASA contracts.
    (3) FAR 52.211-9, Desired and Required Time of Delivery, Alternates 
II and III, shall not be used in NASA contracts.



                   Subpart 1811.5--Liquidated Damages



Sec. 1811.502  Policy. (NASA supplements paragraph (d))

    (d) The procurement officer shall forward recommendations concerning 
remission of liquidated damages to the Headquarters Office of 
Procurement (Code HS).



               Subpart 1811.6--Priorities and Allocations



Sec. 1811.602  General. (NASA supplements paragraph (c))

    (c) The Department of Defense is the ``Delegate Agency'' for NASA. 
The Headquarters Office of Procurement (Code HS) shall coordinate with 
DOD, as necessary, to ensure that any DOD requirements are met.



Sec. 1811.603  Procedures. (NASA supplements paragraphs (e) and (g))

    (e)(i) The use of priority ratings on NASA contracts and purchase 
orders is mandatory except as noted in paragraph (e)(ii) of this 
section. Priority ratings are assigned on individual contracts and 
purchase orders by the contracting officer.
    (ii) Priority ratings will not be issued for the following:
    (A) Items ordered or requisitioned from the GSA Federal Supply 
Service.
    (B) Items for plant improvement, expansion, or construction, unless 
they will be physically incorporated into a construction project covered 
by a rated order, or unless NASA has obtained specific priority rating 
authority.
    (C) Production or construction equipment or items to be used for the 
manufacture of production equipment, unless NASA has obtained specific 
priority rating authority.
    (D) Items falling under the jurisdiction of agencies other than 
NASA's Delegate Agency. These are: petroleum, gas, solid fuel, electric 
power, and all other forms of energy; food; civil transportation and the 
movement of persons and property by all modes; minerals; water; housing 
facilities; health facilities; radio-isotopes, stable isotopes, source 
material and special 

[[Page 188]]

nuclear material produced in Government-owned plants or facilities 
operated by or for the Department of Energy; communication services; 
copper raw materials; crushed stone; gravel; sand; scrap; slag; central 
steam heat; and waste paper.
    (iii) All other NASA orders shall be assigned a DO rating, unless 
NASA has obtained a DX rating from the Delegate Agency.
    (iv) The program identification numbers (DPAS, 15 CFR part 700, SCH 
L.) to be used by NASA are as follows:

A1  Aircraft
A2  Missiles
A3  Ships
A5  Weapons
A6  Ammunition
A7  Electronic and Communications Equipment
B1  Military Building Supplies
B8  Production Equipment (for Contractor's Account)
B9  Production Equipment (Government-Owned)
C2  Construction
C3  Maintenance, Repair, and Operating Supplies for Facilities
C9  Miscellaneous/Other

    (g) Installation requests for assistance shall be directed to the 
Headquarters Office of Procurement (Code HS).



PART 1812--ACQUISITION OF COMMERCIAL ITEMS--Table of Contents




        Subpart 1812.1--Acquisition of Commercial Items--General

Sec.
1812.102  Applicability.

  Subpart 1812.3--Solicitation Provisions and Contract Clauses for the 
                     Acquisition of Commercial Items

1812.301  Solicitation provisions and contract clauses for the 
          acquisition of commercial items.
1812.302  Tailoring of provisions and clauses for the acquisition of 
          commercial items.

 Subpart 1812.4--Unique Requirements Regarding Terms and Conditions for 
                            Commerical Items



Sec. 1812.404  Warranties.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 61 FR 47079, Sept. 6, 1996, unless otherwise noted.



        Subpart 1812.1--Acquisition of Commercial Items--General



Sec. 1812.102  Applicability. (NASA supplements paragraph (c))

    (c) For the acquisition of commercial items of any value, the 
MidRange procedures described in part 1871 may be used to the extent 
they are consistent and compliant with FAR part 12 and part 1812. Unless 
specifically stated, in any conflict between these parts the descending 
order of precedence is FAR part 12, part 1812, and part 1871.



  Subpart 1812.3--Solicitation Provisions and Contract Clauses for the 
                     Acquisition of Commercial Items



Sec. 1812.301  Solicitation provisions and contract clauses for the acquisition of commercial items. (NASA supplements paragraph (f))

    (f)(i) The following clauses may be used in acquisitions of 
commercial items:
    (A) 1852.214-71, Grouping for Aggregate Award.
    (B) 1852.214-72, Full Quantities.
    (C) 1852.215-84, Ombudsman.
    (D) 1852.219-75, Small Business and Small Disadvantaged Business 
Subcontracting Reporting.
    (E) 1852.219-76, NASA Small Disadvantaged Business Goal.
    (F) 1852.228-72, Cross-Waiver of Liability for Space Shuttle 
Services.
    (G) 1852.228-76, Cross-Waiver of Liability for Space Station 
Activities.
    (H) 1852.228-78, Cross-Waiver of Liability for NASA Expendable 
Launch Vehicles.
    (I) 1852.232-70, NASA Progress Payment Rates.

[[Page 189]]

    (ii) No other provisions and clauses prescribed in the NFS or center 
documents shall be used in acquisitions of commercial items, except as 
permitted by FAR 12.302.



Sec. 1812.302  Tailoring of provisions and clauses for the acquisition of commercial items. (NASA supplements paragraph (c))

    (c) The Associate Administrator for Procurement (Code HS) is the 
approval authority for waivers. Requests shall be prepared and submitted 
in accordance with 1801.471.



 Subpart 1812.4--Unique Requirements Regarding Terms and Conditions for 
                            Commercial Items



Sec. 1812.404  Warranties.

    (b) In acquisitions under the Simplified Acquisition Threshold 
specified in FAR part 13, no express warranty should be required other 
than the offeror's commercial warranty.

[[Page 190]]



          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES





PART 1813--SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES--Table of Contents




                         Subpart 1813.1--General

Sec.
1813.104  Procedures.

               Subpart 1813.2--Blanket Purchase Agreements

1813.203  Establishment of blanket purchase agreements.
1813.203-1  General.
1813.204  Purchases under blanket purchase agreements.
1813.205  Review procedures.

                 Subpart 1813.3--Fast Payment Procedure

1813.302  Conditions for use.
1813.303  Preparation and execution of orders.

                      Subpart 1813.4--Imprest Fund

1813.402  Agency responsibilities.
1813.402-70  Establishment of imprest funds.
1813.403  Conditions for use.
1813.404  Procedures.

                     Subpart 1813.5--Purchase Orders

1813.502  Unpriced purchase orders.
1813.505  Purchase order and related forms.
1813.505-1  Optional Form (OF) 347, Order for Supplies or Services, and 
          Optional Form (OF) 348, Order for Supplies or Services--
          Continuation.
1813.505-3  Standard Form 44, Purchase Order-Invoice-Voucher.

           Subpart 1813.70--Procurement Request Overlay Method

1813.7001  General.
1813.7002  Limitations on use.
1813.7003  Procedures.

                      Subpart 1813.71--Credit Cards

1813.7101  Scope of subpart.
1813.7102  Applicability.
1813.7103  Limitations.
1813.7104  Cardholders.
1813.7105  Approving officials.
1813.7106  COTR.
1813.7107  Administrative office contact.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28235, July 5, 1989, unless otherwise noted.



                         Subpart 1813.1--General



Sec. 1813.104  Procedures.

    (a) Small purchase procedures are exempt from the requirements of 
FAR part 6.
    (b) When bulk funding is deemed appropriate, see Financial 
Management Manual 9030-5e and 9040-4b.
    (c) For sole-source procurements over $2,500 involving (1) an 
individual employed by NASA during the past 2 years or (2) a firm in 
which such an individual is a partner, principal officer, or majority 
shareholder, or that is otherwise controlled or predominantly staffed by 
such individuals (see subpart 1803.70), the notation required by FAR 
13.106(c)(2) shall be submitted for approval at a level above the 
contracting officer.

[54 FR 28235, July 5, 1989, as amended at 55 FR 47478, Nov. 14, 1990; 57 
FR 40853, Sept. 8, 1992]



               Subpart 1813.2--Blanket Purchase Agreements

1813.203  Establishment of blanket purchase agreements.



Sec. 1813.203-1  General.

    Blanket purchase agreements (BPA's) may be prepared and issued on 
any installation-prescribed purchase order form.



Sec. 1813.204  Purchases under blanket purchase agreements.

    Non-GS/GM-1102 or 1105 personnel shall not be authorized to place 
orders under a BPA in amounts greater than $2,500 for an individual 
order. A contracting officer warrant is not required to place an order 
under a BPA; however, individuals authorized to order must be specified 
in writing, by the contracting officer. Authority to place

[[Page 191]]

orders should be revoked immediately upon evidence of abuse.

[54 FR 28235, July 5, 1989, as amended at 55 FR 47478, Nov. 14, 1990]



Sec. 1813.205  Review procedures.

    The procurement officer shall ensure that all BPA files are reviewed 
at least annually to ascertain that appropriate procedures are being 
followed and that prices obtained are fair and reasonable.



                 Subpart 1813.3--Fast Payment Procedure



Sec. 1813.302  Conditions for use.

    Pursuant to FAR 13.302, the dollar limitation for NASA is hereby 
established as the small purchase ceiling for defense agencies.



Sec. 1813.303   Preparation and execution of orders.

    Orders incorporating the fast payment procedure may be issued on 
Optional Form 347, Order for Supplies or Services, or on any other 
installation-prescribed purchase order form.



                      Subpart 1813.4--Imprest Fund

1813.402  Agency responsibilities.



Sec. 1813.402-70   Establishment of imprest funds.

    (a) Authority. Upon approval of the Chief, Disbursing Office of the 
Treasury Department, the Director of Financial Management, NASA 
Headquarters, may authorize the establishment of imprest funds and any 
required subsequent increases to them. The number of imprest funds at an 
installation should generally be restricted to the minimum number 
necessary to ensure efficiency in small purchase transactions. Financial 
Management Manual 9650, Imprest Fund Procedures, should be used in 
conjunction with this subpart.
    (b) Amount of imprest funds. The amount of each fund shall be 
established on the basis of the estimated monthly payments to be made 
from it and the need for replenishment without undue administrative 
burden. Financial management officers of each NASA installation will 
designate one or more employee(s) in their office to make unannounced 
cash verifications of imprest fund balances at least quarterly. Each 
cash verification will be documented, and working papers retained for 
review by the Office of the Inspector General and personnel of the 
Financial Management Division, NASA Headquarters. In conjunction with 
the cash verification, the level of funds held in an imprest fund shall 
be evaluated on a semiannual basis (see FAR 13.402). The disclosure of 
any unauthorized use of or irregular accounting for an imprest fund 
during the quarterly cash verification, or the annual audit or at any 
other time, will be reported to the Director, Financial Management 
Division, NASA Headquarters.
    (c) Imprest fund cashiers. (1) Imprest fund cashiers shall be 
appointed in accordance with Financial Management Manual 9650 and are 
authorized to make cash payments for materials and nonpersonal services, 
maintain custody of funds, and file periodic vouchers to account for and 
replenish the imprest fund. Financial management or fiscal officers and 
others having access to accounting records or responsibility for 
originating, approving, processing, or receiving requirements are not 
eligible for appointment as imprest fund cashiers. In no event shall an 
imprest fund cashier have access to or control of more than one imprest 
fund.
    (2) An alternate imprest fund cashier may be appointed (i) if the 
volume of work requires an alternate to the principal cashier or (ii) to 
provide service during the principal cashier's absence. Appointment 
requirements for principal cashiers shall apply to alternate cashiers. 
In planned short-term absences of the principal cashier, cash may be 
advanced by the principal to the alternate in an amount not to exceed 
the alternate's limit of the fund. Upon resuming duties, the principal 
cashier shall return the cash receipt to the alternate after obtaining 
paid receipts, subvouchers, and residual cash. In the absence of the 
principal cashier for more than 15 working days or for a period of time 
that will require submission of a reimbursable voucher before the 
principal's return, transfer of funds from the principal to the 
alternate

[[Page 192]]

cashier shall be accomplished as prescribed by Financial Management 
Manual 9650.

[54 FR 28235, July 5, 1989. Redesignated and amended at 60 FR 47712, 
Sept. 14, 1995]



Sec. 1813.403   Conditions for use.

    (a) Imprest Funds may be used to make local cash payments of $300 or 
less for transactions involving--
    (1) Small purchases and nonpersonal services which are readily 
available for delivery and do not require technical specifications or 
technical inspection and where direct cash payment will be advantageous 
to the government;
    (2) Travel advances and vouchered reimbursements for travel expenses 
(not to exceed $500 for any one transaction);
    (4) Postage stamps, parcel post, c.o.d. postal charges, and local 
drayage;
    (5) Reimbursement for the cost of official local transportation and 
telephone or telegraphic services; or
    (6) Prepaid transportation charges indicating f.o.b. shipping point 
which do not exceed $100.
    (b) Imprest funds shall not be used for--
    (1) Articles or services, particularly repetitive items, which are 
available from store stock inventories;
    (2) Purchases of articles or services in quantities or amounts 
covered by mandatory sources of supply;
    (3) Articles or services which are restricted by statutory or 
regulatory laws, i.e., newspapers and similar items;
    (4) Paying salaries or wages;
    (5) Advances, other than those authorized in 1813.404(b);
    (6) Cashing checks or other negotiable instruments;
    (7) For money orders or personal services unless authorized by the 
Director, Financial Management Division, NASA Headquarters; or
    (8) Paying for international shipments or household goods shipments.

[54 FR 28235, July 5, 1989. Redesignated and amended at 60 FR 47712, 
Sept. 14, 1995]



Sec. 1813.404  Procedures.

    (a) Receipt of material. (1) All material purchased through the 
imprest fund shall be delivered to a designated receiving activity. The 
receiver shall examine the material to ascertain that the quantities and 
items described in the procurement request and the supplier's sales 
document are present and in satisfactory condition. If the material is 
acceptable, the receiver shall stamp the sales document ``Received and 
Accepted,'' date and sign the document, and pass it to the imprest fund 
cashier for payment. In the absence of a supplier's sales document, a 
receipted Standard Form 1165, Receipt for Cash--Subvoucher, shall be 
used to record the receipt of purchases made from the imprest fund and 
shall be processed in the same manner.
    (2) When it is not practicable to obtain delivery of material at 
destination on a c.o.d. basis, advance arrangements may be made for the 
material to be picked up. The imprest fund cashier may then advance cash 
to an authorized individual to pick up and pay for the material. 
Necessary certifications of receipt and acceptance of material shall be 
obtained on one of the documents as indicated in paragraph (a)(1) of 
this section. Receipt for cash payment (see paragraph (c) of this 
section) shall be made on the same document, which will serve as the 
imprest fund receipt.
    (3) When prior arrangements for picking up material are not 
practicable, the imprest fund cashier may advance cash to an authorized 
individual to make a proposed purchase.
    (b) Advance of funds. Individuals receiving a cash advance from the 
imprest fund cashier shall be required to sign the ``Interim Receipt for 
Cash'' portion of Standard Form 1165. After purchase has been made, the 
individual will return any unused cash to the imprest fund cashier with 
the necessary certifications of receipt, acceptance, and cash payment, 
at which time the imprest fund cashier shall void the interim receipt 
for cash. Cash advanced should generally be accounted for daily, but may 
be advanced for a period not to exceed five consecutive work days.
    (c) Certification of cash payment. (1) The original receipt document 
(or a copy tendered as the original) presented to the imprest fund 
cashier for payment shall be stamped with a certification containing--

[[Page 193]]

    (i) A statement that cash payment was received in full;
    (ii) The amount paid;
    (iii) The date of payment; and
    (iv) The signature and title of the supplier or agent receiving the 
payment.
    (2) Alterations or corrections to documents tendered for payment 
shall be initialled by the person making the change. Changes in the 
amount paid shall be initialled by the individual receiving payment.
    (d) Responsibilities of imprest fund cashier. Pending receipt of 
material, the imprest fund cashier shall keep a file of procurement 
requests covering imprest fund purchases. Before payment or acceptance 
of the document tendered for settlement of an advance, the cashier shall 
verify the necessary certification of receipt and the supplier's billed 
price or the price paid. If the supplier's receipt for cash payment is 
not obtained for a purchase of $15.00 or less, the person making the 
purchase shall complete and sign the cash receipt document indicating 
receipt of funds from the imprest fund.
    (e) Payments. (1) C.o.d. Upon presentation of an authorized document 
with the necessary certification of receipt for supplies or services, 
the imprest fund cashier or other authorized individual shall pay the 
supplier or agent and obtain the certification of cash payment as 
required by paragraph (c) of this section.
    (2) Receipt from common carrier or post office. When c.o.d. 
shipments are received or picked up from a common carrier or post 
office, the certification of cash payment may be accomplished on a list 
of the packages provided by the post office or common carrier. Such 
receipt shall be supported by copies of the applicable sales document, 
if available.
    (3) Periodic payments. When use of a blanket purchase agreement is 
not suitable and it is administratively convenient and agreeable to the 
supplier, periodic payments from the imprest fund may be made for 
supplies delivered on a repetitive basis, provided that the accumulated 
amount of the deliveries for the specified period does not exceed the 
dollar limitation imposed on the imprest fund method by 1813.403.
    (4) Failure to ship c.o.d. When material is ordered c.o.d., but is 
shipped by the supplier subject to payment by check, Standard Form 1034, 
Public Voucher for Purchases and Services Other than Personal, may be 
used to make payment. Under these circumstances, the receiver shall 
prepare the necessary certification of receipt and shall forward the 
receipted document through the imprest fund cashier for:
    (i) Attachment of the supporting documents authorizing the shipment 
and
    (ii) Submission to the disbursing officer for payment.
    (f) Reimbursement of imprest funds. (1) The imprest fund shall be 
reimbursed in accordance with Financial Management Manual 9650.
    (2) When a supplier refunds cash before submission of the Standard 
Form 1129, Reimbursement Voucher, covering the payment, the imprest fund 
cashier shall accept the refund, return it to the imprest fund, and 
enter the amount on the original of the supplier's receipt. When refund 
is made after submission of the applicable Standard Form 1129, the 
imprest fund cashier shall enter the amount on the retained copy of the 
reimbursement voucher and promptly:
    (i) Submit the refund directly to the disbursing officer or
    (ii) Deposit it directly on Standard Form 209, Certificate of 
Deposit.
    (g) Accounting. Recordkeeping shall be based on simplified 
memorandum records to permit frequent reconciliation of funds and should 
show:
    (1) The amount of cash received,
    (2) The amount paid out, and
    (3) The balance on hand at the close of each day.

It is permissible to group numerous small payments by numbering payment 
documents and affixing to them an adding-machine tape showing the total 
applying to each grouping of payment documents.
    (h) Audits. The Financial Management Officer of each NASA 
installation having an Imprest Fund will perform an annual audit of the 
advances and disbursements made from the fund. Documentation covering 
the annual

[[Page 194]]

audit is retained for review by the Office of Inspector General and 
personnel of the Financial Management Division, NASA Headquarters. The 
Office of Inspector General, NASA Headquarters, will conduct an audit of 
each Imprest Fund not less than once every 3 years. More frequent audits 
may be made where, on the basis of past findings, the audits have 
disclosed procedural deficiencies.

[54 FR 28235, July 5, 1989. Redesignated and amended at 60 FR 47712, 
Sept. 14, 1995]



                     Subpart 1813.5--Purchase Orders



Sec. 1813.502  Unpriced purchase orders.

    (a) NASA contracting officers shall ensure that suppliers receiving 
unpriced purchase orders are carefully selected.
    (b) Orders shall not contain an estimated target unit price.
    (c) Suitable local records and controls of outstanding unpriced 
purchase orders shall be maintained to ensure regular follow-up with 
suppliers until the order is priced. These records should include any 
information available to support the fairness and reasonableness of the 
proposed monetary limitation.
1813.505  Purchase order and related forms.



Sec. 1813.505-1  Optional Form (OF) 347, Order for Supplies or Services, and Optional Form (OF) 348, Order for Supplies or Services--Continuation.

    Optional Forms 347 and 348 or Installation-prescribed forms may be 
used.

[54 FR 28235, July 5, 1989. Redesignated and amended at 60 FR 47712, 
Sept. 14, 1995]



Sec. 1813.505-3  Standard Form 44, Purchase Order-Invoice-Voucher.

    The $2,500 ceiling for use of the Standard Form 44 at FAR 13.505-3 
is raised to $10,000 for purchases of aviation fuel and oil only.



           Subpart 1813.70--Procurement Request Overlay Method



Sec. 1813.7001  General.

    This method is an acceptable adjunct to other simplified purchase 
procedures and may be used in placing oral orders when use of a BPA is 
too cumbersome or no BPA exists. Each transaction is recorded on a small 
form that attaches to, becomes a part of, and overlays a portion of the 
procurement request. Suppliers' delivery tickets are used as additional 
supporting documentation. Use of this method eliminates the 
administrative requirements for preparing and mailing individual 
purchase orders. This method may be used when suppliers:
    (a) Are willing to accept oral orders and
    (b) Can be reasonably relied upon to fill them in accordance with 
the terms of the oral transaction.



Sec. 1813.7002  Limitations on use.

    This method shall not be used if--
    (a) The requirements of more than one procurement request are to be 
combined in a transaction;
    (b) More than one delivery will be required (unless the requirements 
of a single procurement request are to be divided among several 
suppliers and only one delivery per supplier is required);
    (c) An installation-prescribed form or Optional Form 347 has been 
utilized;
    (d) It is necessary or desirable to incorporate specifications or 
other terms and conditions in a written purchase order;
    (e) GSA Federal Supply Schedules are to be used;
    (f) Purchases are to be made from or through other Government 
agencies; or
    (g) The amount of the purchase is over $2,500 (unless the purchase 
is made under a BPA).



Sec. 1813.7003  Procedures.

    (a) After competitive selection of the source (see FAR 13.106), the 
order may be placed by telephone. Particular care shall be taken to 
ensure that the supplier agrees to accept the order without written 
confirmation and that the order number, item descriptions, quantities, 
prices, and other terms and conditions are clearly understood. If the 
amount of the purchase does not exceed $300, the supplier should be 
encouraged to deliver c.o.d. (see FAR 13.403).

[[Page 195]]

    (b) The supplier shall be given all pertinent and specific 
instructions at the time of placing the order, including the 
installation's methods of handling charge purchases to be billed within 
a period of one month or less.
    (c) Upon placing the order, the contracting officer shall (1) ensure 
that a preprinted overlay form is affixed to the procurement request 
and, if necessary, after the overlay is filled in (2) adjust the 
estimated unit and total cost figures of the procurement request to 
reflect the actual purchase price. This shall be done by lining through 
the original procurement request figures so that they remain legible. 
Any other changes in the original information of the procurement request 
to make it conform to the facts of the purchase shall be made in like 
manner. The preprinted overlay form shall contain at least the following 
information:

    Order No.
    Supplier (Name)
    (Address, City)
    (State, Zip)
    Discount Terms
    Delivery Date
    Buyer
    --
    F.o.b. Destination
    Procurement
    Placement
    Code
    Action: procurement request line items
(  ),  (  ), (etc.) complete*
    Total procurement request action: partial,* complete*
    Payment: cash,* charge*
    --
(Contracting Officer Signature)
    Date Signed
    (*Circle as appropriate)

    (d) The contracting officer shall sign and date the completed 
overlay form on the procurement request.
    (e) The procurement request with overlay shall be reproduced and 
distributed internally in accordance with the installation's local 
instructions to provide copies to the offices or activities responsible 
for receiving and accepting the merchandise, making cash payment, or 
processing charge purchases.
    (f) In accordance with local instructions, copies of the supplier's 
delivery ticket received with the merchandise shall be distributed to 
establish receipt and acceptance of merchandise and serve as a basis for 
cash payment or obligation of funds and subsequent payment of charge 
purchases.

[54 FR 28235, July 5, 1989, as amended at 60 FR 47712, Sept. 14, 1995]



                      Subpart 1813.71--Credit Cards

    Source: 54 FR 53630, Dec. 29, 1989, unless otherwise noted.



Sec. 1813.7101  Scope of subpart.

    This subpart authorizes the use of the U.S. Government Credit Card. 
(See 1870.4 for NASA procedures under the NASA Credit Card System.)



Sec. 1813.7102  Applicability.

    This subpart applies to installations that have elected to 
participate in the credit card program by issuing a delivery order under 
the contract for Governmentwide Commercial Credit Card Service awarded 
by the General Services Administration, Federal Supply Service.



Sec. 1813.7103  Limitations.

    To use the GSA schedule contract, an installation must take the 
following actions before issuing a delivery order:
    (a) Designate cardholders, approving officials, a Contracting 
Officer's Technical Representative (COTR), an Administrative Office 
Contact, and a Financial Management Office Contact.
    (b) Establish procedures for covering the contractor's 
administrative fee.



Sec. 1813.7104  Cardholders.

    (a) Designation. The Procurement Officer shall determine the number 
of cardholders to be authorized at the installation and shall designate 
individual cardholders based on installation nomination procedures. The 
Procurement Officer shall issue a delegation of authority to each 
cardholder specifying the authority being delegated and any limitation 
on the authority. See 48 CFR (FAR) 3.104-4(h)(5) for procurement 
integrity requirements.
    (b) Single purchase limits. The authority delegated to a cardholder 
shall not exceed the small purchase limit in FAR 13.000. This authority 
is the limit for a single purchase, which may include multiple items as 
part of the same transaction.

[[Page 196]]

    (c) Limitation on designations. Cardholders with authority for 
purchases above $2,500 shall be warranted contracting officers appointed 
under 1801.6.
    (d) Training. (1) Cardholders with purchase authority not exceeding 
$2,500 shall have completed 4 hours of training as determined by the 
cognizant procurement officer.
    (2) Cardholders with purchase authority over $2,500, but not 
exceeding $25,000, shall have completed the formal training required by  
   1801.603-2(e)(1)(iii)(A).
    (e) Review. The Procurement Officer shall establish a system for 
periodic review of the credit card transaction process, including a 
review of a sample of purchases, to ensure that proper purchasing 
procedures are being followed and that internal controls to avoid fraud, 
waste, and abuse are effective.

[54 FR 53630, Dec. 29, 1989, as amended at 58 FR 51138, Sept. 30, 1993; 
60 FR 16059, Mar. 29, 1995]



Sec. 1813.7105  Approving officials.

    Unless installation procedures otherwise provide for their 
designation, the Procurement Officer shall designate approving 
officials. The approving official should be the cardholder's supervisor 
or a higher level individual. A cardholder may not be an approving 
official for purchases made by the cardholder or the cardholder's 
supervisor.



Sec. 1813.7106  COTR.

    The Procurement Officer shall appoint a COTR and notify GSA of the 
appointment.



Sec. 1813.7107  Administrative office contact.

    The Procurement Officer shall appoint an installation Administrative 
Office Contact (who may be the COTR).



PART 1814--SEALED BIDDING--Table of Contents




                  Subpart 1814.2--Solicitation of Bids

Sec.
1814.201  Preparation of invitations for bids.
1814.201-5  Part IV--Representations and instructions.
1814.201-6  Solicitation provisions.
1814.201-670  NASA solicitation provisions.

                   Subpart 1814.3--Submission of Bids

1814.302  Bid submission

          Subpart 1814.4--Opening of Bids and Award of Contract

1814.404  Rejection of bids.
1814.404-1  Cancellation of invitations after opening.
1814.407  Mistakes in bids.
1814.407-3  Other mistakes disclosed before award.
1814.407-4  Mistakes after award.
1814.408  Award.
1814.408-1  General.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 61 FR 47079, Sept. 6, 1996, unless otherwise noted.



                  Subpart 1814.2--Solicitation of Bids

1814.201  Preparation of invitations for bids.



Sec. 1814.201-5  Part IV--Representations and instructions. (NASA supplements paragraph (c))

    (c) Section M, Evaluation factors for award.
    (i) The contracting officer shall state if award is to be made in 
the aggregate (all-or-non basis) or by specified groups of items.
    (ii) if bidders are required to have special technical 
qualifications because of the complexity of the equipment being 
purchased or for some other reason, the contracting officer shall state 
those qualifications.
1814.201-6  Solicitation provisions.



Sec. 1814.201-670  NASA solicitation provisions.

    (a) The contracting officer shall insert the provision at 1852.214-
70, Caution to Offerors Furnishing Descriptive Literature, in 
invitations for bids. See FAR 52.214-21, Descriptive Literature.
    (b) The contracting officer shall insert the provision at 1852.214-
71, Grouping for Aggregate Award, in invitations for bids, except for 
construction, when it is in the Government's best interest not to make 
award for less than specified quantities solicited for certain

[[Page 197]]

items or groupings of certain items. Insert the item numbers and/or 
descriptions applicable for the particular procurement.
    (c) The contracting officer shall insert the provision at 1852.214-
72, Full Quantities, in invitations for bids, except for construction, 
when it is in the Government's best interest not to make award for less 
than the full quantities solicited.
    (d) If a pre-bid conference is planned, the contracting officer 
shall insert the provision at 1852.215-77, Preproposal/Pre-bid 
Conference. See 1815.407-70(d).



                   Subpart 1814.3--Submission of Bids



Sec. 1814.302  Bid submission. (NASA supplements paragraph (b))

    (b) NASA contracting officers shall not consider telegraphic bids 
communicated by the telephone.



          Subpart 1814.4--Opening of Bids and Award of Contract

1814.404  Rejection of bids.



Sec. 1814.404-1  Cancellation of invitations after opening. (NASA supplements paragraphs (c) and (e))

    (c) The authority to make the determination at FAR 14.404-1(c) is 
delegated to the contracting officer, except as provided in paragraph 
(e)(1) of this subsection.
    (e)(1) A determination that includes an authorization to complete 
the acquisition through negotiation shall be made by the procurement 
officer, in consultation with the chief counsel.
1814.407  Mistakes in bids.



Sec. 1814.407-3  Other mistakes disclosed before award. (NASA supplements paragraph (e))

    (e) Procurement officers are authorized to make the determinations 
under 14.407-3 (a), (b), (c) and (d).



Sec. 1814.407-4  Mistakes after award. (NASA supplements paragraph (d))

    (d) Determinations shall be made by the procurement officer.
1814.408  Award.



Sec. 1814.408-1  General.

    (1) A notice of award as a specific document is used when the 
contracting officer needs to inform a responsible bidder that its offer 
was determined to be the most advantageous to the Government 
(considering only price and price-related factors) and that the formal 
award will be made upon satisfaction of specified pre-performance 
conditions.
    (2) The notice of award is not a contractual instrument. It does not 
authorize the successful bidder to perform and, in itself, does not 
obligate the Government to award a contractual document. Its limited 
purpose is to provide: evidence of the Government's selection of the 
successful bidder; instruction to that bidder to satisfy specified pre-
performance conditions; and a statement that the Government intends to 
award the contract to the successful bidder upon satisfaction of these 
conditions if a contract is awarded as a result of the invitation for 
bids.
    (3) Use of a notice of award is optional. The contracting officer 
may issue the award document itself without first issuing a notice of 
award. However, there are instances when a notice of award should be 
considered, for example, in construction contracts where performance or 
payment bonds are required. In such cases, the most cost effective 
technique is to require only the successful bidder to provide the 
necessary bonds. The notice of award advises the successful bidder to 
provide the bonds, and it also serves as formal evidence from the 
Government of the impending award if such evidence is required to secure 
the bonds.
    (4) The notice of award shall not be issued unless bids have been 
evaluated and a selection made, and a definitive contract document is 
ready for execution upon satisfaction of the conditions specified in the 
notice. Upon satisfaction of these conditions, the approved and executed 
contract instrument shall be provided to the successful bidder.
    (5) Since the notice of award is not a contractual document 
authorizing performance, the period of performance of the resultant 
contract shall not be

[[Page 198]]

based on the date of issuance or receipt of the notice of award. The 
period of performance specified in the contract shall be based on some 
other reference point, such as the date the contract is provided to the 
successful bidder, a mutually agreeable effective date of a later 
authorization to proceed date.
    (6) The notice of award can be issued by any formal written means 
such as a letter, telegram or electronic means. The notice should be 
substantially the same as the following format.

                                 Format

    Subject: Notice of Award--Invitation for Bids (IFB) (a). This notice 
is to advise you that your bid (b) in response to the subject IFB has 
been determined to be the most advantageous to the Government 
(considering only price and price-related factors). It is the 
Government's intention to award you a contract in the amount of (c) for 
this effort pending satisfaction of the following pre-performance 
conditions: (d)
    Evidence (e) of satisfaction of these conditions must be provided to 
the contracting officer by (f). In the event these conditions are not 
satisfied by this date, the Government reserves the right to award the 
contract to the bidder who submitted the next most advantageous bid.
    Please note that this notice of award is not a contractual document. 
It does not obligate the Government to award you, or any other bidder, a 
contract relative to the subject IFB, and it does not authorize you to 
proceed with contract performance or incur costs pursuant to such 
performance. Any costs incurred for contract performance prior to your 
receipt of a fully executed contract document are at your own risk and 
are not recoverable under any Government contract should the Government 
fail, for whatever reason, to award you a contract in response to the 
subject IFB.
    If a contract is awarded after evidence of satisfaction of the pre-
performance conditions listed above is provided to the contracting 
officer by the specified due date, the date of commencement of work will 
be provided with the formal award. This date will be based on (g).

    Notes.--The contracting officer shall insert, where shown, the 
following information:
    (a) Identification of the IFB by number and title.
    (b) Identification of the contractor's bid.
    (c) The award price.
    (d) The preperformance conditions (e.g., any required payment and 
performance bonds).
    (e) The evidence required to satisfy the pre-performance conditions 
(e.g., the actual payment and performance bonds).
    (f) The date by which the evidence must be provided to the 
contracting officer.
    (g) Identification of the date for commencement of performance. The 
period of performance of the contract shall not be based on the date of 
issuance or receipt of the notice of award. It shall be based on the 
date the contract is provided to the successful bidder, a mutually 
agreeable effective date, or a later authorization to proceed date.

[[Page 199]]



PART 1815--CONTRACTING BY NEGOTIATION--Table of Contents




  Subpart 1815.4--Solicitation and Receipt of Proposals and Quotations

Sec.
1815.402  General.
1815.405  Solicitations for information or planning purposes.
1815.405-1  General.
1815.405-71  Procedure.
1815.405-72  Special considerations.
1815.406  Preparing requests for proposals (RFP's) and requests for 
          quotations (RFQ's).
1815.406-2  Part I--The Schedule.
1815.406-4  Part III--List of documents, exhibits, and other 
          attachments.
1815.406-5  Part IV--Representations and instructions.
1815.406-70  Instructions for technical proposal and business management 
          proposal submission.
1815.406-71  Solicitation cover page.
1815.407  Solicitation provisions.
1815.407-70  NASA solicitation provisions.
1815.412  Late proposals, modifications, and withdrawals of proposals.
1815.413  Disclosure and use of information before award.
1815.413-2  Alternate II.

                  Subpart 1815.5--Unsolicited Proposals

1815.502  Policy.
1815.503  General.
1815.504  Advance guidance.
1815.504-70  Unsolicited proposal brochure.
1815.505  Content of unsolicited proposals.
1815.505-70  Unsolicited renewal proposals.
1815.506  Agency procedures.
1815.508  Prohibitions.
1815.508-70  NASA prohibitions.
1815.509  Limited use of data.
1815.509-70  Limited use of proposals.
1815.570  Foreign proposals.

                    Subpart 1815.6--Source Selection

1815.608  Proposal evaluation.
1815.608-70  Technical evaluation.
1815.608-71  Automatic data processing equipment.
1815.608-72  Uncompensated overtime.
1815.609  Competitive range.
1815.610  Written or oral discussion.
1815.611  Best and final offers.
1815.613  Alternative source selection procedures.
1815.613-70  General.
1815.613-71  Evaluation and negotiation of procurements conducted in 
          accordance with source evaluation board (SEB) procedures.
1815.613-72  NASA solicitation provisions.

                  Subpart 1815.7--Make-or-Buy Programs

1815.704  Items and work included.
1815.706  Evaluation, negotiation, and agreement.
1815.708  Contract clause.
1815.708-70  NASA contract clause.

                    Subpart 1815.8--Price Negotiation

1815.804  Cost or pricing data and information other than cost or 
          pricing data.
1815.804-1  Prohibition on obtaining cost or pricing data.
1815.804-2  Requiring cost or pricing data.
1815.805-4  Technical analysis.
1815.805-470  Responsibilities of NASA requirements personnel.
1815.805-5  Field pricing support.
1815.807  Prenegotiation objectives.
1815.807-70  Content of the prenegotiation position memorandum.
1815.807-71  Installation reviews.
1815.807-72  Headquarters reviews.
1815.808  Price negotiation memorandum.
1815.870  Subcontract price redetermination.
1815.870-1  General.
1815.870-2  NASA contract clause.

                         Subpart 1815.9--Profit

1815.902  Policy.
1815.903  Contracting officer responsibilities.
1815.903-70  Contracting officer authority for negotiating architect-
          engineer fees.
1815.970  NASA structured approach for profit or fee objective.
1815.970-1  Contractor effort.
1815.970-2  Other factors.
1815.970-3  Facilities capital cost of money.
1815.971  Payment of profit or fee under letter contracts.

Subpart 1815.10--Preaward, Award, and Postaward Notifications, Protests, 
                              and Mistakes

1815.1003  Notification to successful offeror.
1815.1004  Debriefing of unsuccessful offerors.
1815.1004-1  Scope of subpart.
1815.1004-2  Policy.
1815.1004-3  Designated officials.
1815.1004-4  Procedures.

                       Subpart 1815.70--Ombudsman

1815.7001  NASA Ombudsman Program.
1815.7002  Commerce Business Daily announcements, solicitations and 
          contracts.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28239, July 5, 1989, unless otherwise noted.

[[Page 200]]



  Subpart 1815.4--Solicitation and Receipt of Proposals and Quotations



Sec. 1815.402  General.

    Before issuance of the solicitation, NASA procurement officers may, 
by written determination and without power of redelegation, authorize 
the use of facsimile proposals for individual procurements.

[54 FR 53631, Dec. 29, 1989]
1815.405  Solicitations for information or planning purposes.



Sec. 1815.405-1  General.

    (a) Solicitations for information or planning purposes are 
particularly useful when a procurement can be properly negotiated only 
after potential offerors have had an opportunity to become familiar with 
a large quantity of data, or when it would be desirable to have industry 
participation in formulating and reviewing complex specifications or 
requirements.
    (b) Solicitations for information or planning purposes may not be 
used as a means for prequalifying offerors.
    (c) Requirements for automatic data processing equipment or support 
services to perform specified operations or achieve certain results may 
be suitable for advance review and comment by the private sector when 
diverse approaches to accomplishing mission objectives may be feasible. 
The material made available in advance may vary from a comprehensive 
draft of a proposed requirement to a partial draft; e.g., statement of 
work and/or specifications or reports.

[60 FR 40513, Aug. 9, 1995]



Sec. 1815.405-71  Procedure.

    (a) In making advance information available to industry, sufficient 
time should be allowed to permit potential sources an opportunity, 
commensurate with the task, to prepare and submit a response to the 
solicitation for information or planning purposes. Invitations for bids 
and requests for proposals may not be used for these purposes. 
Solicitations for information or planning purposes may be issued only 
with the procurement officer's prior approval (see FAR 15.405-1).
    (b) Solicitations for information or planning purposes shall at 
least:
    (1) Request an expression of interest in the contemplated 
requirement and
    (2) Designate a time and place for submitting responses.

Each solicitation shall define, as explicitly as possible, the 
information the Government desires and indicate whether it is 
contemplated that the solicitation will be followed by a conference. 
After approval by the procurement officer, the solicitation shall be 
forwarded to potential sources and synopsized according to FAR subpart 
5.2.
    (c) Each source responding to the solicitation shall be advised of 
the details of any pending conference. The conference, when provided 
for, shall be conducted by procurement personnel and should be attended 
by technical, legal, and other personnel as appropriate. Care must be 
taken not to prejudice any future competition. All sources shall be 
furnished identical information in connection with the proposed 
requirement. Care shall be taken to safeguard any information received 
in confidence.

[54 FR 28239, July 5, 1989, as amended at 55 FR 47478, Nov. 14, 1990; 60 
FR 40513, Aug. 9, 1995]



Sec. 1815.405-72   Special considerations.

    The procedure in 1815.405-71 does not constitute procurement in the 
usual sense, where the Government is fully aware of its requirements and 
has incorporated them in a formal solicitation or firms are invited to 
make known their interest in a procurement by responding to a 
presolicitation notice. Under the solicitation for information or 
planning purposes procedure, interested firms may suggest changes in a 
proposed specification or statement of work; propose alternatives in 
concept, method, design, system integration, and the like that might 
result in lower costs without sacrificing performance; or recommend 
changes in other requirements regarding the product or service involved. 
Care should be exercised in this connection to avoid potential conflict 
of interest situations. (See FAR subpart 9.5.)

[[Page 201]]



Sec. 1815.406   Preparing requests for proposals (RFP's) and requests for quotations (RFQ's).

    (a) Requests for proposals (RFP's), including amendments to them, 
shall be prepared by the contracting office, with assistance from 
technical or other offices as required, and be issued by the contracting 
officer or an authorized representative. The RFP has a twofold purpose:
    (1) To convey to prospective offerors the information they need to 
prepare a proposal properly, and
    (2) To solicit the information that procurement and technical 
personnel need to appraise proposals.
    (b) When advisable, particularly in the case of research and 
development, proposals shall be requested in two parts:
    (1) An unpriced technical proposal, and
    (2) A cost proposal cross-referenced to the technical proposal (see 
1815.406-70).
    (c) Technical and contracting personnel will mutually agree on page 
limitations for their respective portions of an RFP. Unless approved in 
writing by the Procurement Officer, the page limitation for the 
contracting portion of an RFP (all sections except section C, 
Description/specifications/work statement) shall not exceed 150 pages, 
and the page limitation for the technical portion (Section C) shall not 
exceed 200 pages. Attachments to the RFP count as part of the section to 
which they relate. In determining page counts, a page is defined as one 
side of a sheet, 8\1/2\''  x  11'', with at least one inch margins on 
all sides, using not smaller than 12 characters per inch or equivalent 
type. Foldouts count as an equivalent number of 8\1/2\'' x 11'' pages. 
The metric standard format most closely approximating the described 
standard 8\1/2\'' x 11'' size may also be used.
    (d) Page limitations shall also be established for proposals 
submitted in competitive procurements. Accordingly, technical and 
contracting personnel will mutually agree on page limitations for each 
portion of the proposal. Unless a different limitation is approved in 
writing by the Procurement Officer, the total initial proposal, 
excluding title pages, tables of content, and cost/price information, 
shall not exceed 500 pages using the page definition of 1815.406(c). 
Firm page limitations shall also be established for Best and Final 
Offers (BAFOs), if requested. The appropriate BAFO page limitations 
should be determined by considering the complexity of the procurement 
and the extent of any written or oral discussions. The same BAFO page 
limitations shall apply to all offerors. Pages submitted in excess of 
the specified limitations for the initial proposal and BAFO will not be 
evaluated by the Government and will be returned to the offeror.

[54 FR 28239, July 5, 1989, as amended at 58 FR 61630, Nov. 22, 1993; 59 
FR 11199, Mar. 10, 1994; 60 FR 40513, Aug. 9, 1995]



Sec. 1815.406-2   Part I--The Schedule.

    Section C, Description/specifications/work statement. (a) In source 
evaluation board procurements, when detailed program or project support 
plans will be required as part of the offeror's proposal, but will not 
be important discriminators in the evaluation process and cover only 
technical or management support to the primary product or service being 
offered, describe the requirements for those plans in separate 
appendices to the statement of work (see 1815.406-70(a)(7)).
    (b) In solicitations for cost-reimbursement support services 
contracts requiring price quotations, include available data regarding 
the quantity and quality of supplies and services required, set forth in 
terms of work hours of identifiable categories of labor, including 
experience and related qualifications, and in terms of quantities of 
supplies, all exclusive of costs (see 1815.406-70(b)(8)).



Sec. 1815.406-4   Part III--List of documents, exhibits, and other attachments.

    Section J, List of attachments. List here all of the documents, 
exhibits, and other attachments making up the solicitation package; give 
form number, name, date, and number of pages for each document; give 
type and identifier (for example, ``Exhibit A''), name, and number of 
pages for each exhibit, appendix, or other attachment (for example: work 
frequency schedules, work

[[Page 202]]

breakdown structures, work statements, specifications, special 
requirements, or other documents too lengthy to be conveniently written 
into the solicitation proper).



Sec. 1815.406-5   Part IV--Representations and instructions.

    (a) Section K, Representations, certifications, and other statements 
of offerors or quoters. See 1845.104(b).
    (b) Section L, Instructions, conditions, and notices to offerors or 
quoters. (1) Indicate the method and format of price quotation desired 
(fixed-price or cost-reimbursement, if known at the time), including a 
reference to the necessity for cost or price breakdown.
    (2) Describe the information required to support proposed prices; 
e.g., subcontract structure, purchasing system, royalty, and cost or 
price information (see FAR subparts 15.7 and 15.8, and FAR part 44).
    (3) Include instructions for disposing of drawings and 
specifications supplied with the solicitation.
    (4) Include a statement of information required to facilitate 
evaluation of technical and financial capabilities and a statement 
covering special technical capabilities any contractors must possess.
    (5) Include an instruction reflecting desirability of a separation 
between the offeror's business management proposal and technical 
proposal. For evaluation purposes, separate proposals, if time permits, 
should be received; therefore the format should be flexible enough to 
permit separate requirements (see 1815.406-70).
    (6) State that the solicitation does not commit the Government to 
pay any cost incurred in submitting the offer or in making necessary 
studies or designs for its preparation, nor to contract for services or 
supplies.
    (7) Include a statement that ``Proposals must set forth full, 
accurate, and complete information as required by the solicitation 
(including attachments). The penalty for making false statements in 
proposals is prescribed in 18 U.S.C. 1001.''
    (8) See 1846.470.

[54 FR 28239, July 5, 1989, as amended at 59 FR 12197, Mar. 16, 1994; 60 
FR 40513, Aug. 9, 1995]



Sec. 1815.406-70   Instructions for technical proposal and business management proposal submission.

    When it is contemplated that the contract will exceed $1,000,000 
(or, if appropriate, lesser amounts), the solicitation should require 
submission of the information in paragraphs (a) and (b) of this section, 
if applicable, in addition to any other information specified elsewhere 
in this section 1815.406.
    (a) Technical proposal. Proposals should include the following:
    (1) The method by which the offeror proposes to solve the technical 
problems of the project, other than information to be furnished 
elsewhere as a part of program or project support plan summaries (see 
paragraph (a)(7) of this section).
    (2) Any specific exceptions to proposed technical requirements.
    (3) A statement of background experience in fields relating to the 
procurement.
    (4) Names and resumes of experience of key technical personnel who 
will be employed on the project and the extent to which each will 
participate, together with an organization chart of the segment of the 
offeror's organization that will be directly assigned to the project, 
listing names and job categories.
    (5) Description and location of the company-owned research, test, 
and production equipment and facilities available for use on the 
project, accompanied by a separate list of any additional facilities or 
equipment required in the performance of the work, and a separate list 
of existing Government facilities available to the contractor and 
required for use on the project.
    (6) Hourly time estimates (without pricing information) by labor 
class for each phase or segment of the project, the extent to which 
these estimates are based on the use of employees presently on the 
offeror's payrolls who will be available for the work as required, and 
an indication of the number and types of personnel necessary to be hired 
and arrangements made to obtain them.
    (7) For procurements described in 1815.406-2(a)--
    (i) As part of the original proposal, estimates of the cost and work 
force to

[[Page 203]]

perform major tasks under each requirement separately identified, and a 
summary of the major task elements to perform each requirement; and
    (ii) A statement by each offeror that it is understood that, if 
selected for negotiations, the offeror will ultimately be required to 
furnish a detailed program or project support plan that will be 
negotiated into the contract prior to award.
    (b) Business management proposal. Proposals should include the 
following:
    (1) The organization proposed for carrying out the project, 
including organization charts showing the interrelationship of business, 
technical, and subcontract management and an indication of all levels of 
operation and management, from lower levels through intermediate 
management to top-level management.
    (2) A summary of the experience of all key personnel who will 
conduct the managerial affairs of the project.
    (3) Contractual procedures proposed for the project to effect 
administrative and engineering changes, describing any differences from 
existing procedures.
    (4) The extent to which the offeror has invested corporate funds in 
research and development work in the project area or directly related 
areas and plans for future expenditures for such work; and the extent, 
if any, to which the offeror is willing to participate in the cost of 
the project.
    (5) A statement as to--(i) The capacity at which company-owned 
research, test, and production equipment and facilities required to 
perform the work are currently working;
    (ii) The extent to which they could handle the additional workload 
imposed by this project;
    (iii) The cost of any additional facilities (as defined at (FAR) 48 
CFR 45.301) required to perform the work and how the costs are to be 
charged, with information as to whether the facilities will be 
contractor-furnished or Government-furnished and, if contractor-
furnished, the alternatives considered (e.g., short-term lease, long-
term lease with option to transfer the lease to a third party, 
purchase), including the long and short term benefits of each 
alternative, a description of any unique requirements or arrangements 
involved with each alternative, as well as the reasons for the 
alternative selected, a copy of the proposed lease or purchase 
agreement, identification of all costs included in the lease and 
ownership alternatives considered; and
    (iv) The value of existing Government facilities available to the 
offeror and required for use on the project, showing the Government 
agencies and facilities contracts involved.
    (6) A statement of past performance and experience, including--(i) A 
list of Government contracts in excess of $1,000,000 received in the 
past three years or currently in negotiation involving mainly research 
and development work, showing each contract number, the Government 
agency placing the contract, the type of contract, and a brief 
description of the work;
    (ii) For each cost-reimbursement contract listed pursuant to 
paragraph (b)(6)(i) of this section, a list of amounts of cost overruns 
or underruns, reasons for them, and percentage of fixed fee;
    (iii) For each contract listed pursuant to paragraph (b)(6)(i) of 
this section, a record of contract completion as against completion date 
anticipated at the time of entering into the contract, with explanations 
for completion delays; and
    (iv) An identification and explanation of any terminations for 
default or convenience.
    (7) A balance sheet for the offeror's last fiscal year, accompanied 
by a profit and loss statement.
    (8) A detailed cost or price proposal, furnished as a separate, 
detachable element of the business management proposal and based on the 
effort described or estimated in the solicitation. This cost or price 
proposal is a requirement for the proposal to be responsive. If the 
offeror believes the work can be accomplished more efficiently with 
organizational plans, staffing, management, or equipment differing from 
those indicated in the solicitation, it may also submit an alternative 
proposal supported by a detailed cost or price proposal (see 1815.406-2, 
section C, (b)); this

[[Page 204]]

alternative proposal must be in addition to, not in lieu of, the basic 
proposal.

[54 FR 28239, July 5, 1989, as amended at 59 FR 46359, Sept. 8, 1994]



Sec. 1815.406-71  Solicitation cover page.

    The contracting officer may include a cover page on solicitations if 
it conforms to the following policies:
    (a) The cover should not unnecessarily repeat or paraphrase any part 
of the solicitation; rather, it should only describe subject material, 
except as otherwise provided in this section.
    (b) The cover may draw the offeror's attention to specific 
limitations on who may submit offers, such as the Small Business Set-
Aside provision.
    (c) The cover may include a general reminder that representations 
and certifications must be carefully read and completed, but should not 
include specific listings of individual provisions from Section K, 
Representations and Certifications.
    (d) The cover may include specific listings of clauses that are not 
located in Section K, but which contain boxes or fill-ins that must be 
completed as part of the offer.
    (e) The cover must contain a statement that in the event of a 
conflict between the cover and the solicitation, the solicitation takes 
precedence.
    (f) The cover may include a very brief description or ``executive 
summary'' of the requirement. This summary should be no longer than the 
CBD synopsis, and preferably shorter; if the project title makes clear 
what is being procured, that should be sufficient. Generally, only major 
procurements should utilize a summary.

[59 FR 21667, Apr. 26, 1994]



Sec. 1815.407  Solicitation provisions.

    (a) The provision at FAR 52.215-10, Late Submissions, Modifications, 
and Withdrawals of Proposals, prescribed in FAR 15.407(c), shall not be 
used in solicitations for the Small Business Innovation Research (SBIR) 
program or for broad agency announcements listed in 1835.016. See 
instead 1815.407-70(b).
    (b) The provision at FAR 52.215-12, Restriction on Disclosure and 
Use of Data, prescribed in FAR 15.407(c), shall not be used in NASA 
solicitations. See instead 1815.407-70(a).



Sec. 1815.407-70  NASA solicitation provisions.

    (a) The contracting officer shall insert in RFP's and RFQ's (but not 
in solicitations for information or planning purposes) the provision at 
1852.215-72, Restriction on Use and Disclosure of Proposal/Quotation 
Information (Data). (See also 1815.509-70(a)).
    (b) In accordance with 1815.412, the contracting officer shall use 
the provision at 1852.215-73, Late Submissions, Modifications, and 
Withdrawals of Proposals (AO and SBIR Programs), in lieu of the 
provision at FAR 52.215-10 in Announcements of Opportunity issued 
pursuant to subpart 1870.1 and in Small Business Innovation Research 
(SBIR) solicitations. This provision allows the project office to accept 
late proposals or proposal modifications and late best and final offers 
if, in the selection official's judgment, to do so is in the 
Government's best interest.
    (c) The contracting officer may insert a provision substantially as 
stated at 1852.215-74, Alternate Proposals, in competitive requests for 
proposals if receipt of alternate proposals would benefit the 
Government. See FAR 52.215-13(d).
    (d) In accordance with 1815.406-5(b)(7), the contracting officer 
shall insert the provision at 1852.215-75, Expenses Related to Offeror 
Submissions, in all requests for proposals.
    (e) In accordance with 1815.406-5(b)(8), the contracting officer 
shall insert the provision at 1852.215-76, False Statements, in all 
requests for proposals to advise offerors of the penalty for making 
false statements in proposals.
    (f) The contracting officer shall insert the provision at 1852.215-
77, Preproposal/Pre-bid Conference, in competitive requests for 
proposals and invitations for bids where the Government intends to 
conduct a preproposal or pre-bid conference. Insert the appropriate 
specific information relating to the conference. Supplemental 
information, such as an agenda summary and whether a tour is included, 
may be identified in ``Other Information.''

[[Page 205]]

    (g) The contracting officer shall insert the provision at 1852.215-
80, Disposal of Unsuccessful Proposals, in competitive requests for 
proposals.
    (h) For grouping items in the solicitation in contemplation of an 
aggregate award, see 1814.201-670(b).
    (i) For requiring full quantities to be proposed, see 1814.201-
670(c).
    (j) The contracting officer shall insert the provision at 1852.215-
81, Proposal Page Limitations, in all competitive requests for 
proposals.
    (k) The contracting officer shall insert the provision at 1852.215-
82, Offeror Oral Presentations, in competitive requests for proposals 
when the Government intends to allow offerors to make oral presentations 
prior to commencement of the Government's formal evaluation.

[54 FR 28239, July 5, 1989, as amended at 58 FR 61631, Nov. 22, 1993]



Sec. 1815.412  Late proposals, modifications, and withdrawals of proposals.

    For broad agency announcements listed in 1835.016 and SBIR Phase I 
and Phase II solicitations--
    (a) Proposals, or modifications to them, received from qualified 
firms after the latest date specified for receipt may be considered if a 
significant reduction in cost to the Government is probable or if there 
are significant technical advantages, as compared with proposals 
previously received. In such cases, the project office shall investigate 
the circumstances surrounding the submission of the late proposal or 
modification, evaluate its content, and submit written recommendations 
and findings to the selection official or a designee as to whether there 
is an advantage to the Government in considering the proposal.
    (b) The selection official or a designee shall determine whether to 
consider the proposal.
    (c) Offerors may withdraw proposals any time before award, provided 
the conditions in paragraph (b) of the provision at 1852.215-73, Late 
Submissions, Modifications, and Withdrawals of Proposals (AO and SBIR 
Programs), are satisfied.

[54 FR 28239, July 5, 1989, as amended at 60 FR 40514, Aug. 9, 1995; 60 
FR 47712, Sept. 14, 1995]



Sec. 1815.413  Disclosure and use of information before award.

    (a) The alternate procedures at FAR 15.413-2 shall be used for NASA 
procurements in lieu of those prescribed at FAR 15.413-1. The policies 
and procedures of FAR 15.413 and NFS 1815.413-2 shall apply both before 
and after award. The notice at FAR 15.413-2(e) shall be placed on the 
cover sheet of all proposals, whether solicited or unsolicited. (See 
1805.303-70(a)(1)(iii) regarding release of the names of firms 
submitting offers.)
    (b) During evaluation proceedings, whether or not a source 
evaluation board is used, NASA personnel participating in any way in the 
evaluation may not reveal any information concerning the evaluation to 
anyone not also participating, and then only to the extent that the 
information is required in connection with the evaluation. When non-NASA 
personnel participate, they shall be instructed to observe these 
restrictions. (Information shall be provided to unsuccessful offerors in 
accordance with FAR 15.1004 and 1815.1004. See also 1815.413-2.)

[54 FR 28239, July 5, 1989, as amended at 60 FR 47712, Sept. 14, 1995]



Sec. 1815.413-2  Alternate II.

    (a) General. This section prescribes the policy and procedures 
pertaining to the use of individuals from outside the Government as 
evaluators of proposals. The references in FAR 15.413-2 to the provision 
at FAR 52.215-12 shall be considered to be references to the provision 
at 48 CFR 1852.215-72.
    (b) Policy. It is NASA policy to have proposals evaluated by the 
most competent technical and management sources available. Qualified 
proposal evaluators will normally be available from within the 
Government. However, from time-to-time it may be necessary to make a 
determination of non-availability of qualified Government evaluators as 
required by 48 CFR 1837.204 and to disclose proposal information to non-
Government evaluators.
    (c) Approval to release proposal outside the Government. (1) 
Regarding proposals and proposal information resulting from Requests For 
Proposals, after the determination of non-availability is

[[Page 206]]

made (48 CFR 1837.204) and a copy of the determination is included in 
the procurement file, the Procurement Officer, with the concurrence of 
the Chief Counsel, may authorize the release of the proposals and 
proposal information to non-Government evaluators. Under FAR 37.203(d), 
the determination of non-availability of qualified personnel need not be 
made when the proposal information is released to a JPL employee for 
evaluation.
    (2) Information from SBIR, STTR, NRA, AO and unsolicited proposals 
may be authorized for disclosure to non-Government evaluators by the 
NASA program official one level higher than the official responsible for 
the evaluation without making the determination of non-availability as 
required by 48 CFR 1837.204.
    (d) Appointing non-Government evaluators as special Government 
employees. (1) Except for JPL employees, evaluators of proposal 
information resulting from an RFP shall be appointed as special 
Government employees.
    (2) Appointment as a Special Government employee is a separate 
action from the approval required by paragraph (c) of this section and 
may be processed concurrently. Appointment as a special Government 
employee shall be made by:
    (i) The NASA Headquarters personnel office when the release of 
proposal information is to be made by a NASA Headquarters office; or
    (ii) The Field Installation personnel office when the release of 
proposal information is to be made by the Field Installation.
    (3) Non-Government evaluators need not be appointed as special 
Government employees when they evaluate information from SBIR, STTR, 
NRA, AO, and unsolicited proposals.
    (e) Release of proposal information. The written approvals required 
by paragraphs (c)(1) and (c)(2) of this section shall be provided to the 
contracting officer before the actual release of the proposal 
information. As a minimum, the approval shall:
    (1) Identify the precise proposal information being released;
    (2) Identify the person receiving the proposal information and 
include a statement that the person has been appointed a special 
Government employee or a statement of the applicable exception under 
paragraph (d)(3) of this section;
    (3) Provide a justification of the need for disclosure of the 
proposal information to the non-Government evaluator(s); and
    (4) Provide a statement that a signed ``Agreement and Conditions for 
Evaluation of Proposals (August 1993),'' in accordance with paragraph 
(f) of this section, will be obtained prior to the proposal to the 
evaluator.
    (f) Agreements. For any proposal information, (i.e., RFP, SBIR, 
STTR, NRA, AO and unsolicited proposals) the NASA official who actually 
releases/transfers the proposal information to a non-Government 
evaluator, including employees of JPL, shall, prior to such disclosure, 
require each non-Government evaluator to sign the following ``Agreement 
and Conditions for Evaluation of Proposals (April 1993),'' and to 
complete and sign a ``Procurement Integrity Certification for 
Procurement Officials'' (Optional Form 333), in accordance with FAR 
3.104-12.

     Agreement and Conditions for Evaluation of Proposals (Aug 1993)

    (1) The recipient agrees to use proposal information for NASA 
evaluation purposes only. This limitation does not apply to information 
that is otherwise available without restrictions to the Government, 
another competing contractor, or the public.
    (2) The recipient agrees that the NASA proposal cover sheet notice 
(FAR 15.413-2(e) and NFS 1815.413(a)), and any notice that may have been 
placed on the proposal by its originator, shall be applied to any 
reproduction or abstract of any proposal information furnished.
    (3) Upon completion of the evaluation, the recipient agrees to 
return all copies of proposal information or abstracts, if any, to the 
NASA office that initially furnished the proposal information for 
evaluation.
    (4) Unless authorized in writing by the NASA official releasing the 
proposal information, the recipient agrees not to contact either the 
business entities originating the proposals or any of their employees, 
representatives, or agents concerning any aspect of the proposal 
information or extracts covered by this agreement.
    (5) The recipient agrees to review his or her financial interests 
relative to the entities whose proposal information NASA furnishes for 
evaluation. At any time the recipient becomes aware that he or she or a 
person

[[Page 207]]

with a close personal relationship (household family members, business 
partners, or associates) has or acquires a financial interest in the 
entities whose proposal information is subject to this agreement, the 
recipient shall immediately advise the NASA official releasing the 
proposal information, protect the proposal information, and cease 
evaluation activities pending a NASA decision resolving the conflict of 
interest.
    (6) I understand that the term ``leave the Government'' in the last 
sentence of the Procurement Integrity Certification for Procurement 
Officials, Optional Form 333, means ``cease to function as a procurement 
official.''

Signature:______________________________________________________________

Name typed or printed:__________________________________________________

Date:___________________________________________________________________

[End of Agreement]

    (g) Affixing of a protection notice. The official who actually 
releases/transfers the proposal information shall review each proposal 
or the extracted item of proposal information that is to be released and 
ensure that the notice at FAR 15.413-2(e) (See 48 CFR 1815.413(a)) is 
affixed to each proposal or the extracted item of proposal information 
before it is released/transferred.
    (h) JPL. If JPL personnel, in evaluating proposal information 
obtained from a standard RFP released to them by NASA, must obtain 
assistance from non-JPL, non-Government evaluators, JPL must obtain 
written approval from the Procurement Officer before releasing the 
information; except that information from SBIR, STTR, NRA, AO, and 
unsolicited proposals may be disclosed outside JPL with prior written 
approval, in compliance with paragraph (c)(2) of this section.

[61 FR 5313, Feb. 12, 1996]



                  Subpart 1815.5--Unsolicited Proposals



Sec. 1815.502  Policy.

    NASA will foster and encourage the submission of unique and 
innovative unsolicited proposals relevant to agency mission requirements 
by expeditious and equitable handling of all unsolicited proposals.

[54 FR 28239, July 5, 1989, as amended at 60 FR 40514, Aug. 9, 1995]



Sec. 1815.503  General.

    (a) Submission to other agencies or JPL. NASA will not accept for 
formal evaluation unsolicited proposals initially submitted to another 
agency or to the Jet Propulsion Laboratory (JPL) without the offeror's 
express consent.
    (b) Transferring proposals. When a reviewing official determines 
that an unsolicited proposal is not related to NASA's mission or may be 
of interest to other agencies or to JPL in addition to NASA, the 
proposal control officer may identify for the offeror other agencies 
whose missions may bear a relationship to the subject matter of the 
unsolicited proposal. NASA shall not respond to an unsolicited proposal 
by transferring it to another agency or JPL for action without the 
offeror's written consent.
    (c) Relationship to award. An unsolicited proposal may result in the 
award of a contract, a grant, a cooperative agreement, or other 
agreement. If a grant or cooperative agreement is used, the NASA Grant 
and Cooperative Agreement Handbook (NHB 5800.1) applies.

[54 FR 28239, July 5, 1989, as amended at 60 FR 40514, Aug. 9, 1995]
1815.504  Advance guidance.



Sec. 1815.504-70  Unsolicited proposal brochure.

    The Office of Procurement (Code HK) is responsible for preparing for 
public use a brochure titled ``Guidance for the Preparation and 
Submission of Unsolicited Proposals,'' which shall be provided without 
charge by procurement and other NASA officials in response to requests 
for proposal submission information. The brochure, issued pursuant to 
FAR 15.504, constitutes NASA's single, official, general-purpose 
guidance document for public use in submitting unsolicited proposals. A 
deviation is required for use of any modified or summarized version of 
the brochure or for alternate means of general dissemination of 
unsolicited proposal information. The Headquarters Office of Procurement 
(Code HK) is responsible for internal distribution of the brochure.

[54 FR 28239, July 5, 1989, as amended at 60 FR 40514, Aug. 9, 1995]

[[Page 208]]

1815.505  Content of unsolicited proposals.



Sec. 1815.505-70  Unsolicited renewal proposals.

    Renewal proposals, (i.e., those for the extension or augmentation of 
current contracts) are subject to the same FAR and NFS regulations, 
including the requirements of the Competition in Contracting Act, as are 
proposals for new contracts. Unsolicited renewal proposals within the 
scope of an open NASA Research Announcement (NRA) shall be evaluated in 
the same manner as unsolicited proposals described in 1815.506(b).



Sec. 1815.506  Agency procedures.

    (a) NASA unsolicited-proposal coordinating offices. (1) NASA 
Headquarters and each NASA field installation shall designate an 
organizational entity as its unsolicited-proposal coordinating office 
for receiving and coordinating the handling and evaluation of 
unsolicited proposals in accordance with the policies and procedures of 
FAR subpart 15.5, this subpart 1815.5, and NHB 5800.1.
    (2) Each installation shall establish procedures for handling 
proposals initially received by other offices within the installation. 
Misdirected proposals shall be forwarded by the coordinating office to 
the proper installation. Field installation coordinating offices are 
also responsible for providing guidance to potential offerors regarding 
the appropriate NASA officials to contact for general mission-related 
inquiries or other preproposal discussions.
    (b) Relationship to open NRAs. An unsolicited proposal for a new 
effort, identified by an evaluating office as being within the scope of 
an open NRA, shall be evaluated as a response to that NRA under 
1835.016-70(e), provided that the evaluating office can either:
    (1) State that the proposal is not at a competitive disadvantage or
    (2) Give the offeror an opportunity to amend the unsolicited 
proposal to ensure compliance with the applicable NRA proposal 
preparation instructions.

If these conditions cannot be met, the proposal must be evaluated 
separately.
    (c) Reconsideration. An appropriately revised submission that is 
responsive to comments contained in an initial determination of 
inadequacy under FAR 15.506-1 shall be reconsidered by NASA officials.
    (d) Information requirements. Coordinating offices shall keep 
records of unsolicited proposals received and shall provide prompt 
status information to requestors. These records shall include, at a 
minimum, the number of unsolicited proposals received, funded, and 
rejected during the fiscal year; the identity of the offerors; and the 
office to which each was referred. The numbers shall be broken out by 
source (large business, small business, university, or nonprofit 
institution).

[54 FR 28239, July 5, 1989, as amended at 55 FR 27088, June 29, 1990; 60 
FR 40514, Aug. 9, 1995]



Sec. 1815.508  Prohibitions.

    FAR 15.508(b) shall not apply to NASA; see instead 1815.508-70.



Sec. 1815.508-70  NASA prohibitions.

    Information (data) in unsolicited proposals furnished to the 
Government is to be used for evaluation purposes only. Disclosure 
outside the Government for evaluation is permitted only to the extent 
authorized by, and in accordance with procedures in, FAR 15.413-2 and 
1815.413.



Sec. 1815.509  Limited use of data.

    FAR 15.509 shall not apply to NASA. See instead 1815.509-70.



Sec. 1815.509-70  Limited use of proposals.

    (a) The provision at 1852.215-72, Restriction on Use and Disclosure 
of Proposal/Quotation Information (Data), is applicable to unsolicited 
proposals.
    (b) If an unsolicited proposal is received with a more restrictive 
legend than made applicable by paragraph (a) of this section, the 
procedures of FAR 15.413-2(c) apply.
    (c) Upon receipt in the coordinating office, the Government notice 
in FAR 15.413-2(e) shall be placed on the cover sheet of all unsolicited 
proposals.
    (d) Unsolicited proposals shall be evaluated outside the Government 
only to the extent authorized by, and in accordance with the procedures 
prescribed in, FAR 15.413-2(f) and 1815.413.

[[Page 209]]

    (e) If a request is made under the Freedom of Information Act for 
any information contained in an unsolicited proposal, the procedures of 
FAR 15.413-2(g) apply.



Sec. 1815.570  Foreign proposals.

    Unsolicited proposals from foreign sources are subject to NMI 
1362.1, Initiation and Development of International Cooperation in Space 
and Aeronautical Programs.

[59 FR 12197, Mar. 16, 1994]



                    Subpart 1815.6--Source Selection



Sec. 1815.608  Proposal evaluation.

    The authority in FAR 15.608(b) to determine in writing that 
rejection of all proposals received in response to a solicitation is in 
the public interest is delegated to the contracting officer.



Sec. 1815.608-70  Technical evaluation.

    (a) Technical evaluation should include consideration of--
    (1) The offeror's understanding of the scope of the work as shown by 
the scientific and technical approach proposed;
    (2) The availability and competence of experienced engineering, 
scientific, or other technical personnel;
    (3) The availability of necessary research, test, and production 
facilities;
    (4) Experience or pertinent novel ideas in the specific branch of 
science or technology involved;
    (5) The offeror's willingness to devote its resources to the 
proposed work with appropriate diligence; and
    (6) The offeror's proposed method of achieving the reliability 
required.
    (b) In making this evaluation, technical personnel may be given 
access to portions of the business proposals upon request. After 
evaluation and preparation of written findings by the technical 
personnel, proposals shall be returned to the negotiator. The 
contracting officer shall review the documentation supporting the 
written findings of the technical personnel to determine that such 
documentation is adequate and complete.



Sec. 1815.608-71  Automatic data processing equipment.

    In evaluating proposals containing a significant amount of cost for 
automatic data processing equipment (ADPE), the contracting officer 
should obtain from the offeror a feasibility study and a lease-versus-
purchase study covering the acquisition of such equipment or service. 
The contracting officer shall obtain the recommendations of the price 
analyst and appropriate ADPE technical personnel as to the adequacy of 
the studies and the offeror's determinations resulting from the studies. 
Particular attention should be given to proposals containing a high 
dollar amount for renting ADPE or complete systems to be used solely for 
performing the contract. Current Office of Management and Budget 
criteria (NHB 2410.1, Information Processing Resources Management) 
should be used, when applicable, as a guide in evaluating the offeror's 
studies. Contractors should be encouraged to--
    (a) Use ADPE machine time available within a reasonable geographic 
distance;
    (b) Use telecommunications links to remote Government-owned or--
leased ADPE systems; and
    (c) Purchase ADPE in preference to leasing the equipment when 
financial advantage is the sole or overriding factor.



Sec. 1815.608-72  Uncompensated overtime.

    (a) The contracting officer shall conduct a risk assessment of any 
proposal received for technical and professional services that includes 
unrealistically low labor rates, or uses a high level of uncompensated 
overtime (as defined in the provision at 48 CFR 1852.237-72, 
Identification of Uncompensated Overtime). Such practices on the part of 
the contractor may jeopardize its ability to successfully perform 
contract requirements due, for example, to its inability to hire or 
retain qualified personnel. Such a risk assessment shall be performed as 
part of the technical evaluation and considered in proposal evaluation 
(see 48 CFR (FAR) 22.11 and 48 CFR 1837.102(b)).
    (b) The risk assessment should consider factors such as--

[[Page 210]]

    (1) The number of hours that current employees have been accustomed 
to working, and the normal number of work hours for the local industry;
    (2) The turnover rates for the firm and for the industry in the 
firm's geographical area;
    (3) Whether employees involved in uncompensated overtime share 
directly in the firm's profits; e.g., through employee-ownership or a 
profit-sharing plan;
    (4) Whether the contract period of performance is short, or whether 
uncompensated overtime will be used for only a relatively short period 
of time;
    (5) Whether the firm uses approximately the same level of 
uncompensated overtime in its non-government business;
    (6) Any potential for decline in quality or safety both during 
performance and in any deliverable produced; and
    (7) The ability of the contractor to respond to an emergency 
requiring additional effort.

[60 FR 16064, Mar. 29, 1995]



Sec. 1815.609  Competitive range.

    For competitive range determinations under formal source selection 
procedures, see 1815.613-71(b)(4) and 1870.303, App. I, subparagraph 
406.7.a.

[55 FR 47478, Nov. 14, 1990]



Sec. 1815.610   Written or oral discussion.

    (FAR) 48 CFR 15.610(c)(2) is not applicable to NASA competitive 
negotiated procurements. The limited discussion procedures described in 
(FAR) 48 CFR 15.613 and 48 CFR 1815.613 shall be used instead.

[59 FR 10081, Mar. 3, 1994]



Sec. 1815.611  Best and final offers.

    For competitive procurements of $25 million or more, approval of the 
Associate Administrator for Procurement (Code HS) is required before 
reopening discussions and requesting additional best and final offers. 
For competitive procurements with values less than $25 million, approval 
of the Procurement Officer is required.

[60 FR 40514, Aug. 9, 1995]
1815.613  Alternative source selection procedures.



Sec. 1815.613-70   General.

    The source selection procedures in (FAR) 48 CFR 15.610, as modified 
by (FAR) 48 CFR 15.613 and 48 CFR 1815.613 to limit discussions with 
offerors, apply to all NASA competitive negotiated procurements except 
those conducted under the following procedures:
    (a) Announcements of Opportunity (see 1870.103, App. I).
    (b) NASA Research Announcements (see 1835.016-70 and 1870.203, App. 
I).
    (c) The Small Business Innovation Research (SBIR) program and the 
Small Business Technology Transfer (STTR) pilot program under the 
authority of the Small Business Act (15 U.S.C. 638).
    (d) Architect and Engineering (A&E) services (see (FAR) 48 CFR 36.6 
and 48 CFR 1836.6).

[59 FR 10081, Mar. 3, 1994, as amended at 59 FR 21667, Apr. 26, 1994]



Sec. 1815.613-71  Evaluation and negotiation of procurements conducted in accordance with source evaluation board (SEB) procedures.

    Unless one of the exceptions in 1815.613-70 (a) through (d) applies, 
the formal SEB procedures of 1870.303, App. I, shall be followed in all 
competitive negotiated procurements of $25 million or more (including 
the value of multiple awards, options, and later phases of the same 
project). The formal SEB procedures may be used in lesser valued 
procurements at the discretion of the Procurement Officer.

[54 FR 28239, July 5, 1989, as amended at 57 FR 40853, Sept. 8, 1992; 58 
FR 54299, Oct. 21, 1993; 58 FR 61631, Nov. 22, 1993; 59 FR 10081, Mar. 
3, 1994; 59 FR 11199, Mar. 10, 1994; 60 FR 40514, Aug. 9, 1995]



Sec. 1815.613-72  NASA solicitation provisions.

    (a) The provision at 1852.215-70, Increases in Estimated Costs, 
shall be included in all RFP's to be evaluated pursuant to SEB 
procedures, if award of a cost-reimbursement contract (with or without 
incentive arrangements) is contemplated. The purpose of this provision 
is to advise offerors selected for final negotiation that they may not

[[Page 211]]

unilaterally increase their estimated costs except for the reasons cited 
in the provision. Government negotiators are cautioned that when the 
second exception in the provision applies, there may be instances in 
which such increases in costs do not warrant additional fee.
    (b) The contracting officer shall insert the provision at 1852.215-
83, Alternate Method of Scoring Proposals, in all solicitations using 
formal SEB procedures.

[54 FR 28239, July 5, 1989, as amended at 58 FR 61631, Nov. 22, 1993]



                  Subpart 1815.7--Make-or-Buy Programs



Sec. 1815.704  Items and work included.

    Make-or-buy programs should not include items or work efforts 
estimated to cost less than $500,000.



Sec. 1815.706  Evaluation, negotiation, and agreement.

    The make-or-buy program review by the installation's small and 
disadvantaged business utilization specialist and the SBA representative 
(see FAR 15.706(b)) should be concurrent with the contracting officer's 
review. When urgent circumstances preclude this or if the small and 
disadvantaged business specialist or SBA representative fails to respond 
on a timely basis, the contracting officer shall include an explanatory 
statement in the contract file and transmit copies to the specialist and 
the representative.
1815.708  Contract clause.



Sec. 1815.708-70  NASA contract clause.

    (a) The contracting officer shall insert the provision at 1852.215-
78, Make-or-Buy Program Requirements, in solicitations requiring make-
or-buy programs as provided in FAR 15.703. This provision shall be used 
in conjunction with the clause at FAR 52.215-21, Changes or Additions to 
Make-or-Buy Program. The contracting officer may add an additional 
paragraph(s) identifying any other information required in order to 
evaluate the program.
    (b) The contracting officer shall insert the clause at 1852.215-79, 
Price Adjustment for ``Make-or-Buy'' Changes, in contracts that include 
FAR 52.215-21 with its Alternate I or II. Insert in the appropriate 
columns the items that will be subject to a reduction in the contract 
value.



                    Subpart 1815.8--Price Negotiation

    Source: 56 FR 48741, Sept. 26, 1991, unless otherwise noted.
1815.804  Cost or pricing data and information other than cost or 
pricing data.



Sec. 1815.804-1  Prohibition on obtaining cost or pricing data.

    (a)(1) When the adequate price competition exception will be used in 
a single-offer situation, the exception shall be approved by the head of 
the contracting activity. The exception document shall cite the 
authority of 10 U.S.C. 2306(b)(1)(B), and the procedure in paragraph (d) 
of this section shall be used.
    (2) The adequate price competition exception is applicable to both 
fixed-price and cost-reimbursement type procurements.
    (i) The use of this exception for a cost-reimbursement procurement 
requires the careful exercise of judgment on the part of the contracting 
officer based on the application of the guidance in FAR 15.804-
1(b)(1)(i)(A) and the regulations of this chapter to the facts of each 
procurement. The instances when its use under cost-reimbursement 
procurements would be appropriate should be limited. One reason is that, 
unlike fixed-price type contracts, where the final cost to the 
Government is set at the negotiated contract amount, in cost-
reimbursement contracts, the contract amount is only an estimate of the 
Government's final cost. As a consequence, the failure to obtain cost or 
pricing data could result in a competing contractor intentionally 
underestimating its costs for the purpose of winning the award, which 
could then cause the actual contract costs to significantly exceed those 
proposed.
    (ii) If and when negotiations conducted with a successful offeror 
after receipt of Best and Final Offers result in a substantial change in 
that

[[Page 212]]

offeror's price, the validity of any adequate price competition 
exception which previously applied could be nullified, regardless of 
contract type.
    (3) When the decision is made to apply the adequate price 
competition exception, that decision shall be documented in the contract 
file. In addition, for cost-reimbursement procurements, that document 
shall be signed by the procurement officer and a copy provided to the 
Analysis Division, Code HC.
    (b) When an exception is granted under FAR 15.804-1(c)(4) for 
repetitive submissions of catalog items, Government approval of the 
exception request shall state the effective period, usually not more 
than one year, and require the contractor to furnish any later 
information that might raise a question as to the exception's 
continuation.
    (c) When excepting submission under FAR 15.804-1(b)(2)(iii), the 
contracting officer shall document the reasons for the exception. It is 
generally appropriate to include a description of the similarities and 
differences from a commercial item, along with a discussion of the 
actual sales prices of the commercial item and an explanation of the 
value of the differences from that item. If the fact of substantial 
sales to the general public is well known, information addressing the 
quantity of sales is not required.
    (d) When the authority in FAR 15.804-1(a)(3) to grant an exception 
waiving the requirement for cost or pricing data is exercised, a copy of 
the approval shall be addressed to NASA Headquarters, Analysis Division, 
Code HC, and shall include the name and telephone number of the 
contracting officer and the basis for the contracting officer's 
determination of price reasonableness. The following is a sample format 
for the determination and findings for such a waiver.
              National Aeronautics and Space Administration
                           [Installation Name]
                       Determination and Findings
          Authority to Waive Submission of Cost or Pricing Data

    On the basis of the following findings and determination, the 
requirement for submitting cost or pricing data described below may be 
waived pursuant to the authority of 10 U.S.C. 2306a(b)(1)(B).
                                Findings
    1. The (1) proposes to enter into a contract with (2) for the 
procurement of (3).
    2. Pursuant to FAR 15.804-2, the proposed contractor is required to 
submit cost or pricing data. However, waiver of submission of the cost 
or pricing data described below is justified for the reasons indicated: 
(4)
                              Determination
    The requirement for submission of cost or pricing data described in 
the above findings for the proposed procurement is hereby waived.
_______________________________________________________________________
Center Director

Date____________________________________________________________________

                                 Notes--

    (1) Name of installation.
    (2) Name of proposed contractor.
    (3) Brief description of supplies or services.
    (4) Identification of the cost or pricing data requirements to be 
waived. The waiver may be partial, for example, limited to a particular 
subcontractor. Also describe the circumstances and conditions that make 
the proposed procurement an exceptional case, and state the reasons 
justifying the proposed waiver.

    (e) (1) NASA and the Canadian Department of Defense Production (DDP) 
have agreed that a letter of agreement between DDP and the U.S. Military 
Departments will also apply to NASA contracts with the Canadian 
Commercial Corporation (CCC), an agency of the Government of Canada.
    (2) The CCC, in the letter of agreement, provides its assurance of 
the fairness and reasonableness of the proposed prices, and also 
provides for follow up audit activity where appropriate to help insure 
that excess profits are found and refunded to NASA. The integrity of the 
representations of assurance made by the agents of the Canadian 
Government can be assumed.
    (3) The review and audit practices of the Government of Canada, the 
price assurance representations, and the adjustments rendered where 
profits are excessive are considered to satisfy the requirements of 10 
U.S.C. 2306a. Therefore, NASA has waived the requirement for 
certification of cost or pricing data submitted by the CCC during the 
period April 1, 1990 through March 31,

[[Page 213]]

1996. This waiver applies only to the certification and does not waive 
the requirement for submission of the data.

[56 FR 48741, Sept. 26, 1991, as amended at 57 FR 40853 and 40854, Sept. 
8, 1992; 59 FR 29961, June 10, 1994; 59 FR 66269, Dec. 23, 1994. 
Redesignated and amended at 60 FR 53879, Oct. 18, 1995; 61 FR 56125, 
Nov. 7, 1995]



Sec. 1815.804-2  Requiring cost or pricing data.

    (a) When an authorization to require cost or pricing data for a 
below-threshold procurement is granted pursuant to FAR 15.804-2(a)(2), a 
copy of the approval and supporting documentation shall be furnished to 
NASA Headquarters, Analysis Division, Code HC.
    (b) If a certificate of current cost or pricing data is made 
applicable as of a date other than the date of price agreement, the 
agreed date should generally be within two weeks of the date of price 
agreement.

[60 FR 53879, Oct. 18, 1995; 60 FR 56126, Nov. 7, 1995]
1815.805-4  Technical analysis.



Sec. 1815.805-470  Responsibilities of NASA requirements personnel.

    NASA requirements personnel are responsible for conducting a 
technical evaluation of proposals to determine whether the supplies or 
services offered will meet specifications. In addition, when a cognizant 
contract administration office is not requested to perform the technical 
analysis portion of a field pricing report in accordance with FAR 
15.805-5, the analysis will be the responsibility of NASA requirements 
personnel.



Sec. 1815.805-5  Field pricing support.

    (a) A field pricing report shall be requested and obtained in 
accordance with FAR 15.805-5(a)(1), except that for cost-reimbursement 
contracts, the threshold for obtaining a field pricing report is 
$1,000,000. A field pricing report is a technical report (prepared by 
either the cognizant DCMC ACO or NASA requirements person, except see 
1815.805-5(e)) and an audit report by the cognizant contract audit 
activity.
    (b) Whenever a field pricing report is required and a technical 
report or audit report is not obtained because available data 
reconsidered adequate for a determination of price reasonableness, the 
contracting officer shall document the contract file with the basis of 
the decision.
    (c) When the contracting officer requires an audit report by the 
auditor but has determined that a technical report by the cognizant ACO 
is not required, the contracting officer should address the request 
directly to the cognizant audit office. The ACO shall be provided an 
information copy of this request.
    (d) When input from the ACO or auditor involves merely a 
verification of information, contracting officers are encouraged to 
obtain this verification by direct telephone contact with the cognizant 
office and shall record it in the contract file.
    (e) When the thresholds at 1815.805-5(a) are met and the cost 
proposal is for a product of a follow-on nature, notwithstanding any 
other provision of section 1815.805-5, a complete field pricing report 
shall be requested from the cognizant contract administration office. 
The report will include, but not be limited to, actuals incurred under 
the previous contract, learning experience, technical and production 
analysis, and subcontract proposal analysis.

[58 FR 51140, Sept. 30, 1993, as amended at 59 FR 66269, Dec. 23, 1994]



Sec. 1815.807  Prenegotiation objectives.

    Before conducting negotiations requiring installation or 
Headquarters review, contracting officers or their representatives shall 
prepare a prenegotiation position memorandum setting forth the 
technical, business, contractual, pricing, and other aspects to be 
negotiated.



Sec. 1815.807-70  Content of the prenegotiation position memorandum.

    The prenegotiation position memorandum (PPM) should fully explain 
the contractor and Government positions. Since the PPM will ultimately 
become the basis for negotiation, it should be structured to track to 
the price negotiation memorandum (see FAR 15.808 and 1815.808). In 
addition to the information described in FAR 15.807 and, as appropriate, 
15.808(a), the PPM should

[[Page 214]]

address the following subjects, as applicable, in the order presented:
    (a) Introduction. Include a description and a history of the 
procurement and a history of prior procurements for the same or similar 
items. Address the extent of competition and its results. Identify the 
contractor and place of performance (if not evident from the description 
of the procurement). Document compliance with law, regulations and 
policy, including JOFOC, synopsis, method of contracting D&F, EEO 
compliance, and current status of contractor systems (see FAR 
15.808(a)(4)). In addition, the negotiation schedule should be addressed 
and the Government negotiating team members identified by name and 
position.
    (b) Type of contract contemplated. Explain the type of contract 
contemplated and the reasons for its suitability.
    (c) Special features and requirements. In this area, discuss any 
special features (and related cost impact) of the procurement, including 
such items as--
    (1) Letter contract or precontract costs authorized and incurred;
    (2) Results of preaward survey;
    (3) Contract option requirements;
    (4) Government property to be furnished;
    (5) Contractor/Government investment in facilities and equipment 
(and any modernization to be provided by the contractor/Government). 
Although not all inclusive, the following are to be covered:
    (i) The facilities needed by the contractor;
    (ii) How the facilities are to be provided (Government or 
contractor);
    (iii) If to be provided by the contractor, the alternatives 
considered (operating lease, capital lease, contractor purchase or 
construction, or other alternatives);
    (iv) Whether a financial guarantee has been requested by the 
offeror;
    (v) The reasons for the alternative selected; and
    (vi) How the costs are to be charged;
    (6) Plant reconversion or plant clearance (see 1845.106-71); and
    (7) Any deviations, special clauses, or unusual conditions 
anticipated, for example, unusual financing, warranties, EPA clauses and 
when approvals were obtained, if required.
    (d) Cost analysis. (1) Include a parallel tabulation, by element of 
cost and profit/fee, of the contractor's proposal, the Government's 
negotiation objective, and the Government's maximum position, if 
applicable. Explain the differences and how the Government position(s) 
were developed, including the estimating assumptions and projection 
techniques employed, and how the positions differ in approach. Include a 
discussion of excessive wages found (if applicable) and their planned 
resolution (see 1831.205-670). Explain how historical costs, including 
costs incurred under a letter contract (if applicable), were used in 
developing the negotiation objective.
    (2) Significant differences between the field pricing report 
(including any audit reports) and the negotiation objectives and/or 
contractor's proposal shall be highlighted and explained, as shall 
technical evaluation results that caused the Government's cost 
negotiation objectives to differ significantly from the contractor's 
proposed cost (such as differences in staffing). For each proposed 
subcontract meeting the requirement of FAR 15.806-2(a), provide the 
contracting officer's price or cost analysis and negotiation objective. 
The discussion of each major subcontract shall include the type of 
subcontract, the degree of competition achieved by the prime contractor, 
the price and, when appropriate, cost analyses performed on the 
subcontractor's proposal by the prime contractor, any unusual or special 
pricing or finance arrangements, and the current status of subcontract 
negotiations.
    (3) The rationale for the Government's profit/fee objectives and, if 
appropriate, a completed copy of the NASA Form 634, Structured 
Approach--Profit/Fee Objective, and DD Form 1861, Contract Facilities 
Capital Cost of Money, should be included. For incentive and award fee 
contracts, describe the planned arrangement in terms of share lines, 
ceilings, cost risk, and so forth, as applicable.
    (e) Negotiation approval sought. Indicate the specific approvals 
sought, for

[[Page 215]]

example, dollar parameters, special clauses/conditions and fee 
objectives.

[56 FR 48741, Sept. 26, 1991, as amended at 59 FR 12197, Mar. 16, 1994; 
59 FR 46359, Sept. 8, 1994; 60 FR 53879, Oct. 18, 1995]



Sec. 1815.807-71  Installation reviews.

    Each contracting activity shall establish a formal system for the 
review of prenegotiation memoranda. The scope of coverage, exact 
procedures to be followed, levels of management review, and contract 
file documentation requirements should be directly related to the dollar 
value and complexity of the procurement. The primary purpose of these 
reviews is to ensure that the negotiator, or negotiating team, is 
thoroughly prepared to enter into negotiations with a well-conceived, 
realistic, and fair plan.

[56 FR 48741, Sept. 26, 1991, as amended at 59 FR 29961, June 10, 1994; 
60 FR 53880, Oct. 18, 1995]



Sec. 1815.807-72  Headquarters reviews.

    Approval of the prenegotiation position by the Associate 
Administrator for Procurement is required before negotiations are 
entered into on any procurement action selected for Headquarters review. 
Generally, at the time a procurement is processed as a Master Buy Plan 
(MBP) action under subpart 1807.71, a decision will have been made as to 
whether the prenegotiation position will be subject to Headquarters 
review and approval. However, prenegotiation positions on any 
procurement actions may be selected for Headquarters review and approval 
at any point in the acquisition cycle prior to actual negotiations.
    (a) Advance information to be provided to Headquarters. The 
installation shall provide Code HS with the following, which shall be 
furnished as soon as practicable and sufficiently in advance of the 
planned commencement of negotiations to allow a reasonable period of 
time for Headquarters review:
    (1) Five copies of the PPM.
    (2) One copy each of the contractor's proposal, the Government 
technical evaluation, and all pricing reports (including any audit 
reports).
    (b) Safeguarding prenegotiation material. Prenegotiation data are 
very sensitive and should be handled accordingly. Close coordination 
with Code HS personnel should be maintained to ensure that 
prenegotiation material is not comprised during transit. Distribution of 
prenegotiation data shall be made on a need-to-know basis.

[56 FR 48741, Sept. 26, 1991, as amended at 57 FR 40854, Sept. 8, 1992; 
59 FR 46360, Sept. 8, 1994; 60 FR 53880, Oct. 18, 1995]



Sec. 1815.808  Price negotiation memorandum.

    (a) The price negotiation memorandum (PNM) serves as a detailed 
summary of (1) the technical, business, contractual, pricing (including 
price reasonableness), and other elements of the contract negotiated, 
and (2) the methodology and rationale used in arriving at the final 
negotiated agreement.
    (b) When the PNM is a ``stand-alone'' document, it shall contain the 
information required by the FAR and NFS for both PPM's and PNM's. 
However, when a PPM has been prepared under 1815.807, the subsequent PNM 
need only provide any information required by FAR 15.808 that was not 
provided in the PPM. The FAR 15.808(a)(4) requirement, that the current 
status of the contractor's systems be included, must be addressed in the 
PNM. If any of these systems do not apply to a particular procurement, 
the reasons for not including their status must be explained. Also, 
explain the differences between the prenegotiation objective position 
and the final negotiated settlement, including each proposed subcontract 
that meets the requirement of FAR 15.806-2(a). If, at the time of 
negotiated settlement for cost-reimbursement type prime contracts, there 
remain significant pricing uncertainties with respect to any proposed 
subcontract that meets the requirement of FAR 15.806-2(a), each such 
subcontract shall be discussed in the PNM, identified in the contract 
Schedule for special surveillance, and set aside for subcontract consent 
by the NASA contracting officer in accordance with FAR 44.2 and NFS 
1844.102-70.

[56 FR 48741, Sept. 26, 1991, as amended at 57 FR 40854, Sept. 8, 1992]

[[Page 216]]

1815.870  Subcontract price redetermination.



Sec. 1815.870-1  General.

    (a) When subcontracts have been placed on a price-redetermination or 
fixed-price-incentive basis and the prime contract type is fixed-price 
redeterminable or F-PI (successive target), at the time of final pricing 
it may be appropriate to negotiate a firm prime contract price, even 
though the contractor has not yet established final subcontract prices. 
The contracting officer may do this when convinced that the amount 
included for subcontracting is reasonable, for example, when realistic 
cost information or pricing data on subcontract efforts are available.
    (b) However, even though the available cost information are highly 
indefinite and there is a distinct chance that one or more of the 
subcontracts eventually may be redetermined at prices lower than those 
predicted in redetermining the prime contract price, other circumstances 
may require prompt negotiation of the final contract price. In such a 
case, the contract modification evidencing the revised contract price 
shall provide for adjustment of the total amount paid or to be paid 
under the contract on account of subsequent redetermination of the 
specified subcontracts. This may be done by including in the contract 
modification the clause prescribed at 1815.870-2.

[56 FR 48741, Sept. 26, 1991, as amended at 60 FR 53880, Oct. 18, 1995]



Sec. 1815.870-2  NASA contract clause.

    The contracting officer shall insert the clause at 1852.215-71, 
Adjustment for Subcontract Price Redetermination, in contract 
modifications that reflect a repricing of the prime contract, but 
provide for future adjustment of the repriced contract upon subsequent 
redetermination of specified subcontract(s).



                         Subpart 1815.9--Profit

    Source: 56 FR 48743, Sept. 26, 1991, unless otherwise noted.



Sec. 1815.902  Policy.

    As authorized by FAR 15.902, NASA has established a structured 
approach for determining profit or fee objectives. This approach, 
described in 1815.970, is based on the profit-analysis factors appearing 
in FAR 15.905 and shall be used to determine profit or fee objectives 
for conducting negotiations in those acquisitions that require cost 
analysis, except in the case of--
    (a) Artchitect-engineer contracts;
    (b) Management contracts for operation and/or maintenance of 
Government facilities;
    (c) Construction contracts;
    (d) Contracts primarily requiring delivery of material supplied by 
subcontractors;
    (e) Termination settlements;
    (f) Cost-plus-award-fee contracts (however, contracting officers may 
find it advantageous to perform a structured profit analysis as an aid 
in arriving at an appropriate fee arrangement); and
    (g) Contracts having unusual pricing situations when the structured 
approach is determined unsuitable and the exemption is (1) justified in 
writing, and (2) authorized by the procurement officer.
1815.903  Contracting officer responsibilities.



Sec. 1815.903-70  Contracting officer authority for negotiating architect-engineer fees.

    It is NASA policy that if a contract involving architect-engineer 
services covers any services other than the production and delivery of 
designs, plans, drawings, and specifications, the part of the contract 
price for these other services is not subject to the 6 percent fee 
limitation set forth in FAR 15.903(d)(1).



Sec. 1815.970  NASA structured approach for profit or fee objective.

    (a) The factors in 1815.970-1 through 1815.970-3 shall be considered 
in all cases in which profit is to be specifically negotiated. The 
weight ranges listed after each category and factor on NASA Form 634, 
Structured Approach Profit/Fee Objective, shall be used whenever the 
structured approach is used.
    (b) The contracting officer shall first measure Contractor Effort by 
assigning a profit percentage in column 1.(c),

[[Page 217]]

within the designated weight ranges, to each element of contract cost 
recognized by the contracting officer. Neither the cost of facilities 
(see FAR 45.302-3(c)) nor the amount calculated for the cost of money 
for facilities capital is to be included as part of the cost base in 
column 1.(a) in the computation of profit.
    (c) The suggested cost categories under Contractor Effort are for 
reference purposes only. The format of individual proposals will vary, 
but these broad and basic categories provide a sample structure for the 
evaluation of all categories of cost.
    (d) After computing a total dollar profit in line 1.A for Contractor 
Effort, the contracting officer shall calculate the specific profit 
dollars for cost risk, investment, performance, subcontract program 
management, socioeconomic programs, and special situations. (Inventive 
and developmental contributions, unusual pricing agreements and 
additional factors shall be combined under special situations.)
    (e) In making a judgment of the weight assigned to each cost 
category and factor, the contracting officer should be governed by the 
description and purpose of each category and factor and the 
considerations for evaluating them as set forth in 1815.970-1, 1815.970-
2, and 1815.970-3. The rationale supporting the assigned weights shall 
be documented in the PPM in accordance with 1815.807-70(d)(3).
    (f)(1) The structured approach was designed for arriving at profit 
or fee objectives for commercial organizations. However, as modified in 
accordance with paragraph (2) of this section, the structured approach 
shall be used as a basis for arriving at fee objectives for nonprofit 
organizations (FAR subpart 31.7), excluding educational institutions 
(FAR subpart 31.3). It is NASA policy not to pay profit or fee on 
contracts with educational institutions.
    (2) For contracts with nonprofit organizations under which fees are 
involved, an adjustment of up to 3 percent shall be subtracted from the 
total profit/fee objective. In developing this adjustment, it will be 
necessary to consider--
    (i) Tax position benefits;
    (ii) Granting of financing through letters of credit;
    (iii) Facility requirements of the nonprofit organization; and
    (iv) Other pertinent factors that may work to either the advantage 
or disadvantage of the contractor in its position as a nonprofit 
organization. The adjustments should not be applied as deductions 
against historical fee levels, but rather to the fee objective as 
calculated under the structured approach.

[56 FR 48743, Sept. 26, 1991, as amended at 57 FR 832, Jan. 9, 1992; 61 
FR 5314, Feb. 12, 1996]



Sec. 1815.970-1  Contractor effort.

    This factor takes into account what resources are necessary and what 
the contractor must do to meet the contract performance requirements. 
Evaluation of this factor requires analyzing the cost content of the 
proposed contract as follows:
    (a) Material acquisition (subcontracted items, purchased parts, and 
other material). (1) Consider the managerial and technical efforts 
necessary for the prime contractor to select subcontractors and 
administer subcontracts, including efforts to introduce and maintain 
competition. These evaluations shall be performed for purchases of raw 
materials or basic commodities; purchases of processed material, 
including, all types of components of standard of near-standard 
characteristics; and purchases of pieces, assemblies, subassemblies, 
special tooling, and other products special to the end item. In 
performing the evaluation, also consider whether the contractor's 
purchasing program makes a substantial contribution to the performance 
of a contract through the use of subcontracting programs involving many 
sources, new complex components and instrumentation, incomplete 
specifications, and close surveillance by the prime contractor.
    (2) Recognized costs proposed as direct material costs, such as 
scrap charges, shall be treated as material for profit evaluation. If 
intracompany transfers are accepted at price in accordance with FAR 
31.205-26(e), they shall be evaluated as material. Other intracompany 
transfers shall be evaluated by individual components of costs, i.e., 
material, labor, and overhead.

[[Page 218]]

    (b) Direct labor (engineering, service, manufacturing, and other 
labor). (1) Analysis of the various items of cost should include 
evaluation of the comparative quality and level of the engineering 
talents, service contract labor, manufacturing skills, and experience to 
be employed. In evaluating engineering labor for the purpose of 
assigning profit weights, consideration should be given to the amount of 
notable scientific talent or unusual or scarce engineering talent 
needed, in contrast to journeyman engineering effort or supporting 
personnel.
    (2) Evaluate service contract labor in a like manner by assigning 
higher weights to engineering, professional, or highly technical skills 
and lower weights to semiprofessional or other skills required for 
contract performance.
    (3) Similarly, the variety of engineering, manufacturing and other 
types of labor skills required and the contractor's manpower resources 
for meeting these requirements should be considered. For purposes of 
evaluation, subtypes of labor (for example, quality control, and 
receiving and inspection) proposed separately from engineering, service, 
or manufacturing labor should be included in the most appropriate labor 
type. However, the same evaluation considerations as outlined above will 
be applied.
    (c) Overhead and general management (G&A). Analysis of individual 
items of cost within overhead and G&A includes the evaluation of the 
makeup of these expenses, how much they contribute to contract 
performance, and the degree of substantiation provided for rates 
proposed in future years.
    (1) The composite of the weights assigned to the individual elements 
of the overhead pools will be the profit consideration given the pools 
as a whole.
    (2) The contracting officer, in an evaluation of the overhead rate 
of a contractor using a single indirect cost rate, should break out the 
applicable sections of the composite rate which could be classified as 
engineering overhead, manufacturing overhead, other overhead pools, and 
G&A expenses, and apply the appropriate weight.
    (d) Other costs. Include all other direct costs associated with 
contractor performance under this item, for example, travel and 
relocation, direct support, and consultants. Analysis of these items of 
cost should include their nature and how much they contribute to 
contract performance.



Sec. 1815.970-2  Other factors.

    (a) Cost risk. The degree of risk assumed by the contractor should 
influence the amount of profit or fee a contractor is entitled to 
anticipate. For example, if a portion of the risk has been shifted to 
the Government through cost-reimbursement or price redetermination 
provisions, unusual contingency provisions, or other risk reducing 
measures, the amount of profit or fee should be less than for 
arrangements under which the contractor assumes all the risk. This 
factor is one of the most important in arriving at prenegotiation profit 
objectives.
    (1) Other risks on the part of the contractor, such as loss of 
reputation, losing a commercial market, or losing potential profits in 
other fields, shall not be considered in this factor. Similarly, any 
risk on the part of the contracting office, such as the risk of not 
acquiring an effective space vehicle, is not within the scope of this 
factor.
    (2) The degree of cost responsibility assumed by the contractor is 
related to the share of total contract cost risk assumed by the 
contractor through the selection of contract type. The weight for risk 
by contract type would usually fall within the 0-to-3 percent range for 
cost-reimbursement contracts and 3-to-7 percent range for fixed-price 
contracts.
    (i) Within the ranges set forth in paragraph (a)(2) of this section, 
a cost-plus-fixed-fee contract normally would not justify a reward for 
risk in excess of 0 percent, unless the contract contains cost risk 
features such as ceilings on overheads, etc. In such cases, up to 0.5 
percent may be justified. Cost-plus-incentive-fee contracts fill the 
remaining portion of the range, with weightings directly related to such 
factors as confidence in target cost, share ratio of fees, etc.

[[Page 219]]

    (ii) The range for fixed-price type contracts is wide enough to 
accommodate the various types of fixed-price arrangements. Weighting 
should be indicative of the price risk assumed and the end item 
required, with only firm-fixed-price contracts with requirements for 
prototypes or hardware reaching the top end of the range.
    (3) The cost risk arising from contract type is not the only form of 
cost risk to consider.
    (i) The contractor's subcontracting program may have a significant 
impact on the contractor's acceptance of risk under a particular 
contract type. This consideration should be a part of the contracting 
officer's overall evaluation in selecting a weight to apply for cost 
risk. It may be determined, for instance, that the prime contractor has 
effectively transferred real cost risk to a subcontractor, and the 
contract cost risk weight may, as a result, be below the range that 
would otherwise apply for the contract type proposed. The contract cost 
risk weight should not be lowered, however, merely on the basis that a 
substantial portion of the contract costs represents subcontracts unless 
those subcontract costs represent a substantial transfer of the 
contractor's risk.
    (ii) In making a contract cost risk evaluation in a procurement 
action that involves definitization of a letter contract, unpriced 
change orders, or unpriced orders under BOAs, consideration should be 
given to the effect on total contract cost risk as a result of having 
partial performance before definitization. Under some circumstances it 
may be reasoned that the total amount of cost risk has been effectively 
reduced. Under other circumstances it may be apparent that the 
contractor's cost risk is substantially unchanged. To be equitable, 
determination of a profit weight for application to the total of all 
recognized costs, both incurred and yet to be expended, must be made 
with consideration of all attendant circumstances and should not be 
based solely on the portion of costs incurred, or percentage of work 
completed, before definitization.
    (b) Investment. NASA encourages its contractors to perform their 
contracts with a minimum of financial, facilities, or other assistance 
from the Government. As such, it is the purpose of this factor to 
encourage the contractor to acquire and use its own resources to the 
maximum extent possible. Evaluation of this factor should include an 
analysis of the contractor's facilities and the frequency of payments.
    (1) To evaluate how facilities contribute to the profit objective 
requires knowledge of the level of facilities utilization needed for 
contract performance, the source and financing of the required 
facilities, and the overall cost effectiveness of the facilities 
offered. Contractors furnishing their own facilities that significantly 
contribute to lower total contract costs should be provided additional 
profit. On the other hand, contractors that rely on the Government to 
provide or finance needed facilities should receive a correspondingly 
lower profit. Cases between the above examples should be evaluated on 
their merits, with either a positive or negative adjustment, as 
appropriate, in the profit objective. However, where a highly 
facilitized contractor is to perform a contract that does not benefit 
from this facilitization, or when contractor's use of its facilities has 
a minimum cost impact on the contract, profit need not be adjusted.
    (2) In analyzing payments, consider the frequency of payments by the 
Government to the contractor and unusual payments, i.e., advance 
payments or milestone payments. The key to this weighting is proper 
consideration of the impact the contract will have on the contractor's 
cash flow. Generally, negative consideration should be given for 
payments more frequent than monthly, with maximum reduction being given 
as the contractor's working capital approaches zero. Positive 
consideration should be given for payments less frequent than monthly.
    (c) Performance. The contractor's past and present performance 
should be evaluated in such areas as product quality, meeting 
performance schedules, efficiency in most control (including the need 
for and reasonableness of costs incurred), accuracy and reliability of 
previous cost estimates, degree of cooperation by the contractor (both

[[Page 220]]

business and technical), timely processing of changes and compliance 
with other contractual provisions.
    (d) Subcontract program management. Subcontract program management 
includes evaluation of the contractor's commitment to its competition 
program and its past and present performance in competition in 
subcontracting. If a contractor has consistently achieved excellent 
results in these areas in comparison with other contractors in similar 
circumstances, such performance merits a proportionately greater 
opportunity for profit or fee. Conversely, a poor record in this regard 
should result in a lower profit or fee.
    (e) Federal socioeconomic programs. In addition to rewarding 
contractors for unusual initiative in supporting Government 
socioeconomic programs, failure or unwillingness on the part of the 
contractor to support these programs should be viewed as evidence of 
poor performance for the purpose of establishing this profit objective 
factor.
    (f) Special situations--(1) Occasionally, unusual contract pricing 
arrangements are made with the contractor under which it agrees to 
accept a lower profit or fee for changes or modifications within a 
prescribed dollar value. In such circumstances, the contractor should 
receive favorable consideration in developing the profit objective.
    (2) This factor need not be limited to situations that increase 
profit/fee levels. A negative consideration may be appropriate when the 
contractor is expected to obtain spin off benefits as a direct result of 
the contract, for example, products with commercial application.

[56 FR 48743, Sept. 26, 1991, as amended at 57 FR 832, Jan. 9, 1992; 60 
FR 53880, Oct. 18, 1995]



Sec. 1815.970-3  Facilities capital cost of money.

    (a) When facilities capital cost of money (CAS 414, cost of money as 
an element of the cost of facilities capital) is included as an item of 
cost in the contractor's proposal, it shall not be included in the cost 
base for the purpose of calculating profit/fee (see 1830.7001). In 
addition, a reduction in the profit objective shall be made in an amount 
equal to the amount of facilities capital cost of money allowed in 
accordance with FAR 31.205-10(a)(2).
    (b) CAS 417, cost of money as an element of the cost of capital 
assets under construction, should not appear in contract proposals. 
These costs are included in the initial value of a facility for purposes 
of calculating depreciation and CAS 414.

[56 FR 48743, Sept. 26, 1991, as amended at 57 FR 40854, Sept. 8, 1992; 
59 FR 29961, June 10, 1994; 60 FR 53880, Oct. 18, 1995]



Sec. 1815.971  Payment of profit or fee under letter contracts.

    NASA's policy is to pay profit or fee only on definitized contracts.



Subpart 1815.10--Preaward, Award, and Postaward Notifications, Protest, 
                              and Mistakes



Sec. 1815.1003  Notification to successful offeror.

    The reference to notice of award in FAR 15.1003 on negotiated 
procurements is a generic one. It relates only to the formal 
establishment of a contractual document obligating both the Government 
and the offeror. The notice is effected by the transmittal of a fully 
approved and executed definitive contract document, such as the award 
portion of SF33, SF26, or SF1447, or a letter contract when a 
definitized contract instrument is not available but the urgency of the 
requirement necessitates immediate performance. In this latter instance, 
the procedures in NFS 1816.603 for approval and issuance of letter 
contracts shall be followed.

[58 FR 51141, Sept. 30, 1993. Redesignated and amended at 60 FR 47712, 
Sept. 14, 1995]
1815.1004  Debriefing of unsuccessful offerors.



Sec. 1815.1004-1  Scope of subpart.

    This subpart sets forth NASA policy and procedures for debriefing 
unsuccessful offerors in all competitive negotiated procurements. (See 
also, paragraph 504 of 1870.103, App. I, for debriefing procedures 
applicable to Announcements of Opportunity.)

[54 FR 28239, July 5, 1989. Redesignated at 60 FR 47712, Sept. 14, 1995]

[[Page 221]]



Sec. 1815.1004-2  Policy.

    (a) NASA shall debrief an unsuccessful competitor in accordance with 
FAR 15.1004. Debriefings shall be consistent with--
    (1) The findings of the Source Evaluation Board (SEB) and the basis 
on which the Selection Official made the decision; or
    (2) The findings of the technical and contracting officers and the 
basis on which the contracting officer made the decision if SEB 
procedures were not employed.
    (b) Unless authorized by the Associate Administrator for 
Procurement, the Source Selection Statement for alternative system 
design concepts under the Major System Acquisitions process is not to be 
released to competing offerors or the general public until the release 
of the Source Selection Statements for full-scale development.

[54 FR 28239, July 5, 1989, as amended at 60 FR 40514, Aug. 9, 1995. 
Redesignated and amended at 60 FR 47712, Sept. 14, 1995]



Sec. 1815.1004-3  Designated Officials.

    Debriefings are to be conducted by senior NASA officials. When the 
selection has been made by the Administrator, the Administrator will 
designate an official familiar with the rationale for the selection to 
conduct the debriefings, with participation by cognizant field 
installation personnel, if deemed necessary. When the selection has been 
made by the Field Installation Director or a Headquarters Staff or 
Program Office head, the Center Director or Official-in-Charge of the 
Headquarters office shall designate an official and necessary supporting 
staff to perform the debriefing. When SEB procedures were not applied, 
the installation Procurement Officer, or designee, shall perform the 
debriefing.

[54 FR 28239, July 5, 1995. Redesignated at 60 FR 47712, Sept. 14, 1995]



Sec. 1815.1004-4  Procedures.

    (a) The recipient of a written or oral debriefing request shall 
immediately refer the request to the installation procurement officer.
    (b) The procurement officer, upon receipt of a debriefing request, 
shall inform the designated official and other concerned officials at 
the installation and, in the case of procurement actions where an 
Associate Administrator or the Administrator was the Selection Official, 
the cognizant NASA Headquarters personnel.
    (c)(1) If an unsuccessful offeror in a negotiated procurement 
submits, prior to the award of the contract, a written request for a 
debriefing, such a debriefing will be provided at the earliest feasible 
time. Except as provided in paragraph (c)(2) of this section, 
debriefings shall be conducted after announcement of the selection 
decision and prior to award of the contract. (Selection decision means 
the final selection of the one successful contractor, or the contractors 
where more than one contract is to be awarded). If the selection 
decision involves more than one contractor pursuant to the Major System 
Acquisition process, the debriefing will be limited in such a manner 
that it does not prematurely disclose innovative concepts, designs, and 
approaches of the successful contractor(s) that would result in a 
transfusion of ideas which also could inhibit contractors during the 
early phase from offering their best and most promising ideas for 
meeting the mission need.
    (2) When the exigency of the situation will not permit delaying the 
award in order to debrief unsuccessful offerors, such debriefings may be 
conducted after award.
    (d) A summary of the results of each debriefing, signed by the 
conducting NASA official, shall be placed in the contract file.

[54 FR 28239, July 5, 1989, as amended at 56 FR 48746, Sept. 26, 1991. 
Redesignated at 60 FR 47712, Sept. 14, 1995]



                       Subpart 1815.70--Ombudsman

    Source: 60 FR 47100, Sept. 11, 1995, unless otherwise noted.



Sec. 1815.7001  NASA Ombudsman Program.

    NASA's implementation of an ombudsman program is in NMI 1210.3, NASA 
Ombudsman Program.

[[Page 222]]



Sec. 1815.7002  Commerce Business Daily announcements, solicitations and contracts.

    The contracting officer shall include a statement similar to that 
contained in the clause at 1852.215-84, Ombudsman, in Commerce Business 
Daily announcements of competitive procurements. Also, a clause 
substantially the same as the one at 48 CFR 1852.215-84 shall be 
included in solicitations, including draft solicitations, and in all 
contracts.

[60 FR 47100, Sept. 11, 1995, as amended at 61 FR 5314, Feb. 12, 1996]



PART 1816--TYPES OF CONTRACTS--Table of Contents




                  Subpart 1816.2--Fixed-Price Contracts

Sec.
1816.202  Firm-fixed-price contracts.
1816.202-70  NASA contract clause.
1816.203  Fixed-price contracts with economic price adjustment.
1816.203-4  Contract clauses.
1816.207  Firm-fixed-price, level-of-effort term contracts.
1816.207-70  NASA contract clause.

              Subpart 1816.3--Cost-Reimbursement Contracts

1816.303  Cost-sharing contracts.
1816.307  Contract clauses.
1816.307-70  NASA contract clauses.
1816.370  Forms.

                   Subpart 1816.4--Incentive Contracts

1816.404  Cost-reimbursement incentive contracts.
1816.404-2  Cost-plus-award-fee (CPAF) contracts.
1816.404-270  Approval of CPAF contracts.
1816.404-271  Base fee.
1816.404-272  Award fee evaluation periods.
1816.404-273  Award fee evaluations.
1816.404-274  Award fee evaluation factors.
1816.404-275  Award fee evaluation scoring.
1816.404-276  Performance incentives on CPAF hardware contracts.
1816.405  Contract clauses.
1816.405-70  NASA contract clause.
1816.505  Ordering.

  Subpart 1816.6--Time-and-Materials, Labor-Hour, and Letter Contracts

1816.603  Letter contracts.
1816.603-2  Application.
1816.603-3  Limitations.
1816.603-4  Contract clause.
1816.603-470  NASA contract clause.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 57 FR 832, Jan. 9, 1992, unless otherwise noted.



                  Subpart 1816.2--Fixed-Price Contracts

1816.202  Firm-fixed-price contracts.



Sec. 1816.202-70  NASA contract clause.

    The contracting officer shall insert the clause at 1852.216-78, 
Firm-Fixed-Price, in firm-fixed-price solicitations and contracts. 
Insert the appropriate amount in the resulting contract.
1816.203  Fixed-price contracts with economic price adjustment.



Sec. 1816.203-4  Contract clauses.

    (a) In addition to the approval requirements in the prescriptions at 
FAR 52.216-2, -3, and -4, the contracting officer shall coordinate with 
the installation's Financial Management Officer before exceeding the 
ten-percent limit in paragraph (c)(1) of the clauses at FAR 52.216-2, -
3, and -4.
    (b) This paragraph (b) applies to adjustments based on cost indexes 
of labor or material.
    (1) All price adjustment clauses using cost indexes require advance 
approval by the Associate Administrator for Procurement. Requests for 
approval shall be submitted to the Office of Procurement, NASA 
Headquarters (Code HC).
    (2) The factors in paragraphs (b)(2) (i) through (x) of this section 
should be considered in preparing any price adjustment clause in 
situations meeting the criteria of FAR 16.203-4(d):
    (i) The clause should not be overly complex.
    (ii) The clause shall provide for a ceiling for adjustment if a 
floor is included in the clause.
    (iii) The clause shall cover only those elements of cost that are 
subject to unpredictable economic fluctuation.
    (iv) (A) The clause must positively and accurately identify the 
index(es) upon which adjustments will be based and must provide an 
alternative in the event publication of the designated index is 
discontinued. The alternative might include the substitution of another 
index, if the time remaining

[[Page 223]]

would justify it and an appropriate index is reasonably available, or 
some other method for repricing the remaining portion of the work.
    (B) There should normally be no need to make an adjustment if 
computation of the identified index is altered; however, provision may 
be made to adjust the economic fluctuation computations if the method of 
computing the index is so substantially altered as to negate the 
original intent of the parties. When an index to be used is subject to 
revision (e.g., the Bureau of Labor Statistics Producer Price Indexes), 
the price adjustment clause shall further specify that any adjustment 
shall be based upon the applicable revised index.
    (v) An index should be structured to encompass a large sample of 
relevant items, yet bear a logical relationship to the type of contract 
costs measured. The basis of the index should not be so large and 
diverse that it is significantly affected by fluctuations not relevant 
to contract performance. However, it must be broad enough to ensure that 
the effect created by any single company, including the anticipated 
contractor, is minimal.
    (vi) The clause must establish and properly identify a contract cost 
base against which an index, established in the contract, will be 
applied.
    (vii) The clause should provide for definite times or events for 
price adjustments from the point when economic uncertainty commences. It 
should not provide for adjustment beyond the original contract 
performance period. Adjustments should be frequent enough to afford the 
contractor appropriate economic relief without creating a burdensome 
administrative effort. The adjustment frequency should normally range 
from six to twelve months.
    (viii) The expenditure profile for both labor and material should be 
based on a predetermined rate of expenditure (expressed as the 
percentage of material or labor use as related to total contract price) 
in lieu of actual cost incurred. If the clause is to be used in a 
competitive procurement, the labor and material allocations, with regard 
to both mix and percentage rate of expenditure, shall be determined by 
the contracting officer in a manner approximating, as nearly as 
possible, the average-expenditure profile of all companies likely to 
make offers. If the clause is to be used in a noncompetitive 
procurement, the labor and material allocations determined by the 
contracting officer may be subject to negotiation and agreement.
    (ix) (A) The clause should state the percentage of the contract 
price or the amount subject to adjustment. Adjustments shall not be 
applied to profit.
    (B) Additionally, the labor and material portions of the contract 
must be examined to exclude areas not requiring adjustment. It may not 
be necessary, for example, to include all subcontracting, because some 
subcontract efforts could be completed during the early life of the 
contract and/or be firm-fixed-price. Certain areas of overhead should be 
excluded from escalation protection; e.g., depreciation charges, prepaid 
insurance costs, rental costs, leases, certain taxes, and utility 
charges. Economic fluctuation protection should not apply to that 
portion of labor for the period for which a definitive union agreement 
exists or for which Department of Labor wage determinations are known.
    (C) That portion of the contract determined to be proper for 
economic fluctuation protection shall then be allocated to specific time 
periods (e.g., semiannually) on the basis of the expenditure profile.
    (x) The economic price adjustment clause should provide that once 
the labor and material allocations have been established, they remain 
fixed through the life of the contract. Subsequent modifications which 
affect contract price are generally not subject to economic price 
adjustment. If the contracting officer determines that such an action 
should be subject to economic price adjustment, a new economic price 
adjustment clause should be incorporated into the contract. Such a 
clause would require prior approvals in accordance with 1816.203-
4(b)(1).
    (c) When economic price adjustment clauses are included in contracts 
that do not require submission of cost or pricing data (see FAR 15.804-1 
and 15.804-2), the contracting officer shall obtain adequate information 
to establish the contract cost base from which adjustments will be made. 
In addition,

[[Page 224]]

the contracting officer may require verification of this information to 
the extent necessary to permit reliance upon it as reasonable.
    (d) The contracting officer shall insert the provision at 1852.216-
72, Evaluation of Offers Subject to Economic Price Adjustment, in all 
negotiated, fixed-price solicitations that contain an economic price 
adjustment clause.

[57 FR 832, Jan. 9, 1992, as amended at 60 FR 53880, Oct. 18, 1995]
1816.207  Firm-fixed-price, level-of-effort term contracts.



Sec. 1816.207-70  NASA contract clause.

    (a) The contracting officer shall insert a clause substantially as 
stated at 1852.216-79, Level-of-Effort (Fixed-Price), in fixed-price 
term solicitations and contracts. Insert the minimum direct labor hours, 
the labor categories and associated direct labor hours, and a formula or 
rate(s) (dollar amount(s)) by which the fixed price may be reduced if 
the minimum direct labor hours have not been provided. The labor 
category information may be simplified (e.g., ``engineering'' or 
``drafting'') for smaller, less complex procurements.
    (b) For task ordering procedures for firm-fixed-price, level-of-
effort term contracts, see 1816.307-70(d).

[57 FR 832, Jan. 9, 1992, as amended at 57 FR 40854, Sept. 8, 1992]



              Subpart 1816.3--Cost-Reimbursement Contracts



Sec. 1816.303  Cost-sharing contracts.

    (a) When cost sharing is applicable. (1) Except as provided for in 
paragraph (b) of this section, cost sharing by non-Federal organizations 
is mandatory in any contract for basic or applied research resulting 
from an unsolicited proposal.
    (2) (i) Cost sharing by non-Federal organizations may be accepted in 
any contract when offered by a performing organization.
    (ii) Cost sharing by educational institutions may be accepted, when 
voluntarily offered, if the institution is aware of NASA's policy that 
the amount of cost sharing is not a factor in determining whether to 
support a given proposal.
    (b) When cost sharing is not applicable. (1) Cost sharing is not 
applicable to contracts for basic or applied research resulting from an 
unsolicited proposal when (i) the offeror certifies in writing to the 
contracting officer that it has no commercial, production, educational, 
or service activities on which to use the results of the research, and 
no means of recovering any cost sharing on such projects, and (ii) the 
contracting officer determines that cost sharing does not apply and 
documents the file with a memorandum. In these situations, where there 
is no measurable potential gain to the performing organization, 
mutuality of interest does not exist and it would not be equitable for 
the Government to require cost sharing.
    (2) (i) NASA's normal policy is to fully reimburse universities for 
research performed on its behalf. However, to establish on a case-by-
case basis that there is no clear potential for significant future 
benefit or measurable gain to the university, and that cost sharing is 
not appropriate, the contracting officer shall document the file with a 
determination substantively the same as that required by (b)(1) of this 
section. The determination shall identify the information on which it is 
based. If the determination cannot reasonably be made from the available 
information, the contracting officer shall request the university to 
certify as in (b)(1) of this section. Blanket procedures shall not be 
established for routinely obtaining certifications from all 
universities.
    (ii) NASA does not request inclusion of cost-sharing information in 
proposals from educational institutions. If cost sharing is determined 
applicable, a cost-sharing offer will be requested during negotiations.
    (c) Amount of cost sharing.--(1) Educational institutions and 
affiliated not-for-profit institutions. Cost sharing, if used for 
educational institutions and affiliated not-for-profit institutions, 
normally varies from one percent to as much as five percent of the 
project's cost.
    (2) Other performing organizations. (i) Cost sharing for 
organizations other

[[Page 225]]

than those in paragraph (c)(1) of this section may be any percentage of 
the research cost. Mutuality of interest in the results of the work 
being performed is of primary significance in assessing the 
appropriateness of any particular level of cost sharing.
    (ii) Factors that should be considered in determining mutuality of 
interest include--
    (A) The potential of the contractor to recover its contribution from 
non-Federal sources;
    (B) The extent to which the particular area of research requires 
special stimulus in the national interest; and
    (C) The extent to which a research effort or result is likely to 
enhance the contractor's capability, expertise, or competitive position.
    (d) Implementation--(1) Payment of fee or profit. No fee or profit 
may be paid to a cost-sharing contractor, and only an agreed-to portion 
of allowable costs shall be reimbursed.
    (2) Method of cost sharing. Cost sharing shall be accomplished by a 
contribution of part or all of one or more elements of the allowable 
cost of the work being performed. It normally shall be expressed as a 
stated minimum percentage of the total allowable costs of the project. 
Costs so contributed may not be charged to the Government under any 
other grant or contract (including allocation to other grants or 
contracts as part of an independent research and development program).
    (3) Documentation. Contract files shall contain appropriate 
documentation of the reasons for cost sharing and support for the amount 
or percentage of cost sharing agreed upon. For educational institutions, 
the reasons for any cost sharing exceeding (i) five percent or (ii) the 
amount originally offered shall be documented.



Sec. 1816.307  Contract clauses.

    (a) In solicitations and contracts containing the clause at FAR 
52.216-8, Fixed Fee, or FAR 52.216-10, Incentive Fee, the Schedule shall 
include appropriate terms, if any, for provisional billing against fee.
    (b) In paragraph (h)(2)(ii)(B) of the Allowable Cost and Payment 
clause at FAR 52.216-7, the period of years may be increased to 
correspond with any statutory period of limitation applicable to claims 
of third parties against the contractor; provided, that a corresponding 
increase is made in the period for retention of records required in 
paragraph (d) of the clause at FAR 52.215-1, Examination of Records by 
Comptroller General.
    (c) In paragraph (g)(2)(ii) of the Allowable Cost and Payment--
Facilities clause at FAR 52.216-13, the period of years may be increased 
to correspond with any statutory period of limitation applicable to 
claims of third parties against the contractor; provided, that a 
corresponding increase is made in the period for retention of records 
required in paragraph (d) of the clause at FAR 52.215-1, Examination of 
Records by Comptroller General.



Sec. 1816.307-70  NASA contract clauses.

    (a) The contracting officer shall insert the clause at 1852.216-73, 
Estimated Cost and Cost Sharing, in each contract in which costs are 
shared by the contractor pursuant to 1816.303.
    (b) The contracting officer shall insert the clause, or one 
substantially like the clause, at 1852.216-74, Estimated Cost and Fixed 
Fee, in cost-plus-fixed-fee contracts.
    (c) The contracting officer may insert the clause at 1852.216-75, 
Payment of Fixed Fee, in cost-plus-fixed-fee contracts. Modifications to 
the clause are authorized.
    (d)(1) The contracting officer may insert a clause substantially as 
stated at 1852.216-80, Task Ordering Procedure, in level-of-effort term 
solicitations and contracts where (i) the statement of work is general 
in nature and (ii) task orders are needed to further define and clarify 
the effort required. This clause is applicable to both fixed-price and 
cost-reimbursement type term contracts.
    (2) The contracting officer may issue task orders which tailor the 
list of information which the contractor is directed to provide in 
paragraph (b)(2) of the clause at 1852.216-80.
    (e) The contracting officer shall insert the clause at 1852.216-81, 
Estimated Cost, in cost-no-fee contracts that are not cost sharing or 
facilities contracts.

[[Page 226]]

    (f)(1) The contracting officer shall insert a clause substantially 
as stated at 1852.216-82, Level-of-Effort (Cost), in term cost 
reimbursement type solicitations and contracts. Insert the required 
information in the blanks provided.
    (2) Prior to reducing the contract fee in accordance with paragraph 
(d) of clause 1852.216-82, the contracting officer shall analyze the 
information, if any, provided by the contractor. The analysis and its 
bearing on the amount of the reduction shall be documented in the 
contract file.
    (g) The contracting officer may insert a clause substantially as 
stated at 1852.216-87, Submission of Vouchers for Payment, in cost-
reimbursement solicitations and contracts.
    (h) The contracting officer shall insert the clause at 1852.216-89 
in solicitations and contracts in which the clause at (FAR) 48 CFR 
52.216-7 is included and to which (FAR) 48 CFR part 31, subpart 31.2 is 
applicable.

[57 FR 832, Jan. 9, 1992, as amended at 59 FR 22521, May 2, 1994]



Sec. 1816.370  Forms.

    Contractors shall use NASA Form 778, Contractor's Release; NASA Form 
779, Assignee's Release; NASA Form 780, Contractor's Assignment of 
Refunds, Rebates, Credits, and Other Amounts, to fulfill the assignment 
and release requirements of the clauses prescribed at FAR 16.307 (a) and 
(g) (i.e., the clauses at FAR 52.216-7, Allowable Cost and Payment, and 
52.216-13, Allowable Cost and Payment--Facilities). Computer-generated 
forms may be accepted provided they comply with FAR clause 52.253-1.



                   Subpart 1816.4--Incentive Contracts



Sec. 1816.404  Cost-reimbursement incentive contracts.



Sec. 1816.404-2  Cost-plus-award-fee (CPAF) contracts.



Sec. 1816.404-270  Approval of CPAF contracts.

    (a) Use of a cost-plus-award-fee (CPAF) contract shall be approved 
in writing by the procurement officer. The procurement officer's 
approval shall include a discussion of the other types of contracts 
considered and shall indicate why a CPAF contract is the appropriate 
choice.
    (b) Normally, CPAF contracts are only used on contracts with a total 
estimated cost and few greater than $1 million per year. The procurement 
officer may authorize use of a CPAF contract for lower-valued 
acquisitions, but should do so only in exceptional situations, such as 
contract requirements having direct health or safety impacts, where the 
judgmental assessment of the quality of contractor performance is 
critical.

[58 FR 52446, Oct. 8, 1993]



Sec. 1816.404-271  Base fee.

    (a) A base fee shall not be used on CPAF service contracts for which 
the periodic award fee evaluations are final (1816.404-273(a)). Base fee 
normally shall not be used in other contracts, such as study, design, or 
hardware. However, the procurement officer may authorize the use of a 
base fee for these contracts by making a written determination that such 
use is in the best interest of the Government. In such cases, a base fee 
of no more than 3 percent of the estimated contract cost may be included 
in the contract.
    (b) When a base fee is authorized for use in a CPAF contract, it 
shall be paid only if the final award fee evaluation is ``satisfactory'' 
or better. (See 1816.404-273 and 1816.404-275 for information on final 
evaluations and evaluation rating categories, respectively.) Pending 
final evaluation, the base fee may be paid during the life of the 
contract at defined intervals on a provisional basis. If the final award 
fee evaluation is ``poor/unsatisfactory,'' all provisional base fee 
payments shall be refunded to the Government.

[58 FR 52446, Oct. 8, 1993]



Sec. 1816.404-272  Award fee evaluation periods.

    (a) Award fee evaluation periods shall be at least 6 months in 
length. When appropriate, the procurement officer may authorize shorter 
evaluation periods after ensuring that the additional administrative 
costs associated with the shorter periods are balanced by

[[Page 227]]

benefits accruing to the Government. In some cases, such as 
developmental contracts with defined performance milestones (e.g., 
Preliminary Design Review, Critical Design Review, initial system test), 
the procurement officer may authorize evaluation periods at conclusion 
of the milestones rather than calendar dates, or in combination with 
calendar dates. In no case, however, shall an evaluation period be 
longer than 12 months.
    (b) A portion of the total available award fee on a CPAF contract 
shall be allocated to each of the evaluation periods. This allocation 
may result in either an equal or unequal distribution of fee among the 
evaluation periods. The contracting officer should consider the nature 
of each contract and the incentive effects of fee distribution in 
determining the appropriate allocation structure. Allocation of fee on 
contracts for which periodic award fee evaluations are interim is for 
provisional fee payment purposes only. See 1816.404-273 (b) and (c).

[58 FR 52447, Oct. 8, 1993]



Sec. 1816.404-273  Award fee evaluations.

    (a) Award fee evaluations are either interim or final. On service 
contracts where the contract deliverable is the performance of the 
service over any given time period, contractor performance is 
definitively measurable at each evaluation period. In these cases, all 
evaluations are final, and the contractor keeps the fee earned in any 
period regardless of the evaluations of subsequent periods. Unearned 
award fee in any given period in a service contract is lost and shall 
not be carried forward, or ``rolled-over,'' into subsequent periods.
    (b) On other contracts such as study, design, or hardware, where the 
true quality of contractor performance cannot be measured until the end 
of the contract, only the last evaluation is final. At that point, the 
total contract award fee pool is available, and the contractor's total 
performance is evaluated against the award fee plan to determine total 
earned award fee. Interim evaluations are also done to monitor 
performance prior to contract completion and provide feedback to the 
contractor on the Government's assessment of the quality of its 
performance. Interim evaluations are also used to establish the basis 
for making professional award fee payments.
    (c) Provisional award fee payments may be included in the contract 
and should be negotiated on a case-by-case basis. For service contracts, 
provisional payments may be made in amounts up to 80 percent of the 
current period's available amount. For other contracts, the amount of 
the provisional award fee payment is determined by applying the lesser 
of the interim evaluation score (see 1816.404-275) or 80 percent of the 
fee allocated to that period. The provisional award fee payments are 
superseded by the fee determination made in the final evaluation at 
contract completion. The Government will then pay the contractor, or the 
contractor will refund to the Government, the difference between the 
final award fee determination and the cumulative provisional fee 
payment.
    (d) The Fee Determination Official's rating for both interim and 
final evaluations will be provided to the contractor within 45 calendar 
days of the end of the period being evaluated. Any fee, provisional or 
final, due the contractor will be paid no later than 60 calendar days 
after the end of the period being evaluated.

[58 FR 52447, Oct. 8, 1993]



Sec. 1816.404-274  Award fee evaluation factors.

    (a) Evaluation factors will be developed by the contracting officer 
based upon the characteristics of an individual procurement. Normally, 
technical and schedule considerations will be included in all CPAF 
contracts as evaluation factors.
    (b) Cost control shall be included as an evaluation factor in all 
CPAF contracts. When explicit evaluation factor weightings are used, 
cost control shall be no less than 25 percent of the total fee, 
excluding any base fee. When explicit weightings are not used (which 
should only occur on service contracts), cost control shall be a 
substantial factor in the performance evaluation plan. The predominant 
consideration of the cost control evaluation should be an objective 
measurement of

[[Page 228]]

the contractor's performance against the negotiated estimated cost of 
the contract. This estimated cost may include the value of undefinitized 
change orders when appropriate.
    (c) In rare circumstances, contract costs may increase for reasons 
outside the contractor's control and for which the contractor is not 
entitled to an equitable adjustment. One example is a weather-related 
launch delay on a launch support contract. The Government shall take 
such situations into consideration when evaluating contractor cost 
control.
    (d) Emphasis on cost control should be balanced against other 
performance requirement objectives. The contractor should not be 
incentivized to pursue cost control to the point that overall 
performance is significantly degraded. For example, incentivizing an 
underrun that results in direct negative impacts on technical 
performance, safety, or other critical contract objectives is both 
undesirable and counterproductive. Evaluation of cost control shall 
conform to the following guidelines:
    (1) Normally, the contractor should be given a score of 0 for cost 
control when there is a significant overrun within its control. However, 
the contractor may receive higher scores for cost control if the overrun 
is insignificant. Scores should decrease sharply as the size of the 
overrun increases. In any evaluation of contractor overrun performance, 
the Government shall consider the reasons for the overrun and assess the 
extent and effectiveness of the contractor's efforts to control or 
mitigate the overrun.
    (2) The contractor should normally be rewarded for an underrun 
within its control, up to the maximum score allocated for cost control, 
provided the average numerical rating for all other award fee evaluation 
factors is 81 or greater. See 1816.404-275 for information on numerical 
scoring. An underrun shall be rewarded as if the contractor has met the 
estimated cost of the contract (see 1816.404-274(d)(3)) when the average 
numerical rating for all other factors is less than 81 but greater than 
60.
    (3) The contractor should be rewarded for meeting the estimated cost 
of the contract, but not to the maximum score allocated for cost 
control, to the degree that the contractor has prudently managed costs 
while meeting contract requirements. No award shall be given in this 
circumstance unless the average numerical rating for all other award fee 
evaluation factors is 61 or greater.
    (e) Only the award fee performance evaluation factors set forth in 
the award fee plan shall be used to determine award fee scores. The 
Government may unilaterally modify the award fee performance evaluation 
factors and performance evaluation areas applicable to the evaluation 
period. The contracting officer shall notify the contractor in writing 
of any such changes prior to the start of the relevant evaluation 
period.

[58 FR 52447, Oct. 8, 1993]



Sec. 1816.404-275  Award fee evaluation scoring.

    (a) A scoring system of 0-100 shall be used for all award fee 
ratings. Award fee earned is determined by applying the numerical score 
to the award fee pool. For example, a score of 85 yields an award fee of 
85 percent of the award fee pool. No award fee shall be paid unless the 
total score is 61 or greater.
    (b) The following standard adjectival ratings and the associated 
numerical scores shall be used on all award fee contracts.
    (1) Excellent (100-91): Of exceptional merit; exemplary performance 
in a timely, efficient, and economical manner; very minor (if any) 
deficiencies with no adverse effect on overall performance.
    (2) Very good (90-81): Very effective performance; fully responsive 
to contract requirements accomplished in a timely, efficient, and 
economical manner for the most part; only minor deficiencies.
    (3) Good (80-71): Effective performance; fully responsive to 
contract requirements; reportable deficiencies, but with little 
identifiable effect on overall performance.
    (4) Satisfactory (70-61): Meets or slightly exceeds minimum 
acceptable standards; adequate results; reportable deficiencies with 
identifiable, but not

[[Page 229]]

substantial, effects on overall performance.
    (5) Poor/Unsatisfactory (60 and below): Does not meet minimum 
acceptable standards in one or more areas; remedial action required in 
one or more areas; deficiencies in one or more areas which adversely 
affect overall performance.
    (c) As a benchmark for evaluation, in order to be rated 
``Excellent,'' the contractor must be under cost, on or ahead of 
schedule, and have provided excellent technical performance.
    (d) A scoring system appropriate for the circumstances of the 
individual contract requirement should be developed. Weighted scoring is 
recommended. In this system, each evaluation factor (e.g., technical, 
schedule, cost control) is assigned a specific percentage weighting with 
the cumulative weightings of all factors totalling 100. During the award 
fee evaluation, each factor is scored from 0-100 according to ratings 
defined in 1816.404-275(b). The numerical score for each factor is then 
multiplied by the weighting for that factor to determine the weighted 
score. For example, if the technical factor has a weighting of 60 
percent and the numerical score for that factor is 80, the weighted 
technical score is 48 (80 x 60%). The weighted scores for each 
evaluation factor are then added to determine the total award fee score.

[58 FR 52448, Oct. 8, 1993]



Sec. 1816.404-276  Performance incentives on CPAF hardware contracts.

    (a) A performance incentive shall be included in all CPAF contracts 
where the primary deliverable(s) is (are) hardware and where total 
estimated cost and fee is greater than $25 million. Any exception to 
this requirement shall be approved in writing by the Center Director. 
Performance incentives may be included in CPAF hardware contracts valued 
under $25 million at the discretion of the procurement officer. 
Performance incentives, which are objective and measure hardware 
performance after delivery and acceptance, are separate from award fee, 
which is subjective and measures contractor performance. The final award 
fee rating is final and cannot be retroactively changed.
    (b) When a performance incentive is used, it shall be structured to 
be both positive and negative based on hardware performance after 
delivery and acceptance. In doing so, the contract shall establish a 
standard level of performance based on the salient hardware performance 
requirement. This standard performance level is normally the contract's 
minimum performance requirement. No incentive amount is earned at this 
standard performance level. Discrete units of measurement based on the 
same performance parameter shall be identified for performance both 
above and below the standard. Specific incentive amounts shall be 
associated with each performance level from maximum beneficial 
performance (maximum positive incentive) to minimal beneficial 
performance or total failure (maximum negative incentive) in accordance 
with 1816.404-276(g)(3). The relationship between any given incentive, 
both positive and negative, and its associated unit of measurement 
should reflect the value to the Government of that level of hardware 
performance. The contractor should not be rewarded for above-standard 
performance levels that are of no benefit to the Government.
    (c) The final calculation of the positive or negative performance 
incentive shall be done when performance, as defined in the contract, 
ceases or when the maximum positive incentive is reached. When the 
performance is below the standard established in the contract, the 
Government shall calculate the amount due and the contractor shall pay 
the Government that amount. When performance exceeds the standard, the 
contractor may request payment of the incentive amount associated with a 
given level of performance, provided that such payments shall not be 
more frequent than monthly. When performance ceases or when the maximum 
positive incentive is reached, the Government shall calculate the final 
performance incentive earned and unpaid and promptly remit it to the 
contractor. The exclusion at FAR 16.405(e)(3) does not apply to 
decisions made as to the amount(s) of positive or negative incentive.

[[Page 230]]

    (d) One example of how a performance incentive would work is on a 
contract requiring delivery of a spacecraft. In this case, the 
performance incentive unit of measurement could be useful months in 
orbit. If 12 months is the expected performance level, the 12th month 
could be identified as standard performance for which no incentive is 
earned. If 24 months is the maximum useful life for the spacecraft 
relative to the technical requirements, the 24th month could be 
identified as the maximum performance level at which the contractor 
would earn the maximum positive incentive. Interim measures of 
spacecraft life from 12 to 24 months would then be identified with fees 
from $0 to the maximum positive incentive. The amounts associated with 
these interim measures should correspond to the relative value to the 
Government of each additional month in orbit. A similar scale would be 
established for the negative incentive ranging from the 12th month for 
standard performance, $0, to total and immediate system failure at the 
start of performance, the maximum negative incentive.
    (e) When the deliverable hardware lends itself to multiple, 
meaningful measures of performance, multiple performance incentives may 
be established. In addition, when the contract requires the sequential 
delivery of several hardware items (e.g., multiple satellites), separate 
performance incentive structures may be established to parallel the 
sequential delivery and use of the deliverables. In either case, the 
amounts of the maximum performance incentives and the total potential 
award fee, including any base fee, shall be in accordance with the 
structure and limitations specified in 1816.404-276(g).
    (f) The definitions of standard performance, maximum positive and 
negative performance, and the units of measurement may be negotiated and 
will vary from contract to contract. Care must be taken, however, to 
ensure that the performance incentive structure is both reflective of 
the value to the Government of the various performance levels and a 
meaningful incentive to the contractor.
    (g) In determining the value of the maximum performance incentive 
available under the contract, the contracting officer shall follow the 
following rules.
    (1) The sum of the total potential award fee (including any base 
fees) plus the maximum positive performance incentive may not exceed the 
limitations in FAR 15.903(d).
    (2) The individual values of the maximum positive performance 
incentive and the total potential award fee (including any base fee) 
shall each be at least one-third of the total potential contract fee. 
The remaining one-third of the total potential contract fee may be 
divided between award fee and the maximum performance incentive at the 
discretion of the contracting officer.
    (3) The maximum negative performance incentive for research and 
development hardware (e.g., the first and second units) shall be equal 
in amount to the total earned award fee (including any base fee). The 
maximum negative performance incentives for production hardware (e.g., 
the third and all subsequent units of any hardware items) shall be equal 
in amount to the total potential award fee (including any base fee). 
Where one contract contains both cases described above, any base fee 
shall be allocated reasonably among the items.

[58 FR 52448, Oct. 8, 1994]
1816.405  Contract clauses.



Sec. 1816.405-70  NASA contract clauses.

    (a) As authorized by FAR 16.405(e), the contracting officer shall 
insert the clause at 1852.216-76, Award Fee for Service Contracts, in 
solicitations and contracts when a cost-plus-award-fee contract is 
contemplated and the contract deliverable is the performance of a 
service. When provisional award fee payments are authorized, use 
Alternate I.
    (b) As authorized by FAR 16.405(e), the contracting officer shall 
insert the clause at 1852.216-77, Award Fee for Non-Service Contracts, 
in solicitations and contracts when a cost-plus-award-fee contract is 
contemplated and the contract deliverables are a study, design, hardware 
or other end items for which total contractor performance

[[Page 231]]

cannot be measured until the end of the contract.
    (c) The contracting officer may insert a clause substantially as 
stated at 1852.216-83, Fixed Price Incentive, in fixed-price-incentive 
solicitations and contracts utilizing firm or successive targets. For 
items to be subject to incentive price revision, identify the target 
cost, target profit, target price, and ceiling price for each item.
    (d) The contracting officer shall insert the clause at 1852.216-84, 
Estimated Cost and Incentive Fee, in cost-plus-incentive-fee 
solicitations and contracts.
    (e) The contracting officer may insert the clause at 1852.216-85, 
Estimated Cost and Award Fee, in cost-plus-award-fee solicitations and 
contracts. When the contract includes performance incentives, use 
Alternate I.
    (f) Except as provided at 1816.404-276, the contracting officer 
shall insert a clause substantially as stated at 1852.216-88, 
Performance Incentive, when (1) a CPAF contract is contemplated, (2) the 
primary deliverable(s) is (are) hardware, and (3) total estimated cost 
and fee is greater than $25 million. A clause substantially as stated at 
1852.216-88 may be included in lower dollar value CPAF hardware 
contracts with the approval of the Procurement Officer.

[58 FR 52449, Oct. 8, 1994]



Sec. 1816.505  Ordering.

    The ombudsman referred to in FAR 16.505(b)(4) is the ombudsman of 
the installation issuing the solicitation and its resultant contract. 
See 48 CFR part 1815, subparts 1815.70 and 1852.215-84.

[61 FR 5314, Feb. 12, 1996]



  Subpart 1816.6--Time-and-Materials, Labor-Hour, and Letter Contracts

1816.603  Letter contracts.



Sec. 1816.603-2  Application.

    Although there is no set format for a letter contract, certain items 
must be included. In addition to the clauses prescribed in FAR 16.603-4, 
the following information, must be included in all letter contracts:
    (a) Statement of work.
    (b) Delivery or performance schedule and place(s) of inspection and 
acceptance.
    (c) A statement that no profit or fee shall be paid under the letter 
contract except as provided in the Termination clause (see 1815.971).

[57 FR 832, Jan. 9, 1992; 57 FR 4912, Feb. 10, 1992]



Sec. 1816.603-3  Limitations.

    (a) Letter contracts having an estimated definitive contract amount 
below the dollar thresholds specified in 1807.7102. Authority to approve 
the issuance of such letter contracts is delegated to the procurement 
officer. Each request for approval shall include the following:
    (1) Proposed contractor's name and address.
    (2) Location where contract is to be performed.
    (3) Contract number, including modification number, if applicable.
    (4) Brief description of the work or services to be performed.
    (5) Performance period or delivery schedule.
    (6) Amount of letter contract.
    (7) Performance period of letter contract.
    (8) Estimated total amount of definitive contract.
    (9) Type of definitive contract to be executed.
    (10) A statement that the definitive contract will contain all 
required clauses or that deviations have been approved.
    (11) A statement as to the necessity and advantage to the Government 
of the proposed letter contract.
    (b) Letter contracts having an estimated definitive contract amount 
equal to or exceeding the dollar thresholds specified in 1807.7102.
    (1) Requests for authority to issue such letter contracts shall be 
signed by the procurement officer and submitted to the Associate 
Administrator for Procurement (Code HS) for approval. They shall include 
the information cited in paragraph (a)(1) of this section.
    (2) Any modification of an undefinitized letter contract approved 
under paragraph (b)(1) of this section

[[Page 232]]

must be approved by the Associate Administrator for Procurement.
    (3) Any modification of an undefinitized letter contract approved by 
a procurement officer in accordance with paragraph (a)(1) of this 
section that increases the estimated definitized contract amount to or 
above the dollar thresholds specified in 1807.7102 must have the prior 
approval of the Associate Administrator for Procurement.

[57 FR 832, Jan. 9, 1992, as amended at 59 FR 12197, Mar. 16, 1994]
1816.603-4  Contract clause.



Sec. 1816.603-470  NASA contract clause.

    The contracting officer may insert a clause substantially as stated 
at 1852.216-86, Settlement of Letter Contract, in contracts definitizing 
letter contracts.



PART 1817--SPECIAL CONTRACTING METHODS--Table of Contents




                  Subpart 1817.1--Multiyear Contracting

Sec.
1817.102  Policy.
1817.103  Procedures.
1817.103-1  General.

                         Subpart 1817.2--Options

1817.200  Scope of subpart.
1817.203  Solicitations.
1817.204  Contracts.
1817.206  Evaluation.
1817.207  Exercise of options.
1817.208  Solicitation provisions and contract clauses.

               Subpart 1817.4--Leader Company Contracting

1817.401  General.

     Subpart 1817.5--Interagency Acquisitions Under the Economy Act

1817.504  Ordering procedures.

         Subpart 1817.70--Procurement With Military Departments

1817.7000  Scope of subpart.
1817.7001  Authorization and policy.
1817.7002  NASA-Defense Purchase Request and acceptance.
1817.7002-1  Acceptance by Military Department.
1817.7002-2  Changes in estimated total prices.
1817.7002-3  Payments.
1817.7002-4  Contract clause.

         Subpart 1817.71--Exchange or Sale of Personal Property

1817.7101  Policy.

    Authority: 42 U.S.C. 2473 (c)(1).

    Source: 54 FR 28258, July 5, 1989, unless otherwise noted.



                  Subpart 1817.1--Multiyear Contracting



Sec. 1817.102   Policy.

    Multiyear contracting is generally not appropriate for use by NASA, 
because of the nature of NASA's appropriations and agency mission. 
Therefore, contracting officers may not issue a multiyear solicitation 
without first obtaining written approval from the Associate 
Administrator for Procurement, NASA Headquarters, Code HS.
1817.103  Procedures.



Sec. 1817.103-1   General.

    Under 10 U.S.C. 2306(g), multiyear contracting with funds that would 
otherwise be available for obligation only within the fiscal year for 
which appropriated is permitted for periods of not more than five years 
for certain types of services. For these services, in addition to the 
approval required by 1817.102 of this subpart, 10 U.S.C. 2306(g) and 
2310 require a written determination and findings:
    (a) By the Administrator for contracts exceeding three years, and
    (b) By the contracting officer for individual contracts not 
exceeding three years.



                         Subpart 1817.2--Options



Sec. 1817.200  Scope of subpart.

    As authorized at FAR 17.200, FAR subpart 17.2 shall apply to all 
NASA contracts, unless otherwise stated at 1817.204(a).

[54 FR 53631, Dec. 29, 1989]

[[Page 233]]



Sec. 1817.203   Solicitations.

    The ``authorized person'' mentioned in FAR 17.203(g)(2) is hereby 
designated as being the Procurement Officer.



Sec. 1817.204  Contracts.

    (a) The 5-year limitation (basic plus option periods) set forth in 
FAR 17.204(e) shall apply to all NASA contracts regardless of type, 
except contracts for automatic data processing (ADP) equipment systems 
and related software development, maintenance, and services; and 
contracts for telecommunications equipment and services. In addition to 
these exclusions, the 5-year limitation is not applicable to contracts 
for which the time needed to produce the end item of hardware is greater 
than five years. Deviations from the 5-year limitation policy require 
that:
    (1) The extended years can be reasonably priced, and
    (2) A persuasive case (other than resources problems) can be made 
for exceeding five years.

    (Example: Some specific program event will occur at or near the end 
of the total contract period and a competition and potential change of 
contractor would be unacceptably disruptive or inefficient, or some 
other programmatic considerations dictate a longer period.)

    (b) In addition to establishing either a fixed or maximum fee or a 
formula for determining the fixed or maximum fee, options under cost 
type contracts shall contain an estimated cost for the option period(s).

[54 FR 28258, July 5, 1989, as amended at 54 FR 53631, Dec. 29, 1989; 56 
FR 48746, Sept. 26, 1991]



Sec. 1817.206  Evaluation.

    For the purpose of FAR 17.206(b), the procurement officer at each 
center shall be the approval authority for determinations by the 
contracting officer not to evaluate offers for any option quantities or 
periods.



Sec. 1817.207  Exercise of options.

    (a) Unless a determination has been approved under FAR 17.206(b), 
the selection statement for each procurement involving an option shall 
include the source selection official's consideration of the option as 
part of the initial competition.
    (b) Use of the provision (or formula) specified in FAR 17.207(f)(2) 
requires advance approval by the Associate Administrator for Procurement 
(Code HC).
    (c) For the purposes of FAR 17.207: (1) In subdivision (f)(3)(i), 
the term ``fixed fee'' applies only to cost-plus-fixed-fee (CPFF) 
contracts and the term ``maximum fee'' applies to cost-plus-award-fee 
(CPAF) and cost-plus-incentive-fee (CPIF) contracts.
    (2) When using a formula pursuant to subdivision (c)(3)(ii), the 
formula shall be expressed in the contract in a way that precludes the 
contractor from increasing costs for the purpose of earning additional 
fee. Use of a formula requires advance approval of the Associate 
Administrator for Procurement. (Code HC).



Sec. 1817.208  Solicitation provisions and contract clauses.

    For the purpose of FAR 17.208(c)(3), cost reimbursement types of 
contracts are approved for agency use.



               Subpart 1817.4--Leader Company Contracting



Sec. 1817.401  General.

    It is NASA policy not to use the leader company contracting 
technique.



     Subpart 1817.5--Interagency Acquisitions Under the Economy Act



Sec. 1817.504  Ordering procedures.

    (a) It is NASA's policy not to place Government agencies in direct 
competition with commercial sources. Before offers are solicited from 
commercial sources, the field installation's Director or a designee (see 
NMI 5101.24, Delegation of Authority to Take Actions in Procurement, 
Grants, Cooperative Agreements, and Related Matters) must determine 
whether to obtain the supplies or services from another Government 
agency. Invitations for bids and requests for proposals shall not be 
sent to Government agencies. Current market prices, recent procurement

[[Page 234]]

prices, or prices obtained by informational submissions as provided in 
FAR 15.405 may be used to ascertain whether procurement can be effected 
more economically from commercial sources.
    (b) An order for services shall not be placed with an agency when 
they can be performed as conveniently or more economically by private 
contractors.
    (c) Delivery orders shall be placed on Optional Forms 347 and 348 or 
an installation-prescribed form. However, when energy services are 
procured under DOD areawide utility contracts, the method of ordering 
prescribed in the appropriate DOD areawide contract will be used. The 
form may be modified to satisfy NASA fiscal and administrative 
requirements and to contain such additional contract provisions as may 
be contemplated or permitted by the DOD areawide contract, except that 
it shall not be modified for use as a public voucher in lieu of Standard 
Form 1034.

[54 FR 28258, July 5, 1989, as amended at 59 FR 12197, Mar. 16, 1994]



         Subpart 1817.70--Procurement With Military Departments



Sec. 1817.7000  Scope of subpart.

    This subpart contains policies and procedures, developed jointly by 
NASA and DOD, for procurement of supplies or services by NASA from or 
through the Military Departments.



Sec. 1817.7001  Authorization and policy.

    (a) NASA is authorized by the National Aeronautics and Space Act of 
1958 (42 U.S.C. 2451 et seq.) to:
    (1) Use the procurement services, personnel, equipment, and 
facilities of the Military Departments, with their consent and with or 
without reimbursement, and, on a similar basis, to
    (2) Cooperate with the Military Departments in the use of 
procurement services, equipment, and facilities.
    (b) The Military Departments have agreed to cooperate fully with 
NASA in making their procurement services, equipment, personnel, and 
facilities available on the basis of mutual agreement.
    (c) The Military Departments have agreed not to claim reimbursement 
for administrative costs incident to procurements for NASA, except as 
may be otherwise agreed before the services are performed.
    (d) When procuring supplies or services for NASA or performing field 
service functions in support of NASA contracts, the Military Departments 
have agreed to use their own methods, except when otherwise required by 
the terms of the agreement involved.
    (e) The Military Departments normally will use their own funds when 
procuring supplies or services or performing services for NASA, and will 
not cite NASA funds on any Defense obligation or payment document.



Sec. 1817.7002  NASA-Defense Purchase Request and acceptance.

    (a) The NASA-Defense Purchase Request (NASA Form 523) shall be used 
by NASA contracting offices for requesting procurement of supplies or 
services from all activities of the Military Departments. Individual 
NASA-Defense Purchase Requests shall be prepared in accordance with the 
instructions on the reverse of NASA Form 523 and shall be numbered in 
accordance with subpart 1804.71. The form shall not be used for 
requesting--
    (1) Block transfers of excess property between NASA and the Military 
Departments;
    (2) Performance by the Military Departments of field service 
functions related to NASA contracts; or
    (3) Items that the Military Departments normally purchase and stock 
for military use or in-house services, except when a DOD activity is 
willing to accept the form for these purposes. Supplies and services of 
this nature may be requisitioned using appropriate DOD forms when they 
are provided by and are acceptable to or preferred by the Military 
Department supplying activity or as otherwise mutually agreed upon by 
the parties.
    (b) To obtain materials from the Air Force Missile Procurement Fund, 
the contracting officer shall follow the procedures of 1808.002-74.



Sec. 1817.7002-1  Acceptance by Military Department.

    (a) Except as provided in paragraph (c) of this section, the 
Military Department concerned will, within 30 days

[[Page 235]]

after receipt of a NASA-Defense Purchase Request, forward to the 
initiator of the request an Acceptance of MIPR, DD Form 448-2, in 
quadruplicate. Each DD Form 448-2 will show the action being taken or to 
be taken to fill the requirement and the name and complete address of 
the DOD contracting activity.
    (b) To the extent feasible, all documents (including acceptances, 
contracts, correspondence, shipping documents, work or project orders, 
and Standard Form 1080 (Voucher for Transfer between Appropriations and/
or Funds) billings) will reference the NASA-Defense Purchase Request 
number and the item number.
    (c) Acceptance by the Military Department is not required for NASA-
Defense Purchase Requests covering deliveries of common-use standard-
stock items that the supplying agency has on hand or on order for prompt 
delivery at published prices.



Sec. 1817.7002-2  Changes in estimated total prices.

    When a Military Department determines that the estimated total price 
(Block 7, NASA Form 523) of the items to be acquired for NASA is not 
sufficient to cover the required reimbursement or is in excess of the 
amount required, a request for an amendment will be forwarded to the 
NASA originating office. The request will indicate a specific dollar 
amount, rather than a percentage, and will include justification for any 
upward adjustment requested. Upon approval of the request, the NASA 
contracting office concerned shall forward to the DOD contracting 
activity an amendment to the NASA Defense Purchase Request.

[54 FR 28258, July 5, 1989, as amended at 57 FR 58720, Dec. 11, 1992]



Sec. 1817.7002-3  Payments.

    Except when agreements provide that reimbursement is not required, 
payments to the Military Departments for supplies and services furnished 
to or acquired for NASA shall be effected upon receipt of Standard Form 
1080 billings by the NASA office designated in Block 9 of the NASA-
Defense Purchase Request. Billings will be supported in the same manner 
as billings between Military Departments.

[54 FR 28258, July 5, 1989, as amended at 57 FR 58720, Dec. 11, 1992]



Sec. 1817.7002-4  Contract clause.

    The contracting officer shall insert the clause at 1852.217-70, 
Property Administration and Reporting, in any NASA-Defense Purchase 
Request when property will be involved.



         Subpart 1817.71--Exchange or Sale of Personal Property



Sec. 1817.7101  Policy.

    (a) Section 201(c) of the Federal Property and Administrative 
Services Act of 1949, 63 Stat. 384, as amended (40 U.S.C. 481(c)), 
authorizes the exchange or sale of Government personal property and the 
application of the exchange allowance or proceeds from sale to the 
acquisition of similar property for replacement purposes.
    (b) NASA installations and contractors are authorized to conduct 
exchange/sale transactions as long as the requirements and restrictions 
of NHB 4300.1 and the Federal Property Management Regulations, 
Subchapter H, paragraphs 101-46, are followed. In conducting such 
exchanges/sales, NASA contractors must obtain the contracting officer's 
prior written approval and must report the transactions to the cognizant 
NASA Installation Property Disposal Officer (PDO).

[[Page 236]]



                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS





PART 1819--SMALL BUSINESS PROGRAMS--Table of Contents




Sec.
1819.001  Definitions.

                       Subpart 1819.1--[Reserved]

                        Subpart 1819.2--Policies

1819.201  General policy.
1819.202  Specific policies.
1819.202-4  Solicitation.

   Subpart 1819.3--Determination of Status as a Small Business Concern

1819.302  Protesting a small business representation.

   Subpart 1819.4--Cooperation with the Small Business Administration

1819.401  General.

              Subpart 1819.5--Set-Asides for Small Business

1819.501  General.
1819.502  Setting aside acquisitions.
1819.502-3  Partial set-asides.
1819.503  Setting aside a class of acquisitions.
1819.505  Rejecting Small Business Administration recommendations.
1819.505-70  Notification of SBA appeals.

    Subpart 1819.6--Certificates of Competency and Determinations of 
                               Eligibility

1819.601  General.
1819.602  Procedures.
1819.602-1  Referral.
1819.602-3  Resolving differences between the agency and the Small 
          Business Administration.
1819.602-70  Reports on certificates of competency.

Subpart 1819.7--Subcontracting with Small Business, Small Disadvantaged 
            Business and Women-Owned Small Business Concerns

1819.705-4  Reviewing the subcontracting plan.
1819.707  The Small Business Administration's role in carrying out the 
          program.
1819.708  Solicitation provisions and contract clauses.
1819.708-70  NASA solicitation provision and contract clause.

Subpart 1819.8--Contracting with the Small Business Administration (The 
                              8(a) Program)

1819.804  Evaluation, offering, and acceptance.

  Subpart 1819.10--Small Business Competitiveness Demonstration Program

1819.1005  Applicability.

   Subpart 1819.70--NASA Small Disadvantaged Business Contracting and 
                           Subcontracting Goal

1819.7001  Scope of subpart.
1819.7002  Definitions.
1819.7003  General policy.
1819.7004  Contract clause.

          Subpart 1819.71--NASA Rural Area Small Business Plan

1819.7101  Definition.
1819.7102  General.
1819.7103  Solicitation provision and contract clause.

            Subpart 1819.72--The NASA Mentor-Protege Program

1819.7201  Scope of subpart.
1819.7202  Definitions.
1819.7203  Non-affiliation.
1819.7204  Transportability of features from the Department of Defense 
          (DOD) Mentor-Protege Program to NASA contractors.
1819.7205  General policy.
1819.7206  Incentives for prime contractor participation.
1819.7207  Measurement of program success.
1819.7208  Mentor firms.
1819.7209  Protege firms.
1819.7210  Selection of protege firms.
1819.7211  Application process for mentor firms to participate in the 
          program.
1819.7212  OSDBU review and approval process of agreement.
1819.7213  Agreement contents.
1819.7214  Developmental assistance.
1819.7215  Obligation.
1819.7216  Internal controls.
1819.7217  Reports.
1819.7218  Program review.
1819.7219  Solicitation provision and contract clauses.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28260, July 5, 1989, unless otherwise noted.

[[Page 237]]



Sec. 1819.001   Definitions.

    Small Business Specialist means the person who--
    (1) Is appointed by the Head of each NASA installation having 
procurement responsibilities; and
    (2) Is the central point of contact for all small business and labor 
surplus area matters. See 1819.201 (b) and (c) for a detailed 
description of this position. This person is synonymous with the Small 
and Disadvantaged Business Utilization Specialist (see FAR 19.201(d)).



                       Subpart 1819.1--[Reserved]



                        Subpart 1819.2--Policies



Sec. 1819.201   General policy.

    (a) NASA Headquarters. The Director of Small and Disadvantaged 
Business Utilization (Code K) is responsible for:
    (1) The general supervision and coordination of the NASA Small 
Business Program;
    (2) Developing the policy and procedures for implementing the NASA 
Small Business Program, Minority Business Program, Women Owned Business 
Program, and Labor Surplus Area Program;
    (3) Advising the Administrator and other NASA officials on these 
matters; and
    (4) Representing NASA before other Government agencies and industry 
on matters related to the programs listed in paragraph (a)(2) of this 
section.
    (b) Installations. The Head of each installation having procurement 
responsibilities shall designate a qualified individual in the 
contracting office as a Small Business Specialist to provide a central 
point of contact to which small business concerns may direct inquiries 
concerning small business matters and participation in the NASA 
procurement program. The Small Business Specialist shall also perform 
other functions specifically set forth in this section 1819.201 or that 
the Procurement Officer may prescribe for implementing the Small 
Business Program, including responsibility for the Labor Surplus Area 
Program described in FAR part 20. When the Head of an installation 
considers that the volume of procurement or the functions relating to 
procurement at the installation do not warrant a full-time Small 
Business Specialist, these duties may be assigned to procurement 
personnel on a part-time basis.
    (c) Small Business Specialists. Small Business Specialists appointed 
under paragraph (b) of this section shall perform the following duties, 
as the Procurement Officer determines appropriate to the installation:
    (1) Maintain a program designed to locate capable small business 
sources for current and future procurements.
    (2) Coordinate inquiries and requests for advice from small business 
concerns on procurement matters.
    (3) Before issuance of solicitations or contract modifications for 
additional supplies or services, determine that small business concerns 
will receive adequate consideration, including initiation of set-asides 
(see FAR subpart 19.5).
    (4) If small business concerns cannot be given an opportunity to 
compete because adequate specifications or drawings are not available, 
initiate action (unless there are sufficient and valid reasons to the 
contrary), in writing, with appropriate technical and contracting 
personnel to ensure that necessary specifications or drawings for 
current or future procurements will be available.
    (5) Review procurement programs for possible breakout of items 
suitable for procurement from small business concerns.
    (6) Advise small business concerns regarding financial assistance 
available under laws and regulations, assist such concerns in applying 
for it, and ensure that small business concerns' requests for financial 
assistance are not treated as a handicap in securing the award of 
contracts.
    (7) Participate in responsibility determinations (see FAR 9.103) 
whenever small business concerns are involved.
    (8) Participate in the evaluation of prime contractors' small 
business subcontracting programs (see FAR 19.705-4).
    (9) Review and make appropriate recommendations to the contracting 
officer on any proposal to furnish Government-owned facilities to a 
contractor if

[[Page 238]]

such action may hurt the Small Business Program.
    (10) Ensure that participation of small business concerns is 
accurately reported.
    (11) Notify the Procurement Officer of possible contracting 
opportunities in labor surplus areas.
    (12) Make available to SBA copies of solicitations when requested.
    (13) Act as liaison between contracting officers and SBA field 
offices and representatives in connection with set-asides, certificates 
of competency, and any other matters in which the Small Business Program 
may be involved. Procurements in which certificates of competency are 
requested shall be reported in writing to the Director, Small and 
Disadvantaged Business Utilization, NASA Headquarters, (Code K). The 
report should describe the requirement, list the offerors, and give the 
contract prices specified in the offers as submitted and the reason for 
the proposed rejection of an otherwise acceptable small business offer. 
Pertinent dates, such as the required date for the completion of the 
procurement and the date of the request for the certificate of 
competency, should also be furnished.
    (14) In cooperation with contracting officers and technical 
personnel, seek and develop information on the technical competence of 
small business concerns for research and development contracts. 
Regularly bring to the attention of contracting officers and technical 
personnel descriptive data, brochures, and other information regarding 
small business concerns that are apparently competent to perform 
research and development work in fields in which NASA is interested.
    (15) When a small business concern's offer has been rejected for 
nonresponsiveness or nonresponsibility, aid, counsel, and assist that 
concern, upon its request, in understanding requirements for 
responsiveness and responsibility so that the concern can qualify for 
future awards.
1819.202  Specific policies.



Sec. 1819.202-4  Solicitation.

    The contracting officer shall include in the solicitation mailing 
list the names of firms submitted by SBA, unless there is a valid reason 
for not so doing.



   Subpart 1819.3--Determination of Status as a Small Business Concern



Sec. 1819.302  Protesting a small business representation.

    The contracting officer shall not make awards of small business set-
aside procurements before:
    (a) Five working days after bid opening for sealed-bid acquisitions 
or
    (b) The deadline for submitting a protest that was included in the 
notification to apparently unsuccessful offerors. (See FAR 
19.302(h)(1).)



   Subpart 1819.4--Cooperation With the Small Business Administration



Sec. 1819.401  General.

    Contracting officers shall consult and cooperate with SBA to carry 
out the purposes of the Small Business Act.



              Subpart 1819.5--Set-Asides for Small Business



Sec. 1819.501  General.

    The Small Business Specialist:
    (a) May make certain set-aside recommendations;
    (b) Is responsible for reviewing those procurements not set aside; 
and
    (c) Is responsible for taking action in accordance with FAR 
19.506(b).

[54 FR 53631, Dec. 29, 1989]
1819.502  Setting aside acquisitions.



Sec. 1819.502-3  Partial set-asides.

    (a)(1) Contracting officers shall require offers obtained from firms 
eligible for the set-aside portion of the requirement under the clause 
at FAR 52.219-7, Notice of Partial Small Business Set-Aside, to be in 
writing and to include agreement--
    (i) On the price for the available set-aside quantity,
    (ii) On the delivery schedule,
    (iii) That all other terms and conditions of the solicitation apply 
to the set-aside award, and

[[Page 239]]

    (iv) To include the clause at FAR 52.215-2, Audit and Records--
Negotiation.
    (2) When the non-set-aside portion has been awarded to a small 
business concern entitled to receive the set-aside portion, the set-
aside portion may be added to the basic contract by supplemental 
agreement. The supplemental agreement shall:
    (i) Refer to the contractor's offer on the set-aside quantity,
    (ii) State the price and delivery schedule applicable to the set-
aside quantity, and
    (iii) Include the clauses at FAR 15.215-1 and 15.215-2.

The contracting officer shall attach to the supplemental agreement 
copies of all pertinent documents, including the signed offer. The 
contracting officer shall also sign the supplemental agreement, but the 
contractor need not, since the contractor's signature on the attached 
offer is sufficient.
    (3) When the non-set-aside portion has been awarded to a firm other 
than the concern entitled to receive the set-aside portion, the 
contracting officer shall award the set-aside portion using Standard 
Form 26. The offers obtained and the award form used shall reference and 
include the same data required by paragraphs (a) (1) and (2) of this 
section. Also, the award shall reference in Block 18 of SF 26 the 
applicable solicitation and the contractor's written offer. The 
contracting officer shall attach copies of the solicitation and offer 
and shall sign the SF 26, but the contractor need not, since the 
contractor's signature on the attached offer is sufficient.
    (b) The contracting officer shall separately report awards of the 
non-set-aside portions of small business set-aside procurements (see 
subpart 1804.6).

[54 FR 28260, July 5, 1989, as amended at 60 FR 47712, Sept. 14, 1995]



Sec. 1819.503  Setting aside a class of acquisitions.

    The contracting officer shall retain a copy of each class set-aside 
determination.



Sec. 1819.505  Rejecting Small Business Administration recommendations.

    (a) The Small Business Specialist may make a set-aside 
recommendation with respect to any individual or class set-aside except 
those on which an SBA representative has made a recommendation.
    (b) If the Small Business Specialist recommends that an individual 
procurement or a class of procurements, or a portion thereof, be set 
aside, the contracting officer shall promptly either concur in or 
disapprove the recommendation, stating in writing the reasons for 
disapproval.
    (c) If the contracting officer disapproves the Small Business 
Specialist's recommendation, the contracting officer shall promptly 
refer the case to the SBA representative (if one is assigned and 
available) for review. The Small Business Specialist shall take no 
further appeal action. If an SBA representative is not assigned or 
available, resolution of disagreements on set-asides between the Small 
Business Specialist and the contracting officer shall be accomplished in 
accordance with the procedures in paragraph (e) of this section.
    (d) All cases involving the non-initiation of a set-aside, whether 
resulting from (i) a joint decision of the Small Business Specialist and 
the contracting officer or (ii) a determination by the contracting 
officer alone, require referral to the SBA representative (if one is 
assigned and available) for review. The SBA representative must either 
concur with the decision or determination or appeal the case under FAR 
19.505.
    (e) When an SBA representative is not assigned or available and the 
contracting officer disagrees with the Small Business Specialist's 
recommendation on a small business set-aside for an individual 
procurement or a class of procurements, or a portion thereof, and so 
notifies the Small Business specialist in writing, or if the Small 
Business Specialist disagrees with the contracting officer regarding 
withdrawal or modification of a set-aside determination, the Small 
Business Specialist may appeal in writing to the Procurement Officer 
(see 1819.201(b)) for a decision, which shall be final. The contracting 
officer shall

[[Page 240]]

place a memorandum of the Procurement Officer's decision in the contract 
file. If the decision approves the contracting officer's action, the 
Small Business Specialist shall forward complete documentation of the 
case to the Director of Small and Disadvantaged Business Utilization, 
NASA Headquarters, Code K.
    (f) The contracting officer shall prepare, sign, and retain in the 
contract file a memorandum of any withdrawal or modification or of 
nonconcurrence in a recommended set-aside action.

[54 FR 28260, July 5, 1989, as amended at 54 FR 53631, Dec. 29, 1989; 57 
FR 40854, Sept. 8, 1992]



Sec. 1819.505-70  Notification of SBA appeals.

    The SBA representatives may appeal the contracting officer's 
decision as described in 1819.505 (c) or (d) to the procurement officer, 
who may support the contracting officer's decision. Upon later review of 
the procurement officer's decision approving the contracting officer's 
determination described in 1819.505(e), SBA may disagree with the 
procurement officer's decision not to set aside a procurement for small 
business. If the SBA appeals the procurement officer's decision, Code H 
should be notified in writing as soon as SBA appeals this decision. This 
notification should include a history of the center and SBA discussions 
on the procurement as well as any actions the center has taken.

[59 FR 38131, July 27, 1994]



    Subpart 1819.6--Certificates of Competency and Determinations of 
                               Eligibility



Sec. 1819.601  General.

    On proposed awards exceeding the small purchase limitation, the 
contracting officer shall request a preaward survey (see FAR 9.106) 
before determining that a responsive small business firm is not 
responsible.
1819.602  Procedures.



Sec. 1819.602-1  Referral.

    The contracting officer shall forward a copy of the communication 
referring the matter to SBA through the Procurement Officer to the 
Director, Small and Disadvantaged Business Utilization, NASA 
Headquarters, (Code K).



Sec. 1819.602-3  Resolving differences between the agency and the Small Business Administration.

    (a) When there is a disagreement between the contracting officer and 
SBA, the contracting officer shall forward to the Associate 
Administrator for Procurement (Code H) through channels, on an expedited 
basis, a complete case file with a request that the case be considered 
for appeal to SBA Headquarters. The contracting officer shall include 
the data already furnished to SBA, SBA's rationale for proposing to 
issue a certificate of competency, and the contracting officer's 
comments. The contracting officer shall suspend procurement action until 
informed by the Associate Administrator for Procurement of the final 
decision in the case.
    (b) If the Associate Administrator for Procurement concludes that 
the referral to SBA should be withdrawn and a contract awarded without 
benefit of a certificate of competency, the Associate Administrator for 
Procurement shall inform the contracting officer and provide written 
instructions on how to proceed with the procurement.
    (c) If the Associate Administrator for Procurement agrees with the 
contracting officer's recommended appeal action, the contracting officer 
shall request SBA's Central Office to review the SBA Regional office's 
proposal to issue a certificate of competency.



Sec. 1819.602-70  Reports on certificates of competency.

    Small Business Specialists shall inform the Director of Small and 
Disadvantaged Business Utilization, NASA Headquarters (Code K), 
quarterly in writing, of all certificate of competency cases initiated 
during the quarter and of the final disposition made on cases during the 
quarter, including the number and dollar value of certificates of 
competency issued during the period. The Small Business Specialist shall 
include the company name, item being procured, solicitation

[[Page 241]]

number, dollar value of the procurement, and date the case was submitted 
to SBA. In addition, the Small Business Specialist shall provide advice 
and data for all cases where:
    (a) The small business concern elects not to file an application for 
a certificate of competency,
    (b) SBA declines to issue a certificate of competency, or
    (c) The contracting activity reverses the pre-award survey 
activity's negative finding on responsibility, withdraws the referral to 
SBA, and makes the award.



Subpart 1819.7--Subcontracting with Small Business, Small Disadvantaged 
            Business and Women-Owned Small Business Concerns



Sec. 1819.705-4  Reviewing the subcontracting plan.

    (a) Subcontracting plans must reflect realistic and justifiable 
percentage and dollar goals for subcontracting with small business 
concerns and small disadvantaged business concerns. Prime contractors 
shall be encouraged to submit, when possible, positive goals (i.e., 
greater than zero) in their initial plans. In evaluating subcontracting 
plans, contracting officers shall challenge any unrealistically low and 
particularly any proposed zero goals to ascertain what opportunity 
exists for subcontracting with small and small disadvantaged firms. The 
evaluation may include a specific review of the factors used by the 
prime contractor to develop its goal, the past performance of the prime 
contractor on similar requirements, and the current procedures used by 
the prime to maximize the opportunities for small and small 
disadvantaged businesses to participate in its subcontracting program. 
The contract file shall be documented to reflect the review and the 
contracting officer's decision on the goal which is finally accepted.
    (b) NASA contracting officers may accept as an element of a 
subcontracting plan the prime contractor's intention to use total small 
business, small disadvantaged business, women-owned business, 
historically black college and university, or minority educational 
institution set-asides in awarding subcontracts so long as such set-
asides are competitive and awards are made at reasonable prices. Use of 
this procedure will be viewed as a good indication of an aggressive 
subcontracting plan. Set-asides may be encouraged but may not be 
required when negotiating subcontracting plans.

[55 FR 47478, Nov. 14, 1990, as amended at 56 FR 48746, Sept. 26, 1991; 
58 FR 42879, Aug. 12, 1993]



Sec. 1819.707  The Small Business Administration's role in carrying out the program.

    Under the provisions of FAR 19.707(a) (2) and (3), 5 days are 
allotted for SBA review of solicitations and contracts subject to the 
subcontracting program. In the absence of SBA request for the documents, 
the contracting officer may elect not to seek review.
1819.708  Solicitation provisions and contract clauses.



Sec. 1819.708-70  NASA solicitation provision and contract clause.

    (a) The contracting officer shall insert the provision at 1852.219-
73, Small Business and Small Disadvantaged Business Subcontracting Plan, 
in solicitations containing the clause at FAR 52.219-9. Insert in the 
last sentence the number of calendar days after request that the offeror 
must submit a complete plan. When offerors are to include subcontracting 
plans in their initial offer as contemplated by FAR 19.705-2(d), or if a 
noncompetitive solicitation will be issued, the contracting officer may 
use the provision with its Alternate I.
    (b) The contracting officer shall insert the clause at 1852.219-75, 
Small Business and Small Disadvantaged Business Subcontracting 
Reporting, in solicitations and contracts containing the clause at FAR 
52.219-9.

[54 FR 28260, July 5, 1989, as amended at 58 FR 51141, Sept. 30, 1993; 
59 FR 66269, Dec. 23, 1994; 60 FR 53881, Oct. 18, 1995]

[[Page 242]]



Subpart 1819.8--Contracting With the Small Business Administration (The 
                              8(a) Program)



Sec. 1819.804  Evaluation, offering, and acceptance.

    The Small Business Specialist shall review and evaluate all 
procurement requirements to determine their suitability for offering to 
SBA for 8(a) acceptance and make a recommendation to the contracting 
officer concerning award to SBA.

[55 FR 12175, Apr. 2, 1990]



  Subpart 1819.10--Small Business Competitiveness Demonstration Program



Sec. 1819.1005  Applicability.

    The targeted industry categories for NASA and their Standard 
Industrial Classification (SIC) codes are:

                     SIC Code and Industry Category

3571  Electronic Computers
3577  Computer Peripheral Equipment, not elsewhere classified
3663  Radio & TV Broadcasting and Communications Equipment
3764  Guided Missile and Space Vehicle Propulsion Units and Propulsion 
Unit Parts
3769  Guided Missile and Space Vehicle Parts and Auxiliary Equipment, 
not elsewhere classified
3812  Search, Detection, Navigation, Guidance, Aeronautical, and 
Nautical Systems and Instruments
3827  Optical Instruments and Lenses
7371  Computer Programming Services
7373  Computer Integrated Systems Design
7379  Computer Related Services, not elsewhere classified.

[54 FR 39371, Sept. 26, 1989]



   Subpart 1819.70--NASA Small Disadvantaged Business Contracting and 
                           Subcontracting Goal

    Source: 56 FR 48746, Sept. 26, 1991, unless otherwise noted.



Sec. 1819.7001  Scope of subpart.

    This subpart implements legislative provisions (Public Laws 101-507 
and 101-144) which require the NASA Administrator to ensure, to the 
fullest extent possible, that at least 8% of Federal funding for prime 
and subcontracts awarded in support of authorized programs, including 
the space station by the time operational status is obtained, be made 
available to small business concerns or other organizations owned or 
controlled by socially and economically disadvantaged individuals 
(within the meaning of section 8(a) (5) and (6) of the Small Business 
Act (15 U.S.C. 637(a) (5) and (6)), including Historically Black 
Colleges and Universities and minority education institutions. For 
purposes of this subpart, socially and economically disadvantaged 
individuals shall be deemed to include women.



Sec. 1819.7002  Definitions.

    Historically Black Colleges and Universities, as used in this 
subpart means institutions determined by the Secretary of Education to 
meet the requirements of 34 CFR 608.2 and listed therein.
    Minority educational institutions, as used in this subpart, means 
institutions meeting the criteria established in 34 CFR 607.2 by the 
Secretary of Education.
    Small disadvantaged business concern, as used in this subpart, means 
a small business concern owned or controlled by individuals who are both 
socially and economically disadvantaged (within the meaning of section 
8(a) (5) and (6) of the Small Business Act (15 U.S.C. 637(a) (5) and 
(6)). Socially and economically disadvantaged individuals shall be 
deemed to include women.



Sec. 1819.7003  General policy.

    The Congress has indicated its commitment to increasing the role of 
small disadvantaged concerns, including women-owned concerns, 
Historically Black Colleges and Universities, and minority educational 
institutions, in the aerospace industry, particularly in NASA-related 
procurement (Public Laws 101-507 and 101-144). The agency's goal is to 
award to such concerns and organizations 8% of the total value of prime 
and subcontracts in support of authorized programs by the end of fiscal 
year 1994. The participation of NASA prime contractors is essential to 
meet this goal.

[[Page 243]]



Sec. 1819.7004  Contract clause.

    The contracting officer shall insert the clause at 1852.219-76, NASA 
Small Disadvantaged Business Goal, in all solicitations and contracts 
(other than those for small purchases).



          Subpart 1819.71--NASA Rural Area Small Business Plan

    Source: 55 FR 47479, Nov. 14, 1990, unless otherwise noted.



Sec. 1819.7101  Definition.

    Rural area means a county with a population of fewer than twenty 
thousand individuals.



Sec. 1819.7102  General.

    Public Law 100-590 requires NASA to establish a Rural Area Business 
Enterprise Development Plan that includes methods for encouraging prime 
and subcontractors to use small business contractors located in rural 
areas as subcontractors. One method is to encourage the contractor to 
use its best efforts to comply with the intent of the statute.



Sec. 1819.7103  Solicitation provision and contract clause.

    The contracting officer shall insert the clause at 1852.219-74, Use 
of Rural Area Small Businesses, in solicitations and contracts that 
offer subcontracting possibilities or that are expected to exceed 
$500,000 ($1,000,000 for construction of public facility) unless the 
contract, together with all its subcontracts, is to be performed 
entirely outside of any State, territory, or possession of the United 
States, the District of Columbia, and the Commonwealth of Puerto Rico.



            Subpart 1819.72--The NADA Mentor-Protege Program

    Source: 60 FR 15500, Mar. 24, 1995, unless otherwise noted.



Sec. 1819.7201  Scope of subpart.

    The NASA Mentor-Protege Program is designed to incentivize NASA 
prime contractors to assist Small Disadvantaged Business concerns, 
Historically Black Colleges and Universities, and Minority Institutions 
in enhancing their capabilities to perform NASA contracts and 
subcontracts, foster the establishment of long-term business 
relationships between these entities and NASA prime contractors, and 
increase the overall number of these entities that receive NASA contract 
and subcontract awards.



Sec. 1819.7202  Definitions.

    (a) Historically Black Colleges and Universities (HBCU), as used in 
this subpart, means institutions determined by the Secretary of 
Education to meet the requirements of 34 CFR 608.2 and listed therein. 
HBCUs include any nonprofit research institution that was an integral 
part of such a college or university before November 14, 1986.
    (b) Minority Institutions (MI), as used in this subpart, means 
institutions verified by the Secretary of Education to meet the criteria 
set forth in 34 CFR 637.4. MIs include Hispanic-serving institutions as 
defined by 20 U.S.C. 1059c(b)(1).
    (c) Small Disadvantaged Business concern (SDB), as used in this 
subpart, means small business concerns owned and controlled by socially 
and economically disadvantaged individuals (as those terms are used in 
section 8(a) of the Small Business Act (15 U.S.C. 637(a) (5) and (6))) 
and small business concerns owned and controlled by women (see section 
8(d) of the Small Business Act (15 U.S.C. 637(d)) as amended by Public 
Law 103-355.
    (d) High-Tech: As used in this subpart, means research and/or 
development efforts that are within or advances the state-of-the-art in 
a technology discipline and are performed primarily by professional 
engineers, scientists, and highly skilled and trained technicians or 
specialists.



Sec. 1819.7203  Non-affiliation.

    For purposes of the Small Business Act, a protege firm may not be 
considered an affiliate of a mentor firm solely on the basis that the 
protege firm is receiving developmental assistance referred to in 
1819.7214 from such mentor firm under the program. Neither shall partial 
ownership, up to 10 percent of a

[[Page 244]]

Department of Defense (DOD) sanctioned Protege firm by its DOD mentor 
constitute affiliation by NASA.



Sec. 1819.7204  Transportability of features from the Department of Defense (DOD) Mentor-Protege Program to NASA contractors.

    (a) In accordance with the benefits authorized by the DOD Mentor-
Protege program (Public Law 101-510, Section 831, as amended by Public 
Law 102-190, Section 814), a NASA contractor who is also an approved DOD 
Mentor can transfer credit features to their NASA contracts.
    (b) NASA prime contractors, who are approved DOD mentors, can award 
subcontracts noncompetitively under their NASA contracts to the proteges 
which they are assisting under the DOD program (Public Law 101-510, 
Section 831(f)(2)).
    (c) NASA prime contractors may count the costs of developmental 
assistance provided to proteges being assisted under the DOD program 
toward meeting the goals in their subcontracting plans under their NASA 
prime contracts (Public Law 102-190, Section 814). Limitations which may 
reduce the value of this benefit include:
    (1) Credit toward attaining subcontracting goals is available only 
to the extent that the developmental assistance costs have not been 
reimbursed to the contractor by DOD as direct or indirect costs; or
    (2) The credit is available to meet the goals of a NASA 
subcontracting plan only to the extent that it has not been applied to a 
DOD subcontracting plan. The same unreimbursed developmental assistance 
costs cannot be counted toward meeting the subcontracting goals of more 
than one prime contract. These costs would accrue from credit for the 
multiples attributed to assistance provided by Small Business 
Development Centers, Historically Black Colleges and Universities and 
Minority Educational Institutions.
    (d) The features identified in paragraphs (a), (b) and (c) of this 
section point out the portability of features from the DOD Mentor 
Protege Program to NASA prime contractors. NASA mentors will be held to 
show ``good faith'' by providing actual developmental assistance beyond 
transferring credit from activity in the DOD program to NASA 
subcontracting plans.



Sec. 1819.7205  General policy.

    (a) Eligible large business prime contractors, not included on the 
``Parties Excluded from Procurement Program'' list, who have at least 
one active subcontracting plan, and who are approved as mentor firms 
will enter into agreements with eligible entities as defined in 
1819.7202 as Proteges to provide appropriate developmental assistance to 
enhance the capabilities of Proteges to perform as subcontractors and 
suppliers. Eligible small business prime contractors, not included on 
the ``Parties Excluded from Procurement Programs'' list, and that are 
capable of providing developmental assistance to SDB's, may be approved 
as mentors. An active mentor-protege arrangement requires the protege to 
be a subcontractor under the mentor's prime contract with NASA.
    (b) The pilot program has a duration of three years commencing from 
March 24, 1995. During this period, eligible mentor firms, which have 
received approval by NASA to participate in the program pursuant to 
section 1819.7212, may enter into agreements with protege firms.
    (c) For the pilot phase of the program, mentor-protege activity will 
be limited to cost-plus-award-fee contracts.
    (d) Costs incurred by a mentor to provide developmental assistance, 
technical or managerial assistance described in section 1819.7214, are 
allowable.



Sec. 1819.7206  Incentives for prime contractor participation.

    (a) During source selection, Mentor-Protege will be evaluated under 
SDB Utilization which is a stand-alone evaluation subfactor under the 
Mission Suitability.
    (b) Under cost-plus-award fee contracts, approved mentor firms shall 
be eligible to earn award fee associated with their performance as a 
mentor by performance evaluation period. The award fee plans of all NASA 
contracts are structured such that 15 percent of the available award fee 
is allocated for

[[Page 245]]

Small Disadvantaged Business Utilization. Mentor-Protege performance 
will be evaluated under Small Disadvantaged Business Utilization as a 
separate element and allocated a separate 5 percent of the 15 percent 
award fee. For purposes of earning award fee, the Mentor firm's 
performance shall be evaluated to determine the degree to which the 
participation went beyond (exceeded) the negotiated SDB goals 
commitment. Specifically, the Mentor firm's performance will be 
evaluated against the criteria described in the NASA FAR Supplement 
provision at 1852.219-79.



Sec. 1819.7207  Measurement of program success.

    The overall success of the NASA Mentor-Protege program encompassing 
all participating Mentors and proteges will be measured by the extent to 
which it results in:
    (a) An increase in the number, dollar value and percentage of 
subcontracts awarded to proteges by mentor firms under NASA contracts 
since the date of entry into the program;
    (b) An increase in the number and dollar value of contract and 
subcontract awards to protege firms since the time of their entry into 
the program (under NASA contracts, contracts awarded by other Federal 
agencies and under commercial contracts);
    (c) An increase in the number and dollar value of subcontracts 
awarded to a protege firm by its mentor firm; and
    (d) An increase in subcontracting with protege firms in industry 
categories where they have not traditionally participated within the 
mentor firm's activity.



Sec. 1819.7208  Mentor firms.

    (a) Eligibility.
    (1) Contractors eligible for receipt of government contracts;
    (2) Large prime contractors performing under contracts with at least 
one negotiated subcontracting plan as required by 48 CFR (FAR) 19.7; and
    (3) Small Business prime contractors that can provide developmental 
assistance to enhance the capabilities of proteges to perform as 
subcontractors and suppliers. A small business prime contractor 
performing under a NASA contract that does not contain a negotiated 
subcontracting plan may apply.
    (b) Mentors will be encouraged to identify and select:
    (1) A broad base of firms including those defined as emerging firms 
(e.g., a protege whose size is no greater than 50 percent of the size 
standard applicable to the SIC code assigned to a contracting 
opportunity); and
    (2) Proteges in addition to firms with whom they have established 
business relationships.
    (3) High-Tech firms as proteges.



Sec. 1819.7209  Protege firms.

    (a) For selection as a protege, a firm must be:
    (1) An SDB, HBCU or MI as those terms are defined in 1891.7202:
    (2) Certified as small in the SIC code for the services or supplies 
to be provided by the protege under its subcontract to the mentor; and
    (3) Eligible for receipt of government contracts.
    (b) A protege firm may self-certify to a mentor firm that it meets 
the requirements set forth in paragraph (a) of this section. Mentor may 
rely in good faith on written representations by potential proteges that 
they meet the specified eligibility requirements.
    (c) Proteges may have multiple mentors. Proteges participating in 
mentor-protege programs in addition to the NASA program should maintain 
a system for preparing separate reports of mentoring activity for each 
agency's program.



Sec. 1819.7210  Selection of protege firms.

    (a) Mentor firms will be solely responsible for selecting protege 
firms. The mentor is encouraged to identify and select the types of 
protege firms listed in 1819.7208(b).
    (b) Mentor firms may have more than one protege.
    (c) The selection of protege firms by mentor firms may not be 
protested, except as in paragraph (d) of this section.
    (d) Any protest regarding the size or eligibility status of an 
entity selected by a mentor to be a protege shall be referred solely to 
the Associate Administrator, Office of Small and Disadvantaged Business 
Utilization (OSDBU), NASA for resolution. In its discretion,

[[Page 246]]

NASA may seek an advisory opinion from the Small Business 
Administration.



Sec. 1819.7211  Application process for mentor firms to participate in the program.

    (a) Prime contractors interested in becoming a mentor firm must 
submit a request to the NASA OSDBU to be approved under the program. The 
application will be evaluated on the extent to which the company plans 
to provide developmental assistance. The information required in 
paragraph (b) of this section must be submitted to be considered for 
approval as a mentor firm.
    (b) A proposed mentor must submit the following information to the 
NASA OSDBU:
    (1) Certification that the mentor firm is currently performing under 
at least one active approved subcontracting plan (small business 
exempted) and that they are eligible, as of the date of application, for 
the award of Federal contracts;
    (2) The cognizant NASA contract number(s), type of contract, period 
of performance (including options), title of technical program effort, 
name of NASA Program Manager (including contact information) and name of 
NASA field center where support is provided;
    (3) The number of proposed Mentor-Protege arrangements;
    (4) Data on all current NASA contracts and subcontracts to include 
the contract/subcontract number(s), period of performance, awarding NASA 
installation or contractor and contract/subcontract value(s) including 
options;
    (5) Data on total number and dollar amount of subcontracts awarded 
under NASA prime contracts within the past 2 years and the number of 
dollar value of such subcontracts awarded to entities defined as 
proteges.
    (6) Information on the proposed types of developmental assistance. 
For each proposed Mentor-Protege relationship include information on the 
company's ability to provide developmental assistance to the identified 
protege firm and how that assistance will potentially increase 
subcontracting opportunities for the protege firm, including 
subcontracting opportunities in industry categories where these entities 
are not dominant in the company's current subcontractor base; and
    (7) A Letter of Intent signed by both parties. At a minimum, the 
Letter of Intent must include the stated commitment that the parties 
intend to enter into a mentor-protege agreement under the NASA program, 
that they intend to cooperate in the developmental of a suitable 
development assistance program to meet their respective needs, and that 
they agree to comply with the obligations in section 1819.7215 and all 
other provisions governing the program.



Sec. 1819.7212  OSDBU review and approval process of agreement.

    (a) The information specified in 1819.7211(b) is reviewed by NASA 
OSDBU. The review by the NASA OSDBU will be completed no later than 30 
days after receipt by the OSDBU. NASA OSDBU will provide a copy of the 
submitted information to the cognizant NASA technical program manager 
and contracting officer for a parallel review and concurrence.
    (b) If OSDBU approves the application, then the mentor
    (1) Negotiates agreement with the protege; and
    (2) Submits an original and two (2) copies of the agreement to NASA 
OSDBU for approval by the NASA Mentor-Protege program manager, the NASA 
technical program manager and the contracting officer.
    (c) Upon agreement approval, the mentor may implement developmental 
assistance program.
    (d) An approved agreement will be incorporated into the mentor's 
contract with NASA. It should be added to the subcontracting plan in 
contracts which contain such a plan.
    (e) If OSDBU disapproves the application, then the mentor may 
provide additional information for reconsideration. The review of any 
supplemental material will be completed within 30 days after receipt by 
the OSDBU. Upon finding deficiencies that NASA considers correctable, 
the OSDBU will notify the mentor and request information to be provided 
within 30 days that may correct the deficiencies.

[[Page 247]]



Sec. 1819.7213  Agreement contents.

    The contents of the agreement must contain:
    (a) Names and addresses of mentor and protege firms and a point of 
contact within both firms who will oversee the agreement;
    (b) Procedures for the mentor firm to notify the protege firm, OSDBU 
and the contracting officer, in writing, at least 30 days in advance of 
the mentor firm's intent to voluntarily withdraw from the program;
    (c) Procedures for a protege firm to notify the mentor firm in 
writing at least 30 days in advance of the protege firm's intent to 
voluntarily terminate the mentor-protege agreement. The mentor shall 
notify the OSDBU and the contracting officer immediately upon receipt of 
such notice from the protege;
    (d) A description of the type of developmental program that will be 
provided by the mentor firm to the protege firm, to include a 
description of the subcontract work, and a schedule for providing 
assistance and criteria for evaluation of the protege's developmental 
success;
    (e) A listing of the number and types of subcontracts to be awarded 
to the protege firm;
    (f) Program participation term;
    (g) Termination procedures;
    (h) Plan for accomplishing work should the agreement be terminated; 
and
    (i) Other terms and conditions, as appropriate.



Sec. 1819.7214  Developmental assistance.

    The forms of developmental assistance a mentor can provide to a 
protege include:
    (a) Management guidance relating to--
    (1) Financial management,
    (2) Organizational management,
    (3) Overall business management/planning and
    (4) Business development;
    (b) Engineering and other technical assistance;
    (c) Noncompetitive award of subcontracts under NASA contracts;
    (d) Progress payments based on costs. The customary progress payment 
rate for all NASA contracts with small disadvantaged businesses is 95 
percent. This customary progress payment rate for small disadvantaged 
businesses may be used by prime contractors;
    (e) Advance payments. While a mentor can make advance payments to 
its proteges who are performing as subcontractors, the mentor will only 
be reimbursed by NASA for these costs if advance payments have been 
authorized in accordance with statute and regulation;
    (f) Loans;
    (g) Rent-free use of facilities and/or equipment;
    (h) Property; and
    (i) Temporary assignment of personnel to protege for purpose of 
training



Sec. 1819.7215  Obligation.

    (a) Mentor or protege may voluntarily withdraw from the program as 
mutually agreed by both mentor and protege.
    (b) Mentor and protege firms will submit a ``lessons learned'' 
evaluation to the NASA OSDBU at the conclusion of the pilot program 
period or the conclusion of their effort, whichever comes first.



Sec. 1819.7216  Internal controls.

    (a) The NASA OSDBU will manage the program. Internal controls will 
be established by NASA OSDBU to achieve the stated program objectives 
(by serving as checks and balances against undesired actions or 
consequences) such as:
    (1) Reviewing and evaluating mentor applications for realism, 
validity and accuracy of provided information;
    (2) Reviewing semi-annual progress reports submitted by mentors and 
proteges, if any, on protege development to measure protege progress 
against the master plan contained in the approved agreement.
    (3) Site visits to NASA installation where Mentor-Protege activity 
is on-going.
    (b) NASA may terminate Mentor-Protege agreements if NASA determines 
that such actions are in NASA's interest. These actions shall be 
approved by the NASA OSDBU. NASA will terminate an agreement or exclude 
a particular entity by sending a written notice to the affected party 
specifying the action being taken and the

[[Page 248]]

effective date of that action. Termination of an agreement does not 
constitute a termination of the subcontract between the Mentor and the 
Protege. A plan for accomplishing the subcontract effort should the 
agreement be terminated shall be submitted with the agreement, as 
required in 1819.7213(h).



Sec. 1819.7217  Reports.

    (a) Semi-annual reports shall be submitted by the mentor to the NASA 
mentor-protege program manager, NASA Headquarters OSDBU, to include 
information as outlined in 1819.7206(b).
    (b) Proteges are encouraged to submit semi-annual reports, to the 
NASA mentor-protege program manager, on program progress as pertains to 
their mentor-protege agreement. However, costs associated with the 
preparation of these reports will not be reimbursed by the Government.
    (c) The NASA technical program manager shall include an assessment 
of the Prime Contractor's (Mentor's) performance in the Mentor-Protege 
program in his quarterly `Strengths and Weaknesses' evaluation report. A 
copy of these comments, as pertains to the technical effort and protege 
development, will be provided to NASA Headquarters OSDBU and the 
Contracting Officer.
    (d) The NASA mentor-protege program manager will submit semi-annual 
reports to the cognizant contracting officer regarding participating 
prime contractor's performance in the program for use in the award fee 
determination process.



Sec. 1819.7218  Program review.

    At the conclusion of each year in the mentor-protege program, the 
prime contractor and protege, as appropriate, will formally brief the 
NASA mentor-protege program manager, the technical program manager and 
the contracting officer regarding program accomplishments as pertains to 
the approved agreement. This review will be incorporated into the normal 
program review, where applicable. A separate review will be scheduled 
for other contracts to be held at the NASA work site location.



Sec. 1819.7219  Solicitation provision and contract clauses.

    (a) The contracting officer shall insert the clause at 1852.219-77, 
NASA Mentor-Protege Program, in all solicitations and contracts with 
subcontracting plans or in the case of small business set-asides 
exceeding $500,000 ($1,000,000 for construction) that offer 
subcontracting opportunities.
    (b) The contracting officer shall insert the provision at 1852.219-
78, Evaluation of Prime Contractor Participation in the Mentor-Protege 
Program, in all solicitations containing the provisions at 1852.219-77, 
NASA Mentor-Protege Program and FAR 52.219-9, Small Business and Small 
Disadvantaged Business Subcontracting Plan.
    (c) The contracting officer shall insert the clause at 1852.219-79, 
Mentor Responsibility and Evaluation, in contracts where the prime 
contractor is a participant in the NASA Mentor-Protege Program.



PART 1822--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS--Table of Contents




                  Subpart 1822.1--Basic Labor Policies

Sec.
1822.101  Labor relations.
1822.101-1  General.
1822.101-3  Reporting labor disputes.
1822.101-4  Removal of items from contractors' facilities affected by 
          work stoppages.
1822.101-70  Inspection of material during labor disputes.
1822.101-71  Admission of labor representatives to contract sites.
1822.101-72  Workers Adjustment and Retaining Notification (WARN) Act.
1822.102  Federal and State labor requirements.
1822.102-70  Suspension or relaxation of State labor standards.
1822.103  Overtime.
1822.103-4  Approvals.

      Subpart 1822.3--Contract Work Hours and Safety Standards Act

1822.302  Liquidated damages and overtime pay.

[[Page 249]]

  Subpart 1822.4--Labor Standards for Contracts Involving Construction

1822.403-4  Department of Labor regulations.
1822.404-3  Procedures for requesting wage determinations.
1822.406-2  Wages, fringe benefits, and overtime.
1822.406-8  Investigations.
1822.406-9  Withholding from or suspension of contract payments.
1822.406-11  Contract terminations.
1822.406-13  Semiannual enforcement reports.

            Subpart 1822.6--Walsh-Healey Public Contracts Act

1822.604  Exemptions.
1822.604-2  Regulatory exemptions.
1822.608-4  Award pending final determination.

              Subpart 1822.8--Equal Employment Opportunity

1822.804-2  Construction.
1822.807  Exemptions.
1822.870  Reports and other required information.

              Subpart 1822.10--Service Contract Act of 1965

1822.1001  Definitions.
1822.1003  Applicability.
1822.1007  Requirement to submit notice.
1822.1008  Procedures for preparing and submitting notice (SF 98/98a).

           Subpart 1822.11--Professional Employee Compensation

1822.1103  Policy, procedures, and solicitation provisions.

       Subpart 1822.13--Special Disabled and Vietnam Era Veterans

1822.1306  Complaint procedures.

          Subpart 1822.70--Nondiscrimination--Government Lease

1822.7001  Policy.
1822.7002  NASA contract clauses.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28263, July 5, 1989, unless otherwise noted.



                  Subpart 1822.1--Basic Labor Policies

1822.101  Labor relations.



Sec. 1822.101-1  General.

    (a) NASA contracting officers, in taking any of the actions 
prescribed or authorized in FAR part 22 or this part 1822, shall consult 
with and get advice from the labor relations advisor or other NASA 
official assigned the labor relations function at the installation 
concerned.
    (b) NASA officials shall not take any action regarding labor matters 
involving major policy determinations having a substantial impact on the 
activities of NASA or other Government agencies without the prior 
approval of the Director, Industrial Relations Office (Code JL). A full 
report concerning any labor relations problem, particularly where a 
labor dispute significantly threatens to affect important NASA 
procurements, shall be furnished to Code JL in accordance with 1822.101-
3.
    (c) When a strike that may have an adverse effect on NASA programs 
is imminent or in progress at a prime contractor's or subcontractor's 
plant, contracting officers shall--
    (1) Advise both the prime contractor and the head of the union local 
in writing of the expected impact of the strike on NASA programs and, if 
appropriate, of the actions NASA is considering to protect the 
Government's interest and prevent delay in the accomplishment of NASA's 
mission. If the strike is in a subcontractor's plant, the subcontractor 
may be approached only through the prime contractor;
    (2) Explore the possibility of locating other sources for the 
supplies or services to have been provided by the strike-threatened 
plant; and
    (3) Consider taking the actions set forth at FAR 22.101-4.

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.101-3  Reporting labor disputes.

    Reports of actual or incipient labor-management disputes affecting 
NASA procurements, operations, or services shall be submitted as 
specified by the Director, Industrial Relations Office.

[[Page 250]]

These reports shall be made as early as possible and shall include 
immediately available information. Supplemental reports shall be made, 
as appropriate, to provide full information and cover new developments. 
Reports shall be sent by the most expeditious means required by the 
seriousness of the situation. When an immediate critical effect on NASA 
procurements is probable, the initial report shall be made by telephone 
and followed by an electronically transmitted written message or a 
confirming letter. Reports shall describe, but need not be limited to--
    (a) The nature of the actual or incipient dispute, including whether 
a strike, lockout, slow-down, shut-down, or picketing is involved and 
the degree of emergency presented;
    (b) The character, quantity, and importance of the supplies, 
operations, or services involved, including scheduled performance and 
delivery dates and the relation of the production involved to the total 
procurement program;
    (c) The identity and location of the parties to the dispute and 
their representatives, including the approximate number of employees 
involved;
    (d) The need for and availability of alternative facilities to 
furnish the items involved within the time required;
    (e) Any critical items that should be removed from the plant or work 
site or should continue to be processed there with the consent of the 
parties to the dispute; and
    (f) Recommended action to be taken by NASA.



Sec. 1822.101-4  Removal of items from contractors' facilities affected by work stoppages.

    When the contracting officer determines that it would be in the 
Government's best interest to remove items or to arrange for shipment of 
urgently required items as provided in FAR 22.101-4(a)(2), the 
contracting officer shall first request approval from Code JL and then 
take such action as is approved.

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.101-70  Inspection of material during labor disputes.

    Despite the existence of a labor dispute, inspection functions at 
contract plants or sites shall be performed as normally required during 
contract performance, unless the inspector's safety may be endangered.



Sec. 1822.101-71  Admission of labor representatives to contract sites.

    NASA activities may not prevent the access of labor union 
representatives to contract sites for the conduct of union business if 
their activities are compatible with safety and security regulations and 
performance of the contract work involved.



Sec. 1822.101-72  Workers Adjustment and Retraining Notification (WARN) Act.

    (a) The WARN Act (Pub. L. 100-379) provides that employers of 100 or 
more full-time employees or 100 or more employees who work 4,000 hours 
in a work week shall give 60 days notice to affected employees prior to 
a plant closing or mass layoff as defined in the Act. When the required 
notice is not given, certain wage and benefit protections accrue to 
affected employees and financial penalties may be assessed against the 
employer.
    (b) The Act may apply to certain NASA contracts (e.g., on-site 
support service contracts) if the incumbent fails to win on 
recompetition for the succeeding period or if the contract requirement 
is discontinued. Some of the costs for noncompliance with the Act could 
be subject to reimbursement by the Government. Accordingly, the 
contracting officer shall give a letter notification to on-site support 
service contractors alerting them to the possible applicability of the 
WARN Act.
    (c) Implementation of the Act requires no action by the Government. 
NASA employees are not to offer advice to contractor employees or to the 
management of affected contractors concerning implementation of the Act. 
Government employees and officials are not covered by the Act.

[54 FR 39371, Sept. 26, 1989]

[[Page 251]]

1822.102  Federal and State labor requirements.



Sec. 1822.102-70  Suspension or relaxation of State labor standards.

    (a) NASA officials shall not initiate applications to State agencies 
or officials for the suspension or relaxation of State labor standards.
    (b) When suspension or relaxation of State labor standards does not 
conflict with Federal labor laws, contracting officers may support 
applications of contractors or subcontractors if--
    (1) The required products or services are in short supply and 
failure to meet production schedules for critically needed end items 
will result unless the standards are suspended or relaxed;
    (2) No alternative sources of supply for such products or services 
are available within the required delivery schedule;
    (3) Remedial action (such as recruitment, training, and more 
effective utilization of labor) is not practicable; and
    (4) The granting of the application will not result in impairment of 
working conditions to the extent that productivity at the facility will 
be adversely affected.
    (c) NASA letters of support will be addressed to the appropriate 
State agency and will indicate--
    (1) The facilities and services affected; and
    (2) The extent of suspension or relaxation of the particular State 
labor standard required to complete the specific work in conformity with 
the delivery schedule.
1822.103  Overtime.



Sec. 1822.103-4  Approvals.

    The contracting officer is authorized to approve overtime premiums 
at Government expense. If two or more contracting offices have current 
contracts at a single facility and approval of overtime by one will 
affect the performance or cost of contracts of another, the approving 
contracting officer shall obtain the concurrence of affected contracting 
officers. If the approving contracting officer cannot obtain agreement 
within a reasonable time, a decision shall be obtained through the 
installation's normal management channels. In the absence of evidence to 
the contrary, a contracting officer may rely on the contractor's 
statement that approval will not affect performance or payments under 
any contract of another contracting office.

[61 FR 52121, Oct. 5, 1995]



      Subpart 1822.3--Contract Work Hours and Safety Standards Act



Sec. 1822.302  Liquidated damages and overtime pay.

    Disposal of funds withheld or collected for liquidated damages shall 
be in accordance with direction of the Director, Industrial Relations 
Office (Code NR), who is the agency head's designee relative to 
liquidated damages under the Contract Work Hours and Safety Standards 
Act.



  Subpart 1822.4--Labor Standards for Contracts Involving Construction



Sec. 1822.403-4  Department of Labor regulations.

    For industrial relations actions requiring communication with the 
Department of Labor, National Headquarters, Washington, DC (including 
the Administrator, Wage and Hour Division), contracting officers shall 
provide the appropriate information and supporting documentation to the 
Industrial Relations Office (Code JL), which shall make all contacts 
with the Department of Labor on these matters.

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.404-3  Procedures for requesting wage determinations.

    Contracting officers shall submit requests for project wage 
determinations to Code JL at least 55 days (70 days if possible) before 
issuing the solicitation.

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]

[[Page 252]]



Sec. 1822.406-2  Wages, fringe benefits, and overtime.

    In implementing FAR 22.406-2(b)(2), the contracting officer shall 
provide information to the Director, Industrial Relations Office (Code 
JL), who shall submit the question of cash equivalents to the Department 
of Labor for final determination.

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.406-8  Investigations.

    The contracting officer is responsible for conducting 
investigations, as provided by FAR 22.406-8(a), of labor violations 
relative to contracts under his/her cognizance. The agency head's 
designee for receiving and processing contracting officer reports of 
violations is the Director, Industrial Relations Office (Code JL), who, 
with the concurrence of the Associate General Counsel for Contracts, 
shall forward reports of violations to the Attorney General in 
accordance with FAR 22.406-8(d)(2)(iv).

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.406-9  Withholding from or suspension of contract payments.

    Disposal of funds withheld or collected for liquidated damages under 
the Davis-Bacon Act shall be in accordance with direction of the 
Director, Industrial Relations Office (Code JL).

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.406-11  Contract terminations.

    Contracting officers shall forward reports of contract or 
subcontract terminations for violation of labor standards clauses to the 
Director, Industrial Relations Office (Code JL), who shall submit the 
reports in accordance with FAR 22.406-11.

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.406-13  Semiannual enforcement reports.

    Procurement Officers shall submit semiannual enforcement data within 
20 days after the end of the reporting period specified in FAR 22.406-13 
to the Office of Procurement (Attn: Code HK) for consolidation and 
submission to the Department of Labor. Negative statements are required. 
The Contract Management Division (Code HK) is the point of contact 
regarding data to be included in the submissions.

[54 FR 28263, July 5, 1989, as amended at 59 FR 66269, Dec. 23, 1994; 60 
FR 40514, Aug. 9, 1995]



            Subpart 1822.6--Walsh-Healy Public Contracts Act

1822.604  Exemptions.



Sec. 1822.604-2  Regulatory exemptions.

    Applications for exemptions from one or more of the Act's 
stipulations under FAR 22.604-2(c)(1) shall be submitted in writing 
through the contracting officer, with pertinent data and recommendations 
to the Director, Industrial Relations Office (Code JL).

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.608-4  Award pending final determination.

    The Procurement Officer shall approve, with the concurrence of the 
Director, Industrial Relations Office (Code NR), certifications for 
immediate award in accordance with FAR 22.608-4(b). The contracting 
officer shall give written notice of the decision to award through Code 
JL to the DOL.

[54 FR 28263, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



              Subpart 1822.8--Equal Employment Opportunity

    Source: 55 FR 12175, Apr. 2, 1990, unless otherwise noted.



Sec. 1822.804-2  Construction.

     Each procurement office will maintain and furnish to contracting 
officers the listing required by FAR 22.804-2(b). The Associate 
Administrator for Procurement (Code HK) will furnish the listing to be 
maintained. The current listing is 45 FR 65979 ``Goals for Minority 
Participation in the Construction Industry'' (October 3, 1980).

[55 FR 12175, Apr. 2, 1990, as amended at 60 FR 40514, Aug. 9, 1995]

[[Page 253]]



Sec. 1822.807  Exemptions.

    Requests for exemption pursuant to FAR 22.807(a)(1) shall be 
forwarded to the Administrator through the Headquarters Contract 
Management Division (Code HK), which shall obtain concurrence from 
appropriate Officials-in-Charge. Requests shall be accompanied by 
detailed written justification and the proposed exemption request for 
signature.

[55 FR 12175, Apr. 2, 1990, as amended at 59 FR 66269, Dec. 23, 1994; 60 
FR 40514, Aug. 9, 1995]



Sec. 1822.870  Reports and other required information.

    (a) If an offeror completes a negative representation pursuant to 
FAR 52.222-22, the contracting officer shall obtain the contractor's 
initial report within 30 days of contract award and retain it in the 
contract file. Such a report by the prime or subcontractor is required 
by 41 CFR 60-1.7 and paragraph (b)(7) of the clause, Equal Opportunity, 
at (FAR) 48 CFR 52.222-26.
    (b) If requested by a contractor or subcontractor, any reports filed 
with the contracting officer shall be held in confidence as privileged 
information in accordance with 32 CFR 286.6(b)(4). All reports required 
by 1822.870(a) may be used only for the administration of Executive 
Order 11246, the Civil Rights Act of 1964, or in furtherance of the Act 
or Executive Order.

[55 FR 12175, Apr. 2, 1990, as amended at 59 FR 29962, June 10, 1994]



              Subpart 1822.10--Service Contract Act of 1965

    Source: 54 FR 39371, Sept. 26, 1989, unless otherwise noted.



Sec. 1822.1001  Definitions.

    Agency labor advisor means the Director, Industrial Relations 
Office, NASA Headquarters (Code JL).

[54 FR 39371, Sept. 26, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.1003  Applicability.

    All requests for determinations and exemptions relating to the 
Service Contract Act shall be submitted in writing, coordinated by 
appropriate procurement personnel, and forwarded to Code JL.

[54 FR 39371, Sept. 26, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.1007  Requirement to submit notice.

    (a) Contracting officers shall ensure that completed Standard Forms 
98/98a, Notice of Intention to Make a Service Contract and Response to 
Notice (original and 4 copies), reaches Code JL at least 70 days before 
issuing any solicitation, opening negotiations for contract extension, 
or exercising a contract option.
    (b) Requests to expedite wage determinations shall be sent to Code 
JL.

[54 FR 39371, Sept. 26, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1822.1008  Procedures for preparing and submitting notice (SF 98/98a).

    The information listed below by item number shall be furnished, in 
addition to that required by the SF 98/98a:
    (a) Item 6. Insert on the far left side of the block the code 
identifying the type of proposed action:

                        Code and Proposed Action

I  New contract (use only when services are not presently being 
performed).
II  Recompetition of services.
III  Contract modifications affecting the scope of the work (see FAR 
22.1008).
IV  Extension of contract performance through exercise of an option or 
otherwise (see FAR 22.1008).
V  Other. When a multiyear contract (funding is not subject to annual 
appropriation) is to be entered into, specify ``multiyear R&D funded'' 
on the SF 98.

    (b) Item 8. (1) If the proposed contract will be awarded under 
section 8(a) of the Small Business Act, insert both the Small Business 
Administration and the name of the subcontractor.
    (2) If no wage determination is available for the particular 
contract, insert ``None'' in Item 8.b.
    (c) Item 10. Add the solicitation number, if known.
    (d) Item 12. (1) When entering into a new service contract, list all 
classes of work expected to be performed under the contract under this 
item, regardless of whether the class of employees is considered 
professional, executive,

[[Page 254]]

administrative, or hourly. However, if submission of the SF 98/98a is in 
connection with any action other than a new contract (Code I in 
paragraph (a) of this section), list only the classes of work that the 
incumbent indicates are ``nonexempt.''
    (2) When classifications include both categories of employees 
covered by a collective bargaining agreement and those not represented 
by a union, mark the classifications that are unionized with an 
asterisk.
    (3) If the classification of work is not known, use the most 
descriptive job title available for the work to be performed under the 
contract.
    (e) Item 13. If the number of employees is not known, the estimated 
hours required to perform the tasks should be indicated so that staffing 
estimates can be determined and listed.
    (f) Item 14. Include in this item the wage rates that would be paid 
if the employees were subject to 5 U.S.C. 5332 (GS grades).



           Subpart 1822.11--Professional Employee Compensation



Sec. 1822.1103  Policy, procedures, and solicitation provisions.

    (a) The instructions in paragraph (a) of the provision at FAR 
52.222-46, Evaluation of Compensation for Professional Employees, shall 
be augmented in Section M of the solicitation with an explanation of how 
the Government will evaluate the offeror's plan. The Government's 
assessment of the plan shall be a weighted and scored evaluation 
criterion under a Mission Suitability Factor in order to ensure that the 
plan reflects a sound management approach and understanding of the 
contract requirements. This criterion shall be accorded sufficient 
weight and relative order of importance to be effective under the 
particular circumstances involved. When (1) a significant number of 
professional employees are involved, the performance period is long, and 
the cost is relatively large, or (2) there is continuity of the same or 
similar services at the same location, the weight and relative 
importance of the criterion shall be in the ``most important'' or ``very 
important'' category, as considered appropriate. The lesser weighting 
should be employed only after careful consideration of the possible 
impact on labor stability.
    (b) The cost realism of professional compensation proposed (see 
paragraph (c) of the provision at FAR 52.222-46) shall be identified as 
an evaluation factor in Section M of the solicitation.



       Subpart 1822.13--Special Disabled and Vietnam Era Veterans



Sec. 1822.1306  Complaint procedures.

    The Associate Administrator for Equal Opportunity Programs (Code E) 
is the NASA official designated to act on complaints received about 
administration of the Vietnam Era Veterans Readjustment Assistance Act 
of 1972.

[54 FR 28263, July 5, 1989, as amended at 55 FR 27089, June 29, 1990]



          Subpart 1822.70--Nondiscrimination--Government Lease



Sec. 1822.7001  Policy.

    It is NASA policy to include a Facilities Nondiscrimination clause 
in leases when NASA is the lessee. The policy has been adopted because 
Federal employees belonging to minority groups and other members of 
minority groups doing business with the Government in some parts of the 
country have been denied the use of public facilities located in 
buildings where the Government leases office space.



Sec. 1822.7002  NASA contract clauses.

    (a) The contracting officer shall include the clause at 1852.222-70, 
Facilities Nondiscrimination Notice, in all solicitations involving 
leases and in any resulting leases.
    (b) The contracting officer shall include the clause at 1852.222-71, 
Facilities Nondiscrimination, in all solicitations involving leases and 
in any resulting leases under which the annual rental, combined with 
that of any other NASA leases of space in the same building, exceeds 
$10,000.

[[Page 255]]



PART 1823--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE--Table of Contents




        Subpart 1823.1--Pollution Control and Clean Air and Water

Sec.
1823.106  Delaying award.
1823.107  Compliance responsibilities.

 Subpart 1823.3--Hazardous Material Identification and Material Safety 
                                  Data

1823.302  Policy.
1823.303  Contract clause.
1823.303-70  NASA clause.
1823.370  Acquisition of potentially hazardous items from or through 
          another Government agency.

                   Subpart 1823.5--Drug-Free Workplace

1823.570  Drug- and alcohol-free workforce.
1823.570-1  Scope.
1823.570-2  Definitions.
1823.570-3  Contract clause.
1823.570-4  Suspension of payments, termination of contract, and 
          debarment and suspension actions.

                   Subpart 1823.70--Safety and Health

1823.7000  Scope of subpart.
1823.7001  Policy.
1823.7002  Responsibility.
1823.7003  Hazardous operations.
1823.7004  Contract clause.

                Subpart 1823.71--Frequency Authorization

1823.7101  Contract clause.
1823.7102  Procedures.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28266, July 5, 1989, unless otherwise noted.



        Subpart 1823.1--Pollution Control and Clean Air and Water



Sec. 1823.106  Delaying award.

    All notifications initiated by the contracting officer under FAR 
23.106 shall be submitted to EPA through the Procurement Officer and the 
Associate Administrator for Procurement, NASA Headquarters (Code HS).



Sec. 1823.107  Compliance responsibilities.

    Notifications under FAR 23.107 shall be submitted through the same 
channels as under 1823.106.



 Subpart 1823.3--Hazardous Material Identification and Material Safety 
                                  Data



Sec. 1823.302  Policy.

    As authorized under FAR 23.302(c)(2), NASA has designated 
electrosensitive initiating devices (squibs) a ``potentially hazardous'' 
item requiring safety controls.

[54 FR 28266, July 5, 1989, as amended at 57 FR 836, Jan. 9, 1992]
1823.303  Contract clause.



Sec. 1823.303-70  NASA clause.

    The contracting officer shall insert the clause at 1852.223-72, 
Potentially Hazardous Items, in solicitations and contracts involving 
potentially hazardous items or components. Identify in the clause the 
potentially hazardous items or components.

[54 FR 28266, July 5, 1989, as amended at 57 FR 836, Jan. 9, 1992]



Sec. 1823.370  Acquisition of potentially hazardous items from or through another Government agency.

    When acquiring supplies or services from or through another 
Government agency (e.g., see FAR part 8 and FAR subpart 17.5), NASA 
shall request that agency to furnish NASA the data required by FAR 
subpart 23.3 and by the clause at FAR 52.223-3.

[54 FR 28266, July 5, 1989, as amended at 57 FR 836, Jan. 9, 1992]



                   Subpart 1823.5--Drug-Free Workplace

    Source: 61 FR 7225, Feb. 27, 1996, unless otherwise noted.
1823.570  Drug- and alcohol-free workforce.



Sec. 1823.570-1  Scope.

    Sections 1823.570 to 1823.570-4 set forth NASA requirements for 
mandatory drug and alcohol testing of certain contractor personnel under 
section 203, National Aeronautics and Space Act of 1958, as amended, 42 
U.S.C. 2473, 72 Stat. 429; and Civil Space Employee Testing Act of 1991, 
Public Law 102-195, sec. 21, 105 Stat. 1616 to 1619.

[[Page 256]]



Sec. 1823.570-2  Definitions.

    As used in this subpart employee and controlled substance are as 
defined in FAR 23.503. The use of a controlled substance in accordance 
with the terms of a valid prescription, or other uses authorized by law 
shall not be subject to the requirements of 1823.570 to 1823.570-4 and 
the clause at 1852.223-74.
    Employee in a sensitive position means a contractor or subcontractor 
employee who has been granted access to classified information; a 
contractor or subcontractor employee in other positions that the 
contractor or subcontractor determines could reasonably be expected to 
affect safety, security, National security, or functions other than the 
foregoing requiring a high degree of trust and confidence; and includes 
any employee performing in a position designated ``mission critical'' 
pursuant to the clause at 1852.246-70. The term also includes any 
applicant who is interviewed for a position described in this paragraph.
    Use, in violation of applicable law or Federal regulation, of 
alcohol includes having, while on duty or during a preemployment 
interview, an alcohol concentration of 0.04 percent by weight or more in 
the blood, as measured by chemical test of the individual's breath or 
blood. An individual's refusal to submit to such test is presumptive 
evidence of use, in violation of applicable law or Federal regulation, 
of alcohol.



Sec. 1823.570-3  Contract Clause.

    The contracting officer shall insert the clause at 1852.223-74, 
``Drug- and Alcohol-Free Workforce,'' in all solicitations and contracts 
containing the clause at 1852.246-70, ``Mission Critical Space Systems 
Personnel Reliability Program,'' and in other solicitations and 
contracts exceeding $5 million in which work is performed by an employee 
in a sensitive position. However, the contracting officer shall not 
insert the clause at 1852.223-74 in solicitations and contracts for 
commercial items (see FAR parts 2 and 12).



Sec. 1823.570-4  Suspension of payments, termination of contract, and debarment and suspension actions.

    The contracting officer shall comply with the procedures of FAR 
23.506 regarding the suspension of contract payments, the termination of 
the contract for default, and debarment and suspension of a contractor 
relative to failure to comply with the clause at 1852.223-74. Causes for 
suspension of contract payments, termination of the contract for 
default, and debarment and suspension of the contractor are the 
following:
    (a) The contractor fails to comply with paragraph (b), (c), or (d) 
of the clause at 1852.223-74; or
    (b) Such a number of contractor employees in sensitive positions 
having been convicted of violations of criminal drug statutes or 
substantial evidence of drug or alcohol abuse or misuse occurring in the 
workplace, as to indicate that the contractor has failed to make a good 
faith effort to provide a drug- and alcohol-free workforce.



                   Subpart 1823.70--Safety and Health



Sec. 1823.7000  Scope of subpart.

    This subpart sets forth NASA's safety and health policy, assignment 
of responsibilities, and requirements relating to its contractors.



Sec. 1823.7001  Policy.

    Contractors and subcontractors shall perform in a safety-and-health-
conscious environment that, within the limits of controllable hazards, 
will--
    (a) Protect the life, health, and physical well-being of NASA and 
contractor employees during their work on NASA programs;
    (b) Ensure proper protection of the public from hazards incident to 
operations of NASA contractors and subcontractors;
    (c) Avoid accidental work interruptions that could delay NASA 
programs;
    (d) Prevent contamination of, damage to, and loss of property, 
supplies, and equipment;
    (e) Provide data from which risks and loss factors in space 
technology related to NASA programs can be accumulated and evaluated; 
and
    (f) Comply with applicable regulations, standards, and guides.

[[Page 257]]



Sec. 1823.7002  Responsibility.

    (a) Originators of procurement requests. In accordance with 
installation safety and health screening criteria, originators of 
procurement requests shall ensure that requests involving safety or 
health considerations are processed through the appropriate installation 
safety officials and occupational health officials or other designated 
responsible officials for:
    (1) Determining whether hazards are involved in the procurement,
    (2) Formulating or selecting specific safety and health provisions 
applicable to the procurement in accordance with FAR subpart 23.3 and 
applicable NASA instructions, and
    (3) Determining to what extent a contractor safety and health plan 
will be required.
    (b) Installation safety officials, occupational health officials, or 
other designated responsible officials. The appropriate installation 
safety and health officials, within their respective areas of 
responsibility, shall advise and assist the contracting officer in--
    (1) Evaluating prospective contractors' safety and health programs;
    (2) Determining to what extent safety and health provisions, if any, 
should be included in the proposed procurement;
    (3) Assigning the specific safety and environmental health 
provisions to be included in the contract Schedule;
    (4) Determining, in coordination with the cognizant program or 
project manager, the need for and adequacy of contractors' safety and 
health plans;
    (5) Assigning the specific occupational medicine provisions to be 
included in the contract Schedule;
    (6) Determining the extent and form of accident or incident reports 
required of contractors in compliance with the Federal Reports Act of 
1942 and NASA reporting requirements;
    (7) Requesting inspections of NASA contractors by representatives of 
the Occupational Safety and Health Administration (OSHA) when 
appropriate; and
    (8) Reviewing contractor hazardous operations procedures and 
certification requirements.
    (c) Headquarters occupational health official. At installations 
where medical and environmental health officers or other designated 
responsible officials are not available to assist with the formulation 
of occupational medicine and environmental health provisions of a 
contract, the Director, Occupational Health and Medicine Division, NASA 
Headquarters (Code UO), shall assume this responsibility.
    (d) Contracting officer. (1) The contracting officer shall obtain 
advice, assistance, recommendations, and applicable requirements from 
the appropriate safety and health officials before issuing any 
solicitation for--
    (i) Construction, modification, or demolition of facilities on 
Government installations;
    (ii) Manufacture of aerospace systems, including such items as power 
units, energy systems, boosters, engines, liquid and solid fuels, 
oxidizers, and propellants;
    (iii) Transportation of fuels, oxidizers, hazardous chemicals, or 
other hazardous or regulated materials;
    (iv) Research, development, or test of engines, related components 
and propellants involving hazardous operations or the use of hazardous 
or regulated materials;
    (v) Services on Government installations involving hazardous 
operations or the use of hazardous or regulated materials;
    (vi) Operations involving the use of or exposure to potential health 
hazards (e.g., asbestos, polychlorinated biphenyls (PCB's)), confined 
space entries, use of hazardous materials, or potential contamination of 
property or pollution of air, water, vegetation, or soil;
    (vii) Activities that may (by either direct or secondary effect) 
adversely affect the work environment by the use of ionizing radiation, 
microwaves, noise, lasers, ultraviolet, or infrared sources; or
    (viii) Operations necessitating exposures in neutral buoyancy or 
hyperbaric chambers and operations related to them.
    (2) Before issuing a stop-work order under paragraph (d)(2) of the 
Safety and Health clause at 1852.223-70, the contracting officer shall 
effect coordination with the appropriate safety and

[[Page 258]]

health officials and with the cognizant program or project manager.

[54 FR 28266, July 5, 1989, as amended at 57 FR 836, Jan. 9, 1992; 59 FR 
29962, June 10, 1994]



Sec. 1823.7003  Hazardous operations.

    Hazardous operations are those involving the use of, or handling of, 
hazardous materials or other materials, phenomena, or elements at 
abnormal environmental or physical parameters that could result in 
injury, illness, or property damage if special precautions are not 
followed (e.g., high-pressure gas operations in excess of 150 pounds per 
square inch gauge, low-pressure high-volume gas operations, voltages 
above 550 volts, storage or handling of propellants or explosives, use 
of ``heavy lift'' material handling equipment, high- or low-temperature 
environments, environments with less than 19.5 percent or more than 25 
percent oxygen by volume at normal atmospheric pressure, reduced 
gravity, radiation, or excessive noise).



Sec. 1823.7004  Contract clause.

    (a) Specific system safety requirements to be included in the 
contract for the purpose of procuring system safety engineering services 
shall be defined in the contract Schedule in accordance with applicable 
NASA instructions.
    (b) Any unique facility safety or health requirements that are in 
addition to the general requirements of the clause at 1852.223-70, 
Safety and Health, shall be prescribed as required by 1823.7002(b)(3).
    (c) Except as provided in paragraph (d) of this section, the clause 
at 1852.223-70 shall be included in--
    (1) All negotiated contracts of $1,000,000 or more, unless the 
contracting officer makes a written determination in accordance with 
1823.7002(b)(2) that, under the circumstances of the procurement, the 
clause is not necessary;
    (2) All construction, repair, or alteration contracts in excess of 
the simplified acquisition threshold;
    (3) All contracts having, within their total requirement, 
construction, repair, or alteration tasks in excess of the simplified 
acquisition threshold; and
    (4) Any procurement regardless of dollar amount when--
    (i) Any deliverable contract end item is of a hazardous nature, or
    (ii) During the life of the contract it can reasonably be expected 
that hazards will be generated within the operational environment and 
the contracting officer or safety and health representative determines 
that they warrant inclusion of the clause.
    (d) The clause prescribed in paragraph (c) of this section may be 
excluded from any contract subject to the Walsh-Healey Public Contracts 
Act (see FAR subpart 22.6) or the Service Contract Act of 1965 (see FAR 
subpart 22.10) in which the application of the act and its implementing 
regulations constitute adequate safety and health protection. However, 
the clause should not be excluded without approval of the appropriate 
safety and health official.
    (e) The contracting officer shall insert the provision at 1852.223-
73, Safety and Health Plan, in solicitations containing the clause at 
1852.223-70, when a Safety and Health Plan is to be submitted with the 
offeror's proposal. This clause may be modified to identify specific 
information that is to be included in the plan. The contracting officer 
shall include the plan, as approved by the contracting officer, in any 
resulting contract. See 1852.223-70.
    (f) When the installation safety/health officials recommend that a 
Safety and Health Plan be submitted by the apparently successful offeror 
after notification of selection but before contract award, the provision 
at 1852.223-73 shall be used with its Alternate I.

[54 FR 28266, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992; 61 
FR 5314, Feb. 12, 1996]



                Subpart 1823.71--Frequency Authorization



Sec. 1823.7101  Contract clause.

    The contracting officer shall insert the clause at 1852.223-71, 
Frequency Authorization, in solicitations and contracts calling for 
developing, producing, constructing, testing, or operating a device for 
which a radio frequency authorization is required.

[[Page 259]]



Sec. 1823.7102  Procedures.

    The contracting officer shall obtain the necessary frequency 
authorization and other procedural details from the installation's 
spectrum manager.



PART 1824--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION--Table of Contents




            Subpart 1824.1--Protection of Individual Privacy

1824.102  General.
1824.103  Procedures.

               Subpart 1824.2--Freedom of Information Act

1824.202  Policy.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28268, July 5, 1989, unless otherwise noted.



            Subpart 1824.1--Protection of Individual Privacy



Sec. 1824.102  General.

    For NASA rules and regulations implementing the Privacy Act, see NMI 
1382.17, Privacy Act--NASA Regulations (14 CFR part 1212).

[59 FR 12197, Mar. 16, 1994]



Sec. 1824.103  Procedures.

    The Act applies to any contractor maintaining a system of records to 
accomplish a NASA mission. The following examples of systems of records 
are provided to assist contracting officers in determining whether or 
not the Privacy Act applies to records maintained by contractors. This 
list is not all inclusive.
    (a) Systems of records to which the Privacy Act applies include--
    (1) Records maintained by a contractor in the performance of 
administrative functions for a Federal agency, such as Federal personnel 
and payroll records; and
    (2) Records maintained by a contractor providing health services to 
agency personnel, such as health records of Federal employees.
    (b) Systems of records to which the Privacy Act does not apply 
include--
    (1) Records maintained by a contractor on individuals employed by 
the contractor on its own behalf for the purpose of providing supplies 
and services to the Federal Government; and
    (2) Records that--(i) Are maintained under contracts with 
educational institutions to provide training;
    (ii) Are generated on students working under the contract relative 
to their attendance (admission forms, grade reports, etc.);
    (iii) Are similar to those maintained on other students; and
    (iv) Are commingled with their records on other students.

[54 FR 39372, Sept. 26, 1989]



               Subpart 1824.2--Freedom of Information Act



Sec. 1824.202  Policy.

    (a) NASA implementation of the Freedom of Information Act is found 
in NMI 1382.2, Availability of Agency Records to Members of the Public 
(14 CFR part 1206).
    (b) When receiving any Freedom of Information Act request from the 
public, the contracting officer shall immediately refer the request to 
the Freedom of Information Act Officer, NASA Information Center, or 
other responsible point of contact as set forth in installation 
procedures.

[54 FR 28268, July 5, 1989, as amended at 59 FR 12197, Mar. 16, 1994]



PART 1825--FOREIGN ACQUISITION--Table of Contents




               Subpart 1825.1--Buy American Act--Supplies

Sec.
1825.101  Definitions.
1825.102  Policy.
1825.103  Agreements with certain foreign governments.
1825.105  Evaluating offers.
1825.108  Excepted articles, materials, and supplies.

        Subpart 1825.2--Buy American Act--Construction Materials

1825.202  Policy.
1825.203  Evaluating offers.
1825.205  Solicitation provision and contract clause.

[[Page 260]]

1825.205-70  NASA contract clause.

               Subpart 1825.3--Balance of Payments Program

1825.304  Excess and near-excess foreign currencies.

    Subpart 1825.4--Purchases Under the Trade Agreements Act of 1979

1825.400  Scope of subpart.
1825.402  Policy.
1825.403  Exceptions.
1825.403-70  Coordination of arms purchases.
1825.405  Procedures.

                   Subpart 1825.6--Customs and Duties

1825.604  Exempted supplies.
1825.605  Contract clause.
1825.605-70  NASA contract clause.
1825.670  Legal representation.

        Subpart 1825.7--Restrictions on Certain Foreign Purchases

1825.703  Exceptions.

         Subpart 1825.9--Additional Foreign Acquisition Clauses

1825.901  Omission of Audit Clause.

                   Subpart 1825.70--Foreign Contracts

1825.7000  Scope of subpart.
1825.7001  Definition.
1825.7002  Policy.
1825.7003  Procedure.
1825.7004  Assignment of contract administration for contracts performed 
          in Canada.

                       Subpart 1825.71--[Reserved]

   Subpart 1825.72--Limitation on Strategic Defense Initiative (SDI) 
                               Contracting

1825.7200  Procedures.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28268, July 5, 1989, unless otherwise noted.



               Subpart 1825.1--Buy American Act--Supplies



Sec. 1825.101  Definitions.

    Canadian end product means (a) an unmanufactured end product mined 
or produced in Canada or (b) an end product manufactured in Canada, if 
the cost of its components mined, produced, or manufactured in Canada or 
the United States exceeds 50 percent of the cost of all its components. 
The cost of components includes transportation costs to the place of 
incorporation into the end product.



Sec. 1825.102  Policy.

    (a) Administrator determinations under FAR 25.102(a)(3), domestic 
preference inconsistent with the public interest. (1) Within NASA, these 
determinations are made by the Associate Administrator for Procurement.
    (2) For blanket determinations regarding Canadian end products, see 
1825.103.
    (b) Contracting officer determinations under FAR 25.102(a)(4) and 
25.102(b), domestic nonavailability of end products. (1) NASA has 
determined that the items listed in FAR 25.108(d)(1) are not mined, 
produced, or manufactured in the United States in sufficient and 
reasonably available commercial quantities or a satisfactory quality.
    (2)(i) NASA contracting officers may make any determinations of 
nonavailability both before entering into contracts and in the course of 
contract administration; provided, however, that in the latter case the 
Government receives adequate consideration. A copy of each 
nonavailability determination shall be included in the contract file.
    (ii) The following is the format for nonavailability determinations 
made by contracting officers:

                    Determination of Nonavailability

    Pursuant to the authority contained in the Buy American Act (41 
U.S.C. 10) and authority delegated to me by 48 CFR 1825.102(b), I hereby 
make the following findings:
    a. (Insert a description of the item or items to be procured, 
including unit, quantity, and estimated cost inclusive of duty and 
transportation costs to destination.)
    b. (Enter the name and address of the proposed contractor or 
supplier and the country of origin of the items.)
    c. (Include a brief statement of the necessity for the procurement.)
    d. (Include a statement of facts establishing the nonavailability of 
similar items of domestic origin. If there is no known domestic item 
that can be used as a reasonable substitute, make a statement to this 
effect.)
    On the basis of these findings, I determine that the item(s) 
described in paragraph a

[[Page 261]]

above is/are not mined, produced, or manufactured (or the articles, 
materials, or supplies from which the item(s) is/are manufactured are 
not mined, produced, or manufactured) in the United States in sufficient 
and reasonably available quantities of a satisfactory quality.
    Accordingly, the Buy American Act requirement that procurement be 
made from domestic sources and that the item(s) be of domestic origin is 
not applicable to this procurement, since the procurement is within the 
Buy American Act's nonavailability exception.
    Authority is granted to procure the above-described item(s) of 
foreign origin (country or origin) at an estimated total cost of 
$__________, including duty and transportation costs to destination.

    (Date)____________
    Contracting Officer____________

[54 FR 28268, July 5, 1989, as amended at 56 FR 48747, Sept. 26, 1991; 
56 FR 52213, Oct. 18, 1991]



Sec. 1825.103  Agreements with certain foreign governments.

    (a) Canadian end products and Canadian components. The Associate 
Administrator for Procurement has determined that when application of 
the procedure in paragraph (c)(1) of this section results in the 
acquisition of Canadian end products, it would be inconsistent with the 
public interest to acquire domestic end products (see FAR 25.102(a)(3)).
    (b) The Associate Administrator for Procurement has also determined 
that it would be inconsistent with the public interest to apply 
restrictions of the Buy American Act to components mined, produced, or 
manufactured in Canada (see paragraph (c)(2) of this section).
    (c) Accordingly, contracting officers shall--(1) Evaluate all offers 
for Canadian end products on a parity with offers for domestic end 
products, except that applicable duty (whether or not a duty-free entry 
certificate may be issued) shall be included in evaluating offers for 
Canadian end products; and
    (2) Treat all components mined, produced, or manufactured in Canada 
as though they were mined, produced, or manufactured in the United 
States, except that, in evaluating offers for such components, 
applicable duty (whether or not a duty-free entry certificate may be 
issued) shall be included.



Sec. 1825.105  Evaluating offers.

    (a) Examples. The following examples illustrate how to evaluate 
offers of foreign (non-Canadian) end items, using the provisions of FAR 
25.105.
    (1) Example 1: Price differential of 6 percent or less between low 
foreign (non-Canadian) and low domestic offer from a large business not 
in a labor surplus area. See Table 1825-1. Since the low domestic offer 
is not unreasonable (that is, the low domestic offer is less than the 
low foreign offer plus 6 percent), award shall be made to the low 
domestic offeror.
    (2) Example 2: Price differential of 6 percent between low foreign 
(non-Canadian) and low domestic offer from an offeror that is not a 
small business and/or labor surplus area concern. See Table 1825-2.
    (3) Example 3: Solicitation permits multiple awards, and FAR 
25.105(c) permits application of the evaluation procedure in 25.105(a) 
on a group or item-by-item basis. Each domestic offeror is a small 
business or labor surplus area concern, requiring that the lowest 
acceptable foreign offer be increased by 12 percent. When an award 
exceeding $250,000 would be made to a domestic concern if the 12-percent 
factor were applied, but not if the 6-percent factor were applied, FAR 
25.105(c) requires that the award be submitted to the agency head for 
decision as to whether award to the domestic concern would involve 
unreasonable cost. In NASA, the Administrator has delegated this 
authority to the Associate Administrator for Procurement. See table 
1825-3.
    (i) For items 1 and 3, award would be made to the low acceptable 
domestic offeror, but would not be submitted to the Associate 
Administrator for Procurement because--
    (A) The low acceptable domestic offeror is a small business and/or 
labor surplus area concern;
    (B) The differential does not exceed 12 percent on an item-by-item 
basis; and
    (C) The total low acceptable domestic offer does not exceed 
$250,000.
    (ii) For items 2 and 4, award would be made to the low acceptable 
foreign offeror, but would not be submitted to

[[Page 262]]

the Associate Administrator for Procurement because--
    (A) The low acceptable domestic offeror is a small business or labor 
surplus area concern;
    (B) The differential exceeds 12 percent on an item-by-item basis; 
and
    (C) The low acceptable domestic offer does not exceed $250,000.
    (4) Example 4: Solicitation permits multiple awards, and FAR 
25.105(b) permits application of the evaluation procedure in 25.105(a) 
on a group or item-by-item basis. Each domestic offeror is a small 
business or labor surplus area concern, requiring that the lowest 
acceptable foreign offer be increased by 12 percent. When an award 
exceeding $250,000 would be made to a domestic concern if the 12-percent 
factor were applied, but not if the 6-percent factor were applied, FAR 
25.105(c) required that the award be submitted to the agency head for 
decision as to whether award to the domestic concern would involve 
unreasonable cost. In NASA, the Administrator has delegated this 
authority to the Associate Administrator for Procurement. See table 
1825-4. (Note that both offers include transportation to destination and 
the foreign offer includes duty.)
    (i) For the grouping of items 1, 2, 3, and 4, the proposed total 
would be submitted to the Associate Administrator for Procurement for 
decision pursuant to FAR 25.105(c), which requires the agency head to 
decide whether award to a domestic concern would involve unreasonable 
cost when--
    (A) The low acceptable domestic offeror on each line item is a small 
business or labor surplus area concern and the low acceptable foreign 
offer for each line item must be increased for evaluation purposes by 12 
percent (see FAR 25.105(a)(2));
    (B) On an item-by-item basis, the low acceptable domestic price 
exceeds the low acceptable foreign price plus 6 percent, but is less 
than the foreign price plus 12 percent; or
    (C) The grouping of the four line items for purposes of a single 
award exceeds $250,000.
    (ii) Table 1825-5 illustrates the pertinent figures in applying FAR 
25.105(c). Columns 3 and 4 illustrate how award on each item would go to 
the domestic offeror if the 12-percent factor were added to the foreign 
offer. Addition of the 12-percent factor makes the foreign offer 
unreasonable. However, addition of only the 6-percent factor to the 
foreign offer makes the domestic offer unreasonable in each case 
because, even with the addition of the 6 percent, the foreign offer is 
still lower than the domestic one. Stated otherwise, because the low 
acceptable domestic offeror is a small business or labor surplus area 
firm, the price of the low acceptable foreign offeror must be raised by 
12 percent for evaluation purposes. Accordingly, each evaluated price of 
items 1, 2, 3, and 4 exceeds the domestic price for that item. However, 
in each case, if only the 6-percent factor is added instead of the 12-
percent factor, the individual awards would go to the foreign offeror 
instead of the domestic offeror, thus requiring the procurement to be 
submitted to the Associate Administrator for Procurement for a final 
decision as to whether award to the domestic concern would involve 
unreasonable cost.
    (b) Tie bids. If the evaluation procedure (that is, application of 
differentials) set forth at FAR 25.105 results in a tie between the 
foreign offer and the domestic offer, award shall be made to the 
domestic offeror.

                              Table 1825-1                              
------------------------------------------------------------------------
                                                          Low bids      
                                                   ---------------------
                                                     Domestic   Foreign 
------------------------------------------------------------------------
Cost to destination...............................    $20,000    $19,000
Import duty.......................................  .........        600
                                                   ---------------------
    Total.........................................    $20,000    $19,600
Six percent differential..........................  .........      1,176
                                                   ---------------------
    Total.........................................    $20,000    $20,776
------------------------------------------------------------------------


                              Table 1825-2                              
------------------------------------------------------------------------
                                                          Low bids      
                                                   ---------------------
                                                     Domestic   Foreign 
------------------------------------------------------------------------
Cost to destination...............................    $20,000    $17,000
Import duty.......................................  .........        500
                                                   ---------------------
    Total.........................................    $20,000    $17,500
Six percent differential..........................  .........      1,050
                                                   ---------------------
    Total.........................................    $20,000    $18,550
------------------------------------------------------------------------


[[Page 263]]


                                                  Table 1825-3                                                  
----------------------------------------------------------------------------------------------------------------
                                                                           Low Bids                             
                                                              ---------------------------------  Actual percent 
                             Item                                               Domestic           difference   
                                                                Foreign  ----------------------   between bids  
                                                                              A          B                      
----------------------------------------------------------------------------------------------------------------
1............................................................    $50,000    $55,500  .........                11
2............................................................     50,000  .........    $56,500                13
3............................................................     75,000     81,750  .........                 9
4............................................................     12,000  .........     16,250                30
----------------------------------------------------------------------------------------------------------------


                              Table 1825-4                              
------------------------------------------------------------------------
                                        Low bids         Actual percent 
              Item               ----------------------    difference   
                                   Foreign    Domestic    between bids  
------------------------------------------------------------------------
1...............................   $100,000   $111,000                11
2...............................    200,000    220,000                10
3...............................     50,000     55,000                10
4...............................     25,000     27,000                 8
------------------------------------------------------------------------


                                                  Table 1825-5                                                  
----------------------------------------------------------------------------------------------------------------
                                         1           2           3           4                    5             
                                   -----------------------------------------------------------------------------
               Item                               Foreign                 Foreign   Actual percentage difference
                                      Foreign    bid plus    Domestic    bid plus   of domestic bid over foreign
                                        bid         6%          bid         12%                  bid            
----------------------------------------------------------------------------------------------------------------
1.................................    $100,000    $106,000    $111,000    $112,000                            11
2.................................     200,000     212,000     220,000     224,000                            10
3.................................      50,000      53,000      55,000      56,000                            10
4.................................      25,000      26,500      27,000      28,000                             8
                                   ------------            ------------                                         
                                      $375,000                $413,000                                          
----------------------------------------------------------------------------------------------------------------



Sec. 1825.108  Excepted articles, materials, and supplies.

    NASA has determined that the end products listed at FAR 25.108(d) 
shall be treated as domestic.

[55 FR 12175, Apr. 2, 1990]



        Subpart 1825.2--Buy American Act--Construction Materials



Sec. 1825.202  Policy.

    (a) Exception for unreasonable cost of domestic construction 
materials. The Associate Administrator for Procurement has determined 
that when the application of the procedure set forth in 1825.203 results 
in the acquisition of foreign construction materials, the use of 
domestic construction materials would unreasonably increase the cost.
    (b) Exception for impracticability of using domestic construction 
materials. The Associate Administrator for Procurement has determined 
that, when there is a justification as required by FAR 25.203(b), the 
use of domestic construction material would be impracticable.
    (c) Exception for nonavailability of domestic construction 
materials. (1) NASA has determined that construction materials listed in 
FAR 25.108(d)(1) are not mined, produced, or manufactured in the United 
States in sufficient and reasonably available commercial quantities of a 
satisfactory quality.
    (2) In addition, subject to the approval of the head of the 
contracting activity where required (see FAR 25.202(b)), NASA 
contracting officers may make additional determinations of 
nonavailability under FAR 25.202(a)(3) both before entering into 
contracts and in the course of contract administration; provided, 
however, that in the latter case the Government receives adequate 
consideration. A copy of each nonavailability determination shall be 
included in the contract file. The format for these nonavailability 
determinations is at 1825.102(b).



Sec. 1825.203  Evaluating offers.

    When an offer involving the use of additional foreign construction 
materials (other than those listed as exceptions in the solicitation; 
see 1825.202(c) and 1852.225-71) would be the low acceptable offer but 
for the Buy American Act, award shall be made on it, provided that all 
the following conditions are satisfied:
    (a) The offer specifically designates the foreign construction 
materials proposed for use.
    (b) As to each such foreign construction material, the data 
accompanying the offer show that the cost of any

[[Page 264]]

available acceptable domestic construction material delivered at the 
construction site would exceed by more than 6 percent the cost 
(including duty) of the designated foreign construction material 
delivered at the construction site.
    (c) As to each such foreign construction material, the contracting 
officer is satisfied that the showing of a cost differential of more 
than 6 percent as required by paragraph (b) of this section is correct 
as of the date of opening of the bids or receipt of proposals.
    (d) The offer is low after adding to it, for evaluation purposes, a 
factor of 6 percent of the cost (including duty) of all offered foreign 
construction materials (delivered at the construction site) that qualify 
under the conditions stated in paragraphs (a), (b), and (c), of this 
section.
1825.205  Solicitation provision and contract clause.



Sec. 1825.205-70  NASA contract clause.

    The clause at 1852.225-71, Nondomestic Construction Materials, shall 
be included in all contracts for construction. Any articles of materials 
and supplies that have been the subject of additional determinations 
under 1825.202(c)(2) shall be listed in the clause.



               Subpart 1825.3--Balance of Payments Program



Sec. 1825.304  Excess and near-excess foreign currencies.

    The NASA Comptroller shall make the determination of the feasibility 
of using excess or near-excess currency required by FAR 25.304(c). The 
Director of Financial Management (Code BF) maintains a current list of 
excess and near-excess currency-countries and arranges for its 
publication in the NASA Travel Regulations.



    Subpart 1825.4--Purchases Under the Trade Agreements Act of 1979



Sec. Sec. 1825.400  Scope of subpart.

    For acquisition of Japanese end products or services, NASA is not a 
covered agency. Thus, the Buy American Act and the Balance of Payments 
Program apply to all NASA acquisitions where Japanese end products or 
services may be offered, regardless of dollar amount. The Trade 
Agreements Act and waiver requirement in FAR 25.402(c) do not apply.

[61 FR 42395, Aug. 15, 1996]



Sec. 1825.402  Policy.

    The threshold for procurements subject to the Trade Agreements Act 
of 1979 is $176,000.

[54 FR 28268, July 5, 1989, as amended at 55 FR 12175, Apr. 2, 1990; 57 
FR 40854, Sept. 8, 1992]
1825.403  Exceptions.



Sec. 1825.403-70  Coordination of arms purchases.

    With respect to the exceptions in FAR 25.403(d), if a contracting 
officer considers an individual acquisition to be a purchase 
``indispensable for national security or for national defense purposes'' 
and appropriate for exclusion from the provisions of FAR 25.4 and of 
this subpart 1825.4, the contracting officer shall submit a request with 
supporting rationale to Headquarters, Office of Policy Coordination and 
International Relations (Code I), for coordination with the Office of 
the U.S. Trade Representative.

[54 FR 28268, July 5, 1989, as amended at 57 FR 40854, Sept. 8, 1992]



Sec. 1825.405  Procedures.

    Solicitations shall require that applicable duty charges be included 
in the offered price, whether or not duty-free certificates are 
obtained. Duty charges shall be included in the price evaluation.



                   Subpart 1825.6--Customs and Duties



Sec. 1825.604  Exempted supplies.

    The contracting officer shall, when purchasing items listed in 
Schedule 8 of the Tariff Schedules of the United States, take note of 
the following:
    (a) Item 832 of Schedule 8 provides that ``emergency war materials 
purchased abroad'' may be imported duty-free upon certification by the 
Military Departments to the Commissioner of

[[Page 265]]

Customs. Accordingly, when a Military Department makes a purchase on 
behalf of NASA, or when NASA makes a purchase for a Military Department, 
the contracting officer shall use this duty-free exemption authority to 
the maximum extent practicable.
    (b) Item 864.30 of Schedule 8 provides for the duty-free exemption 
of ``articles intended solely for testing, experimental, or review 
purposes including plans, specifications, drawings, photographs, and 
similar articles for use in connection with experimental study,'' 
subject to the limitations in Headnote 1 under Item 862.20 of Schedule 
8.
    (c) Certain supplies (not including equipment) for vessels or 
aircraft operated by the United States are exempt from duty under 19 
U.S.C. 1309.
    (d) Under the Educational, Scientific, and Cultural Materials 
Importation Act of 1966, NASA has been determined eligible to request 
duty-free entry for instruments or apparatus under Items 851.60 and 
851.65 of Schedule 8. Pursuant to this authority, the contracting 
officer may apply for duty-free entry of such instruments or apparatus 
or related repair components if no instrument or apparatus of equivalent 
scientific value for the purpose for which the instrument or apparatus 
is intended is manufactured in the United States.
    (e) Item 837.00 of Schedule 8 and the subpart A headnote of part 3, 
Schedule 8, provide for duty-free entry of articles launched into or 
returned from space by NASA, including spare parts or necessary and 
uniquely associated support equipment. The contracting officer shall 
consult 14 CFR 1214.15 (NMI 8610.18, Duty-Free Entry of Space Articles) 
for procedures for obtaining the required Headquarters certificates for 
the duty-free entry of these articles.

[54 FR 28268, July 5, 1989, as amended at 59 FR 12197, Mar. 16, 1994]
1825.605  Contract clause.



Sec. 1825.605-70  NASA contract clause.

    The contracting officer shall insert the clause at 1852.225-73, 
Duty-Free Entry Supplies, in solicitations and contracts where the 
possibility exists of receiving duty-free supplies. Insert the supplies 
that are to be accorded duty-free entry in accordance with FAR 25.604 
and 1825.604.



Sec. 1825.670  Legal representation.

    The Office of the General Counsel (Code G), NASA Headquarters, shall 
represent NASA before the Court of Appeals for the Federal Circuit, in 
matters regarding customs and duties.



        Subpart 1825.7--Restrictions on Certain Foreign Purchases



Sec. 1825.703  Exceptions.

    When it is proposed to procure supplies originating from sources 
restricted by FAR 25.702(a) for public use outside the United States, or 
when a contractor proposes to use such supplies in performing a contract 
for construction outside the United States, the contracting officer 
shall make a written finding justifying the procurement. The finding 
shall set forth the unusual situation, such as an emergency or the 
nonavailability of acceptable substitute supplies of domestic origin or 
from sources other than the restricted sources. The contracting officer 
shall make the finding a part of the contract file. If the proposed 
procurement is not carried out by small purchase procedures, the 
contracting officer shall forward the finding in triplicate to the 
Associate Administrator for Procurement (Code HS), for approval.

[54 FR 28268, July 5, 1989, as amended at 56 FR 32115, July 15, 1991]



         Subpart 1825.9--Additional Foreign Acquisition Clauses



Sec. 1825.901  Omission of Audit Clause.

    (a) The contracting officer's request to use the clause at FAR 
52.215-2, with its Alternate III, shall consist of the proposed 
determination and findings (together with any relevant support 
information) prepared for the Administrator's signature. The procurement 
officer shall forward the package to the Associate Administrator for 
Procurement (Code HC).
    (b) When the clause at FAR 52.215-2 is used with its Alternate III, 
the contracting officer shall prepare a written report in triplicate to 
be furnished to

[[Page 266]]

the Congress. The head of the installation concerned shall sign the 
report and forward it to the Associate Administrator for Procurement 
(Code HC), who shall submit it to the Administrator for the 
Administrator's signature and forwarding to Congress.

[60 FR 47713, Sept. 14, 1995]



                   Subpart 1825.70--Foreign Contracts



Sec. 1825.7000  Scope of subpart.

    This subpart prescribes policy and procedures for negotiating 
foreign contracts.



Sec. 1825.7001  Definition.

    Foreign contract acquisition, as used in this subpart, means the 
acquisition by negotiation of supplies or services, including 
construction work and research and development when the work is to be 
performed outside the United States, its possessions, and Puerto Rico by 
a foreign government or instrumentality thereof or by a foreign private 
contractor. The term does not include--
    (a) Negotiation of government-to-government agreements;
    (b) Negotiation of contracts with domestic concerns involving work 
to be performed outside the United States, its possessions, and Puerto 
Rico;
    (c) Contracts with the Canadian Commercial Corporation; or
    (d) Acquisition of books and periodicals from foreign sources of 
supply.



Sec. 1825.7002  Policy

    (a) Each contracting office (including NMO JPL) shall coordinate 
with the Headquarters Office of External Relations, International 
Relations Division (Code IR), before initiating any foreign contract 
acquisition if the acquisition is valued above $100,000 or involves--
    (1) Importing or exporting goods or services from or to a country 
listed in 22 CFR 126.1(a) or (d) (Subchapter M, the International 
Traffic in Arms Regulations);
    (2) Importing or exporting Defense Articles or Defense Services on 
the United States Munitions List at 22 CFR part 121 which require NASA 
to obtain a license from the State Department's Office of Defense Trade 
Controls;
    (3) Exporting goods or services on the Commerce Control List at 15 
CFR part 799 and that require NASA to obtain either a Special or an 
Individual Validated License;
    (4) Importing and/or exporting goods or services from or to an 
entity listed in 15 CFR part 788, Supplements 1 through 4; or
    (5) Exporting and/or importing of goods, technology, or services to 
or from any entity subject to transaction control, embargo, or sanctions 
pursuant to 31 CFR Chapter V.
    (b) All coordination required between NASA and the Departments of 
Commerce, State, and Treasury regarding foreign contract acquisitions 
shall be accomplished through Headquarters Code IR. The Headquarters 
designated points of contact for issues related to particular foreign 
procurement acquisition is Code HK in the Office of Procurement, Code GK 
in the Office of General Counsel, and Code IR in the Office of External 
Relations. Deviation requests shall be made in accordance with 48 CFR 
part 1801.471 and shall be coordinated prior to or during negotiations.

[60 FR 37599, July 21, 1995]



Sec. 1825.7003  Procedure.

    The Headquarters or field installation technical office requiring a 
foreign contract acquisition meeting any of the criteria listed in 
1825.7002 shall submit the following information to Headquarters Code 
IR--
    (a) The name of the foreign entity, the country or countries 
involved, and the purpose of the contract;
    (b) The Space Act agreement(s) involved (pursuant to NMI 1050.9), if 
any;
    (c) A description of the goods or services requiring prior written 
approval or the issuance of the license for their import or export from 
the Departments of Commerce, State, or Treasury; and
    (d) The reason why the procurement is being placed with a foreign 
entity.

[60 FR 37599, July 21, 1995]

[[Page 267]]



Sec. 1825.7004  Assignment of contract administration for contracts performed in Canada.

    (a) When, in accordance with FAR part 42, contract administration 
and related support service functions of the Defense Contract Management 
Command are desired for a contract to be performed in Canada (whether 
placed with Canadian commercial Corporation or directly with a Canadian 
firm), a letter or delegation shall be issued to--Defense Logistics 
Agency, DCMAO Canada, 275 Bank St., suite 200, Ottawa, Ontario, Canada 
K2P 2L6.
    (b) So that DCMAO Canada can utilize the capabilities of Canadian 
Government agencies in performing contract administration services 
functions, each letter of delegation shall provide that DCMAO Canada is 
delegated authority to act as the contracting officer's representative, 
with power of further delegation for the performance of the requested 
services.

[60 FR 37599, July 21, 1995]



                       Subpart 1825.71--[Reserved]



   Subpart 1825.72--Limitation on Strategic Defense Initiative (SDI) 
                               Contracting



Sec. 1825.7200  Procedures.

    Public Law 110-180, section 222, forbids the use of funds 
appropriated to or for the use of the DOD, with certain exceptions, for 
the award of any contract with a foreign government or firm when the 
contract is for research, development, test, or evaluation (RDTE) in 
connection with the Strategic Defense Initiative (SDI). Therefore, when 
contracting with DOD SDI funds, NASA contracting officers shall follow 
the policies and procedures set forth in section 225.7013 of the Defense 
Federal Acquisition Regulation Supplement (DFARS). If an award is based 
on a determination required by paragraph (d)(1) of DFARS 225.7013, the 
contracting officer shall, within 30 days of award, send copies of the 
determination to the SDI Organization (SDIO) and to the Program 
Operations Division (HS), NASA, Washington, DC 20546.

[56 FR 12458, Mar. 26, 1991, as amended at 59 FR 66270, Dec. 23, 1994; 
60 FR 40514, Aug. 9, 1995]

[[Page 268]]



             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS





PART 1827--PATENTS, DATA, AND COPYRIGHTS--Table of Contents




        Subpart 1827.3--Patent Rights Under Government Contracts

Sec.
1827.303  Contract clauses.
1827.370  Scope of subpart.
1827.371  Definitions.
1827.372  Policy.
1827.373  Contract clauses and solicitation provisions.
1827.374  Procedures.
1827.374-1  General.
1827.374-2  Contracts placed by or for other Government agencies.
1827.374-3  Contracts for construction work or architect-engineer 
          services.
1827.374-4  Subcontracts.
1827.374-5  Appeals.
1827.375  Administration of the patent rights and new technology 
          clauses.
1827.375-1  New technology and patent rights follow-up.
1827.375-2  Follow-up by contractor.
1827.375-3  Follow-up by Government.
1827.375-4  Conveyance of invention rights acquired by the Government.
1827.375-5  Publication and release of invention disclosures.
1827.375-6  Licensing of background rights to third parties.

              Subpart 1827.4--Rights in Data and Copyrights

1827.404  Basic rights in data clause.
1827.405  Other data rights provisions.
1827.406  Acquisition of data.
1827.407  Rights to technical data in successful proposals.
1827.408  Cosponsored research and development activities.
1827.409  Solicitation provisions and contract clauses.

   Subpart 1827.6--Foreign License and Technical Assistance Agreements

1827.670  Space Station Freedom technical data.
1827.670-1  Policy.
1827.670-2  Contract clause.
    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28272, July 5, 1989, unless otherwise noted.



        Subpart 1827.3--Patent Rights Under Government Contracts



Sec. 1827.303  Contract clauses.

    In accordance with FAR 27.303, see 1827.373 for directions for using 
the clauses at FAR 52.227-11 and 52.227-13.



Sec. 1827.370  Scope of subpart.

    As authorized by FAR 27.300, in accordance with statutory 
requirements, this subpart sets forth NASA policy, procedures, and 
contract clauses with respect to inventions, discoveries, improvements, 
and innovations made in the performance of any work under any contract 
awarded by or for NASA. Except where the FAR is specifically cited, this 
subpart supersedes FAR subpart 27.3 in its entirety.



Sec. 1827.371  Definitions.

    Administrator, as used in this subpart, means the Administrator of 
NASA or a duly authorized representative.
    Contract, as used in this subpart, means any actual or proposed 
contract, agreement, understanding, or other arrangement, and includes 
any assignment, substitution of parties, or subcontract executed or 
entered into thereunder.
    Made, as used in this subpart, means conceived or first actually 
reduced to practice; provided, that in the case of a variety of plant, 
the date of determination (as defined in section 41(d) of the Plant 
Variety Protection Act, 7 U.S.C. 2401(d)) must also occur during the 
period of contract performance.
    Nonprofit organization, as used in this subpart, means a university 
or other institution of higher education or an organization of the type 
described in section 501(c)(3) of the Internal Revenue Code of 1954 (26 
U.S.C. 501(c)) and exempt from taxation under section 501(a) of the 
Internal Revenue Code (26 U.S.C. 501(a)), or any nonprofit scientific or 
educational organization qualified under a State nonprofit-organization 
statute.
    Practical application, as used in this subpart, means manufacturing, 
in the

[[Page 269]]

case of a composition or product; practice, in the case of a process or 
method; or operation, in the case of a machine or system; and, in each 
case, under such conditions as to establish that the invention is being 
utilized and that its benefits are, to the extent permitted by law and 
Government regulations, available to the public on reasonable terms.
    Reportable item, as used in this subpart, means any invention, 
discovery, improvement, or innovation of the contractor, whether or not 
patentable or otherwise protectible under title 35 of the United States 
Code, conceived or first actually reduced to practice in the performance 
of any work under any NASA contract or in the performance of any work 
that is reimbursable under any clause in any NASA contract providing for 
reimbursement of costs incurred before the effective date of the 
contract.
    Small business firm, as used in this subpart, means a domestic small 
business concern as defined at 15 U.S.C. 632 and implementing 
regulations of the Administrator of the Small Business Administration. 
(For the purpose of this definition, the size standard contained in 13 
CFR 121.3-8 for small business contractors and in 13 CFR 121.3-12 for 
small business subcontractors shall be used. (See FAR part 19.).
    Subject invention, as used in this subpart, means any reportable 
item that is or may be patentable or otherwise protectible under title 
35 of the United States Code, or any novel variety of plant that is or 
may be protectible under the Plant Variety Protection Act (7 U.S.C. 2321 
et seq.).



Sec. 1827.372  Policy.

    (a) Introduction. (1) NASA policy with respect to any invention, 
discovery, improvement, or innovation made in the performance of any 
work under any NASA contract or subcontract with other than a small 
business firm or a nonprofit organization and the allocation of related 
property rights is based upon section 305 of the National Aeronautics 
and Space Act of 1958, as amended (42 U.S.C. 2457) (the Act); and, to 
the extent consistent with this statute, the Presidential Memorandum on 
Government Patent Policy to the Heads of Executive Departments and 
Agencies, dated February 18, 1983, and section 1(b)(4) of Executive 
Order 12591. NASA policy with respect to any invention made in the 
performance of experimental, developmental, or research work with a 
small business firm or a nonprofit organization is based on 35 U.S.C. 
chapter 18, as amended.
    (2) NASA policy with respect to any invention made in the 
performance of experimental, developmental, or research work with a 
small business firm or a nonprofit organization is based on 35 U.S.C. 
chapter 18, as amended. The objectives with respect to any NASA contract 
subject to Section 305 of the Act are to obtain the prompt reporting of 
inventions, discoveries, improvements, and innovations made in the 
performance of any work thereunder (whether or not patentable) in order 
to protect the Government's interest in them and to provide widest 
practicable and appropriate dissemination, early utilization, 
expeditious development, and continued availability for the benefit of 
the scientific, industrial, and commercial communities and the general 
public.
    (3) In addition, the objectives with respect to inventions made in 
the performance of work under all NASA contracts are to use the patent 
system to promote the utilization of inventions arising from federally 
supported research or development; to encourage maximum participation of 
industry in federally funded research and development efforts; to ensure 
that these inventions are used to promote full and open competition and 
free enterprise; to promote the commercialization and public 
availability of the inventions made in the United States by United 
States industry and labor; to ensure that the Government obtains 
sufficient rights in federally supported inventions to meet the needs of 
the Government and protect the public against nonuse or unreasonable use 
of inventions; and to minimize the cost of administering policies in 
this area.
    (b) Contractor right to title. (1) With respect to any NASA contract 
with other than a small business firm or a

[[Page 270]]

nonprofit organization (contracts subject to section 305 of the Act; see 
paragraph (d) of this section, it is the policy of NASA to waive the 
rights (to acquire title) of the United States (with the reservation of 
a Government license set forth in paragraph (c) of this section and the 
march-in rights of paragraph (f) of this section in and to any invention 
made in the performance of work under the contract if the Administrator 
determines that the interests of the United States will be served. This 
policy, as well as the procedures and instructions for such waiver of 
rights, is stated in the NASA Patent Waiver Regulations, 14 CFR part 
1245, subpart 1. These regulations adopt the Presidential Memorandum on 
Government Patent Policy of February 18, 1983, as a guide in acting on a 
contractor's request for such waiver of rights (i.e., request for 
title). Waiver may be requested in advance of contract award for any or 
all of the inventions that may be made under the contract, or for 
individually identified inventions reported under the contract. When 
waiver of rights is granted, the contractor's right to title, the rights 
reserved by the Government, and other conditions and obligations of the 
waiver shall be included in an Instrument of Waiver executed by NASA and 
the party receiving the waiver.
    (2) With respect to any contract with a small business firm or a 
nonprofit organization, the contractor's right to receive title is as 
stated in FAR 27.302(b).
    (3) It is also a policy of NASA to consider for a monetary award, 
when referred to the NASA Inventions and Contributions Board, any 
invention made in the performance of a NASA contract and reported to 
NASA in accordance with this subpart, and for which an application for 
patent has been filed.
    (c) Government license. (1) For each invention made in the 
performance of work under any NASA contract with other than a small 
business firm or a nonprofit organization and for which waiver of rights 
has been granted in accordance with 14 CFR part 1245, subpart 1, the 
Administrator shall reserve an irrevocable, nonexclusive, 
nontransferable, royalty-free license for the practice of such invention 
throughout the world by or on behalf of the United States or any foreign 
government in accordance with any treaty or agreement with the United 
States.
    (2) For any invention made in the performance of work under any 
contract not subject to the Government license of paragraph (c)(1) of 
this section, FAR 27.302(c) shall apply.
    (d) Government right to receive title. (1) Under section 305(a) of 
the Act (42 U.S.C. 2457(a)), any invention made in the performance of 
work under a NASA contract becomes the exclusive property of the United 
States when certain determinations stated in the Act relating to the 
employment status of the person making the inventions are made, unless 
the Administrator waives all or any part of the rights. NASA has adopted 
the Presidential Memorandum on Government Patent Policy of February 18, 
1983, as a guide in acting on a contractor's request for waiver (see 
paragraph (b) of this section).
    (2) Thus, NASA acquires title to any subject invention under any 
NASA contract with other than a small business firm or a nonprofit 
organization (i.e., those contracts subject to section 305(a) of the 
Act) unless waiver has been granted and made applicable to that 
invention. Such contracts are required to contain the clause at 
1852.227-70, New Technology. Paragraph (b) of that clause sets forth the 
circumstances under which NASA acquires title to a subject invention 
under section 305(a). When waiver is granted, the contractor's right to 
title will be included in an Instrument of Waiver executed by NASA and 
the party receiving the waiver.
    (3) With respect to any contract with a small business firm or a 
nonprofit organization, FAR 27.302(d) shall apply.
    (e) Utilization reports. FAR 27.302(e) shall apply, except that for 
any NASA contract with other than a small business firm or a nonprofit 
organization, the requirements for utilization reports shall be as set 
forth in the NASA Patent Waiver Regulations, 14 CFR part 1245, subpart 
1, and any Instrument of Waiver executed under those regulations.

[[Page 271]]

    (f) March-in rights. FAR 27.302(f) shall apply, except that for any 
NASA contract with other than a small business firm or a nonprofit 
organization, the march-in rights shall be as set forth in the NASA 
Patent Waiver Regulations, 14 CFR part 1245, subpart 1, and any 
Instrument of Waiver executed under those regulations.
    (g) Preference for United States industry. FAR 27.302(g) shall 
apply, except that with respect to any NASA contract with other than a 
small business firm or a nonprofit organization, any waiver of the 
requirements of FAR 27.302(g) shall be in accordance with the NASA 
Patent Waiver Regulations, 14 CFR part 1245, subpart 1.
    (h) Small business preference. FAR 27.302(h) shall apply.
    (i) Minimum rights to contractor. (1) With respect to any NASA 
contract with other than a small business firm or a nonprofit 
organization, for each reported subject invention to which the 
Government acquires title, the contractor is normally granted (pursuant 
to 14 CFR part 1245, subpart 1) a revocable, nonexclusive, royalty-free 
license in each patent application filed in any country and in any 
resulting patent. The license extends to the contractor's domestic 
subsidiaries and affiliates, if any, within the corporate structure, and 
includes the right to grant sublicenses of the same scope to the extent 
the contractor was legally obligated to do so at the time the contract 
was awarded. The license and right is transferable only with the 
approval of the Administrator except when transferred to the successor 
of that part of the contractor's business to which the invention 
pertains.
    (2) The contractor's domestic license granted in accordance with 
paragraph (h)(1) of this section, may be revoked or modified by the 
Administrator to the extent necessary to achieve expeditious practical 
application of the subject invention pursuant to an application for an 
exclusive license submitted in accordance with 37 CFR part 404, 
Licensing Government Owned Inventions. This license will not be revoked 
in any field of use or geographical area in which the contractor has 
achieved practical application and continues to make the benefits of the 
invention reasonably accessible to the public. The license in any 
foreign country may be revoked or modified at the discretion of the 
Administrator to the extent the contractor, its licensees, or its 
domestic subsidiaries or affiliates have failed to achieve practical 
application in that country. The procedures for revocation or 
modification of any license set forth herein, domestic or foreign, shall 
be in accordance with 37 CFR 404.10.
    (3) With respect to any contract with a small business firm or a 
nonprofit organization, FAR 27.302(h) shall apply.
    (j) Confidentiality of inventions. FAR 27.302(i) shall apply.

[54 FR 28272, July 5, 1989, as amended at 54 FR 39372, Sept. 26, 1989; 
60 FR 40514, Aug. 9, 1995]



Sec. 1827.373  Contract clauses and solicitation provisions.

    (a) Patent rights--retention by the contractor (short form).
    (1) The contracting officer shall insert the clause at FAR 52.227-
11, Patent Rights--Retention by the Contractor (Short Form), in any 
solicitation and contract with a small business firm or a nonprofit 
organization for the performance of experimental, developmental, or 
research work unless a determination is made to use another clause in 
accordance with one of the exceptions in paragraph (c) of this section. 
Also see 1827.374-4.
    (2) When the clause at FAR 52.227-11 is included in a solicitation 
or contract it shall be modified as set forth at 1852.227-11.
    (3) If the acquisition of patent rights for the benefit of a foreign 
government is required under a treaty or executive agreement, or if the 
Administrator determines at the time of contracting that it would be in 
the national interest to acquire the right to sublicense foreign 
governments or international organizations pursuant to any existing or 
to-be-entered-into treaty or agreement, the contracting officer shall 
use the clause with its Alternate I. If other rights are necessary to 
effectuate the treaty or agreement, Alternate I may be appropriately 
modified. In long term contracts, Alternate II shall be added if 
necessary to effectuate treaties or agreements entered into.

[[Page 272]]

    (4) To qualify for the clause at FAR 52.227-11, a prospective 
contractor may be required to certify that it is either a small business 
firm or a nonprofit organization. If there is reason to question the 
status of the prospective contractor, the contracting officer may file a 
protest in accordance with 13 CFR 121.3-5 if small business firm status 
is questioned or require the prospective contractor to furnish evidence 
of its status as a nonprofit organization.
    (b) New technology. As authorized in FAR 27.303(c)(2), the 
contracting officer shall insert the clause at 1852.227-70, New 
Technology, in all NASA solicitations and contracts with other than a 
small business firm or a nonprofit organization, if the contract is to 
be performed in the United States, its possessions, or Puerto Rico and 
has as a purpose the performance of experimental, developmental, 
research, design, or engineering work (see also 1827.374-3 and 1827.374-
4). Contracts for any of the following purposes may be considered to 
involve the performance of work of the type described above (these 
examples are illustrative and not limiting):
    (1) Conduct of basic or applied research.
    (2) Development, design, or manufacture for the first time of any 
machine, article of manufacture, or composition of matter to satisfy 
NASA's specifications or special requirements.
    (3) Development of any process or technique for attaining a NASA 
objective not readily attainable through the practice of a previously 
developed process or technique.
    (4) Testing of, evaluation of, or experimentation with a machine, 
process, concept, or technique to determine whether it is suitable or 
could be made suitable for a NASA objective.
    (5) Construction work or architect-engineer services having as a 
purpose the performance of experimental, developmental, or research work 
or test and evaluation studies involving such work.
    (6) The operation of facilities or the coordination and direction of 
the work of others, if these activities involve performing work of any 
of the types described in paragraphs (b) (1) through (5) of this 
section.
    (c) Other patent rights clauses. The contracting officer shall use a 
patent rights clause other than as specified in paragraph (a) or (b) of 
this section, under the following circumstances:
    (1) When work is to be performed outside the United States, its 
possessions, and Puerto Rico by contractors that are not domestic firms, 
the clause at 1852.227-85, Invention Reporting and Rights--Foreign, 
shall be used unless the contracting officer determines, with 
concurrence of the installation's Patent Counsel, that the objectives of 
the contract would be better served by use of the clause at FAR 52.227-
13, Patent Rights--Acquisition by the Government. For this purpose the 
contracting officer may presume that a contractor is not a domestic firm 
unless it is known that the firm is not foreign owned, controlled, or 
influenced. (See FAR 27.304-4(a) regarding subcontracts with U.S. 
firms.)
    (2) When a contract is placed for another Government agency, that 
agency may request use of a specific patent rights clause (see FAR 
27.304-2). If the agency does not request a specific clause, the 
contracting officer, upon consultation with the installation's Patent 
Counsel, may use the clause of paragraph (a) or (b) of this section, as 
applicable.
    (3) When the contract is with a small business firm or a nonprofit 
organization for the performance of experimental, developmental, or 
research work, a determination may be made not to use the clause 
prescribed in paragraph (a) of this section by using the criteria and 
procedures in FAR 27.303(d). In such case, the installation's Patent 
Counsel is to be consulted for the appropriate clause to use.
    (d) Requests for waiver of rights to inventions. The procedures for 
requesting waiver of rights to any inventions made in the performance of 
work under any NASA contract with other than a small business firm or a 
nonprofit organization are set forth in the NASA Patent Waiver 
Regulations, 14 CFR part 1245, subpart 1. In order to advise offerors of 
those procedures, the contracting officer shall insert the provision at 
1852.227-71, Requests for Waiver

[[Page 273]]

of Rights to Inventions, in all solicitations that include the clause at 
1852.227-70, New Technology.
    (e) Designation of New Technology Representative and Patent 
Representative. The contracting officer shall insert the clause at 
1852.227-72, Designation of New Technology Representative and Patent 
Representative, in all solicitations and contracts containing either of 
the clauses prescribed in paragraph (a) or (b) of this section. It may 
also be inserted, upon consultation with the installation's Patent 
Counsel, in solicitations and contracts using another patent rights 
clause in accordance with paragraph (c) of this section.
    (f) Solicitation provision. The contracting officer shall insert the 
provision at 1852.227-84, Patent Rights Clauses, in solicitations for 
experimental, developmental, or research work to be performed in the 
United States, its possessions, or Puerto Rico when the eventual awardee 
may be a small business or a nonprofit organization.

[54 FR 28272, July 5, 1989, as amended at 54 FR 39372, Sept. 26, 1989; 
55 FR 27089, June 29, 1990; 60 FR 40514, Aug. 9, 1995]
1827.374  Procedures.



Sec. 1827.374-1  General.

    (a) Contractor appeals of exceptions.  In any contract with other 
than a small business firm or nonprofit organization, the NASA Patent 
Waiver Regulations, 14 CFR part 1245, subpart 1, shall apply. In any 
contract with a small business firm or nonprofit organization, FAR 
27.304-1(a) shall apply.
    (b) Greater rights determinations. In any contract with other than a 
small business firm or a nonprofit organization and with respect to 
which advance waiver of rights has not been granted (see 1827.372(b)), 
the contractor (or an employee-inventor of the contractor after 
consultation with the contractor) may request waiver of title to an 
individual identified subject invention pursuant to the NASA Patent 
Waiver Regulations, 14 CFR part 1245, subpart 1. In any contract with a 
small business firm or a nonprofit organization, FAR 27.304-1(a) shall 
apply.
    (c) Retention of rights by inventor. The NASA Patent Waiver 
Regulations, 14 CFR part 1245, subpart 1, apply for any invention made 
in the performance of work under any contract with other than a small 
business firm or a nonprofit organization. For inventions made under a 
contract with a small business firm or a nonprofit organization, FAR 
27.304-1(b) shall apply.
    (d) Government assignment to contractor of rights in Government 
employees' inventions. FAR 27.304-1(c) shall apply.
    (e) Additional requirements. See 1827.373(a).
    (f) Revocation or modification of contractor's minimum rights. 
Revocation or modification of the contractor's license rights (see 
1827.372(i)(2)) shall be in accordance with 37 CFR 404.10, for subject 
inventions made and reported under any contract with other than a small 
business firm or a nonprofit organization, and in accordance with FAR 
27.304-1(f) for subject inventions made and reported under any contract 
with a small business firm or a nonprofit organization. The contractor's 
right to appeal a determination to revoke or modify any such license 
shall be in accordance with 37 CFR part 404, Licensing of Government 
Owned Inventions.
    (g) Exercise of march-in rights. (1) With respect to inventions made 
in the performance of work under any contract with other than a small 
business firm or a nonprofit organization, the procedures for the 
exercise of march-in rights shall be as set forth in the NASA Patent 
Waiver Regulations, 14 CFR part 1245, subpart 1.
    (2) With respect to inventions made under any contract with a small 
business firm or a nonprofit organization, FAR 27.304-1(g) shall apply.
    (h) Licenses and assignments under contracts with nonprofit 
organizations. FAR 27.304-1(h) shall apply. NASA's approving official 
for any assignment requested under FAR 27.304-1(h) is the Associate 
General Counsel (Intellectual Property). Contractors' requests should be 
made to the Patent Representative designated in accordance with 
1827.373(e) and forwarded, with recommendation, to the Associate General 
Counsel (Intellectual Property) for decision.

[54 FR 28272, July 5, 1989, as amended at 54 FR 39373, Sept. 26, 1989; 
60 FR 40514, 40515, Aug. 9, 1995]

[[Page 274]]



Sec. 1827.374-2  Contracts placed by or for other Government agencies.

    FAR 27.304-2 shall apply. (See also 1827.373(c)(2).)

[54 FR 39373, Sept. 26, 1989]



Sec. 1827.374-3   Contracts for construction work or architect-engineer services.

    (a) If a contract for construction work or architect-engineer 
services with other than a small business firm or a nonprofit 
organization has as a purpose the performance of experimental, 
developmental, or research work, or test and evaluation studies 
involving such work, and the contract calls for or can be expected to 
involve the design of a Government facility or of novel structures, 
machines, products, materials, processes, or equipment (including 
construction equipment), the contract shall include the clause 
prescribed at 1827.373(b) except as provided in FAR 27.304-3(b).
    (b) For all other contracts for construction work or architect-
engineer services, FAR 27.304-3 shall apply.

[54 FR 28272, July 5, 1989, as amended at 60 FR 40515, Aug. 9, 1995]



Sec. 1827.374-4   Subcontracts.

    (a) The policies and procedures in this subpart apply to all 
contracts at any tier. Hence, unless the contracting officer otherwise 
authorizes or directs, contractors awarding subcontracts and 
subcontractors awarding lower-tier subcontracts shall select and include 
one of the following clauses, suitably modified to identify the parties, 
in the indicated subcontracts:
    (1) The clause at 1852.227-70, New Technology, in any subcontract 
with other than a small business firm or a nonprofit organization if a 
purpose of the subcontract is the performance of experimental, 
developmental, research, design, or engineering work of any of the types 
described in 1827.373(b)(1) through (6).
    (2) The clause at FAR 52.227-11, Patent Rights--Retention by the 
Contractor (Short Form), modified in accordance with 1827.373(a), in any 
subcontract with a small business firm or a nonprofit organization if a 
purpose of the subcontract is the performance of experimental, 
developmental, or research work.
    (b) Whenever a prime contractor or a subcontractor considers it 
inappropriate to include one of the clauses discussed in paragraph (a) 
of this section, in a particular subcontract, or a subcontractor refuses 
to accept the clause, the matter shall be resolved by the contracting 
officer in consultation with the installation's Patent Counsel.
    (c) Contractors and subcontractors may not use their ability to 
award subcontracts as economic leverage to acquire rights for themselves 
in inventions resulting from such subcontracts.



Sec. 1827.374-5   Appeals.

    FAR 27.304-5 shall apply unless otherwise provided in the NASA 
Patent Waiver Regulations, 14 CFR part 1245, subpart 1.
1827.375  Administration of the patent rights and new technology 
clauses.



Sec. 1827.375-1   New technology and patent rights follow-up.

    (a) It is important that the Government and the contractor know, 
protect, and exercise their rights in inventions, discoveries, 
improvements, and innovations made in the performance of work under NASA 
contracts in order to ensure their expeditious availability to the 
public; foster commercial use; enable the Government, contractor, and 
public to avoid unnecessary payment of royalties; and defend themselves 
against claims and suits for infringement. To attain these ends, 
contracts having the clause at 1852.227-70, New Technology, the clause 
at FAR 52.227-11, Patent Rights--Retention by the Contractor (Short 
Form), or any other patent rights clause (hereinafter all collectively 
referred to as ``the clause'' unless otherwise indicated), should be so 
administered that--
    (1) Reportable items and subject inventions are identified, 
disclosed, and reported as required by the clause, and requests for 
waiver of title or election of title, when appropriate, are timely made;
    (2) The rights of the Government in reportable items and subject 
inventions are established;

[[Page 275]]

    (3) Where patent protection is appropriate, patent applications are 
timely filed and prosecuted;
    (4) The rights of the Government in filed patent applications are 
documented by formal instruments such as licenses or assignments; and
    (5) Expeditious commercial utilization of reportable items and 
subject inventions is achieved.
    (b)(1) For each contract containing the clause, the contracting 
officer shall designate representatives (hereinafter referred to as the 
``New Technology Representative'' and the ``Patent Representative''; see 
1827.373(e)) to administer the clause, protect the Government's rights, 
and take other actions in relation thereto. The New Technology 
Representative shall be the Technology Utilization Officer or the staff 
member (by titled position) having cognizance of technology utilization 
matters for the installation concerned. The Patent Representative shall 
be the Patent Counsel (by titled position) having cognizance of patent 
matters for the installation concerned. Designation of these 
representatives in the contract is made in the clause at 1852.227-72, 
Designation of New Technology Representative and Patent Representative.
    (2) The contracting officer shall--(i) Furnish the New Technology 
Representative a copy of each contract (and modifications thereto) 
containing the clause, and copies of the final technical report, interim 
technical progress reports, and other pertinent material provided under 
the contract, unless the New Technology Representative indicates 
otherwise;
    (ii) Notify the New Technology Representative as to which 
installation organizational element has technical cognizance of the 
contract; and
    (iii) Furnish the Patent Representative a copy of each contract (and 
modifications thereto) containing the clause, and copies of the final 
technical report, interim progress reports, and other pertinent material 
provided under the contract, unless the Patent Representative indicates 
otherwise.
    (3) The New Technology Representative and the Patent Representative 
shall:
    (i) Maintain complete files of correspondence and other actions 
involving their respective administration of the clause; and
    (ii) Furnish copies of documents appropriate for inclusion in the 
general contract files to the contracting officer.
    (4) If a subject invention is made under funding agreements of more 
than one agency, the agencies shall designate one agency as responsible 
for administering the rights of the Government in the invention.

[54 FR 28272, July 5, 1989, as amended at 60 FR 40515, Aug. 9, 1995]



Sec. 1827.375-2  Follow-up by contractor.

    (a) Contractor procedures. (1) Each contractor other than a small 
business firm or a nonprofit organization shall establish and maintain 
active and effective procedures to ensure that reportable items are 
promptly identified, reported, and disclosed in order to meet the 
requirements of the clause. These procedures must include the 
maintenance of:
    (i) Laboratory notebooks or equivalent records and any other records 
reasonably necessary to document the conception and/or first actual 
reduction to practice of reportable items; and
    (ii) Records showing that the procedures for identifying and 
disclosing reportable items are followed.

Upon request, the contractor shall furnish the contracting officer or a 
designated representative, for evaluation and a determination as to 
their effectiveness, a description of the procedures.
    (2) In order to ensure adequate understanding of and commitment to 
the reporting requirements of the New Technology clause, prospective 
contractors under any contract with an estimated cost of $2,500,000 or 
more (or a lesser dollar amount where considered appropriate) that 
contains the clause may be required to submit for approval a detailed 
plan for new technology reporting (see 1835.003-71).
    (b) Contractor reports. (1) During the period of performance of each 
contract or subcontract, the contractor or subcontractor is required to 
submit to the New Technology Representative (or

[[Page 276]]

any other representative designated by the contracting officer) all 
disclosures of reportable items and subject inventions, interim reports, 
subcontract identification, and other information in the manner required 
by the clause, and upon the completion of the work under the contract or 
subcontract, the final report if required by the clause.
    (2) Reporting of reportable items as required by the New Technology 
clause promptly and before the completion of contract work, and prompt 
submission of the final report upon completion of contract work, will 
aid new technology clearance. Timely submission of annual interim 
reports, where contracts cover a period of more than one year, will also 
facilitate clause administration and expedite final clearance.

[54 FR 28272, July 5, 1995, as amended at 60 FR 40515, Aug. 9, 1995]



Sec. 1827.375-3  Follow-up by Government.

    (a) The New Technology Representative shall review the technical 
progress of work performed under the contract to ascertain whether the 
contractor and its subcontractors are complying with the clause's 
reporting requirements. This effort should be directed primarily toward 
contracts and subcontracts that, by the nature of the work to be 
performed or the dollar amounts involved, are likely to produce 
reportable items or subject inventions of significant quantity or 
quality, or toward contracts and subcontracts under which there is 
reason to believe that the contractors may not be complying with 
contractual obligations. Other contracts and subcontracts should be 
spot-checked when feasible. These follow-up activities may include--
    (1) Reviewing the contractor's technical reports;
    (2) Requesting the Patent Representative to check sources for 
patents issued to the contractor in fields related to the contractor's 
Government contracts;
    (3) Interviewing contractor personnel regarding work under the 
contract, observing the work on-site, and inspecting laboratory 
notebooks and other contractor records related to work under the 
contract, to the extent authorized by the clause;
    (4) Interviewing agency technical personnel concerning novel 
developments in contracts under their cognizance; and
    (5) Ensuring that the contractor is timely in reporting reportable 
items, disclosing subject inventions, and submitting interim reports, 
subcontract identification, and final reports as required by the clause.
    (b) The New Technology Representative shall forward to the Patent 
Representative copies of all contractors' and subcontractors' written 
reports of reportable items and disclosures of subject inventions, and a 
copy of the written statement, if any, submitted with the report of the 
reportable item. The New Technology Representative shall consult with 
the Patent Representative whenever a question arises as to whether a 
given reportable item is to be considered a subject invention and 
whether it was made in the performance of work under the contract. All 
correspondence relating to:
    (1) Inventions and waivers under the New Technology clause and
    (2) Election of title under the Patent Rights--Retention by the 
Contractor (Short Form) clause

shall also be promptly forwarded to the Patent Representative.
    (c) The Patent Representative shall review each reportable item to 
ascertain whether it is to be considered a subject invention, obtain any 
determinations required by paragraph (b) of the New Technology clause, 
and notify the contractor. As to any subject invention, the Patent 
Representative shall:
    (1) Ensure that the contractor has provided sufficient information 
to protect the Government's rights and interests in it and to permit the 
preparation, filing, and prosecution of patent applications,
    (2) Make determinations of inventorship, and
    (3) Ensure the preparation of instruments establishing the 
Government's rights.

The Patent Representative shall also, as necessary, conduct selected 
reviews of the nature set forth in paragraph (a) of this section to 
ensure that subject inventions are identified, adequately

[[Page 277]]

documented, and timely reported or disclosed.
    (d) Upon receipt of any final report required by the clause, and 
upon determination that the contract work is complete, the New 
Technology Representative shall determine whether the contractor has 
complied with the clause's reporting requirements. If so, the New 
Technology Representative shall certify compliance, obtain the Patent 
Representative's concurrence, and forward the certification to the 
contracting officer. Such determinations generally will require 
consultation with cognizant technical personnel.
    (e) Either the New Technology Representative or the Patent 
Representative, in consultation with the other, may prepare opinions, 
make determinations, and otherwise advise the contracting officer with 
respect to any withholding of payment under paragraph (g) of the New 
Technology clause. Either the New Technology Representative or the 
Patent Representative may represent the contracting officer for the 
purpose of examining the contractor's books, records, and other 
documents in accordance with paragraph (f) of the New Technology clause 
and take corrective action as appropriate. However, no action may be 
taken by either the New Technology Representative or the Patent 
Representative that would:
    (1) Constitute a final decision under the Disputes clause,
    (2) Involve any change or increase in the work required to be 
performed under the contract that is inconsistent with any right of 
appeal provided in FAR 27.304-5 or 14 CFR 1245.1, or
    (3) Otherwise be outside the scope of the contract.
    (f) If it is determined that a contractor or subcontractor does not 
clearly understand the rights and obligations of the parties under a 
patent rights clause, or that its procedures for complying with the 
clause are deficient, a post-award orientation should be conducted to 
explain these rights and obligations (see FAR subpart 42.5). When a 
contractor fails to establish, maintain, or follow effective procedures 
for identifying, disclosing, and, when appropriate, filing patent 
applications on inventions (if such procedures are required by the 
patent rights clause), or after appropriate notice fails to correct any 
deficiency, the contracting officer or a representative may require the 
contractor to make available for examination books, records, and 
documents relating to the contractor's inventions in the same field of 
technology as the contract effort to enable a determination of whether 
there are such inventions and may invoke the withholding of payments 
provision (if any) of the clause. The withholding of payments provision 
(if any) of the patent rights clause or of any other contract clause may 
also be invoked if the contractor fails to disclose a subject invention. 
Significant or repeated failures by a contractor to comply with the 
patent rights obligation in its contracts shall be documented and made a 
part of the general file (see FAR 4.801(c)(3)).
    (g) The contracting officer shall not approve release of final 
payment under the contract and, if applicable, any reserve set aside 
under the withholding provisions of the clause for deficiencies and 
delinquent reporting not corrected as of the time of the submission of 
the final report by the contractor until receipt of the New Technology 
Representative's certification of compliance, and the Patent 
Representative's concurrence, as specified in paragraph (d) of this 
section.

[54 FR 28272, July 5, 1989, as amended at 60 FR 40515, Aug. 9, 1995]



Sec. 1827.375-4   Conveyance of invention rights acquired by the Government.

    (a) When the Government acquires the entire right to, title to, and 
interest in an invention under the clause at 1852.227-70, New 
Technology, a determination of title is to be made in accordance with 
section 305(a) of the National Aeronautics and Space Act of 1958, as 
amended (42 U.S.C. 2457(a)), and reflected in appropriate instruments 
executed by NASA and forwarded to the contractor.
    (b) When the Government acquires the entire right to, title to, and 
interest in an invention other than pursuant to paragraph (a) of this 
section, FAR 27.305-4 shall apply.

[[Page 278]]



Sec. 1827.375-5  Publication and release of invention disclosures.

    FAR 27.305-5 shall apply.



Sec. 1827.376-6  Licensing of background rights to third parties.

    FAR 27.306 shall apply.



              Subpart 1827.4--Rights in Data and Copyrights



Sec. 1827.404  Basic rights in data clause.

    (a) Alternate definition of limited-rights data. When the clause at 
FAR 52.227-14, Rights in Data--General, is used with Alternate I, but 
without Alternate II or Alternate III, all data qualifying as limited-
rights data as defined in Alternate I may be withheld from delivery, and 
any study or report delivered under the contract will contain only 
unlimited rights data that may be disseminated by NASA. If delivery of 
withholdable data is required, Alternate II or Alternate III, as 
applicable, may be used, but any data subject to these alternates will 
be delivered under the applicable limited-rights or restricted-rights 
notices and therefore may not be disclosed outside NASA except to the 
extent permitted by these notices (see FAR 27.404 (d) and (e)).
    (b) Protection of limited-rights data specified for delivery. The 
contracting officer shall consult with the installation's Patent or 
Intellectual Property Counsel regarding any questions concerning the 
delivery of limited-rights data and/or the use of Alternate II that may 
arise:
    (1) From an offeror's response to the provision at FAR 52.227-15, 
Representation of Limited-Rights Data and Restricted Computer Software, 
or
    (2) During negotiations.
    (c) Protection of restricted computer software specified for 
delivery. The contracting officer shall consult with the installation's 
Patent or Intellectual Property Counsel regarding any questions 
concerning the delivery of restricted computer software and/or the use 
of Alternate III that may arise:
    (1) From an offeror's response to the provision at FAR 52.227-15, 
Representation of Limited-Rights Data and Restricted Computer Software, 
or
    (2) During negotiations.
    (d) Copyrighted data. (1) The Contracting Officer shall consult with 
the installation's Patent or Intellectual Property Counsel before 
granting in accordance with FAR 27.404(f)(1)(ii) permission for a 
contractor to claim copyright subsisting in data, other than computer 
software, first produced under the contract. For copyright of computer 
software first produced under the contract, see paragraph (e) of this 
section.
    (2) Obtaining a copyright license of a different scope than set 
forth in paragraph (c)(1) or (2) of the clause at 52.227-14, Rights in 
Data--General, for any contract or class of contracts in accordance with 
either FAR 27.404(f)(1)(iv) or FAR 27.404(f)(2)(i), is permitted only 
with approval of the Procurement Officer and concurrence of the 
installation's Patent or Intellectual Property Counsel.
    (e) Release, publication, and use of data. (1) Paragraph (3) (see 
1827.409(e) and 1852.227-14) is to be added to paragraph (d) of the 
clause at FAR 52.227-14, Rights in Data--General, whenever that clause 
is used in any contract other than one for basic or applied research 
with a university or college. Paragraph (d)(3)(i) of the clause provides 
that the contractor may not assert claim to copyright, publish, or 
release to others computer software first produced in the performance of 
a contract without the contracting officer's prior written permission. 
This is in accordance with NASA policy and procedures for the 
distribution of computer software developed by NASA and its contractors.
    (2) The contracting officer may, in consultation with the 
installation's Patent or Intellectual Property Counsel, grant the 
contractor permission to copyright, publish, or release to others 
computer software first produced in the performance of a contract if--
    (i) The contractor has identified an existing commercial computer 
software product line or proposes a new one and states a positive 
intention of incorporating any computer software first produced under 
the contract into that line, either directly itself or through a 
licensee;

[[Page 279]]

    (ii) The contractor has made, or will be required to make, 
significant contributions to the development of the computer software by 
co-funding or by cost-sharing, or by contributing resources (including 
but not limited to agreement to provide continuing maintenance and 
update of the software at no cost for Governmental use); or
    (iii) The concurrence of a cognizant official named in NASA 
Management Instruction 2210.2 or the Director, Technology Utilization 
Division, NASA Headquarters, has been obtained.
    (3) The contractor's request for permission in accordance with 
paragraph (e)(1) of this section may be made either before contract 
award or during contract performance. Any permission granted in 
accordance with paragraph (e)(2)(i) or (ii) of this section, shall be by 
express contract provision (or amendment) overriding paragraph (d)(3) of 
this section, rather than by deleting paragraph (d)(3) from the clause. 
Any permission granted in accordance with paragraph (d)(2)(iii) of this 
section may be either by deleting paragraph (d)(3) or by special 
contract provision, as appropriate. Any contract provision relating to 
any permission granted in accordance with paragraph (2)(i) or (2)(ii) of 
this section may contain appropriate assurances that the computer 
software will be incorporated into an existing or proposed new 
commercial computer software product line within a reasonable time and/
or that the agreed contributions to the Government are fulfilled, with 
contingencies enabling the Government to obtain the right to distribute 
the software for commercial use, including the right to obtain 
assignment of copyright where applicable, in order to prevent the 
computer software from being suppressed or abandoned by the contractor. 
Also, when any permission to copyright is granted, any copyright license 
retained by the Government shall be of the same scope as set forth in 
paragraph (c)(1) of the clause (see also FAR 27.404(f)(1)) and without 
any obligation of confidentiality on the part of the Government, unless 
in accordance with paragraph (e)(2)(ii) of this section the 
contributions of the Contractor may be considered ``substantial'' for 
the purposes of FAR 27.408 (i.e., approximately 50 percent), in which 
case rights consistent with FAR 27.408 may be negotiated for the 
computer software in question.
    (4) If the contractor has not been granted permission to copyright 
in accordance with paragraphs (e)(1) and (e)(2) of this section, 
paragraph (d)(3)(ii) of the clause at FAR 52.227-14, Rights in Data--
General (as modified by 1852.227-14), enables NASA to direct the 
contractor to assert claim to copyright in computer software first 
produced under the contract and to assign, or obtain the assignment of, 
such copyright to the Government or its designee. The Contracting 
Officer may, in consultation with the installation patent or 
intellectual property counsel, so direct the contractor in situations 
where copyright protection is considered necessary in furtherance of 
agency mission objectives, needed to support specific agency programs, 
or necessary to meet statutory requirements.
    (5) In order to insure consistency with copyright law, paragraph 
(d)(3)(iii) clarifies that the word ``establish'' in FAR 52.227-14, 
Rights in Data--General shall be construed as ``assert'' when used with 
reference to a claim to copyright.
    (f) Unauthorized marking of data. The contracting officer shall 
consult with the installation's Patent or Intellectual Property Counsel 
before taking any action regarding unauthorized markings of data under 
paragraph (e) of the clause at FAR 52.227-14, Rights in Data--General.
    (g) Omitted or incorrect notices. The contracting officer shall 
consult with the installation's Patent or Intellectual Property Counsel 
before agreeing to add or correct any markings on data under paragraph 
(f) of the clause at FAR 52.227-14, Rights in Data--General.

[54 FR 28272, July 5, 1989, as amended at 56 FR 12458, Mar. 26, 1991; 60 
FR 40515, Aug. 9, 1995; 60 FR 47312, Sept. 12, 1995]



Sec. 1827.405  Other data rights provisions.

    (a) Acquisition of existing computer software. (1) When the clause 
at FAR 52.227-19, Commercial Computer Software--Restricted Rights, is 
used, NASA paragraph (e) (see 1827.409(f))

[[Page 280]]

may be added to receive updates, correction notices, consultation 
information, and other similar information on any computer software 
delivered under the purchase order or contract by authorizing the 
contracting officer or the contract technical representative/user to 
sign any vendor-supplied agreements, registration forms, or cards and 
return them directly to the vendor. This procedure is to facilitate 
receiving applicable information and is not intended to alter any NASA 
rights or obligations set forth in the clause or elsewhere in the 
contract. The price, schedule, and other terms, if any, are to be 
specified in the purchase order or contract.
    (2) When the clause at 52.227-19, Commercial Computer Software--
Restricted Rights, is used, NASA paragraph (f) (see 1827.409(g)) may be 
added to incorporate applicable portions of the contractor's standard 
commercial license or lease agreement into the purchase order/contract 
to the extent consistent with the clause, Federal laws, standard 
industry practices, and the FAR.
    (3) Instead of the clause at FAR 52.227-19, Commercial Computer 
Software--Restricted Rights (either with or without additional 
paragraphs (e) and/or (f)), the contracting officer may use the clause 
at 1852.227-86, Commercial Computer Software--Licensing. This clause is 
particularly useful when there are multiple computers on which the 
computer software may be used, but simultaneous use is prohibited or 
restricted in the vendor/contractor standard commercial software license 
to be incorporated in and made part of the purchase order/contract. It 
also automatically adopts terms in the vendor/contractor standard 
commercial license that may be less restrictive than those set forth in 
the clause at FAR 52.227-19 without having to customize that clause or 
modify the purchase order/contract. In addition, it enables the vendor/
contractor's standard marking to be used without requiring additional 
markings on the software.
    (b) Contracts awarded under the Small Business Innovative Research 
(SBIR) Program. If, during the performance of an SBIR contract (Phase I 
or Phase II), the need arises for NASA to obtain delivery of restricted 
computer software as defined in the clause at FAR 52.227-20, Rights in 
Data--SBIR Program, and the contractor agrees to such delivery, the 
restricted computer software may be acquired with restricted rights by 
modification of the contract or under an agreement incorporated in and 
made part of the contract, using the restricted rights set forth in FAR 
27.404(e) and the related restrictions as a guide.
    (c) Production of special works. Paragraph (f) of the clause at 48 
CFR 1852.227-17 is to be added to the clause at FAR 52.227-17, Rights in 
Data--Special Works, whenever that clause is used in any NASA contract.

[54 FR 28272, July 5, 1989, as amended at 60 FR 40515, Aug. 9, 1995; 60 
FR 47312, Sept. 12, 1995; 61 FR 5314, Feb. 12, 1996]



Sec. 1827.406  Acquisition of data.

    (a) General. When specifying data delivery requirements in 
accordance with FAR 27.406(a), requirements for delivering technical 
data relating to standard commercial items, components, or processes 
should be kept to the absolute minimum consistent with the purpose for 
which they are being procured. Normally, a vendor's manuals for 
installation, operation, or maintenance and repair and/or form, fit, and 
function data are adequate.
    (b) Reports of work. (1) In addition to any other data delivery 
requirements set forth in the contract in accordance with FAR 27.406, 
contractors normally should be required to furnish reports of work 
performed under research and development contracts (fixed-price and cost 
reimbursement) and also may be required to furnish them in cost-
reimbursement supply contracts if they are considered desirable for 
monitoring contract performance. This purpose shall be achieved by 
including the following general requirements, modified as needed to meet 
the particular requirements of the contract, in the section of the 
contract specifying data delivery requirements:
    (i) Monthly progress reports. The contractor shall submit separate 
monthly progress reports of all work accomplished during each month of 
contract performance. Reports shall be in narrative form, brief, and 
informal. They

[[Page 281]]

shall include a quantitative description of progress, an indication of 
any current problems that may impede performance, proposed corrective 
action, and a discussion of the work to be performed during the next 
monthly reporting period. (Normally, this requirement should not be used 
in contracts with nonprofit organizations.)
    (ii) Quarterly progress reports. The contractor shall submit 
separate quarterly reports of all work accomplished during each three-
month period of contract performance. In addition to factual data, these 
reports shall include a separate analysis section interpreting the 
results obtained, recommending further action, and relating occurrences 
to the ultimate objectives of the contract. Sufficient diagrams, 
sketches, curves, photographs, and drawings shall be included to convey 
the intended meaning.
    (iii) Final report. The contractor shall submit a final report that 
documents and summarizes the results of the entire contract, including 
recommendations and conclusions based on the experience and results 
obtained. The final report shall include tables, graphs, diagrams, 
curves, sketches, photographs, and drawings in sufficient detail to 
explain comprehensively the results achieved under the contract.
    (iv) Report Documentation Page. The contractor shall include a 
completed Report Documentation Page (SF 298) as the final page of each 
report submitted in accordance with subdivisions (b)(1) (i) through 
(iii) of this section.
    (v) Submission. The required numbers of copies of the reports 
specified in subdivisions (i) through (iii) shall, as defined in the 
clause at 1852.235-70, be submitted to the contracting officer technical 
representative (COTR) in the absence of other instructions from the 
requesting activity. In addition, a reproducible copy and a printed, or 
reproduced, copy of the reports shall be sent to the NASA Center for 
AeroSpace Information (CASI), Attn: Accessioning Department, 800 
Elkridge Landing Road, Linthicum Heights, MD 21090-2934.
    (2) The contracting officer shall consider the desirability of 
providing reports on the completion of significant units or phases of 
work, in addition to periodic reports and reports on the completion of 
the contract. The data delivery requirements section of the contract 
shall also list other data to be delivered and provide, as necessary, 
specific instructions regarding delivery, submission dates, report 
numbering, numbers of copies to be submitted, distribution lists, and 
any other information to ensure distribution of the reports.

[54 FR 28272, July 5, 1989, as amended at 56 FR 12458, Mar. 26, 1991; 56 
FR 48747, Sept. 26, 1991; 57 FR 58720, Dec. 11, 1992; 60 FR 40515, Aug. 
9, 1995]



Sec. 1827.407  Rights to technical data in successful proposals.

    NASA may obtain rights in technical data (but not commercial and 
financial information) contained in a solicited or unsolicited proposal 
upon which a contract award is based, only by specific agreement with 
the prospective contractor in accordance with the procedures of FAR 
27.407 and the clause at FAR 52.227-23, Rights to Proposal Data 
(Technical).

[54 FR 39373, Sept. 26, 1989]



Sec. 1827.408   Cosponsored research and development activities.

    The contracting officer shall consult with the installation's Patent 
or Intellectual Property Counsel before limiting the acquisition of or 
acquiring less than unlimited rights to any data developed under 
contracts involving cosponsored research and development activities in 
accordance with FAR 27.408.



Sec. 1827.409   Solicitation provisions and contract clauses.

    (a) Alternate I is to be used with the FAR clause at 52.227-14, 
Rights in Data--General, only with approval of the Procurement Officer 
and concurrence of the installation's Patent or Intellectual Property 
Counsel. An example of its use is where the principal purpose of the 
contract (such as a contract for basic or applied research) does not 
involve the development, use, or delivery of items, components, or 
processes that are intended to be acquired for use by or for the 
Government (either under the contract in question or

[[Page 282]]

under any anticipated follow-on contracts relating to the same subject 
matter).
    (b) The specific purposes for the release of limited-rights data 
outside the Government set forth in subdivisions (d)(1) (i) through (v) 
of FAR 27.404 are to be added to the Limited-Rights Notice of 
subparagraph (g)(2) of Alternate II of the clause at FAR 52.227-14, 
Rights in Data--General. However, the contracting officer may, upon 
consultation with the installation's Patent or Intellectual Property 
Counsel, make deletions from the specific purposes listed. If all are 
deleted, the word ``None'' must be inserted. Additions to those specific 
purposes listed may be made only with the approval of the Procurement 
Officer and concurrence of the installation's Patent or Intellectual 
Property Counsel.
    (c) The contracting officer shall consult with the installation's 
Patent or Intellectual Property Counsel regarding the acquisition of 
restricted computer software with greater or lesser rights than those 
set forth in Alternate III of the clause at FAR at 52.227-14, Rights in 
Data--General, in accordance with FAR 27.404(e)(2). Where it is 
impractical to actually modify the notice of Alternate III, this may be 
done by express reference in a separate clause in the contract or by a 
collateral agreement that addresses the change in the restricted rights.
    (d) Use of Alternate IV with the clause at FAR 52.227-14, Rights in 
Data--General, in any contract other than a contract for basic or 
applied research to be performed solely by a college or university on 
campus (but not for the management or operation of Government 
facilities) is permitted only with approval of the Procurement Officer 
and concurrence of the installation's Patent or Intellectual Property 
Counsel.
    (e) In accordance with 1827.404(e)(1), the contracting officer shall 
add subparagraph (3) set forth in 1852.227-14 to paragraph (d) of the 
clause at FAR 52.227-14, Rights in Data--General, except in 
solicitations and contracts for basic or applied research with 
universities or colleges.
    (f) In accordance with 1827.405(a)(1), the contracting officer shall 
add paragraph (e) set forth in 1852.227-19(a) to the clause at FAR 
52.227-19, Commercial Computer Software--Restricted Rights, when it is 
contemplated that updates, correction notices, consultation information, 
and other similar items of information relating to commercial computer 
software delivered under a purchase order or contract are available and 
their receipt can be facilitated by signing a vendor supplied agreement, 
registration forms, or cards and returning them directly to the vendor.
    (g) In accordance with 1827.405(a)(2), the contracting officer shall 
add paragraph (f) set forth at 1852.227-19(b) to the clause at FAR 
52.227-19, Commercial Computer Software--Restricted Rights, when 
portions of a contractor's standard commercial license or lease 
agreement consistent with the clause, Federal laws, standard industry 
practices, and the FAR are to be incorporated into the purchase order or 
contract.
    (h) In accordance with 1827.405(a)(3), the contracting officer shall 
use the clause at 1852.227-86, Commercial Computer Software--Licensing, 
in lieu of FAR 52.227-19, Commercial Computer Software--Restricted 
Rights, when it is considered appropriate for the acquisition of 
existing computer software in accordance with FAR 27.405(b)(2).
    (i) In accordance with 1827.406(b)(1)(v), the contracting officer 
shall insert the clause 1852.235-70, Center for AeroSpace Information 
(November 1992), in all research and development contracts and in cost-
reimbursement supply contracts involving research and development work 
which require the delivery of reports or data to CASI.

[54 FR 28272, July 5, 1989, as amended at 55 FR 27089, June 29, 1990; 57 
FR 58720, Dec. 11, 1992; 60 FR 40515, Aug. 9, 1995]

    Editorial Note: At 60 FR 40515, Aug. 9, 1995, the National 
Aeronautics and Space Administration attempted to amend paragraph (i) of 
section 1827.409 by removing the word ``at''; however, ``at'' does not 
exist at this location.

[[Page 283]]



   Subpart 1827.6--Foreign License and Technical Assistance Agreements

    Source: 54 FR 39373, Sept. 26, 1989, unless otherwise noted.
1827.670  Space Station Freedom technical data.



Sec. 1827.670-1  Policy.

    NASA and its contractors shall comply with the International Traffic 
in Arms Regulations (ITAR), 22 CFR parts 120 through 130 (Subchapter M) 
with respect to the transfer of technical data to any International 
Space Station Freedom Program multilateral partner. When authorized by 
the Directive entitled, ``Space Station Level I Directive--Subject: 
Space Station Technology Transfer Control--dated March 21, 1989'', 
certain technical data in support of NASA's International Space Station 
Freedom Program may be exported to a foreign recipient specified in 
writing by the contracting officer. Contracting officers, or designees, 
will assure that any transfer of data to a foreign recipient will be in 
compliance with the Directive.

54 FR 39373, Sept. 26, 1989, as amended at 60 FR 40515, Aug. 9, 1995]



Sec. 1827.670-2  Contract clause.

    The contracting officer shall insert the clause at NFS 1852.227-87, 
Transfer of Technical Data Under Space Station International Agreements, 
in all solicitations, contracts, and purchase orders in support of Space 
Station Freedom Program activities that may involve transfer of 
technical data subject to the International Traffic in Arms Regulations, 
22 CFR parts 120 through 130 (Subchapter M) in accordance with the 
``Space Station Level I Directive--Subject: Space Station Technology 
Transfer Control--dated March 21, 1989.''

[54 FR 39373, Sept. 26, 1989, as amended at 57 FR 40855, Sept. 8, 1992]



PART 1828--BONDS AND INSURANCE--Table of Contents




                          Subpart 1828.1--Bonds

Sec.
1828.101  Bid guarantees.
1828.101-70  NASA solicitation provision.
1828.102  Performance and payment bonds for construction contracts.
1828.102-1  General.
1828.102-70  Solicitation provision.
1828.106  Administration.
1828.106-1  Bonds and bond related forms.
1828.106-6  Furnishing information.

                        Subpart 1828.2--Sureties

1828.202  Acceptability of corporate sureties.

                        Subpart 1828.3--Insurance

1828.305  Overseas workers' compensation and war-hazard insurance.
1828.307  Insurance under cost-reimbursement contracts.
1828.307-2  Liability.
1828.307-70  Insurance of industrial facilities.
1828.309  Contract clauses for workers' compensation insurance.
1828.311  Solicitation provision and contract clause on liability 
          insurance under cost-reimbursement contracts.
1828.311-2  Contract clause.
1828.311-270  NASA contract clause.
1828.370  Fixed-price contract clauses.
1828.371  Clauses for cross-waivers of liability for Space Shuttle 
          services, Expendable Launch Vehicle (ELV) launches, and Space 
          Station activities.
1828.372  Clause for minimum insurance coverage.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28281, July 5, 1989, unless otherwise noted.



                          Subpart 1828.1--Bonds

1828.101  Bid guarantees.



Sec. 1828.101-70   NASA solicitation provision.

    In accordance with FAR 28.101, the contracting officer shall insert 
the provision at 1852.228-73, Bid Bond, in construction solicitations 
where offers are expected to exceed $25,000, and a performance bond or a 
performance and payment bond is required. The contracting officer may 
increase the amount of the bid bond to protect the Government from loss, 
as long as the amount does not exceed $3 million. This provision may be 
used in other than construction procurements if the requirements of FAR 
28.103 have been complied with.

[[Page 284]]

1828.102  Performance and payment bonds for construction contracts.



Sec. 1828.102-1   General.

    NASA contractors that, in the course of contract performance, will 
acquire by subcontract construction work determined by NASA to be 
subject to the Miller Act, but that are not required under FAR 28.102 to 
furnish Miller Act bonds, shall be required to obtain performance and 
payment bonds from their subcontractors (see 1828.106-1). The 
contracting officer shall establish the penal amount in accordance with 
FAR 28.102-2.



Sec. 1828.102-70   Solicitation provision.

    In accordance with FAR 28.102, except as provided therein, the 
contracting officer shall insert a provision substantially as stated at 
1852.228-74, Payment and Performance Bonds, in construction 
solicitations where offers are expected to exceed $25,000. The penal 
amount of the performance bond may be decreased in accordance with FAR 
28.102-2(a). The contracting officer may change the word ``may'' in the 
first sentence of subparagraphs (a)(2) and (b)(2) to ``shall'' if the 
procurement contemplates options or additive items (see 1836.303-70).
1828.106  Administration.



Sec. 1828.106-1  Bonds and bond related forms.

    When the contracting officer determines that performance or payment 
bonds are required from construction subcontractors under any non-
construction contract (see 1828.102-1), the bonds shall be provided on 
SF 25, Performance Bond, and SF 25A, Payment Bond. These forms shall be 
modified to name the NASA prime contractor as well as the United States 
of America as obligees.

[57 FR 58720, Dec. 11, 1992]



Sec. 1828.106-6   Furnishing information.

    (a) The contracting officer is designated, in accordance with FAR 
28.106-6(c), to furnish a certified copy of the payment bond and the 
contract for which it was given upon receipt of an appropriate affidavit 
from the requestor.
    (b) The contracting officer shall obtain the concurrence of the 
Office of Chief Counsel before releasing any documents.



                         Subpart 1828.2 Sureties



Sec. 1828.202   Acceptability of corporate sureties.

(NASA supplements paragraph (a)).
    (a) Contracting officers may obtain access to the Department of 
Treasury Circular 570 through the Circular 570 Bulletin Board, telephone 
(202) 874-7214. Use the following communications software 
specifications:

Baud rate...........................................................2400
Parity..............................................................None
No. of Data Bits.......................................................8
No. of Stop Bits.......................................................1
Duplex..............................................................Full

[61 FR 47081, Sept. 6, 1996]



                        Subpart 1828.3--Insurance



Sec. 1828.305  Overseas workers' compensation and war-hazard insurance.

    (a) Waiver of Defense Base Act. Applications for waivers under FAR 
28.305(d) shall be submitted to the Administrator through the Associate 
Administrator for Procurement. The application shall include-
    (1) The contractor's name;
    (2) The contractor's business mailing address;
    (3) The contract number;
    (4) The date of award;
    (5) The geographic location where the contract will be performed;
    (6) The name of the insurance company providing the Defense Base Act 
coverage;
    (7) The nationality of the employees to whom the waiver is to apply; 
and
    (8) The reason for the waiver.
    (b) When the Defense Base Act is waived. (1) The decision under FAR 
28.305(e) as to whether (i) the costs of the liability or (ii) the 
reasonable costs of insurance against it shall be allowed as a cost 
under the contract may be made by the Associate Administrator for 
Procurement or by a designee.
    (2) The Schedule of each contract containing the clause at 1852.228-
77, Reimbursement for War-Hazard Losses, shall contain an estimated cost 
for

[[Page 285]]

war-hazard losses, derived in accordance with paragraph (b)(2)(i) of 
this section, and a statement similar to that set forth in paragraph 
(b)(2)(ii) of this section:
    (i) The estimated cost for war-hazard losses shall be based on 
estimates arrived at in the light of experience, taking into account the 
number of the contractor's employees subject to protection for war-
hazard risks, the level of benefits applicable to them, their location, 
and the nature of the risks to which they are exposed. The amount 
allotted to the contract shall initially be kept as small as reasonably 
feasible. As reports are received indicating any need to increase the 
allotment to the contract, they shall be evaluated and the allotment 
increased as necessary. When negotiating for the inclusion in the 
contract of provisions applicable to war-hazard risks, the contracting 
officer may include provisions concerning the types of foreign nationals 
employed by the contractor and the level of benefits applicable to them, 
and other pertinent provisions relating to the manner in which the 
program will function to the benefit of all concerned. Advance 
agreements under FAR 31.109 may also be advantageous with respect to the 
levels of proof considered acceptable to justify the contractor's 
commencing payments and being reimbursed for them before the contractor 
is able to settle its obligation.
    (ii) ``The portion of this contract providing for the contractor to 
afford protection to its employees and subcontractors to their employees 
against war-hazard risks (see the clauses at 52.228-4 of the Federal 
Acquisition Regulation (FAR) and 1852.228-77 of the NASA FAR Supplement) 
is on a cost-reimbursement, no-fee basis, notwithstanding the basis of 
the remainder of the contract.''
1828.307  Insurance under cost-reimbursement contracts.



Sec. 1828.307-2  Liability.

    (a) In accordance with FAR 28.307-2(b)(2), the special circumstances 
requiring property damage liability insurance are those where 
(otherwise, prior approval for purchase of property damage liability 
insurance must be obtained from the Associate Administrator for 
Procurement)--
    (1) A commingling of operations permits property damage coverage at 
a nominal cost to NASA under insurance carried by the contractor in the 
course of its commercial operations; or
    (2) The contractor is engaged in the handling of high explosives or 
in extra hazardous research and development activities undertaken in 
populated areas.
    (b) The Government normally will assume the risk of a contractor's 
uninsured third-party liability to the extent provided for by the clause 
at FAR 52.228-7, Insurance--Liability to Third Persons.



Sec. 1828.307-70  Insurance of industrial facilities.

    When industrial facilities are provided by the Government under a 
facilities contract or a lease, the contract or lease shall require that 
during the period of construction, installation, alteration, repair, or 
use, and at any other time as directed by the installation concerned, 
the contractor or lessee shall insure or otherwise provide approved 
security for liabilities to third persons (including employees of the 
contractor or lessee) in the manner and to the same extent as required 
in FAR 28.307-2.



Sec. 1828.309  Contract clauses for workers' compensation insurance.

    The contracting officer shall insert the clause at 1852.228-77, 
Reimbursement for War-Hazard Losses, in all solicitations and contracts 
containing the clause at FAR 52.228-4, if the Associate Administrator 
for Procurement determines that the contractor shall not purchase 
insurance against the assumed liability to the waived employees and 
their beneficiaries (see 1828.305(b)).
1828.311  Solicitation provision and contract clause on liability 
insurance under cost-reimbursement contracts.



Sec. 1828.311-2  Contract clause.

    The contracting officer shall insert the clause at FAR 52.228-7, 
Insurance--

[[Page 286]]

Liability to Third Persons, as prescribed in FAR 28.311-2 unless waived 
by the procurement officer.

[56 FR 12459, Mar. 26, 1991]



Sec. 1828.311-270  NASA contract clause.

    The contracting officer shall insert the clause at 1852.228-71, 
Aircraft Flight Risks, in all cost-reimbursement contracts for the 
development, production, modification, maintenance, or overhaul of 
aircraft, or otherwise involving the furnishing of aircraft to the 
contractor, except when the aircraft are covered by a separate bailment.



Sec. 1828.370  Fixed-price contract clauses.

    (a) The contracting officer shall insert the clause at 1852.228-70, 
Aircraft Ground and Flight Risk, in all negotiated fixed-price contracts 
for the development, production, modification, maintenance, or overhaul 
of aircraft, or otherwise involving the furnishing of aircraft to the 
contractor, except as provided in paragraph (b) of this section, unless 
the aircraft are covered by a separate bailment. See the clause preface 
for directions for modifying the clause to accommodate various 
circumstances.
    (b) The Government need not assume the risk of damage to, or loss or 
destruction of, aircraft as provided by the clause at 1852.228-70 if the 
best estimate of premium costs that would be included in the contract 
price for insurance coverage for such damage, loss, or destruction at 
any plant or facility is less than $500. If it is determined not to 
assume this risk, the clause at 1852.228-70 shall not be made a part of 
the contract, and the cost of necessary insurance to be obtained by the 
contractor to cover this risk shall be considered in establishing the 
contract price. In such cases, however, if performance of the contract 
is expected to involve the flight of Government-furnished aircraft, the 
substance of the clause at 1852.228-71, Aircraft Flight Risks, suitably 
adapted for use in a fixed-price contract, shall be used.
    (c) When the clause at 1852.228-70 is used, the term ``Contractor's 
premises'' shall be expressly defined in the contract Schedule and shall 
be limited to places where aircraft may be located during and for the 
performance of the contract. Contractor's premises may include, but are 
not limited to, those owned or leased by the contractor or those for 
which the contractor has a permit, license, or other right of use either 
exclusively or jointly with others, including Government airfields.



Sec. 1828.371  Clauses for cross-waivers of liability for Space Shuttle services, Expendable Launch Vehicle (ELV) launches, and Space Station activities.

    (a) In agreements covering Space Shuttle services, certain ELV 
launches, Space Station activities, NASA and other signatories (the 
Parties) agree not to bring claims against each other for any damage to 
property or for injury or death of employees that occurs during the time 
such a cross-waiver is in effect. These agreements involving NASA and 
other Parties include, but are not limited to, Memoranda of 
Understanding with foreign governments, Launch Services Agreements, and 
other agreements for the use of NASA facilities. These agreements 
require the Parties to flow down the cross-waiver provisions to their 
related entities so that contractors, subcontractors, customers, and 
other users of each Party also waive their right to bring claims against 
other Parties and their similarly related entities for damages arising 
out of activities conducted under the agreements. The purpose of the 
clauses prescribed in this section is to flow down the cross-waivers to 
NASA contractors and subcontractors.
    (b) The contracting officer shall insert the clause 1852.228-72, 
Cross-Waiver of Liability for Space Shuttle Services, in solicitations 
and contracts of $100,000 or more when the work to be performed involves 
``Protected Space Operations'' (applicable to the Space Shuttle) as that 
term is defined in the clause. If Space Shuttle services under the 
contract are being conducted in support of the Space Station program, 
the contracting officer shall insert the clause prescribed by paragraph 
(d) of this section and designate application of that clause to those 
particular activities.
    (c) The contracting officer shall insert the clause at 1852.228-78, 
Cross-

[[Page 287]]

Waiver of Liability for NASA Expendable Launch Vehicle (ELV) Launches, 
in solicitations and contracts of $100,000 or more for the acquisition 
of ELV launch services when the service is being acquired by NASA 
pursuant to an agreement described in paragraph (a) of this section. If, 
under a contract that covers multiple launches, only some of the 
launches are for payloads provided pursuant to agreements, an additional 
clause shall be inserted in the contract to designate the particular 
launches to which this clause applies. If a payload is being launched by 
use of an ELV in support of the Space Station program, the contracting 
officer shall insert the clause prescribed by paragraph (d) of this 
section and designate application of that particular launch.
    (d) The contracting officer shall insert the clause at 1852.228-76, 
Cross-Waiver of Liability for Space Station Activities, in solicitations 
and contracts of $100,000 or more when the work is to be performed 
involves ``Protected Space Operations'' (relating to the Space Station) 
as that term is defined in the clause.
    (e) At the contracting officer's discretion, the clauses prescribed 
by paragraphs (b), (c), and (d) of this section may be used in 
solicitations, contracts, new work modifications, or extensions, to 
existing contracts under $100,000 involving Space Shuttle activities, 
ELV launch services, or Space Station activities, respectively, in 
appropriate circumstances. Examples of such circumstances are when the 
value of contractor property on a Government installation used in 
performance of the contract is significant, or when it is likely that 
the contractor or subcontractor will have its valuable property exposed 
to risk or damage caused by other participants in the Space Shuttle 
services, ELV launches, or Space Station activities.

[59 FR 65729, Dec. 21, 1994]



Sec. 1828.372  Clause for minimum insurance coverage.

    In accordance with FAR 28.306(b) and 28.307, the contracting officer 
may insert a clause substantially as stated at 1852.228-75, Minimum 
Insurance Coverage, in fixed-price solicitations and contracts requiring 
performance on a government installation and in cost-reimbursement 
contracts. The contracting officer may modify the clause to require 
additional coverage, such as vessel liability, and higher limits if 
appropriate for a particular procurement.



PART 1829--TAXES--Table of Contents




                         Subpart 1829.1--General

Sec.
1829.101  Resolving tax problems.

                  Subpart 1829.2--Federal Excise Taxes

1829.203  Other Federal tax exemptions.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28283, July 5, 1989, unless otherwise noted.



                         Subpart 1829.1--General



Sec. 1829.101  Resolving tax problems.

    (a) The Office of General Counsel (Code G) shall (1) represent NASA 
in all negotiations under FAR Part 29 and (2) keep the Associate 
Administrator for Procurement fully informed on their status.
    (b) Communications with the Department of Justice for representation 
or intervention in proceedings concerning taxes shall be made only by 
the General Counsel.
    (c) Matters involving foreign taxes requiring the assistance of 
other executive departments shall be forwarded to the General Counsel 
for appropriate action.
    (d) Tax problems that cannot be solved readily by reference to FAR 
part 29 shall be forwarded to the General Counsel through the 
installation's Office of Chief Counsel. The forwarding of tax problems 
to the General Counsel is particularly important when--
    (1) The amount of tax actually or potentially involved is 
substantial;
    (2) The legal incidence of a tax appears to be upon the United 
States or its property, a specific exemption pertinent to the 
transaction appears to exist, or a State or local tax appears to have a 
direct effect upon a transaction in interstate commerce;
    (3) Judicial or administrative action against a contractor is 
threatened;

[[Page 288]]

    (4) The imposition or potential imposition of a tax is the result of 
an amendment of a tax law or a change of position by the tax 
authorities; or
    (5) The possibility exists of obtaining refunds of taxes previously 
paid.
    (e) Regarding tax problems, the initiating office or intervening 
offices shall forward the following material to the General Counsel:
    (1) A comprehensive statement of pertinent facts, including 
documents and correspondence.
    (2) A copy of the contract.
    (3) A thorough review of the legal issues involved and recommended 
action.
    (4) If appropriate, a statement of the problem's effects on 
procurement policies and procedures, with recommendations.
    (f) Copies of tax-related correspondence shall be sent to the 
Associate Administrator for Procurement.



                  Subpart 1829.2--Federal Excise Taxes



Sec. 1829.203  Other Federal tax exemptions.

    (a) The Associate Administrator for Procurement has obtained a 
permit from the Bureau of Alcohol, Tobacco, and Firearms (Treasury 
Department) enabling NASA and its contractors to purchase spirits (e.g., 
specially denatured spirits) tax-free for nonbeverage Government use. 
Installations can obtain copies of the permit from the Contract 
Management Division (Code HK) at NASA Headquarters.
    (b) When purchasing spirits for use by NASA personnel, the 
contracting officer shall attach a copy of the permit to the contract. 
Upon receipt of the spirits, the permit shall be returned to the 
contracting officer unless future orders are anticipated.
    (c) When a NASA contractor requires spirits to perform a NASA 
contract, the contracting officer shall furnish the contractor a copy of 
the permit to provide its vendor. Upon receipt of the spirits, the 
contractor shall return the permit to the contracting officer unless 
future orders are anticipated. In any event, the permit shall be 
returned upon completion of the contract.
    (d) To comply with 26 U.S.C. 5271(g), the procurement officer shall 
post a copy of the permit for inspection.

[54 FR 28283, July 5, 1989, as amended at 59 FR 66270, Dec. 23, 1994; 60 
FR 40515, Aug. 9, 1995]



PART 1830--COST ACCOUNTING STANDARDS--Table of Contents




                         Subpart 1830.1--General

Sec.
1830.101  Cost Accounting Standards.

                Subpart 1830.2--CAS Program Requirements

1830.201-5  Waiver.

 Subpart 1830.70--Facilities Capital Employed for Facilities in Use or 
                    for Facilities Under Construction

1830.7001  Facilities capital employed for facilities in use.
1830.7001-1  Contract facilities capital estimates.
1830.7001-2  Pre-award facilities capital applications.
1830.7001-3  Post-award facilities capital applications.
1830.7002  Facilities capital employed for facilities under 
          construction.
1830.7002-1  Definitions.
1830.7002-2  Measurement.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28284, July 5, 1989, unless otherwise noted.



                         Subpart 1830.1--General



Sec. 1830.101  Cost Accounting Standards.

    (a) To ensure uniform administration of CAS requirements, NASA has 
determined to consider all of its contracts as ``national defense'' 
contracts for CAS purposes, whether or not they meet the definition of 
``national defense'' in FAR 2.101.
    (b)  [Reserved]



                Subpart 1830.2--CAS Program Requirements



Sec. 1830.201-5  Waiver.

    After the contracting officer has made the determination required by

[[Page 289]]

FAR 30.201-5(a), the procurement officer shall forward all requests for 
waiver of CAS requirements to the Associate Administrator for 
Procurement (Code HC) for approval.



 Subpart 1830.70--Facilities Capital Employed for Facilities in Use or 
                    for Facilities Under Construction

    Source: 57 FR 836, Jan. 9, 1992, unless otherwise noted.
1830.7001  Facilities capital employed for facilities in use.



Sec. 1830.7001-1   Contract facilities capital estimates.

    (a) After the appropriate Forms Cost Accounting Standards Board-Cost 
of Money (CASB-CMF) have been analyzed and CMFs have been developed, the 
contracting officer is in a position to estimate the facilities capital 
cost of money and capital employed for a contract proposal. DD Form 1861 
``Contract Facilities Capital and Cost of Money'' has been provided for 
this purpose and, when properly completed, becomes a connecting link 
between the Forms CASB-CMF and any applicable agency structured approach 
to determination of profit or fee objectives. An evaluated contract cost 
breakdown reduced to the contracting officer's pre-negotiation cost 
objective must be available. The procedure is similar to applying 
overhead rates to appropriate overhead allocation bases to determine 
contract overhead costs.
    (b) DD Form 1861 provides for listing indirect cost pools and 
direct-charging service centers (if used) in the same structure they 
appear on the contractor's cost proposal and Forms CASB-CMF. The 
structure and allocation base units-of-measure must be compatible on all 
three displays. The base for each indirect cost pool must be broken down 
by year to match each separate Form CASB-CMF. Appropriate contract 
overhead allocation base data are extracted by year from the evaluated 
cost breakdown or pre-negotiation cost objective, and are listed against 
each separate Form CASB-CMF. Each allocation base is multiplied by its 
corresponding cost of money factor, to get the Facilities Capital Cost 
of Money estimated to be incurred each year. The sum of these products 
represents the estimated Contract Facilities Capital Cost of Money for 
the Year's effort. Total contract facilities cost of money is the sum of 
the yearly amounts.



Sec. 1830.7001-2   Pre-award facilities capital applications.

    Facilities Capital Cost of Money as determined above is applied in 
establishing cost and price objectives as follows:
    (a) Cost objective. This special, imputed cost of money shall be 
used, together with normal, booked costs, in establishing a cost 
objective or the target cost when structuring an incentive type 
contract. Target costs thus established at the outset, shall not be 
adjusted as actual cost of money rates become available for the periods 
during which contract performance takes place.
    (b) Profit objective. Cost of Money shall not be included as part of 
the cost base when measuring the contractor's effort in connection with 
establishing a pre-negotiation profit objective. The cost base for this 
purpose shall be restricted to normal, booked costs.



Sec. 1830.7001-3   Post-award facilities capital applications.

    (a) Interim billings based on costs incurred. Contract Facilities 
Capital Cost of Money may be included in cost reimbursement and progress 
payment invoices. The amount that qualifies as cost incurred for 
purposes of the Allowable Cost and Payment or Progress Payment clause of 
the contract is the result of multiplying the incurred portions of the 
indirect cost pool allocation bases by the latest available Cost of 
Money Factors. Like applied overhead at forecasted overhead rates, such 
computations are interim estimates subject to adjustment. As each year's 
data are finalized by computation of the actual Cost of Money Factors 
under CAS 414 and FAR 31.205-10, the new factors should be used to 
calculate contract facilities cost of money for the next accounting 
period.
    (b) Final settlement. Contract Facilities Capital Cost of Money for 
final cost determination or repricing is

[[Page 290]]

based on each year's final Cost of Money Factors determined under CAS 
414 and supported by separate Form CASB-CMF. Contract cost must be 
separately computed in a manner similar to yearly final overhead rates. 
Also like overhead costs, the final settlement will include an 
adjustment from interim to final contract cost of money. However, 
estimated or target cost will not be adjusted.
1830.7002  Facilities capital employed for facilities under 
construction.



Sec. 1830.7002-1   Definitions.

    The following definitions have been taken or developed from Cost 
Accounting Standard (CAS) 417, Cost of Money as an Element of the Cost 
of Capital Assets Under Construction.
    (a) Cost of money rate. The cost of money rate is either the 
interest rate determined by the Secretary of the Treasury pursuant to 
Pub. L. 92-41 (85 Stat 97), or the time-weighted average of such rates 
for each cost accounting period during which the asset is being 
constructed, fabricated, or developed. The time-weighted average 
interest rate is calculated by multiplying the various rates in effect 
during the months of construction by the number of months each rate was 
in effect. The sum of the products is divided by the total number of 
months in which the rates were experienced.
    (b) Representative investment. The representative investment is the 
calculated amount considered invested by the contractor in the project 
to construct, fabricate, or develop the asset during the cost accounting 
period. In calculating the representative investment, consideration must 
be given to the rate or expenditure pattern of the investment, i.e., if 
most of the investment was at the end of the cost accounting period, the 
representative investment calculation must reflect this fact.
    (1) If the contractor experiences an irregular or uneven expenditure 
pattern in the construction, fabrication, or development of a capital 
asset, i.e., a majority of the construction costs were incurred toward 
the beginning, middle, or end of the cost accounting period, the 
contractor must either:
    (i) Determine a representative investment amount for the cost 
accounting period by calculating the average of the month-end balances 
for that cost accounting period; or
    (ii) Treat month-end balances as individual representative 
investment amounts.
    (2) If the construction, fabrication, or development costs were 
incurred in a fairly uniform expenditure pattern throughout the 
construction period, the contractor may:
    (i) Determine a representative investment amount for the cost 
accounting period by averaging the beginning and ending balances of the 
construction, fabrication, or development cost account for the cost 
accounting period; or
    (ii) Treat month-end balances as individual representative 
investment amounts.



Sec. 1830.7002-2  Measurement.

    (a) The imputed cost of money for an asset under construction, 
fabrication, or development is calculated by applying a cost of money 
rate (see 1830.7002-1(a)), to the representative investment amount (see 
1830.7002-1(b)).
    (1) When a representative investment amount is determined for a cost 
accounting period following 1830.7002-1(b)(1)(i) or 1830.7002-
1(b)(2)(i), the cost of money rate used shall be the time-weighted 
average rate.
    (2) When a monthly representative investment amount (see 1830.7002-
1(b)(1)(ii) or 1830.7002-1(b)(2)(ii)) is used, the cost of money rate 
shall be the rate in effect each month.

    (Note: Under this method, the cost of money calculating is made 
monthly and the total for the cost accounting period is the sum of the 
monthly calculations.)

    (b) The method chosen by a contractor for determining the 
representative investment amount may be different for each capital asset 
being constructed, fabricated, or developed as long as the method fits 
the expenditure pattern of the construction costs incurred.
    (c) The imputed cost of money will be capitalized only once in any 
cost accounting period; either at the end of

[[Page 291]]

the period or at the end of the construction period, whichever comes 
first.
    (d) When the construction of an asset takes more than one cost 
accounting period, the cost of money capitalized for the first cost 
accounting period will be included in determining the representative 
investment amount for any future cost accounting periods.



PART 1831--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents




         Subpart 1831.2--Contracts with Commercial Organizations

Sec.
1831.205  Selected costs.
1831.205-18  Independent research and development and bid and proposal 
          costs.
1831.205-32  Precontract costs.
1831.205-70  Contract clause.
1831.205-670  Evaluation of contractor and subcontractor compensation 
          for service contracts.
1831.205-671  Solicitation provision.

    Authority: 42 U.S.C. 2473 (c)(1).

    Source: 57 FR 837, Jan. 9, 1992, unless otherwise noted.



         Subpart 1831.2--Contracts with Commercial Organizations

1831.205  Selected costs.



Sec. 1831.205-18   Independent research and development and bid and proposal costs.

    A class deviation from (FAR) 48 CFR 31.205-18(e) exists to permit 
costs contributed by a contractor under a cooperative arrangement with 
NASA to be considered as allowable IR&D costs if the work performed 
would have been allowed as contractor IR&D had there been no cooperative 
arrangement.

This deviation does not apply to costs contributed by the contractor 
under cost-sharing contracts described in (FAR) 48 CFR 16.303 and 
1816.303.

[59 FR 22521, May 2, 1994]



Sec. 1831.205-32  Precontract costs.

    (a) The authorization of precontract costs is not encouraged and 
shall be granted only when there will be a sole source award or a single 
offeror has been selected for negotiations as the result of a 
competitive procurement, the criteria at FAR 31.205-32 are met, and a 
written request and justification has been submitted to and approved by 
the procurement officer. The authorization of precontract cost shall not 
apply to firm-fixed-price contracts and fixed-price contracts with 
economic price adjustment. The justification shall:
    (1) Substantiate the necessity for the contractor to proceed prior 
to contract award,
    (2) Specify the start date of such contractor effort,
    (3) Identify the total estimated time of the advanced effort, and
    (4) Specify the cost limitation.
    (b) Authorization to the contractor to incur precontract costs shall 
be in writing and shall:
    (1) Specify the start date for incurrence of such costs,
    (2) Specify a limitation on the total amount of precontract costs 
which may be incurred,
    (3) State that the costs are allowable only to the extent they would 
have been if incurred after the contract had been entered into, and
    (4) State that the Government is under no obligation to reimburse 
the contractor for any costs unless a contract is awarded.
    (c) Precontract costs shall not be allowable unless the clause at 
1852.231-70, Precontract Costs, is included in the contract.

[60 FR 29505, June 5, 1995]



Sec. 1831.205-70  Contract clause.

    The contracting officer shall insert the clause at 1852.231-70, 
Precontract Costs, in contracts for which specific coverage of 
precontract costs is authorized under 1831.205-32.

[60 FR 29505, June 5, 1995]



Sec. 1831.205-670  Evaluation of contractor and subcontractor compensation for service contracts.

    (a) The contracting officer shall evaluate the reasonableness of 
compensation for service contracts:
    (1) Prior to the award of a cost reimbursement or non-competitive 
fixed-price type contract which has a total

[[Page 292]]

potential value in excess of $500,000, and
    (2) Periodically after award for cost reimbursement contracts, but 
at least every three years.
    (b) The contracting officer shall ensure the reasonableness of 
compensation is evaluated for cost reimbursement or non-competitive 
fixed-price type service subcontracts under a prime contract meeting the 
criteria in paragraph (a)(1) of this section where:
    (1) The subcontract has a total potential value in excess of 
$500,000, and
    (2) The cumulative value of all of a subcontractor's service 
subcontracts under the prime contract is in excess of 10 percent of the 
prime contract's total potential value.
    (c)(1) Offerors shall be required to submit as part of their 
proposals a compensation plan addressing all proposed labor categories. 
Offerors also shall demonstrate in writing that their proposed 
compensation is reasonable.
    (2) Subcontractors meeting the criteria in paragraph (b) of this 
section shall be required to comply with paragraph (c)(1).
    (d) The contracting officer's preaward evaluation of each offeror's 
and their subcontractors' compensation should be done as part of, or in 
addition to DCAA audits, price analyses, or any other means deemed to be 
necessary.
    (e) The results of the contracting officer's evaluation, including 
any excessive compensation found and its planned resolution, shall be 
addressed in the prenegotiation position memorandum, with the final 
resolution discussed in the price negotiation memorandum.
    (f) The contracting officer shall ensure that the reasonableness of 
compensation for cost reimbursement subcontracts meeting the criteria in 
paragraphs (b)(1) and (2) of this section is periodically reviewed after 
award, but at least every three years.
    (g) The results of the periodic evaluations of contractor and 
subcontractor compensation after contract award shall be documented in 
the contract file.

[59 FR 12198, Mar. 16, 1994]



Sec. 1831.205-671  Solicitation provision.

    The contracting officer shall insert a provision substantially the 
same as the provision at 1852.231-71, Determination of Compensation, in 
solicitations for services which contemplate the award of a cost 
reimbursement or non-competitive fixed-price type service contract 
having a total potential value in excess of $500,000.

[59 FR 12198, Mar. 16, 1994]



PART 1832--CONTRACT FINANCING--Table of Contents




                         Subpart 1832.1--General

Sec.
1832.111  Contract clauses.
1832.111-70  NASA contract clause.
1832.170  Voluntary refunds.

                    Subpart 1832.4--Advance Payments

1832.402  General.
1832.402-1  Small Business Innovation Research contracts.
1832.402-2  Expendable launch vehicle services contracts.
1832.406  Letters of credit.
1832.406-70  Federal Cash Transaction Report.
1832.407  Interest.
1832.409-3  Security, supervision, and covenants.
1832.410  Findings, determination, and authorization.
1832.410-70  Instructions for determinations and findings.
1832.412  Contract clause.

            Subpart 1832.5--Progress Payments Based on Costs

1832.501  General.
1832.501-1  Customary progress payment rates.
1832.501-2  Unusual progress payments.
1832.502  Pre-award matters.
1832.502-2  Contract finance office clearance.
1832.502-4  Contract clauses.
1832.502-470  NASA contract clause.
1832.503  Post-award matters.
1832.503-3  Initiation of progress payments and review of accounting 
          system.
1832.503-4  Approval of progress payment requests.
1832.503-470  Contract clause.
1832.504  Subcontracts.

                    Subpart 1832.7--Contract Funding

1832.702  Policy.
1832.702-70  NASA policy.

[[Page 293]]

1832.704  Limitation of cost or funds.
1832.705  Contract clauses.
1832.705-270  Additional clauses for limitation of cost or funds.

                     Subpart 1832.9--Prompt Payment

1832.903  Policy.
1832.906  Contract financing payments.
1832.908  Contract clauses.
1832.970  Payments to Canadian Commercial Corporation.

             Subpart 1832.70--Milestone Billing Arrangements

1832.7001  General.
1832.7002  Policy.
1832.7003  Criteria for use.
1832.7004  Contractual implementation.
1832.7005  Concurrence prior to solicitation.
1832.7006  Approval prior to contract award.
1832.7007  Subcontracts and contract amendments.
1832.7008  Solicitation and contract clause.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28287, July 5, 1989, unless otherwise noted.



                         Subpart 1832.1--General

1832.111  Contract clauses.



Sec. 1832.111-70  NASA contract clause.

    The contracting officer shall insert the clause at 1852.232-79, 
Payment for On-Site Preparatory Costs, in solicitations and contracts 
for construction on a fixed-price basis when progress payments are 
contemplated and pro rata payment of on-site preparatory costs to the 
contractor is appropriate.



Sec. 1832.170  Voluntary refunds.

    (a) General. A voluntary refund is a payment or credit, not required 
by any contractual or other legal obligation, made to the Government by 
a contractor or subcontractor either as a payment or as an adjustment 
under one or more contracts or subcontracts. It may be unsolicited or 
may be made in response to a Government request. If it is desired to 
solicit a refund from a subcontractor, the prime contractor should be 
encouraged to facilitate the making of such refund. In deciding whether 
or not to solicit a refund or accept an unsolicited refund, the 
contracting officer shall ask legal counsel to review the contract or 
contracts and all relevant data to determine whether the Government's 
rights would be jeopardized or impaired by the contracting officer's 
proposed action.
    (b) Solicited refunds. Voluntary refunds may be requested during or 
after contract performance. They shall be requested only when it is 
considered that the Government has been overcharged under a contract or 
inadequately compensated for the use of Government-owned property or in 
the disposition of contractor inventory, and retention by the contractor 
or subcontractor of the amount in question would be contrary to good 
conscience and equity. Generally, retention by the contractor or 
subcontractor shall not be considered contrary to good conscience and 
equity, and thus a refund shall not be requested, unless the overcharge 
or inadequate compensation was due, at least in part, to the fault of 
the contractor or subcontractor. The decision to solicit a refund shall 
be made by the Deputy Administrator or a designee after coordination 
with the Associate Administrator for Procurement.
    (c) Disposition of voluntary refunds. (1) If a voluntary refund is 
offered before final payment, it is preferable that the contract price 
be appropriately modified to reflect the refund. In such a case, the 
amount of the refund shall be credited to the applicable appropriation 
cited in the contract.
    (2) When the refund is made by check rather than by adjusting the 
contract price, the check shall be made payable to the National 
Aeronautics and Space Administration and shall be forwarded immediately 
to the Financial Management Office of the appropriate installation. When 
forwarded, the check shall be accompanied by a letter identifying it as 
a voluntary refund, giving the number of the contract or contracts 
involved and, if possible, the account number of the appropriation to 
which the refund should be credited.



                    Subpart 1832.4--Advance Payments

    Source: 57 FR 838, Jan. 9, 1992, unless otherwise noted.

[[Page 294]]



Sec. 1832.402  General.

    Determinations and findings in support of advance payments, as 
authorized by the Armed Services Procurement Act of 1947, as amended (10 
U.S.C. 2307(c) and 2310(b)), shall be prepared in accordance with 
1832.410. The lowest level of authority at which these determinations 
and findings shall be made is:
    (a) The Associate Administrator for Procurement (Code HC), for 
advance payments--
    (1) Where the cumulative potential value for a single contract is 
greater than $25,000,000, or where a contract modification will increase 
the amount outstanding at any time and the cumulative potential contract 
value will exceed $25,000,000. Additional determinations and findings 
for increases to such contracts need not be prepared and submitted to 
the Associate Administrator for Procurement as long as the advance 
payment amount outstanding at any time is not increased;
    (2) In any amount to a foreign entity; or
    (3) In any amount when the organization will receive a fee for the 
effort involved.
    (b) The procurement officer, for advance payments involving a single 
action or which results in the cumulative potential contract value of 
$25,000,000 or less (other than to foreign entity or an organization 
that will receive a profit or fee), provided the action has been 
coordinated with the installation's Financial Management Officer.

[57 FR 838, Jan. 9, 1992, as amended at 60 FR 16059, Mar. 29, 1995]



Sec. 1832.402-1  Small Business Innovation Research contracts.

    Advance payments for all Small Business Innovation Research (SBIR) 
Phase I contracts have been authorized through a class deviation. This 
authorization is for the Government fiscal years ending September 30, 
2000.

[57 FR 838, Jan.9, 1992, as amended at 58 FR 51141, Sept. 30, 1993; 59 
FR 12198, Mar. 16, 1994]



Sec. 1832.402-2  Expendable launch vehicle services contracts.

    Determinations and findings are not required for advance payments 
for contracts supporting expendable launch vehicle (ELV) services 
contracts (however, see 1832.70 for Milestone Billing Arrangements). 
Instead all advance payments clauses for ELV services contracts shall be 
submitted to Code HC for concurrence prior to issuance of the 
solicitation (see 1832.7005), and to the Associate Administrator for 
Procurement (Code HC) for approval prior to award (see 1832.7006).

[58 FR 4086, Jan. 13, 1993]



Sec. 1832.406  Letters of credit.

    For the purposes of FAR 32.406(b)(1), each installation is 
considered a contracting agency.



Sec. 1832.406-70  Federal Cash Transactions Report.

    The report required by paragraph (m) of the clause at FAR 52.232-12, 
Advance Payments, or paragraph (j) of Alternate V of that clause, shall 
be submitted on Standard Form 272, Federal Cash Transactions Report, 
and, if appropriate, Standard Form 272-A, Federal Cash Transactions 
Report Continuation.



Sec. 1832.407  Interest.

    Advance payments without interest are hereby authorized, pursuant to 
FAR 32.407(d)(1).



Sec. 1832.409-3  Security, supervision, and covenants.

    The contracting officer, in consultation with the General Counsel, 
may require special security conditions, if appropriate, in particular 
cases. Those conditions may be included in solicitations and contracts 
that include the clause at FAR 52.232-12, Advance Payments.
1832.410  Findings, determination, and authorization.



Sec. 1832.410-70  Instructions for determinations and findings.

    (a) Requests for Headquarters approval of advance payments, in 
accordance with 1832.402(a), shall be forwarded to the Associate 
Administrator for Procurement (Code HC). They should include (1) the 
name of the cognizant NASA Headquarters program or staff office; (2) the 
name and phone

[[Page 295]]

number of the contracting officer or negotiator; (3) a copy of the 
proposed advance payments clause; (4) a copy of the contractor's request 
for advance payments, along with any supporting information; and (5) if 
a profit/fee is contemplated, the factors considered in determining the 
profit/fee (see Subpart 18 15.9), and (6) information as to how a 
determination was made that the Government has adequate security to 
cover the maximum advance payment amount at any time outstanding.
    (b) 10 U.S.C. 2307 is normally the statutory authority cited for 
authorizing advance payments. When appropriate, advance payments may 
also be authorized under 42 U.S.C. 2473(c)(5) or under Public Law 85-804 
as implemented by Executive Order 10789 (see FAR Part 50).
    (c) Generally, the format in FAR 32.410 should be used, tailored as 
follows:
    (1) The phrase ``Advance payments (in an amount not to exceed $ . . 
. at any time outstanding)'' at format paragraph (a)(2), and not the 
alternate phrase ``(in an aggregate amount not exceeding . . .),'' shall 
be used for all determinations and findings. The phrase means the 
maximum unliquidated dollar amount a contractor would need in advance 
payments at any point in time for the particular contract. The amount 
would not usually be the full contract value. The amount inserted should 
be based on an analysis of the contractor's financing needs (monthly or 
other appropriate period) for the specific contract involved.
    (2) In the second sentence of format subparagraph (a)(4), delete the 
reference to a special bank account.
    (3) Use format subparagraph (a)(6), not (a)(7) or (a)(8).
    (4) At the end of format paragraph (b), use ``is in the public 
interest.''



Sec. 1832.412  Contract clause.

    Whenever the clause at FAR 52.232-12 is used, it shall be modified 
as set forth at 1852.232-12. In addition, the dollar amount to be 
inserted in the blank of the modified language of the ``Maximum 
Payment'' paragraph of the clause is the same amount determined for 
1832.410-70(c)(1).



            Subpart 1832.5--Progress Payments Based on Costs

1832.501  General.



Sec. 1832.501-1  Customary progress payment rates.

    The customary progress payment rate for all NASA contracts is 85 
percent for large business, 90 percent for small business, and 95 
percent for small disadvantaged business.

[56 FR 63877, Dec. 6, 1991]



Sec. 1832.501-2  Unusual progress payments.

    Requests for unusual progress payments must have the specific 
approval of the Associate Administrator for Procurement, with the 
concurrence of the Director, Financial Management Division (Code BF).
1832.502  Pre-award matters.



Sec. 1832.502-2  Contract finance office clearance.

    The approving authority for the actions specified in FAR 32.502-2 is 
the Associate Administrator for Procurement. Any such approvals should 
be coordinated with the Director, Financial Management Division.
1832.502-4  Contract clauses.



Sec. 1832.502-470  NASA contract clause.

    The contracting officer may insert a clause substantially as stated 
at 1852.232-82, Submission of Requests for Progress Payments, in fixed-
price solicitations and contracts that provide for progress payments. 
The recipient of the requests may be changed if this function is 
delegated. The number of copies of the request may be changed if 
necessary to meet a substantial need.
1832.503  Post-award matters.



Sec. 1832.503-3  Initiation of progress payments and review of accounting system.

    In connection with the situations mentioned in FAR 32.503-3(b), the 
Financial Management Officer shall be notified.

[[Page 296]]



Sec. 1832.503-4  Approval of progress payment requests.

    The contracting officer shall insert the clause at 1852.232-70, 
Progress Payments, in all solicitations and fixed-price contracts under 
which the Government will provide progress payments based on costs.

[56 FR 63877, Dec. 6, 1991, as amended at 57 FR 40855, Sept. 8, 1992]



Sec. 1832.503-470  Contract clause.

    The contracting officer shall insert the clause at 18-52.232-70, 
NASA Progress Payment Rates, in all solicitations and fixed-price 
contracts under which the Government will provide progress payments 
based on costs.

[57 FR 40855, Sept. 8, 1992]



Sec. 1832.504  Subcontracts.

    The Government approval mentioned in FAR 32.504(c) shall be as 
specified in 1832.502-2.



                    Subpart 1832.7--Contract Funding

    Source: 57 FR 839, Jan. 9, 1992, unless otherwise noted.
1832.702  Policy.



Sec. 1832.702-70  NASA policy.

    (a) Cost-reimbursement contracts may be incrementally funded only if 
all the following conditions are met (except that, for cost-
reimbursement R&D contracts under which no supplies are deliverable, 
only the condition in subparagraph (a)(3) of this section applies):
    (1) The total value of the contract (including options as defined in 
FAR subpart 17.2) is $1,000,000 or more.
    (2) The period of performance under the contract is in excess of 
twelve months or overlaps the succeeding fiscal year.
    (3) The funds are not available to fund the total contract value 
fully at the time of entering into the contract.
    (b) Fixed-price contracts, other than those for research and 
development, shall not be incrementally funded.
    (c)(1) Fixed-price contracts for research and development may be 
incrementally funded if--
    (i) The total fixed price of the contract (including options as 
defined in FAR subpart 17.2) is $1,000,000 or more;
    (ii) The period of performance under the contract is in excess of 
twelve months or overlaps the succeeding fiscal year;
    (iii) Funds are not available to fund the total fixed price of the 
contract at the time of entering into the contract; and
    (iv) Initial funding of the contract is not less than 50 percent of 
the total fixed price.
    (2) Notwithstanding the grant of authority to fund contracts 
incrementally under the circumstances in paragraph (1) of this section, 
fixed-price contracts shall be fully funded whenever possible, and 
incremental funding of such contracts shall be kept to an absolute 
minimum.
    (d) Except as noted in paragraph (e) of this section, waiver of any 
of the conditions set forth in paragraphs (a), (b), and (c) of this 
section shall be submitted for approval to the installation procurement 
officer. Concurrence of the installation Comptroller must be obtained on 
all requests prior to approval by the procurement officer. The 
procurement officer shall maintain a record of all such approvals during 
the fiscal year. At a minimum, the record will include: contract number, 
description and type; dollar value; amount of funds initially available; 
and the reason(s) for the waiver.
    (e) A class deviation from the conditions set forth in paragraphs 
(a), (b), and (c) of this section exists to permit incremental funding 
of contracts under Phase II of the SBIR Program until the last year of 
the program (FY 1993 unless extended). This deviation exists with the 
understanding that the contracts will be fully funded when funds become 
available.

[57 FR 839, Jan. 9, 1992, as amended at 59 FR 12198, Mar. 16, 1994]



Sec. 1832.704  Limitation of cost or funds.

    (a) When a contract contains the clause at 1852.232-77, Limitation 
of Funds (Fixed-Price Contract), the procedures in FAR 32.704 are 
applicable.
    (b) The amount obligated for fee should always be at least 
sufficient to pay fee anticipated to be earned by the

[[Page 297]]

contractor for the work to which the amount allotted for the estimated 
cost applies.
1832.705  Contract clauses.



Sec. 1832.705-270  Additional clauses for limitation of cost or funds.

    (a) The contracting officer shall insert the clause at 1852.232-77, 
Limitation of Funds (Fixed-Price Contract), in solicitations and 
contracts for fixed-price incrementally funded research and development.
    (b) The contracting officer shall insert a clause substantially as 
stated at 1852.232-81, Contract Funding, in Section B of solicitations 
and contracts containing the clause at (FAR) 48 CFR 52.232-22, 
Limitation of Funds. Insert the amounts of funds available for payment, 
the items covered, and the applicable period of performance. The 
contracting officer may add additional funding information (such as a 
summary of old amounts, amount(s) added in contract modifications, and 
new totals) as appropriate for the particular procurement.

[57 FR 839, Jan. 9, 1992, as amended at 59 FR 12198, Mar. 16, 1994]



                     Subpart 1832.9--Prompt Payment

    Source: 57 FR 839, Jan. 9, 1992, unless otherwise noted.



Sec. 1832.903  Policy.

    As authorized at FAR 32.903, payments for contracts (other than 
Fixed-Price Architect-Contracts, Construction Contracts, and contracts 
for meats, perishables and dairy products) with the Canadian Commercial 
Corporation (CCC) shall be made earlier than the standard contract 
payment due dates.



Sec. 1832.906  Contract financing payments.

    It is NASA's policy to make contract financing payments on the 30th 
day after the designated billing office has received a proper request. 
However, as authorized at FAR 32.906(a), the due date for making 
contract financing payments for a specific contract may be earlier than 
the 30th day, but not earlier than 7 days, after the designated billing 
office has received a proper request, provided that:
    (a) The contractor provides consideration whose value is determined 
to be greater than the cost to the United States Treasury of interest on 
funds paid prior to the 30th day, calculated using the Current Value of 
Funds Rate published annually in the Federal Register (subject to 
quarterly revision);
    (b) Approval is obtained from the installation procurement officer 
with concurrence from the installation Financial Management Officer; and
    (c) The contract file is adequately documented to state what 
consideration was received and show how the consideration was valued.

[58 FR 48615, Sept. 17, 1993]



Sec. 1832.908  Contract clauses.

    (a) When a clause at FAR 52.232-25, 52.232-26 or 52.232-27 is used, 
the clause at 52.232-28 shall be used as authorized by FAR 32.908(d), 
modified by deleting the words ``and contract number'' from paragraph 
(d). The following paragraph shall be inserted in FAR 52.232-28(b)(4) in 
lieu of the language at that location:

    The Contractor shall submit a Standard Form 3881 to the installation 
awarding this contract. If a Standard Form 3881 previously submitted to 
the installation awarding this contract is still valid, resubmittal is 
not necessary, unless requested by NASA.

    (b) When the clause at FAR 52.232-25, Prompt Payment, is used in 
contracting with the CCC subject to the conditions at 1832.970--
    (1) The number ``17'' shall be used in lieu of ``30'' in paragraphs 
(a)(2)(i) and (a)(2)(ii) of the clause; and
    (2) The number ``17th'' shall be inserted in paragraph (b)(2) of the 
clause.



Sec. 1832.970  Payments to Canadian Commercial Corporation.

    As authorized by FAR 32.903, the phrase ``the 17th day'' shall be 
used in lieu of the ``the 30th day'' at FAR 32.905(a)(1), 32.905(a)(2) 
and 32.906(a).



             Subpart 1832.70--Milestone Billing Arrangements

    Source: 58 FR 4086, Jan. 13, 1993, unless otherwise noted.

[[Page 298]]



Sec. 1832.7001  General.

    As authorized at FAR 32.102(e), milestone billing arrangements may 
be used for contract financing. Milestone billing arrangements fall 
between progress payments based on costs with unusual terms and advance 
payments in the order of preference specified in FAR 32.106. Milestone 
billing arrangements are contractual provisions which provide for 
payments to a contractor upon successful completion of specific 
performance events not involving physical deliveries to the Government. 
As milestone arrangements are interim payments with respect to total 
contract performance, they are fully recoverable, in the same manner as 
progress payments, in the event of default. Milestone payments shall not 
be considered as payments for contract items delivered and accepted, 
incentive price revisions, or inspection and acceptance provisions of 
the contract. Milestone billing arrangements are contract financing 
payments and as such are not subject to prompt payment interest 
penalties.



Sec. 1832.7002  Policy.

    In negotiating milestone billing arrangements, contracting officers 
must seek to establish an overall level of contract financing that will 
result in the contractor maintaining an appropriate investment in 
contract work-in-process inventory. The level of contract financing 
should be based on the number, value and timing of the milestone billing 
events, and the manner in which milestone payments are liquidated 
against contract line item deliveries. Therefore, proposed milestone 
billing arrangements should be carefully evaluated to ensure that 
contract financing objectives are being met, that the proposed milestone 
billing arrangement will not result in an unreasonably low or negative 
level of contractor work-in-process inventory, or create an 
administrative burden (e.g., too frequent payments).



Sec. 1832.7003  Criteria for use.

    (a) Milestone billing arrangements are limited to fixed-price type 
contracts in excess of $10 million with long lead times (at least 12 
months) between the initial incurrence of costs under the contract and 
the delivery of the first end item.
    (b) The contract shall not provide for progress payments based on 
cost or advance payments, with the exception of expendable launch 
vehicle (ELV) services contracts (see 1832.7003(d)).
    (c) The established milestone events will be readily determinable.
    (d) Milestone billing amounts shall not exceed the Government's best 
estimate of the cost to perform each milestone event. For ELV services 
contracts, 42 U.S.C. 2459c provides authority to make advance payments 
in conjunction with milestone billing arrangements. Advance payments 
provided under such arrangements must be reasonably related to launch 
vehicle and related equipment, fabrication, and acquisition costs. 
However 42 U.S.C. 2459c provides considerable flexibility in determining 
what types of costs (committed, incurred, expended) may be considered in 
determining payment schedules for ELV services contracts. Individual 
milestone payments may exceed a contractor's incurred costs during 
performance only if the payment schedules comply with the intent of 42 
U.S.C. 2459c, are considered fair and reasonable, and serve the 
Government's best interests.
    (e) The contract milestones should represent the completion of 
substantial items of service or events that would normally require 
management visibility and attention to assure their timely 
accomplishment. Milestones should not be based on insignificant events, 
administrative functions, percentage of completion estimates, or the 
passage of time. The number of milestone events will be kept to a 
minimum.



Sec. 1832.7004  Contractual implementation.

    Contracts containing milestone billing arrangements will include the 
following requirements:
    (a) Normally, milestone billings will not be submitted after 
deliveries of a major end item commences upon which milestone payments 
have been made. In the event the period between delivery of such major 
end item and the next end item delivery exceeds three

[[Page 299]]

months, milestone payments can continue to be made for the next end item 
as mutually agreed for appropriate events.
    (b) Completion of each milestone must be certified by the contractor 
and verified by the contract administration office in order for payment 
to be made.
    (c) The processing of milestone billing vouchers shall not be 
delegated outside NASA without specific instructions from the 
contracting officer, and the periodic review of payments by the 
contracting officer, e.g., reviews of action taken on issues that have 
arisen.
    (d) The relationship between milestone billing events and 
deliverable contract line items will be clearly established in the 
contract. A milestone billing event should normally be associated with 
only one contract line item. However, a contract line item may have more 
than one related milestone billing event. Upon delivery and acceptance 
of a contract line item on which milestone payment(s) has/have been 
made, the amount of the related milestone payment(s) will be deducted 
from the amount otherwise payable for the contract line item.
    (e) Milestone billing amounts will not be subject to the ``Adjusting 
Billing Prices'' paragraph of the ``Incentive Price Revision-Firm Target 
clause (FAR 52.216-16(f)) in fixed-price incentive contracts, and will 
not be adjusted for actual costs incurred above or below the contract 
target cost. Adjustments to milestone billing amounts shall not be made 
unless specifically provided for in the economic price adjustment (EPA) 
clause of the contract. Furthermore, any adjustment to milestone amounts 
arising from an EPA clause shall be made at the same time as the 
contract price adjustment.
    (f) Milestone payments are interim payments with respect to total 
performance, and, as such, are fully recoverable in the case of default, 
in the same manner as progress payments.



Sec. 1832.7005  Concurrence prior to solicitation.

    Prior to the issuance of a solicitation in which a milestone billing 
arrangement is made available, concurrence shall be requested in writing 
from Code HC. The request shall provide the reasons why a milestone 
billing arrangement is appropriate and include a copy of the milestone 
billing arrangement clause if it differs from the clause at 1852.232-83, 
Milestone Billing Arrangements.



Sec. 1832.7006  Approval prior to contract award.

    Subsequent to solicitation, but prior to contract award, a request 
for approval of the milestone billing arrangement shall be submitted to 
the Associate Administrator for Procurement (Code HC). The request for 
approval should include the following information:
    (a) The name and phone number of the contracting officer.
    (b) A copy of the contractor's support for a milestone billing 
arrangement, including the rationale and statement of need for milestone 
billings.
    (c) A copy of the proposed milestone billing clause.
    (d) Description of the milestone billing events, with a schedule of 
milestone completion dates and milestone values, and the method of 
verifying completion.
    (e) Description of the contract end items with their delivery 
schedule and prices.
    (f) Proposed milestones and contract end items, with appropriate 
narrative showing how the milestone amounts were estimated and 
distributed to the contract end items for interim milestone payment and 
end item final payment purposes.
    (g) Financial analysis (numeric and graphic) showing cash flow and 
contractor investment in the contractor work-in-process inventory, with 
and without milestone billings.
    (h) Any other information considered relevant.



Sec. 1832.7007  Subcontracts and contract amendments.

    Subcontracts and amendments to prime contracts that incorporate 
milestone billing arrangements are also subject to the criteria, 
contractual implementation, concurrence and approval policies in this 
subpart. Requests for concurrence and approval shall be submitted to the 
prime contractor through the next higher tier

[[Page 300]]

subcontractor, if applicable, to the contracting officer.



Sec. 1832.7008  Solicitation and contract clause.

    (a) The contracting officer shall insert a clause substantially the 
same as the clause at 1852.232-83, Milestone Billing Arrangements, in 
solicitations and contracts when a fixed-price type contract will be 
awarded and a milestone billing arrangement is contemplated.
    (b) The contracting officer shall include a clause substantially the 
same as the clause at 1852.232-84, Milestone Billing Arrangements--
Subcontracts, in all solicitations and contracts when a fixed-price 
subcontract in excess of $10 million with a milestone billing 
arrangement is contemplated.



PART 1833--PROTESTS, DISPUTES, AND APPEALS--Table of Contents




                        Subpart 1833.1--Protests

1833.103  Protests to the agency.
1833.104  Protests to GAO.
1833.105  Protests to GSBCA.

                  Subpart 1833.2--Disputes and Appeals

1833.209  Suspected fraudulent claims.
1833.211  Contracting officer's decision.
1833.211-70  Contracts awarded before March 1, 1979.
1833.215  Contract clause.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28289, July 5, 1989, unless otherwise noted.



                        Subpart 1833.1--Protests



Sec. 1833.103  Protests to the agency.

    (a) When a protest is filed directly with an installation, any 
determination under (FAR) 48 CFR 33.103(a) to award the contract before 
the protest is resolved will be made by the contracting officer. If the 
protest is filed with NASA Headquarters, any such determination will be 
made by the Associate Administrator for Procurement.
    (b) When a protest is filed directly with an installation or with 
NASA Headquarters, the contracting officer shall provide any notice 
under FAR 33.103(a)(3) to offerors whose offers might become eligible 
for award.
    (c) For protests filed with NASA Headquarters, the contracting 
officer shall forward to the Programs Operations Division (Code HS) 
within 10 work days a report essentially the same as that required by 
FAR 33.104(a)(3).

[54 FR 28289, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 59 
FR 66270, Dec. 23, 1994; 60 FR 40515, Aug. 9, 1995]



Sec. 1833.104  Protests to GAO.

    (a) General procedures. (1) NASA personnel shall take no action to 
respond to or resolve any protest filed with GAO other than in 
accordance with this part.
    (2) The notices required by FAR 33.104(a)(2) shall be made by the 
contracting officer.
    (3) Upon receiving any communication from a protester or the GAO 
regarding a protest, the cognizant procurement officer shall immediately 
contact Code HS for guidance. Conversely, upon Headquarters receipt of 
notice from GAO of the filing of a protest, Code HS shall immediately 
notify the cognizant procurement officer. This is usually done via 
telephone and constitutes the official notice to the installation that a 
protest has been filed.
    (4) Within 3 work days of being notified, the contracting officer 
shall forward to Headquarters (Code HS) a copy of the procurement file 
including all documents referred to in FAR 33.104(a)(3)(ii) (A) through 
(G) and any others requested by Code HS. The contracting officer's 
statement (FAR 33.104(a)(3)(ii)(H)) shall be forwarded no later than ten 
work days after the contracting officer has been notified. The 
contracting officer's statement shall receive the concurrence of the 
installation Chief Counsel. If more time is needed, requests for 
extension may be made by telephone to Headquarters, Code HS.
    (5) When the GAO elects to use its express option procedure, the 
contracting officer's statement shall be forwarded to Code HS within six 
work days after the contracting officer has been notified. If that is 
not possible, a report to Code HS shall be made by telephone.
    (6) In consultation with the Office of General Counsel, Headquarters 
(Code

[[Page 301]]

HS) shall provide the information required by FAR 33.104(a) to the GAO.
    (b) Protests before award. (1) The contracting officer shall provide 
Headquarters (Code HS) with information and recommendations relevant to 
a determination under FAR 33.104(b)(1) to award a contract prior to 
resolution of a protest. Any such determination shall be made by the 
Associate Administrator for Procurement, who for purposes of this 
requirement is the ``head of the contracting activity.'' The 
notification to GAO required by FAR 33.104(b)(2) will be made by Code 
HS.
    (2) The contracting officer shall make the notifications and 
requests required by FAR 33.104(b)(3).
    (c) Protests after award. (1) Any request for a determination under 
FAR 33.104(c)(2) to authorize performance notwithstanding a protest 
shall be submitted to Headquarters (Code HS). Any such determination 
shall be made by the Associate Administrator for Procurement who, for 
purposes of this requirement, is the ``head of the contracting 
activity.'' The notification to GAO required by FAR 33.104(c)(3) shall 
be made by Code HS.
    (2) Under FAR 33.104(c)(4), the contracting officer shall consult 
with Headquarters (Code HP) before terminating a protested contract. If 
FAR 33.104(c)(5) applies, the contracting officer shall consult with 
Code HP before taking any action.
    (d) Document requests. If the protester in its protest statement or 
later in the process requests documents, the contracting officer shall 
forward them to Code HS with the documents required by FAR 33.104(a)(3), 
within three work days of receipt of the request. Concurrently, the 
contracting officer shall within 1 work day provide copies of the 
protest statement, the document request if separate from the protest 
statement, and the requested documents to the installation Chief Counsel 
who will prepare a proposed response on the release of the documents. 
This proposed response will be provided to the contracting officer with 
copies to Headquarters (Code HS) and the Associate General Counsel for 
Contracts (Code GK) suitable for incorporation into the Administrative 
Report.
    (e) Conferences. Representatives from Code HS and Code GK, and those 
installation representatives designated by Code HS or requested by the 
GAO will attend conferences held in accordance with FAR 33.104(e).

[54 FR 28289, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 60 
FR 40515, 40516, Aug. 9, 1995]



Sec. 1833.105  Protests to GSBCA.

    (a) The installation's Office of Chief Counsel shall, in 
consultation with the Associate General Counsel for Contracts, (Code GK) 
and the Associate Administrator for Procurement, represent the agency in 
protests filed with the GSBCA. The cognizant Chief Counsel is 
responsible for taking or otherwise ensuring the taking of all actions 
required by FAR 33.105 and the GSBCA Rules of Procedure.
    (b) Upon receiving notice from a non-NASA source of a protest filed 
with the GSBCA, the receiving office shall immediately notify the 
cognizant Chief Counsel, who shall further notify the Associate 
Administrator for Procurement (Code H), the Associate General Counsel 
for Contracts (Code GK), and the procurement officer.
    (c) The contracting officer is responsible for preparing the protest 
file required by FAR 33.105(b) and otherwise assisting counsel.
    (d) The determination and findings required by FAR 33.105(d)(2) 
shall be:
    (1) Prepared and executed by the director or assistant director of 
the cognizant technical directorate, the cognizant program/project 
manager, or cognizant staff official reporting directly to the head of 
the installation and
    (2) Forwarded to the Associate Administrator for Procurement (Code 
H) for concurrence.



                  Subpart 1833.2--Disputes and Appeals



Sec. 1833.209  Suspected fraudulent claims.

    The contracting officer shall report suspected fraudulent claims to 
the Office of Inspector General (Code W) and the Office of General 
Counsel (Code G).

[[Page 302]]



Sec. 1833.211  Contracting officer's decision.

    The Armed Services Board of Contract Appeals is the NASA 
Administrator's authorized representative for hearing and determining 
disputes arising under or related to NASA contracts. Accordingly, when 
final decision letters are prepared, contracting officers shall alter 
the paragraph at FAR 33.211(a)(4)(v) to include the following:
    (a) The Board's mailing address: Armed Services Board of Contract 
Appeals, Skyline Six, 5109 Leesburg Pike, Falls Church, VA 22041-3208.
    (b) A notification that the Board's operating procedures appear in 
part 48, Code of Federal Regulations, chapter 2, appendix A.

[58 FR 44462, Aug. 23, 1993]



Sec. 1833.211-70  Contracts awarded before March 1, 1979.

    Under contracts awarded before the effective date of the Contract 
Disputes Act of 1978 (March 1, 1979), the contractor may elect to 
proceed either under the Act or under the Disputes clause in the 
contract. Final decision letters regarding disputes under contracts 
awarded before that date shall be prepared in accordance with FAR 
33.211(a)(4) except that contracting officers shall alter the paragraph 
at FAR 33.211(a)(4)(v) to read as follows:
    This is the final decision of the contracting officer. Since your 
contract was awarded before the effective date of the Contract Disputes 
Act of 1978 (March 1, 1979), you may appeal this decision by following 
the procedures of either the Disputes clause at Federal Acquisition 
Regulation (FAR) 52.233-1, or the Disputes clause (dated September 1962) 
in your contract. If you decide to appeal under FAR 52.233-1, you must, 
within 90 days from the date you receive this decision, mail or 
otherwise furnish written notice to the Armed Services Board of Contract 
Appeals, Skyline Six, 5109 Leesburg Pike, Falls Church, VA 22041-3208, 
and provide a copy to the contracting officer from whose decision the 
appeal is taken. The notice shall indicate that an appeal is intended, 
reference this decision, and identify the contract by number. For 
appeals under this clause, you may elect to proceed under the Board's 
small claims procedure (for claims of $10,000 or less) or its 
accelerated procedure (for claims of $50,000 or less). In lieu of 
appealing to the Board, you may bring an action directly in the U.S. 
Claims Court within 12 months of the date you receive this decision.
    If you elect to appeal under the Disputes clause (dated September 
1962) of your contract, you must, within 30 days from the date you 
receive this decision, mail or otherwise furnish to the contracting 
officer a written appeal or notice addressed to the Armed Services Board 
of Contract Appeals. The appeal or notice shall indicate that an appeal 
is intended, reference this decision, and identify the contract by 
number. For appeals under this clause, you may elect to proceed under 
the Board's optional accelerated procedure (for claims of $25,000 or 
less).
    For additional information, see the procedures of the Armed Services 
Board of Contract Appeals, which appear in part 48, Code of Federal 
Regulations, chapter 2, appendix A.

[58 FR 44462, Aug. 23, 1993]



Sec. 1833.215  Contract clause.

    The contracting officer shall use Alternate I the clause at FAR 
52.233-1, Disputes, whenever continued performance is vital to national 
security, the public health and welfare, important agency programs, or 
other essential supplies or services whose timely reprocurement from 
other sources would be impracticable.

[54 FR 28289, July 5, 1989. Redesignated at 57 FR 58720, Dec. 11, 1992]

[[Page 303]]



             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING





PART 1834--MAJOR SYSTEM ACQUISITION--Table of Contents




Sec.
1834.000  Scope.
1834.001  Definitions.
1834.005-1  Competition.
1834.005-170  Contract clauses.
    Authority: 42 U.S.C. 2473(c)(1).
    Source: 58 FR 58792, Nov. 4, 1993, unless otherwise noted.



Sec. 1834.000  Scope.

    NASA's implementation of OMB Circular No. A-109, Major Systems 
Acquisitions, and (FAR) 48 CFR part 34 is contained in this part, 
subpart 18-70.5, and in NASA Management Instruction (NMI) 7120.4, 
``Management of Major System Programs and Projects,'' and NASA Handbook 
(NHB) 7120.5, ``Management of Major System Programs and Projects 
Handbook. This part addresses the procedures for the competitive 
acquisition of major systems. Subpart 1870.5 incorporates the NASA Major 
System Acquisition Phased Procurement Guidance.

[58 FR 58792, Nov. 4, 1993, as amended at 59 FR 10080, Mar. 3, 1994]



Sec. 1834.001  Definitions.

    (a) Down-selection. In a phased procurement, the process of 
selecting contractors for phases subsequent to the initial phase from 
among the preceding phase contractors.
    (b) Major system. Any system that: Is directed at and critical to 
fulfilling an agency mission; entails the allocation of a relatively 
large amount of resources; or warrants special management attention. 
Designation of a system as ``major'' is made in accordance with NMI 
7120.4, ``Management of Major System Programs and Projects,'' and NHB 
7120.5, ``Management of Major System Programs and Projects Handbook.''
    (c) Phased procurement. A program comprised of several distinct 
steps or phases (e.g., preliminary analysis, definition, design, and 
development) where the realization of program objectives requires a 
planned, sequential acquisition of each step or phase. The phases in a 
phased procurement may be acquired separately, in combination, or 
through a down-selection strategy.
    (d) Progressive competition. A type of down-selection strategy for a 
phased procurement. In this method, a single solicitation is issued for 
all phases of the program. The initial phase contracts are awarded, and 
the contractors for subsequent phases are expected to be chosen through 
a down-selection from among the preceding phase contractors. In each 
phase, progressively fewer contracts are awarded until a single 
contractor is chosen for the final phase. Normally, all down-selections 
are accomplished without issuance of a new, formal solicitation.

[58 FR 58792, Nov.4, 1993, as amended at 59 FR 10080, Mar. 3, 1994]



Sec. 1834.005-1  Competition.

    (a) In procurements subject to the provisions of OMB Circular No. A-
109 and NMI 7120.4 and NHB 7120.5, or other similar phased procurements, 
it is NASA policy to ensure competition in the selection of contractors 
for award in each phase of the process not performed in-house.
    (b) There are five phases in the life cycle of a NASA major system 
acquisition:
    (1) Phase A, Preliminary Analysis, involves the analysis of 
alternate overall project concepts for accomplishing a proposed agency 
technical objective or mission.
    (2) Phase B, Definition, involves the detailed study, comparative 
analysis, and preliminary system design of selected Phase A concepts.
    (3) Phase C, Design, involves the detailed system design (with mock-
ups and test articles of critical systems and subsystems) of the systems 
design concept determined to provide the best overall system for the 
Government.
    (4) Phase D, Development, involves final detailed design, 
fabrication, certification, and delivery of an operational system that 
meets program requirements.

[[Page 304]]

    (5) Phase E, Operations, involves operation and use of the system in 
its intended environment, continuing until the system leaves the agency 
inventory. This phase includes any system modifications and upgrades.
    (c) The preferred approach in NASA for the acquisition of the phases 
of a Major System is the following:
    (1) Phase A is accomplished primarily through in-house studies.
    (2) Phases B, C, and D are acquired through a phased procurement 
process in which two or more Phase B contracts are awarded competitively 
and then a down-selection is made among these contractors to determine 
the single combined Phase C/D awardee.
    (3) Phase E is normally acquired separately.
    (d) Each phase of a major system acquisition not performed in-house 
must be synopsized in accordance with FAR 5.201 and must include all the 
information required by FAR 5.207. When the phased procurement process 
identified in 1834.005(c)(2) is used, the synopsis for the initial 
competitive phase, normally Phase B, should also state the following:
    (1) The Government plans to conduct a phased procurement involving a 
competitive down-selection process. (Include a description of the 
process and the phases involved).
    (2) Subsequent competitions for identified follow-on phases will 
build on the results of previous phases.
    (3) The award criteria for subsequent phases will include 
demonstrated completion of specified previous phase requirements.
    (4) The Government expects that only the initial phase contractors 
will be capable of successfully competing for the subsequent phase(s). 
Proposals for the subsequent phase(s) will be automatically requested 
from these contractors.
    (5) The Government intends to issue (or not issue) a new, formal 
solicitation(s) for subsequent phase(s). (If new solicitations are not 
planned, the acquisition must be identified as a ``progressive 
competition'' (see 1834.001(d), and the mechanism for providing 
pertinent subsequent phase proposal information (e.g., statements of 
work, specifications, proposal preparation instructions, and evaluation 
factors for award) must be described).
    (6) Each subsequent phase of the acquisition will be synopsized in 
the CBD.
    (7) Notwithstanding the expectation that only the initial phase 
contractors will be capable of successfully competing for the subsequent 
phase(s), proposals from all responsible sources submitted by the 
specified due date will be considered by the agency. In order to contend 
for subsequent phase awards, however, such prospective offerors must 
demonstrate a design maturity equivalent to that of the prior phase 
contractors. Failure to fully and completely demonstrate the appropriate 
level of design maturity may render the proposal unacceptable with no 
further consideration for contract award.
    (e) In addition to the information in 1834.005-1(d), the synopsis 
for the subsequent phases, normally a combined C/D, must identify the 
current phase contractors.
    (f) To streamline the major system acquisition process, the 
preferred approach for NASA phased procurements is the ``progressive 
competition'' down-selection technique in which new, formal 
solicitations are not issued for phases subsequent to the initial phase. 
Subsequent phase proposals are requested by less formal means, normally 
by a letter accompanied by the appropriate proposal preparation and 
evaluation information.
    (g) When using the progressive competition technique, if a 
prospective offeror other than one of the preceding phase contractors 
responds to the synopsis for a subsequent phase and indicates an 
intention to submit a proposal, the contracting officer shall provide to 
that offeror all the material furnished to the preceding phase 
contractors necessary to submit a proposal. This information includes 
the preceding phase solicitation, contracts, and system performance and 
design requirements, as well as all proposal preparation instructions 
and evaluation factors. In addition, the prospective offerors must be 
advised of all requirements necessary for demonstration of a design 
maturity equivalent to that to the preceding phase contractors.

[[Page 305]]

    (h) Although a key feature of the progressive competition technique 
is that a formal solicitation is issued for the initial phase only, a 
new, formal solicitation may nonetheless be required for subsequent 
phases. When the Government requirements or evaluation procedures change 
so significantly after release of the initial phase solicitation that a 
substantial portion of the information provided in the initial phase 
synopsis, solicitation, or contracts is invalidated, a new solicitation 
shall be issued for the next phase.
    (i) Whether or not down-selection procedures are used, contracts 
awarded in phased procurements shall not include requirements for 
submission of subsequent phase proposals. Instead, proposals shall be 
requested through a solicitation or other appropriate mechanism (e.g., 
by letter when using the progressive competition technique). Priced 
options for preparation of subsequent phase proposals are prohibited.
    (j) With one exception, both the initial and subsequent phase(s) of 
a major system acquisition down-selection process are considered to be 
full and open competition if the procedures in paragraphs (d) through 
(i) of this subpart are followed. If only one contractor successfully 
completed a given phase and no other offers are solicited for the 
subsequent phase, award of the subsequent phase may be made only if 
justified by one of the exceptions in FAR 6.302 or one of the exclusions 
in FAR 6.2, and only after compliance with the synopsis requirements of 
FAR 5.202 and 5.205, when appropriate.
    (k) Time gaps between phases should be minimized in all major system 
phased procurements. Accordingly, early synopsis of subsequent phase 
competition is encouraged. Also, when sufficient programmatic and 
technical information is available to all potential offerors, proposal 
evaluation and source selection activities need not be delayed until 
completion of a given phase. When appropriate, these activities should 
commence as early as practicable during the period of performance of a 
phase to ensure the expeditious award of the succeeding phase.

[58 FR 58792, Nov. 4, 1993; 58 FR 68687, Dec. 28, 1993, as amended at 59 
FR 10080, Mar. 3, 1994; 60 FR 47713, Sept. 14, 1995]



Sec. 1834.005-170  Contract clauses.

    (a) The contracting officer shall insert the clause at 1852.234-70, 
Phased Procurement Using Down-Selection Procedures, in solicitations and 
contracts for phased procurements using down-selection procedures other 
than the progressive competition technique described in 1834.005-1 (f) 
through (h). The clause shall be included in the solicitation for each 
phase and in all contracts except that for the final phase.
    (b) The contracting officer shall insert the clause at 1852.234-71, 
Phased Procurement Using Progressive Competition Down-Selection 
Procedures, in solicitations and contracts for phased procurements using 
the progressive competition technique described in 1834.005-1 (f) 
through (h). The clause shall be included in the initial phase 
solicitation and all contracts except that for the final phase.



PART 1835--RESEARCH AND DEVELOPMENT CONTRACTING--Table of Contents




Sec.
1835.003  Policy.
1835.004  Publicizing requirements and expanding research and 
          development sources.
1835.014  Government property and title.
1835.015  Contracts for research with educational institutions and 
          nonprofit organizations.
1835.016  Broad agency announcements.
1835.016-70  NASA Research Announcements.
1835.070  NASA contract clauses and solicitation provision.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28291, July 5, 1989, unless otherwise noted.



Sec. 1835.003  Policy.

    See NHB 5800.1, NASA Grant and Cooperative Agreement Handbook, for 
policy regarding the use of grants and cooperative agreements.

[61 FR 5314, Feb. 12, 1996]



Sec. 1835.004   Publicizing requirements and expanding research and development sources. (NASA supplements paragraph (a))

    (a) In R&D acquisitions over $100,000, when only three or fewer 
sources are known, the contracting officer shall have the requirements 
office query the

[[Page 306]]

Defense Technical Information Center (DTIC) IR&D Database to identify 
additional sources conducting IR&D in the area of the acquisition, in 
addition to using other market survey techniques. If needed, specific 
information on access to and use of the DTIC IR&D Database by a 
particular NASA installation may be obtained from that installation's 
designated IR&D focal point.

[61 FR 47081, Sept. 6, 1996]



Sec. 1835.014  Government property and title.

    For items having an acquisition cost of more than $5,000, the 
determination at FAR 35.014(b)(2)(iii) that vesting title in the 
contractor would not further the objectives of NASA's research program 
must be approved at a level higher than the contracting officer.



Sec. 1835.015  Contracts for research with educational institutions and nonprofit organizations.

    (a) In addition to the requirements of FAR 35.015(a)(1)(iv), the 
institution must obtain the contracting officer's approval when it plans 
to continue the research work during a continuous period in excess of 
three months without the participation of an approved principal 
investigator or project leader.
    (b) For policy regarding advance payments under contracts with 
educational institutions, see subpart 1832.4.

[54 FR 28291, July 5, 1989, as amended at 60 FR 40516, Aug. 9, 1995]



Sec. 1835.016  Broad agency announcements.

    (a) The following forms of broad agency announcements are authorized 
for use:
    (1) Announcements of Opportunity, described in subpart 1870.1, NASA 
Acquisition of Investigations System.
    (2) NASA Research Announcements, described in 1835.016-70.
    (3) Other forms of announcements approved by the Associate 
Administrator for Procurement.
    (b) Broad agency announcements may not preclude the participation of 
any offeror capable of satisfying the Government's needs unless a 
justification for other than full and open competition is approved under 
FAR 6.304 (see FAR 6.102(d)(2) and 35.001).
    (c) Other program announcements, notices, and letters not authorized 
by paragraph (a) of this section shall not be used to solicit proposals 
that may result in contracts.



Sec. 1835.016-70  NASA Research Announcements.

    (a) Scope. This subsection 1835.016-70 prescribes regulations and 
procedures for the use of a NASA Research Announcement (NRA), a form of 
broad agency announcement (see FAR 6.102(d)(2)). An NRA is used to 
announce research interests and, after peer or scientific review using 
factors in the NRA, select proposals for funding. Unlike an RFP 
containing a statement of work or specification to which offerors are to 
respond, an NRA provides for the submission of competitive project 
ideas, conceived by the offerors, in one or more program areas of 
interest to NASA. The NRA is intended to be used for those research 
procurements for which it would be impossible to draft an adequate RFP 
in sufficient detail without restraining the technical response and thus 
hindering the competition of ideas. An NRA shall not be used in place of 
an RFP when the procurement requirement is narrowly defined and it is 
necessary to use a detailed description or specification.
    (b) Issuance. (1) Each NRA shall be assigned a unique number in 
accordance with 1804.7102-1.
    (2) NRAs may remain open for proposal submission for a maximum of 
one year. They may not be amended or modified once issued, but may be 
reissued by assigning a new number and resynopsizing. (See also 
paragraph (g) of this section.) NRAs should remain open for at least 90 
days.
    (3) Before issuance, each field-generated NRA shall be concurred in 
by the procurement officer and approved by the installation's director 
or a designee, who shall serve as or designate a selecting official. 
Before issuance, each Headquarters-generated NRA shall be concurred in 
by General Counsel (Code GK) and the Director, Headquarters

[[Page 307]]

Acquisition Division (Code HW) and approved by the cognizant Program 
Associate Administrator or a designee, who shall serve as or designate a 
selecting official. If a Headquarters-generated NRA may result in awards 
by a NASA field installation, the concurrence of that installation's 
procurement officer may be sought in place of or in addition to Code 
HW's concurrence.
    (4) The contracting officer shall assure that the NRA is synopsized 
in the Commerce Business Daily (CBD). The synopsis required by FAR 
35.016(c) satisfies the synopsis requirement at FAR 5.201; the synopsis 
contemplated by FAR 5.205 is not required. The synopsis shall be brief 
and provide the address for obtaining a copy of the NRA. The technical 
part of the synopsis is to describe an area of interest and should not 
exceed 50 words.
    (5) The NRA shall be prepared, printed, and distributed by or under 
the direction of the selecting official. Distribution shall not begin 
until the concurrence of the procurement officer has been obtained and 
the contracting officer has confirmed that the synopsis requirements 
have been met. The NRA shall be distributed to each office responsible 
for receipt of unsolicited proposals and to the Office of Procurement 
(Code HS).
    (c) Content. The NRA shall consist of the following items in the 
order shown. This entire package shall be provided in response to 
requests.
    (1) Cover. The cover shall display:
    (i) ``OMB Approval Number 2700-0087'' in the upper right corner.
    (ii) Title (centered, in uppercase).
    (iii) ``NASA Research Announcement Soliciting Research Proposals for 
the Period Ending ________ '' (centered, on three lines, two inches 
below the title; insert closing date).
    (iv) NRA number (centered, two inches below closing date).
    (v) Official address for office issuing NRA (centered, at bottom of 
cover).
    (2) Summary and Supplemental Information.
    (i) The Summary and Supplemental Information shall not exceed two 
pages and shall include:
    (A) Title (centered, in uppercase).
    (B) Introductory paragraphs describing the purpose of the NRA and 
the period for receipt of proposals. When proposals received during this 
period may be grouped for evaluation at separate times, the introductory 
paragraphs shall indicate when evaluations are planned and shall include 
the following remark:

    A proposal that is scientifically and programmatically meritorious, 
but that cannot be accepted during its initial review under an NRA 
because of funding uncertainties, may be included in subsequent reviews 
unless the offeror requests otherwise.

    (C) NRA number.
    (D) Address for submitting proposals, including ``ATTN: NRA 
______.'' (Insert NRA number.)
    (E) Copies required.
    (F) Selecting official's title.
    (G) Name, address, and telephone number for additional technical 
information.
    (H) Name and telephone number of contracting office point of contact 
for administrative and contractual information.
    (I) Additional instructions supplementing the Instructions for 
Responding to NASA Research Announcements for Solicited Research 
Proposals (see subpart 1870.2). Such information shall be kept to the 
minimum necessary and shall cite specific ``Instructions'' paragraphs 
supplemented.
    (J) When awards will be chargeable to funds of the new fiscal year 
and the NRA is to be issued before funds are available, the NRA shall 
contain a statement as follows:

    Funds are not presently available for awards under this NRA. The 
Government's obligation to make awards is contingent upon the 
availability of appropriated funds from which payment can be made and 
the receipt of proposals that NASA determines are acceptable for award 
under this NRA.

    (ii) The Summary and Supplemental Information may include estimates 
of the amount of funds that will be available and the number of 
anticipated awards. A breakdown of the estimates by research area may 
also be shown.
    (iii) The Summary and Supplemental Information may indicate that 
proposals submitted under an earlier NRA and held for subsequent reviews 
will be considered and need not be resubmitted. The earlier NRA shall be 
identified by number in the following statement:


[[Page 308]]


    Proposals for which no selection decision was made under NRA ______ 
and held for subsequent reviews will be considered under this NRA and 
need not be resubmitted. (Insert NRA number).

    (3) Technical Description. The first page shall contain the NRA 
number and title at the top. A brief description not exceeding two pages 
is preferable, but it should be detailed enough to enable ready 
comprehension of the research areas of interest. Specifications 
containing detailed statements of work should be avoided. Any program 
management information included must be limited to matters that are 
essential for proposal preparation.
    (4) Instructions for Responding to NASA Research Announcements. The 
NRA shall contain instructions in accordance with 1870.203.
    (d) Unsolicited proposals. (1) Unsolicited proposals for new efforts 
that are within the scope of an open NRA shall be evaluated in 
accordance with 1815.506(b).
    (2) Unsolicited proposals for renewal of ongoing efforts that are 
within the scope of an open NRA shall be evaluated in accordance with 
1815.505-70.
    (3) A broad agency announcement is not an ``acquisition 
requirement'' as the term is used in FAR 15.507(a)(2).
    (e) Receipt of proposals, evaluation, and selection. (1) Proposals 
shall be protected as provided in 1815.508-70 and 1815.509-70.
    (2) Evaluation, selection, and award may occur during or after the 
period established for receipt of proposals. Late proposals and 
modifications shall be treated in accordance with 1815.412 (a) and (b).
    (3) When more than one time is established in the NRA for evaluating 
proposals, proposals received prior to the time established will be 
considered as part of the initial group to be evaluated. Subsequent 
groups of proposals to be evaluated shall be formed from those proposals 
received after the time established for the earlier evaluation groups 
and prior to the time established for a subsequent group, along with 
those proposals, if any, held over under paragraph (e)(8) of this 
section.
    (4) The selection decision shall be made following peer or 
scientific review of a proposal. Peer or scientific review shall involve 
(i) evaluation, outside NASA, by a discipline specialist in the area of 
the proposal, (ii) evaluation by an in-house specialist, or (iii) both. 
Evaluation by specialists outside NASA shall be conducted subject to the 
conditions in FAR 15.413-2(f) and NFS 1815.413 and 1815.413-2. In 
particular, the selecting official shall ensure compliance with FAR 
15.413-2(f)(5) regarding the designation of outside evaluators and 
avoidance of conflicts of interest. After receipt of a proposal and 
before selection, scientific or engineering personnel shall communicate 
with an offeror, regarding the proposal, only for the purpose of 
clarification, as defined in FAR 15.601, or in order to understand the 
meaning of some aspect of the proposal that is not clear, or in order to 
obtain confirmation or substantiation of a proposed approach, solution, 
or cost estimate.
    (5) Competitive range determinations shall not be made, and best and 
final offers shall not be requested.
    (6) Part of a proposal may be selected unless the offeror requests 
otherwise. In addition, changes to a selected proposal may be sought if 
(i) the ideas or other aspects of the proposal on which selection is 
based are contained in the proposal as originally submitted, and are not 
introduced by the changes; and (ii) the changes sought would not involve 
a material alteration to the requirements stated in the NRA. Changes 
that would affect a proposal's selection shall not be sought. When 
changes are desired, they may be described to the contracting officer 
under paragraph (e)(10)(ii) of this section, or the selecting official 
may request revisions from the offeror. The changes shall not transfer 
information from one offeror's proposal to another offeror (see FAR 
15.610(d)(2)). When collaboration between offerors would improve 
proposed research programs, collaboration may be suggested to the 
offerors.
    (7) The basis for selection of a proposal shall be documented in a 
selection statement applying the evaluation factors in the NRA. The 
selection statement represents the conclusions of the selecting official 
and must be self-contained. It shall not incorporate by reference the 
evaluations of the reviewers.

[[Page 309]]

    (8) A proposal that is scientifically and programmatically 
meritorious, but that is not selected during its initial review under an 
NRA, may be included in subsequent reviews unless the offeror requests 
otherwise. If the proposal is not to be held over for subsequent 
reviews, the offeror shall be notified that the proposal was not 
selected for award.
    (9) The selecting official shall notify each offeror whose proposal 
was not selected for award and explain generally why the proposal was 
not selected. If requested, the selecting official shall arrange a 
debriefing under 1815.1004, with the participation of a contracting 
officer.
    (10) The selecting official shall forward to the contracting 
officer--
    (i) The results of the technical evaluation, including the total 
number of proposals received under the NRA by the time of selection, the 
selection statement, and the proposal(s) selected for funding;
    (ii) A description of any changes desired in any offeror's statement 
of work, including the reasons for the changes and any effect on level 
of funding;
    (iii) If a contract will be used to fund the proposal, a description 
of deliverables, including technical reports, and delivery dates, 
consistent with the requirements of the NRA;
    (iv) A procurement request;
    (v) Comments on the offeror's cost proposal (either the selecting 
official's comments, which may be based on the reviewers' comments, or 
copies of the reviewers' comments with any different conclusions of the 
selecting official); these comments shall address the need for and 
reasonableness of travel, computer time, materials, equipment, 
subcontracted items, publication costs, labor hours, labor mix, and 
other costs; and
    (vi) A copy of the selected proposal as originally submitted, any 
revisions, and any correspondence from the successful offeror.
    (11) The selecting official may provide to the contracting officer 
copies of the reviewers' evaluations. Reviewers' names and institutions 
may be omitted.
    (12) The selecting official may notify each offeror whose proposal 
was selected for negotiation.
    (i) The notification shall state that--
    (A) The proposal has been selected for negotiation;
    (B) The offeror's business office will be contacted by a contracting 
officer, who is the only official authorized to obligate the Government; 
and
    (C) Any costs incurred by the offeror in anticipation of an award 
are at the offeror's risk.
    (ii) The notification may identify which award instrument has been 
recommended.
    (f) Award. If a contract is selected as the award instrument (see 
FAR 35.003(a) and 1835.003(a)), the contracting officer shall--
    (1) Advise the offeror that the Government contemplates entering 
into negotiations; the type of contract contemplated; and the estimated 
award date, level of effort, and delivery schedule;
    (2) Send the offeror a model contract, if necessary, including 
modifications contemplated in the offeror's statement of work, and 
request agreement or identification of any exceptions (the contract 
statement of work may summarize the proposed research, state that the 
research shall be conducted in accordance with certain technical 
sections of the proposal (which shall be identified by incorporating 
them into the contract by reference), and identify any changes to the 
proposed research);
    (3) Request the offeror to complete and return certifications and 
representations and Standard Form 33, Solicitation, Offer, and Award, or 
other appropriate forms;
    (4) Conduct negotiations in accordance with FAR subparts 15.8 and 
15.9, as applicable;
    (5) Award a contract by transmitting written notice of the award; 
and
    (6) Comply with FAR subparts 4.6 and 5.3 on contract reporting and 
synopses of contract awards.
    (g) Cancellation of an NRA. When program changes, program funding, 
or any other reasons require cancellation of an NRA, the office issuing 
the NRA

[[Page 310]]

shall notify potential offerors by using the mailing list for the NRA.

[60 FR 40516, Aug. 9, 1995, as amended at 60 FR 47713, Sept. 14, 1995]



Sec. 1835.070   NASA contract clauses and solicitation provision.

    (a) The contracting officer shall insert the clause at 1852.235-70, 
Center for AeroSpace Information, in all research and development 
contracts and in cost-reimbursement supply contracts involving research 
and development work.
    (b) The contracting officer shall insert the clause at 1852.235-71, 
Key Personnel and Facilities, in contracts when source selection has 
been substantially predicated upon the possession by a given offeror of 
special capabilities, as represented by key personnel or facilities.
    (c) The contracting officer shall insert the provision at 1852.235-
72, Plan for New Technology Reporting, in any solicitation for contract 
estimated to cost $2,500,000 or more if the contract is also to contain 
the clause at 1852.227-70, New Technology, unless, in consultation with 
the installation's New Technology Officer, the contracting officer 
determines that the provision is not appropriate. The contracting 
officer may insert the provision in solicitations for any such contract 
of a lesser dollar amount if deemed appropriate after consultation with 
the installation's New Technology Officer.

[54 FR 28291, July 5, 1989, as amended at 57 FR 58720, Dec. 11, 1992; 60 
FR 40518, Aug. 9, 1995]



PART 1836--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS--Table of Contents




     Subpart 1836.2--Special Aspects of Contracting for Construction

Sec.
1836.203  Government estimate of construction costs.
1836.205  Statutory cost limitations.
1836.209  Construction contracts with architect-engineer firms.

   Subpart 1836.3--Special Aspects of Sealed Bidding in Construction 
                                Contracts

1836.303  Invitations for bids.
1836.303-70  Additive and deductive items.
1836.304  Notice of award.
1836.370  Solicitation provisions.

                    Subpart 1836.5--Contract Clauses

1836.570  NASA contract clause and solicitation provision.
1836.570-1  Hurricane plan.
1836.570-2  Magnitude of requirement.

               Subpart 1836.6--Architect-Engineer Services

1836.602  Selection of firms for architect-engineer contracts.
1836.602-1  Selection criteria.
1836.602-2  Evaluation boards.
1836.602-3  Evaluation board functions.
1836.602-4  Selection authority.
1836.602-5  Short selection process for contracts not to exceed the 
          simplified acquisition threshold.
1836.602-70  Selection of architect-engineers for master planning.
1836.602-71  Conflict of interest.
1836.603  Collecting data on and appraising firms' qualifications.

    Subpart 1836.7--Standard and Optional Forms for Contracting for 
Construction, Architect-Engineer Services, and Dismantling, Demolition, 
                       or Removal of Improvements

1836.702  Forms for use in contracting for architect-engineer services.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28294, July 5, 1989, unless otherwise noted.



     Subpart 1836.2--Special Aspects of Contracting for Construction



Sec. 1836.203  Government estimate of construction costs.

    (a) The initiator of the Government estimate shall designate the 
estimate ``For Official Use Only'' unless the information in the 
estimate requires a security classification, in which event it shall be 
handled in accordance with applicable security regulations.
    (b) If the acquisition is by sealed bidding, the contracting officer 
shall file a sealed copy of the detailed Government estimate with the 
bids until bid opening. After the bids are read and recorded, the 
contracting officer shall remove the ``For Official Use Only'' 
designation, read the estimate, and record it in the same detail as the 
bids.

[[Page 311]]

    (c) If the acquisition is by negotiation, the contracting officer 
may disclose cost breakdown figures in the Government estimate during 
negotiations, but only to the extent necessary for arriving at a fair 
and reasonable price. However, the contracting officer shall not 
disclose the overall amount of the Government estimate prior to award. 
At the time of award, the ``For Official Use Only'' designation shall be 
removed. After award, the contracting officer may reveal the Government 
estimate, upon request, to offerors.



Sec. 1836.205  Statutory cost limitations.

    ``Statutory cost limitations'' refers to cost limitations that may 
be included in an agency's annual appropriation act.



Sec. 1836.209  Construction contracts with architect-engineer firms.

    (a) Except as provided in paragraph (c) of this section, contracting 
officers shall not--
    (1) Solicit offers for the construction of a facility from any firm, 
its subsidiaries, or affiliates furnishing architect-engineer services 
for that facility; or
    (2) Consider unsolicited offers from that firm, its subsidiaries, or 
affiliates.
    (b) An architect-engineer firm selected for negotiation of an 
architect-engineer services contract under the procedures in 1836.602 
shall be advised of the policy in paragraph (a) of this section before 
initiation of negotiations, if that firm possesses construction 
capabilities either within its own organization or through subsidiaries 
or affiliates. The firm shall have the option of either--
    (1) Declining to enter into contract negotiations, in order to be 
eligible to compete for the related construction contract; or
    (2) Entering into contract negotiations with the clear understanding 
that, if such negotiations are successful, the firm, its subsidiaries, 
and affiliates will be ineligible to compete for the related 
construction contract.
    (c)(1) The policy in FAR 36.209 does not apply when--
    (i) The Associate Administrator for Procurement, upon recommendation 
from Code HS, specifically authorizes, before the initiation of 
negotiations, use of a cost-plus-fixed-fee contract for both the design 
and construction of a facility; or
    (ii) A contract:
    (A) Is awarded on the basis of performance specifications for the 
construction of a facility, and
    (B) Requires the contractor to furnish construction drawings, 
specifications, or site adaptation drawings of the facility.
    (2) The contracting officer shall prepare requests for authorization 
pursuant to paragraph (b)(1)(i) of this section in sufficient detail to 
establish the need for procuring both design and construction under one 
contract. In neither of the excepted cases in paragraph (b)(1) of this 
section shall the firm that prepared the drawings and specifications be 
engaged to supervise and inspect, on behalf of the Government, the 
construction of the facility involved.



   Subpart 1836.3--Special Aspects of Sealed Bidding in Construction 
                                Contracts

1836.303  Invitations for bids.



Sec. 1836.303-70  Additive and deductive items.

    (a) When it appears that funds available for a project may be 
insufficient for all the desired features of construction, the 
contracting officer may provide in the invitation for bids for (1) a 
first or base bid item covering the work generally as specified and (2) 
one or more additive or deductive bid items progressively adding or 
omitting specified features of the work in a stated order of priority. 
In such case, the low bidder and the items to be awarded shall be 
determined as described in the provision at 1852.236-71, Additive or 
Deductive Items.
    (b) The contracting officer, before the opening of bids, shall 
determine and record in the contract file the amount of funds available 
for the project. This amount shall be controlling for determining the 
low bidder, but may be increased for determining the items to be 
awarded, provided that award on the combination of items does not exceed 
the amount offered by any other conforming responsible bidder for the 
same combination of items.

[[Page 312]]



Sec. 1836.304  Notice of award.

    Contract delivery or performance schedules, commencement of work, or 
notices to proceed shall not be expressed in terms of a notice of award. 
See NFS 1812.103. Also, see NFS 1814.408-1(f) for notice of award 
content and format.

[58 FR 51141, Sept. 30, 1993, as amended at 60 FR 47713, Sept. 14, 1995]



Sec. 1836.370  Solicitation provisions.

    (a) The contracting officer shall insert the provision at 1852.236-
71, Additive or Deductive Items, in invitations for bids for 
construction when it is desired to add or deduct bid items to meet 
available funding.
    (b) The contracting officer shall insert the provision at 1852.236-
72, Bids with Unit Prices, in invitations for bids for construction when 
the invitation contemplates unit prices of items.



                    Subpart 1836.5--Contract Clauses

1836.570  NASA contract clause and solicitation provision.



Sec. 1836.570-1  Hurricane plan.

    The contracting officer shall insert the clause at 1852.236-73, 
Hurricane Plan, in solicitations and contracts for construction at sites 
that experience hurricanes.



Sec. 1836.570-2  Magnitude of requirement.

    The contracting officer shall insert the provision at 1852.236-74, 
Magnitude of Requirement, in solicitations for construction. Insert the 
appropriate estimated dollar range in accordance with FAR 36.204.



               Subpart 1836.6--Architect-Engineer Services

1836.602  Selection of firms for architect-engineer contracts.



Sec. 1836.602-1  Selection criteria.

    (a) As permitted by FAR 36.602-1(a)(6), in evaluating architect-
engineer firms, the architect-engineer selection board shall apply any 
criteria set forth in the public notice regarding a particular 
requirement and the volume of work previously awarded to the firm by 
NASA, with the object of effecting an equitable distribution of 
contracts among qualified architect-engineer firms, including minority-
owned firms and firms that have not had prior NASA contracts.
    (b) It should be noted that the evaluation criteria in paragraph (a) 
of this section and FAR 36.602-1(a) are not listed in order of 
importance. The relative weight to be assigned to them may vary with the 
particular requirements of the individual procurement.
    (c) NASA will consider the immediate past 10 years as the period for 
evaluation under FAR 36.602-1(a) (2) and (4).



Sec. 1836.602-2  Evaluation boards.

    In compliance with 48 CFR (FAR) 36.602-2, the person designated as 
the selection authority, unless Field Installation Management 
Instructions designate higher authority, shall establish an architect-
engineer selection board to be composed of at least three voting 
members. Membership shall at least include: one currently registered 
architect or professional engineer, who shall serve as the board 
chairperson; an appropriate official from the requiring office; and, an 
appropriate technical official familiar with any unique subject matter 
(see 48 CFR (FAR) 36.102, Definitions, ``Architect-engineer services'') 
critical to the requirement. Each board shall include an appropriate 
procurement official (a contracting officer, if feasible) as an ad hoc 
advisor to the board and the selection authority. Where appropriate, a 
procurement official may serve as a voting member on evaluation boards. 
Appointment of non-Government employees as voting members is not 
authorized.

[60 FR 16059, Mar. 29, 1995]



Sec. 1836.602-3  Evaluation board functions.

    The report required by FAR 36.602-3(d) should, as a minimum, discuss 
each criterion for each offeror and explain why one firm is rated higher 
than the others.



Sec. 1836.602-4  Selection authority.

    The first level manager above the requirement office who is serving 
in grade GS 16 or above under the General

[[Page 313]]

Schedule or in a comparable or higher position under another schedule, 
or otherwise, is designated as the selection authority for purposes of 
48 CFR (FAR) 36.602.4.

[60 FR 16060, Mar. 29, 1995]



Sec. 1836.602-5  Short selection process for contracts not to exceed the simplified acquisition threshold.

    (a) Use of the procedures at 48 CFR (FAR) 36.602-5 (a) or (b) is at 
the discretion of the selection authority specified in 1836.602-4.
    (b) The selection authority specified in 1836.602-4 is designated as 
the selection authority for purposes of 48 CFR (FAR) 36.602-5(b)(2).

[60 FR 16060, Mar. 29, 1995, as amended at 60 FR 47713, Sept. 14, 1995]



Sec. 1836.602-70  Selection of architect-engineers for master planning.

    (a) Definition of master plan. A master plan is an integrated series 
of documents presenting in graphic, narrative, and tabular form the 
present composition of the installation and the plan for its orderly and 
comprehensive development to perform its various missions in the most 
efficient and economical manner.
    (b) Selection. (1) Selection of an Architect-Engineer for the 
development of a master plan in connection with the establishment of a 
new NASA activity or installation shall be made by the Associate 
Administrator having institutional responsibility. The report of the 
architect-engineer selection board will be concurred in at NASA 
Headquarters by the Associate Administrator for Management Systems and 
Facilities, the Associate Administrator for Procurement, the Chief 
Financial Officer (CFO/Comptroller, and the General Counsel.
    (2) The Associate Administrator for Management Systems and 
Facilities shall be responsible for the architect-engineer selection 
board report required by FAR 36.602-3(d) and necessary revisions 
required from the reviews in 1836.602-70(b)(1), if any, before 
presentation to the Associate Administrator having institutional 
responsibility.

[54 FR 28294, July 5, 1989, as amended at 54 FR 39373, Sept. 26, 1989; 
57 FR 40855, Sept. 8, 1992; 60 FR 16060, Mar. 29, 1995]



Sec. 1836.602-71  Conflict of interest.

    (a)(1) All persons participating in an architect-engineer 
evaluation, review or selection activity shall have a written 
certification on file in NASA stating knowledge of and compliance with 
the Office of Government Ethics' Standards of Ethical Conduct for 
Employees of the Executive Branch (August 1992) and the NASA Supplement 
(September 28, 1994) to the Office of Government Ethics's Standard of 
Ethical Conduct for Employees of the Executive Branch (August 1992). The 
minimum certification shall be:
                              Certification
    I, the undersigned, hereby certify that I have: (i) read the Office 
of Government Ethics' Standard of Ethical Conduct for Employees of the 
Executive Branch (August 1992) and the NASA Supplement (September 28, 
1994) to the Office of Government Ethics' Standard of Ethical Conduct 
for Employees of the Executive Branch (August 1992); (ii) filed the 
relevant [insert ``Standard Form 278'' for any employee who's annual 
salary is 120 percent above step one of grade 15 of the General Schedule 
(GS) or ``Standard Form 450'' for employees whose annual salary is at or 
below step ten of grade 15 of the General Schedule (GS)]; and, (iii) 
examined the attached list of competitors for the [Title] project before 
the architect-engineer selection board. I further certify that I have no 
financial or other personal interest in these firms.
_______________________________________________________________________

(Signature)
_______________________________________________________________________

(Date)
(End of certification)

    (2) Any person unwilling or unable to make and furnish the required 
certification shall be disqualified from participating in any architect-
engineer selection board activity.
    (3) The certification provided pursuant to 1836-602-71(a)(1) shall 
be on file with the Office of General Counsel (Code GG) for Headquarters 
persons and with the field installation Chief Counsel for field 
installation personnel.

[[Page 314]]

    (b) Any person signing a certification under 1836.602-71(a)(1) who 
subsequently acquires a real or apparent conflict of interest hereunder 
shall immediately cease further activity, report the conflict to the 
selection board chairperson and withdraw from further participation. 
Further, such conflicts are to be concurrently reported to the 
appropriate counsel's office who is responsible for determining whether 
any employee's acquired conflict necessitates any further action.
    (c) Any person associated with these activities who becomes aware of 
any extraneous influences being brought to bear on participants shall 
report such to the Office of Inspector General (Code W).

[54 FR 39374, Sept. 26, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 
60 FR 16060, Mar. 29, 1995]



Sec. 1836.603  Collecting data on and appraising firms' qualifications.

    The architect-engineer selection boards (see 1836.602-2) are 
designated as NASA's evaluation boards for the purposes of FAR 36.603.



    Subpart 1836.7--Standard and Optional Forms for Contracting for 
Construction, Architect-Engineer Services, and Dismantling, Demolition, 
                       or Removal of Improvements



Sec. 1836.702  Forms for use in contracting for architect-engineer services.

    (a) Architect-Engineer Contract (Standard Form 252). Instructions 
for completing this form are as follows:
    (1) Block 5--Project Title and Location. Include a short description 
of the construction project and the estimated cost of constructing the 
facilities for the project. If the space provided is insufficient, 
include a more detailed description in the contract's specification/work 
statement and identify the location of the more detailed description in 
Block 10.
    (2) Block 6--Contract for (General description of services to be 
provided). Include a brief description of the services and state that 
they are fully set out in the specification/work statement. Clearly 
specify the date by which design services must be completed. If 
supervision and inspection services during construction are to be 
procured, also clearly specify the date by which they must be completed 
and add a statement that the Government may extend the period for their 
performance as provided in the Changes clause of the contract.
    (3) Block 7--Contract Amount. If the contract is for both design and 
supervision and inspection services, set out the amounts for each effort 
separately.
    (b) Statement of architect-engineer services accompanying the SF 
252. The services to be furnished by an architect-engineer should be 
carefully defined during negotiation of the contract and a statement of 
them inserted in the contract's specification/work statement. The 
statement should clearly and concisely set forth the nature and extent 
of the services and include any special services, such as the nature and 
extent of subsurface exploration prior to designing foundations. A 
similar statement of supervision and inspection services should be 
inserted in the specification/work statement if supervision and 
inspection services are to be acquired.



PART 1837--SERVICE CONTRACTING--Table of Contents




               Subpart 1837.1--Service Contracts--General

Sec.
1837.101  Definitions.
1837.102  Policy.
1837.104  Personal services contracts.
1837.105  Competition in service contracting.
1837.110  Solicitation provisions and contract clauses.
1837.110-70  NASA contract clause.
1837.170  Pension portability.

            Subpart 1837.2--Advisory and Assistance Services

1837.200  Scope of subpart.
1837.202  Policy.
1837.202-70  NASA policy.
1837.202-71  Public inspection.
1837.204  Guidelines for determining availability of personnel.
1837.205  Responsibilities/Management controls.
1837.205-70  Requests for approval.
1837.205-71  Negotiation of contracts.

[[Page 315]]

                Subpart 1837.70--Procurement of Training

1837.7000  Scope of part.
1837.7001  General.
1837.7001-1  Purpose.
1837.7001-2  Training Act of 1958.
1837.7001-3  Competition in Contracting Act (CICA) of 1984.
1837.7001-4  Procedures.

    Authority: 42 U.S.C. 2473 (c)(1).

    Source: 54 FR 28296, July 5, 1989, unless otherwise noted.



               Subpart 1837.1--Service Contracts--General



Sec. 1837.101  Definitions.

    Pension portability means the recognition and continuation in a 
successor service contract of the predecessor service contract 
employees' pension rights and benefits.

[59 FR 60917, Nov. 29, 1994]



Sec. 1837.102  Policy.

    (a) To the maximum extent practicable, it is the policy of NASA to 
acquire services on the basis of the task to be performed rather than on 
a labor-hour basis.
    (b) The use of uncompensated overtime (as defined in the provision 
at 48 CFR 1852.237-72, Identification of Uncompensated Overtime) is 
neither encouraged nor discouraged. When the proposed uncompensated 
overtime is consistent with an offeror's written policies and practices, 
NASA will consider it in proposal evaluation, including the evaluation 
of cost and of professional compensation (see 48 CFR (FAR) 22.11). The 
provision at 48 CFR 1852.237-72 requires offerors to identify 
uncompensated overtime hours and the effective hourly rate for all Fair 
Labor Standards Act-exempt personnel included in their proposals and 
subcontractor proposals. This includes uncompensated overtime hours that 
are in indirect cost pools for personnel whose regular hours are 
normally charged direct (see 48 CFR 1815.608-72).

[60 FR 16064, Mar. 29, 1995]



Sec. 1837.104   Personal services contracts.

    (a) Under section 203(c)(9) of the National Aeronautics and Space 
Act of 1958 (42 U.S.C. 2473(c)(9)), NASA is authorized ``to obtain 
services as authorized by section 3109 of Title 5, United States Code, 
but at rates for individuals not to exceed the per diem rate equivalent 
to the rate for GS-18.'' 5 U.S.C. 3109, in turn, provides authority to 
procure by contract ``the temporary (not in excess of one year) or 
intermittent services of experts or consultants or organizations 
thereof, including stenographic reporting services.''
    (b) It is NASA policy to obtain the personal services of experts and 
consultants by appointment rather than by contract. The policies, 
responsibilities, and procedures pertaining to the appointment of 
experts and consultants are in the NASA Supplement to the Federal 
Personnel Manual.



Sec. 1837.105   Competition in service contracting.

    (a) See 1837.104 of this subpart regarding negotiation for personal 
and professional services.
    (b) Frequently NASA must contract for services that require 
immediate performance after minimum prior notice to proceed. Typical of 
these requirements are contracts for engineering services; maintenance, 
repair, or overhaul of specialized equipment; and printing or 
reproduction and data processing services to be furnished on a ``call 
basis'' when time is of the essence to meet priority requirements.
    (c) The NASA policy of obtaining competition to the maximum 
practicable extent applies to these types of services. Geographic 
limitations imposed on prospective contractors are likely to appear 
arbitrary to the business community and therefore are proper only when 
demonstrably justifiable. Even when a geographic limitation is 
justifiable, no firm desiring to compete for the procurement may be 
denied the opportunity to do so merely because it is located outside the 
geographic area. Such firms shall be permitted to submit offers, 
provided they can substantiate their capability to establish a facility 
in a location that complies with any required geographical limitation.
    (d) A preferred method of obtaining services or supplies required on 
a prompt response basis is by clearly describing in the solicitation the 
maximum time that may elapse between

[[Page 316]]

placement of the order or call and the delivery date. Such time 
limitations, when required by the nature of the procurement, will 
normally meet NASA's needs for prompt delivery without introducing 
unnecessarily restrictive criteria limiting the competitive field of 
prospective contractors.
    (e) The procurement officer or a designee shall review and approve, 
prior to distribution, solicitations that contemplate either a 
geographical-area or time-of-performance limitation.



Sec. 1837.110  Solicitation provisions and contract clauses.

    (a) The contracting officer shall obtain the Associate Administrator 
for Procurement's (Code HC) approval before using in a solicitation, 
contract, or negotiated contract modification for additional work any 
installation-developed clause involving pension portability.
    (b) The following provision applies to procurements under which 
professional and technical services are acquired on the basis of the 
number of hours to be provided, rather than on the task to be performed.
    (1) If the resulting contract is expected to exceed $500,000, the 
contracting officer shall insert in the solicitation the provision at 48 
CFR 1852.237-72, Identification of Uncompensated Overtime.
    (2) If the resulting contract is expected to exceed $100,000 but not 
exceed $500,000, the contracting officer may insert in the solicitation 
the provisions at 48 CFR 1852.237-72, Identification of Uncompensated 
Overtime.

[60 FR 16065, Mar. 29, 1995]



Sec. 1837.110-70   NASA contract clause.

    The contracting officer shall insert the clause at 1852.237-70, 
Emergency Evacuation Procedures, in solicitations and contracts for on-
site support services where emergency evacuations of the NASA 
installation may occur, e.g., snow, hurricanes, tornados, earthquakes, 
or other emergencies.



Sec. 1837.170  Pension portability.

    (a) It is NASA's policy not to require pension portability in 
service contracts. However, pension portability requirements may be 
included in a solicitation, contract, or contract modification for 
additional work under the following conditions:
    (1)(i) There is a continuing need for the same or similar services 
for a minimum of five years (inclusive of options) and, if and when the 
contractor changes, a high percentage of the predecessor contractor's 
employees are expected to remain with the program; or
    (ii) Where the employees under a predecessor contract were covered 
by a portable pension plan, a follow-on contract or a contract 
consolidating existing services shall include pension portability as 
long as the total contract period covered by the plan, past and future, 
covers five years.
    (2) Only defined contribution plans, or multiparty defined benefit 
plans operated under a collective bargaining agreement where the plan 
follows the employee instead of the employer, shall be permitted in the 
portability provisions;
    (3) Vesting shall be 100 percent at the earlier of one year of 
continuous employee service or contract termination;
    (4) There is a clear description of the plan, including coverage 
regarding service, pay, liabilities, vesting, termination, and benefits 
from prior contracts, as appropriate; and
    (5) The procurement officer has made a written determination that 
such a provision is in the Government's best interest, including the 
facts supporting that determination.
    (b) The procurement officer shall maintain a record of all written 
determinations that the use of pension portability is in the 
Government's best interest.

[59 FR 60917, Nov. 29, 1994]



            Subpart 1837.2--Advisory and Assistance Services

    Source: 55 FR 12176, Apr. 2, 1990, unless otherwise noted.



Sec. 1837.200  Scope of subpart.

    This subpart implements and supplements (FAR) 48 CFR part 37, 
subpart 37.2 and NMI 5104.5, Guidelines for the Use and Approval of 
Advisory and Assistance Services Obtained by Contract, and establishes 
procedures to be

[[Page 317]]

followed in contracting for advisory and assistance services.

[59 FR 12198, Mar. 16, 1994]
1837.202  Policy.



Sec. 1837.202-70  NASA policy.

    In addition to the prohibitions regarding advisory and assistance 
services listed at FAR 37.202(c)--
    (a) Contracts for advisory and assistance services shall not be 
continued longer than five years;
    (b) Advisory and assistance services of individual experts and 
consultants shall normally be obtained by appointment rather than by 
contract (see NMI 3304.1, Employment of Experts and Consultants);
    (c) Task orders for advisory and assistance services issued under 
the prime contract between the California Institute of Technology and 
NASA for the operation of the JPL facility must be reviewed and approved 
in accordance with this subpart 1837.2; and
    (d) Persons or organizations providing advisory and assistance 
services to NASA must be free from conflict of interest as delineated in 
FAR subpart 9.5, Organizational Conflicts of Interest, and NFS subpart 
1809.5. When considering advisory and assistance service arrangements 
with former Government employees, compliance with NFS 1803.7001 and 18 
U.S.C. 207 is required.



Sec. 1837.202-71  Public inspection.

    (a) NASA's annual Appropriations Act states: ``Except as otherwise 
provided under existing law or under an existing Executive Order issued 
pursuant to an existing law, the obligation or expenditure of any 
appropriation under this Act for contracts for any consulting service 
shall be limited to contracts which are (1) a matter of public record 
and available for public inspection, and (2) thereafter included in a 
publicly available list of all contracts entered into within twenty-four 
months prior to the date on which the list is made available to the 
public and of all contracts on which performance has not been completed 
by such date. The list required by the preceding sentence shall be 
updated quarterly and shall include a narrative description of the work 
to be performed under each such contract.''
    (b) In accordance with paragraph (a) of this section, on a quarterly 
basis the Office of Procurement (Code HC) prepares a list for public 
inspection and distributes it to NASA Information Centers pursuant to 
NMI 1382.2 (14 CFR 1206), Availability of Agency Records to Members of 
the Public.
    (c) Public inspection of advisory and assistance service contracts 
and purchase orders at NASA field installations in accordance with the 
Appropriations Act shall be limited to basic contract documents and 
modifications. Requests for copies of contracts or other data will be 
handled in accordance with NMI 1382.2.

[54 FR 28296, July 5, 1989, as amended at 59 FR 66270, Dec. 23, 1994]



Sec. 1837.204  Guidelines for determining availability of personnel.

    (a) The NASA official one level above the NASA program official 
responsible for the evaluation shall make the determination of non-
availability of personnel under FAR 37.204 (a) and (b). For field 
installations, the concurrence of the Office of Chief Counsel shall be 
obtained and for Headquarters actions, the concurrence of the Office of 
Associate General Counsel for Contracts shall be obtained. The 
contracting officer shall ensure that a copy of the determination is in 
the procurement file prior to issuance of a solicitation.
    (b) Outside peer review evaluators may be used to evaluate SBIR, 
STTR, NRA, AO, and unsolicited proposals without making the 
determination required by FAR 37.204.
    (c) The agreement required by FAR 37.204(c) shall be made by the 
program official responsible for the evaluation and the contracting 
officer.
    (d) Class determinations under FAR 37.204(e) shall be made by the 
Associate Administrator for Procurement. The installation procurement 
office shall forward its request with an explanation of the necessity 
for the use of outside evaluators as outlined in FAR 37.204(b) to Code 
HS.
    (e) See (NFS) 48 CFR 1815.413-2 Alternate II, for instructions 
concerning--

[[Page 318]]

    (1) The authority to release proposals resulting from RFP's outside 
the Government and
    (2) The requisite nondisclosure statements.

[61 FR 5314, Feb. 12, 1996]



Sec. 1837.205  Responsibilities/Management controls.

    The contracting officer shall include in each contract or purchase 
order file a copy of:
    (a) The contracting officer's determination that a contractual 
action constitutes advisory and assistance services;
    (b) The sponsoring office's Request for Approval to Acquire Advisory 
and Assistance Services by Contract; and
    (c) Authorization by the Associate Administrator for Management 
Systems and Facilities to commence procurement activities as required by 
NMI 5104.5, Subparagraph 7--Responsibilities/Management Controls.

[55 FR 47479, Nov. 14, 1990, as amended at 57 FR 40855, Sept. 8, 1992]



Sec. 1837.205-70  Requests for approval.

    (a) When a NASA field installation or headquarters office considers 
advisory and assistance services necessary and desirable, in accordance 
with the policy in FAR 37.202 and 1837.202-70, the requiring activity is 
responsible for preparing the documentation required by NMI 5104.5 and 
securing the prior approval of the Associate Administrator for 
Management Systems and Facilities (Code J).
    (b) Before processing any procurement action for advisory and 
assistance services, the contracting officer shall provide advice, as 
necessary, to the requiring activity on preparing the documentation 
required by NMI 5104.5 and ensure that this required documentation, 
including the necessary concurrences/approvals, is included in the 
official contract or purchase order file. For any proposed requirement, 
regardless of dollar value, where there is uncertainty as to whether the 
requirement is for advisory and assistance services, the contracting 
officer shall make a determination. For those requirements determined to 
be for advisory and assistance services which have not been approved by 
the Associate Administrator for Management Systems and Facilities (Code 
J), the contracting officer shall return the procurement request to the 
originating office for action in accordance with NMI 5104.5. In all such 
cases, the contracting officer's determination is final.

[55 FR 12176, Apr. 2, 1990, as amended at 57 FR 40855, Sept. 8, 1992]



Sec. 1837.205-71  Negotiation of contracts.

    (a) Contracting Officers shall include in all solicitations for 
advisory and assistance services a requirement that each offeror furnish 
the following information with the proposal, regardless of the pricing 
arrangements anticipated:
    (1) The names and qualifications of principal members of the 
contractor organization who will be responsible for the project.
    (2) The title of each official and the number of employees who will 
participate.
    (3) The estimated number of hours that each official and employee 
will contribute to the proposed project.
    (4) The standard billing rate per hour for each official and 
employee.
    (b) In addition, the solicitation and the resulting contract shall 
require that--
    (1) The contractor warrants that the rates quoted are not in excess 
of those charged nongovernmental clients for the same services performed 
by the same individuals;
    (2) The Government has the right to the working papers used by the 
participating officials and employees of the firm or organization in 
connection with the project;
    (3) Publication or distribution of the study, data, or related 
material is prohibited, except to the extent authorized by the 
contracting officer; and
    (4) The contractor agrees that any reports regarding organizational 
matters (as required by the contract) shall include, when feasible and 
in addition to the recommendations, alternative methods to be considered 
and the pros and cons of each alternative.

[[Page 319]]



                Subpart 1837.70--Procurement of Training

    Source: 57 FR 58720, Dec. 11, 1992, unless otherwise noted.



Sec. 1837.7000  Scope of part.

    This part contains NASA-unique regulations, which have no clearly 
identifiable FAR counterpart, on the procurement of training.
1837.7001  General.



Sec. 1837.7001-1  Purpose.

    This subpart provides policy guidance on the appropriate balance 
between the use of CICA and the Training Act for the procurement of 
NASA's training requirements.



Sec. 1837.7001-2  Training Act of 1958.

    The Training Act of 1958 (5 U.S.C. 4101 et seq.) may be used for 
training of NASA employees by, in, or through non-Government off-the-
shelf training courses which are available to the public. These include 
established university catalog courses or commercial course offerings 
that are offered to the general public at catalog or market prices.



Sec. 1837.7001-3  Competition in Contracting Act (CICA) of 1984.

    The procurement of a new training course that must be developed to 
fulfill a specific NASA need should be conducted in accordance with CICA 
under the applicable provisions of the Federal Acquisition Regulation 
(FAR) and the NASA FAR Supplement (NFS).



Sec. 1837.7001-4  Procedures.

    (a) Installation training and procurement offices are encouraged to 
collaborate in selecting the type of instrument (see FAR and NFS parts 
13 and 16) which is most efficient in effective procurement of training.
    (b) Installations should develop internal procedures in consonance 
with the guidance contained herein.



PART 1839--ACQUISITION OF FEDERAL INFORMATION PROCESSING RESOURCES--Table of Contents




                    Subpart 1839.70--NASA Procedures

Sec.
1839.7000  Scope of subpart.
1839.7001  Policy.
1839.7002  Applicability.
1839.7003  APRs from installations.
1839.7003-1  Responsibility.
1839.7003-2  FIRMR applicability and procurement authority 
          certification.
1839.7003-3  GSA nonmandatory MAS contracts.
1839.7003-4  APR format.
1839.7003-5  APR submission.
1839.7003-6  DPA amendments.
1839.7004  FIP Resources Decision Document.
1839.7005  Coordination.
1839.7006  DPA transmittal.
1839.7007  Numbering provisions and clauses.
1839.7008  NASA contract clause.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 57 FR 58721, Dec. 11, 1992, unless otherwise noted.



                    Subpart 1839.70--NASA Procedures



Sec. 1839.7000  Scope of subpart.

    This subpart prescribes the internal NASA procedures to be used by 
installations in obtaining General Services Administration (GSA) 
authorization to contract for Federal information processing (FIP) 
resources.



Sec. 1839.7001  Policy.

    (a) NASA policies and procedures on the acquisition of FIP resources 
are prescribed in NASA Handbook (NHB) 2410.1, NASA Information Resources 
Management Handbook. See NFS 1804.470 regarding NASA policy on automated 
information security.
    (b) The Designated Senior Official (DSO), the Chief Information 
Officer (Code A), has responsibility and accountability for 
interpreting, applying, and overseeing the implementation of the Federal 
Information Resources Management Regulations (FIRMR) (41 CFR chapter 
201) within NASA.

[57 FR 58721, Dec. 11, 1992, as amended at 60 FR 40518, Aug. 9, 1995]

[[Page 320]]



Sec. 1839.7002  Applicability.

    This subpart is applicable to all procurements of FIP resources.



Sec. 1839.7003  APRs from installations.



Sec. 1839.7003-1   Responsibility.

    The acquisition of FIP resources is a shared responsibility of the 
requiring activity, the procurement officer, and the information 
resources management (IRM) organization.
    (a) The installation's procurement officer is responsible for 
ensuring that the following actions are taken:
    (1) Required documentation is uniquely identifiable, complete, 
adequate, severable, and readily available in files controlled by the 
contracting office.
    (2) Timely submission of APRs to Headquarters Code JTD in accordance 
with 1839.7003-5.
    (3) Initiating an APR for a revised DPA if events invalidate the 
existing DPA or require additional or modified authorization from GSA in 
accordance with 1839.7003-6.
    (b) The contracting officer is responsible for the following 
actions:
    (1) Determining FIRMR applicability in accordance with 1839.7003-2;
    (2) Determining whether an APR should be initiated in accordance 
with 1839.7003-2;
    (3) Ensuring that installation prescribed approvals have been 
obtained to allow initiation of the acquisition; and
    (4) Conducting the acquisition in compliance with the DPA. This 
includes ensuring that solicitations are released, and contracts are 
executed and performed, consistent with the DPA.
    (c) The Senior Installation IRM Official (SIIO) is responsible for 
formally concurring on all APRs.

[57 FR 58721, Dec. 11, 1992, as amended at 60 FR 40518, Aug. 9, 1995]



Sec. 1839.7003-2  FIRMR applicability and procurement authority certification.

    The contracting officer shall:
    (a) Review the requirements and determine how the requirements will 
be satisfied, if FIP resources will be involved, and the categories and 
values of the FIP resources to be acquired or used. Each category of FIP 
resources (FIP equipment, FIP software, FIP services, FIP support 
services, and FIP related supplies) must be individually identified as 
accurately as possible (see FIRMR 201-4.001). FIP maintenance is 
considered a subset of FIP support services.
    (b) Determine if the agency has authority to acquire the FIP 
resources by virtue of a specific agency or regulatory delegation, or if 
a specific acquisition delegation must be obtained. This requires 
comparing the total estimated dollar value of all the FIP resources to 
be acquired to the criteria and thresholds specified in FIRMR 41 CFR 
201-20.305. NASA may contract for FIP resources without obtaining a 
specific acquisition delegation when the total dollar value of FIP 
resources, including all optional quantities and periods over the life 
of the contract, does not exceed the authority delegated from GSA; 
except that the dollar value for a specific make and model specification 
or for requirements available from only one responsible source may not 
exceed the authority delegated from GSA.
    (1) Assessments and determinations for acquisitions greater than 
$50,000 will be documented in the contract file with the following 
certification format:
                                (Format)
       FIRMR Applicability and Procurement Authority Certification

Procurement Title:______________________________________________________
Procurement Request Number:_____________________________________________

    The acquisition requirements have been reviewed and an assessment of 
the resources to be delivered or used in satisfying these requirements 
has been made. These resources have been characterized as either FIP or 
non-FIP resources. Based on FIRMR 201-1.002, including FIRMR bulletin A-
1 and NHB 2410.1, I determine that the subject procurement is______ /is 
not______ subject to the FIRMR.
    [Note: If the contract will involve information technologies 
determined to be not subject to the FIRMR (see FIRMR 201-1.002-2), 
explain the rationale in a separate attachment.]

[[Page 321]]

    If the acquisition is subject to the FIRMR, I certify that the 
thresholds in NFS 1839.7003-2(b) have been reviewed and that this 
procurement does______ /does not ______ require a specific acquisition 
Delegation of Procurement Authority.
    FIP Resources:

Equipment $_____________________________________________________________
Software________________________________________________________________
Services________________________________________________________________
Support Services________________________________________________________
Related Supplies________________________________________________________
  Total FIP Resources $_________________________________________________
  Non-FIP Resources $___________________________________________________
  (Include incidental and embedded FIP Resources)
  Total of All Resources $______________________________________________
Contracting Officer:____________________________________________________
Concurrence (if required)_______________________________________________
(SIIO if $25 million or more)
(SIIO or designee if less than $25 million and required by Installation 
procedures)
    ______Attachment: Rationale for Non-Applicability of FIRMR to FIP 
Resources.

                             (End of format)

    (2) The contracting officer shall provide an information copy of the 
FIRMR Applicability and Procurement Authority Certification through the 
cognizant IPO to Code JT for acquisitions $25 million or more.
    (3) Assessments and determinations for acquisitions $50,000 or less 
will be documented in the contract file in accordance with local 
procedures.
    (c) Although the contracting officer has authority to make decisions 
concerning the applicability of the FIRMR to NASA solicitations and 
contracts or modifications, in the event of a disagreement within the 
Installation as to the applicability of the FIRMR to a NASA solicitation 
or contract or modification, the SIIO has the authority to make final 
decisions.

[57 FR 58721, Dec. 11, 1992, as amended at 60 FR 40518, Aug. 9, 1995]



Sec. 1839.7003-3  GSA nonmandatory MAS contracts.

    (a) Use of GSA nonmandatory multiple award schedule (MAS) contracts 
is a competitive procedure relative to FAR Part 6 when:
    (1) The contracting officer has complied with FIRMR 201-39.803-
3(a)(2) to consider a reasonable number of nonmandatory MAS contractors 
that can satisfy the functional requirements;
    (2) The contracting officer has fully complied with FIRMR 201-
39.803-3(b) regarding responses to any required synopsis; and
    (3) The contract file is adequately documented that the delivery 
order placed to the selected nonmandatory MAS contractor represents the 
lowest overall cost to the Government.
    (b) If the procedures in paragraph (a) are followed, even though the 
resultant order may be issued for a specific manufacturer's product by 
name and model number, this is not a procurement for a specific make or 
model requiring a Justification For Other Than Full and Open Competition 
(JOFOC); the exception in FIRMR 201-39.601-2 applies.
    (c) Generally a ``reasonable number'' means consideration of at 
least two compliant nonmandatory MAS contractors. Prudence would suggest 
considering three or more compliant nonmandatory MAS contractors.
    (d) A specification that attempts to describe salient 
characteristics is not in itself conclusive evidence of a full and open 
competitive environment. The decisive factor is whether a product other 
than a specific make or model can satisfy the requirements expressed in 
such a specification. For example, if the salient characteristics were 
repeated off of or were derived directly from a product specification, a 
new product release issuance, or similar data sheet of a specific make 
or model or brand name, the requirements are probably not described in 
other than specific make or model specifications. Salient 
characteristics so derived are likely to be product-specific performance 
characteristics or proprietary design specifications. This 
specification, although it includes salient functional or performance 
characteristics, does not provide for full and open competition.
    (e) Use the competitive threshold authority delegated from GSA for 
obtaining a DPA when use of a GSA nonmandatory MAS contract is a 
competitive procedure relative to FAR part 6. Use the noncompetitive 
threshold authority delegated from GSA when use of a GSA nonmandatory 
MAS contract is a noncompetitive procedure relative to FAR part 6.

[[Page 322]]

    (f) A brand name specification is a specific make or model 
specification and if an acquisition requires a contractor to comply with 
either such specifications, the acquisition must be justified and 
approved in accordance with FAR 6.303 and 6.304.

[57 FR 58721, Dec. 11, 1992, as amended at 60 FR 40518, Aug. 9, 1995]



Sec. 1839.7003-4  APR format.

    (a) (FIRMR) 41 CFR 201-20.305-3 requires NASA to prepare APRs as 
indicated by instructions in the FIRMR Bulletin series. APRs under the 
Trail Boss Program will be submitted in the format provided in FIRMR 
Bulletin C-7, entitled ``Trail Boss Program,'' as modified by Enclosure 
C-5B of NHB 2410.1. APRs for all other FIP resources, will be submitted 
in the format provided in FIRMR Bulletin C-5, entitled ``Instructions 
for Preparing an Agency Procurement Request (APR),'' as modified by 
Enclosure C-4B of NHB 2410.1.
    (b) When FIP resources are being acquired under an indefinite 
delivery/indefinite quantity contract or under a contract that includes 
options for additional quantities of such resources, include a statement 
in the APR similar to the following:

    The __________ (identifying contracting activity) is the primary 
requiring activity for the items described in this APR. However, to 
further the most efficient and economical agency-wide acquisition of 
these resources, the contract will allow delivery to other NASA 
installations having requirements for the same resources. The __________ 
(identify contracting activity) will have the sole authority to place 
orders under this contract and authorize delivery to the alternate 
delivery points.
    (c) The following matrix is provided to help in deciding if a 
document is required by the APR under Regulatory Compliance:

------------------------------------------------------------------------
                                          Documentation items           
     Type of requirement     -------------------------------------------
                               1   2   3   4   5   6   7   8   9  10  11
------------------------------------------------------------------------
FIP equipment...............   R   R   A   S   P   P   P   C   C   C   T
FIP software................   R   R   A   S   P   P   P   C   C   C   T
FIP services................   R   R   A   S   P   N   P   C   C   C   T
FIP support services........   R   R   N   N   P   N   P   N   N   N   T
FIP related supplies........   R   R   N   N   P   P   P   N   N   N   T
------------------------------------------------------------------------

                       Documentation Items Legend

    1. Requirements analysis (FRDD part 2).
    2. Analysis of alternatives (FRDD part 3).
    3. Determination to support hardware compatibility-limited 
requirements.
    4. Conversion study (FRDD part 3).
    5. Certified data to support a requirement available from only one 
responsible source (the JOFOC).
    6. Certified data to support use of a specific make and model 
specification (the JOFOC).
    7. Description of planned actions necessary to foster competition 
for subsequent acquisitions (the JOFOC).
    8. Justification for more than one agency to provide switching 
facilities or services at building locations (FIRMR 201-20.305-
1(a)(1)(i)).
    9. Exception to the use of the FTS2000 mandatory network services 
(FIRMR 201-20.305-1(a)(1)(ii) and 201-24.101-1(b)).
    10. Exception to the use of GSA mandatory local telecommunications 
services (FIRMR 201-20.305-1(a)(1)(ii) and 201-24.102(c)).
    11. Trail Boss Charter and Statement of Qualification.

R=Required.
A=Required if there are compatibility limited requirements.
N=Not required.
P=Required unless full and open competition.
C=Required if telecommunications exceptions are sought.
S=Required if a conversion study must be performed for equipment, 
software, or services.
T=Required for a Trail Boss Acquisition.

[57 FR 58721, Dec. 11, 1992, as amended at 58 FR 59189, Nov. 8, 1993; 60 
FR 40518, Aug. 9, 1995]



Sec. 1839.7003-5  APR submission.

    (a) The contracting officer shall forward the original of the APR 
submittal (the APR and all required documentation) to Headquarters Code 
JTD, with a transmittal letter (see NHB 2410.1, Enclosures C-4A and C-
5A) signed by the procurement officer. Include a 5\1/4\ '' or 3\1/2\ '' 
diskette, formatted for use on a

[[Page 323]]

DOS 3.3, or higher compatible, personal computer, that contains a 
WordPerfect 5.0 or 5.1 or ASCII format of the APR.
    (b) APR's should be submitted as soon as, but not before, the FRDD 
and other documentation (waivers, JOFOCs, procurement plans, or ASM 
minutes, as appropriate) have been completed and approved in final form 
within the Agency.

[60 FR 40518, Aug. 9, 1995]



Sec. 1839.7003-6  DPA amendments.

    (a) The maximum possible cumulative dollar value of the contract(s) 
entered into by authority of a DPA may not exceed the value of the DPA 
granted by GSA. A DPA is granted on the basis of information contained 
in the APR. An amendment to a DPA must be obtained whenever any material 
change is expected from the basis on which the DPA was granted. This 
applies to any specific acquisition DPA, including a Trail Boss DPA. An 
APR shall be used to accomplish this.
    (b) Amendments to a previously submitted or approved specific 
acquisition DPA should follow the same procedures and employ the same 
format as that required by the current FIRMR and (NFS) 48 CFR part 1839. 
For such an APR, see NHB 2410.1, Enclosure C-3, paragraph 2. The 
existing documentation supporting the acquisition should be reviewed and 
certified by the procurement officer as to its timeliness. If this 
documentation is either not current or affected by the amendment, the 
documentation shall be revised. If an original document was submitted or 
requested by Headquarters or GSA, its revision shall be resubmitted with 
the APR.
    (c) The following are reasons for submitting an APR to seek an 
amended DPA:
    (1) A substantive revision in the technical requirements.
    (2) A change in acquisition strategy.
    (3) Slippages in the planned contract award date that exceed 12 
months. (Slippages less than 12 months should be identified to GSA 
during routine status reporting.)
    (4) A change in contract life.
    (5) A change in the position title or organizational identity of the 
official authorized to conduct the acquisition.
    (6) An increase in anticipated contract costs.
    (d) Contracting officers should inform Code JTD of any expected 
decreases greater than 25 percent in the total FIP resources to be 
acquired on a DPA. Code JTD will determine whether GSA should be 
informed of such decreases.

[57 FR 58721, Dec. 11, 1992, as amended at 60 FR 40519, Aug. 9, 1995]



Sec. 1839.7004  FIP Resources Decision Document.

    When NHB 2410.1 provides for approval of a FIP Resources Decision 
Document (FRDD) at the local level, the approved FRDD, including its 
enclosures and attachments, must be an enclosure to the APR. Unless the 
FRDD has previously been sent to Headquarters, the FRDD is submitted to 
Headquarters along with the APR.

[57 FR 58721, Dec. 11, 1992, as amended at 60 FR 40519, Aug. 9, 1995]



Sec. 1839.7005  Coordination.

    (a) APRs are subject to comparison with acquisition plans and 
general review by Code HS, Code JTD, and the cognizant IPO before 
submission to GSA.
    (b) Communications with GSA regarding APRs shall be through Code 
JTD, unless that office directs otherwise. Installations should refer 
any direct inquiries from GSA, with the exception of acquisitions under 
the Trail Boss Program, without comment, to Code JTD.
    (c) NASA will not normally make presentations to GSA regarding APRs 
unless requested by GSA. Any exceptions are subject to coordination by 
Code HS, Code JTD, and the cognizant IPO.



Sec. 1839.7006  DPA transmittal.

    (a) GSA delegates its procurement authority to the DSO. The DSO must 
explicitly redelegate specific acquisition DPAs to the contracting 
organization, before the contracting officer has authority to either 
issue solicitations or obligate NASA. Delegation of regulatory and 
specific agency procurement authority will be handled as directed by the 
Chief Information Officer.

[[Page 324]]

    (b) GSA's delegations of specific acquisition authority to NASA, 
with the exception of acquisitions under the Trail Boss Program, are 
transmitted to Code A or designee (Code JTD), and are redelegated to the 
appropriate procurement officer by transmitting the approved APR and the 
signed DPA with a cover letter containing additional instructions and 
guidance. A copy of this entire package shall be retained in the 
contract file.
    (c) GSA's delegations of specific acquisition authority to NASA, for 
acquisitions under the Trail Boss Program, are transmitted to the Trail 
Boss, and are redelegated to the appropriate procurement officer by 
transmitting the approved APR and the signed DPA with a cover letter 
containing additional instructions and guidance. A copy of this entire 
package shall be retained in the contract file.
    (d) Pre-award and post-award reports include 6-Month Status Reports 
and Contract Award Reports.
    (1) GSA requires a 6-Month Status Report on all specific acquisition 
DPA's for which a contract or modification has not been awarded. The 
contracting officer shall submit status reports to Code JT not later 
than May 15 and November 15 of each year. The contents of these reports 
are specified in the DPA.
    (2) GSA requires a Contract Award Report within 30 days after award 
of a contract or modification issued pursuant to a specific acquisition 
DPA. The contracting officer shall submit Contract Award Reports to Code 
JT not later than 25 days after the award of a contract or modification.
    (e) Code JTD requires an Annual Status Report on all extant 
contracts with specific acquisition DPA's. The contracting officer shall 
submit an Annual Status Report to Code JT not later than November 15 of 
each year. The reports are in lieu of (and not in addition to) GSA's 
annual reporting requirement.
    (f) Questions from either GSA or the installation regarding the DPA 
shall be referred to Code JTD.

[57 FR 58721, Dec. 11, 1992, as amended at 60 FR 40519, Aug. 9, 1995]



Sec. 1839.7007  Numbering provisions and clauses.

    When adherence to the FIRMR results in the use of provisions or 
clauses not prescribed in the FAR or NFS, use the FIRMR number and FIRMR 
provision or clause title.



Sec. 1839.7008  NASA contract clause.

    (a) The contracting officer shall insert the clause substantially as 
stated at 1852.239-70, Alternate Delivery Points, in solicitations and 
contracts for Federal Information Processing Resources when:
    (1) An indefinite delivery/indefinite quantity contract will be used 
or when the contract will include options for additional quantities of 
such resources; and
    (2) Delivery is F.O.B. destination to the contracting activity.
    (b) When delivery is F.O.B. origin and Government bills of lading 
(GBL) are used, the contracting officer shall use the clause with its 
Alternate I.

[58 FR 59189, Nov. 8, 1993]

[[Page 325]]



                    SUBCHAPTER G--CONTRACT MANAGEMENT





PART 1840--[RESERVED]






PART 1841--ACQUISITION OF UTILITY SERVICES--Table of Contents




                         Subpart 1841.1--General

Sec.
1841.101  Definitions.

               Subpart 1841.2--Acquiring Utility Services

1841.201  Policy.
1841.204  GSA areawide contracts.
1841.205  Separate contracts.
1841.205-70  Renewal of contracts.
1841.205-71  Headquarters requirement for copies of contracts.
1841.205-72  Contents of a negotiated utility service contract.
1841.205-73  Authorization for procurement of wellhead natural gas.
1841.205-74  Utility service narrative.
1841.205-75  Contracts requiring Headquarters approval.
1841.206  Interagency agreements.

                     Subpart 1841.4--Administration

1841.402  Rate changes and regulatory intervention.

       Subpart 1841.5--Solicitation Provision and Contract Clauses

1841.501  Solicitation provision and contract clauses.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 60 FR 16060, Mar. 29, 1995, unless otherwise noted.



                         Subpart 1841.1--General



Sec. 1841.101  Definitions.

    Utility suppliers, as used in this subpart, may be quasi-public 
service corporations, private concerns, municipalities, associations, or 
cooperatives. They generally operate in a franchised territory without 
competition, so they may frequently be in a sole-source position. Under 
common law, public utilities must render service at reasonable rates and 
without discrimination. Their operations, management, rates, and profits 
are usually regulated by Federal, State, or local regulatory bodies, but 
absence of a regulatory body does not necessarily mean a complete lack 
of control. Administrative remedies pursuant to enabling statutes may be 
pursued or complaints may be taken to a court of competent jurisdiction.


               Subpart 1841.2--Acquiring Utility Services


Sec. 1841.201  Policy.

    (a) Requirements for utility services shall be determined by 
technically qualified personnel who will assist the contracting officer 
as required. Before soliciting technical assistance outside the agency 
(see 48 CFR (FAR) 41.203), technical personnel shall contact the 
Environmental Management Division (Code JE), NASA Headquarters.
    (b) Appropriated funds may not be used to purchase electricity in a 
manner inconsistent with state law governing the provision of electric 
utility service, including state utility commission rulings and electric 
utility franchises or service territories established pursuant to state 
statute, state regulation, or state-approved territorial agreements 
(Pub. L. 100-202, Sec. 8093, 101 Stat. 1329-79). Before acquiring 
electric utility service, the contracting officer shall determine 
whether the manner of acquisition, in particular, competitive 
acquisition under 48 CFR (FAR) 41.205(b), would be inconsistent with 
state law. Section 8093 of Pub. L. 100-202 is not intended to affect 
transfers of electricity to agencies from Federal power marketing 
agencies or the Tennessee Valley Authority, such as NASA's power 
allocation from the Western Area Power Marketing Administration. Such 
transfers do not constitute ``purchases'' for purposes of section 8093.



Sec. 1841.204  GSA areawide contracts.

    (a) GSA publishes a checklist of utility services available under 
its areawide public utility contracts. The checklist specifies contract 
numbers, expiration dates, companies, and areas serviced. Copies of the 
checklist may be obtained from GSA, Public Utility

[[Page 326]]

Division (PPU), Public Buildings Service, Washington, DC 20405 ((202) 
501-3994).
    (b) In determining whether a GSA area-wide public utility contract 
is adequate to meet requirements, procurement officers should consider 
(1) the areawide contract rates and volume of service required, (2) any 
unusual characteristics of the service required, (3) any special 
equipment or facility requirements, (4) any special technical contract 
provisions required, and (5) any other special circumstances.
    (c) If a procurement officer finds that a separate negotiated 
contract would be more advantageous to the Government than the GSA 
areawide public utility contract, the procurement officer shall submit a 
request to the Associate Administrator for Procurement, NASA 
Headquarters (Code HS), for a waiver of the requirement to use the GSA 
areawide public utility contract. The request shall explain the merit of 
a separately negotiated contract.



Sec. 1841.205  Separate contracts.



Sec. 1841.205-70  Renewal of contracts.

    (a) A contract may be renewed or extended by option, provided that 
the contract is not in effect for more than a total of 5 successive 
years.
    (b) Contracting officers shall consider selecting an expiration date 
for the contract sufficiently after the end of the fiscal year to ensure 
that appropriations will be available when the option is exercised.



Sec. 1841.205-71  Headquarters requirement for copies of contracts.

    The contracting officer shall forward, promptly after execution, one 
copy of each contract, service authorization form, memorandum of 
understanding, and modification to the Associate Administrator for 
Procurement, NASA Headquarters (Code HS) and the Environmental 
Management Division, NASA Headquarters (Code JE).



Sec. 1841.205-72  Contents of a negotiated utility service contract.

    (a) All negotiated utility service contracts estimated to exceed 
$2,500 annually shall be written in accordance with the directions in 
paragraphs (a)(1) through (5) of this section:
    (1) SF 26. Use Standard Form 26 (see 48 CFR (FAR) 53.215-1(b)).
    (2) Appendix A.
    (i) Include the rate schedule, which shall consist of--
    (A) The published rate schedule of the contractor approved or 
established by a Federal, State, or other regulatory body; or
    (B) The rate schedule negotiated between the contractor and the 
Government.
    (ii) The rate schedule shall bear the legend ``Appendix A, attached 
to and made a part of Contract No. ______,'' and be entitled ``Rate 
Schedule.'' Each page shall indicate its number and the total number of 
pages comprising Appendix A, as, for example, ``page 1 of 3.'' In 
addition to stating the rate applicable to the contract, Appendix A 
shall include any applicable rules or regulations (whether established 
by the regulatory body, the contractor, or negotiation between the 
contractor and the Government) pertaining to the Rate Schedule. Appendix 
A may provide for payment to the contractor of a nonrecurring, 
nonrefundable fee not exceeding $1,000 for the costs of connecting the 
contractor's facilities to, and disconnecting them from, the 
Government's facilities, if the contract period is less than 6 months. 
In all other instances where a connection charge is involved, the 
``Connection Charge'' clause (48 CFR (FAR) 52.241-9) and Appendix C (see 
paragraph (a)(4) of this section) shall be included in the contract.
    (3) Appendix B. Include the service specifications applicable to the 
contract, which shall consist of a specially drafted attachment to the 
contract bearing the legend ``Appendix B, attached to and made a part of 
Contract No.______,'' and the title of the appropriate service 
specifications. Each page shall indicate its number and the total number 
of pages comprising Appendix B, as, for example, ``page 1 of 3.'' Such 
appendix shall contain as a minimum--
    (i) The premises to be served;
    (ii) An estimate of the service requirements;
    (iii) The point of delivery to the Government;

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    (iv) A description of the service;
    (v) A statement of how the service is to be measured for purposes of 
billing; and
    (vi) A statement of the capacity and flow of the service.
    (4) Appendix C. Include the connection charge schedule required 
whenever the contract includes the connection charge clause at 48 CFR 
(FAR) 52.241-9 or the termination clause at 48 CFR (FAR) 52.241-10. It 
shall bear the legend ``Appendix C, attached to and made a part of 
Contract No. ______,'' and be entitled ``Connection Charge Schedule.'' 
Each page shall indicate its number and the total number of pages 
comprising Appendix C, as, for example, ``page 1 of 3.'' The appendix 
shall contain as a minimum a detailed description of the new facilities 
to be furnished by the contractor.
    (5) Include any contract clauses required by 1841.501 or 48 CFR 
(FAR) 41.501.
    (b) Any negotiated utility service contract estimated not to exceed 
$2,500 annually shall consist of--
    (1) Standard Form 26 (48 CFR (FAR) 53.215-1(b));
    (2) An Appendix A (see paragraph (a)(2) of this section); and
    (3) Any contract clauses required by 1841.501 or 48 CFR (FAR) 
41.501.



Sec. 1841.205-73  Authorization for procurement of wellhead natural gas.

    (a) Acquisition of wellhead natural gas and interstate 
transportation of the natural gas to locally franchised distribution 
utility companies' receipt points (city gate) is considered the 
procurement of supplies rather than the procurement of public utility 
services described in 48 CFR (FAR) part 41. Therefore, wellhead natural 
gas and interstate transportation of such gas should be obtained 
directly by NASA under applicable authorities and FAR procedures 
governing the acquisition of supplies. Redelivery of the gas from the 
city gate to the NASA facility is considered a utility service since it 
is provided only by the locally franchised utility. GSA is responsible 
for obtaining an appropriate contract for the redelivery service in 
accordance with 48 CFR (FAR) 41.204.
    (b) GSA provides assistance to Federal agencies in the procurement 
of natural gas wellhead supplies. Contracting officers requiring 
assistance in determining the feasibility of procuring natural gas 
supplies on a facility by facility basis may contact General Services 
Administration, Public Building Services, Public Utilities Division, 
Code PPU ((202) 501-3994). In contacting GSA, contracting officers 
should provide data pertaining to present gas usage exceeding 50,000 Mcf 
per year. GSA has found that 50,000 Mcf is the annual volume below which 
wellhead purchases may not be economically feasible.



Sec. 1841.205-74  Utility service narrative.

    (a) Before initiating negotiations, the contracting officer shall 
submit a Utility Service Narrative for proposed procurements for new 
utilities services, renegotiations or extensions of existing utility 
services, or existing contracts that require a negotiation for change of 
rate schedules, to the Associate Administrator for Procurement (Code 
HS), NASA Headquarters. The Utility Service Narrative shall include--
    (1) A brief technical description of the service required or being 
furnished;
    (2) Justification of the reasonableness of the proposed rate;
    (3) An outline of the field installation's proposed negotiation 
tactics, basis for position, and any alternative position;
    (4) An estimate of the annual cost of service; and
    (5) Other related items, as applicable, such as connection charges, 
termination liability, facilities charges, requirement for Government 
capital costs, or any unusual factors affecting the procurement.
    (b) The Associate Administrator for Procurement (Code HS), with the 
coordination of the Environmental Management Division (Code JE), will 
review the information submitted under paragraph (a) of this section. If 
NASA Headquarters desires to participate in the negotiations, the 
Associate Administrator for Procurement (Code HS), NASA Headquarters, 
shall inform the contracting officer within 30 days after receipt of the 
Utility Service Narrative.

[[Page 328]]



Sec. 1841.205-75  Contracts requiring Headquarters approval.

    Contracts and supplemental agreements for utility services shall be 
submitted to the Associate Administrator for Procurement, NASA 
Headquarters (Code HS), for approval as required by 48 CFR 1804.7203 and 
1807.71.



Sec. 1841.206  Interagency agreements.

    (a) The Department of Defense (DOD) enters into areawide fuel oil 
and other energy-service contracts. DOD areawide contracts provide that 
the contractor shall, upon receipt of an order in the form prescribed by 
the contract, furnish the service involved without further negotiations 
as to rates and charges, in accordance with the established and field 
rate schedules applicable to the service.
    (b) When procuring utility services from another Government agency 
by cross-servicing, the procurement office shall use a memorandum of 
understanding specifying the services to be provided and the conditions 
under which they will be supplied. A Utility Service Narrative shall be 
submitted in accordance with 1841.205-74.



                     Subpart 1841.4--Administration



Sec. 1841.402  Rate changes and regulatory intervention.

    (a) When the contractor notifies the contracting officer as provided 
in the change of rates clause at 48 CFR (FAR) 52.241-7, or whenever the 
contractor requests that rate changes be negotiated, as provided in the 
change in rates clause at 48 CFR (FAR) 52.241-8, the contracting officer 
shall notify the Associate Administrator for Procurement, NASA 
Headquarters (Code HS) and the Environmental Management Division, NASA 
Headquarters (Code JE). The notification shall include sufficient 
information to permit a determination of the monetary effect of the 
proposed changes, a recommendation under paragraph (a) (1) or (2) of 
this section, and the basis for the recommendation.
    (1) When notice is received that the contractor has filed an 
application for rate changes before the local regulatory body, the 
contracting officer shall recommend whether or not the Government should 
intervene at the hearing on the application. If it is recommended that 
the Government intervene, the recommendation shall be accompanied by a 
statement containing the basis for intervention and the extent to which 
the installation can support intervention by presenting testimony, 
preparing exhibits, and furnishing legal counsel.
    (2) When notice is received that the contractor requests that rate 
changes be negotiated, the contracting officer shall recommend the 
position to be taken by the Government regarding the rate changes and 
state the extent to which installation personnel are available to 
support this position.
    (b) The Associate Administrator for Procurement, NASA Headquarters, 
with the technical assistance of the Environmental Management Division 
(Code JE), NASA Headquarters, shall furnish the contracting officer a 
recommendation concerning the proposed rate changes and the extent to 
which NASA Headquarters will participate in the intervention before the 
local regulatory body or in negotiations with the contractor. Before 
recommending any action, the Associate Administrator for Procurement, 
NASA Headquarters shall, as necessary, coordinate with other staff 
offices or divisions, or other Government agencies. The contracting 
officer shall await the instructions of the Associate Administrator for 
Procurement, NASA Headquarters, for at least 30 calendar days before 
submitting the matter to GSA (see 48 CFR (FAR) 41.402(b)) or taking 
other action concerning the proposed rate changes.



       Subpart 1841.5--Solicitation Provision and Contract Clauses



Sec. 1841.501  Solicitation provision and contract clauses.

    The contracting officer shall insert the clause at 48 CFR 1852.241-
70, Renewal of Contract, whenever it is desirable that the utility 
service be provided under the same terms and conditions for more than 1 
year (see 1841.205-70).

[[Page 329]]



PART 1842--CONTRACT ADMINISTRATION--Table of Contents




 Subpart 1842.1--Interagency Contract Administration and Audit Services

Sec.
1842.101  Policy.
1842.102  Procedures.
1842.102-70  Management of subcontracts.
1842.170  Assignment of NASA personnel at contractor plants.
1842.171  Contractor performance at a NASA installation.
1842.172  Contract administration by DOD personnel at a NASA 
          installation.
1842.173  Reimbursement for contract administration services.
1842.174  Reporting requirements.
1842.175  Functional management responsibility.

          Subpart 1842.2--Assignment of Contract Administration

1842.202  Assignment of contract administration.
1842.202-70  Delegations to contract administration offices.
1842.202-71  Delegations to audit offices.
1842.202-72  Delegations to security offices.
1842.203  Retention of contract administration.
1842.270  Contracting officer technical representative (COTR) 
          delegations.

        Subpart 1842.3--Contract Administration Office Functions

1842.302  Contract administration functions.
1842.302-70  Modified functions.

                   Subpart 1842.7--Indirect Cost Rates

1842.705  Final indirect cost rates.
1842.705-70  NASA Policy.
1842.708  Quick-closeout procedure.
1842.708-70  NASA policy.
1842.708-71  Factors to be considered.
1842.708-72  Procedures.

                  Subpart 1842.8--Disallowance of Costs

1842.801  Disallowance of costs.

Subpart 1842.10--Negotiating Advance Agreements for Independent Research 
                 and Development/Bid and Proposal Costs

1842.1004  Location of negotiators in a central office.
1842.1008  Administrative appeals.

         Subpart 1842.12--Novation and Change-of-Name Agreements

1842.1200  Scope of subpart.
1842.1202  Responsibility for executing agreements.
1842.1203  Processing agreements.
1842.1203-70  DOD Processing of novation and change-of-name agreements 
          on behalf of NASA.

 Subpart 1842.13--Suspension of Work, Stop-work Orders, and Government 
                              Delay of Work

1842.1305  Contract clauses.

         Subpart 1842.14--Traffic and Transportation Management

1842.1405  Discrepancies incident to shipment of supplies.

                 Subpart 1842.70--NASA Contract Clauses

1842.7001  Technical direction.
1842.7002  Travel outside of the United States.
1842.7003  Observance of legal holidays.

                 Subpart 1842.71--Submission of Vouchers

1842.7101  Processing of vouchers.

     Subpart 1842.72--NASA Contractor Financial Management Reporting

1842.7201  General.
1842.7202  Contract clauses.

             Subpart 1842.73--Audit Tracking and Resolution

1842.7301  NASA external audit followup system.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28299, July 5, 1989, unless otherwise noted.



 Subpart 1842.1--Interagency Contract Administration and Audit Services



Sec. 1842.101   Policy.

    It is NASA policy to optimize the use of contract administration, 
audit, and related support functions of the Department of Defense (DOD) 
and other Government agencies. NASA agreements with Government agencies 
regarding the delegation and performance of contract administration and 
related field support functions are the responsibility of the Defense 
Division

[[Page 330]]

(Code ID). However, questions may be directed to the Analysis Division 
(Code HC). NASA retains technical direction of all its contracts 
regardless of the agency responsible for contract administration.

[54 FR 28299, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 59 
FR 66270, Dec. 23, 1994; 60 FR 40519, Aug. 9, 1995]



Sec. 1842.102  Procedures.

    DOD contract administration and audit offices will accomplish the 
delegated functions in accordance with DOD regulations and procedures, 
except that the following take precedence over DOD regulations and 
procedures:
    (a) NASA letters of delegation, including any special instructions 
attached to them.
    (b) Applicable requirements of NASA Quality Publication NHB 
5300.4(2B), Quality Assurance Provisions for Government Agencies.
    (c) Any written agency agreements between NASA and DOD.



Sec. 1842.102-70  Management of subcontracts.

    Because prime contractors are responsible for managing subcontracts, 
contract administration functions shall be performed by the Government 
for subcontracts only if necessary to meet specific NASA requirements. 
Delegations for contract administration at subcontractors' plants 
normally shall be made by or through the contract administration offices 
responsible for the prime contractors. When a direct delegation is made 
for performance of contract administration functions at a 
subcontractor's plant (such as for quality assurance), the contracting 
officer shall:
     Coordinate in advance with the contract administration office 
responsible for the prime contractor and provide copies of the 
delegation to that office.

[54 FR 28299, July 5, 1989, as amended at 55 FR 12177, Apr. 2, 1990]



Sec. 1842.170  Assignment of NASA personnel at contractor plants.

    (a) NASA personnel normally shall not be assigned at or near a 
contractor's facility to perform any contract administration functions 
listed in FAR 42.302(a). Before such an assignment is made, a written 
request shall be forwarded to the cognizant program director for 
approval and the concurrence of the Associate Administrator for 
Procurement. The following supporting information shall be forwarded 
with the request to make the assignment:
    (1) A statement of the special circumstances that necessitate the 
assignment.
    (2) The contract administration services to be performed.
    (3) A summary of any discussions held with the cognizant contract 
administration organization.
    (4) A staffing plan covering three years or such shorter period as 
may be appropriate. The provisions of this paragraph (a) do not apply to 
NASA audit personnel assigned to the field installations, to NASA 
technical personnel covered by 1842.101 and paragraph (b) of this 
section, unless they are performing any contract administration 
functions listed in FAR 42.302(a), or to personnel assigned to 
contractors' plants on NASA or other Federal installations.
    (b) NASA may assign technical personnel (such as quality assurance, 
reliability, or engineering representatives) to contractors' plants or 
laboratories to provide direct liaison with NASA and technical 
assistance and guidance to the contractor and DOD. The duties and 
responsibilities of these technical representatives shall be clearly 
defined and shall not conflict with, duplicate, or overlap with 
functions delegated to DOD personnel. NASA shall advise appropriate DOD 
and contractor organizations of the duties and responsibilities of NASA 
technical personnel. When NASA technical personnel are performing any of 
the contract administration functions listed in FAR 42.302(a), paragraph 
(c) of this section applies.
    (c) When a NASA resident office and a DOD contract administration 
office are performing contract administration functions for NASA 
contracts at the same contractor's facility, the two offices shall 
execute a written agreement clearly establishing the relationship 
between the two organizations and the contractor. The agreement should

[[Page 331]]

eliminate duplication in the performance of contract administration 
functions and minimize procedural misunderstandings between the two 
organizations. Such agreements shall be consistent with existing 
delegations to the contract administration offices concerned and shall 
specify the relationship of NASA nonprocurement resident personnel to 
their DOD and contractor counterparts if such personnel are, or intend 
to be, involved in any aspect of contract administration.



Sec. 1842.171  Contractor performance at a NASA installation.

    When a NASA contract requires contractor performance at another NASA 
installation or NASA-controlled launch site, a delegation shall be made 
to the contracting office of the NASA installation at which performance 
will occur. Delegations normally will include the functions listed in 
FAR 42.302(a), less any functions retained under 1842.202. In addition, 
delegations shall include the contracting officer security functions 
(when required in the performance of the contract at the installation or 
site) and the administration of any NASA support provided to the 
contractor.



Sec. 1842.172  Contract administration by DOD personnel at a NASA installation.

    If DOD personnel will perform contract administration functions at a 
NASA installation for more than 30 workdays (either continuous or 
intermittent), the NASA contracting officer shall obtain prior approval 
from the head of the installation where the DOD personnel will be 
located. The concurrence of the Director, Contract Management Division 
(Code HK) shall also be obtained.

[58 FR 51141, Sept. 30, 1993]



Sec. 1842.173  Reimbursement for contract administration services.

    The basis for reimbursement to DOD for contract administration and 
related support services is the NASA-DOD Agreement for Contract 
Administration and Contract Audit Services. Budgeting, funding, and 
payment for these services shall be accomplished in accordance with NMI 
7410.1, Management, Funding, and Payment for Contract and Grant 
Administration and Audit Services Obtained from Other Federal Agencies. 
The NASA installation issuing the delegation has responsibility for 
budgeting, funding, and payment of bills of lading for transportation 
performed as a result of a traffic management delegation.

[54 FR 28299, July 5, 1989, as amended at 59 FR 12198, Mar. 16, 1994]



Sec. 1842.174  Reporting requirements.

    (a) NASA installations shall assess their delegations to DOD 
semiannually to determine changes in delegation patterns that could:
    (1) Result in significant increases or decreases in future DOD 
manpower requirements or
    (2) Have other important impacts on DOD contract administration 
activities.

Events such as major program cutbacks or expansions, changes in 
locations of major programs, and sizeable new procurements should be 
considered in the assessment.
    (b) When an event will affect DOD administration of contracts for 
NASA significantly, a summary of the assessment shall be submitted to 
the Director, Contract Management Division (Code HK). The summary shall 
include at least--
    (1) A description of the change in work requirements or delegation 
pattern;
    (2) The estimated duration of the impact; and
    (3) A prediction of the impact on DOD in terms of changes in 
manpower requirements or other costs.
    (c) NASA installations shall discuss with appropriate DOD contract 
administration offices the predicted impact on DOD. The results of these 
discussions, such as DOD agreement or disagreement with the predicted 
impact, shall be included in the report.

[54 FR 28299, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 58 
FR 51141, Sept. 30, 1993]



Sec. 1842.175  Functional management responsibility.

    NASA contracting officers retain functional management 
responsibility

[[Page 332]]

for their contracts. Utilization of the contract administration services 
of another Government agency or NASA installation does not relieve the 
NASA contracting officer of responsibility for proper and effective 
management of the contract. Therefore, the NASA contracting officer must 
ensure that the contract administration office understands the 
respective duties and responsibilities of each office in connection with 
each NASA contract. NASA contracting officers shall keep themselves 
fully informed on contractor performance and progress by establishing 
and maintaining effective communications with contract administration 
offices.



          Subpart 1842.2--Assignment of Contract Administration



Sec. 1842.202  Assignment of contract administration.

    (a) Policy. (1) It is NASA policy that maximum use be made of those 
contract administration and contract audit services available from DOD, 
subject to the recognition that certain functions may be withheld as 
being necessary for program management, or other reasons. Those services 
will normally be performed by the Department of Defense (DOD) in 
accordance with the terms of the NASA contracts and applicable DOD 
regulations and procedures, unless special NASA requirements necessitate 
other arrangements.
    (2) Contracting officers should carefully determine for each 
contract award the optimum division of contract administration functions 
between those performed with NASA resources and those performed by DOD 
and other Government agencies. Factors affecting the assignment of 
contract administration include--
    (i) Place of contract performance;
    (ii) Nature of the supplies or services being acquired;
    (iii) Extent of general existing DOD contractor oversight;
    (iv) Extent of subcontracting to be performed by the prime 
contractor;
    (v) Quality assurance requirements;
    (vi) Security requirements; and
    (vii) Government property administration requirements.
    (3) Since NASA reimburses DOD for all contract administraion 
performed on NASA contracts, only those functions that can be performed 
more efficiently and effectively by DOD, given the circumstances of the 
procurement, should be delegated.
    (b) Assignable functions. With the exception of the functions listed 
under paragraph (c) of this section, any or all of the functions listed 
in FAR 42.302 may be delegated to DOD for performance based on the 
contracting officer's assessment of what will lead to the most efficient 
and effective contract management for the individual procurement. A 
blanket delegation of all assignable functions listed in FAR 42.302(a), 
with the exception of the non-assignable functions of this section, is 
generally appropriate when the contract place of performance is the 
contractor's facility and onsite DOD contract administration services 
are available. However, each function must be reviewed to ascertain if 
the function could better be performed by the NASA contracting officer.
    (c) Restricted functions. The functions listed below may not be 
delegated, except as indicated.
    (1) Approval of the final voucher (FAR 42.302(a)(7)).
    (2) Countersigning NASA Form 456, Notice of Contract Costs Suspended 
and/or Disapproved (FAR 42.302(a)(8)).
    (3) Issuance of decisions under the disputes clause (FAR 
42.302(a)(10)).
    (4) Contract payment (FAR 42.302(a)(13)).
    (5) Execution of supplemental agreements involving spare parts or 
other items selected through provisioning procedures. However, 
delegation of the negotiation of supplemental agreements for spare parts 
and other items and forwarding for approval and signature of the NASA 
contracting officer is permitted (FAR 42.302(a)(22)).
    (6) Execution of change orders (FAR 42.302(b)(8)). However, 
delegation of the negotiation of supplemental agreements for change 
order definitization and forwarding for approval and signature of the 
NASA contracting officer is permitted (FAR 42.302(b)(1)).
    (7) Issuing termination notices and executing supplemental 
agreements for settlement of termination for default

[[Page 333]]

or for convenience of the Government. However, delegation of the 
negotiation of termination settlements and forwarding for approval and 
signature of the NASA contracting officer is permitted using NASA Form 
1432 (FAR 42.302(a)(23)).
    (8) Consent to placement of subcontracts under FAR 42.302(a)(51). 
However, in those situations where the contracting officer considers it 
necessary to delegate consent to subcontract, the requirements of 
1844.102(b) shall be met prior to delegation.

[56 FR 32117, July 15, 1991, as amended at 56 FR 48748, Sept. 26, 1991; 
57 FR 839, Jan. 9, 1992]



Sec. 1842.202-70   Delegations to contract administration offices.

    (a) General. The following procedures apply to delegations to 
contract administration offices (for delegations to audit and security 
offices, see 1842.202-71 and 1842.202-72, respectively):
    (1) At the time of contract award the NASA contracting officer shall 
review contract performance requirements to determine the nature and 
extent of expected contract administration functions. This review shall 
be coordinated with appropriate installation functional representatives, 
including program managers, to ensure that all essential requirements 
are incorporated in the delegation. A similar review shall be made 
before amending letters of delegation.
    (2) In most cases, contracting officers should contact the cognizant 
contract administration office and discuss planned delegation(s) with 
the administrative contracting officer. The contracting officer should 
elevate disagreements with the cognizant contract administration office 
to higher levels for resolution.
    (3) A post-award planning conference (see FAR 45.503) shall be held 
with representatives of the contract administration office when--
    (i) A contract is expected to exceed $5,000,000;
    (ii) Contract performance is required at or near a NASA installation 
or NASA-controlled launch site;
    (iii) The delegation will impose an abnormal demand on the resources 
of the contract administration office receiving the delegation; or
    (iv) Complex contract management problems are expected.
    (4) Procurement officer approval is required to waive a post-award 
planning conference for contracts meeting any of the criteria in 
paragraph (a)(3) of this section. The request for procurement officer 
approval to waive a post-award conference shall address action taken and 
planned to ensure effective communication with the contract 
administration office during the performance of the contract.
    (5) When functions are to be delegated (or when prior delegations 
require modification), contracting officers shall--
    (i) Within 15 days after contract award, prepare and forward NASA 
Form 1430, Letter of Contract Administration Delegation, General, to the 
contract administration office. NASA Form 1430A, Letter of Contract 
Administration, Special Instructions, will supplement the NASA Form 
1430, to modify previously delegated functions and provide additional or 
particular information considered necessary to ensure clear 
understanding of all delegated functions.
    (ii) Forward NASA Form 1431, Letter of Acceptance of Contract 
Administration, with each NASA Form 1430 or 1430A. If the NASA Form 1431 
has not been returned within 45 days of transmittal, the contracting 
officer shall initiate follow-up inquiry to determine the status of the 
delegation request. Contracting officers shall use the returned NASA 
Form 1431 as contract file documentation that the delegation has been 
accepted, modified or rejected by the contract administration office and 
as a reference for points of contact for each of the functional areas 
delegated.
    (iii) Modify existing delegations, as necessary, consistent with 
paragraphs (a)(5) (i) and (ii) of this section.
    (6) Letters of delegation shall clearly and specifically state which 
functions are delegated. Delegations and delegation amendments shall be 
accompanied by documentation and supporting information that will ensure 
a complete understanding of the contract administration services to be 
performed. The

[[Page 334]]

contracting officer shall keep the contract administration office fully 
informed of any actions that may affect the performance of the delegated 
functions. Copies of all significant documents shall be furnished to the 
contract administration office throughout the period of performance. 
Significant documents include, but are not limited to--
    (i) All contractual documents such as the contract and any 
specifications and drawings, change orders, supplemental agreements or 
contractor proposals referenced in the contract;
    (ii) Negotiation memoranda covering negotiations of contracts or 
contract changes in excess of $100,000;
    (iii) Copies of any delegation and amendments if sent to other 
contract administration offices that have a bearing on the contract, 
including those issued pursuant to 1842.102-70; and
    (iv) Any other correspondence affecting contract performance under 
the contract.
    (7) Delegations shall be sent to DOD contract administration offices 
in accordance with the instructions in the DOD Directory of Contract 
Administration Services Components (DLAH 4105.4).
    (8) The contracting officer shall distribute copies of the contract 
and letters of delegation for contract administration (including 
amendments) as follows:
    (i) To Defense Contract Management Command (DCMC) and all other 
Government contract administration offices except DOD military contract 
administration offices, when two or more functional areas are delegated: 
Five copies of the contract and NASA Form 1430 and three NASA Forms 
1431.
    (ii) To DOD military component offices when two or more functional 
areas are delegated: Three copies of the contract and three NASA Forms 
1430 and 1431.
    (iii) To any contract administration office when a single functional 
area is delegated: Two copies of the contract and two NASA Forms 1430 
and 1431.
    (iv) To the contractor: One NASA Form 1430.
    (b) Reliability and quality assurance. When special instructions for 
reliability or quality assurance are necessary, they shall be (1) 
clearly identified by the NASA installation personnel responsible for 
the reliability and quality assurance function and (2) furnished to the 
contracting officer on NASA Form 1430A for inclusion in the letter of 
delegation. The procedures for arranging, preparing, and finalizing such 
delegations and the requirements for NASA direction and management of 
these functions are contained in installation procedures. The latest 
edition of NHB 5300.4(2B), Quality Assurance Provisions for Delegated 
Government Agencies, describes the requirements for performing quality 
assurance functions under NASA contracts.
    (c) Transportation and packaging. Transportation and packaging 
functions may be delegated at the option of the NASA installation 
personnel responsible for the transportation and packaging function. 
When such delegations are contemplated on a particular contract, special 
instructions shall be furnished to the NASA contracting officer on NASA 
Form 1430A. The form shall also:
    (1) Specify the limit of the value of Government bills of lading 
that may be issued without further consent of the NASA contracting 
officer and
    (2) Provide appropriate funding information.
    (d) Property administration and plant clearance. Property 
administration and plant clearance are ordinarily delegated by NASA to 
DOD pursuant to FAR 42.302. When these functions are delegated, special 
instructions prepared and distributed by the Headquarters Logistics 
Management Office, Code JLG, should be issued to the contract 
administration office. Property administration and plant clearance are 
typically retained, however, and performed by NASA when the contract 
work is to be performed at a NASA installation. When retained, the 
functions should be performed in accordance with subpart 1845.72.
    (e) Services not requiring letters of delegation. (1) When it is 
desired that a contract administration or audit office perform services 
that precede the award of a contract, such as cost, price, or technical 
evaluations (but exclusive of pre-award surveys), NASA Form

[[Page 335]]

1434, Letter of Request for Pricing-Audit-Technical Evaluation Services, 
shall be used. Pre-award surveys shall be requested on SF 1403, Pre-
award Survey of Prospective Contractor (General). Oral requests made to 
contract administration offices to expedite these services are 
authorized, but shall be confirmed in writing immediately through the 
use of NASA Form 1434 or SF 1403, as appropriate.
    (2) Pre-award and post-award services, such as verification of labor 
and overhead rates, and furnishing of similar information readily 
available within contract administration and audit offices and not 
normally subject to reimbursement by NASA, may be obtained either orally 
without written confirmation or through the use of NASA Form 1434, as 
appropriate.
    (f) Contractor Purchasing System Reviews. When delegating contract 
administration to a DOD contract administration office under FAR 42.202 
and 42.302(a)(50), the NASA contracting officer shall include in the 
letter of delegation of contract administration functions a required for 
the contract administration office to provide the NASA contracting 
officer with:
    (1) Adequate advance notification of scheduled CPSRs, to allow for 
the necessary NASA coordination of participation; and
    (2) One copy of each CPSR report.

[54 FR 28299, July 5, 1989, as amended at 56 FR 32118, July 15, 1991; 57 
FR 840, Jan. 9, 1992; 57 FR 40855, Sept. 8, 1992; 57 FR 58725, Dec. 11, 
1992; 58 FR 51141, Sept. 30, 1993; 60 FR 16062, Mar. 29, 1995]



Sec. 1842.202-71  Delegations to audit offices.

    The following procedures apply when delegations are made to audit 
offices:
    (a) NASA installations shall utilize the services of other 
Government audit organizations for performance of contract cost audit 
and other audit functions, except when audits will be performed by NASA 
auditors. The Defense Contract Audit Agency (DCAA) has been designated 
as the DOD agency responsible for the performance of audit functions for 
NASA contracts, except those awarded to educational institutions for 
which other agencies have audit cognizance under OMB Circular No. 88, 
those with Canadian contractors (see paragraph (d) of this section), and 
those for which NASA will perform audits. To ensure that audit services 
are performed expeditiously, audit delegations shall be sent to the 
appropriate audit office immediately after execution of all cost-
reimbursement, labor-hour, and time-and-materials contracts and all 
fixed-price contracts containing cost-reimbursement or price adjustment 
clauses. Audit functions include but are not limited to contract cost 
and price audits, estimating systems surveys, reviews of accounting 
systems (see also 1815.871(b)), and approval of vouchers for provisional 
payment.
    (b)(1) Delegations shall be sent to cognizant audit offices as 
listed in the Defense Contract Audit Agency Directory (Headquarters and 
Field Offices) or in other Government agency directories.
    (2) Audit responsibilities for the Department of Health and Human 
Services (HHS) do not include reviewing and processing vouchers. 
Consequently, where audit responsibility has been delegated to HHS under 
OMB Circular No. A-88, contracts shall not designate HHS as the billing 
office for invoice submission. Instead, contracts should direct invoices 
to the office administering the contract or as otherwise arranged (see 
SF 26, Block 10, and SF 33, Block 23).
    (c)(1) NASA Form 1433, Letter of Audit Delegation, shall be used to 
delegate the audit function and to amend previous delegations. 
Distribute copies of the contract and NASA Form 1433 as follows:
    (i) Audit office: One copy of the contract and three NASA Forms 
1433.
    (ii) Contractor: One NASA Form 1433.
    (iii) Cognizant NASA fiscal or financial management office: One NASA 
Form 1433.
    (2) When HHS is designated as the audit office, item 12 on NASA Form 
1433 shall be marked ``Not applicable.''
    (d)(1) For contracts with the Canadian Commercial Corporation (CCC), 
audits are automatically arranged by the Department of Defense 
Production (Canada) (DDP) in accordance with agreements between NASA and 
DDP. Audit reports are furnished to DDP.

[[Page 336]]

Upon advice from DDP, CCC will certify the invoice and forward it with 
Standard Form 1034, Public Voucher, to the contracting officer for 
further processing and transmittal to the fiscal or financial management 
officer.
    (2) For contracts placed directly with Canadian firms, audits are 
requested by the contracting officer from the Audit Services Branch, 
Comptroller of the Treasury, Department of Finance, Ottawa, Ontario, 
Canada. Invoices are approved by the auditor on a provisional basis 
pending completion of the contract and final audit. These invoices, 
accompanied by SF 1034, are forwarded to the contracting officer for 
further processing and transmittal to the fiscal or financial management 
officer. Periodic advisory audit reports are furnished directly to the 
contracting officer.
    (3) Audits performed by the Audit Services Branch are normally 
conducted under DDP regulations.



Sec. 1842.202-72  Delegations to security offices.

    NASA's policies and procedures on security are set forth in NMI 
1600.2, NASA Security Program. Contracting officers shall delegate 
responsibility for administering the Industrial Security Program (which 
has been designated as an administrative contracting officer (ACO) 
responsibility in Appendix C, Industrial Security Regulation, DOD 
5220.22R, see also FAR 42.302(a)(20)) to DOD unless the contractor will 
perform the classified contract on a NASA installation or the classified 
work has been ``carved-out.'' (A ``carve-out'' is defined in Section 1, 
paragraph 3, item f.1., of the DOD Industrial Security Manual for 
Safeguarding Classified Information, September 1987, DOD 5220.22M, as a 
classified contract issued in connection with an approved Special Access 
Program in which the Defense Investigative Service has been relieved of 
inspection responsibility in whole or in part.) The basis for DOD's 
performance of administrative contracting officer responsibility for the 
Industrial Security Program on NASA contracts is a NASA-DOD Agreement. 
The contracting officer shall specifically identify security functions 
delegated to DOD or to another NASA installation (see 1842.171) on NASA 
Form 1430A.

[54 FR 28299, July 5, 1989, as amended at 59 FR 12198, Mar. 16, 1994]



Sec. 1842.203  Retention of contract administration.

    The assignment of contract administration is optional for the 
contracts and situations listed below:
    (a) Research and development study contracts not involving 
deliverable hardware or Government property in the hands of contractors.
    (b) All contracts with delivery schedules of 90 days or less.
    (c) Purchase orders having no Government source inspection 
requirements.
    (d) Work performed at the installation awarding the contract.
    (e) Contract work performed in the vicinity of the installation 
awarding the contract for which DOD contract administration services are 
not reasonably available.



Sec. 1842.270  Contracting officer technical representative (COTR) delegations.

    (a) A contracting officer may appoint another Government employee to 
act as the contracting officer's authorized technical representative in 
managing the technical aspects of a particular contract. If necessary, 
the contracting officer may appoint an alternate COTR to act during 
short absences of the COTR; the policies and procedures for COTRs also 
shall apply to alternate COTRs. Technical organizations are responsible 
for ensuring that the individual they recommend to the contracting 
officer possesses training, qualifications and experience commensurate 
with the duties and responsibilities to be delegated and the nature of 
the contract. The contracting officer shall ensure that the duties and 
responsibilities delegated do not exceed the limitations at 1801.670(b).
    (b) COTRs shall be designated by name and position title (see the 
1801.670(b) prohibition against delegating COTR duties solely to a 
position rather than to a named individual). Each COTR appointment shall 
be in writing and shall clearly define the purpose and limitations of 
the COTR's authorities, duties and responsibilities.

[[Page 337]]

NASA Form 1634, Contracting Officer Technical Representative (COTR) 
Delegation, shall be used to appoint COTRs. The COTR delegation shall be 
signed by the cognizant contracting officer, or at any level above that 
contracting officer (see 1801.670(b)), and shall state that the duties 
and responsibilities may not be redelegated by the COTR and that the 
COTR may be held personally liable for unauthorized acts. (However, this 
does not prohibit the COTR from receiving assistance for the purpose of 
monitoring contractor progress and gathering information.) When an 
individual is appointed as a COTR on more than one contract, separate 
delegations shall be issued for each contract. A separate NASA Form 1634 
will be used to appoint an alternate COTR; alternates may act only 
during official absences of the COTR, such as leave, TDY or other 
special assignments. The delegated duties and responsibilities of the 
alternate may not exceed those of the COTR.
    (c) A COTR delegation remains in effect throughout the life of the 
contract unless cancelled in writing by the cognizant contracting 
officer or at any level above that contracting officer. The contracting 
officer may modify the delegation only by issuance of a new delegation 
cancelling and superseding the existing delegation.
    (d) A COTR shall not be authorized to initiate procurement actions 
by use of purchase orders, or to place calls or delivery orders under 
indefinite-delivery contracts or basic ordering agreements, or in any 
way cause a change to the contract or increase the Government's 
financial obligations. A COTR shall not be authorized to award, agree 
to, or sign any contract or modification or in any way obligate the 
payment of money by the Government. The COTR is not authorized to issue 
technical direction unless the clause at 1852.242-70, Technical 
Direction, prescribed in 1842.7001, is included in the contract and the 
authorization is specifically listed in paragraph 3(m) of the COTR 
delegation letter (NASA Form 1634). However, delegations may be made to 
construction contract COTRs to sign emergency change orders with an 
estimated value not to exceed the value specified in writing by the 
contracting officer in the NASA Form 1634 but in no event to exceed 
$25,000, on-site at construction sites, if sufficient funds have been 
previously certified to cover the emergency change. After issuing an 
emergency change order, the COTR shall notify the contracting officer as 
soon as possible, in person or telephonically, and subsequently provide 
a written determination supporting the need for the action.
    (e) The contracting officer shall send the original and one copy of 
the COTR delegation letter to each COTR, who shall acknowledge receipt 
and accept the delegation by signing the original and returning it to 
the contracting officer. The original of the COTR delegation letter 
shall be filed in the applicable contract file. Copies of the signed 
COTR delegation letter shall be distributed to the contractor and to 
each cognizant contract administration office. Acknowledgement and 
distribution for terminations of COTR delegations and COTR delegations 
which revise authority, duties and responsibilities shall follow the 
same rules.
    (f) The proposed COTR (and alternates) shall be trained in the 
duties, responsibilities, and authority of the role of the COTR. That 
mandatory training shall include, at a minimum, the following core topic 
areas: contracting authority; procurement integrity; contract 
modifications; surveillance plans; contracting for inherently 
governmental functions, personal services, and NASA policy on the 
acquisition of services; the Service Contract Act; the Anti-Deficiency 
Act; contract financial management; the ``Changes'' clause; the 
``Disputes'' clause; the ``Inspection'' clause; Government property and 
policy procedures; and the ``Limitation of Funds'' and ``Limitation of 
Cost'' clauses. Procurement Officers are responsible for assuring that 
the course(s) utilized by their installation address the mandatory core 
topics in sufficient detail for the purpose of COTR training.
    (g) The contracting officer shall verify that the COTR has received 
the mandatory training before signing the NASA Form 1634. Contracting 
officers shall terminate COTR delegations of COTRs who have not met the 
above training requirements by April 1, 1995.

[[Page 338]]

If, however, an urgent need arises for the appointment of a COTR and no 
trained and otherwise qualified individual is available, then the 
Procurement Officer may make a temporary COTR appointment not to exceed 
six months, which may not be extended by more than six months. Temporary 
appointments must be so identified and clearly reflect the appointment 
expiration date. No technical direction may be issued by a COTR serving 
under a temporary appointment. If a COTR serving under a temporary 
appointment believes that technical direction should be issued to the 
contractor, the COTR shall so advise the contracting officer and provide 
such assistance regarding the proposed direction as the contracting 
officer may require.

[59 FR 21667, Apr. 26, 1994]



        Subpart 1842.3--Contract Administration Office Functions



Sec. 1842.302  Contract administration functions.

    The cognizant CAO shall perform the additional contract 
administration functions listed below:
    (a) Determine billing rates and final indirect cost rates.
    (b) Issue cure and show cause letters after approval of the NASA 
contracting officer.
    (c) Monitor the contractor's system for control of overtime.
    (d) Assure that overtime compensation is in accordance with the 
terms of the contract, or in the absence of contractual coverage, that 
any excepted overtime charged is reasonable and properly allocable.
    (e) Negotiate changes to interim billing prices when authorized by 
the NASA contracting officer.



Sec. 1842.302-70  Modified functions.

    In connection with the functions listed at FAR 42.302(a)(11)(ii) and 
(iii), the following exception applies: for those contractors with whom 
advance agreements of the type discussed in FAR 31.205-18 are 
negotiated, the Government contracting officer responsible for the 
agreements shall have full authority for determinations related to CAS 
420.



                   Subpart 1842.7--Indirect Cost Rates

1842.705  Final indirect cost rates.



Sec. 1842.705-70  NASA Policy.

    (a) Since many NASA contractors are under DOD's final overhead rate 
determination procedure, NASA's policy is to participate jointly with 
DOD for those companies where NASA has a major financial interest. The 
NASA participant shall be a representative from that installation having 
the predominance of NASA work.
    (b) When NASA has been assigned the final indirect cost rate 
determination authority, settlement of indirect costs shall be conducted 
by the cognizant NASA contracting officer (normally from the 
installation providing the preponderance of NASA funding).
    (c) Final indirect cost rates are to be established in accordance 
with FAR 42.705 unless quick-closeout procedures are used, in which case 
FAR 42.708 and NFS 1842.708 are to be followed.

[54 FR 28299, July 5, 1989, as amended at 57 FR 840, Jan. 9, 1992]
1842.708  Quick-closeout procedure.



Sec. 1842.708-70  NASA policy.

    The use of quick-closeout procedures is strongly encouraged for 
contracts that are physically complete, the amount of unsettled indirect 
costs applicable to any one contract does not exceed $500,000, and an 
individual contract's value, excluding fee, is not greater than 
$2,000,000. Quick closeout may be used for contracts above $2,000,000 
with the prior approval of the installation procurement officer. The 
$2,000,000 contract limitation supersedes the 15 percent parameter of 
FAR 42.708(a)(2)(ii), which does not apply to NASA.

[56 FR 12459, Mar. 26, 1991]



Sec. 1842.708-71  Factors to be considered.

    Factors to be considered in deciding whether quick closeout is 
appropriate, include:
    (a) Whether the use of quick closeout will adversely affect the 
negotiation of final indirect cost rates in those cases

[[Page 339]]

where the responsibility for negotiating indirect cost rates has been 
delegated or falls under the cognizance of another agency.
    (b) Prior experience with the contractor, for example, the amount of 
questioned and/or disallowed costs for prior fiscal years.
    (c) Whether there are any outstanding Cost Accounting Standards or 
accounting system deficiencies that would have a bearing on the 
determination of direct costs and final indirect cost rates.
    (d) The extent of the contractor's Government contracting 
experience.
    (e) The number of years final indirect costs have not been settled.
    (f) The amount of unaudited contractor claimed costs (direct and 
indirect) for contract(s) being considered.
    (g) The number and value of other NASA contracts with the contractor 
having unaudited costs for the same fiscal years.
    (h) Whether audits will be performed and/or indirect cost rates 
finalized within a reasonable time. Audits are not to be requested if a 
determination is made to use quick closeout.

[56 FR 12459, Mar. 26, 1991]



Sec. 1842.708-72  Procedures.

    After a decision is made that the use of quick closeout is 
appropriate, the contracting officer shall conduct the following:
    (a) Seek a written agreement from the contractor to participate in 
the quick-closeout process under FAR 42.708 for the selected 
contract(s). Also, request the contractor to submit a final voucher and 
a summary of all costs by cost element and fiscal year for the 
contract(s) in question, as well as a copy of the contractor's final 
indirect cost rate proposal for each fiscal year quick closeout is 
involved.
    (b) Notify the cognizant audit activity in writing regarding the 
decision to use quick closeout. Identify the contract(s) in question and 
request that they provide the contractor's indirect cost history 
covering a sufficient number of fiscal years to see the trend of 
claimed, audit question, and disallowed costs. Request this information 
from the contractor only when the cognizant audit acitivity is unable to 
provide the information. In all cases, request the cognizant audit 
activity to provide any information that could adversely impact the 
decision to use quick-closeout procedures. The quick-closeout process 
should not proceed without such a response.
    (c) Review the contract(s) for indirect cost rate ceilings and any 
other contract limitations, as well as the rate history information 
obtained from the contractor or the cognizant audit activity, and 
develop a negotiation position.
    (d) Based on an analysis of all the available information, final 
indirect cost rates should be established using one of the following 
rates:
    (1) The contracts ceiling indirect cost rates, if applicable, and if 
less than paragraphs (d) (2) through (6) of this section.
    (2) The contractor's claimed actual rates adjusted based on the 
contractor's indirect cost history, if less than paragraphs (d) (3) 
through (6) of this section.
    (3) Recommended rates from the cognizant audit agency, the local 
pricing office, another installation pricing office, or other recognized 
knowledgeable source.
    (4) The contractor's negotiated billing rates, if less than 
paragraph (d) (5) or (6) of this section.
    (5) The previous year's final rates.
    (6) Final rates for another fiscal year closest to the period for 
which quick-closeout rates are being established.
    (e) If an agreement is reached with the contractor, obtain a release 
of all claims and other applicable closing documents.
    (f) For those contracts where the indirect cost rate negotiation 
function was delegated or falls under the cognizance of another agency, 
send a copy of the agreement to that office.
    (g) If agreement cannot be reached with the contractor, a 
determination shall be made as to whether a final contracting officer 
decision should be issued, or whether the closeout procedures specified 
in FAR 4.804 and NFS 1804.804 will be followed.

[56 FR 12459, Mar. 26, 1991]

[[Page 340]]



                  Subpart 1842.8--Disallowance of Costs



Sec. 1842.801  Disallowance of costs.

    (a) Following a prompt and careful review of the facts and 
circumstances leading the auditor to initiate the NASA Form 456, Notice 
of Contract Costs Suspended and/or Disapproved, and after coordination 
with other NASA and federal agency contracting officers administering 
contracts with the same contractor under which a NASA Form 456 or a DCAA 
Form 1 has been issued for the same items of cost, the NASA contracting 
officer shall take one of the following actions:
    (1) Countersign the NASA Form 456 disapproving the costs.
    (2) Countersign the NASA Form 456 suspending the costs.
    (3) Issue a new NASA Form 456 suspending the costs rather than 
disapproving them pending resolution of the issues.
    (4) Have the contractor issue a new voucher removing the costs in 
question from its claim and return the NASA Form 456 to the auditor 
unsigned.
    (5) Return the unsigned NASA Form 456 to the auditor with a detailed 
explanation of why the suspension or disapproval is not being 
countersigned, and process the contractor's claim for payment.
    (b) When more than one NASA contract is affected by a notice, the 
NASA contracting officer with the largest amount of contract dollars 
affected is responsible for coordination on the NASA Form 456 with the 
other affected contracting officers, including those of other federal 
agencies, listed in the notice.
    (c) The NASA contracting officer, when in agreement with the NASA 
Form 456 initiated by the auditor, shall assign a notice number and 
shall countersign the form. An original and three copies (which includes 
two acknowledgement copies, one each for return to the contracting 
officer and the auditor) of the form shall be sent to the contractor by 
certified mail, return receipt requested; one copy shall be attached to 
the Standard Form 1034 and each copy of the Standard Form 1034A (see 
1842.7101(c)) on which the deduction for the suspension/disapproval is 
made, and one copy shall be sent to the auditor.
    (d) The total amount suspended or disapproved, as shown on the NASA 
Form 456, shall be inserted in the Differences block of the Standard 
Form 1034 and 1034A, citing the applicable NASA Form 456.
    (e)(1) If the amount of the deduction is more than the amount of the 
public voucher, the installment method of deduction shall be applied to 
the current and subsequent public vouchers until the amount is fully 
liquidated. The deductions on any voucher may not exceed the voucher 
amount to avoid processing of a voucher in a credit amount. Public 
voucher(s) with zero amounts must be forwarded to the fiscal or 
financial management office for appropriate action.
    (2) If deductions are in excess of contractor claims, recovery may 
be made through a direct refund from the contractor, in the form of a 
check payable to NASA, or by a set-off deduction from the voucher(s) 
submitted by the contractor under any other contract, unless those 
contracts contain a ``no set-off '' provision. If a set-off is affected, 
the voucher(s) from which the deduction is made should be annotated to 
identify the contract and appropriation affected and the applicable NASA 
Form 456.

[59 FR 38131, July 27, 1994]



Subpart 1842.10--Negotiating Advance Agreements for Independent Research 
                 and Development/Bid and Proposal Costs



Sec. 1842.1004   Location of negotiators in a central office.

    Within NASA, the central office responsible for advance agreements 
is the Analysis Division (Code HC), Office of Procurement, NASA 
Headquarters.

[54 FR 28299, July 5, 1989, as amended at 55 FR 47479, Nov. 14, 1990; 59 
FR 66270, Dec. 23, 1994]



Sec. 1842.1008   Administrative appeals.

    The NASA administrative appeals hearing group consists of the 
Associate Administrator for Procurement, who

[[Page 341]]

shall be chairperson, the Deputy Associate Administrator for Aeronautics 
and Space Technology, and the Deputy General Counsel.

[54 FR 28299, July 5, 1989, as amended at 57 FR 840, Jan. 9, 1992]



         Subpart 1842.12--Novation and Change-of-Name Agreements



Sec. 1842.1200  Scope of subpart.

    This subpart implements and supplements FAR subpart 42.12 and 
prescribes policies and procedures for processing novation or change-of-
name agreements initiated by either a NASA installation or by DOD on 
behalf of NASA.



Sec. 1842.1202   Responsibility for executing agreements.

    When none of the affected contracts has been assigned to an 
administrative contracting officer (see FAR 42.1202(a)(2)), the 
contracting officer shall require the contractor to provide the 
documentation enumerated in FAR 42.1204(c) (or, as appropriate, FAR 
42.1205(a)) to the NASA installation with which it has the largest 
amount of unliquidated obligations. This installation shall be the 
``designated installation'' for processing and executing novation 
agreements and change-of-name agreements with the contractor.



Sec. 1842.1203   Processing agreements.

    (a) The installation shall immediately notify the Director, Analysis 
Division (Code HC) of the request to execute a novation (successor-in-
interest) or change-of-name agreement. The notification shall include:
    (1) The names of the firms involved,
    (2) The name of the installation that will execute the agreement, 
and
    (3) The type of agreement.
    (b) When the Standard Form 30 required by FAR 42.1203(f)(1) is 
prepared, a supplemental agreement number need not be obtained for 
contracts other than the one under which the supplemental agreement is 
written. For distribution purposes, the Standard Form 30 shall also 
include the names and addresses of the installations with contracts 
subject to the agreement.
    (c) After execution of the supplemental agreement, the designated 
installation shall--
    (1) Forward one authenticated copy to Code HC; and
    (2) Advise each of the affected installations by letter of the 
consummation of the supplemental agreement, requesting that an 
administrative change be issued for each affected contract and enclosing 
a copy of the supplemental agreement.
    (d) For each affected contract, the contracting officer shall 
prepare an administrative change acknowledging the successor-in-interest 
or the change in name. The administrative change shall receive the same 
distribution as the affected contract. It shall indicate the nature of 
the transaction and the result attained and shall cite the number of the 
contract with which the original relevant documents and supplemental 
agreement are filed.

[54 FR 28299, July 5, 1989, as amended at 58 FR 51141, Sept. 30, 1993; 
59 FR 66270, Dec. 23, 1994]



Sec. 1842.1203-70   DOD processing of novation and change-of-name agreements on behalf of NASA.

    (a) Appendix E of the NASA/DOD Agreement for Contract Administration 
and Contract Audit Services covers the accomplishment of novation and 
change-of-name agreements by DOD on behalf of NASA.
    (b) Code HS shall notify installations when DOD is processing a 
proposed novation agreement on behalf of NASA. Within 20 days after 
receiving it, the installation shall submit comments to Code HS for 
transmittal to DOD. With the concurrence of Code HS, an installation may 
execute a separate agreement with the contractor. In that event, Code HS 
shall notify DOD accordingly, and the installation shall process a 
separate agreement in accordance with FAR 42.1203.
    (c) Code HC shall maintain copies of agreements executed by DOD on 
behalf of NASA.

[54 FR 28299, July 5, 1989, as amended at 59 FR 66270, Dec. 23, 1994]

[[Page 342]]



 1842.13--Suspension of Work, Stop-Work Orders, and Government Delay of 
                                  Work



Sec. 1842.1305   Contract clauses. (NASA supplements paragraph (b))

    (b) FAR 52.242-15, Stop-Work Order, shall not be used in 
solicitations or contracts for research performed by educational or 
other nonprofit institutions.

[61 FR 47081, Sept. 6, 1996]



         Subpart 1842.14--Traffic and Transportation Management



Sec. 1842.1405  Discrepancies incident to shipment of supplies.

    In addition to following the applicable regulations and procedures 
referenced at FAR 42.1405(a), NASA personnel shall report discrepancies 
and adjust claims for loss of and damage to Government property in 
transit as prescribed in NHB 6200.1, NASA Transportation and General 
Traffic Management.



                 Subpart 1842.70--NASA Contract Clauses



Sec. 1842.7001  Technical direction.

    The contracting officer shall insert the clause at 1852.242-70, 
Technical Direction, in cost-reimbursement solicitations and contracts 
if (1) technical direction as defined in the clause (which includes the 
Government's approving approaches and solutions of the contractor and 
shifting emphasis among work areas or tasks) is appropriate to 
accomplish the contract requirements effectively, (2) the statement of 
work is conducive to technical direction by the Government, and (3) 
technical direction is to be in writing. Identify this duty in paragraph 
3(m), ``Other duties as follows'' of NASA Form 1634 (see 1842.270). This 
clause addresses COTR responsibilities that are in addition to those 
discussed in paragraphs 3(a)-(1) of the COTR delegation and is not 
intended to be followed in fulfilling those other responsibilities. The 
clause is not authorized for use with institutions of higher education 
and other non-profit organizations.



Sec. 1842.7002  Travel outside of the United States.

    The contracting officer shall insert the clause at 1852.242-71, 
Travel Outside of the United States, in cost-reimbursement solicitations 
and contracts where a contractor may travel outside of the United States 
and it is appropriate to require Government approval of the travel.

[54 FR 28299, July 5, 1989, as amended at 55 FR 27089, June 29, 1990]



Sec. 1842.7003  Observance of legal holidays.

    (a) The contracting officer shall insert the clause at 1852.242-72, 
Observance of Legal Holidays, in contracts when notification to the 
contractor of Government holidays would be useful in administering the 
contract.
    (b) The clause shall be used with its Alternate I in cost 
reimbursement contracts when work will be performed at a NASA 
installation and it is desired that contractor employees not have access 
to the installation during Government holidays. This alternate may be 
appropriately modified for fixed-price contracts.
    (c) The clause may be used with its Alternate II in cost-
reimbursement contracts when (1) Alternate I is used, (2) work will be 
performed at a NASA installation, and (3) it is desired that 
administrative leave be granted contractor personnel in special 
circumstances, such as inclement weather or potentially hazardous 
conditions.

[54 FR 28299, July 5, 1989, as amended at 54 FR 39374, Sept. 26, 1989; 
56 FR 48748, Sept. 26, 1991]



                 Subpart 1842.71--Submission of Vouchers



Sec. 1842.7101  Processing of vouchers.

    (a) Under the authority of FAR 42.803, NASA had designated the 
contract auditor as the contracting officer's representative for--
    (1) Promptly examining reimbursement vouchers received directly from 
contractors,
    (2) Promptly transmitting vouchers approved for provisional payment 
to the cognizant fiscal or financial management officer, and

[[Page 343]]

     (3) Regarding costs claimed, but not considered allowable, 
preparing and sending to the cognizant contracting officer NASA Form 
456, Notice of Contract Costs Suspended and/or Disapproved. Normally, 
the NASA Form 456 is initiated by the auditor; however, the contracting 
officer also may initiate it or direct is initiation. In accordance with 
any instructions received from the contracting officer, the contract 
auditor shall promptly examine and approve (but see paragraph (b) of 
this section) separate fee vouchers and fee portions of vouchers for 
provisional payment under the contract. After examination, the auditor 
shall forward completion vouchers to the contracting officer for 
approval and transmittal to the cognizant fiscal or financial management 
officer.
    (b) When the audit functions are delegated, special instructions may 
be issued to the contract auditor to--
    (1) Require submission of separate vouchers for reimbursable costs 
and for payment of earned fee; and/or
    (2) Reserve to the contracting officer approval of separate fee 
vouchers and all vouchers submitted by contractors performing at a NASA 
installation.
    (c) Unless otherwise notified, the contractor shall be required to 
submit public vouchers to the auditor as follows:
    (1) One original Standard Form 1034, Standard Form 1035, or 
equivalent contractor's attachment shall be submitted.
    (2) Seven copies of Standard Form 1034A, Standard Form 1035A, or 
equivalent contractor's attachment shall be submitted.
    (3) The contractor shall mark Standard Form 1034A copies 1, 2, 3, 4, 
and such other copies as may be directed by the contracting officer by 
inserting in the memorandum block names and addresses as follows:
    (i) Copy 1, NASA contracting officer.
    (ii) Copy 2, cognizant audit office.
    (iii) Copy 3, Contractor.
    (iv) Copy 4, Contract administration office.
    (v) Copy 5, project management office (when required by the NASA 
contracting officer).
    (4) The auditor shall retain an unpaid copy of the voucher.
    (5) When a voucher contains one or more individual direct freight 
charges of $100 or more, an additional copy of Standard Form 1034A and 
Standard Form 1035A shall be submitted and marked for return to the 
contractor after payment. This copy shall be transmitted quarterly by 
the contractor with the freight bills to the General Services 
Administration. When a voucher is identified as the ``Completion 
Voucher,'' an additional copy shall be submitted for transmittal to the 
NASA contracting officer.
    (d) When necessary, the contracting officer should consult with the 
auditor or the financial management officer concerning preparation, 
examination, and payment of vouchers. Functions to be performed by 
auditors and financial management and fiscal office personnel during the 
examination of vouchers are in FMM 9630.

[57 FR 840, Jan. 9, 1992]



     Subpart 1842.72--NASA Contractor Financial Management Reporting

    Source: 59 FR 23801, May 9, 1994, unless otherwise noted.



Sec. 1842.7201  General.

    (a) Contracting officer responsibilities. (1) Successful cost 
management will only result from a team approach among the procurement, 
financial/resources management, and project management communities. 
Contracting Officers should play a primary role in managing cost 
performance. They must ensure contracts require cost reporting 
consistent with both policy requirements and project needs. Contracting 
Officers should monitor contractor cost reports on a regular basis to 
ensure cost data reported is accurate and timely. Contracting Officers 
should independently review cost report data. Adverse trends or 
discrepancies discovered in cost reports should be pursued through 
discussions with financial and project team members.
    (2) Whenever cost performance threatens contract performance, 
Contracting Officers shall require corrective action plans from the 
contractors.

[[Page 344]]

When contracts are modified to accommodate contractor-responsible cost 
performance problems, consideration is required from the contractor; 
e.g., reduced fee earning potential.
    (b) Reporting requirements. (1) Reporting utilizing NASA Contractor 
Financial Management Reports, the NASA Form 533 series, is required (see 
NMI 9501.1, NASA Contractor Financial Management Reporting System) on 
cost-type, price redetermination, and fixed-price incentive contracts 
when the following dollar, period of performance, and scope criteria are 
met:

----------------------------------------------------------------------------------------------------------------
                       Criteria                                              Report format                      
----------------------------------------------------------------------------------------------------------------
                                       Period of                                                                
      Contract value/scope            performance             533M                533Q                533P      
----------------------------------------------------------------------------------------------------------------
$500K up to $1M/all.............  1 year or more.....  Required..........  Optional..........  Optional.        
$1,000,000 and greater/all......  Less than 1 year...  Required..........  Optional..........  Optional.        
$1,000,000 and greater/all......  1 year or more.....  Required..........  Required..........  Optional.        
$25,000,000 and greater/supply    1 year or more.....  Required..........  Required..........  Required.        
 contracts.                                                                                                     
----------------------------------------------------------------------------------------------------------------

    (2) Where it is probable that a contract will ultimately meet the 
criteria through change orders, supplemental agreements, etc., the 
reporting requirement must be implemented in the contract as initially 
awarded.
    (3) Performance analysis reporting using the 533P format is 
mandatory for supply contracts over $25,000,000. Although non-supply 
contracts over $25,000,000 require only 533M and 533Q reporting, 
Performance Measurement System reports can be an effective management 
tool and should be routinely considered as a possible requirement for 
non-supply contracts over $25,000,000.
    (c) Substitution of contractor reports. With the Contracting 
Officer's approval, the contractor's internal automated printout reports 
may be substituted for the 533 reporting formats only if the substitute 
reports contain all the data elements that would be provided by the 
corresponding 533's. If substitution is made for the 533P report, 
schedule data must be reported as of same date and in the same reporting 
categories as the financial data. The Contracting Officer shall 
coordinate any proposed substitute with the installation financial 
management office.
    (d) Contract requirements. (1) The reporting requirements, including 
a description of the reporting categories, shall be detailed in the 
procurement request, and the reports shall be required by inclusion of 
the appropriate clause or clauses prescribed in 1842.7202. The contract 
schedule must also indicate the addressees and number of copies. The 
reporting categories specified shall be coordinated with the 
Installation Financial Management Office to ensure that data required 
for agency cost accounting will be provided by the reports. Reporting 
due dates shall be in accordance with the provisions of NHB 9501.2, 
Procedures for Contractor Reporting of Correlated Cost and Performance 
Data. No changes to these submission requirements shall be negotiated 
except in unusual circumstances and no due dates shall be later than the 
date by which the Installation Financial Management Office requires the 
reports for entering cost data in the accounting system.
    (2) The contractor shall be required to submit an ``Initial 
Report,'' in complete detail, time-phased for the expected life of the 
contract, within 10 days after authorization to proceed has been 
granted, unless otherwise specified by the Contracting Officer. Regular 
monthly and quarterly reporting will begin within 30 days of contract 
award.
    (e) Deviations. Deviations from the financial management reporting 
provisions of the clauses prescribed herein will require approval in 
accordance with subpart 1801.4. The Associate Administrator for 
Procurement will obtain concurrences of the Director, Financial 
Management Division, and the Associate Administrator of the cognizant 
Headquarters Program Office.

[[Page 345]]



Sec. 1842.7202  Contract clauses.

    (a) The clause at 1852.242-73, NASA Contractor Financial Management 
Reporting, shall be used when any of the NASA Form 533 series of reports 
are required from the contractor.
    (b) The clause at 1852.242-74, NASA Contractor Financial Management 
Reporting (Performance Analysis Report), shall be used in conjunction 
with the clause at 1852.242-73 when the Monthly Contractor Financial 
Management Performance Analysis Report (533P) is required from the 
contractor.



             Subpart 1842.73--Audit Tracking and Resolution



Sec. 1842.7301  NASA external audit followup system.

    (a) This section implements OMB Circular No. A-50, NASA Management 
Instruction (NMI) 9970.1A, Audit Followup, and NASA Audit Followup 
Handbook 9970.2, which provide more detailed guidance. Recommendations 
for external audits (contracts and OMB Circulars No. A-128, Audits of 
State and Local Governments, and A-133, Audits of Institutions of Higher 
Learning and Other Non-Profit Institutions) shall be resolved by formal 
review and approval procedures analogous to those at 48 CFR 1815.807-71.
    (b) The external audit followup system tracks all contract and OMB 
Circular A-128 or A-133 audits where NASA has resolution and disposition 
authority. The objective of the tracking system is to ensure that audit 
recommendations are resolved as expeditiously as possible, but at a 
maximum, within 6 months of the date of the audit report.
    (c) (1) The identification and tracking of contract audit reports 
under NASA cognizance are accomplished in cooperation with DCAA by means 
of the DCAA form, Contract Audit Followup Summary Sheet. The use of this 
form by DCAA and NASA is covered in Chapter 6 of the NASA Audit Followup 
Handbook.
    (2) Identification and tracking of A-128 and A-133 audit reports are 
accomplished in cooperation with the NASA Office of the Inspector 
General (OIG) by means of a transmittal memorandum. A transmittal 
memorandum is sent by the OIG to the procurement officer of each NASA 
field installation having an award (contract, grant, or other agreement) 
covered by the audit report. The transmittal memorandum will identify 
whether there were any audit findings.
    (d) (1) Chapter 6 of the NASA Audit Followup Handbook identifies 
which contract audit reports are reportable semiannually to Code HC.
    (2) Only trackable A-128 and A-133 audit reports involving the 
following shall be reported semiannually to Code HC--
    (i) A significant management control issue; or
    (ii) For an individual NASA award, either the lower of 10 percent or 
$10,000 of the costs incurred in the period covered by the audit are 
questioned; or for institution-wide issues, the lower of 10 percent or 
$10,000 of the total costs incurred involving Government funds for the 
period covered by the audit are questioned.
    (e) (1) The resolution and disposition of contract audits is covered 
by Chapter 6 of the NASA Audit Followup Handbook.
    (2) The resolution and disposition of A-128 and A-133 are handled as 
follows:
    (i) Audit findings pertaining to an individual NASA award are the 
responsiblility of the procurement officer administering that award.
    (ii) Audit findings having an institution-wide impact are the 
responsibility of the cognizant Federal agency. OMB's January 6, 1986, 
Federal Register Notice (51 FR 552), titled ``Federal Agencies 
Responsible for Cost Negotiation and Audit of State and Local 
Governments,'' provides cognizant agency assignments for OMB Circular A-
128. For organizations subject to OMB Circular A-133, the cognizant 
agency is either assigned pursuant to OMB Circular A-88, ``Indirect Cost 
Rates, Audit, and Audit Followup at Educational Institutions,'' or if 
not formally assigned, it is based on which Federal agency provided the 
largest amount of funds for the audited period. In such cases where NASA 
is the cognizant Federal agency, audit resolution and disposition is the

[[Page 346]]

responsibility of the procurement officer for the ``cognizant field 
installation,'' i.e., the field installation having the largest total 
award dollar amount for the audited period. A copy of the memorandum 
dispositioning the findings shall be provided by each field installation 
having resolution responsibility for the particular report to the OIG 
Center office within whose geographic area of responsibility the audited 
organization is located.

[60 FR 16062, Mar. 29, 1995]



PART 1843--CONTRACT MODIFICATIONS--Table of Contents




                      Subpart 1843.2--Change Orders

Sec.
1843.205  Contract clauses.
1843.205-70  NASA contract clause.
1843.270  Originating and accepting engineering change proposals.

                          Subpart 1843.3--Forms

1843.301  Use of forms.

             Subpart 1843.70--Undefinitized Contract Action

1843.7001  Definitions.
1843.7002  Policy.
1843.7003  Procedures.
1843.7004  Exceptions.
1843.7005  Definitization.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28306, July 5, 1989, unless otherwise noted.



                      Subpart 1843.2--Change Orders

    Source: 55 FR 47479, Nov. 14, 1990, unless otherwise noted.



Sec. 1843.205  Contract clauses.

    As authorized in the preface of clauses FAR 52.243-1--Changes-Fixed 
Price; FAR 52.243-2--Changes-Cost Reimbursement; and FAR 52.243-3--
Changes-Time-and-Material or Labor-Hours, the period within which a 
contractor must assert its rights to an equitable adjustment may be 
varied not to exceed 60 calendar days.



Sec. 1843.205-70  NASA contract clause.

    (a) The contracting officer may insert in contracts a clause 
substantially the same as 1852.243-70, Engineering Change Proposals 
(ECP), when impact evaluation information is required. Paragraphs (c) 
and (d) of the basic clause and Alternate I of the clause shall be 
changed to reflect the specific type of contract. A local format may be 
substituted for the MIL-STD-973 format.
    (b) If it is desirable to preclude a large number of small-dollar, 
contractor-initiated engineering changes and to reduce the 
administrative cost of reviewing them, the contracting officer shall use 
the clause with its Alternate I.
    (c) If the contract is a cost-reimbursement contract, the 
contracting officer shall use the clause with its Alternate II.

[55 FR 47479, Nov. 14, 1990, as amended at 58 FR 51141, Sept. 30, 1993]



Sec. 1843.270  Originating and accepting engineering change proposals.

    (a) Either party to the contract may originate engineering changes. 
The originator must submit to the contracting officer detailed 
technical, cost, and schedule information documenting the proposed 
change. This information will be used by the Government project manager 
in deciding whether or not to implement the change and by the 
contracting officer to price the change in advance, when possible.
    (b) Contractual implementation of an approved ECP may occur by 
either a supplemental agreement or, if appropriate, as a written change 
order to the contract.



                          Subpart 1843.3--Forms



Sec. 1843.301  Use of forms.

    (a) FAR 43.301(a)(1) requires the use of Standard Form 30, Amendment 
of Solicitation/Modification of Contract, for administrative changes 
such as changes in accounting and appropriation data. Contract 
modifications should include only fund citations (i.e., accounting and 
appropriations data) applicable to the particular modification. The 
cumulative inception-to-date listing of funding citations for previous 
modifications is discouraged unless there is a contractual need 
requiring

[[Page 347]]

such a listing. Modifications should include, as a minimum, the prior 
total funding, the change taking place, and a new total value.
    (b) When an internal administrative change of funding citations 
relative to a contract is required, the official determining the need 
for the change shall request it, obtain applicable installation 
approvals, and then forward documentation to the financial management 
officer and the contracting officer to facilitate it. An administrative 
modification of the contract is not required unless it affects the 
billing or reporting requirements placed upon the contractor.
    (c) These procedures do not reduce the contracting officer's 
responsibility for ensuring that obligations are made only on the basis 
of appropriated funds.



             Subpart 1843.70--Undefinitized Contract Action

    Source: 59 FR 23803, May 9, 1994. Redesignated at 59 FR 29964, June 
10, 1994, unless otherwise noted.



Sec. 1843.7001  Definitions.

    Undefinitized contract action (UCA) means a unilateral or bilateral 
contract modification or work/task order in which the final price or 
estimated cost and fee have not been negotiated and mutually agreed to 
by NASA and the contractor. (Issuance of letter contracts and 
modifications to letter contracts are governed by subpart 1816.6.)



Sec. 1843.7002  Policy.

    Undefinitized contract actions shall be executed by contracting 
officers on an exception basis and shall be limited to the Agency's 
minimum urgent requirements. The contract file for all UCAs shall be 
documented to justify issuance and shall include a Government estimate 
for the changed requirements.



Sec. 1843.7003  Procedures.

    (a) Issuance of undefinitized contract actions with a Government 
estimated cost or price over $1,000,000 must be approved in writing by 
the Center Director, except that Space Station undefinitized contract 
actions with a Government estimate over $10,000,000 must be approved in 
writing by the Deputy Associate Administrator for Space Flight (Space 
Station). These approval authorities are not delegable. Issuance of 
undefinitized contract actions with a Government estimated cost or price 
less than or equal to $1,000,000 shall also be minimized but may be 
approved on an exception basis in accordance with Center procedures.
    (b) (1) Undefinitized contract actions exceeding $1,000,000 approved 
by the Center Director shall be issued as bilateral agreements duly 
executed by an authorized representative of the contractor. These 
bilateral agreements shall set forth a ceiling price or ``not to 
exceed'' estimated cost figure for the changed contractual requirements. 
For fixed price contracts the negotiated price for the changed contract 
requirements shall not exceed the established ceiling price. In the case 
of cost type contracts any costs eventually negotiated for the changed 
requirements in excess of the ``not to exceed'' estimated cost figure 
shall be non-fee bearing. The ceiling price or ``not to exceed'' 
estimated cost figures shall be separately identified in the UCA 
instrument from any increases in the estimated cost or Limitation of 
Government Liability.
    (2) The Center Director or Deputy Associate Administrator for Space 
Flight (Space Station) may waive the ceiling price or ``not to exceed'' 
estimated cost figure and bilateral agreement requirements prior to UCA 
issuance on the basis of urgency. This waiver authority is not 
delegable. Any waivers shall be documented in the contract file.
    (c) The changed contractual requirements set forth in the UCA shall 
be clearly defined and shall be limited to the minimum effort required 
to satisfy urgent program requirements while a cost proposal is 
prepared, analyzed and negotiated.
    (d) For undefinitized contract actions with a Government estimate 
greater than $1,000,000 and not excepted under subpart 1843.104, a 180 
day funding profile shall be obtained from the contractor and reviewed 
by the cognizant NASA personnel prior to execution of the undefinitized 
contract action.
    (e) Undefinitized contract actions with a Government estimated cost 
or price greater than $1,000,000 shall include a requirement that the 
change

[[Page 348]]

shall be separately accounted for by the contractor to the degree 
necessary to provide the Contracting Officer visibility into actual 
costs incurred pending definitization. The Contracting Officer may waive 
this requirement for individual actions if there is a documented finding 
that such accounting procedures would not be cost effective. Any such 
waiver shall not affect existing NASA Form 533 or other financial 
reporting requirements set forth in the contract.



Sec. 1843.7004  Exceptions.

    (a) Exceptions to the requirement for Center Director or Deputy 
Associate Administrator for Space Flight (Space Station) approval for 
issuance of undefinitized contract actions as specified in 1843.103(a) 
are--
    (1) Modifications to facilities contracts;
    (2) Modifications to construction contracts using Construction of 
Facilities funding;
    (3) Urgent modifications resulting from Shuttle manifest changes or 
that involve immediate issues of safety or damage/loss of property;
    (4) Modifications to decrease the contract value; or
    (5) Modifications to letter contracts.
    (b) The contract file for any of the above modifications shall be 
documented to justify UCA issuance in addition to citing the appropriate 
exception to Center Director or Deputy Associate Administrator for Space 
Flight (Space Station) approval.



Sec. 1843.7005  Definitization.

    (a) Undefinitized contract actions should be sufficiently complete 
and detailed as to enable the contractor to begin immediate preparation 
of a cost proposal for the changed requirement. The NASA goal is to 
definitize UCAs within 180 days from date of issuance. This goal in no 
way compromises the Agency's continuing requirement for sound cost 
analysis, arms-length negotiations, and fair and reasonable settlements.
    (b) Whenever possible, pre-change study efforts or engineering 
change proposals (ECPs) shall be utilized to negotiate and definitize 
changes prior to issuance.



PART 1844--SUBCONTRACTING POLICIES AND PROCEDURES--Table of Contents




                         Subpart 1844.1--General

Sec.
1844.102  Policy.
1844.102-70  Contracting officer designated special surveillance and 
          consent requirements.
1844.102-71  [Reserved]
1844.102-72  New sources of scientific and technical competence.
1844.170  NASA contract clause.

         Subpart 1844.3--Contractors' Purchasing Systems Reviews

1844.302  Requirements.
1844.302-70  DCMC-conducted contractor purchasing system reviews.
1844.302-71  NASA-conducted contractor purchasing system reviews.
1844.304-70  Surveillance.
1844.305  Granting, withholding, or withdrawing approval.
1844.307-70  Reporting.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28307, July 5, 1989, unless otherwise noted.



                         Subpart 1844.1--General



Sec. 1844.102  Policy.

    (a) It is NASA policy to retain consent to subcontract authority--
    (1) Under fixed-price contracts required to include the clause at 
FAR 52.244-1;
    (2) Under cost reimbursement and letter contracts required to 
include the clause at FAR 52.244-2;
    (3) Under time-and-material and labor-hour contracts required to 
include the clause at FAR 52.244-3;
    (4) For all subcontracts designated as requiring special 
surveillance. (See 1844.102-70 on special surveillance.)
    (b) However, if the contracting officer considers it necessary to 
delegate consent to subcontract authority, the contracting officer 
shall--
    (1) Justify in writing the rationale for such delegation;
    (2) Obtain written approval of the justification from the 
procurement officer or a designee; and
    (3) Include the approved justification in the contract file.

[57 FR 841, Jan. 9, 1992]

[[Page 349]]



Sec. 1844.102-70  Contracting officer designated special surveillance and consent requirements.

    (a) Notwithstanding approval of a contractor's purchasing system, 
the contracting officer may require the contractor to obtain consent for 
any subcontract or class of subcontracts selected for special 
surveillance. Such subcontracts shall be identified in the schedule of 
the contract. In making subcontracts subject to special surveillance 
consent requirements, the contracting officer should consider specific 
subcontract awards, as well as any individual systems, subsystems, 
components, technologies, and services which would have contracting 
officer consent prior to being subcontracted. Any subcontract for which 
consent was not provided at the time of contract award, under a cost 
type prime contract (FAR 44.102-1(c)), for which the Government would 
have required cost and pricing data in accordance with FAR 15.806-2(a) 
(1) or (2), shall be identified for special surveillance.
    (b) For each planned contract award expected to exceed $1 million in 
total estimated value (inclusive of options), the contracting officer, 
in conjunction with the technical representative, when appropriate, 
shall review the information available at the time of contract award to 
determine whether certain subcontracts require special surveillance. At 
a minimum, the contracting officer review should consider such factor 
as--
    (1) The degree of subcontract pricing uncertainties at the time of 
contract award;
    (2) The overall quality of the contractor's approach to pricing 
subcontracts;
    (3) The extent of competition achieved, or to be achieved, by the 
contractor in the award of subcontracts;
    (4) Technical complexity and the criticality of specific supplies, 
services, and technologies on the successful performance of the 
contract; and
    (5) The potential impact of planned subcontractors on source 
selection or incentive arrangements.
    (c) The contracting officer shall document results of the review in 
the contract file, and include the requirement to obtain consent for 
subcontracts identified for special surveillance in the schedule of the 
contract. For contract modifications and change orders, the contracting 
officer shall make the determination required by paragraph (b) of this 
section whenever the value of any subcontract resulting from the change 
order or modification:
    (1) Is proposed to exceed $100,000; or
    (2) Is one of a number of subcontracts with a single subcontractor, 
under the contract, for the same or related supplies or services, that 
in the aggregate are expected to exceed $100,000.

[57 FR 841, Jan. 9, 1992]
1844.102-71  [Reserved]



Sec. 1844.102-72  New sources of scientific and technical competence.

    As a Government agency whose mission involves substantial Federal 
expenditures and use of national resources, NASA has a strong interest 
in helping accomplish collateral national economic goals within the 
framework of applicable statutory and administrative authority in a way 
that will not impair program effectiveness. Utilization in the space 
program and the accompanying development of the potential of all 
geographical regions will effectively contribute to achieving national 
goals. To advance the further development of competence and capacity of 
sources, NASA encourages the placing of subcontracts over wider 
geographic areas. To carry out these objectives, the clause at 1852.244-
70, Geographic Participation in the Aerospace Program, shall be used as 
prescribed at 1844.170.



Sec. 1844.170  NASA contract clause.

    The contracting officer shall insert the clause at 1852.244-70, 
Geographic Participation in the Aerospace Program, in all research and 
development solicitations anticipated to exceed $500,000 and in 
resulting contracts of $500,000 or over to be performed within the 
United States.

[[Page 350]]



         Subpart 1844.3--Contractors' Purchasing Systems Reviews

1844.302  Requirements.



Sec. 1844.302-70  DCMC-conducted contractor purchasing system reviews.

    For contracts within their cognizance, NASA contracting officers 
shall be aware of purchasing system approval status and are encouraged 
to become actively involved with the Defense Contract Management Command 
(DCMC) in the Contractor Purchasing System Review (CPSR) process. 
Involvement should include the following:
    (a) Verifying that CPSRs are being conducted as required for each 
contractor meeting the thresholds in FAR 44.302.
    (b) Ensuring that purchasing system review specifically includes the 
business unit performing the NASA contract.
    (c) Actively participating as a team member, or arranging NASA 
representation, on DCMC CPSRs. At a minimum, such participation or 
representation shall be arranged when the DCMC CPSR review involves--
    (1) Contractors with major NASA programs;
    (2) Contractors' business units where the total dollar value of NASA 
contracts is substantial; or
    (3) Any contractor system where the contracting officer has special 
concerns.
    Participation should be oriented towards reviewing those areas of 
NASA-specific interest within the contractor's procurement operation.
    (d) Ensuring that the selected CPSR sample to be reviewed reflects 
the level of NASA business in the contractor's purchasing organization.
    (e) Providing to the cognizant DCMC CPSR team leader any areas of 
special emphasis regarding the contractor's procurement operation, to 
ensure that the review is tailored to address any NASA concerns, in 
addition to complying with FAR requirements for the review format.

[57 FR 841, Jan. 9, 1992]



Sec. 1844.302-71  NASA-conducted contractor purchasing system reviews.

    If a NASA activity is the cognizant contract administration office, 
or after coordination with the cognizant DCMC CPSR office, it is 
determined that a CPSR is required but cannot be accomplished by DCMC, 
then a CPSR should be conducted by NASA personnel. The NASA CPSR team 
leader:
    (a) May use DOD FAR Supplement, Contractor Purchasing System Review 
(CPSR) guidance, as a general guide to conducting the CPSR.
    (b) May vary the scope of review depending on the contractor and 
contracts involved.
    (c) Shall maintain close coordination with the cognizant ACO during 
CPSRs at contractors under DOD cognizance.

[57 FR 842, Jan. 9, 1992]



Sec. 1844.304-70  Surveillance.

    (a) In the period between complete CPSRs, NASA contracting officers 
shall maintain a sufficient level of surveillance to ensure contractor 
purchasing efforts in support of NASA contracts are accomplished in an 
appropriate manner and protect the interests of the Agency.
    (b) Surveillance shall be accomplished primarily through performance 
of consent-to-subcontract reviews (see FAR 44.202). Other methods of 
surveillance, including periodic reviews of contractor purchasing 
records may also be conducted. Contracting officers shall document the 
results of consent-to-subcontract reviews and periodic reviews, 
maintaining a record of contractor subcontract or purchase order award 
performance on NASA contracts. Contractor performance shall be 
summarized on an annual basis and provided to the ACO cognizant of the 
contractor's purchasing system. Annual reports should summarize the 
number of consent reviews and other reviews conducted during the year by 
NASA representatives, and summarize the types and quantity of 
deficiencies identified during reviews, need for special reviews, and 
recommended areas of emphasis during future CPSRs.

[57 FR 842, Jan. 9, 1992]

[[Page 351]]



Sec. 1844.305  Granting, withholding, or withdrawing approval.

    ACO actions related to purchasing system approval have a potential 
impact on NASA contracting officer consent requirements. Accordingly, 
NASA contracting officers should review system deficiencies documented 
in CPSR reports and when results of consent reviews and other sources 
conflict with CPSR or DOD surveillance conclusions, formally communicate 
such concerns to the ACO having cognizance of procurement system 
approval. Significant issues or significant conflicts with DOD CPSR 
results should be formally referred to Headquarters, Code HK.

[57 FR 842, Jan. 9, 1992, as amended at 59 FR 66270, Dec. 23, 1994]



Sec. 1844.307-70  Reporting.

    NASA contracting officers, when delegating contract administration 
to a DOD contract administration office under FAR 42.202 and 
42.302(a)(50), are required by 1842.202-70(f) to include in the letter 
of delegation of contract administration functions a requirement for the 
contract administration office to provide the NASA contracting officer 
with adequate advance notification of scheduled CPSRs and a copy of each 
CPSR report.

[57 FR 842, Jan. 9, 1992]



PART 1845--GOVERNMENT PROPERTY--Table of Contents




                         Subpart 1845.1--General

Sec.
1845.102  Policy.
1845.102-70  Procedures.
1845.104  Review and correction of contractors' property control 
          systems.
1845.104-70  Contract property administration by the Government.
1845.106  Government property clauses.
1845.106-70  NASA contract clauses and solicitation provision.
1845.106-71  Plant reconversion and plant clearance.

      Subpart 1845.3--Providing Government Property to Contractors

1845.301  Definitions.
1845.302  Providing facilities.
1845.302-1  Policy.
1845.302-2  Facilities contracts.
1845.302-3  Other contracts.
1845.302-70  Securing approval of facilities projects.
1845.302-71  Acquisition of ADPE.
1845.302-72  Long-term facilities use.
1845.302-73  Determination and findings.

    Subpart 1845.4--Contractor Use and Rental of Government Property

1845.402  Authorizing use of Government production and research 
          property.
1845.403  Rental--Use and Charges clause.
1845.405  Contracts with foreign governments or international 
          organizations.
1845.406  Use of Government production and research property on 
          independent research and development programs.
1845.407  Non-Government use of equipment.

 Subpart 1845.5--Management of Government Property in the Possession of 
                               Contractors

1845.501  Definitions.
1845.502  Contractor responsibility.
1845.502-1  Receipts for Government property.
1845.502-70  Government-furnished property.
1845.502-71  Contractor-acquired property.
1845.505  Records and reports of Government property.
1845.505-2  Records of pricing information.
1845.505-14  Reports of Government property.
1845.505-670  Reporting centrally reportable equipment (CRE).
1845.508  Physical inventories.

 Subpart 1845.6--Reporting, Redistribution, and Disposal of Contractor 
                                Inventory

1845.604  Restrictions on purchase or retention of contractor inventory.
1845.606  Inventory schedules.
1845.606-1  Submission.
1845.607  Scrap.
1845.607-70  Contractor's approved scrap procedure.
1845.608  Screening of contractor inventory.
1845.608-1  General.
1845.608-6  Waiver of screening requirements.
1845.610  Sale of surplus contractor inventory.
1845.610-2  Exemptions from sale by GSA.
1845.610-3  Proceeds of sale.
1845.610-4  Contractor inventory in foreign countries.
1845.613  Property disposal determinations.
1845.615  Accounting for contractor inventory.

            Subpart 1845.70--NASA Equipment Management System

1845.7001  Policy.
1845.7002  Application.
1845.7003  General.

[[Page 352]]

1845.7004  Interface with NEMS coordinators and technical project 
          office.
1845.7005  Retention of NEMS equipment.

                   Subpart 1845.71--Forms Preparation

1845.7101  Instructions for preparing NASA Form 1018.
1845.7101-1  Property classification.
1845.7101-2  Transfers of property.
1845.7101-3  Computing costs of fabricated special tooling, special test 
          equipment, agency-peculiar property and contract work in 
          process.
1845.7101-4  Type of deletion.
1845.7101-5  Contractor's privileged financial and business information.
1845.7101-6  Space hardware reporting requirements.
1845.7101-10  Contractor's privileged financial and business 
          information.
1845.7102  Instructions for preparing DD Form 1342.
1845.7103  Instructions for preparing DD Form 1419.

              Subpart 1845.72--Contract Property Management

1845.7201  Definitions.
1845.7202  General.
1845.7203  Delegations of property administration and plant clearance.
1845.7204  Retention of property administration and plant clearance.
1845.7205  Functional oversight of property administration and plant 
          clearance.
1845.7206  Responsibilities of property administrators and plant 
          clearance officers.
1845.7206-1  Property administrators.
1845.7206-2  Plant clearance officers.
1845.7207  Initiation of property administration.
1845.7207-1  Control of assignments.
1845.7207-2  Analysis of contract and establishment of contract property 
          control data files.
1845.7208  Initial evaluation and approval of contractor's property 
          control system.
1845.7208-1  General.
1845.7208-2  Review of procedures.
1845.7208-3  Exit interview with the contractor.
1845.7208-4  Record of system evaluation.
1845.7208-5  Notification of deficiencies.
1845.7208-6  Resolution of differences.
1845.7208-7  Letter of approval.
1845.7209  Property administration during contractor performance.
1845.7209-1  Property administration plan.
1845.7209-2  System surveys: surveillance.
1845.7209-3  System surveys: scheduling and planning.
1845.7209-4  Testing the system.
1845.7209-5  Performing the system survey.
1845.7209-6  System survey summary.
1845.7209-7  Correction of unsatisfactory conditions.
1845.7209-8  Survey case file.
1845.7209-9  Additional administrative responsibilities.
1845.7209-10  Declaration of excess property.
1845.7210  Closure of contracts.
1845.7210-1  Completion or termination.
1845.7210-2  Final review and closing of contracts.
1845.7211  Special subjects.
1845.7211-1  Government property at alternate locations of the prime 
          contractor and subcontractor plants.
1845.7211-2  Loss, damage, or destruction of Government property.
1845.7211-3  Loss, damage, or destruction of Government property while 
          in contractor's possession or control.
1845.7211-4  Financial reports.
1845.7212  Contractor utilization of Government property.
1845.7212-1  Utilization surveys.
1845.7212-2  Records of surveys.
1845.7212-3  Scope of survey.
1845.7213  Statistical sampling.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28308, July 5, 1989, unless otherwise noted.



                         Subpart 1845.1--General



Sec. 1845.102  Policy.

    (a) One reason for the policy in FAR 45.102 that contractors shall 
ordinarily furnish all property is that providing Government property 
(whether Government-furnished or contractor-acquired) increases the 
Government's administrative burden and requires recordkeeping and 
personnel. Providing property may dilute the contractor's overall 
responsibility and weaken guarantees, end-item delivery requirements, 
and other contract terms. Furnishing property places NASA between the 
source of the property and the contractor. When NASA assumes 
responsibility for scheduling delivery of the property, NASA may be 
responsible for delays.
    (b) Nevertheless, sometimes providing Government property to 
contractors may be essential to contract performance or otherwise 
advantageous to NASA. For example, furnishing standardized production 
property and raw materials may be necessary for uniformity of products. 
Furnishing Government property can reduce the production cycle by 
eliminating the lead time necessary for the contractor to

[[Page 353]]

acquire or fabricate production property. NASA may be able to broaden 
its competitive base by offering property to firms unable to acquire 
their own, or by offering production property or critical material not 
generally available throughout the industry. NASA may lower contract 
costs by offering existing Government property or new Government 
property obtainable at prices lower than those available to the 
contractor. NASA may also provide Government property to educational or 
other nonprofit institutions to facilitate scientific research.
    (c) NASA has several types of contract property accountability 
options. The selection of the combination of Government property clauses 
for a given contract is dependent upon variables such as whether 
performance is on-site at a NASA installation, contract purpose, and the 
degree of contractor management independence that is inherent in the 
statement of work (see 1845.102-70(b)).

[54 FR 28308, July 5, 1989, as amended at 54 FR 39374, Sept. 26, 1989]



Sec. 1845.102-70  Procedures.

    (a) The contracting officer shall, as applicable, include in each 
solicitation a--
    (1) List of any Government property (showing location and 
condition), including Government-owned tooling, that will be furnished 
for the performance of the contract and any related special provisions;
    (2) Requirement that information be furnished regarding (i) any 
Government-owned facilities or items of industrial equipment or special 
tooling requested to be used in performing the contract, (ii) their 
acquisition cost, (iii) identification of the Government contract under 
which the property is accountable, (iv) rental provisions, and (v) other 
relevant matters;
    (3) Requirement that additional facilities that the offeror requests 
to be provided by the Government be described and identified by 
classification such as ``Land'', ``Buildings'', and ``Equipment'' (see 
subpart 1845.71); and
    (4) Requirement that additional special test equipment that the 
offeror requests to be provided by the Government be described and its 
intended use, estimated cost, and proposed location be shown.
    (b) To ensure the contract property accountability option selected 
is appropriate for a particular contract and is in consonance with 
installation resources and policies regarding use of Government 
property, the contracting officer shall, as part of the solicitation/
contract review process, provide a copy of the solicitation/contract to 
the installation supply and equipment management officer (SEMO) for 
review. It shall be the responsibility of the SEMO to provide comments 
or recommendations to the contracting officer within the review time 
specified. In circumstances where an award of a contract is 
contemplated, and a solicitation was not issued (e.g., contracts 
resulting from broad agency announcements and unsolicited proposals), 
the contracting officer shall provide a copy of the contract prior to 
award to the installation SEMO for review and comment. The contracting 
officer shall provide this opportunity for SEMO review and comment as a 
part of the solicitation/contract review process for procurements with 
an estimated cost over $1,000,000 or for procurements with an estimated 
cost over $50,000 (1) for work expected to be performed on-site at a 
NASA installation, or (2) which provide existing government property, or 
(3) which require contractor acquisition of Government property.

[54 FR 39374, Sept. 26, 1989, as amended at 61 FR 47083, Sept. 6, 1996]



Sec. 1845.104  Review and correction of contractors' property control systems.

    (a) When review of the contractor's property control system is not 
delegated to DOD, the NASA contracting officer or property administrator 
shall conduct the review as required in subpart 1845.72.
    (b) In each solicitation under which use of Government property is 
contemplated, the contracting officer shall require the offeror to--
    (1) Furnish the date of the last Government review of its property 
control and accounting system and describe actions taken to correct any 
deficiencies found;

[[Page 354]]

    (2) State that the offeror has reviewed, understands, and can comply 
with all property management and accounting procedures in the 
solicitation, FAR subpart 45.5, and subparts 1845.5, 1845.70, and 
1845.71 of this regulation; and
    (3) State whether the costs associated with paragraph (b)(2) of this 
section are included in its cost proposal.



Sec. 1845.104-70  Contract property administration by the Government.

    DOD will conduct contract property administration in accordance with 
their regulations and procedures and NASA special delegation 
instructions. When property administration is not delegated to DOD, NASA 
shall conduct contract property administration in accordance with 
subpart 1845.72.



Sec. 1845.106  Government property clauses.

    In addition to the applicable Government property clauses prescribed 
in FAR 45.106, the contracting officer shall insert the following 
clause(s) and provision as appropriate.



Sec. 1845.106-70  NASA contract clauses and solicitation provision.

    (a) The contracting officer shall insert the clause at 1852.245-70, 
Acquisition of Centrally Reportable Equipment, in all solicitations and 
contracts that include a Government property clause. See 1845.7103 and 
the clause at 1852.245-70 for instructions on preparing DD Form 1419.
    (b)(1) The contracting officer shall insert the clause at 1852.245-
71, Installation-Provided Government Property, in solicitations and 
contracts when Government property is to be provided to on-site 
contractors, and the Government will retain accountability for the 
property. The contracting officer shall identify in the Contract 
Schedule the nature and extent of such property and the installation 
supply and equipment management officer will make such property 
available to the contractor on a no-charge-for-use basis. The 
contracting officer shall also list in the contract the applicable 
installation property management directives.
    (2) Contracting officers may also use the clause if Government 
property is provided to off-site local support service contractors. In 
this case, the concurrence of the installation supply and equipment 
management officer must be obtained and indicated in the procurement 
request.
    (3) To avoid diluting contractor responsibilities when they include 
separate procurement authority and responsibility, contracting officers 
may preclude such contractors from utilizing the installation's central 
receiving facility for receiving contractor-acquired property. To 
accomplish this, the contracting officer shall use the clause with its 
Alternate I. The contracting officer shall review the acquisitions 
reported by the contractor for their appropriateness, and the supply and 
equipment management officer shall ensure that records are established.
    (4) Contracting officers shall clearly identify in a separate 
schedule any property provided under a Government property clause but 
not also subject to the clause at 1852.245-71. The contracting officer 
shall address any specific maintenance considerations (for example, 
requiring use of a central calibration facility) elsewhere in the 
contract.
    (c) The contracting officer shall insert the clause at 1852.245-72, 
Liability for Government Property Furnished for Repair and Services, in 
fixed-price solicitations and contracts (except for experimental, 
developmental, or research work with educational or nonprofit 
institutions, where no profit is contemplated) for repair, modification, 
rehabilitation, or other servicing of Government property, if such 
property is to be furnished to a contractor for that purpose. If (1) a 
substantial quantity of parts or material will be furnished, (2) a 
significant amount of scrap will result from the work to be performed, 
or (3) other Government property will be furnished to or acquired by the 
contractor, the contract will also contain the appropriate Government 
property clause (see FAR 45.106) and the contract Schedule shall provide 
that such property shall be governed by the terms of that clause. When 
minor repairs are obtained under small purchase procedures, the 
procedures of this paragraph (c) shall not

[[Page 355]]

apply. Contracting officers shall not require additional insurance under 
the clause at 1852.245-72 unless the circumstances clearly indicate 
advantages to the Government.
    (d)(1) The contracting officer shall insert the clause at 1852.245-
73, Financial Reporting of NASA Property in the Custody of Contractors, 
in all cost reimbursement contracts. It shall be included in all other 
types of contracts when it is known at the time of award that property 
will be provided to the contractor or that the contractor will acquire 
property, title to which will vest in the Government prior to delivery 
of the contract products. Where all property to be provided is subject 
to the clause at 1852.245-71, Installation-Provided Government Property 
(see paragraph (b) of this section), the clause at 1852.245-73 is not 
required. Where the clause is not included in contracts at the time of 
award, if Government property is subsequently provided to a contractor, 
or the contractor is authorized to acquire property to which the 
Government takes title, the clause shall be included in the contract at 
that time.
    (2) Paragraph (c) of the clause at 1852.245-73 permits the 
contracting officer to withhold payments, up to a specified dollar 
limit, in the event a contractor fails to submit the annual NF 1018 by 
the due date. This provision reflects the importance to NASA of 
receiving this financial data on time. Upon receipt, the information is 
entered into the NASA accounting system and is used in the preparation 
of agency annual financial statements. Therefore, timely receipt of 
contractor held property financial data is essential to the process. A 
concerted effort should be made to obtain NF 1018 reports by the due 
date before resorting to the payment withholding alternative.
    (e) The contracting officer shall insert the clause at 1852.245-74, 
Contractor Accountable On-Site Government Property, in solicitations and 
contracts when accountability rests with an on-site contractor. The 
contracting officer shall obtain approval to use the clause at 1852.245-
74 in lieu of the clause at 1852.245-71 from Director, Logistics 
Management Office (Code JLG), NASA Headquarters. The request for 
approval shall be written and shall include a determination of costs 
that will be:
    (i) Avoided (e.g., additional costs to the installation's property 
management systems and staffing) and
    (ii) Incurred (e.g., reimbursable costs of the contractor to 
implement, staff, and operate separate property management systems on-
site, and resources needed for performance of, or reimbursement for, 
property administration) under contractor accountability.
    (f) The contracting officer shall insert the clause at 1852.245-75, 
Title to Equipment, in solicitations and contracts where the clause at 
FAR 52.245-2 (Alternate II) or 52.245-5 (Alternate I) is used. Insert a 
dollar value not less than $5,000, based on the particular procurement, 
and identify the property for which vesting of title with the Government 
is appropriate.
    (g) The contracting officer shall insert the clause at 1852.245-76, 
List of Government-Furnished Property, in solicitations and contracts if 
the contractor is to be accountable under the contract for Government 
property. Insert the name of the Government installation, contractor's 
plant, or other site(s) where the Government property will be used. 
Insert a description of the item(s), quantity, acquisition cost, and 
date the property will be furnished to the contractor.
    (h) The contracting officer shall insert the clause at 1852.245-77, 
List of Installation-Provided Property and Services, in solicitations 
and contracts that authorize contractor use of on-site Government 
property and services, such as office space, the cafeteria, or first-
aid. Insert the attachment number identifying the equipment to be made 
available to the contractor. Insert the name of the installation service 
facilities, such as a library, computer facility, or health center, that 
the contractor will be authorized to use. The property and services may 
be specified, modified, and updated to meet the needs of the particular 
procurement.
    (i) The contracting officer shall insert the provision at 1852.245-
79, Use of

[[Page 356]]

Government-Owned Property, in all solicitations when Government property 
may be used by the contractor.
    (j) The contracting officer shall insert the clause at 1852.245-80, 
Use of Government Production and Research Property on a No-Charge Basis, 
in solicitations and contracts when Government production and research 
property (facilities, special test equipment, or special tooling) 
accountable under another contract(s) is authorized for use. Insert the 
contract number(s) under which the Government property is accountable.

[54 FR 28308, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 58 
FR 51141, Sept. 30, 1993; 60 FR 16063, Mar. 29, 1995; 61 FR 47083, Sept. 
6, 1996]



Sec. 1845.106-71  Plant reconversion and plant clearance.

    The contracting officer must obtain the prior approval of the 
Associate Administrator for Procurement (Code H) for any solicitation 
provision or contract clause that would defer negotiation of costs for 
plant reconversion or plant clearance until after award.



      Subpart 1845.3--Providing Government Property to Contractors



Sec. 1845.301  Definitions.

    Provide, as used in this subpart in such phrases as ``Government 
property provided to the contractor'' and ``Government-provided 
property,'' means either to furnish, as in ``Government-furnished 
property,'' or to permit to be acquired, as in ``contractor-acquired 
property.'' See FAR 45.101 for definitions of contractor-acquired 
property and Government-furnished property.
    Agency-peculiar property, (see 1845.501).

[54 FR 28308, July 5, 1989, as amended at 61 FR 47084, Sept. 6, 1996]
1845.302  Providing facilities.



Sec. 1845.302-1  Policy.

    (a) The procurement officer is designated to make determinations 
required under FAR 45.302-1(a)(4) on authorizing the use of Government 
facilities.
    (b) When any of the conditions listed in FAR 45.302-1(d) is met, the 
requirements of FAR 45.302-1(a)(4) do not apply.
    (c) In addition to the exceptions listed in FAR 45.302-1(a), 
existing NASA-owned facilities (whether contractor acquired or 
Government furnished) may be retained for the remainder of the contract 
period and furnished under any follow-on contract for the same effort if 
the contracting officer determines that to do so would be in the best 
interest of the Government, provided that: (1) The facilities are 
required to accomplish the purpose of the contract;
    (2) The resulting contract contains a provision requiring the 
contractor to replace any of the facilities that reach the end of their 
useful life during the contract period, or which are beyond economical 
repair, if the facilities are still needed for contract performance. 
Such replacements shall be made with contractor-owned facilities. The 
contract provision shall also expressly prohibit contractor acquisitions 
of facility items for the Government, unless specifically authorized by 
the contract or consent has been obtained in writing from the 
contracting officer pursuant to FAR 45.302-1(a);
    (3) Consideration has been given to any alternative uses by 
Government personnel within the agency, in consultation with the 
Industrial Property Officer; and
    (4) The contracting officer documents the file with a detailed 
explanation of the circumstances which make furnishing of the facilities 
in the best interest of the Government.

[54 FR 28308, July 5, 1989, as amended at 57 FR 58725, Dec. 11, 1992; 59 
FR 13250, Mar. 21, 1994]



Sec. 1845.302-2  Facilities contracts.

    Unless termination would be detrimental to the Government's 
interests, contracting officers shall terminate facilities contracts 
when the Government production and research property is no longer 
required for the performance of Government contracts or subcontracts. 
Contracting officers shall not grant the contractor the unilateral right 
to extend the time during which

[[Page 357]]

it is entitled to use the property provided under the facilities 
contract.



Sec. 1845.302-3  Other contracts.

    In addition to the conditions listed in FAR 45.302-3, the 
contracting officer may also provide facilities to a contractor under a 
contract other than a facilities contract if the contract is for less 
than 6 months or provides fewer than 6 items of plant equipment and no 
other facilities.



Sec. 1845.302-70  Securing approval of facilities projects.

    (a) Pursuant to NMI 7330.1, Delegation of Authority--Approval 
Authorities for Facility Projects, the contracting officer must approve 
facilities projects involving leasing, construction, expansion, 
modification, rehabilitation, repair, or replacement of real property.
    (b) The contracting officer's written authorization is required 
before any change is made in the scope or estimated cost of any 
facilities project.

[54 FR 28308, July 5, 1989, as amended at 59 FR 12198, Mar. 16, 1994]



Sec. 1845.302-71  Acquisition of ADPE.

    Any contractor proposed acquisition of automatic data processing 
equipment as defined in the FIRMR shall be--
    (a) Submitted on DD Form 1419, or equivalent format, through the 
contracting officer to the installation's ADPE staff, for screening 
availability; and
    (b) Approved in accordance with the provisions of NASA Handbook 
2410.1, Information Processing Resources Management.

[54 FR 28308, July 5, 1989, as amended at 56 FR 32119, July 15, 1991]



Sec. 1845.302-72  Long-term facilities use.

    For procurements in which:
    (a) The proposed contract, exclusive of options, will be for a 
shorter period than the useful life, for the program, of any required 
contractor-owned or leased facilities, and
    (b) The facilities are unlikely to be needed by the contractor for 
any purpose other than the program effort being contracted for, see 
1807.170-1(b)(10)(i).

[54 FR 28308, July 5, 1989, as amended at 56 FR 32119, July 15, 1991]



Sec. 1845.302-73  Determination and findings.

    (a) Procedure. Determination and findings (D&F) required under FAR 
45.302-1(a)(4) shall be prepared by the contracting officer and approved 
by the procurement officer. Prior to approval of the D&F by the 
procurement officer, concurrence must be obtained from the Director of 
Administration or equivalent, to ensure that the requiring activity and 
the installation supply and equipment management officer agree to the 
use of the Government facilities by the contractor. D&Fs shall address 
individual types of facilities to be provided to the contractor. 
Reference to specific variations in quantities of items to be provided 
should be included in the D&F if additional requirements are 
anticipated. A separate D&F is required before adding new types of items 
or significant changes in quantity. A separate D&F is also required 
before adding any new work to the contract that requires additional 
Government facilities.
    (b) Format. A sample format follows:

                                (Format)

   National Aeronautics and Space Administration, Washington, DC 20546

                       Determination and Findings

                Decision To Provide Government Facilities

    On the basis of the following findings and determinations, 
Government-owned facilities may be provided to [insert the name of the 
contractor] pursuant to the authority of FAR 45.302-1(a)(4).

                                Findings

    1. The [insert the name of the contracting activity] and the 
contractor (have entered)/(proposed to enter) into Contract No. [insert 
the contract number]. (Include the following information: Type of 
contract, contract value, and a brief description of the scope of work 
performed under the contract.)
    2. (Justify that Government facilities are needed for performance 
under the contract. The justification shall demonstrate either (i) that 
the contract cannot be fulfilled by any other means, or (ii) that it is 
in the public

[[Page 358]]

interest to provide the facilities. It is imperative that the 
justification be fully substantiated by evidence.)
    3. (If the contract effort cannot be fulfilled by any other means, 
indicate why the contractor cannot provide the facilities. For example, 
due to financial constraints, the contractor has certified inability to 
acquire the facilities; or, even though the contractor is willing and 
financially able to acquire these facilities for its own account, the 
contractor has stated that time will not permit making arrangements to 
obtain timely delivery to meet NASA requirements. If timely delivery is 
the problem, state when the contractor will replace the Government 
facilities with contractor-owned facilities. Address leadtime, validate 
the contractor's claims, and state that private financing was sought and 
either not available or not advantageous to the Government. If private 
financing was not advantageous to the Government, provide justification. 
Indicate other alternatives considered and reasons for rejection.)
    4. (Give a general description of the types of facilities to be 
provided and indicate the variation in quantities of items based on 
functional requirements. Explain how these facilities pertain to the 
scope of work to be completed. State that the contract cannot be 
accomplished without the specified facility items being provided. 
Include an estimate of the value of the facilities and a statement that 
no facilities items under $10,000 unit cost will be provided unless the 
contractor is a nonprofit, on-site, or the facilities are only available 
from the Government.)
    5. (Indicate whether the property will be accountable under this 
contract or a separate facilities contract.)

                              Determination

    For the reasons set forth above, it is hereby determined that the 
Government-owned facilities identified herein will be provided to the 
contractor.
_______________________________________________________________________
Procurement Officer

_______________________________________________________________________
Date

                             (End of format)

[57 FR 58725, Dec. 11, 1992]



    Subpart 1845.4--Contractor Use and Rental of Government Property



Sec. 1845.402  Authorizing use of Government production and research property.

    (a) A NASA contracting officer desiring to authorize use of 
Government production and research property under the cognizance of 
another contracting officer shall obtain that contracting officer's 
concurrence. If concurrence is denied, the contracting officer shall 
raise the matter to a level above that of the cognizant contracting 
officer.
    (b) NASA contracting officers having cognizance over NASA production 
and research property may authorize its use on contracts of other 
agencies if such use will not interfere with NASA's primary purpose for 
the property and will not extend beyond the expected expiration or 
completion date of the NASA contract.



Sec. 1845.403  Rental--Use and charges clause.

    The Directors of NASA field installations have been designated (see 
NMI 5101.24, Delegation of Authority--To Take Actions in Procurement, 
Grants, Cooperative Agreements, and Related Matters (Various Officials)) 
to make the determinations required by FAR 45.403(a) on modified rental 
rates.



Sec. 1845.405  Contracts with foreign governments or international organizations.

    (a) It is NASA's policy to recover a fair share of the cost of 
Government production and research property if such property is used in 
performing services or manufacturing articles for foreign countries or 
for international organizations.
    (b) The prior written approval of the Associate Administrator for 
Procurement (Code H) is required for the use of Government production 
and research property on work for foreign countries or for international 
organizations. Before requesting approval, the contracting officer shall 
obtain the concurrence of the Director, Logistics Management Office 
(Code JLG), the General Counsel (Code G), and the Director, 
International Relations Division (Code IR).
    (c) Contracting officers shall forward requests for approval to the 
Associate Administrator for Procurement (Code HK), along with a summary 
of the circumstances involved, including at least--
    (1) The name of the requesting contractor;

[[Page 359]]

    (2) The number of the contract under which the equipment is 
controlled;
    (3) A description of the equipment;
    (4) The name of the foreign contractor and the relationship of the 
foreign contractor to its government or to any international 
organization;
    (5) A description of the articles to be manufactured or services to 
be performed;
    (6) A statement that the intended use will not interfere with the 
current or foreseeable requirements of the United States or require use 
of the equipment beyond the expected expiration or completion date of 
the NASA contract;
    (7) A statement that the foreign government's placement of the 
contract directly with the contractor and the use of Government 
production and research property is consistent with the best interests 
of the United States;
    (8) A statement that such use is legally authorized; and
    (9) Any evidence of endorsement by another agency of the U.S. 
Government based on national security or foreign policy of the United 
States.
    (d) Use, if approved, shall be subject to rent in accordance with 
FAR 45.403.

[54 FR 28308, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 58 
FR 51141, Sept. 30, 1993; 60 FR 16063, Mar. 29, 1995]



Sec. 1845.406  Use of Government production and research property on independent research and development programs.

    Contractors generally will not be authorized to use Government 
property for independent research and development on a rent-free basis 
except in unusual circumstances when it has been determined by the 
contracting officer that--
    (a) Such use is clearly in the best interests of the Government (for 
example, the project can reasonably be expected to be of value in 
specific Government programs); and
    (b) The policy in FAR 45.201 is adhered to in that no competitive 
advantage will accrue to the contractor through such use.



Sec. 1845.407  Non-Government use of equipment.

    Consistent with the guidelines in FAR 45.407, the following 
procedures apply to the non-Government use of equipment:
    (a) Before authorizing non-Government use exceeding 25 percent, the 
contracting officer shall obtain the approval of the Associate 
Administrator for Procurement (Code HK). In addition, non-Government use 
of machine tools and secondary metal-forming and -cutting machines 
(Federal Supply Classes 3405, 3408, 3410, 3411-3419, and 3441-3449) 
exceeding 25 percent requires the concurrence of the Director, Logistics 
Management Office (Code JLG). Requests for the approval of the Associate 
Administrator for Procurement (Code HK) shall be submitted at least 6 
weeks in advance of the projected use and shall include--
    (1) The number of active equipment items involved and their total 
acquisition cost; and
    (2) An itemized listing of active equipment having an acquisition 
cost of $25,000 or more, showing for each item the nomenclature, year of 
manufacture, and acquisition cost.
    (b) The percentage of Government and non-Government use shall be 
computed on the basis of time available for use. For this purpose, the 
contractor's normal work schedule, as represented by scheduled 
production shift hours, shall be used. All active equipment having a 
unit acquisition cost of less than $25,000 located at any single plant 
may be averaged over a quarterly period. Equipment having a unit 
acquisition cost of $25,000 or more shall be considered on an item-by-
item basis.
    (c) Approval for non-Government use shall be for a period not 
exceeding 1 year. Approval for non-Government use in excess of 25 
percent shall not be for less than 3 months.

[54 FR 28308, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 58 
FR 51141, Sept. 30, 1993; 60 FR 16063, Mar. 29, 1995; 61 FR 47084, Sept. 
6, 1996]



 Subpart 1845.5--Management of Government Property in the Possession of 
                               Contractors

    Source: 54 FR 28308, July 5, 1989, unless otherwise noted.

[[Page 360]]



Sec. 1845.501  Definitions.

    Centrally reportable equipment (CRE) means plant equipment, special 
test equipment (including components), special tooling, and non-flight 
agency-peculiar property (including ground support equipment):
    (a) Generally commercially available and used as a separate item or 
component of a system,
    (b) Having an acquisition cost of $1,000 or more, and
    (c) Identifiable by a manufacturer and model number.
    Agency-peculiar property means personal property unique to NASA 
aeronautical and space programs and not otherwise included in the 
categories of property in FAR 45.501. It includes such items as 
aircraft, space vehicles, engines, similar components, and related 
support equipment.

[54 FR 28308, July 5, 1989, as amended at 61 FR 47084, Sept. 6, 1996]
1845.502  Contractor responsibility.



Sec. 1845.502-1  Receipts for Government property.

    Receipts for Government property shall comply with the instructions 
for preparing NASA Form 1018, NASA Property in the Custody of 
Contractors (see 1845.7101).

[54 FR 28308, July 5, 1989, as amended at 61 FR 47084, Sept. 6, 1996]



Sec. 1845.502-70  Government-furnished property.

    All initial Government-furnished property must be described in the 
contract Schedule or specifications, regardless of property category. 
Any additional Government-furnished property must be described in a 
bilateral modification to the contract, with the property categorized 
and priced. Furthermore, to obtain Government-furnished facilities, the 
contractor must submit the written statement prescribed by FAR 45.302-
1(a)(4). In the event a formal facilities application is also required 
by the contracting officer, its justification statement on financing 
will satisfy this requirement.



Sec. 1845.502-71  Contractor-acquired property.

    All contractor-acquired property must be authorized by the contract 
and is subject to a determination by the contracting officer that it is 
allocable to the contract and reasonably necessary. The acquisition (and 
fabrication) of Government property is further subject to the following 
conditions, depending on category of property:
    (a) Facilities. (1) Prior contracting officer approval, if the 
facilities are not already described in a contract Schedule as 
contractor-acquired.
    (2) Submission of DD Form 1419, DOD Industrial Plant Requisition, or 
equivalent format, and return of Certificate of Nonavailability if the 
facilities qualify as centrally reportable equipment (CRE).
    (3) Submission of the written statement prescribed by FAR 45.302-
1(a)(4).
    (b) Special test equipment. (1) Contracting officer approval 30 days 
in advance if the equipment is not identified in the invitation for bids 
(in sealed bidding) or contract (in negotiated procurements).
    (2) Submission of DD Form 1419, or equivalent format, and return of 
Certificate of Nonavailability if the equipment (or any component) 
qualifies as CRE.
    (c) Special tooling. (1) If the contract contains a Subcontracts 
clause, advance notification to the contracting officer and contracting 
officer consent if required by that clause.
    (2) If the contract is a fixed-price contract, submission of the 
list to the contracting officer within 60 days after delivery of the 
first production end items (or later as prescribed by the contracting 
officer), unless the tooling is already identified in the solicitation.
    (3) Submission of DD Form 1419 or equivalent format and return of 
Certificate of Nonavailability if the tooling (or any component) 
qualifies as CRE.
    (d) Material. If the contract contains a Subcontracts clause, 
advance notification to the contracting officer and contracting officer 
consent if required by that clause.
    (e) Agency-peculiar property. (1) If the contract contains a 
Subcontracts

[[Page 361]]

clause, advance notification to the contracting officer and contracting 
officer consent if required by that clause.
    (2) Submission of DD Form 1419, or equivalent format, and return of 
Certificate of Nonavailability if the property (or any component) 
qualifies as CRE.

[54 FR 28308, July 5, 1989, as amended at 61 FR 47084, Sept. 6, 1996]
1845.505  Records and reports of Government property.



Sec. 1845.505-2  Records of pricing information.

    If DD Form 250's are used by a NASA installation as invoices or DD 
250's or other shipping/delivery documents are used for property 
receiving purposes, unit prices must be shown for each item of 
Government property included on the forms.



Sec. 1845.505-14  Reports of Government property.

    When required by the contract, the contractor shall submit a report 
of NASA Property in the Custody of Contractors, NASA Form 1018, in 
accordance with the instructions on the form, in subpart 1845.71, and 
the contract clause at 1852.245-73. Contractor property control systems 
shall distinguish between Government furnished and contractor acquired 
property classification shown in FAR 45.505-14(a) (1) through (5).

[61 FR 47084, Sept. 6, 1996]



Sec. 1845.505-670  Reporting centrally reportable equipment (CRE).

    (a) NASA-furnished or contractor-acquired CRE as defined in 1845.501 
shall be reported to the NASA Equipment Management System (NEMS). The 
contractor shall initially report all unreported items in its possession 
and subsequently shall report items to NEMS:
    (1) At the time of receipt and acceptance of accountability,
    (2) When major changes occur in the data initially submitted to 
NASA, and
    (3) When the equipment is no longer required for or actively being 
used in pursuit of NASA programs or projects.

Reporting shall be accomplished by completing section I of DD Form 1342, 
DOD Property Record (see 1845.7102), or by other means acceptable to the 
contracting officer, provided DD Form 1342-equivalent data elements are 
furnished. The data furnished when the equipment is reported pursuant to 
paragraph (a)(3) of this section shall include the equipment's current 
condition code. Reportable data shall be forwarded through the 
contracting officer of the cognizant NASA installation within 15 working 
days after the event that created the need for their preparation and 
shall be marked ``FOR NEMS''.
    (b) The forms prepared for components shall be clearly marked 
``COMPONENT''.
    (c) Each year, the industrial property officer shall provide the 
contractor a list of NEMS data bank records as of June 30th for that 
contractor. The contractor shall verify the list or provide the 
necessary corrections.



Sec. 1845.508  Physical inventories.

    NASA contractors shall reconcile inventories described in FAR 45.508 
with the official property records and submit reports to the property 
administrator within 30 days after inventory completion. The contractor 
shall investigate all losses of property and discoveries of unrecorded 
property to determine the:
    (a) Causes of the discrepancy and
    (b) Actions needed to prevent its recurrence.



 Subpart 1845.6--Reporting, Redistribution, and Disposal of Contractor 
                                Inventory



Sec. 1845.604  Restrictions on purchase or retention of contractor inventory.

    (a) No contractor may sell contractor inventory to persons known by 
it to be NASA or DOD personnel who have been engaged in administering or 
terminating NASA contracts.
    (b)(1) The contractor's or subcontractor's authority to approve 
sale, purchase, or retention at less than cost by a subcontractor, and 
the subcontractor's authority to sell, purchase, or retain at less than 
cost contractor inventory with the approval of the contractor or next 
higher-tier subcontractor does not include authority to approve--

[[Page 362]]

    (i) A sale by a subcontractor to contractor or the next higher-tier 
subcontractor or to an affiliate of the contractor or of either 
subcontractor; or
    (ii) A sale, purchase, or retention at less than cost by a 
subcontractor affiliated with the contractor or next higher-tier 
subcontractor.
    (2) Each excluded sale, purchase, or retention requires the written 
approval of the plant clearance officer.
1845.606  Inventory schedules.



Sec. 1845.606-1  Submission.

    See 1845.505-6 for special instructions on intra-agency screening of 
centrally reportable equipment (CRE).
1845.607  Scrap.



Sec. 1845.607-70  Contractor's approved scrap procedure.

    (a) When a contractor has an approved scrap procedure, certain 
property may be routinely disposed of in accordance with that procedure 
and not processed under this subpart.
    (b) A plant clearance case shall not be established for property 
disposed of through the contractor's approved scrap procedure.
    (c) The plant clearance officer shall review the contractor's scrap 
and salvage procedure, particularly regarding sales, before its approval 
by the property administrator. The plant clearance officer shall ensure 
that the procedure contains adequate requirements for inspecting and 
examining items to be disposed as scrap. When the contractor's procedure 
does not require physical segregation of Government-owned scrap from 
contractor-owned scrap and separate disposal, care shall be exercised to 
assure that a contract change that generates a large quantity of 
property does not result in an inequitable return to the Government. In 
such a case, the property administrator shall make a determination as to 
whether separate disposition of Government scrap would be appropriate.
    (d) Scrap, other than that disposed of through the contractor's 
approved scrap procedure, shall be reported on appropriate inventory 
schedules for disposition in accordance with the provisions of FAR part 
45 and this NASA FAR Supplement.
    (e) Silver, gold, platinum, palladium, rhodium, iridium, osmium, and 
ruthenium; scrap bearing such metals; and items containing recoverable 
quantities of them shall be reported to the Defense Reutilization and 
Marketing Service, DRMS-R, Federal Center, Battle Creek, MI 49017-3092, 
for instructions regarding disposition.
1845.608  Screening of contractor inventory.



Sec. 1845.608-1  General.

    NEMS Coordinators are the focal points at NASA installations for 
intra-agency screening of centrally reportable equipment (see 1845.505-
670). Property Disposal Officers (PDO's) are the focal points at NASA 
installations for intra-agency screening of all other contractor 
inventory. NEMS Coordinators/PDO's shall acknowledge receipt of 
inventory schedules within 30 days and simultaneously provide the plant 
clearance officer a NASA screening completion/release date. Screening 
shall be accomplished in accordance with NASA Handbooks 4200.1 and 
4300.1.



Sec. 1845.608-6  Waiver of screening requirements.

    The Director, Logistics Management Office (Code JLG), has been 
designated to authorize exceptions to screening requirements.

[54 FR 28308, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 58 
FR 51141, Sept. 30, 1993; 60 FR 16063, Mar. 29, 1995]
1845.610  Sale of surplus contractor inventory.



Sec. 1845.610-2  Exemptions from sale by GSA.

    Letters seeking exemptions from GSA-conducted sales shall be 
directed to the Director, Logistics Management Office (Code JLG).

[54 FR 28308, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 60 
FR 16063, Mar. 29, 1995]



Sec. 1845.610-3  Proceeds of sale.

    When payments are due the contractor under the contract, and unless 
the contract provides otherwise, the Government Property clause requires 
that

[[Page 363]]

the proceeds of any sale, purchase, or retention be:
    (a) Credited to the Government as part of the settlement agreement,
    (b) Otherwise credited to the price or cost of the work covered by 
the contract, or
    (c) Applied in the manner directed by the contracting officer.

The plant clearance officer shall maintain an open suspense record until 
he or she has verified that credit has been applied, unless another 
Government representative has specifically assumed this responsibility.



Sec. 1845.610-4  Contractor inventory in foreign countries.

    Foreign disposals shall be accomplished in accordance with NASA 
Handbook 4300.1.



Sec. 1845.613  Property disposal determinations.

    Determinations to abandon or destroy NASA contractor inventory shall 
be referred to the installation PDO for subsequent review by the 
Property Disposal Review Board under NASA Handbook 4300.1.



Sec. 1845.615  Accounting for contractor inventory.

    In addition to the distribution requirements for Standard Form 1424, 
Inventory Disposal Report, a copy of the form shall be provided to the 
NASA installation Industrial Property Officer or PDO.



            Subpart 1845.70--NASA Equipment Management System



Sec. 1845.7001  Policy.

    In accordance with the policies in FAR part 8, new equipment shall 
not be designed, developed, or procured unless it is determined that the 
requirement cannot be satisfied with items already available. 
Accordingly, before acquisition by an installation or the issuance of an 
authorization to a contractor to acquire new centrally reportable 
equipment (see 1845.501), the NASA Equipment Management System (NEMS) 
shall be screened and a certificate of non-availability issued by the 
cognizant installation NEMS Reutilization Coordinator, attesting to the 
non-availability of existing Government-owned equipment to satisfy the 
requirement.



Sec. 1845.7002  Application.

    The NEMS requirements apply to all NASA acquisitions under which 
equipment reportable to NEMS is acquired either by NASA or by a NASA 
contractor for use in the performance of NASA work.



Sec. 1845.7003  General.

    NEMS is an agencywide accountability and control system that 
includes basic information for reutilization of equipment valued at $500 
or more held by NASA installations or $1,000 or more held by NASA 
contractors. General-purpose or standard items of commercial manufacture 
are registered in NEMS.



Sec. 1845.7004  Interface with NEMS coordinators and technical project office.

    NASA contracting officers with contracts subject to NEMS shall 
maintain close interface with the installation NEMS Reutilization 
Coordinator and the technical project office in:
    (a) The conduct of contractor reporting to the NEMS,
    (b) The screening of NEMS records before authorizing contractors to 
acquire equipment,
    (c) The reporting and processing of equipment no longer required for 
NASA programs or projects, and
    (d) All other matters pertaining to compliance with the property 
provisions of NASA contracts.



Sec. 1845.7005  Retention of NEMS equipment.

    The contracting officer may authorize retention of NEMS equipment, 
provided the contractor requests approval in writing concurrently with 
reporting to NEMS under the provisions of 1845.505-670 and provided the 
equipment is being:
    (a) Held for approved future NASA programs and projects identified 
to a specific requirement; or
    (b) Used on other Government work as approved by the contracting 
officer.

Approval for the use of equipment on other Government work shall not 
exceed 6 months beyond its use on NASA

[[Page 364]]

work unless loan of the equipment under an interagency agreement has 
been arranged or action has been initiated for transfer of the equipment 
to the using agency and appropriate time is allowed for completing the 
transfer.



                   Subpart 1845.71--Forms Preparation



Sec. 1845.7101  Instructions for preparing NASA Form 1018.

    This section provides guidance in the preparation of NASA Form 1018 
(see subpart 1853.3), which is required of all contractors that have 
been furnished, or have acquired, Government-owned property under the 
terms of their contract. This report provides information for NASA 
financial statements and property management; accuracy and timeliness of 
the report are, therefore, very important. Contractors shall retain 
documents which support the data reported on NF 1018 in accordance with 
FAR subpart 4.7, Contractor Records Retention. Classifications of 
property, related costs to be reported, and reporting requirements are 
set forth in this subpart.

[54 FR 28308, July 5, 1989, as amended at 61 FR 47084, Sept. 6, 1996]



Sec. 1845.7101-1  Property classification.

    (a) Contractors shall report costs in the classifications required 
on NF 1018, as described in this section. For Land, Buildings, Other 
Structures and Facilities, and Leasehold Improvements, contractors shall 
report the amount for all items with a unit cost of $5,000 or more and 
useful life of 2 years or more. For Plant Equipment, Special Tooling, 
Special Test Equipment and Agency-Peculiar Property, Contractors shall 
separately report--
    (1) The amount for all items with a unit cost of $5,000 or more and 
a useful life of 2 years or more, and
    (2) All times under $5,000, regardless of useful life.
    (b) Contractors shall report the amount for all Materials, 
regardless of unit cost.
    (c) Land. Includes costs of land, improvements to land, and 
associated costs incidental to acquiring and preparing land for use, for 
example; appraisal fees, clearing costs, drainage, grading, landscaping, 
plats and surveys, removal and relocation of the property of others as 
part of a land purchase, removal or destruction of structures or 
facilities purchased but not used, and legal expenses.
    (d) Buildings. Includes costs of buildings, improvements to 
buildings, and fixed equipment required for the operation of a building 
which is permanently attached to and a part of the building and cannot 
be removed without cutting into the walls, ceilings, or floors. Examples 
of fixed equipment required for the functioning of a building include 
plumbing, heating and lighting equipment, elevators, central air 
conditioning systems, and built-in safes and vaults.
    (e) Other structures and facilities. Includes costs of acquisitions 
and improvements of structures and facilities other than buildings; for 
example, airfield pavements, harbor and port facilities, power 
production facilities and distribution systems, reclamation and 
irrigation facilities, flood control and navigation aids, utility 
systems (heating, sewage, water and electrical) when they serve several 
buildings or structures, communication systems, traffic aids, roads and 
bridges, railroads, monuments and memorials, and nonstructural 
improvements, such as sidewalks, parking areas, and fences.
    (f) Leasehold improvements. Includes costs of improvements to leased 
buildings, structures, and facilities, as well as easements and right-
of-way, where NASA is the lessee or the cost is charged to a NASA 
contract.
    (g) Equipment. Includes costs of commercially available personal 
property for use in manufacturing supplies, performing services, or any 
general or administrative purpose; for example, machine tools, 
furniture, vehicles, computers, accessory or auxiliary items, and test 
equipment.
    (h) Construction in progress. Includes costs for work in process for 
the construction of Buildings, Other Structures and Facilities, and 
Leasehold Improvements to which NASA has title.
    (i) Special tooling. Includes costs of equipment and manufacturing 
aids (and components and replacements of

[[Page 365]]

these items) that are of such a specialized nature that, without 
substantial modification or alteration, their use is limited to the 
development or production of particular supplies or parts, or to the 
performance of particular services. Examples include jigs, dies, 
fixtures, molds, patterns, taps and gauges.
    (j) Special test equipment. Includes costs of equipment used to 
accomplish special purpose testing in performing a contract, and items 
or assemblies of equipment.
    (k) Material. Includes costs of NASA owned property held in 
inventory that may become a part of an end item or be expended in 
performing a contract. Examples include raw and processed material, 
parts, assemblies, small tools and supplies. Does not include material 
that is part of work in process.
    (l) Agency-peculiar property. Includes actual or estimated costs of 
completed items, systems and subsystems, spare parts and components 
unique to NASA aeronautical and space programs. Examples include 
aircraft, engines, satellites, instruments, rockets, prototypes and 
mock-ups. The amount of property, title to which vests in the Government 
as a result of progress payments to fixed price subcontractors, shall be 
included to reflect the pro rata cost of undelivered agency-peculiar 
property.
    (m) Contract work-in-process. Includes the costs of all work-in-
process and excludes the costs of completed items reported in other 
categories.

[61 FR 47084, Sept. 6, 1996]



Sec. 1845.7101-2   Transfers of property.

    The procedures in this section apply to all types of transfers. Only 
Government installations may furnish Government property to a 
contractor. Therefore, procurement, property, and financial 
organizations at NASA Centers must effect all transfers of 
accountability, although physical shipment and receipt of property may 
be made directly by contractors. Such transfers include shipments 
between contractors of the same installation, contractors of different 
installations, a contractor of one installation to another installation, 
an installation to a contractor of another installation, and a 
contractor to another Government agency or its contractor. So that NASA 
may properly control and account for transfers, they shall be adequately 
documented. The procedures described in this section shall be followed 
in all cases, to provide an administrative and audit trail, even if 
property is physically shipped directly from one contractor to another. 
Property shipped between September 1 and September 30, inclusively, 
shall be reported by the shipping contractor, regardless of the method 
of shipment, unless written evidence of receipt at destination has been 
received. Property provided under fixed price repair contracts remains 
accountable to the cognizant NASA Center and is not reportable on NF 
1018; property provided for repair under a cost-reimbursement contract, 
however, is accountable to the contractor and reportable on NF 1018.
    (a) Approval and notification. The contractor must obtain the 
approval of the contracting officer or designee for transfers of 
property before shipment. Each shipping document must contain contract 
numbers, shipping references, property classifications in which the 
items are recorded, unit prices, and any other appropriate identifying 
or descriptive data. Unit prices shall be obtained from records 
maintained pursuant to FAR part 45 and part 1845 of this chapter. 
Shipping contractors shall furnish a copy of the shipping document to 
the cognizant property administrator. Shipping and receiving contractors 
shall promptly notify the financial management office of the NASA Center 
responsible for their respective contracts when accountability for 
Government property is transferred to, or received from, other 
contracts, contractors, NASA Centers or Government agencies. Copies of 
shipping or receiving documents will suffice as notification in most 
instances.
    (b) Reclassification. If property is transferred to another contract 
or contractor, the receiving contractor shall record the property in the 
same property classification and amount appearing on the shipping 
document. For example, when a contractor receives an item from another 
contractor that is identified on the shipping document as

[[Page 366]]

equipment, but that the recipient intends to incorporate into special 
test equipment, the recipient shall first record the item in the 
equipment account and subsequently reclassify it as special test 
equipment. Reclassification of equipment, special tooling, special test 
equipment, or agency-peculiar property requires prior approval of the 
contracting officer or a designee.
    (c) Incomplete documentation. If contractors receive transfer 
documents having insufficient detail to properly record the transfer 
(e.g., omission of property classification, unit prices, etc.) they 
shall request the omitted data directly from the shipping contractor or 
through the property administrator as provided in FAR 45.505-2.

[20 FR 47085, Sept. 6, 1996]



Sec. 1845.7101-3  Computing costs of fabricated special tooling, special test equipment, agency-peculiar property and contract work in process.

    (a) Costs shall be computed in accordance with accepted accounting 
principles, be reasonably accurate, and be the product of any one or a 
combination of, the following:
    (1) Abstracts of cost data from contractor property or financial 
records.
    (2) Computations based on engineering and financial data.
    (3) Estimates based on NASA Form 533 reports.
    (4) Formula procedures (e.g., using a 50 percent factor for work in 
process items, on the basis of updated Standard Form 1411 estimates or 
the contractor's approved estimating and pricing system).
    (5) Other approved methods.
    (b) Contractors shall report costs using records that are part of 
the prescribed property or financial control system as provided in this 
section. Fabrication costs shall be based on approved systems or 
procedures and shall include all direct and indirect costs of 
fabricating Government property.
    (c) The contractor shall redetermine the costs of items returned for 
modification or rehabilitation.
    (d) The computation of work in process shall include the costs of 
associated systems, subsystems, and spare parts and components furnished 
or acquired and charged to work in process pending incorporation into a 
finished item. These types of items make up what is sometimes called 
production inventory and include programmed extra units to cover 
replacement during the fabrication process (production spares). Also 
included are deliverable items on which the contractor or a 
subcontractor has begun work, and materials that have been issued from 
inventory.

[61 FR 47085, Sept. 6, 1996]



Sec. 1845.7101-4  Type of deletion.

    Contractors shall report the types of deletions from contract 
property records as described in this section.
    (a) Adjusted. Changes in the deletion amounts, if any, that result 
from mathematical errors in the previous report.
    (b) Lost, damaged or destroyed. Deletion amounts as a result of 
relief from responsibility under FAR 45.503 granted during the reporting 
period.
    (c) Transferred in place. Deletion amounts that result from a 
transfer of property to a follow-on contract with the same contractor.
    (d) Transferred to center accountability. Deletion amounts that 
result from transfer of accountability to the NASA Center responsible 
for the contract, whether or not the items are physically moved.
    (e) Transferred to another NASA Center. Deletion amounts caused by 
transfer of accountability to NASA Center other than the one responsible 
for the contract, whether or not the items are physically moved.
    (f) Transferred to another Government agency. Deletion amounts that 
result from transfer of property to another Government agency.
    (g) Purchased at cost/returned for credit. Deletion amounts due to 
contractor purchase or retention of contractor acquired property as 
provided in FAR 45.605-1; or to contractor returns to suppliers under 
FAR 45.605-2.
    (h) Disposal through plant clearance process. Deletions other than 
transfers; i.e., donations to eligible recipients, sold at less than 
cost, or abandoned/directed destruction.

[61 FR 47085, Sept. 6, 1996]

[[Page 367]]



Sec. 1845.7101-5  Contractor's privileged financial and business information.

    If a transfer of property between contractors will involve 
disclosing costs of a proprietary nature, the contractor shall furnish 
unit prices only on those copies of the shipping documents that are sent 
to the shipping and receiving NASA installations. Transfer of the 
property to the receiving contractor shall be on a no-cost basis.

[61 FR 47086, Sept. 6, 1996]



Sec. 1845.7101-6  Space hardware reporting requirements.

    (a) The contracting officer may require reporting on space hardware 
for cost reimbursement and incentive contracts and first-tier 
subcontracts if the estimated cost and fee of the contract exceeds 
$500,000 and any one or a combination of the individual reporting 
categories (i.e., completed space hardware, components and spare parts, 
and work in process) exceeds $75,000.
    (b) The contracting officer shall specify the items of space 
hardware for reporting before June 1 of each year on the basis of the 
Annual List of Selected Items of Space Hardware, issued by the Director 
of Financial Management, NASA Headquarters (Code BF).
    (c) Reporting shall become effective with the next report period 
beginning July 1, or as otherwise stipulated in the contract, and shall 
continue until all specified items of space hardware are delivered, the 
contract is terminated, or the item is removed from the List.
    (d) The reports shall contain--
    (1) The reportable items on hand, consisting of the cost and 
quantity of completed space hardware and the cost of related independent 
completed systems and subsystems;
    (2) The total amount for completed spare parts and components 
relating to paragraph (d)(1) of this section; and
    (3) The total amount for work in process of fabrication relating to 
the preceding items.
    (e) Costs reported on Schedule II shall not be considered in 
reimbursing the contractor for work performed or for termination 
proceedings. Costs shall be computed in accordance with accepted 
accounting principles, be reasonably accurate, and be the product of any 
one, or a combination, of the following:
    (1) Abstracts of cost data from the contractor's property or 
financial records.
    (2) Computations based on engineering and financial data.
    (3) Estimates based on NASA Form 533 reports.
    (4) Formula procedures (e.g., using a 50-percent factor for work-in-
process items, on the basis of updated Standard Form (SF) 1411 estimates 
or the contractor's approved estimating and pricing system).
    (5) Other approved methods.
    (f) If the same item is being fabricated for more than one project, 
contractors shall report by contract item the completed space hardware, 
related independent systems and subsystems, spare parts, and work in 
process.
    (g) When a contract provides for two or more different and completed 
space property items, some of which are not included in the List, 
contractors shall report the actual cost of those items, if possible, or 
use a reasonable basis permitted by the contractor's records or a basis 
provided in paragraph (e) of this section.
    (h) Contractors shall report the cost of items of space hardware, 
systems, and subsystems using their records that are part of the 
prescribed property or financial control system as provided in 
1845.7101-3; however, fee, tooling, and other nonrecurring costs shall 
be excluded. Fabrication costs shall be based on the contractor's 
approved estimating and pricing or property control system and should 
include--
    (1) Direct labor;
    (2) Direct materials and purchased parts (costs of purchased items 
shall be consistent with the contractor's approved pricing methods);
    (3) Other direct costs (e.g., computer costs, travel, and 
transportation);
    (4) Overhead (a percentage factor or rate applied to the direct 
costs or other applicable base); and
    (5) Costs of Government-furnished property applied (data available 
from the shipping document--e.g., DD Form 250, 1149, or similar form--or 
estimated if necessary).

[[Page 368]]



Sec. 1845.7101-10  Contractor's privileged financial and business information.

    If a transfer of property between contractors will involve 
disclosing costs of a proprietary nature, the contractor shall furnish 
unit prices only on those copies of the shipping documents that are sent 
to the shipping and receiving NASA installations. Transfer of the 
property to the receiving contractor shall be on a no-cost basis.



Sec. 1845.7102  Instructions for preparing DD Form 1342.

    The instructions in this section shall be used in the preparation of 
DD Form 1342, DOD Property Record, to report newly acquired equipment, 
items not previously reported, major changes in the data initially 
submitted, or equipment no longer required for or actively being used in 
the pursuit of NASA programs or projects. Use of DD Form 1342 is not 
mandatory if the same information is provided in an alternative format. 
Only one initial report is required. In-use items shall be reported 
initially to the NASA Equipment Management System (NEMS) through the 
contracting officer (see 1845.505-670) by use of this form by checking 
``Active'' and ``Initial'' in Block 1. Identify idle items being 
initially reported by checking ``Idle'' and ``Initial'' in Block 1.

    Block 1. Check appropriate boxes to indicate ``Active'' or ``Idle'' 
report and that the report is an ``Initial'' or ``Changed'' report.
    Block 2. Enter the Julian date of preparation of the form. The first 
character is the last digit of the current calendar year, and the next 
three characters are the Julian date of the year.
    Block 3. Enter the Identification Number/Government Tag Number as 
recorded on the identification plate affixed to the equipment.

                       Section I--Inventory Record

    Block 4. Not applicable.
    Block 5. Enter the first four digits of the National Stock Number, 
if known.
    Block 6. Indicate in dollars (omit any symbols, decimal points, 
commas, etc.) the acquisition cost used for property accounting 
purposes. This acquisition cost is the price of the basic item plus any 
accessories and auxiliary equipment procured and delivered with it. If 
the initial acquisition cost data are not available, use an estimated 
acquisition cost (based on known costs at the time of manufacture of the 
same or similar equipment), price lists for the period involved, or the 
best available price from other sources in NASA or DOD that will achieve 
conformity of prices for like items of equipment.
    Block 7. Not applicable.
    Block 8. Enter the last two digits of the year the item was 
manufactured. If the actual year of manufacture cannot be determined, 
estimate the date and place an ``E'' immediately preceding the entry.
    Blocks 9 through 13. Not applicable.
    Block 14. Enter the name of the manufacturer of the equipment being 
reported. Do not use a distributor's or vendor's name. Enter ``Unknown'' 
when the manufacturer is not known.
    Block 15. This is a five-digit numerical code identifying the 
manufacturer, obtained from Cataloging Handbook H4-1.
    Block 16.
    a. Enter the manufacturer's model, style, or catalog number for the 
equipment being reported. Always use the model number, if available. 
Style number is next in preference. When the manufacturer does not 
assign a model, style, or catalog number, enter ``None''.
    b. When unable to locate a model number, refer to the manufacturer's 
brochure or purchase order. If the model number is obtained from other 
than the equipment, indicate the source in ``Remarks,'' Block 54.
    Block 17. Enter the serial number taken from the equipment. If a 
serial number is not assigned to the item, enter ``None''.
    Blocks 18 through 21. Not applicable.
    Block 22. Enter Certificate of Nonavailability number from Block 41, 
DD Form 1419 or other screening document.
    Block 23. Not applicable.
    Block 24. Not applicable.
    Block 25. Enter the complete contract number under which the 
contractor is accountable for the item. This normally will be a facility 
contract number. Otherwise, enter the procurement contract number.
    Block 26. Enter the complete description of the item.
    Block 27. Not applicable.
    Block 28. Enter the NASA installation or company name, street 
address, city, state, and zip code of the physical location of the 
equipment. If the physical location is a subcontractor's plant, enter 
the name of the prime contractor above the subcontractor's name. Do not 
use the office address if different from the plant address. If no street 
address exists, enter ``No street address''.
    Blocks 28a and 29. Not applicable.

                      Section II--Inspection Record

    Not applicable, except for Block 52, which should be completed when 
reporting (in accordance with 1845.505-670) that an item is no longer 
required for or actively being used in pursuit of NASA programs or 
projects.

[[Page 369]]

                  Section III--Remarks. Not applicable

             Section IV--Disposition Record. Not applicable

              Section V--Validation Record. Not applicable



Sec. 1845.7103  Instructions for preparing DD Form 1419.

    (a) The contractor shall enter the essential information covering 
Sections I and II before submission of DD Form 1419, DOD Industrial 
Plant Equipment Requisition, to the NEMS Coordinator. The NEMS 
Coordinator shall review each submission for completeness and 
authenticity. Incomplete or invalid requests shall be returned for 
correction. The original and two copies of the approved DD Form 1419, or 
equivalent format, may be forwarded to Defense Industrial Plant 
Equipment Center (DIPEC) for screening of inventories. Upon completion 
of the screening process, DIPEC will annotate the results of the 
screening in section IV or V. Certification of nonavailability when 
cited in section V is evidence that screening has been accomplished by 
NASA/DIPEC. DIPEC will return the original and one copy of the request 
to the NEMS Coordinator of the cognizant NASA installation indicated in 
section III.
    (b) When a suitable item is allocated in section IV, inspection of 
the equipment is recommended. Notification of acceptance or rejection of 
the item offered must reach NASA/DIPEC within 30 days after allocation. 
A copy of the DD Form 1419, or equivalent format, will serve as the 
clearance document to inspect the equipment at the storage site. Note 
acceptance or rejection of the item, without inspection or after 
inspection in section VI. If the item is acceptable, execute section 
VII. Cite the NASA appropriation symbol where applicable in section VII. 
In either instance, acceptance or rejection, the NEMS Coordinator shall 
return the original of the DD Form 1419, or equivalent format, to DIPEC 
when items have been offered by DIPEC.
    (c) The NEMS Coordinator shall assign a requisition number to each 
DD Form 1419, or equivalent format request. If DIPEC will be screened, 
the NEMS Coordinator shall code each number assigned for automatic data 
processing by DIPEC. The NEMS Coordinator shall also identify the 
requiring installation and provide a serial number and date of 
submission for subsequent reference. The NEMS Coordinator shall begin 
the requisition number with the appropriate installation FEDSTRIP/
MILSTRIP Activity Address Code.
    (d) Next will be a four-digit entry comprised of the last digit of 
the current calendar year and the Julian date of the year. For instance, 
February 4, 1969, would be written as 9035. The last entry will be a 
four-digit number from 0001 to 9999 to sequentially number requisition 
forms prepared on the same date. For example, the ninth requisition 
prepared on February 1, 1969, would be 9032-0009, preceded by the 
FEDSTRIP/MILSTRIP Activity Address Code. When submitting subsequent DD 
Forms 1419, or equivalent format, related to the item requested, the 
NEMS Coordinator shall use the same requisition number and add the alpha 
code to the end of the requisition number to indicate a second or third 
action on the basic request. Alpha ``A'' would indicate a second 
request, ``B'' a third, etc. In this manner, all actions, 
correspondence, etc., relative to a given request can be identified at 
all levels of processing by the use of the requisition number.
    (e) Detailed directions for completing the DD Form 1419 follow. When 
DIPEC listed equipment is not being requested, the contractor may elect 
to provide the required data in an equivalent format, which complies 
with these directions.

                                Section I

    Item Description. To ensure adequate screening, the item description 
must be complete. For single-purpose equipment or general-purpose 
equipment with special features, requests must contain detailed 
descriptive data as to size and capacities, setting forth special 
operating features or particular operations required to be performed by 
the item.
    Block 1. Not applicable.
    Block 2. Enter the manufacturer's name and Federal Supply Code for 
manufacturer (Cataloging Handbook H4-1) of the item requested.
    Block 2a. Enter the manufacturer's model, style, or catalog number 
assigned to the

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equipment being requisitioned. Always use the model number, if 
available. The style number is the next preference. Enter ``None'' in 
this block if the model, style or catalog number is not known.
    Block 3. Enter the four-digit Federal Supply Class (FSC).
    Block 4. Not applicable.
    Block 5. Self-explanatory.
    Block 6. Place an ``X'' in the applicable block to indicate whether 
you desire to physically inspect the item before acceptance.
    Block 7. Self-explanatory.
    Block 8. Enter the complete description of the item. Continue the 
description in Block 51 if additional space is needed.

                               Section II

    Block 9. Enter the contractor's name, street address, city, state, 
and zip code from which the requisition is being initiated. The address 
should be the one to which inquiries of a technical nature will be 
referred. Specify the name and telephone number of an individual who 
will respond to inquiries concerning the request.
    Blocks 10 and 10a. Enter the contract number or document number and 
the date of the document authorizing acquisition of the items shown in 
Section I. This normally will be a facility contract number. Otherwise 
it should be a purchase order or procurement request number.
    Block 11. Not applicable.
    Block 12. Disregard the ``Military'' block. Show the NASA contract 
number and program for which the item is to be used.
    Block 13. Enter the specific function to be performed by the 
equipment. When applicable, enter the tolerances, capacities, 
specifications, etc., that the equipment must satisfy.
    Block 14. Determine the date the item must be installed to meet 
production requirements. From this date deduct the estimated number of 
days required for installation. Enter the adjusted date in this block.
    Block 15. Enter the date by which NASA must issue a Certificate of 
Nonavailability. Determine the date by subtracting the procurement lead 
time and 30 days administrative lead time from the date shown in Block 
14.
    Block 16. Enter the Defense Priority and Allocations System (DPAS) 
rating assigned to the contract or anticipated purchase order, if 
applicable.
    Block 17. Place an ``X'' in the appropriate box. If for replacement, 
identify the item being replaced and the reason for replacement.
    Block 18. Place an ``X'' in the appropriate box. Show the 
appropriation symbol if the answer is ``yes.''
    Block 19. Not applicable.
    Blocks 20 and 21. In addition to the official's title and signature, 
type the signing official's name, office symbol or name, and telephone 
number plus extension. The company representative who prepares and 
submits the requirement to the cognizant NASA certifying office should 
sign.
    Block 22. Self-explanatory.
    Block 23. The contracting officer of the NASA installation having 
jurisdiction over the contract shall certify the need for the item. 
However, the NEMS Coordinator may certify the need for NASA in-house 
requirements.
    Block 23a. Not applicable.
    Block 23b. Enter the name and address of the installation certifying 
the requirement.
    Block 23c. This block is for signature of the property administrator 
or contracting officer at plant level.
    Block 23d. Self-explanatory.
    Block 23e. This block is for the signature of NASA installation 
official certifying the requirement.
    Block 23f. Self-explanatory.

                               Section III

    This section is for the NEMS Coordinator's certification of the 
requirement to DIPEC, when applicable.
    Blocks 24 through 27. Self-explanatory.

                               Section IV

    To be completed by DIPEC (a copy is used for admittance to storage 
site for inspection of property).

                                Section V

    DIPEC or the NEMS Coordinator shall complete this section if 
equipment is unavailable.

                               Section VI

    Blocks 42 through 45. The requesting official signing section II, 
Block 20, shall complete Section VI and shall list reasons for non-
acceptance in Section VIII, Remarks, or on a separate document attached 
to the DD Form 1419.

                               Section VII

    Block 46. Enter the complete name, street address, city, state, and 
zip code of the contractor or installation to which the item is to be 
shipped. Indicate railhead and truck delivery points when other than the 
address named.
    Blocks 47 and 48. Self-explanatory.
    Blocks 49a and b. Ensure that NASA appropriation symbols are 
included with the work order number.
    Block 49c. Enter the NASA appropriation symbol chargeable for any 
special work ordered (e.g., rebuild, repair, or accessory replacement).
    Block 49d. Enter the NASA installation and office symbol for the 
organization that will

[[Page 371]]

make payment for transportation and packing, crating, and handling.
    Block 50. Self-explanatory.

                              Section VIII

    Block 51. This block can be used to expand or explain entries made 
in Blocks 1 through 50. When requisitioning equipment from excess 
listings, identify the issuing office, list number, date, control 
number, and item number assigned to the equipment.



              Subpart 1845.72--Contract Property Management



Sec. 1845.7201  Definitions.

    Category, as used in this subpart, means a major segment of a 
contractor's property control system (e.g., acquisition, receiving, 
records, storage and movement, consumption, utilization, maintenance, 
physical inventories, subcontractor control, or disposition).
    Characteristic, as used in this subpart, means a segment of a 
functional area subject to analysis or review. Characteristics are 
classified as Class I, subject to statistical sampling, and Class II, 
subject to judgment or observation techniques.
    Lot, as used in this subpart, means an aggregation of documents, 
records, articles, or actions selected for review because of common 
characteristics. For evaluation of the lot, all characteristics for 
which a lot is tested must be common to all units within the lot.
    Property control system, as used in this subpart, identifies a 
contractor's internal management program encompassing the protection of, 
preservation of, accounting for, and control of property from its 
acquisition through disposition.
    Supporting responsibility, as used in this subpart, relates to the 
assignment of a subcontract, or a portion of a prime contract being 
performed at a secondary location of the prime contractor, to a property 
administrator other than the individual assigned to the prime location.



Sec. 1845.7202  General.

    This subpart describes major elements of the NASA Contract Property 
Management Program. It provides guidance to NASA installation personnel 
responsible for NASA contract property (NASA personal property in the 
possession of contractors). It applies to all NASA installation 
personnel charged with this responsibility, including industrial 
property officers and specialists, property administrators, and plant 
clearance officers. It also provides detailed procedures for property 
administration. The NASA Contract Property Management Program includes 
the following three major elements:
    (a) Performance of property administration and plant clearance by 
DOD under delegations from NASA, pursuant to 1842.101.
    (b) Performance of property administration and plant clearance by 
NASA under certain situations, pursuant to 1842.203.
    (c) Maintenance of property administration and plant clearance 
functional oversight, regardless of delegations, pursuant to 1842.175.



Sec. 1845.7203  Delegations of property administration and plant clearance.

    When delegated to DOD, property administration and plant clearance 
are performed in accordance with DOD's regulations and procedures, as 
amended by the NASA Letter of Contract Administration Delegation, 
Special Instructions on Property Administration and Plant Clearance. 
These Special Instructions are developed by NASA Headquarters, Logistics 
Management Office Code JLG, and are available from that office upon 
request. The contracting officer shall issue the Special Instructions 
with delegations whenever Government property will be involved. 
Additional or more tailored property instructions are not proscribed but 
must be coordinated with Code JLG before issuance.

[54 FR 28308, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 58 
FR 51141, Sept. 30, 1993; 60 FR 16063, Mar. 29, 1995]



Sec. 1845.7204  Retention of property administration and plant clearance.

    NASA may occasionally retain the property administration and plant 
clearance function, such as for contract work performed at the 
installation awarding the contract and not

[[Page 372]]

subject to the clause at 1852.245-71, Installation-Provided Government 
Property. In these cases, property administration shall be performed in 
accordance with subparts 1845.2 through 1845.7, and plant clearance 
shall be performed in accordance with FAR subpart 45.6 and subpart 
1845.6. Under the clause at 1852.245-71, property administration and 
plant clearance are neither delegated nor retained; they are simply not 
required because the property is treated as installation rather than 
contract property.



Sec. 1845.7205  Functional oversight of property administration and plant clearance.

    NASA contracting officers retain functional management 
responsibility for their contracts. Utilization of the contract 
administration services of another Government agency in no way relieves 
NASA contracting officers of their ultimate responsibility for the 
proper and effective management of contracts. The functional management 
responsibility for contract property is outlined below. Beyond 
individual contracting officers, each NASA installation has designated 
an industrial property officer to manage and coordinate property matters 
among the various contracting officers, technical officials, contractor 
officials, and delegated property administrators and plant clearance 
officers. Generally, that individual is responsible for the entire 
contract property management function outlined below; the installation 
is responsible for the entire function regardless of how it is organized 
and distributed. The responsibilities are as follows:
    (a) Provide a focal point for all management of contract property, 
including Government property (Government-furnished and contractor-
acquired) provided to universities as well as to industry.
    (b) Provide guidance to contracting and other personnel on the NASA 
property provisions.
    (c) To the extent feasible, review property provisions of 
procurement plans, solicitations, contracts, and modifications for 
potential problems. Propose changes as necessary.
    (d) To the extent feasible, participate in pre-award surveys/post-
award orientations when significant amounts of Government property will 
be involved.
    (e) Ensure that vesting-of-title determinations are made and 
documented pursuant to FAR 35.014(b).
    (f) Maintain effective communications with delegated property 
administrators and plant clearance officers to keep fully informed about 
contractor performance and progress on any property control problems.
    (1) Obtain and review property control system survey summaries for 
all contracts for which property administration has been delegated. 
Advise Headquarters Code JLG of any severe or continuing problems.
    (2) Provide property administrators copies of all pertinent contract 
property documentation.
    (g) Work with the NASA Equipment Management System (NEMS) 
Coordinator and contracting officers to ensure contractor reporting to 
and screening of NEMS.
    (1) Monitor contractors' performance in submitting DD Form 1419's or 
equivalent request format before acquiring centrally reportable 
equipment (CRE) and in submitting DD Form 1342's or equivalent report 
format after receiving CRE.
    (2) Ensure that an annual NEMS verification is performed in 
accordance with 1845.505-670(c) and NHB 4200.1, paragraph 4.406b.
    (h) Review and analyze NASA Form 1018's, Reports of Government-
Owned/Contractor-Held Property.
    (1) Ensure an annual comparison of 1018's with NEMS in accordance 
with NHB 4200.1, paragraph 4.406c, to detect possible over/under 
reporting to NEMS and possible failure to screen NEMS.
    (2) Check new disparities disclosed under paragraph (h)(1) of this 
section, with the appropriate property administrator and document the 
results.
    (i) Negotiate, or ensure the negotiation of, facilities contracts 
when required by FAR 45.302 and 1845.302. Advise Headquarters Code JLG 
annually of new and completed facilities contracts.
    (j) Review property administrators' approvals of relief of 
responsibility for lost, damaged, and destroyed property

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and question any excessive or repetitive approvals.
    (k) When appropriate, make recommendations to source and performance 
evaluation boards regarding property management and award fee criteria 
and evaluations regarding property management.
    (l) Monitor plant clearance status to preclude delays in contract 
closeout.
    (m) Maintain contract property files for all transactions and 
correspondence associated with each contract. Upon receipt of Standard 
Form 1424, Inventory Disposal Report, and DD Form 1593, Contract 
Administration Completion Record, or equivalents, merge all property 
records for the contract and forward for inclusion with the official 
completed file.
    (n) Perform on-site property administration and plant clearance when 
they are not delegated to DOD and the property is not subject to the 
clause at 1852.245-71. (The remainder of this subpart provides detailed 
guidance on such property administration).

[54 FR 28308, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 58 
FR 51141, Sept. 30, 1993; 60 FR 16063, Mar. 29, 1995]
1845.7206  Responsibilities of property administrators and plant 
clearance officers.



Sec. 1845.7206-1  Property administrators.

    (a) When property administration is not delegated to DOD, the 
property administrator shall evaluate the contractor's management and 
control of Government property and ascertain whether the contractor is 
effectively complying with the contract provisions. The property 
administrator's responsibilities include--
    (1) Developing and applying a system survey program for each 
contractor under the property administrator's cognizance;
    (2) Evaluating the contractor's property control system and 
approving or recommending disapproval;
    (3) Advising the contracting officer of any (i) contractor 
noncompliance with approved procedures and (ii) other significant 
problems the property administrator cannot resolve, and recommending 
appropriate action, which may include disapproval of the contractor's 
property control system;
    (4) Resolving property administration matters as necessary with the 
contractor's management, personnel from Government procurement and 
logistics activities, and representatives of the NASA Office of the 
Inspector General, of the Defense Contract Audit Agency (DCAA), and of 
other Government agencies; and
    (5) Recognizing the functions of other Government personnel having 
cognizance of Government property and obtaining their assistance when 
required. (These functions include, but are not limited to, contract 
audit, quality assurance, engineering, pricing, and other technical 
areas. Assistance and advice on matters involving analyses of the 
contractor's books and accounting records and on any other audit matters 
deemed appropriate shall be obtained from the cognizant auditor.)
    (b) The participation of property administrators (or other 
Government industrial property personnel) in pre-award surveys/post-
award orientations is required whenever significant amounts of 
Government property will be involved, in order to reveal and resolve 
property management problems early in the procurement cycle.



Sec. 1845.7206-2  Plant clearance officers.

    When plant clearance is not delegated to DOD, NASA plant clearance 
officers shall be responsible for--
    (a) Providing the contractor with instructions and advice regarding 
the proper preparation of inventory schedules;
    (b) Accepting or rejecting inventory schedules and DD Form 1342;
    (c) Conducting or arranging for inventory verification;
    (d) Initiating prescribed screening and effecting resulting actions;
    (e) Final plant clearance of contractor inventory;
    (f) Pre-inventory scrap determinations, as appropriate;
    (g) Evaluating the adequacy of the contractor's procedures for 
property disposal;
    (h) Determining the method of disposal;

[[Page 374]]

    (i) Surveillance of any contractor-conducted sales;
    (j) Accounting for all contractor inventory reported by the 
contractor;
    (k) Advising and assisting, as appropriate, the contractor, the 
supply and equipment management officer, other Federal agencies, and 
higher headquarters in all actions relating to the proper and timely 
disposal of contractor inventory;
    (l) Approving the method of sale, evaluating bids, and approving 
sale prices for any contractor-conducted sales;
    (m) Recommending the reasonableness of selling expenses related to 
any contractor-conducted sales;
    (n) Securing antitrust clearance, as required; and
    (o) Advising the contracting officer on all property disposal 
matters.
1845.7207  Initiation of property administration.



Sec. 1845.7207-1  Control of assignments.

    (a) The procurement officer or a designee shall establish and 
maintain a Contract Assignment Control Register for each contractor, 
showing the--
    (1) Contractor's name and address;
    (2) Contract number;
    (3) Type of contract;
    (4) Date of assignment of the property administrator and his or her 
name; and
    (5) Date of completion or termination of the contract, or transfer 
of the property administrator.
    (b) Property reported received at a contractor's plant without 
contractual coverage shall be recorded in a suspense file, pending 
investigation and resolution by the property administrator.



Sec. 1845.7207-2  Analysis of contract and establishment of contract property control data files.

    (a) The property administrator shall analyze each contract providing 
for Government property to estimate the property administration effort 
to be applied. The analysis shall be sufficient to establish the 
management controls necessary for ensuring compliance with contract 
requirements and development of a suitable system survey program.
    (b) The property administrator shall establish Property Summary Data 
Record containing--
    (1) The contractor's name and address, and the contract number;
    (2) The type of contract, modifications (including change orders), 
and special or nonstandard clauses pertaining to Government property;
    (3) The date of final review and date of execution and transmittal 
of the DD Form 1593 or equivalent;
    (4) Supporting property administration assignments; and
    (5) Name(s) of the property administrator(s) and date(s) of tenure.
    (c)(1) The property administrator shall establish a Contract 
Property Control Data File, which shall include as a minimum--
    (i) The Property Summary Data Record;
    (ii) A copy of the contract or provisions pertinent to property 
administration, and comparable data regarding any subcontracts involving 
Government property;
    (iii) The record of initial review, evaluation, and approval of the 
contractor's property control system; and, if applicable, the record of 
withdrawal of approval and basis for it, reinstatement of approval, and 
deviations granted;
    (iv) A record of visits and property system surveys performed, 
including appropriate work papers, deficiencies disclosed, and 
corrective actions taken;
    (v) Contractor's receipts for Government property, when required;
    (vi) The record of final review and execution of the property 
administrator's statement of closure of the contract property account;
    (vii) Other pertinent correspondence and documents, including, as 
applicable, inventory adjustments, investigations, recommendations, and 
determinations;
    (viii) Records concerning supporting property administration 
delegations; assist actions involving special reviews; and other 
applicable reviews at subcontractor's plants;
    (ix) Records of inspection and audits performed by other activities; 
and
    (x) Reports relating to Government property prepared by the 
contractor pursuant to the contract.

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    (2) When more than one contract is involved at one contractor 
location, records relating to more than one contract shall be 
transferred to a contractor's General File, and the Property Summary 
Data Record shall be so annotated.
1845.7208  Initial evaluation and approval of contractor's property 
control system.



Sec. 1845.7208-1  General.

    Normally, the initial contact by the contract administration office 
with a contractor is through a post-award orientation. When a conference 
is held for this purpose, the property administrator shall ensure 
suitable discussion of property administration requirements and 
responsibilities. When a conference is not held, the property 
administrator, upon assignment of a contract, shall forward a letter to 
the contractor--
    (a) Inviting attention to the contractor's responsibilities 
regarding Government property under the contract, including any 
specialized controls, and the extent of the contractor's liability for 
loss, damage, or destruction of Government property during any period in 
which the contractor's property control system does not have the written 
approval of the property administrator;
    (b) Requesting the name of the contractor's representatives to 
contact for review and discussion of the proposed property control 
system; and
    (c) Requesting that policies, instructions, and procedures necessary 
for fully implementing the property control system be available for 
evaluation.



Sec. 1845.7208-2  Review of procedures.

    (a) Following assignment of an initial contract, the property 
administrator shall review the contractor's proposed property control 
system procedures to determine--
    (1) Inadequate or questionable areas in the proposed procedures for 
compliance with NASA contract requirements;
    (2) Essential controls not provided by the proposed procedures;
    (3) Areas in the proposed procedures requiring physical observation 
or verification; and
    (4) Subcontractors, or secondary locations of prime contract 
performance, and the need for physical observation or verification of 
property controls at those locations.
    (b) It is normal industry practice to provide for property control 
by means of written procedures that communicate company standards, 
techniques, and instructions to operational personnel for uniform 
application. However, a contractor with few employees may not need 
written procedures for effective management of Government property. In 
such cases, the property administrator shall evaluate the adequacy of 
the contractor's system on the basis of the contractor's explanation of 
its controls and observation of their application, and shall prepare a 
brief description of the procedures for inclusion in the Contract 
Property Control Data File. In the latter instance, the contractor's 
signature shall be obtained signifying concurrence with the property 
administrator's written description.
    (c) The contractor's plant shall be visited to determine that the 
contractor's operation of the system provides adequate controls for the 
Government property to be furnished or acquired.
    (d) The means of obtaining the information necessary for approving 
the contractor's property control system is a matter for the property 
administrator's judgment. Test examinations and verification in specific 
categories may be necessary to ensure the reliability of the final 
evaluation and permit conclusions as to the acceptability of controls 
for all categories and the system as a whole.
    (e) The property administrator shall examine the contractor's 
procedures to determine whether they meet the contractual requirements 
for property control. The property administrator shall test and analyze 
the contractor's system, noting or commenting on the acceptability of 
the procedures in preparing the record of system evaluation (see 
1845.7208-4).
    (f) If the contractor's property control system has previously been 
approved and a new contract requires the expansion of existing or the 
establishment of additional controls, the property administrator should 
normally

[[Page 376]]

limit the review to the new requirements. If the system is adequate, the 
property administrator shall record this fact on the Property Summary 
Data Record for the contract. Notification to the contractor is not 
required. However, if the property administrator determines that the 
contractor's property control system does not adequately meet the new 
contract requirements, the property administrator shall annotate the 
Property Summary Data Record for the contract involved appropriately and 
notify the contractor in writing of the required changes.
    (g) In reviewing the contractor's property control system, the 
property administrator shall consider the provisions of 1845.505-14 and 
ensure that the contractor's system provides for maintaining financial 
data and furnishing required reports within the time limits specified.



Sec. 1845.7208-3  Exit interview with the contractor.

    Upon completing the review, the property administrator shall hold an 
exit interview with the contractor to discuss any category in which the 
controls or procedures were found inadequate and shall advise where 
corrective action is required before an approval of the system can be 
granted. When the contractor is willing to correct a deficiency or 
questionable practice immediately, the documentation supporting the 
property administrator's findings and conclusions shall include a 
statement to this effect. The contracting officer responsible for the 
predominant value of NASA property at the facility shall attend the exit 
interview with the contractor if major deficiencies exist in the 
property control system, past deficiencies remain uncorrected, or the 
value of the personal property involved exceeds $1,000,000.



Sec. 1845.7208-4  Record of system evaluation.

    Upon completing the evaluation of the contractor's system, the 
property administrator shall prepare a written summary of findings to 
support approval of the system or any requirement for corrective action 
before approval. A report of visit or other documentation may be 
utilized if the participating contractor and Government personnel are 
listed, actions taken are adequately described, and the property 
administrator's determination is clearly stated.



Sec. 1845.7208-5  Notification of deficiencies.

    If deficiencies have been found, the property administrator shall 
prepare a letter to the contractor for signature by the contracting 
officer, listing them and noting any agreement by the contractor to 
correct them. The contractor shall respond within 30 days, providing the 
precise action to be taken and the time required to correct each 
deficiency.



Sec. 1845.7208-6  Resolution of differences.

    If the contractor's response is unsatisfactory, the contracting 
officer, along with the property administrator, shall meet with the 
contractor in an effort to arrive at a mutually satisfactory corrective 
program. The contractor shall be requested to confirm in writing any new 
commitments arising from this meeting. If the contractor fails to 
correct deficiencies in its property control system within a reasonable 
period, the contracting officer shall refer the matter by memorandum to 
appropriate levels of management within the NASA installation and 
Headquarters staff offices, depending on the criticality of the problem 
involved. The memorandum shall include--
    (a) A specific, concise, and documented statement of the problem;
    (b) A statement of the contractor's position; and
    (c) The recommended action.



Sec. 1845.7208-7  Letter of approval.

    (a) Approval of a contractor's property control system shall be 
conditioned upon a joint determination, by the property administrator 
and the contracting officer that no deficiencies exist in the property 
control system or that only minor deficiencies exist and the contractor 
has agreed to correct them.
    (b) If the contractor's property control system is acceptable, the 
property

[[Page 377]]

administrator shall advise the contractor in writing. However, if the 
approval was preceded by correspondence between the contracting officer 
and the contractor (1845.7208-5 and 1845.7208-6), the property 
administrator shall reference it in the approval and advise the 
contractor that the corrective action taken or planned is acceptable. A 
copy of the letter of approval shall be sent to the contracting officer.
    (c) If the contract involves Government property at subcontractor 
plants or prime contractor secondary locations, or both, and the 
controls for it are determined adequate, the approval shall be expanded 
to include the procedures governing Government property at those 
locations.
1845.7209  Property administration during contractor performance.



Sec. 1845.7209-1  Property administration plan.

    (a) The property administrator shall develop a property 
administration plan for each contractor's plant, covering the property 
control system utilized on Government contracts. The plan shall provide 
for surveys and shall be augmented to cover responsibilities imposed by 
new contracts, changing conditions, or marginal performance. If approval 
of the contractor's system is unduly delayed at inception of the 
contract by the contractor's failure to provide an acceptable system, or 
is withdrawn because of unsatisfactory conditions disclosed after 
approval, the property administration plan shall be expanded as 
necessary to reasonably ensure that loss, damage, or destruction of 
Government property is disclosed in a timely manner. Special attention 
shall be given to reasonably ensuring that any loss, damage, or 
destruction occurring during a period when a contractor's system is not 
approved is identified before approval or reapproval.
    (b) The property administrator must exercise judgment in developing 
the plan and in determining which categories (see Table 1845-1) of the 
contractor's property control system warrant examination. Dollar amounts 
and volume of activity, types of property, complexity of the 
contractor's system, risk to the Government, and previous experience 
regarding the adequacy of the contractor's controls are factors 
determining the extent and scope of the system survey plan.

       Table 1845-1--Categories, Functional Areas, Characteristics

    (This is not an exclusive list and may be modified as necessary.)

                               Category 1

    Acquisition. The process of acquiring Government property either 
through requisition or transfer from Government sources or through 
purchase, including purchases from the contractor's stores.
    a. Functional Area: Government-furnished property.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Item is contractually authorized.
I................................  (2) Requesting document is properly  
                                    prepared and processed.             
I................................  (3) Quantity requested is reasonable 
                                    but not available in existing stocks
                                    at the plant site for use on the    
                                    requiring contract.                 
I................................  (4) Requests are controlled until    
                                    items are received or requirement   
                                    cancelled. Status file is           
                                    maintained.                         
I................................  (5) Requests are submitted in a      
                                    timely manner to minimize use of    
                                    emergency priorities.               
------------------------------------------------------------------------

    b. Functional Area: Contractor-acquired property.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Item is contractually authorized.
I................................  (2) Quantity ordered is reasonable   
                                    but not available in existing stocks
                                    at the plant site for use on the    
                                    requiring contract.                 
I................................  (3) Purchase order distribution,     
                                    cancellation, and change are        
                                    properly controlled.                
I................................  (4) Item description, contract       
                                    number, and price, are reflected in 
                                    purchase order.                     
I................................  (5) Consent or approval by the       
                                    contracting officer is obtained as  
                                    required.                           
------------------------------------------------------------------------

                               Category 2

    Receiving. The process of Government property initially entering 
into a contractor's custody.
    Functional Area: Receiving process.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Receiving report adequately      
                                    describes item and shows count and  
                                    condition. If quantity, condition,  
                                    or description differs from that    
                                    shown on inbound shipping document, 
                                    proper adjustment document is       
                                    prepared and property administrator 
                                    is notified.                        
I................................  (2) Receiving report is promptly and 
                                    properly prepared and controlled,   
                                    and distribution includes copy to   
                                    property accounting organization.   
I................................  (3) Item received is properly        
                                    classified (e.g., special tooling). 

[[Page 378]]

                                                                        
I................................  (4) Item is properly identified and  
                                    marked during the receiving process.
II...............................  (5) Returnable and reusable          
                                    containers are properly controlled  
                                    and accounted for.                  
II...............................  (6) Misdirected shipments are        
                                    adequately controlled pending       
                                    receipt of disposition instructions.
------------------------------------------------------------------------

                               Category 3

    Records. The official accounting and subsidiary records maintained 
by a contractor to show status and to control all Government property 
furnished to or acquired by it.
    a. Functional Area: Inventory control (real and personal property).

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Accounting record conforms to FAR
                                    and NASA FAR Supplement requirements
                                    and is accurate.                    
I................................  (2) Documentation in support of      
                                    accounting entries is sufficient.   
I................................  (3) Accounting entries are made      
                                    without undue delay.                
I................................  (4) Stock levels and reorder points  
                                    are reflected on record, are        
                                    reasonably sound, and are consistent
                                    with the contract.                  
I................................  (5) Accounting records are closed by 
                                    means of proper accounting entry,   
                                    adequately supported by             
                                    documentation.                      
I................................  (6) Locator system is adequate and   
                                    accurate.                           
------------------------------------------------------------------------

    b. Functional Area: Fabrication records.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Records of items fabricated      
                                    conform to FAR requirements and are 
                                    accurate.                           
I................................  (2) Documentation in support of      
                                    accounting entries is sufficient.   
------------------------------------------------------------------------

    c. Functional Area: Receipt and issue file.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  Records of items conform to FAR and  
                                    NASA FAR Supplement requirements and
                                    are accurate.                       
------------------------------------------------------------------------

    d. Functional Area: Custodial records.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Custodial record is adequate and 
                                    accurate.                           
I................................  (2) Records are properly closed.     
------------------------------------------------------------------------

    e. Functional Area: Scrap and salvage records.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Scrap and salvage records are    
                                    adequate and accurate.              
I................................  (2) Items reclaimed during salvage   
                                    operations are properly classified. 
I................................  (3) Documentation in support of      
                                    record is adequate.                 
I................................  (4) Records are properly closed.     
------------------------------------------------------------------------

    f. Functional Area: Multicontract cost and material control system.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Records conform to FAR           
                                    requirements and are accurate.      
I................................  (2) Documentation in support of      
                                    record is adequate.                 
I................................  (3) Accounting entries are made      
                                    promptly.                           
I................................  (4) Records are properly closed.     
------------------------------------------------------------------------

                               Category 4

    Storage and movement. The process of storing and moving all types of 
Government property includes movement from one point to another for any 
purpose and protection during movement and storage.
    a. Functional Area: Warehousing.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
II...............................  (1) Housekeeping is adequate.        
II...............................  (2) Government property is segregated
                                    from contractor property.           
II...............................  (3) Adequate protection of Government
                                    property, including hazardous       
                                    material, precious metals, sensitive
                                    items, etc., is provided.           
II...............................  (4) Measures for corrosion           
                                    prevention, age control, etc., are  
                                    adequate.                           
------------------------------------------------------------------------

    b. Functional Area: Internal and external movements.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
II...............................  (1) Item is moved under proper       
                                    authority, supported by issue slip, 
                                    shipping ticket, location change    
                                    order, etc.                         
II...............................  (2) Adequate protection is provided  
                                    during movement, such as packing,   
                                    covering, skidding, proper handling 
                                    equipment and techniques, and safety
                                    precautions.                        
II...............................  (3) Loss or damage occurring during  
                                    movement is reported to the property
                                    administrator.                      
------------------------------------------------------------------------

                               Category 5

    Consumption. The process of incorporating Government-owned property 
into an end item or otherwise consuming it in performance of a contract.
    a. Functional Area: Reasonableness of consumption.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Quantities consumed are          
                                    reasonable when compared to bill of 
                                    material, material requirement      
                                    lists, established scrap rates, etc.
II...............................  (2) Serially numbered or selectively 
                                    matched items are incorporated in   
                                    appropriate end item.               
------------------------------------------------------------------------

    b. Functional Area: Conservation.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
II...............................  (1) Excesses are promptly returned to
                                    stores and recorded.                

[[Page 379]]

                                                                        
II...............................  (2) Where appropriate, maximum use is
                                    made of repair and salvage          
                                    procedures in lieu of using new     
                                    items.                              
II...............................  (3) Where appropriate, a first-in,   
                                    first-out (FIFO) system is employed 
                                    with respect to ``dated'' items.    
------------------------------------------------------------------------

                               Category 6

    Utilization. The process of utilizing plant equipment, special 
tooling, special test equipment, material, and space property for the 
purpose for which furnished or acquired.
    a. Functional Area: Plant equipment, special tooling, special test 
equipment.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Item is used for purpose         
                                    authorized by contract (not diverted
                                    to other use).                      
I................................  (2) Degree of utilization justifies  
                                    retention.                          
------------------------------------------------------------------------

    b. Functional Area: Material and space property.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Item is used for purpose         
                                    authorized (not diverted to other   
                                    use).                               
I................................  (2) Degree of utilization justifies  
                                    retention of stock on hand.         
------------------------------------------------------------------------

                               Category 7

    Maintenance. The process of providing the amount of care necessary 
to obtain a high quality of production and the most useful life of 
Government property.
    a. Functional Area: Preventive and corrective maintenance.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Item is scheduled for periodic   
                                    maintenance (including technical    
                                    order compliance).                  
I................................  (2) Maintenance is performed         
                                    according to schedule.              
I................................  (3) Records of normal maintenance and
                                    corrective actions are adequate and 
                                    accurate.                           
------------------------------------------------------------------------

    b. Functional Area: Capital-type rehabilitation (includes real 
property).

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Inspection is scheduled to       
                                    determine need for major repair,    
                                    replacement, or other               
                                    rehabilitation.                     
II...............................  (2) Inspection is performed as       
                                    scheduled and results are reported. 
II...............................  (3) Rehabilitation is accomplished   
                                    when authorized.                    
II...............................  (4) Records of major repair,         
                                    replacement, or other               
                                    rehabilitation, including cost, are 
                                    adequate and accurate.              
------------------------------------------------------------------------

                               Category 8

    Physical inventories. The process of physically inventorying 
Government property and comparing it to records of the property 
(includes locating and counting, tagging or marking, describing, 
recording, and reporting results to the property administrator).
    a. Functional Area: Performance.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
II...............................  (1) Periodic physical inventories are
                                    performed.                          
II...............................  (2) Physical inventories are         
                                    performed upon termination or       
                                    completion of contract unless waived
                                    by property administrator.          
I................................  (3) Inventoried property is          
                                    appropriately tagged or marked.     
I................................  (4) Inventory count is accurate.     
II...............................  (5) Inventory procedures provide that
                                    personnel who perform inventory are 
                                    not those who maintain the property 
                                    records or have custody of the      
                                    property, unless the contractor's   
                                    operation is so small as to make    
                                    this impracticable.                 
II...............................  (6) Results of inventories are       
                                    reported to property administrator  
                                    within 30 days.                     
------------------------------------------------------------------------

    b. Functional Area: Reconciliation and adjustment.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
II...............................  (1) Each instance of loss and        
                                    discovery of unrecorded property is 
                                    investigated.                       
II...............................  (2) Causes are determined for above  
                                    discrepancies.                      
II...............................  (3) Actions necessary to prevent     
                                    recurrence are determined and taken 
                                    for above discrepancies.            
II...............................  (4) Adjustments to records (other    
                                    than for property losses) are made  
                                    within 30 days.                     
II...............................  (5) Adjustments to records for       
                                    property losses are made within 30  
                                    days of contracting officer's or    
                                    property administrator's            
                                    notification of relief of           
                                    responsibility or other             
                                    determination.                      
------------------------------------------------------------------------

                               Category 9

    Subcontract control. The process of prime contractor control over 
subcontractors with respect to Government property.
    a. Functional Area: Prime contractor controls.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Subcontract reflects adequate    
                                    instructions with respect to        
                                    subcontractor responsibilities.     
I................................  (2) Records of Government property in
                                    possession of subcontractors conform
                                    to FAR and NASA FAR Supplement      
                                    requirements.                       
I................................  (3) Adequate documentation supports  
                                    accounting entries.                 
II...............................  (4) Prime contractor's surveillance  
                                    over Government property in         
                                    possession of subcontractors is     
                                    adequate.                           
------------------------------------------------------------------------

    b. Functional Area: Subcontractor control. If the prime contractor 
has designated the subcontractor's records and controls as the official 
contract records and controls of Government property in the 
subcontractor's possession, or if adequacy of controls cannot be 
determined by review of the prime contractor's control, the 
subcontractor's property control system shall be evaluated in the same 
manner as that of a prime contractor,

[[Page 380]]

in accordance with procedures and criteria set forth in this subpart 
1845.72.

                               Category 10

    Disposition. The process of requesting disposition instructions and 
effecting disposal of Government property.
    a. Functional Area: Disclosure of excess.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) Excess items are screened for use
                                    on other contracts before           
                                    declaration as excess.              
I................................  (2) Items determined excess are      
                                    promptly reported.                  
I................................  (3) Declaration as excess is complete
                                    and accurate.                       
I................................  (4) Item was allocable to contract   
                                    from which declared excess.         
------------------------------------------------------------------------

    b. Functional Area: Disposal.

------------------------------------------------------------------------
              Class                            Characteristic           
------------------------------------------------------------------------
I................................  (1) There is proper authority for    
                                    disposition.                        
I................................  (2) Item was disposed of within a    
                                    reasonable time after authority was 
                                    received.                           
I................................  (3) Identification tag is removed    
                                    from item prior to disposal, when   
                                    appropriate.                        
I................................  (4) Documentation of disposition is  
                                    complete and reflects authority,    
                                    disposal action, and date of        
                                    disposal and is posted to record.   
I................................  (5) When appropriate, proceeds have  
                                    been credited to the Government.    
------------------------------------------------------------------------

                          (End of Table 1845-1)



Sec. 1845.7209-2  System surveys: surveillance.

    The property administrator shall conduct a complete system survey 
annually to obtain thorough knowledge of the contractor's efficiency and 
system of property control. Completion of a system survey involving 
complex property control systems may require detailed tests and 
evaluations over an extended period of time. If deficiencies in physical 
control or records are disclosed, the property administrator must (a) 
ensure that the contractor takes corrective action and (b) evaluate its 
effectiveness. In such instances, test and evaluation of any one 
category shall be completed as expeditiously as possible, and the 
working papers and analysis shall be retained for consideration and 
incorporation into the summary and survey case file.



Sec. 1845.7209-3  System surveys: scheduling and planning.

    (a) At the beginning of each calendar year, the property 
administrator shall prepare a schedule showing the names of the 
contractors and the dates on which each system survey is to be initiated 
and completed.
    (b) Before initiating any system survey, the property administrator 
shall establish a survey plan providing, as a minimum--
    (1) Identification and listing of the categories, functional areas, 
and characteristics to be evaluated (see Table 1845-1);
    (2) Evaluation of approved property control procedures applicable to 
the categories to be examined, and noting of any portions of them that 
should be reviewed with operating personnel for possible updating (if a 
functional area of the property control system is not covered by 
procedures, no attempt should be made to survey that area at that time, 
but that area should be recorded as unsatisfactory and action taken to 
correct the condition); and
    (3) Directions for preparing work papers necessary to document the 
file.



Sec. 1845.7209-4  Testing the system.

    In conducting tests of the contractor's property control system, the 
following factors should be considered to assure adequate coverage of 
requirements peculiar to particular classes of property and functional 
areas:
    (a) Materials. Materials should be considered as bulk quantities, as 
contrasted to individual items. Examinations should be directed to--
    (1) Tracing inbound transportation units from:
    (i) Bills of lading or other transportation documents to receiving 
reports, in order to verify the receiving reports and to ensure that 
proper action is taken on shortages, damages, and other discrepancies, 
and
    (ii) Stock records to assure that the receipts were accurately 
posted;
    (2) Abstracting nomenclature and balance data from stock records and 
making physical counts to determine accuracy of the stock records;
    (3) Tracing posting of credits to (i) stock records (by date, 
reference number, and quantity) and (ii) issue documents, in order to 
assure accuracy of the postings and validity of the documents (signature 
by authorized individual and indication of reasons for issue

[[Page 381]]

or point of delivery, or both, to indicate proper contract use); and
    (4) Determining, to the extent practicable at the point of receipt 
and use, whether undue quantities are issued, charged to cost, and held 
on the plant floor rather than being held under better security in 
stores.
    (b) Custodial items. Issues shall be traced from stores records to 
tool cribs, office stock rooms, uniform rooms, and the like, to 
determine whether they are taken into account as part of a sound control 
system. It should be determined that issues to contractor personnel are 
covered by tool chits, uniform slips, or other mechanisms to ensure 
return, or ability to locate items to be returned, ensuring that new 
items are not issued without return of worn-out items or that suitable 
explanation is provided.
    (c) End items. General techniques for surveying materials are 
applicable to end items placed in storage pending shipment. Examination 
shall include tracing from Government acceptance records of the 
contractor's claims for reimbursement to physical quantities on hand and 
quantities on validated shipping documents.
    (d) Plant equipment costing less than $5,000. If summary stock 
records are used for this class of property, examination using the 
``bulk quantities'' approach in paragraph (a) of this section is 
applicable but shall also cover--
    (1) Identification if required pursuant to FAR 45.505-5 (any 
identification numbers shall be physically verified); and
    (2) Location as prescribed in FAR 45.505(g), creating need for 
physical verification of presence or absence of the property in the 
location shown by the location record.
    (e) Plant equipment costing $5,000 or more. Testing on an item-by-
item basis is usually required to achieve desired results. 
Determinations demanding special attention include whether--
    (1) Government screening and approval requirements are observed;
    (2) Classification of property is accurate, both at time of 
requisition or purchase and at time of receipt, through the use of 
Cataloging Handbooks H2-1, H2-2, and H2-3;
    (3) An item is actually applied to the requirement for which 
acquired, and, if deviation is made, that any necessary notice and 
Government approval have been obtained;
    (4) Receiving documentation is complete and accurate, indicating 
assignment of identification number, treatment of accessory and 
auxiliary equipment as required, and the DD Form 1342 (DoD Property 
Record), or equivalent format, is prepared and processed when required 
by 1845.505-670;
    (5) From physical inspection of the property, the equipment records 
are accurate, including location and classification as to use 
(examination shall be conducted from property to records and from 
records to property); and
    (6) Disposition is initiated as required if equipment is no longer 
required at the plant (examination shall include the adequacy of the 
procedure for preparing and submitting DD Form 1342 (Property Record), 
or equivalent format, where specified, propriety of authority for 
shipment, and proper accounting for accessory and auxiliary equipment).
    (f) Special test equipment. The examination of special test 
equipment shall be essentially the same as for plant equipment costing 
$5,000 or more, except for recognizing the greater complexity of 
assemblies classified as single items and the possible need for 
assistance and advice of engineering personnel. Examinations shall 
include tracing of individual components into the assembly to assure a 
clear trail, particularly with respect to general purpose test equipment 
components, and propriety of disposition of components upon disassembly.
    (g) Special tooling. Testing for plant equipment, as in paragraphs 
(d) and (e) of this section, may be used as a guide to establish the 
method and sampling for special tooling. When option as to title to 
special tooling is involved under terms of the contract (see the clause 
at FAR 52.245-17, Special Tooling), examination need only be sufficient 
to comply with the request of the contracting officer.
    (h) Real property. After initial turnover of real property to a 
contractor, tests and examinations normally shall

[[Page 382]]

be directed to work orders of the contractor and documentation from 
Government sources as to additions and other capital improvements or 
disposals or capital decreases.
    (i) Scrap and salvage. Tests relating to scrap and salvage may be 
similar to those for materials as outlined in paragraph (a) of this 
section. However, special attention should be given to--
    (1) Tracing from credit entries on materials records (showing turn-
in to scrap) to corresponding debits to scrap records;
    (2) Determining from analysis of consumption of materials over a 
given period that the quantities indicated as being scrapped or spoiled 
are matched with comparable receipts in the scrap and salvage accounts; 
and
    (3) Determining that, when conversions of units of property to 
pounds of scrap or from estimated to scale weights or to other units of 
measure are made, the formula for the conversion is shown on the 
document affected or is readily available in the approved contractor 
procedure.
    (j) Analyzing consumption of materials. It shall be determined by 
both physical examination and analysis of records that quantities 
consumed are for proper purposes and in reasonable amounts. In analyzing 
consumption of component parts or other production materials, unit 
allowance (equalling amount required per end-item plus normal spoilage) 
for each line item of materials may be available in the contract, bill 
of materials, blueprints, or shop drawings of items fabricated, or in 
cost computations supporting the end-item price. If such unit allowance 
information is not available, technical personnel may be consulted as to 
whether quantities consumed are within accepted industry standards.
    (k) Testing of physical inventories. The property administrator has 
the option of conducting tests of the contractor's physical inventories 
either during the performance of the inventory or subsequent to its 
completion. In either event, tests shall evidence physical counts of 
selected items without knowledge of record balances, verification of the 
entries on count slips, comparisons with records, preparation of 
documents necessary to any adjustments required, approval of 
adjustments, and the referral of lists of adjustments to the property 
administrator pursuant to FAR 45.508-2.
    (l) Examination of maintenance program. The property administrator 
shall trace the actions scheduled to determine whether they have been 
performed and that the actions stated by the contractor's procedures 
have been included. Also, records of the maintenance or repair shop or 
the contractor's purchase orders shall be examined as to causes of 
breakdowns of equipment to determine whether they were the result of 
inadequate preventive or routine maintenance.



Sec. 1845.7209-5  Performing the system survey.

    In performing the system survey, the property administrator shall 
follow the procedures in paragraphs (a) through (e) of this section.
    (a)(1) The lot size shall be estimated. Insofar as possible, lots 
selected shall consist of all the following current operations of the 
contractor:
    (i) Those transactions (excepting disposition transactions) that 
have occurred during the last 90 days preceding the date of sampling and 
the documents recording those actions. (If no transactions have taken 
place during the last 90 days, samples will be taken from transactions 
going back to the last system survey.)
    (ii) Articles in the possession or control of the contractor at that 
time.
    (iii) Dispositions occurring since the last survey was made.
    (2) The lot should encompass the maximum number of units possible 
within a functional area. For example, transactions pertaining to 
special tooling, special test equipment, and plant equipment may be 
combined into a single lot and sampled for their common characteristics. 
Characteristics not common to units sampled shall be extracted for 
evaluation as a part of a separate lot.
    (b) Sample sizes and statistical sampling techniques shall be in 
accordance with 1845.7213.
    (c) After the examinations are performed and the findings recorded, 
the

[[Page 383]]

findings shall be analyzed and the conclusions and recommendations 
recorded. Decisions as to satisfactory or unsatisfactory conditions 
shall be made for each lot at the functional area level.
    (d) If any category is found unsatisfactory during a survey, the 
property administrator shall determine the effects upon the complete 
system. All other applicable categories shall be surveyed to identify 
other defects and the extent of defectiveness in the overall system.
    (e) The property administrator shall discuss problems disclosed 
during the survey with the contractor's personnel as they are noted, or 
during the exit interviews, and shall strive to resolve differences 
informally. Resolved problem areas shall be reported in the record of 
system evaluation, with the notation that they have been corrected.



Sec. 1845.7209-6  System survey summary.

    (a) The property administrator shall prepare a formal record at the 
conclusion of each system survey in the format set forth below:
    (1) Introduction: Contractor's name and address, period of survey, 
and types of property involved.
    (2) Method used: Explain method of performing the survey.
    (3) Conclusions: State conclusions reached (if unsatisfactory 
categories, functional areas, or characteristics are found, identify the 
defects found).
    (4) Action required: State any actions necessary to correct 
unsatisfactory conditions.
    (b) The property administrator shall forward a summary of the system 
survey to the contractor, advising of any unsatisfactory conditions and 
requesting the contractor to correct them within the time limitations 
agreed to during the exit interview. The property administrator shall 
also advise the contractor in this letter that failure to correct the 
unsatisfactory conditions may result in disapproval of its property 
control system. A copy of the summary shall also be retained in a survey 
case file, and whenever unsatisfactory conditions have been disclosed, a 
copy of the summary shall be provided to the administrative contracting 
officer. When conditions dictate (e.g., indication of significant 
noncompliance with contract requirements or other continued failures 
jeopardizing the interest of the Government), the purchasing office and 
the pre-award survey monitor shall also be advised in writing.



Sec. 1845.7209-7  Correction of unsatisfactory conditions.

    If unsatisfactory conditions are disclosed, the property 
administrator shall ensure that corrective action is taken. If the 
contractor fails to take corrective action or to respond to the letter 
forwarded as prescribed in 1845.7209-6 of this subpart, the property 
administrator shall proceed in accordance with 1845.7208-6 and FAR 
45.104(c).



Sec. 1845.7209-8  Survey case file.

    The property administrator shall establish a case file for each 
system survey, containing the survey plan, work papers, and summary. The 
case file shall be maintained in the Contract Property Control Data File 
or the general file which the property administrator maintains for 
matters pertaining to that contractor.



Sec. 1845.7209-9  Additional administrative responsibilities.

    The initial review, evaluation, and subsequent visits should give 
the property administrator a reasonable indication of future workload 
with each contractor. Loss, damage, destruction, or excessive 
consumption of Government property demand the property administrator's 
significant and prompt attention, particularly when the contractor's 
system is not approved.



Sec. 1845.7209-10  Declaration of excess property.

    A problem often disclosed by systems surveys is the failure of a 
contractor to report Government property not needed in performance of 
the contract (excess). The property administrator shall fully document 
and report any such finding to the administrative contracting officer. 
After a report of excess received from a contractor has been referred to 
the plant clearance officer for screening and ultimate disposition, the 
property administrator shall ensure

[[Page 384]]

prompt disposition. For centrally reportable plant equipment, the 
property administrator shall--
    (a) Assure the preparation and submission of individual reports (DD 
Form 1342 or equivalent) required of the contractor;
    (b) Verify to permit certifications required by the forms; and
    (c) Transmit the report to the NASA Industrial Property Officer.
1845.7210  Closure of contracts.



Sec. 1845.7210-1  Completion or termination.

    Upon completion or termination of a contract, the property 
administrator shall--
    (a) Monitor the actions of the contractor in returning excess 
Government property not referred to the plant clearance officer; and
    (b) Advise the cognizant plant clearance officer as to the existence 
at a contractor's plant of residual property requiring disposal.



Sec. 1845.7210-2  Final review and closing of contracts.

    (a) When informed that disposition of Government property under a 
contract has been completed, the property administrator shall perform a 
final review and sign a determination that--
    (1) Disposition of Government property has been properly 
accomplished and documented;
    (2) Adjustment documents, including any request of the contractor 
for relief from responsibility, have been processed to completion;
    (3) Proceeds from disposals or other property transactions, 
including adjustments, have been properly credited to the contract or 
paid to the Government as directed by the contracting officer;
    (4) All questions as to title to property fabricated or acquired 
under the contract have been resolved and appropriately documented; and
    (5) The contract property control record file is complete and ready 
for retirement.
    (b) When final review pursuant to paragraph (a) of this section 
reveals that such action is proper, the property administrator shall 
accomplish and sign a DD Form 1593, Contract Administration Completion 
Record, or equivalent.
    (c) The executed DD Form 1593 shall be forwarded to the contracting 
officer, the Property Summary Data Record shall be so annotated, and the 
contracting officer shall include it in the contract file.
1845.7211  Special subjects.



Sec. 1845.7211-1  Government property at alternate locations of the prime contractor and subcontractor plants.

    (a) Government property provided to a prime contractor may be 
located at other plants of the prime contractor or at subcontractor 
locations. The prime contractor is accountable and responsible to the 
Government for this property.
    (b) A Government property administrator cognizant of the location of 
the property shall normally be designated to (1) perform required 
surveys of the property control system and (2) exercise surveillance 
over the property as a supporting responsibility.
    (c) If the property administrator determines that supporting 
property administration is required, he or she shall write the cognizant 
contract administration office asking that a property administrator be 
assigned. The request for supporting property administration shall 
include--
    (1) The name and address of the prime contractor;
    (2) The prime contract number;
    (3) The name and address of the alternate location of the prime 
contractor, or of the subcontractor where the property will be located;
    (4) A listing of the property being furnished, or, if property is 
being acquired locally, a statement to this effect; and
    (5) A copy of the subcontract or other document under which the 
property will be furnished or acquired.
    (d) Concurrent with the action cited in paragraph (c) of this 
section, the property administrator shall ascertain

[[Page 385]]

whether the prime contractor will perform the necessary reviews and 
surveillance with the contractor's own personnel, or elect to rely upon 
the system approval and continuing surveillance by a supporting property 
administrator of the property control system at the alternate location 
or subcontractor plant. If the prime contractor advises that it will 
accept the findings of a supporting property administrator, a statement 
in writing to that effect shall be obtained. If the prime contractor 
does not so elect, it shall be required to perform the requisite reviews 
and surveillance and document its actions and findings.
    (e) If a single item or limited quantities of property will be 
located at an alternate location or subcontractor plant, the property 
administrator may determine that supporting property administration is 
unnecessary, provided--
    (1) The prime contractor's records adequately reflect the location 
and use of the property;
    (2) The nature of the property is such that the possibility of its 
use for unauthorized purposes is unlikely; and
    (3) The nature of the property is such that a program of preventive 
maintenance is not required.
    (f) When supporting property administration will not be requested, 
the services of a property administrator in the contract administration 
office cognizant of the site where the property is located may be 
requested on an occasional basis for special reviews or such other 
support as may be necessary. Repeated requests for assistance indicate a 
requirement for requesting supporting property administration.



Sec. 1845.7211-2  Loss, damage, or destruction of Government property.

    (a) Normally, contract provisions provide for assumption of risk of 
loss, damage, or destruction of Government property as described below:
    (1) Sealed-bid and certain negotiated fixed-price contracts provide 
that the contractor assumes the risk for all Government property 
provided under the contract (see the clause at FAR 52.245-2, Government 
Property (Fixed-Price Contracts)).
    (2) Other negotiated fixed-price contracts provide that the 
contractor assumes the risk for all Government property provided under 
the contract, with the exceptions set forth in the clause at FAR 52.245-
2, Alternate I and Alternate II.
    (3) Cost-reimbursement contracts (see the clause at FAR 52.245-5, 
Government Property (Cost-Reimbursement, Time-and-Material, or Labor-
Hour Contracts)) provide that the Government assumes the risk for all 
Government property provided under the contract when there is no willful 
misconduct or lack of good faith of any of the contractor's managerial 
personnel as defined in the contract.
    (4) There are certain events for which the Government does not 
assume the risk of loss, damage, or destruction of Government property, 
such as risks the contract expressly requires the contractor to insure 
against. Therefore, before reaching a conclusion or making a 
determination, the contracting officer shall obtain property 
administrator review of the contract clause and shall obtain advice from 
appropriate legal counsel on questions of legal meaning or intent.
    (5) ``Willful misconduct'' may involve any intentional or deliberate 
act or failure to act causing, or resulting in, loss, damage, or 
destruction of Government property.
    (6) ``Lack of good faith'' may involve gross neglect or disregard of 
the terms of the contract or of appropriate directions of the 
contracting officer or the contracting officer's authorized 
representatives. Examples of lack of good faith may be demonstrated by 
the failure of the contractor's managerial personnel to establish and 
maintain proper training and supervision of employees and proper 
application of controls in compliance with instructions issued by 
authorized Government personnel.
    (b) If part of the contractor's system is found to be 
unsatisfactory, the property administrator shall increase surveillance 
of that part to prevent, to the extent possible, any loss, damage, or 
destruction of Government property. The property administrator shall 
give special attention to reasonably ensuring that any loss, damage, or 
destruction occurring during a period when a contractor's system is not 
approved is

[[Page 386]]

identified before approval or reinstatement of approval.



Sec. 1845.7211-3  Loss, damage, or destruction of Government property while in contractor's possession or control.

    (a) The property administrator shall require the contractor to 
report any loss, damage, or destruction of Government property in its 
possession or control (including property in the possession or control 
of subcontractors) as soon as it becomes known.
    (b) When physical inventories, consumption analyses, or other 
actions disclose (1) consumption of Government property considered 
unreasonable by the property administrator or (2) loss, damage, or 
destruction of Government property not reported by the contractor, the 
property administrator shall prepare a statement of the items and amount 
involved. This statement shall be furnished to the contractor for 
investigation and submission of a written report to the property 
administrator relative to the incidents reported.
    (c) The contractor's reports referenced in paragraphs (a) and (b) of 
this section shall contain factual data as to the circumstances 
surrounding the loss, damage, destruction, or excessive consumption, 
including--
    (1) The contractor's name and the contract number;
    (2) A description of items lost, damaged, destroyed, or unreasonably 
consumed;
    (3) The cost of property lost, damaged, destroyed, or unreasonably 
consumed and cost of repairs in instances of damage (in event actual 
cost is not known, use reasonable estimate);
    (4) The date, time (if pertinent), and cause or origin of the loss, 
damage, destruction, or consumption;
    (5) Known interests in any commingled property of which the 
Government property lost, damaged, destroyed, or unreasonably consumed 
is (or was) a part;
    (6) Insurance, if any, covering the Government property or any part 
or interest in any commingled property;
    (7) Actions taken by the contractor to prevent further loss, damage, 
destruction, or unreasonable consumption and to prevent repetition of 
similar incidents; and
    (8) Other facts or circumstances relevant to determining liability 
and responsibility for repair or replacement.
    (d) The property administrator shall investigate the incident to the 
degree required to reach a valid and supportable conclusion as to:
    (1) The contractor's liability for the loss, damage, destruction, or 
unreasonable consumption under the terms of the contract, and
    (2) The course of action required to conclude the adjustment action.

When required, the assistance of the quality assurance representative, 
industrial specialist, insurance officer, legal counsel, or other 
technician will be secured. When the contractor acknowledges liability, 
the property administrator shall forward a copy of the credit memorandum 
or other adjusting document to the administrative contracting officer 
and auditor, if appropriate, to assure proper credit. If analysis of 
contract provisions and circumstances establishes that the loss, damage, 
destruction, or consumption constitutes a risk assumed by the 
Government, the property administrator shall so advise the contractor in 
writing, thereby relieving the contractor of responsibility for the 
property. A copy of the documentation and notification to the contractor 
shall be retained in the Contract Property Control Data File for the 
contract.
    (e)(1) If the property administrator concludes that the contractor 
is liable for the loss, damage, destruction, or unreasonable consumption 
of Government property, he or she shall forward the complete file with 
conclusions and recommendations to the contracting officer for review 
and determination. The file shall contain--
    (i) A statement of facts as supported by investigation;
    (ii) Recommendations as to the contractor's liability and its 
amount;
    (iii) Recommendations as to action to be taken with regard to third 
party liability, if appropriate;
    (iv) Requirements for disposition, repair, or replacement of damaged 
property; and
    (v) Other pertinent comments.

[[Page 387]]

    (2) A copy of the contracting officer's determination shall be 
furnished to the contractor and the property administrator, and a copy 
shall be retained in the contracting officer's files. The property 
administrator's copy shall be filed in the Contract Property Control 
Data File for the contract when all pertinent actions, such as 
compensation to the Government or repair or replacement of the property, 
have been completed.



Sec. 1845.7211-4  Financial reports.

    The property administrator is responsible for obtaining financial 
reports as prescribed in 1845.505-14 for all contracts assigned to him 
or her. Reports shall be accumulated, reviewed and distributed as 
required. Contractors are required to submit separate reports on each 
contract that contains the property reporting clause (see 1852.245-73) 
except as noted in 1845.7101-4(c).
1845.7212  Contractor utilization of Government property.



Sec. 1845.7212-1  Utilization surveys.

    (a) The property administrator is responsible for ensuring that the 
contractor has effective procedures for evaluating Government property 
utilization. However, when necessary, the contract administration office 
shall provide specialists qualified to perform the technical portion of 
utilization surveys to assist the property administrator in determining 
the adequacy of these procedures.
    (b) Upon assignment of an initial contract under which Government-
owned plant equipment in particular will be provided to a contractor, 
the property administrator shall ensure that the contractor has 
established effective procedures and techniques for controlling its 
utilization. The property administrator, with the assistance of 
technical specialists, if necessary, shall evaluate these procedures. A 
record of the evaluation shall be prepared and become a part of the 
property administration file. If the procedures are determined 
inadequate, the record shall identify the deficiencies and the 
corrective actions necessary. If the deficiencies are not corrected by 
the contractor, the property administrator shall promptly refer the 
matter to the contracting officer.
    (c) The property administrator shall perform annual surveys of the 
contractor's procedures related to utilization of Government-owned plant 
equipment. At contractor facilities having a substantial quantity of 
plant equipment, the surveys should normally be conducted on a continual 
basis, reviewing equipment utilization records and physically observing 
a group of preselected items during each portion of the survey. Surveys 
shall be conducted to the degree determined necessary, considering the 
findings of prior surveys and the contractor's performance history in 
identifying and declaring equipment excess to authorized requirements. 
The contractor shall be required to justify, by specific Government 
programs, the retention of all Government-owned plant equipment. The 
property administrator shall make maximum use of contractor's machine 
loading data, order boards, production planning records, machine time 
records, and other production control methods.
    (d) The property administrator shall conduct a special survey when a 
significant change occurs in the contractor's production schedules, such 
as a termination, completion of a contract, or a major adjustment in a 
program. Special surveys may be limited to a given department, activity, 
or division of a contractor's operation.
    (e) In the absence of adequate justification for retention, the 
contractor shall identify and report Government-owned plant equipment in 
accordance with FAR 45.502(g) and FAR 45.509-2(b)(4). Items that are 
part of approved inactive package plants or standby lines are exempted 
from utilization surveys. The contracting officer shall ascertain 
periodically whether existing authorizations for standby or lay-away 
requirements are current.



Sec. 1845.7212-2  Records of surveys.

    The property administrator shall prepare a record incorporating 
written findings, conclusions, and recommendations at the conclusion of 
each survey. If appropriate, the property administrator's record may be

[[Page 388]]

limited to a statement expressing concurrence with the reports of other 
specialists. The property administrator shall retain one copy of each 
record in the property administration file.



Sec. 1845.7212-3  Scope of survey.

    The property administrator shall consider and use as appropriate the 
following in preparing for, conducting, and recording the results of the 
plant equipment utilization surveys:
    (a) Identification of contracts under which plant equipment was 
furnished or acquired.
    (b) Number and dollar value of plant equipment items in contractor's 
possession.
    (c) Adequacy of equipment use records.
    (d) Identification of contracts for which use of plant equipment is 
authorized.
    (e) Other authorized use (Government or commercial) of the plant 
equipment, whether required approvals have been obtained, and whether 
rental payment is required.
    (f) Planned machine loadings, including performance of a physical 
review of selected plant equipment items.
    (g) Whether contractor-owned equipment of like function is loaded 
before loading Government-owned plant equipment.
    (h) Items reported by quality assurance representatives or other 
personnel to be in a questionable use and utilization status.
    (i) Items of plant equipment that may be made available for other 
use by combining the work of two or more machines on a single machine 
with low utilization rate. In such case the survey record should 
indicate the date the DD Form 1342, DOD Property Record or equivalent 
format, was forwarded to the NASA contracting officer.



Sec. 1845.7213  Statistical sampling.

    (a) General. Statistical sampling supports, but does not replace, 
the property administrator's judgment. It is used to evaluate and 
determine the performance level for each functional area and category 
within each property control system. The lot to be examined for defects 
should encompass the maximum possible number of line items of property, 
records and documents. All items in the lot must have common 
characteristics and the same control elements of the property control 
system must apply or more than one lot will be necessary. Items selected 
for sampling may be used to examine characteristics of more than one 
category (i.e., items selected under records may be used to examine 
characteristics of acquisition, stock control, storage and movement, 
maintenance, physical inventory, utilization, and consumption).
    (b) Use of statistical sampling plans. The Government's risk shall 
not exceed 10% excepting any slight variations due to changes in lot 
sizes. Table 1845-2 contains sampling plans for use in achieving a 
confidence level of 90%, i.e., there is 90% confidence of rejecting lots 
having 10% or more defectives. The sample sizes to be examined may be 
determined from either Table 1845-2A or B.
    (c) Random number table. (1) Use of a table of random numbers is a 
common technique for drawing a sample. (A table is available from the 
NASA Headquarters Logistics Management Office (Code JLG).) However 
randomization techniques may be applied provided they are defined 
beforehand in the property administration survey plan and exhibit clear 
protection against bias. In any event, the number of items in the lot 
must not be overestimated to avoid selection of random numbers greater 
than the lot. For example, if the lot is 9,000, only numbers lower than 
9,001 shall be selected. Using a random table to draw a random sample 
requires the following four steps:
    (i) First step. A pattern must be established between the numbers in 
the table and items in the lot to be sampled. It is possible to use the 
whole random number or any portion thereof. For instance, the number 
18,967 may appear in the table. If the lot size is more than 99 but less 
than 1,000, a three digit number is required and either the first three 
digits (189) or the last three (967) may be used. If the lot size is 
more than 999 but less than 10,000, a four digit number is required and 
either the first four digits (1,896) or the last four (8,967) may be 
used. Once this pattern has been established, it

[[Page 389]]

must be consistently used throughout the sample selection process.
    (ii) Second step. A procedure for selecting the numbers from the 
table must be selected. Any systematic path for going through the table, 
if the path is clear and does not cross over or reuse any number 
previously used, is acceptable. It is possible to proceed across rows, 
down columns, diagonally, clockwise, counterclockwise, or in some 
combinations of these methods; however, it is usually desirable to 
choose a simple pattern and go down columns or across rows.
    (iii) Third step. The starting point in the table shall be selected 
at random. The most used method is to open the table of random numbers 
to any page and to use the number indicated by an arbitrarily placed 
pencil point.
    (iv) Fourth step. Beginning at the starting point and proceeding 
through the table as planned in the second step, record the numbers 
found in succession in the table, using all or part of the number as 
planned in the first step. Duplicate numbers shall be skipped. The 
selection process shall be continued until the required sample size is 
drawn.
    (2) Numbers taken from the random table shall be arranged and 
recorded in numerical order. If the units of the lot to be examined are 
already consecutively numbered, the units having the numbers 
corresponding to those taken from the random table become the sample 
units. Otherwise, the sample units shall be found by counting to the 
numbers taken from the random table.

                   Table 1845-2A--Single Sampling Plan                  
------------------------------------------------------------------------
                                                       Limits           
            Lot size               Sample  -----------------------------
                                    size    Satisfactory  Unsatisfactory
------------------------------------------------------------------------
1-17...........................        All            0              1  
18-50..........................         17            0              1  
51-90..........................         31            1              2  
91-150.........................         44            2              3  
Over 150.......................         65            3              4  
------------------------------------------------------------------------


                                                                      Table 1845-2B                                                                     
                                                                  Double Sampling Plan                                                                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   Accept if            
                                                                                                                                    sum of     Reject if
                                                                      Accept if   Reject if                                       defects in    sum of  
                                                                     defects in  defects in   Continue with Sample 2 if   Sample   Samples 1  defects in
               Lot range                        Sample size 1         Sample 1    Sample 1     defects in Sample 1 are    size 2     and 2     Samples 1
                                                                         are         are                                           equals or     and 2  
                                                                                                                                    is less    equals or
                                                                                                                                     than       exceeds 
--------------------------------------------------------------------------------------------------------------------------------------------------------
1-18...................................  All.......................           0           1  ..........................  .......  ..........  ..........
19-50..................................  19........................           0           1  ..........................  .......  ..........  ..........
51-90..................................  21........................           0           2  1.........................       21           1           2
91-150.................................  25........................           0           3  1 or 2....................       25           2           3
151-400................................  32........................           0           4  1, 2, or 3................       32           3           4
401-10,000.............................  34........................           0           4  1, 2, or 3................       34           3           4
10,001-35,000..........................  40........................           0           5  1, 2, 3, or 4.............       40           4           5
35,001-100,000.........................  46........................           0           6  1, 2, 3, 4, or 5..........       46           5           6
100,000+...............................  52........................           0           7  1, 2, 3, 4, 5, or 6.......       52           6           7
--------------------------------------------------------------------------------------------------------------------------------------------------------


[54 FR 28308, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 58 
FR 51141, Sept. 30, 1993; 60 FR 16063, Mar. 29, 1995]



PART 1846--QUALITY ASSURANCE--Table of Contents




              Subpart 1846.2--Contract Quality Requirements

Sec.
1846.270  Contract clauses for space flight-related operations.

          Subpart 1846.4--Government Contract Quality Assurance

1846.470  Solicitation provision and contract clauses.
1846.470-1  Solicitation provision.
1846.470-2  Contract clauses.

        Subpart 1846.6--Material Inspection and Receiving Reports

1846.670  Introduction.
1846.670-1  General.

[[Page 390]]

1846.670-2  Applicability.
1846.670-3  Use.
1846.670-4  Application.
1846.670-5  Forms.
1846.671  Procurement quality assurance on shipments between 
          contractors.
1846.672  Preparing DD Forms 250 and 250c.
1846.672-1  Preparation instructions.
1846.672-2  Consolidated shipments.
1846.672-3  Correction instructions.
1846.672-4  Invoice instructions.
1846.672-5  Packing-list instructions.
1846.672-6   Receiving instructions.
1846.673  Distribution of DD Forms 250 and 250c.
1846.674  Contract clause.

                       Subpart 1846.7--Warranties

1846.703  Criteria for use of warranties.
1846.703-70  Additional criteria.
1846.704  Authority for use of warranties.
1846.709  Warranties of commercial items.
1846.709-70  Limitation.
1846.770  Administration.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28330, July 5, 1989, unless otherwise noted.



              Subpart 1846.2--Contract Quality Requirements



Sec. 1846.270  Contract clauses for space flight-related operations.

    (a) The contracting officer shall insert the clause at 1852.246-70, 
Mission Critical Space Systems Personnel Reliability Program, in 
solicitations and contracts involving critical positions in accordance 
with NASA Management Instruction 8610.13. The clause, however, shall not 
be used in procurements for flight crew members or payload specialists 
when these individuals are covered by other NASA Management Instructions 
that have screening requirements equivalent to those in NMI 8610.13, 
Mission Critical Space Systems Personnel Reliability Program (for 
example, NMI 7100.16, Payload Specialists for Space Transportation 
System (STS) Missions).
    (b) The contracting officer shall insert the clause at 1852.246-73, 
Manned Space Flight Item, in solicitations and contracts for manned 
space flight hardware and flight-related equipment where it has been 
determined by the technical requirements initiator that the highest 
available quality standards are necessary to ensure astronaut safety.

[54 FR 28330, July 5, 1989, as amended at 56 FR 12459, Mar. 26, 1991; 59 
FR 12198, Mar. 16, 1994]



          Subpart 1846.4--Government Contract Quality Assurance

    Source: 55 FR 27089, June 29, 1990, unless otherwise noted.
1846.470  Solicitation provision and contract clauses.



Sec. 1846.470-1  Solicitation provision.

    The contracting officer shall consider inserting in solicitations 
the provision at 1852.246-74, Requirement for Quality and Productivity 
Improvement (Q/PI) Plan, when in the judgment of the contracting officer 
and the program manager, a Q/PI plan would be meaningful and 
appropriate, and the estimated cost of the contract will be more than 
$2.5 million, annually. The proposed Q/PI plan shall be evaluated under 
Other Considerations. Fee associated with a Q/PI plan shall not be 
considered an amount over the total fee negotiated for the contract and 
shall not, when combined with fee considerations, exceed the limitations 
prescribed in FAR 15.903(d)(1).

[55 FR 27089, June 29, 1990, as amended at 60 FR 40519, Aug. 9, 1995]



Sec. 1846.470-2  Contract clauses.

    (a) The contracting officer may insert a clause substantially as 
stated at 1852.246-71, Government Contract Quality Assurance Functions, 
in solicitations and contracts. Insert the items involving quality 
assurance, the applicable functions (e.g., preliminary inspection, final 
inspection, acceptance), and the place(s) of performance appropriate for 
the particular procurement. See FAR 46.401.
    (b) The contracting officer shall insert the clause at 1852.246-75, 
Quality and Productivity Improvement Plan, in all solicitations 
containing the provision at 1852.246-74, Requirement for Quality and 
Productivity Improvement Plan, and in resulting contracts.

[55 FR 27089, June 29, 1990, as amended at 60 FR 40519, Aug. 9, 1995]

[[Page 391]]



        Subpart 1846.6--Material Inspection and Receiving Reports

1846.670  Introduction.



Sec. 1846.670-1  General.

    (a) This subpart contains procedures and instructions for use of the 
Material Inspection and Receiving Report (MIRR) (DD Form 250 series) and 
suppliers' commercial shipping/packing lists used to evidence Government 
procurement quality assurance (PQA).
    (b) MIRRs are used by receiving, status control, technical, 
contracting, inventory control, requisitioning, and paying activities to 
document PQA, acceptance of supplies and services, and shipments. MIRR's 
are not required to be used for--
    (1) Shipments by subcontractors not made to the Government;
    (2) Shipment of contractor inventory (see FAR 45.601); or
    (3) Movement of Government property unless for original acquisition.
    (c) To preclude delays in shipments or payments and avoid multiple 
corrections, contractors are encouraged to consult the Government 
representative regarding implementation of this subpart.

[54 FR 28330, July 5, 1989, as amended at 60 FR 40519, Aug. 9, 1995]



Sec. 1846.670-2  Applicability.

    (a) This subpart applies to all deliveries of supplies or services 
procured by or for NASA except--
    (1) Procurements effected under FAR part 13;
    (2) Negotiated subsistence procurements;
    (3) Contracts for which the end item is a technical or scientific 
report.
    (b) When NASA provides PQA and/or acceptance services for non-NASA 
activities, the MIRR shall be prepared in accordance with the 
instructions of this subpart unless the contract specifies otherwise.

[54 FR 28330, July 5, 1989, as amended at 60 FR 40519, Aug. 9, 1995]



Sec. 1846.670-3  Use.

    The DD Form 250 is a multipurpose report used for--
    (a) PQA--to provide evidence of PQA at origin or destination;
    (b) Acceptance--to provide evidence of acceptance at origin or 
destination;
    (c) Packing list;
    (d) Receiving;
    (e) Shipping;
    (f) Contractor invoice;
    (g) Contractor invoice support; and
    (h) Contractor internal use.



Sec. 1846.670-4  Application.

    (a) The DD Form 250 shall be used for delivery of contract line, 
contract subline, exhibit line, or exhibit subline items.
    (b) If the ``shipped to,'' ``marked for,'' ``shipped from,'' 
``PQA,'' and ``acceptance'' data are the same for more than one shipment 
made on the same day under the same contract, one MIRR shall be prepared 
to cover all such shipments, except that, if the volume of the shipments 
precludes the use of a single car, truck, or other vehicle, either a 
copy of the single MIRR or a separate MIRR shall be provided for each 
vehicle.
    (c) The DD Form 250 may be used for imprest fund purchases, purchase 
orders, delivery orders placed against Federal Supply Schedule 
contracts, delivery orders placed against indefinite-delivery contracts, 
or delivery orders placed against blanket purchase agreements, or when 
the purchasing, requisitioning, or ordering document provides for 
inspection and/or acceptance.

[54 FR 28330, July 5, 1989, as amended at 60 FR 40519, Aug. 9, 1995]



Sec. 1846.670-5  Forms.

    (a) Contractors may obtain from the contracting office at no cost 
MIRR forms required on Government contracts.
    (b) Contractors may print forms, provided
    (1) Their format and dimensions are identical to the MIRR forms 
printed by the Government and
    (2) The forms provide for 78 characters per printed image 
horizontally and 62 lines vertically border-to-border for the DD Form 
250 and 61 lines vertically border-to-border for the DD Form 250c.

[60 FR 40519, Aug. 9, 1995]

[[Page 392]]



Sec. 1846.671  Procurement quality assurance on shipments between contractors.

    (a) The supplier's commercial shipping document/packing list shall 
indicate performance of required PQA actions at subcontract level. The 
following entries shall be made on the document/packing list:

    Required PQA of items has been performed.
    Date: (Signature of Authorized Government Representative) (Typed 
Name and Office)

    (b) Distribution for Government purposes shall be one copy--
    (1) With shipment;
    (2) For the Government representative at consignee (via mail); and
    (3) For the Government representative at consignor.

[54 FR 28330, July 5, 1989, as amended at 60 FR 40520, Aug. 9, 1995]
1846.672  Preparing DD Forms 250 and 250c.



Sec. 1846.672-1  Preparation instructions.

    DD Form 250, Material Inspection and Receiving Report (MIRR), and DD 
Form 250c, Material Inspection and Receiving Report--Continuation Sheet, 
shall be prepared as follows:
    (a) General. (1) The date, when required, shall utilize seven spaces 
consisting of the last two digits of the year, three-alpha month 
abbreviation, and two digits for the day (e.g., 87SEP24).
    (2) The address, when required, shall consist of the name, street 
address/P.O. box, city, State, and ZIP code.
    (3) When the DD Form 250c is used, the data entered in the blocks at 
the top of the form shall be identical to the comparable entries in 
Blocks 1, 2, 3, and 6 of the DD Form 250.
    (4) Overflow data of the DD Form 250 shall be entered in Block 16 or 
in the body of the DD Form 250c with block cross reference. Additional 
DD Form 250c sheets solely for continuation of Block 23 data shall not 
be numbered or distributed as part of the MIRR.
    (b) Classified information. Classified information shall not appear 
on the MIRR, nor shall the MIRR be classified.
    (c) Block 1--PROC. INSTRUMENT IDEN. (CONTRACT).
    (1) Enter the contract number as contained in the contractual 
document, including any call/order number.
    (2) Enter the name of the contracting office immediately below the 
contract number. This requirement may be satisfied by including the 
prefix in the contract number to identify the contracting office.
    (d) Block 2--SHIPMENT NO.
    (1) The shipment number is a three-alpha-character prefix and a 
four-character numeric or alpha-numeric serial number.
    (i) The prefix shall be controlled and assigned by the prime 
contractor and shall consist of three alpha characters for each 
``shipped from'' address (Block 11).
    (ii) The first shipment under a prime contract from each ``shipped 
from'' address shall be numbered 0001; subsequent shipments under that 
prime contract shall be consecutively numbered.
    (A) Alpha-numerics shall be used when more than 9,999 numbers are 
required. Alpha-numerics shall be serially assigned, with the alpha in 
the first position, followed by the three-position numeric serial 
number. The alpha-numeric sequence shall be (the letters I and O shall 
not be used) A001 through A999 (10,001 through 10,999); B001 through 
B999 (11,001 through 11,999); to Z999.
     (B) When this series is completely used, numbering shall revert to 
0001.
    (2) The shipment number of the initial shipment shall be reassigned 
when a ``replacement shipment'' is involved (see paragraph (r)(2)(iv) of 
this section).
    (3) The prime contractor shall control deliveries and on the last 
shipment of the contract shall suffix the shipment number with a ``Z'' 
in addition to that required for line items (see Block 17). If the 
contract final shipment is from other than the prime contractor's plant, 
the prime contractor may elect:
    (i) To direct the subcontractor to suffix the ``Z'' or, on receipt 
of the subcontractor final shipment information,
    (ii) To correct the DD Form 250 covering the last shipment from the 
prime contractor's plant by adding a ``Z'' to that shipment number.

[[Page 393]]

    (e) Block 3--DATE SHIPPED. Enter the date the shipment is released 
to the carrier or the date of completion of services. If the shipment 
will be released after the date of PQA and/or acceptance, enter the 
estimated date of release. When the date is estimated, enter an ``E'' 
after it. Distribution of the MIRR shall not be delayed for entry of the 
actual shipping date. Reissuance of the MIRR is not required to show the 
actual shipping date.
    (f) Block 4--B/L TCN. When applicable, enter--
    (1) The commercial or Government bill of lading number after ``B/
L''; and
    (2) The Transportation Control Number after ``TCN.''
    (g) Block 5--DISCOUNT TERMS. The discount, in terms of percentages 
and corresponding days allowed, shall be entered as described below:
    (1) The contractor may enter the discount terms on all copies of the 
MIRR.
    (2) When the MIRR is used as an invoice, see 1846.672-4.
    (h) Block 6--INVOICE. Enter the invoice number and date as described 
below:
    (1) The contractor may enter the invoice number and date on all 
copies of the MIRR.
    (2) When the MIRR is used as an invoice, see 1846.672-4.
    (i) Block 7--PAGE/OF. Consecutively number the pages comprising the 
MIRR. On each page, enter the total number of pages of the MIRR.
    (j) Block 8--ACCEPTANCE POINT. Enter an ``S'' for origin or ``D'' 
for destination as specified in the contract as the point of acceptance. 
Enter an alphabetic ``O'' for other if the point of acceptance is not 
specified in the contract.
    (k) Block 9--PRIME CONTRACTOR. Enter the address.
    (l) Block 10--ADMINISTERED BY. Enter the address of the contracting 
office cited in the contract.
    (m) Block 11--SHIPPED FROM/CODE/FOB.
    (1) Enter the code and address of the ``shipped from'' location. If 
identical to Block 9, enter ``See Block 9.''
    (2) For performance of services line items that do not require 
delivery of items upon completion of services, enter the code and 
address of the location at which the services were performed. If the DD 
Form 250 covers performance at multiple locations or if identical to 
Block 9, enter ``See Block 9.''
    (3) Enter on the same line and to the right of ``FOB'' an ``S'' for 
origin or ``D'' for destination as specified in the contract. Enter an 
alphabetic ``O'' if the FOB point cited in the contract is other than 
origin or destination.
    (n) Block 12--PAYMENT WILL BE MADE BY. Enter the address of the 
payment office cited in the contract.
    (o) Block 13--SHIPPED TO. Enter the address of the consignee as 
contained in the contract or shipping instructions.
    (p) Block 14--MARKED FOR. Enter the ``mark for'' address and/or 
other designation as contained in the contract or shipping instructions.
    (q) Block 15--ITEM NO. Enter the contract line, contract subline, 
exhibit line, or exhibit subline item identification as set forth in the 
contract. If four or fewer digits are used, position them to the left of 
the vertical dashed line. Where a six-digit identification is used, 
enter the last two digits to the right of the vertical dashed line.
    (r) Block 16--STOCK/PART NO./ DESCRIPTION.
    (1) Enter, as applicable, for each line item, using single spacing 
between each line item, the following:
    (i) The Federal Stock Number (FSN) or noncatalog number and, if 
applicable, prefix or suffix. When a number is not provided or it is 
necessary to supplement the number, include other identification, e.g., 
manufacturer's name or Federal Supply Code, as published in Cataloging 
Handbook H4-1, and part numbers. Additional part numbers may be shown in 
parentheses. Also enter the descriptive noun of the item nomenclature 
and, if provided, the Government-assigned management/material control 
code. In the case of equal-kind supply items, the first entry shall be 
the description without regard to kind; e.g., ``Resistor''. Below this 
description, enter the contract line item number in Block 15 and stock/
part number followed by the size or type in Block 16.

[[Page 394]]

    (ii) On the next printing line, if required by the contract for 
control purposes, enter the make, model, serial number, lot, batch, 
hazard indicator, and/or similar description.
    (iii) On the next printing line, enter the FEDSTRIP requisition 
number(s) when provided in the contract or shipping instructions.
    (2) In addition to the entries required above, enter on the next 
line the following as appropriate (when applicable to all line item 
numbers identified in the MIRR, enter data only once, after the last 
line item entry. Entries may be extended through Block 20):
    (i) Enter in capital letters any special handling instructions/
limits for material environmental control; e.g., temperature, humidity, 
aging, freezing, and shock.
    (ii) When an FSN is required by, but not cited in, a contract and 
has not been furnished by the Government, shipment may be made at the 
direction of the contracting officer. Enter the authority for the 
shipment.
    (iii) When Government-furnished property (GFP) is included with or 
incorporated into the line item, enter ``GFP''.
    (iv) When the shipment consists of replacements for supplies 
previously furnished, enter in capital letters ``REPLACEMENT SHIPMENT'' 
(see subparagraph (s)(3) of this section for replacement indicators.)
    (v) For items shipped with missing components, enter and complete 
the following: ``Item(s) shipped short of the following component(s): 
FSN or comparable identification ______, Quantity ______, Estimated 
Value ________, Authority ________.''
    (vi) When shipment is made of components that were short on a prior 
shipment, enter and complete the following: ``These components were 
listed as shortages on Shipment Number ______, date shipped 
__________.''
    (vii) When shipments involve drums, cylinders, reels, containers, 
skids, etc., designated as returnable under contract provisions, enter 
and complete the following: ``Return to ______________, Quantity ______, 
Item ________, Ownership (Government/contractor).''
    (viii) Enter shipping container number(s), the type, and the total 
number of the shipping container(s) included in the shipment.
    (ix) The MIRR shall be used to record and report the waivers and 
deviations from contract specifications, including the source and 
authority for the waiver or deviation (e.g., the contracting office 
authorizing the waiver or deviation and the identification of the 
authorizing document).
    (x) For shipments involving discount terms, enter ``DISCOUNT 
EXPEDITE'' in at least one-inch outline-type letters.
    (xi) When test/evaluation results are a condition of acceptance and 
are not available before shipment, the following note shall be entered 
if the shipment is approved by the contracting officer:

    Note: Acceptance and payment are contingent upon receipt of approved 
test/evaluation results.

The contracting officer shall advise (A) the consignee of the results 
(approval/disapproval) and (B) the contractor to withhold invoicing 
pending attachment to its invoice of the approved test/evaluation 
results.
    (xii) The copy of the DD Form 250 required to support payment for 
destination acceptance (top copy of the four with shipment) or 
Alternative Release Procedure (ARP) origin acceptance (additional copy 
furnished to the Quality Assurance Representative (QAR)) shall be 
identified by entering ``PAYMENT COPY'' approximately one-half-inch 
outline-type letters with ``FORWARD TO BLOCK 12 ADDRESS'' in 
approximately one-quarter-inch letters immediately below. Do not 
obliterate any other entries.
    (xiii) A double line shall be drawn completely across the form 
following the last entry.
    (s) Block 17--QUANTITY SHIP/REC'D.
    (1) Enter the quantity shipped, using the unit of measure indicated 
in the contract for payment. When a second unit of measure is used for 
purposes other than payment, enter the appropriate quantity directly 
below in parentheses.
    (2) Enter a ``Z'' below the first digit of the quantity when--

[[Page 395]]

    (i) The total quantity of the line item is delivered, including 
variations within contract terms; and
    (ii) All shortages on items previously shipped short are delivered.
    (3) If a replacement shipment is involved, enter below the first 
digit of the quantity the letter ``A'' to designate first replacement, 
``B'' for second replacement, and so forth. The final shipment indicator 
``Z'' shall not be used when a final line item shipment is replaced.
    (t) Block 18--UNIT. Enter the abbreviation of the unit of measure 
indicated in the contract for payment. When a second unit of measure is 
indicated in the contract for purposes other than payment or is used for 
shipping purposes, enter the abbreviation of the second unit of measure 
directly below in parentheses. Authorized abbreviations are listed in 
MIL-STD-129, Marketing and Storage.
    (u) Block 19--UNIT PRICE. Enter the unit price on all NASA copies 
whenever the MIRR is used for voucher or receiving purposes.
    (v) Block 20--AMOUNT. Enter the extended amount when the unit price 
is entered in Block 19.
    (w) Block 21--PROCUREMENT QUALITY ASSURANCE. The words ``conform to 
contract'' contained in the printed statements in Blocks A and B relate 
to contract obligations pertaining to quality and to the quantity of the 
items on the report. The statements shall not be modified. Notes taking 
exception shall be entered in Block 16 or on attached supporting 
documents with block cross reference. The statements shall not be 
modified. Notes taking exception shall be entered in Block 16 or on 
attached supporting documents with appropriate block cross reference.
    (1) ``A. ORIGIN.''
    (i) The authorized Government representative shall--
    (A) Place an ``X'' when applicable in the appropriate PQA and/or 
acceptance box(es) to evidence origin PQA and/or acceptance (when the 
contract requires PQA at destination in addition to origin PQA, an 
asterisk shall be entered at the end of the statement and an explanatory 
note in Block 16);
    (B) Enter the date of signature;
    (C) Sign; and
    (D) Enter the typed, stamped, or printed name of the signer and 
office code.
    (2) ``B. DESTINATION.''
    (i) When acceptance at origin is indicated in Block 21A, no entries 
shall be made in Block 21B.
    (ii) When PQA and acceptance or acceptance is at destination, the 
authorized Government representative shall--
    (A) Place an ``X'' in the appropriate box(es);
    (B) Enter the date of signature;
    (C) Sign; and
    (D) Enter typed, stamped, or printed name and title.
    (x) Block 22--RECEIVER'S USE. This block shall be used by the 
receiving activity (Government or contractor) to denote receipt, 
quantity, and condition. The receiving activity shall enter in this 
block the date the supplies arrived; when off-loading or in-checking 
occurs subsequent to the day of arrival of the carrier at the 
installation, the date of the carrier's arrival is the date received for 
purposes of this block.
    (y) Block 23--CONTRACTOR USE ONLY. This block is provided and 
reserved for contractor use.

[54 FR 28330, July 5, 1989, as amended at 60 FR 40520, Aug. 9, 1995]



Sec. 1846.672-2  Consolidated shipments.

    When individual shipments are held at the contractor's plant for 
authorized transportation consolidation to a single destination on a 
single bill of lading, the applicable DD Forms 250 may be prepared at 
the time of PQA or acceptance prior to the time of actual shipment (see 
Block 3).



Sec. 1846.672-3  Correction instructions.

    When, because of errors or omissions, it is necessary to correct the 
MIRR after distribution, it shall be revised by correcting the original 
master and distributing the corrected form. The corrections shall be 
made as follows:
    (a) Circle the error and place the corrected information in the same 
block. If space is limited, enter the corrected information in Block 16, 
referencing the error page and block.
    (b) The words ``CORRECTIONS HAVE BEEN VERIFIED'' shall be entered on 
page 1. The authorized Government

[[Page 396]]

representative shall date and sign immediately below the statement.
    (c) MIRR's shall not be corrected for Block 19 and 20 entries.
    (d) Pages of the MIRR requiring correction shall be clearly marked 
``CORRECTED COPY'', avoiding obliteration of any other entries. Even 
though corrections are made on continuation sheets only, page 1 shall 
also be marked ``CORRECTED COPY''.
    (e) Page 1 and only those continuation pages marked ``CORRECTED 
COPY'' shall be distributed to the initial distribution. A complete MIRR 
with corrections shall be distributed to new addressee(s) created by 
error corrections.

[54 FR 28330, July 5, 1989, as amended at 60 FR 40520, Aug. 9, 1995]



Sec. 1846.672-4  Invoice instructions.

    Contractors are encouraged to use copies of the MIRR as an invoice 
in lieu of a commercial form, but are not required to do so. When the 
MIRR is used as an invoice, four copies shall be prepared and forwarded 
to the payment office as follows:
    (a) Complete Blocks 5, 6, 19, and 20.
    (b) Mark, in letters approximately one inch high, the first copy 
``ORIGINAL INVOICE'' and the remaining three copies ``INVOICE COPY''.
    (c) Forward the four copies to the payment office (Block 12 
address).



Sec. 1846.672-5  Packing-list instructions.

    Copies of the MIRR may be used as a packing list. The packing list 
copies shall be in addition to the copies of the MIRR required for 
distribution (see 1846.673) and shall be marked ``PACKING LIST''.

[60 FR 40520, Aug. 9, 1995]



Sec. 1846.672-6  Receiving instructions.

    When the MIRR is used for receiving purposes, procedures shall be as 
prescribed by local directives. If PQA and acceptance or acceptance of 
supplies is required upon arrival at destination, see Block 21B for 
instructions.



Sec. 1846.673  Distribution of DD Forms 250 and 250c.

    (a) DD Forms 250 and 250c shall be distributed in accordance with 
the procedures prescribed by the installation.
    (b) The contractor is responsible for distributing DD Forms 250 and 
250c in accordance with the provisions of the contract or instructions 
of the contracting officer.



Sec. 1846.674  Contract clause.

    The contracting officer shall insert the clause at 1852.246-72, 
Material Inspection and Receiving Report, in solicitations and 
contracts, except those using small purchase procedures or where the 
only deliverable items are technical or scientific reports. Insert the 
number of copies to be prepared. Paragraph (a) may be changed to specify 
advance copies or separate distribution of the DD Form 250.



                       Subpart 1846.7--Warranties

1846.703  Criteria for use of warranties.



Sec. 1846.703-70  Additional criteria.

    In deciding whether to use a warranty clause, at least the following 
factors shall be considered in addition to those at FAR 46.703:
    (a) Cost of correction or replacement, either by the contractor or 
by another source, in the absence of a warranty.
    (b) The warranty as a deterrent against the furnishing of defective 
or nonconforming supplies.
    (c) Whether the contractor's quality program is reliable enough to 
provide adequate protection without a warranty, or, if not, whether a 
warranty would cause the contractor to institute an effective quality 
program.
    (d) Reliance on ``brand-name'' integrity.
    (e) Whether a warranty is regularly given for a commercial component 
of a more complex end item.

[54 FR 28330, July 5, 1989, as amended at 60 FR 40520, Aug. 9, 1995]

[[Page 397]]



Sec. 1846.704  Authority for use of warranties.

    (a) A warranty clause shall be used when it is found to be in the 
best interests of the Government, after an analysis of the factors 
listed in 1846.703-70 and FAR 46.703.
    (b) Except for the warranty clause for commercial items covered in 
FAR 46.709 and FAR 46.710(a)(2), and warranties contained in Federal, 
military, or construction specifications, the decision to use a warranty 
clause or to include a warranty provision in a specification other than 
a Federal, military, or construction specification shall be made only 
upon the written authorization of the procurement officer or a designee. 
This decision may be made either for individual procurements or for 
classes of procurements.
    (c) Warranties required by applicable architect-engineer 
specifications shall be included in construction contracts.
1846.709  Warranties of commercial items.



Sec. 1846.709-70  Limitation.

    In procurements involving a commercial item of supply or service or 
construction, the contracting officer may include in the solicitation 
and contract a warranty clause that is standard or customary in the 
trade, or that is substantially similar to and not in excess of a 
standard or customary trade warranty, but only if the contracting 
officer, after reviewing the factors listed in 1846.703-70 and FAR 
46.703, decides that inclusion of such a clause is in the Government's 
best interest.



Sec. 1846.770  Administration.

    When the contracting officer is notified of a defect in warranted 
items, the contracting officer should ascertain whether the warranty is 
currently in effect and ensure that the contractor is given proper and 
timely notice of the defect.



PART 1847--TRANSPORTATION--Table of Contents




   Subpart 1847.2--Contracts for Transportation or for Transportation-
                            Related Services

Sec.
1847.200  Scope of subpart.
1847.200-70  Charter of aircraft.

           Subpart 1847.3--Transportation in Supply Contracts

1847.304  Determination of delivery terms.
1847.304-3  Shipments from CONUS for overseas delivery.
1847.304-370  NASA export privilege.
1847.305  Solicitation provisions, contract clauses, and transportation 
          factors.
1847.305-10  Packing, marking, and consignment instructions.
1847.305-13  Transit arrangements.
1847.305-70  NASA contract clauses.

        Subpart 1847.5--Ocean Transportation by U.S.-Flag Vessels

1847.506  Procedures.
1847.506-70  Compliance with the Cargo Preference Act.
1847.507  Contract clauses.

           Subpart 1847.70-- Protection of the Florida Manatee

1847.7001  Contract clause.

    Authority: 42 U.S.C. 2473 (c)(1).

    Source: 54 FR 28334, July 5, 1989, unless otherwise noted.



   Subpart 1847.2--Contracts for Transportation or for Transportation-
                            Related Services

1847.200  Scope of subpart.



Sec. 1847.200-70  Charter of aircraft.

    When procuring aircraft by charter, contracting officers shall 
comply with NHB 7900.3, Aircraft Operations Management Manual.

[59 FR 12199, Mar. 16, 1994]



           Subpart 1847.3--Transportation in Supply Contracts

1847.304  Determination of delivery terms.
1847.304-3  Shipments from CONUS for overseas delivery.



Sec. 1847.304-370  NASA export privilege.

    NASA has certain export licensing privileges for moving commodities 
to foreign destinations. Advice should be obtained from the 
transportation officer in order to make full use of these privileges.

[[Page 398]]

1847.305  Solicitation provisions, contract clauses, and transportation 
factors.



Sec. 1847.305-10  Packing, marking, and consignment instructions.

    In contracts providing for delivery f.o.b. origin and shipment under 
Government bills of lading, consignment instructions may be limited to 
the mail address of the consignee (receiving activity), provided the 
contract instructions state: ``Shipment other than mail shall be 
consigned as indicated on the Government bill of lading furnished to the 
contractor.'' Various receiving activities may have different 
consignment points for the various transportation media or for 
particular carriers within a medium, depending on the weight, shape, 
size, or nature of the shipment involved.



Sec. 1847.305-13  Transit arrangements.

    (a) When the provision at FAR 52.247-56 is used, the solicitation 
shall state that offers will be evaluated on the basis of the lowest 
overall cost to the Government, including transportation costs to NASA 
from point of origin to final destination, taking into account any 
applicable transit privileges.
    (b) If the nature of the procurement is such that carload or 
truckload shipments might be made by the contractor from one point (such 
as a subcontractor's plant) to another for processing or fabrication and 
delivery to the Government, solicitations shall require the contractor 
to furnish information that will enable the Government to benefit from 
any transit privilege that might apply in shipment to final destination.



Sec. 1847.305-70  NASA contract clauses.

    (a) The contracting officer shall insert the clause at 1852.247-70, 
Returnable Containers, in contracts involving the purchase of gas or 
other supplies in contractor-furnished returnable, reusable containers, 
if the contractor retains title to the containers.
    (b) The contracting officer may insert a clause substantially as 
stated at 1852.247-72, Advance Notice of Shipment, in solicitations and 
contracts when the f.o.b. point is destination and special Government 
assistance is required in the delivery or receipt of the items. Insert 
the number of work days prior to shipment that advance notice is 
required, the items to be shipped, and the individual(s) to receive 
notification.
    (c) The contracting officer may insert a clause substantially as 
stated at 1852.247-73, Shipment by Government Bills of Lading, in f.o.b. 
origin solicitations and contracts. Insert the name, title, mailing 
address, and telephone number of the designated transportation officer 
or other official delegated responsibility for GBLs.



        Subpart 1847.5--Ocean Transportation by U.S.-Flag Vessels

1847.506  Procedures.



Sec. 1847.506-70  Compliance with the Cargo Preference Act.

    (a) The transportation officer in each field installation shall 
establish and maintain a register to reflect adherence to the Cargo 
Preference Act. The register shall contain data related to shipments 
made by the installation and by NASA contractors. Where no 
transportation officer is available, it shall be maintained by the 
contracting office. The register shall contain pertinent details of 
ocean shipments, including, but not limited to, the ports of origin and 
destination of shipments, commodity descriptions, and gross weight, 
freight revenue, name of vessel, operator of vessel, and date of 
loading. The register shall be maintained current and organized so that 
adherence to the Cargo Preference Act can be ascertained at all times. 
Insofar as is practicable, compliance with the 50-percent minimum 
requirements of the Cargo Preference Act shall be maintained on a 
quarter-year basis; any deficiencies in maintaining compliance shall be 
corrected by the end of the calendar year.
    (b) On the basis of the registers maintained under paragraph (a) of 
this section, quarterly reports reflecting ocean shipments shall be 
submitted to the Division of National Cargo, Office of Market 
Development, Maritime Administration, Department of Transportation, 
Washington, DC, 20590 (see FAR 47.506(d)). Negative reports are required

[[Page 399]]

when applicable. Reports shall be made by the transportation officers 
and contracting officers responsible for maintaining the registers.



Sec. 1847.507  Contract clauses.

    The clause at FAR 52.247-64 shall be used as prescribed in FAR 
47.507. When it is used, it shall be used with the appropriate 
alternate.



           Subpart 1847.70--Protection of the Florida Manatee



Sec. 1847.7001  Contract clause.

    The contracting officer shall insert the clause at 1852.247-71, 
Protection of the Florida Manatee, in solicitations and contracts when 
deliveries or vessel operations, dockside work, or disassembly functions 
under the contract will involve use of waterways inhabited by manatees 
(endangered marine mammals). The clause shall be included also in 
applicable subcontracts (including vendor deliveries).



PART 1848--VALUE ENGINEERING--Table of Contents




                 Subpart 1848.1--Policies and Procedures

Sec.
1848.102  Policies.
1848.103  Processing value engineering change proposals.
1848.104  Sharing arrangements.
1848-104-2  Sharing collateral savings.

                    Subpart 1848.2--Contract Clauses

1848.201  Clauses for supply or service contracts.
1848.201-70  NASA conditions.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28335, July 5, 1989, unless otherwise noted.



                 Subpart 1848.1--Policies and Procedures



Sec. 1848.102  Policies.

    (a) The exemptions permitted under FAR 48.102(a) are granted on a 
case-by-case basis, or for specific classes of contracts, by the 
Associate Administrator for Procurement.
    (b) Profit or fee shall be excluded when calculating instant or 
future contract savings, except that in calculating instant or future 
contract savings on firm-fixed-price contracts when the parties have not 
set out a specific figure for profit, the contracting officer shall use 
the total contract price as the basis for calculating the savings.
    (c) The FAR requires agencies to establish procedures for funding 
and payment of the contractor's share of collateral savings and future 
contract savings. Therefore, the contracting officer shall notify the 
responsible technical official of the potential for awarding the 
contractor future or collateral savings if the submitted value 
engineering change proposal (VECP) is accepted. (See 1848.103.) Upon 
acceptance, the contracting officer shall obtain the concurrence of the 
program office and amend the instant contract to reflect payment of 
future or collateral savings.



Sec. 1848.103  Processing value engineering change proposals.

    Upon receipt of a VECP, the contracting officer shall promptly 
forward it to the technical officer responsible for the contract, 
indicating--
    (a) The date the VECP was received;
    (b) The date by which the contractor must be informed of the 
Government's acceptance or rejection of the VECP unless additional time 
is required for evaluation;
    (c) The date by which the contracting officer must know of the 
technical officer's decision in order to timely accept or reject the 
VECP;
    (d) The need for information required to inform the contractor if 
the VECP is to be rejected or if additional time is needed for 
evaluating the VECP;
    (e) The potential for awarding concurrent, future, or collateral 
savings to the contractor if the VECP is accepted;
    (f) That if the VECP is accepted, precise information will be needed 
with regard to the type of savings, Government costs, etc., that can be 
expected from its acceptance;
    (g) The need for a procurement request setting forth the 
specification changes to be used in any contract modification accepting 
the VECP in whole or in part; and
    (h) The need for additional funds if acceptance of the VECP results 
in negative instant contract savings.

[[Page 400]]

1848.104  Sharing arrangements.



Sec. 1848.104-2  Sharing collateral savings.

    The contracting officer may make the determination that the cost of 
calculating and tracking collateral savings will exceed the benefits to 
be derived.



                    Subpart 1848.2--Contract Clauses

1848.201  Clauses for supply or service contracts.



Sec. 1848.201-70  NASA conditions.

    (a) General. The Associate Administrator for Procurement may exempt 
a contract or a class of contracts from the requirements of FAR Part 48.
    (b) Value engineering incentive. Unless the chief of the contracting 
activity authorizes its inclusion, the contracting officer shall not 
include the VE incentive clause in solicitations and contracts that fall 
under the exemptions at FAR 48.201(a) (1) through (5). With respect to 
the sixth exception (FAR 48.201(a)(6)), the procurement officer may not 
authorize inclusion of a VE clause in a contract or class of contracts 
exempted by the Associate Administrator for Procurement.
    (c) Value engineering program requirement. NASA contracting officers 
shall insert the VE program requirement clause (the clause at FAR 
52.248-1 used with its Alternate I or II) in (1) initial production 
contracts for major systems and (2) major systems R&D contracts for 
full-scale development, unless the contracting officer determines that 
its use is inappropriate and documents the file to reflect that 
determination. The VE program requirement clause (FAR 52.248-1, Value 
Engineering, used with its Alternate I or II) is appropriate for an R&D 
major systems contract only if the contract specifications contain 
detailed requirements that, in the contracting officer's judgment, lend 
themselves to VE.
    (d) Research and development. The contracting officer may not insert 
either the VE incentive clause (FAR 52.248-1, Value Engineering) or the 
VE program requirement clause (FAR 52.248-1, Value Engineering, used 
with its Alternate I or II) in an R&D contract where the statement of 
work is essentially an incorporation by reference of the prospective 
contractor's proposal. If any other part of the statement of work in 
such a contract reflects a Government specification that might profit 
from or be improved by application of VE techniques, the contracting 
officer shall consider inserting the VE incentive clause (FAR 52.248-1, 
Value Engineering) or VE program requirement clause (FAR 52.248-1, Value 
Engineering, used with its Alternate I or II), to refer to that part.



PART 1849--TERMINATION OF CONTRACTS--Table of Contents




                   Subpart 1849.1--General Principles

Sec.
1849.101  Authorities and responsibilities.
1849.101-70  Appointment/delegation.
1849.101-71  Termination authority.
1849.102  Notice of termination.
1849.102-70  Prior clearance of significant contract terminations.
1849.105  Duties of termination contracting officer after issuance of 
          notice of termination.
1849.105-70  Termination docket checklist.
1849.110  Settlement negotiation memorandum.
1849.111  Review of proposed settlements.
1849.111-70  Settlement Review Boards.
1849.111-71  Required review and approval.
1849.111-72  Scope of review.
1849.111-73  Action by the Board.
1849.111-74  Subcontracts.

              Subpart 1849.5--Contract Termination Clauses

1849.505  Other termination clauses.
1849.505-70  NASA contract clause.

         Subpart 1849.6--Contract Termination Forms and Formats

1849.603  Formats for termination for convenience settlement agreements.
1849.603-70  Termination Contracting Officer's Settlement Memorandum.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28336, July 5, 1989, unless otherwise noted.

[[Page 401]]



                   Subpart 1849.1--General Principles

1849.101  Authorities and responsibilities.



Sec. 1849.101-70  Appointment/delegation.

    (a) Heads of installations shall appoint a termination contracting 
officer (TCO) (see FAR 2.101) to perform specific duties relating to 
contract termination as one of that individual's primary functions. Such 
duties should include--
    (1) Receiving and reviewing NASA Forms 1412, Termination Authority;
    (2) Reviewing the contract and related documents before issuing the 
notice of termination, to ensure protection of the Government's rights 
under the contract;
    (3) Issuing notices of termination, reinstatement, and recision to 
contractors;
    (4) Assigning termination docket control numbers;
    (5) Developing, maintaining, and managing basic controls relating to 
contract termination and settlement actions; and
    (6) Carrying out the duties, functions, and responsibilities 
described in FAR part 49 and this part 1849.
    (b) Contracting offices shall utilize the services of the Department 
of Defense and other Government agencies whenever possible to administer 
and negotiate settlement of terminated contracts. Delegation of the 
termination function shall be made in accordance with FAR subpart 42.2 
and subpart 1842.2 of this Regulation.

[54 FR 28336, July 5, 1989, as amended at 56 FR 12460, Mar. 26, 1991]



Sec. 1849.101-71  Termination authority.

    NASA Form 1412, Termination Authority, is prescribed for use by NASA 
installations when initiating action to terminate a contract for 
convenience or default. The project manager or the activity initiating 
the procurement request should initiate the action by completing NASA 
Form 1412 and submitting it to the contracting officer.
1849.102  Notice of termination.



Sec. 1849.102-70  Prior clearance of significant contract terminations.

    (a) Any information on contract termination involving a reduction in 
employment of 100 or more contractor employees must have prior NASA 
Headquarters clearance before it is released. Release of information to 
Congress or the public is the responsibility of the NASA Headquarters 
Office of Legislative Affairs (Code LB). A reduction of fewer than 100 
may be significant and, if so, should be similarly cleared.
    (b) The contracting officer shall submit the following information 
to Code LB:
    (1) Contract number.
    (2) Date of award.
    (3) Type of contract.
    (4) Name of company.
    (5) Nature of contract or end item.
    (6) Reasons for the termination.
    (7) Contract price of items terminated.
    (8) Total number of contractor employees involved, including the 
Government's estimate of the number that may be discharged.
    (9) Anticipated impact on the company and the community.
    (10) Name of the community affected.
    (11) Area labor category.
    (12) Whether contractor is large or small business.
    (13) Any known impact on disadvantaged employment programs.
    (14) Total number of subcontractors involved and the impact in this 
area, if known.
    (15) Unclassified draft of suggested press release.
    (c) After the decision has been made to terminate a contract, the 
contracting officer shall immediately request clearance to release the 
information. Pending receipt of the clearance, ``For Official Use Only'' 
handling shall be used unless classified information is involved. The 
contracting officer shall furnish copies of the request to Code LB, and 
the cognizant program office.
    (d) Code LB shall act promptly on the request (not days after 
receipt) to avoid the accrual of termination costs.

[54 FR 28336, July 5, 1989, as amended at 56 FR 8721, Mar. 1, 1991; 60 
FR 40520, Aug. 9, 1995]

[[Page 402]]

1849.105  Duties of termination contracting officer after issuance of 
notice of termination.



Sec. 1849.105-70  Termination docket check-list.

    The termination contracting officer shall complete NASA Form 1413, 
Termination Docket Checklist, to ensure adequacy of records under FAR 
49.105.



Sec. 1849.110  Settlement negotiation memorandum.

    Formats for negotiation memoranda for settlements requiring 
Settlement Review Board action appear in 1849.603-70.

54 FR 28336, July 5, 1989, as amendment at 57 FR 58725, Dec. 11, 1992]
1849.111  Review of proposed settlements.



Sec. 1849.111-70  Settlement Review Boards.

    Procurement officers at each NASA installation shall establish a 
Settlement Review Board (the Board) to review proposed settlements or 
determinations as required by 1849.111-71(a). Each Board should be 
composed of at least three qualified employees of the installation with 
broad business and contracting experience. Each Board should include a 
lawyer, an engineer or industrial specialist, and, in appropriate cases, 
an accountant. Three members of the Board shall constitute a quorum; the 
Board may act by a majority of the members present. No person may serve 
as a member of a Board in reviewing a settlement in which that member 
has participated.



Sec. 1849.111-71  Required review and approval.

    (a) When required. Before executing a settlement agreement, issuing 
a determination of the amount due under the termination clause of a 
contract, or approving or ratifying a subcontract settlement, the TCO 
shall submit it for review and approval by the Board if--
    (1) It involves $1,000,000 or more (see FAR 49.002(d));
    (2) It is limited to adjustment of the fee of a cost-reimbursement 
contract or subcontract and:
    (i) In the case of a complete termination, the fee, as adjusted, is 
$100,000 or more, or
    (ii) In the case of a partial termination, the fee, as adjusted, 
with respect to the terminated portion of the contract or subcontract is 
$50,000 or more;
    (3) The procurement officer concerned determines that a review is 
desirable; or
    (4) The TCO desires review by the Board.
    (b) Submission of information. The TCO shall submit to the Board the 
Termination Settlement Supplemental Agreement and supporting 
documentation. The documentation should include copies of:
    (1) The contractor's or subcontractor's settlement proposal,
    (2) The audit report,
    (3) Termination inventory schedules,
    (4) Consolidated SF 1424, Inventory Disposal Report,
    (5) The TCO's negotiation memorandum explaining the settlement (see 
FAR 49.110), and
    (6) The opinion of any other Board that previously reviewed the 
settlement.

The Board will prescribe the number of copies and may require the 
submission of additional information.

[54 FR 28336, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 60 
FR 40520, Aug. 9, 1995]



Sec. 1849.111-72  Scope of review.

    The function of the Board is to review the reasonableness of the 
proposed settlement agreement or determination. The Board may vary the 
scope and intensity of its review as circumstances warrant. While it is 
not intended that the Board examine in detail every element of the 
proposed settlement agreement or determination, the Board may review 
some elements to assure its overall reasonableness.

[54 FR 28336, July 5, 1989, as amended at 60 FR 40520, Aug. 9, 1995]



Sec. 1849.111-73  Action by the board.

    The Board shall submit to the TCO a written opinion approving or 
disapproving the proposed settlement agreement or determination. Failure 
of

[[Page 403]]

the Board to submit a written opinion within 30 days after submission to 
the Board of all the information required under 1849.111-71(b) shall 
operate as an approval.



Sec. 1849.111-74  Subcontracts.

    A TCO may authorize the contract administration office cognizant of 
a lower tier subcontractor to grant approval or ratification, including 
necessary Board approvals, of proposed subcontractor settlements 
described in FAR 49.108-3(c), that are first reviewed and referred by 
the prime contractor to the TCO. This procedure is not applicable to 
settlements between the contractor and its first tier subcontractors.

[54 FR 28336, July 5, 1989, as amended at 60 FR 40520, Aug. 9, 1995]



              Subpart 1849.5--Contract Termination Clauses

1849.505  Other termination clauses.



Sec. 1849.505-70  NASA contract clause.

    The contracting officer shall insert the clause at 1852.249-72, 
Termination (Utilities), in all solicitations and contracts for 
utilities services.



         Subpart 1849.6--Contract Termination Forms and Formats



Sec. 1849.603  Formats for termination for convenience settlement agreements.

    Termination contracting officers (TCOs) must use the format shown in 
1849.603-70 for the settlement memorandum (see FAR 49.110). Contractors 
and subcontractors are encouraged to use this format appropriately 
modified to cover subcontract settlements submitted for review and 
approval.



Sec. 1849.603-70  Termination contracting officer's settlement memorandum.

    (a) General information. The TCO shall include the following 
information regarding the contractor, contract, and termination notice:
    (1) Identification. TCOs shall identify the purpose and content of 
the memorandum.
    (i) The TCO shall give the name and address of the contractor and 
discuss any pertinent affiliation between prime contractors and 
subcontractors relative to the overall settlement.
    (ii) The TCO shall list the names and titles of contractor and 
Government personnel who participated in the negotiation.
    (2) Description of terminated contract. The TCO shall state the--
    (i) Date of contract;
    (ii) Contract number;
    (iii) Type of contract;
    (iv) General description of contract items;
    (v) Total contract price; and
    (vi) Applicable contract termination provisions and clause.
    (3) Termination notice. The TCO shall reference the termination 
notice and state--
    (i) The effective date of termination;
    (ii) The scope and nature of termination (complete or partial);
    (iii) The items terminated;
    (iv) The unit prices;
    (v) The total price of items terminated for fixed-price contracts or 
the estimated cost and fee applicable to items terminated for cost-
reimbursement type contracts;
    (vi) Whether the termination notice was amended and, if so, why;
    (vii) Whether the contractor stopped work on the termination 
effective date (if it did not, furnish details) and whether subcontracts 
were terminated promptly;
    (viii) Any redirection of common items and return of goods to the 
contractor's suppliers; and
    (ix) The extent of contract performance and timely deliveries by the 
contractor.
    (b) Contractor's settlement proposal. The TCO shall summarize the 
contractor's settlement proposal. The summary shall include the 
following:
    (1) Date and amount. The TCO shall identify the date and location 
where the claim was filed and its gross amount (if interim settlement 
proposals were filed, information shall be furnished for each claim).
    (2) Basis of claim. The TCO shall identify the basis of the claim, 
e.g., inventory, total cost, or other basis. The TCO shall explain any 
approvals granted in connection with submission on other than an 
inventory basis.

[[Page 404]]

    (3) Examination of proposal. The TCO shall identify the types of 
reviews made and by whom (audit, engineering, legal, or other).
    (c) Tabular summary of contractor's claim. The TCO shall summarize 
the proposed settlement in tabular form. The summary shall include the 
cost elements/items, the amounts claimed, the Government recommended 
position (including auditor and technical personnel recommendations), 
and the negotiated settlement amounts. This summary shall include, if 
appropriate, the previous reimbursed and unreimbursed costs applicable 
to the prime contractor and subcontractor, previous profit/fees paid and 
unpaid; settlement cost less disposal credit or other credits, and a 
recapitulation of previous settlements. The TCO shall expand the format 
to include field recommendations that will be considered.
    (d) Settlement summary. The TCO shall address the settlements 
reached on the following items:
    (1) Contractor's cost. See FAR 15.808(a) for format.
    (2) Profit/Fee. See FAR 15.808(a)(10).
    (3) Settlement expenses. The TCO shall discuss and summarize those 
expenses not included in the audit.
    (4) Subcontractor settlements. The TCO shall identify the number and 
dollar amount of any settlements approved by the TCO and concluded by 
the contractor under delegation of authority.
    (5) Partial payments. The TCO shall furnish the total amount of any 
partial payments.
    (6) Progress or advance payments. The TCO shall furnish the total of 
unliquidated progress or advance payments.
    (7) Claims of the Government against the contractor included in 
settlement agreement reservations. The TCO shall list any outstanding 
claims the Government has against the contractor regarding the 
terminated contract.
    (8) Assignments. The TCO shall list any assignments, identifying the 
name and address of each assignee.
    (9) Disposal credits. The TCO shall furnish information as to any 
applicable disposal credits and quantify them.
    (10) Plant clearance. The TCO shall state whether all plant 
clearance actions have been completed and all inventory sold, retained, 
or otherwise properly disposed of in accordance with applicable plant 
clearance regulations. The TCO shall discuss any unusual matters 
pertaining to plant clearance. The TCO shall attach a consolidated 
closing plant clearance report, if applicable.
    (11) Government property. The TCO shall state whether all Government 
property has been accounted for.
    (12) Special tooling. The TCO shall discuss the disposition of any 
special tooling, if applicable.
    (13) Summary of settlement. The TCO shall summarize the complete or 
partial settlement in tabular form. The summary shall include, at a 
minimum, the amount claimed and allowed for contractor and/or 
subcontractor changes, disposal, prior payment credits, and contract 
price.
    (14) Exclusions. The TCO shall describe any proposed reservation of 
rights to the Government or to the contractor.
    (e) Recommendation. The TCO shall state:
    (1) The amount of the gross settlement recommended and
    (2) That it is fair and reasonable to the Government and the 
contractor.
    (f) Signature. The TCO shall sign and date the memorandum.

[54 FR 28336, July 5, 1989, as amended at 60 FR 40520, Aug. 9, 1995]



PART 1850--EXTRAORDINARY CONTRACTUAL ACTIONS--Table of Contents




 Subpart 1850.2--Delegation of and Limitations on Exercise of Authority

Sec.
1850.202  Contract adjustment boards.

                  Subpart 1850.3--Contract Adjustments

1850.305  Processing cases.
1850.305-70  Submission of request to the Contract Adjustment Board.
1850.306  Disposition.
1850.306-70  Implementation of the Contract Adjustment Board's decision.

                     Subpart 1850.4--Residual Powers

1850.403  Special procedures for unusually hazardous or nuclear risks.
1850.403-1  Indemnification requests.
1850.403-2  Action on indemnification requests.
1850.470  Lead NASA installation.


[[Page 405]]


    Authority: 42 U.S.C. 2473 (c)(1).

    Source: 54 FR 28338, July 5, 1989, unless otherwise noted.



 Subpart 1850.2--Delegation of and Limitations on Exercise of Authority



Sec. 1850.202  Contract adjustment boards.

    NMI 1152.5, 14 CFR part 1209, subpart 3, Contract Adjustment Board, 
establishes the Contract Adjustment Board as the approving authority to 
consider and dispose of requests from NASA contractors for extraordinary 
contractual actions.

[60 FR 18033, Apr. 10, 1995]



                  Subpart 1850.3--Contract Adjustments

1850.305  Processing cases.



Sec. 1850.305-70  Submission of request to the Contract Adjustment Board.

    (a) After investigating the facts and issues relevant to the 
contractor's request, the contracting officer shall forward the request 
to the Chairman, Contract Adjustment Board (CAB), NASA Headquarters 
(Code GG), including in the forwarding letter--
    (1) The nature of the case;
    (2) The disposition recommended for the request; and,
    (3) If contractual action is recommended, the contracting officer's 
opinion that the action will facilitate the national defense.
    (b) The forwarding letter shall enclose the contractor's request, 
all supporting material submitted by the contractor, and any material 
the contracting officer has obtained while investigating the facts and 
issues relevant to the request. The forwarding letter and all enclosures 
shall be submitted in duplicate. Any classified information in the 
material forwarded shall be so identified. The CAB, acting through its 
Counsel, may further investigate the facts and issues involved to obtain 
from the contractor, the contracting officer, or others any additional 
facts and evidence, necessary to make a determination on the 
contractor's entitlement to the relief requested or to other equitable 
relief.
1850.306  Disposition.



Sec. 1850.306-70  Implementation of the Contract Adjustment Board's decision.

    (a) Copies of the CAB's decision shall be transmitted to the 
contracting officer, who shall take such action as is authorized by the 
decision. If the CAB's decision is to reject the contractor's request 
for relief, the contracting officer shall advise the contractor of that 
decision.
    (b) Except as provided in paragraph (c) of this section, immediately 
upon execution of a contract or contract modification or amendment 
implementing the CAB decision, the contracting officer shall forward two 
copies of the contractual document to the CAB Chairman, marked for the 
attention of the Counsel, for retention with the CAB's permanent files.
    (c) Contracts or contract modifications or amendments for which NASA 
Headquarters approval is otherwise required under the FAR or this 
Regulation shall be forwarded for that approval. After approval has been 
received, the contracting officer shall comply with paragraph (b) of 
this section.



                     Subpart 1850.4--Residual Powers

1850.403  Special procedures for unusually hazardous or nuclear risks.



Sec. 1850.403-1  Indemnification requests.

    In addition to the information required by 48 CFR (FAR) 50.403-1(a), 
the contractor shall provide evidence, such as a certificate of 
insurance or other customary proof of insurance, that such insurance is 
either in force or is available and will be in force during the 
indemnified period.

[60 FR 18033, Apr. 10, 1995]



Sec. 1850.403-2  Action on indemnification requests.

    (a) The Administrator will execute a Memorandum of Decision to 
approve a request to use the indemnification clause in a contract or 
group of contracts.
    (b) For contracts of five years duration or longer, in addition to 
information required to be submitted by the

[[Page 406]]

contracting officer under 48 CFR (FAR) part 50, the submission should 
include discussion and determination on whether the indemnification 
approval and insurance coverage and premiums should be reviewed for 
adequacy and continued validity at points in time within the extended 
contract period.
    (c) If a contracting officer recommends that a request for 
indemnification be approved, the required information specified in 48 
CFR (FAR) 50.403-2(a) shall be forwarded to the Associate Administrator 
for Procurement (Code HS) for review and processing to the 
Administrator. The contracting officer shall also provide a recommended 
Memorandum of Decision. This document provides the specific approval to 
include an indemnification clause in a NASA contract, or group of 
contracts. In addition to the applicable requirements of 48 CFR (FAR) 
50.306, the Memorandum of Decision shall contain the following:
    (1) The specific definition of the unusually hazardous risk to which 
the contractor is exposed in the performance of the contract(s).
    (2) A complete discussion of the contractor's financial protection 
program that the Administrator will review in order to approve the 
request for indemnification.
    (3) As appropriate, the extent to, and conditions under, which 
indemnification is being approved for subcontracts.
    (d) Before presentation to the Administrator, Code HS will obtain 
concurrences from the General Counsel, Comptroller, Associate 
Administrator for Procurement, Associate Deputy Administrator and Deputy 
Administrator, as appropriate.
    (e) Since indemnification coverage must flow through the prime 
contractor, subcontractors shall submit requests for indemnification to 
the prime contractor and through higher tier subcontractor(s), as 
applicable. If the prime contractor agrees indemnity should be flowed 
down to the subcontractor, the prime contractor shall forward its 
written request for subcontractor indemnification to the cognizant 
contracting officer for approval. The prime contractor's request shall 
provide information responsive to 1850.403-1, and 48 CFR (FAR) 50.403-1 
and 50.403-2(a) (1), (2), (4), (5) and (7). The agreed upon definition 
of the unusually hazardous risk to be incorporated into the subcontract 
shall be the same as that incorporated in the prime contract.
    (f) If the contracting officer approves indemnification of a 
subcontractor by the prime, the contracting officer shall document the 
file with a memorandum for record addressing the items set forth in 48 
CFR (FAR) 50.403-2(a). This memorandum shall address the items set forth 
in 48 CFR (FAR) 50.403-2(a) and contain an analysis of the 
subcontractor's financial protection program. In performing this 
analysis, the contracting officer shall take into consideration the 
availability, cost, terms and conditions of insurance in relation to the 
unusually hazardous risk. The contracting officer may rely on the 
analysis of the prime contractor's financial protection program in 
relation to the approval of indemnification of the prime contractor, to 
the extent this analysis is applicable.
    (g) Code HS will maintain records of each Memorandum of decision 
executed by the Administrator.

[60 FR 18033, Apr. 10, 1995]



Sec. 1850.470  Lead NASA installation.

    (a) Contractors applying for indemnification shall be responsible 
for initially determining which NASA installation has the most 
significant amount of the contractor's procurement contracts, measured 
by either dollars or numbers, related to NASA space activities rather 
than to total NASA business. The indemnification request should be 
submitted to the procurement officer for that installation, who will 
then designate a cognizant contracting officer. This determination 
should be done at the contractor's highest level necessary to prevent 
duplicate requests from associate divisions, subsidiaries, or central 
offices of the contractor. NASA reserves the right to reassign a lead 
installation for purposes of processing indemnification requests made 
under this Regulation.
    (b) Relying on the contractor's submission, the receiving 
contracting officer shall process the request using the procedures in 
FAR subpart 50.4 and this

[[Page 407]]

subpart 1850.4. The receiving installation will become the lead 
installation and will remain so indefinitely. Lead installation 
designation may change to another installation if the losing and gaining 
procurement officers agree to the change. For example, a new award may 
so substantially alter the focus of a contractor's procurement contracts 
related to space activities toward a different installation that a 
change may be appropriate. Should a change occur in the lead 
installation, all records related to indemnification of that contractor 
shall be transferred to the gaining installation.



PART 1851--USE OF GOVERNMENT SOURCES BY CONTRACTORS--Table of Contents




       Subpart 1851.1--Contractor Use of Government Supply Sources

Sec.
1851.101  Policy.
1851.102  Authorization to use Government supply sources.
1851.102-70  Contractor acquisition of filing cabinets.
1851.103  Ordering from Government supply sources.
1851.104  Furnishing assistance to contractors.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28339, July 5, 1989, unless otherwise noted.



       Subpart 1851.1--Contractor Use of Government Supply Sources



Sec. 1851.101  Policy.

    (a) NASA installations shall establish internal control over 
contractor use of GSA and other Federal supply sources.
    (b) Use of official Government mailing privileges by NASA 
contractors is covered in NMI 1450.11, NASA Mail Management Program.



Sec. 1851.102  Authorization to use Government supply sources.

    (a) In addition to considering the requirements of FAR 51.102(a), 
the contracting officer shall consider the potential for abuse by 
contractors authorized access to Government supply sources.
    (b) The contracting officer shall forward letters of authorization 
to the installation's Logistics Management Officer, Attention: Activity 
Address Code Coordinator, who will forward them to the Logistics 
Management Office, NASA Headquarters (Code JLG), for verification and 
transmittal to GSA. Letters of authorization forwarded to Headquarters 
must be accompanied by the supporting determination and findings, which 
will not be forwarded to GSA.
    (c) Substantially the following format shall be used for letters 
authorizing contractor use of Government supply sources:

    Subject: Authorization to Lease, Rent, or Purchase from General 
Services Administration (GSA) Supply Sources
    (Contractor's name)
______________________________
    (Address) ______________________________
    (1) You are hereby authorized to act for the Government in the 
following matters:
    (i) The acquisition of supplies and/or services under Contract No. 
____________ available for purchase by Government agencies either 
directly from GSA stock or under Federal Supply Schedules, including GSA 
nonmandatory ADTS/ADP schedule contracts and GSA ADP requirements 
contracts, subject to the limitations set forth in this authorization.
    (ii) The leasing or rental of equipment for use on Contract No. 
____________ available for lease or rental by Government agencies under 
Federal Supply Schedules, including GSA nonmandatory ADTS/ADP schedule 
contracts and GSA ADP requirements contracts, subject to the limitations 
set forth in this authorization.
    (iii) The issuance of tax exemption certificates in lieu of the 
payment of State or other taxes for which the Government is not liable 
on supplies or services purchased under this authorization.
    (2) (i) Purchase orders under GSA schedules and contracts shall be 
placed in accordance with the terms and conditions of the GSA schedule 
or contract and this authorization. A copy of this authorization shall 
be attached to the order (unless a copy was previously furnished to the 
GSA contractor) and shall contain the following statement:

    This order is placed on behalf of the National Aeronautics and Space 
Administration in furtherance of United States Government Contract No. 
____________, pursuant to written authorization dated ____________, a 
copy of which (is attached) (you have on file). In the event of any 
inconsistency between the terms and conditions of this order and those 
of the applicable GSA schedule/contract, the latter will govern.

    (ii) Orders for items in the GSA Supply Catalog shall be placed in 
accordance with

[[Page 408]]

the Catalog and this authorization and shall include the address to 
which billings are to be sent. Bills are not issued by GSA until after 
shipment has been made and should therefore be paid promptly. Any 
necessary adjustments will be made by GSA subsequent to payment. All 
orders shall contain the following statement:

    This order is placed on behalf of the National Aeronautics and Space 
Administration in furtherance of United States Government Contract No. 
____________, pursuant to written authorization dated ____________, a 
copy of which (is attached) (you have on file).

    (3) (Insert any other provisions and restrictions.)
    (4) The authority hereby granted is not transferable or assignable.



_______________________________________________________________________
(Contracting Officer)

    (d) When requisitioning from the Department of Veterans Affairs, the 
contractor should use FEDSTRIP or MILSTRIP, as appropriate, Optional 
Form 347, or an installation-prescribed form.

[54 FR 28339, July 5, 1989, as amended at 57 FR 40855, Sept. 8, 1992; 58 
FR 51141, Sept. 30, 1993; 60 FR 16063, Mar. 29, 1995]



Sec. 1851.102-70  Contractor acquisition of filing cabinets.

    (a) Before ordering filing cabinets whose title will vest in the 
Government, NASA contractors shall--
    (1) Transfer inactive records to contractor storage areas;
    (2) Dispose of unnecessary records in accordance with corporate 
procedures;
    (3) Use less expensive shelf filing methods;
    (4) Take other actions to reduce the need for filing cabinets; and
    (5) Furnish a statement to the cognizant contracting officer that, 
although the steps outlined in paragraphs (a)(1) through (4) of this 
section have been taken, sufficient additional filing capacity has not 
been produced.
    (b) The contractor shall then submit its request to the contracting 
officer, who shall:
    (1) Confer with the Records Management Officer, the Property and 
Supply Officer, and the project officer and, if appropriate,
    (2) Certify on all letter requests that the prerequisite actions 
have been taken by the contractor and that they have not produced the 
required filing space.
    (c) If the need for filing cabinets is approved by the contracting 
officer, excess items of the type requested shall be furnished, if 
available, through appropriate property accountability channels.
    (d) Approved requests that cannot be filled from excess shall be 
returned to the contractor with an authorization to obtain file 
cabinets, preferably through GSA.



Sec. 1851.103  Ordering from Government supply sources.

    (a) All orders for materials from Government supply sources shall 
contain the statement in paragraph (c)(2)(i) or (c)(2)(ii), as 
appropriate, of the authorization format set forth in 1851.102.
    (b) Contracting officers shall use NHB 4100.1, NASA Materials 
Inventory Management Manual, to obtain activity address codes (AAC) to 
enable use of FEDSTRIP and MILSTRIP for requisitioning material from 
Federal and military supply sources.

[57 FR 40856, Sept. 8, 1992]



Sec. 1851.104  Furnishing assistance to contractors.

    When necessary, NASA personnel shall assist the contractor in 
preparing and submitting the initial FEDSTRIP or MILSTRIP requisitions, 
the Optional Form 347, or installation-prescribed forms.

[[Page 409]]



                     SUBCHAPTER H--CLAUSES AND FORMS





PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents




Sec.
1852.000  Scope of part.

      Subpart 1852.1--Instructions for Using Provisions and Clauses

1852.101  Using FAR part 52.
1852.103  Identification of provisions and clauses.
1852.103-70  Identification of modified provisions and clauses.
1852.104  Procedures for modifying and completing provisions and 
          clauses.

             Subpart 1852.2--Texts of Provisions and Clauses

1852.204-75  Security classification requirements.
1852.204-76  Security requirements for unclassified automated 
          information resources.
1852.208-81  Restrictions on printing and duplicating.
1852.209-70  Product removal from Qualified Products List.
1852.209-71  Limitation of future contracting.
1852.209-72  Composition of the contractor.
1852.210-70  Brand name or equal.
1852.211-70  Brand name or equal.
1852.211-72  Period of performance.
1852.211-74  Notice of delay.
1852.212-70  Notice of delay.
1852.212-74  Period of performance.
1852.214-70  Caution to offerors furnishing descriptive literature.
1852.214-71  Grouping for aggregate award.
1852.214-72  Full quantities.
1852.215-70  Increases in estimated costs.
1852.215-71  Adjustment for subcontract price redetermination.
1852.215-72  Restriction on use and disclosure of proposal/quotation 
          information (Data).
1852.215-73  Late Submissions, modifications, and withdrawals of 
          proposals (AO and SBIR Programs).
1852.215-74  Alternate proposals.
1852.215-75  Expenses related to offeror submissions.
1852.215-76  False statements.
1852.215-77  Preproposal/Pre-bid Conference.
1852.215-78  Make or buy program requirements.
1852.215-79  Price adjustment for ``Make-or-Buy'' changes.
1852.215-80  Disposal of unsuccessful proposals.
1852.215-81  Proposal page limitations.
1852.215-82  Offeror oral presentations.
1852.215-83  Alternate method of scoring proposals.
1852.215-84  Ombudsman.
1852.216-72  Evaluation of offers subject to economic price adjustment.
1852.216-73  Estimated cost and cost sharing.
1852.216-74  Estimated cost and fixed fee.
1852.216-75  Payment of fixed fee.
1852.216-76  Award fee for service contracts.
1852.216-77  Award fee for non-service contracts.
1852.216-78  Firm fixed price.
1852.216-79  Level-of-Effort (Fixed-Price).
1852.216-80  Task ordering procedure.
1852.216-81  Estimated cost.
1852.216-82  Level-of-effort (cost).
1852.216-83  Fixed price incentive.
1852.216-84  Estimated cost and incentive fee.
1852.216-85  Estimated cost and award fee.
1852.216-86  Settlement of letter contract.
1852.216-87  Submission of vouchers for payment.
1852.216-88  Performance incentive.
1852.216-89  Allowable cost and payment.
1852.217-70  Property administration and reporting.
1852.219-73  Small Business and Small Disadvantaged Business 
          Subcontracting Plan.
1852.219-74  Use of Rural Area Small Businesses.
1852.219-75  Small Business and Small Disadvantaged Business 
          Subcontracting Reporting.
1852.219-76  NASA Small Disadvantaged Business Goal.
1852.219-77  NASA Mentor-Protege Program.
1852.219-78  Evaluation of Prime Contractor Participation in the NASA 
          Mentor Protege Program.
1852.219-79  Mentor requirements and evaluation.
1852.222-70  Facilities Nondiscrimination Notice.
1852.222-71  Facilities Nondiscrimination.
1852.223-70  Safety and health.
1852.223-71  Frequency authorization.
1852.223-72  Potentially hazardous items.
1852.223-73  Safety and Health Plan.
1852.223-74  Drug- and alcohol-free workforce.
1852.225-71  Nondomestic construction materials.
1852.225-72  [Reserved]
1852.225-73  Duty-Free Entry Supplies.
1852.227-11  Patent Rights--Retention by the Contractor (Short Form).
1852.227-14  Rights in Data--General.
1852.227-17  Rights in Data-Special Works.
1852.227-19  Commercial Computer Software--Restricted Rights.
1852.227-70  New Technology.

[[Page 410]]

1852.227-71  Requests for Waiver of Rights to Inventions.
1852.227-72  Designation of New Technology Representative and Patent 
          Representative.
1852.227-84  Patent Rights Clauses.
1852.227-85  Invention Reporting and Rights--Foreign.
1852.227-86  Commercial Computer Software--Licensing.
1852.227-87  Transfer of Technical Data Under Space Station 
          International Agreements.
1852.228-70  Aircraft Ground and Flight Risk.
1852.228-71  Aircraft Flight Risks.
1852.228-72  Cross-Waiver of liability for space shuttle services.
1852.228-73  Bid Bond.
1852.228-74  Payment and Performance Bonds.
1852.228-75  Minimum Insurance Coverage.
1852.228-76  Cross-waiver of Liability for Space Station Activities.
1852.228-77  Reimbursement for War-Hazard Losses.
1852.228-78  Cross-Waiver of Liability for NASA Expendable Launch 
          Vehicle Launches.
1852.231-70  Precontract costs.
1852.231-71  Determination of Compensation Reasonableness.
1852.232-12  Advance Payments.
1852.232-70  NASA Progress Payment Rates.
1852.232-77  Limitation of Funds (Fixed-Price Contract).
1852.232-79  Payment for On-Site Preparatory Costs.
1852.232-81  Contract Funding.
1852.232-82  Submission of Requests for Progress Payments.
1852.232-83  Milestone billing arrangements.
1852.232-84  Milestone billing arrangements--subcontracts.
1852.234-70  Phased procurement using down-selection procedures.
1852.234-71  Phased procurement using progressive competition down-
          selection procedures.
1852.235-70  Center for AeroSpace Information.
1852.235-71  Key Personnel and Facilities.
1852.235-72  Plan for New Technology Reporting.
1852.236-71  Additive or Deductive Items.
1852.236-72  Bids with Unit Prices.
1852.236-73  Hurricane Plan.
1852.236-74  Magnitude of Requirement.
1852.237-70  Emergency Evacuation Procedures.
1852.237-71  Pension portability.
1852.237-72  Identification of uncompensated overtime.
1852.239-70  Alternate Delivery Points.
1852.241-70  Renewal of Contract.
1852.242-70  Technical Direction.
1852.242-71  Travel Outside of the United States.
1852.242-72  Observance of Legal Holidays.
1852.242-73  NASA Contractor Financial Management Reporting.
1852.242-74  NASA Contractor Financial Management Reporting (Performance 
          Analysis Report).
1852.243-70  Engineering change proposals.
1852.244-70  Geographic Participation in the Aerospace Program.
1852.245-70  Acquisition of Centrally Reportable Equipment.
1852.245-71  Installation-Provided Government Property.
1852.245-72  Liability for Government Property Furnished for Repair or 
          Other Services.
1852.245-73  Financial reporting of NASA property in the custody of 
          contractors.
1852.245-74  Contractor Accountable On-Site Government Property.
1852.245-75  Title to Equipment.
1852.245-76  List of Government-Furnished Property.
1852.245-77  List of Installation-Provided Property and Services.
1852.245-79  Use of Government-Owned Property.
1852.245-80  Use of Government Production and Research Property on a No-
          Charge Basis.
1852.246-70  Mission Critical Space Systems Personnel Reliability 
          Program.
1852.246-71  Government Contract Quality Assurance functions.
1852.246-72  Material Inspection and Receiving Report.
1852.246-73  Manned Space Flight Item.
1852.246-74  Requirement for Quality and Productivity Improvement Plan.
1852.246-75  Quality and Productivity Improvement Plan.
1852.247-70  Returnable Containers.
1852.247-71  Protection of the Florida Manatee.
1852.247-72  Advance Notice of Shipment.
1852.247-73  Shipment by Government Bills of Lading.
1852.249-72  Termination (Utilities).

               Subpart 1852.3--Provision and Clause Matrix

1852.300  Scope of subpart.
1852.301  Solicitation Provisions and Contract Clauses (Matrix).

    Authority: 42 U.S.C. 2473 (c)(1).

    Source: 54 FR 28340, July 5, 1989, unless otherwise noted.



Sec. 1852.000  Scope of part.

    This part, in conjunction with FAR Part 52--
    (a) Sets forth the provisions and clauses prescribed in the NFS,

[[Page 411]]

    (b) Gives instructions for their use, and
    (c) Presents a matrix listing the provisions and clauses applicable 
to each principal contract type and/or purpose (e.g., fixed-price 
supply, cost-reimbursement research and development).

[61 FR 40547, Aug. 5, 1996]



Subpart 1852.1--Instructions for Using Provisions and Contracts--Table of Contents




    Source: 61 FR 40547, Aug. 5, 1996, unless otherwise noted.



Sec. 1852.101  Using FAR part 52. (NASA supplements paragraphs (b) and (e))

    (b)(2)(i)(B) NASA contracting offices prescribing or developing 
clauses shall ensure that the requirements of subpart 1801.3 are met.
    (e)(1) The NFS matrix in subpart 1852.3 is formatted similarly to 
that in the FAR. The first page of the NFS matrix contains a key to 
column headings, a dollar threshold chart, and requirement symbols. To 
fully determine the applicability of a provision or clause in the 
``required-when-applicable'' and ``optional'' categories, Contracting 
Officers shall refer to the NFS text (cited in the matrix) that 
prescribes its use.
    (4) The NFS matrix may be reproduced by field installations for the 
purpose of supplementing it with installation-developed provisions and 
clauses.



Sec. 1852.103  Identification of provisions and clauses. (NASA supplements paragraphs (b) and (c))

    (b) Provisions and clauses prescribed by a field installation to 
satisfy its needs shall be identified as stated in paragraphs (b) (i) 
and (ii) of this section. Articles, formats, and similar language shall 
be treated as provisions and clauses for purposes of this section 
1852.103.
    (i) A provision or clause shall be numbered using a prefix, a base, 
and a suffix. The prefix shall be an alphabetical abbreviation of the 
installation name (e.g., ARC, DFRC, GSFC, CW, JSC, KSC, LARC, LERC, 
MSFC, SSC, or SSPO). The base shall be a numeric value beginning with 
``52.2,'' with the next two digits corresponding to the number of the 
FAR or NFS subject part to which the provision or clause relates. The 
suffix shall be a hyphen and sequential number assigned within each 
part. NASA installations shall use suffix numbers from -90 to -199. For 
example, the first Johnson Space Center (JSC) provision or clause 
relating to part 36 of the FAR or NFS shall be JSC 52.236-90, the second 
JSC 52.236-91, and so forth. Provisions and clauses shall be dated in 
accordance with FAR 52.101(f).
    (ii) Contracting officers shall identify provisions and clauses as 
in the following examples:
    (A) I.2 BID ENVELOPES (GSFC 52.214-90) (AUGUST 1987) This example is 
applicable when identifying the title of provisions and clauses in 
solicitations and contracts using the uniform contract format (UCF). The 
first number (``I.2'') designates the UCF section and the sequential 
clause within that section ``GSFC 52.214-90'' specifies the clause 
number.
    (B) GSFC 52.214-90--Bid Envelopes (AUGUST 1987) This example is 
applicable in all instances in which the provision or clause citation is 
not associated with the UCF number.
    (C) Contracting officers shall not number provisions and clauses 
developed for individual acquisitions only. For example, ``F.3 Delivery 
Procedures for Special Hardware'' cites the third clause in Section F of 
a contract using the UCF, but has no clause number or date identified 
with it, indicating that the clause was developed for the particular 
contract it appears in.



Sec. 1852.103-70  Identification of modified provisions and clauses.

    When a FAR clause or provision is included in a solicitation or 
contract and the NFS prescribes a modification, the title line shall 
identify the modification as shown in this subsection. This format shall 
be used both for incorporation by reference and when using full text.

    ``52.232-28 Electronic Funds Transfer Payment Methods (APR 1989)--as 
modified by NASA FAR Supplement 1832.908(a)''

[[Page 412]]



Sec. 1852.104  Procedures for modifying and completing provisions and clauses.

    NFS provisions and clauses shall not be modified unless authorized 
by the NFS. When authorized, contracting officers must comply with the 
procedures in FAR 52.104.



             Subpart 1852.2--Texts of Provisions and Clauses



Sec. 1852.204-75  Security classification requirements.

    As prescribed in 1804.404-70, insert the following clause:

             Security Classification Requirements (Sep 1989)

    Performance under this contract will involve access to and/or 
generation of classified information, work in a security area, or both, 
up to the level of ________________________ [insert the applicable 
security clearance level]. See Federal Acquisition Regulation clause 
52.204-2 in this contract and DD Form 254, Contract Security 
Classification Specification, Attachment ________ [Insert the attachment 
number of the DD Form 254].

(End of clause)

[61 FR 40548, Aug. 5, 1996]



Sec. 1852.204-76  Security requirements for unclassified automated information resources.

    As prescribed in 1804.470-3, insert the following clause:

 Security Requirements for Unclassified Automated Information Resources 
                               (Sep 1993)

    (a) In addition to complying with any functional and technical 
security requirements set forth in the schedule and the clauses of this 
contract, the Contractor shall initiate personnel screening checks and 
obtain user responsibility agreements, as required by this clause, for 
each contractor employee requiring unescorted or unsupervised physical 
access or electronic access to the following limited or controlled 
areas, systems, programs and data: [List areas, systems, programs and 
data].
    (1) The Contractor shall submit a personnel security questionnaire 
(NASA Form 531, Name Check Request, for National Agency Check (NAC) 
investigations and Standard Form 85P, Questionnaire for Public Trust 
Positions, for specified sensitive positions) and a Fingerprint Card 
(FD-258 with NASA overprint in Origin Block) to the installation 
Security Officer for each Contractor employee who requires access. The 
required forms may be obtained from the installation security office. 
Employees may have fingerprints taken at the [Insert office name and 
location], or at any police department.
    (i) Several months may be required for completion of complex 
personnel screening investigations. Background screening may not be 
required for employees with recent or current Federal Government 
investigations.
    (ii) When employee access is necessary prior to completion of 
personnel screening, each contractor employee requiring access may be 
considered for escorted access. The installation Security Officer will 
establish the eligibility of proposed escorts.
    (2) The Contractor shall ensure that each contractor employee 
requiring access executes any user responsibility agreements required by 
the Government prior to access. The Contractor shall provide signed 
copies of the agreements to the installation Security Officer for 
inclusion in the employee's security file. Unauthorized access is a 
violation of law and punishable under the provisions of 18 U.S.C. 1029, 
18 U.S.C. 1030 and other applicable statutes.
    (3) The Contractor shall notify the installation AIS Manager no 
later than the end of the day of the termination for cause of an 
authorized employee's access. The Contractor shall notify the COTR no 
later than ten days after an authorized employee no longer requires 
access for any other type of termination. Verbal notifications shall be 
confirmed in writing within thirty days.
    (b) The Contractor shall incorporate this clause in all subcontracts 
where the requirements identified in paragraph (a) are applicable to 
performance of the subcontract.

(End of clause)

[61 FR 40548, Aug. 5, 1996]



Sec. 1852.208-81  Restrictions on Printing and Duplicating.

    As prescribed in 1801.870, insert the following clause:

           Restrictions on Printing and Duplicating (Aug 1993)

    (a) The Contractor shall reproduce any documentation required by 
this contract in accordance with the provisions of the Government 
Printing and Binding Regulations, No. 26, S. Pub 101-9, U.S. Government 
Printing Office, Washington, DC, 20402, published by the Joint Committee 
on Printing, U.S. Congress.
    (b) The Contractor shall not perform, or procure from any commercial 
source, any printing in connection with the performance of work under 
this contract. The term ``printing'' includes the processes of 
composition, platemaking, presswork, silk

[[Page 413]]

screen processes, binding, microform, and the end items of such 
processes and equipment.
    (c) ``Duplicating/copying'' is not considered to be printing. It is 
material produced by duplicating equipment employing the lithographic 
process and automatic copy-processing or copier-duplicating machines 
employing electrostatic, thermal, or other copying processes not 
requiring the use of negatives or metal plates. The Contractor is 
authorized to duplicate production unites provided the requirement does 
not exceed 5,000 production units of any one page or 25,000 units in the 
aggregate of multiple pages. Such plates may not exceed a maximum image 
size of 10\3/4\ by 14\1/4\ inches. A ``production unit'' is one sheet, 
size 8\1/2\  x  11 inches (215  x  280 mm), one side only, and one color 
ink.
    (d) This clause does not preclude writing, editing, preparation of 
manuscript copy, or preparation of related illustrative material as a 
part of this contract, or administrative duplicating/copying (for 
example, necessary forms and instructional materials used by the 
Contractor to respond to the terms of the contract).
    (e) Costs associated with printing or duplicating/copying in excess 
of the limits set forth above are unallowable without prior written 
approval of the Contracting Officer. If the contractor has reason to 
believe that any activity required in fulfillment of the contract will 
necessitate any printing or substantial duplicating/copying, it 
immediately shall provide written notice to the Contracting Officer and 
request approval prior to proceeding with the activity. Requests will be 
processed by the Contracting Officer in accordance with the provisions 
of the Government Printing and Binding Regulations and NFS 1808.802.
    (f) The Contractor shall include in each subcontract which may 
involve a requirement for any printing and/or any duplicating/copying in 
excess of the limits specified in paragraph (c) of this clause, a 
provision substantially the same as this clause, including this 
paragraph (f).

(End of clause)

[61 FR 40548, Aug. 5, 1996]



Sec. 1852.209-70  Product removal from Qualified Products List.

    As prescribed in 1809.206-71, insert the following clause:

         Product Removal From Qualified Products List (Dec 1988)

    If, during the performance of this contract, the product being 
furnished is removed from the Qualified Products List for any reason, 
the Government may terminate the contract for Default pursuant to the 
default clause of the contract.

(End of clause)

[61 FR 40549, Aug. 5, 1996]



Sec. 1852.209-71  Limitation of Future Contracting.

    As prescribed in 1809.507-2, the contracting officer may insert a 
clause substantially as follows in solicitations and contracts, in 
compliance with FAR 9.507-2:

               Limitation of Future Contracting (Dec 1988)

    (a) The Contracting Officer has determined that this acquisition may 
give rise to a potential organizational conflict of interest. 
Accordingly, the attention of prospective offerors is invited to FAR 
Subpart 9.5--Organizational Conflicts of Interest.
    (b) The nature of this conflict is [describe the conflict].
    (c) The restrictions upon future contracting are as follows:
    (1) If the Contractor, under the terms of this contract, or through 
the performance of tasks pursuant to this contract, is required to 
develop specifications or statements or work that are to be incorporated 
into a solicitation, the Contractor shall be ineligible to perform the 
work described in that solicitation as a prime of first-tier 
subcontractor under an ensuing NASA contract. This restriction shall 
remain in effect for a reasonable time, as agreed to by the Contracting 
Officer and the Contractor, sufficient to avoid unfair competitive 
advantage or potential bias (this time shall in no case be less than the 
duration of the initial production contract). NASA shall not 
unilaterally require the Contractor to prepare such specifications or 
statements of work under this contract.
    (2) To the extent that the work under this contract requires access 
to proprietary, business confidential, or financial data of other 
companies, and as long as these data remain proprietary or confidential, 
the Contractor shall protect these data from unauthorized use and 
disclosure and agrees not to use them to complete with those other 
companies.

(End of clause)

[61 FR 40549, Aug. 5, 1996]



Sec. 1852.209-72  Composition of the Contractor.

    As prescribed in 1809.670, insert the following clause:

[[Page 414]]

                Composition of the Contractor (Dec 1988)

    If the Contractor is comprised of more than one legal entity, each 
entity shall be jointly and severally liable under this contract.

(End of clause)

[61 FR 40549, Aug. 5, 1996]



Sec. 1852.210-70  Brand name or equal.

    As prescribed in 1810.011-70(a), insert the following provision:

                     Brand Name or Equal (Dec 1988)

    (a) As used in this provision, ``brand name'' means identification 
of products by make and model. The term ``bid'' means ``offer'' if this 
is a negotiated acquisition.
    (b) If items called for by this solicitation are identified in the 
Schedule by a ``brand name or equal'' description, that identification 
is intended to be descriptive, not restrictive, and is to indicate the 
quality and characteristics of products that will be satisfactory. Bids 
offering ``equal'' products, including products of the brand name 
manufacturer other than the one described by brand name, will be 
considered for award if the products are clearly identified in the bids 
and are determined by the Government to meet fully the salient 
characteristics requirements referenced in the solicitation.
    (c) Unless the offeror clearly indicates in the bid that it is 
offering an ``equal'' product, the bid shall be considered as offering a 
brand-name product referenced in the solicitation.
    (d)(1) If the offeror proposes to furnish an ``equal'' product, the 
brand name, if any, of the product to be furnished shall be inserted in 
the space provided in the solicitation, or that product shall be 
otherwise clearly identified in the bid. The evaluation of bids and the 
determination as to equality of the product offered shall be the 
responsibility of the Government and will be based on information 
furnished by the offeror or identified in its bid, as well as on other 
information reasonably available to the contracting activity.
    (2) Caution to Offerors: The contracting office is not responsible 
for locating or securing any information not identified in the bid and 
reasonably available to the contracting office. Accordingly, to ensure 
that sufficient information is available, the offeror must furnish as a 
part of its bid all descriptive material (such as cuts, illustrations, 
drawings, or other information) necessary for the contracting office to 
(i) determine whether the product offered meets the salient 
characteristics requirements of the solicitation and (ii) establish 
exactly what the offeror proposes to furnish and what the Government 
would be binding itself to purchase by making an award. The information 
furnished may include specific references to information previously 
furnished or to information otherwise available to the contracting 
office.
    (3) If the offeror proposes to modify a product so as to make it 
conform to the requirements of the solicitation, it shall (i) include in 
the bid a clear description of the proposed modifications and (ii) 
clearly mark any descriptive material to show them.
    (4) If this is a sealed-bid acquisition, modifications proposed 
after bid opening to make a product conform to a brand name product 
referenced in the solicitation will not be considered.

                           (End of provision)

[54 FR 28340, July 5, 1989, as amended at 56 FR 12460, Mar. 26, 1991]



Sec. 1852.211-70  Brand name or equal.

    As prescribed in 1811.104-71, insert the following provision:

                     Brand Name or Equal (Dec 1988)

    (a) As used in this provision, ``brand name'' means identification 
of products by make and model. The term ``bid'' means ``offer'' if this 
is a negotiated acquisition.
    (b) If items called for by this solicitation are identified in the 
Schedule by a ``brand name or equal'' description, that identification 
is intended to be descriptive, not restrictive, and is to indicate the 
quality and characteristics of products that will be satisfactory. Bids 
offering ``equal'' products, including products of the brand name 
manufacturer other than the one described by model designation, will be 
considered for award if the products are clearly identified in the bids 
and are determined by the Government to meet fully the salient 
characteristics requirements referenced in the solicitation.
    (c) Unless the offeror clearly indicates in the bid that it is 
offering an ``equal'' product, the bid shall be considered as offering a 
brand-name product referenced in the solicitation.
    (d) (1) If the offeror proposes to furnish an ``equal'' product, the 
brand name, if any, of the product to be furnished shall be inserted in 
the space provided in the solicitation, or that product shall be 
otherwise clearly identified in the bid. The evaluation of bids and the 
determination as to equality of the product offered shall be the 
responsibility of the Government and will be based on information 
furnished by the offeror or identified in its bid, as well as on other 
information reasonably available to the contracting activity.
    (2) CAUTION TO OFFERORS: The contracting office is not responsible 
for locating or securing any information not identified in

[[Page 415]]

the bid and reasonably available to the contracting office. Accordingly, 
to ensure that sufficient information is available, the offeror must 
furnish as a part of its bid all descriptive material (such as cuts, 
illustrations, drawings, or other information) necessary for the 
contracting office to (i) determine whether the product offered meets 
the salient characteristics requirements of the solicitation and (ii) 
establish exactly what the offeror proposes to furnish and what the 
Government would be binding itself to purchase by making an award. The 
information furnished may include specific references to information 
previously furnished or to information otherwise available to the 
contracting office.
    (3) If the offeror proposes to modify a product so as to make it 
conform to the requirements of the solicitation, it shall (i) include in 
the bid a clear description of the proposed modifications and (ii) 
clearly mark any descriptive material to show them.
    (4) If this is a sealed bid acquisition, modifications proposed 
after bid opening to make a product conform to a brand name product 
referenced in the solicitation will not be considered.

                           (End of provision)

[61 FR 47081, Sept. 6, 1996]



Sec. 1852.211-72   Period of performance.

    As prescribed in 1811.403(a)(3), insert the following clause:

                    Period of Performance (Dec 1988)

    The period of performance of this contract shall be [Insert period 
of performance dates].

                             (End of clause)

[61 FR 47081, Sept. 6, 1996]



Sec. 1852.211-74   Notice of delay.

    As prescribed at 1811.404-70(a), insert the following clause:

                       Notice of Delay (Dec 1988)

    If, because of technical difficulties, the Contractor becomes unable 
to complete the contract work at the time specified, notwithstanding the 
exercise of good faith and diligent efforts in performing the work 
called for under this contract, the Contractor shall give the 
Contracting Officer written notice of the anticipated delay and the 
reasons for it. The notice and reasons shall be delivered promptly after 
the condition creating the anticipated delay becomes known to the 
Contractor but in no event less than 45 days before the completion date 
specified in this contract, unless otherwise permitted by the 
Contracting Officer. When notice is given, the Contracting Officer may 
extend the time specified in the Schedule for such period as is deemed 
advisable.

                             (End of clause)

[61 FR 47081, Sept. 6, 1996]



Sec. 1852.212-70  Notice of delay.

    As prescribed at 1812.104-70(a), insert the following clause:

                       Notice of Delay (Dec 1988)

    If, because of technical difficulties, the Contractor becomes unable 
to complete the contract work at the time specified, notwithstanding the 
exercise of good faith and diligent efforts in performing the work 
called for under this contract, the Contractor shall give the 
Contracting Officer written notice of the anticipated delay and the 
reasons for it. The notice and reasons shall be delivered promptly after 
the condition creating the anticipated delay becomes known to the 
Contractor but in no event less than 45 days before the completion date 
specified in this contract, unless otherwise permitted by the 
Contracting Officer. When notice is given, the Contracting Officer may 
extend the time specified in the Schedule for such period as is deemed 
advisable.

                             (End of clause)



Sec. 1852.212-74  Period of Performance.

    As prescribed in 1812.104-70(e), insert the following clause:

                    Period of Performance (Dec 1988)

    The period of performance of this contract shall be [Insert period 
of performance dates].

                             (End of clause)



Sec. 1852.214-70   Caution to Offerors Furnishing Descriptive Literature.

    As prescribed in 1814.201-670(a), insert the following provision:

                     Caution to Offerors Furnishing

                         Descriptive Literature

                               (Dec 1988)

    Bidders are cautioned against furnishing as a part of their bids 
descriptive literature that includes language reserving to the bidder 
the right to deviate from the requirements of the invitation for bids. 
Statements that ``Data are subject to change without notice,'' ``Prices 
subject to change without notice,'' or words having a similar effect are 
examples of such reservation. The Government will reject as 
nonresponsive any bid that incorporates literature containing such 
language or any bid that must be evaluated

[[Page 416]]

by using literature containing such language. Bidders should clearly 
label any submissions of descriptive literature not intended to form a 
part of a bid as such in order to preclude any need for the Government 
to interpret the bidder's intent in submitting descriptive literature. 
[See FAR 14.202-5.]

                           (End of provision)

[61 FR 47082, Sept. 6, 1996]



Sec. 1852.214-71   Grouping for Aggregate Award.

    As prescribed in 1814.201-670(c), insert the following provision:

                      Grouping for Aggregate Award

                               (Mar 1989)

    (a) The Government will evaluate offers and make award on a basis of 
the aggregate offers for items
    [Insert the item numbers and/or descriptions].
    The Government will not consider an offer for quantities less than 
those specified for these items.
    (b) If this is an invitation for bids, the Government will reject as 
nonresponsive a bid that is not made on the total quantities for all of 
the items specified in paragraph (a) of this section.

                           (End of provision)

[61 FR 47082, Sept. 6, 1996]



Sec. 1852.214-72  Full quantities.

    As prescribed in 1814.201-670(b), insert the following provision:

                       Full Quantities (Dec 1988)

    The Government will not consider an offer for quantities of items 
less than those specified. If this is an invitation for bids, the 
Government will reject as nonresponsive a bid that is not made on full 
quantities.

                           (End of provision)

[61 FR 47082, Sept. 6, 1996]



Sec. 1852.215-70  Increases in estimated costs.

    As prescribed in 1815.613-72(a), insert the following provision:

                 Increases in Estimated Costs (Oct 1995)

    Once the apparent successful offeror has been selected, that offeror 
may not unilaterally increase the estimated costs submitted with its 
proposal except for--
    (a) Increases resulting from updating or correcting the cost or 
pricing data submitted with the proposal;
    (b) Costs resulting from the Government's directed correction of 
identified weaknesses in the proposal that must be corrected as a 
condition of contracting; or
    (c) Minor changes in the requirements of the solicitation. In such 
cases, the Government will consider only those increases arising from 
requirements actually affected by the changes (irrespective of whether 
the changes result in an increase or decrease in the requirements or are 
initiated by the Government or the offeror) and then only to the extent 
the increases are identified and justified.

                           (End of provision)

[54 FR 28340, July 5, 1989, as amended at 58 FR 61631, Nov. 22, 1993; 60 
FR 53880, Oct. 18, 1995]



Sec. 1852.215-71  Adjustment for subcontract price redetermination.

    As prescribed in 1815.870-2, insert the following clause:

       Adjustment for Subcontract Price Redetermination (Dec 1988)

    Promptly upon the establishment of firm prices for each of the 
subcontracts listed below, the Contractor shall submit, in such form and 
detail as the Contracting Officer may reasonably require, a statement of 
costs incurred in the performance of that subcontract and the firm price 
established for it. Thereupon, notwithstanding any other provisions of 
this contract as amended by this modification, the Contractor and the 
Contracting Officer shall negotiate an equitable adjustment in the total 
amount paid or to be paid under the contract to reflect the subcontract 
price revision.
    The equitable adjustment shall be evidenced by a modification to 
this contract.

[list subcontracts]

                             (End of clause)



Sec. 1852.215-72  Restriction on use and disclosure of proposal/quotation information (Data).

    As prescribed in 1815.407-70(a), insert the following provision:

  Restriction on Use and Disclosure of Proposal/Quotation Information 
                            (Data) (Dec 1984)

    It is NASA policy to use information contained in proposals and 
quotations for evaluation purposes only. While this policy does not 
require that the proposal or quotation bear a restrictive notice, 
offerors or quoters

[[Page 417]]

should, in order to maximize protection of trade secrets or other 
information that is commercial or financial and confidential or 
privileged, place the following notice on the title page of the proposal 
or quotation and specify the information subject to the notice by 
inserting appropriate identification, such as page numbers, in the 
notice. In any event, information (data) contained in proposals and 
quotations will be protected to the extent permitted by law, but NASA 
assumes no liability for use and disclosure of information not made 
subject to the notice.

Restriction on Use and Disclosure of Proposal and Quotation Information 
                                 (Data)

    The information (data) contained in ______ [Insert page numbers or 
other identification] of this proposal or quotation constitutes a trade 
secret and/or information that is commercial or financial and 
confidential or privileged. It is furnished to the Government in 
confidence with the understanding that it will not, without permission 
of the offeror, be used or disclosed for other than evaluation purposes; 
provided, however, that in the event a contract is awarded on the basis 
of this proposal or quotation the Government shall have the right to use 
and disclose this information (data) to the extent provided in the 
contract. This restriction does not limit the Government's right to use 
or disclose this information (data) if obtained from another source 
without restriction.

                           (End of provision)



Sec. 1852.215-73  Late submissions, modifications, and withdrawals of proposals. (AO and SBIR programs).

    As prescribed in 1815.407-70(b), use the following provision in lieu 
of the provision at FAR 52.215-10 in Announcement of Opportunity and 
SBIR solicitations:

 Late Submissions, Modifications, and Withdrawals of Proposals (AO and 
                        SBIR Programs) (Dec 1988)

    (a) The Government reserves the right to consider proposals or 
modifications, including any revision of an otherwise successful 
proposal, received after the date indicated for receipt of proposals if 
it would be in the Government's best interest to do so.
    (b) Proposals may be withdrawn by written notice or telegram 
(including mailgram) received at any time before award. Proposals may be 
withdrawn in person by an offeror or an authorized representative, if 
the representative's identity is made known and the representative signs 
a receipt for the proposal before award.

                           (End of provision)



Sec. 1852.215-74  Alternate proposals.

    As prescribed in 1815.407-70(c), insert the following provision:

                     Alternate Proposals (Dec 1988)

    (a) The offeror may submit an alternate proposal to accomplish any 
aspect of the effort or product contemplated by the solicitation in a 
manner that might create a beneficial improvement to the Government. The 
Government will consider an alternate proposal if it is accompanied by a 
basic proposal prepared in accordance with instructions contained in and 
responsive to this solicitation. The alternate proposal must be complete 
by itself and comply with the proposal instructions of this 
solicitation. The alternate proposal will be evaluated in accordance 
with the evaluation factors of this solicitation.
    (b) In the event the Government receives an alternate proposal that, 
if accepted, would result in a contract with terms varying in one or 
more material respects from those contained in this solicitation (i.e., 
change in scope), and the Government concludes that implementation of 
the approach contained in the alternate proposal would be in its best 
interests, the Government may modify its solicitation in a manner 
appropriate to incorporate the change in scope but not reveal the 
substance of the alternate proposal, and thereafter give all offerors 
(and others if the facts warrant) an opportunity to respond to the 
modified solicitation.

                           (End of provision)



Sec. 1852.215-75   Expenses Related to Offeror Submissions.

    As prescribed in 1815.407-70(d), insert the following provision:

           Expenses Related to Offeror Submissions (Dec 1988)

    This solicitation neither commits the Government to pay any cost 
incurred in the submission of the offer or in making necessary studies 
or designs for preparing the offer, nor to contract for services or 
supplies. Any costs incurred in anticipation of a contract shall be at 
the offeror's own risk.

                           (End of provision)



Sec. 1852.215-76  False Statements.

    As prescribed in 1815.407-70(e), insert the following provision:

                       False Statements (Dec 1988)

    Proposals must set forth full, accurate, and complete information as 
required by the

[[Page 418]]

solicitation (including attachments). The penalty for making false 
statements in proposals is prescribed in 18 U.S.C. 1001.

                           (End of provision)



Sec. 1852.215-77  Preproposal/pre-bid Conference.

    As prescribed in 1815.407-70(f), insert the following provision:

                Preproposal/Pre-Bid Conference (Dec 1988)

    (a) A preproposal/pre-bid conference will be held as indicated 
below:

    Date:
    Time:
    Location:
    Other Information, as applicable:

[Insert the applicable conference information.]
    (b) Attendance at the preproposal/pre-bid conference is recommended; 
however, attendance is neither required nor a prerequisite for proposal/
bid submission and will not be considered in the evaluation.

                           (End of provision)



Sec. 1852.215-78  Make or buy program requirements.

    As prescribed in 1815.708-70(a), insert the following provision:

               Make or Buy Program Requirements (Dec 1988)

    The offeror shall submit a Make-or-Buy Program in accordance with 
the requirements of Federal Acquisition Regulation (FAR) 15.705. The 
offeror shall include the following supporting documentation with its 
proposal:
    (a) A description of each major item or work effort (see FAR 
15.704).
    (b) Categorization of each major item or work effort as ``must 
make,'' ``must buy,'' or ``can either make or buy.''
    (c) For each item or work effort categorized as ``can either make or 
buy,'' a proposal either to ``make'' or ``buy.''
    (d) Reasons for (i) categorizing items and work effort as ``must 
make'' or ``must buy'' and (ii) proposing to ``make'' or ``buy'' those 
categorized as ``can either make or buy.'' The reasons must include the 
consideration given to the applicable evaluation factors described in 
the solicitation and be in sufficient detail to permit the Contracting 
Officer to evaluate the categorization and proposal.
    (e) Designation of the offeror's plant or division proposed to make 
each item or perform each work effort and a statement as to whether the 
existing or proposed new facility is in or near a labor surplus area.
    (f) Identification of proposed subcontractors, if known, and their 
location and size status.
    (g) Any recommendations to defer make-or-buy decisions when 
categorization of some items or work efforts is impracticable at the 
time of submission.

                           (End of provision)



Sec. 1852.215-79  Price adjustment for ``make-or-buy'' changes.

    As prescribed in 1815.708-70(b), insert the following clause:

         Price Adjustment for ``Make-or-Buy'' Changes (Dec 1988)

    The following make-or-buy items are subject to the provisions of 
paragraph (d) of the clause at FAR 52.215-21, Change or Additions to 
Make-or-Buy Program, of this contract:


------------------------------------------------------------------------
           Item description                 Make-or-buy Determination   
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 56 FR 12460, Mar. 26, 1991]



Sec. 1852.215-80  Disposal of unsuccessful proposals.

    As prescribed in 1815.407-70(g), insert the following provision:

              Disposal of Unsuccessful Proposals (Dec 1988)

    After contract award, one or more copies of each unsuccessful 
proposal will be retained in the Government's official contract file, 
and all other copies will be destroyed.

                           (End of provision)



Sec. 1852.215-81  Proposal Page Limitations.

    As prescribed in 1815.407-70(j), insert the following provision:

                        Proposal Page Limitations

                               (Jan 1994)

    (a) The following page limitations are established for each portion 
of the proposal submitted in response to this solicitation.

------------------------------------------------------------------------
          Proposal section                        Page limit            
------------------------------------------------------------------------
(List each volume or section)        (Specify limit)                    
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

[[Page 419]]

                                                                        
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------


    (b) A page is defined as one side of a sheet, 8\1/2\''  x  11'', 
with at least one inch margins on all sides, using not smaller than 12 
characters per inch (or equivalent) type. Foldouts count as an 
equivalent number of 8\1/2\'' x 11'' pages. The metric standard format 
most closely approximately the described standard 8\1/2\'' x 11'' size 
may also be used.
    (c) Title pages and tables of contents are excluded from the page 
counts specified in paragraph (a) of this provision. In addition, the 
Cost section of your proposal is not page limited. However, this section 
is to be strictly limited to cost and price information. Information 
that can be construed as belonging in one of the other sections of the 
proposal will be so construed and counted against that section's page 
limitation.
    (d) If Best and Final Offers (BAFOs) are requested, separate page 
limitations will be specified in the Government's request for that 
submission.
    (e) Pages submitted in excess of the limitations specified in this 
provision will not be evaluated by the Government and will be returned 
to the offeror.

                           (End of provision)

[58 FR 61631, Nov. 22, 1993, as amended at 59 FR 11199, Mar. 10, 1994]



Sec. 1852.215-82  Offeror Oral Presentations.

    As prescribed in 1815.407-70(k), insert the following provision:

                       Offeror Oral Presentations

                               (Nov 1993)

    (a) Offerors are invited to give an oral presentation to the 
Government on the structure and general content of their proposals. 
These presentations are intended to assist Government evaluation by 
providing a ``roadmap'' to understanding proposals, i.e., an overview of 
the proposed organization and layout, and where required information and 
elements are located. Although the offeror's basic approach to 
satisfying solicitation requirements may be explained, it is to be done 
so only in general terms and only to expedite the Government's formal 
evaluation.
    (b) The Government will not engage in any discussions during the 
oral presentation, and no proposal revisions will be accepted as part of 
the presentation. The Government's evaluation of offeror proposals will 
be based on the contents of the initial proposal, and any information 
not included in the initial proposal that is provided at the oral 
presentation will not be evaluated.
    (c) Offerors should indicate in their proposals if they wish to give 
an oral presentation. These presentations are not mandatory, and 
electing not to give a presentation will not, in itself, affect proposal 
evaluation.
    (d) Because the presentations are intended to assist the 
Government's evaluation, they will be scheduled to take place prior to 
commencement of the formal initial evaluation, normally within three 
days after proposal receipt. Offerors unable to accommodate this 
schedule forfeit their opportunity to provide a presentation.
    (e) The presentations will consist of an offeror briefing not to 
exceed [insert 1 or 2] hours to be followed by a question and answer 
period. The order of offeror presentations will be determined at random. 
The exact time and place of the presentation, along with any other 
guidance, will be provided to the offeror by the contracting officer or 
his/her representative.
    (f) Presentation materials are not required, but if used, the 
Government will retain one copy in its official file as a historical 
record of the presentation even though these materials will not be used 
in the Government's evaluation process.

                           (End of provision)

[58 FR 61632, Nov. 22, 1993]



Sec. 1852.215-83  Alternate Method of Scoring Proposals.

    As prescribed in 1815.613-72(b), insert the following provision:

                  Alternate Method of Scoring Proposals

                               (Nov 1993)

    NASA reserves the right to evaluate proposals received in response 
to this solicitation under either of the two scoring methods described 
in NASA FAR Supplement 1815.613-71(b)(4) and 1870.303, App. I, paragraph 
407.6.d. Under the standard method, proposals are scored at the 
completion of initial evaluations and again upon completion of 
evaluations of Best and Final Offers (BAFOs). Under the alternate 
method, proposals are scored only after completion of BAFO evaluation.

                           (End of provision)

[58 FR 61632, Nov. 22, 1993]



Sec. 1852.215-84  Ombudsman.

    As prescribed in 1815.7002, insert the following clause:

[[Page 420]]

                                Ombudsman

                             (October 1995)

    An ombudsman has been appointed to hear concerns from offerors, 
potential offerors, and contractors during the preaward and postaward 
phases of this acquisition. The purpose of the ombudsman is not to 
diminish the authority of the contracting officer, the Source Evaluation 
Board, or the selection official, but to communicate concerns, issues, 
disagreements, and recommendations of interested parties to the 
appropriate Government personnel and to work to resolve them. When 
requested, the ombudsman will maintain strict confidentiality as to the 
source of the concern. The ombudsman does not participate in the 
evaluation of proposals, the source selection process, or the 
adjudication of formal contract disputes. Interested parties are invited 
to call the installation ombudsman ________ [Insert name] at ________ 
[Insert telephone number]. Concerns, issues, disagreements, and 
recommendations which cannot be resolved at the installation may be 
referred to the NASA ombudsman ________ [Insert name] at ________ 
[Insert telephone number].

(End of Clause)

[60 FR 47100, Sept. 11, 1995]



Sec. 1852.216-72  Evaluation of offers subject to economic price adjustment.

    As prescribed in 1816.203-4(d), insert the following provision:

  Evaluation of Offers, Subject to Economic Price Adjustment (Dec 1991)

    (a) Notwithstanding the requirements of the __________ * clause, 
offers shall be evaluated on the basis of quoted prices without an 
amount for economic price adjustment being added. Offers that provide 
for a ceiling lower than any ceiling stipulated in the clause, shall be 
awarded at the lower ceiling.
---------------------------------------------------------------------------

    * Insert the title of the clause providing for economic price 
adjustment. (End of provision)
---------------------------------------------------------------------------

    (b) Offers that provide for adjustment(s) that may exceed any 
maximum adjustment stipulated in the clause, or that limit or delete any 
downward adjustment stipulated in the clause, shall be rejected.

[57 FR 842, Jan. 9, 1992]



Sec. 1852.216-73  Estimated cost and cost sharing.

    As prescribed in 1816.307-70(a), insert the following clause:

               Estimated Cost and Cost Sharing (Dec 1991)

    (a) It is estimated that the total cost of performing the work under 
this contract will be $__________.
    (b) For performance of the work under this contract, the Contractor 
shall be reimbursed for not more than __________ percent of the costs of 
performance determined to be allowable under the Allowable Cost and 
Payment clause. The remaining __________ percent or more of the costs of 
performance so determined shall constitute the Contractor's share, for 
which it will not be reimbursed by the Government.
    (c) For purposes of the __________ [insert ``Limitation of Cost'' or 
``Limitation of Funds''] clause, the total estimated cost to the 
Government is hereby established as $__________ (insert estimated 
Government share); this amount is the maximum cost for which the 
Government is obligated.
    (d) The Contractor shall maintain records of all contract costs 
claimed by the Contractor as constituting part of its share. Those 
records shall be subject to audit by the Government. Costs contributed 
by the Contractor shall not be charged to the Government under any other 
grant, contract, or agreement (including allocation to other grants, 
contracts, or agreements as part of an independent research and 
development program).

                             (End of clause)

[57 FR 842, Jan. 9, 1992]



Sec. 1852.216-74  Estimated cost and fixed fee.

    As prescribed in 1816.307-70(b), insert the following claus:

                 Estimated Cost and Fixed Fee (Dec 1991)

    The estimated cost of this contract is __________ exclusive of the 
fixed fee of __________. The total estimated cost and fixed fee is 
__________.

                             (End of clause)

[57 FR 842, Jan. 9, 1992]



Sec. 1852.216-75  Payment of fixed fee.

    As prescribed in 1816.307-70(c), insert the following clause:

                     Payment of Fixed Fee (Dec 1988)

    The fixed fee shall be paid in monthly installments based upon the 
percentage of completion of work as determined by the Contracting 
Officer.

[[Page 421]]

                             (End of clause)



Sec. Sec. 1852.216-76  Award Fee for Service Contracts.

    As prescribed in 1816.405-70(a), insert the following clause:

               Award Fee for Service Contracts (Sept 1993)

    (a) The contractor can earn award fee from a minimum of zero dollars 
to the maximum stated in NASA FAR Supplement clause 1852.216-85, 
``Estimated Cost and Award Fee'' in this contract.
    (b) Beginning 6* months after the effective date of this contract, 
the Government shall evaluate the Contractor's performance every 6* 
months to determine the amount of award fee earned by the contractor 
during the period. The Contractor may submit a self-evaluation of 
performance for each evaluation period under consideration. These self-
evaluations will be considered by the Government in its evaluation. The 
Government's Fee Determination Official (FDO) will determine the award 
fee amounts based on the Contractor's performance in accordance with 
[identify performance evaluation plan]. The plan may be revised 
unilaterally by the Government prior to the beginning of any rating 
period to redirect emphasis.
    (c) The Government will advise the Contractor in writing of the 
evaluation results. The Contracting Officer will issue a unilateral 
modification to the contract that will recognize the award fee earned. 
The Contractor is not required to submit a separate voucher for earned 
award fee. The [insert payment office] will make payment based on the 
unilateral modification.
    (d) The amount of award fee which can be awarded in each evaluation 
period is limited to the amounts set forth at [identify location of 
award fee amounts]. Award fee which is not earned in an evaluation 
period cannot be reallocated to future evaluation periods.
    (e) Award fee determinations made by the Government under this 
contract are not subject to the Disputes clause.
    * A period of time greater or lesser than 6 months may be 
substituted in accordance with 1816.404-272(a).

                               Alternate I

                               (Sept 1993)

    As prescribed in 1816.405-70(a), insert the following paragraph (e) 
and reletter existing paragraph (e) to (f):
    (e) (1) Pending a determination of the amount of award fee earned 
for an evaluation period, a portion of the available award fee for that 
period will be paid to the contractor on a ________ [Insert the 
frequency of provisional payments (not more often than monthly] basis. 
The portion paid will be ________ [Insert percentage (not to exceed 80 
percent) for provisional payments] percent of the current period's 
available amount; provided, however, that when the Contracting Officer 
determines that the Contractor will not achieve a level of performance 
commensurate with the provisional rate, payment of provisional award fee 
will be discontinued or reduced in such amounts as the Contracting 
Officer deems appropriate. The Contracting Officer shall notify the 
Contractor in writing if it is determined that such discontinuance or 
reduction is appropriate. This determination is not subject to the 
Disputes clause.
    (2) In the event the amount of award fee earned, as determined by 
the FDO, is less than the sum of the provisional payments made for that 
period, the Contractor will either credit the next payment voucher for 
the amount of such overpayment or refund the difference to the 
Government, as directed by the Contracting Officer.
    (3) Provisional award fee payments will [insert ``not'' if 
appropriate] be made prior to the first award fee determination by the 
Government.

                             (End of clause)

58 FR 52449, Oct. 8, 1993]



Sec. 1852.216-77  Award Fee for Non-Service Contracts.

    As prescribed in 1816.405-70(b), insert the following clause:

             Award Fee for Non-Service Contracts (Sept 1993)

    (a) The contractor can earn award fee, or base fee, if any, from a 
minimum of zero dollars to the maximum stated in NASA FAR Supplement 
clause 1852.216-85, ``Estimated Cost and Award Fee'' in this contract. 
All award fee evaluations, with the exception of the last evaluation, 
will be interim evaluations. At the last evaluation, which is final, the 
Contractor's performance for the entire contract will be evaluated to 
determine total earned award fee. No award fee or base fee will be paid 
to the Contractor if the final award fee evaluation is ``poor/
unsatisfactory.''
    (b) Beginning 6* months after the effective date of this contract, 
the Government shall evaluate the Contractor's interim performance every 
6* months to monitor Contractor performance prior to contract completion 
and to provide feedback to the Contractor. The evaluation will be 
performed in accordance with [identify performance evaluation plan] to 
this contract. The Contractor may submit a self-evaluation of 
performance for

[[Page 422]]

each period under consideration. These self-evaluations will be 
considered by the Government in its evaluation. The Government will 
advise the Contractor in writing of the evaluation results. The plan may 
be revised unilaterally by the Government prior to the beginning of any 
rating period to redirect emphasis.
---------------------------------------------------------------------------

    * A period of time greater or lesser than 6 months may be 
substituted in accordance with 1816.404-272(a).
---------------------------------------------------------------------------

    (c)(1) Provisional payments will [insert ``not'' if applicable] be 
made under this contract. Pending the final evaluation, provisional 
award fee, including base fee if any, payments will be made to the 
Contractor on a [insert the frequency of provisional payments (not more 
often than monthly)] basis. The amount of award fee, including base fee, 
if any, which will be provisionally paid in each evaluation period is 
limited to the lesser of the interim evaluation score, applied as a 
percentage, or 80 percent of the award fee allocated to that period (see 
[insert applicable cite]). If the Government determines that (i) the 
total amount of provisional fee payments will apparently substantially 
exceed the anticipated final evaluation score, or (ii) the interim 
evaluation is ``poor/unsatisfactory,'' no provisional fee payment shall 
be made for that period.
    (2) The Contracting Officer will issue a unilateral modification to 
the contract that will recognize any provisional award fee, including 
base fee if any, paid, for the interim performance period evaluated. The 
Contractor is not required to submit a separate voucher for provisional 
fee payments. The [insert payment office] will make payment based on the 
unilateral modification.
    (3) All provisional fee payments will be superseded by the fee 
determination made in the final award fee evaluation. The Government 
will then pay the Contractor, or the Contractor will refund to the 
Government, the difference between the final award fee determination and 
the cumulative provisional fee payments.
    (d) Award fee determinations made by the Government under this 
contract are not subject to the Disputes clause.

                             (End of clause)

[58 FR 52449, Oct. 8, 1993, as amended at 59 FR 21668, Apr. 26, 1994]



Sec. 1852.216-78  Firm fixed price.

    As prescribed in 1816.202-70, insert the following clause:

                       Firm Fixed Price (Dec 1988)

    The total firm fixed price of this contract is $______ [Insert the 
appropriate amount].

                             (End of clause)



Sec. 1852.216-79  Level-of-Effort (Fixed-Price).

    As prescribed in 1816.207-70(a), insert the following clause:

                Level-of-Effort (Fixed-Price) (Dec 1991)

    (a) In accomplishing the work required under this contract, the 
Contractor shall provide __________ direct labor hours as a minimum. 
These hours shall be expended as follows:

              Labor Category and Minimum Direct Labor Hours

    (Insert the labor categories and associated direct labor hours.)

    (b) ``Direct labor hours'' are those productive hours expended by 
Contractor personnel in performing work under this contract that are 
charged as direct labor under the Contractor's established accounting 
policy and procedures. The term does not include sick leave, vacation, 
holiday leave, military leave, or any type of administrative leave but 
does include direct labor hours provided under level-of-effort 
subcontracts.
    (c) The Contractor may, at its own option, furnish more than the 
stated direct labor hours; however, the Contractor shall not be entitled 
to any increase in the fixed price of the contract for exceeding the 
stated direct labor hours.
    (d) Within thirty (30) days after the end of the performance period 
and before submission of an invoice for final payment, the Contractor 
shall submit to the Contracting Officer a statement certifying the 
actual total number of direct labor hours expended under this contract. 
The Contractor further agrees to make available to the Contracting 
Officer such records as the Contracting Officer may reasonably require 
to determine that the minimum number of labor hours specified in this 
clause were expended in the performance of the work.
    (e) If, at the end of the contract term, the Contractor has not 
provided the minimum direct labor hours specified above, the total fixed 
price of this contract shall be reduced as follows:
(Insert either a formula based upon the number of hours expended in the 
separate labor categories or the product of the hours of unexpended 
labor multiplied by one specified rate.)

                             (End of clause)

[57 FR 843, Jan. 9, 1992]

[[Page 423]]



Sec. 1852.216-80  Task Ordering Procedure.

    As prescribed in 1816.307-70(d), insert the following clause:

                   Task Ordering Procedure (Dec 1991)

    Performance under this contract is subject to the following ordering 
procedure.
    (a) Within the direct labor hours specified in the Level-of-Effort 
clause of this contract, the Contractor shall incur costs under this 
contract in the performance of task orders and task order modifications 
issued in accordance with this ordering procedure. No other costs are 
authorized without the express written consent to the Contracting 
Officer.
    (b) From time to time during the term of this contract, the 
Contracting Officer will issue task orders in writing to the Contractor, 
providing specific information on work to be performed within the scope 
of the contract.
    (1) Task orders will contain, as a minimum, the following 
information:
    (i) Signature of the Contracting Officer.
    (ii) Contract number, order number, and date.
    (iii) Description of work.
    (iv) Maximum dollar amount authorized (cost and fee or price).
    (v) Maximum number of contract labor hours and other resources 
authorized.
    (vi) Documentation requirements.
    (vii) Delivery/performance schedule.
    (viii) Quality assurance standards, as appropriate.
    (ix) Travel authorized.
    (x) Any other necessary information.
    (2) Unless otherwise directed by the Contracting Officer, the 
Contractor shall submit the following information for each task order:
    (i) Discussion of the technical approach for performing the work.
    (ii) Estimated date of commencement of work, and any changes 
proposed to the schedule of performance.
    (iii) Direct labor hours, both straight time and overtime (if 
authorized), on a monthly basis by applicable labor category, and the 
total direct labor hours, including those in paragraph (2)(b)(iv)(B) of 
this clause, estimated to complete the task.
    (iv) The total estimated cost and fee, where appropriate, for 
completion of the task order, including:
    (A) The travel and material estimates.
    (B) An estimate for subcontractors and consultants, including the 
direct labor hours, if applicable.
    (C) Estimated computer use time required, if applicable.
    (D) Other pertinent information, such as indirect costs and inter-
divisional transfers.
    (3) Each task order shall require the Contractor to acknowledge 
receipt and acceptance of the task order within ten calendar days after 
receipt. If the Contractor cannot comply with a task order requirement, 
the Contractor shall indicate in his acknowledgment, the changes 
required prior to his acceptance. Any differences must be resolved 
between the parties and the order modified to reflect the agreement.

                             (End of clause)

[57 FR 843, Jan. 9, 1992]



Sec. 1852.216-81   Estimated cost.

    As prescribed in 1816.307-70(e), insert the following clause:

                        Estimated Cost (Dec 1988)

    The total estimated cost for complete performance of this contract 
is $______ [Insert total estimated cost of the contract]. See FAR clause 
52.216-11, Cost Contract--No Fee, of this contract.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 57 FR 40856, Sept. 8, 1992]



Sec. 1852.216-82  Level-of-effort (cost).

    As prescribed in 1816.307-70 (f), insert the following clause:

                    Level-of-Effort (Cost) (Dec 1991)

    (a) (1) During the term of the contract, the Contractor is obligated 
to provide not less than __________ (insert minimum percentage or 
minimum number of hours) nor more than __________ (insert maximum 
percentage or maximum number of hours) of __________ total direct labor 
hours. The total direct labor hours are distributed between the 
contractor's applicable labor categories as follows:

                  Labor Category and Direct Labor Hours

    (Insert the labor categories and associated direct labor hours.)

    (2) The allocation of total direct labor hours between labor 
categories, as shown in paragraph (a)(1), reflects the best estimate of 
the skill mix required to perform the contract. It is understood and 
agreed that this allocation of direct labor hours may be varied, if 
necessary, in the actual performance of the work.
    (b) ``Direct labor hours'' are those productive hours expended by 
Contractor personnel in performing work under this contract that are 
charged as direct labor under the Contractor's established accounting 
policy and procedures. The term does not include sick leave, vacation, 
holiday leave, military leave, or any type of administrative leave

[[Page 424]]

but does include direct labor hours provided under level-of-effort 
subcontracts.
    (c) Once the maximum number of direct labor hours is reached or the 
contract term has ended, the Contractor's obligations under the contract 
are fulfilled, even though the specified work may not have been 
completed. The Contractor is not authorized to exceed the maximum of the 
direct labor hours specified in paragraph (a) of this clause. Any 
estimated cost and fee(s) adjustments for additional direct labor hours 
shall be based solely upon those hours being added to the maximum number 
of direct labor hours specified in this clause.
    (d) The fee, if any, is based upon the furnishing of at least the 
specified minimum number of direct labor hours, including subcontract 
hours. If the Contractor provides less than that specified minimum 
number of hours prior to expiration of the contract term, and the 
Government has not invoked its rights under the Termination clause of 
this contract to adjust the contract for such reduced effort, the 
Contracting Officer may unilaterally make an equitable downward 
adjustment to the contract fee. The downward adjustment in fee will be 
based upon the difference between the minimum direct labor hours 
specified under this clause and the amount of direct labor hours 
provided by the Contractor. Prior to making such an adjustment, the 
Contracting Officer will request the Contractor provide a written 
discussion of any extenuating circumstances (e.g., productivity 
improvements or reductions in contract scope) which contributed to the 
underrun. Any information provided by the Contractor will be considered 
by the Contracting Officer in determining the amount of the downward 
adjustment in fee.

                             (End of clause)

[57 FR 843, Jan. 9, 1992]



Sec. 1852.216-83  Fixed Price Incentive.

    As prescribed in 1816.405-70(c), insert the following clause:

                    Fixed Price Incentive (Dec 1991)

    The target cost of this contract is $__________. The Target profit 
of this contract is $__________. The target price (target cost plus 
target profit) of this contract is $__________. [The ceiling price is 
$__________.]

                             (End of clause)

[57 FR 844, Jan. 9, 1992, as amended at 58 FR 52450, Oct. 8, 1993]



Sec. 1852.216-84  Estimated Cost and Incentive Fee.

    As prescribed in 1816.405-70(d), insert the following clause:

               Estimated Cost and Incentive Fee (Dec 1991)

    The target cost of this contract is $__________. The target fee of 
this contract is $__________. The total target cost and target fee as 
contemplated by the Incentive Fee clause of this contract are 
$__________.

                             (End of clause)

[57 FR 844, Jan. 9, 1992, as amended at 58 FR 52450, Oct. 8, 1993]



Sec. 1852.216-85   Estimated Cost and Award Fee

    As prescribed in 1816.405-70(e), insert the following clause:

                Estimated Cost and Award Fee (Sept 1993)

    The estimated cost of this contract is $________. The maximum 
available award fee, excluding base fee, if any, is $________. The base 
fee is $________. Total estimated cost, base fee, and maximum award fee 
are $________.

                               Alternate I

                               (Sept 1993)

    As prescribed in 1816.405-70(e), change the title to read ESTIMATED 
COST, AWARD FEE AND PERFORMANCE INCENTIVE and insert the following 
sentence at the end of the clause:
    The maximum positive performance incentive is $________. The maximum 
negative performance incentive is (1).
    (1) For research and development hardware contracts, insert [equal 
to total earned award fee (including any base fee)]. For production 
hardware contracts, insert [$ (total potential award fee amount, 
including any base fee)]

                             (End of clause)

[58 FR 52450, Oct. 8, 1993]



Sec. 1852.216-86  Settlement of Letter Contract.

    As prescribed in 1816.603-470, insert the following clause:

                Settlement of Letter Contract (Dec 1991)

    (a) This contract constitutes the definitive contract contemplated 
by issuance of letter contract __________ (insert number), dated 
__________. It supersedes the letter contract and its modification 
no.(s) __________ and, to the extent of any inconsistencies, governs.
    (b) The cost(s) and fee(s), or price(s), established in this 
definitive contract represent full and complete settlement of letter 
contract __________ and modification no.(s) __________.

[[Page 425]]

                             (End of clause)

[57 FR 844, Jan. 9, 1992]



Sec. 1852.216-87  Submission of vouchers for payment.

    As prescribed in 1816.307-70(g), insert the following clause:

              Submission of Vouchers for Payment (Dec 1988)

    (a) Public vouchers for payment of costs shall include a reference 
to this contract [Insert the contract number] and be forwarded to:

[Insert the mailing address for submission of cost vouchers.]
    This is the designated billing office for cost vouchers for purposes 
of the Prompt Payment clause of this contract.
    (b) The Contractor shall prepare vouchers as follows: (1) One 
original Standard Form (SF) 1034, SF 1035, or equivalent Contractor's 
attachment.
    (2) Seven copies of SF 1034A, SF 1035A, or equivalent Contractor's 
attachment.
    (3) The Contractor shall mark SF 1034A copies 1, 2, 3, 4, and such 
other copies as may be directed by the Contracting Officer by insertion 
in the memorandum block the names and addresses as follows:
    (i) Copy 1 NASA Contracting Officer;
    (ii) Copy 2 Auditor;
    (iii) Copy 3 Contractor;
    (iv) Copy 4 Contract administration office; and
    (v) Copy 5 Project management office.
    (c) Public vouchers for payment of fee shall be prepared similarly 
and be forwarded to:

[Insert the mailing address for submission of fee vouchers.]
    This is the designated billing office for fee vouchers for purposes 
of the Prompt Payment clause of this contract.
    (d) In the event that amounts are withheld from payment in 
accordance with provisions of this contract, a separate voucher for the 
amount withheld will be required before payment for that amount may be 
made.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 57 FR 844, Jan. 9, 1992]



Sec. 1852.216-88  Performance incentive

    As prescribed in 1816.405-70(f), insert the following clause:

                    Performance Incentive (Sept 1993)

    (a) A performance incentive applies to the following hardware 
item(s) delivered under this contract: (1) The performance incentive 
will measure the performance of those items against the salient hardware 
performance requirement, called ``unit(s) of measurement,'' e.g., months 
in service or amount of data transmitted, identified below. The 
performance incentive becomes effective when the hardware is put into 
service. It includes a standard performance level, a positive incentive, 
and a negative incentive, which are described in this clause.
    (b) Standard performance level. At the standard performance level, 
the Contractor has met the contract requirement for the unit of 
measurement. Neither positive nor negative incentives apply when this 
level is achieved but not exceeded. The standard performance level for 
(1) is established as follows: (2)
    (2) Positive incentive. The Contractor earns a separate positive 
incentive amount for each hardware item listed in paragraph (a) of this 
clause when the standard performance level for that item is exceeded. 
The amount earned for each item varies with the units of measurement 
achieved, up to a maximum positive performance incentive amount of $ (3) 
per item. The units of measurement and the incentive amounts associated 
with achieving each unit are shown below: (4)
    (d) Negative incentive. The Contractor will pay to the Government a 
negative incentive amount for each hardware item that fails to achieve 
the standard performance level. The amount to be paid for each item 
varies with the units of measurement achieved, up to the maximum 
negative incentive amount of $ (5). The units of measurement and the 
incentive amounts associated with achieving each unit are shown below: 
(6)
    (e) The final calculation of positive or negative performance 
incentive amounts shall be done when performance (as defined by the unit 
of measurement) ceases or when the maximum positive incentive is 
reached.
    (1) When the Contracting Officer determines that the performance 
level achieved fell below the standard performance level, the Contractor 
will either pay the amount due the Government or credit the next payment 
voucher for the amount due, as directed by the Contracting Officer.
    (2) When the performance level exceeds the standard level, the 
Contractor may request payment of the incentive amount associated with a 
given level of performance, provided that such payments shall not be 
more frequent than monthly. When performance ceases or the maximum 
positive incentive is reached, the Government shall calculate the final 
performance incentive earned and unpaid and promptly remit it to the 
contractor.
    (f) If performance cannot be demonstrated, through no fault of the 
Contractor, within (insert number of months or years] after the date of 
hardware acceptance by the Government, the Contractor will be paid 
[insert percentage] of the maximum performance incentive.

[[Page 426]]

    (g) The decisions made as to the amount(s) of positive or negative 
incentives are subject to the Disputes clause.
    (1) Insert applicable item number(s) and/or nomenclature.
    (2) Insert a specific unit of measurement for each hardware item 
listed in (1) and each salient characteristic, if more than one.
    (3) Insert the maximum positive performance incentive amount (see 
1816.404-276(g)(1) and (2)).
    (4) Insert all units of measurement and associated dollar amounts up 
to the maximum performance incentive.
    (5) For research and development hardware contracts, insert [equal 
to total earned award fee (including any base fee)]. For production 
hardware contracts, insert [$____ (total potential award fee amount, 
including any base fee)] (see 1816.404-276(g)(3)).
    (6) Insert all units of measurement and associated dollar amounts up 
to the maximum negative performance incentive.

                             (End of clause)

[58 FR 52450, Oct. 8, 1993]



Sec. 1852.216-89  Allowable cost and payment.

    As prescribed at 1816.307-70(h), insert the following clause:

                 Allowable Cost and Payment (April 1994)

    Allowable costs shall be determined by the contracting officer in 
accordance with 1831.205-18 in addition to the provisions of (FAR) 48 
CFR subpart 31.2.

(End of clause)

[59 FR 22521, May 2, 1994, as amended at 59 FR 29964, June 10, 1994]



Sec. 1852.217-70  Property administration and reporting.

    As prescribed in 1817.7002-4 insert the following clause:

            Property Administration and Reporting (Dec 1988)

    All property acquired for, and reimbursed by, NASA or transferred by 
NASA for use under this NASA-Defense Purchase Request shall be 
controlled and accounted for in accordance with the Military 
Department's normal procedures. All excess items, however, costing $500 
or more and in condition Code 7 or better (GSA Condition Codes) shall be 
reported to the NASA originating office for possible reutilization 
before disposition.

                             (End of clause)



Sec. 1852.219-73  Small business and small disadvantaged business subcontracting plan.

    As prescribed in 1819.708-70(a), insert the following provision:

Small Business and Small Disadvantaged Business Subcontracting Plan (Dec 
                                  1988)

    (a) This provision is not applicable to small business concerns.
    (b) The contract expected to result from this solicitation will 
contain FAR clause 52.219-9, ``Small Business and Small Disadvantaged 
Business Subcontracting Plan.'' The apparently successful offeror must 
submit the complete plan within ________ [Insert number of days] 
calendar days after request by the Contracting Officer.

                           (End of provision)

                         Alternate I (Dec 1988)

    As prescribed in 1819.708-70(a), delete the last sentence of 
paragraph (b) of the basic clause and substitute the following:
    Each offeror must submit the complete plan with its initial 
proposal.

[54 FR 28340, July 5, 1989, as amended at 58 FR 51142, Sept. 30, 1993]



Sec. 1852.219-74  Use of Rural Area Small Businesses.

    As prescribed in 1819.7103, insert the following clause:

              Use of Rural Area Small Business (Sept 1990)

    (a) Definitions.
    Rural area means any county with a population of fewer than twenty 
thousand individuals.
    Small business concern, as used in this clause, means a concern, 
including its affiliates, that is independently owned and operated, not 
dominant in the field of operation in which it is bidding under this 
contract, and qualified as a small business under the criteria and size 
standards in 13 CFR part 121.
    (b) NASA prime and subcontractors are encouraged to use their best 
efforts to award subcontracts to small business concerns located in 
rural areas.
    (c) Contractors acting in good faith may rely on written 
representations by their subcontractors regarding their status as small 
business concerns located in rural areas.
    (d) The Contractor agrees to insert the provisions of this clause, 
including this paragraph (d), in all subcontracts hereunder that offer 
subcontracting possibilities.

[[Page 427]]

                             (End of clause)

[55 FR 47479, Nov. 14, 1990]



Sec. 1852.219-75  Small Business and Small Disadvantaged Business Subcontracting Reporting.

    As prescribed in 1819.708-70(b), insert the following contract 
clause:

Small Business and Small Disadvantaged Business Subcontracting Reporting 
                               (Oct 1995)

    (a) The Contractor shall submit the Summary Subcontract Report 
(Standard Form (SF) 295) semiannually for the reporting periods 
specified in block 4 of the form. All other instructions for the SF 295 
remain in effect.
    (b) The Contractor shall include this clause in all subcontracts 
that include the clause at FAR 52.219-9.

                             (End of clause)

[58 FR 51142, Sept. 30, 1993, as amended at 60 FR 53881, Oct. 18, 1995]



Sec. 1852.219-76  NASA Small Disadvantaged Business Goal.

    As prescribed in 1819.7004, insert the following clause:

           NASA Small Disadvantaged Business Goal (July 1991)

    (a) Definitions.

    Historically Black Colleges and Universities, as used in this 
clause, means institutions determined by the Secretary of Education to 
meet the requirements of 34 CFR 608.2 and listed therein.
    Minority educational institutions, as used in this clause means 
institutions meeting the critera established in 34 CFR 607.2 by the 
Secretary of Education.
    Small disadvantaged business concern, as used in this clause, means 
a small business concern owned or controlled by individuals who are both 
socially and economically disadvantaged (within the meaning of section 
8(a) (5) and (6) of the Small Business Act (15 U.S.C. 637(a) (5) and 
(6)). For purposes of this clause, socially and economically 
disadvantaged individuals shall be deemed to include women.
    (b) The NASA Administrator is required to ensure, to the fullest 
extent possible, that at least 8% of the total value of prime and 
subcontracts awarded in support of authorized programs, including the 
space station by the time operational status is obtained, is made 
available to small business concerns or other organizations owned or 
controlled by socially and economically disadvantaged individuals 
(including women), Historically Black Colleges and Universities, and 
minority educational institutions.
    (c) The contractor hereby agrees to assist NASA in achieving this 
goal by using its best efforts to award subcontracts to small 
disadvantaged business concerns, Historically Black Colleges and 
Universities, and minority educational institutions, as defined in this 
clause, to the fullest extent consistent with efficient contract 
performance.
    (d) Contractors acting in good faith may rely on written 
representations by their subcontractors regarding their status as small 
disadvantaged business concerns, Historically Black Colleges and 
Universities, and minority educational institutions.

                             (End of clause)

[56 FR 48748, Sept. 26, 1991; 56 FR 56691, Nov. 6, 1991]



Sec. 1852.219-77  NASA Mentor-Protege Program.

    As prescribed in 1819.7219(a), insert the following provision:

                 NASA Mentor Protege Program (Jan. 1994)

    (a) Prime contractors, including certain small businesses, are 
encouraged to participate in the NASA pilot mentor-protege program for 
the purpose of providing developmental assistance to eligible protege 
entities to enhance their capabilities and increase their participation 
in NASA contracts.
    (b) The pilot program consists of:
    (1) Mentor firms, which are large prime contractors with at least 
one active subcontracting plan or eligible small businesses;
    (2) Protege, which are subcontracting under the prime contractor, 
include Small Disadvantaged Business (SDB) concerns including women-
owned small businesses, Historically Black Colleges and Universities, 
and Minority Institutions, as those terms are defined in NASA FAR 
Supplement 1819.7202.
    (3) Mentor-protege agreements, approved by the NASA Office of Small 
and Disadvantaged Business Utilization (OSDBU);
    (4) Potential of payment of additional award fee for voluntary 
participation and successful performance in the mentor-protege program.
    (c) Mentor participation in the program, described in 48 CFR 
1819.72, means providing technical, managerial and financial assistance 
to aid proteges in developing requisite high-tech expertise and business 
systems to compete for and successfully perform NASA contracts and 
subcontracts.
    (d) Contractors interested in participating in the pilot program are 
encouraged to contact the NASA OSDBU, Washington, DC

[[Page 428]]

20546, (202) 358-2088, for further information. (End of clause)

[60 FR 15503, Mar. 24, 1995]



Sec. 1852.219-78  Evaluation of Prime Contractor Participation in the NASA Mentor Protege Program.

    As prescribed in 1819.7219(b), insert the following provision:

Evaluation of Prime Contractor Participation in the NASA Mentor-Protege 
                           Program (Dec 1994)

    NASA will consider (evaluate) the proposed participation and extent 
of developmental assistance to be provided by a prime contractor to 
protege firms as an approved Mentor in the NASA Mentor-Protege Program 
under the SDB Utilization subfactor under Mission Suitability.

[60 FR 15503, Mar. 24, 1995]



Sec. 1852.219-79  Mentor Requirements and evaluation.

    As prescribed in 1819-7219(c), insert the following provision:

              Mentor Requirements and Evaluation (Dec 1994)

    (a) The purpose of the NASA Mentor-Protege Program (s) is for a NASA 
prime contractor to provide developmental assistance to certain 
subcontractors qualifying as proteges. Eligible proteges include Small 
Disadvantaged Business concerns including women-owned small businesses, 
Historically Black Colleges and Universities, and Minority Institutions, 
as those terms are defined in NASA FAR Supplement 1819.7202.
    (b) NASA will evaluate the contractor's performance through the 
Performance Evaluation process. The evaluation will consider the 
following:
    (1) Specific actions taken by the contractor, during the evaluation 
period, to increase the participation of proteges as subcontractors and 
suppliers;
    (2) Specific actions taken by the contractor during this evaluation 
period to develop the technical and corporate administrative expertise 
of a protege as defined in the agreement;
    (3) To what extent the Protege has met the developmental objectives 
in the agreement; and
    (4) To what extent the firm's participation in the Mentor-Protege 
Program resulted in the Protege receiving competitive contract(s) and 
subcontract(s) from private firms and agencies other than the Mentor.
    (c) Semi-annual reports shall be submitted by the mentor to the NASA 
mentor-protege program manager, NASA Headquarters OSDBU to include 
information as outlined in 1819.7206(b).
    (d) The Mentor will notify the OSDBU and the contracting officer, in 
writing, at least 30 days in advance of the mentor firm's intent to 
voluntarily withdraw from the program or upon receipt of a Protege's 
notice to withdraw from the Program;
    (e) Mentor and protege firms will submit a ``lessons learned'' 
evaluation to the NASA OSDBU at the conclusion of the pilot program 
period or the conclusion of their effort which ever comes first. At the 
conclusion of each year in the mentor-protege program, the prime 
contractor and protege, as appropriate, will formally brief the NASA 
mentor-protege program manager, the technical program manager, and the 
contracting officer during a formal program review regarding program 
accomplishments as pertains to the approved agreement.
    (f) NASA may terminate Mentor-Protege agreements and exclude Mentor 
or Protege firms from participating in the NASA program if NASA 
determines that such actions are in NASA's interest. These actions shall 
be approved by the NASA OSDBU. NASA shall terminate an agreement by 
delivering to the contractor a Notice specifying the reason for 
termination and the effective date. Termination of an agreement does not 
constitute a termination of the subcontract between the mentor and the 
protege. A plan for accomplishing the subcontract effort should the 
agreement be terminated shall be submitted with the agreement as 
required in 1819.7213(h).

(End of clause)

[60 FR 15503, Mar. 24, 1995]



Sec. 1852.222-70  Facilities nondiscrimination notice.

    As prescribed in 1822.7002(a), insert the following clause:

             Facilities Nondiscrimination Notice (Apr 1988)

    If the annual rental under this lease, combined with the annual 
rental under all other NASA leases of space in the building in which the 
space covered by this lease is located, exceeds $10,000, the lessor 
agrees to comply with the requirements of the Facilities 
Nondiscrimination clause of this contract.

                             (End of clause)



Sec. 1852.222-71  Facilities nondiscrimination.

    As prescribed in 1822.7002(b), insert the following clause:

[[Page 429]]

                 Facilities Nondiscrimination (Dec 1988)

    (a) As used in this clause, ``facility'' means store, shop, 
restaurant, cafeteria, rest room, or any other public facility in the 
building in which the space covered by this lease is located.
    (b) The lessor shall not discriminate against anyone because of 
race, color, religion, or national origin in furnishing, or by refusing 
to furnish, the use of any facility, including any services, privileges, 
accommodations, and activities provided by that facility. Nothing in 
this clause requires the furnishing to the general public of the use of 
any facility customarily furnished by the lessor solely to tenants and 
their employees, customers, patients, clients, guests, and invitees.
    (c) Any noncompliance by the lessor with this clause shall 
constitute a material breach of this lease. In the event of 
noncompliance, the Government may take appropriate action to enforce 
compliance, may terminate this lease, or may pursue any other remedies 
provided by law. In the event of termination, the lessor is liable for 
all excess costs of the Government in acquiring substitute space, 
including the cost of moving to that space. Substitute space shall be 
obtained in as close proximity to the lessor's building as is feasible, 
and moving costs shall be limited to the actual expenses incurred.
    (d) Whenever an agreement is to be entered into or a concession is 
to be permitted to operate, the lessor shall include or require the 
inclusion of paragraphs (a), (b), and (c) of this clause in every such 
agreement or concession arrangement under which any person other than 
the lessor operates or has the right to operate any facility. Nothing in 
this clause, however, requires the lessor to include or require the 
inclusion of those paragraphs in any previously existing agreement or 
concession arrangement, or in one under which a party other than the 
lessor has the unilateral right to renew or extend the agreement or 
arrangement, until the expiration of the existing agreement or 
arrangement and the unilateral right to renew or extend.
    (e) The lessor shall take, as expeditiously as possible, any lawful 
actions NASA may direct to enforce the intent of this clause, including 
termination of the agreement or concession and institution of court 
action.

                             (End of clause)



Sec. 1852.223-70  Safety and Health.

    As prescribed in 1823.7004(c), insert the following clause:

                      Safety and Health (Feb 1996)

    (a) The Contractor shall take all reasonable safety and health 
measures in performing under this contract. The Contractor shall comply 
with all Federal, State, and local laws applicable to safety and health 
in effect on the date of this contract and with the safety and health 
standards, specifications, reporting requirements, and provisions set 
forth in the contract Schedule.
    (b) The Contractor shall take or cause to be taken any other safety 
and health measures the Contracting Officer may reasonably direct. To 
the extent that the Contractor may be entitled to an equitable 
adjustment for those measures under the terms and conditions of this 
contract, the equitable adjustment shall be determined pursuant to the 
procedures of the changes clause of this contract; provided, that no 
adjustment shall be made under this Safety and Health clause for any 
change for which an equitable adjustment is expressly provided under any 
other provision of the contract.
    (c) The Contractor shall immediately notify and promptly report to 
the Contracting Officer or a designee any accident, incident, or 
exposure resulting in fatality, lost-time occupational injury, 
occupational disease, contamination of property beyond any stated 
acceptable limits set forth in the contract Schedule, or property loss 
of $25,000 or more arising out of work performed under this contract. 
The Contractor is not required to include in any report an expression of 
opinion as to the fault or negligence of any employee. Service 
contractors (excluding construction contracts) shall provide quarterly 
reports specifying lost-time frequency rate, number of lost-time 
injuries, exposure, and accident/incident dollar losses as specified in 
the contract Schedule. The Contractor shall investigate all work-related 
incidents or accidents to the extent necessary to determine their causes 
and furnish the Contracting Officer a report, in such form as the 
Contracting Officer may require, of the investigative findings and 
proposed or completed corrective actions.
    (d) (1) The Contracting Officer may notify the Contractor in writing 
of any noncompliance with this clause and specify corrective actions to 
be taken. The Contractor shall promptly take and report any necessary 
corrective action.
    (2) If the Contractor fails or refuses to institute prompt 
corrective action in accordance with subparagraph (d)(1) of this clause, 
the Contracting Officer may invoke the stop-work order clause in this 
contract or any other remedy available to the Government in the event of 
such failure or refusal.
    (e) The Contractor (or subcontractor or supplier) shall insert the 
substance of this clause, including this paragraph (e) and any 
applicable Schedule provisions, with appropriate changes of designations 
of the parties, in subcontracts of every tier that (1) amount to 
$1,000,000 or more (unless the Contracting Officer makes a written 
determination that

[[Page 430]]

this is not required), (2) require construction, repair, or alteration 
in excess of the simplified acquisition threshold, or (3) regardless of 
dollar amount, involve the use of hazardous materials or operations.
    (f) Authorized Government representatives of the Contracting Officer 
shall have access to and the right to examine the sites or areas where 
work under this contract is being performed in order to determine the 
adequacy of the Contractor's safety and health measures under this 
clause.
    (g) As a part of the Contractor's safety plan (and health plan, when 
applicable) and to the extent required by the Schedule, the Contractor 
shall furnish a list of all hazardous operations to be performed, 
including operations indicated in paragraphs (a) and (b) of this clause, 
and a list of other major or key operations required or planned in the 
performance of the contract, even though not deemed hazardous by the 
Contractor. NASA and the Contractor shall jointly decide which 
operations are to be considered hazardous, with NASA as the final 
authority. Before hazardous operations commence, the Contractor shall 
submit for NASA concurrence either or both of the following, as required 
by the contract Schedule or by the Contracting Officer:
    (1) Written hazardous operating procedures for all hazardous 
operations.
    (2) A certification program for personnel involved in hazardous 
operations.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 56 FR 12460, Mar. 26, 1991; 58 
FR 51142, Sept. 30, 1993; 61 FR 5315, Feb. 12, 1996]



Sec. 1852.223-71  Frequency authorization.

    As prescribed in 1823.7101, insert the following clause:

                   Frequency Authorization (Dec 1988)

    (a) Authorization of radio frequencies required in support of this 
contract shall be obtained by the Contractor or subcontractor in need 
thereof.
    (b) For any experimental, developmental, or operational equipment 
for which the appropriate frequency allocation has not been made, the 
Contractor or subcontractor shall provide the technical operating 
characteristics of the proposed electromagnetic radiating device to the 
Contracting Officer during the initial planning, experimental, or 
developmental phase of contractual performance. Procedures furnished by 
the Contracting Officer shall be followed in obtaining radio frequency 
authorization.
    (c) This clause, including this paragraph (c), shall be included in 
all subcontracts that call for developing, producing, testing, or 
operating a device for which a radio frequency authorization is 
required.

                             (End of clause)



Sec. 1852.223-72  Potentially hazardous items.

    As prescribed in 1823.303-70, insert the following clause:

                 Potentially Hazardous Items (Dec 1988)

    (a) The Contractor shall furnish complete design information and 
drawings showing all details of construction, including materials, for 
the following items or components:

[Insert the potentially hazardous items or components.]
    These items or components are designated as potentially hazardous to 
employees and subcontractors who are to perform any work in connection 
with installing them in combination with other equipment, or in testing 
them either alone or in combination with other items or components, or 
in handling them. The contractor shall inform such employees or 
subcontractors of the potentially hazardous nature of these items or 
components before requesting or directing the performance of work.
    (b) This requirement for delivery of data supersedes any terms of 
this contract permitting withholding of data.
    (c) The Contractor shall include this clause, including this 
paragraph (c), in each subcontract at any tier under this contract that 
calls for the manufacture or handling of the items or components 
designated according to paragraph (a) of this clause as potentially 
hazardous.

                             (End of clause)



Sec. 1852.223-73  Safety and health plan.

    As prescribed in 1823.7004(e), insert the following provision:

                    Safety and Health Plan (Dec 1988)

    The offeror shall submit a detailed safety and health plan, as part 
of the offeror's proposal, showing how the Contractor intends to protect 
the life, health, and well being of NASA and contractor employees as 
well as property and equipment. This plan, as approved by the 
Contracting Officer, will be included in any resulting contract.

                           (End of provision)

                         Alternate I (Dec 1988)

    As prescribed by 1823.7004(f), delete the first sentence of the 
basic provision and substitute the following:
    The apparently successful offeror shall submit a detailed safety and 
health plan

[[Page 431]]

after notification of selection but before contract award, showing how 
the contractor intends to protect the life, health, and well being of 
NASA and contractor employees as well as property and equipment.

[54 FR 28340, July 5, 1989, as amended at 57 FR 40856, Sept. 8, 1992]



Sec. 1852.223-74  Drug- and alcohol-free workforce.

    As prescribed in 1823.570-3, insert the following clause:

               Drug- and Alcohol-Free Workforce (Mar 1996)

    (a) Definitions. As used in this clause the terms ``employee,'' 
``controlled substance,'' ``employee in a sensitive position,'' and 
``use, in violation of applicable law or Federal regulation, of 
alcohol'' are as defined in 48 CFR 1823.570-2.
    (b) (1) The Contractor shall institute and maintain a program for 
achieving a drug- and alcohol-free workforce. As a minimum, the program 
shall provide for preemployment, reasonable suspicion, random, post-
accident, and periodic recurring (follow-up) testing of contractor 
employees in sensitive positions for use, in violation of applicable law 
or Federal regulation, of alcohol or a controlled substance. The 
Contractor may establish its testing or rehabilitation program in 
cooperation with other contractors or organizations.
    (2) This clause neither prohibits nor requires the Contractor to 
test employees in a foreign country. If the Contractor chooses to 
conduct such testing, this does not authorize the Contractor to violate 
foreign law in conducting such testing.
    (3) The Contractor's program shall test for the use of marijuana and 
cocaine. The Contractor's program may test for the use of other 
controlled substances.
    (4) The Contractor's program shall conform to the ``Mandatory 
Guidelines for Federal Workplace Drug Testing Programs'' published by 
the Department of Health and Human Services (59 FR 29908, June 9, 1994) 
and the procedures in 49 CFR part 40, ``Procedures for Transportation 
Workplace Drug Testing Programs,'' in which references to ``DOT'' shall 
be read as ``NASA'', and the split sample method of collection shall be 
used.
    (c) (1) The Contractor's program shall provide, where appropriate, 
for the suspension, disqualification, or dismissal of any employee in a 
sensitive position in any instance where a test conducted and confirmed 
under the Contractor's program indicates that such individual has used, 
in violation of applicable law or Federal regulation, alcohol or a 
controlled substance.
    (2) The Contractor's program shall further prohibit any such 
individual from working in a sensitive position on a NASA contract, 
unless such individual has completed a program of rehabilitation 
described in paragraph (d) of this clause.
    (3) The Contractor's program shall further prohibit any such 
individual from working in any sensitive position on a NASA contract if 
the individual is determined under the Contractor's program to have 
used, in violation of applicable law or Federal regulation, alcohol or a 
controlled substance and the individual meets any of the following 
criteria:
    (i) The individual had undertaken or completed a rehabilitation 
program described in paragraph (d) of this clause prior to such use;
    (ii) Following such determination, the individual refuses to 
undertake such a rehabilitation program;
    (iii) Following such determination, the individual fails to complete 
such a rehabilitation program; or
    (iv) The individual used a controlled substance or alcohol while on 
duty.
    (d) The Contractor shall institute and maintain an appropriate 
rehabilitation program which shall, as a minimum, provide for the 
identification and opportunity for treatment of employees whose duties 
include responsibility for safety-sensitive, security, or National 
security functions who are in need of assistance in resolving problems 
with the use of alcohol or controlled substances.
    (e) The requirements of this clause shall take precedence over any 
state or local Government laws, rules, regulations, ordinances, 
standards, or orders that are inconsistent with the requirements of this 
clause.
    (f) For any collective bargaining agreement, the Contractor will 
negotiate the terms of its program with employee representatives, as 
appropriate, under labor relations laws or negotiated agreements. Such 
negotiation, however, cannot change the requirements of this clause. 
Employees covered under collective bargaining agreements will not be 
subject to the requirements of this clause until those agreements have 
been modified, as necessary; provided, however, that if one year after 
commencement of negotiation the parties have failed to reach agreement, 
an impasse will be determined to have been reached and the Contractor 
will unilaterally implement the requirements of this clause.
    (g) The Contractor shall insert a clause containing all the terms of 
this clause, including this paragraph (g), in all subcontracts in which 
work is performed by an employee in a sensitive position, except 
subcontracts for commercial items (see FAR parts 2 and 12).

                             (End of clause)

[61 FR 7226, Feb. 27, 1996]

[[Page 432]]



Sec. 1852.225-71  Nondomestic construction materials.

    As prescribed in 1825.205-70, insert the following clause:

              Nondomestic Construction Materials (Dec 1988)

    The requirements of the Buy American Act--Construction Materials 
clause do not apply to the following construction materials or 
components: [List articles of materials and supplies.]

                             (End of clause)

1852.225-72  [Reserved]



Sec. 1852.225-73  Duty-free entry supplies.

    As prescribed in 1825.605-70, insert the following clause:

                   Duty-Free Entry Supplies (Dec 1988)

    In accordance with the Duty-Free Entry clause of this contract, the 
following supplies will be given duty-free entry:

[Insert the supplies that are to be accorded duty-free entry.]

                             (End of clause)



Sec. 1852.227-11  Patent Rights--Retention by the Contractor (Short Form).

    As prescribed at 1827.373(a), modify the clause at FAR 52.227-11 by 
adding the following subparagraph (5) to paragraph (f) of the basic 
clause. In addition, use the following subparagraph (2) in lieu of 
subparagraph (g)(2) of the basic clause:

    (5) The contractor shall provide the contracting officer the 
following:
    (i) A listing every 12 months (or such longer period as the 
contracting officer may specify) from the date of the contract, of all 
subject inventions required to be disclosed during the period.
    (ii) A final report prior to closeout of the contract listing all 
subject inventions or certifying that there were none.
    (iii) Upon request, the filing date, serial number and title, a copy 
of the patent application, and patent number and issue date for any 
subject invention in any country in which the contractor has applied for 
patents.
    (iv) An irrevocable power to inspect and make copies of the patent 
application file, by the Government, when a Federal Government employee 
is a coinventor.

                            (End of addition)

    (2) The contractor shall include the clause in the NASA FAR 
Supplement at 1852.227-70, New Technology, suitably modified to identify 
the parties, in all subcontracts, regardless of tier, for experimental, 
developmental, research, design, or engineering work to be performed by 
other than a small business firm or nonprofit organization.

                          (End of substitution)

[55 FR 27089, June 29, 1990]



Sec. 1852.227-14  Rights in Data--General.

    As prescribed in 1827.409(e), add the following subparagraph (3) to 
paragraph (d) of the basic clause at FAR 52.227-14:

    (3)(i) The Contractor agrees not to establish claims to copyright, 
publish or release to others any computer software first produced in the 
performance of this contract without the Contracting Officer's prior 
written permission.
    (ii) If the Government desires to obtain copyright in computer 
software first produced in the performance of this contract and 
permission has not been granted as set forth in paragraph (d)(3)(i) of 
this clause, the Contracting Officer may direct the contractor to 
assert, or authorize the assertion of, claim to copyright in such data 
and to assign, or obtain the assignment of, such copyright to the 
Government or its designated assignee.
    (iii) Whenever the word ``establish'' is used in this clause, with 
reference to a claim to copyright, it shall be construed to mean 
``assert''.

                            (End of addition)

[55 FR 27089, June 29, 1990, as amended at 60 FR 47312, Sept. 12, 1995]



Sec. 1852.227-17  Rights in Data--Special Works

    As prescribed in 1827.405(c), add the following paragraph (f) to the 
basic clause at FAR 52.227-17:

    (f) Whenever the words ``establish'' and ``establishment'' are used 
in this clause, with reference to a claim to copyright, they shall be 
construed to mean ``assert'' and ``assertion'', respectively.

(End of addition)

[60 FR 47312, Sept. 12, 1995. Redesignated at 61 FR 5315, Feb. 12, 1996]



Sec. 1852.227-19  Commercial Computer Software--Restricted Rights.

    (a) As prescribed in 1827.409(f), add the following paragraph (e) to 
the basic clause at FAR 52.227-19:


[[Page 433]]


    (e) For the purposes of receiving updates, correction notices, 
consultation information, or other similar information regarding any 
computer software delivered under this contract/purchase order, the NASA 
Contracting Officer or the NASA Contracting Officer's Technical 
Representative/User may sign any vendor supplied agreements, 
registration forms, or cards and return them directly to the vendor; 
however, such signing shall not alter any of the rights or obligations 
of either NASA or the vendor set forth in this clause or elsewhere in 
this contract/purchase order.

                            (End of addition)

    (b) As prescribed in 1827.409(g), add the following paragraph (f) to 
the basic clause at FAR 52.227-19:

    (f) Subject to paragraphs (a) through (e) above, those applicable 
portions of the Contractor's standard commercial license or lease 
agreement pertaining to any computer software delivered under this 
purchase order/contract that are consistent with Federal laws, standard 
industry practices, and the Federal Acquisition Regulation (FAR) shall 
be incorporated into and made part of this purchase order/contract.

                            (End of addition)

[55 FR 27090, June 29, 1990, as amended at 55 FR 47480, Nov. 14, 1990; 
55 FR 53153, Dec. 27, 1990]



Sec. 1852.227-70  New technology.

    As prescribed in 1827.373(b), insert the following clause:

                       New Technology (July 1995)

    (a) Definitions.
    Administrator, as used in this clause, means the Administrator of 
the National Aeronautics and Space Administration (NASA) or duly 
authorized representative.
    Contract, as used in this clause, means any actual or proposed 
contract, agreement, understanding, or other arrangement, and includes 
any assignment, substitution of parties, or subcontract executed or 
entered into thereunder.
    Made, as used in this clause, means conception or first actual 
reduction to practice; provided, that in the case of a variety of plant, 
the date of determination (as defined in section 41(d) of the Plant 
Variety Protection Act, 7 U.S.C. 2401(d)) must also occur during the 
period of contract performance.
    Nonprofit organization, as used in this clause, means a domestic 
university or other institution of higher education or an organization 
of the type described in section 501(c)(3) of the Internal Revenue Code 
of 1954 (26 U.S.C. 501(c)) and exempt from taxation under section 501(a) 
of the Internal Revenue Code (26 U.S.C. 501(a)), or any domestic 
nonprofit scientific or educational organization qualified under a State 
nonprofit organization statute.
    Practical application, as used in this clause, means to manufacture, 
in the case of a composition or product; to practice, in the case of a 
process or method; or to operate, in case of a machine or system; and, 
in each case, under such conditions as to establish that the invention 
is being utilized and that its benefits are, to the extent permitted by 
law or Government regulations, available to the public on reasonable 
terms.
    Reportable item, as used in this clause, means any invention, 
discovery, improvement, or innovation of the Contractor, whether or not 
the same is or may be patentable or otherwise protectible under Title 35 
of the United States Code, conceived or first actually reduced to 
practice in the performance of any work under this contract or in the 
performance of any work that is reimbursable under any clause in this 
contract providing for reimbursement of costs incurred prior to the 
effective date of this contract.
    Small business firm, as used in this clause, means a domestic small 
business concern as defined at 15 U.S.C. 632 and implementing 
regulations of the Administrator of the Small Business Administration. 
(For the purpose of this definition, the size standard contained in 13 
CFR 121.3-8 for small business contractors and in 13 CFR 121.3-12 for 
small business subcontractors will be used.)
    Subject invention, as used in this clause, means any reportable item 
which is or may be patentable or otherwise protectible under Title 35 of 
the United States Code, or any novel variety of plant that is or may be 
protectible under the Plant Variety Protection Act (7 U.S.C. 2321, et 
seq.).
    (b) Allocation of principal rights--(1) Presumption of title. (i) 
Any reportable item that the Administrator considers to be a subject 
invention shall be presumed to have been made in the manner specified in 
paragraph (1) or (2) of section 305(a) of the National Aeronautics and 
Space Act of 1958 (42 U.S.C. 2457(a)) (hereinafter called ``the Act''), 
and the above presumption shall be conclusive unless at the time of 
reporting the reportable item the Contractor submits to the Contracting 
Officer a written statement, containing supporting details, 
demonstrating that the reportable item was not made in the manner 
specified in paragraph (1) or (2) of section 305(a) of the Act.
    (ii) Regardless of whether title to a given subject invention would 
otherwise be subject to an advance waiver or is the subject of a 
petition for waiver, the Contractor may nevertheless file the statement 
described in

[[Page 434]]

paragraph (b)(1)(i) of this clause. The Administrator will review the 
information furnished by the Contractor in any such statement and any 
other available information relating to the circumstances surrounding 
the making of the subject invention and will notify the Contractor 
whether the Administrator has determined that the subject invention was 
made in the manner specified in paragraph (1) or (2) of section 305(a) 
of the Act.
    (2) Property rights in subject inventions. Each subject invention 
for which the presumption of paragraph (b)(1)(i) of this clause is 
conclusive or for which there has been a determination that it was made 
in the manner specified in paragraph (1) or (2) of section 305(a) of the 
Act shall be the exclusive property of the United States as represented 
by NASA unless the Administrator waives all or any part of the rights of 
the United States, as provided in paragraph (b)(3) of this clause.
    (3) Waiver of rights. (i) Section 305(f) of the Act provides for the 
promulgation of regulations by which the Administrator may waive the 
rights of the United States with respect to any invention or class of 
inventions made or that may be made under conditions specified in 
paragraph (1) or (2) of section 305(a) of the Act. The promulgated NASA 
Patent Waiver Regulations, 14 CFR part 1245, subpart 1, have adopted the 
Presidential Memorandum on Government Patent Policy of February 18, 
1983, as a guide in acting on petitions (requests) for such waiver of 
rights.
    (ii) As provided in 14 CFR part 1245, subpart 1, Contractors may 
petition, either prior to execution of the contract or within 30 days 
after execution of the contract, for advance waiver of rights to any or 
all of the inventions that may be made under a contract. If such a 
petition is not submitted, or if after submission it is denied, the 
Contractor (or an employee inventor of the Contractor) may petition for 
waiver of rights to an identified subject invention within eight months 
of first disclosure of invention in accordance with paragraph (e)(2) of 
this clause, or within such longer period as may be authorized in 
accordance with 14 CFR 1245.105.
    (c) Minimum rights reserved by the Government. (1) With respect to 
each subject invention for which a waiver of rights is applicable in 
accordance with 14 CFR part 1245, subpart 1, the Government reserves--
    (i) An irrevocable, nonexclusive, nontransferable, royalty-free 
license for the practice of such invention throughout the world by or on 
behalf of the United States or any foreign government in accordance with 
any treaty or agreement with the United States; and
    (ii) Such other rights as stated in 14 CFR 1245.107.
    (2) Nothing contained in this paragraph (c) shall be considered to 
grant to the Government any rights with respect to any invention other 
than a subject invention.
    (d) Minimum rights to the Contractor. (1) The Contractor is hereby 
granted a revocable, nonexclusive, royalty-free license in each patent 
application filed in any country on a subject invention and any 
resulting patent in which the Government acquires title, unless the 
Contractor fails to disclose the subject invention within the times 
specified in paragraph (e)(2) of this clause. The Contractor's license 
extends to its domestic subsidiaries and affiliates, if any, within the 
corporate structure of which the Contractor is a party and includes the 
right to grant sublicenses of the same scope to the extent the 
Contractor was legally obligated to do so at the time the contract was 
awarded. The license is transferable only with the approval of the 
Administrator except when transferred to the successor of that part of 
the Contractor's business to which the invention pertains.
    (2) The Contractor's domestic license may be revoked or modified by 
the Administrator to the extent necessary to achieve expeditious 
practical application of the subject invention pursuant to an 
application for an exclusive license submitted in accordance with 37 CFR 
part 404, Licensing of Government Owned Inventions. This license will 
not be revoked in that field of use or the geographical areas in which 
the Contractor has achieved practical application and continues to make 
the benefits of the invention reasonably accessible to the public. The 
license in any foreign country may be revoked or modified at the 
discretion of the Administrator to the extent the Contractor, its 
licensees, or its domestic subsidiaries or affiliates have failed to 
achieve practical application in that foreign country.
    (3) Before revocation or modification of the license, the Contractor 
will be provided a written notice of the Administrator's intention to 
revoke or modify the license, and the Contractor will be allowed 30 days 
(or such other time as may be authorized by the Administrator for good 
cause shown by the Contractor) after the notice to show cause why the 
license should not be revoked or modified. The Contractor has the right 
to appeal to the Administrator any decision concerning the revocation or 
modification of its license.
    (e) Invention identification, disclosures, and reports. (1) The 
Contractor shall establish and maintain active and effective procedures 
to assure that reportable items are promptly identified and disclosed to 
Contractor personnel responsible for the administration of this New 
Technology clause within six months of conception and/or first actual 
reduction to practice, whichever occurs first in the performance of work 
under this contract. These procedures shall include the maintenance of 
laboratory notebooks or equivalent

[[Page 435]]

records and other records as are reasonably necessary to document the 
conception and/or the first actual reduction to practice of the 
reportable items, and records that show that the procedures for 
identifying and disclosing reportable items are followed. Upon request, 
the Contractor shall furnish the Contracting Officer a description of 
such procedures for evaluation and for determination as to their 
effectiveness.
    (2) The Contractor will disclose each reportable item to the 
Contracting Officer within two months after the inventor discloses it in 
writing to Contractor personnel responsible for the administration of 
this New Technology clause or, if earlier, within six months after the 
Contractor becomes aware that a reportable item has been made, but in 
any event for subject inventions before any on sale, public use, or 
publication of such invention known to the Contractor. The disclosure to 
the agency shall be in the form of a written report and shall identify 
the contract under which the reportable item was made and the 
inventor(s) or innovator(s). It shall be sufficiently complete in 
technical detail to convey a clear understanding, to the extent known at 
the time of the disclosure, of the nature, purpose, operation, and 
physical, chemical, biological, or electrical characteristics of the 
reportable item. The disclosure shall also identify any publication, on 
sale, or public use of any subject invention and whether a manuscript 
describing such invention has been submitted for publication and, if so, 
whether it has been accepted for publication at the time of disclosure. 
In addition, after disclosure to the agency, the Contractor will 
promptly notify the agency of the acceptance of any manuscript 
describing a subject invention for publication or of any on sale or 
public use planned by the Contractor for such invention.
    (3) The Contractor shall furnish the Contracting Officer the 
following:
    (i) Interim reports every 12 months (or such longer period as may be 
specified by the Contracting Officer) from the date of the contract, 
listing reportable items during that period, and certifying that all 
reportable items have been disclosed (or that there are no such 
inventions) and that the procedures required by paragraph (e)(1) of this 
clause have been followed.
    (ii) A final report, within 3 months after completion of the 
contracted work, listing all reportable items or certifying that there 
were no such reportable items, and listing all subcontracts at any tier 
containing a patent rights clause or certifying that there were no such 
subcontracts.
    (4) The Contractor agrees, upon written request of the Contracting 
Officer, to furnish additional technical and other information available 
to the Contractor as is necessary for the preparation of a patent 
application on a subject invention and for the prosecution of the patent 
application, and to execute all papers necessary to file patent 
applications on subject inventions and to establish the Government's 
rights in the subject inventions.
    (5) The Contractor agrees, subject to section 27.302(i), of the 
Federal Acquisition Regulation (FAR), that the Government may duplicate 
and disclose subject invention disclosures and all other reports and 
papers furnished or required to be furnished pursuant to this clause.
    (f) Examination of records relating to inventions. (1) The 
Contracting Officer or any authorized representative shall, until 3 
years after final payment under this contract, have the right to examine 
any books (including laboratory notebooks), records, and documents of 
the Contractor relating to the conception or first actual reduction to 
practice of inventions in the same field of technology as the work under 
this contract to determine whether--
    (i) Any such inventions are subject inventions;
    (ii) The Contractor has established and maintained the procedures 
required by paragraph (e)(1) of this clause; and
    (iii) The Contractor and its inventors have complied with the 
procedures.
    (2) If the Contracting Officer learns of an unreported Contractor 
invention that the Contracting Officer believes may be a subject 
invention, the Contractor may be required to disclose the invention to 
the agency for a determination of ownership rights.
    (3) Any examination of records under this paragraph will be subject 
to appropriate conditions to protect the confidentiality of the 
information involved.
    (g) Withholding of payment (this paragraph does not apply to 
subcontracts). (1) Any time before final payment under this contract, 
the Contracting Officer may, in the Government's interest, withhold 
payment until a reserve not exceeding $50,000 or 5 percent of the amount 
of this contract, whichever is less, shall have been set aside if, in 
the Contracting Officer's opinion, the Contractor fails to--
    (i) Establish, maintain, and follow effective procedures for 
identifying and disclosing reportable items pursuant to paragraph (e)(1) 
of this clause;
    (ii) Disclose any reportable items pursuant to paragraph (e)(2) of 
this clause;
    (iii) Deliver acceptable interim reports pursuant to paragraph 
(e)(3)(i) of this clause; or
    (iv) Provide the information regarding subcontracts pursuant to 
paragraph (h)(4) of this clause.
    (2) Such reserve or balance shall be withheld until the Contracting 
Officer has determined that the Contractor has rectified whatever 
deficiencies exist and has delivered

[[Page 436]]

all reports, disclosures, and other information required by this clause.
    (3) Final payment under this contract shall not be made before the 
Contractor delivers to the Contracting Officer all disclosures of 
reportable items required by paragraph (e)(2) of this clause, and an 
acceptable final report pursuant to paragraph (e)(3)(ii) of this clause.
    (4) The Contracting Officer may decrease or increase the sums 
withheld up to the maximum authorized above. No amount shall be withheld 
under this paragraph while the amount specified by this paragraph is 
being withheld under other provisions of the contract. The withholding 
of any amount or the subsequent payment thereof shall not be construed 
as a waiver of any Government rights.
    (h) Subcontracts. (1) Unless otherwise authorized or directed by the 
Contracting Officer, the Contractor shall--
    (i) Include this clause (suitably modified to identify the parties) 
in any subcontract hereunder (regardless of tier) with other than a 
small business firm or nonprofit organization for the performance of 
experimental, developmental, or research work; and
    (ii) Include the clause at FAR 52.227-11 (suitably modified to 
identify the parties) in any subcontract hereunder (regardless of tier) 
with a small business firm or nonprofit organization for the performance 
of experimental, developmental, or research work.
    (2) In the event of a refusal by a prospective subcontractor to 
accept such a clause the Contractor--
    (i) Shall promptly submit a written notice to the Contracting 
Officer setting forth the subcontractor's reasons for such refusal and 
other pertinent information that may expedite disposition of the matter; 
and
    (ii) Shall not proceed with such subcontract without the written 
authorization of the Contracting Officer.
    (3) In the case of subcontracts at any tier, the agency, 
subcontractor, and Contractor agree that the mutual obligations of the 
parties created by this clause constitute a contract between the 
subcontractor and NASA with respect to those matters covered by this 
clause.
    (4) The Contractor shall promptly notify the Contracting Officer in 
writing upon the award of any subcontract at any tier containing a 
patent rights clause by identifying the subcontractor, the applicable 
patent rights clause, the work to be performed under the subcontract, 
and the dates of award and estimated completion. Upon request of the 
Contracting Officer, the Contractor shall furnish a copy of such 
subcontract, and, no more frequently than annually, a listing of the 
subcontracts that have been awarded.
    (5) The subcontractor will retain all rights provided for the 
Contractor in the clause of paragraph (h)(1)(i) or (ii) of this clause, 
whichever is included in the subcontract, and the Contractor will not, 
as part of the consideration for awarding the subcontract, obtain rights 
in the subcontractor's subject inventions.
    (i) Preference for United States industry. Unless provided 
otherwise, no Contractor that receives title to any subject invention 
and no assignee of any such Contractor shall grant to any person the 
exclusive right to use or sell any subject invention in the United 
States unless such person agrees that any products embodying the subject 
invention will be manufactured substantially in the United States. 
However, in individual cases, the requirement may be waived by the 
Administrator upon a showing by the Contractor or assignee that 
reasonable but unsuccessful efforts have been made to grant licenses on 
similar terms to potential licensees that would be likely to manufacture 
substantially in the United States or that under the circumstances 
domestic manufacture is not commercially feasible.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 54 FR 53631, Dec. 29, 1989; 60 
FR 40521, Aug. 9, 1995]



Sec. 1852.227-71  Requests for waiver of rights to inventions.

    As prescribed in 1827.373(d), insert the following provision in all 
solicitations that include the clause at 1852.227-70, New Technology:

         Requests for Waiver of Rights to Inventions (Apr 1984)

    (a) In accordance with the NASA Patent Waiver Regulations, 14 CFR 
part 1245, subpart 1, waiver of rights to any or all inventions made or 
that may be made under a NASA contract or subcontract with other than a 
small business firm or a domestic nonprofit organization may be 
requested at different time periods. Advance waiver of rights to any or 
all inventions that may be made under a contract or subcontract may be 
requested prior to the execution of the contract or subcontract, or 
within 30 days after execution by the selected contractor. In addition, 
waiver of rights to an identified invention made and reported under a 
contract or subcontract may be requested, even though a request for an 
advance waiver was not made or, if made, was not granted.
    (b) Each request for waiver of rights shall be by petition to the 
Administrator and shall include an identification of the petitioner; 
place of business and address; if petitioner is represented by counsel, 
the name, address and telephone number of the counsel; the

[[Page 437]]

signature of the petitioner or authorized representative; and the date 
of signature. No specific forms need be used, but the request should 
contain a positive statement that waiver of rights is being requested 
under the NASA Patent Waiver Regulations; a clear indication of whether 
the request is for an advance waiver or for a waiver of rights for an 
individual identified invention; whether foreign rights are also 
requested and, if so, the countries, and a citation of the specific 
section or sections of the regulations under which such rights are 
requested; and the name, address, and telephone number of the party with 
whom to communicate when the request is acted upon. Requests for advance 
waiver of rights should, preferably, be included with the proposal, but 
in any event in advance of negotiations.
    (c) Petitions for advance waiver, prior to contract execution, must 
be submitted to the Contracting Officer. All other petitions will be 
submitted to the Patent Representative designated in the contract.
    (d) Petitions submitted with proposals selected for negotiation of a 
contract will be forwarded by the Contracting Officer to the 
installation Patent Counsel for processing and then to the Inventions 
and Contributions Board. The Board will consider these petitions and 
where the Board makes the findings to support the waiver, the Board will 
recommend to the Administrator that waiver be granted, and will notify 
the petitioner and the Contracting Officer of the Administrator's 
determination. The Contracting Officer will be informed by the Board 
whenever there is insufficient time or information or other reasons to 
permit a decision to be made without unduly delaying the execution of 
the contract. In the latter event, the petitioner will be so notified by 
the Contracting Officer. All other petitions will be processed by 
installation Patent Counsel and forwarded to the Board. The Board shall 
notify the petitioner of its action and if waiver is granted, the 
conditions, reservations, and obligations thereof will be included in 
the Instrument of Waiver. Whenever the Board notifies a petitioner of a 
recommendation adverse to, or different from, the waiver requested, the 
petitioner may request reconsideration under procedures set forth in the 
Regulations.

                           (End of provision)



Sec. 1852.227-72  Designation of new technology representative and patent representative.

    As prescribed in 1827.373(e), insert the following clause:

 Designation of New Technology Representative and Patent Representative 
                               (Apr 1984)

    (a) For purposes of administration of the clause of this contract 
entitled ``New Technology'' or ``Patent Rights--Retention by the 
Contractor (Short Form),'' whichever is included, the following named 
representatives are hereby designated by the Contracting Officer to 
administer such clause:

------------------------------------------------------------------------
                                                                Address 
 Title                       Office code                      (including
                                                               zip code)
------------------------------------------------------------------------
         New Technology Representative                                  
         Patent Representative                                          
------------------------------------------------------------------------

    (b) Reports of reportable items, and disclosure of subject 
inventions, interim reports, final reports, utilization reports, and 
other reports required by the clause, as well as any correspondence with 
respect to such matters, should be directed to the New Technology 
Representative unless transmitted in response to correspondence or 
request from the Patent Representative. Inquiries or requests regarding 
disposition of rights, election of rights, or related matters should be 
directed to the Patent Representative. This clause shall be included in 
any subcontract hereunder requiring a ``New Technology'' clause or 
``Patent Rights--Retention by the Contractor (Short Form)'' clause, 
unless otherwise authorized or directed by the Contracting Officer. The 
respective responsibilities and authorities of the above-named 
representatives are set forth in 1827.375-3 of the NASA FAR Supplement.

                             (End of clause)



Sec. 1852.227-84  Patent Rights Clauses.

    The contracting officer shall insert the following provision as 
prescribed in 1827.373(f):

                    Patent Rights Clauses (Dec 1989)

    This solicitation contains the patent rights clauses of FAR 52.227-
11 (as modified by the NFS) and NFS 1852.227-70. If the contract 
resulting from this solicitation is awarded to a small business or 
nonprofit organization, the clause at NFS 1852.227-70 shall not apply. 
If the award is to other than a small business or nonprofit 
organization, the clause at FAR 52.227-11 shall not apply.

                           (End of Provision)

[54 FR 53631, Dec. 29, 1989]



Sec. 1852.227-85  Invention reporting and rights--foreign.

    As prescribed in 1827.373(c)(1), insert the following clause:

[[Page 438]]

           Invention Reporting and Rights--Foreign (Apr 1986)

    (a) As used in this clause, the term ``invention'' means any 
invention, discovery or improvement, and ``made'' means the conception 
or first actual demonstration that the invention is useful and operable.
    (b) The Contractor shall report promptly to the Contracting Officer 
each invention made in the performance of work under this contract. The 
report of each such invention shall:
    (1) Identify the inventor(s) by full name; and
    (2) Include such full and complete technical information concerning 
the invention as is necessary to enable an understanding of the nature 
and operation thereof.
    (c) The Contractor hereby grants to the Government of the United 
States of America as represented by the Administrator of the National 
Aeronautics and Space Administration the full right, title and interest 
in and to each such invention throughout the world, except for the State 
in which this contract is to be performed. As to such State, Contractor 
hereby grants to the Government of the United States of America as 
represented by the Administrator of the National Aeronautics and Space 
Administration only an irrevocable, nontransferable, nonexclusive, 
royalty-free license to practice each such invention by or on behalf of 
the United States of America or any foreign government pursuant to any 
treaty or agreement with the United States of America, provided that 
Contractor within a reasonable time files a patent application in that 
State for each such invention. Where Contractor does not elect to file 
such patent application for any such invention in that State, full 
right, title and interest in and to such invention in that State shall 
reside in the Government of the United States of America as represented 
by the Administrator of the National Aeronautics and Space 
Administration.
    (d) The Contractor agrees to execute or to secure the execution of 
such legal instruments as may be necessary to confirm and to protect the 
rights granted by paragraph (c) of this clause, including papers 
incident to the filing and prosecution of patent applications.
    (e) Upon completion of the contract work, and prior to final 
payment, Contractor shall submit to the Contracting Officer a final 
report listing all inventions reportable under this contract or 
certifying that no such inventions have been made.
    (f) In each subcontract, the Contractor awards under this contract 
where the performance of research, experimental design, engineering, or 
developmental work is contemplated, the Contractor shall include this 
clause and the name and address of the Contracting Officer.

                             (End of clause)



Sec. 1852.227-86  Commercial computer software--licensing.

    As prescribed in 1827.409(h), insert the following clause:

           Commercial Computer Software--Licensing (Dec 1987)

    (a) Any delivered commercial computer software (including 
documentation thereof) developed at private expense and claimed as 
proprietary shall be subject to the restricted rights in paragraph (d) 
of this clause. Where the vendor/contractor proposes its standard 
commercial software license, those applicable portions thereof 
consistent with Federal laws, standard industry practices, the Federal 
Acquisition Regulations (FAR) and the NASA FAR Supplement, including the 
restricted rights in paragraph (d) of this clause, are incorporated into 
and made a part of this purchase order/contract.
    (b) Although the vendor/contractor may not propose its standard 
commercial software license until after this purchase order/contract has 
been issued, or at or after the time the computer software is delivered, 
such license shall nevertheless be deemed incorporated into and made a 
part of this purchase order/contract under the same terms and conditions 
as in paragraph (a) of this clause. For purposes of receiving updates, 
correction notices, consultation, and similar activities on the computer 
software, the NASA Contracting Officer or the NASA Contracting Officer's 
Technical Representative/User may sign any agreement, license, or 
registration form or card and return it directly to the vendor/
contractor; however, such signing shall not alter any of the terms and 
conditions of this clause.
    (c) The vendor's/contractor's acceptance is expressly limited to the 
terms and conditions of this purchase order/contract. If the specified 
computer software is shipped or delivered to NASA, it shall be 
understood that the vendor/contractor has unconditionally accepted the 
terms and conditions set forth in this clause, and that such terms and 
conditions (including the incorporated license) constitute the entire 
agreement between the parties concerning rights in the computer 
software.
    (d) The following restricted rights shall apply:
    (1) The commercial computer software may not be used, reproduced, or 
disclosed by the Government except as provided below or otherwise 
expressly stated in the purchase order/contract.
    (2) The commercial computer software may be--

[[Page 439]]

    (i) Used, or copied for use, in or with any computer owned or leased 
by, or on behalf of, the Government; provided, the software is not used, 
nor copied for use, in or with more than one computer simultaneously, 
unless otherwise permitted by the license incorporated under paragraph 
(a) or (b) of this clause;
    (ii) Reproduced for safekeeping (archives) or backup purposes;
    (iii) Modified, adapted, or combined with other computer software, 
provided that the modified, combined, or adapted portions of the 
derivative software incorporating restricted computer software shall be 
subject to the same restricted rights; and
    (iv) Disclosed and reproduced for use by Government contractors or 
their subcontractors in accordance with the restricted rights in 
paragraphs (d)(2) (i), (ii), and (iii) of this clause; provided they 
have the Government's permission to use the computer software and have 
also agreed to protect the computer software from unauthorized use and 
disclosure.
    (3) If the incorporated vendor's/contractor's software license 
contains provisions or rights that are less restrictive than the 
restricted rights in paragraph (d)(2) of this clause, then the less 
restrictive provisions or rights shall prevail.
    (4) If the computer software is published, copyrighted computer 
software, it is licensed to the Government, without disclosure 
prohibitions, with the rights in paragraphs (d) (2) and (3) of this 
clause.
    (5) The computer software may be marked with any appropriate 
proprietary notice that is consistent with the rights in paragraphs (d) 
(2), (3), and (4) of this clause.

                             End of clause)

[54 FR 28340, July 5, 1989, as amended at 55 FR 27090, June 29, 1990]



Sec. 1852.227-87  Transfer of Technical Data Under Space Station International Agreements.

    As prescribed at 1827.670-2, insert the following clause:

 Transfer of Technical Data Under Space Station International Agreement 
                               (Apr 1989)

    1. In the cooperative Space Station Freedom program, NASA has the 
authority to provide to the international partners all information 
necessary to implement the multilateral Space Station Intergovernmental 
Agreement and the Space Station Memoranda of Understanding. NASA is 
committed under these Space Station agreements to provide its 
international Space Station partners with certain technical data which 
are subject to the U.S. export control laws and regulations. NASA will 
have obtained any necessary approvals from the Department of State for 
the transfer of any such technical data. Space Station contractors, 
acting as agents of NASA under the specific written direction of the 
Contracting Officer, or designated representative, require no other 
separate approval under the International Traffic in Arms Regulations 
(ITAR) to transfer such data.
    2. The Contractor agrees, when specifically directed in writing by 
the Contracting Officer, or designated representative, to transfer 
identified technical data to a named foreign recipient, in the manner 
directed. No export control marking should be affixed to the data unless 
so directed. If directed, the text of the marking to be affixed will be 
furnished by the Contracting Officer or designated representative.
    3. It should be emphasized that the transfer is limited solely to 
those technical data which NASA specifically identifies and directs the 
Contractor to transfer in accordance with paragraph 2 of this clause, 
and that all other transfers of technical data to foreign entities are 
subject to the requirements of the U.S. export control laws and 
regulations.
    4. Nothing contained in this clause affects the allocation of 
technical data rights between NASA and the Contractor or any 
subcontractors as set forth in the Rights in Data clause of this 
Contract, nor the protection of any proprietary technical data which may 
be available to the Contractor or any subcontractor under that clause.
    5. The Contractor agrees to include this clause, including this 
paragraph 5, in all subcontracts hereunder, appropriately modified to 
reflect the relationship of the parties.

                             (End of clause)

[54 FR 39375, Sept. 26, 1989]



Sec. 1852.228-70  Aircraft ground and flight risk.

    As prescribed in 1828.370(a), insert the following clause. The 
purpose of this clause is to have the Government assume risks that 
generally entail unusually high insurance premiums and are not covered 
by the contractor's contents, work-in-process, and similar insurance. 
Since the definitions in the clause may not cover every situation that 
should be covered to achieve this purpose, the clause may be modified as 
follows: If the contract covers helicopters, vertical take-off aircraft, 
lighter-than-air airships, or other nonconventional types of aircraft, 
the definition of ``aircraft'' should be modified

[[Page 440]]

to specify that the aircraft has reached a point of manufacture 
comparable to that specified in the standard definition, which is 
written for conventional winged aircraft. The definition of ``in the 
open'' may be modified to include ``hush houses,'' test hangers, 
comparable structures, and other designated areas. In addition, clause 
paragraph (d)(3) may be modified to provide for Government assumption of 
risk of transportation by conveyance on streets or highways if the 
contracting officer determines that this transportation is limited to 
the vicinity of the contractor's premises and is merely incident to work 
being performed under the contract.

               Aircraft Ground and Flight Risk (Dec 1988)

    (a) Notwithstanding any other provisions of this contract, except as 
may be specifically provided in the Schedule as an exception to this 
clause, the Government, subject to the definitions and limitations of 
this clause, assumes the risk of damage to, or loss or destruction of, 
aircraft in the open, during operation, and in flight and agrees that 
the Contractor shall not be liable to the Government for any such 
damage, loss, or destruction.
    (b) For the purposes of this clause, the following definitions 
apply:
    (1) Unless otherwise specifically provided in the Schedule, 
``aircraft'' includes--
    (i) Aircraft (including both complete aircraft and aircraft in the 
course of being manufactured, disassembled, or reassembled; provided 
that an engine or a portion of a wing or a wing is attached to the 
fuselage) to be furnished to the Government under this contract (whether 
before or after acceptance Government acceptance); and
    (ii) Aircraft (regardless of whether in a state of disassembly or 
reassembly) furnished by the Government to the Contractor under this 
contract, including all property installed in, in the process of 
installation in, or temporarily removed from them, unless the aircraft 
and property are covered by a separate bailment agreement.
    (2) ``In the open'' means located wholly outside of buildings on the 
Contractor's premises, or at such other places as may be described in 
the Schedule as being in the open for the purposes of this clause, 
except that aircraft furnished by the Government are considered to be in 
the open at all times while in Contractor's possession, care, custody, 
or control.
    (3) ``Flight'' includes any flight demonstration, flight test, taxi 
test, or other flight made in the performance of this contract, or for 
the purpose of safeguarding the aircraft, or previously approved in 
writing by the Contracting Officer.
    (i) With respect to land-based aircraft, flight commences with the 
taxi roll from a flight line on the Contractor's premises and continues 
until the aircraft has completed the taxi roll in returning to a flight 
line on the Contractor's premises.
    (ii) With respect to seaplanes, flight commences with the launching 
from a ramp on the Contractor's premises and continues until the 
aircraft has completed its landing run upon return and is beached at a 
ramp on the Contractor's premises.
    (iii) With respect to helicopters, flight commences upon engagement 
of the rotors for the purpose of take-off from the Contractor's premises 
and continues until the aircraft has returned to the ground on the 
Contractor's premises and the rotors are disengaged.
    (iv) With respect to vertical take-off aircraft, flight commences 
upon disengagement from any launching platform or device on the 
Contractor's premises and continues until the aircraft has been re-
engaged to any launching platform or device on the Contractor's 
premises; provided, however, that aircraft off the Contractor's premises 
shall be deemed to be in flight when on the ground or water only during 
periods of reasonable duration following emergency landing, other 
landings made in the performance of this contract, or landings approved 
by the Contracting Officer in writing.
    (4) ``Contractor's premises'' means those premises designated as 
such in the Schedule or in writing by the Contracting Officer, and any 
other place to which aircraft are moved for the purpose of safeguarding 
the aircraft.
    (5) ``Operation'' means operations and tests, other than on any 
production line, of aircraft, not in flight, whether or not the aircraft 
is in the open or in motion during them and includes operations and 
tests of equipment, accessories, and power plants only when installed in 
aircraft.
    (6) ``Flight crew members'' means the pilot, copilot, and, unless 
otherwise specifically provided in the Schedule, the flight engineer and 
navigator when required or assigned to their respective crew positions 
to conduct any flight on behalf of the Contractor.
    (7) ``Contractor's managerial personnel'' means the Contractor's 
directors, officers, and any managers, superintendents, or equivalent 
representatives who have supervision or direction of all or 
substantially all of the Contractor's business or of the Contractor's 
operations at any one plant or separate location at which this contract 
is performed or a separate and complete major industrial operation in 
connection with the performance of this contract.

[[Page 441]]

    (c)(1) The Government's assumption of risk under this clause, as to 
aircraft in the open, shall continue in effect unless terminated 
pursuant to paragraph (c)(3) of this clause. If the Contracting Officer 
finds that an aircraft is in the open under unreasonable conditions, the 
Contracting Officer shall notify the Contractor in writing of the 
conditions found to be unreasonable and require the Contractor to 
correct them within a reasonable time.
    (2) Upon receipt of this notice, the Contractor shall act promptly 
to correct these conditions, regardless of whether it agrees that they 
are in fact unreasonable. To the extent that the Contracting Officer may 
later determine that they were not in fact unreasonable, an equitable 
adjustment shall be made in the contract price to compensate the 
Contractor for any additional costs incurred in correcting them, and the 
contract shall be modified in writing accordingly.
    (3)(i) If the Contracting Officer finds that the Contractor has 
failed to act promptly to correct unreasonable conditions or has failed 
to correct them within a reasonable time, the Contracting Officer may by 
written notice terminate the Government's assumption of risk under this 
clause for any aircraft which is in the open under those conditions. 
This termination shall be effective at 12:01 a.m. on the 15th day 
following the day of receipt by the Contractor of the notice.
    (ii) If the Contracting Officer later determines that the Contractor 
acted promptly to correct the conditions or that the time taken by the 
Contractor was not in fact unreasonable, an equitable adjustment shall, 
notwithstanding paragraph (g) of this clause, be made to compensate the 
Contractor for any additional costs incurred as a result of the 
termination, and the contract shall be modified in writing accordingly.
    (4) If the Government's assumption of risk under this clause is 
terminated in accordance with paragraph (3) of this clause, the risk of 
loss with respect to Government-furnished property shall be determined 
in accordance with the Government property clause of this contract, if 
any, until the Government's assumption of risk is reinstated in 
accordance with paragraph (5) of this clause.
    (5)(i) When unreasonable conditions have been corrected, the 
Contractor shall promptly notify the Government. The Government may or 
may not elect to reassume the risks and relieve the Contractor of 
liabilities as provided in this clause, and the Contracting Officer 
shall notify the Contractor of the Government's election.
    (ii) If, after correction of the conditions, the Government elects 
to reassume the risks and relieve the Contractor of liabilities, the 
Contractor shall be entitled to an equitable adjustment for any costs of 
insurance extending from the end of the third working day after the 
Contractor notifies the Government of the correction until the 
Government notifies the Contractor of that election.
    (iii) If the Government elects not to reassume the risks and the 
conditions have in fact been corrected, the Contractor shall be entitled 
to an equitable adjustment for any costs of insurance extending after 
the third working day referred to in paragraph (c)(5)(ii) of this 
clause.
    (d) The Government's assumption of risk shall not extend to damage 
to or loss or destruction of aircraft--
    (1) Resulting from failure of the Contractor, due to willful 
misconduct or lack of good faith of any of the Contractor's managerial 
personnel, to maintain and administer a program for protecting and 
preserving aircraft in the open and during operation, in accordance with 
sound industrial practice;
    (2) Sustained during flight if the flight crew members conducting 
the flight have not been approved in writing by the Contracting Officer;
    (3) While in the course of transportation by rail or by conveyance 
on public streets, highways, or waterways, except for Government-
furnished property;
    (4) To the extent that the damage, loss, or destruction is in fact 
covered by insurance;
    (5) Consisting of wear and tear, deterioration (including rust and 
corrosion), freezing, or mechanical, structural, or electrical breakdown 
or failure, unless this damage is the result of other loss, damage, or 
destruction covered by this clause (except that, in the case of 
Government-furnished property, if the damage consists of reasonable wear 
and tear or deterioration or results from inherent vice in such 
property, this exclusion shall not apply); or
    (6) Sustained while the aircraft is being worked upon and directly 
resulting from the work, including but not limited to any repairing, 
adjusting, servicing, or maintenance operation, unless the damage, loss, 
or destruction is of a type that would be covered by insurance that 
would customarily have been maintained by the Contractor at the time of 
the damage, loss, or destruction, but for the Government's assumption of 
risk under this clause.
    (e)(1) With the exception of damage to or loss or destruction of 
aircraft in flight, the Government's assumption of risk under this 
clause shall not extend to the first $1,000 of loss or damage resulting 
from each event separately occurring. The Contractor assumes the risk of 
and shall be responsible for the first $1,000 of loss of or damage to 
aircraft in the open or during operation resulting from each event 
separately occurring, except for reasonable wear and tear and except to 
the extent the loss or damage is caused by negligence of Government 
personnel.
    (2) If the Government elects to require that the aircraft be 
replaced or restored by the Contractor to the condition in which it was

[[Page 442]]

immediately prior to the damage, the equitable adjustment in the price 
authorized by paragraph (i) of this clause shall not include the dollar 
amount of the risk assumed by the Contractor under this paragraph (e). 
If the Government does not elect repair or replacement, the Contractor 
agrees to credit the contract price or pay the Government $1,000 (or the 
amount of the loss if smaller) as directed by the Contracting Officer.
    (f) No subcontractor may be relieved from liability for damage to or 
loss or destruction of aircraft while in its possession or control, 
except to the extent that the subcontract, with the Contracting 
Officer's prior written approval, provides for relief of the 
subcontractor from that liability. In the absence of such approval, the 
subcontract shall require the return of the aircraft in as good 
condition as when received, except for reasonable wear and tear or for 
the utilization of the property in accordance with the provisions of 
this contract. If a subcontractor has not been relieved from liability 
and any damage, loss, or destruction occurs, the Contractor shall 
enforce the liability of the subcontractor for that damage to or loss or 
destruction of the aircraft for the benefit of the Government.
    (g) The Contractor warrants that the contract price does not and 
will not include, except as this clause may otherwise authorize, any 
charge or contingency reserve for insurance (including self-insurance 
funds or reserves) covering any damage to or loss or destruction of 
aircraft while in the open, during operation, or in flight, the risk of 
which has been assumed by the Government under this clause, whether or 
not such assumption may be terminated as to aircraft in the open.
    (h)(1) In the event of damage to, or loss or destruction of, 
aircraft in the open, during operation, or in flight, the Contractor 
shall take all reasonable steps to protect the aircraft from further 
damage, separate damaged and undamaged aircraft, and put all aircraft in 
the best possible order. Further, except in cases covered by paragraph 
(e) of this clause, the Contractor should furnish to the Contracting 
Officer a statement of--
    (i) The damaged, lost, or destroyed aircraft;
    (ii) The time and origin of the damage, loss, or destruction;
    (iii) All known interests in commingled property of which aircraft 
are a part; and
    (iv) Any insurance covering any part of the interest in the 
commingled property.
    (2) Except in cases covered by paragraph (e) of this clause, an 
equitable adjustment shall be made in the amount due under this contract 
for expenditures made by the Contractor in performing its obligations 
under this paragraph (h), and this contract shall be modified in writing 
accordingly.
    (i)(1) If, before delivery and acceptance by the Government, any 
aircraft is damaged, lost, or destroyed and the Government has under 
this clause assumed the risk of that damage, loss, or destruction, the 
Government shall either (i) require that the aircraft be replaced or 
restored by the Contractor to the condition in which it was immediately 
prior to the damage or (ii) terminate this contract with respect to that 
aircraft.
    (2) If the Government requires that the aircraft be replaced or 
restored, an equitable adjustment shall be made in the amount due under 
this contract and in the time required for its performance, and the 
contract shall be modified in writing accordingly.
    (3) If, in the alternative, this contract is terminated under this 
paragraph (i) with respect to the aircraft, and under this clause the 
Government has assumed the risk of the damage, loss, or destruction, the 
Contractor shall be paid the contract price for the aircraft (or, if 
applicable, any work to be performed on the aircraft) less any amounts 
the Contracting Officer determines: (i) That it would have cost the 
Contractor to complete the aircraft (or any work to be performed on it), 
together with any anticipated profit on the uncompleted work and (ii) to 
be the value, if any, of the damaged aircraft or any remaining portion 
of it retained by the Contractor. The Contracting Officer shall have the 
right to prescribe the manner of disposition of the damaged, lost, or 
destroyed aircraft or any remaining parts of it, and, if the Contractor 
incurs additional costs as a result of such disposition, a further 
equitable adjustment shall be made in the amount due to the Contractor.
    (j)(1) If the Contractor is at any time reimbursed or compensated by 
any third person for any damage, loss, or destruction of any aircraft, 
the risk of which has been assumed by the Government under this clause 
and for which the Contractor has been compensated by the Government, it 
shall equitably reimburse the Government.
    (2) The Contractor shall do nothing to prejudice the Government's 
rights to recover against third parties for any such damage, loss, or 
destruction and, upon the request of the Contracting Officer, shall at 
the Government's expense furnish to the Government all reasonable 
assistance and cooperation (including the prosecution of suit and the 
execution of instruments of assignment or subrogation in favor of the 
Government) in obtaining recovery.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 57 FR 40856, Sept. 8, 1992]



Sec. 1852.228-71   Aircraft flight risks.

    (a) As prescribed in 1828.311-270, insert the following clause:

[[Page 443]]

                    Aircraft Flight Risks (Dec 1988)

    (a) Notwithstanding any other provision of this contract 
(particularly paragraph (g) of the Government Property (Cost-
Reimbursement, Time-and-Materials, or Labor-Hour Contracts) clause and 
paragraph (c) of the Insurance--Liability to Third Persons clause), the 
Contractor shall not: (1) Be relieved of liability for damage to, or 
loss or destruction of, aircraft sustained during flight or (2) be 
reimbursed for liabilities to third persons for loss of or damage to 
property or for death or bodily injury caused by aircraft during flight, 
unless the flight crew members have previously been approved in writing 
by the Contracting Officer.
    (b) For the purposes of this clause--
    (1) Unless otherwise specifically provided in the Schedule, 
``aircraft'' includes any aircraft, whether furnished by the Contractor 
under this contract (either before or after Government acceptance) or 
furnished by the Government to the Contractor under this contract, 
including all Government property placed or installed or attached to the 
aircraft, unless the aircraft and property are covered by a separate 
bailment agreement.
    (2) ``Flight'' includes any flight demonstration, flight test, taxi 
test, or other flight made in the performance of this contract, or for 
the purpose of safeguarding the aircraft, or previously approved in 
writing by the Contracting Officer.
    (i) With respect to land-based aircraft, flight commences with the 
taxi roll from a flight line and continues until the aircraft has 
completed the taxi roll to a flight line.
    (ii) With respect to seaplanes, flight commences with the launching 
from a ramp and continues until the aircraft has completed its landing 
run and is beached at a ramp.
    (iii) With respect to helicopters, flight commences upon engagement 
of the rotors for the purpose of take-off and continues until the 
aircraft has returned to the ground and rotors are disengaged.
    (iv) With respect to vertical take-off aircraft, flight commences 
upon disengagement from any launching platform or device and continues 
until the aircraft has been re-engaged to any launching platform or 
device.
    (3) ``Flight crew members'' means the pilot, copilot, and, unless 
otherwise specifically provided in the Schedule, the flight engineer and 
navigator when required or assigned to their respective crew positions 
to conduct any flight on behalf of the Contractor.
    (c) (1) If any aircraft is damaged, lost, or destroyed during flight 
and the amount of the damage, loss, or destruction exceeds $100,000 or 
20 percent of the estimated cost, exclusive of any fee, of this 
contract, whichever is less, and if the Contractor is not liable for the 
damage, loss, or destruction under the Government Property (Cost-
Reimbursement, Time-and-Materials, or Labor-Hour Contracts) clause of 
this contract or under paragraph (a) of this clause, an equitable 
adjustment for any resulting repair, restoration, or replacement 
required under this contract shall be made: (i) In the estimated cost, 
the delivery schedule, or both and (ii) in the amount of any fee to be 
paid to the Contractor, and the contract shall be modified in writing 
accordingly.
    (2) In determining the amount of adjustment in the fee that is 
equitable, any fault of the Contractor, its employees, or any 
subcontractor that materially contributed to the damage, loss, or 
destruction shall be taken into consideration.

                             (End of clause)



Sec. 1852.228-72  Cross-Waiver of liability for space shuttle services.

    As prescribed in 1828.371 (b) and (e), insert the following clause:

    Cross-Waiver of Liability for Space Shuttle Services (Sept 1993)

    (a) As prescribed by regulation (14 CFR part 1266), NASA agreements 
involving Space Shuttle flights are required to contain broad cross-
waivers of liability among the parties and the parties related entities 
to encourage participation in space exploration, use, and investment. 
The purpose of this clause is to extend this cross-waiver requirement to 
Contractors and related entities under their contracts. This cross-
waiver of liability shall be broadly construed to achieve the objective 
of encouraging participation in space activities.
    (b) As used in this clause, the term:
    (1) Contractors and Subcontractors include suppliers of any kind.
    (2) Damage means:
    (i) Bodily injury to, or other impairment of health of, or death of, 
any person;
    (ii) Damage to, loss of, or loss of use of any property;
    (iii) Loss of revenue or profits; or
    (iv) Other direct, indirect, or consequential damage;
    (3) Party means a person or entity that signs an agreement involving 
a Space Shuttle service;
    (4) Payload means all property to be flown or used on or in the 
Space Shuttle; and
    (5) Protected Space Operations means all Space Shuttle and payload 
activities on Earth, in outer space, or in transit between Earth and 
outer space performed in furtherance of an agreement involving Space 
Shuttle services or performed under this contract. ``Protected Space 
Operations'' excludes activities on Earth which are conducted on return 
from space to develop further a payload's product or process except when 
such development is for Space Shuttle-

[[Page 444]]

related activities necessary to implement an agreement involving Space 
Shuttle services or to perform this contract. It includes, but is not 
limited to:
    (i) Research, design, development, test, manufacture, assembly, 
integration, operation, or use of the Space Shuttle, transfer vehicles, 
payloads, related support equipment, and facilities and services;
    (ii) All activities related to ground support, test, training, 
simulation, or guidance and control equipment and related facilities or 
services.
    (6) Related entity means:
    (i) A party's Contractors or subcontractors at any tier;
    (ii) A party's users or customers at any tier; or
    (iii) A Contractor or subcontractor of a party's user or customer at 
any tier.
    (c) (1) The Contractor agrees to a waiver of liability pursuant to 
which the Contractor waives all claims against any of the entities or 
persons listed in paragraph (c)(1)(i) through (c)(1)(iii) of this clause 
based on damage arising out of Protected Space Operations. This waiver 
shall apply only if the person, entity, or property causing the damage 
is involved in Protected Space Operations and the person, entity, or 
property damaged is damaged by virtue of its involvement in Protected 
Space Operations. This waiver shall apply to any claims for damage, 
whatever the legal basis for such claims, including but not limited to 
delict (a term used in civil law countries to denote a class of cases 
similar to tort) and tort (including negligence of every degree and 
kind) and contract, against:
    (i) Any party other than the Government;
    (ii) A related entity of any party other than the Government; and
    (iii) The employees of any of the entities identified in (c)(1)(i) 
and (c)(1)(ii) of this clause.
    (2) The Contractor agrees to extend the waiver of liability as set 
forth in paragraph (c)(1) of this clause to subcontractors at any tier 
by requiring them, by contract or otherwise, to agree to waive all 
claims against the entities or persons identified in paragraphs 
(c)(1)(i) through (c)(1)(iii) of this clause.
    (3) For avoidance of doubt, this cross-waiver includes a cross-
waiver of liability arising from the Convention on International 
Liability for Damage Caused by Space Objects, (March 29, 1972, 24 United 
States Treaties and other International Agreements (U.S.T.) 2389, 
Treaties and Other International Acts Series (T.I.A.S.) No. 7762 in 
which the person, entity, or property causing the damage is involved in 
Protection Space Operations, and the person, entity, or property damaged 
is damaged by virtue of its involvement in Protected Space Operations.
    (4) Notwithstanding the other provisions of this clause, this waiver 
of liability shall not be applicable to:
    (i) Claims between any party and its related entities or claims 
between the Government's related entities (e.g., claims between the 
Government and the Contractor are included within this exception);
    (ii) Claims made by a natural person, his/her estate, survivors, or 
subrogees for injury or death of such natural person;
    (iii) Claims for damage caused by willful misconduct; and
    (iv) Intellectual property claims.
    (5) Nothing in this clause shall be construed to create the basis 
for a claim or suit where none would otherwise exist.

                             (End of clause)

[59 FR 65730, Dec. 21, 1994]



Sec. 1852.228-73  Bid Bond.

    As prescribed in 1828.101-70, insert the following provision:

                           Bid Bond (Oct 1988)

    (a) Each bidder shall submit with its bid a bid bond (Standard Form 
24) with good and sufficient surety or sureties acceptable to the 
Government, or other security as provided in Federal Acquisition 
Regulation clause 52.228-1, in the amount of twenty percent (20%) of the 
bid price, or $3 million, whichever is the lower amount.
    (b) Bid bonds shall be dated the same date as the bid or earlier.

                           (End of provision)



Sec. 1852.228-74  Payment and performance bonds.

    As prescribed in 1828.102-70, insert the following provision:

                Payment and Performance Bonds (Dec 1988)

    Unless the resulting contract is for $25,000 or less, the successful 
bidder will be required to furnish payment and performance bonds to the 
Contracting Officer as follows:

    (a) Performance Bonds: (Standard Form 25)

    (1) The penal amount of performance bonds shall be 100 percent of 
the original contract price.
    (2) The Government may require additional performance bond 
protection when a contract price is increased. The increase in 
protection shall generally equal 100 percent of the increase in contract 
price. The Government may secure additional protection by directing the 
Contractor to increase the penal amount of the existing bond or to 
obtain an additional bond.

    (b) Payment Bonds: (Standard Form 25-A)


[[Page 445]]


    (1) The penal amount of payment bonds shall equal--
    (i) 50 percent of the contract price if the contract price is not 
more than $1 million;
    (ii) 40 percent of the contract price if the contract price is more 
than $1 million but not more than $5 million; or
    (iii) $2.5 million if the contract price is more than $5 million.
    (2) If the original contract price is $5 million or less, the 
Government may require additional protection if the contract price is 
increased. The penal amount of the total protection as revised shall 
meet the requirement of paragraph (a)(1) of this clause.
    (3) The government may secure additional protection by directing the 
Contractor to increase the penal sum of the existing bond or to obtain 
an additional bond.
    (c) The Contractor shall furnish all bonds, including any necessary 
reinsurance agreements, to the Contracting Officer before starting work. 
Performance and payment bonds shall be dated the same date as the 
contract award date; or, in the case of any additional bond protection 
required, the same date as the contract modification date.
    (d) Surety companies acceptable to the Government are identified by 
the Department of Treasury and listed in the Federal Register.

                           (End of provision)



Sec. 1852.228-75  Minimum insurance coverage.

    As prescribed in 1828.372, insert the following clause:

                  Minimum Insurance Coverage (Oct 1988)

    The Contractor shall obtain and maintain insurance coverage as 
follows for the performance of this contract:
    (a) Worker's compensation and employer's liability insurance as 
required by applicable Federal and state workers' compensation and 
occupational disease statutes. If occupational diseases are not 
compensable under those statutes, they shall be covered under the 
employer's liability section of the insurance policy, except when 
contract operations are so commingled with the Contractor's commercial 
operations that it would not be practical. The employer's liability 
coverage shall be at least $100,000, except in States with exclusive or 
monopolistic funds that do not permit workers' compensation to be 
written by private carriers.
    (b) Comprehensive general (bodily injury) liability insurance of at 
least $500,000 per occurrence.
    (c) Motor vehicle liability insurance written on the comprehensive 
form of policy which provides for bodily injury and property damage 
liability covering the operation of all motor vehicles used in 
connection with performing the contract. Policies covering motor 
vehicles operated in the United States shall provide coverage of at 
least $200,000 per person and $500,000 per occurrence for bodily injury 
liability and $20,000 per occurrence for property damage. The amount of 
liability coverage on other policies shall be commensurate with any 
legal requirements of the locality and sufficient to meet normal and 
customary claims.
    (d) Comprehensive general and motor vehicle liability policies shall 
contain a provision worded as follows:
    ``The insurance company waives any right of subrogation against the 
United States of America which may arise by reason of any payment under 
the policy.''
    (e) When aircraft are used in connection with performing the 
contract, aircraft public and passenger liability insurance of at least 
$200,000 per person and $500,000 per occurrence for bodily injury, other 
than passenger liability, and $200,000 per occurrence for property 
damage. Coverage for passenger liability bodily injury shall be at least 
$200,000 multiplied by the number of seats or passengers, whichever is 
greater.

                             (End of clause)



Sec. 1852.228-76  Cross-Waiver of liability for space station activities.

    As prescribed in 1828.371(d) and (e), insert the following clause:

    Cross-Waiver of Liability for Space Station Activities (Dec 1994)

    (a) The Intergovernmental Agreement for the Space Station contains a 
broad cross-waiver provision to encourage participation in the 
exploration and use of outer space through the Space Station. The 
purpose of this clause is to extend this cross-waiver requirement to 
Contractors and subcontractors as related entities of NASA. This cross-
waiver of liability shall be broadly construed to achieve this objective 
of encouraging participation in space activities.
    (b) As used in this clause, the term:
    (1) Damage means:
    (i) Bodily injury to, or other impairment of health of, or death of, 
any person;
    (ii) Damage to, loss of, or loss of use of any property;
    (iii) Loss of revenue or profits; or
    (iv) Other direct, indirect, or consequential damage.
    (2) Launch Vehicle means an object (or any part thereof) intended 
for launch, launched from Earth, or returning to Earth which carries 
payloads or persons, or both.
    (3) Partner State means each contracting party for which the 
``Agreement among the Government of the United States of America, 
Governments of Member States of the European Space Agency, Government of

[[Page 446]]

Japan, and the Government of Canada on Cooperation in the Detailed 
Design, Development, Operation, and Utilization of the Permanently 
Manned Civil Space Station'' (the ``Intergovernmental Agreement'') has 
entered into force, in accordance with Article 25 of the 
Intergovermental Agreement, and also includes any future signatories of 
the Intergovernmental Agreement. It includes the Cooperating Agency of a 
Partner State. The National Aeronautics and Space Administration (NASA) 
for the United States, the Canadian Space Agency (CSA) for the 
Government of Canada, the European Space Agency (ESA) and the Science 
and Technology Agency of Japan (STA) are the Cooperating Agencies 
responsible for implementing Space Station cooperation. A Partner State 
also includes any entity specified to the Memorandum of Understanding 
(MOU) between NASA and the Government of Japan to assist the Government 
of Japan Cooperating Agency in the implementation of that MOU.
    (4) Payload means all property to be flown or used on or in a launch 
vehicle or the Space Station.
    (5) Protected Space Operations means all launch vehicle activities, 
space station activities, and payload activities on Earth, in outer 
space, or in transit between Earth and outer space performed in 
furtherance of the Intergovernmental Agreement or performed under this 
contract. ``Protected Space Operations'' also includes all activities 
related to evolution of the Space Station as provided for in Article 14 
of the Intergovernmental Agreement. ``Protected Space Operations'' 
excludes activities on Earth which are conducted on return from the 
Space Station to develop further a payload's product or process except 
when such development is for Space Station-related activities in 
implementation of the Intergovernmental Agreement or in performance of 
this contract. It includes, but is not limited to:
    (i) Research, design, development, test, manufacture, assembly, 
integration, operation, or use of launch or transfer vehicles, payloads, 
related support equipment, and facilities and services;
    (ii) All activities related to ground support, test, training, 
simulation, or guidance and control equipment and related facilities or 
services.
    (6) Related entity means:
    (i) A Partner State's Contractors or sub-contractors at any tier;
    (ii) A Partner State's users or customers at any tier; or
    (iii) A Contractor or subcontractor of a Partner States's user or 
customer at any tier.
    (7) Contractors and Subcontractors include suppliers of any kind.
    (c) (1) The Contractor agrees to a cross-waiver of liability 
pursuant to which the Contractor waives all claims against any of the 
entities or persons listed in paragraphs (c)(1)(i) through (c)(1)(iii) 
of this clause based on damage arising out of Protected Space 
Operations. This waiver shall apply only if the person, entity, or 
property causing the damage is involved in Protected Space Operations 
and the person, entity, or property damaged is damaged by virtue of its 
involvement in Protected Space Operations. The cross-waiver shall apply 
to any claims for damage, whatever the legal basis for such claims, 
including but not limited to delict (a term used in civil law countries 
to denote a class of cases similar to tort) and tort (including 
negligence of every degree and kind) and contract against:  ............
    (i) Any Partner State other than the United States;
    (ii) A related entity of any Partner State other than the United 
States; and
    (iii) The employee of any of the entities identified in paragraphs 
(c)(1) (i) and (ii) of this clause.
    (2) The Contractor agrees to extend the waiver of liability as set 
forth in paragraph (c)(1) of this clause to subcontractors at any tier 
by requiring them, by contract or otherwise, to agree to waive all 
claims against the entities or persons identified in paragraphs 
(c)(1)(i) through (c)(1)(iii) of this clause.
    (3) For avoidance of doubt, this cross-waiver includes a cross-
waiver of liability arising from the Convention on International 
Liability for Damage Caused by Space Objects, (March 29, 1972, 24 United 
States Treaties and other International Agreements (U.S.T.) 2389, 
Treaties and other International Acts Series (T.I.A.S.) No. 7762) in 
which the person, entity, or property causing the damage is involved in 
Protected Space Operations.
    (4) Notwithstanding the other provisions of this clause, this cross-
waiver of liability shall not be applicable to:
    (i) Claims between the United States and its related entities or 
claims between the related entities of any Partner State (e.g., claims 
between the Government and the Contractor are included within this 
exception);
    (ii) Claims made by a natural person, his/her estate, survivors, or 
subrogees for injury or death of such natural person;
    (iii) Claims for damage caused by willful misconduct; and
    (iv) Intellectual property claims.
    (5) Nothing in this clause shall be construed to create the basis 
for a claim or suit where none would otherwise exist.

                             (End of clause)

[59 FR 65730, Dec. 21, 1994]

[[Page 447]]



Sec. 1852.228-77   Reimbursement for war-hazard losses.

    As prescribed in 1828.309, insert the following clause:

             Reimbursement For War-Hazard Losses (Dec 1988)

    (a) The Contractor's costs for assuming liability for employee 
protection against war-hazard risks pursuant to paragraph (b) of the 
Worker's Compensation and War-Hazard Insurance Overseas clause shall be 
an allowable cost under this contract, subject to the following:
    (1) The Contractor shall submit proof-of-loss files to support 
payment or denial of each claim.
    (2) As soon as practicable, but no later than one year after the 
expiration or termination of this contract, unless the Contracting 
Officer extends the time, the Contractor shall convert each claim which 
has not been finally settled into a suitable arrangement under which the 
claim can be extinguished by the Contractor with a lump-sum payment. 
Subject to approval by the Contracting Officer, the Contractor shall 
then obtain necessary release documents and settle the claim by lump-sum 
arrangement, taking into account any payments previously made.
    (3) As to any potential claim that is known to, or reasonably should 
be within the knowledge of, the Contractor at the time of final 
settlement under this contract, the Contractor shall, at that time, 
present to the Government a full report and evaluation, indicating as to 
each potential claim that a reasonable investigation of the 
circumstances has been made and giving the results of the investigation, 
an evaluation of the merits, and an estimate of the amount involved 
should the potential claim mature into a valid obligation.
    (4) The cost of insurance against a liability reimbursable under 
this clause shall not be an allowable cost or otherwise recoverable 
under this contract.
    (b) The Government may require the Contractor to assign to the 
Government in the manner, at the times, and to the extent directed by 
the Contracting Officer all right, title, and interest of the Contractor 
to any refund, rebate, or recapture arising out of any claim settlement. 
The Government may handle such assigned entitlements in any manner it 
deems appropriate and may recover any benefits related to claim 
settlements.
    (c) The Contractor shall, as soon as practicable after an occurrence 
that appears to give rise to a claim under this portion of the contract, 
(1) perform any investigations that may be appropriate and (2) promptly 
notify the Contracting Officer in writing of any additional amount 
estimated to be necessary to be obligated on account of that claim. In 
addition, the Contractor shall give the Government or its 
representatives immediate written notice of any suit or action filed 
whose cost or expense may be reimbursable to the Contractor under this 
clause. The Contractor shall render full assistance to the Government in 
connection with any third-party suit or claim relating to this clause or 
its subject matter that the Government elects to prosecute or defend in 
its own behalf.

                             (End of clause)



Sec. 1852.228-78  Cross-Waiver of liability for NASA expendable launch vehicle launches.

    As prescribed in 1828.371 (c) and (e), insert the following clause:

   Cross-Waiver of Liability for NASA Expendable Launch Vehicle (ELV) 
                          Launches (Sept 1993)

    (a) As prescribed by regulation (14 CFR part 1266), NASA agreements 
involving ELV launches are required to contain broad cross-waivers of 
liability among the parties and the parties related entities to 
encourage participation in space exploration, use, and investment. The 
purpose of this clause is to extend this cross-waiver requirement to 
contractors and subcontractors as related entities of NASA. This cross-
waiver of liability shall be broadly construed to achieve the objective 
of encouraging participation in space activities.
    (b) As used in this clause, the term:
    (1) Contractors and Subcontractors include suppliers of any kind.
    (2) Damage means:
    (i) Bodily injury to, or other impairment of health of, or death of, 
any person;
    (ii) Damage to, loss of, or loss of use of any property;
    (iii) Loss of revenue or profits; or
    (iv) Other direct, indirect, or consequential damage;
    (3) Party means a person or entity that signs an agreement involving 
an ELV launch;
    (4) Payload means all property to be flown or used on or in the ELV; 
and
    (5) Protected Space Operations means all ELV and payload activities 
on Earth, in outer space, or in transit between Earth and outer space 
performed in furtherance of an agreement involving an ELV launch or 
performed under the contract. ``Protected Space Operations'' excludes 
activities on Earth which are conducted on return from space to develop 
further a payload's product or process except when such development is 
for ELV-related activities necessary to implement an agreement involving 
an ELV launch or to perform this contract. It includes, but is not 
limited to:

[[Page 448]]

    (i) Research, design, development, test, manufacture, assembly, 
integration, operation, or use of ELVs, transfer vehicles, payloads, 
related support equipment, and facilities and services;
    (ii) All activities related to ground support, test, training, 
simulation, or guidance and control equipment and related facilities or 
services.
    (6) Related entity means:
    (i) A party's Contractors or subcontractors at any tier;
    (ii) A party's users or customers at any tier; and
    (iii) A Contractor or subcontractor of a party's user or customer at 
any tier.
    (c) (1) The Contractor agrees to a waiver of liability pursuant to 
which the Contractor waives all claims against any of the entities or 
persons listed in paragraphs (c)(1)(i) through (c)(1)(iii) of this 
clause based on damage arising out of Protected Space Operations. This 
waiver shall apply only if the person, entity, or property causing the 
damage is involved in Protected Space Operations and the persons, 
entity, or property damaged is damaged by virtue of its involvement in 
Protected Space Operations. The waiver shall apply to any claims for 
damage, whatever the legal basis for such claims, including but not 
limited to delict (a term used in civil law countries to denote a class 
of cases similar to tort) and tort (including negligence of every degree 
and kind) and contract, against:
    (i) Any party other than the Government;
    (ii) A related entity of any party other than the Government; and
    (iii) The employees of any of the entities identified in (c)(1) (i) 
and (ii) of this clause.
    (2) The Contractor agrees to extend the waiver of liability as set 
forth in paragraph (c)(1) of this clause to subcontractors at any tier 
by requiring them, by contract or otherwise, to agree to waive all 
claims against the entities or persons identified in paragraphs 
(c)(1)(i) through (c)(1)(iii) of this clause.
    (3) For avoidance of doubt, this cross-waiver includes a cross-
waiver of liability arising from the Convention on International 
Liability for Damage Caused by Space Objects, (March 29, 1972, 24 United 
States Treaties and other International Agreements (U.S.T.) 2389, 
Treaties and other International Acts Series (T.I.A.S.) No. 7762) in 
which the person, entity, or property causing the damage is involved in 
Protected Space Operations.
    (4) Notwithstanding the other provisions of this clause, this cross-
waiver of liability shall not be applicable to:
    (i) Claims between any party and its related entities or claims 
between any party's related entities (e.g., claims between the 
Government and the Contractor are included within this exception);
    (ii) Claims made by a natural person, his/her estate, survivors, or 
subrogees for injury or death of such natural person;
    (iii) Claims for damage caused by willful misconduct; and
    (iv) Intellectual property claims.
    (5) Nothing in this clause shall be construed to create the basis 
for a claim or suit where none would otherwise exist.
    (6) This cross-waiver shall not be applicable when the Commercial 
Space Launch Act cross-waiver (49 U.S.C. App. 2615) is applicable.

                             (End of clause)

[59 FR 56731, Dec. 21, 1994]



Sec. 1852.231-70  Precontract costs.

    As prescribed in 1831.205-70, insert the following clause:

                            Precontract Costs

                               (June 1995)

    The contractor shall be entitled to reimbursement for costs incurred 
on or after ________________ in an amount not to exceed $________ that, 
if incurred after this contract had been entered into, would have been 
reimbursable under this contract.

(End of clause)

[60 FR 29505, June 5, 1995]



Sec. 1852.231-71  Determination of Compensation Reasonableness.

    As prescribed at 1831.205-671, insert the following provision.

        Determination of Compensation Reasonableness (March 1994)

    (a) The proposal shall include a total compensation plan. This plan 
shall address all proposed labor categories, including those personnel 
subject to union agreements, the Service Contract Act, and those exempt 
from both of the above. The total compensation plan shall include the 
salaries/wages, fringe benefits and leave programs proposed for each of 
these categories of labor. The plan also shall include a discussion of 
the consistency of the plan among the categories of labor being 
proposed. Differences between benefits offered professional and non-
professional employees shall be highlighted. The requirements of this 
plan may be combined with that required by the clause at (FAR) 48 CFR 
52.222-46, ``Evaluation of Compensation for Professional Employees.''
    (b) The offeror shall provide written support to demonstrate that 
its proposed compensation is reasonable.
    (c) The offeror shall include the rationale for any conformance 
procedures used for

[[Page 449]]

those Service Contract Act employees proposed that do not fall within 
the scope of any classification listed in the applicable wage 
determination.
    (d) The offeror shall require all service subcontractors (1) with 
proposed cost reimbursement or non-competitive fixed-price type 
subcontracts having a total potential value in excess of $500,000 and 
(2) the cumulative value of all their service subcontracts under the 
proposed prime contract in excess of 10 percent of the prime contract's 
total potential value, provide as part of their proposals the 
information identified in (a) through (c) of this provision.

                           (End of provision)

[59 FR 12199, Mar. 16, 1994]



Sec. 1852.232-12  Advance Payments.

    As prescribed at 1832.412, modify the ``Maximum Payment'' paragraph 
(either paragraph (d) or (e)) of 52.232-12, Advance Payments, as 
follows:
    In the sentence that begins ``When the sum of'', change the word 
``When'' to lower case and insert before it the following: 
``Unliquidated advance payments shall not exceed $ * * * at any time 
outstanding. In addition * * *''.

[57 FR 844, Jan. 9, 1992]



Sec. 1852.232-70  NASA Progress Payment Rates.

    As prescribed in 1832.503-470 insert the following clause:

                 NASA Progress Payment Rates (Nov 1991)

    (a) If the contractor is a large business, the Progress Payments 
clause of this contract is modified to change each mention of the 
progress payment rate and the ordinary liquidation rate (excepting 
paragraph (k), Limitation on Undefinitized Contract Actions) to 85 
percent.
    (b) If the contractor is a small business, the Progress Payments 
clause of this contract is modified to change each mention of the 
progress payment rate and the ordinary liquidation rate (excepting 
paragraph (k), Limitation on Undefinitized Contract Actions) to 90 
percent.
    (c) If the contractor is a small disadvantaged business, the 
Progress Payments clause of this contract is modified to change each 
mention of the progress payment rate and the ordinary liquidation rate 
(excepting paragraph (k), Limitation on Undefinitized Contract Actions) 
to 95 percent.
    (d) The above rates are customary uniform progress payment rates for 
NASA contracts.

                             (End of clause)

[56 FR 63877, Dec. 6, 1991, as amended at 57 FR 40856, Sept. 8, 1992]



Sec. 1852.232-77  Limitation of funds (fixed-price contract).

    As prescribed in 1832.705-270(a), insert the following clause. 
Contracting officers are authorized, in appropriate cases, to revise 
clause paragraphs (a), (b), and (g) to specify the work required under 
the contract, in lieu of using contract item numbers. The 60-day period 
may be varied from 30 to 90 days, and the 75 percent from 75 to 85 
percent:

          Limitation of Funds (Fixed-Price Contract) (Mar 1989)

    (a) Of the total price of items ____ through ____, the sum of $____ 
is presently available for payment and allotted to this contract. It is 
anticipated that from time to time additional funds will be allocated to 
the contract in accordance with the following schedule, until the total 
price of said items is allotted:

                     Schedule for Allotment of Funds

Date        Amounts

    (b) The Contractor agrees to perform or have performed work on the 
items specified in paragraph (a) of this clause up to the point at 
which, if this contract is terminated pursuant to the Termination for 
Convenience of the Government clause of this contract, the total amount 
payable by the Government (including amounts payable for subcontracts 
and settlement costs) pursuant to paragraphs (f) and (g) of that clause 
would, in the exercise of reasonable judgment by the Contractor, 
approximate the total amount at the time allotted to the contract. The 
Contractor is not obligated to continue performance of the work beyond 
that point. The Government is not obligated in any event to pay or 
reimburse the Contractor more than the amount from time to time allotted 
to the contract, anything to the contrary in the Termination for 
Convenience of the Government clause notwithstanding.
    (c) (1) It is contemplated that funds presently allotted to this 
contract will cover the work to be performed until ____.
    (2) If funds allotted are considered by the Contractor to be 
inadequate to cover the work to be performed until that date, or an 
agreed date substituted for it, the Contractor shall notify the 
Contracting Officer in writing when within the next 60 days the work 
will reach a point at which, if the contract is terminated pursuant to 
the Termination for Convenience of the Government clause of this 
contract, the total amount

[[Page 450]]

payable by the Government (including amounts payable for subcontracts 
and settlement costs) pursuant to paragraphs (f) and (g) of that clause 
will approximate 75 percent of the total amount then allotted to the 
contract.
    (3) (i) The notice shall state the estimated date when the point 
referred to in paragraph (c)(2) of this clause will be reached and the 
estimated amount of additional funds required to continue performance to 
the date specified in paragraph (c)(1) of this clause, or an agreed date 
substituted for it.
    (ii) The Contractor shall, 60 days in advance of the date specified 
in paragraph (c)(1) of this clause, or an agreed date substituted for 
it, advise the Contracting Officer in writing as to the estimated amount 
of additional funds required for the timely performance of the contract 
for a further period as may be specified in the contract or otherwise 
agreed to by the parties.
    (4) If, after the notification referred to in paragraph (c)(3)(ii) 
of this clause, additional funds are not allotted by the date specified 
in paragraph (c)(1) of this clause, or an agreed date substituted for 
it, the Contracting Officer shall, upon the Contractor's written 
request, terminate this contract on that date or on the date set forth 
in the request, whichever is later, pursuant to the Termination for 
Convenience of the Government clause.
    (d) When additional funds are allotted from time to time for 
continued performance of the work under this contract, the parties shall 
agree on the applicable period of contract performance to be covered by 
these funds. The provisions of paragraphs (b) and (c) of this clause 
shall apply to these additional allotted funds and the substituted date 
pertaining to them, and the contract shall be modified accordingly.
    (e) If, solely by reason of the Government's failure to allot 
additional funds in amounts sufficient for the timely performance of 
this contract, the Contractor incurs additional costs or is delayed in 
the performance of the work under this contract, and if additional funds 
are allotted, an equitable adjustment shall be made in the price or 
prices (including appropriate target, billing, and ceiling prices where 
applicable) of the items to be delivered, or in the time of delivery, or 
both.
    (f) The Government may at any time before termination, and, with the 
consent of the Contractor, after notice of termination, allot additional 
funds for this contract.
    (g) The provisions of this clause with respect to termination shall 
in no way be deemed to limit the rights of the Government under the 
default clause of this contract. The provisions of this Limitation of 
Funds clause are limited to the work on and allotment of funds for the 
items set forth in paragraph (a). This clause shall become inoperative 
upon the allotment of funds for the total price of said work except for 
rights and obligations then existing under this clause.
    (h) Nothing in this clause shall affect the right of the Government 
to terminate this contract pursuant to the Termination for Convenience 
of the Government clause of this contract.

                             (End of clause)



Sec. 1852.232-79   Payment for on-site preparatory costs

    As prescribed in 1832.111-70, insert the following clause:

            Payment for On-Site Preparatory Costs (Sept 1987)

    Costs associated with on-site preparatory work (start-up or set-up 
costs) will be prorated over all work activities of a Critical Path 
Method (CPM) network or Progress Chart against which progress payments 
will be sought. Separate payment for on-site preparatory costs will not 
be made by the Government.

                             (End of clause)



Sec. 1852.232-81  Contract funding.

    As prescribed in 1832.705-270(b), insert the following clause:

                       Contract Funding (Jun 1990)

    (a) For purposes of payment of cost, exclusive of fee, in accordance 
with the Limitation of Funds clause, the total amount allotted by the 
Government to this contract is $________. This allotment is for [Insert 
applicable item number(s), task(s), or work description] __________ and 
covers the following estimated period of performance: __________.
    (b) An additional amount of $ ______ is obligated under this 
contract for payment of fee.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 55 FR 27090, June 29, 1990; 57 
FR 40856, Sept. 8, 1992]



Sec. 1852.232-82  Submission of requests for progress payments.

    As prescribed in 1832.502-470, insert the following clause:

         Submission of Requests for Progress Payments (Mar 1989)

    The Contractor shall request progress payments in accordance with 
the Progress Payments clause by submitting to the Contracting Officer an 
original and two copies of Standard Form (SF) 1443, Contractor's Request 
for Progress Payment, and the contractor's invoice (if applicable). The 
Contracting Officer's office is the designated

[[Page 451]]

billing office for progress payments for purposes of the Prompt Payment 
clause.

                             (End of clause)



Sec. 1852.232-83  Milestone billing arrangements.

    As prescribed in 1832.7008(a), insert the following clause.

                Milestone Billing Arrangements (Dec 1992)

    (a) A payment will be made to the contractor upon completion of each 
milestone event specified in paragraph (g) of this clause in the amount 
specified for the relevant milestone event.
    (b) Upon completion of each milestone billing event, the contractor 
shall notify the contracting officer in writing, accompanied by a 
voucher and certification, that the milestone event has been completed. 
The contractor's written notification shall contain a brief narrative of 
the work activity accomplished for the particular milestone event. The 
contracting officer shall promptly verify that successful completion of 
the milestone event has occurred, notify the contractor of NASA's 
concurrence, and forward the contractor's voucher with a copy of the 
verification to the designated paying office.
    (c) Milestone billings, normally, will not be submitted after 
deliveries of major end items commence upon which milestone payments 
have been made. In the event the period between delivery of such major 
end item and the next end item delivery exceeds three months, milestone 
payments can continue to be made for the next item, as mutually agreed 
for appropriate events.
    (d) All milestone payments are interim contract financing payments 
with respect to total contract performance. As such, they are fully 
recoverable in the event of default under the Default clause. Therefore, 
all milestone payments made with respect to contract line items that are 
not delivered and accepted by the Government shall, in the event of a 
termination for default, be paid to the Government upon demand.
    (e) The contractor shall establish and record a preferred creditor's 
lien on behalf of the Government, i.e., a first lien paramount to all 
other liens, in each jurisdiction where property subject to this 
contract is located. The lien shall be on the contractor's work-in-
process covered by the contract, except to the extent that the 
Government by virtue of any other terms of this contract, or otherwise, 
shall have valid title to the supplies, materials, or other property as 
against other creditors of the contractor. The property subject to the 
liens shall include that to be acquired under subcontracts where 
payments are to be made to the subcontractor prior to the acceptance of 
such property. The contractor shall promptly provide to the Government a 
copy of all lien filings.
    (f) The contractor represents and warrants that it maintains (1) 
insurance on plant and equipment against fire and other hazards, to the 
extent that similar properties are usually insured by others operating 
plants and properties of similar character in the same general locality; 
(2) adequate insurance against liability on account of damage to persons 
or property; and (3) adequate insurance under all applicable workers' 
compensation laws. The contractor agrees that, until work under this 
contract has been completed and all payments made under the contractor 
have been liquidated, it will maintain this insurance and furnish any 
certificates with respect to its insurance that the administering office 
may require.
    (g) Upon successful completion of a milestone event, the contractor 
may request milestone payments based on the following milestone data:

------------------------------------------------------------------------
                                         Contract             Estimated 
            Milestone event                line     Amount     date of  
                                           item               completion
------------------------------------------------------------------------
(1)                                                                     
(2)                                                                     
(3) etc.                                                                
------------------------------------------------------------------------


    (h)(1) A milestone event may be successfully completed in advance of 
the date appearing in paragraph (g) of this clause. However, payment 
shall not be made prior to that date without the prior written consent 
of the contracting officer.
    (2) The contractor is not entitled to partial payment for less than 
successful completion of a milestone event.
    (3) All preceding milestone events must be successfully completed 
before payment can be made for the next milestone event, unless the 
prior written consent of the contracting officer is obtained.

                             (End of clause)

58 FR 4088, Jan. 13, 1993]



Sec. 1852.232-84   Milestone billing arrangements--subcontracts.

    As prescribed in 1832.7008(b), insert the following clause.

         Milestone Billing Arrangements--Subcontracts (Dec 1992)

    (a) The Contractor is prohibited from using milestone billing 
arrangements in subcontracts except in accordance with subpart 1832.70.
    (b) The Contractor shall insert the substance of this clause, 
including this paragraph (b), in all subcontracts in excess of $10 
million.

[[Page 452]]

                             (End of clause)

[58 FR 4088, Jan. 13, 1993]



Sec. 1852.234-70  Phased procurement using down-selection procedures.

    As prescribed in 1834.005-170(a), insert the following clause in 
solicitations and contracts for phased procurements using down-selection 
procedures other than the progressive competition technique. Phase 
identifications should be modified as appropriate:

      Phased Procurement Using Down-Selection Procedures (Nov 1993)

    (a) This solicitation is for the acquisition of ________ [Insert 
Program titles]. This system is a major system as defined by Office of 
Management and Budget Circular A-109 and NASA Management Instruction 
(NMI) 7120.4. The acquisition will be conducted as two-phased 
procurement using a competitive down-selection technique between phases. 
In this technique, two or more contractors will be selected for Phase B. 
It is expected that the contractor for Phase C/D will be chosen from 
among these contractors after a competitive down-selection.
    (b) Phase B is for the ________ [Insert purpose of phase]. NASA 
anticipates awarding two or more contracts for this phase. A subsequent 
single award will be made for Phase C/D in which the contractor will 
________ [insert general phase C/D goals].
    (c) The competition for Phase C/D will be based on the results of 
Phase B, and the award criteria for C/D will include successful 
completion of Phase B requirements.
    (d) NASA will issue a separate, formal solicitation for Phase C/D, 
and all information required for preparation of Phase C/D proposals, 
including the final evaluation factors, will be provided at that time.
    (e) Phase C/D will be synopsized in the Commerce Business Daily 
(CBD) in accordance with FAR 5.201 and 5.203 unless one of the 
exceptions in FAR 5.202 applies. Notwithstanding NASA's expectation that 
only the Phase B contractors will be capable of successfully competing 
for Phase C/D, all proposals will be considered. Any other responsible 
source may indicate its desire to submit a proposal by responding to the 
Phase C/D synopsis, and NASA will provide that source a solicitation.
    (f) To be considered for Phase C/D award, however, offerors must 
demonstrate a design maturity equivalent to that of the Phase B 
contractors, such demonstration to include the following Phase B 
deliverables upon which Phase C/D award will be based: ________ (Insert 
the specific Phase B deliverables). Failure to fully and completely 
demonstrate the appropriate level of design maturity may render the 
proposal unacceptable with no further consideration for contract award.
    (g) The following draft Phase C/D evaluation factors are provided 
for your information. Please note that these evaluation factors are not 
final, and NASA reserves the right to change them at any time up to and 
including the date upon which Phase C/D proposals are solicited.
    [Insert draft Phase C/D evaluation factors (and subfactors and 
elements, if available), including demonstration of successful 
completion of Phase B requirements.]
    (h) Although NASA intends to select the Phase C/D contractor from 
among the Phase B contractors and will automatically request Phase C/D 
proposals from only these contractors, submission of the Phase C/D 
proposal is not a requirement of the Phase B contract. Accordingly, the 
costs of preparing these proposals shall not be a direct charge to the 
Phase B contract or any other Government contract.
    (i) The anticipated schedule for conducting this phased procurement 
is provided for your information. These dates are projections only and 
are not intended to commit NASA to complete a particular action at a 
given time. [Insert dates below].

    Phase B award--
    Phase C/D synopsis--
    Phase C/D proposal requested--
    Phase C/D proposal receipt--
    Phase C/D award--

                             (End of clause)

[58 FR 58794, Nov. 4, 1993, as amended at 59 FR 10080, Mar. 3, 1994]



Sec. 1852.234-71  Phased procurement using progressive competition down-selection procedures.

    As prescribed in 1834.005-170(b), insert the following clause in 
solicitations and contracts for phased procurements using progressive 
competition down-selection procedures. Phase identifications should be 
modified as appropriate.

    Phased Procurement Using Progressive Competitive Down-Selection 
                          Procedures (Nov 1993)

    (a) This solicitation is for the acquisition of ________ [Insert 
Program title]. This system is a major system as defined by Office of 
Management and Budget Circular A-109 and NASA Management Instruction 
(NMI) 7120.4. The acquisition will be conducted as a two-phased 
procurement using a progressive competition down-selection technique 
between

[[Page 453]]

phases. In this technique, two or more contractors will be selected for 
Phase B. It is expected that the contractor for Phase C/D will be chosen 
from among these contractors after a competitive down-selection.
    (b) Phase B is for the ________ [Insert purpose of phase]. NASA 
anticipates awarding two or more contracts for this phase. A subsequent 
single award will be made for Phase C/D in which the contractor will 
________ [insert general phase C/D goals].
    (c) The competition for Phase C/D will be based on the results of 
Phase B, and the award criteria for C/D will include successful 
completion of Phase B requirements.
    (d) NASA does not intend to issue a separate, formal solicitation 
for Phase C/D. Instead, Phase C/D proposals will be requested from the 
Phase B contractors by means of ________ [Indicate method of requesting 
proposals, e.g., by a letter]. All information required for preparation 
of Phase C/D proposals, including the final evaluation criteria and 
factors, will be provided at that time.
    (e) Phase C/D will be synopsized in the Commerce Business Daily 
(CBD) in accordance with FAR 5.201 and 5.203 unless one of the 
exceptions in FAR 5.202 applies. Notwithstanding NASA's expectation that 
only the Phase B contractors will be capable of successfully competing 
for Phase C/D, all proposals will be considered. Any other responsible 
source may indicate its desire to submit a proposal by responding to the 
Phase C/D synopsis, and NASA will provide that source all the material 
furnished to the Phase B contractors that is necessary to submit a 
proposal.
    (f) To be considered for Phase C/D award, however, offerors must 
demonstrate a design maturity equivalent to that of the Phase B 
contractors, such demonstration to include the following Phase B 
deliverables upon which Phase C/D award will be based: ________ (Insert 
the specific Phase B deliverables). Failure to fully and completely 
demonstrate the appropriate level of design maturity may render the 
proposal unacceptable with no further consideration for contract award.
    (g) The following draft Phase C/D evaluation factors are provided 
for your information. Please note that these evaluation factors are not 
final, and NASA reserves the right to change them at any time up to and 
including the date upon which Phase C/D proposals are requested. Any 
such changes in evaluation factors will not necessitate issuance of a 
new, formal solicitation for Phase C/D.
    [Insert draft Phase C/D evaluation factors (and subfactors and 
elements, if available), including demonstration of successful 
completion of Phase B requirements.]
    (h) Although NASA intends to select the Phase C/D contractor from 
among the Phase B contractors and will automatically request Phase C/D 
proposals from only these contractors, submission of the Phase C/D 
proposal is not a requirement of the Phase B contract. Accordingly, the 
costs of preparing these proposals shall not be a direct charge to the 
Phase B contract or any other Government contract.
    (i) The anticipated schedule for conducting this phased procurement 
is provided for your information. These dates are projections only and 
are not intended to commit NASA to complete a particular action at a 
given time. [Insert dates below].

    Phase B award--
    Phase C/D synopsis--
    Phase C/D proposal requested--
    Phase C/D proposal receipt--
    Phase C/D award--

                             (End of clause)

[58 FR 58794, Nov. 4, 1993, as amended at 59 FR 10080, Mar. 3, 1994]



Sec. 1852.235-70  Center for AeroSpace Information.

    As prescribed in 1827.409(i) and 1835.070(a), insert the following 
clause:

               Center for Aerospace Information (Nov 1992)

    (a) The Contractor should register with and avail itself of the 
services provided by the NASA Center for AeroSpace Information (CASI) 
for the conduct of research or research and development required under 
this contract. CASI provides a variety of services and products as a 
central NASA repository of research information which may enhance 
contract performance. The address is set out in paragraph (d) of this 
clause.
    (b) Should the CASI information or service requested by the 
Contractor be unavailable or not in the exact form necessary by the 
Contractor, neither CASI nor NASA is obligated to search for or change 
the format of the information. A failure to furnish information shall 
not entitle the Contractor to an equitable adjustment under the terms 
and conditions of this contract.
    (c) When the contract otherwise requires the submission of monthly 
progress, quarterly progress, or final reports, as defined at 
1827.406(b), the last page of such reports shall be a completed Standard 
Form (SF) 298, Report Documentation Page.
    (d) When the contract requires the delivery of reports or data to 
CASI, a reproducible copy and a printed or reproduced copy of such 
reports or data shall be concurrently submitted to: Center for AeroSpace 
Information (CASI), Attn: Accessioning Department, 800 Elkridge Landing 
Road, Linthicum Heights, MD 21090-2934.

[[Page 454]]

                             (End of clause)

[57 FR 58725, Dec. 11, 1992]



Sec. 1852.235-71  Key personnel and facilities.

    As prescribed in 1835.070(b), insert the following clause:

                 Key Personnel and Facilities (Mar 1989)

    (a) The personnel and/or facilities listed below (or specified in 
the contract Schedule) are considered essential to the work being 
performed under this contract. Before removing, replacing, or diverting 
any of the listed or specified personnel or facilities, the Contractor 
shall (1) notify the Contracting Officer reasonably in advance and (2) 
submit justification (including proposed substitutions) in sufficient 
detail to permit evaluation of the impact on this contract.
    (b) The Contractor shall make no diversion without the Contracting 
Officer's written consent; provided, that the Contracting Officer may 
ratify in writing the proposed change, and that ratification shall 
constitute the Contracting Officer's consent required by this clause.
    (c) The list of personnel and/or facilities (shown below or as 
specified in the contract Schedule) may, with the consent of the 
contracting parties, be amended from time to time during the course of 
the contract to add or delete personnel and/or facilities.

[List here the personnel and/or facilities considered essential, unless 
they are specified in the contract Schedule.]

                             (End of clause)



Sec. 1852.235-72  Plan for new technology reporting.

    As prescribed in 1835.070(c), insert the following provision:

              Plan for New Technology Reporting (Mar 1989)

    The Offeror shall, in the proposal in response to this solicitation, 
provide estimates of the cost and manpower requirements to perform the 
new technology reporting required by the clause at 1852.227-70, New 
Technology, which is to be included in any resulting contract. In 
addition, if selected for negotiation, the Offeror will be required to 
submit for approval before contract execution a detailed plan setting 
forth the manner in which the Offeror will meet the new technology 
reporting requirements of the New Technology clause. This plan shall, at 
a minimum--
    (a) Identify the specific areas of technical effort that are 
considered likely to generate new technology;
    (b) Describe the means by which project supervisory and technical 
personnel will be advised of the responsibilities, details, and benefits 
of new technology reporting;
    (c) Describe the procedures to be established, maintained, and 
followed for reviewing the effort to be undertaken for the purposes of 
identification and reporting (disclosure) of new technology within the 
time periods and in the manner prescribed by the New Technology clause;
    (d) Describe the procedure for timely submission of the interim and 
final new technology reports required by the New Technology clause;
    (e) Describe the procedures for (1) selecting either NASA's New 
Technology clause or another patent rights clause for inclusion in 
subcontracts having as a purpose the conduct of experimental, 
developmental, research, design, or engineering work, and (2) providing 
prompt notification of either the award of such subcontracts or a 
subcontractor's refusal to accept the clause; and
    (f) Identify the individual(s) assigned substantial and specific 
responsibilities for ensuring compliance with the requirements of the 
New Technology clause, as well as their qualifications and 
organizational placement to discharge these responsibilities.

                           (End of provision)



Sec. 1852.236-71  Additive or deductive items.

    As prescribed in 1836.370(a), insert the following provision:

                 Additive or Deductive Items (Mar 1989)

    (a) The low bidder for purposes of award shall be the conforming 
responsible bidder offering the low aggregate amount for the first or 
base bid item, plus or minus (in order of priority listed in the 
Schedule) those additive or deductive bid items providing the most 
features of the work within the funds determined by the Government to be 
available before bids are opened. If addition of another bid item in the 
listed order of priority would make the award exceed those funds for all 
bidders, it shall be skipped and the next subsequent additive bid item 
in a lower amount shall be added for each bid if award on it can be made 
within the funds.
    (b) An example for one bid is an amount available of $100,000, a 
bidder's base bid of $85,000, and four successive additives of $10,000, 
$8,000, $6,000, and $4,000. In this example, the aggregate amount of the 
bid for purposes of award would be $99,000 for the base bid plus the 
first and fourth additives, the second and third additives being skipped 
because either of them would cause the aggregate bid to exceed $100,000.
    (c) All bids shall be evaluated on the basis of the same additive or 
deductive bid items.

[[Page 455]]

The listed order of priority must be followed only for determining the 
low bidder. After determination of the low bidder, award in the best 
interests of the Government may be made to that bidder on its base bid 
and any combination of its additive or deductive bid items for which 
funds are determined to be available at the time of the award, provided 
that award of the combination of bid items does not exceed the amount 
offered by any other conforming responsible bidder for the same 
combination of bid items.

                           (End of provision)



Sec. 1852.236-72  Bids with unit prices.

    As prescribed in 1836.370(b), insert the following provision:

                    Bids With Unit Prices (Mar 1989)

    (a) All extensions of the unit prices bid will be subject to 
verification by the Government. If there is variation between the unit 
price and any extended amounts, the unit price will be considered to be 
the bid.
    (b) If a modification to a bid based on unit prices that provides 
for a lump-sum adjustment to the total estimated cost is submitted, the 
application of the lump sum adjustment to each unit price in the bid 
must be stated. If it is not stated, the lump-sum adjustment shall be 
applied on a pro rata basis to every unit price in the bid.

                           (End of provision)



Sec. 1852.236-73  Hurricane plan.

    As prescribed in 1836.570-1, insert the following clause:

                        Hurricane Plan (Dec 1988)

    In the event of a hurricane warning, the Contractor shall--
    (a) Inspect the area and place all materials possible in a protected 
location;
    (b) Tie down, or identify and store, all outside equipment and 
materials;
    (c) Clear all surrounding areas and roofs of buildings, or tie down 
loose material, equipment, debris, and any other objects that could 
otherwise be blown away or blown against existing buildings; and
    (d) Ensure that temporary erosion controls are adequate.

                             (End of clause)



Sec. 1852.236-74  Magnitude of requirement.

    As prescribed in 1836.570-2, insert the following provision:

                   Magnitude of Requirement (Dec 1988)

    The Government estimated price range of this project is between 
$________ and $________. [Insert the estimated dollar range.]

                           (End of provision)



Sec. 1852.237-70  Emergency evacuation procedures.

    As prescribed at 1837.110-70, insert the following clause:

               Emergency Evacuation Procedures (Dec 1988)

    The contractor shall assure that its personnel at Government 
facilities are familiar with the functions of the Government's emergency 
evacuation procedures. If requested by the Contracting Officer, the 
Contractor shall designate an individual or individuals as contact 
points to provide for efficient and rapid evacuation of the facility if 
and when required.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 54 FR 39376, Sept. 26, 1989]



Sec. 1852.237-71  Pension portability.

    As prescribed at 1837.110(a), insert the following clause:

                           Pension Portability

                               (Nov 1994)

    (a) In order for pension costs attributable to employees assigned to 
this contract to be allowable costs under this contract, the plans 
covering such employees must:
    (i) Comply with all applicable Government laws and regulations;
    (ii) Be a defined contribution plan, or a multiparty defined benefit 
plan operated under a collective bargaining agreement. In either case, 
the plan must be portable, i.e., the plan follows the employee, not the 
employer;
    (iii) Provide for 100 percent employee vesting at the earlier of one 
year of continuous employee service or contract termination; and
    (iv) Not be modified, terminated, or a new plan adopted without the 
prior written approval of the cognizant NASA Contracting Officer.
    (b) The Contractor shall include paragraph (a) of this clause in all 
subcontracts for continuing services under a service contract where (1) 
the prime contract requires pension portability, (2) the subcontracted 
labor dollars (excluding any burdens or profit/fee) exceed $2,500,000 
and ten percent of the total prime contract labor dollars (excluding any

[[Page 456]]

burdens or profit/fee), and (3) the conditions at 1837.170 are 
satisfied.

[59 FR 60917, Nov. 29, 1994]



Sec. 1852.237-72  Identification of Uncompensated Overtime.

    As prescribed in 48 CFR 1827.110(b), insert the following provision:

                Identification of Uncompensated Overtime

                              (April 1995)

    The use of uncompensated overtime is neither encouraged nor 
discouraged. When the proposed uncompensated overtime is consistent with 
an offeror's written policies and practices, NASA will consider it in 
proposal evaluation, including the evaluation of cost and of 
professional compensation (see 48 CFR (FAR) subpart 22.11).
    (a) Definitions. As used in this provision:
    Uncompensated overtime means the hours worked in excess of an 
average of 40 hours per week, by direct charge employees who are exempt 
from the Fair Labor Standards Act (FLSA) without additional 
compensation. Compensated personal absences, such as holidays, 
vacations, and sick leave shall be included in the normal work week for 
purposes of computing uncompensated overtime hours.
    Effective hourly rate is the rate that results from multiplying the 
hourly rate for a 40-hour work week by 40, and then dividing by the 
proposed hours per week. For example, 45 hours proposed on a 40-hour 
work week basis at $20.00 per hour would be converted to an effective 
hourly rate of $17.78 per hour [($20.00 x 40) divided by 45=$17.78.]
    (b) For any hours proposed against which an effective hourly rate is 
applied, the Offeror shall identify in its proposal the hours in excess 
of an average of 40 hours per week, at the same level of detail as 
compensated hours, and the effective hourly rate, whether at the prime 
or subcontract level. This includes uncompensated overtime hours that 
are in indirect cost pools for personnel whose regular hours are 
normally charged direct. The proposal shall include the rationale and 
methodology used to estimate the proposed amount of uncompensated 
overtime.
    (c) The Offeror's accounting practices used to estimate 
uncompensated overtime must be consistent with its cost accounting 
practices used to accumulate and report uncompensated overtime hours.
    (d) Proposals that include unrealistically low labor rates, or that 
do not otherwise demonstrate cost realism, will be considered in a 
technical and cost risk assessment and evaluated for award in accordance 
with that assessment.
    (e) The Offeror shall include with its proposal a copy of its policy 
addressing uncompensated overtime, a description of the timekeeping and 
accounting systems used to record all hours worked by FLSA-exempt 
employees, and the historical basis for the uncompensated overtime hours 
proposed.

                           (End of provision)

[60 FR 16065, Mar. 29, 1995]



Sec. Sec. 1852.239-70  Alternate Delivery Points.

    As prescribed in 1839.7008(a), insert the following clause:

                  Alternate Delivery Points (Nov 1993)

    (a) The first priority of this contract is to satisfy the 
anticipated requirements of ____ (identify contracting activity). 
However, should the actual requirements of ____ (contracting activity) 
be less than the maximum quantities/values specified in section B of 
this contract, ____ (contracting activity) may order the remaining 
available quantities/values to satisfy the requirements of other 
installations. The other installations at which delivery may be required 
are:

(List installations and their locations)

    (b) The prices of the deliverables in section B are F.O.B. 
destination to ____ (contracting activity). If delivery to an alternate 
location is ordered, an equitable adjustment may be negotiated to 
recognize any variances in transportation costs associated with delivery 
to that alternate location.

(End of clause)

                         Alternate I (Nov 1993)

    As prescribed in 1839.7008(b), delete paragraph (b) and substitute 
the following:
    (b) The prices of the deliverables in section B are F.O.B. origin 
with delivery to NASA via Government bill of lading (GBL). If delivery 
to an alternate location is ordered, the same delivery procedures will 
be used and no equitable adjustment to any price, term, or condition of 
this contract will be made as a result of such order.

(End of clause)

[58 FR 59189, Nov. 8, 1993; 58 FR 62556, Nov. 29, 1993]



Sec. 1852.241-70  Renewal of contract.

    As prescribed in 48 CFR 1841.501(b), insert the following clause:

                     Renewal of Contract (Dec 1988)

    This contract is renewable on an annual basis at the option of the 
Government, by the Contracting Officer giving written notice of renewal 
to the Contractor at least __________ days before expiration. If the 
Government exercises this option for renewal, the contract as renewed 
shall be deemed to

[[Page 457]]

include this option provision. However, the total duration of this 
contract, including the exercise of any options under this clause, shall 
not exceed __________ years.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 56 FR 12460, Mar. 26, 1991. 
Redesignated and amended at 60 FR 16063, Mar. 29, 1995]



Sec. 1852.242-70  Technical direction.

    As prescribed in 1842.7001, insert the following clause:

                     Technical Direction (Sept 1993)

    (a) Performance of the work under this contract is subject to the 
written technical direction of the Contracting Officer Technical 
Representative (COTR), who shall be specifically appointed by the 
Contracting Officer in writing in accordance with NASA FAR Supplement 
1842.270. ``Technical direction'' means a directive to the Contractor 
that approves approaches, solutions, designs, or refinements; fills in 
details or otherwise completes the general description of work or 
documentation items; shifts emphasis among work areas or tasks; or 
furnishes similar instruction to the Contractor. Technical direction 
includes requiring studies and pursuit of certain lines of inquiry 
regarding matters within the general tasks and requirements in Section C 
of this contract.
    (b) The COTR does not have the authority to, and shall not, issue 
any instruction purporting to be technical direction that--
    (1) Constitutes an assignment of additional work outside the 
statement of work;
    (2) Constitutes a change as defined in the changes clause;
    (3) Constitutes a basis for any increase or decrease in the total 
estimated contract cost, the fixed fee (if any), or the time required 
for contract performance;
    (4) Changes any of the expressed terms, conditions, or 
specifications of the contract; or
    (5) Interferes with the contractor's rights to perform the terms and 
conditions of the contract.
    (c) All technical direction shall be issued in writing by the COTR.
    (d) The Contractor shall proceed promptly with the performance of 
technical direction duly issued by the COTR in the manner prescribed by 
this clause and within the COTR's authority. If, in the Contractor's 
opinion, any instruction or direction by the COTR falls within any of 
the categories defined in paragraph (b) of this clause, the Contractor 
shall not proceed but shall notify the Contracting Officer in writing 
within 5 working days after receiving it and shall request the 
Contracting Officer to take action as described in this clause. Upon 
receiving this notification, the Contracting Officer shall either issue 
an appropriate contract modification within a reasonable time or advise 
the Contractor in writing within 30 days that the instruction or 
direction is--
    (1) Rescinded in its entirety; or
    (2) Within the requirements of the contract and does not constitute 
a change under the Changes clause of the contract, and that the 
Contractor should proceed promptly with its performance.
    (e) A failure of the Contractor and the Contracting Officer to agree 
that the instruction or direction is both within the requirements of the 
contract and does not constitute a change under the Changes clause, or a 
failure to agree upon the contract action to be taken with respect to 
the instruction or direction, shall be subject to the Disputes clause of 
this contract.
    (f) Any action(s) taken by the contractor in response to any 
direction given by any person other than the Contracting Officer or the 
COTR shall be at the Contractor's risk.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 56 FR 32119, July 15, 1991; 59 
FR 21668, Apr. 26, 1994]



Sec. 1852.242-71  Travel outside of the United States.

    As prescribed in 1842.7002, insert the following clause:

             Travel Outside of the United States (Dec 1988)

    (a) The Contracting Officer must authorize in advance and in writing 
travel to locations outside of the United States by Contractor employees 
that is to be charged as a cost to this contract. This approval may be 
granted when the travel is necessary to the efforts required under the 
contract and it is otherwise in the best interest of NASA.
    (b) The Contractor shall submit requests to the Contracting Officer 
at least 30 days in advance of the start of the travel.
    (c) The Contractor shall submit a travel report at the conclusion of 
the travel. The Contracting Officer's approval of the travel will 
specify the required contents and distribution of the travel report.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 55 FR 27090, June 29, 1990; 56 
FR 12460, Mar. 26, 1991]



Sec. 1852.242-72  Observance of Legal Holidays.

    As prescribed in 1842.7003(a), insert the following clause:

[[Page 458]]

                 Observance of Legal Holidays (Aug 1992)

    (a) The on-site Government personnel observe the following holidays:

    New Year's Day
    Labor Day
    Martin Luther King, Jr.'s Birthday
    Columbus Day
    President's Birthday
    Veterans Day
    Memorial Day
    Thanksgiving Day
    Independence Day
    Christmas Day

    Any other day designated by Federal statute, Executive Order, or the 
President's proclamation.
    (b) When any holiday falls on a Saturday, the preceding Friday is 
observed. When any holiday falls on a Sunday, the following Monday is 
observed. Observance of such days by Government personnel shall not by 
itself be cause for an additional period of performance or entitlement 
of compensation except as set forth within the contract.

                             (End of clause)

                         Alternate I (Sept 1989)

    As prescribed in 1842.7003(b), add the following paragraphs (c) and 
(d) as Alternate I to the clause.
    (c) On-site personnel assigned to this contract shall not be granted 
access to the installation during the holidays in paragraph (a) of the 
clause, except as follows: the Contractor shall provide sufficient on-
site personnel to perform round-the-clock requirements of critical work 
already in process, unless otherwise instructed by the Contracting 
Officer or authorized representative. If the Contractor's on-site 
personnel work during a holiday other than those in paragraph (a) of the 
clause, no form of holiday or other premium compensation shall be 
reimbursed as either a direct or indirect cost. However, this does not 
preclude reimbursement for authorized overtime work that would have been 
overtime regardless of the status of the day as a holiday.
    (d) The Contractor shall place identical requirements, including 
this paragraph, in all subcontracts that require performance of work on-
site, unless otherwise instructed by the Contracting Officer.

                        Alternate II (Sept 1989)

    As prescribed in 1842.7003(c), add the following paragraphs (e) and 
(f):
    (e) When the NASA installation grants administrative leave to its 
Government employees (e.g., as a result of inclement weather, 
potentially hazardous conditions, or other special circumstances), 
Contractor personnel working on-site should also be dismissed. However, 
the contractor shall provide sufficient onsite personnel to perform 
round-the-clock requirements of critical work already in process, unless 
otherwise instructed by the Contracting Officer or authorized 
representative.
    (f) Whenever administrative leave is granted to Contractor personnel 
pursuant to paragraph (e) of this clause, it shall be without loss to 
the Contractor. The cost of salaries and wages to the Contractor for the 
period of any such excused absence shall be a reimbursable item of cost 
under this contract for employees in accordance with the Contractor's 
established accounting policy.

[54 FR 39376, Sept. 26, 1989, as amended at 57 FR 40856, Sept. 8, 1992]



Sec. 1852.242-73  NASA Contractor Financial Management Reporting.

    As prescribed in 1842.7202(a), insert the following clause in 
contracts that require submission of any of the NASA Form 533 series of 
reports.

       NASA Contractor Financial Management Reporting (April 1994)

    (a) The Contractor shall submit NASA Contractor Financial Management 
Reports on NASA Forms 533 in accordance with the instructions in 
Procedures for Contractor Reporting of Correlated Cost and Performance 
Data (NHB 9501.2) and on the reverse side of the forms, as supplemented 
in the Schedule of this contract. The detailed reporting categories to 
be used, which shall be correlated with technical and schedule 
reporting, shall be set forth in the contract Schedule. Contractor 
implementation of reporting requirements under this clause shall include 
NASA approval of the definitions of the content of each reporting 
category and give due regard to the Contractor's established financial 
management information system.
    (b) Lower level detail used by the Contractor for its own management 
purposes to validate information reported to NASA shall be compatible 
with NASA requirements.
    (c) Reports shall be submitted in the number of copies, at the time, 
and in the manner set forth in the contract Schedule or as designated in 
writing by the Contracting Officer. Upon completion and acceptance by 
NASA of all contract Schedule line items, the Contracting Officer may 
direct the Contractor to submit Form 533 reports on a quarterly basis 
only.
    (d) The Contractor shall require first-tier subcontracts that meet 
the established reporting criteria set forth in 1842.7201(b)(1) to 
report cost data using the NASA Form 533 reports. Copies of 
subcontractor Form 533 reports shall be submitted along with the 
Contractor's Form 533 reports in the manner set

[[Page 459]]

forth in the contract Schedule or as designated in writing by the 
Contracting Officer.
    (e) If during the performance of this contract NASA requires a 
change in the information or reporting requirements specified in the 
Schedule, or as provided for in paragraph (a) or (c) of this clause, the 
Contracting Officer shall effect that change in accordance with the 
Changes clause of this contract.

                             (End of clause)

[59 FR 23802, May 9, 1994]



Sec. 1852.242-74  NASA Contractor Financial Management Reporting (Performance Analysis Report).

    As prescribed in 1842.7202(b), insert the following clause, in 
addition to the clause at 1852.242-73, in contracts that require 
submission of NASA Form 533P.

  NASA Contractor Financial Management Reporting (Performance Analysis 
                          Report) (April 1994)

    Monthly reporting of contract performance shall be accomplished on 
the NASA Monthly Contractor Financial Management Performance Analysis 
Report (NASA Form 533P) in accordance with the instructions in 
Procedures for Contractor Reporting of Correlated Cost and Performance 
Data (NHB 9501.2) and on the reverse side of the form, as supplemented 
in the Schedule of this contract.

                             (End of clause)

[59 FR 23802, May 9, 1994]



Sec. 1852.243-70  Engineering change proposals.

    As prescribed in 1843.205-70(a), insert the following clause, 
modified to suit contract type:

                 Engineering Change Proposals (Oct 1995)

    (a) Definitions.
    ECP means an Engineering Change Proposal (ECP) which is a proposed 
engineering change and the documentation by which the change is 
described, justified, and submitted to the procuring activity for 
approval or disapproval.
    MIL-STD-973 means a DoD publication entitled, Military Standard 
Configuration Control--Engineering Changes, Deviations and Waivers, 15 
July 1988.
    (b) Either party to the contract may originate ECPs. The originator 
shall forward proposed ECPs to the Contracting Officer. Unless otherwise 
required by the Contracting Officer, the ECP formats, forms and controls 
specified in MIL-STD-973 shall be used. Implementation of an approved 
ECP may occur by either a supplemental agreement or, if appropriate, as 
a written change order to the contract.
    (c) Any ECP submitted to the Contracting Officer shall include a 
``not-to-exceed'' ______ [price or estimated cost] increase or decrease 
adjustment amount, in any, and the required [time of delivery or period 
of performance] adjustment, if any, acceptable to the originator of the 
ECP. If the change is originated within the Government, the Contracting 
Officer shall obtain a written agreement with the contractor regarding 
the ``not-to-exceed'' ______ [price or estimated cost] and [delivery or 
period of performance] adjustments, if any, prior to issuing an order 
for implementation of the change.
    (d) Concurrent with the submission of an ECP, the contractor shall, 
in accordance with FAR 15.804-6, provide a completed Standard Form 1411, 
Contract Pricing Proposal Cover Sheet (Cost or Pricing Data Required), 
with appropriate attachments. At the time of agreement on the ______ 
[price or estimated cost] amount, the contractor may be required to 
execute and submit to the Contracting Officer a Certificate of Current 
Cost or Pricing Data (FAR 15.804-2 and 15.804-4).

                             (End of clause)

                         Alternate I (Sept 1990)

    As prescribed in 1843.205-70(b), add the following paragraph (e), 
modified to suit contract type, to the basic clause:
    (e) If the ______ [price or estimated cost] adjustment proposed for 
any Contractor-originated ECP is ______ [Insert a percent or dollar 
amount of the contract price or estimated cost.] or less, the ECP shall 
be executed with no adjustment to the contract ______ [price or 
estimated cost].

                        Alternate II (Sept 1990)

    As prescribed in 1843.205-70(c), add the following sentence at the 
end of paragraph (c) of the basic clause:
    An ECP accepted in accordance with the Changes clause of this 
contract shall not be considered an authorization to the Contractor to 
exceed the estimated cost in the contract Schedule, unless the estimated 
cost is increased by the change order or other contract modification.

[55 FR 47480, Nov. 14, 1990, as amended at 56 FR 12460, Mar. 26, 1991; 
58 FR 51142, Sept. 30, 1993; 60 FR 53880, Oct. 18, 1995]



Sec. 1852.244-70  Geographic participation in the aerospace program.

    As prescribed in 1844.170, insert the following clause:

[[Page 460]]

      Geographic Participation in the Aerospace Program (Apr 1985)

    (a) It is the policy of the National Aeronautics and Space 
Administration to advance a broad participation by all geographic 
regions in filling the scientific, technical, research and development, 
and other needs of the aerospace program.
    (b) The Contractor agrees to use its best efforts to solicit 
subcontract sources on the broadest feasible geographic basis consistent 
with efficient contract performance and without impairment of program 
effectiveness or increase in program cost.
    (c) The Contractor further agrees to insert this clause in all 
subcontracts of $100,000 and over.

                             (End of clause)



Sec. 1852.245-70  Acquisition of centrally reportable equipment.

    As prescribed in 1845.106-70(a), insert the following clause:

        Acquisition of Centrally Reportable Equipment (Mar 1989)

    (a) ``Centrally reportable equipment,'' as used in this clause, 
means plant equipment, special test equipment (including components), 
special tooling, and non-flight space property (including ground support 
equipment) (1) generally commercially available and used either as a 
separate item or as a component of a system, (2) having an acquisition 
cost of $1,000 or more (unless a lower threshold is specified elsewhere 
in this contract), and (3) is identifiable by a manufacturer and model 
number.
    (b) (1) Before acquiring (including acquiring by fabricating) any 
item of centrally reportable equipment under this contract (unless for 
incorporation into flight-qualified or flight-monitoring deliverable end 
items), the Contractor shall provide to the Contracting Officer, at the 
earliest possible date, a description of the item sufficiently detailed 
to enable screening of existing Government inventories.
    (2) For this purpose, the Contractor shall (i) prepare a separate DD 
Form 1419, DOD Industrial Plant Equipment Requisition, for each item of 
centrally reportable equipment to be acquired and (ii) forward it 
through the Contracting Officer to the NASA Equipment Management System 
(NEMS) Coordinator at the cognizant NASA installation at least 30 days 
in advance of the date the Contractor intends to acquire or begin 
fabricating the item. If a certificate of non-availability is not 
received within that period, the Contractor may proceed to acquire the 
item, subject to any other applicable provisions of this contract. 
Instructions for preparing the DD Form 1419 are contained in NASA FAR 
Supplement 1845.7103. The same data may be provided in an alternate 
format when requesting other than Defense Industrial Plant Equipment 
Center (DIPEC) controlled items.
    (3) Upon receiving the item described on the DD Form 1419 
(regardless of whether it is Contractor-acquired or Government-
furnished), the Contractor shall prepare and submit a DD Form 1342 or 
equivalent data, in accordance with NASA FAR Supplement 1845.505-670.

                             (End of clause)



Sec. 1852.245-71  Installation-provided government property.

    As prescribed in 1845.106-70(b), insert the following clause:

          Installation-Provided Government Property (Mar 1989)

    (a) In performance of work under this contract, certain Government 
property identified in the contract shall be made available to the 
Contractor on a no-charge-for-use basis by the installation's Supply and 
Equipment Management Officer. That property shall be utilized in the 
performance of this contract at the installation that provided the 
property or at such other installations or locations as may be specified 
elsewhere in this contract. Under this clause, the Government retains 
accountability for as well as title to the property, and the Contractor 
assumes user responsibilities prescribed in the installation property 
management directives listed elsewhere in this contract.
    (b) (1) The official accountable recordkeeping and financial control 
and reporting of the property subject to this clause shall be retained 
by the Government and accomplished by the installation's Supply and 
Equipment Management and Financial Management Officers. However, the 
Government will provide the Contractor a record of all items of such 
property, including copies of all transaction documents used to describe 
changes to this record. The Contractor shall maintain this record and 
transaction documentation in such a condition that, at any stage of 
completion of work under this contract, the status of the property, 
including location, utilization, consumption rate, and identification, 
can be readily ascertained.
    (2) The Contractor shall also adhere to all other procedures (and be 
subject to sanctions related to those procedures) prescribed by the 
installation's director that have been established for the management of 
installation property. The records and documentation shall be made 
available, upon request, to the installation's Supply and Equipment 
Management Officer and any other formally designated representatives of 
the Contracting Officer.

[[Page 461]]

    (c) If the Government fails to provide the Government property 
specified in this contract and that failure adversely affects the 
Contractor's ability to perform the contract, the Contracting Officer 
shall, upon timely written request from the Contractor, (1) make a 
determination of the effect on the Contractor and (2) equitably adjust 
the contract in accordance with the procedure provided in the FAR 52.243 
changes clause of this contract. Equitable adjustments made pursuant to 
this paragraph (c), however, shall not include adjustments in fee, 
unless the property to be provided was described in specific quantities 
of specific items.
    (d) Government property made available under this clause shall in 
every respect be subject to the provisions of the FAR 52.245 Government 
property clause of this contract, except as provided in paragraphs (a), 
(b), and (c) of this clause and as may otherwise be provided in this 
contract with respect to (1) the Contractor's responsibilities for 
repair and maintenance of Government property, or (2) the Contractor's 
liability for any loss of or damage to such property that is 
attributable to the Contractor's failure to maintain and administer a 
program for maintenance and repair in accordance with sound industrial 
practice.

                             (End of clause)

                         Alternate I (Mar 1989)

    As prescribed in 1845.106-70(b)(3), insert the following as 
paragraph (b)(3) of the basic clause:
    (3) The contractor shall not utilize the installation's central 
receiving facility for receipt of Contractor-acquired property. However, 
the Contractor shall provide listings suitable for establishing 
accountable records of all such property received, on a quarterly basis, 
to the Contracting Officer and the Supply and Equipment Management 
Officer.



Sec. 1852.245-72  Liability for government property furnished for repair or other services.

    As prescribed in 1845.106-70(c), insert the following clause:

Liability for Government Property Furnished for Repair or Other Services 
                               (Mar 1989)

    (a) This clause shall govern with respect to any Government property 
furnished to the Contractor for repair or other services that is to be 
returned to the Government. Such property, hereinafter referred to as 
``Government property furnished for servicing,'' shall not be subject to 
any clause of this contract entitled Government-Furnished Property or 
Government Property.
    (b) The official accountable recordkeeping and financial control and 
reporting of the property subject to this clause shall be retained by 
the Government. The Contractor shall maintain adequate records and 
procedures to ensure that the Government property furnished for 
servicing can be readily accounted for and identified at all times while 
in its custody or possession or in the custody or possession of any 
subcontractor.
    (c) The Contractor shall be liable for any loss or destruction of or 
damage to the Government property furnished for servicing: (1) Caused by 
the Contractor's failure to exercise such care and diligence as a 
reasonable prudent owner of similar property would exercise under 
similar circumstances, or (2) sustained while the property is being 
worked upon and directly resulting from that work, including, but not 
limited to, any repairing, adjusting, inspecting, servicing, or 
maintenance operation. The Contractor shall not be liable for loss or 
destruction of or damage to Government property furnished for servicing 
resulting from any other cause except to the extent that the loss, 
destruction, or damage is covered by insurance (including self-insurance 
funds or reserves).
    (d) In addition to any insurance (including self-insurance funds or 
reserves) carried by the Contractor and in effect on the date of this 
contract affording protection in whole or in part against loss or 
destruction of or damage to such Government property furnished for 
servicing, the amount and coverage of which the Contractor agrees to 
maintain, the Contractor further agrees to obtain any additional 
insurance covering such loss, destruction, or damage that the 
Contracting Officer may from time to time require. The requirements for 
this additional insurance shall be effected under the procedures 
established by the FAR 52.243 changes clause of this contract.
    (e) The Contractor shall hold the Government harmless and shall 
indemnify the Government against all claims for injury to persons or 
damage to property of the Con-tractor or others arising from the 
Contractor's possession or use of the Government property furnished for 
servicing or arising from the presence of that property on the 
Contractor's premises or property.

                             (End of clause)



Sec. 1852.245-73  Financial reporting of NASA property in the custody of contractors.

    As prescribed in 1845.106-70(d), insert the following clause:

Financial Reporting of NASA Property in the Custody of Contractors (Sept 
                                  1996)

    (a) The Contractor shall submit annually a NASA Form (NF) 1018, NASA 
Property in the Custody of Contractors, in accordance with 1845.505-14, 
the instructions on the form, and

[[Page 462]]

subpart 1845.71. Subcontractor use of NF 1018 is not required by this 
clause; however, the contractor shall include data on property in the 
possession of subcontractors in the annual NF 1018.
    (b) If administration of this contract has been delegated to the 
Department of Defense, the original of NASA Form 1018 shall be submitted 
to the NASA installation Financial Management Officer and three copies 
shall be sent concurrently through the DOD Property Administrator to the 
NASA office identified below. If the contract is administered to NASA, 
the original of NF 1018 shall be submitted to the installation Financial 
Management Officer, and three copies shall be sent concurrently to the 
following NASA office:

(Insert the address and office code of the organization within the 
cognizant NASA installation.)

    (c) The annual reporting period shall be from October 1 of each year 
through September 30 of the following year. The report shall be 
submitted in time to be received by October 31. The information 
contained in these reports is entered into the NASA accounting system to 
reflect current asset values for agency financial statement purposes. 
Therefore, it is essential that required reports be received no later 
than October 31. The Contracting Officer may, in the Government's 
interest, withhold payment until a reserve not exceeding $25,000 or 5 
percent of the amount of the contract, whichever is less, has been set 
aside, if the Contractor fails to submit annual NF 1018 reports when 
due. Such reserve shall be withheld until the Contracting Officer has 
determined that the required reports have been received by the 
Government. The withholding of any amount or the subsequent payment 
thereof shall not be construed as a waiver of any Government right.
    (d) A final report is required within 30 days after disposition of 
all property subject to reporting when the contract performance period 
is complete.

(End of clause)

[61 FR 47086, Sept. 6, 1996]



Sec. 1852.245-74  Contractor Accountable On-Site Government Property.

    As prescribed in 1845.106-70(e), insert the following clause:

      Contractor Accountable On-Site Government Property (Mar 1989)

    (a) In performance of work under this contract, certain Government 
property identified in the contract shall be provided to the Contractor 
on a no-charge-for-use basis by the installation's Supply and Equipment 
Management Officer. That property shall be utilized in the performance 
of this contract at the installation that provided the property or at 
such other installations or locations as may be specified elsewhere in 
this contract. The Contractor assumes accountability and user 
responsibilities for the property.
    (b) Government property provided shall in every respect be subject 
to the provisions of the FAR 52.245 Government property clause of this 
contract. In addition, the contractor is responsible for managing this 
property in accordance with the guidelines provided by the 
installation's Supply and Equipment Management Officer or any other 
formally designated representatives of the Contracting Officer. The 
guidelines include but are not limited to requiring the Contractor to--
    (1) Use economic order quantity (EOQ) methods for routine stock 
replenishment;
    (2) Utilize the Federal Cataloging System;
    (3) Comply with shelf-life requirements;
    (4) Provide for accountability and control (using the NASA Equipment 
Management System (NEMS)) of all equipment costing $1000 and over, plus 
that equipment designated as ``sensitive'';
    (5) Provide for physical inventory of all controlled equipment at 
least every 3 years;
    (6) Provide for sample inventories of materials plus complete 
inventories every 5 years;
    (7) Conduct walk-through utilization inspections;
    (8) Screen NEMS before acquiring any equipment costing $1000 or 
over, plus equipment designated by the installation as sensitive and 
costing $500 and over;
    (9) Support the Equipment Acquisition Document (EAD) process; and
    (10) Use Government sources as the first source of supply.
    (c) Data requirements relating to the guidelines in paragraph (b) of 
this clause are specified under section F, Deliveries or performance.

                             (End of clause)



Sec. 1852.245-75  Title to equipment.

    As prescribed in 1845.106-70(f), insert the following clause:

                      Title to Equipment (Mar 1989)

    (a) In accordance with the FAR 52.245 Government property clause of 
this contract, title to equipment and other tangible personal property 
acquired by the Contractor with funds provided for conducting research 
under this contract and having an acquisition cost less than $________ 
[Insert a dollar value not less than $5,000] shall vest in the 
Contractor upon acquisition, provided that the Contractor has complied 
with the requirements of the FAR 52.245 Government property clause.
    (b) Upon completion or termination of this contract, the Contractor 
shall submit to the

[[Page 463]]

Contracting Officer a list of all equipment with an acquisition cost of 
$________ [Insert the dollar value specified in paragraph (a)] or more 
acquired under the contract during the contract period. The list shall 
include a description, manufacturer and model number, date acquired, 
cost, and condition information, and shall be submitted within 30 
calendar days after completion or termination of the contract, in 
accordance with Federal Acquisition Regulation subsection 45.606-5.
    (c) Title to the property specified in paragraph (b) of this clause 
vests in the Contractor, but the Government retains the right to direct 
transfer of title to property specified in paragraph (b) of this clause 
to the Government or to a third party within 180 calendar days after 
completion or termination of the contract. Such transfer shall not be 
the basis for any claim by the Contractor.
    (d) Title to all Government-furnished property remains vested with 
the Government (see the FAR 52.245 Government property clause).
    (e) Title to the contractor-acquired property listed below shall 
vest with the Government.
    [List any contractor-acquired property for which vesting of title 
with the Government is appropriate or insert ``None''].

                             (End of clause)



Sec. 1852.245-76  List of Government-furnished property.

    As prescribed in 1845.106-70(g), insert the following clause:

            List of Government-furnished Property (Oct 1988)

    For performance of work under this contract, the Government will 
make available Government property identified below or in Attachment 
________ [Insert attachment number or ``not applicable''] of this 
contract on a no-charge-for-use basis. The Contractor shall use this 
property in the performance of this contract at ________[Insert 
applicable site(s) where property will be used] and at other location(s) 
as may be approved by the Contracting Officer. Under the FAR 52.245 
Government property clause of this contract, the Contractor is 
accountable for the identified property.

------------------------------------------------------------------------
                                                              Date to be
                                                Acquisition   furnished 
               Item                  Quantity       cost        to the  
                                                              contractor
------------------------------------------------------------------------
                                    ..........  ...........  ...........
                                    ..........  ...........  ...........
                                    ..........  ...........  ...........
------------------------------------------------------------------------

    [Insert a description of the item(s), quantity, acquisition cost, 
and date the property will be furnished to the Contractor]

                             (End of clause)



Sec. 1852.245-77  List of installation-provided property and services.

    As prescribed in 1845.106-70(h), insert the following clause:

     List of Installation-Provided Property and Services (Mar 1989)

    In accordance with the Installation-provided Government Property 
clause of this contract, the Contractor is authorized use of the types 
of property and services listed below, to the extent they are available, 
while on-site at the NASA installation.
    (a) Office space, work area space, and utilities. The Contractor 
shall use Government telephones for official purposes only. Pay 
telephone stations are available for the convenience and use of 
employees in making unofficial calls, both local and long distance.
    (b) General- and special-purpose equipment, including office 
furniture.
    (1) Equipment to be made available to the Contractor for use in 
performance of this contract on-site and at such other locations as 
approved by the Contracting Officer is listed in Attachment 
____________[Insert attachment number or ``not applicable'' if no 
equipment is provided]. The Government retains accountability for this 
property under the Installation-Provided Government Property clause, 
regardless of its authorized location.
    (2) If the Contractor acquires property as a direct cost under this 
contract, this property also shall become accountable to the Government 
upon its entry into the NASA Equipment Management System (NEMS) in 
accordance with the property reporting requirements of this contract.
    (3) The Contractor shall not bring on-site for use under this 
contract any property owned or leased by the Contractor, or other 
property that the Contractor is accountable for under any other 
Government contract, without the Contracting Officer's prior written 
approval.
    (c) Supplies from stores stock.
    (d) Publications and blank forms stocked by the installation.
    (e) Safety and fire protection for Contractor personnel and 
facilities.
    (f) Installation service facilities: ________________

            [Insert the name of the facilities or ``None''].

    (g) Medical treatment of a first-aid nature for Contractor personnel 
injuries or illnesses sustained during on-site duty.
    (h) Cafeteria privileges for Contractor employees during normal 
operating hours.
    (i) Building maintenance for facilities occupied by Contractor 
personnel.
    (j) Moving and hauling for office moves, movement of large 
equipment, and delivery

[[Page 464]]

of supplies. Moving services shall be provided on-site, as approved by 
the Contracting Officer.
    (k) The responsibilities of the Contractor as contemplated by 
paragraph (a) of the Installation-Provided Government Property clause 
are defined in the following property management directives and 
installation supplements to these Directives:
    (1) NHB 4200.1, NASA Equipment Management Manual.
    (2) NHB 4200.2, NASA Equipment Management System (NEMS) User's Guide 
for Property Custodians.
    (3) NHB 4300.1, NASA Personal Property Disposal Manual.
    (4) NHB 4100.1, NASA Materials Inventory Management Manual.

                             (End of clause)



Sec. 1852.245-79  Use of Government-owned property.

    As prescribed in 1845.106-70(j), insert the following provision:

               Use of Government-Owned Property (Mar 1989)

    (a) The offeror (  ) does, (  ) does not intend to use in 
performance of any contract awarded as a result of this solicitation 
existing Government-owned facilities (real property or plant equipment), 
special test equipment, or special tooling (including any property 
offered by this solicitation). The offeror shall identify any offered 
property not intended to be used. If the offeror does intend to use any 
of the above items, the offeror must furnish the following information 
required by Federal Acquisition Regulation (FAR) 45.205(b), NASA FAR 
Supplement (NFS) 1845.102-70, and NFS 1845.104(b):
    (1) Identification and quantity of each item. Include the item's 
acquisition cost if it is not property offered by this solicitation.
    (2) For property not offered by this solicitation, identification of 
the Government contract under which the property is accountable and 
written permission for its use from the cognizant Contracting Officer.
    (3) Amount of rent, calculated in accordance with FAR 45.403 and the 
clause at FAR 52.245-9, Use and Charges, unless the property has been 
offered on a rent-free basis by this solicitation.
    (4) The dates during which the property will be available for use, 
and if it is to be used in more than one contract, the amounts of 
respective uses in sufficient detail to support proration of the rent. 
This information is not required for property offered by this 
solicitation.
    (b) The offeror (  ) does, (  ) does not request additional 
Government-provided property for use in performing any contract awarded 
as a result of this solicitation. If the offeror requests additional 
Government-provided property, the offeror must furnish--
    (1) Identification of the property, quantity, and estimated 
acquisition cost of each item; and
    (2) The offeror's written statement as prescribed by FAR 45.302-
1(a)(4).
    (c) If the offeror intends to use any Government property (paragraph 
(a) or (b) of this clause), the offer must also furnish the following:
    (1) The date of the last Government review of the offeror's property 
control and accounting system, actions taken to correct any deficiencies 
found, and the name and telephone number of the cognizant property 
administrator.
    (2) A statement that the offeror has reviewed, understands, and can 
comply with all property management and accounting procedures in the 
solicitation, FAR subpart 45.5, and NFS subparts 1845.5, 1845.70, and 
1845.71.
    (3) A statement indicating whether or not the costs associated with 
subparagraph (c)(2) of this clause, including plant clearance and/or 
plant reconversion costs, are included in its cost proposal.

                           (End of provision)



Sec. 1852.245-80  Use of Government production and research property on a no-charge basis.

    As prescribed in 1845.106-70(k), insert the following clause:

Use of Government Production and Research Property on a No-Charge Basis 
                               (Mar 1989)

    In performing this contract, the Contractor is authorized to use on 
a no-charge, noninterference basis the Government-owned production and 
research property provided to the Contractor under the contract(s) 
specified below and identified in the cognizant Contracting Officer's 
letter approving use of the property. Use is authorized on the basis 
that it will not interfere with performance of the Government 
contract(s) under which the property was originally furnished. Use shall 
be in accordance with the terms and conditions of these contracts and 
the cognizant Contracting Officer's approval letter.
    Contract No(s): [Insert the contract number(s) under which the 
Government property is accountable].

                             (End of clause)



Sec. 1852.246-70  Mission Critical Space Systems Personnel Reliability Program.

    As prescribed in 1846.270(a), insert the following clause:

[[Page 465]]

     Critical Space Systems Personnel Reliability Program (Mar 1991)

    (a) In implementation of the Mission Critical Space Systems 
Personnel Reliability Program, described in NASA Management Instruction 
(NMI) 8610.13, the Government shall identify personnel positions that 
are mission critical. Some of the positions as identified may now or in 
the future be held by employees of the Contractor. Upon notification by 
the Contracting Officer that a mission-critical position is being or 
will be filled by one or more of the Contractor's employees, the 
Contractor shall (1) provide the affected employees with a clear 
understanding of the investigative and medical requirements and, (2), to 
the extent permitted by applicable law, assist the Government by 
furnishing personal data and medical records.
    (b) The standard that will be used in certifying individuals for a 
mission-critical position is that they must be determined to be 
suitable, competent, and reliable in the performance of their assigned 
duties in accordance with the screening requirements of the NMI. If the 
Government determines that a Contractor employee occupying or nominated 
to occupy a mission-critical position will not be certified for such 
duty, the Contracting Officer shall (1) furnish to the employee the 
specific reasons for its action; (2) advise the employee that he/she may 
avail himself/herself of the review procedures that are a part of the 
certification system; and (3) furnish him/her a copy of those procedures 
upon request.
    (c) If a Contractor employee who has been nominated for (but has not 
yet filled) a mission-critical position is not certified, the Contractor 
agrees to defer the appointment to the position until the employee has 
had an opportunity to pursue the referenced procedures. If the employee 
is an incumbent to the position, the Contractor agrees, upon the request 
of the Government, to remove him/her from the position temporarily 
pending an appeal of the action under the review procedures. If any 
employee not certified elects not to take action under the procedures, 
or, if having taken action, is not successful in obtaining a reversal of 
the determination, the Contractor agrees not to appoint the employee to 
the position, or if already appointed, to promptly remove the employee.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 56 FR 12460, Mar. 26, 1991]



Sec. 1852.246-71  Government contract quality assurance functions.

    As prescribed in 1846.470-2(a), insert the following clause:

       Government Contract Quality Assurance Functions (Oct 1988)

    In accordance with the inspection clause of this contract, the 
Government intends to perform the following functions at the locations 
indicated:

                                                                        
                                   Quality Assurance                    
              Item                     Function            Location     
                                                                        
                                                                        
                                                                        

[Insert the items involving quality assurance, the quality assurance 
functions, and where the functions will be performed]

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 55 FR 27090, June 19, 1990]



Sec. 1852.246-72  Material inspection and receiving report.

    As prescribed in 1846.674, insert the following clause:

          Material Inspection and Receiving Report (June 1995)

    (a) At the time of each delivery to the Government under this 
contract, the Contractor shall furnish a Material Inspection and 
Receiving Report (DD Form 250 series) prepared in ____ [Insert number of 
copies, including original] copies, an original and ____ copies [Insert 
number of copies].
    (b) The Contractor shall prepare the DD Form 250 in accordance with 
NASA FAR Supplement 1846.672-1. The Contractor shall enclose the copies 
of the DD Form 250 in the package or seal them in a waterproof envelope, 
which shall be securely attached to the exterior of the package in the 
most protected location.
    (c) When more than one package is involved in a shipment, the 
Contractor shall list on the DD Form 250, as additional information, the 
quantity of packages and the package numbers. The Contractor shall 
forward the DD Form 250 with the lowest numbered package of the shipment 
and print the words ``CONTAINS DD FORM 250'' on the package.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 60 FR 40521, Aug. 9, 1995]



Sec. 1852.246-73  Manned space flight item.

    As prescribed in 1846.270(b), insert the following clause:

[[Page 466]]

                   Manned Space Flight Item (Oct 1988)

    The Contractor shall include the following statement in all 
subcontracts and purchase orders placed by it in support of this 
contract, without exception as to amount or subcontractual level:
    For use in manned space flight; materials, manufacturing, and 
workmanship of highest quality standards are essential to astronaut 
safety.
    If you are able to supply the desired item with a higher quality 
than that of the items specified or proposed, you are requested to bring 
this fact to the immediate attention of the purchaser.

                             (End of clause)



Sec. 1852.246-74  Requirement for Quality and Productivity Improvement Plan.

    As prescribed in 1846.470-1, insert the following provision:

  Requirement for Quality and Productivity Improvement Plan (Jun 1990)

    The offeror shall submit with its proposal a Quality and 
Productivity Improvement (Q/PI) plan. The plan should address only 
effort directly related to this solicitation. It should include areas of 
focus for improvement; Q/PI goals, schedules and assessment techniques; 
discuss how the offeror will create an environment within its 
organization conducive to continuous quality improvement; and discuss 
the offeror's active or proposed involvement, if any, in the Q/PI 
programs of subcontractors. The offeror shall identify all costs 
associated with the major elements of the proposed plan. The offeror may 
propose incentives to reward quality and productivity improvements made 
under the contract. If proposed as incentives that are distinct from 
other contract fees or prices, the offeror must be able to demonstrate 
to the contracting officer's satisfaction that the contractor's 
performance under the Q/PI plan can be discretely measured and its value 
is commensurate with the proposed cost or incentive. At the sole 
discretion of the contracting officer any consideration for the proposed 
Q/PI plan may be included in the total fee or price of the contract. If 
the contract will otherwise contain award fee provisions, the offeror 
shall include in its proposal appropriate award fee criteria designed to 
encourage and reward the offeror's Q/PI effort. The contractor shall 
comply with the approved plan during performance of the contract.

                           (End of provision)

[55 FR 27090, June 29, 1990]



Sec. 1852.246-75  Quality and Productivity Improvement Plan.

    As prescribed in 1846.470-2(b), insert the following clause:

          Quality and Productivity Improvement Plan (Jun 1990)

    During contract performance, the contractor shall comply with the 
Quality and Productivity Improvement Plan submitted pursuant to 
provision 1852.246-74, Requirement for Quality and Productivity 
Improvement Plan, as approved by the Contracting Officer.

                             (End of clause)

[55 FR 27090, June 29, 1990]



Sec. 1852.247-70  Returnable containers.

    As prescribed in 1847.305-70(a), insert the following clause:

                    Returnable Containers (Mar 1989)

    (a) Containers shall remain the Contractor's property but shall be 
loaned without charge to the Government for a period of 30 days after 
their delivery to the f.o.b. point specified in the contract. Beginning 
with the first day after this loan period expires, to and including the 
day the containers are delivered to the Contractor (if the original 
delivery was f.o.b. origin) or are delivered or made available for 
delivery to the Contractor's designated carrier (if the original 
delivery was f.o.b. destination), the Government shall pay the 
Contractor a rental of $________ [Insert dollar amount for container 
rental.] per container per day, regardless of type or capacity.
    (b) This rental charge will be computed separately for containers of 
each type, size, and capacity, and for each delivery point named in the 
contract. A credit of 30 container days will accrue to the Government 
for each container, regardless of type or capacity, delivered by the 
Contractor. A debit of 1 container day will accrue to the Government for 
each container for each day after delivery to the f.o.b. point specified 
in the contract. At the end of the contract, if the debit total exceeds 
the credit total, rental shall be charged for the difference. If the 
credit total equals or exceeds the debit total, no rental shall be 
charged. No rental shall accrue to the Contractor in excess of the 
replacement value per container specified in paragraph (c) of this 
clause.
    (c) For each container lost or damaged beyond repair while in the 
Government's possession, the Government shall pay the Contractor the 
replacement value as follows, less the allocable rental paid for that 
container:
    [Insert the container types, sizes, capacities, and associated 
replacement values.]

[[Page 467]]

    (d) Containers lost or damaged beyond repair and paid for by the 
Government shall become Government property, subject to the following: 
If any lost container is located within ________ [Insert number of 
calendar days.] calendar days after payment by the Government, it may be 
returned to the Contractor by the Government, and the Contractor shall 
pay the Government the replacement value, less rental computed in 
accordance with paragraph (a) of this clause, beginning at the 
expiration of the loan period specified in paragraph (a) of this clause, 
and continuing to the date on which the cylinder was delivered to the 
Contractor.

                             (End of clause)

[54 FR 28340, July 5, 1989, as amended at 54 FR 39376, Sept. 26, 1989]



Sec. 1852.247-71  Protection of the Florida Manatee.

    As prescribed in 1847.7001, insert the following clause:

              Protection of the Florida Manatee (Mar 1989)

    (a) Pursuant to the Endangered Species Act of 1973 (Pub. L. 93-205), 
as amended, and the Marine Mammals Protection Act of 1972 (Pub. L. 92-
522), the Florida Manatee (Trichechus Manatus) has been designated an 
endangered species, and the Banana and Indian Rivers within and adjacent 
to NASA's Kennedy Space Center (KSC) have been designated as a critical 
habitat of the Florida Manatee.
    (b) Contractor personnel involved in vessel operations, dockside 
work, and selected disassembly functions shall be provided training 
relative to (1) habits and characteristics of the Florida Manatee, (2) 
provisions of the applicable laws, (3) personal liability of workers 
under the laws, and (4) operational restrictions imposed by KSC.
    (c) All vessel operations shall be conducted within the posted speed 
restrictions, and vessels shall be operated at minimum controllable 
speeds in all KSC waters. Shallow-water operations are prohibited.
    (d) Training will be conducted by personnel of the U.S. Fish and 
Wildlife Service (USFWS). The contractor agrees to cooperate with the 
USFWS by allowing access at reasonable times and places (including 
shipboard) to USFWS personnel, and by making available such contractor 
personnel as are required to have the training. Arrangements for 
training will be made as follows:
    (1) For personnel involved in tug, barge, or marine operations, 
through the Lockheed Space Operations Contractor, Transportation 
Coordination Center, Kennedy Space Center, Florida, telephone (407) 867-
5330.
    (2) For all other personnel, through the Systems Training and 
Employee Development Branch, Code PM-TNG, telephone (407) 867-2737.
    (e) The contractor shall incorporate the provisions of this clause 
in applicable subcontracts (including vendor deliveries).

                             (End of clause)



Sec. 1852.247-72  Advance Notice of Shipment.

    As prescribed in 1847.305-70(b), insert the following clause:

                  Advance Notice of Shipment (Oct 1988)

    ______[Insert number of work days] work days prior to shipping 
item(s)______[Insert items to be shipped], the Contractor shall furnish 
the anticipated shipment date, bill of lading number (if applicable), 
and carrier identity to ________[Insert individual(s) to receive 
notification] and to the Contracting Officer.

                             (End of clause)



Sec. 1852.247-73  Shipment by Government bills of lading.

    As prescribed in 1847.305-70(c), insert the following clause:

            Shipment by Government Bills of Lading (Mar 1989)

    (a) The Contractor shall ship items deliverable under this contract, 
if the transportation cost per shipment exceeds $100, by Government 
bills of lading (GBLs). At least 15 days before shipment, the Contractor 
shall request in writing GBLs from:________[Insert name, title, and 
mailing address of designated transportation officer or other official 
delegated responsibility for GBLs]. If time is limited, requests may be 
by telephone:________[Insert appropriate telephone number]. Requests for 
GBLs shall include the following information.
    (1) Item identification/description.
    (2) Origin and destination.
    (3) Individual and total weights.
    (4) Dimensions and total cubic footage.
    (5) Total number of pieces.
    (6) Total dollar value.
    (7) Other pertinent data.
    (b) The Contractor shall prepay transportation charges of $100 or 
less per shipment. The Government shall reimburse the contractor for 
these charges if they are added to the invoice as a separate line item 
supported by the paid freight receipts. If paid receipts in support of 
the invoice are not obtainable, a certificate as described below must be 
completed, signed by an authorized company representative, and attached 
to the invoice.
    I certify that the shipments identified below have been made, 
transportation

[[Page 468]]

charges have been paid by (company name), and paid freight or comparable 
receipts are not obtainable.

Contract or Order Number:_______________________________________________
Destination:____________________________________________________________

                             (End of clause)



Sec. 1852.249-72  Termination (utilities).

    As prescribed in 1849.505-70, insert the following clause. The 
period of 30 days may be varied not to exceed 90 days.

                   Termination (Utilities) (Mar 1989)

    The Government, at its option, may terminate this contract by giving 
written notice not less than 30 days in advance of the termination's 
effective date.

                             (End of clause)



               Subpart 1852.3--Provision and Clause Matrix



Sec. 1852.300  Scope of subpart.

    The matrix in this subpart contains a column for each principal type 
and/or purpose of contract. See the first page of the matrix for the key 
to column headings, the dollar threshold chart, and requirement symbols.

[57 FR 40856, Sept. 8, 1992]



Sec. 1852.301  Solicitation provisions and contract clauses (Matrix).



PART 1853--FORMS--Table of Contents




                         Subpart 1853.1--General

Sec.
1853.100  Scope of subpart.
1853.101  Requirements for use of forms.
1853.102  Current editions.
1853.103  Exceptions.
1853.104  Overprinting.
1853.105  Computer generation.
1853.106  Special construction and printing.
1853.107  Obtaining forms.
1853.108  Recommendations concerning forms.

                  Subpart 1853.2--Prescription of Forms

1853.200  Scope of subpart.
1853.204  Administrative matters.
1853.204-70  General (NASA Forms 507, 507A, 507B, 507G, 507M, 531, 533M, 
          533P, 533Q, 667, 1098, 1356, 1611, 1612, DD Form 1593, FBI 
          Form FD-258, and SF 85P).
1853.207  Acquisition planning (NASA Forms 1451, 1452).
1853.208  Required sources of supplies and services.
1853.208-70  Other Government sources (SF 1080, AF 858, DOE F 5400.3, 
          NRC 313).
1853.215  Contracting by negotiation.
1853.215-2  Price negotiation (NASA Form 634 and DD Form 1861).
1853.216  Types of contracts.
1853.216-70  Assignees under cost-reimbursement contracts (NASA Forms 
          778, 779, 780, 781).
1853.217  Special contracting methods (NASA Form 523).
1853.232  Contract financing (Standard Forms 272, 272A).
1853.242  Contract administration.
1853.242-70  Delegation (NASA Forms 1430, 1430A, 1431, 1432, 1433) and 
          service request (NASA Form 1434).
1853.242-71  Notifications (NASA Form 456).
1853.245  Property (NASA Form 1018, DD 1342, DD 1419).
1853.246  Quality assurance (DD 250, DD 250c).
1853.249  Termination of contracts (NASA Forms 1412, 1413).

    Authority: 42 U.S.C. 2473 (c)(1).

    Source: 54 FR 28371, July 5, 1989, unless otherwise noted.



                         Subpart 1853.1--General



Sec. 1853.100  Scope of subpart.

    This subpart contains requirements and information generally 
applicable to the forms prescribed in this regulation.



Sec. 1853.101  Requirements for use of forms.

    The requirements for use of the forms in this part are contained in 
parts 1801 through 1851 of this chapter, where the subject matter 
applicable to each form is addressed. The specific location of each 
form's prescription is identified in subpart 1853.2.

[54 FR 28371, July 5, 1989, as amended at 60 FR 40521, Aug. 9, 1995]



Sec. 1853.102  Current editions.

    The form prescriptions in subpart 1853.2 and the illustrations in 
subpart 1853.3 contain current editions, unless otherwise noted. 
Contracting officers shall use the current editions unless otherwise 
authorized under this regulation.

[[Page 469]]



Sec. 1853.103  Exceptions.

    Alteration of any form prescribed by the regulations in this chapter 
is prohibited unless prior approval has been obtained from the NASA 
Forms Officer (Code JTD) (through the Installation Forms Manager), who 
will coordinate the request with the Office of Procurement, Code H. Use 
for the same purpose of any form other than one prescribed by this 
regulation requires prior approval of the cognizant Code H Division. 
Requests for exceptions to standard or optional forms, as prescribed in 
FAR 53.103, shall be forwarded through the Installation Forms Manager 
and the NASA Forms Officer to the Contract Management Division, Code HK, 
which will take the appropriate actions in FAR 53.103.

[54 FR 28371, July 5, 1989, as amended at 57 FR 40856, Sept. 8, 1992; 59 
FR 66270, Dec. 23, 1994; 60 FR 40521, Aug. 9, 1995]



Sec. 1853.104  Overprinting.

    Forms may be overprinted with names, addresses, and other uniform 
entries that are consistent with the purpose of the form and that do not 
alter the form in any other way. Exception approval for overprinting is 
not needed.

[54 FR 28371, July 5, 1989, as amended at 60 FR 40521, Aug. 9, 1995]



Sec. 1853.105  Computer generation.

    Forms prescribed by the regulations in this chapter may be adapted 
for computer preparation providing there is no change to the name, 
content, or sequence of the data elements, and the form carries the form 
number and edition date.

[60 FR 40521, Aug. 9, 1995]



Sec. 1853.106  Special construction and printing.

    Contracting offices may request exceptions to NASA and NASA-adopted 
and standard and optional forms for special construction and printing by 
following the procedures of 1853.103.



Sec. 1853.107  Obtaining forms.

    (a) NASA installations and offices may obtain forms prescribed in 
the FAR or in this Regulation from Goddard Space Flight Center, Code 
239. Orders should be placed on a NASA Form 2, Request for Blank Forms, 
Publications and Issuances, in accordance with NHB 1420.2, and the forms 
obtained from GSFC as required by installation or office.
    (b) Contracting officers, at the time of contract award, shall 
ensure that contractors are notified of or are otherwise aware of:
    (1) The procedures for obtaining NASA forms; and
    (2) The source within the installation of forms required for 
performance under the contract.

[54 FR 28371, July 5, 1989, as amended at 55 FR 47480, Nov. 14, 1990]



Sec. 1853.108  Recommendations concerning forms.

    Coordination with the FAR Secretariat, as specified in FAR 53.108, 
is the responsibility of the Contract Management Division, Code HK.

[54 FR 28371, July 5, 1989, as amended at 59 FR 66270, Dec. 23, 1994; 60 
FR 40521, Aug. 9, 1995]



                  Subpart 1853.2--Prescription of Forms



Sec. 1853.200  Scope of subpart.

    This subpart summarizes the prescriptions of NASA forms and other 
forms adopted by NASA for use in acquisition. The subpart is arranged by 
subject matter, in the same order as, and keyed to, the parts of this 
regulation in which the form usage requirements are addressed. (See FAR 
53.200 for an example.)



Sec. 1853.204  Administrative matters.



Sec. 1853.204-70  General (NASA Forms 507, 507A, 507B, 507G, 507M, 531, 533M, 533P, 533Q, 667, 1098, 1356, 1611, 1612; DD Form 1593; FBI Form FD-258; and SF 
          85P).

    (a) The following forms shall be used as prescribed at 1804.671-4:
    (1) NASA Form 507, Individual Procurement Action Report (New 
Awards).
    (2) NASA Form 507A, Individual Procurement Action Report (New 
Awards) Supplement A.
    (3) NASA Form 507B, Individual Procurement Action Report Supplement 
B.

[[Page 470]]

    (4) NASA Form 507G, Individual Procurement Action Report (Grants/
Orders).
    (5) NASA Form 507M, Individual Procurement Action Report 
(Modifications).
    (b) NASA Form 531, Name Check Request. NASA Form 531, prescribed in 
1804.470 and 1852.204-76, shall be used for National Agency Check (NAC) 
investigations.
    (c) The following forms shall be used as prescribed at 1804.675:
    (1) NASA Form 533M, Monthly Contractor Financial Management Report.
    (2) NASA Form 533P, Monthly Contractor Financial Management 
Performance Analysis Report.
    (3) NASA Form 533Q, Quarterly Contractor Financial Management 
Report.
    (d) NASA Form 667, Report on NASA Subcontracts. NASA Form 667, 
prescribed at 1804.672, shall be used by contractors to submit 
information to NASA on each subcontract or subcontract modification over 
$25,000.
    (e) NASA Form 1098, Checklist for Contract Award File Content. NASA 
Form 1098, prescribed at 1804.803-71, shall be used as a guide in 
compiling contract files and shall accompany contracts and supplemental 
agreements submitted to Headquarters for approval. In Item 19 (Jul 90 
edition), line out the entry ``D&F: Other Than Full and Open Competition 
in the Public Interest (FAR/NFS 6.302-7),'' and write in ``JOFOC (FAR/
NFS 6.3).''
    (f) NASA Form 1356, C.A.S.E. Report on College and University 
Projects. NASA Form 1356, prescribed at 1804.7202, shall be used to 
report information applicable to colleges and universities.
    (g) NASA Form 1611, Contract Completion Statement. As prescribed at 
1804.804-2 and 1804.804-5, NASA Form 1611 shall be used for closeout of 
all contracts above the small purchase threshold.
    (h) The following forms shall be used as prescribed at 1804.804-5:
    (1) NASA Form 1612, Contract Closeout Checklist.
    (2) DOD Form 1593, Contract Administration Completion Record.

[60 FR 40521, Aug. 9, 1995]



Sec. 1853.207  Acquisition planning (NASA Forms 1451, 1452).

    (a) NASA Form 1451, Request for Procurement Plan Approval. NASA Form 
1451, prescribed at 1807.170-1(b), shall be used in preparing 
procurement plans requiring approval by Headquarters.
    (b) NASA Form 1452, Signature Page (Installation). NASA Form 1452, 
prescribed at 1807.170-1(b), shall be used in obtaining installation-
level signatures required by 1807.103.

[54 FR 28371, July 5, 1989, as amended at 56 FR 8721, Mar. 1, 1991; 56 
FR 48748, Sept. 26, 1991]
1853.208  Required sources of supplies and services.



Sec. 1853.208-70  Other Government sources (Standard Form 1080, Air Force Form 858, Department of Energy Form 5400.3, Nuclear Regulatory Commission Form 313).

    (a) Standard Form 1080, Voucher for Transfers Between Appropriations 
and/or Funds (Disbursement). Standard Form 1080, prescribed at 1808.002-
74(e), shall be used to reimburse the Air Force for shipments of 
propellants.
    (b) Air Force Form 858, Forecast of Requirements (Missile 
Propellants and Pressurants). AF 858, prescribed at 1808.002-74(f), 
shall be used to report periodic estimated requirements for missile 
propellants and related items to the Department of the Air Force.
    (c) Department of Energy Form 5400.3, Isotope Order Blank. DOE Form 
5400.3, prescribed at 1808.002-72(a), shall be used for the procurement 
of radioisotopes.
    (d) Nuclear Regulatory Commission Form 313, Application for Material 
License. NRC Form 313, prescribed at 1808.002-72(a), shall be used to 
apply for a NRC license for the procurement of radioisotopes.
1853.215  Contracting by negotiation.



Sec. 1853.215-2  Price negotiation (NASA Form 634 and DD Form 1861).

    (a) NASA Form 634, Structured Approach--Profit/Fee Objective. NASA 
Form 634, prescribed at 1815.970(a), shall be used for determining the 
profit or fee objective by the structured approach.

[[Page 471]]

    (b) DD Form 1861, Contract Facilities Capital Cost of Money. DD Form 
1861, prescribed at 1815.970-3(b), shall be used to calculate facilities 
capital cost of money.

[57 FR 844, Jan. 9, 1992]
1853.216  Types of contracts.



Sec. 1853.216-70  Assignees under cost-reimbursement contracts (NASA Forms 778, 779, 780, 781).

    The following forms shall be used as prescribed at 1816.370:
    (a) NASA Form 778, Contractor's Release.
    (b) NASA Form 779, Assignee's Release.
    (c) NASA Form 780, Contractor's Assignment of Refunds, Rebates, 
Credits, and Other Amounts.
    (d) NASA Form 781, Assignee's Assignment of Refunds, Rebates, 
Credits, and Other Amounts.

[60 FR 40521, Aug. 9, 1995]



Sec. 1853.217   Special contracting methods (NASA Form 523).

    NASA Form 523, NASA-Defense Purchase Request. NASA Form 523, 
prescribed at 1817.70, shall be used for requesting procurement of 
supplies or services from all activities of the Military Departments.



Sec. 1853.232   Contract financing (Standard Form 272, 272A).

    (a) Standard Form 272, Federal Cash Transactions Report, prescribed 
at 1832.406-70, will be submitted by nonprofit organizations that 
receive advance funding.
    (b) Standard Form 272-A, Federal Cash Transactions Report 
Continuation, prescribed at 1832.406-70, is used in conjunction with 
Standard Form 272 when reporting more than one contract.
1853.242  Contract administration.



Sec. 1853.242-70  Delegation (NASA Forms 1430, 1430A, 1431, 1432, 1433) and service request (NASA Form 1434).

    (a) NASA Form 1430, Letter of Contract Administration Delegation, 
General. NASA Form 1430, prescribed at 1842.202-70(a)(4), shall be used 
to delegate and redelegate contract administration functions and to 
amend existing contract administration delegations.
    (b) NASA Form 1430A, Letter of Contract Administration Delegation, 
Special Instructions. NASA Form 1430A, prescribed at 1842.202-70(a)(4), 
shall be used to supplement NASA Form 1430 when special instructions are 
necessary.
    (c) NASA Form 1431, Letter of Acceptance of Contract Administration 
Delegation. NASA Form 1431, prescribed at 1842.202-70(a)(8) (i), (ii), 
and (iii), shall be used in conjunction with NASA Form 1430 to record 
receipt and acceptance of delegation by other agencies.
    (d) NASA Form 1432, Letter of Contract Administration Delegation, 
Termination. NASA Form 1432, prescribed at 1842.202(c)(7), shall be used 
to delegate and redelegate termination functions and to amend existing 
termination delegations.
    (e) NASA Form 1433, Letter of Audit Delegation. NASA Form 1433, 
prescribed at 1842.202-71(c), shall be used to delegate and redelegate 
audit functions and to amend existing audit delegations.
    (f) NASA Form 1634, Contracting Officer Technical Representative 
(COTR) Delegation. NASA Form 1634, prescribed at 1842.270(b), shall be 
used to designate a COTR for a particular contract.
    (g) NASA Form 1434, Letter of Request for Pricing-Audit-Technical 
Evaluation Services. NASA Form 1434, prescribed at 1842.202-70(e)(1), 
shall be used to request contract administration and audit services 
incident to preaward of a contract but exclusive of preaward surveys.

[54 FR 28371, July 5, 1989, as amended at 57 FR 844, Jan. 9, 1992; 57 FR 
40856, Sept. 8, 1992; 60 FR 40521, Aug. 9, 1995]



Sec. 1853.242-71  Notifications (NASA Form 456).

    NASA Form 456, Notice of Contract Costs Suspended and/or 
Disapproved. NASA Form 456, prescribed at 1842.801, will be used to 
notify the contractor of any suspended/disallowed contract costs.

[59 FR 38132, July 27, 1994. Redesignated at 60 FR 40522, Aug. 9, 1995]

[[Page 472]]



Sec. 1853.245   Property (NASA Form 1018, Department of Defense Form 1342, and Department of Defense Form 1419).

    (a) NASA Form 1018, NASA Property in the Custody of Contractors. 
NASA Form 1018, prescribed at 1845.505-14, shall be used by contractors 
for reporting Government-owned property.
    (b) Department of Defense Form 1342, DOD Property Record. DD Form 
1342, prescribed at 1845.505-670, shall be used by contractors for 
reporting NASA-furnished or contractor-acquired centrally reportable 
equipment.
    (c) Department of Defense Form 1419, DOD Industrial Plant Equipment 
Requisition. DD Form 1419, prescribed by the clause at 1852.245-70, 
shall be used by contractors to list requirements for centrally 
reportable items for screening of existing Government inventories.

[54 FR 28371, July 5, 1989, as amended at 61 FR 47086, Sept. 6, 1996]



Sec. 1853.246   Quality Assurance (Department of Defense Form 250, Department of Defense Form 250c).

    (a) Department of Defense Form 250, Material Inspection and 
Receiving Report. DD Form 250, prescribed at 1846.670, shall be used to 
document procurement quality assurance, acceptance of supplies and 
services, and shipments.
    (b) Department of Defense Form 250c, Material Inspection and 
Receiving Report-Continuation Sheet. DD Form 250c, prescribed at 
1846.670, shall be used to continue documentation of information from DD 
Form 250.



Sec. 1853.249   Termination of contracts (NASA Forms 1412, 1413).

    (a) NASA Form 1412, Termination Authority. NASA Form 1412, 
prescribed at 1849.101-71, shall be used for initiating action to 
terminate a contract for either default or convenience of the 
Government.
    (b) NASA Form 1413, Termination Docket Checklist. NASA Form 1413, 
prescribed at 1849.105-70, shall be used to ensure adequacy of 
termination records.

[54 FR 28371, July 5, 1989, as amended at 60 FR 40522, Aug. 9, 1995

[[Page 473]]



             SUBCHAPTER I--AGENCY SUPPLEMENTARY REGULATIONS





PART 1870--NASA SUPPLEMENTARY REGULATIONS--Table of Contents




Sec.
1870.000  Scope of part.

        Subpart 1870.1--NASA Acquisition of Investigations System

1870.101  System content.
1870.102  NASA acquisition of investigations.

            Subpart 1870.2--NASA Research Announcement System

1870.201  Purpose.
1870.202  System content.
1870.203  Instructions for responding to NRAs.

                 Subpart 1870.3--NASA Source Evaluation

1870.301  Purpose.
1870.302  Regulations.
1870.303  Source Evaluation Board procedures.

                 Subpart 1870.4--NASA Credit Card System

1870.401  Purpose.
1870.402  System content.
1870.403  NASA procedures for the credit card system.

    Subpart 1870.5--NASA Major System Acquisition Phased Procurement 
                                Guidance

1870.501  Purpose.
1870.502  Regulations.
1870.503  Major system acquisition procedures.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 54 FR 28373, July 5, 1989, unless otherwise noted.



Sec. 1870.000  Scope of part.

    This part contains NASA-unique regulations which--
    (a) Constitute a system of regulations such that presentation in a 
unified format is essential;
    (b) Relate to numerous FAR subparts;
    (c) Have, as a whole, no clearly identifiable FAR counterpart; and
    (d) May include non-regulatory material necessary to complete 
coverage of the instant subject.

[60 FR 40522, Aug. 9, 1995]



        Subpart 1870.1--NASA Acquisition of Investigations System

    Source: At 60 FR 40522, Aug. 9, 1995, unless otherwise noted.



Sec. 1870.101  System content.

    (a) The regulations governing the NASA Acquisition of Investigations 
set forth the system in a single document, covering the roles of 
individuals with procurement and programmatic responsibilities both 
within NASA and the private sector. Therefore, the regulation provides 
guidance to all NASA personnel engaged in the solicitation, evaluation 
and selection of investigations. It emphasizes the responsibilities of 
line management and, as appropriate, the selected investigators in the 
acquisition of equipment necessary for the investigation. It provides 
for uniform procedures and equitable treatment in the evaluation and 
selection of investigators and acquisition of investigative equipment 
consistent with the FAR and NFS.
    (b) The system regulation contains policy and procedures applicable 
to the solicitation of investigations with ``Announcements of 
Opportunity,'' a form of broad agency announcement authorized at FAR 
6.102(d)(2)(i).



Sec. 1870.102  NASA acquisition of investigations.

    (a) The NASA Acquisition of Investigations System is prescribed by 
Appendix I to this section 1870.102.
    (b) NASA may reprint this Appendix I as a separate Handbook for sale 
and/or distribution provided the following two conditions are met:
    (1) With the exception of availability and distribution information, 
any subsequent modification in the text shall be preceded by a change to 
the NASA FAR Supplement 1870.102.
    (2) The following information shall be included as a part of the 
prefatory material in the NASA Handbook:

                            Important Notice

    This Handbook is a separately bound, verbatim version of NASA FAR 
Supplement

[[Page 474]]

(NFS) (48 CFR 1870.102) Section 1870.102, Appendix I. Reference to other 
parts of the Federal Acquisition Regulation (FAR) and the NFS will be 
required for complete coverage of all procurement aspects. NASA reserves 
the right to make changes to NFS 1870.102, Appendix I without issuing a 
new edition of this Handbook. Any such changes will be published in the 
Federal Register; however, it is anticipated that such changes will be 
rare, unless mandated by statute or unusual circumstances. In the event 
of apparent conflict between this Handbook and the NFS, the NFS shall 
govern.

  APPENDIX I TO 1870.102--GUIDELINES FOR ACQUISITION OF INVESTIGATIONS

                                 Preface

    NASA has always provided opportunities for qualified people in NASA, 
other Government agencies, colleges and universities, private industry, 
and foreign countries to participate in developing and carrying out its 
responsibilities in aeronautical and space activities. NASA has treated 
itself as a part of the scientific and technical community and has 
encouraged this community to bring to bear its expertise in developing 
investigatory objectives, selecting the investigations to carry out, 
participating in the resulting missions, analyzing the data obtained, 
and publishing the results.
    The acquisition of investigations process covered by this Handbook 
allows the continuation of our successful cooperative endeavors with the 
scientific, technological, and applications user communities and 
provides standards requiring greater attention to the planning and 
management of investigations. Also, this Handbook emphasizes the 
responsibilities of line management and, as appropriate, the selected 
investigators in the acquisition of equipment necessary for the 
investigation.

              Guidelines for Acquisition of Investigations

                                Contents

Chap. 1  The Investigation Acquisition System
    100  General
    101  Key Features of the System
    102  Management Responsibilities
Chap. 2  Applicability of the Process
    200  General
    201  Criteria for Determining Applicability
    202  Programs and Activities Where Use May be Considered
    203  Specific Approval Required
Chap. 3  The Announcement of Opportunity
    300  General
    301  Need for Preparatory Effort
    302  Responsibilities
    303  Proposal Opportunity Period
    304  Guidelines for Announcement of Opportunity
    305  Announcement of Opportunity Soliciting Foreign Participation
    306  Guidelines for Proposal Preparation
Chap. 4  Evaluation of Proposals
    400  General
    401  Criteria for Evaluation
    402  Methods of Evaluation
    403  Advisory Subcommittee Evaluation Process
    404  Contractor Evaluation Process
    405  Government Evaluation Process
    406  Cost, Engineering, Integration, and Management Evaluation
    407  Program Office Evaluation
    408  Steering Committee Review
    409  Principles to Apply
Chap. 5  The Selection Process
    500  General
    501  Decisions to Be Made
    502  The Selection Statement
    503  Notification of Proposers
    504  Debriefing
Chap. 6  Payload Formulation
    600  Payload Formulation
Chap. 7  Procurement and Other Considerations
    700  Early Involvement Essential
    701  Negotiation, Discussions, and Contract Award
    702  Application of the Federal Acquisition Regulation (FAR) and the 
NASA FAR Supplement (NFS)
    703  Other Administrative and Functional Requirements

                               Appendices

Appendix A to Appendix I--Format of Announcement of Opportunity
Appendix B to Appendix I--General Instructions and Provisions
Appendix C to Appendix I--Guidelines for Proposal Preparation
Appendix D to Appendix I--Glossary of Terms and Abbreviations Associated 
          with Investigations

             Chapter 1--The Investigation Acquisition System

                              100  General

    The best space research results when space research investigators 
participate in the selection of investigations. The investigation 
acquisition system encourages the participation of investigators and the 
selection of investigations which contribute most effectively to the 
advancement of NASA's scientific and technological objectives. It is a 
system separate from the acquisition process, but requiring the same 
management and discipline to assure compliance with statutory 
requirements and considerations of equity. ``NASA Acquisition of 
Investigations'' is the name under which this system is incorporated 
into the NASA FAR Supplement.

[[Page 475]]

                     101 Key Features of the System

    1. Use of the system commences with a Program Associate 
Administrator's determination that the investigation acquisition process 
is appropriate for a program. An Announcement of Opportunity (AO) is 
disseminated to the interested community. This solicitation does not 
specify the investigations to be proposed but solicits investigative 
ideas which contribute to broad objectives. In order to determine which 
of the proposals should be selected, a formal competitive evaluation 
process is utilized. The evaluation for merit is normally made by 
experts in the fields represented by the proposals. Care should be taken 
to avoid conflicts of interest. These evaluators may be from NASA, other 
Government agencies, universities, or the commercial sector. Along with 
or subsequent to the evaluation for merit, the other factors of the 
proposals, such as engineering, cost, and integration aspects, are 
reviewed by specialists in those areas. The evaluation conclusions as 
well as considerations of budget and other factors are used to formulate 
a complement of recommended investigations. A steering committee serving 
as staff to the Program Associate Administrator (Program AA) reviews the 
proposed payload or program of investigation, the iterative process, and 
the selection recommendations. The steering committee serves as a forum 
where different interests, such as flight program, discipline 
management, and administration, can be weighed.
    The Program AA selects the proposals that will participate in the 
program. Once selected, an investigator is assigned appropriate 
responsibilities relating to the investigation through a contract with 
the institution. For foreign investigators, these responsibilities will 
usually be outlined in an agreement between NASA and the sponsoring 
governmental agency in the investigator's country.
    2. The AO process provides a disciplined approach to investigation 
acquisition. The following major steps must be followed in each case:
    a. The AO shall be signed by the Program AA and shall be widely 
distributed to the scientific, technological, and applications user 
communities, as appropriate.
    b. An evaluation team shall be formed including recognized peers of 
the investigators.
    c. A project office will be assigned to assess the engineering, 
cost, integration, and management aspects of the proposals.
    d. A program office will be responsible to formulate a complement of 
investigations consistent with the objectives stated in the AO, cost, 
and schedule constraints.
    e. A steering committee appointed by the appropriate Program AA 
shall review the proposed investigations for relevance and merit, will 
assure compliance with the system as described in this Handbook, and 
make selection recommendations.
    f. Selections shall be made by the Program AA.
    3. Payloads will be formulated consisting of investigations selected 
through the AO process and/or other authorized methods.
    4. When the need is determined by the Program AA, payload 
specialists will be selected in accordance with NMI 7100.16, Payload 
Specialists for Space Transportation Systems (STS) Missions.

                    102  Management Responsibilities

    1. Program AA are responsible for overseeing the process and for 
making key decisions essential to the process including:
    a. Determination to use the investigation acquisition system.
    b. Appointment of the steering committee members.
    c. Designation of a staff to assure uniformity in the issuance of 
the AO and conformity with the required procedures in the evaluation and 
selection.
    d. Reuse, to the maximum extent practicable, of space hardware and 
support equipment.
    e. Determination to use advisory subcommittees, contractor, or full-
time Government employees only in the evaluation process.
    f. Issuance of the AO.
    g. Selection of investigations and investigators, determination of 
need of a definition phase, determination of the role of the 
investigator with regard to providing essential investigation hardware 
and services, and determination of the need for payload specialists.
    h. Assure consideration is given to minorities in the establishment 
of peer groups, distribution of the AO and in the selection of 
investigations.
    i. Provide a framework for cooperative foreign participation in 
Space Shuttle, Spacelab, and Space Station missions.
    2. The Program AA should call upon any required experts throughout 
the process. The remaining chapters of this Handbook will discuss the 
exercise of the foregoing responsibilities in greater detail.

                 Chapter 2--Applicability of the Process

                              200  General

    The system used for acquisition of investigations is separate from 
the agency procedures for procurement of known requirements. A decision 
to use this special acquisition process will be based on a determination 
that it is the most suitable to meet program needs. The decision-making 
official will consider the criteria for use of the system. The project 
plan or other documentation should discuss the proposed mode of 
investigations selection.

[[Page 476]]

               201  Criteria for Determining Applicability

    1. The decision to utilize the investigations acquisition process as 
an alternative to the normal planning and acquisition process can only 
be made after consideration of the conditions which are requisite to its 
use. All of the following conditions should exist before deciding that 
the system is applicable:
    a. NASA has a general objective which can be furthered through novel 
experimental approaches. To develop such approaches, NASA wishes to draw 
upon the broadest reservoir of ideas that can be made available.
    b. Choices must be made among competing ideas in expanding 
knowledge.
    c. Individual participation of an investigator is essential to 
exploitation of the opportunity.
    2. The investigations acquisition process shall not be used when any 
of the following characteristics are present:
    a. The requiring office can define a requirement sufficiently to 
allow for normal procurement.
    b. The program is extremely complex, requiring specialized 
integration, coordination, or other special handling, or extending over 
a lengthy period wherein individual participation is not essential.
    c. It is not possible or considered essential to the program to 
follow the steps of the investigations acquisition process.

        202  Programs and Activities Where Use May be Considered

    1. General--The investigation acquisition process is most suitable 
for investigations aimed at exploration requiring several unique sensors 
or instruments, but it has been used successfully in several types of 
opportunity. A discussion of several types of programs, the 
opportunities they offer, and comment on the suitability of the special 
process follows.

                2. Exploration and Space Research Flights

    a. Examples--Space Transportation System (STS) flights with attached 
payloads, generally Spacelab payloads; and free-flying spacecraft, such 
as Explorers, Pioneers, Space Telescope, Landsats, and Long Duration 
Exposure Facilities.

                         b. Types of Opportunity

    (1) A common and sought after opportunity is to participate as a 
Principal Investigator (PI) responsible for conceiving and conducting a 
space investigation. This may involve a major piece of instrumentation. 
In the case of a ``facility'' or ``multiuser'' payload, each PI's 
responsibilities would ordinarily involve a relatively minor portion of 
the total instrument.
    (2) There may also be an opportunity to serve on a PI's team as a 
member or Co-Investigator.
    (3) A type of opportunity that generally involves the use of data 
from another investigator's instrument is that of guest investigator or 
guest observer. Guest investigators usually participate after the 
primary objectives have been satisfied for the investigations involved.
    (4) A team may be formed from selected investigators to assist in 
defining planned mission objectives and/or to determine, in a general 
manner, the most meaningful instruments to accomplish the mission 
objectives.
    c. Selection and Acquisition Procedures--The investigation 
acquisition process may be applicable to all of these types of 
opportunities. The supposition common in these opportunities is that the 
best ideas and approaches are likely to result from the broadest 
possible involvement of the scientific, technological or applications 
user communities.

                            3. Minor Missions

    a. Examples--Research aircraft, sounding rockets, balloons, and 
minor missions are generally of short duration, small in size, often 
single purpose, and subject to repetition. Many investigations are 
follow-on to past-flight investigations.

                         b. Types of Opportunity

    (1) PIs responsible for investigation.
    (2) Data use or analysis.
    c. Selection and Acquisition Process--Opportunities for 
participation on minor missions are generally suitable for normal 
procurement procedures. The use of a general announcement announcing the 
general nature and schedule of flights may be appropriate when 
considered necessary to broaden participation by requesting 
investigator-initiated research proposals. Procurement procedures as 
contained in NASA FAR Supplement shall be used for follow-on repeat 
flights. Although NASA seeks unique, innovative ideas for these 
missions, the prospect of reflight and the latitude in determining 
number and schedule of flights argue against the need for the use of the 
investigations acquisition process to force dissimilar proposals into an 
annual or periodic competitive structure. On the other hand, there are 
some minor missions addressed to specific limited opportunities; for 
example, a solar eclipse. When such limitations indicate that the 
special competitive structure is needed, it should be authorized.

           4. Operational and Operational Prototype Spacecraft

    a. Examples--GOES, TIROS.
    b. Selection and Acquisition Process--The user agency can be 
expected to specify performance parameters. Payload definition will be 
the responsibility of the user agency

[[Page 477]]

and NASA. Specifications sufficient for normal procedures can be 
produced. Use of data from the mission is the responsibility of the user 
agency. Thus, the special process is not required.

                        5. Reimbursable Missions

    a. Examples--INTELSAT, SATCOM, WESTAR, MARISAT.
    b. Selection and Acquisition Process--Payload determination and 
delivery are the responsibility of the user organization. NASA's role is 
essentially to provide launch services. No special process is required.

              6. Supporting Research and Technology (SR&T)

    a. Examples--Studies, minor developments, instrument 
conceptualization, ground-based observations, laboratory and theoretical 
supporting research, and data reduction and analysis which is 
unconstrained by a specific opportunity.
    b. Selection and Acquisition Process--Programs in these areas tend 
to go forward on a continuing basis, rather than exploiting unique 
opportunities. Normal procurement procedures should be utilized to 
satisfy these requirements. A general announcement of area of interest 
could be made when greater participation is deemed advisable. Proposals 
can be solicited or unsolicited and can be entertained within the 
context of the normal procurement procedure.

                     203  Specific Approval Required

    The Program AA responsible for the program is responsible for 
determining whether or not to use the special investigations acquisition 
process. Normally on major projects, or when a project plan is required, 
use of the investigation acquisition system will be justified and 
recommended in the project planning documentation and will be 
coordinated with staff offices and discussed in the planning 
presentation to the Deputy Administrator or designee.

               Chapter 3--The Announcement of Opportunity

                              300  General

    The AO is characterized by its generality. However, it is essential 
that the AO contains sufficient data in order to obtain meaningful 
proposals. To a considerable extent, the detail and depth of the AO will 
depend on the objective. In all cases, judgment is of paramount 
importance, since the purpose is to get adequate information to assess 
the relevance, merit, cost, and management without overburdening the 
proposer.

                    301  Need for Preparatory Effort

    1. When the use of the AO process is contemplated, there is need to 
consult with appropriate Headquarters offices and the Project 
Installation responsible for the project prior to release of the AO.
    2. In addition, the need to meet legal requirements in the 
acquisition processes will require early external Program Office 
involvement to:
    a. Synopsize the AO in the Commerce Business Daily prior to the time 
of release.
    b. Determine if there is instrumentation or support equipment 
available which may be appropriate to the AO with all necessary 
background data considered essential for use by a proposer.
    c. Determine mailing lists, including the mailing list maintained by 
the International Affairs Division, Office of External Relations, for 
broad dissemination of the AO.
    d. Assure mandatory provisions are contained in the AO.
    3. Other methods of dissemination of the AO may also be used, such 
as the use of press releases, etc. When possible, the AO should be 
widely publicized through publications of appropriate professional 
societies; however, NASA policy does not allow payment for the placement 
of advertisements.

                          302  Responsibilities

    1. The Program Office originator is responsible for the content of 
the AO and coordination with concerned Headquarters offices and field 
installations. All personnel involved in the evaluation of proposals are 
responsible for familiarizing themselves and complying with this 
Handbook and other applicable regulations. To this end, they are 
expected to seek the advice and guidance of appropriate Headquarters 
program and staff offices, and Project Installation management.
    2. The Program Office is also responsible for coordinating the AO 
with the International Affairs, Educational Affairs, Management Support 
Divisions, Office of External Relations, Office of General Counsel, and 
Office of Procurement prior to issuance. Attention is directed to NMI 
1362.1, Initiation and Development of International Cooperation in Space 
and Aeronautical Programs.
    3. Concurrence of the Office of Procurement is required before 
issuance of an AO.

                    303  Proposal Opportunity Period

    1. The AO is considered the primary method of soliciting 
investigations. As such, it is necessary that the process accommodate 
the continuous opportunities afforded by the Shuttle/Spacelab flights. 
Thus, the following methods may be utilized, individually or in 
combination, to enable an AO and resultant proposals to be open for an 
extended period of time and/or to cover a series or range of flight 
possibilities or disciplines:

[[Page 478]]

    a. The AO may be issued establishing a number of proposal submission 
dates. Normally, no more than three proposal submission dates should be 
established. The submittal dates may be spread over the number of months 
most compatible with the possible flight opportunities and the 
availability of resources necessary to evaluate and fund the proposals.
    b. The AO may be issued establishing a single proposal submission 
date. However, the AO could provide that NASA amend the AO to provide 
for subsequent dates for submission of proposals, if additional 
investigations are desired within the AO objectives.
    c. The AO may provide for an initial submission date with the AO to 
remain open for submission of additional proposals up to a final cutoff 
date. This final date should be related to the availability of resources 
necessary to evaluate the continuous flow of proposals, the time 
remaining prior to the flight opportunity(s) contemplated by the AO, and 
payload funding and availability.
    2. Generally, a core payload of investigations would be selected 
from the initial submission of proposals under the above methods of 
open-ended AOs. These selections could be final or tentative recognizing 
the need for further definition. Proposals received by subsequent 
submission dates would be considered in the scope of the original AO but 
would be subject to the opportunities and resources remaining available 
or the progress being made by prior selected investigations.
    3. Any proposal, whether received on the initial submission or 
subsequent submission, requires notification to the investigator and the 
investigator's institution of the proposal disposition. Some of the 
proposals will be rejected completely and the investigators immediately 
notified. The remaining unselected proposals may, if agreeable with the 
proposers, be held for later consideration and funding and the 
investigator so notified. However, if an investigator's proposal is 
considered at a later date, the investigator must be given an 
opportunity to validate the proposal with the investigator's institution 
and for updating the cost and other data contained in the original 
submission prior to a final selection. In summary, NASA may retain 
proposals, receiving Category I, II, or III classifications (see 
paragraph 403), for possible later sponsorship until no longer feasible 
to consider the proposal. When this final stage is reached, the 
investigator must be promptly notified.
    4. If the intent is to hold proposals for possible later 
consideration, as discussed in subparagraph 3, the AO should 
specifically indicate this intent and the procedure to be used. 
Proposing investigators not desiring their proposals be held for later 
consideration should be given the opportunity to so indicate in their 
original submissions.

             304  Guidelines for Announcement of Opportunity

    1. The preparation of the AO should be a multi-functional effort. It 
involves program and project management and usually involves other 
offices of NASA.
    2. The AO should be tailored to the particular needs of the 
contemplated investigations and be complete in itself. Each AO will be 
identified as (Program Office) originated and numbered consecutively 
each calendar year, e.g., OA-1-95, OA-2-95; OLMSA-1-95; OSS-1-95; etc. 
The required format and detailed instructions regarding the contents of 
the AO are contained in Appendix A.
    3. The General Instructions and Provisions (Appendix B) are 
necessary to accommodate the unique aspects of the AO process. 
Therefore, they must be appended to each AO.
    4. At the time of issuance, copies of the AO must be furnished to 
the Office of Procurement and to the Office of General Counsel.
    5. Proposers should be informed of significant departures from 
scheduled dates for activities related in the AO.

    305  Announcement of Opportunity Soliciting Foreign Participation

    Proposals for participation by individuals outside the U.S. should 
be submitted in the same format (excluding cost plans) as U.S. 
proposals; they should be typewritten and be in English; the proposals 
should be reviewed and endorsed by the appropriate foreign governmental 
agency. If letters of ``Notice of Intent'' are required, the AO should 
indicate that they be sent to NASA's International Affairs Division, 
Office of External Relations. Should a foreign proposal be selected, 
NASA will arrange with the sponsoring foreign agency for the proposed 
participation on a no-exchange-of-funds basis, in which NASA and the 
sponsoring agency will each bear the cost of discharging its respective 
responsibilities. Note that additional guidelines applicable to foreign 
proposers are contained in the Management Plan Section of Appendix C 
(see Section II) and must be included in any Guidelines for Proposal 
Preparation or otherwise furnished to foreign proposers.

                306  Guidelines for Proposal Preparation

    While not all of the guidelines outlined in Appendix C will be 
applicable in response to every AO, the investigator should be informed 
of the relevant information required. The proposal may be submitted on a 
form supplied by the Program Office. However, the proposal should be 
submitted in at least two sections: (1) Investigation and Technical 
Section; and (2) Management and Cost Section as described in Appendix C.

[[Page 479]]

                   Chapter 4--Evaluation of Proposals

                              400  General

    The evaluation process assures consideration of the aspects of each 
proposal and constitutes progressive sorting of the proposals. A review 
resulting in a categorization is performed by using one of the methods 
or combination of the methods outlined in paragraph 402. The purpose of 
this initial review is to determine the scientific and/or technological 
merit of the proposals in the context of the AO objectives. Those 
proposals which are considered to have the greatest scientific or 
technological merit are then reviewed in detail for the engineering, 
management, and cost aspects, usually by the Project Office at the 
installation responsible for the project. Final reviews are performed by 
the Program Office and the Steering Committee and are aimed at 
developing a group of investigations which represent an integrated 
payload or a well-balanced program of investigation which has the best 
possibility for meeting the announced objectives within programmatic 
constraints. The importance of considering the interrelationship of the 
several aspects of the proposals to be reviewed in the process and the 
need for carefully planning their treatment should not be overlooked. An 
evaluation plan has been found helpful to the evaluators, program 
management officials, and the selection official. The evaluation plan 
should be developed before issuance of the AO. It should cover the 
recommended staffing for any subcommittee or contractor support, review 
guidelines as well as the procedural flow and schedule of the 
evaluation. While not mandatory, such a plan should be considered for 
each AO. A fuller discussion of the evaluation and selection process is 
included in the following paragraphs.

                      401  Criteria for Evaluation

    1. Each AO must indicate those criteria which the evaluators will 
apply in evaluating a proposal. The relative importance of each 
criterion must also be stated. This information will allow investigators 
to make informed judgments in formulating proposals that best meet the 
stated objectives.
    2. Following is a list of general evaluation criteria appropriate 
for inclusion in most AOs:
    a. The scientific, applications, and/or technological merit of the 
investigation.
    b. The relevance of the proposed investigation to the AO's stated 
scientific, applications, and/or technological objectives.
    c. The competence and experience of the investigator and any 
investigative team.
    d. Adequacy of whatever apparatus may be proposed with particular 
regard to its ability to supply the data needed for the investigation.
    e. The reputation and interest of the investigator's institution, as 
measured by the willingness of the institution to provide the support 
necessary to ensure that the investigation can be completed 
satisfactorily.
    In addition to or in lieu of the criteria listed herein, additional 
criteria may be utilized. In all cases, the evaluation criteria must be 
germane to the accomplishment of the stated objectives.
    3. Cost and management aspects will be considered in all selections.
    4. Once the AO is issued, it is essential that the evaluation 
criteria be applied in a uniform manner. If it becomes apparent, before 
the date set for receipt of proposals, that the criteria or their 
relative importance should be changed, the AO will be amended, and all 
known recipients will be informed of the change and given an adequate 
opportunity to consider it in submission of their proposals. Evaluation 
criteria and/or their relative importance will not be changed after the 
date set for receipt of proposals.

                       402  Methods of Evaluation

    Alternative methods are available to initiate the evaluation of 
proposals received in response to an AO. These are referred to as the 
Advisory Subcommittee Evaluation Process, the Contractor Evaluation 
Process, and the Government Evaluation Process. In all processes, a 
subcommittee of the appropriate Program Office Steering Committee will 
be formed to categorize the proposals. The various approaches, described 
in detail in paragraph 403. Following categorization, those proposals 
still in consideration will be processed to the selection official as 
prescribed hereafter.

              403  Advisory Subcommittee Evaluation Process

    1. Evaluation of scientific and/or technological merit of proposed 
investigations is the responsibility of an advisory subcommittee of the 
Steering Committee. It is of prime importance that the appointment of 
members to the subcommittee be weighed carefully as these individuals 
may exercise significant influence on the selection of investigations 
and hence achievement of program goals and objectives.
    2. The subcommittee constitutes a peer group qualified to judge the 
scientific and technological aspects of all investigation proposals. One 
or more subcommittees may be established depending on the breadth of the 
technical or scientific disciplines inherent in the AO's objectives. 
Each subcommittee represents a discipline or grouping of closely related 
disciplines. To maximize the quality of the subcommittee evaluation and 
categorization, the following conditions of selection and appointment 
should be considered.

[[Page 480]]

    a. The subcommittee normally should be established on an ad hoc 
basis.
    b. Qualifications and acknowledgment of the professional abilities 
of the subcommittee members are of primary importance. Institutional 
affiliations are not sufficient qualifications.
    c. The executive secretary of the subcommittee must be a full-time 
NASA employee.
    d. Subcommittee members should normally be appointed as early as 
possible and prior to receipt of proposals.
    e. Care must be taken to avoid conflicts of interest. These include 
financial interests, institutional affiliations, professional biases and 
associations, as well as familiar relationships. Conflicts could further 
occur as a result of imbalance between Government and non-Government 
appointees or membership from institutions representing a singular 
school of thought in discipline areas involving competitive theories in 
approach to an investigation.
    f. The subcommittee should convene as a group in closed sessions for 
proposal evaluation to protect the proposer's proprietary ideas and to 
allow frank discussion of the proposer's qualifications and the merit of 
the proposer's ideas. Lead review responsibility for each proposal may 
be assigned to members most qualified in the involved discipline. It is 
important that each proposal be considered by the entire subcommittee.
    3. It may not be possible to select a subcommittee fully satisfying 
all of the conditions described in subparagraph 2. It is not the purpose 
of these guidelines to establish provisions for making trade-offs, where 
necessary, among the above criteria. This is properly the responsibility 
of the nominating and appointing officials. This latitude permits 
flexibility in making decisions in accord with circumstances of each 
application. In so doing, however, it is emphasized that recognized 
expertise in evaluating dissimilar proposals is essential to the 
continued workability of the investigation acquisition process.
    4. Candidate subcommittee members should be nominated by the office 
having responsibility for the evaluation. Nominations should be approved 
in accordance with NMI 1150.2, ``Establishment, Operation, and Duration 
of NASA Advisory Committees.'' The notification of appointment should 
specify the duration of assignment on the subcommittee, provisions 
concerning conflicts of interest, and arrangements regarding honoraria, 
per diem, and travel when actually employed.
    5. It is important that members of the subcommittee be formally 
instructed as to their responsibilities with respect to the 
investigation acquisition process, even where several or all of the 
members have served previously. This briefing of subcommittee members 
should include:
    a. Instruction of subcommittee members on agency policies and 
procedures pertinent to acquisition of investigations.
    b. Review of the program goals, AO objectives, and evaluation 
criteria, including relative importance, which provide the basis for 
evaluation.
    c. Instruction on the use of preliminary proposal evaluation data 
furnished by the Installation Project Office. The subcommittee should 
examine these data to gain a better understanding of the proposed 
investigations, any associated problems, and to consider cost in 
relation to the value of the investigations' objectives.
    d. Definition of responsibility of the subcommittee for evaluation 
and categorization with respect to scientific and/or technical merit in 
accordance with the evaluation criteria.
    e. Instruction for documentation of deliberations and 
categorizations of the subcommittee.
    f. Inform the chairperson of the subcommittee and all members that 
they should familiarize themselves with the provisions of the current 
``Standards of Conduct for NASA Employees'', NHB 1900.1, or ``Standards 
of Conduct for NASA Special Government Employees'', NHB 1900.2, as 
appropriate, regarding conflicts of interest. Members should inform the 
appointing authority if their participation presents a real or apparent 
conflict of interest situation. In addition, all participants should 
inform the selection official in the event they are subjected to 
pressure or improper contacts.
    g. Inform members that prior to the selection and announcement of 
the successful investigators and investigations, subcommittee members 
and NASA personnel shall not reveal any information concerning the 
evaluation to anyone who is not also participating in the same 
evaluation proceedings, and then only to the extent that such 
information is required in connection with such proceedings. Also, 
inform members that subsequent to selection of an investigation and 
announcement of negotiations with the investigator's institution, 
information concerning the proceedings of the subcommittee and data 
developed by the subcommittee will be made available to others within 
NASA only when the requestor demonstrates a need to know for a NASA 
purpose. Such information will be made available to persons outside NASA 
including other Government agencies, only when such disclosure is 
concurred in by the Office of General Counsel. In this connection, 
reference is made to 18 U.S.C. 1905 which provides criminal sanctions if 
any officer or employee (including special employees) of the United 
States discloses or divulges certain kinds of business

[[Page 481]]

confidential and trade secret information unless authorized by law.
    6. The product of an advisory subcommittee is the classification of 
proposals into four categories. The categories are:
    a. Category I--Well conceived and scientifically and technically 
sound investigations pertinent to the goals of the program and the AO's 
objectives and offered by a competent investigator from an institution 
capable of supplying the necessary support to ensure that any essential 
flight hardware or other support can be delivered on time and that data 
can be properly reduced, analyzed, interpreted, and published in a 
reasonable time. Investigations in Category I are recommended for 
acceptance and normally will be displaced only by other Category I 
investigations.
    b. Category II--Well conceived and scientifically or technically 
sound investigations which are recommended for acceptance, but at a 
lower priority than Category I.
    c. Category III--Scientifically or technically sound investigations 
which require further development. Category III investigations may be 
funded for development and may be reconsidered at a later time for the 
same or other opportunities.
    d. Category IV--Proposed investigations which are recommended for 
rejection for the particular opportunity under consideration, whatever 
the reason.
    7. A record of the deliberations of the subcommittee should be 
prepared by the assigned executive secretary and should be signed by the 
Chairperson. The minutes should contain the categorizations with basic 
rationale for such ratings and the significant strengths and weaknesses 
of the proposals evaluated.

                   404  Contractor Evaluation Process

    1. The use of the contractor method for obtaining support for 
evaluation purposes of proposals received in response to an AO requires 
the approval of the Program AA. Prior to the use of this method, 
discussion should be held with the Office of Procurement.
    2. It is NASA policy to avoid situations in the procurement process 
where, by virtue of the work or services performed for NASA, or as a 
result of data acquired from NASA or from other entities, a particular 
company:
    a. Is given an unfair competitive advantage over other companies 
with respect to future NASA business;
    b. Is placed in a position to affect Government actions under 
circumstances in which there is potential that the company's judgment 
may be biased; or
    c. Otherwise finds that a conflict exists between the performance of 
work or services for the Government in an impartial manner and the 
company's own self-interest.
    3. To reduce the possibility of an organizational conflict of 
interest problem arising, the following minimum restrictions will be 
incorporated into the contract:
    a. No employee of the contractor will be permitted to propose in 
response to the AO;
    b. The ``Limitation on Future Contracting'' clause contained in NASA 
FAR Supplement 1852.209-71 and the conditions set forth in NASA FAR 
Supplement 1815.413-2 Alternate II (c) and (d) will be included in all 
such contracts; and
    c. Unless authorized by the NASA contracting officer, the contractor 
shall not contact the originator of any proposal concerning its 
contents.
    4. The scope of work for the selected contractor will provide for an 
identification of strengths and weaknesses and a summary of the 
proposals. The contractor will not make selections nor recommend 
investigations.
    5. The steps to be taken in establishing evaluation panels and the 
responsibilities of NASA and the contractor in relation to the panels 
will be as follows:
    a. The contractor will be required to establish and provide support 
to panels of experts for review of proposals to evaluate their 
scientific and technical merit;
    b. These panels will be composed of scientists and specialists 
qualified to evaluate the proposals;
    c. The agency may provide to the contractor lists of scientist(s) 
and specialist(s) in the various disciplines it believes are qualified 
to serve on the panels;
    d. The contractor will report each panel's membership to NASA for 
approval; and
    e. The contractor must make all the necessary arrangements with the 
panel members.
    6. The evaluation support by the contractor's panels of experts will 
be accomplished as follows:
    a. The panels will review the scientific and technical merit of the 
proposals in accordance with the evaluation criteria in the AO and will 
record their strengths and weaknesses.
    b. The contractor will make records of each panel's deliberations 
which will form the basis for a report summarizing the results of the 
evaluations. Upon request, the contractor shall provide all such records 
to NASA;
    c. The chairperson of each panel shall certify that the evaluation 
report correctly represents the findings of the review panel; and
    d. A final report will be submitted as provided in the contract.
    7. A subcommittee of the Program Office Steering Committee will be 
established on an ad hoc basis. Utilizing furnished data, the 
subcommittee will classify the proposals into the four categories 
enumerated in paragraph 403, ``Advisory Subcommittee Evaluation 
Process.'' A record of the deliberations

[[Page 482]]

of the subcommittee should be prepared by an assigned executive 
secretary and signed by the chairperson. The minutes should contain the 
categorizations with the basic rationale for such ratings and the 
significant strengths and weaknesses of the proposals evaluated.

                   405  Government Evaluation Process

    1. The Program AA may, in accordance with NMI 1150.2, appoint one or 
more full-time Government employees as subcommittee members of the 
Program Office Steering Committee to evaluate and categorize the 
proposals.
    2. Each subcommittee member should be qualified and competent to 
evaluate the proposals in accordance with the AO evaluation criteria. It 
is important that a subcommittee's evaluation not be influenced by 
others either within or outside of NASA.
    3. The subcommittee members will not contact the proposers for 
additional information.
    4. The subcommittee members will classify the proposals in 
accordance with the four categories indicated in paragraph 403. Each 
categorization will be supported by an appropriate rationale including a 
narrative of each proposal's strengths and weaknesses.

        406  Engineering, Integration, and Management Evaluation

    1. The subcommittee responsible for categorization of each proposal 
in terms of its scientific, applications, or technical merit should 
receive information on probable cost, technical status, developmental 
risk, integration and safety problems, and management arrangements in 
time for their deliberations.
    2. This information should be provided at the discretion of the 
Headquarters Program Office by the Project Office at the installation. 
This information can be in general terms and should reflect what 
insights the Project Office can provide without requesting additional 
details from the proposers. This limited Project Office review will not 
normally give the subcommittees information of significant precision. 
The purpose is to give the subcommittee sufficient information so it can 
review the proposals in conjunction with available cost, integration, 
and management considerations to gain an impression of each 
investigator's understanding of the problems of the experiment and to 
permit gross trade-offs of cost versus value of the investigation 
objective.
    3. Following categorization, the Project Office shall evaluate 
proposals in contention, in depth, including a thorough review of each 
proposal's engineering, integration, management, and cost aspects. This 
review should be accomplished by qualified engineering, cost, and 
business analysts at the project center.
    4. In assessing proposed costs, the evaluation must consider:
    a. The investigation objective.
    b. Comparable, similar or related investigations.
    c. Whether NASA or the investigator should procure the necessary 
supporting instrumentation or services and the relative cost of each 
mode.
    d. Total overall or probable costs to the Government including 
integration and data reduction and analysis. In the case of 
investigations proposed by Government investigators, this includes all 
associated direct and indirect cost. With respect to cooperative 
investigations, integration, and other applicable costs should be 
considered.
    5. The Project Office, as part of the in-depth evaluation of 
proposals that require instrumentation or support equipment, will survey 
all potential sources for Government-owned instrumentation or support 
equipment that may be made available, with or without modifications, to 
the potential investigator. Such items contributed by foreign 
cooperating groups which are still available under cooperative project 
agreements will also be considered for use under the terms and 
conditions specified in the agreements. As part of the evaluation report 
to the Program Office, the availability or nonavailability of 
instrumentation or support equipment will be indicated.
    6. Proposals which require instrumentation should be evaluated by 
project personnel. This evaluation should cover the interfaces and the 
assessment of development risks. This evaluation should furnish the 
selection official with sufficient data to contribute to the instrument 
determinations. Important among these are:
    a. Whether the instrument requires further definition;
    b. Whether studies and designs are necessary to provide a reasonably 
accurate appreciation of the cost;
    c. Whether the investigation can be carried out without incurring 
undue cost, schedule, or risk of failure penalties; and
    d. Whether integration of the instrument is feasible.
    7. In reviewing an investigator's management plan, the Project 
Office should evaluate the investigator's approach for efficiently 
managing the work, the recognition of essential management functions, 
and the effective overall integration of these functions. Evaluation of 
the proposals under final consideration should include, but not be 
limited to: workload--present and future related to capacity and 
capability; past experience; management approach and organization; e.g.:

[[Page 483]]

    a. With respect to workload and its relationship to capacity and 
capability, it is important to ascertain the extent to which the 
investigator is capable of providing facilities and personnel skills 
necessary to perform the required effort on a timely basis. This review 
should reveal the need for additional facilities or people, and provide 
some indication of the Government support the investigator will require.
    b. A review should be made of the investigator, the investigator's 
institution, and any supporting contractor's performance on prior 
investigations. This should assist in arriving at an assessment of the 
investigator and the institution's ability to perform the effort within 
the proposed cost and time constraints.
    c. The proposed investigator's management arrangements should be 
reviewed, including make or buy choices, support of any co-investigator, 
and preselected subcontractors or other instrument fabricators to 
determine whether such arrangements are justified. The review should 
determine if the proposed management arrangements enhance the 
investigator's ability to devote more time to the proposed experiment 
objectives and still effectively employ the technical and administrative 
support required for a successful investigation. In making these 
evaluations, the Project Office should draw on the installation's 
engineering, business, legal, and other staff resources, as necessary, 
as well as its scientific resources. If further information is needed 
from the proposers, it should be obtained through the proper contacts.

                     407  Program Office Evaluation

    1. A Program Office responsible for the project or program at 
Headquarters will receive the evaluation of the proposals, and weigh the 
evaluative data to determine an optimum payload or program of 
investigation. This determination will involve recommendations 
concerning individual investigations; but, more importantly, should 
result in a payload or program which is judged to optimize total mission 
return within schedule, engineering, and budgetary constraints. The 
recommendations should facilitate sound selection decisions by the 
Program AA. Three sets of recommendations result from the Program Office 
evaluation:
    a. Optimum payload or program of investigations, or options for 
alternative payloads or programs.
    b. Recommendation for final or tentative selection based on a 
determination of the degree of uncertainty associated with individual 
investigations. A tentative selection may be considered step one of a 
two-step selection technique.
    c. Upon consideration of the guidelines contained in paragraph 501-
lc, recommending responsibility for instrument development.
    2. The Installation Project Office evaluation is principally 
concerned with ensuring that the proposed investigation can be managed, 
developed, integrated, and executed with an appropriate probability of 
technical success within the estimated probable cost. The Headquarters 
program Director, drawing upon these inputs, should be mainly concerned 
with determining a payload or program from the point of view of 
programmatic goals and budgetary constraints. Discipline and cost trade-
offs are considered at this level. The Headquarters Program Office 
should focus on the potential contribution to program objectives that 
can be achieved under alternative feasible payload integration options.
    3. It may be to NASA's advantage to consider certain investigations 
for tentative selection pending resolution of uncertainties in their 
development. Tentative selections should be reconsidered after a period 
of time for final selection in a payload or program of investigations. 
This two-step selection process should be considered when:
    a. The potential return from the investigation is sufficient, 
relative to that of the other investigations under consideration, and 
that its further development appears to be warranted before final 
selection.
    b. The investigation potential is of such high priority to the 
program that the investigation should be developed for flight if at all 
possible.
    c. The investigative area is critical to the program and competitive 
approaches need to be developed further to allow selection of the 
optimum course.
    4. Based on evaluation of these considerations associated with the 
investigations requiring further development of hardware, the following 
information should be provided to the Steering Committee and the Program 
AA responsible for selection:
    a. The expected gain in potential return associated with the 
eventual incorporation of tentatively recommended investigations in the 
payload(s) or program.
    b. The expected costs required to develop instrumentation to the 
point of ``demonstrated capability.''
    c. The risk involved in added cost, probability of successfully 
developing the required instrument capability, and the possibility of 
schedule impact.
    d. Identification of opportunities, if any, for inclusion of such 
investigations in later missions.
    5. In those cases where investigations are tentatively selected, an 
explicit statement should be made of the process to be followed in 
determining the final payload or program of investigations and the 
proposers so informed. The two-phase selection approach

[[Page 484]]

provides the opportunity for additional assurance of development 
potential and probable cost prior to a final commitment to the 
investigation.
    6. As instruments used in investigations become increasingly complex 
and costly, the need for greater control of their development by the 
responsible Headquarters Program Office also grows. Accordingly, as an 
integral part of the evaluation process, a deliberate decision should be 
made regarding the role of the Principal Investigator with respect to 
the provision of the major hardware associated with that person's 
investigation. The guidelines for the hardware acquisition determination 
are discussed in paragraph 501-lc.
    7. The range of options for responsibility for the instrumentation 
consists of:
    a. Assignment of full responsibility to the Principal Investigator. 
The responsibility includes all in-house or contracted activity to 
provide the instrumentation for integration.
    b. Retention of developmental responsibility by the Government with 
participation by the Principal Investigator in key events defined for 
the program. In all cases the right of the Principal Investigator to 
counsel and recommend is paramount. Such involvement of the Principal 
Investigator may include:
    (1) Provision of instrument specifications.
    (2) Approval of specifications.
    (3) Independent monitorship of the development and advice to the 
Government on optimization of the instrumentation for the investigation.
    (4) Participation in design reviews and other appropriate reviews.
    (5) Review and concurrence in changes resulting from design reviews.
    (6) Participation in configuration control board actions.
    (7) Advice in definition of test program.
    (8) Review and approval of test program and changes thereto.
    (9) Participation in conduct of the test program.
    (10) Participation in calibration of instrument.
    (11) Participation in final inspection and acceptance of the 
instrument.
    (12) Participation in subsequent test and evaluation processes 
incident to integration and flight preparation.
    (13) Participation in the development and support of the operations 
plan.
    (14) Analysis and interpretation of data.
    8. The Principal Investigator should as a minimum:
    a. Approve the instrument specification.
    b. Advise the project manager in development and fabrication.
    c. Participate in final calibration.
    d. Develop and support the operations plan.
    e. Analyze and interpret the data.
    9. The Project Installation is responsible for implementing the 
program or project and should make recommendations concerning the role 
for the Principal Investigators. The Program AA will determine the role, 
acting upon the advice of the Headquarters Program Office and the 
Steering Committee. The Principal Investigator's desires will be 
respected in the negotiation of the person's role allowing an appeal to 
the Program AA and the right to withdraw from participation.
    10. The Program Office should make a presentation to the Steering 
Committee with supporting documentation on the decisions to be made by 
the responsible Program AA.

                     408  Steering Committee Review

    1. The most important role of the Steering Committee is to provide a 
substantive review of a potential payload or program of investigations 
and to recommend a selection to the Program AA. The Steering Committee 
applies the collective experience of representatives from the program 
and discipline communities and offers a forum for discussing the 
selection from those points of view. In addition to this mission-
specific evaluation function, the Steering Committee provides guidance 
to subcommittee chairpersons and serves as a clearinghouse for problems 
and complaints regarding the process. The Steering Committee is 
responsible for assuring adherence to required procedures. Lastly, it is 
the forum where discipline objectives are weighed against program 
objectives and constraints.
    2. The Steering Committee represents the means for exercising three 
responsibilities in the process of selecting investigations to:
    a. Review compliance with procedures governing application of the AO 
process.
    b. Ensure that adequate documentation has been made of the steps in 
the evaluation process.
    c. Review the results of the evaluation by the subcommittee, 
Project, and Program Offices and prepare an assessment or endorsement of 
a recommended payload or program of investigations to the Program AA.
    3. The purpose in exercising the first of these responsibilities is 
to ensure equity and consistency in the application of the process. The 
Steering Committee is intended to provide the necessary reviews and 
coordination inherent in conventional acquisition practices.
    4. The second and third responsibilities of the Steering Committee 
are technical. They require that the Steering Committee review the 
evaluations by subcommittee, the Project Office, and the Program Office 
for completeness and appropriateness before forwarding to the Program 
AA. Most important in this review are:
    a. Degree to which results of evaluations and recommendations follow 
logically from the criteria in the AO.

[[Page 485]]

    b. Consistency with objectives and policies generally beyond the 
scope of Project/Program Offices.
    c. Sufficiency of reasons stated for tentative recommendations of 
those investigations requiring further instrument research and 
development.
    d. Sufficiency of reasons stated for determining responsibilities 
for instrument development.
    e. Sufficiency of consideration of reusable space flight hardware 
and support equipment for the recommended investigations.
    f. Sufficiency of reasons for classifying proposed investigations in 
their respective categories.
    g. Fair treatment of all proposals.
    5. The Steering Committee makes recommendations to the selection 
official on the payload or program of investigations and notes caveats 
or provisions important for consideration of the selection official.

                        409  Principles to Apply

    1. Paragraph 408 contains a description of the evaluation function 
appropriate for a major payload or very significant program of 
investigation. The levels of review, evaluation, and refinement 
described should be applied in those selections where warranted but 
could be varied for less significant selection situations. It is 
essential to consider the principles of the several evaluative steps, 
but it may not be essential to maintain strict adherence to the sequence 
and structure of the evaluation system described. The selection official 
is responsible for determining the evaluation process most appropriate 
for the selection situation using this Chapter as a guide.
    2. Significant deviations from the provisions of this Handbook must 
be fully documented and be approved by the Program AA after concurrence 
by the Office of General Counsel and Office of Procurement.

                    Chapter 5--The Selection Process

                              500  General

    The Program AA is responsible for selecting investigations for 
contract negotiation. This decision culminates the evaluations and 
processes that can be summarized as follows:

------------------------------------------------------------------------
      Evaluation stage         Principal emphasis          Results      
------------------------------------------------------------------------
Contractor (when authorized)  Summary evaluation    Report to           
                               (strengths and        Subcommittee.      
                               weaknesses.                              
Subcommittee................  Science and           Categorization of   
                               technological         individual         
                               relevance, value,     proposals.         
                               and feasibility.                         
Project Office..............  Engineering/cost/     Reports to          
                               integration/          Subcommittee and   
                               management            Program Office.    
                               assessment.                              
Program Office..............  Consistency with      Recommendations to  
                               announcement and      Steering Committee 
                               program objectives,   of payload or      
                               and cost and          program of         
                               schedule              investigations.    
                               constraints.                             
Steering Committee..........  Logic of proposed     Recommendations to  
                               selections and        Program Associate  
                               compliance with       Administrator.     
                               proper procedures.                       
------------------------------------------------------------------------

                        501  Decisions To Be Made

    1. The selection decisions by the Program AA constitute management 
judgments balancing individual and aggregate scientific or technological 
merit, the contribution of the recommended investigations to the AO's 
objectives, and their consonance with budget constraints. The selection 
official may develop additional data to make the following decisions:
    a. Determination of the adequacy of scientific/technical analysis 
supporting the recommended selections. This supporting rationale should 
involve considerations including:
    (1) Assurance that the expected return contributes substantially to 
program objectives and is likely to be realized.
    (2) Assurance that the evaluation criteria were applied consistently 
to all proposed investigations.
    (3) Assurance that the set of recommended investigations constitutes 
the optimum program or payload considering potential value and 
constraints.
    (4) Assurance that only one investigator is assigned as the 
Principal Investigator to each investigation and that the Principal 
Investigator will assume the associated responsibilities and be the 
single point of contact and leader of any other investigators selected 
for the same investigation.
    b. Determination as to whether available returned space hardware or 
support equipment, with or without modification, would be adequate to 
meet or support investigation objectives.
    c. Determination as to whether the proposed instrument fabricator 
qualifies and should be accepted as a sole source or whether the 
requirement should be competitive procured. The following guidelines 
apply:
    (1) The hardware required should be subjected to competitive 
solicitation where it is clear that the capability is not sufficiently 
unique to justify sole source procurement.

[[Page 486]]

    (2) The hardware requirement should be purchased from the fabricator 
proposed by the investigator, which may be the investigator's own 
institution, (a) when the fabricator's proposal contains technical data 
that are not available from another source, and it is not feasible or 
practicable to define the fabrication requirement in such a way as to 
avoid the necessity of using the technical data contained in the 
proposal; (b) when the fabricator offers unique capabilities that are 
not available from another source; (c) when the selection official 
determines that the proposed hardware contributes so significantly to 
the value of the investigator's proposal as to be an integral part of 
it.
    (3) If a producer other than the one proposed by the investigator 
offers unique capabilities to produce the hardware requirement, NASA may 
buy the hardware from the qualified fabricator.
    (4) If a NASA employee submits a proposal as a principal 
investigator, any requirement for hardware necessary to perform the 
investigation must either be competed by the installation procurement 
office or a justification must be written, synopsized, and approved in 
accordance with the requirements of FAR and the NFS.
    d. Determination of the desirability for tentative selection of 
investigations. This determination involves considerations including:
    (1) Assessment of the state of development of the investigative 
hardware, the cost and schedule for development in relation to the gain 
in potential benefits at the time of final selection.
    (2) Assurance that there is adequate definition of investigation 
hardware to allow parallel design of other project hardware.
    (3) Assurance that appropriate management procedures are contained 
in the project plan for reevaluation and final selection (or rejection) 
on an appropriate time scale.
    e. Determination of the acceptability of the proposer's management 
plan, including the proposed hardware development plan, and the 
necessity, if any, of negotiating modifications to that plan.
    2. In the process of making the above determinations described in 
subparagraph 1, the Program AA may request additional information or 
evaluations. In most instances, this information can be provided by the 
Program Office responsible for the mission, project, or program. 
However, the Program AA may reconvene the subcommittee or poll the 
members individually or provide for additional analysis or require 
additional data from evaluators or proposers as considered necessary to 
facilitate the Program AA's decision.

                      502  The Selection Statement

    Upon completion of deliberations, the responsible Program AA shall 
issue a selection statement. Ordinarily this statement will, upon 
request, be releasable to the public. As a minimum, the selection 
statement should include:
    1. The general and specific evaluation criteria and relative 
importance used for the selection.
    2. The categorizations provided by the subcommittee and the 
rationale for accepting or not accepting each Category I proposal and a 
succinct statement concerning the nonacceptance of all other proposals.
    3. A concise description of each investigation accepted including an 
indication as to whether the selection is a partial acceptance of a 
proposal and/or a joinder with other investigators.
    4. The role of the Principal Investigator with regard to hardware 
essential to the investigation and whether the Principal Investigator 
will be responsible for hardware acquisition and the basis therefor.
    5. An indication of the plan and acquisition using the regular 
procurement processes, if the Principal Investigator is not to acquire 
the hardware.
    6. A statement indicating whether the selection is final or 
tentative, recognizing the need for better definition of the 
investigation and its cost.
    7. A statement indicating use of Government-owned space flight 
hardware and/or support equipment.

                     503   Notification of Proposers

    1. It is essential that investigators whose proposals have no 
reasonable chance for selection be so apprised as soon as practicable. 
The responsible Program Office will, upon such determination, notify 
investigators of that fact with the major reason(s) why the proposals 
were so considered. The notification letter should also inform such 
investigators that they may obtain a detailed oral debriefing provided 
they request it in writing. The letter should point out that such a 
debriefing would be available only after completion of the selection 
process and would otherwise be conducted in accordance with the NASA FAR 
Supplement. (See paragraph 504.)
    2. Letters of notification will be sent to those Principal 
Investigators selected to participate. This letter should not commit the 
agency to more than negotiations for the selected investigation, but it 
should indicate the decision made and contain:
    a. A concise description of the Principal Investigator's 
investigation as selected, noting substantive changes, if any, from the 
investigation originally proposed by the Principal Investigator.
    b. The nature of the selection, i.e., whether it should be 
considered final or tentative requiring additional hardware or cost 
definition.

[[Page 487]]

    c. A description of the role of the Principal Investigator including 
the responsibility for the provision of instruments for flight 
experiments.
    d. Identification of the principal technical and management points 
to be treated in subsequent negotiations.
    e. Any rights to be granted on use of data, publishing of data, and 
duration of use of the data.
    f. Where applicable, indication that a foreign selectee's 
participation in the program will be arranged between the International 
Affairs Division, Office of External Relations, and the foreign 
government agency which endorsed the proposal.
    3. In conjunction with the notification of successful foreign 
proposers, the Program Office shall forward a letter to the responsible 
International Affairs Division, Office of External Relations, addressing 
the following:
    a. The scientific technological objective of the effort.
    b. The period of time for the effort.
    c. The responsibilities of NASA and of the sponsoring governmental 
agency; these may include:
    (1) Provision and disposition of hardware and software.
    (2) Responsibilities for reporting, reduction and dissemination of 
data.
    (3) Responsibilities for transportation of hardware.
    d. Any additional information pertinent to the conduct of the 
experiment.
    4. Using the information provided above, the International Affairs 
Division, Office of External Relations will negotiate an agreement with 
the sponsoring foreign agency.
    5. Notices shall also be sent to those proposers not notified 
pursuant to the preceding paragraphs, and, as applicable, a copy to the 
sponsoring foreign government agency. It is important that these 
remaining proposers be informed at the same time as those selected. 
Other agency notifications and press release procedures will apply, as 
appropriate.

                             504  Debriefing

    It is the policy to debrief, if requested, unsuccessful proposers of 
investigations in accordance with NFS 1815.1004. The following 
considerations are offered in arranging and conducting debriefings:
    1. Debriefing should be done by an official designated by the 
responsible Program AA. Any other personnel receiving requests for 
information concerning the rejection of a proposal should refer to the 
designated official.
    2. Debriefing of unsuccessful offerors should be made at the 
earliest possible time; debriefing will generally be scheduled 
subsequent to selection but prior to award of contracts to the 
successful proposers.
    3. Material discussed in debriefing should be factual and consonant 
with the documented findings of several stages of the evaluation process 
and the selection statement.
    4. The debriefing official should advise of weak or deficient areas 
in the proposal, indicate whether those weaknesses were factors in the 
selection, and advise of the major considerations in selecting the 
competing successful proposer where appropriate.
    5. The debriefing official should not discuss other unsuccessful 
proposals, ranking, votes of members, or attempt to make a point-by-
point comparison with successful proposals.
    6. A memorandum of record of the debriefing should be provided the 
Chairperson of the Steering Committee.

                     Chapter 6--Payload Formulation

                        600  Payload Formulation

    1. Payload elements for Space Transportation System (STS) missions 
can come from many sources. These include those selected through AOs, 
those generated by in-house research, unsolicited proposals and those 
derived from agreements between NASA and external entities. However, it 
is anticipated that the primary source of NASA payload elements will be 
the AO process. Generally, proposals for payload elements submitted 
outside the AO process will not be selected if they would have been 
responsive to an AO objective.
    2. Payload elements for STS flights fall into two major categories. 
``NASA or NASA-related'' payload elements are those which are developed 
by a NASA Program Office or by another party with which NASA has a 
shared interest. ``Non-NASA'' payload elements are those which require 
only STS operation services from NASA and interface with NASA through 
the Office of Space Flight.
    3. In general, a Program Office will be designated responsibility 
for formulating the ``NASA or NASA-related'' portion of an STS payload. 
The Office of Space Flight will be responsible for formulating the 
``non-NASA'' portion of an STS payload. Flights may, of course, consist 
wholly of payload elements of either type. Resource allocation for mixed 
missions will be determined by the Program Office and the Office of 
Space Flight.

             Chapter 7--Procurement and Other Considerations

                    700  Early Involvement Essential

    1. The distinctive feature of the AO process is that it is both a 
program planning system and a procurement system in one procedure. The 
choice of what aeronautical and space phenomena to investigate is 
program planning. Procurement is involved with the purchase of property 
and services to carry out the selected investigations.
    2. Because of both the programmatic and multi-functional aspects of 
the AO process,

[[Page 488]]

early involvement of external program office elements is essential. 
Success of the process requires that it proceed in a manner that meets 
program goals and complies with statutory requirements and procurement 
policy.
    3. The planning, preparation and selection schedule for the 
investigation should commence early enough to meet statutory and 
regulatory requirements. Chief of these are the requirements for 
soliciting maximum feasible competition and for conducting discussions 
with offerors within the competitive range by the Project Office and/or 
any other evaluation group or office authorized by the selection 
official.

            701  Negotiation, Discussions, and Contract Award

    Indicated below are some of the major procurement procedures that 
need to be accomplished to assure uniformity and sufficiency in the 
acquisition of investigations. These areas are not exclusive and not 
intended to substitute for coordination and good judgment before 
issuance of the AO, during evaluation of proposals, and prior to 
contract award.
    1. As negotiated procurements must be made by soliciting proposals 
from the maximum number of qualified sources consistent with the 
requirement, the AO must also be synopsized in the Commerce Business 
Daily. Responses to the synopsis must be added to the AO mailing list. 
Every effort should be made to publish opportunities far enough in 
advance to encourage a broad response. (In no case less than 45 days 
before the date set for receipt of proposals).
    2. Significant items for consideration after receipt of proposals:
    a. Late Proposals--The policy on late proposals contained in the NFS 
1815.412 is applicable. Potential investigators should be informed of 
this policy. In the AO context, the selection official or designee will 
determine whether a late proposal will be considered.

                      b. Competitive Considerations

    (1) The proposals submitted in response to the AOs are not 
necessarily fully comparable. However, all proposals within the scope of 
an opportunity must be evaluated in accordance with the criteria in the 
AO.
    (2) Cost must be considered in the evaluation if costs are involved 
in the investigation. General cost information should be given to the 
subcommittee by the Installation Project Office for use in determining 
the categories into which the subcommittee places proposals.
    (3) Further information should be obtained, as necessary, by the 
Installation Project Office and/or any other evaluation group authorized 
by the selection official and from the investigators whose proposals are 
being considered. This is similar to the procurement procedure for 
conducting written and oral discussions. A major consideration during 
discussions is to avoid unfairness and unequal treatment. Good judgment 
is required by in the extent and content of the discussions. There 
should be no reluctance in obtaining the advice and guidance of 
management and staff offices during the discussion phase. A summary 
should be prepared of the primary points covered in the written and oral 
discussions and show the effect of the discussions on the evaluation of 
proposals. This summary should also contain general information about 
the questions submitted to the investigators, the amount of time spent 
in oral discussion, and revisions in proposals, if any, resulting from 
the discussions.
    (4) During the conduct of discussions, all proposers being 
considered shall be offered an equitable opportunity to submit cost, 
technical, or other revisions in their proposals as may result from the 
discussions. All proposers shall be informed that any revisions to their 
proposals must be submitted by a common cut-off date in order to be 
considered. The record should note compliance of the investigators with 
that cut-off date.
    3. Significant items for consideration before award:
    a. Issuance of a Request for Proposal (RFP)--A formal RFP should not 
be issued to obtain additional information on proposals accepted under 
the AO process. Additional technical, cost, or other data received 
should be considered as a supplement to the original proposal.
    b. Selection of Investigator/Contractor--The selection decision of 
the Program AA approves the selected investigators and their 
institutions as the only satisfactory sources for the investigations. 
The selection of the investigator does not constitute the selection of 
that person's proposed supporting hardware fabricator unless the 
selection official specifically incorporates the fabricator in the 
selection decision.

  702  Application of the Federal Acquisition Regulation (FAR) and the 
                        NASA FAR Supplement (NFS)

    The AO process supplants normal procurement procedures only to the 
extent necessary to meet the distinctive features of the process. This 
process is not intended to conflict with any established statutory 
requirements. The FAR, the NFS, and related procurement directives 
should be used for guidance in those instances where instructions are 
not in this Handbook.

          703  Other Administrative and Functional Requirements

    After selection, all other applicable administrative and functional 
requirements will be

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complied with or incorporated in any resultant contract. These may 
include requirements contained in such publications as NHB 5300.4(1B), 
``Quality Program Provisions for Aeronautical and Space System 
Contractors,'' and NHB 9501.2, ``Procedures for Contractor Reporting of 
Correlated Cost and Performance Data.''

         Appendix A: Format of Announcement of Opportunity (AO)

                      OMB Approval Number 2700-0085

   NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, Washington, DC 20546

                       ANNOUNCEMENT OF OPPORTUNITY

AO No. ________ (Issuance Date)

                          (Descriptive Heading)

                    I. Description of the Opportunity

    This section should set forth the basic purpose of the AO and 
describe the opportunity in terms of NASA's desire to obtain proposals 
which will meet the stated scientific, applications and/or technological 
objectives. These objectives may be directed to the generation of 
proposals for investigations and/or they may pertain to the acquisition 
of dissimilar ideas leading to selection of investigators, guest 
observers, guest investigators, or theorists; and/or any other approved 
area as identified in NHB 8030.6. In those instances where proposals for 
investigations are sought, this section should describe the requirement, 
if any, for selected investigators to serve on advisory or working 
groups. In those instances where the project or program has not yet been 
approved, an qualifying statement should be included to indicate that 
this AO does not constitute an obligation for the Government to carry 
the effort to completion.

                            II. AO Objectives

    This section will give a succinct statement of the specific 
scientific, applications, and/or technological objective(s) for the 
opportunity(s) for which proposals are sought.

                             III. Background

    This section should provide an explanation of the context of the 
opportunity, i.e., information which will help the reader understand the 
relevance of the opportunity.

                     IV. Proposal Opportunity Period

    This section should provide the proposal opportunity period(s). The 
following methods may be used individually or in conjunction for 
establishing the proposal opportunity period(s):
    1. The AO may be issued establishing a single date by which 
proposals may be received. However, the AO could provide that the agency 
may amend the AO to provide for subsequent dates for submission of 
proposals, if additional investigations are desired.
    2. The AO may be issued to provide for an initial submission date 
with the AO to remain open for submission of additional proposals up to 
a final cutoff date. This final date should be related to the 
availability of resources necessary to evaluate the continuous flow of 
proposals and the time remaining prior to the flight opportunities 
contemplated by the AO.
    3. The AO may be issued establishing a number of dates by which 
proposals may be received. Normally no more than three proposal 
submission dates should be established. The submittal dates may be 
spread over the number of months most compatible with the possible 
flight opportunities and the availability of resources necessary to 
evaluate and fund the proposal. If desired, this section should further 
inform the reader that if a proposal receives a Category I, II, or III 
rating but is not selected for immediate support, the proposal may, if 
desired by the proposer, be held by NASA for later consideration within 
the ground rules set forth in paragraphs 1 and 2. The section should 
inform the reader that if the person wishes the proposal to be so 
treated, it should be indicated in the proposal. This section should 
further indicate that offerors whose proposals are to be considered at a 
later time will be given the opportunity to revalidate their proposals 
with their institution and update cost data.

                     V. Requirements and Constraints

    1. This section will include technical, programmatic, cost, and 
schedule requirements or constraints, as applicable, and will specify 
performance limits such as lifetime, flight environment, safety, 
reliability, and quality assurance provisions for flight-worthiness. It 
will specify the requirements and constraints related to the flight crew 
and the ground support. It will also include requirements for data 
analysis, estimated schedule of data shipment to user or observer, need 
for preliminary or raw data analysis and interim reports. It will 
specify planned period (time) for data analysis to be used for 
budgeting. It will provide any additional information necessary for a 
meaningful proposal.
    2. When NASA determines that instrumentation, ground support 
equipment, or NASA supporting effort will be required or may be expected 
to be required by the contemplated investigations, the AO should 
indicate to the potential investigators that they must submit specific 
information regarding this requirement to allow an in-depth evaluation 
of the technical aspects, cost, management, and other factors by the 
Installation Project Office.

[[Page 490]]

                   VI. Proposal Submission Information

    1. Preproposal Activities--In this section, the AO will indicate 
requirements and activities such as the following:
    a. Submittal of ``Notice of Intent'' to propose (if desired), date 
for submission, and any additional required data to be submitted. 
Indicate whether there are information packages which will only be sent 
to those who submit ``Notice of Intent.''
    b. Attendance at the preproposal conference (if held). Information 
should be provided as to time, place, whether attendance will be 
restricted in number from each institution, and whether prior notice of 
intention to attend is required. If desired, a request may be included 
that questions be submitted in writing several days before the 
conference in order to prepare replies.
    c. The name and address of the scientific or technical contact for 
questions or inquiries.
    d. Any other preproposal data considered necessary.
    2. Format of Proposals--This section should provide the investigator 
with the information necessary to enable an effective evaluation of the 
proposal. The information is as follows:
    a. Proposal--The AO should indicate how the proposal should be 
submitted to facilitate evaluation. The proposal should be submitted in 
at least two sections; (1) Investigation and Technical Section; and (2) 
Management and Cost Section.
    b. Certification--The proposal must be signed by an institutional 
official authorized to certify institutional support, sponsorship of the 
investigation, management, and financial aspects of the proposal.
    c. Quantity--The number of copies of the proposal should be 
specified. One copy should be clear black and white, and on white paper 
of quality suitable for reproduction.
    d. Submittal Address--Proposals from domestic sources should be 
mailed to arrive not later than the time indicated for receipt of 
proposals to:

National Aeronautics and Space Administration Office of (Program)
Code ______ AO No. ______
Washington, DC 20546

    e. Format--To aid in proposal evaluation, and to facilitate 
comparative analysis, a uniform proposal format will be required for 
each AO. The number of pages, page size, and restriction on photo 
reduction, etc., may be included. The format contained in Appendix C can 
be used as a guide. Proposers may be requested to respond to all of the 
items or the AO may indicate that only selected items need be addressed. 
Using the Appendix format as a guide, specific guidelines may be 
prepared for the AO or an appropriate form developed.
    3. Additional Information--This section may be used to request or 
furnish data necessary to obtain clear proposals that should not require 
further discussions with the proposer by the evaluators. Other pertinent 
data could also be included, such as significant milestones.
    4. Foreign Proposals--The procedures for submission of proposals 
from outside the U.S. are contained in Appendix B, ``General 
Instructions and Provisions.'' This section will describe any additional 
requirements, for example, if information copies of proposals are 
required to be furnished by the proposer to other organizations at the 
same time the proposal is submitted.
    5. Cost Proposals (U.S. Investigators Only)--This section defines 
any special requirements regarding cost proposals of domestic 
investigators. Reference then should be made to the cost proposal 
certifications indicated in Appendix B, ``General Instructions and 
Provisions.''

         VII. Proposal Evaluation, Selection, and Implementation

                  1. Evaluation and Selection Procedure

    a. This section should notify the proposers of the evaluation 
process.
    b. For example, a statement similar to the following should be 
included: ``Proposals received in response to this AO will be reviewed 
by a subcommittee appointed by the (appropriate Program AA). The purpose 
of the review is to determine the scientific/technical merit of the 
proposals in the context of this AO and so categorize the proposals. 
Those proposals which are considered to have the greatest scientific/
technical merit are further reviewed for engineering, integration, 
management, and cost aspects by the Project Office at the installation 
responsible for the project. On the basis of these reviews, and the 
reviews of the responsible Program Office and the Steering Committee, 
the (appropriate Program Associate Administrator) will appoint/select 
the investigators/ investigations.''

                         2. Evaluation Criteria

    a. This section should indicate that the selection of proposals 
which best meet the specific scientific, applications, and/or 
technological objectives, stated in the AO, is the aim of the 
solicitation. This section should list the criteria to be used in the 
evaluation of proposals and indicate their relative importance. See 
paragraph 401, NHB 8030.6, for a listing of criteria generally 
appropriate.
    b. This section will also inform the proposers that cost and 
management factors, e.g., proposed small business participation in 
instrumentation fabrication or investigation support, will be separately 
considered.

[[Page 491]]

                             VIII. Schedule

    This section should include the following, as applicable:
    1. Preproposal conference date.
    2. Notice of Intent submittal date.
    3. Proposal submittal date(s).
    4. Target date for announcement of selections.

                             IX. Appendices

    1. General Instructions and Provisions (must be attached to each 
AO).
    2. Other Pertinent Data, e.g., Spacelab Accommodations Data.

/s/ Associate Administrator for (Program)

                           Appendix B: General

                       Instructions and Provisions

               I. Instrumentation and/or Ground Equipment

    By submitting a proposal, the investigator and institution agree 
that NASA has the option to accept all or part of the offeror's plan to 
provide the instrumentation or ground support equipment required for the 
investigation or NASA may furnish or obtain such instrumentation or 
equipment from any other source as determined by the selecting official. 
In addition, NASA reserves the right to require use, by the selected 
investigator, of Government instrumentation or property that becomes 
available, with or without modification, that will meet the 
investigative objectives.

 II. Tentative Selections, Phased Development, Partial Selections, and 
                        Participation with Others

    By submitting a proposal, the investigator and the organization 
agree that NASA has the option to make a tentative selection pending a 
successful feasibility or definition effort. NASA has the option to 
contract in phases for a proposed experiment, and to discontinue the 
investigative effort at the completion of any phase. The investigator 
should also understand that NASA may desire to select only a portion of 
the proposed investigation and/or that NASA may desire the individual's 
participation with other investigators in a joint investigation, in 
which case the investigator will be given the opportunity to accept or 
decline such partial acceptance or participation with other 
investigators prior to a selection. Where participation with other 
investigators as a team is agreed to, one of the team members will 
normally be designated as its team leader or contact point.

                    III. Selection Without Discussion

    The Government reserves the right to reject any or all proposals 
received in response to this AO when such action shall be considered in 
the best interest of the Government. Notice is also given of the 
possibility that any selection may be made without discussion (other 
than discussions conducted for the purpose of minor clarification). It 
is therefore emphasized that all proposals should be submitted initially 
on the most favorable terms that the offeror can submit.

                          IV. Foreign Proposals

    See Appendix C, Section II, para. 3.

                      V. Treatment of Proposal Data

    It is NASA policy to use information contained in proposals and 
quotations for evaluation purposes only. While this policy does not 
require that the proposal or quotation bear a restrictive notice, 
offerors or quoters should place the following notice on the title page 
of the proposal or quotation and specify the information, subject to the 
notice by inserting appropriate identification, such as page numbers, in 
the notice. Information (data) contained in proposals and quotations 
will be protected to the extent permitted by law, but NASA assumes no 
liability for use and disclosure of information not made subject to the 
notice.

Restriction on Use and Disclosure of Proposal and Quotation Information 
                                 (Data)

    The information (data) contained in [insert page numbers or other 
identification] of this proposal or quotation constitutes a trade secret 
and/or information that is commercial or financial and confidential or 
privileged. It is furnished to the Government in confidence with the 
understanding that it will not, without permission of the offeror, be 
used or disclosed for other than evaluation purposes; provided, however, 
that in the event a contract is awarded on the basis of this proposal or 
quotation the Government shall have the right to use and disclose this 
information (data) to the extent provided in the contract. This 
restriction does not limit the Government's right to use or disclose 
this information (data) if obtained from another source without 
restriction.

           VI. Status of Cost Proposals (U.S. Proposals Only)

    The Investigator's institution agrees that the cost proposal is for 
proposal evaluation and selection purposes, and that following selection 
and during negotiations leading to a definitive contract, the 
institution will be required to resubmit or execute a Standard Form (SF) 
Form 1411 ``Contract Pricing Proposal Cover Sheet (Cost or Pricing Data 
Required)'' and certifications and representations required by law and 
regulation.

[[Page 492]]

                           VII. Late Proposals

    The Government reserves the right to consider proposals or 
modifications thereof received after the date indicated, should such 
action be in the interest of the Government.

       VIII. Source of Space Transportation System Investigations

    Investigators are advised that candidate investigations for Space 
Transportation System (STS) missions can come from many sources.

             IX. Disclosure of Proposals Outside Government

    NASA may find it necessary to obtain proposal evaluation assistance 
outside the Government. Where NASA determines it is necessary to 
disclose a proposal outside the Government for evaluation purposes, 
arrangements will be made with the evaluator for appropriate handling of 
the proposal information. Therefore, by submitting a proposal the 
investigator and institution agree that NASA may have the proposal 
evaluated outside the Government. If the investigator or institution 
desire to preclude NASA from using an outside evaluation, the 
investigator or institution should so indicate on the cover. However, 
notice is given that if NASA is precluded from using outside evaluation, 
it may be unable to consider the proposal.

               X. Equal Opportunity (U.S. Proposals Only)

    By submitting a proposal, the investigator and institution agree to 
accept the following clause in any resulting contract:

                            Equal Opportunity

    During the performance of this contract, the Contractor agrees as 
follows:
    1. The Contractor will not discriminate against any employee or 
applicant for employment because of race, color, religion, sex, or 
national origin.
    2. The Contractor will take affirmative action to ensure that 
applicants are employed, and that employees are treated during 
employment without regard to their race, color, religion, sex, or 
national origin. This shall include, but not be limited to, (a) 
employment, (b) upgrading, (c) demotion, (d) transfer, (e) recruitment 
or recruitment advertising, (f) layoff or termination, (g) rates of pay 
or other forms of compensation, and (h) selection for training, 
including apprenticeship.
    3. The Contractor shall post in conspicuous places available to 
employees and applicants for employment the notices to be provided by 
the Contracting Officer that explain this clause.
    4. The Contractor shall, in all solicitations or advertisements for 
employees placed by or on behalf of the Contractor, state that all 
qualified applicants will receive consideration for employment without 
regard to race, color, religion, sex, or national origin.
    5. The Contractor shall send to each labor union or representative 
of workers with which it has a collective bargaining agreement or other 
contract or understanding the notice to be provided by the Contracting 
Officer, advising the labor union or workers' representative of the 
Contractor's commitments under this clause, and post copies of the 
notice in conspicuous places available to employees and applicants for 
employment.
    6. The Contractor shall comply with Executive Order 11246, as 
amended, and the rules, regulations, and orders of the Secretary of 
Labor.
    7. The Contractor shall furnish to the contracting agency all 
information required by Executive Order 11246, as amended, and by the 
rules, regulations, and orders of the Secretary of Labor. Standard Form 
100 (EEO-1), or any successor form, is the prescribed form to be filed 
within 30 days following the award, unless filed within 12 months 
preceding the date of award.
    8. The Contractor shall permit access to its books, records, and 
accounts by the contracting agency or the Office of Federal Contract 
Compliance Programs (OFCCP) for the purposes of investigation to 
ascertain the Contractor's compliance with the applicable rules, 
regulations, and orders.
    9. If the OFCCP determines that the Contractor is not in compliance 
with this clause or any rule, regulation, or order of the Secretary of 
Labor, the contract may be canceled, terminated, or suspended in whole 
or in part, and the Contractor may be declared ineligible for further 
Government contracts, under the procedures authorized in Executive Order 
11246, as amended. In addition, sanctions may be imposed and remedies 
invoked against the Contractor as provided in Executive Order 11246, as 
amended, the rules, regulations, and orders of the Secretary of Labor, 
or as otherwise provided by law.
    10. The Contractor shall include the terms and conditions of 
subparagraph 1 through 9 of this clause in every subcontract or purchase 
order that is not exempted by the rules, regulations, or orders of the 
Secretary of Labor issued under Executive Order 11246, as amended, so 
that these terms and conditions will be binding upon each subcontractor 
or vendor.
    11. The Contractor shall take such action with respect to any 
subcontract or purchase order as the contracting agency may direct as 
means of enforcing these terms and conditions, including sanctions for 
non-compliance; provided, that if the Contractor becomes involved in, or 
is threatened with, litigation with a subcontractor or vendor as a 
result of direction, the Contractor may request the United States to 
enter into the

[[Page 493]]

litigation to protect the interests of the United States.

                            XI. Patent Rights

    1. For any contract resulting from this solicitation awarded to 
other than a small business firm or nonprofit organization, the clause 
at NFS 1852.227-70, ``New Technology,'' shall apply. Such contractors 
may, in advance of contract, request waiver of rights as set forth in 
the provision at NFS 1852.227-71, ``Requests for Waiver of Rights to 
Inventions.''
    2. For any contract resulting from this solicitation awarded to a 
small business firm or nonprofit organization, the clause at FAR 52.227-
11, ``Patent Rights--Retention by the Contractor (Short Form)'' (as 
modified by NFS 1852.227-11), shall apply.

             Appendix C: Guidelines for Proposal Preparation

    The following guidelines apply to the preparation of proposals in 
response to an AO. The material is a guide for the proposer and not 
intended to be encompassing or directly applicable to the various types 
of proposals which can be submitted. The proposer should provide 
information relative to those items applicable or as required by the AO.

                             I. Cover Letter

    A letter or cover page should be forwarded with the proposal signed 
by the investigator and an official by title of the investigator's 
organization who is authorized to commit the organization responsible 
for the proposal.

                          II. Table of Contents

    The proposal should contain a table of contents.

                      III. Identifying Information

    The proposal should contain a short descriptive title for the 
investigation, the names of all investigators, the name of the 
organization or institution and the full name, address, and telephone 
number of the Principal Investigator.

               SECTION I--INVESTIGATION AND TECHNICAL PLAN

                   1. Investigation and Technical Plan

    The investigation and technical plan generally will contain the 
following:
    a. Summary. A concise statement about the investigation, its 
conduct, and the anticipated results.
    b. Objective and Significant Aspects. A brief definition of the 
objectives, their value, and their relationships to past, current, and 
future effort. The history and basis for the proposal and a 
demonstration of the need for such an investigation. A statement of 
present development in the discipline field.
    c. Investigation Approach
    (1) Fully describe the concept of the investigation.
    (2) Detail the method and procedures for carrying out the 
investigation.

                           2. Instrumentation

    This section should describe all information necessary to plan for 
experiment development, integration, ground operations, and flight 
operations. This section must be complete in itself without need to 
request additional data. Failure to furnish complete data may preclude 
evaluation of the proposal.
    a. Instrument Description--This section should fully describe the 
instrumentation and indicate items which are proposed to be developed as 
well as any existing instrumentation. Performance characteristics should 
be related to the experiment objectives as stated in the proposal.
    b. Instrument Integration--This section should describe all 
parameters of the instrument pertinent to the accommodation of the 
instrument in the spacecraft, Spacelab, Shuttle Orbiter, Space Station, 
etc. These include, but are not limited to, volumetric envelope; weight; 
power requirements; thermal requirements; telemetry requirement; 
sensitivity to or generation of contamination (e.g., EMI gaseous 
effluent); data processing requirements.
    c. Ground Operations--This section should identify requirements for 
pre-launch or post-launch ground operations support.
    d. Flight Operations--This section should identify any requirements 
for flight operations support including mission planning. Operational 
constraints, viewing requirements, and pointing requirements should also 
be identified. Details of communications needs, tracking needs, and 
special techniques, such as extravehicular activity or restrictions in 
the use of control thrusters at stated times should be delineated. 
Special communications facilities that are needed must be described. Any 
special orbital requirements, such as time of month, of day, phase of 
moon, and lighting conditions are to be given in detail. Describe real-
time ground support requirements and indicate any special equipment or 
skills required of ground personnel.

                     3. Data Reduction and Analysis

    A discussion of the data reduction and analysis plan including the 
method and format. A section of the plan should include a schedule for 
the submission of reduced data to the receiving point. In the case of 
Space Science programs, the National Space Science Data Center, 
Greenbelt, MD, will be

[[Page 494]]

the repository for such data and the Department of the Interior, Sioux 
Falls, SD, for earth observations data.

     4. Orbiter Crew and/or Payload Specialist Training Requirement

    A description of the tasks required of each crew member (Commander, 
Pilot, Mission Specialist) or payload specialist should be provided, 
including the task duration and equipment involved. Indicate special 
training necessary to provide the crew members or payload specialist(s) 
with the capability for performing the aforementioned tasks.

                SECTION II--MANAGEMENT PLAN AND COST PLAN

                           A. Management Plan

    The management plan should summarize the management approach and the 
facilities and equipment required. Additional guidelines applicable to 
non-U.S. proposers are contained herein:

                              1. Management

    a. The management plan sets forth the approach for managing the 
work, the recognition of essential management functions, and the overall 
integration of these functions.
    b. The management plan gives insight into the organization proposed 
for the work, including the internal operations and lines of authority 
with delegations, together with internal interfaces and relationships 
with the NASA major subcontractors and associated investigators. 
Likewise, the management plan usually reflects various schedules 
necessary for the logical and timely pursuit of the work accompanied by 
a description of the investigator's work plan and the responsibilities 
of the co-investigators.
    c. The plan should describe the proposed method of instrument 
acquisition. It should include the following, as applicable.
    (1) Rationale for the investigator to obtain the instrument through 
or by the investigator's institution.
    (2) Method and basis for the selection of the instrument fabricator.
    (3) Unique capabilities of the instrument fabricator that are not 
available from any other source.
    (4) Characteristics of the proposed fabricator's instrument that 
make it an inseparable part of the investigation.
    (5) Availability of personnel to administer the instrument contract 
and technically monitor the fabrication.
    (6) Status of development of the instrument.
    (7) Method by which the investigator proposes to:
    (a) Prepare instrument specifications.
    (b) Review development progress.
    (c) Review design and fabrication changes.
    (d) Participate in testing program.
    (e) Participate in final checkout and calibration.
    (f) Provide for integration of instrument.
    (g) Support the flight operations.
    (h) Coordinate with co-investigators, other related investigations, 
and the payload integrator.
    (i) Assure safety, reliability, and quality.
    (j) Provide required support for Payload Specialist(s), if 
applicable.
    (8) Planned participation by small and/or minority business in any 
subcontracting for instrument fabrication or investigative support 
functions.

                       2. Facilities and Equipment

    All major facilities, laboratory equipment, and ground-support 
equipment (GSE) (including those of the investigator's proposed 
contractors and those of NASA and other U.S. Government agencies) 
essential to the experiment in terms of its system and subsystems are to 
be indicated, distinguishing insofar as possible between those already 
in existence and those that will be developed in order to execute the 
investigation. The outline of new facilities and equipment should also 
indicate the lead time involved and the planned schedule for 
construction, modification, and/or acquisition of the facilities.

      3. Additional Guidelines Applicable to Non-U.S Proposers Only

    The following guidelines are established for foreign responses to 
NASA's AO. Unless otherwise indicated in a specific announcement, these 
guidelines indicate the appropriate measures to be taken by foreign 
proposers, prospective foreign sponsoring agencies, and NASA leading to 
the selection of a proposal and execution of appropriate arrangements. 
They include the following:
    a. Where a ``Notice of Intent'' to propose is requested, prospective 
foreign proposers should write directly to the NASA official designated 
in the AO and send a copy of this letter to the International Relations 
Division, Office of External Relations, Code IR, NASA, Washington, DC 
20546, U.S.A.
    b. Unless otherwise indicated in the AO, proposals will be submitted 
in accordance with this Appendix excluding cost plans. Proposals should 
be typewritten and written in English.
    c. Persons planning to submit a proposal should arrange with an 
appropriate foreign governmental agency for a review and endorsement of 
the proposed activity. Such endorsement by a foreign organization 
indicates that the proposal merits careful consideration by NASA and 
that, if the proposal is selected, sufficient funds will be available to 
undertake the activity envisioned.
    d. Proposals including the requested number of copies and letters of 
endorsement from

[[Page 495]]

the foreign governmental agency must be forwarded to NASA in time to 
arrive before the deadline established for each AO. These documents 
should be sent to:

National Aeronautics and Space Administration
International Relations Division
Code IR
Office of External Relations
Washington, DC 20546
U.S.A.

    e. Those proposals received after the closing date will be treated 
in accordance with NASA's provisions for late proposals. Sponsoring 
foreign government agencies may, in exceptional situations, forward a 
proposal directly to the above address if review and endorsement is not 
possible before the announced closing date. In such cases, NASA should 
be advised when a decision on endorsement can be expected.
    f. Shortly after the deadline for each AO, NASA's International 
Relations Division will advise the appropriate sponsoring agency which 
proposals have been received and when the selection process should be 
completed. A copy of this acknowledgement will be provided to each 
proposer.
    g. Successful and unsuccessful proposers will be contacted directly 
by the NASA Program Office coordinating the AO. Copies of these letters 
will be sent to the sponsoring Government agency.
    h. NASA's International Relations Division will then begin making 
the arrangements to provide for the selectee's participation in the 
appropriate NASA program. Depending on the nature and extent of the 
proposed cooperation, these arrangements may entail:
    (1) A letter of notification by NASA.
    (2) An exchange of letters between NASA and the sponsoring foreign 
governmental agency.
    (3) An agreement or Memorandum of Understanding between NASA and the 
sponsoring foreign governmental agency.

                 B. Cost Plan (U.S. Investigations Only)

    The cost plan should summarize the total investigation cost by major 
categories of cost as well as by function.
    1. The categories of cost should include the following:
    a. Direct Labor--List by labor category, with labor hours and rates 
for each. Provide actual salaries of all personnel and the percentage of 
time each individual will devote to the effort.
    b. Overhead--Include indirect costs, which because of its incurrence 
for common or joint objectives, is not readily subject to treatment as a 
direct cost. Usually this is in the form of a percentage of the direct 
labor costs.
    c. Materials--This should give the total cost of the bill of 
materials including estimated cost of each major item. Include lead time 
of critical items.
    d. Subcontracts--List those over $25,000, specify the vendor and the 
basis for estimated costs. Include any baseline or supporting studies.
    e. Special Equipment--Include a list of special equipment with lead 
and/or development time.
    f. Travel--List estimated number of trips, destinations, duration, 
purpose, number of travelers, and anticipated dates.
    g. Other Costs--Costs not covered elsewhere.
    h. General and Administrative Expense--This includes the expenses of 
the institution's general and executive offices and other miscellaneous 
expenses related to the overall business.
    i. Fee (if applicable).
    2. Separate schedules, in the above format, should be attached to 
show total cost allocable to the following:
    a. Principal Investigator and other Investigators' costs.
    b. Instrument costs.
    c. Integration costs.
    d. Data reduction and analysis including the amount and cost of 
computer time.
    3. If the effort is sufficiently known and defined, a funding 
obligation plan should provide the proposed funding requirements of the 
investigations by quarter and/or annum keyed to the work schedule.

    Appendix D: Glossary of Terms and Abbreviations Associated with 
                             Investigations

    Advisory Committee Subcommittee--Any committee, board, commission, 
council, conference, panel, task force; or other similar group, or any 
subcommittee or other subgroup thereof, that is not wholly composed of 
full-time Federal Government employees, and that is established or 
utilized by NASA in the interest of obtaining advice or recommendations.
    Announcement of Opportunity (AO)--A document used to announce 
opportunities to participate in NASA programs. AOs are published in 
accordance with this Handbook.
    AO Process--A term used to describe the program planning and 
procurement procedure used to acquire investigative effort, initiated by 
an AO.
    Categorization--The process whereby proposed investigations are 
classified into four categories: synopsized here as Category I--
recommended for immediate acceptance; Category II--recommended for 
acceptance but at a lower priority than Category I proposals; Category 
III--sound investigations requiring further development; Category IV--
rejected.
    Co-Investigator (Co-I)--Associate of a Principal Investigator, 
responsible to the

[[Page 496]]

Principal Investigator for discrete portions or tasks of the 
investigation. A NASA employee can participate as a Co-I on an 
investigation proposed by a private organization.
    Data Users--Participants in NASA programs, selected to perform 
investigations utilizing data from NASA payloads or facilities.
    Experiments--Activities or effort aimed at the generation of data. 
NASA-sponsored experiments generally concern generation of data obtained 
through measurement of aeronautical and space phenomena or use of space 
to observe earth phenomena.
    Federal Acquisition Regulation (FAR)--The regulations governing the 
conduct of procurement.
    Flight--That portion of the mission encompassing the period from 
launch to landing or launch to termination of the active life of 
spacecraft. The term shuttle ``flight'' means a single shuttle round 
trip--its launch, orbital activity, and return; one flight might deliver 
more than one payload. More than one flight might be required to 
accomplish one mission.
    Flight Investigation--Investigation conducted utilizing aeronautical 
or space instrumentation.
    Flight Opportunity--A flight mission designed to accommodate one or 
more experiments or investigations.
    Guest Investigators--Investigators selected to conduct observations 
and obtain data within the capability of a NASA mission, which are 
additional to the mission's primary objectives. Sometimes referred to as 
Guest Observers.
    Investigation--Used interchangeably with ``Experiments.''
    Investigation Team--A group of investigators collaborating on a 
single investigation.
    Investigator--A participant in an investigation. May refer to the 
Principal Investigator, Co-Investigator, or member of an investigation 
team.
    Mission--The performance of a coherent set of investigations or 
operations in space to achieve program goals. (Example: Measure detailed 
structure of Sun's chromosphere; survey mineral resources of North 
America.)
    NASA FAR Supplement (NFS)--Procurement regulations promulgated by 
NASA in addition to the FAR.
    NHB--NASA Handbook.
    NMI--NASA Management Instruction.
    Notice of Intent--A notice or letter submitted by a potential 
investigator indicating the intent to submit a proposal in response to 
an AO.
    Payload--A specific complement of instruments, space equipment, and 
support hardware carried to space to accomplish a mission or discrete 
activity in space.
    Peer Group--A gathering of experts in related disciplinary areas 
convened as a subcommittee of the Program Office Steering Committee to 
review proposals for flight investigations.
    Peer Review--The process of proposal review utilizing a group of 
peers in accordance with the categorization criteria as outlined in this 
Handbook.
    Principal Investigator (PI)--A person who conceives an investigation 
and is responsible for carrying it out and reporting its results. A NASA 
employee can participate as a PI only on a government-proposed 
investigation.
    Program--An activity involving human resources, materials, funding, 
and scheduling necessary to achieve desired goals.
    Project--Within a program, an undertaking with a scheduled beginning 
and ending, which normally involves the design, construction, and 
operation of one or more aeronautical or space vehicles and necessary 
ground support in order to accomplish a scientific or technical 
objective.
    Project Office--An office generally established at a NASA field 
installation to manage a project.
    Selection Official--The NASA official designated to determine the 
source for award of a contract or grant.
    Space Facility--An instrument or series of instruments in space 
provided by NASA to satisfy a general objective or need.
    Steering Committee--A standing NASA sponsored committee providing 
advice to the Program Associate Administrators and providing procedural 
review over the investigation selection process. Composed wholly of 
full-time Federal Government employees.
    Study Office--An office established at a NASA field installation to 
manage a potential undertaking which has not yet developed into project 
status.
    Subcommittee--An arm of the Program Office Steering Committee 
consisting of experts in relevant disciplines to review and categorize 
proposals for investigations submitted in response to an AO.
    Supporting Research and Technology (SR&T)---The programs devoted to 
the conduct of research and development necessary to support and sustain 
NASA programs.
    Team--A group of investigators responsible for carrying out and 
reporting the results of an investigation or group of investigations.
    Team Leader--The person appointed to manage and be the point of 
contact for the team and who is responsible for assigning respective 
roles and privileges to the team members and reporting the results of 
the investigation.
    Team Member--A person appointed to a team who is an associate of the 
other members of the team and is responsible to the

[[Page 497]]

team leader for assigned tasks or portions of the investigation.

[60 FR 40522, Aug. 9, 1995, as amended at 60 FR 47713, Sept. 14, 1995; 
60 FR 53880, Oct. 18, 1995]



            Subpart 1870.2--NASA Research Announcement System



Sec. 1870.201  Purpose.

    It is NASA policy to encourage submission of research proposals 
relevant to agency requirements. The NASA Research Announcement (NRA) 
System is one means of implementing the policy by permitting the 
solicitation and competitive selection of research projects in 
accordance with statute while at the same time preserving the 
traditional concepts and understandings associated with NASA sponsorship 
of research.



Sec. 1870.202  System content.

    (a) The regulations governing the NRA System (see 1835.016-70) set 
forth the requirements for preparing, issuing, and processing NRAs.
    (b) The system contains instructions for proposers. These 
instructions shall be included in the NRA, a form of broad agency 
announcement authorized at 1835.016.

[54 FR 28373, July 5, 1989, as amended at 60 FR 40535, Aug. 9, 1995]



Sec. 1870.203  Instructions for Responding to NRAs.

    (a) The ``Instructions for Responding to NASA Research 
Announcements'' document (prescribed in 1835.016-70(c)(4)) is set forth 
as Appendix I to this section.
    (b) This Appendix may be reproduced locally as part of the NRA 
provided:
    (1) The issuing office shall verify that the current version of 
Appendix I is used.
    (2) The text shall be reproduced verbatim; however, the issuing 
office may remove the NFS page headers and add the NRA number. Any other 
change shall be treated as a deviation in accordance with 1801.400.

  Appendix I to 1870.203--Instructions for Responding to NASA Research 
Announcements Instructions for Responding to Nasa Research Announcements

                               (June 1995)

                               1. Foreword

    a. These instructions apply to ``NASA Research Announcements.'' The 
``NASA Research Announcement (NRA)'' permits competitive selection of 
research projects in accordance with statute while preserving the 
traditional concepts and understandings associated with NASA sponsorship 
of research.
    b. These instructions are Appendix I to 1870.203 of the NASA Federal 
Acquisition Regulation Supplement.

                                2. Policy

    a. Proposals received in response to an NRA will be used only for 
evaluation purposes. NASA does not allow a proposal, the contents of 
which are not available without restriction from another source, or any 
unique ideas submitted in response to an NRA to be used as the basis of 
a solicitation or in negotiation with other organizations, nor is a pre-
award synopsis published for individual proposals.
    b. A solicited proposal that results in a NASA award becomes part of 
the record of that transaction and may be available to the public on 
specific request; however, information or material that NASA and the 
awardee mutually agree to be of a privileged nature will be held in 
confidence to the extent permitted by law, including the Freedom of 
Information Act.

                               3. Purpose

    These instructions supplement documents identified as ``NASA 
Research Announcements.'' The NRAs contain programmatic information and 
certain requirements which apply only to proposals prepared in response 
to that particular announcement. These instructions contain the general 
proposal preparation information which applies to responses to all NRAs.

                        4. Relationship to Award

    a. A contract, grant, cooperative agreement, or other agreement may 
be used to accomplish an effort funded in response to an NRA. NASA will 
determine the appropriate instrument.
    b. Grants are generally used to fund basic research in educational 
and nonprofit institutions, while research in other private sector 
organizations is accomplished under contract. Contracts resulting from 
NRAs are subject to the Federal Acquisition Regulation and the NASA FAR 
Supplement (NHB

[[Page 498]]

5100.4). Any resultant grants or cooperative agreements will be awarded 
and administered in accordance with the NASA Grant and Cooperative 
Agreement Handbook (NHB 5800.1).

                       5. Conformance to Guidance

    a. NASA does not have mandatory forms or formats for responses to 
NRAs; however, it is requested that proposals conform to the guidelines 
in these instructions. NASA may accept proposals without discussion; 
hence, proposals should initially be as complete as possible and be 
submitted on the proposers' most favorable terms.
    b. To be considered responsive, a submission must, at a minimum, 
present a specific project within the areas delineated by the NRA; 
contain sufficient technical and cost information to permit a meaningful 
evaluation; be signed by an official authorized to legally bind the 
submitting organization; not merely offer to perform standard services 
or to just provide computer facilities or services; and not 
significantly duplicate a more specific current or pending NASA 
solicitation.

                          6. NRA-Specific Items

    Several proposal submission items appear in the NRA itself: the 
unique NRA identifier; when to submit proposals; where to send 
proposals; number of copies required; and sources for more information. 
Items included in these instructions may be supplemented by the NRA.

                          7. Proposal Contents

    a. The following information is needed to permit consideration in an 
objective manner. NRAs will generally specify topics for which 
additional information or greater detail is desirable. Each proposal 
copy shall contain all submitted material, including a copy of the 
transmittal letter if it contains substantive information.
    b. Transmittal Letter or Prefatory Material. (1) The legal name and 
address of the organization and specific division or campus 
identification if part of a larger organization;
    (2) A brief, scientifically valid project title intelligible to a 
scientifically literate reader and suitable for use in the public press;
    (3) Type of organization: e.g., profit, nonprofit, educational, 
small business, minority, women-owned, etc.;
    (4) Name and telephone number of the principal investigator and 
business personnel who may be contacted during evaluation or 
negotiation;
    (5) Identification of other organizations that are currently 
evaluating a proposal for the same efforts;
    (6) Identification of the NRA, by number and title, to which the 
proposal is responding;
    (7) Dollar amount requested, desired starting date, and duration of 
project;
    (8) Date of submission; and
    (9) Signature of a responsible official or authorized representative 
of the organization, or any other person authorized to legally bind the 
organization (unless the signature appears on the proposal itself).
    c. Restriction on Use and Disclosure of Proposal Information. 
Information contained in proposals is used for evaluation purposes only. 
Offerors or quoters should, in order to maximize protection of trade 
secrets or other information that is confidential or privileged, place 
the following notice on the title page of the proposal and specify the 
information subject to the notice by inserting appropriate 
identification, such as page numbers, in the notice. In any event, 
information contained in proposals will be protected to the extent 
permitted by law, but NASA assumes no liability for use and disclosure 
of information not made subject to the notice.

                                 Notice

       Restriction on Use and Disclosure of Proposal Information.

    The information (data) contained in [insert page numbers or other 
identification] of this proposal constitutes a trade secret and/or 
information that is commercial or financial and confidential or 
privileged. It is furnished to the Government in confidence with the 
understanding that it will not, without permission of the offeror, be 
used or disclosed other than for evaluation purposes; provided, however, 
that in the event a contract (or other agreement) is awarded on the 
basis of this proposal the Government shall have the right to use and 
disclose this information (data) to the extent provided in the contract 
(or other agreement). This restriction does not limit the Government's 
right to use or disclose this information (data) if obtained from 
another source without restriction.
    d. Abstract. Include a concise (200-300 word if not otherwise 
specified in the NRA) abstract describing the objective and the method 
of approach.
    e. Project Description. (1) The main body of the proposal shall be a 
detailed statement of the work to be undertaken and should include 
objectives and expected significance; relation to the present state of 
knowledge; and relation to previous work done on the project and to 
related work in progress elsewhere. The statement should outline the 
plan of work, including the broad design of experiments to be undertaken 
and a description of experimental methods and procedures. The project 
description should address the evaluation factors in these instructions

[[Page 499]]

and any specific factors in the NRA. Any substantial collaboration with 
individuals not referred to in the budget or use of consultants should 
be described. Subcontracting significant portions of a research project 
is discouraged.
    (2) When it is expected that the effort will require more than one 
year, the proposal should cover the complete project to the extent that 
it can be reasonably anticipated. Principal emphasis should be on the 
first year of work, and the description should distinguish clearly 
between the first year's work and work planned for subsequent years.
    f. Management Approach. For large or complex efforts involving 
interactions among numerous individuals or other organizations, plans 
for distribution of responsibilities and arrangements for ensuring a 
coordinated effort should be described. Intensive working relations with 
NASA field centers that are not logical inclusions elsewhere in the 
proposal should be described.
    g. Personnel. The principal investigator is responsible for 
supervision of the work and participates in the conduct of the research 
regardless of whether or not compensated under the award. A short 
biographical sketch of the principal investigator, a list of principal 
publications and any exceptional qualifications should be included. Omit 
social security number and other personal items which do not merit 
consideration in evaluation of the proposal. Give similar biographical 
information on other senior professional personnel who will be directly 
associated with the project. Give the names and titles of any other 
scientists and technical personnel associated substantially with the 
project in an advisory capacity. Universities should list the 
approximate number of students or other assistants, together with 
information as to their level of academic attainment. Any special 
industry-university cooperative arrangements should be described.
    h. Facilities and Equipment. (1) Describe available facilities and 
major items of equipment especially adapted or suited to the proposed 
project, and any additional major equipment that will be required. 
Identify any Government-owned facilities, industrial plant equipment, or 
special tooling that are proposed for use.
    (2) Before requesting a major item of capital equipment, the 
proposer should determine if sharing or loan of equipment already within 
the organization is a feasible alternative. Where such arrangements 
cannot be made, the proposal should so state. The need for items that 
typically can be used for research and non-research purposes should be 
explained.
    i. Proposed Costs. (1) Proposals should contain cost and technical 
parts in one volume: do not use separate ``confidential'' salary pages. 
As applicable, include separate cost estimates for salaries and wages; 
fringe benefits; equipment; expendable materials and supplies; services; 
domestic and foreign travel; ADP expenses; publication or page charges; 
consultants; subcontracts; other miscellaneous identifiable direct 
costs; and indirect costs. List salaries and wages in appropriate 
organizational categories (e.g., principal investigator, other 
scientific and engineering professionals, graduate students, research 
assistants, and technicians and other non-professional personnel). 
Estimate all manpower data in terms of man-months or fractions of full-
time.
    (2) Explanatory notes should accompany the cost proposal to provide 
identification and estimated cost of major capital equipment items to be 
acquired; purpose and estimated number and lengths of trips planned; 
basis for indirect cost computation (including date of most recent 
negotiation and cognizant agency); and clarification of other items in 
the cost proposal that are not self-evident. List estimated expenses as 
yearly requirements by major work phases. (Standard Form 1411 may be 
used).
    (3) Allowable costs are governed by FAR Part 31 and the NASA FAR 
Supplement Part 1831 (and OMB Circulars A-21 for educational 
institutions and A-122 for nonprofit organizations).
    j. Security. Proposals should not contain security classified 
material. If the research requires access to or may generate security 
classified information, the submitter will be required to comply with 
Government security regulations.
    k. Current Support. For other current projects being conducted by 
the principal investigator, provide title of project, sponsoring agency, 
and ending date.
    l. Special Matters. (1) Include any required statements of 
environmental impact of the research, human subject or animal care 
provisions, conflict of interest, or on such other topics as may be 
required by the nature of the effort and current statutes, executive 
orders, or other current Government-wide guidelines.
    (2) Proposers should include a brief description of the 
organization, its facilities, and previous work experience in the field 
of the proposal. Identify the cognizant Government audit agency, 
inspection agency, and administrative contracting officer, when 
applicable.

                          8. Renewal Proposals

    a. Renewal proposals for existing awards will be considered in the 
same manner as proposals for new endeavors. A renewal proposal should 
not repeat all of the information that was in the original proposal. The 
renewal proposal should refer to its predecessor, update the parts that 
are no longer current, and indicate what elements of the research are 
expected to be covered during

[[Page 500]]

the period for which support is desired. A description of any 
significant findings since the most recent progress report should be 
included. The renewal proposal should treat, in reasonable detail, the 
plans for the next period, contain a cost estimate, and otherwise adhere 
to these instructions.
    b. NASA may renew an effort either through amendment of an existing 
contract or by a new award.

                                9. Length

    Unless otherwise specified in the NRA, effort should be made to keep 
proposals as brief as possible, concentrating on substantive material. 
Few proposals need exceed 15-20 pages. Necessary detailed information, 
such as reprints, should be included as attachments. A complete set of 
attachments is necessary for each copy of the proposal. As proposals are 
not returned, avoid use of ``one-of-a-kind'' attachments: their 
availability may be mentioned in the proposal.

                           10. Joint Proposals

    a. Where multiple organizations are involved, the proposal may be 
submitted by only one of them. It should clearly describe the role to be 
played by the other organizations and indicate the legal and managerial 
arrangements contemplated. In other instances, simultaneous submission 
of related proposals from each organization might be appropriate, in 
which case parallel awards would be made.
    b. Where a project of a cooperative nature with NASA is 
contemplated, describe the contributions expected from any participating 
NASA investigator and agency facilities or equipment which may be 
required. The proposal must be confined only to that which the proposing 
organization can commit itself. ``Joint'' proposals which specify the 
internal arrangements NASA will actually make are not acceptable as a 
means of establishing an agency commitment.

                           11. Late Proposals

    A proposal or modification received after the date or dates 
specified in an NRA may be considered if the selecting official deems it 
to offer NASA a significant technical advantage or cost reduction.

                             12. Withdrawal

    Proposals may be withdrawn by the proposer at any time. Offerors are 
requested to notify NASA if the proposal is funded by another 
organization or of other changed circumstances which dictate termination 
of evaluation.

                         13. Evaluation Factors

    a. Unless otherwise specified in the NRA, the principal elements (of 
approximately equal weight) considered in evaluating a proposal are its 
relevance to NASA's objectives, intrinsic merit, and cost.
    b. Evaluation of a proposal's relevance to NASA's objectives 
includes the consideration of the potential contribution of the effort 
to NASA's mission.
    c. Evaluation of its intrinsic merit includes the consideration of 
the following factors, none of which is more important than any other:
    (1) Overall scientific or technical merit of the proposal or unique 
and innovative methods, approaches, or concepts demonstrated by the 
proposal.
    (2) Offeror's capabilities, related experience, facilities, 
techniques, or unique combinations of these which are integral factors 
for achieving the proposal objectives.
    (3) The qualifications, capabilities, and experience of the proposed 
principal investigator, team leader, or key personnel critical in 
achieving the proposal objectives.
    (4) Overall standing among similar proposals and/or evaluation 
against the state-of- the-art.
    d. Evaluation of the cost of a proposed effort includes the realism 
and reasonableness of the proposed cost and available funds.

                        14. Evaluation Techniques

    Selection decisions will be made following peer and/or scientific 
review of the proposals. Several evaluation techniques are regularly 
used within NASA. In all cases proposals are subject to scientific 
review by discipline specialists in the area of the proposal. Some 
proposals are reviewed entirely in-house, others are evaluated by a 
combination of in-house and selected external reviewers, while yet 
others are subject to the full external peer review technique (with due 
regard for conflict-of-interest and protection of proposal information), 
such as by mail or through assembled panels. The final decisions are 
made by a NASA selecting official. A proposal which is scientifically 
and programmatically meritorious, but not selected for award during its 
initial review, may be included in subsequent reviews unless the 
proposer requests otherwise.

                         15. Selection for Award

    a. When a proposal is not selected for award, and the proposer has 
indicated that the proposal is not to be held for subsequent reviews, 
the proposer will be notified. NASA will explain generally why the 
proposal was not selected. Proposers desiring additional information may 
contact the selecting official who will arrange a debriefing.
    b. When a proposal is selected for award, negotiation and award will 
be handled by the procurement office in the funding installation. The 
proposal is used as the basis for negotiation. The contracting officer 
may request certain business data and may forward

[[Page 501]]

a model contract and other information which will be of use during the 
contract negotiation.

                         16. Cancellation of NRA

    NASA reserves the right to make no awards under this NRA and to 
cancel this NRA. NASA assumes no liability for cancelling the NRA or for 
anyone's failure to receive actual notice of cancellation. Cancellation 
may be followed by issuance and synopsis of a revised NRA, since 
amendment of an NRA is

[60 FR 40535, Aug. 9, 1995]



                 Subpart 1870.3--NASA Source Evaluation



Sec. 1870.301   Purpose.

    The acquisition of goods and services is among the most important 
activities that NASA performs and demands the agency's best management 
efforts. Therefore, the source evaluation and selection procedures must 
emphasize the application of sound judgment to the problems of source 
evaluation and assure that Source Evaluation Boards (SEB) conduct their 
activities impartially and efficiently in ways which will effectively 
accomplish the source evaluation task.



Sec. 1870.302   Regulations.

    The basic regulations governing source selection using the SEB 
process appear at 1815.613-71. Detailed operating instructions and 
procedures for the evaluation and negotiation of procurements by Source 
Evaluation Boards appear at 1870.303. These instructions provide general 
and specific policies and procedures for SEB's evaluating offerors' 
proposals and related capabilities. They are designed for use by 
procurement personnel and by the wide range of individuals who 
participate in the SEB process. The instructions will also be of help to 
the public in understanding NASA's source selection policies and 
procedures.



Sec. 1870.303   Source Evaluation Board Procedures.

    (a) SEB procedures are prescribed by Appendix I to this section 
1870.303.
    (b) NASA may reprint Appendix I as a separate document, which may be 
referred to as the NASA Source Evaluation Board Handbook, for sale and/
or distribution provided the following conditions are met:
    (1) The issuance date (``cover date'') of the Handbook shall be the 
date of the NASA FAR Supplement version from which the text is 
extracted.
    (2) With the exception of availability, distribution and other 
special prefatory notices, any subsequent modification in the text shall 
be preceded by a change to the NASA FAR Supplement 1870.303, Appendix I.
    (3) The following notice shall be included in the prefatory material 
of the Handbook:

                            Important Notice

    This Handbook is a separately bound, verbatim version of NASA FAR 
Supplement (NFS) (48 CFR 1870.303) section 1870.303, Appendix I. 
Reference to other parts of the Federal Acquisition Regulation (FAR) and 
the NFS will be required for complete coverage of all procurement 
aspects. NASA reserves the right to make changes to NFS 1870.303, 
Appendix I, without issuing a new edition of this Handbook. Any such 
changes will be published in the Federal Register; however, it is 
anticipated that such changes will be rare, unless mandated by statute 
or unusual circumstances. In the event of apparent conflict between this 
Handbook and the NFS, the NFS shall govern.

    Appendix I to 1870.303--NASA Source Evaluation Board Procedures 
                               (Handbook)

                  NASA Source Evaluation Board Handbook

                                 Preface

    The acquisition of goods and services is among the most important 
activities that NASA performs and demands our best management efforts. 
The acquisition system we use must be such that individuals performing 
within it are challenged to high standards of performance because they 
know that their efforts contribute to and form part of the Government's 
decision-making process.
    The source evaluation and selection process covered by this handbook 
exemplifies our efforts to emphasize the application of sound judgment 
to the problems of source evaluation. In addition, the handbook 
emphasizes the responsibility which line and staff management retains to 
assure that Source Evaluation Boards (SEB's) conduct their activities 
impartially and efficiently in ways which will effectively accomplish 
the source evaluation task.
    The process provides for an equitable and comprehensive evaluation 
of offerors' proposals to assist the Source Selection Official (SSO) in 
selecting the source(s) whose proposal(s) presents the highest 
probability of

[[Page 502]]

quality performance to best meet NASA's requirements at a realistic 
cost/price. This handbook provides guidance and general and specific 
policies and procedures for SEB's evaluating offerors' proposals and 
related capabilities in negotiated procurements. Its intention is to 
encourage the exercise of sound judgment in the many important aspects 
of the process. SEB's are expected to apply common sense in determining 
appropriate variations and adaptations necessary in individual 
situations, provided that these do not constitute a departure from basic 
concepts and intent. Substantive deviations may be authorized only by 
the Associate Administrator for Procurement.
    While this handbook is intended primarily for NASA use, it is also 
available to the public so that NASA's source selection policies and 
procedures can be understood by all participants in the process.
    The provisions of this handbook are applicable to all elements of 
NASA and are to be implemented on any Request for Proposal (RFP) subject 
to evaluation by an SEB and issued on or after October 1, 1988. The 
source selection policies and procedures set forth in this handbook are 
to be implemented in accordance with the Federal Acquisition Regulation 
(FAR) subpart 15.6 and NASA/FAR Supplement (NFS) 1815.613. However, the 
procedures in this handbook may be used in any other competitively 
negotiated procurement where the SSO determines it desirable to do so.

   Chapter 1--Key Participants in the Source Evaluation Board Process

100  Introduction
101  Cognizant Management Responsibilities
102  Source Selection Official
103  Source Evaluation Board

        Chapter 2--Membership, Organization, and Responsibilities

200  General
201  Membership
202  Organization
203  Responsibilities

         Chapter 3--Evaluation Factors, Subfactors, and Elements

300  General
301  Mission Suitability
302  Cost
303  Relevant Experience and Past Performance
304  Other Considerations
305  Continuing Evaluative Responsibility of SEB

   Chapter 4--SEB Operating Procedures for Solicitation and Evaluation

400  General
401  Initial SEB Activities
402  Evaluation Plan
403  Qualification Standards
404  Request for Proposals (RFP's)--Review and Approval
405  Preproposal Conference
406  Initial Evaluation
407  Final Evaluation

       Chapter 5--Source Evaluation Board Report and Presentation

500  General
501  Responsibilities and Procedures

                       Chapter 6--Source Selection

600  General
601  Source Selection Decision
602  Notice and Debriefing for Unsuccessful Offerors
603  Source Selection Statement
604  Multiple Selection Decisions

                               APPENDICES

         Appendix A to Appendix I--Sample Letter of Designation

 Appendix B to Appendix I--Individual Certificate for Source Evaluation 
                           Board Participants

Appendix C to Appendix I--Guidelines for the SEB Report and Presentation 
                    to the Source Selection Official

   Chapter 1--Key Participants in the Source Evaluation Board Process

                            100  Introduction

    This chapter describes the role of key participants in the Source 
Evaluation Board (SEB) process, including cognizant line and staff 
management, the Source Evaluation Board and the Source Selection 
Official.

               101  Cognizant Management Responsibilities

    1. The SEB process described in this handbook shall be used for 
major procurements as defined by NFS 1815.613-71(a). The process is used 
to accomplish and document the source evaluation and selection function.
    2. Upon request of the cognizant Installation Procurement Officer, 
as a part of the Master Buy Plan procedure, the Associate Administrator 
for Procurement or an appropriate designee may consider streamlining 
these source selection procedures for a particular procurement. This 
decision, granting a deviation to the formal SEB process, will be 
communicated to the cognizant Procurement Officer as a part of the 
written response to the installation regarding the Master Buy Plan 
submission. Requests for use of streamlined procedures may also be 
submitted independent of the Master Buy Plan procedure.
    3. When the SEB process is determined to be applicable in accordance 
with the NFS,

[[Page 503]]

the specific SEB procedures detailed in this handbook are employed to--
    a. Prepare a solicitation that accurately conveys to offerors the 
technical, schedule, cost, and other contractual requirements of the 
procurement;
    b. Ensure equitable and comprehensive evaluation of the competitors' 
proposals;
    c. Ensure fairness and freedom from outside influence throughout the 
process;
    d. Ensure selection of the source(s) whose performance can be 
expected to be most advantageous to the Government with respect to the 
Mission Suitability, Cost, Relevant Experience and Past Performance, and 
Other Considerations factors considered; and
    e. Protect the business confidential and proprietary information 
contained in proposals submitted to the Government for evaluation.
    4. Appropriate cognizant line and staff management shall--
    a. Establish each SEB with fully qualified Government personnel 
possessing broad experience and the professional skills and knowledge 
required for proper evaluation and assessment of offerors' proposals;
    b. Ensure all personnel assigned to the SEB are unencumbered by 
other assignments which compete with SEB activities and, further, ensure 
that personnel assigned to the SEB are officially appointed to the 
activity for the duration of the SEB;
    c. Ensure the SEB is provided all current NASA policies and 
procedures relevant to SEB operation;
    d. Ensure acquisition strategy and planning objectives are achieved 
as reflected in the acquisition's requirements;
    e. Ensure the SEB works in harmony with the needs and objectives of 
the requiring activity;
    f. Concur in the substance and weight of evaluation factors, 
subfactors, and elements;
    g. Ensure the RFP is complete, clear, and consistent with agency 
objectives and with the needs of the activity requiring the procurement, 
that the procedures for evaluation and selection are clearly set forth, 
and that the offeror is not burdened with unnecessary requests for data 
not pertinent to source selection;
    h. Ensure appropriate actions are taken, consistent with the FAR and 
NFS, to obtain full and open competition in the selection process, or to 
obtain appropriate approvals for exceptions;
    i. Establish an SEB advisory group or individual at the field 
installation to ensure proper source selection procedures are employed;
    j. Ensure an environment exists in which evaluation and selection 
activities can be effectively conducted; and
    k. Ensure that the activities of the SEB are carefully planned, all 
key events identified and scheduled, and progress monitored. Normally, 
the goal of all SEBs should be to complete activities from receipt of 
proposal to contract award in not more than 120 calendar days. 
Realization of this goal can be furthered through the synergism of 
acquisition streamlining techniques such as RFP and proposal page 
limitations, reduced SEB memberships, and limitation of evaluation sub-
factors and elements to key discriminators. However, there may be 
instances when this goal cannot be attained even when these streamlining 
techniques are used, for example, in procurements of unusual complexity 
or when a large number of proposals is anticipated. In these cases, a 
schedule longer than the 120-day goal should be planned, consistent with 
the exercise of good judgment.
    5. For purposes of this handbook, in cases where the SSO is at the 
Headquarters level, ``cognizant line and staff management,'' as 
addressed in subparagraph 4, includes--
    a. The NASA Acquisition Executive for systems designated as major 
acquisitions under NMI 7100.14, ``Major System Acquisitions'';
    b. Officials-in-Charge of the cognizant Headquarters Program and 
Headquarters Offices or their Deputies. (See NMI 1101.2, ``NASA 
Organization and Definition of Terms.'');
    c. The cognizant Field Installation Director and Deputy/Associate 
Director;
    d. The Field Installation Project Manager;
    e. The Associate Administrator for Procurement;
    f. The General Counsel and/or Associate General Counsel (Contracts);
    g. The Associate Administrator for Safety, Reliability, 
Maintainability, and Quality Assurance (SRM&QA);
    h. The Field Installation Principal Official-in-Charge of 
Administration, when such a position exists;
    i. The Field Installation Chief Counsel; and
    j. The Field Installation Procurement Officer.
    6. When the Administrator or an Official-in-Charge of a Headquarters 
Office is the SSO, selected cognizant line and staff management, 
including the General Counsel or designee and the Associate 
Administrator for Procurement, will advise the SSO in executive session, 
at the conclusion of the presentation of the SEB report, regarding their 
views concerning the SEB's findings. Management personnel are encouraged 
to seek the advice of the General Counsel, the Associate Administrator 
for Procurement, and any other responsible Headquarters official 
regarding any SEB-level procurement problem where their participation 
would be helpful in the conduct of the SEB process.

                     102  Source Selection Official

    1. The SSO is the senior agency official responsible on a particular 
procurement for

[[Page 504]]

proper and efficient conduct of the source selection process and for 
making the final source selection decision. It is the SSO's 
responsibility to decide which of the proposals submitted in response to 
the solicitation would prove most advantageous to the Government, all 
RFP evaluation factors considered. The decision must reflect the SSO's 
determination of relative quality and suitability of what is proposed by 
each offeror in light of the Government's stated requirements and the 
confidence level associated with the offeror's ability to accomplish 
what is proposed. This includes an assessment of the probable cost of 
each proposal in the competitive range. Trade-off judgments may be 
required among the evaluation factors (Mission Suitability, Cost, 
Relevant Experience and Past Performance, and Other Considerations). For 
procurements designated as Headquarters selections, the SSO will be 
identified as a part of the Master Buy Plan process. For field 
installation selections, the Field Installation Director will serve as 
the SSO. When source selection official authority is at the installation 
level, either by delegation from Headquarters or by virtue of a 
procurement value under the installation Master Buy Plan limitation, the 
head of the installation may further delegate this authority to the 
lowest reasonable level.
    2. The SSO will--
    a. Approve the substance and weight of evaluation factors, 
subfactors, and elements prior to release of the RFP, or delegate this 
responsibility to appropriate management personnel;
    b. Appoint the SEB Chairperson and members, both voting and 
nonvoting, except when the Administrator will serve as the SSO, in which 
case the Official-in-Charge of the cognizant Headquarters Program Office 
will appoint the SEB Chairperson and members;
    c. Provide the SEB with appropriate guidance and special 
instructions to conduct the evaluation and selection procedures; and
    d. Make the final selection decision. Selection for final 
negotiations will be based on an integrated assessment of each offeror's 
proposal, taking into consideration the SEB's report and advice from 
senior officials.

                      103  Source Evaluation Board

    1. The solicitation, receipt, and evaluation of proposals will be 
implemented by the SEB in accordance with the procedures outlined in 
this handbook. It is paramount that the SEB's evaluation not be 
influenced by persons outside the SEB process, whether or not such 
persons are NASA employees. The SEB is established with special status 
and shall be staffed with competent people fully qualified to identify 
the strengths, weaknesses, and risks associated with proposals submitted 
in response to the Government solicitation. The SEB assists the SSO in 
decision making by providing expert analyses of the offerors' proposals 
in relation to the evaluation factors, subfactors, and elements 
contained in the solicitation.
    2. In particular, the SEB shall--
    a. Conduct an in-depth review and evaluation of each proposal 
against the solicitation requirements and the approved evaluation 
factors, subfactors, and elements;
    b. Provide an integrated assessment of each offeror's probable 
performance relative to the evaluation factors, subfactors, and elements 
contained in the solicitation related to Mission Suitability;
    c. Perform cost analysis by reviewing and analyzing each offeror's 
proposed costs by individual cost element to determine the validity and 
reasonableness of the proposed costs. Perform price analysis by 
comparing each offeror's proposed price (when it is feasible to do so) 
against the independent Government cost estimate and/or prior experience 
and knowledge regarding similar efforts to assist in determination of a 
fair and reasonable price. Develop a probable cost for each proposal 
within the competitive range;
    d. Evaluate the relevant experience and past performance of each 
offeror, including the relevant experience and past performance of 
proposed subcontractors intended to perform a major role in 
accomplishment of procurement objectives or to participate in a 
substantive manner;
    e. Evaluate proposals under the Other Considerations factor included 
in the RFP and present the analysis of that factor as reflected in each 
offeror's proposal;
    f. Ensure proper SEB procedures are implemented, including those 
necessary to prevent disclosure of source selection data;
    g. Prepare and present the SEB report which accurately and clearly 
reflects the findings of the SEB.

    Note.--The SEB is not to make recommendations for selection to the 
SSO. The SEB reports its findings, avoiding trade-off judgments among 
either the individual offerors or among the Mission Suitability, Cost, 
Relevant Experience and Past Performance, and Other Considerations 
evaluation factors.

        Chapter 2--Membership, Organization, and Responsibilities

                              200  General

    This chapter sets forth NASA policy on membership, organization, and 
responsibilities of SEB's.

                             201  Membership

                             1. Composition

    a. SEB's shall be comprised of qualified management, technical, 
scientific, contracting, and business experts including, where

[[Page 505]]

appropriate, SRM&QA representatives. Each SEB shall have a legal 
advisor.
    b. While in general the SEB Chairperson, SEB members, and committee 
members are drawn from the cognizant installation, personnel from other 
NASA installations or other Government agencies may be used when their 
services are required in a particular area of expertise and would 
significantly contribute to the evaluation of proposals.
    c. It is NASA policy to have proposals evaluated by the most 
competent technical and management sources available in NASA and the Jet 
Propulsion Laboratory (JPL). All personnel participating in evaluation 
proceedings shall be instructed to observe the restrictions in the FAR 
and NFS regarding personal conflicts of interest and the disclosure of 
information concerning the evaluation. Non-NASA personnel shall not 
serve as voting members of a NASA SEB.
    d. In evaluating a proposal, the SEB may find that it is necessary 
to disclose the proposal (in whole or in part) outside the Government to 
meet its evaluation needs. When it is clearly necessary to disclose the 
proposal (in whole or in part) outside the Government, arrangements 
shall be made in accordance with NFS 1815.413-2.
    e. It is desirable that voting members of the SEB include people who 
will have key assignments on the project to which the procurement is 
directed. However, it is important that this should be tempered to 
ensure objectivity and to avoid an improper balance. It may even be 
appropriate to designate a management official from outside the project 
as SEB Chairperson.
    f. SEB membership shall be limited to a maximum of 7 voting 
individuals. Wherever feasible, an assignment to SEB membership as a 
voting member shall be on a full-time basis. Where this is not feasible, 
SEB membership shall take precedence over other duties.
    g. If additional support is needed, committees and panels may be 
used to assist in the evaluation. The total of all such evaluators 
(committees, panels, etc., excluding SEB voting members and ex officio 
members) shall be limited to a maximum of 20 individuals, unless 
approved in writing by the Procurement Officer.
    h. The number of nonvoting ex officio (advisory) members shall be 
kept as small as the nature of the procurement allows. Ex officio 
members should be selected for the experience and expertise they can 
provide to the SEB. Since their advisory role may require access to 
highly sensitive SEB material and findings, ex officio membership for 
persons other than those identified in paragraph 3.b. should be 
carefully considered.

                             2. Designation

    a. Designation of the SEB Chairperson and members, both voting and 
nonvoting, shall be by the SSO except when the Administrator will serve 
as the SSO, in which case the designation shall be by the Official-in-
Charge of the cognizant Headquarters Program Office. The designation 
letter will be addressed to the cognizant Field Installation Director 
when the SSO is at the Headquarters level or to the SEB Chairperson when 
the SSO is the Field Installation Director. The letter shall be prepared 
in accordance with the sample letter in Appendix A and forwarded for 
signature to the SSO or the cognizant Official-in-Charge of the 
Headquarters Program Office early in the procurement cycle, but not 
later than coordination and approval of the procurement plan. Prior to 
signature, concurrence by the Headquarters Office of Procurement (Code 
HS) is required when the SSO is at the Headquarters level or by the 
cognizant Field Installation Procurement Officer when the SSO is the 
Field Installation Director.
    b. When the Administrator or the Official-in-Charge of the cognizant 
Headquarters Program Office is the SSO, resumes of voting members shall 
be provided along with the proposed designation letter. These resumes 
shall include functional title, grade level and related SEB experience.

                     3. Voting and nonvoting Members

    a. The following people shall be on all SEB's and designated as 
voting members:
    (1) Chairperson.
    (2) A senior, key technical representative for the project.
    (3) An experienced procurement representative.
    (4) A senior SRM&QA representative, as appropriate.
    (5) Committee chairpersons (except where this imposes an undue 
workload).
    All voting members of the SEB shall have equal status as rating 
officials.
    b. The following people shall be on all SEB's as nonvoting ex 
officio members:
    (1) Associate Administrator for Procurement and designee from the 
Program Operations Division (Code HS) when either an Official-in-Charge 
of a Headquarters Program Office or the Administrator is the SSO.
    (2) General Counsel and/or the Associate General Counsel (Contracts) 
when either an Official-in-Charge of a Headquarters Program Office or 
the Administrator is the SSO.
    (3) Associate Administrator for Safety, Reliability, 
Maintainability, and Quality Assurance or designee when either an 
Official-in-Charge of a Headquarters Program Office or the Administrator 
is the SSO.
    (4) Director of the cognizant Field Installation or designee when 
either an Official-in-Charge of a Headquarters Program Office or the 
Administrator is the SSO.
    (5) Cognizant Program Director or designee when an Official-in-
Charge of a Headquarters Program Office is the SSO.

[[Page 506]]

    (6) Official-in-Charge of the cognizant Headquarters Program Office 
or a designee when the Administrator is the SSO.
    (7) Chairpersons of SEB committees when they are non-voting members.
    (8) The Procurement Officer of the installation, unless designated a 
voting member.
    (9) The contracting officer responsible for the procurement, unless 
designated a voting member.
    (10) The Chief Counsel and/or designee of the installation.
    (11) The SEB recorder.
    c. The Associate Administrator for Procurement, the Code HS Director 
and cognizant procurement analyst, and the Associate General Counsel 
(Contracts) have access to all SEB activity by virtue of their positions 
in the agency.
    d. The Associate General Counsel (Contracts) will assign legal 
advisors to Headquarters SEB's. The installation Chief Counsels will 
assign legal advisors to SEB's at their installations. The assigned 
advisor will provide legal advice and counsel on all matters pertaining 
to the procurement. Upon appointment of the SEB, the Associate General 
Counsel (Contracts) or designee, or Chief Counsel or designee, as 
appropriate, will brief SEB personnel on required standards of conduct.
    e. Nonvoting ex officio members may state their views and contribute 
to the discussions in SEB deliberations, but they may not participate in 
the actual rating process. However, the SEB recorder should be present 
during rating sessions. The Chairperson is responsible for determining 
appropriate attendance at SEB meetings and is encouraged to seek the 
advice and counsel of nonvoting ex officio members whenever necessary 
without convening a special meeting.

                            202  Organization

    The organization of an SEB is tailored to the requirements of the 
particular procurement. This can range from the simplest situation, 
where the SEB conducts the evaluation and fact-finding without the use 
of committees or panels, to a highly complex situation involving a major 
acquisition where two or more committees are formed and these, in turn, 
are assisted by special panels in particular areas. Appropriate 
organization somewhere between these two extremes is generally expected 
but in all cases the number of committees or panels should be kept to a 
minimum consistent with the requirements of the procurement.

                          203  Responsibilities

    1. The SEB is the central group in the source evaluation process. 
Its function is to carry out the activities set forth in this handbook, 
culminating in final evaluation of all proposals and its report to the 
SSO. The SEB's evaluation is based on all available information, 
including proposals, committee and panel reports, written and/or oral 
discussions, personal knowledge of the members in the area of experience 
and past performance, and other appropriate reference checks. Subject to 
reviews by the SSO and cognizant management personnel as may be 
required, the SEB establishes evaluation factors, subfactors, elements 
and their relative importance; generates qualification standards (where 
applicable); and reviews and approves the RFP prior to issuance. The SEB 
reviews offeror satisfaction of applicable qualification standards, if 
any, and makes an identification of unacceptable proposals. It provides 
an initial evaluation of acceptable proposals sufficient for 
determination of the competitive range and participates in written and/
or oral discussions held with all offerors in the competitive range. The 
SEB shall not delegate its evaluation responsibility in whole or in 
part. Findings of committees or panels must be reviewed by the SEB, with 
its own collective judgment being applied in arriving at the SEB 
evaluation findings reported to the SSO.
    2. The SEB Chairperson is the principal operating executive of the 
SEB. This carries with it a responsibility broader in scope and 
including more requirements for coordination across more different 
specialized disciplines and through more diverse management channels 
than is expected in most management situations. The Chairperson is 
expected to manage the team efficiently without compromising the 
validity of the findings provided to the SSO as the basis for a sound 
selection decision.
    3. The SEB Recorder functions as the principal administrative 
assistant to the SEB Chairperson. The duties and responsibilities of the 
position are as follows:
    a. Attends all SEB meetings and serves as principal assistant to the 
SEB Chairperson.
    b. Obtains secure work areas for conduct of SEB activity and 
develops and implements procedures for controlling access and 
safeguarding SEB proceedings and documentation.
    c. Obtains materials, supplies, and equipment needed by the SEB.
    d. Arranges for preparation, reproduction, control, and distribution 
of material relating to the activity of the SEB and its committees.
    e. Prepares and distributes the agenda for SEB meetings.
    f. Obtains and distributes current applicable procedures, policies, 
and instructions to the SEB and committee members and others involved.
    g. Records the substantive issues discussed.
    h. Follows up on action items assigned to SEB members to ensure no 
delays in the SEB schedule will occur.

[[Page 507]]

    i. Obtains the SEB Chairperson's approval of SEB minutes. Provides 
copies to all voting SEB members and/or nonvoting members, as directed 
by the SEB Chairperson. Retains the original copy of the minutes and 
incorporates them into an official record book.
    j. Assists in preparation and assembly of the SEB's report of 
findings and presentation charts and arranges for reproduction and 
distribution.
    k. Destroys all duplicate material in excess of the SEB's need or 
retains material, as defined by the contracting officer, the SEB, and/or 
the SSO.
    l. After formal selection announcement, accumulates, packages, and 
forwards documentation pertinent to the SEB's work to the cognizant 
contracting officer for retention throughout the life of the contract.
    m. At the conclusion of all SEB activity, surveys the area where SEB 
activity occurred and arranges for the return of equipment and 
materials, as appropriate.
    4. An SEB Committee functions as a fact-finding arm of the SEB, 
usually in a broad grouping of related disciplines (e.g., technical or 
management). It is comprised of people well-versed and experienced in 
each of the major disciplines under its aegis. For example, a 
``Management Committee'' could include experts in such areas as 
organization, pricing, personnel, labor, contracting, and facilities 
operation. The committee examines in detail each proposal, or portion 
thereof, assigned by the SEB. It evaluates such proposals or excerpts in 
accordance with the approved evaluation factors, subfactors, and 
elements and submits a written report to the SEB summarizing its 
evaluation. The committee will also respond to requirements assigned by 
the SEB, including further justification or reconsideration of its 
findings.
    5. Committee chairpersons shall, with respect to their committees, 
exercise the same responsibility for administrative and procedural 
matters as does the SEB Chairperson for the SEB.
    6. An SEB panel functions as a fact-finding arm of the committee in 
a specialized area of the committee's responsibilities. Panels are 
established when a particular area requires deeper analysis than can be 
provided by individual members of the committee.
    7. a. All personnel involved in SEB activities are responsible for 
complying with the requirements of this handbook and other applicable 
regulations. Accordingly, they are advised to seek counsel and guidance 
from appropriate personnel, such as; the SEB Chairperson, the SEB 
procurement voting member, the contracting officer and/or the SEB legal 
advisor as well as any cognizant installation SEB advisory group with 
respect to any questions concerning compliance with these requirements. 
The Chairperson shall require each SEB, committee, and panel member to 
be familiar with the provisions of NHB 1900.1, ``Standards of Conduct 
for NASA Employees,'' regarding conflict of interest and to inform the 
Chairperson in writing if, in the opinion of the member, their 
participation presents a real or apparent conflict of interest. In 
addition, the SEB Chairperson shall ensure that each SEB, committee, and 
panel member has filed a completed NASA Form 1270, ``Confidential 
Statement of Employment and Financial Interests.'' Code HS procurement 
analysts will comply with the necessary disclosure requirements and will 
sign the necessary certificates on an annual basis to cover all SEB 
activities that the analyst may participate in throughout the year. 
Completed NASA Form 1270's from Code HS personnel will be generated and 
reviewed at the Headquarters level and will remain on file in the Office 
of General Counsel.
     b. Prior to selection and announcement of an offeror for final 
negotiations, NASA personnel shall not reveal any information concerning 
the evaluation to anyone not participating in the same evaluation 
proceedings and then only to the extent such information is required by 
such proceedings and approved by the SSO or designee.
    c. Subsequent to selection and announcement of an offeror for final 
negotiations, information concerning SEB proceedings and data will be 
made available to others within NASA only when the requester 
demonstrates a need to know for a NASA purpose. Information will be made 
available to persons outside NASA, including other Government agencies, 
only when such disclosure is concurred in by the Office of General 
Counsel, title 18, U.S. Code, section 1905, prohibits any officer or 
employee of the United States from disclosing or divulging certain kinds 
of business confidential and trade secret information unless authorized 
by law. Possible penalties upon conviction include imprisonment of up to 
1 year, a fine of not more than $1,000, and removal from the Federal 
Service.

         Chapter 3--Evaluation Factors, Subfactors and Elements

                              300  General

    1. This chapter describes the factors, subfactors, and elements used 
in evaluation of proposals and discusses the manner in which the SEB 
will develop, describe, and structure such factors, subfactors, and 
elements.
    2. The SEB's responsibility is to provide analysis of proposals to 
aid the SSO in selecting the offeror(s) who best meets the Government's 
requirements at a reasonable cost.
    3. In making a selection, the SSO normally considers four evaluation 
factors: a. Mission Suitability (which reflects how well the offerors 
can be expected to perform the work from a technical and management 
perspective); b. Cost (which reflects what it will

[[Page 508]]

probably cost the Government to do business with the offerors); c. 
Relevant Experience and Past Performance (which reflects the amount and 
quality of previous work accomplished by the offerors comparable to the 
work to be performed under the procurement being evaluated); and d. 
Other Considerations (which are those considerations, stated in the RFP, 
other than Mission Suitability, Cost, and Relevant Experience and Past 
Performance that can affect contract performance).
    4. Performing the proposed work properly (Mission Suitability) is 
always important, and so is the probable cost of performing that work. 
Probable cost is not necessarily the offeror's estimate of costs; 
rather, it is the SEB's assessment of what the proposed work is likely 
to cost. Depending on circumstances, relevant experience and past 
performance or other considerations may or may not be of prime 
importance.
    5. The SEB evaluates proposals with respect to the four evaluation 
factors, as follows:
    a. Mission Suitability. This factor indicates, for each offeror, the 
merit or excellence of the work to be performed or product to be 
delivered. It includes, as appropriate, both technical and management 
subfactors. Because this factor can be highly technical and must be 
integrated in order to convey an overall evaluation of relative merit, 
Mission Suitability and its supporting subfactors shall be numerically 
weighted and scored. Elements may or may not be numerically weighted and 
scored.
    b. Cost. This factor evaluates what each offeror's proposal will 
probably cost the Government should it be selected for negotiations 
leading to award. Proposed costs are analyzed to determine the probable 
``cost of doing business'' based upon the offeror's proposed approach. 
Further, this analysis identifies and assesses the impact of features 
that cause a proposal to cost more or less than other proposals. (See 
paragraph 302 for detailed coverage.) Cost is not numerically weighted 
or scored.
    c. Relevant Experience and Past Performance. This factor indicates 
the relevant quantitative and qualitative aspects of each offeror's 
record of performing services or delivering products similar in size, 
content, and complexity to the requirements of the instant procurement. 
The Relevant Experience and Past Performance factor provides an 
opportunity to evaluate the quality of goods and services provided by 
the offeror(s) to the agency and other Government organizations. The 
agency has acquired a substantial amount of firsthand experience and 
past performance data over a variety of program and contract efforts. 
Evaluation of this factor also utilizes relevant experience and past 
performance data from programs acquired by other Governmental 
organizations, covering both prime and subcontractor performance. The 
Relevant Experience and Past Performance factor is not numerically 
weighted or scored.
    d. Other Considerations. This factor includes those considerations 
other than Mission Suitability, Cost, and Relevant Experience and Past 
Performance. They include, but are not limited to, such items as: 
financial condition, labor relations considerations, small and small 
disadvantaged business considerations, and geographic distribution of 
subcontracts. Other Considerations is not numerically weighted or 
scored.
    6. Mission Suitability is the only factor which is numerically 
weighted (normally 1000 points) and scored. Further, each Mission 
Suitability subfactor is numerically weighted and scored. The sum of the 
subfactor weights will total the weight of the Mission Suitability 
factor. A subfactor may, at the discretion of the SEB, be divided into 
discrete elements which, in total, comprise the subfactor evaluation 
area. If deemed conducive to the evaluation process, the SEB may weigh 
and score individual elements of a subfactor. The sum of the weights of 
the individual elements will equal the weight of the subfactor.
    7. The general format for inclusion of the factors, subfactors, and 
elements in the RFP are:

a. Factor (numerically scored)--Mission Suitability Grouping/Category 
          (not numerically scored)--i.e., Technical or Management 
          (optional)
    (1) Subfactor (numerically scored)
    (2) Subfactor (numerically scored)
    (3) Subfactor (numerically scored)
    Element (optional). May or may not be numerically scored.

    b. Factor (not numerically scored)--Cost
    c. Factor (not numerically scored)--Relevant Experience and Past 
Performance
    d. Factor (not numerically scored)--Other Considerations

                        301  Mission Suitability

                        1. Evaluation Subfactors

    a. Evaluation subfactors are the weighted areas within the Mission 
Suitability factor that further identify, for proposal preparation and 
evaluation purposes, the content of the factor. Examples of Mission 
Suitability subfactors found by experience to be relevant to many 
procurements are: Understanding of the Requirement; Management Plan; Key 
Personnel; Corporate or Company Resources; and Excellence of Proposed 
Design for hardware procurements. However, citation of these specific 
subfactors is not intended to be restrictive or all inclusive. The 
nature and thrust of the requirements and objectives of the procurement 
may logically call

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for the use of some subfactors titled and described in a somewhat 
different manner than those described below:
    (1) Understanding of the Requirement. An offeror's proposal reflects 
how well the offeror comprehends the work and the data requirements. The 
offeror's proposal should be examined and analyzed to evaluate the 
offeror's understanding of the requirements set forth in the RFP. 
Understanding of the requirement can be evaluated as a separate 
subfactor or can be evaluated as an element to be considered as a part 
of the evaluation of each subfactor. Although costs are analyzed 
separately from Mission Suitability, they may be significant in 
indicating an offeror's understanding of the resources, human and 
material, required for performance of the contract. Accordingly, 
technical personnel assigned to committees or panels, in evaluation of 
the Mission Suitability factor pursuant to the weighted subfactors and 
elements, may be given access to the cost proposals or portions of the 
cost proposals to help determine the offeror's understanding of the 
requirements of the RFP. Such cost information may also help them to 
assess the validity of the offeror's approach to performing the work in 
accordance with the requirements. Cost realism, or the lack thereof, 
should enter into the SEB's assessment of the measure of understanding 
possessed by each offeror. Normally this would entail a consideration of 
cost realism in the evaluation of all subfactors and elements wherein 
understanding is an essential concept. Similarly, an offeror's 
justification or rationale for proposed costs can give insight into how 
well the work to be performed is understood.
    (2) Management Plan. (a) The offeror's management plan sets forth 
the offeror's approach for efficiently managing the work as demonstrated 
by the proposed organization, the recognition of essential management 
functions, and the effective overall integration of these functions.
    (b) The management plan describes the project organization proposed 
for the work, including internal operations and lines of authority, 
together with external interfaces and relationships with the Government, 
major subcontractors, and associate contractors. When properly prepared, 
the authority of the project manager, the project manager's relationship 
to the next echelon of management, and the project manager's command of 
company resources can be ascertained from the management plan. Likewise, 
the management plan provides schedules necessary for the logical and 
timely pursuit of the work, accompanied by a description of the 
offeror's work plan.
    (3) Excellence of Proposed Design. In hardware acquisition, design 
of the product is generally a major aspect of competition. In order to 
arrive at an informed judgment, the SSO may require the SEB's evaluation 
of the merits of competing designs in relationship to the stated 
requirement. In evaluating the proposed designs, the SEB should consider 
the resources required to perform the work inherent in the differing 
designs. Evaluation of design may extend to whatever subsystem level is 
deemed appropriate by the SEB and may include producibility, 
reliability, maintainability, and, as applicable, warranties.
    (4) Key Personnel. (a) Thorough evaluation of proposed key personnel 
is usually one of the most vital aspects of SEB activity.
    (b) Experience demonstrates that the qualifications and performance 
of a few people--the top half-dozen or so directly involved managers--
are extremely important to successful accomplishment of a contract. For 
evaluation purposes, the SEB may designate a separate subfactor entitled 
``Key Personnel.'' The SEB may define the number and identity of the key 
personnel for each offeror in the solicitation or may, subject to such 
limitations as the SEB deems appropriate to assure a reasonable basis 
for comparison, permit each offeror to define its own key personnel 
consistent with its proposed organization.
    (c) Written resumes should be the baseline from which the evaluation 
of key personnel begins. Personal reference checks with people 
knowledgeable of an individual's training, experience, and performance 
constitute part of this baseline; these should be made at levels 
commensurate with the role of the individual in the program or project 
involved. However, the written and/or oral discussions, if conducted, 
will include all offerors in the competitive range and may be used to 
establish the relative merits of personnel proposed by each competing 
firm.
    (d) The presentation to the SSO must clearly and concisely set forth 
the results of the evaluation and discussion, including the strengths 
and weaknesses of each offeror's key personnel.
    (5) Corporate or Company Resources. The SEB should assess the 
resources proposed by each offeror in the general areas of human 
resources and facilities. For example, are the proper skill mixes and 
numbers of people to do the work being offered? Does the offeror propose 
facilities and, where required, special test equipment suitable and 
adequate to assure timely performance of the work? If the offeror does 
not possess adequate resources internally, is there a demonstration of 
the ability to acquire them through subcontracts or otherwise?
    b. Elements that further define the content of each subfactor may be 
used. If individually numerically scored, these elements must be 
revealed in the RFP and must be assigned a specific weighting in the 
SEB's evaluation plan as a portion of the total points allotted. If they 
are not numerically scored, identification in the RFP is not required.

[[Page 510]]

    c. Establishment of evaluation subfactors, elements, and their 
weights requires judgment on a case-by-case basis. The subfactors and 
elements established and included in the RFP will then be utilized to 
determine each offeror's rating in Mission Suitability, including its 
understanding of the requirements, approach to the work, and the 
competence of personnel to be directly involved.
    d. By carefully considering the requirement(s) to be satisfied 
through the products or services being procured, the SEB should be able 
to identify, analyze, and score discrete subfactors and, where 
appropriate, elements that determine how well the proposed product or 
service can be expected to meet the demands of the specific 
requirement(s). If individual subfactors, elements, and their weights 
are prudently established, the integrated scores of the subfactors and 
elements will give a representative picture of the merit of each 
offeror's Mission Suitability.
    e. (1) In structuring evaluation subfactors and elements, emphasis 
should be placed on identification of significant discriminators, or 
``key swingers''--the essential information required to support a source 
selection decision. Too many subfactors and elements are detrimental to 
effective evaluation of proposals and may result in a leveling or 
averaging out of scores over all proposals. To avoid this negative 
effect, the number of subfactors under Mission Suitability shall be no 
more than 4 and the number of elements no more than 8. Other evaluation 
factors shall also be limited to only essential subfactors and elements. 
Further, care should be taken to avoid overlap and redundancy by clearly 
defining each evaluation subfactor and element. Avoiding such overlap 
assures an offeror is not scored in two or more areas for the same work.
    (2) The following example conveys one approach to describing a 
subfactor, utilizing elements, in an RFP. Within the ``management plan'' 
subfactor the following elements may be determined by the SEB as most 
suitable to assess how well each offeror's overall management proposal 
would contribute to the probability of performing the contract in an 
excellent manner: (a) Management approach and organization; (b) staffing 
plan; and (c) management systems.
    f. (1) Proposal risk will be carefully considered in evaluating 
proposals. The proposal risks to be assessed are those associated with 
cost, schedule, and performance or technical aspects of the program. 
These risks will be considered in the Mission Suitability subfactors and 
the Cost factor evaluation. Risks may be inherent in a program by virtue 
of the program objectives relative to the state of the art. Risks may 
occur as a result of a particular technical approach, manufacturing 
plan, the selection of certain materials, processes, equipment, etc., or 
as a result of the cost, schedule and economic impacts associated with 
these approaches. Risk may also occur from the impact that these will 
have on the offeror's ability to perform.
    (2) As part of their proposal, offerors should be required to submit 
a risk analysis which identifies risk areas and the recommended 
approaches to minimize the impact of those risks on the overall success 
of the program.
    (3) In evaluating risks, the evaluators must consider the offeror's 
assessment and make an independent judgment of the probability of 
success, the impact of failure, and the alternatives available to meet 
the requirements.
    (4) Risk assessments shall be discussed in the SEB Report and be 
considered in determining the overall numerical and adjectival ratings 
and the strengths and weaknesses.
    (5) It is the responsibility of the evaluation teams to inform the 
cost team of identified risk areas and the potential for cost impact.
    g. For each subfactor and element, there should be detailed 
instructions provided in the RFP's Section L, ``Instructions, 
Conditions, and Notices to Offerors or Quoters,'' specifying what 
supporting information should be included in the proposals and the 
specific format to be used. This increases the probability that SEB 
evaluators will be provided necessary data in the format easiest to 
understand and evaluate relative to the subfactors and elements assigned 
for evaluation and assessment. Thought given to carefully structuring 
these instructions will generally result in proposals that address what 
the Government is most interested in relative to the work to be 
performed. For example, if the evaluation will utilize SEB committees or 
SEB panels, instructions for proposal preparation in the RFP's Section L 
that direct offerors to group together information required by such 
committees or panels will facilitate and accelerate the evaluation 
process.
    h. Where the procurement involves acquisition of a major system 
under NMI 7100.14, ``Major System Acquisitions,'' and the evaluation is 
to identify the most promising system design concept(s) to be selected 
for further exploration, the evaluation should also address the benefits 
to be derived by tradeoffs, where feasible, among technical performance, 
acquisition cost, ownership cost, and time to develop and procure.

            2. Weighting of Factors, Subfactors, and Elements

    a. Numerical weights shall be used for evaluating the Mission 
Suitability factor for competing offerors.
    b. (1) Once the Mission Suitability subfactors are established, the 
SEB will determine the weight assigned to each. Likewise, if elements 
are established, the SEB will determine the weight, if any, assigned to 
each. The proposed subfactors, elements, and

[[Page 511]]

weights will be presented to the SSO or designee for approval. The 
weight assigned to each subfactor and, if numerically scored, each 
element must reflect its relative importance within the overall Mission 
Suitability factor. In conjunction, an evaluation plan covering not only 
Mission Suitability evaluation, but all evaluation factors (Mission 
Suitability, Cost, Relevant Experience and Past Performance, and Other 
Considerations), will be established by the SEB (see chapter 4). Mission 
Suitability evaluation subfactors, elements, and their weights shall be 
established and approved in advance of RFP issuance. The four factors 
and their supporting subfactors and, if numerically scored, elements 
shall be described in the RFP's Section M, ``Evaluation Factors for 
Award,'' and the weights associated with the individual Mission 
Suitability subfactors and elements shall be revealed in section M as 
well. However, care should be taken to avoid the impression of a 
mathematical evaluation devoid of judgment. The weights are intended to 
be used by the SSO as a guideline.
    (2) If all evaluation factors are considered by the SEB to be of 
approximately equal importance, a statement to that effect shall be 
included in the RFP. However, if there is a difference in the level of 
importance among the factors, then a statement shall be included in the 
RFP to advise the offerors of the relative importance of the factors. In 
this regard, one example of a statement that might be appropriate, 
depending on the nature of the requirements, type of contract, and 
objectives of the acquisition, is as follows:

``Of the four evaluation factors identified above, Mission Suitability 
and Cost are most important, and, as related to each other, are 
approximately equal in importance. The Relevant Experience and Past 
Performance factor is of somewhat less importance than either Mission 
Suitability or Cost, and the Other Considerations factor is of 
considerably less importance than Relevant Experience and Past 
Performance.
    The subfactors to be used in evaluating Mission Suitability and 
their corresponding weights are listed below in descending order of 
importance:

    Understanding of the Requirement (40 percent)
    Excellence of Proposed Design (30 percent)
    Management Plan (15 percent)
    Key Personnel (10 percent)
    Corporate or Company Resources (5 percent)

    The numerical weights assigned to the five subfactors identified 
above are indicative of the relative importance of those evaluation 
areas. The weights will be utilized only as a guide.''

                                302  Cost

    1. Before issuing a solicitation, the contracting officer and 
technical personnel shall (when it is feasible to do so) develop a 
Government cost estimate for the planned acquisition. Estimates can 
range from simple budgetary estimates to complex estimates based on 
inspection of the product itself and review of such items as drawings, 
specifications, and prior data. The SEB is tasked with the 
responsibility to ensure that the Government cost estimate properly 
reflects the effort to which the RFP applies.
    2. In the Cost factor evaluation, the SEB shall analyze the proposed 
costs or prices of all offerors in accordance with the criteria in FAR 
15.805. The SEB may use any or all tools available in performing these 
analyses, including information in the Armed Services Pricing Manual 
(ASPM). If field pricing/audit support is requested, the request should 
be tailored to reduce the time required for the support and still enable 
the SEB to properly review proposals. Whenever possible and appropriate, 
pricing/audit support should be limited to that information specifically 
required for the SEB deliberation process. All pricing/audit support 
requests should specifically identify the limited areas for which 
pricing assistance is required and should also specify the response date 
required for timely accomplishment of SEB proceedings. At the conclusion 
of its analyses, the SEB shall advise the SSO concerning--
    a. The costs or prices as proposed by all offerors, including those 
not within the competitive range;
    b. The comparison of costs proposed by all offerors, with the 
independent Government cost estimate, when feasible;
    c. The realism of costs proposed by all offerors determined to be 
within the competitive range. Cost realism is a review of the proposal 
to determine if the overall costs proposed are realistic for the work to 
be performed, if the costs reflect an offeror's understanding of the 
requirements, and if the costs are consistent with the various elements 
of the technical proposal. This type of analysis will be used in the 
Cost area and Mission Suitability or other technical areas;
    d. The probable cost to the Government of, at a minimum, each 
proposal within the competitive range. If it appears to the SEB that any 
offeror's approach(es) or plan(s) for accomplishing the proposed work 
will require modification in order to be acceptable to the Government, 
the SEB shall identify and assess the modification required, determine 
the probable cost of such modification, and include that probable cost 
assessment in its report to the SSO;
    e. The differences in business methods, operating procedures, and 
practices as they impact cost; and

[[Page 512]]

    f. Its level of confidence in the probable cost assessments as they 
pertain to each fully evaluated proposal.
    3. The probable cost should reflect the SEB's best estimate of the 
cost of any contract which might result from that offeror's proposal, 
including any recommended additions or reductions in personnel, 
equipment, or materials. To the extent that the recommended additions or 
reductions reflect a lack of understanding of the requirements of the 
RFP, that lack of understanding should be reflected in the scoring of 
the Mission Suitability factor, subfactors, and elements.
    4. A well-defined statement of work reflecting clear, concise work 
breakdown structures is of great value in obtaining well-structured 
proposals and in allowing the SEB to understand and assess proposed 
costs.
    5. All cost categories and amounts present in an offeror's cost 
proposal (including options) are to be analyzed by the SEB and reported 
to the SSO. In the event SEB members have different opinions as to the 
cost analyses and assessments of probable costs, these differing 
opinions should be reported to the SSO to aid in forming an opinion 
regarding the confidence to be attributed to the analyses and 
assessments.

              303  Relevant Experience and Past Performance

    1. This factor addresses evaluation of overall relevant experience 
and past performance for the company, not the experience and past 
performance of individuals involved with contract performance; the 
latter are to be evaluated under key personnel within the Mission 
Suitability factor.
    2. Relevant experience reflects the accomplishment of work by an 
offeror that is comparable to or related to the work or effort required 
under the instant procurement. Programs or projects of comparable 
magnitude that include technical, cost, schedule, and management 
constraints similar to those expected to be encountered in the instant 
procurement are clearly relevant.
    3. Past performance is especially important; how well the offeror 
performed on similar work may be a significant indicator of performance 
on the job at hand. Many organizations exhibit characteristics that 
persist over time--for example, the ability to move projects out of the 
research environment and to translate research findings into practical, 
results-oriented hardware; difficulty in transitioning conceptual 
efforts into soundly engineered ``hardcopy'' plans which can be produced 
economically; resiliency in the face of trouble; resourcefulness; 
management determination that the organization live up to its 
commitments; and skill in development of key people. It is essential to 
develop such an indicator independent of the offeror's proposal. It is 
the responsibility of the SEB to collect and document information on the 
past performance of, at a minimum, all offerors within the competitive 
range. The SEB should personally contact program or project managers 
within NASA or other Government agencies in a position to have 
responsibly observed performance of the offerors as either a prime or 
major subcontractor and obtain their views concerning the quality of the 
work the offeror did (or is doing) on comparable jobs. In the event a 
substantially unfavorable response is received which, in the opinion of 
the SEB will be of special significance to the SSO, the offeror in 
question will be provided an opportunity during written and/or oral 
discussions (see chapter 4) to clarify that response.
    4. The SEB is responsible for collecting and developing relevant 
experience and past performance information, identifying the source, and 
presenting it to the SSO. While the clearly relevant experience or past 
performance is of prime importance, other experience or past performance 
determined by the SEB to be significant or to be indicative of company 
experience or past performance should be noted and brought to the 
attention of the SSO. All pertinent information, including project 
manager assessments and offeror responses, will be:
    a. Made part of the SEB's records,
    b. Contained in the SEB report, and
    c. Presented to the SSO.
    5. The Relevant Experience and Past Performance factor is not 
numerically scored but is assigned an adjectival rating by the SEB.
    6. This factor may be a significant consideration in the selection 
process. Therefore, the basis of the evaluation must be thoroughly 
identified and well documented. While objectivity is desirable, 
reasonable judgments often have to be made in the evaluation process. 
Subjectivity is not improper; an SEB should not hesitate to make 
reasonable subjective evaluations of relevant experience and past 
performance based upon as much factual data and experiential information 
as can be reasonably accumulated.

                        304  Other Considerations

    1. This factor includes all considerations other than Mission 
Suitability, Cost, and Relevant Experience and Past Performance that the 
SSO will consider in making a final selection. Only Other Considerations 
specifically identified in the RFP shall be considered by the SSO in 
making a decision.
    2. Following is a listing of Other Considerations that may be 
appropriate to include in an RFP. Not all of the subfactors listed are 
necessarily applicable to all procurements; nor is the listing intended 
to be all inclusive or restrictive:
    a. Financial condition and capability.
    b. Corporate priority on the work being proposed, or importance of 
the business to corporate management.
    c. Labor-management relations.

[[Page 513]]

    d. Extent of proposed small and small disadvantaged business, and 
women-owned small business enterprise participation in subcontracting 
arrangements.
    e. Geographic distribution of the work to be performed.
    f. Acceptance of contract terms and conditions set forth in the RFP.
    g. Quality and productivity improvement plan.
    h. Any other subfactors pertinent to the particular procurement and 
identified under the Other Considerations factor within the RFP.
    3. Other Considerations shall be defined specifically in the RFP, 
evaluated by the SEB, and reported to the SSO. Certain subfactors under 
the Other Considerations factor, such as financial condition and 
capability, may undergo change up to the moment of source selection.
    4. Information regarding some of the Other Considerations is 
generally available to an SEB in the form of preaward surveys, NASA 
inspection reports, facility capability reports, purchasing system 
surveys, audit reports, and equal employment opportunity surveys. The 
SEB should make every reasonable effort to identify and use timely 
existing reports before initiating original inquiries. While written 
reports such as those mentioned in this paragraph may be significant, 
they should not be exclusively relied upon by the SEB. In addition, 
personal inquiries should be directed to Government managers likely to 
be knowledgeable about the offeror's record in these areas.

            305  Continuing Evaluative Responsibility of SEB

    Even after the SEB has made its formal report to the SSO, the SEB 
shall have continuing responsibility to report to the SSO, until its 
discharge, any circumstances that would change the SEB's evaluation 
findings relative to any evaluation factor (Mission Suitability, Cost, 
Relevant Experience and Past Performance, and Other Considerations) for 
any offeror. It is not intended that, after its report, the SEB actively 
pursue continuing evaluation. What is expected is that matters related 
to any of the evaluation factors which come to the attention of the SEB, 
and which might be expected to be pertinent to the selection decision, 
will be communicated to the SSO.

   Chapter 4--SEB Operating Procedures for Solicitation and Evaluation

                              400  General

    This chapter describes procedural steps in preparing the SEB for its 
work and outlines SEB activities for solicitation and evaluation of 
proposals.

                       401  Initial SEB Activities

    1. Official SEB activities commence upon receipt by the Chairperson 
of the letter establishing the SEB and designating its members which 
should be no later than approval of the procurement plan. However, prior 
to official establishment of the SEB, the proposed SEB Chairperson and 
members may hold meetings to accomplish such tasks as SEB member 
orientation to proposed operational procedures, security measures that 
will be utilized, and preliminary review of the proposed RFP.
    2. Once the SEB is established, the SEB Chairperson shall ensure 
that--
    a. A management and staffing plan is prepared, indicating necessary 
personnel and other resource requirements, including a time schedule for 
SEB actions and events leading to presentation of findings to the SSO;
    b. Each SEB voting member is furnished appropriate information 
regarding the nature of the procurement in addition to a copy of their 
designation letter, approved procurement plan, and the projected time 
schedule;
    c. Each SEB participant, voting and nonvoting, is cautioned 
concerning restrictions on disclosure of information during the SEB 
process, avoidance of conflicts of interest, and conformity with the 
NASA Standards of Conduct. Each SEB participant, voting and nonvoting, 
shall file a NASA Form 1270, ``Confidential Statement of Employment and 
Financial Interests,'' in accordance with NHB 1900.1, ``Standards of 
Conduct for NASA Employees.'' In addition, each SEB participant shall 
sign an appropriate nondisclosure statement (a sample nondisclosure 
statement is included in Appendix B). These documents shall be reviewed 
by the Associate General Counsel for General Law or designee for 
Headquarters employees or by the cognizant Field Installation Chief 
Counsel or designee for field installation employees.
    d. Letters are issued to all personnel involved in the SEB's 
activities advising them of pertinent restrictions and prohibitions, 
including a caution not to discuss any aspect of the procurement with 
anyone not having a need-to-know. The right to information on a need-to-
know basis does not extend to the normal chain of supervision of any 
member of the SEB or to any individual having technical responsibility 
for the effort being evaluated except as specifically approved by the 
SEB Chairperson on a case-by-case basis. Those individuals will also be 
notified by the SEB Chairperson, in writing, of the privileged character 
of proposal information;
    e. The list of sources to be solicited is developed and approved by 
the SEB with the assistance of the cognizant procurement and program or 
project offices;

[[Page 514]]

    f. A draft RFP is an effective method of obtaining industry comment 
on our requirements and engendering industry goodwill. A draft RFP 
should be used whenever it is expected to be beneficial. The draft RFP 
should be complete and include all applicable sections, including 
Sections L and M. Where appropriate, the Statement of Work or 
specifications may be released in advanced of the draft RFP;
    g. Prior to RFP issuance, the substance and the weight of evaluation 
factors, subfactors, and elements, as well as the substance of any 
applicable qualification standards, are presented to the SSO or designee 
for approval;
    h. The RFP is reviewed and approved by the SEB prior to issuance;
    i. During the competitive phase of the procurement, every effort 
must be made to assure fair and equitable treatment of all offerors 
(both prospective and actual). Upon release of the formal RFP, the 
Chairperson shall impose a communication blackout, in writing, by 
directing all personnel associated with the procurement to refrain from 
communicating with prospective offerors, formally or informally, 
regarding any aspects of the procurement. All inquiries regarding the 
procurement shall be referred to the contracting officer; and
    j. Prior to receipt of proposals, the evaluation plan is reviewed 
and approved by the SEB and cognizant management personnel. The 
evaluation plan, once approved, must be impartially applied by the SEB 
to each proposal.

                          402  Evaluation Plan

    1. The SEB evaluation plan consists of general and specific 
evaluation guidelines (and qualification standards, where applicable) 
established to assess each offeror's proposal relative to the evaluation 
factors, subfactors, and elements set forth in the RFP. The evaluation 
guidelines are designed to focus the evaluators' assessment. They are 
not weighted and are not listed in the RFP. However, the substance of 
the guidelines may be included in a narrative description of the 
subfactors and elements. In addition, the plan includes the system used 
in conducting the evaluation and scoring each offeror's proposal.
    2. The SEB determines what evaluation factors, subfactors, and 
elements to assign to the various committees and panels. While it is 
necessary to give committees and panels all information required to 
conduct an evaluation of their assigned area, it is not appropriate to 
disclose to them the specific scoring system used by the SEB in scoring 
proposals.
    3. The detailed SEB evaluation plan to be used by the SEB, 
committees, and panels should be approved before the RFP is issued but, 
in any case, shall be approved before proposals are evaluated.

                      403  Qualification Standards

    1. It is NASA policy to offer the opportunity to compete for its 
procurements as broadly as is consistent with the nature of each 
particular procurement. However, in view of the distinctive 
characteristics of NASA programs, those potential offerors that do not 
possess the minimum qualifications and resources necessary to perform 
the proposed work of a given procurement should not be encouraged to 
incur proposal and other expenses involved in competitive submissions.
    2. To accomplish this objective without limiting meaningful 
competition requires early and intense effort on the part of the SEB, 
working in conjunction with the program and procurement staff most 
familiar with the procurement requirements.
    3. When the nature of the procurement requires, qualification 
standards may be established in accordance with FAR 9.104-2. These will 
consist of special experience, capability, or specialized facilities 
critical to program performance aspects of the procurement.
    4. In establishing qualification standards, care must be exercised 
to restrict them to those essential to the successful completion of the 
contract work. Qualification standards may be employed only where it is 
possible for the SEB to establish standards which are justified by the 
nature of the particular procurement. These standards must be applied 
equally to all potential sources.
    5. When developed by the SEB and approved by the SSO or designee, 
qualification standards shall be clearly set forth in the RFP and 
included in the Commerce Business Daily synopsis.
    6. Approved qualification standards will be used by the SEB to 
screen proposed source list(s) so that only firms possessing those 
unique specialized facilities, capability, or experience deemed critical 
to program performance aspects of the procurement will be solicited. 
Notwithstanding the considerations that lead to the elimination of 
sources from solicitation, any firm may submit a proposal. These same 
qualification standards will be used to consider all sources who may 
submit a proposal. This assures that the presolicitation consideration 
of prospective contractor qualification standards does not act to 
restrict competition, but only to discourage costly proposal submissions 
from potential offerors to whom award would not appear likely and that 
all offerors shall have an equal opportunity to compete. If an offeror 
fails to meet the stated qualification standards, the proposal shall be 
rejected, not considered further in the evaluation, and the offeror 
informed of the basis of rejection.

[[Page 515]]

         404  Request for Proposals (RFP's)--Review and Approval

    1. Effectiveness of the evaluation is dependent, in large measure, 
on how well the work to be performed and the basic ground rules under 
which the competition will be conducted are described in the RFP. 
Accordingly, the RFP shall be reviewed by the SEB and approved by 
appropriate levels of management prior to issuance to ensure its 
acceptability. To streamline the solicitation review cycle, use of the 
Solicitation Review Board (SRB) technique, or its functional equivalent, 
is encouraged as an alternative to the traditional procedure of serial 
or sequential coordination of the solicitation with reviewing offices. 
The SRB is a meeting in which all offices having review and approval 
responsibilities meet to discuss the solicitation and their concerns. 
Individual reviewers should be given a reasonable amount of time to 
review the document prior to the meeting. At the conclusion of the 
meeting, recommendations for changes are made and the solicitation is 
formally approved or disapproved. Afterwards, formal written minutes 
reflecting the agreement of the SRB members shall be prepared and 
included in the contract file. Use of this technique not only expedites 
the review and approval process, but it also encourages the synergism of 
a number of acquisition professionals discussing their concerns in one 
forum.
    2. In reviewing the RFP, the SEB and appropriate management shall 
ensure that the following matters pertinent to source evaluation and 
selection are fully covered in the solicitation:
    a. Any qualification standards shall be identified and described.
    b. Evaluation factors shall be described, including a general 
narrative explanation of their relative importance.
    c. The Mission Suitability factor shall be described. Evaluation 
subfactors shall be identified and described, including their numerical 
weights. If deemed conducive to the evaluation process, elements of a 
subfactor shall be identified and described, including their numerical 
weights.
    d. The Cost factor shall be described.
    (1) When uncertainties involved in contract requirements necessitate 
the use of a cost-type contract, offerors may be motivated to perform 
within the proposed cost estimate through the inclusion of appropriate 
cost incentive arrangements.
    (2) Negotiated indirect cost rate ceilings shall be used only in 
accordance with FAR 42.707.
    e. The Relevant Experience and Past Performance factor shall be 
described. The identification data and contact or customer references 
required by NFS 1815.406-70(b)(6) for the conduct of this evaluation 
shall be stated. Offerors should be cautioned that omissions or an 
inaccurate or inadequate response to this evaluation category could have 
a negative effect on overall evaluation. Offerors should also be advised 
that, in addition to information they provide, the SEB will consider all 
information available to NASA regarding the offeror's relevant 
experience and past performance.
    f. The Other Considerations factor shall be described.
    g. The method of evaluation shall be explained clearly, but 
concisely, so that prospective offerors understand the SEB's use and 
treatment of the factors, subfactors, and elements.
    h. When cost proposals are permitted to be submitted after technical 
proposals, a notice shall be included in the RFP stating the required 
date for each submission.
    i. When applicable, a notice that a preproposal conference is to be 
held shall be included, stating its purpose, time, place, and scope.
    j. The Statement of Work shall describe as clearly and concisely as 
possible the product or service to be procured. It shall be structured 
to identify the important areas of emphasis. There must be no 
inconsistencies between it and the evaluation factors, subfactors, and 
elements to be used by the SEB and the SSO. Nonessential or unduly 
restrictive requirements shall be eliminated.
    k. Requirements for reports and data essential to contract 
evaluation and performance shall be clearly described, including a cross 
reference to the Statement of Work and a schedule for submission.
    l. When the procurement involves a major system under NMI 7120.4, 
Management of Major System Programs and Projects, and NHB 7120.5, 
Management of Major System Programs and Projects Handbook, the SEB will 
ensure that the RFP is prepared in terms of mission need so each offeror 
can respond with an alternative system design concept proposal to 
satisfy the mission need and can propose a technical approach, design 
features, and alternatives to schedule, cost, and capability goals 
consistent with that concept. In order to remove inhibitions to 
innovative solutions and to improve the approach to achieving program 
objectives, consideration should be given to conducting orientation 
briefings for prospective offerors and, where appropriate, solicit 
comments on a draft of the solicitation.
    m. Limitations on pages and the number of copies of offerors' 
initial proposals shall be included in accordance with NFS 1815.406(d). 
In no case shall the total proposal, excluding cost/price information, 
exceed 500 pages using the page definition of 1815.406(c), unless a 
different limitation is approved in writing by the Procurement Officer. 
Firm page limitations shall also be established for BAFOs, if requested. 
The appropriate BAFO page

[[Page 516]]

limitations should be determined by considering the complexity of the 
procurement and the extent of any written or oral discussions. The same 
BAFO page limitations shall apply to all offerors. Proposal pages 
exceeding the specified maximums shall be removed from the proposal or 
BAFO and not evaluated. One copy of these pages shall be retained for 
the official contract file and the remaining copies returned to the 
offeror. When excess pages are returned to the offeror, cite the 
Proposal Page Limitations provision of the solicitation.
    n. When applicable, a notice is included that offerors are invited 
to give oral presentations after receipt of proposals but before initial 
evaluation.
    3. The SSO may request a detailed review of the RFP beyond that of 
the SEB and cognizant management personnel or may, more specifically, 
request a detailed review of the Statement of Work, qualification 
standards, evaluation factors, subfactors, elements, or other areas 
pertinent to proposal preparation, evaluation, and source selection. 
Specific reviewing officials or offices may be designated for this 
purpose.
    4. The RFP shall comply with all current regulations and directives 
applicable to NASA solicitations; particular emphasis is placed on the 
requirements of FAR 15.406 and NFS 1815.406.
    5. When detailed program or project support plans will be required 
as part of the offeror's proposal but are not considered important 
discriminators in the evaluation process, the requirements for these 
plans shall be described in separate appendices to the Statement of Work 
in accordance with NFS 1815.406-70(a)(7).
    6. When, either before or after receipt of proposals, the Government 
modifies its requirements, the contracting officer is required to issue 
a written amendment to the RFP in accordance with FAR 15.606.

                       405  Preproposal Conference

    1. A preproposal conference to brief prospective offerors may be 
conducted after a solicitation has been issued but before proposals are 
received, in accordance with FAR 15.409. The contracting officer, in 
conjunction with the SEB, shall make a determination prior to issuance 
of the solicitation whether a preproposal conference will be held. 
Conferences should be held only when their value to the Government and 
prospective offerors is apparent, and the specifics of any given 
procurement should be carefully considered in assessing this value. 
Generally, these conferences are of most value in complex acquisitions 
where it is necessary to ensure that complicated specifications or 
requirements are fully and clearly understood. These conferences can 
also be of value in major on-site service contracts to familiarize 
offerors with the center organization and its physical layout, as well 
as the specific contract tasks. (In these latter cases site visits and 
observation of on-going operations should also be considered). In more 
routine, less complex procurements, however, the preproposal conference 
offers far less value and should normally not be used.
    2. When a preproposal conference is held, the solicitation shall 
include the Preproposal/Pre-Bid Conference provision at 1852.215-77, 
indicating the time and place of the conference. The conference shall be 
scheduled to permit prospective offerors sufficient time after the 
issuance of the solicitation to become familiar with its requirements 
but not too late to allow meaningful use of the information obtained at 
the conference.
    3. The conference should include a presentation of the significant 
aspects of the procurement followed by a question and answer session. A 
record of all information provided at the conference, together with a 
copy of all questions and answers, shall be provided to all prospective 
offerors by formal written amendment to the solicitation. If it becomes 
apparent at the conference that the RFP needs revision, the revised 
requirements must be included in a written amendment.

                     406  Offeror Oral Presentations

    1. In some cases, offeror oral presentations may expedite the 
evaluation and provide insight into the proposals. These presentations 
are of particular value in procurements when the proposal content is 
expected to be complex or when the proposal will include an unusually 
large number of volumes. The SEB should consider the specifics of a 
given procurement in assessing the value of offeror oral presentations, 
and should utilize them only when their value is apparent.
    2. If offeror oral presentations are held, they should be conducted 
before commencement of initial evaluation of proposals, normally not 
more than three days after receipt. The offerors should be instructed 
that the presentations are to be a ``roadmap'' to understanding their 
proposals, i.e., a discussion of the proposal organization and layout, 
and where required information and elements are located. Although the 
offeror's basic approach to satisfying solicitation requirements may be 
explained, it is to be done so only in general terms and only to 
expedite the Government's formal evaluation. The presentation is not 
intended for the offerors to provide additional information or 
supporting rationale that was not included in the proposal, nor is it to 
be a forum to ``market'' the proposal. Government attendees shall not 
engage in any discussions during the oral presentation, and no proposal 
revisions may be accepted as part of the presentation. The Government's 
evaluation of offeror proposals is be based on the contents of the 
initial proposal, and any information not included in

[[Page 517]]

the initial proposal that is provided at the oral presentation shall not 
be evaluated.
    3. A typical presentation consists of a strictly enforced one to two 
hour briefing period followed by a question and answer period. 
Government evaluators may ask questions about the proposal ``roadmap'' 
only and should not engage in detailed discussions over the value or 
validity of the offeror's proposed approach to satisfying solicitation 
requirements. All offerors must be afforded the same opportunity to 
brief and the same briefing groundrules. If considered appropriate, 
limitations may be placed on the number of offeror and Government 
attendees to ensure the presentation meets its intended purpose. The 
order of presentation should be determined at random.
    4. The SEB may determine which of the Government participants in the 
evaluation may attend the offeror oral presentations. However, to 
eliminate bias and to ensure objectivity during the evaluation process, 
any individual who attends one presentation must attend all 
presentations, unless prevented from doing so by emergency or other 
unforeseen event. The SEB shall retain one copy of all briefing 
materials (if any) used in the presentation, as well as SEB-prepared 
minutes of the meeting, as historical records for the official contract 
file. However, the briefing materials and minutes shall not be used in 
the formal evaluation process.

                         407  Initial Evaluation

    1. Upon receipt of proposals, the contracting officer shall mark 
each proposal with the date and time of receipt and forward all 
proposals to the SEB Chairperson or the SEB Recorder for control and 
safeguarding throughout the evaluation process.
    2. Late proposals or modifications shall be handled in accordance 
with FAR 15.412.
    3. Procedure for Evaluation of a Single Proposal--
    a. If only one proposal is received in response to the solicitation, 
the contracting officer shall examine the situation to ascertain the 
reasons for the single response. The contracting officer shall include a 
written notation in the contract file describing the circumstances 
surrounding the receipt of a single proposal as well as a determination 
whether or not the solicitation was or was not flawed or unduly 
restrictive, prior to releasing the proposal to the SEB for evaluation.
    b. The SEB shall complete a limited preliminary evaluation to 
determine that the single proposal submitted satisfies stated 
qualification standards, if any, and is otherwise an acceptable proposal 
(see subparagraph 406.5). Upon completion of this limited preliminary 
evaluation, a letter shall be forwarded to the SSO presenting a summary 
of the evaluation results.
    c. The SSO shall as a result of reviewing the SEB summary, and the 
contracting officer's examination of the facts and determination, notify 
the SEB Chairperson that either--
     (1) The SEB is instructed to proceed with preestablished SEB 
procedures, including complete initial evaluation, oral and written 
discussions, request and receipt of a Best and Final Offer (BAFO), and 
final evaluation, culminating in a formal presentation to the SSO for 
approval to enter into negotiations;
    (2) The contracting officer is instructed to immediately enter into 
negotiations resulting in a complete contract document, signed by the 
offeror, to be signed by the contracting officer upon approval by the 
SSO. Upon completion of the negotiations, the SEB shall present the 
results to the SSO for approval; or
    (3) The SEB Chairperson is granted full delegation of authority to 
disband the SEB and to instruct the contracting officer to conduct 
negotiations for contract award without further SSO involvement.
    (4) The contracting officer is instructed to reject the single 
proposal received and to cancel the solicitation.
    d. These procedures are likewise applicable when the number of 
proposals equals the number of awards contemplated or when only one 
acceptable proposal is received as defined by subparagraph 406.5 of this 
handbook.
    4. Committee Evaluations--
    a. The initial phase of evaluation generally will involve 
established committees. As promptly as possible, committees are to be 
convened. The SEB Chairperson shall transmit to the committees proposals 
or portions of proposals to be evaluated, instructions regarding the 
expected function of each committee, and all data considered necessary 
or helpful. The committee chairperson is responsible for instructing the 
members as to committee functions, responsibilities, and procedures.
    b. While oral reports may be given to the SEB, the committee 
function requires the submission of a written report which should 
include--
     (1) Copies of individual worksheets and supporting comments to the 
lowest level evaluated;
    (2) An evaluation sheet summarized for the committee as a whole; and
    (3) A statement for each proposal describing any strengths or 
weaknesses which significantly affected the evaluation and stating any 
reservations or concerns, together with supporting rationale, which the 
committee or any of its members want to bring to the attention of the 
SEB.
    c. It is imperative that the SEB provide clear traceability 
throughout the evaluation process. This traceability must exist at all

[[Page 518]]

levels of the SEB process. All reports submitted by committees or panels 
will be retained as part of the SEB records but need not necessarily be 
included as part of the SEB report to the SSO. A committee report should 
be included with necessary to the SSO's understanding of the SEB's 
action.
    d. Each voting SEB member shall thoroughly review each proposal. 
Committee reports and findings shall be reviewed by the SEB. The SEB is 
to consider the committee evaluation, take into account any reservations 
or concerns stated by the SEB members and the committee, and rate or 
score the proposals for each evaluation factor, subfactor, and element 
according to its own collective judgment. SEB minutes shall reflect this 
evaluation process which shall be consistent with the approved 
evaluation plan.
    5. Identification of Unacceptable Proposals--
    a. The SEB may discontinue the evaluation of any proposal which is 
unacceptable because--
     (1) It does not represent a reasonable initial effort to address 
itself to the essential requirements of the RFP or clearly demonstrates 
that the offeror does not understand the requirements of the RFP;
    (2) In research and development procurement, a substantial design 
drawback is evident in the proposal, and sufficient correction or 
improvement to consider the proposal acceptable would require virtually 
an entirely new technical proposal; or
    (3) It contains major technical or business deficiencies or 
omissions or out-of-line costs which discussions with the offeror could 
not reasonably be expected to cure.
    b. Simple technical nonresponsiveness in the sense in which the term 
is used in sealed bidding is not alone sufficient to constitute 
unacceptability if the proposal is otherwise competitive and written 
and/or oral discussions, or negotiations after selection, reasonably 
offer the likelihood of resolution. When there is doubt as to whether a 
proposal should be rejected initially as unacceptable, that doubt shall 
be resolved by including it for further consideration.
    c. The SEB must document its judgment that the deficiencies of any 
proposal are sufficiently significant to warrant discontinuing 
evaluation of the proposal at this point in the process.
    6. SEB Findings--
    a. Preparing the results of the initial evaluation in a narrative 
SEB report is an important aspect of the evaluation process. The SEB 
should be aware that the SEB report and presentation provide the 
principal tools available to the SSO to perform a comparative analysis 
in making a source selection decision. Guidelines for the report and 
presentation are set forth in Chapter 5 and Appendix C. For each 
proposal, the SEB should indicate in the narrative whether the proposal 
meets or fails to meet any of the requirements of the RFP; all strengths 
and weaknesses of the proposal and whether they are correctable; the 
proposed and probable cost (normally required only for those offeror(s) 
in the competitive range or those offeror(s) eliminated from competitive 
range on the basis of cost); the technical, schedule, and cost risk 
associated with the proposal; and the adjectival rating of the Relevant 
Experience and Past Performance and Other Considerations evaluation 
factors. Strengths and weaknesses must be further defined in the SEB 
report as major or minor to provide a valuable summary of discriminators 
among proposals in addition to supporting the adjectival ratings 
assigned to each Mission Suitability subfactor and element by the SEB, 
and for the Mission Suitability factor as a whole. In addition to the 
narrative report of evaluation findings, the SEB will apply the Mission 
Suitability scoring system detailed in the evaluation plan to rate each 
proposal in relation to the Mission Suitability evaluation subfactors 
and elements.
    b. In structuring an applicable rating system, the following 
adjective ratings, definitions, and percentile ranges shall be used for 
the evaluation of Mission Suitability subfactors, and, if individually 
weighted and scored, elements. (The total proposal should also be 
classified with an appropriate adjectival rating for Mission 
Suitability.)

                                                                        
                                                              Percentile
                                                                 range  
                                                                        
Excellent--A comprehensive and thorough proposal of                     
 exceptional merit with one or more major strengths. No                 
 weaknesses or only minor correctable weaknesses exist......     91-100 
Very Good--A proposal which demonstrates overall competence.            
 One or more major strengths have been found, and strengths             
 out balance any weaknesses that exist. Any major weaknesses            
 are correctable............................................      71-90 
Good--A proposal which shows a reasonably sound response.               
 There may be strengths or weaknesses, or both. As a whole,             
 weaknesses, not offset by strengths, do not significantly              
 detract from the offeror's response. Major weaknesses are              
 probably correctable.......................................      51-70 
Fair--A proposal that has one or more weaknesses. Weaknesses            
 have been found that outbalance any strengths that exist.              
 Major weaknesses can probably be improved, minimized, or               
 corrected..................................................      31-50 

[[Page 519]]

                                                                        
Poor--A proposal that has one or more major weaknesses which            
 are expected to be difficult to correct, or are not                    
 correctable................................................       0-30 
                                                                        

    c. Normally, proposals are to be rated using adjectival ratings on 
two occasions as follows:
    (1) Upon completion of the initial evaluation of proposals, and
    (2) Upon completion of the final evaluation of the BAFO's.
    Both ratings will be maintained by the SEB, included in the SEB 
report, and presented to the SSO. There shall be clear traceability of 
any scoring changes between initial and best and final proposals.
    d. Proposals may also be evaluated and scored under an alternate 
method that does not require scoring after initial evaluation of 
proposals. It normally may only be used when two conditions exist: (1) 
relatively few (e.g., five or fewer) proposals are received; and (2) a 
full scoring or ranking of proposals is not required to make the 
determination that all offerors are in the competitive range. If during 
the initial evaluation of proposals, it becomes apparent that all 
offerors will be in the competitive range, the SEB may then elect to use 
the alternate method of initial evaluation by making this competitive 
range determination without formally scoring or ranking the proposals or 
generating the extensive documentation required to support this scoring 
or ranking. Once the alternate method is chosen, the initial evaluation 
is completed when the SEB determines strong and weak points for all 
proposals and develops questions for written and oral discussions. The 
SEB will then proceed directly to the discussion phase of the evaluation 
process. Only the BAFO is fully scored and ranked, and the results of 
this scoring or ranking are presented to the SSO to assist the selection 
decision. The principal benefit in using the alternate scoring method is 
the reduced time and resources associated with not performing two 
separate proposal scorings along with the attendant documentation.
    7. Determination of Competitive Range--
    a. Subsequent to the initial identification of proposals considered 
unacceptable, the SEB will compile initial evaluation findings, of all 
remaining acceptable proposals, sufficient for determination of the 
competitive range in accordance with FAR 15.609 and NFS 1815.613-
71(b)(4). The competitive range shall be determined by the SEB together 
with the contracting officer on the basis of Mission Suitability, Cost, 
Relevant Experience and Past Performance, and Other Considerations 
stated in the solicitation and shall include all proposals that have a 
reasonable chance of being selected for award. Competitive range 
determinations are final unless the SSO determines otherwise.
    b. The objective of a competitive range determination is not to 
eliminate proposals but to facilitate competition by conducting written 
and/or oral discussions with only those offerors who have a reasonable 
chance of being selected for award. Where there is doubt as to whether a 
proposal is or is not within the competitive range, the proposal should 
be included within the competitive range. The determination of 
competitive range is a complex determination based on informed judgment. 
All competitive range decisions shall be completely and adequately 
documented in the contract file in accordance with NFS 1815.613-
71(b)(4).
    8. Notification of Unsuccessful Offerors. The contracting office 
shall notify each unsuccessful offeror in accordance with FAR 15.1002.

                          408  Final Evaluation

                  1. Evaluation of Plant and Facilities

    a. Inspections at the plants of competing offerors could provide 
valuable insight into the SEB's evaluation of proposals. For instance, 
in procurements where significant experimental, research, developmental, 
testing, fabrication, or other work is to be performed (the quality of 
which may be affected by a contractor's plant or facilities), a complete 
evaluation may require an on-site visit by the SEB. For other 
procurements, e.g., support services contracts, plant inspections may 
serve no useful purpose.
    b. When plant inspections are conducted, the visiting team shall 
include SEB members and any qualified experts required by the SEB. At 
least one SEB member shall be the same on all team visits to provide 
continuity and a basis for comparison. Visits are to be conducted, 
generally, after the SEB's initial evaluation has been completed and for 
a specific, clearly understood purpose. Visits shall be conducted only 
with the approval of the SEB Chairperson, who will ensure that all 
visits are made on an impartial basis. All personnel must remember that 
only the contracting officer can commit NASA and that they must avoid 
any contact with an offeror that is not essential or which could raise 
questions of impropriety. A visit to all offerors within the competitive 
range is advisable if plant inspections are being conducted.
    c. Some potential benefits of plant visits are--
    (1) Reviewing with resident Government personnel relevant experience 
and past performance;
    (2) Reviewing the degree of capability and interest of the offeror 
to undertake the

[[Page 520]]

project in light of other work planned or in process; and
    (3) Examining such matters as--
    (a) Plant capacities;
    (b) Management and technical capability of personnel;
    (c) Availability of existing facilities, both Government-owned and 
contractor-owned;
    (d) Adequacy of accounting practices and cost controls;
    (e) Adequacy of estimating systems; and
    (f) Ability to forecast and meet program schedules.

                   2. Written and/or Oral Discussions

    a. Except as provided in FAR 15.610(a), the contracting officer 
shall conduct written and/or oral discussions with all responsible 
offerors in the competitive range. If, however, a decision is made in 
accordance with FAR 15.610(a)(3) to award without conducting written 
and/or oral discussions upon the completion of the initial evaluation, 
the SEB Chairperson shall forward a letter to the SSO for approval 
presenting a summary of the evaluation results. Upon SSO approval, the 
contracting officer shall undertake to complete all actions necessary to 
award the contract, without discussions or negotiations, to the offeror 
submitting the lowest overall cost proposal.
    b. Written and/or oral discussions shall be conducted in accordance 
with FAR 15.610 (with the exception of FAR 15.610(c)(2)) and NFS 
1815.613-71(b)(5). Preparation for written and/or oral discussions 
should include, but not be limited to, the establishment of the 
following:
    (1) The time(s) and place(s) for conducting discussions. This 
requires establishment of the order of discussions with offerors. When 
feasible, the order should be established alphabetically or by lot. When 
discussions are to be at offeror's plants or offices it may be that 
geographic dispersion will be the deciding factor. The objective is 
impartiality.
    (2) Topics for discussion. This will include preparation and 
issuance of written questions common to all offerors, as well as those 
that are peculiar to individual offerors, allowing adequate time for 
development of responses by offerors.
    (3) The Government team that will conduct the discussions. The 
contracting officer, together with the SEB Chairperson, will designate 
appropriate procurement, pricing, and technical personnel for the 
Government team in addition to identifying the individuals specified in 
the offeror's proposal requested to be present for the discussions.
    c. The contracting officer, together with or on behalf of the SEB, 
will conduct written and/or oral discussions of the effort to be 
accomplished and the cost or price of the effort with all offerors 
determined to be within the competitive range. The discussions are 
intended to assist the SEB--
    (1) In understanding fully each offeror's proposal and its strengths 
and weaknesses based upon the individual efforts of each offeror;
    (2) In assuring that the intent and the points of emphasis of RFP 
provisions have been adequately conveyed to the offerors so that all 
offerors are competing equally on the basis intended by the Government;
    (3) In evaluating the personnel proposed by each offeror; and
    (4) In presenting a report to the SSO that makes the discriminators 
identified among proposals clear and visible.
    d. In cost-reimbursement type contracts and all research and 
development contracts, the contracting officer shall point out instances 
where the meaning of some aspect of a proposal is not clear and 
instances in which some aspects of the proposal failed to include 
substantiation for a proposed approach, solution, or cost estimate. 
However, where the meaning of a proposal is clear and the SEB has 
sufficient information to assess its validity and the proposal contains 
a weakness that is inherent in an offeror's management, engineering, or 
scientific judgment or which is the result of its own lack of competence 
or inventiveness in preparing its proposal, the contracting officer 
shall not point out the weaknesses. The possibility that such 
discussions may lead an offeror to discover that it has a weakness is 
not a reason for failing to inquire into a matter where the meaning is 
not clear or where insufficient information is available, since 
understanding of the meaning and validity of the proposed approaches, 
solutions, and cost estimates is essential to a sound selection. 
Offerors should not be informed of the relative strengths or weaknesses 
of their proposals in relation to those of other offerors. To do so 
would be contrary to regulations which prohibit the use of auction 
techniques (see FAR 15.610(d)(3)). In the course of discussions, 
Government participants should be careful not to transmit information 
which could give leads to one offeror as to how its proposal may be 
improved or which could reveal a competitor's ideas.
    e. In fixed-price type contracts other than for research and 
development, the specifications ordinarily describe the Government's 
requirements with more particularity than is possible in cost 
reimbursement or research and development contracting, so that less 
emphasis is placed on an offeror's introduction of scientific, 
engineering, and management innovations. The contracting officer, in 
written and/or oral discussions, shall point out instances in which some 
aspect of a proposal contains a weakness in relation to the Government's 
requirements. However, the contracting officer shall neither point out 
the relative strengths or weaknesses of a proposal in relation to those 
of other offerors nor transmit information which could give

[[Page 521]]

leads to one offeror as to how its proposal may be improved or which 
could reveal a competitor's ideas. The contracting officer shall point 
out price elements that do not appear to be justified and shall 
encourage offerors to put forward their most favorable price proposals, 
but shall not discuss, disclose, or compare price elements of any other 
offeror.
    f. Although unusual, if the SEB and the contracting officer, after 
conducting written and/or oral discussions, determine that a proposal no 
longer has a reasonable chance of being selected for contract award, the 
proposal can be eliminated from the competitive range in accordance with 
FAR 15.609(b). The contracting officer shall notify the unsuccessful 
offeror in writing that its proposal is no longer eligible for award.
    g. Normally, written or oral discussions are completed with each 
offeror in the competitive range in one round. In some cases, however, a 
single round of discussions prior to requesting BAFOs may be 
insufficient for a comprehensive evaluation, and multiple sessions may 
be conducted. In these cases, when discussions have been declared closed 
and BAFOs requested, the approval of the Associate Administrator for 
Procurement (or the Procurement Officer when the value of the 
procurement is less than $25 million) is required to reopen discussions 
(see 1815.611). Each subsequent round of discussions is subject to the 
same groundrules as the initial round (e.g., no discussion of weaknesses 
where such discussion is otherwise prohibited).

                    3. Best and Final Offers (BAFO's)

    a. The contracting officer will issue to all offerors still within 
the competitive range a request for Best and Final Offers (BAFO's) in 
accordance with FAR 15.611. Oral requests for BAFO's shall be confirmed 
in writing.
    b. A common cutoff date and time that allows each offeror a 
reasonable opportunity to support and clarify its proposal through 
submission of a written BAFO shall be established. An offeror may, on 
its own initiative, revise its proposal and make corrections or 
improvements until the established cutoff date.
    c. Offerors should be cautioned to provide supporting documentation 
for any changes to their prior offers. Any revision received after the 
established common cutoff date must be considered late in accordance 
with FAR 15.412.
    d. The cutoff date must be such as to permit adequate time for all 
offerors to submit revised proposals; particular care must be taken to 
ensure that there is no compression of time for the offeror with whom 
discussions were last held, i.e., if 2 weeks is adequate time for 
submission, then the time allowed should be 2 weeks from the date of 
last discussions.

                         4. Evaluation Findings

    a. After consideration of all committee reports, information 
received from offerors through plant visits, written and/or oral 
discussions, and BAFO's, the SEB shall conduct a final evaluation of 
proposals.
    b. The final evaluation must build on the SEB's earlier recorded 
findings. The purpose of the final evaluation is to determine the 
effects, if any, of discussions and BAFO's on the SEB's earlier Mission 
Suitability scores and adjectival ratings as well as on the initial 
evaluation of Cost, Relevant Experience and Past Performance, and Other 
Considerations. Therefore, a clear and logical audit trail shall be 
maintained for the rationale for changes in ratings and scores, 
including a detailed account of the SEB decisions leading to the final 
ratings and scores.
    c. The final evaluation must represent the collective judgment of 
the SEB regarding its assessment of the offerors for each factor 
evaluated including its assessment of the Mission Suitability 
subfactors, elements, if any, and its associated ratings, scores, and 
findings. The adjectival ratings and numerical scores shall reflect the 
strengths, weaknesses, and discriminators the SEB finds in the 
proposals. In this way, the reasons for differences in adjectival 
ratings, numerical scores, and findings can readily be explained to and 
understood by the SSO.
    d. All significant SEB evaluation findings shall be fully documented 
and incorporated into a written report which will serve as the basis for 
the selection decision by the SSO.

       Chapter 5--Source Evaluation Board Report and Presentation

                              500  General

    This chapter describes the requirements for the written report and 
oral presentation to the SSO.

                  501  Responsibilities and Procedures

    1. The SEB shall prepare a written report of its findings, signed by 
the Chairperson and all voting members of the SEB. It shall present its 
written report and make an accompanying oral presentation to the SSO. 
Guidelines for the written report and the oral presentation are set 
forth in Appendix C.

                2. SEB Preliminary Presentation (Dry Run)

    a. When the Administrator is the SSO, a preliminary presentation 
should be made to the Field Installation Director and to the Official-
in-Charge of the cognizant Headquarters Program Office. When the 
Official-in-Charge of the cognizant Headquarters Program Office is the 
SSO, a preliminary presentation should be made to the Field Installation 
Director and the cognizant Headquarters Deputy Program/Staff Associate

[[Page 522]]

Administrator or the official responsible for the specific project. The 
dry run presentation is the same presentation prepared for the SSO. 
Attendance at the dry run shall be restricted to those personnel who are 
involved in the selection process or who have a valid need-to-know. For 
Headquarters dry runs, an attendance list will be issued by the SEB 
coordinator in the Office of Procurement (Code HS). Admittance to the 
dry run will be restricted to those individuals whose names appear on 
the attendance list. However changes proposed 24 hours before the 
presentation will be considered. Persons not on the list will not be 
admitted without the prior authorization of the SEB coordinator. For 
field installation dry runs, the attendance list will be prepared by a 
designee of the Procurement Officer.
    b. The following personnel or designees should attend the 
Headquarters dry run presentation:
    (1) Cognizant program/staff officials.
    (2) Official-in-Charge of the cognizant Headquarters Program Office 
in those cases when the Administrator serves as the SSO.
    (3) NASA Comptroller.
    (4) Associate Administrator for Procurement and/or Deputy Associate 
Administrator for Procurement.
    (5) General Counsel and/or Associate General Counsel (Contracts).
    (6) Associate Administrator for Safety, Reliability, 
Maintainability, and Quality Assurance, when SRM&QA matters are 
involved.
    (7) Field Installation Director.
    (8) Field Installation Chief Counsel.
    (9) Selected voting and nonvoting ex officio SEB members (no 
designees).
    (10) Field Installation Procurement Officer.
    (11) Headquarters procurement personnel responsible for support to 
the Headquarters cognizant Program/Staff Office.
    (12) Other personnel as approved by the Official-in-Charge of the 
cognizant Headquarters Program Office and the Office of Procurement 
(Code HS).
    c. The SEB Chairperson or designee is responsible for arranging and 
coordinating the SEB dry run with the SEB coordinator. The SEB dry run 
should take place far enough in advance of the presentation to the SSO 
to allow for changes or revisions to the presentation material, if 
necessary. The material used during the dry run presentation is 
considered to be ``SEB Sensitive'' and should be treated accordingly. 
Consequently, the SEB Chairperson is responsible for providing a 
projectionist, who has been SEB cleared, to present the material for 
both presentations.
    d. The dry run presentation, as well as the presentation to the SSO, 
will ordinarily be made by the SEB Chairperson; however, if another 
official has been designated to make the final presentation to the SSO, 
that person shall also make the dry run presentation. The SEB 
presentation material shall be delivered to the SEB coordinator for 
control and distribution no later than 7 working days before the 
scheduled dry run presentation date. The SEB presentation material 
includes 10 copies of the SEB report and charts.

                       3. SEB Formal Presentation

    a. The SEB shall present its evaluation findings to the SSO as the 
basis for a sound selection decision. This formal presentation should be 
attended by the same personnel or designees in attendance at the dry 
run, with the exception of the inclusion of the SSO at the formal 
presentation. Continuity of attendees assures a more efficient formal 
presentation in addition to limiting access to SEB sensitive data.
    b. The cognizant procurement analyst in the Procurement Operations 
Division (Code HS) will function as the SEB coordinator and will perform 
coordination functions for the formal presentation when the 
Administrator or the Official-in-Charge of the cognizant Headquarters 
Program Office serves as the SSO. These functions include arranging the 
time and place of the presentation; assuring, with the concurrence of 
the appropriate personnel in the Office of the Administrator, proper 
attendance; and distributing SEB reports and graphic material.
    4. The designated individuals to whom the SEB presentation(s) (dry 
run and final) are made will be responsible for ensuring that--
    a. The requirements of this handbook and all applicable agency 
policies have been complied with in the solicitation and evaluation 
processes;
    b. The written report and presentation accurately convey SEB 
activities and findings;
    c. The oral presentation is arranged and conducted in a professional 
manner; it is complete and informative; and it can be concisely 
presented within the time allocated by the SSO; and
    d. No changes (1) to established evaluation factors, subfactors, 
elements, weights, or scoring systems or (2) in the substance of the 
SEB's findings shall be made. They may, however, direct the SEB to 
reconvene to rectify procedural omissions, irregularities or 
inconsistencies, substantiate its findings, or revise the organization 
of the written report and/or the method of presentation.
    5. All copies of the SEB reports and presentation material contain 
sensitive business information in addition to ``SEB Sensitive'' data and 
shall be adequately safeguarded throughout the source selection process. 
Physical safeguarding of sensitive data includes, but is not limited 
to--
    a. Controlling the number of copies of proposals and SEB reports;
    b. Restricting access to SEB work areas;

[[Page 523]]

    c. Securing SEB material under locked conditions or in vaults;
    d. Minimizing SEB presentations other than the dry run and formal 
presentations; and
    e. Limiting attendees at SEB presentations.

                       Chapter 6--Source Selection

                              600  General

    This chapter provides guidelines relating to the source selection 
decision, notice and debriefing for unsuccessful offerors, source 
selection statement, and multiple selection decisions.

                     601  Source Selection Decision

    1. The SSO shall use the evaluation factors, subfactors, and 
elements set forth in the solicitation to make the source selection 
decision. The SSO shall consider the SEB findings and the advice 
provided by cognizant line and staff management at the conclusion of the 
SEB presentation in determining which of the proposals submitted in 
response to the solicitation would prove most advantageous to the 
Government, all factors considered.
    2. In accordance with NASA policy and FAR 15.613, upon source 
selection by the SSO, the contracting officer will proceed with 
negotiations leading to award of contract(s).

          602  Notice and Debriefing for Unsuccessful Offerors

    1. a. When a proposal is no longer to be considered for contract 
award, the offeror will be promptly notified by the contracting officer, 
in writing, together, with a general, brief explanation of the major 
reasons in accordance with FAR 15.1002 and NFS 1815.613-71(b)(7). There 
are, generally, five points in the SEB process when it may be determined 
that a proposal is no longer to be considered for contract award:
    (1) After determination that stated qualification standards, if any, 
have not been satisfactorily met.
    (2) After identification of an unacceptable proposal in accordance 
with paragraph 406.5 of this handbook.
    (3) After determination of the competitive range resulting from the 
initial evaluation of proposals.
    (4) After written and/or oral discussions resulting in a 
determination that a proposal does not stand a reasonable chance of 
being selected for award.
    (5) After the selection decision by the Source Selection Official.
    b. In the first four instances, the notice shall state that a 
revision of the proposal will not be considered. Post-selection notices 
shall be issued in accordance with FAR 15.1002(c) and 15.1003.
    2. If any offeror requests a debriefing in writing, the offeror 
shall be formally debriefed and furnished the basis for the selection 
decision after the final source selection decision by the SSO. This 
debriefing should normally take place prior to contract award and be 
conducted in accordance with 15.1003. If the situation will not permit 
delaying the award in order to debrief unsuccessful offerors, the 
debriefing may be conducted after award.

                     603  Source Selection Statement

    1. When the final source selection decision has been made by the 
SSO, a Source Selection Statement shall be prepared for the SSO's 
signature in a manner releasable to the competing offerors and the 
general public, if requested. When the Administrator or an Official-in-
Charge of a Headquarters Program Office is the SSO, the Statement will 
be prepared by the Office of General Counsel. Source Selection 
Statements prepared at the field installation should be drafted by the 
Field Installation Chief Counsel or designee.
    2. Source Selection Statements must describe the procurement; the 
SEB evaluation procedures; the substance of the Mission Suitability 
evaluation; evaluation of the Cost factor, Relevant Experience and Past 
Performance factor, and Other Considerations factor involved in reaching 
the selection decision. There should be coverage of unacceptable 
proposals, the competitive range determination, late proposals, or any 
other pertinent considerations applicable to the specific decision. It 
must be stressed that nothing can substitute for the use of good 
judgment. The Source Selection Statement must be self-sufficient and 
must reveal sound rationale for the selection clearly and succinctly, 
without revealing the scores involved, the proposed prices, or any other 
confidential business information.
    3. Source Selection Statements shall be signed as soon as 
practicable after the final selection is made. The SSO may desire to 
have one or more key officials who participated in the selection 
decision concur on the Source Selection Statement prior to final 
signature.
    4. As indicated in paragraph 1, Source Selection Statements 
generally may be released to competing offerors and the general public; 
however, it is anticipated that the Statement will not always be 
available in final form or signed by the Source Selection Official at 
the time of debriefing of unsuccessful offerors. A draft of the decision 
portion of the Statement that has been reviewed by the SSO or a 
concurring official should be available to the designated Debriefing 
Official for guidance at the debriefing. In order to avoid any 
misunderstanding, the Source Selection Statement rationale contained in

[[Page 524]]

the draft Statement should have the approval of the SSO or a concurring 
official prior to any debriefing(s). This will enable NASA to 
demonstrate, for the record, that the SSO's selection rationale was not 
modified substantially (editorial changes can be made) as a result of 
the debriefings. If requested by an offeror a copy of the final Source 
Selection Statement will be furnished to the offeror when it is signed 
by the SSO, subject to the provisions of paragraph 5.
    5. a. Under some situations, multiple selections are made for the 
purpose of permitting a design or other competition to continue until a 
final selection is made for a single contractor to undertake full-scale 
development. Stating the strengths and weaknesses in the Source 
Selection Statement in these cases may result in the premature 
disclosure of innovative concepts, designs, and approaches. Release of 
these Selection Statements to competing offerors or the general public 
prior to final selection of concept(s) or contractor(s) for full-scale 
development could compromise the integrity of the competition by making 
possible a transfusion of ideas which could also inhibit offerors during 
the early phase from offering their best and most promising ideas for 
meeting the mission need.
    b. Accordingly, unless prior approval is obtained through the 
Headquarters Procurement Operations Division (Code HS) with the 
concurrence of the Office of General Counsel, Source Selection 
Statements for the selection of alternative system design concepts 
subject to NMI 7120.4, Management of Major System Programs and Projects, 
and NHB 7120.5, Management of Major System Programs and Projects 
Handbook, are not to be released to competing offerors or the general 
public, if requested, prior to the release of the Source Selection 
Statement for full-scale development.
    c. A similar problem may occur in other procurements where 
competition continues but is not covered under NMI 7120.4 or NHB 7120.5. 
When possible, care should be taken to set forth the strengths and 
weaknesses and other information in a manner that will avoid this 
problem. However, if this is not feasible, the Statement should not be 
released except in accordance with the procedures of the Freedom of 
Information Act, 5 U.S.C. 552.

                    604  Multiple Selection Decisions

    1. While SEB procedures contemplate that the SSO will be in a 
position to select a single source for final contract negotiations 
subsequent to the SEB presentation, a variety of considerations may lead 
the SSO to direct that contract negotiations be conducted with two or 
more offerors. Such negotiations are to result in complete contract 
documents signed by the offerors which may be accepted by the agency 
upon final selection of the successful offeror by the SSO.
    2. The SEB shall consult with the SSO, the contracting officer, and 
the negotiating team regarding negotiation positions, objectives, and 
information to be obtained during negotiations to assist the SEB in 
making its final evaluation and report after the negotiations. The 
objectives of negotiations are essentially the same as those where a 
single offeror has been selected for final contract negotiation and 
award; each offeror's correctable weaknesses should be pointed out and 
corrected during negotiations, using whatever technical and other 
information is known and which the Government has the right to use. 
Similarly, negotiations should be conducted to result in a fair and 
reasonable cost or price. Particular attention shall be given to any 
instructions which the SSO may have given when he/she directed the 
multiple contract negotiations.
    3. The final contract negotiation process differs from the written 
and oral discussions previously held with offerors in the competitive 
range. Discussions have the specific function of obtaining information 
for evaluation and selection purposes, while the final contract 
negotiations have the additional function of presenting that information 
in contractually binding form. For this reason, it is essential that 
each offeror be brought to the most favorable terms that the negotiation 
process can produce, including technical and scientific approaches, 
management arrangements, and estimated costs (or fixed prices where 
applicable). The prohibition against auction techniques in FAR 
15.610(d)(3) is equally applicable to these negotiations.
    4. Upon completion of the negotiations and agreement on contract 
terms, the SEB shall conduct a final evaluation, focusing on a 
comparative analysis of the contracts negotiated, their relative 
strengths and remaining weaknesses, their estimated costs and fee(s)/
prices and probable costs, and any other factors that might influence 
the selection. The evaluation must build on the SEB's earlier report and 
presentation to the SSO which resulted in the decision to have multiple 
contract negotiations conducted. The evaluation is to determine the 
effects, if any, of the contract negotiations on the SEB's earlier final 
Mission Suitability scores as well as on evaluation of Cost, Relevant 
Experience and Past Performance, and Other Considerations; however, an 
arithmetic rescoring is not to be accomplished. A summary of the results 
of the evaluation shall be prepared for presentation to the SSO 
including any changes in the SEB's assessment of each proposal. The 
revisions may be expressed in a narrative analysis including an 
appropriate adjectival rating.
    5. a. Upon completing its evaluation of the results of contract 
negotiations, the SEB

[[Page 525]]

shall report its findings to the SSO. This is to be accomplished by oral 
presentation and supplemental written report. When the Administrator is 
serving as the SSO, this should be preceded by preliminary presentations 
to the Field Installation Director and to the Official-in-Charge of the 
cognizant Headquarters Program Office.
    b. The report and presentation shall include the following:
    (1) A summary review of the previous report and presentation.
    (2) A brief discussion of significant weaknesses and strengths of 
the companies involved, as reported and presented in the previous report 
and presentation, with emphasis on key discriminators, if any.
    (3) A discussion of how any instructions given by the Source 
Selection Official were carried out.
    (4) The results of the negotiation, and the impact, if any, on the 
SEB's findings and conclusions in the previous report, including Mission 
Suitability, Cost, Relevant Experience and Past Performance, and Other 
Considerations, as appropriate.
    (5) Discussions of any matters or areas of substance that arose 
during the negotiations and that were not present in the proposals or 
the earlier oral and/or written discussions or BAFO's.
    (6) The contracting officer should be present and should 
participate, as appropriate, in the presentation to the SSO. The 
contracting officer or designee will bring to the presentation copies of 
the contracts signed by the offerors.

   Appendix A to Appendix I of 1870.303--Sample Letter of Designation

TO:
FROM:
SUBJECT: Source Evaluation Board (SEB) for ________
    Pursuant to Chapter 2 of the NASA Source Evaluation Board Handbook 
(NHB 5103.6), I hereby designate the following individuals to serve as 
members of the SEB for the purpose of evaluating proposals received in 
response to the solicitation for ____________:

                               Chairperson

    Name of individual, functional title, and organizational assignment.

                          Other Voting Members

    Names of individuals, functional titles, and organizational 
assignments.

                              SEB Recorder

    Name, functional title, and organizational assignment.

                      Nonvoting Ex Officio Members

    Name, functional title, and organizational assignment.
    The SEB will conduct its business in strict accordance with the 
provisions of the SEB handbook. The SEB Chairperson is responsible for 
determining that each SEB member (both voting and nonvoting) is fully 
conversant with the instructions contained in the handbook. SEB duties 
will take precedence over other regular duties of the SEB members.
    Attention of the SEB Chairperson and each SEB member is particularly 
directed to Chapter 2 of the SEB handbook which describes the roles of 
key participants in the SEB process, including cognizant line and staff 
management, the SEB, and the Source Selection Official (SSO). The 
importance of the SEB function to agency programs necessitates continual 
management involvement throughout the evaluation and selection process.
    It is emphasized that the SEB report and presentation are the 
principal tools available to the SSO to perform a comparative analysis 
for making the final source selection decision and must be presented in 
sufficient depth to permit the intelligent weighing of alternatives. All 
proposals will be evaluated and reported in accordance with the SEB 
handbook. The SEB's written findings will give no consideration to 
elements which are extraneous to the objectives of this procurement.
    Attention of the SEB Chairperson and the SEB is further directed to 
FAR 15.612(e) and Chapter 2 of the SEB handbook which prohibit the 
disclosure of information to anyone who is not also participating in the 
same evaluation proceedings. After receipt of proposals, all information 
contained in the proposals submitted for evaluation will be protected 
and will be made available only to the members (voting and nonvoting) of 
the SEB and to properly designated committees and panels on a need-to-
know basis. The right to information on a need-to-know basis does not 
extend to the normal chain of supervision of any member of the SEB or to 
any individual having technical responsibility for the effort being 
evaluated except as specifically approved by the SEB Chairperson on a 
case-by-case basis. Individuals so designated by the SEB Chairperson 
will be notified, in writing, of the privileged character of proposal 
information.
_______________________________________________________________________
Signature of Designating Date Official
_______________________________________________________________________
Date

Appendix B to Appendix I of 1870.303--Individual Certificate for Source 
                      Evaluation Board Participants

    1. I, the undersigned, a participant in the Source Evaluation Board 
(SEB) proceedings for the competition of the ________________ contract, 
certify that I will not discuss or reveal any information concerning 
these SEB

[[Page 526]]

proceedings to anyone who is not also participating in the same SEB 
proceedings, and then only to the extent that such information is 
required in connection with such proceedings on a need-to-know basis.
    2. I further agree that at any time I discover that I have an 
interest in, or connection with, a company submitting a proposal for 
evaluation by the Board or advisory committee on which I serve, I shall 
promptly report, in writing, the fact of my interest or connection, and 
the nature of it, to the person who has appointed me to the Board or 
advisory committee, through the SEB Chairperson. I recognize that a 
reportable interest or connection includes the following:
    a. Ownership of a company's securities by myself or my spouse.
    b. A close family relationship to an official of a company 
submitting a proposal or participating as a subcontractor.
    c. Any other interest in or connection with a company which might 
tend to subject NASA to criticism on the basis that such interest or 
connection would impair my objectivity in participating on the Board or 
advisory committee of which I am a member.
    3. I further certify that I have read and understand NHB 1900.1, 
``Standards of Conduct for NASA Employees.''
    4. In addition, I fully realize that any breach by me of my 
obligation to safeguard and not disclose to unauthorized persons any 
information made available to me concerning the evaluation may result in 
appropriate disciplinary action, provided for by law or regulation, 
being taken against me by duly constituted authority.
_______________________________________________________________________
Signature Date
_______________________________________________________________________
Date

Appendix C to Appendix I of 1870.303--Guidelines for the SEB Report and 
              Presentation to the Source Selection Official

                             I. Introduction

    A. In preparing the SEB report and presentation, emphasis should be 
placed on substance. This Appendix C provides guidance on content and 
format of the SEB report and the oral presentation to the SSO. This 
guidance is designed to be appropriate for most procurements. If a 
specific procurement has peculiarities which cause the proposed format 
to be impractical, the SEB Chairperson may alter it in any manner that 
does not detract from the substance.
    B. The findings of the SEB are presented in two parts, the written 
SEB report and an oral presentation. This Appendix sets forth the 
minimum requirements. The detail and use of additional schedules or 
other information are, of course, governed by the nature and scope of 
the subject being presented.
    C. The SEB shall approve the written report and the graphic material 
to be used for the accompanying oral presentation. Viewgraph 
presentations are appropriate where the nature of the presentation 
permits. Copies of visual aids to be utilized for the oral presentation 
should be separately bound in a folder identified as ``Briefing Charts'' 
to accompany the written report.
    D. A ``Glossary of Terms'' should be included in the SEB Report when 
appropriate to define acronyms or abbreviations.
    E. Copies of the SEB report and related briefing charts shall be 
serially numbered and controlled by the Recorder and may be distributed 
or disclosed only to persons having responsibilities relating to the 
specific source evaluation proceeding involved, except as may otherwise 
be approved by the Administrator or designee.

                         II. Written SEB Report

                    A. Description of the Requirement

    1. Procurement Description. Provide a narrative description of the 
technical requirement being procured together with its scientific 
objectives. Explain any follow-on effort which has been planned or for 
which program approval will be requested. Describe the relationship with 
other efforts in process or planned. Explain any particular technical 
complexities which had an important effect on the solicitation or the 
evaluation of proposals. Include a table of contents in the report.
    2. Funding. State the funding applicable to the effort including:
    a. The Government estimate for the procurement, if feasible.
    b. The estimated amount to be obligated under the basic contract.
    c. The estimated amount to be obligated under each priced option.
    d. The estimated cost of any follow-on effort to be procured under 
separate contract, e.g., subsequent phases.
    3. Procurement Approach. a. State the date that the applicable 
procurement plan was approved.
    b. Discuss any special procurement considerations which applied to 
the procurement being evaluated, e.g., the use of phased procurements.
    c. Explain how the use of the type of contract approved in the 
procurement plan will advance NASA objectives; give reasons and 
rationale for the selection of contract type, including the 
applicability or inapplicability of the various incentive concepts 
(award fee, cost, performance, schedule, and multiple).

                 B. SEB Roster and Chronology of Events

    1. SEB Roster. Include the SEB designation letter and any changes to 
it. As a supplement, provide the names, functional titles,

[[Page 527]]

and organizational assignments of the chairpersons of any committees and 
panels used by the SEB.
    2. Chronology. Provide a chronology of major events connected with 
the source evaluation, such as:
    a. The date(s) the source list and the Statement of Work were 
received for consideration by the SEB.
    b. The dates the evaluation factors, subfactors, elements, and their 
definitions for incorporation into the solicitation, the relative 
weights of factors and the qualification standards, if applicable, were 
approved.
    c. The date(s) the SEB with the assistance of the cognizant 
procurement and program or project offices approved the source list and 
the RFP.
    d. The date the RFP was issued.
    e. The date and place of any preproposal conference.
    f. The date(s) of any RFP amendment(s).
    g. The due date for receipt of proposals.
    h. The date(s) and disposition of any late proposal(s) received.
    i. The date the SEB was convened for proposal evaluation.
    j. The date of the competitive range determination.
    k. The dates and places of discussions with each offeror in the 
competitive range.
    l. The date the request for BAFO's was issued.
    m. The common cutoff date for conclusion of discussions and receipt 
of BAFO's.
    n. The date the SEB completed its findings.
    o. The date of the presentation to the SSO.
    3. Sources. Provide a composite list, in alphabetical order, of all 
sources solicited and sources submitting proposals by company name and 
address. The list should be footnoted to explain any code used. Include 
a list of team members and subcontractors for those companies that 
submitted proposals.

                     C. Evaluation and SEB Findings

    1. Factors, Subfactors, Elements, and Weights--a. Qualification 
Standards. State any specific qualification standards included in the 
RFP, and explain why each was necessary.
    b. Evaluation Factors, Subfactors, and Elements. State the 
evaluation factors used in the evaluation and their relative order of 
importance. State the Mission Suitability subfactors and elements, if 
any, their definitions, and the weights assigned to each. Explain the 
rationale for the proportionate weights assigned to each subfactor and 
element, if any, set forth relevant excerpts from the RFP which describe 
the evaluation factors, subfactors, and elements, if any, and their 
relative importance.
    2. Evaluation Process--a. Discuss assignments made to committees and 
panels. Identify the factors, subfactors, and/or elements assigned for 
review and the rationale for assignment. Include any individual 
committee report necessary to understand the SEB results.
    b. Discuss the adjective rating and numerical scoring methods and 
techniques used by the SEB.
    c. Discuss the procedure used for the determination of the 
competitive range.
    d. Describe the steps taken in verifying the offeror's relevant 
experience, past performance, and current capabilities, e.g., plant 
visits, customer checks, and audit reports.
    e. Provide a summary of written questions common to all offerors and 
specific written questions addressed to particular offerors.
    f. State the common cutoff date for conclusion of discussions and 
receipt of BAFO's.
    g. Include an exposition of the SEB proceedings that is sufficient 
to verify proper procedures were followed and sufficient to bring out 
any procedural irregularities that might exist. Procedural problem 
areas, if any, are to be covered specifically.
    h. Include copies of all letters addressed to or from the SEB 
regarding the SEB proceedings.
    3. Initial Evaluation Findings--a. Summary Schedules. Provide the 
following schedules:
    (1) A single schedule listing all proposals in descending order of 
scores received for Mission Suitability stating the assigned score for 
each subfactor and weighted element. Each proposal should also be 
classified with the appropriate adjectival rating which indicates the 
SEB's composite appraisal of the Mission Suitability evaluation. In 
addition, the appropriate summary or adjectival rating for Cost, 
Relevant Experience and Past Performance, and Other Considerations 
should be included as a part of this schedule.
    (2) Provide summary charts of what the SEB considers to be the 
significant discriminators.
    b. Statement of Findings. (1) Discuss briefly each proposal 
determined to be unacceptable and the rationale for the decision.
    (2) Discuss each acceptable proposal in descending order of Mission 
Suitability scores. Include each offeror's estimated cost or price 
providing a breakdown by element (labor, material, subcontracts, 
overhead, G&A, and fee); provide the SEB's analysis and evaluation of 
the adequacy (for all offerors, including those not within the 
competitive range), realism (for all offerors determined to be within 
the competitive range), and most probable cost (for at a minimum, each 
proposal within the competitive range) of each respective cost proposal. 
Discuss the SEB's evaluation of Relevant Experience and Past Performance 
and Other Considerations. Include a discussion of the following 
considerations:
    (a) Evaluation of the proposal as related to each factor, subfactor 
and element and to the approved evaluation plan in sufficient

[[Page 528]]

detail to permit examination of the findings of each evaluation phase 
and to trace discriminators to the final results. Where changes in 
rating or scoring have occurred during the process, a logical visible 
thread of the rationale for such changes in rating or scoring should be 
provided.
    (b) Provide a discussion of the major and minor strengths and 
weaknesses of the proposal with an estimate of the potential for 
correction of weaknesses identified. Clearly list the strengths and 
weaknesses and identify them as major or minor, in addition to the 
narrative, to provide clear traceability throughout the evaluation 
process.
    (c) Provide an analysis of key personnel.
    (d) Discuss significant changes in the proposal, including the 
elimination of any correctable weaknesses, that would have to be 
negotiated after selection with a discussion of the negotiation cost 
objectives associated with those changes.
    (e) Discuss the evaluation of the Cost factor, including the effects 
of the proposed cost on the technical and management effort.
    (f) Provide a best estimate of the probable cost of performance, if 
selected, together with an indication of the confidence in the SEB's 
estimate.
    (g) Provide any information or analysis that would be helpful to the 
SSO in determining the impact of cost in making a selection decision.
    (h) Provide information to reflect the offeror's financial 
capability to perform the contract effort. A listing of possible 
information includes:
    (i) Complete name and location of the organizational element 
proposing the effort.
    (ii) Complete name and location of the parent corporation, if any.
    (iii) Place or places of performance of the proposed effort.
    (iv) Recent history of sales (of the particular division or entity 
involved), by customer, including industry and Government customers.
    (v) Sales projections, by customer, for the period involved in the 
procurement.
    (vi) Recent history of earnings of the division or entity involved 
in the procurement, if available.
    (i) Present a brief analysis of the fee arrangement including any 
incentive arrangements proposed, e.g., how the rewards would be earned 
or lost, the benefit to NASA, and any changes to be sought in 
negotiations (target minimum or maximum fee levels, sharing formula, or 
ceiling) which will improve the coverage of the incentive toward the 
attainment of the NASA objectives. Indicate whether, and for what 
reason, any offeror took exception to or suggested an alternative to the 
arrangement contemplated in the RFP. Provide an analysis of the 
importance the SEB attaches to such an exception or alternative.
    (j) Provide detailed information on Relevant Experience and Past 
Performance. Provide information on the offeror's response to the RFP 
requirements for data in this category, the evaluation of the data by 
the SEB, the sources or references contacted, etc.; summarize 
conclusions and highlight significant accomplishments or failures. 
Provide the rationale for the adjectival rating of the SEB.
    (k) Discuss the evaluation of Other Considerations and the rationale 
for the adjectival assessment of each subfactor under this factor.
    4. Competitive Range Determination. Discuss the competitive range 
determination and the rationale for the decision, summarizing the 
evaluation findings that provided the basis for the decision.
    5. Written and/or Oral Discussions. a. Summarize the content of the 
written and/or oral discussions, the personnel included in the proposal 
who were invited to participate, and the list of attendees, including 
both Government and offeror personnel.
    b. Discuss the time allotted for receipt of BAFO's and each proposal 
revision received.
    6. Final Evaluation Findings. Summarize the BAFO revisions and 
provide a discussion of the evaluation of the revised proposals and any 
resultant changes in rating or scoring. Provide the rationale for any 
changes. Clearly identify from the previous list of major and minor 
strengths and weaknesses any revisions, additions, and/or deletions to 
provide clear traceability throughout the evaluation process.
    7. Oral Presentation. a. The SEB Chairperson is normally responsible 
for conducting the presentation to the SSO. It is the Chairperson's 
function to convey concisely and accurately the results of the SEB 
deliberations to permit an informed and objective selection of the best 
source for the particular procurement.
    b. As a general rule, the SEB Chairperson's prepared oral 
presentation should not exceed an hour to be followed by a question and 
answer period. Copies of the viewgraphs to supplement the SEB report 
forwarded to the SSO are to be available to those attending the oral 
presentation. Relevant backup material is to also be available at the 
presentation.
    c. The main thrust of the oral presentation is to focus upon issues 
and problems identified by the SEB's findings and to highlight the 
reasonable alternative choices available to the SSO. This presentation 
must include an explanation of any applicable qualification standards; 
evaluation factors, subfactors, and elements; the major strengths and 
weaknesses of the offerors; the Government estimate, if applicable; the 
offerors' proposed cost/price; the probable cost; the proposed fee 
arrangements; the results of written and/or oral discussions; the 
BAFO's; the final

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evaluation findings; and the final adjectival ratings and scores. These 
aspects of the report are central to its meaning, and must be reviewed 
in the oral presentation despite the redundancy to the written report.
    d. The presentation shall clearly indicate any discriminators. This 
requires the presentation of scores in enough detail to provide an 
adequate basis for the SSO to assess the validity of the judgments made 
by the SEB. This detail shall extend at least to all levels of 
subfactors and numerically scored elements.
    e. A suggested progression of charts follows. Brevity and 
understandability are key. Charts should highlight the significant 
aspects of the comprehensive written report. They should prompt 
discussion. Sample charts are not included in this handbook since these 
tend to lead toward unnecessary or even inappropriate standardization. 
As appropriate, the Associate Administrator for Procurement will, from 
time to time, disseminate sample charts illustrative of approaches or 
techniques of exceptional merit and usefulness.
    (1) Identification of the Procurement. This chart should identify 
the installation, the nature of the services or hardware to be procured, 
some quantitative measure including the Government estimate for the 
procurement, and the kind of contractual arrangement planned. Detailed 
objectives of the procurement should be avoided.
    (2) Background. This item is useful to identify any earlier phases 
of a phased procurement or, as in the case of continuing support 
services, to identify the incumbent and any consolidations or proposed 
changes from the existing structure.
    (3) Evaluation Factors, Subfactors, and Elements. An explanation of 
any qualification standards and the evaluation factors, subfactors, and, 
if utilized, elements, along with assigned weights, is an important part 
of any presentation of SEB findings. The relative order of importance of 
the evaluation factors and, within Mission Suitability, the numerical 
weights of the subfactors and, if utilized, numerically scored elements 
should also be presented. The adjectival scoring system utilized as an 
aid in evaluation of Mission Suitability should be presented.
    (4) Sources. This chart will indicate the number of potential 
offerors solicited, the number of potential offerors expressing 
interest, e.g., attendance at a preproposal conference, and the 
identification of offerors submitting proposals in response to the 
solicitation. Small businesses, small disadvantaged businesses, and 
women-owned businesses can be identified here. In addition, a chart must 
be included for each offeror indicating the Chief Executive Officer, the 
location of the offeror, some representative products, and similar 
information for each major subcontractor proposed.
    (5) Summary of Findings. The summary chart shall, as simply as 
possible, list the initial Mission Suitability ratings and scores, the 
final Mission Suitability ratings and scores, the offerors' proposed 
costs/prices, and the SEB's assessment of the probable costs. In 
addition, any clear discriminator, problem, or issue which could have an 
effect upon the selection should be introduced at this time. The 
determination of competitive range must be addressed here.
    (6) Strengths and Weaknesses of Offerors. These charts can be among 
the most valuable presented, and its preparation could initially assist 
the SEB Chairperson in distilling the essence of the SEB's findings. 
Certain guidelines should be followed in the preparation of these 
charts:
    (a) Only the major strengths and weaknesses of individual offerors 
should be selected for presentation. The significance of strengths and 
weaknesses is lost when exhibited in long lists without distinction as 
to importance.
    (b) The strengths and weaknesses should be directly related to the 
evaluation factors, subfactors, and elements.
    (c) Strengths and weaknesses should be as clear as charting 
techniques and limitations will permit. Care should be taken to avoid an 
analysis of strengths and weaknesses based totally on numerical scores. 
This practice limits the SEB and the SSO in their evaluation and 
selection. For example, not all major weaknesses could be considered of 
equal value--some are correctable during negotiations and some are not.
    (d) It is important to indicate the significance of major 
weaknesses. Can they be corrected during negotiations? If so, at what 
cost?
    (e) The results and impact, if any, of written and/or oral 
discussions and BAFO's on ratings and scores must be clearly indicated.
    (f) Key personnel charts must be included in the presentation, 
providing a list of the key personnel for each offeror together with, as 
appropriate, their educational background, general background, and any 
pertinent details applicable to this procurement.
    (7) Final Mission Suitability Ratings and Scores. This chart is to 
summarize, as simply as the material will permit, the evaluation 
subfactors and elements, the maximum points achievable, and the scores 
of the offerors in the competitive range.
    (8) Final Cost Evaluation. This chart summarizes probable costs 
associated with each offeror including proposed fee arrangements. The 
data should be as accurate as possible; therefore, SEB adjustments to 
achieve comparability should be shown. Further, the presentation of this 
chart should include the measure of confidence the SEB has in the costs 
of the individual offerors, noting the reasons for low or high 
confidence.

[[Page 530]]

    (9) Relevant Experience and Past Performance. This chart should 
reflect the summary conclusions. This information is to be supported and 
amplified by specific case data with particular emphasis on exemplary or 
inferior performance and its potential bearing on the instant 
procurement.
    (10) Other Considerations. This chart lists and discusses the Other 
Considerations addressed in the RFP, providing an appropriate adjectival 
rating for each of the Other Considerations subfactors.
    (11) Special Interest. This chart should include only information of 
special interest to the SSO that has not been discussed elsewhere, e.g., 
procedural errors or other matters that could have an effect on the 
selection decision.

[54 FR 28373, July 5, 1989, as amended at 55 FR 27090, June 19, 1990; 57 
FR 3139, Jan. 28, 1992; 57 FR 40856, Sept. 8, 1992; 57 FR 58726, Dec. 
11, 1992; 58 FR 54300, Oct. 21, 1993; 58 FR 61632, Nov. 22, 1993; 59 FR 
10079, Mar. 3, 1994; 59 FR 11200, Mar. 10, 1994; 59 FR 12199, Mar. 16, 
1994; 59 FR 66270, Dec. 23, 1994; 60 FR 47713, Sept. 14, 1995]



                 Subpart 1870.4--NASA Credit Card System

    Source: 54 FR 53632, Dec. 29, 1989, unless otherwise noted.



Sec. 1870.401  Purpose.

    The NASA credit card system provides a means for using credit cards 
for small purchases.



Sec. 1870.402  System content.

    (a) The regulations governing the use of credit cards are set forth 
at 1813.7104.
    (b) The system contains specific procedures for use by procurement 
personnel and by the wide range of individuals who participate in the 
credit card program. These procedures integrate diverse regulatory and 
operational information from numerous sources in a user-oriented 
document.



Sec. 1870.403  NASA procedures for the credit card system.

    (a) Credit card procedures are prescribed by Appendix I to this 
section 1870.403.
    (b) NASA may reprint Appendix I as a separate document, provided the 
following conditions are met:
    (1) The issuance date (``cover date'') of the procedures shall be 
the date of the NASA FAR Supplement version from which the text is 
extracted.
    (2) With the exception of availability, distribution and other 
special prefatory notices, any subsequent modification in the text shall 
be preceded by a change to the NASA FAR Supplement 1870.403, Appendix I.
    (3) The following notice shall be included in the prefatory material 
of the Handbook:

                            Important Notice

    These procedures are a separately bound, verbatim version of NASA 
FAR Supplement (NFS) (48 CFR 1870.403) Section 1870.403, Appendix I. 
Reference to other parts of the Federal Acquisition Regulation (FAR) and 
the NFS will be required for complete coverage of all procurement 
aspects. NASA reserves the right to make changes to NFS 1870.403, 
Appendix I, without issuing a new edition of these procedures. In the 
event of apparent conflict between these procedures and the NFS, the NFS 
shall govern.

                         Appendix I to 1870.403

  NASA Procedures for Using the Governmentwide Commercial Credit Card 
                                 Service

                             1. Introduction

    (a) At the request of the Office of Management and Budget (OMB), the 
General Services Administration (GSA), Federal Supply Service (FSS) 
awarded a single schedule contract (Federal Supply Schedule No. OOCC 
6150, Industrial Group 615, IG Class 6153) for Governmentwide commercial 
credit card service to Rocky Mountain BankCard System, Inc. 
(contractor). The contract is intended to provide, at the request of 
federal ordering agencies, Governmentwide commercial credit cards and 
associated services to civilian and military Government employees for 
the purpose of paying for purchases made for official Government 
purposes.
    (b) These procedures are designed as the NASA supplement to the 
``Instructions for the Use of the U.S. Government Credit Card'' 
distributed to the cardholder and ``Approving Official Instructions for 
the Use of the U.S. Government Credit Card'' distributed to the 
approving official at the time the card is issued. In the event these 
procedures conflict with the instructions provided by the contractor, 
these procedures take precedent. All purchases that will be paid for 
using the card shall comply with the Federal Acquisition Regulation 
(FAR), the NASA FAR Supplement (NFS) and these procedures.

                             2. Definitions

    (a) Administrative Office Contact. The Administrative Office Contact 
is the focal point appointed by the Procurement Officer for coordination 
of the applications, issuance and

[[Page 531]]

destruction of cards, establishment of reports, and administrative 
training.
    (b) Approving Official. The approving official is the person who 
reviews and approves the cardholder's monthly statement of purchases.
    (c) Cardholder. The cardholder is the individual to whom a card is 
issued. The card bears this cardholder's name and may only be used by 
this individual to pay for authorized U.S. Government purchases.
    (d) Contractor. The contractor is the organization that will 
maintain all accounts as required by the General Services Administration 
contract.
    (e) I.M.P.A.C. I.M.P.A.C., which is printed on all cards furnished 
by the contractor, stands for ``International Merchant Purchase 
Authorization Card.'' These initials will also appear on most forms 
provided by the contractor.
    (f) Oral Procedure. Oral procedure means a procedure where an order 
is placed or a purchase is made through an oral agreement which is made 
in person or by telephone by providing the card for imprint by the 
vendor or the card number to the vendor. No written purchase order or 
contract is issued by the Government. The supplies or services are 
provided by the vendor and payment is made using the I.M.P.A.C.
    (g) Statement of Account. The Statement of Account is a monthly 
listing of all payments authorized for purchase and credits made by the 
cardholder and billed by the merchant.

                           3. Responsibilities

    (a) Contractor. The contractor will issue cards to cardholders and 
send out monthly statements to cardholders, approving officials, and 
financial management offices. The contractor will pay merchants in a 
timely manner and will receive reimbursement from the financial 
management office of each NASA installation.
    (b) Contracting Officer's Technical Representative (COTR). The COTR 
appointed by the Procurement Officer will serve as the liaison between 
the installation and the contractor. The COTR shall oversee the 
I.M.P.A.C. program and establish installation guidelines. The COTR shall 
establish authorization codes for controlling purchases. Changes to 
dollar limitations or authorized merchant codes must be approved by the 
COTR.
    (c) Cardholder. Each cardholder is to reconcile his/her monthly 
statement and forward the reconciled statement to his/her approving 
official. Detailed instructions are included in paragraph 12 and in the 
cardholder instructional pamphlet, ``Instructions for the Use of the 
U.S. Government Credit Card,'' issued by the contractor.
    (d) Approving Official. The approving official will review the 
cardholder's monthly statement and serve as liaison with the 
Administrative Office Contact, the Financial Management Office, and the 
COTR. Each approving official shall establish, after coordination with 
the Administrative Office Contact, a budgetary limit for each 
cardholder's monthly purchases. The approving official will certify the 
cardholder's monthly statements and ensure that payments are for 
purchases which are authorized and made in accordance with FAR and NFS. 
Detailed instructions are included in paragraph 12 and in the approving 
official's instructional pamphlet, ``Approving Official Instructions for 
Use of the U.S. Government credit card,'' issued by the contractor. The 
approving official will also assist the cardholder in resolving disputed 
payments. The approving official has authority to direct the COTR to 
instruct the contractor to cancel a card at any time.
    (e) Administrative Office Contact. The Administrative Office Contact 
shall establish a budgetary limit for each office that does not exceed 
the sum of the approving official's cardholders' monthly purchase 
limits. The Administrative Office Contact, in conjunction with the COTR, 
shall coordinate, process and monitor resolution of all disputed 
purchases, credits or billing errors, unless the Procurement Officer 
designates another individual or office to perform this function.
    (f) Financial Management Office Contact. The Financial Management 
Office Contact shall answer the contractor's questions about payment of 
monthly statements.

                        4. Use of the I.M.P.A.C.

    (a) The I.M.P.A.C. may be used to pay for small purchases made in 
accordance with part 13 of the FAR and the NFS. It may also be used to 
pay for orders placed against established requirements contracts or with 
established sources of supply (see FAR part 8), when authorized by the 
contract or regulation requiring use of the source. However, 
installation stocks/inventories must be checked for availability prior 
to credit card purchase.
    (b) The I.M.P.A.C. can be used to pay for supplies or services 
acquired using oral solicitation procedures. It may also be used to pay 
for supplies or services that are acquired through a purchase order or 
an individual order under a requirements contract where the contract 
specifically allows such payment method. Without exception, the 
I.M.P.A.C. may only be used to pay for authorized U.S. Government 
purchases.
    (c) Under no circumstances will the I.M.P.A.C. be used for cash 
advances.

                  5. Setting Up the I.M.P.A.C. Account

    The contractor will provide the Administrative Office Contact with 
all the necessary application forms (cardholder, approving official, 
disputes, destruction notice etc.). The Administrative Office Contact 
will distribute

[[Page 532]]

the forms to the selected cardholders and approving officials for 
completion. Upon completion, the Administrative Office Contact shall 
process and forward the forms to the contractor. The card will be mailed 
to the cardholder within ten working days after the application is 
received by the contractor. When the cardholder receives the card, he/
she must immediately return the enclosed notice to the contractor in 
order to notify the contractor that the card has been received. The 
contractor is capable of providing various reports to meet management 
and administrative needs. During the account setup process, the 
Administrative Office Contact will discuss the various reports available 
with management personnel and submit requirements to the COTR.

                           6. Signature Cards

    When the account information is submitted to the Administrative 
Office Contact, a signature card must be completed by each approving 
official that states the approving official may approve the accuracy of 
the Statement of Account for payment. The signature card will be 
forwarded to the appropriate financial management office after 
completion. An alternate approving official must be designated to avoid 
statement processing delays and late payment penalties.

                7. Dollar Limits Associated With the Card

    Use of the credit card by a cardholder is subject to a single 
purchase limit, a monthly cardholder limit and a monthly office limit. 
The purpose of these dollar limits is as follows:
    (a) Single Purchase Limit. The single purchase limit is a limitation 
on the procurement authority delegated to the cardholder. This limit 
cannot be exceeded unless a revised delegation of authority is issued by 
the Procurement Officer raising the limit. A ``single purchase'' using 
the card may include multiple items. However, no single purchases may 
exceed the authorized single purchase limit established for each 
cardholder. The application for the cardholder will be completed in 
accordance with the Purchase Limit Matrix in the Federal Supply Schedule 
contract.
    (b) Monthly Cardholder Limit. The monthly cardholder limit is a 
budgetary limit assigned by the approving official. The approving 
official shall coordinate with the Administrative Office Contact when 
determining a monthly limit. The total dollar value of purchases when 
using the card for any single month may not exceed the monthly purchase 
limit set by the approving official.
    (c) Monthly Office Limit. The monthly office limit is a budgetary 
limit established by the Administrative Office Contact and shall not 
exceed the sum of the approving official's cardholders' monthly purchase 
limit and should reflect spending history as well as budgetary trends. 
The total dollar value of purchases using the card shall not exceed the 
monthly office limit.

                          8. Administrative Fee

    The monthly statement to each cardholder by the contractor will 
include an administrative fee which is calculated as a fixed percentage 
of the total dollar value of purchases. Each installation financial 
management office shall implement procedures to ensure funds to cover 
the monthly administrative fee are available.

                      9. Authorized Use of the Card

    (a) The unique I.M.P.A.C. VISA card that the cardholder receives has 
his/her name embossed upon it and may be used only by that cardholder. 
No other person is authorized to use the card. The card was specially 
designed showing the great seal of the U.S. and ``United States of 
America'' imprinted upon it to avoid being mistaken for a personal 
credit card.
    (b) When issuing this card to an employee, authorization codes will 
be established by the COTR and the Administrative Office Contact and 
will be incorporated in the card. Under normal circumstances, merchants 
are required to obtain authorization from the contractor for purchases 
over $50.00. However, many merchants now use electronic authorization 
methods allowing them to obtain authorization for all purchases 
regardless of amount. When authorization is sought for a purchase by the 
merchant, the the contractor authorization system will electronically 
check each individual cardholder's single purchase and monthly limits, 
the monthly office limit, and the type of merchant where the cardholder 
is making the purchase before authorization for the transaction will be 
granted.
    (c) Use of the card must meet the following conditions:
    (1) The total of a single purchase to be paid for using the card may 
be comprised of multiple items and cannot exceed the authorized single 
purchase limit. Purchases will be denied if the authorized single 
purchase limit is exceeded. Payment for purchases may not be split in 
order to stay within the single purchase limit.
    (2) All items purchased over the counter to be paid for using the 
card must be immediately available. No back-ordering is allowed.
    (3) All items purchased by a telephone order that will not be 
confirmed with a written order and be paid for using the card should 
generally be delivered by the merchant within the 30-day billing cycle. 
However, a longer period (up to 120 days for delivery) may be utilized 
by the installations. If

[[Page 533]]

the longer period is elected, installation procedures need to be 
established for proper reconciliation of the monthly bills, allowing for 
the carrying forward of items ordered but not received.
    (4) All items purchased during one telephone transaction that will 
not be confirmed by a written order should generally be delivered in a 
single delivery. If an installation elects to allow partial deliveries, 
installation procedures must be implemented to ensure proper 
reconciliation of all such orders.
    (5) All accountable personal property items purchased and paid for 
using the card must have the input and concurrence of the Supply and 
Equipment Management Officer; the NASA Equipment Management System 
(NEMS) must be screened prior to purchase; and, the items purchased must 
be processed through the installation receiving function so the proper 
tagging can be done and the required accountability established. (See 
NHB 4200.1.)
    (6) When purchasing items by phone or over the counter, the 
cardholder should inform the merchant that the purchase is for official 
U.S. Government purposes and therefore is not subject to state or local 
tax. The card will be imprinted with ``US Govt Tax Exempt'' for 
additional clarification.
    (7) Prior to use of the card for an individual purchase, funds must 
be certified as available by an authorized individual within the 
installation Financial Management Office.

                    10. Unauthorized Use of the Card

    (a) The card must not be used for the following: (1) Cash advances; 
(2) Rental or lease of motor vehicles; (3) Rental or lease of land or 
buildings; (4) Purchase of airline, bus, train, or other travel related 
tickets; (5) Purchase of meals, drinks, lodging, or other travel or 
subsistence costs; (6) Purchase of gasoline or oil for Interagency Fleet 
Management automotive vehicles; (7) Repair of Interagency Fleet 
Management automotive vehicles; and (8) Purchases of telecommunications 
and telephone equipment.
    (b) Purchases of the following items are specifically governed by 
the FAR and NFS. Compliance with the applicable regulations is required 
when purchasing these items. (1) Non-expendable property; (2) 
Janitorial, yard and maintenance services, other than repair services; 
(3) Personal clothing or footwear, except emergency situations when 
required for safety; (4) Printing or copying services; (5) Telephone 
calls.

   11. Acquisition Procedures for Use When Paying With the I.M.P.A.C.

    (a) General. When making purchases that will be paid for using the 
I.M.P.A.C., all the applicable acquisition regulations apply. Regardless 
of whether the open market purchase is made using oral procedures or 
using a written purchase order or contract, the cardholder must:
    (1) Ensure that funds are available and certified to pay for the 
items being purchased. A funded Purchase Request (PR) shall support each 
credit card purchase. The PR may be bulk funded.
    (2) Reserve small purchases for small business in accordance with 
Public Law 95-507 (FAR 13.105).
    (A) The Law provides that each acquisition of supplies or services 
which has an anticipated value of $25,000 or less and which is subject 
to small purchase procedures shall be reserved exclusively for small 
business concerns. Therefore, when offers are solicited, they should be 
from small business concerns only, unless the contracting officer 
(cardholder) makes a written determination that there is no reasonable 
expectation of obtaining quotations from two or more responsible small 
business concerns (one, if the purchase does not exceed $2,500) that 
will be competitive in terms of market price, quality, and delivery. If 
the purchase is not made from small business, the contracting officer 
must document the reason for not purchasing from a small business 
concern.
    (B) The requirement for purchasing from small business does not 
waive the requirement to make purchases from required sources of supply 
or mandatory Federal Supply Schedules (FAR part 8).
    (3) Solicit competition for purchases in accordance with FAR 13.106.
    (A) Oral solicitations should be used whenever possible. Written 
solicitations are mandatory under the FAR when purchasing construction 
work over $2,000. In addition, written solicitations should be used when 
purchasing services which are subject to Service Contract Act wage 
determinations.
    (B) The FAR recommends that written solicitations be used when (i) a 
large number of line items are included in a single proposed 
acquisition, (ii) obtaining oral quotations is not considered economical 
or practical, (iii) special specifications are required because items or 
services cannot be easily explained or (iv) suppliers are located 
outside the local trade area (there may be instances, however, where it 
is appropriate to use the cards for purchases outside the local trade 
area).
    (C) Purchases not in excess of $2,500 may be accomplished without 
securing competition if the contracting officer considers the prices to 
be reasonable. These purchases are to be distributed equitably among 
qualified suppliers. If practical, other than the previous supplier 
should be solicited when placing repeat orders.
    (D) A reasonable number of sources must be solicited (at least 
three) for purchases over $2,500. If practical, two of these sources 
shall not have been previously solicited. If suppliers furnish standing 
price quotations

[[Page 534]]

or catalog prices on a recurring basis, verifying the quotations or 
prices for individual purchases is not necessary, but the prices should 
be periodically confirmed as current. When determining the number of 
sources to solicit, consider (i) the nature of the item or service to be 
purchased and whether it is highly competitive, (ii) information from 
recent purchases of the same or similar item or service, (iii) the 
urgency of the purchase, (iv) the dollar value of the purchase, and (v) 
past experience concerning dealers' prices.
    (4) Document the record regarding competition and reasonableness of 
price as required by FAR 13.106(c). FAR 13.106(a)(4) cites two instances 
when action must be taken to verify price reasonableness of purchases 
not exceeding $2,500: (1) The contracting officer suspects or has 
information to indicate the price may not be reasonable or (2) when 
purchasing an item for which no comparable pricing information is 
available. The file must contain an explanation of how price 
reasonableness was determined in those instances.
    (5) Purchase only domestic end products, except as provided in FAR 
subpart 25.1. The Buy American Act requires that only domestic end 
products be procured unless (A) the products or materials are for use 
outside the United States; (B) the cost is unreasonable as determined in 
accordance with FAR 25.105; (C) the agency head determines that domestic 
preferences would be inconsistent with the public's interest; or (D) the 
products or materials are not mined, produced, or manufactured in the 
United States in sufficient commercial quantities or of a satisfactory 
quality.
    (b) Oral purchase procedures. (1) Oral procedures may be used to 
acquire supplies or services that can be described in sufficient detail 
so that the parties to the agreement have a clear understanding of what 
is being acquired; and a purchase order or contract is not required by 
either the supplier or the Government.
    (2) When placing a telephone order to be paid using the I.M.P.A.C., 
the cardholder will:
    (A) Notify the vendor that the purchase is tax exempt.
    (B) Confirm that the vendor is aware of all required Government 
terms and conditions.
    (C) Confirm that the vendor agrees to charge the credit card when 
shipment is made so that receipt of the supplies may be certified on the 
monthly Statement of Account.
    (D) Instruct the vendor to include the following information with 
the shipping documents or packing slip: (i) Cardholder name and mail 
code; (ii) Building number, room number, street address, city and state; 
(iii) Cardholder telephone number; (iv) The term: Credit Card; (v) 
Purchase Request or Purchase Order Number.
    (3) This information will alert the receiving offices and the 
requisitioner that the supplies have been purchased with the credit 
card.
    (4) A log should be used to document or record telephone credit card 
orders of $2,500 or less when competitive quotes are not solicited. If 
competitive quotes are solicited for purchases of $2,500 or less, or if 
the purchase exceeds $2,500 and therefore requires competition, the 
record shall be documented. The documentation should be held until the 
monthly billing statement is received and then attached to the statement 
when it is submitted to the approving official.
    (c) Purchases requiring the issuance of a written order or contract. 
If the I.M.P.A.C. is used to pay for a purchase made by using one of the 
purchase order or contract forms, the vendor should be provided the 
necessary information from the card orally, either in person or by 
telephone, and the statement ``Payment to be made by credit card'' 
should be inserted on the form. Do not include specific information from 
the card on the purchase order. If the vendor requires an order, an 
authorized installation form may be used. The vendor is given its copy 
of the purchase order and the contracting officer (cardholder) maintains 
a copy.

        12. Documentation, Reconciliation and Payment Procedures

    (a) Any time a purchase is made that will be paid using the card, 
whether it is done over the counter or by telephone, a document must be 
retained as proof of purchase. These documents will later be used to 
verify the purchases shown on the cardholder monthly statement.
    (1) When a purchase is made over the counter, the cardholder is to 
obtain a customer copy of the charge slip, which will become the 
accountable document (make sure all carbons are destroyed).
    (2) When making purchases by phone, the cardholder is to document 
the transaction on a log, annotate the PR, and attach any shipping 
documents associated with the order.
    (b) The contractor will provide and distribute three monthly 
statements within five working days after the end of the 30-day billing 
cycle.
    (1) Cardholder--will receive a statement showing all purchases, 
credits and other data on transactions the cardholder has made in the 
30-day billing cycle.
    (2) Approving official--will receive a copy of all cardholder 
statements for which he/she has approving authority and a summary sheet 
for these statements.
    (3) Financial Management Office--will receive a statement providing 
summary data by cardholder and approving official.

[[Page 535]]

    (c) At the end of each monthly billing cycle, the cardholder must 
reconcile the information on his/her statement. The cardholder must fill 
in the appropriate accounting classification in the accounting code 
block, if not the same as the Master Accounting Code, the organization 
or individual for whom the purchase was made, and a description, if not 
provided, for each purchase. The cardholder must then sign the 
statement, attach all supporting documentation and forward it to the 
approving official or designated alternate. It is important that the 
cardholder check each purchase on the statement to verify the accuracy. 
If an item has been returned and a credit voucher received, the 
cardholder will verify that the credit is reflected on the statement. If 
purchased items and credits are not on the next monthly statement, the 
transaction documentation will be retained by the cardholder until the 
purchase or credit appears on the statement. If the purchase or credit 
does not appear on the next monthly statement, the cardholder or 
approving official must notify the Administrative Office Contact to 
resolve and reconcile the statement.
    (d) If for some reason the cardholder does not have documentation of 
the transaction to send with the statement, he/she must attach an 
explanation that includes a description of the item, date of purchase, 
merchant's name and why there is not supporting documentation.
    (e) The cardholder must sign the monthly statement and forward it to 
the approving official within five working days of receipt. If the 
cardholder cannot review the statement at the time that it is received, 
the approving official is responsible for reviewing and certifying the 
cardholder's statement. The approving official will go over the 
cardholder's statement with the cardholder upon his/her return.
    (f) The approving official is responsible for the following: (1) 
Supplying the appropriate financial management office with the date 
services provided by the contractor were received and the date services 
were accepted. The date services were received will be the last day of 
the monthly billing cycle for the contractor. The date services were 
accepted will be the date the approving official signs the reverse side 
of the statement of account. If the approving official takes more than 
seven calendar days to accept the services, acceptance (for determining 
payment due date for compliance with prompt payment regulations only) 
will be deemed to occur seven calendar days after receipt of the 
services. If any purchased items have not been received or accepted by 
the time the statement is received, the items should be disputed using 
the procedures in paragraph 13, in order to prevent payment delays. It 
is critical that this information be supplied in order to avoid late 
payment penalties; (2) Certifying and signing monthly cardholder-signed 
statements and summary statements; (3) Forwarding signed cardholder 
statements and finance copies of receiving reports and supporting 
documents to the financial management office for payment; (4) Forwarding 
monthly summary statements, and the cardholder statements to the 
appropriate financial management office in time to be received within 15 
working days of receipt by the approving official to avoid late payment 
penalties; (5) Retaining copies of summary statements and fund 
certification, solicitation and award documentation as supporting 
documentation on purchases. Records retention and disposition procedures 
in FAR 4.805 should be followed for documentation of purchases paid for 
using the credit card.

                     13. Billing Errors and Disputes

    (a) If a cardholder receives a statement that lists a transaction 
for merchandise that has not been received, or a transaction which 
includes a sales tax, the cardholder (or the approving official) must 
notify the Administrative Office Contact and complete the Cardholder 
Questioned item form. The contractor will credit the transaction until 
the dispute is resolved. In addition, a copy of the form must be 
attached to the cardholder's monthly statement and sent to the 
appropriate financial management office.
    (b) If items purchased with the card are found to be defective, the 
cardholder has the responsibility to obtain replacement or correction of 
the item as soon as possible. If the merchant refuses to replace or 
correct the faulty item, then the purchase of the item will be 
considered in dispute. Items in dispute are handled in the same manner 
as billing errors.

                     14. Contact With the Contractor

    The contractor should be contacted only to report a LOST OR STOLEN 
card. All other questions should be directed to the installation points 
of contact referenced in these procedures. Telephone numbers are listed 
in paragraph 15.

                        15. Lost or Stolen Cards

    (a) If the card is lost or stolen, it is important that the 
cardholder immediately notify Rocky Mountain BankCard System, Inc., at 
the following numbers:
    (1) During business hours, Monday-Friday (8:00 AM-4:30 PM (MST))
    (A) Outside Colorado--1-800-525-3717 x3900
    (B) In Colorado--1-303-629-5678
    (C) Outside Continental U.S.--303-629-5678
    (2) After business hours and weekends (MST)
    (A) Outside Colorado--1-800-525-5093
    (B) In Colorado--1-800-332-9840
    (b) The cardholder must also notify the approving official of the 
lost or stolen card

[[Page 536]]

within one workday after discovering the card missing.
    (c) The approving official will subit a written report through the 
Administrative Office Contact to the Contracting Officer's Technical 
Representative within five workdays.
    (d) The report will include: (1) The card number; (2) The 
cardholder's complete name; (3) The date and location of the loss; (4) 
If stolen, date reported to police; (5) Date and time the contractor was 
notified; (6) Any purchase(s) made on the day the card was lost/stolen; 
(7) Any other pertinent information.
    (e) A new card will be mailed within two business days of the 
reported loss or theft. A card that is subsequently found by the 
cardholder after being reported lost or stolen will be cut in half and 
given to his/her approving official. The approving official will 
complete the destruction notice and forward the notice to the 
Administrative Office Contact.

                            16. Card Security

    It is the cardholder's responsibility to safeguard the credit card 
and account number at all times. The cardholder must not allow anyone to 
use his/her card or account number. A violation of this trust will 
require that the card be withdrawn from the cardholder with the 
possibility of subsequent disciplinary action.

                      17. Separation of Cardholder

    Upon separation of a cardholder, the cardholder must surrender the 
card to his/her approving official who will complete the destruction 
notice and forward the notice to the Administrative Office Contact.

        18. Transfer of Cardholder to Another Approving Official

    If a cardholder is transferred to another office with a different 
approving official, the new approving official must determine if the 
employee will be a cardholder within his/her office. If it is determined 
that the card should be kept by the cardholder, the master file can be 
changed by requesting, in writing, that the Administrative Office 
Contact have the contractor add the cardholder to the new approving 
official's responsibility and delete him/her from the old file without 
issuing a new card.

      19. Unauthorized Purchases or Careless Use of the I.M.P.A.C.

    (a) A cardholder who makes unauthorized purchases or carelessly uses 
the card may be liable to NASA for the total dollar amount of 
unauthorized purchases made in connection with the misuse or negligence. 
Also, the cardholder may be subjected to disciplinary action for 
unauthorized or careless use.
    (b) NASA will be liable for the use of I.M.P.A.C.s by authorized 
users (cardholders).

[54 FR 53632, Dec. 29, 1989, as amended at 55 FR 47480, Nov. 14, 1990]



    Subpart 1870.5--NASA Major System Acquisition Phased Procurement 
                                Guidance

    Source: 58 FR 58795, Nov. 4, 1993, unless otherwise noted.



Sec. 1870.501  Purpose.

    Major system acquisitions are among NASA's largest and most visible 
efforts, often requiring the investment of significant Government and 
contractor resources. These procurements may cover several distinct 
program phases over a number of years. In most cases, major system 
acquisitions are accomplished through a phased procurement process 
involving competitive down-selection techniques. In this process, 
multiple contracts are awarded during the initial phase and a down-
selection is made from among those contractors to determine succeeding 
phase contractors. Eventually, a single contractor will be chosen for 
the final phase. Because of the importance and complexity of major 
systems, it is imperative that the procedures for their acquisition be 
efficient and effective.



Sec. 1870.502  Regulations.

    The basic regulations governing major system acquisitions are Office 
of Management and Budget (OMB) Circular No. A-109, NASA Management 
Instruction (NMI) 7120.4 (``Management of Major System Programs and 
Projects'') and NASA Handbook (NHB) 7120.5 (``Management of Major System 
Programs and Projects Handbook''), and NASA FAR Supplement (NFS) 48 CFR 
1834. In addition to these documents, detailed guidance on the planning 
and conduct of major system acquisitions appears at 1870.503. This last 
guidance is designed for use by procurement personnel and other 
individuals who participate in the major system acquisition process. It 
will also help the public understand NASA's

[[Page 537]]

major system acquisition policies and procedures.

[58 FR 58795, Nov. 4, 1993, as amended at 59 FR 10080, Mar. 3, 1994]



Sec. 1870.503  Major system acquisition procedures.

    (a) Major system acquisition procedures are prescribed in Appendix I 
to this section 1870.503.
    (b) NASA may reprint appendix I as a separate document, provided the 
following conditions are met:
    (1) The issuance date (``cover date'') of the procedures shall be 
the date of the NFS version from which the text is extracted.
    (2) With the exception of availability, distribution, and other 
special prefatory notices, any subsequent modification in the text shall 
be preceded by a change to NFS 1870.503, appendix I.
    (3) The following notice shall be included in the prefatory material 
of the document:

                            Important Notice

    These procedures are a separately bound, verbatim version of NASA 
FAR Supplement (NFS) (48 CFR 1870.503) Section 1870.503, Appendix I. 
Reference to other parts of the Federal Acquisition Regulation (FAR) and 
the NFS will be required for complete coverage of all procurement 
aspects. NASA reserves the right to make changes to NFS 1870.503, 
Appendix I without issuing a new edition of these procedures. In the 
event of apparent conflict between these procedures and the NFS, the NFS 
shall govern.

  Appendix I to 1870.503--NASA Procedures for Conducting Major System 
                              Acquisitions

                             1. Introduction

    (a) The acquisition of major systems presents a complex challenge 
for NASA. These acquisitions are among the agency's largest and often 
require the investment of significant Government and contractor 
resources over a number of years. These acquisitions are often 
accomplished in several distinct phases, from preliminary analysis 
through definition, design, development, and operation. The broad scope 
of programmatic activity in a major system acquisition demands an 
effective and efficient acquisition strategy.
    (b) There are several approaches to accomplishing these multi-phase 
major system acquisitions ranging from separate acquisition of each 
phase to competitive down-selection of combined phases. The preferred 
technique in NASA is use of a competitive down-selection strategy, and 
the preferred variation of this strategy is the ``progressive 
competition'' approach. In a progressive competition down-selection, a 
single formal solicitation is issued for all phases, multiple contracts 
are awarded for the initial phase, and a down-selection from among these 
contractors is conducted to determine the succeeding phase contractors. 
Progressive competition procedures, when properly planned and executed, 
facilitate the realization of the desirable goals of effective and 
efficient acquisition of major systems, preservation of full and open 
competition throughout the process, and acquisition streamlining.
    (c) This appendix describes the procedures to follow when using the 
progressive competition technique. Although this appendix addresses 
progressive competition, many of these procedures are applicable to 
other phased procurement strategies, and unless specifically prohibited 
herein, should be considered for use and adapted to accommodate the 
particulars of these other strategies. For example, the general guidance 
on the synopsis requirements and acquisition planning applies to all 
phased procurements, and most of the down-selection procedures apply to 
all down-selection strategies, not just progressive competitions. Some 
changes in these procedures may need to be made to recognize inherent 
differences in strategies, such as the use of new, formal solicitations 
for each phase of alternative down-selection strategies.

                             2. Definitions

    (a) Down-selection. In a phased procurement, the process of 
selecting contractors for phases subsequent to the initial phase from 
among the preceding phase contractors.
    (b) Major system. Any system that: is directed at and critical to 
fulfilling an agency mission; entails the allocation of a relatively 
large amount of resources; or warrants special management attention. 
Designation of a system as ``major'' is made in accordance with NASA 
Management Instruction (NMI) 7120.4, ``Management of Major System 
Programs and Projects,'' and NASA Handbook (NHB) 7120.5, ``Management of 
Major System Programs and Projects Handbook.''
    (c) Phased procurement. A program comprised of several distinct 
steps or phases (e.g., preliminary analysis, definition, design, and 
development) where the realization of program objectives requires a 
planned, sequential acquisition of each step or phase. The phases in a 
phased procurement may be acquired separately, in combination, or 
through a down-selection strategy.
    (d) Progressive competition. A type of down-selection strategy for a 
phased procurement.

[[Page 538]]

In this method, a single solicitation is issued for all phases of the 
program. The initial phase contracts are awarded, and the contractors 
for subsequent phases are expected to be chosen through a down-selection 
from among the preceding phase contractors. In each phase, progressively 
fewer contracts are awarded until a single contractor is chosen for the 
final phase. Normally, all down-selections are accomplished without 
issuance of a new, formal solicitation.

                 3. Phases of a Major System Acquisition

    (a) As described in NMI 7120.4 and NHB 7120.5, there are five phases 
in the life cycle of a major system acquisition, three of which are 
normally included in a phased procurement: Phase B, Definition; Phase C, 
Design; and Phase D, Development. The most common approach in NASA for 
acquiring these phases involves two steps: (1) two (or more) 
competitively awarded Phase B contracts; and (2) down-selection from 
among the Phase B contractors to a single Phase C/D contractor. To be 
relevant to the predominant agency practice, the procedures in this 
appendix address this model. However, the focus on this model does not 
preclude adaptation of these procedures to suit other phase 
combinations.
    (b) For a detailed description of the phases of a major system 
acquisition and their interrelationships, consult NHB 7120.5.

                  4. Planning a Progressive Competition

    (a) Choice of the appropriate procurement strategy for a major 
system acquisition is accomplished through careful analysis of many 
factors. The decision to proceed with each phase separately or to use 
the progressive competition technique must consider, among other things, 
the number of viable alternative system concept approaches, the risks 
associated with those approaches, funding, schedule, requirements 
maturity, and the extent to which an offeror's ability to perform 
successfully in subsequent phases is tied to successful performance in 
prior phases.
    (b) To be a candidate for a progressive competition, all 
considerations must play together. Of paramount importance is the need 
for a clear understanding and expression of program requirements and 
goals. Also, the planning considerations must carefully address and 
justify the number and content of the phases, the acquisition schedule 
and funding for each phase, the number of contractors for each phase, 
the timing of the down-selection decision, and the planned contract 
types for each phase.
    (c) Certain factors may clearly dictate that the progressive 
competition technique should not be used. For example, if it is likely 
that NASA may introduce a design concept independent of those explored 
by the Phase B contractors, it is also likely that a new, formal 
solicitation is necessary for Phase C/D and all potential offerors 
should be solicited. In this circumstance, progressive competition is 
inappropriate. Also, if there is no direct link between successful 
performance in the preceding phase and successful performance in the 
subsequent phase, progressive competition is also inappropriate. In both 
of these cases, the major system acquisition phases should be procured 
separately without a down-selection between phases.
    (d) It cannot be overemphasized that the success of a progressive 
competition is directly dependent on thorough planning before 
initiation. Progressive competition should not be used as a rationale 
for initiating an acquisition that is poorly planned, not well thought 
out, or merely a way to meet budget or schedule pressures. The need for 
clear technical requirements and program goals is in no way diminished 
by use of progressive competition. Where requirements and goals are not 
clear, the progressive competition approach shall not be used.
    (e) The rationale for use of progressive competition technique shall 
be thoroughly justified in the procurement plan or Acquisition Strategy 
Meeting (ASM) minutes. Because the Phase B solicitation will also lead 
to Phase C/D award, the decision to use the progressive competition 
strategy must be made prior to initiation of the Phase B procurement. 
Accordingly, both phases must be addressed in the initial acquisition 
strategy planning and documented in the procurement plan or ASM minutes.

            5. Progressive Competition Synopsis Requirements

    (a) Because of the importance of major system acquisitions, early 
identification of these programs to industry is encouraged. The research 
and development (R&D) advance notice described in FAR 5.205 is an 
effective tool to announce the program and identify the maximum number 
of qualified potential offerors. Although not required by regulation, 
use of R&D advance notices on major system acquisitions is strongly 
recommended.
    (b) To ensure that a progressive competition provides for the 
maximum effective competition and complies with statutory and regulatory 
requirements for full and open competition, each phase must be 
synopsized unless one of the exceptions in FAR 5.202 applies. Based on 
the NASA model of acquiring Phases B and C/D, this means that a separate 
synopsis must be issued prior to releasing the solicitation for Phase B 
and again prior to requesting Phase C/D proposals from the Phase B 
contractors. Each synopsis must be prepared in accordance with (FAR) 48 
CFR 5.207 and NFS 1834.005-1(d).

[[Page 539]]

    (c) Although a new, formal solicitation is normally not issued for 
Phase C/D under a progressive competition, the synopsis publication 
periods specified in FAR 5.203 still apply to the Phase C/D synopsis. In 
this case, the synopsis must be published at least 15 days before 
formally requesting the Phase C/D proposals from the Phase B contractors 
and at least 45 days prior to the Phase C/D proposal due date.
    (d) Notwithstanding the requirement to synopsize Phase C/D, in most 
cases there will not be any potential offerors for Phase C/D other than 
the Phase B contractors. However, proposals from other prospective 
offerors must be considered, and these offerors must be given all of the 
information necessary to compete for the next phase (e.g.: The 
previously issued solicitation; the preceding phase contracts; the 
preceding phase system performance and design requirements; all proposal 
preparation instructions; and evaluation factors, subfactors, and 
elements). To avoid schedule disruptions, early publication of the Phase 
C/D synopsis is strongly encouraged. Potential offerors other than the 
Phase B contractors cannot be summarily dismissed solely because the 
program schedule did not anticipate their involvement.
    (e) The following is a sample synopsis for Phase B of a progressive 
competition.
    A-Presolicitation Notice: ________ (PROGRAM NAME). NASA plans to 
conduct a progressive competition to define, design, develop, and 
produce the ________ (PROGRAM NAME). This effort will be a full and open 
competition and will be acquired in two distinct phases--Phase B, 
Definition, requiring preliminary system design of ________ (PROGRAM 
NAME) and Phase C/D, Design and Development, requiring the detailed 
design, fabrication and delivery of ________ (PROGRAM NAME). Two or more 
Phase B awards are anticipated leading to a single Phase C/D award. A 
progressive competition strategy will be used with down-selection of 
sources between Phases B and C/D. To be eligible for Phase B award, 
offerors must demonstrate the experience and capability, or ability to 
acquire the capability, to perform both Phases B and C/D. The 
competition for Phase C/D will build on the results of Phase B, and the 
award criteria for Phase C/D will include successful completion of 
specified Phase B requirements. Accordingly, NASA anticipates that only 
the Phase B contractors will be capable of successfully competing for 
Phase C/D. NASA will synopsize the Phase C/D competition in accordance 
with FAR 5.201 and 5.203, but does not plan to issue a new, formal 
solicitation. Instead, proposals will be requested from the Phase B 
contractors by ________ (INDICATE METHOD OF REQUESTING PROPOSALS, E.G., 
A LETTER) that will include detailed proposal preparation instructions 
and evaluation criteria. Although a new, formal solicitation will not be 
issued, any responsible source may submit a proposal for Phase C/D, and 
these proposals will be considered by the agency. Prospective offerors 
for Phase C/D other than the Phase B contractors will be provided all 
the material furnished to the preceding phase contractors necessary to 
submit a proposal. To be considered for Phase C/D award, offerors must 
demonstrate a design maturity equivalent to that of the Phase B 
contractors, such demonstration to include any Phase B deliverables upon 
which Phase C/D award may be based. Failure to fully and completely 
demonstrate the appropriate level of design maturity may render the 
proposal unacceptable with no further consideration for contract award. 
NASA anticipates releasing the solicitation for Phase B on or about 
________ (DATE OF RFP RELEASE). Detailed Phase B requirements are 
________ (GIVE A SPECIFIC DESCRIPTION OF PHASE B REQUIREMENTS). It is 
anticipated that Phase C/D will consist of ________ (GIVE ANTICIPATED 
PHASE C/D REQUIREMENTS). For further information, contact ________ (NASA 
POINT OF CONTACT).
    (f) The following is a sample synopsis for Phase C/D of a 
progressive competition.
    A-Presolicitation Notice: ________ (PROGRAM NAME). NASA is 
conducting a progressive competition to define, design, develop, and 
produce the ________ (PROGRAM NAME). This effort is a full and open 
competition and is being acquired in two distinct phases--Phase B, 
Definition, requiring preliminary system design of ________ (PROGRAM 
NAME) and Phase C/D, Design and Development, requiring the detailed 
design, fabrication and delivery of ________ (PROGRAM NAME). The Phase B 
solicitation was described in the ________ (CITE DATE) Commerce Business 
Daily. Phase B contracts were awarded to ________ (CITE CONTRACTORS) on 
________ (CITE AWARD DATE). A progressive competition strategy will be 
used with down-selection of sources from Phase B to determine the single 
Phase C/D contractor. The competition for Phase C/D will build on the 
results of Phase B, and the award criteria for Phase C/D includes 
successful completion of the Phase B requirements identified below. 
Accordingly, NASA anticipates that only the Phase B contractors will be 
capable of successfully competing for Phase C/D. A new, formal 
solicitation will not be issued for Phase C/D. Instead, proposals will 
be requested from the Phase B contractors by ________ (INDICATE METHOD 
OF REQUESTING PROPOSALS, E.G., A LETTER) that will include detailed 
proposal preparation instructions and evaluation criteria. However, any 
responsible source may submit a proposal for Phase C/D, and these 
proposals will be considered by the agency. Prospective offerors for 
Phase C/D other

[[Page 540]]

than the Phase B contractors will be provided all the material furnished 
to the preceding phase contractors necessary to submit a proposal. To be 
considered for Phase C/D award, offerors must demonstrate a design 
maturity equivalent to that of the Phase B contractors, such 
demonstration to include the following Phase B deliverables upon which 
Phase C/D award will be based: ________ (CITE SPECIFIC PHASE B 
DELIVERABLES). Failure to fully and completely demonstrate the 
appropriate level of design maturity may render the proposal 
unacceptable with no further consideration for contract award. NASA 
anticipates requesting Phase C/D on or about ________ (DATE) and 
proposals will be due ________ (CITE NUMBER) days thereafter. Detailed 
Phase C/D requirements are ________ (GIVE A SPECIFIC DESCRIPTION OF 
PHASE C/D REQUIREMENTS). For further information, contact ________ (CITE 
NASA POINT OF CONTACT).

                 6. Progressive Competition Solicitation

    (a) One of the major benefits of the progressive competition 
technique is that, in most circumstances, only one solicitation is used. 
This single solicitation not only covers the initial phase, but also all 
subsequent phases. That is, the solicitation for Phase B also satisfies 
the requirement for soliciting Phase C/D. Eliminating the need for a 
new, formal solicitation after the initial phase streamlines the process 
and should result in schedule economies. However, these savings will not 
be realized without proper planning. The potential for gaps between 
phases will still exist unless the Phase C/D down-selection is initiated 
during Phase B performance, allowing enough time to complete evaluation, 
make selection, and negotiate and award the Phase C/D contract not later 
than the conclusion of Phase B.
    (b) Only phased procurements using the progressive competition 
technique can acquire all phases of the procurement through a single 
formal solicitation. All other phased procurements must issue new, 
formal solicitations for each phase. However, merely calling a major 
system acquisition a progressive competition does not in itself mean 
that the formal initial phase solicitation is sufficient to cover all 
subsequent phases. Under a progressive competition, a clause 
substantially the same as that in 1852.234-71 must be included in the 
Phase B solicitation and contracts. (The clause at 1852.234-70 should be 
used for other types of down-selection strategies). This clause may be 
modified to suit the particulars of a given procurement, but it must 
include the information in 1834.005-170 (a) and (b) as a minimum. 
Failure to include any of this information may call into question the 
integrity of progressive competition procedures and require a new, 
formal solicitation for Phase C/D.
    (c) Because of the significant dollar value of major system 
acquisitions, formal Source Evaluation Board (SEB) procedures must be 
used for all phases of the procurement, unless one of the exceptions in 
1815.613-71(a) applies. Accordingly, a separate set of evaluation 
factors must be developed for each phase in a progressive competition. 
For the most part, these factors are developed the same way for a 
progressive competition as for any other NASA competitive procurement. 
However, there is one element inherent in the very nature of the 
progressive competition technique, or any other competitive down-
selection strategy, that must be reflected in the evaluation factors for 
such procurements. Since these competitive down-selection strategies 
anticipate that one of the Phase B contractors will also be the Phase C/
D contractor, the Phase B offerors must clearly demonstrate the ability 
to perform the subsequent phases. Accordingly, the evaluation factors 
for the Phase B award must specifically include the evaluation of the 
Phase B offerors' abilities to perform not only Phase B but also Phase 
C/D.
    (d) Although a new, formal solicitation is normally not issued 
subsequent to the initial phase when using the progressive competition 
technique, this practice is not absolute in all cases. If the Government 
requirements or evaluation procedures change so significantly after 
award of the initial phase contracts such that a substantial portion of 
the information provided in the initial phase synopsis, solicitation, or 
contracts is invalidated, a new, formal solicitation for subsequent 
phases is required. To ensure that schedules are not compromised or the 
benefits of phased procurements diminished, contracting officers, 
beginning at phase B award, should carefully monitor the degree to which 
the acquisition particulars may be changing. If it appears that the 
procurement circumstances have changed significantly, the contracting 
officer should take immediate action to begin generation of a formal 
solicitation for the next phase of the procurement.

              7. Progressive Competition Initial Contracts

    (a) In general, the Phase B contracts awarded in a progressive 
competition will look much like any other NASA contract for similar 
design efforts. There are certain features, however, that must be 
included (or must not be included) in these contracts to accommodate and 
authorize the continued use of this technique in the subsequent down-
selection. One feature that must be included in the Phase B contracts is 
the clause that explains the progressive competition

[[Page 541]]

techniques and the plans for the down-selection. As stated in paragraph 
6(b) of this appendix, a clause substantially the same as that in 
1852.234-71 must be included in the Phase B contracts when using the 
progressive competition technique and 1852.234-70 when using other down-
selection strategies.
    (b) An important feature of these clauses is the paragraph 
indicating that the Phase C/D proposals are not a contract requirement 
and the costs of preparing these proposals shall not be a direct charge 
to the Phase B contract or any other Government contract. To be 
consistent with this paragraph, the Phase B contracts shall not include 
any requirement for delivery of Phase C/D proposals nor shall they 
include a remuneration mechanism for the proposals. Options for such 
proposal activities, priced or unpriced, are prohibited.
    (c) The rationale for these prohibitions is twofold. First, making 
the Phase C/D proposals a contract requirement can cause significant and 
contentious data rights problems over which party owns the data in the 
proposal. Unless this issue is clearly resolved, contractors may be 
reluctant to provide unique or innovative information, fearing that it 
may be appropriated and given to a competitor. The technical objectives 
of the procurement would then be compromised. Second, by requiring Phase 
C/D proposals and paying for them, an outside offeror may successfully 
protest that the Phase B contractors were given an unfair competitive 
advantage for Phase C/D. The procurement may then no longer be 
considered full and open competition.
    (d) In addition to including the specific contract clause discussed 
above, the Phase B contracts should be carefully structured to allow 
down-selection at a discrete performance milestone such as a significant 
design review or at contract completion. Such advance planning will not 
only avoid gaps between phases but will also eliminate unnecessary 
duplication of effort or the need to terminate the remaining Phase B 
efforts of an unsuccessful Phase C/D offeror. It is critical to 
remember, however, that determination of the appropriate contract 
structure is not made based solely on schedule or contract 
considerations. Rather, it is also driven by, and reflective of, 
programmatic technical content and objectives.
    (e) For example, if the acquisition strategy calls for formal 
completion of Phase B effort at Preliminary Design Review (PDR), but it 
is not financially practical or technically necessary (for Phase C/D 
selection and performance purposes) to carry all Phase B contractors 
through PDR, the Phase B contracts should be structured with a basic 
period of performance through a significant, discrete milestone before 
PDR with a priced option for the effort from that milestone through PDR. 
The down-selection would be planned for the earlier milestone, the PDR 
option exercised for only the winner of the down-selection, and formal 
Phase C/D performance initiated at completion of the PDR option. In this 
scenario, the earlier milestone must be carefully chosen to ensure 
successful accomplishment of both program technical objectives and all 
activities leading to completion of the down-selection process. That is, 
design maturity at that point must be sufficient to accommodate an 
informed down-selection decision leading to successful accomplishment of 
Phase C/D.
    (f) In other program strategies, it may be both affordable and 
technically desirable to have all the Phase B contractors complete PDR. 
In these cases, the contract should be structured as a basic effort 
through PDR, down-selection made at that point, and Phase C/D 
performance beginning thereafter.
    (g) Regardless of the contract structure that is appropriate given 
the program objectives, the schedule leading to down-selection must also 
be carefully crafted and followed. This schedule must allow ample time 
for synopsizing the Phase C/D down-selection, responding to any other 
offeror's intention to submit a proposal, generation of whatever 
information is necessary for Phase C/D proposals (e.g., final technical 
requirements, proposal preparation instructions, and evaluation 
factors), submission and evaluation of the proposals, negotiation, and 
award. In some cases, the earliest of these activities will commence 
shortly after Phase B award. However, unless these activities are 
planned and executed in reasonable time periods to accommodate timely 
Phase C/D award, many of the benefits associated with the progressive 
competition technique, or any other down-selection strategy, will go 
unrealized.

                    8. Requesting Phase C/D Proposals

    (a) Although a new, formal solicitation is normally not issued for 
Phase C/D when using the progressive competition technique, Phase C/D 
proposals must be formally requested and the offerors given all 
information necessary to submit a proposal. The preferred approach for 
requesting Phase C/D proposals is by letter. This letter shall include 
the following:
    (1) A specific due date for the Phase C/D proposals along with a 
statement that FAR 52.215-10, Late Submissions, Modifications, and 
Withdrawals of Proposals, applies to this proposal due date.
    (2) Complete instructions for proposal preparation, including page 
limitations, if any.
    (3) Final evaluation factors.
    (4) Any statement of work, specification, or other contract 
requirements that have changed since the Phase B solicitation.
    (5) All required clause changes applicable to new work effective 
since Phase B contract award.

[[Page 542]]

    (6) Any representations or certifications, if required.
    (7) Any other required contract updates. (E.g., Phase C/D small and 
small disadvantaged subcontracting goals.)
    (b) Although the exception and not the rule, there are circumstances 
in which a new, formal solicitation must be issued for Phase C/D. 
Significant changes in paragraphs 8(a) (3) and (4) of this appendix, in 
particular, require a careful assessment as to whether a new 
solicitation should be issued. Determining the significance of changes 
is often subjective and difficult, however. These determinations should 
only be made after coordinated consultation among procurement, legal, 
and technical personnel. Some cases will be particularly clouded, and no 
clear resolution of the magnitude of the changes can be made. In these 
instances, the issue should be resolved on the side of caution and a 
new, formal solicitation issued.

                           9. Phase C/D Award

    (a) As stated in paragraph 6(c) of this appendix, evaluation of 
Phase C/D proposals will normally be accomplished in accordance with 
formal SEB procedures. Phase C/D award may be made by either a new 
contract, or by a new work supplemental agreement to the existing Phase 
B contracts.
    (b) Keep in mind that, no matter what is included in the original 
solicitation or Phase B contracts regarding the progressive competition 
technique, or any other alternative down-selection strategy, the Phase 
C/D effort is new work and not an in-scope change under the ``Changes'' 
clause, or any other clause, of the Phase B contract. If a supplemental 
agreement is used to implement Phase C/D, it shall cite the applicable 
``Phased Procurement'' clause (either 1852.234-70 or 1852.234-71) 
included in the Phase B contracts as authority for award.
    (c) Whether a new contract or new work supplemental agreement is 
used, the document must incorporate all applicable statutory and 
regulatory requirements (e.g., contract clauses) in effect as of its 
issuance. The Phase C/D award date is controlling and not the date of 
the Phase B awards.
    (d) In addition, regardless of the time of Phase C/D award or the 
contract vehicle used to effect it, the Phase C/D period of performance 
should commence only upon completion of Phase B tasks.


[58 FR 58795, Nov. 4, 1993; 58 FR 68687, Dec. 28, 1993, as amended at 59 
FR 10081, Mar. 3, 1994]



PART 1871--MIDRANGE PROCUREMENT PROCEDURES--Table of Contents




Sec.
1871.000  Scope of part.

                         Subpart 1871.1--General

1871.101  Purpose.
1871.102  Authority.
1871.103  Applicability.
1871.104  Definitions.
1871.105  Policy.

            Subpart 1871.2--Planning and Requirements Process

1871.201  Use of buying team.
1871.202  Organizational responsibilities.
1871.202-1  Requiring organization.
1871.202-2  Procurement organization.
1871.202-3  Supporting organizations.
1871.202-4  Center management.
1871.203  Buying team responsibilities.
1871.204  Small business set-asides.

               Subpart 1871.3--Publicizing of Solicitation

1871.301  Publicizing policy.
1871.302  Publicizing procedure.

                 Subpart 1871.4--Request for Offer (RFO)

1871.401  Types of RFO's.
1871.401-1  Sealed offers.
1871.401-2  Two-step competitive procurement.
1871.401-3  Competitive negotiated procurement not using qualitative 
          criteria.
1871.401-4  Competitive negotiation using qualitative criteria.
1871.401-5  Noncompetitive negotiations.
1871.401-6  Commercial items.
1871.402  Preparation of the RFO.
1871.403  Offer preparation period and limitations.
1871.404  Protection of offers.
1871.405  Model contract.
1871.406  RFO by NAIS.
1871.406-1  Methods of disseminating information (applicable to 
          procurements meeting the thresholds in 1871.302(a)).
1871.406-2  Special situations.
1871.406-3  Publicizing and response time.
1871.406-4  Method of soliciting offers.

                          Subpart 1871.5--Award

1871.501  Representations and certifications.
1871.502  Determination of responsible contractor.
1871.503  Negotiation documentation.
1871.504  Award documents.
1871.505  Notifications to unsuccessful offerors.
1871.506  Publication of award.
1871.507  Debriefing of unsuccessful offerors.

                Subpart 1871.6--``Best Value Selection''

1871.601  General.
1871.602  Specifications for MidRange procurements.

[[Page 543]]

1871.603  Establishment of evaluation criteria.
1871.604  Evaluation phases.
1871.604-1  Initial Evaluation.
1871.604-2  Determination of ``Finalists''.
1871.604-3  Discussions with ``Finalists''.
1871.604-4  Selection of ``Best Value'' Offer.
1871.605  Negotiation methods and procedures.
1871.606  Debriefings.

    Authority: 42 U.S.C. 2473(c)(1).

    Source: 59 FR 59378, Nov. 17, 1994, unless otherwise noted.

    Effective Date Note: Part 1871 was revised at 59 FR 59378, Nov. 17, 
1994, effective Nov. 17, 1994 and will expire on June 30, 1997.



Sec. 1871.000  Scope of part.

    This part prescribes policies and procedures for the acquisition of 
supplies, including commercial items, and services.

[60 FR 51368, Oct. 2, 1995]
    Effective Date Note: At 60 FR 51368, Oct. 2, 1995, section 1871.000 
was revised, effective Oct. 1, 1995 and will expire June 30, 1997.



                         Subpart 1871.1--General



Sec. 1871.101  Purpose.

    The purpose of this part is to establish policies and procedures 
that implement the MidRange procurement process.

[59 FR 59378, Nov. 17, 1994, as amended at 60 FR 51368, Oct. 2, 1995]
    Effective Date Note: At 60 FR 51368, Oct. 2, 1995, section 1871.101 
was amended by removing the second sentence, effective Oct. 1, 1995 and 
will expire June 30, 1997.



Sec. 1871.102  Authority.

    The Office of Federal Procurement Policy has provided authority for 
NASA to conduct a pilot test of a new procurement process within the 
scope of this part.



Sec. 1871.103  Applicability.

    (a) This part applies to all acquisitions, as described in 
1871.103(b), conducted at NASA installations.
    (b) This part applies to all contract actions the aggregate amount 
of which is greater than the simplified acquisition threshold (SAT) (FAR 
part 13) and not more than $1,000,000 in basic value and for commercial 
items regardless of dollar value to the extent consistent and compliant 
with FAR part 12 and part 1812 (see 1812.102(c)). For service contracts, 
up to four annual options of not more than $1,000,000 each are permitted 
where the option requirements are substantially the same as the basic 
requirement. For R&D contracts, options are permitted not to exceed 
$1,000,000 in total value (basic contract plus options). For supply 
contracts, four options of not more than $1,000,000 each are permitted 
when not more than $1,000,000 in funding is to be required in any fiscal 
year. The total amount of the basic award plus options may not exceed 
$5,000,000 in either the case of supplies or services except as provided 
in paragraph (c) of this section. For commercial item contracts, options 
are permitted regardless of dollar value.
    (c) For other than commercial items, if the Government estimate for 
the basic award amount or any option amount, if any, exceeds the limits 
of 1871.103(b), the procurement will be processed under FAR and NFS 
procurement procedures applicable to large procurements (see FAR parts 
14 and 15). When the estimate is within the range of 1871.103(b) and the 
procurement was started using these procedures but the offered prices/
costs exceed the MidRange ceiling, the procurement may continue under 
MidRange procedures, provided that:
    (1) The price/cost can be determined to be fair and reasonable,
    (2) The successful offeror accepts incorporation of required FAR and 
NFS clauses applicable to large procurements, and
    (3) The procurement does not exceed $1,500,000 for the basic 
requirement (and each option, if any) or $7,500,000 for the total 
requirement.

[60 FR 51368, Oct. 2, 1995, as amended at 61 FR 47082, Sept. 6, 1996]

    Effective Date Note: At 60 FR 51368, Oct. 2, 1995, section 1871.103 
was revised, effective Oct. 1, 1995 and will expire on June 30, 1997.



Sec. 1871.104  Definitions.

    The following terms are used throughout part 1871 as defined in this 
subpart.
    (a) NASA Acquisition Internet Services or NAIS means a computer 
system through which users may access documents available in electronic 
format.

[[Page 544]]

    (b) MidRange procurement procedure means a set of procedures within 
the authority of 1871.102 and the applicability of 1871.103.
    (c) Pilot test means a test of MidRange procurement procedures 
conducted within the authority of 1871.102 and applicability of 
1871.103.
    (d) Request for Offer (RFO) means the solicitation used to request 
offers for all authorized MidRange procurements.
    (e) Clarification and Discussion are used as defined in (FAR) 48 CFR 
15.601.
    (f) Negotiation is used as defined in (FAR) 48 CFR 15.101 and 
includes bargaining as described in (FAR) 48 CFR 15.102.
    (g) Commercial item is used as defined in FAR 2.101.
    (h) Presolicitation notice is used interchangeably with the term 
synopsis.

[59 FR 59378, Nov. 17, 1994, as amended at 60 FR 51369, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51369, Oct. 2, 1995, in section 
1871.104 paragraph (a) was revised and paragraphs (g) and (h) were 
added, effective Oct. 1, 1995 and will expire on June 30, 1997.



Sec. 1871.105  Policy.

    (a) The procedures in this part shall be used for all procurements 
within the scope of part 1871 at NASA installations.
    (b) Under MidRange procedures, cost or pricing data and 
certification thereof shall be in accordance with (FAR) 48 CFR 15.804.
    (c) Procurements conducted under part 1871, unless otherwise 
properly restricted under the provisions of (FAR) 48 CFR part 6, are 
considered to be full and open competition after exclusion of sources in 
accordance with (FAR) 48 CFR 6.203, Set-asides for small business and 
labor surplus area concerns, or full and open competition in accordance 
with (FAR) 48 CFR part 6, subpart 6.1.
    (d) Options may be included in the acquisition provided they conform 
to 1871.103(b) or do not exceed $5,000,000 for the total requirement, 
options included.
    (e) The appropriate part 1871 post-selection processes (negotiation, 
award, and publication of award) may be used to the extent applicable 
for Small Business Innovation Research (SBIR), broad agency 
announcements, unsolicited proposals, and Small Business Administration 
8(a) procurement actions within the applicability of 1871.103(b).
    (f) The NAIS will be used to the maximum extent practicable to 
disseminate advance procurement information and conduct part 1871 
procurements.
    (g) Use of locally generated forms is encouraged where their use 
will contribute to the efficiency and economy of the process. NASA Forms 
1667, Request for Offer, and 1668, Contract, or computer generated 
versions of these forms shall be used as the solicitation and contract 
cover sheets, respectively. Contractor generated forms or formats for 
solicitation response should be allowed whenever possible. There is no 
requirement for uniform formats (see (FAR) 48 CFR 15.406).

[59 FR 59378, Nov. 17, 1994, as amended at 60 FR 51369, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51369, Oct. 2, 1995, in section 
1871.105 paragraphs (d), (e) and (f) were revised, effective Oct. 1, 
1995 and will expire June 30, 1997.



            Subpart 1871.2--Planning and Requirements Process



Sec. 1871.201  Use of buying team.

    MidRange procedures are based on the use of a buying team to conduct 
the procurement. The concept is to designate individuals who are 
competent in their respective functional areas, provide those 
individuals with the basic authority to conduct the procurement and hold 
them accountable for the results. The buying team will normally consist 
of one technical member and one procurement member, but may be augmented 
with additional members as necessary. Personnel providing normal 
functional assistance to the team (e.g., legal, financial) will not be 
considered a part of the team unless so designated. To function 
properly, the team should be given the maximum decision authority in 
matters related to the procurement. When higher level management 
approvals remain essential, it will be incumbent upon the functional 
team member to obtain such approvals. The team may accept, as final, the 
decision of the responsible buying team member.

[[Page 545]]

1871.202  Organizational responsibilities.



Sec. 1871.202-1  Requiring organization.

    The requirements organization shall appoint, by name, the technical 
member of the buying team. This individual will normally be an end user 
or the one most familiar with the technical aspects of the requirement. 
The individual appointed, whatever the relationship with the procured 
item, is expected to totally fulfill the responsibilities to the buying 
team. If the requiring organization elects not to appoint a technical 
member to the buying team, standard interfaces and authorities 
applicable to large procurements will be used. The procedures in this 
part will be used to the extent practical; however, priority will be 
afforded to procurements fully using buying teams.



Sec. 1871.202-2  Procurement organization.

    The procurement organization shall appoint the procurement member of 
the buying team. This individual shall be a warranted contracting 
officer or a contract specialist with broad latitude to act for the 
contracting officer. The procurement member shall be the team leader 
with the ultimate responsibility to conduct the procurement.



Sec. 1871.202-3  Supporting organizations.

    Buying team members may require additional team members to perform 
specialized functions or to assist in the evaluation of offers. Requests 
for supporting members shall be made by the organization identifying the 
need for the support and directed to the appropriate management level in 
the supporting organization. Supporting team members, once designated 
for the team, shall fulfill all applicable responsibilities to the team 
as other members.



Sec. 1871.202-4  Center management.

    Center managers shall, to the maximum extent practical and 
consistent with their responsibilities to manage the Center mission, 
convey sufficient authority to members of the buying team to conduct the 
procurement. Administrative or technical approvals should be minimized, 
and where deemed essential, facilitated to the maximum extent 
practicable. Center managers should lend their full support to the 
buying team should problems arise from the procurement.



Sec. 1871.203  Buying team responsibilities.

    (a) The buying team shall conduct the procurement in a manner that 
best satisfies the user requirements and meets the norms expected of a 
Government procurement. Team members should develop open communications, 
rely on decisions of other responsible functional team members and meet 
their obligations to the team. The team will typically--
    (1) Refine the final specifications for the solicitation;
    (2) Decide the most appropriate solicitation method;
    (3) Establish milestones for the procurement;
    (4) Finalize the evaluation criteria;
    (5) Develop the RFO and model contract; and
    (6) Evaluate offers and determine the awardee.
    (b) The procurement member of the buying team shall lead 
clarifications, discussions, and negotiations; shall be the source 
selection official; and shall conduct debriefings.



Sec. 1871.204  Small business set-asides.

    (a) Except as provided in paragraphs (b) through (e) of this 
section, each MidRange acquisition of supplies and services shall be 
reserved exclusively for small business concerns.
    (b) The requirement for small business MidRange set-asides does not 
relieve the buying office of its responsibility to procure from required 
sources of supply, such as Federal Prison Industries, Industries for the 
Blind and Other Severely Handicapped, and mandatory multiple award 
Federal Supply Schedule contracts.
    (c) Procurement not conducted as small business set-asides and under 
less than full and open competition require a Justification for Other 
than Full and Open Competition pursuant to (FAR) 48 CFR part 6.
    (d) If the buying team procurement member determines there is no 
reasonable expectation of obtaining offers from two or more responsible 
small

[[Page 546]]

business concerns that will be competitive in terms of market price, 
quality, and delivery, the buying team need not proceed with the small 
business set-aside and may purchase on an unrestricted basis utilizing 
MidRange procedures. The buying team procurement member shall document 
the contract file with the reason for the unrestricted procurement.
    (e) If the buying team proceeds with the small business MidRange 
set-aside and receives an offer from only one responsible small business 
concern at a reasonable price, the contracting officer will normally 
make an award to that concern. However, if the buying team does not 
receive a reasonable offer from a responsible small business concern, 
the buying team procurement member may cancel the small business set-
aside and complete the procurement on an unrestricted basis utilizing 
MidRange procedures. The buying team procurement members shall document 
in the file the reason for the unrestricted purchase.
    (f) Each model contract under a small business MidRange set-aside 
shall contain the clause at (FAR) 48 CFR 52.219-6, Notice of Total Small 
Business Set-Aside.



               Subpart 1871.3--Publicizing of Solicitation



Sec. 1871.301  Publicizing policy.

    Use of the MidRange procedure is intended to streamline and expedite 
the acquisition process. Presolicitation publication requirements are 
streamlined; however, it is in the Government's interest to provide as 
much advance notice as possible of a pending acquisition in order for 
the Government to obtain maximum competition. As soon as practicable 
after a requirement has been finalized and before the RFO is ready for 
release, a presolicitation notice of the procurement action shall be 
published on the NAIS.

[59 FR 59378, Nov. 17, 1994, as amended at 60 FR 51369, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51369, Oct. 2, 1995, in section 
1871.301 the last sentence was revised, effective Oct. 1, 1995 and will 
expire on June 30, 1997.



Sec. 1871.302  Publicizing procedure.

    (a) Synopses are not to be sent to or published in the Commerce 
Business Daily except where the basic award is expected to exceed 
$500,000, the total amount of the basic award plus options is expected 
to exceed $2,500,000, or annual obligations are expected to exceed 
$500,000 in any one year.
    (b) A separate pre-solicitation notice for each requirement shall be 
published on the NAIS. The pre-solicitation notice shall be published 
prior to the actual release of the solicitation, except as set forth in 
paragraph (d) of this section.
    (c) The presolicitation notice will comply with the requirements set 
forth in FAR 5.207(b).
    (1) Include a statement that the solicitation will be released via 
the NAIS, that potential offerors will be responsible for downloading 
their own copy of the solicitation, and that hard copies of the 
solicitation shall be made available on request, but the closing date 
will be the same as that required for the NAIS released solicitation; 
and
    (2) State the projected solicitation release date, provide notice 
that it is the offeror's responsibility to monitor the NAIS for 
solicitation release as the solicitation will be released as soon as 
practicable whether prior or subsequent to the projected date, and 
identify the name, telephone number, and e-mail address of a point of 
contact. The presolicitation notice shall be updated to reflect 
significant changes to the original notice.
    (d) For commercial item purchases, the streamlined solicitation 
(combined presolicitation notice and solicitation described in FAR part 
12) may be used.

[60 FR 51369, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51369, Oct. 2, 1995, section 1871.302 
was revised, effective Oct. 1, 1995 and will expire on June 30, 1997.



                 Subpart 1871.4--Request for Offer (RFO)

    In MidRange procedures, solicitation of sources shall be 
accomplished by use of an RFO. The RFO will be solely a solicitation 
document incorporating only those elements of information required

[[Page 547]]

to solicit the offer. Offers will be provided on a model contract 
furnished with the RFO.



Sec. 1871.401  Types of RFO'S.

    The RFO may be used for all types of procurements to which MidRange 
is applicable. The distinguishing difference will be the evaluation and 
award criteria specified in the RFO. This, in turn, will be driven by 
the buying team's decisions on the extent of discussion required, the 
amount of non-price factors that will influence the award and the amount 
of competition available. If the conditions FAR 6.401(a) are met, the 
RFO's described in 1871.401-1 and 1871.401-2 shall be used; otherwise, 
RFO's described in 1871.401-3, 1871.401-4, 1871.401-5, or 1871.401-6 may 
be used. Once the evaluation and award criteria have been specified in 
the RFO, the procurement must conform to the procedures applicable to 
these criteria, unless changed by formal amendment to the RFO.

[59 FR 59378, Nov. 17, 1994, as amended at 60 FR 51369, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51369, Oct. 2, 1995, in section 
1871.401 was amended by revising the fourth sentence, effective Oct. 1, 
1995 and will expire on June 30, 1997.



Sec. 1871.401-1  Sealed Offers.

    (a) Policy. RFO's may specify that award will be made to the low, 
responsive, responsible offeror providing the most advantageous offer 
considering only price and price-related factors. This method shall be 
used when (1) time permits the solicitation, submission, and evaluation 
of sealed offers; (2) award will be made on the basis of price and other 
price-related factors; (3) conducting discussions with the offerors is 
not necessary; and (4) a reasonable expectation of receiving more that 
one offer exists. The RFO shall be in compliance with the requirements 
of (FAR) 48 CFR part 14 relating to Sealed Bidding.
    (b) Procedures. (1) The RFO shall request offerors to provide both a 
technical and price offer by the closing date specified.
    (2) In accordance with (FAR) 48 CFR Part 14, offers (whether 
received by facsimile or sealed envelope delivery) shall be publicly 
opened at the designated time and place. Interested members of the 
public will be permitted to attend the opening. Offers shall be 
abstracted pursuant to (FAR) 48 CFR part 14 and be available for public 
inspection. For unclassified acquisitions, a summary abstract, 
containing offerors, prices and any essential information specific to 
that procurement shall be posted on the NAIS. The abstract shall be 
included in the contract file.
    (3) All offers shall be examined for mistakes in accordance with 
(FAR) 48 CFR 14.406. The buying team shall determine that a prospective 
contractor is responsible and that the prices offered are reasonable 
(see (FAR) 48 CFR 14.407-2).
    (4) The Government will award a contract to the low, responsive, 
responsible offeror, whose offer conforms to the RFO and will be most 
advantageous to the Government, considering only price and the price-
related factors included in the solicitation

[59 FR 59378, Nov. 17, 1994, as amended at 60 FR 51369, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51369, Oct. 2, 1995, in section 
1871.401-1 paragraph (b)(2) was amended by revising the fourth sentence, 
effective Oct. 1, 1995 and will expire June 30, 1997.



Sec. 1871.401-2  Two-Step competitive procurement.

    (a) Policy. (1) RFO's may specify that evaluation and award may be 
conducted in two distinct steps, similar in concept to ``Two Step Sealed 
Bidding.'' The MidRange Two Step process should be used when it is 
desirable to award to the lowest, responsive, responsible offeror after 
determining that the initial technical offer, or the revised technical 
offer, is acceptable.
    (2) The procedures of (FAR) 48 CFR 14.503-2(a) shall be used once 
Step two of this process begins.
    (b) Procedures. (1) The RFO shall request offerors to provide both a 
technical and a price offer by the closing date specified. Price offers 
are requested to ensure that they are accomplished in a timely manner 
and to reduce the time required for Step Two.
    (2) Step One. The technical offer will be evaluated to determine if 
the product or service offered is acceptable.

[[Page 548]]

The buying team may proceed directly to Step Two if there are sufficient 
acceptable offers to ensure adequate price competition, and if further 
time, effort and delay to make additional offers acceptable and thereby 
increase competition would not be in the Government's interest. If this 
is not the case, the buying team procurement member shall enter into 
discussions and request offeror(s) whose offer(s) is susceptible to 
being made acceptable to submit additional clarifying or supplementing 
information to make it acceptable (see (FAR) 48 CFR 14.503-1). It is 
expected that these discussions will be conducted on an informal basis. 
After completion of discussions, the buying team shall proceed to Step 
Two.
    (3) Step Two. The buying team shall afford all offerors who have 
submitted acceptable offers and those offers with whom discussions were 
conducted, an opportunity, by a common date, to revise their price 
offers. No changes to technical offers will be permitted during this 
process. A reasonable amount of time (normally less than 5 working days) 
will be afforded for the revision. The amount of time given shall be the 
same for each offeror. The procedures at 1871.401-1(b)(2) and (3) shall 
then be followed.
    (4) The Government will award a contract to the low, responsive, 
responsible offeror, whose offer conforms to the RFO and will be most 
advantageous to the Government, considering only price and the price-
related factors included in the solicitation.



Sec. 1871.401-3  Competitive negotiated procurement not using qualitative criteria.

    (a) Policy. (1) RFO's may provide for discussion of all aspects of 
the offer but award is based on the lowest priced (or most probable 
cost) technically acceptable offer. This method should be used when 
qualitative factors are not material in the award decision, but it is 
important to assure that technical offers and contract terms are fully 
compliant with the Government's needs. This method also permits direct 
discussion of price with offerors and is particularly appropriate when 
different approaches can be offered to satisfy the Government's need.
    (2) The RFO should reserve the right to award without discussion 
based on the initial offers submitted. (FAR) 48 CFR 52.215-16, Alternate 
III will be included in all RFO's for competitive negotiated 
procurements not using qualitative criteria.
    (b) Procedures. (1) The RFO shall request offerors to provide both a 
technical and a price offer by the closing date specified.
    (2) Initial evaluation. The offer shall be reviewed to determine if 
all required information has been provided. No further evaluation shall 
be made of any offer that is deemed unacceptable because it does not 
meet the technical requirements of the RFO and is not reasonably 
susceptible to being made so. Offerors may be contacted for 
clarification purposes only during the initial evaluation. Offerors 
determined not to be acceptable shall be notified of their rejection and 
the reasons therefor and excluded from further consideration. 
Documentation for such rejection should consist of one or more succinct 
statements of fact that show the offer is not acceptable. No 
documentation is required if all offers are deemed to be acceptable or 
reasonably susceptible to being made so.
    (3) Determination of finalists. From among the acceptable offers and 
those susceptible to being made acceptable, the buying team shall rank 
the offers based on price (or most probable cost) and exclude any whose 
price/most probable cost precludes any reasonable chance of being 
selected for final award. The remaining offers constitute the 
``finalists'' for the contract. Only in exceptional cases will this 
number be less than two offers. The procurement buying team member shall 
succinctly record the basis for the decision.
    (4) Discussions. Discussions may be used if it is necessary to 
request the offeror to submit additional clarifying or supplementing 
information to make an offer acceptable. The procurement buying team 
member shall lead discussions with each finalist. The discussions are 
intended to assist the buying team in fully understanding each 
finalist's offer and to assure that all finalists are competing equally 
on the basis

[[Page 549]]

intended. Care must be exercised to ensure these discussions adhere, to 
the extent applicable, to the guidelines set forth in 1815.613-71(b)(5) 
for the applicable contract type. Technical transfusion, technical 
leveling, and auction techniques are prohibited. It is expected that 
discussions will be conducted on an informal basis with each finalist. 
After completion of discussions, each finalist shall be afforded an 
opportunity to revise its offer to support and clarify its offer. A 
reasonable amount of time (normally less than 5 working days) will be 
afforded for the revision. The amount of time given shall be the same 
for each finalist. Such discussions are not required if there are 
sufficient acceptable offers to ensure adequate price competition, and 
if further time, effort and delay to make additional proposals 
acceptable and thereby increase competition, would not be in the 
Government's interest.
    (5) The buying team may choose to conduct parallel negotiations with 
all acceptable offerors without a determination of finalists. This could 
particularly apply when few offers were received.
    (6) Selection. The procurement team member shall be the source 
selection official. The source selection official may elect to make 
selection in lieu of determining finalists provided that it can be 
demonstrated that (i) selection of an initial offer(s) will result in 
the lowest price/cost to the Government and (ii) discussions with other 
acceptable offerors are not anticipated to change the outcome of the 
initial evaluation relative to evaluated price/cost. It is expected that 
the source selection statement will not ordinarily exceed one page and 
that the basis for the decision will be apparent upon review of the 
informal worksheets used in the evaluation process. These informal 
worksheets shall be included in the contract file.
    (7) The names of offerors determined to be finalists, selected for 
parallel negotiations, or selected for negotiations and/or final 
contract award will be electronically transmitted to the offerors. This 
will serve as notification to those offers that were not selected for 
further evaluation (see 1871.505).
    (8) Negotiation methods and procedures. The buying team may choose 
to conduct parallel negotiations of complete contracts with those 
offerors determined to be finalists or with all acceptable offerors, 
including offers susceptible to being made acceptable. The buying team 
may discuss any aspect of the offer during parallel negotiations. The 
objective of the negotiations should be to achieve revisions to the 
offer, consistent with the RFO, that are more favorable to the 
Government. Technical transfusion, technical levelling, and auction 
techniques are prohibited. Upon conclusion of negotiations with each 
offeror, the offeror shall be asked to submit a revised offer (in full 
or amended) reflecting the results of negotiations, and including the 
offeror's signature on the negotiated contract. A reasonable amount of 
time (normally less than 5 working days) will be afforded for the 
revision. Award will be made to the lowest priced (or most probable 
cost), technically acceptable offer.



Sec. 1871.401-4  Competitive negotiations using qualitative criteria.

    (a) Policy. (1) MidRange procurements shall normally use the BVS 
source selection method, prescribed in 48 CFR part 1871, subpart 1871.6 
when it is desirable to base evaluation and award on a combination of 
price and non-price qualitative criteria.
    (2) The RFO should reserve the right to award without discussion 
based on the initial offers submitted. (FAR) 48 CFR 52.215-16, Alternate 
III will be included in all RFO's for competitive negotiated 
procurements using qualitative criteria.
    (3) In exceptionally complex procurements where it is desirable to 
use a highly structured approach and multiple evaluators, a source 
selection method following the principles specified in NASA Source 
Evaluation Board Handbook, 48 CFR 1870.303, Appendix I, may be more 
appropriate than BVS. This may be appropriate in cases in which the 
following factors cannot be accommodated within the MidRange/BVS 
selection methodology:
    (i) The ability to predefine the value characteristics that will 
constitute the discriminators among the offers;

[[Page 550]]

    (ii) The complexity of the interrelationships that must be 
evaluated;
    (iii) The number of evaluators required to address the disciplines 
that will be involved in the offers; or
    (iv) The impact that the procurement may have on higher level 
mission management (level of selection official) or future procurements.
    (4) A source selection process combining the mid-range and the NASA 
Source Evaluation Board Handbook (48 CFR 1870.303, Appendix I) 
approaches shall not be used.
    (b) Procedures. (1) The buying team will determine which of the 
source selection methodologies is most appropriate to the specific 
procurement.
    (2) The team shall record its rationale for selecting the SEB 
methodology rather than BVS. Once this decision is made, the team shall 
no longer function as a MidRange buying team, but shall follow the 
instructions prescribed in the local procedures for the source selection 
method.



Sec. 1871.401-5  Noncompetitive negotiations.

    (a) Policy. (1) The RFO may be used as the solicitation method for 
noncompetitive procurements.
    (2) MidRange procedures may be used in noncompetitive acquisitions 
to the extent they are applicable.
    (b) Procedures. (1) Within the dollar thresholds specified in 
1871.302(a), posting a presolicitation notice on the NAIS meets the 
requirement of FAR 5.201 and complies with the notice required by the 
Competition in Contracting Act. A presolicitation notice is not required 
if one of the exceptions of FAR 5.202 is met.
    (2) The buying team shall require submission of certified cost and 
pricing data in accordance with (FAR) 48 CFR 15.804-2.
    (3) The technical member of the buying team shall provide technical 
assistance to the procurement member during evaluation and negotiation 
of the contractor's offer.

[59 FR 59378, Nov. 17, 1994, as amended at 60 FR 51369, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51369, Oct. 2, 1995, in section 
1871.401-5 paragraph (b)(1) was revised, effective Oct. 1, 1995 and will 
expire June 30, 1997.



Sec. 1871.401-6  Commercial items.

    (a) Policy. (1) The RFO may be used as the solicitation method for 
commercial items.
    (2) MidRange Procedures may be used for commercial item procurements 
to the extent consistent and compliant with FAR part 12 and part 1812 
(see 1812.102(c)).
    (b) Procedures. (1) Offerors shall be requested to provide both a 
technical and a price offer by the closing date specified.
    (2) The offers will be evaluated in accordance with applicable 
procedures.

[60 FR 51369, Oct. 2, 1995, as amended at 61 FR 47082, Sept. 6, 1996]

    Effective Date Note: At 60 FR 51369, Oct. 2, 1995, section 1871.401-
6 was added, effective Oct. 1, 1995 and will expire on June 30, 1997.



Sec. 1871.402  Preparation of the RFO.

    (a) The RFO shall provide all standard information required for the 
offeror to submit an offer.
    (b) The RFO shall contain space for all necessary additional 
instructions to offerors. As a minimum, the RFO shall contain the 
following:
    (1) Incorporation by reference of all required standard provisions.
    (2) A provision notifying offerors that standard Representations and 
Certifications will be required from the successful offeror, or from all 
offerors selected for parallel negotiations, prior to award of the 
contract.
    (3) Evaluation and award criteria.
    (4) A provision requiring offerors to submit offers on an attached 
model contract.
    (c) Requirements for the content and format of the offer should be 
the minimum required to provide for proper evaluation. Offerors' formats 
should be allowed to the maximum extent possible.
    (d) Facsimile offers, defined by Federal Acquisition Regulation 48 
CFR 14.202-7 and 15.402(i), shall normally be authorized for MidRange 
procurements. In special circumstances, the buying team may elect to 
require only original offers.

[[Page 551]]



Sec. 1871.403  Offer preparation period and limitations.

    The buying team should establish deadlines for receipt of offers 
based on an assessment of the minimum amount of time required to respond 
to the solicitation. The time required will depend on the complexity of 
the requirement and amount of cost and technical information required to 
be submitted. The information required shall be limited to the amount 
required to conduct a proper evaluation. The offer preparation period 
established in the RFO shall not be less than 15 calendar days unless 
the procurement is urgent and the reasons for urgency are documented in 
the contract file.



Sec. 1871.404  Protection of offers.

    A facsimile machine(s) shall be dedicated for receipt of offers and 
placed in a secure location where offers received on it can be 
safeguarded. All offers submitted shall be recorded, sealed in an 
envelope marked with the RFO number and taken to the buying team 
procurement member. Facsimile attendants shall make a good faith effort 
to inspect the document for completeness and legibility. If the 
attendant believes there are missing or illegible pages, the document 
will be promptly referred to the buying team procurement member for 
notification to the offeror that it should resubmit the offer. The 
Government shall not assume responsibility for proper transmission.



Sec. 1871.405  Model contract.

    MidRange procedures use a simplified contract format. The simplified 
contract format may be used with any type of contract, as long as the 
clauses and provisions appropriate to the contract type are included.
1871.406  RFO by NAIS.



Sec. 1871.406-1  Methods of disseminating information (applicable to procurements meeting the thresholds in 1871.302(a)).

    (a) In accordance with 1871.302, presolicitation notices of 
solicitations for MidRange procurements shall be posted on the NAIS. The 
presolicitation notice shall include the information required by 
1871.302(c).
    (b) Solicitations for MidRange Procurements shall be made available 
on the NAIS. Paper copies shall be mailed within 5 working days from the 
date the RFO is posted on the NAIS or receipt of the request, whichever 
is later.
    (c) Solicitations available on the NAIS are exempt from the 
requirement in FAR 14.203-1 that delivery of the solicitations be made 
pursuant to FAR 14.205.
    (d) For the purposes of FAR 15.402(a), a solicitation posted on the 
NAIS is a written solicitation.
    (e) Solicitations posted on the NAIS in accordance with these 
regulations are exempt from the requirement in FAR 15.408(a) to issue 
solicitations using the procedures in FAR part 5.

[60 FR 51370, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51370, Oct. 2, 1995, section 1871.406-
1 was revised, effective Oct. 1, 1995 and will expire on June 30, 1997.



Sec. 1871.406-2  Special situations.

    Notices for special situations as described in (FAR) 48 CFR 5.205 
involving MidRange Procurements must be published in the Commerce 
Business Daily. Such special situations include R&D sources sought, 
intent to sponsor or change the mission of an Federally Funded Research 
and Development Center, effort to locate commercial sources under OMB 
Circular No. A-76, and Section 8(a) competitive national buy 
acquisitions.



Sec. 1871.406-3  Publicizing and response time.

    In accordance with 18.403, contracting activities shall allow at 
least 15 calendar days response time for receipt of offers from the date 
of posting of the solicitation on the NAIS. Contracting activities shall 
check the NAIS immediately after uploading a solicitation to assure that 
the solicitation is properly posted.

[60 FR 51370, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51370, Oct. 2, 1995, section 1871.406-
3 was revised, effective Oct. 1, 1995 and will expire June 30, 1997.

[[Page 552]]



Sec. 1817.406-4  Method of soliciting offers.

    (a) Solicitations and solicitation amendments for MidRange 
procurements shall be generated in, or converted to, electronic files 
and uploaded to the NAIS.
    (b) Amendments to a solicitation posted on the NAIS shall be 
uploaded to the NAIS, and the solicitation and amendment number shall be 
added to the index of amended solicitations.

[60 FR 51370, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51370, Oct. 2, 1995, section 1871.406-
4 was revised, effective Oct. 1, 1995 and will expire on June 30, 1997.



                          Subpart 1871.5--Award



Sec. 1871.501  Representations and certifications.

    Upon determination of the successful offeror, or all offerors 
selected for parallel negotiations, the buying team procurement member 
will determine if the offeror has on file valid Representations and 
Certifications. If the offeror has not completed the required forms, or 
they have expired, the offeror will be requested to provide the forms 
promptly. Should the offeror fail to provide the required 
Representations and Certifications or fail to meet a required condition, 
the buying team may reject the offer and proceed to the next highest 
ranked offeror who is responsive and responsible.



Sec. 1871.502  Determination of responsible contractor.

    Contractor responsibility shall be determined in accordance with 
(FAR) 48 CFR Part 9.



Sec. 1871.503  Negotiation documentation.

    The prenegotiation memorandum, if required, and the results of 
negotiation will be in abbreviated form and will be approved by the 
buying team.



Sec. 1871.504  Award documents.

    Contract award shall be accomplished by Contracting Officer 
execution of the contract document and providing a paper copy to the 
successful offeror. If facsimile documents were used in the evaluation 
process, the successful offeror may be required to execute original 
copies of the contract to facilitate legibility during the 
administration phase of the contract.



Sec. 1871.505  Notifications to unsuccessful offerors.

    For solicitations that were posted on the NAIS, a preaward notice 
shall be electronically transmitted to the offerors. This notice meets 
the requirements of FAR 15.1001. However, the preaward notice in a small 
business set-aside must allow unsuccessful offerors 5 working days to 
challenge the small business status of the successful offeror. The 
procedures of FAR 15.1001(c)(2) shall be followed for procurements 
subject to the Trade Agreements Act.

[60 FR 51370, Oct. 2, 1995]
    Effective Date Note: At 60 FR 51370, Oct. 2, 1995, section 1871.505 
was revised, effective Oct. 1, 1995 and will expire on June 30, 1997.



Sec. 1871.506  Publication of award.

    An award notice shall be posted on the NAIS for seven (7) calendar 
days after posting, if the contract offers subcontracting opportunities 
or if it is subject to the Trade Agreements Act. The information 
required by FAR 5.207 shall be included in the award notice in 
abbreviated form.

[60 FR 51370, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51370, Oct. 2, 1995, section 1871.506 
was revised, effective Oct. 1, 1995 and will expire on June 30, 1997.



Sec. 1871.507  Debriefing of unsuccessful offerors.

    If the procurement method used provides for a debriefing of 
unsuccessful offerors, the procedures applicable to that selection 
process shall be used in the debriefing. The procurement buying team 
member shall conduct debriefings.



                Subpart 1871.6--``Best Value Selection''



Sec. 1871.601  General.

    (a) Best Value Selection (BVS) seeks to select an offer based on the 
best combination of price and qualitative merit of the offers submitted 
and reduce the administrative burden on the offerors and the Government.

[[Page 553]]

    (b) BVS takes advantage of the lower complexity of MidRange 
procurements and predefines the value characteristics which will serve 
as the discriminators among offers. It eliminates the use of area 
evaluation factors and the highly structured scoring.



Sec. 1871.602  Specifications for MidRange procurements.

    BVS refines the traditional approach to preparing specifications. 
BVS envisions that the specification will focus on the end result that 
is to be achieved and will serve as a statement of the Government's 
baseline requirements. The offeror will be guided in meeting the 
Government's needs by a separate set of value characteristics which 
establish what the Government considers to be valuable in an offer. 
These value characteristics will be performance based and will permit 
the selection of the offer which provides better results for a 
reasonable marginal increase in price.



Sec. 1871.603  Establishment of evaluation criteria.

    (a) The requiring organization will provide, along with the 
specification, a list of value characteristics against which the offers 
will be judged. There is no limit to the number or the type of 
characteristics that may be specified. The only standard will be whether 
the characteristic is rationally related to the need specified in the 
specification. Characteristics may include such factors as improved 
reliability, innovativeness of ideas, speed of service, demonstrated 
delivery performance, higher speeds, ease of use, qualifications of 
personnel, solutions to operating problems, level of service provided on 
previous similar contracts, or any of numerous other characteristics 
that may be of value to the Government in satisfying its needs.
    (b) Cost and technical will be considered equal in importance. The 
value characteristics will not be assigned weights.
    (c) All subsequent evaluations will consider these characteristics 
when determining the finalists or making the final selection for award. 
Additional characteristics, not listed in the RFO, shall not be used as 
a basis for discriminating among proposals.
1871.604  Evaluation phases.



Sec. 1871.604-1  Initial evaluation.

    (a) Offers will be reviewed to determine if all required information 
has been provided and the offeror has made a reasonable attempt to 
present an acceptable offer. Offerors may be contacted only for 
clarification purposes during the initial evaluation. No further 
evaluation shall be made of any offer that is deemed unacceptable 
because:
    (1) It does not represent a reasonable effort to address itself to 
the essential requirements of the RFO or clearly demonstrates that the 
offeror does not understand the requirements of the RFO;
    (2) It contains major technical or business deficiencies or 
omissions or out-of-line costs which discussions with the offeror could 
not reasonably be expected to cure; or
    (3) In R&D procurement, a substantial design drawback is evident in 
the offer and sufficient correction or improvement to consider the offer 
acceptable would require virtually an entirely new offer.
    (b) Offerors determined not to be acceptable shall be notified of 
their rejection and the reasons therefor and excluded from further 
consideration.
    (c) Documentation. If it is concluded that all offers are 
acceptable, then no documentation is required and evaluation proceeds. 
If one or more offers are not acceptable, the procurement member of the 
team will notify the offeror of the rejection and the reasons therefor. 
The documentation should consist of one or more succinct statements of 
fact that show the offer is not acceptable.



Sec. 1871.604-2  Determination of ``Finalists''.

    (a) All acceptable offers will be evaluated against the 
specifications and the value characteristics. Based on this evaluation, 
the team will identify the finalists from among the offers submitted. 
Finalists will include all offers having a reasonable chance of being 
selected for final award, as prescribed in

[[Page 554]]

1815.613-71(b)(4)(i) for competitive range. Generally, finalists will 
include the offer having the best price (or lowest most probable cost) 
and the offer having the highest qualitative merit, plus those 
determined to have the best combination of price and merit. Offers not 
qualifying as finalists will be excluded from the balance of the 
evaluation process.
    (b) Whenever possible, the buying team will conduct parallel 
negotiations of complete contracts with all finalists as discussed in 
1871.605. This approach, which provide for the negotiation of definitive 
contracts prior to selection, serves to maintain the competitive 
environment among offerors throughout the acquisition cycle.
    (c) In some cases, the buying team may choose to conduct discussions 
with the finalists as opposed to conducting parallel negotiations of 
complete contracts. This may be appropriate when: (1) Certain aspects of 
offers are unclear and clarifying the offers could determine that a 
finalist actually has no reasonable chance of being selected for final 
award; or (2) the finalists are so numerous that negotiating complete 
contracts with all finalists is not practical considering the time and 
resources available. Discussions shall be conducted in accordance with 
1871.604-3.
    (d) The buying team may choose to conduct parallel negotiations with 
all acceptable offerors without a determination of finalists. This could 
particularly apply where few offers were received.
    (e) The selection official may elect to make selection in lieu of 
determining finalists, provided it can be clearly demonstrated that (1) 
selection of an initial offer(s) will result in the best value for the 
Government, considering both price and non-price qualitative criteria; 
and (2) discussions with other acceptable offerors are not anticipated 
to change the outcome of the initial evaluation relative to the best 
value offer(s).
    (f) Documentation. If finalists are identified as discussed in 
paragraph (a) of this section, the documentation expected and required 
to result from this phase of evaluation is approximately one-quarter of 
a page for each finalist. The documentation shall succinctly describe 
how the value characteristics in the RFO were provided by the offeror 
and cost/price considerations that caused the offer to qualify as a 
finalist. The evaluator(s) shall not be required to justify why other 
offers provided less qualitative merit. It is expected that, should the 
decision be challenged, the documented reason for selection, when 
compared with the non-selected offer, shall clearly demonstrate the 
difference that resulted in non-selection. It is expected and 
recommended that all informal worksheets used in the evaluation process 
be included in the contract file for use in any debriefings requested. 
When selection of the successful offeror(s) is made, the buying team 
shall document the selection in accordance with 1871.604-4(c).
    (g) The names of offerors determined to be finalists, selected for 
parallel negotiations, or selected for negotiations or final contract 
award will be electronically transmitted to the offerors. This will 
serve as notification to those offerors that were not selected for 
further evaluation (see 1871.505).



Sec. 1871.604-3  Discussions with ``Finalists''.

    (a) The procurement team member shall lead discussions with each 
finalist. The discussions are intended to assist the buying team in 
fully understanding each finalist's offer and to assure that the 
meanings and points of emphasis of the RFO have been adequately conveyed 
to the finalists so that all are competing equally on the basis 
intended. Care must be exercised to ensure these discussions adhere, to 
the extent applicable, to the guidelines set forth in 1815.613-71(b)(5) 
for the applicable contract type. Technical transfusion, technical 
leveling, and auction techniques are prohibited. It is expected that 
these discussions will be conducted on an informal basis with each 
finalist.
    (b) After completion of discussions, each finalist shall be afforded 
an opportunity to revise its offer to support and clarify its offer. A 
reasonable amount of time (normally less than 5 working days) will be 
afforded for the revision. The amount of time given shall be the same 
for each finalist.

[[Page 555]]



Sec. 1871.604-4  Selection of ``Best Value'' Offer.

    (a) The procurement team member shall be the source selection 
official.
    (b) The BVS source selection is based on the premise that, if all 
offers are of approximately equal qualitative merit, award will be made 
to the offer with the lowest evaluated price (fixed-price contracts) or 
the Government-determined most probable cost (cost type contracts). 
However, the Government will consider awarding to an offeror with higher 
qualitative merit if the difference in price is commensurate with added 
value. Conversely, the Government will consider making award to an 
offeror whose offer has lower qualitative merit if the price (or cost) 
differential between it and other offers warrant doing so.
    (c) Documentation. Rationale for selection of the successful offeror 
shall be recorded in a selection statement which succinctly records the 
value characteristics upon which selection was made. The statement need 
not and should not reveal details of the successful offer that are 
proprietary or business sensitive. Since the value characteristics are 
expressed in performance terms, the reasons for selection can focus on 
results to be achieved, rather than the detailed approach the offeror 
will use. The statement shall also comment on the rationale used to 
equate cost and qualitative merit. Little or no comment would be 
required when the selected offeror possessed the highest merit and 
lowest price. When a marginal analysis is made between value 
characteristics and price (or cost)--in most cases this will be a 
subjective, integrated assessment of all pertinent factors--specific 
rationale should be provided to the extent possible. It is expected that 
the statement will not ordinarily exceed one page. Where the procurement 
is closely contested, it would be prudent to expand on the rationale 
provided in the statement.
    (d) The name of the offeror(s) selected for award and the selection 
statement shall be electronically transmitted to the offerors which will 
serve as a notification to those offerors that were not selected (see 
1871.505).



Sec. 1871.605  Negotiation methods and procedures.

    (a) Policy. (1) The buying team may choose to conduct parallel 
negotiations of complete contracts with those offerors determined to be 
finalists or with all acceptable offerors. Parallel negotiation may also 
be used where more than one offeror is selected for negotiations after 
discussions. Use of parallel negotiations takes advantage of the 
competitive atmosphere and the responsiveness of offerors in completing 
negotiations. It also provides the selection official a higher 
confidence in the offer, since only the contracting officer's signature 
is required to make the offer a binding contract.
    (2) When the selection official has chosen to make selection in lieu 
of conducting parallel negotiations, negotiations may be conducted with 
the successful offeror(s) to resolve any open issues necessary to effect 
a binding contract(s). This may be typical of R&D and service contracts 
where the Government desires to negotiate changes in emphasis or 
orientation in an otherwise superior offer(s).
    (b) Procedure. (1) Upon conclusion of parallel negotiations with 
each offeror, the offeror shall be asked to submit a revised offer (in 
full or amended) reflecting the results of the negotiations, and 
including the offeror's signature on the negotiated contract. A 
reasonable amount of time (normally less than 5 working days) will be 
afforded for the revision. The amount of time given shall be the same 
for each offeror. Upon receipt of all offers, the procurement member of 
the buying team shall make selection and document as required in 
1871.604-4(c). Upon selection, the contracting officer shall execute the 
selected contract.
    (2) If negotiation is conducted after selection, the buying team 
shall first select the offer and document as required in 1871.604-4(c), 
then negotiate the terms of the contract. The offeror shall be asked to 
submit a revised offer reflecting the results of negotiation, and 
including the offeror's signature on the negotiated contract. A 
reasonable amount of time (normally less than 5 working days) will be 
afforded for the revision. After receipt of the revised

[[Page 556]]

offer, the contracting officer shall execute the contract.

[59 FR 59378, Nov. 17, 1994, as amended at 60 FR 51370, Oct. 2, 1995]

    Effective Date Note: At 60 FR 51370, Oct. 2, 1995, section 1871.605 
paragraph (a)(1) was amended by revising the first sentence, effective 
Oct. 1, 1995 and will expire on June 30, 1997.



Sec. 1871.606  Debriefings.

    In addition to electronically transmitting the selection statement 
to the offerors, a debriefing, a debriefing will be provided by the 
buying team procurement member to any offeror submitting a written 
request. The debriefing will concentrate on the reasons why the 
successful offeror was selected. If the contract is unclassified, the 
debriefer may reveal any aspect of the contract and how it relates to 
the merits used to select the successful offer. If the successful offer 
had value characteristics which are proprietary or business sensitive, 
and had an impact on the selection, the debriefer should so state and 
summarize the results which are expected to accrue to the Government. 
The debriefer shall not divulge the details of the proprietary or 
business sensitive information.

[[Page 557]]



              CHAPTER 19--UNITED STATES INFORMATION AGENCY




                          (Parts 1900 to 1999)

  --------------------------------------------------------------------

  Editorial Note: For a waiver document affecting chapter 19, see 56 FR 
22661, May 16, 1991.

                          SUBCHAPTER A--GENERAL
Part                                                                Page
1901            United States Information Agency acquisition 
                    regulation system.......................         559
1902            Definitions of words and terms..............         560
1903            Improper business practices and personal 
                    conflicts of interest...................         560
1904            Administrative matters......................         561
                   SUBCHAPTER B--ACQUISITION PLANNING
1909            Contractor qualifications...................         562
1910            Specifications, standards and other purchase 
                    descriptions............................         563
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
1913            Small purchases and other simplified 
                    purchase procedures.....................         565
1915            Contracting by negotiation..................         565
1917            Special contracting methods.................         565
                        SUBCHAPTER D--[RESERVED]
                        SUBCHAPTER E--[RESERVED]
                    SUBCHAPTER G--CONTRACT MANAGEMENT
1942            Contract administration.....................         566
1946            Quality assurance...........................         566
                     SUBCHAPTER H--CLAUSES AND FORMS
1952            Solicitation provisions and contract clauses         567

[[Page 558]]

1953            Forms.......................................         568

[[Page 559]]



                          SUBCHAPTER A--GENERAL





PART 1901--UNITED STATES INFORMATION AGENCY ACQUISITION REGULATION SYSTEM--Table of Contents




Sec.
1901.000  Scope of part.

              Subpart 1901.1--Purpose, Authority, Issuance

1901.101  Purpose.
1901.102  Authority.
1901.103  Applicability.
1901.104  Issuance.
1901.104-1  Publication and code arrangement.
1901.104-2  Arrangement of regulations.

                 Subpart 1901.4--Deviations From the FAR

1901.403  Individual deviations.
1901.404  Class deviations.

       Subpart 1901.6--Contracting Authority and Responsibilities

1901.601  General.
1901.602  Contracting officers.
1901.602-1  Authority.

    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13200, Apr. 3, 1985, unless otherwise noted.



Sec. 1901.000  Scope of part.

    This part describes the method by which the United States 
Information Agency implements and supplements the Federal Acquisition 
Regulation and contains policies and procedures that implement and 
supplement Chapter 1 of the Federal Acquisition Regulation (48 CFR).



              Subpart 1901.1--Purpose, Authority, Issuance



Sec. 1901.101  Purpose.

    This subpart establishes the United States Information Agency 
Acquisition Regulation (IAAR) as Chapter 19 of the Federal Acquisition 
Regulations System (48 CFR chapter 19) and states the relationship of 
the IAAR to the Federal Acquisition Regulation (FAR), 48 CFR chapter 1.



Sec. 1901.102  Authority.

    The USIA Acquisition Regulation is prescribed by the Director of the 
United States Information Agency pursuant to the authority of the 
Reorganization Plan No. 2 of 1977 and the Federal Property and 
Administrative Services Act of 1949, as amended, and other applicable 
law.



Sec. 1901.103  Applicability.

    Except where a deviation is specifically authorized in accordance 
with subpart 1901.4 or otherwise authorized by law, the FAR and the IAAR 
govern all USIA acquisitions within the United States.
1901.104  Issuance.



Sec. 1901.104-1  Publication and code arrangement.

    (a) The IAAR is published in the Federal Register and, in cumulative 
form in the Code of Federal Regulations (CFR).
    (b) The IAAR is issued as chapter 19 of title 48, CFR.



Sec. 1901.104-2  Arrangement of regulations.

    The IAAR uses the same numbering system and arrangement used in the 
FAR. Where the IAAR implements the FAR, it is numbered and captioned to 
correspond to the FAR. Where there is no corresponding material in the 
FAR, numbers beginning with 70 or higher are assigned to the IAAR 
supplementing part. Where the subject matter is the FAR requires no 
implementation, the IAAR contains no corresponding part.



                 Subpart 1901.4--Deviations From the FAR



Sec. 1901.403  Individual deviations.

    Deviations from the IAAR or the FAR in individual cases shall be 
authorized by the Agency Procurement Executive or a designee unless FAR 
1.405(e) is applicable. The request shall cite the specific part of the 
IAAR or

[[Page 560]]

FAR from which it is desired to deviate; shall set forth the nature of 
the deviation(s); and shall give the reason for the action requested.



Sec. 1901.404  Class deviations.

    Class deviations affecting more than one contracting action shall be 
authorized only by the Agency Procurement Executive, unless FAR 1.405(e) 
is applicable, and shall be subject to the limitations set forth in FAR 
1.404. Requests shall include the same information as cited in 1901.403.



       Subpart 1901.6--Contracting Authority and Responsibilities



Sec. 1901.601  General.

    The Director, Office of Contracts, is designated the Agency 
Procurement Executive. The Agency Procurement Executive is delegated the 
full delegable authority of the Director of this Agency with respect to 
the acquisition of goods and services by contract and such other methods 
as may be prescribed in the FAR. The Agency Procurement Executive is 
delegated overall responsibility by the Director for the Agency's 
contracting activities.
1901.602  Contracting officers.



Sec. 1901.602-1  Authority.

    USIA Contracting Officers designated by name on Certificates of 
Appointment by the Agency Procurement Executive are authorized to enter 
into, administer, and terminate contracts and make related 
determinations and findings, subject to all requirements and limitations 
set forth in the Certificate of Appointment. A list of USIA employees 
who have been appointed as Contracting Officers and the limits of their 
authority is available from the Policy and Procedures Staff, Office of 
Contracts.



PART 1902--DEFINITIONS OF WORDS AND TERMS--Table of Contents




    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13202, Apr. 3, 1985, unless otherwise noted.



                       Subpart 1902.1--Definitions



Sec. 1902.101  Definitions.

    As used throughout this regulation, the following words and terms 
are used as defined in this subpart unless (a) the context in which they 
are used clearly requires a different meaning or (b) a different 
definition is prescribed for a particular part or portion of a part.
    Agency means the United States Information Agency, acting through 
any of its duty authorized officials.
    Agency Procurement Executive means the Director, Office of 
Contracts.
    AR/CO means Authorized Representative of the Contracting Officer 
(see 1942.202-70).
    Contracting activity means the Office of Contracts, which has the 
responsibility to contract for the acquisition of supplies and services 
(including construction).
    Head of the agency (also called Agency head) means the Agency 
Director or Deputy Director; and the term authorized representative 
means any person, persons or board (other than the contracting officer) 
authorized to act for the Head of the Agency.
    Purchasing Activity means an office with one or more Level I or 
Level II Small Purchases Contracting Officer(s) exercising limited 
redelegations of contracting officer authority.
    USIA means the United States Information Agency.



PART 1903--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents




  Subpart 1903.6--Contracts With Government Employees or Organizations 
                       Owned or Controlled by Them

Sec.
1903.602  Exceptions.
1903.670  Contracts between USIA and former employees.

    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13202, Apr. 3, 1985, unless otherwise noted.

[[Page 561]]



  Subpart 1903.6--Contracts With Government Employees or Organizations 
                       Owned or Controlled by Them



Sec. 1903.602  Exceptions.

    To avoid potential conflicts of interest or the appearance of 
preferential treatment, it is USIA policy not to award contracts, 
purchase orders, grants or cooperative agreements to Government 
employees or their family members or business concerns owned or 
controlled by Government employees or their family members. Exceptions 
to this policy must be approved by the Agency Director or Agency 
Procurement Executive and supported by written Findings and 
Determination. A contract with an employee for services may result in 
violation of the dual salary compensation statutes (5 U.S.C. 5533). 
Nothing in this paragraph is intended to render inapplicable the 
conflict of interest prohibition set out in 18 U.S.C. 208.



Sec. 1903.670  Contracts between USIA and former employees.

    To avoid conflicts of interest or the appearance of preferential 
treatment, purchase orders, contracts, grants or cooperative agreements 
with former employees of USIA, or with firms in which former employees 
or their family members are known to have controlling interest, may be 
entered into within two years following separation from employment only 
with the written approval of the Agency Director. A written 
justification shall be made a part of the file. The justification must 
address the issue of conflict of interest and conclude that it does not 
exist; or that in spite of its existence, the Agency's ability to meet 
its mission would be seriously harmed without the award.



PART 1904--ADMINISTRATIVE MATTERS--Table of Contents




    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13203, Apr. 3, 1985, unless otherwise noted.



                  Subpart 1904.70--Procurement Requests



Sec. 1904.7001  General.

    (a) Procurement requests will be prepared and submitted to the 
contracting office in accordance with Agency procedures.
    (b) Except in unusual circumstances, the contracting office will not 
issue solicitations until an approved procurement request, containing a 
certification that funds are available, has been received. However, the 
contracting office may take all necessary actions up to the point of 
contract award prior to the receipt of the approved procurement request 
certifying that funds are available when:
    (1) Such action is necessary to meet critical program schedules;
    (2) It has been established that program authority has been issued 
and that funds to cover the acquisition will be available prior to the 
date set for contract award or contract modification;
    (3) A person at a level above the contracting officer authorizes 
such action prior to the issuance of the solicitation, and the contract 
file is properly documented; and
    (4) The solicitation document clearly indicates that the award is 
subject to the availability of funds.
    (c) The procurement request shall be assigned within the contracting 
office to an individual who, if not the contracting officer, will be 
responsible to the contracting officer for conducting the business 
aspects of the transaction. This individual shall review the request to 
ensure that it complies with the FAR and this Regulation and that the 
information contained in the request is in sufficient detail to prepare 
presolicitation and solicitation documents. The contracting officer, or 
other designated individual in the contracting office, shall discuss 
uncertain requirements or inconsistencies in the procurement request 
with the initiator of the request and obtain clarification prior to 
taking any further action.

[[Page 562]]



                   SUBCHAPTER B--ACQUISITION PLANNING





PART 1909--CONTRACTOR QUALIFICATIONS--Table of Contents




        Subpart 1909.4--Debarment, Suspension, and Ineligibility

Sec.
1909.403  Definitions.
1909.404  Consolidated list of debarred, suspended, and ineligible 
          contractors.
1909.406  Debarment, suspension, and ineligibility.
1909.406-3  Procedures.

    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13203, Apr. 3, 1985, unless otherwise noted.



        Subpart 1909.4--Debarment, Suspension, and Ineligibility



Sec. 1909.403  Definitions.

    The Agency Procurement Executive, is designated the ``debarring 
official'' and the ``suspending official'' as defined in FAR 9.403 and 
is designated as the agency official authorized to make the decisions 
required in FAR 9.405(a), 9.405-1(b), 9.405-2, 9.406-1(c), and 9.407-
1(d).



Sec. 1909.404  Consolidated list of debarred, suspended, and ineligible contractors.

    (a) The Policy and Procedures Staff, Office of Contracts, shall be 
responsible for the maintenance and distribution of the GSA Consolidated 
List of Debarred, Suspended, and Ineligible Contractors. It will be 
coordinated with the Solicitation Mailing List and appropriate notations 
will be made on both lists, when additions or deletions are necessary. 
Contracting Officers shall notify the Policy and Procedures Staff, 
Office of Contracts, of their distribution needs and shall ensure the 
list is used effectively.
    (b) The Agency Procurement Executive (or designee) is responsible 
for notifying GSA of the information required by FAR 9.404(b).
1909.406  Debarment, suspension, and ineligibility.



Sec. 1909.406-3  Procedures.

    (a) Investigation and referral. Any officer of the Agency who 
becomes aware of circumstances which may serve as a basis for a 
debarment, suspension, or ineligibility shall report the circumstances 
by memorandum to the Agency Procurement Executive for consideration of 
debarment, suspension or ineligibility action.
    (b) Decision-making process. (1) Contractors shall be given the 
opportunity to submit, in person, in writing, or through a 
representative, information and arguments in opposition to a proposed 
debarment or suspension. All rebuttals shall be addressed to the Agency 
Procurement Executive. However, if a response to the proposed debarment 
or suspension is not received by the Agency Procurement Executive within 
30 calendar days of receipt of the notice, the debarment or suspension 
shall become final.
    (2) If a contractor, or a representative, desires to present 
information and arguments in person to the Agency Procurement Executive, 
an oral presentation will be held within 20 calendar days of receipt of 
the request, unless a longer period of time is requested by the 
contractor. Hearings will be held before a three-person fact-finding 
board composed of one member each from the Office of General Counsel and 
Congressional Liaison, the Bureau of Management, and the Office of 
Contracts, other than the initiating officer. The fact-finding board 
shall deliver written findings to the Agency Procurement Executive 
(together with a transcription of the proceedings, if made) within 10 
calendar days after the hearing. The findings shall resolve any facts in 
dispute based on a preponderance of the evidence presented and determine 
whether a cause for debarment or suspension exists.

[[Page 563]]

    (c) Debarring/suspending official's decision. The debarring/
suspending official's final decision shall be made in writing in 
accordance with FAR 9.406-3 and notice of the decision will be given in 
accordance with FAR 9.406-3. A copy of the notice shall be given to the 
affected agency component.



PART 1910--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE DESCRIPTIONS--Table of Contents




Sec.
1910.004-70  Brand name products or equal.
1910.004-71  Limits on the use of brand name or equal purchase 
          descriptions.
1910.004-72  Solicitations, brand name or equal descriptions.
1910.004-73  Offer evaluation and award, brand name or equal 
          descriptions.
1910.004-74  Procedure for negotiated, procurements and small purchases.
1910.011  Solicitation provisions and contract clauses.

    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13204, Apr. 3, 1985, unless otherwise noted.



Sec. 1910.004-70  Brand name products or equal.

    (a) General. Consistent with the policy stated in FAR 10.004(a)(2), 
USIA acquisitions will generally not be based on a specifically 
identified product or feature(s) thereof. However, under unusual 
circumstances such an approach may be used as described below.
    (b) Citing brand name products. Brand name or equal purchase 
descriptions shall cite all brand name products known to be acceptable 
and of current manufacture. If the use of a brand name or equal purchase 
description results in the purchase of an acceptable brand name product 
which was not listed as an ``equal'' product, a reference to that brand 
name product should be included in the purchase description for later 
acquisitions. If a brand name product is no longer applicable, the 
reference thereto shall be deleted from subsequent purchase description.
    (c) Specifying essential characteristics. (1) It is imperative that 
brand name or equal purchase descriptions specify each physical or 
functional characteristic of the product that is essential to the 
intended use. Failure to do so may result in a defective solicitation 
and the necessity to resolicit the requirements. (See 1910.004-73.) Care 
must be taken to avoid specifying characteristics that cannot be shown 
to materially affect the intended end use and which unnecessarily 
restrict competition.
    (2) When describing essential characteristics, permissible 
tolerances should be indicated. Avoid specifying a characteristic (e.g., 
a specific dimension) of a brand name product unless it is essential to 
the Government's need. The contracting officer must be able to justify 
the requirement.



Sec. 1910.004-71  Limits on the use of brand name or equal purchase descriptions.

    (a) General. The use of brand name or equal purchase descriptions in 
solicitations is intended to promote competition by encouraging the 
offering of products that are equal in all material respects to brand 
name products cited in such descriptions. Identification by brand name 
does not indicate a preference for the products mentioned but indicates 
the quality and characteristics of products that will meet the 
Government's needs. Where a component of an item is described in the 
solicitation by a brand name or equal purchase description and the 
contracting officer determines that application of the provision of 
1952.210-70 would be impracticable, the requirement to include the entry 
described in 1910.004-72(a) shall not apply. If the provision is 
included in the solicitation for other reasons, there also shall be 
included in the solicitation a statement to identify either the 
component parts (described by brand name or equal descriptions) to which 
the provision applies or those to which it does not apply. This also 
applies to accessories related to an end item where a brand name or 
equal purchase description of the accessories is a part of the 
description of an end item. Brand name or equal descriptions shall not 
be used to acquire a particular product under the guise of competitive 
acquisition to the exclusion of other products that would meet the 
actual needs.
    (b) In small purchases within the open market limitations, brand 
name

[[Page 564]]

policies and procedures shall be applicable to the extent practicable.
    (c) Approval required. A brand name or equal purchase description 
shall not be used unless it has been approved at one level above the 
contracting officer.



Sec. 1910.004-72  Solicitations, brand name or equal descriptions.

    (a) An entry substantially as follows shall be prominently inserted 
in the item listing after each item or component part of an end item to 
which a brand name or equal purchase description applies.

    Bidding on:

Manufacturer's Name:____________________________________________________
Brand:__________________________________________________________________
No.:____________________________________________________________________

    (b) Because bidders frequently overlook the requirements of the 
clause at 1952.210-70 ``Brand Name or Equal,'' the following note shall 
be inserted in the item listing after each brand name or equal item (or 
component part), or at the bottom of each page, listing several such 
items, or in a manner that may otherwise direct the offeror's attention 
to this clause.

    Offerors offering other than brand name items identified herein 
should furnish with their offers adequate information to ensure that a 
determination can be made as to equality of the product(s) offered (see 
the provision ``Brand Name or Equal'' set forth in 1952.210-70 of the 
solicitation).

    (c) If offeror samples are requested for brand name or equal 
acquisitions, the above notice shall not be included in the 
solicitation.



Sec. 1910.004-73  Offer evaluation and award, brand name or equal descriptions.

    An offer may not be rejected for failure of the offered product to 
equal a characteristic of a brand name product if it was not specified 
in the brand name or equal description. However, if it is clearly 
established that the unspecified characteristic is essential to the 
intended end use, the solicitation is defective and no award may be 
made. In such cases, the contracting officer should resolicit the 
requirements, using a purchase description that sets forth the essential 
characteristics.



Sec. 1910.004-74  Procedure for negotiated procurements and small purchases.

    (a) The policies and procedures prescribed for sealed bid 
procurements shall be generally applicable to negotiated procurements.
    (b) The clause set forth at 1952.210-70 may be adapted for use in 
negotiated procurements. If use of the clause is not practicable (as may 
be the case in unusual and compelling urgency purchases), suppliers 
shall be suitably informed that proposals offering products different 
from the products referenced by brand name will be considered if the 
contracting officer determines that the offered products meet fully the 
salient characteristics requirements of the solicitation.
    (c) In small purchases within open-market limitations, such policies 
and procedures shall be applicable to the extent practicable.



Sec. 1910.011  Solicitation provisions and contract clauses.

    The Contracting Officer shall include the provision at 1952.210-70, 
Brand Name or Equal, in solicitations for which brand name or equal 
purchase is used.

[[Page 565]]



          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES





PART 1913--SMALL PURCHASES AND OTHER SIMPLIFIED PURCHASE PROCEDURES--Table of Contents




Sec.

                     Subpart 1913.5--Purchase Orders

1913.505  Purchase order and related forms.
1913.505-2  Agency order forms in lieu of Optional and Standard Forms.

    Authority: 40 U.S.C. 486(c).



                     Subpart 1913.5--Purchase Orders

1913.505  Purchase order and related forms.



Sec. 1913.505-2  Agency order forms in lieu of Optional and Standard Forms.

    (a) Optional Forms 347 and 348 shall be used as prescribed in FAR 
13.505 unless an equivalent form has been authorized for use by the 
Agency Procurement Executive (or Designee). Exceptions may be granted, 
on a case-by-case basis, in order to accommodate computer-generated 
purchase order forms. Exception approval for over printing (FAR 53.104) 
is not needed.
    (b) USIA Form IA-44 (see 1953.370-44) is authorized for use when 
obtaining nonpersonal services on an intermittent basis for such 
services as script writers, translators, narrators, etc.
[50 FR 13205, Apr. 3, 1985]



PART 1915--CONTRACTING BY NEGOTIATION--Table of Contents




          Subpart 1915.1--General Requirements for Negotiation

Sec.
1915.106  Contract clauses.
1915.106-70  Key personnel and facilities.

    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13205, Apr. 3, 1985, unless otherwise noted.



          Subpart 1915.1--General Requirements for Negotiation

1915.106  Contract clauses.



Sec. 1915.106-70  Key personnel and facilities.

    Whenever contractor selection has been substantially predicated on 
the contractor's possession of special capabilities (i.e., personnel 
and/or facilities) the contracting officer shall include the clause at 
1952.215-70 in the awarded contract.



PART 1917--SPECIAL CONTRACTING METHODS--Table of Contents




    Authority: 40 U.S.C. 486(c).


    Source: 50 FR 13205, Apr. 3, 1985, unless otherwise noted.



                  Subpart 1917.1--Multiyear Contracting



Sec. 1917.102  Policy.

    When consistent with 22 U.S.C. 1472(b), the Head of the Agency may 
approve multiyear contracts up to five years.

[[Page 566]]



                     SUBCHAPTERS D AND E--[RESERVED]





                    SUBCHAPTER G--CONTRACT MANAGEMENT





PART 1942--CONTRACT ADMINISTRATION--Table of Contents




    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13212, Apr. 3, 1985, unless otherwise noted.



          Subpart 1942.2--Assignment of Contract Administration



Sec. 1942.202-70  Authorized Representative of the Contracting Officer (AR/CO).

    The Contracting Officer may designate an appropriately qualified 
Government employee to act as the Authorized Representative of the 
Contracting Officer (AR/CO). Such designation shall apply to a single 
contract, must be in writing, and shall define the scope and limitations 
of the AR/CO's authority. The instrument designating an AR/CO shall not 
contain authority to sign or agree to any contract or major modification 
to a contract. Contractual commitments shall be made only by a duly 
certified contracting officer. The Contracting Officer shall insert the 
clause at 1952.242-70, Authorized Representative of the Contracting 
Officer, in solicitations and contracts when an individual is to be 
selected and designated by the Contracting Officer to perform 
administration of a given contract(s).



PART 1946--QUALITY ASSURANCE--Table of Contents




    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13212, Apr. 3, 1985, unless otherwise noted.



                       Subpart 1946.7--Warranties



Sec. 1946.704  Authority for use of warranties.

    (a) The procurement request initiator is responsible for preparing a 
written recommendation for those purchases deemed to be appropriate for 
application of warranty provisions. The recommendation shall state why a 
warranty is appropriate by specifically addressing the criteria set 
forth in FAR 46.703. The recommendation shall also identify the specific 
parts, subassemblies, assemblies, systems, or contract line items to 
which a warranty should apply.
    (b) Prior to solicitation of the requirement, the contracting 
officer shall make a written determination when a warranty provision is 
to be included.

[[Page 567]]



                     SUBCHAPTER H--CLAUSES AND FORMS





PART 1952--SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents




Sec.
1952.000  Scope of part.

      Subpart 1952.1--Instructions for Using Provisions and Clauses

1952.102-2  Incorporation in full text.
1952.104  Procedures for modifying and completing provisions and 
          clauses.

             Subpart 1952.2--Texts of Provisions and Clauses

1952.215-70  Key personnel and facilities.
1952.227-76  Government rights (unlimited).
1952.227-77  Rights in shop drawings.
1952.227-78  Disposition of prints and videotape recordings.

    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13212, Apr. 3, 1985, unless otherwise noted.



Sec. 1952.000  Scope of part.

    This part implements and supplements FAR part 52 which sets forth 
solicitation provisions and contract clauses for use in the acquisition 
of personal property and nonpersonal services (including construction).



      Subpart 1952.1--Instructions for Using Provisions and Clauses



Sec. 1952.102-2  Incorporation in full text.

    All IAAR provisions and clauses shall be incorporated in 
solicitations and/or contracts in full text.



Sec. 1952.104  Procedures for modifying and completing provisions and clauses.

    IAAR provisions and clauses shall not be modified (see FAR 
1952.101(a) unless authorized by the Director, Office of Contracts, and 
when so authorized, contracting officers must comply with the procedures 
in FAR 1952.104.



             Subpart 1952.2--Texts of Provisions and Clauses



Sec. 1952.215-70  Key personnel and facilities.

    As prescribed in 1915.106-70 insert the following clause in 
appropriate contracts:

                 Key Personnel and Facilities (Feb 1985)

    The personnel and/or facilities listed below (or as specified in the 
Schedule of this contract) are considered essential to the work being 
performed hereunder. Prior to removing, replacing, or diverting any of 
the specified individuals or facilities, the Contractor shall notify the 
Contracting Officer reasonably in advance and shall submit justification 
(including proposed substitutions) in sufficient detail to permit 
evaluation of the impact on this contract. No diversion shall be made by 
the Contractor without the written consent of the Contracting Officer; 
provided, that the Contracting Officer may ratify in writing the change 
and such ratification shall constitute the consent of the Contracting 
Officer required by this clause. The personnel and/or facilities listed 
below (or as specified in the Schedule of this contract) may, with the 
consent of the contracting parties, be amended from time to time during 
the course of the contract to either add or delete personnel and/or 
facilities, as appropriate.

                             (End of clause)



Sec. 1952.227-76  Government rights (unlimited).

    As prescribed in 1927.405(g), insert the following clause:

                Government Rights (Unlimited) (Feb 1985)

    The Government shall have unlimited rights, in all drawings, 
designs, specifications, notes and other works developed in the 
performance of this contract, including the right to use same on any 
other Government design or construction without additional compensation 
to the Contractor. The Contractor hereby grants to the government a 
paid-up license throughout the world to all such works to which he may 
assert or establish any claim under design patent or copyrights laws. 
The Contractor for a period of three years after completion of the 
project agrees to furnish the original or copies of all such works on 
the request of the Contracting Officer.

[[Page 568]]

                             (End of clause)



Sec. 1952.227-77  Rights in shop drawings.

    As prescribed in 1927.405(h), insert the following clause:

                   Rights in Shop Drawings (Feb 1985)

    (a) Shop drawings for construction means drawings, submitted to the 
Government by the Construction Contractor, subcontractor or any lower 
tier subcontractor pursuant to a construction contract, showing in 
detail (i) the proposed fabrication and assembly of structural elements 
and (ii) the installation (i.e., form, fit, and attachment details) of 
materials or equipment. The Government may duplicate, use, and disclose 
in any manner and for any purpose shop drawings delivered under this 
contract.
    (b) This clause, including this paragraph (b), shall be included in 
all subcontracts hereunder at any tier.

                             (End of clause)



Sec. 1952.227-78  Disposition of prints and videotape recordings.

    As prescribed in 1927.405(j) insert the following clause in License 
Agreements:

        Disposition of Prints and Videotape Recordings (Feb 1985)

    If the Agency elects to discontinue distribution and exhibition 
hereunder, or upon expiration of the term of this License Agreement, the 
Agency will destroy all prints and erase all videotape recordings of the 
Film. A certificate(s) attesting to such destruction and/or erasure will 
be furnished the Licensor upon its written request.

                             (End of clause)



PART 1953--FORMS--Table of Contents




    Editorial Note: IAAR forms referenced in this subpart do not appear 
in the Code of Federal Regulations. The list of forms following 1953.370 
is set forth for the convenience of the user. Forms may be obtained by 
writing: Office of Contracts, United States Information Agency, 
Washington, DC 20547.

                 Subpart 1953.3--Illustrations of Forms

Sec.
1953.300  Scope of subpart.
1953.370  USIA forms.

List of IAAR Forms

    Authority: 40 U.S.C. 486(c).

    Source: 50 FR 13224, Apr. 3, 1985, unless otherwise noted.



                 Subpart 1953.3--Illustrations of Forms



Sec. 1953.300  Scope of subpart.

    This subpart contains illustrations of some forms referenced in this 
IAAR.



Sec. 1953.370  USIA forms.

    This section contains illustrations of USIA forms references in this 
IAAR.

                           List of IAAR Forms

1953.370-21  USIA Form IA-21, Abstract of Quotations.
1953.370-44  USIA Form IA-44, Requisition-Purchase--Order-Invoice for 
          Professional Services.

[[Page 569]]



                CHAPTER 20--NUCLEAR REGULATORY COMMISSION




                          (Parts 2000 to 2099)

  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
2001            Nuclear Regulatory Commission Acquisition 
                    Regulation System.......................         571
2002            Definitions.................................         574
2003            Improper business practices and personal 
                    conflicts of interest...................         575
2004            Administrative matters......................         575
           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
2005            Publicizing contract actions................         576
2009            Contractor qualifications...................         576
2010            Specifications, standards, and other 
                    purchases descriptions..................         584
2012            Contract delivery or performance............         585
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
2013            Small purchase and other simplified purchase 
                    procedures..............................         586
2014            Sealed bidding..............................         586
2015            Contracting by negotiation..................         586
2016            Types of contracts..........................         590
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
2017            Special contracting methods.................         592
2019            Small business and small disadvantaged 
                    business concerns.......................         592
2020            Labor surplus area concerns.................         592
2022            Application of labor laws to government 
                    acquisitions............................         593
2024            Protection of privacy and freedom of 
                    information.............................         593

[[Page 570]]

2025            Foreign acquisition.........................         593
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
2027            Patents, data, and copyrights...............         594
2030            Cost accounting standards...................         594
2031            Contract cost principles and procedures.....         594
2032            Contract financing..........................         595
2033            Protests, disputes, and appeals.............         595
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
2035            Research and development contracting........         596
2039            Acquisition of information resources........         596
                    SUBCHAPTER G--CONTRACT MANAGEMENT
2042            Contract administration.....................         597
2045            Government property.........................         597
                     SUBCHAPTER H--CLAUSES AND FORMS
2052            Solicitation provisions and contract clauses         599

[[Page 571]]



                          SUBCHAPTER A--GENERAL





PART 2001--NUCLEAR REGULATORY COMMISSION ACQUISITION REGULATION SYSTEM--Table of Contents




              Subpart 2001.1--Purpose, Authority, Issuance

Sec.
2001.101  Purpose.
2001.102  Authority.
2001.103  Applicability.
2001.104  Issuance.
2001.104-1  Publication and code arrangement.
2001.104-2  Arrangement of the regulations.
2001.104-3  Copies.
2001.105  Information collection requirements: OMB approval.

             Subpart 2001.3--Agency Acquisition Regulations

2001.301  Policy.
2001.303  Public participation.

          Subpart 2001.4--Deviations from the FAR and the NRCAR

2001.402  Policy.
2001.403  Individual deviations.
2001.404  Class deviations.

       Subpart 2001.6--Contracting Authority and Responsibilities

2001.600-70  Scope of subpart.
2001.601  General.
2001.602-3  Ratification of unauthorized commitments.
2001.603  Selection, appointment, and termination of appointment.

    Authority: Sec. 161, 68 Stat. 948, as amended (42 U.S.C. 2201); Sec. 
201, 88 Stat. 1242, as amended (42 U.S.C. 5841; 41 U.S.C. 418(b)).

    Source: 57 FR 61157, Dec. 23, 1992, unless otherwise noted.



              Subpart 2001.1--Purpose, Authority, Issuance



Sec. 2001.101  Purpose.

    This subpart establishes chapter 20, the Nuclear Regulatory 
Commission Acquisition Regulation (NRCAR), and provides for the 
codification and publication of uniform policies and procedures for 
acquisitions by the NRC. The NRCAR is not, by itself, a complete 
document. It must be used in conjunction with the Federal Acquisition 
Regulation (FAR) (48 CFR Chapter 1).



Sec. 2001.102  Authority.

    The NRCAR and the amendments to it are issued by the Director, 
Office of Administration, under a delegation from the Executive Director 
for Operations in accordance with the authority of the Atomic Energy Act 
of 1954, as amended (42. U.S.C. 161), the Energy Reorganization Act of 
1974 (42 U.S.C. 5841, 5872), the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 486(c)), as amended, FAR Subpart 1.3, 
and other applicable law.



Sec. 2001.103  Applicability.

    The FAR and NRCAR apply to all NRC acquisitions of supplies and 
services which obligate appropriated funds, except as exempted by 
Sections 31 and 161 of the Atomic Energy Act of 1954 as amended, and 
Section 205 of the Energy Reorganization Act of 1974 as amended. For 
procurements made from nonappropriated funds, the Director, Division of 
Contracts and Property Management, shall determine the rules and 
procedures that apply.
2001.104  Issuance.



Sec. 2001.104-1  Publication and code arrangement.

    (a) The NRCAR and its subsequent changes are:
    (1) Published in the daily issue of the Federal Register; and
    (2) Codified in the Code of Federal Regulations (CFR).
    (b) The NRCAR is issued as 48 CFR Chapter 20.



Sec. 2001.104-2  Arrangement of the regulations.

    (a) General. Chapter 20 is divided into parts, subparts, sections, 
subsections, paragraphs, and further subdivisions as necessary.
    (b) Numbering. The numbering system and part, subpart and section 
titles used in this chapter 20 conform with those used in the FAR as 
follows:
    (1) Where chapter 20 implements the FAR or supplements a parallel 
part,

[[Page 572]]

subpart, section, or paragraph of the FAR, that implementation or 
supplementation is numbered and captioned to the FAR part, subpart, 
section, or subsection being implemented or supplemented, except that 
the implementation or supplementation is preceded with a 20 or 200 so 
that there will always be four numbers to the left of the decimal. For 
example, NRC's implementation of FAR 1.104-1 is shown as 2001.104-1 and 
the NRC's implementation of FAR 24.1 is shown as 2024.1.
    (2) When NRC supplements material contained in the FAR, it is given 
a unique number containing the numerals ``70'' or higher. The rest of 
the number parallels the FAR part, subpart, section, subsection, or 
paragraph it is supplementing. For example, Section 170A of the Atomic 
Energy Act of 1954, as amended, requires a more comprehensive 
organizational conflict of interest review for NRC than is contemplated 
by FAR 9.5. This supplementary material is identified as 2009.570.
    (3) Where material in the FAR requires no implementation or 
supplementation, there is no corresponding numbering in the NRCAR. 
Therefore, there may be gaps in the NRCAR sequence of numbers where the 
FAR requires no further implementation.
    (c) Citation. The NRCAR will be cited in accordance with Federal 
Register Standards approved for the FAR. Thus, this section when 
referred to in the NRCAR is cited as 2001.104-2(c). When this section is 
referred to formally in official documents, such as legal briefs, it 
should be cited as ``48 CFR 2001.104-2(c).'' Any section of the NRCAR 
may be formally identified by the section number, e.g., ``NRCAR 
2001.104-2.'' In the NRCAR, any reference to the FAR will be indicated 
by ``FAR'' followed by the section number, for example FAR 1-104.



Sec. 2001.104-3  Copies.

    Copies of the NRCAR in Federal Register and CFR form may be 
purchased from the Superintendent of Documents, Government Printing 
Office, Washington, DC 20402.



Sec. 2001.105  Information collection requirements: OMB approval.

    (a) The Nuclear Regulatory Commission has submitted the information 
collection requirements contained in this part to the Office of 
Management and Budget (OMB) for approval as required by the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3501 et seq.).
    (b) The information collection requirements contained in this part 
appear in 2009.570-3(b)(1)&(2), 2009.570-3(c), 2009.570-3(c)(4)(ii), 
2009.570-5(b), 2009.570-8, 2014.201-670, 2015.607, 2019.705-4(a), 
2027.305-3(a), 2042.803(a)(b), 2052.204-70(b)(j)&(k), 2052.204-71, 
2052.204-72, 2052.209-71, 2052.209-72, 2052.209-73(d)(2)&(3)&(f), 
2052.210-70(b), 2052.210-71, 2052.212-70, 2052.212-71, 2052.212-72, 
2052.213-73, 2052.214-71, 2052.214-72(e), 2052.214-74, 2052.214-75, 
2052.215-70, 2052.215-71(f), 2052.215-76, 2052.215-77, 2052.216-74, 
2052.235-70, 2052.235-71, and 2052.235-72.



             Subpart 2001.3  Agency Acquisition Regulations



Sec. 2001.301  Policy.

    Policy, procedures, and guidance of an internal nature will be 
promulgated through internal NRC issuances such as Management 
Directives, or Division of Contracts and Property Management 
Instructions.



Sec. 2001.303  Public participation.

    FAR 1.301 and Section 22 of the Office of Federal Procurement Policy 
Act, as amended (41 U.S.C. 418b) require rulemaking for substantive 
acquisition rules, but allow discretion in the matter for other than 
significant issues meeting the stated criteria. Accordingly, the NRCAR 
has been promulgated and may be revised from time to time in accordance 
with FAR 1.301. This procedure for significant subject matter generally 
involves issuing a notice of proposed rulemaking, inviting public 
comment, review and analysis of comments received, and publication of a 
final rule. The final rule includes a discussion of the public comments 
received and describes any changes made as a result of the comments.

[[Page 573]]



          Subpart 2001.4--Deviations From the FAR and the NRCAR



Sec. 2001.402  Policy.

    (a) Requests for authority to deviate from the provisions of the FAR 
or the NRCAR must be signed by the requesting office and submitting to 
the Director, Division of Contracts and Property Management, in writing 
as far in advance as possible. Each request for deviation must contain 
the following:
    (1) A statement of the deviation desired, including identification 
of the specific paragraph number(s) of the FAR or NRCAR from which a 
deviation is requested;
    (2) The reason why the deviation is considered necessary or would be 
in the best interest of the Government;
    (3) If applicable, the name of the contractor and identification of 
the contract affected;
    (4) A statement as to whether the deviation has been requested 
previously and, if so, circumstances of the previous request (including 
the result of that request);
    (5) A description of the intended effect of the deviation;
    (6) A statement of the period of time for which the deviation is 
needed; and
    (7) Any pertinent background information which will contribute to a 
full understanding of the desired deviation.



Sec. 2001.403  Individual deviations.

    In individual cases, deviations from either the FAR or the NRCAR 
will be authorized only when essential to effect a necessary acquisition 
or where special circumstances make the deviations clearly in the best 
interest of the Government. Individual deviations must be authorized in 
advance by the Director, Division of Contracts and Property Management.



Sec. 2001.404  Class deviations.

    Where deviations from the FAR or NRCAR are considered necessary for 
classes of contracts, requests for authority to deviate must be 
submitted in writing to the Director, Division of Contracts and Property 
Management, who will consider the submission jointly with the 
Chairperson of the Civilian Agency Acquisition Council, as appropriate.



       Subpart 2001.6--Contracting Authority and Responsibilities



Sec. 2001.600-70  Scope of subpart.

    This subpart deals with the placement of contracting authority and 
responsibility within the agency, the selection and designation of 
contracting officers, and the authority of contracting officers.



Sec. 2001.601  General.

    (a) Contracting authority vests in the Chairman. The Chairman has 
delegated this authority to the Executive Director for Operations (EDO). 
The EDO has delegated this authority to the Director, Office of 
Administration (ADM). The Director, ADM, has delegated the authority to 
the Director, Division of Contracts and Property Management, who, in 
turn, makes contracting officer appointments within the Headquarters and 
Regional Offices. All of the above delegations are formal written 
delegations containing dollar limitations and conditions.
    (b) The Director, Division of Contracts and Property Management, 
establishes contracting policy throughout the agency; monitors the 
overall effectiveness and efficiency of the agency's contracting office; 
establishes controls to assure compliance with laws, regulations, and 
procedures; and delegates contracting officer authority.



Sec. 2001.602-3  Ratification of unauthorized commitments.

    (a) The Government is not bound by agreements or contractual 
commitments made to prospective contractors by persons to whom 
contracting authority has not been delegated. Any unauthorized 
commitment may be in violation of the Federal Property and 
Administrative Services Act, other Federal laws, the FAR, the NRCAR, and 
good acquisition practice. Certain requirements of law and regulation 
necessary for the proper establishment of a contractual obligation may 
not be met under an unauthorized commitment; for example, the 
certification of the availability of funds, justification for other than 
full and open competition, competition of sources, determination of 
contractor responsibility,

[[Page 574]]

certification of current pricing data, price/cost analysis, 
administrative approvals, and negotiation of appropriate contract 
clauses.
    (b) The execution of otherwise proper contracts made by individuals 
without contracting authority, or by contracting officers in excess of 
the limits of their delegated authority, may later be ratified. To be 
effective, the ratification must be in the form of a written procurement 
document clearly stating that ratification of a previously unauthorized 
commitment is intended. All ratifications must be approved by the 
Competition Advocate except that ratifications of procurement actions 
valued at $2,500 or less may be approved by the appropriate Regional 
Administrator or at a level above the appropriate Headquarters 
Contracting Officer. For any such action approved by the Regional 
Administrator, all other terms of Subpart 2001.6 are applicable, and a 
copy of all documentation must be submitted within two working days to 
the Competition Advocate.
    (c) Requests received by contracting officers for ratification of 
commitments made by personnel lacking contracting authority must be 
processed as follows:
    (1) The Designating Official, responsible for the office request, 
shall furnish the contracting officer all records and documents 
concerning the commitment and a complete written statement of facts, 
including, but not limited to:
    (i) A statement as to why the contracting office was not used 
including the name of the employee who made the commitment:
    (ii) A statement as to why the proposed contractor was selected;
    (iii) A list of other sources considered;
    (iv) A description of work to be performed or products to be 
furnished;
    (v) The estimated or agreed upon contract price;
    (vi) A certification of the appropriated funds available;
    (vii) A statement of whether the contractor has commenced 
performance; and
    (viii) A description of how unauthorized commitments in similar 
circumstances will be avoided in the future.
    (2) The contracting officer shall review and forward the written 
statement of facts for a determination of approval to the Competition 
Advocate DCPM, with any comments or information which should be 
considered in evaluating the request for ratification.
    (3) The NRC legal advisor may be asked for an opinion, advice, or 
concurrence if there is concern regarding the propriety of the funding 
source, appropriateness of the expense, or when some other legal issue 
is involved.

[57 FR 61157, Dec. 23, 1992; 58 FR 8449, Feb. 12, 1993]



Sec. 2001.603  Selection, appointment, and termination of appointment.

    The Director, Division of Contracts and Property Management, is 
authorized by the Director, Office of Administration, to select and 
appoint contracting officers and to terminate their appointment as 
prescribed in FAR 1.603. Delegations of contracting officer authority 
are issued by memorandum which includes a clear statement of the 
delegated authority, including responsibilities and limitations in 
addition to the ``Certificate of Appointment''; SF 1402.



PART 2002--DEFINITIONS--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841, and 41 U.S.C. 418(b).



                       Subpart 2002.1--Definitions



Sec. 2002.100  Definitions.

    Agency means the Nuclear Regulatory Commission (NRC).
    Agency Head or Head of the Agency means the NRC Executive Director 
for Operations, for the purposes specified in this regulation and the 
FAR. This delegation does not extend to internal NRC requirements such 
as clearance levels and Commission papers which specify higher levels of 
authority.
    Commission means the NRC Commission of five members, or a quorum 
thereof, sitting as a body, as provided by Section 201 of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5841).

[[Page 575]]

    Competition Advocate means the individual appointed as such by the 
Agency Head as required by Public Law 98-369. The Director, Division of 
Contracts and Property Management, has been appointed the Competition 
Advocate for the NRC.
    Day means calendar day unless otherwise specified. If the last day 
of the designated period of time is a Saturday, Sunday, or legal holiday 
under Federal law, the period includes the next business day.
    Head of the Contracting Activity (HCA) means the Director, Division 
of Contracts and Property Management.
    Procurement Executive means the individual appointed as such by the 
Agency Head pursuant to Executive Order 12352. The Director, Office of 
Administration, has been appointed the NRC Procurement Executive.

[57 FR 61159, Dec. 23, 1992]



PART 2003--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents




                       Subpart 2003.1--Safeguards

Sec.
2003.101  Standards of conduct.
2003.101-3  Agency regulations.

      Subpart 2003.2--Contractor Gratuities to Government Personnel

2003.203  Reporting suspected violations of the gratuities clause.

    Authority: 42 U.S.C. 2201; Sec. 201, 88 Stat. 1242, as amended; 42 
U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61159, Dec. 23, 1992, unless otherwise noted.



                       Subpart 2003.1--Safeguards

2003.101  Standards of conduct.



Sec. 2003.101-3  Agency regulations.

    NRC standards of conduct for its employees are published in 10 CFR 
Part 0. The standards of conduct include requirements for financial 
disclosure (Sec. 0.735-28).



      Subpart 2003.2--Contractor Gratuities to Government Personnel



Sec. 2003.203  Reporting suspected violations of the gratuities clause.

    (a) Suspected violations of the ``Gratuities'' clause, FAR 52.203.3, 
must be reported orally or in writing directly to the NRC Office of the 
Inspector General. A report must include all facts and circumstances 
related to the case. Refer to 10 CFR 0.735-42, Gifts, Entertainment and 
Favors, for an explanation regarding what is prohibited and what is 
permitted.
    (b) When appropriate, discussions with the contracting officer or a 
higher procurement official, procurement policy staff, and the 
procurement legal advisor prior to filing a report are encouraged.



PART 2004--ADMINISTRATIVE MATTERS--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 481(b).



   Subpart 2004.4--Safeguarding Classified Information Within Industry



Sec. 2004.404  Contract clauses.

    The security clauses used in NRC contracts are found at 2052.204. 
They are:
    (a) Security, 2052.204-70. This clause will be used in all contracts 
during the performance of which the contractor may have access to, or 
contact with classified information, including National Security 
information, restricted data, formerly restricted data, and other 
classified data.
    (b) Site Access Badge Requirements, 2052.204-71. This clause will be 
used in all contracts under which the contractor will require access to 
Government facilities. The clause may be altered to reflect any special 
conditions to be applied to foreign nationals.

[57 FR 61160, Dec. 23, 1992]

[[Page 576]]



           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING





PART 2005--PUBLICIZING CONTRACT ACTIONS--Table of Contents




    Authority: Sec. 161, 68 Stat. 948, as amended (42 U.S.C. 2201); Sec. 
201, 88 Stat. 1242, as amended (42 U.S.C. 5841); Pub. L. 93-400, 88 
Stat. 796, as amended by Pub. L. 96-83, 93 Stat. 648, Pub. L. 98-577, 98 
Stat. 3074 (41 U.S.C. 401 et seq.).



                   Subpart 2005.5--Paid Advertisements



Sec. 2005.502  Authority.

    Before placing paid advertisements in newspapers and trade journals 
to publicize contract actions, written authority must be obtained from 
the Director, Division of Contracts and Property Management, for 
Headquarters activities, or the Director, Division of Resource 
Management and Administration, within each regional office for a 
regional procurement.

[57 FR 61160, Dec. 23, 1992]



PART 2009--CONTRACTOR QUALIFICATIONS--Table of Contents




           Subpart 2009.1--Responsible Prospective Contractors

Sec.
2009.101  NRC policy.
2009.105--70  Contract provisions.

        Subpart 2009.4--Debarment, Suspension, and Ineligibility

2009.403  Definitions.
2009.404  Consolidated list of parties excluded from Federal procurement 
          or non-procurement programs.
2009.405  Effect of listing.
2009.405-1  Continuation of current contracts.
2009.405-2  Restrictions on subcontracting.
2009.406  Debarment.
2009.406-3  Procedures.
2009.407  Suspension.
2009.407-3  Procedures.
2009.470  Appeals.

          Subpart 2009.5--Organizational Conflicts of Interest

2009.500  Scope of subpart.
2009.570  NRC organizational conflicts of interest.
2009.570-1  Scope of policy.
2009.570-2  Definitions.
2009.570-3  Criteria for recognizing contractor organizational conflicts 
          of interest.
2009.570-4  Representation.
2009.570-5  Contract clauses.
2009.570-6  Evaluation, findings, and contract award.
2009.570-7  Conflicts identified after award.
2009.570-8  Subcontracts.
2009.570-9  Waiver.
2009.570-10  Remedies.

    Authority: 42 U.S.C. 2201; Sec. 201, 88 Stat. 1242; as amended; 42 
U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61160, Dec. 23, 1992, unless otherwise noted.



           Subpart 2009.1--Responsible Prospective Contractors



Sec. 2009.101  NRC policy.

    (a) It is NRC policy that contracts will not normally be placed on a 
noncompetitive basis with an individual who was employed by the NRC 
within two years of the date of the request for procurement action. This 
policy also pertains to any firm in which a former NRC employee is a 
partner, principal officer, majority stockholder, or which is otherwise 
controlled or predominantly staffed by former NRC employees and for 
granting consent of subcontracts. An exception to this policy will be 
made if it is determined by the agency Procurement Executive to be in 
the best interest of the Government to do so. This restriction also 
applies to former NRC employees acting as a principal under a task order 
type contract or as a principal under a contract awarded non-
competitively under the Small Business Administration's 8(a) Program. 
This policy is also applied when reviewing subcontracts for the purpose 
of granting consent under NRC prime contracts.
    (b) The term NRC employee includes special Government employees 
performing services for NRC as experts, advisors, consultants, or 
members of advisory committees, if--

[[Page 577]]

    (1) The contract arises directly out of the individual's activity as 
a special employee;
    (2) The individual is in a position to influence the award of the 
contract; or
    (3) The Contracting Officer determines that another conflict of 
interest exists.
    (c) A justification explaining why it is in the best interest of the 
Government to contract with an individual or firm described in paragraph 
(a) of this section on a noncompetitive basis may be approved by the 
Procurement Executive after consulting with the Executive Director for 
Operations or his designee. This is in addition to any justification and 
approvals which may be required by the FAR for use of other than full 
and open competition.
    (d) Nothing in this policy statement shall be construed as relieving 
former employees from obligations prescribed by law, such as 18 U.S.C. 
207, Disqualification of Former Officers and Employees.



Sec. 2009.105-70  Contract provisions.

    The contracting officer shall insert the following provisions in all 
solicitations:
    (a) Section 2052.209-70, Qualifications of Contract Employees.
    (b) Section 2052.209-71 , Current/Former Agency Employee 
Involvement.



        Subpart 2009.4--Debarment, Suspension, and Ineligibility



Sec. 2009.403  Definitions.

    As used in 2009.4:
    Debarring official means the Procurement Executive.
    Initiating official means the contracting officer, the Head of the 
Contracting Activity (HCA), the Procurement Executive, or the Inspector 
General.
    Suspending official means the Procurement Executive.



Sec. 2009.404  Consolidated list of parties excluded from Federal procurement or non-procurement programs.

    The contracting officer responsible for the contract affected by the 
debarment or suspension shall perform the actions required by FAR 
9.404(c)(1)-(3).



Sec. 2009.405  Effect of listing.

    Compelling reasons are considered to be present where failure to 
contract with the debarred or suspended contractor would seriously harm 
the agency's programs and prevent accomplishment of mission 
requirements. The Procurement Executive is authorized to make the 
determinations under FAR 9.405. Requests for these determinations must 
be submitted through the HCA to the Procurement Executive.



Sec. 2009.405-1  Continuation of current contracts.

    The HCA is authorized to make the determinations under FAR 9.405-1.



Sec. 2009.405-2  Restrictions on subcontracting.

    The HCA is authorized to approve subcontracts with debarred or 
suspended subcontractors under FAR 9.405-2.
2009.406  Debarment.



Sec. 2009.406-3  Procedures.

    (a) Investigation and referral. When a contracting officer becomes 
aware of possible irregularities or any information which may be 
sufficient cause for debarment, the case must be referred through the 
HCA to the Procurement Executive immediately. The case must be 
accompanied by a complete statement of the facts (including a copy of 
any criminal indictments, if applicable) along with a recommendation for 
action. Where the statement of facts indicates the irregularities to be 
possible criminal offenses, or for any other reason further 
investigation is considered necessary, the matter must first be referred 
to the HCA who will consult with the Office of the Inspector General to 
determine if further investigation is required prior to referring to the 
debarring official.
    (b) Decision-making process. If, after reviewing the recommendations 
and consulting with the Office of the General Counsel and, if 
appropriate, the Office of the Inspector General, the debarring official 
determines debarment is justified, the debarring official shall initiate 
the proposed debarment in accordance with FAR 9.406-3(c) and notify the 
HCA of the action taken. If the

[[Page 578]]

contractor fails to submit a timely written response within 30 days 
after receipt of the notice, the debarring official may notify the 
contractor in accordance with FAR 9.406-3(d) that the contractor is 
debarred.
    (c) Fact-finding proceedings. For actions listed under FAR 9.406-
3(b)(2), the contractor shall be given the opportunity to appear at an 
informal hearing. The hearing should be held at a location and time that 
is convenient to the parties concerned, and no later than 30 days after 
the contractor received the notice, if at all possible. The contractor 
and any specifically named affiliates may be represented by counsel or 
any duly authorized representative. Witnesses may be called by either 
party. The proceedings must be conducted expeditiously and in such a 
manner that each party will have an opportunity to present all 
information considered pertinent to the proposed debarment.
2009.407  Suspension.



Sec. 2009.407-3  Procedures.

    (a) Investigation and referral. When a contracting officer becomes 
aware of possible irregularities or any information which may be 
sufficient cause for suspension, the case must be referred through the 
HCA to the Procurement Executive immediately. The case must be 
accompanied by a complete statement of the facts along with a 
recommendation for action. Where the statement of facts indicates the 
irregularities to be possible criminal offenses, or for any other reason 
further investigation is considered necessary, the matter must first be 
referred to the HCA who will consult with the Office of the Inspector 
General to determine if further investigation is required prior to 
referring the matter to the suspending official.
    (b) Decision-making process. If, after reviewing the recommendations 
and consulting with the Office of the General Counsel, and if 
appropriate, the Office of the Inspector General, the suspending 
official determines suspension is justified, the suspending official 
shall initiate the proposed suspension in accordance with FAR 9.407-
3(b)(2). The contractor shall be given the opportunity to appear at an 
informal hearing, similar in nature to the hearing for debarments as 
discussed in FAR 9.406-3(b)(2). If the contractor fails to submit a 
timely written response within 30 days after receipt of the notice, the 
suspending official may notify the contractor in accordance with 9.407-
3(d) that the contractor is suspended.



Sec. 2009.470  Appeals.

    A debarred or suspended contractor may appeal the debarring/
suspending official's decision by mailing or otherwise furnishing a 
written notice within 90 days from the date of the decision to the 
Executive Director for Operations. A copy of the notice of appeal must 
be furnished to the debarring/suspending official from whose decision 
the appeal is taken.



          Subpart 2009.5--Organizational Conflicts of Interest



Sec. 2009.500  Scope of subpart.

    In accordance with 42 U.S.C. 2210a., NRC acquisitions are processed 
in accordance with 2009.570, which takes precedence over FAR 9.5 with 
respect to organizational conflicts of interest. Where non-conflicting 
guidance appears in FAR 9.5, that guidance must be followed.
2009.570  NRC organizational conflicts of interest.



Sec. 2009.570-1  Scope of policy.

    (a) It is the policy of NRC to avoid, eliminate, or neutralize 
contractor organizational conflicts of interest. The NRC achieves this 
objective by requiring all prospective contractors to submit information 
describing relationships, if any, with organizations or persons 
(including those regulated by the NRC) which may give rise to actual or 
potential conflicts of interest in the event of contract award.
    (b) Contractor conflict of interest determinations cannot be made 
automatically or routinely. The application of sound judgment on 
virtually a case-by-case basis is necessary if the policy is to be 
applied to satisfy the overall public interest. It is not possible to 
prescribe in advance a specific method or set of criteria which would 
serve to

[[Page 579]]

identify and resolve all of the contractor conflict of interest 
situations which might arise. However, examples are provided in these 
regulations to guide application of this policy guidance. The ultimate 
test is as follows: Might the contractor, if awarded the contract, be 
placed in a position where its judgment may be biased, or where it may 
have an unfair competitive advantage?
    (c) The conflict of interest rule contained in this subpart applies 
to contractors and offerors only. Individuals or firms who have other 
relationships with the NRC (e.g., parties to a licensing proceeding) are 
not covered by this regulation. This rule does not apply to the 
acquisition of consulting services through the personnel appointment 
process, NRC agreements with other government agencies, international 
organizations, or state, local, or foreign governments. Separate 
procedures for avoiding conflicts of interest will be employed in these 
agreements, as appropriate.



Sec. 2009.570-2  Definitions.

    As used in 2009.570:
    Affiliates means business concerns which are affiliates of each 
other when either directly or indirectly one concern or individual 
controls or has the power to control another, or when a third party 
controls or has the power to control both.
    Contract means any contractual agreement or other arrangement with 
the NRC except as provided in 2009.570-1(c).
    Contractor means any person, firm, unincorporated association, joint 
venture, co-sponsor, partnership, corporation, affiliates thereof, or 
their successors in interest, including their chief executives, 
directors, key personnel (identified in the contract), proposed 
consultants or subcontractors, which are a party to a contract with the 
NRC.
    Evaluation activities means any effort involving the appraisal of a 
technology, process, product, or policy.
    Offeror or prospective contractor means any person, firm, 
unincorporated association, joint venture, co-sponsor, partnership, 
corporation, or their affiliates or successors in interest, including 
their chief executives, directors, key personnel, proposed consultants, 
or subcontractors, submitting a bid or proposal, solicited or 
unsolicited, to the NRC to obtain a contract.
    Organizational conflicts of interest means that a relationship 
exists whereby a contractor or prospective contractor has present or 
planned interests related to the work to be performed under an NRC 
contract which:
    (1) May diminish its capacity to give impartial, technically sound, 
objective assistance and advice, or may otherwise result in a biased 
work product; or
    (2) May result in its being given an unfair competitive advantage.
    Potential conflict of interest means that a factual situation exists 
that suggests that an actual conflict of interest may arise from award 
of a proposed contract. The term potential conflict of interest is used 
to signify those situations that--
    (1) Merit investigation before contract award to ascertain whether 
award would give rise to an actual conflict; or
    (2) Must be reported to the contracting officer for investigation if 
they arise during contract performance.
    Research means any scientific or technical work involving 
theoretical analysis, exploration, or experimentation.
    Subcontractor means any subcontractor of any tier who performs work 
under a contract with the NRC except subcontracts for supplies and 
subcontracts in amounts not exceeding the small purchase threshold.
    Technical consulting and management support services means internal 
assistance to a component of the NRC in the formulation or 
administration of its programs, projects, or policies which normally 
require that the contractor be given access to proprietary information 
or to information that has not been made available to the public. These 
services typically include assistance in the preparation of program 
plans, preliminary designs, specifications, or statements of work.

[57 FR 61160, Dec. 23, 1992; 58 FR 8449, Feb. 12, 1993]

[[Page 580]]



Sec. 2009.570-3  Criteria for recognizing contractor organizational conflicts of interest.

    (a) General.
    (1) Two questions will be asked in determining whether actual or 
potential organizational conflicts of interest exist:
    (i) Are there conflicting roles which might bias an offeror's or 
contractor's judgment in relation to its work for the NRC?
    (ii) May the offeror or contractor be given an unfair competitive 
advantage based on the performance of the contract?
    (2) NRC's ultimate determination that organizational conflicts of 
interest exist will be made in light of common sense and good business 
judgment based upon the relevant facts. While it is difficult to 
identify and to prescribe in advance a specific method for avoiding all 
of the various situations or relationships that might involve potential 
organizational conflicts of interest, NRC personnel will pay particular 
attention to proposed contractual requirements that call for the 
rendering of advice, consultation or evaluation activities, or similar 
activities that directly lay the groundwork for the NRC's decisions on 
regulatory activities, future procurements, and research programs. Any 
work performed at an applicant or licensee site will also be closely 
scrutinized by the NRC staff.
    (b) Situations or relationships. The following situations or 
relationships may give rise to organizational conflicts of interest:
    (1) The offeror or contractor shall disclose information, that may 
give rise to organizational conflicts of interest under the following 
circumstances. The information may include the scope of work or 
specification for the requirement, being performed, the period of 
performance, and the name and telephone number for a point of contact at 
the organization knowledgeable about the commercial contract.
    (i) Where the offeror or contractor provides advice and 
recommendation to the NRC in the same technical area where it is also 
providing consulting assistance to any organization regulated by the 
NRC.
    (ii) Where the offeror or contractor provides advice to the NRC on 
the same or similar matter on which it is also providing assistance to 
any organization regulated by the NRC.
    (iii) Where the offeror or contractor evaluates its own products or 
services, or has been substantially involved in the development or 
marketing of the products or services of another entity.
    (iv) Where the award of a contract would result in placing the 
offeror or contractor in a conflicting role in which its judgment may be 
biased in relation to its work for the NRC, or would result in an unfair 
competitive advantage for the offeror or contractor.
    (v) Where the offeror or contractor solicits or performs work at an 
applicant or licensee site while performing work in the same technical 
area for the NRC at the same site.
    (2) The contracting officer may request specific information from an 
offeror or contractor or may require special contract clauses such as 
provided in 2009.570-5(b) in the following circumstances:
    (i) Where the offeror or contractor prepares specifications that are 
to be used in competitive procurements of products or services covered 
by the specifications.
    (ii) Where the offeror or contractor prepares plans for specific 
approaches or methodologies that are to be incorporated into competitive 
procurements using the approaches or methodologies.
    (iii) Where the offeror or contractor is granted access to 
information not available to the public concerning NRC plans, policies, 
or programs that could form the basis for a later procurement action.
    (iv) Where the offeror or contractor is granted access to 
proprietary information of its competitors.
    (v) Where the award of a contract might result in placing the 
offeror or contractor in a conflicting role in which its judgment may be 
biased in relation to its work for the NRC or might result in an unfair 
competitive advantage for the offeror or contractor.
    (c) Policy application guidance. The following examples are 
illustrative only and are not intended to identify and resolve all 
contractor organizational conflict of interest situations.

[[Page 581]]

    (1)(i) Example. The ABC Corp., in response to a Request for Proposal 
(RFP), proposes to undertake certain analyses of a reactor component as 
called for in the RFP. The ABC Corp. is one of several companies 
considered to be technically well qualified. In response to the inquiry 
in the RFP, the ABC Corp. advises that it is currently performing 
similar analyses for the reactor manufacturer.
    (ii) Guidance. An NRC contract for that particular work normally 
would not be awarded to the ABC Corp. because the company would be 
placed in a position in which its judgment could be biased in 
relationship to its work for the NRC. Because there are other well-
qualified companies available, there would be no reason for considering 
a waiver of the policy.
    (2)(i) Example. The ABC Corp., in response to an RFP, proposes to 
perform certain analyses of a reactor component that is unique to one 
type of advanced reactor. As is the case with other technically 
qualified companies responding to the RFP, the ABC Corp. is performing 
various projects for several different utility clients. None of the ABC 
Corp. projects have any relationship to the work called for in the RFP. 
Based on the NRC evaluation, the ABC Corp. is considered to be the best 
qualified company to perform the work outlined in the RFP.
    (ii) Guidance. An NRC contract normally could be awarded to the ABC 
Corp. because no conflict of interest exists which could motivate bias 
with respect to the work. An appropriate clause would be included in the 
contract to preclude the ABC Corp. from subsequently contracting for 
work with the private sector that could create a conflict during the 
performance of the NRC contract. For example, ABC Corp. would be 
precluded from the performance of similar work for the company 
developing the advanced reactor mentioned in the example.
    (3)(i) Example. The ABC Corp., in response to a competitive RFP, 
submits a proposal to assist the NRC in revising NRC's guidance 
documents on the respiratory protection requirements of 10 CFR part 20. 
ABC Corp. is the only firm determined to be technically acceptable. ABC 
Corp. has performed substantial work for regulated utilities in the past 
and is expected to continue similar efforts in the future. The work has 
and will cover the writing, implementation, and administration of 
compliance respiratory protection programs for nuclear power plants.
    (ii) Guidance. This situation would place the firm in a role where 
its judgment could be biased in relationship to its work for the NRC. 
Because the nature of the required work is vitally important in terms of 
the NRC's responsibilities and no reasonable alternative exists, a 
waiver of the policy, in accordance with 2009.570-9 may be warranted. 
Any waiver must be fully documented in accordance with the waiver 
provisions of this policy with particular attention to the establishment 
of protective mechanisms to guard against bias.
    (4)(i) Example. The ABC Corp. submits a proposal for a new system to 
evaluate a specific reactor component's performance for the purpose of 
developing standards that are important to the NRC program. The ABC 
Corp. has advised the NRC that it intends to sell the new system to 
industry once its practicability has been demonstrated. Other companies 
in this business are using older systems for evaluation of the specific 
reactor component.
    (ii) Guidance. A contract could be awarded to the ABC Corp. if the 
contract stipulates that no information produced under the contract will 
be used in the contractor's private activities unless this information 
has been reported to the NRC. Data on how the reactor component 
performs, which is reported to the NRC by contractors, will normally be 
disseminated by the NRC to others to preclude an unfair competitive 
advantage. When the NRC furnishes information about the reactor 
component to the contractor for the performance of contracted work, the 
information may not be used in the contractor's private activities 
unless the information is generally available to others. Further, the 
contract will stipulate that the contractor will inform the NRC 
contracting officer of all situations in which the information, 
developed about the performance of the reactor component under the 
contract, is proposed to be used.

[[Page 582]]

    (5)(i) Example. The ABC Corp., in response to a RFP, proposes to 
assemble a map showing certain seismological features of the Appalachian 
fold belt. In accordance with the representation in the RFP and 
2009.570-3(b)(1)(i), ABC Corp. informs the NRC that it is presently 
doing seismological studies for several utilities in the eastern United 
States, but none of the sites are within the geographic area 
contemplated by the NRC study.
    (ii) Guidance. The contracting officer would normally conclude that 
award of a contract would not place ABC Corp. in a conflicting role 
where its judgment might be biased. Section 2052.209-73(c) Work for 
Others, would preclude ABC Corp. from accepting work which could create 
a conflict of interest during the term of the NRC contract.
    (6)(i) Example. AD Division of ABC Corp., in response to a RFP, 
submits a proposal to assist the NRC in the safety an environmental 
review of applications for licenses for the construction, operation, and 
decommissioning of fuel cycle facilities. ABC Corp. is divided into two 
separate and distinct divisions, AD and BC. The BC Division performs the 
same or similar services for industry. The BC Division is currently 
providing the same or similar services required under the NRC's contract 
for an applicant or licensee.
    (ii) Guidance. An NRC contract for that particular work would not be 
awarded to the ABC Corp. The AD Division could be placed in a position 
to pass judgment on work performed by the BC Division, which could bias 
its work for NRC. Further, the Conflict of Interest provisions apply to 
ABC Corp. and not to separate or distinct divisions within the company. 
If no reasonable alternative exists, a waiver of the policy could be 
sought in accordance with 2009.570-9.
    (7)(i) Example. The ABC Corp. completes an analysis for NRC of steam 
generator tube leaks at one of a utility's six sites. Three months 
later, ABC Corp. is asked by this utility to perform the same analysis 
at another of its sites.
    (ii) Guidance. 2052.290-73(c)(3) would prohibit the contractor from 
beginning this work for the utility until one year after completion of 
the NRC work at the first site.
    (8)(i) Example. ABC Corp. is assisting NRC in a major on-site 
analysis of a utility's redesign of the common areas between its twin 
reactors. The contract is for two years with an estimated value of $5 
million. Near the completion of the NRC work, ABC Corp. requests 
authority to solicit for a $100K contract with the same utility to 
transport spent fuel to a disposal site. ABC Corp. is performing no 
other work for the utility.
    (ii) Guidance. The Contracting Officer, would allow the contractor 
to proceed with the solicitation because (A) it is not in the same 
technical area as the NRC work and (B) the potential for technical bias 
by the contractor because of financial ties to the utility is slight due 
to the relative value of the two contracts.
    (9)(i) Example. The ABC Corp. is constructing a turbine building and 
installing new turbines at a reactor site. The contract with the utility 
is for five years and has a total value of $100 million. ABC Corp. has 
responded to an NRC Request for Proposal requiring the contractor to 
participate in a major team inspection unrelated to the turbine work at 
the same site. The estimated value of the contract is $75K.
    (ii) Guidance. An NRC contract would not normally be awarded to ABC 
Corp. since these factors create the potential for financial loyalty to 
the utility that may bias the technical judgment of the contractor.
    (d) Other considerations.
    (1) The fact that the NRC can identify and later avoid, eliminate, 
or neutralize any potential organizational conflicts arising from the 
performance of a contract is not relevant to a determination of the 
existence of conflicts prior to the award of a contract.
    (2) It is not relevant that the contractor has the professional 
reputation of being able to resist temptations which arise from 
organizational conflicts of interest, or that a follow-on procurement is 
not involved, or that a contract is awarded on a competitive or a sole 
source basis.

[[Page 583]]



Sec. 2009.570-4  Representation.

    (a) The following procedures are designed to assist the NRC 
contracting officer in determining whether situations or relationships 
exist which may constitute organizational conflicts of interest with 
respect to a particular offeror or contractor. The procedures apply to 
small purchases meeting the criteria stated in the following paragraph 
(b) of this section.
    (b) The organizational conflict of interest representation provision 
at 2052.209-72 must be included in solicitations and unsolicited 
proposals, (including those for task orders and modifications for new 
work) for:
    (1) Evaluation services or activities;
    (2) Technical consulting and management support services;
    (3) Research; and
    (4) Other contractual situations where special organizational 
conflicts of interest provisions are noted in the solicitation and would 
be included in the resulting contract. This representation requirement 
also applies to all modifications for additional effort under the 
contract except those issued under the ``Changes'' clause. Where, 
however, a statement of the type required by the organizational 
conflicts of interest representation provisions has previously been 
submitted with regard to the contract being modified, only an updating 
of the statement is required.
    (c) The offeror may, because of actual or potential organizational 
conflicts of interest, propose to exclude specific kinds of work 
contained in a RFP unless the RFP specifically prohibits the exclusion. 
Any such proposed exclusion by an offeror will be considered by the NRC 
in the evaluation of proposals. If the NRC considers the proposed 
excluded work to be an essential or integral part of the required work 
and its exclusion would be to the detriment of the competitive posture 
of the other offerors, the NRC shall reject the proposal as 
unacceptable.
    (d) The offeror's failure to execute the representation required by 
paragraph (b) of this section with respect to an invitation for bids is 
considered to be a minor informality. The offeror will be permitted to 
correct the omission.



Sec. 2009.570-5  Contract clauses.

    (a) General contract clause. All contracts and small purchases of 
the types set forth in 2009.570-4(b) must include the clause entitled, 
``Contractor Organizational Conflicts of Interest,'' set forth in 
2052.209-73.
    (b) Other special contract clauses. If it is determined from the 
nature of the proposed contract that an organizational conflict of 
interest exists, the contracting officer may determine that the conflict 
can be avoided, or, after obtaining a waiver in accordance with 
2009.570-9, neutralized through the use of an appropriate special 
contract clause. If appropriate, the offeror may negotiate the terms and 
conditions of these clauses, including the extent and time period of any 
restriction. These clauses include but are not limited to:
    (1) Hardware exclusion clauses which prohibit the acceptance of 
production contracts following a related non-production contract 
previously performed by the contractor;
    (2) Software exclusion clauses;
    (3) Clauses which require the contractor (and certain of its key 
personnel) to avoid certain organizational conflicts of interest; and
    (4) Clauses which provide for protection of confidential data and 
guard against its unauthorized use.



Sec. 2009.570-6  Evaluation, findings, and contract award.

    The contracting officer shall evaluate all relevant facts submitted 
by an offeror and other relevant information. After evaluating this 
information against the criteria of 2009.570-3, the contracting officer 
shall make a findings of whether organizational conflicts of interest 
exist with respect to a particular offeror. If it has been determined 
that real or potential conflicts of interest exist, the contracting 
officer shall:
    (a) Disqualify the offeror from award;
    (b) Avoid or eliminate such conflicts by appropriate measures; or
    (c) Award the contract under the waiver provision of 2009.570-9.



Sec. 2009.570-7  Conflicts identified after award.

    If potential organizational conflicts of interest are identified 
after award

[[Page 584]]

with respect to a particular contractor, and the contracting officer 
determines that conflicts do exist and that it would not be in the best 
interest of the government to terminate the contract, as provided in the 
clauses required by 2009.570-5, the contracting officer shall take every 
reasonable action to avoid, eliminate, or, after obtaining a waiver in 
accordance with 2009.570-9, neutralize the effects of the identified 
conflict.



Sec. 2009.570-8  Subcontracts.

    The contracting officer shall require offerors and contractors to 
submit a representative statement from all subcontractors (other than a 
supply subcontractor) and consultants performing services in excess of 
$10,000 in accordance with 2009.570-4(b). The contracting officer shall 
require the contractor to include contract clauses in accordance with 
2009.570-5 in consultant agreements or subcontracts involving 
performance of work under a prime contract.



Sec. 2009.570-9  Waiver.

    (a) The contracting officer determines the need to seek a waiver for 
specific contract awards, with the advice and concurrence of the program 
office director and legal counsel. Upon the recommendation of the 
Procurement Executive, and after consultation with legal counsel, the 
Executive Director for Operations may waive the policy in specific cases 
if he determines that it is in the best interest of the United States to 
do so.
    (b) Waiver action is strictly limited to those situations in which:
    (1) The work to be performed under contract is vital to the NRC 
program.
    (2) The work cannot be satisfactorily performed except by a 
contractor whose interests give rise to question of conflict of 
interest.
    (3) Contractual and/or technical review and surveillance methods can 
be employed by the NRC to neutralize the conflict.
    (c) For any waivers, the justification and approval documents must 
be placed in the NRC Public Document Room, 2120 L Street, NW. (Lower 
Level), Washington, DC.



Sec. 2009.570-10  Remedies.

    In addition to other remedies permitted by law or contract for a 
breach of the restrictions in this subpart or for any intentional 
misrepresentation or intentional nondisclosure of any relevant interest 
required to be provided for this section, the NRC may debar the 
contractor from subsequent NRC contracts.



PART 2010--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE DESCRIPTIONS--Table of Contents




Sec.
2010.004  Brand name products or equal.
2010.011  Solicitation provisions and contract clauses.

    Authority: Sec. 161, 68 Stat. 948, as amended (42 U.S.C. 2201); Sec. 
201, 88 Stat. 1242, as amended (42 U.S.C. 5841; 41 U.S.C. 418(b).



Sec. 2010.004  Brand name products or equal.

    (a) Acquisitions will generally not be based on a specifically 
identified product or feature(s) thereof. However, under unusual 
circumstances this type of approach may be used as described below.
    (b) Brand name or equal purchase descriptions must cite all brand 
name products known to be acceptable and of current manufacture. If the 
use of a brand name or equal purchase description results in the 
purchase of an acceptable brand name product which was not listed as an 
``equal'' product, a reference to that brand name product should be 
included in the purchase description for later acquisition. If a brand 
name product is no longer applicable, the reference to that brand name 
must be deleted from any subsequent purchase description.
    (1) It is imperative that brand name or equal purchase descriptions 
specify each physical or functional characteristic of the product that 
is essential to the intended use. Failure to do so may result in a 
defective solicitation and the necessity to resolicit the requirement. 
Care must be taken to avoid specifying characteristics that cannot be 
shown to materially affect the intended end use and which unnecessarily 
restrict competition.

[[Page 585]]

    (2) When describing essential characteristics, permissible 
tolerances should be indicated. A characteristic (e.g., a specific 
dimension) of a brand name product may not be specified unless it is 
essential to the Government's need. The contracting officer shall be 
able to justify the requirement.
    (c) The clause found at 2052.210-70 must be inserted in all 
solicitations citing a brand name or equal, except when samples are 
requested.
    (d) An offer may not be rejected for failure of the offered product 
to equal a characteristic of a brand name product if it was not 
specified in the brand name or equal description. However, if it is 
clearly established that the unspecified characteristic is essential to 
the intended end use, the solicitation is defective and no award may be 
made. In these cases, the contracting officer should resolicit the 
requirements, using a purchase description that sets forth the essential 
characteristics.
    (e) In small purchases within the open market limitations, brand 
name policies and procedures are applicable to the extent practicable.

[57 FR 61164, Dec. 23, 1992]



Sec. 2010.011  Solicitation provisions and contract clauses.

    The contracting officer shall insert the clause at 2052.210-71, 
Drawings, Designs, Specifications, and Data, in all contracts in which 
drawings, designs, specifications, or other data will be developed and 
the NRC must retain full rights to them (except for the contractor's 
right to retain a copy for its own use). When any of the clauses 
prescribed at FAR 27.409, Solicitation Provisions and Contract Clauses, 
are included in the solicitation/contract, this clause will not be used.

[57 FR 61164, Dec. 23, 1992]



PART 2012--CONTRACT DELIVERY OR PERFORMANCE--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).



                   Subpart 2012.104--Contract clauses



Sec. 2012.104-70  NRC clauses.

    (a) The contracting officer shall insert the clause at 2042.212-70, 
Preparation of Technical Reports, when deliverables include a technical 
report.
    (b) The contracting officer shall insert the clause at 2052.212-71, 
Technical Progress Report, in all solicitations and contracts except--
    (1) Firm fixed price; or
    (2) Indefinite-delivery contracts to be awarded on a time and 
materials or labor-hour basis, or which provide for issuance of delivery 
orders for specific products/services (line items).
    (c) The contracting officer shall insert the clause at 2052.212-72, 
Financial Status Report, in all solicitations and contracts (except 
Fixed Price) when detailed assessment of costs is warranted and a 
Contractor Spending Plan is required; use the clause at 2052.212-73 
Financial Status Report--Alternate 1 when no Contractor Spending Plan is 
required.
    (d) The contracting officer may alter these clauses prior to 
issuance of the solicitation or during competition by solicitation 
amendment. Reporting requirements should be set at a meaningful and 
productive frequency. Insignificant changes may also be made by the 
contracting officer on a case-by-case basis during negotiations, without 
solicitation amendment.

[57 FR 61165, Dec. 23, 1992, as amended at 58 FR 26253, May 3, 1993]

[[Page 586]]



          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES





PART 2013--SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).



                     Subpart 2013.5--Purchase Orders



Sec. 2013.505-2  Agency order forms in lieu of Optional Forms 347 and 348.

    NRC Form 103, Purchase Order, is prescribed for use by the NRC in 
lieu of Optional Forms 347 and 348.

[57 FR 61165, Dec. 23, 1992]



PART 2014--SEALED BIDDING--Table of Contents




                  Subpart 2014.2--Solicitation of Bids

Sec.
2014.201  Preparation of invitation for bids.
2014.201-670  Solicitation provisions.

          Subpart 2014.4--Opening of Bids and Award of Contract

2014.406  Mistakes in bids.
2014.406-3  Other mistakes disclosed before award.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61165, Dec. 23, 1992, unless otherwise noted.



                  Subpart 2014.2--Solicitation of Bids

2014.201  Preparation of invitation for bids.



Sec. 2014.201-670  Solicitation provisions.

    (a) The contracting officer shall insert the provision at 2052.214-
70, Prebid Conference, in Invitations for Bids (IFB) where there will be 
a prebid conference. This provision may be altered by the contracting 
officer to fit circumstances.
    (b) The cognizant contracting officer shall insert in all 
invitations for bids, except as noted, the provisions at:
    (1) Section 2052.214-71, Bidder Qualifications and Past Experiences. 
(optional, to fit circumstances)
    (2) Section 2052.214-72, Bid Evaluation (paragraph f. is optional).
    (3) Section 2052.214-73, Timely Receipt of Bids.
    (4) Section 2052.214-74, Disposition of Bids.



          Subpart 2014.4--Opening of Bids and Award of Contract



Sec. 2014.406  Mistakes in bids.



Sec. 2014.406-3  Other mistakes disclosed before award.

    (a) The Director, Division of Contracts and Property Management, is 
delegated the authority to make the determinations concerning mistakes 
in bids, including those with obvious clerical errors, discovered prior 
to award. These determinations will be concurred in by legal counsel 
prior to notification of the bidder.
    (b) The cognizant contracting officer is delegated the authority to 
make determinations concerning mistakes disclosed after award in 
accordance with FAR 14.406-4.



PART 2015--CONTRACTING BY NEGOTIATION--Table of Contents




  Subpart 2015.4--Solicitation and Receipt of Proposals and Quotations

Sec.
2015.407-70  Solicitation provisions and contract clauses.
2015.413  Disclosure and use of information before award.
2015.413-2  Alternate II.

                  Subpart 2015.5--Unsolicited Proposals

2015.506  Agency procedures.
2015.506-1  Receipt and initial review.
2015.506-2  Evaluation.
2015.507  Contracting methods.

                    Subpart 2015.6--Source Selection

2015.602  Applicability.
2015.604  Responsibilities.
2015.605  Evaluation factors.

[[Page 587]]

2015.607  Disclosure of mistakes before award.
2015.608  Proposal evaluation.
2015.610  Written or oral discussions.
2015.611  Best and final offers.
2015.612  Sources Evaluation Panel structure.
2015.670  Contract provisions.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61166, Dec. 23, 1992, unless otherwise noted.



  Subpart 2015.4--Solicitation and Receipt of Proposals and Quotations



Sec. 2015.407-70  Solicitation provisions and contract clauses.

    (a) The contracting officer shall insert in Requests for Proposals 
(RFPs) the provisions at:
    (1) Section 2052.215-70, Key Personnel;
    (2) (i) Section 2052.215-71, Project Officer Authority (for 
solicitations for cost-reimbursement, cost-plus-fixed-fee, cost-plus-
award-fee, cost-sharing, labor-hour or time-and-materials, including 
task order contracts);
    (ii) Section 2052.215-72, Project Officer Authority--Alternate 1 
(for solicitations for issuance of delivery orders for specific 
products/services).
    (iii) Section 2052.215-73, Project Officer Authority--Alternate 2 
with paragraph (b)(1) deleted and the remainder of the clause renumbered 
(for solicitations for firm fixed price contracts);
    (iv) The provision, 2052.215-71, and Alternates 1 and 2 are intended 
for experienced, trained project officers, and may be altered to delete 
duties where appropriate.
    (3) Section 2052.215-74, Timely Receipt of Proposals;
    (4) Section 2052.215-75, Award Notification and Commitment of Public 
Funds; and
    (5) Section 2052.215-76, Disposition of Proposals.
    (b) The contracting officer shall insert in all solicitations for 
negotiated procurements for cost type contracts that do not provide for 
task orders or delivery orders, the provision at 2052.215-77, Proposal 
Presentation and Format, except that:
    (1) For all solicitations for negotiated task order contracts, 
paragraphs (e)(4) (xi) and (xii) must be deleted (and the remainder 
renumbered), and the paragraph found at 2052.215-78--Alternate 1, must 
be substituted for paragraph (d)(2).
    (2) 2052.215-79--Alternate 2. For all negotiated procurements for a 
fixed-price, labor-hour, or time-and-materials contract, paragraph 
(d)(2) shall be deleted from the provision 2052.215-77.
    These provisions must be tailored to assure that all sections, but 
in particular paragraph (e), Technical and Management Proposal, reflect 
a one-to-one relationship to the evaluation criteria.
    (c) The contracting officer shall insert the provision at 2052.215-
80, Preproposal Conference, in RFPs where there will be a preproposal 
conference. This provision may be altered to fit the circumstances of 
the requirement.
    (d) The contracting officer shall insert the clauses at 2052.215-81, 
Travel Reimbursement, and 2052-215-83, Travel Approvals, in RFPs where 
there will be travel. For contracts where there is no ceiling amount on 
domestic travel, the provision found at 2052.215-82, Travel 
Reimbursement--Alternate 1 shall be used with paragraph (a) deleted and 
the remainder of the clause renumbered.

[58 FR 26253, May 3, 1993]
2015.413  Disclosure and use of information before award.



Sec. 2015.413-2  Alternate II.

    The procedures discussed at FAR 15.413-2 may be used if approved at 
a level above the contracting officer.



                  Subpart 2015.5--Unsolicited Proposals



Sec. 2015.506  Agency procedures.

    (a) The Division of Contracts and Property Management, Policy Branch 
(PB), is the point of contact for the receipt, acknowledgement, and 
handling of unsolicited proposals.
    (b) Unsolicited proposals in original and two copies, and requests 
for additional information regarding their preparation must be submitted 
to: Chief, Policy Branch, Division of Contracts and Property Management, 
Mail Stop P-1118, U.S. Nuclear Regulatory Commission, Washington, DC 
20555.

[[Page 588]]

    This will ensure that the proposal is logged into the unsolicited 
proposal tracking system.



Sec. 2015.506-1  Receipt and initial review.

    (a) PB shall acknowledge receipt of an unsolicited proposal, 
complete a preliminary review, assign a docket number, and send copies 
of the unsolicited proposal to the appropriate program office 
Director(s) or designee for evaluation.
    (b) PB shall be responsible for controlling reproduction and 
distribution of proposal material by notifying evaluators of their 
responsibilities and tracking the number of proposals received and 
forwarded to evaluators.
    (c) An acknowledgement letter will be sent to the proposer by the 
PB, providing an estimated date for a funding decision or identifying 
the reasons for non-acceptance of the proposal for review in accordance 
with FAR 15.503 and 15.505.



Sec. 2015.506-2  Evaluation.

    Directors of NRC offices shall conduct comprehensive technical 
evaluations of proposals submitted to them by the PB, in accordance with 
the criteria discussed in FAR 15.506-2(a).



Sec. 2015.507  Contracting methods.

    If a noncompetitive contract is recommended, the Director of the 
recommending NRC office shall submit to the Division of Contracts and 
Property Management a written evaluation, Request for Procurement Action 
(RFPA) and Justification for Other Than Full and Open Competition in 
accordance with FAR 15.507(b)(5).



                    Subpart 2015.6--Source Selection



Sec. 2015.602  Applicability.

    This subpart does not apply to contracts awarded to the Small 
Business Administration under Section 8(a) of the Small Business Act.



Sec. 2015.604  Responsibilities.

    (a) All persons participating in the evaluation process may not 
discuss or reveal information concerning the evaluations except to an 
individual participating in the same evaluation proceeding, and then 
only to the extent that the information is required in connection with 
the proceeding. Divulging information during evaluation, selection, and 
negotiation phases of the acquisition to offerors or to other persons 
not having a need to know could jeopardize the resultant award and 
violates the information-disclosure provisions of FAR 3.104, Procurement 
Integrity. These provisions carry criminal as well as civil and 
administrative penalties. Only the contracting officer (or authorized 
representative within the Division of Contracts and Property Management) 
may release source selection information to others during the selection 
process. The contracting officer (or authorized representative) shall 
instruct all participants in the evaluations to observe the prohibitions 
of the Procurement Integrity Act. A procurement official certification 
must be signed for each agency employee personally and substantially 
involved in preparing or approving the advance procurement plans, 
statement of work and participating in the source evaluation process 
[i.e. serving as a member of the Source Evaluation Panel (SEP)].
    (b) All persons participating in the evaluation process shall 
declare any financial or other relationships which may create conflict 
of interest problems with their evaluation duties. A form for this 
purpose must be signed prior to receipt of any proposals or 
participation in discussion of proposals.
    (c) Only the contracting officer (or authorized representative 
within the Division of Contracts and Property Management) may conduct 
discussions with offerors relative to any aspect of the acquisition. The 
contracting officer may include other personnel in discussions, as 
necessary.

[57 FR 61166, Dec. 23, 1992; 58 FR 8449, Feb. 12, 1993]



Sec. 2015.605  Evaluation factors.

    The evaluation criteria included in the solicitation serve as the 
standard against which all proposals are evaluated, and are the basis 
for the development of proposal preparation instructions, in accordance 
with 2015.407-70(b). Indication in the solicitation of the relative 
importance of evaluation factors and subfactors is accomplished by

[[Page 589]]

the assignment of a numerical weight to each. For those factors that 
will not be numerically weighted, only their relative importance will be 
stated in the solicitation. Examples of factors which may not be 
numerically weighted are conflict of interest, estimated cost, and 
business evaluations, and ``go/no go'' evaluation factors.

[57 FR 61166, Dec. 23, 1992; 58 FR 8450, Feb. 12, 1993]



Sec. 2015.607  Disclosure of mistakes before award.

    (a) The contracting officer shall require that the offeror's 
clarification(s) provided in accordance with FAR 15.607 be in writing.
    (b) A correction of a mistake in a proposal may be made only after a 
written determination to permit it has been made by the contracting 
officer.



Sec. 2015.608  Proposal evaluation.

    (a) A Source Evaluation Panel (SEP) shall evaluate technical 
proposals in accordance with the solicitation technical evaluation 
criteria. The SEP prepares and signs the Competitive Range Report with 
the SEP's findings and scoring for each technical proposal together with 
its analysis of cost and other factors and forwards the report for the 
review and approval of the Designating Official. The contracting officer 
uses this technical evaluation and analysis of costs and other factors 
in determining the competitive range.
    (b) The Designating Official (Office Director or designee) is 
responsible for appointing the SEP and is responsible for conducting an 
independent review and evaluation of the SEP's two primary products 
after proposal evaluation: the Competitive Range Report and the Final 
Evaluation Report. Any cancellation of solicitations and subsequent 
rejection of all proposals must be approved by the Head of the 
Contracting Activity.



Sec. 2015.610  Written or oral discussions.

    The contracting officer shall point out to each offeror within the 
competitive range any deficiencies including ambiguities or 
uncertainties in its proposal. The discussions are intended to assist 
the SEP in understanding the proposals and their strengths and 
weaknesses based upon the individual efforts of each offeror to ensure 
that the meaning and emphasis of solicitation provisions have been 
adequately conveyed to the offerors so that all offerors are competing 
equally on the basis intended by the Government.



Sec. 2015.611  Best and final offers.

    The SEP evaluates the technical proposal portion of the best and 
final offers. Technical proposals will be recorded and rescored by the 
SEP, as appropriate, and a Final Evaluation Report of the SEP's findings 
and scoring for each technical proposal will be prepared and forwarded 
to the Designating Official for review and approval prior to submission 
to the contracting officer for final approval. The report will include a 
summary of the technical analysis of costs as a part of the analysis of 
the technical proposals. The SEP's individual evaluation worksheets and 
summary score sheet must accompany the Final Evaluation Report and will 
become part of the official file.

[57 FR 61166, Dec. 23, 1992; 58 FR 8450, Feb. 12, 1993]



Sec. 2015.612  Source Evaluation Panel structure.

    (a) For all proposed contracts with total estimated values in excess 
of $25,000 and expected to result from competitive technical and price/
cost negotiations, the cooperative review efforts of technical, 
contracting, and other administrative personnel are formalized through 
the establishment of a SEP.
    (b)(1) The SEP includes:
    (i) At least three technical members (one of whom serves as the 
chairperson) who participate in the scoring of proposals using weighted 
evaluation criteria and evaluating proposals using other unweighted 
factors; and
    (ii) A contract negotiator who ensures that procurement rules and 
regulations are followed, ensures that the integrity of the process is 
maintained, and negotiates the contract on behalf of the NRC.
    (2) Except in unusual cases, the SEP should not exceed five members 
including the Chairperson. The technical members are usually employees 
of the

[[Page 590]]

NRC program office initiating the request or other NRC employees with 
expertise in areas related to the solicitation Statement of Work. 
Appointment of a technical member from other than the office initiating 
the request is encouraged. Employees of other agencies with expertise in 
a specific area may also serve as SEP technical members not withstanding 
the fact that they are not employees of the NRC. Evaluators need not be 
Federal employees, but the potential for conflict of interest must be 
carefully considered in these cases and the solicitation should notify 
offerors of the NRC's intent to use non-Federal evaluators. The CO will 
make a determination whether or not a non-federal evaluator will be a 
voting SEP member. For proposed procurements with a total estimated cost 
of less than $500,000 over a performance period of three years or less, 
a single technical member may be appointed to evaluate proposals with 
the contracting officer's approval. Designation of SEP members is 
accomplished by memorandum initiated by the director of the program 
office or the director's designee. This official is referred to as the 
Designating Official (DO).
    (c) The SEP chairperson may obtain the services of advisors (e.g., 
legal, financial, etc.) to assist the SEP. Advisors who serve on 
technical evaluation committees are appointed in writing by the DO. 
Advisors are not SEP members, and therefore do not score proposals. 
Advisors need not be Federal employees, but the potential for conflict 
of interest must be carefully considered in these cases, and the 
solicitation should notify offerors of the NRC's intent to use non-
Federal advisors.
    (d) The contracting officer shall establish the competitive range on 
all acquisitions. This is accomplished by approval of the SEP's written 
recommendation transmitted by the DO.
    (e) The source selection official is the contracting officer. 
Selection is made based on review of the SEP's recommendations as 
endorsed by the DO, together with all supporting data to ensure that 
award is in accordance with sound procurement principles and directly 
related to the evaluation criteria as set forth in the solicitation. Any 
proposed selection not endorsed by the DO will be concurred in by the 
Head of the Contracting Activity.



Sec. 2015.670  Contract provisions.

    (a) The contracting officer shall include the provision found at 
2052.215-84, Contract Award and Evaluation of Proposals, in all 
solicitations where technical is more important than cost:
    (1) The contracting officer shall substitute the paragraph found at 
2052.215-85 for paragraph (b) in all solicitations for negotiated 
competitive procurements where cost is more important than technical 
merit.
    (2) The contracting officer shall substitute the paragraph found at 
2052.215-86 for paragraph (b) in all solicitations for negotiated 
competitive procurements where cost and technical merit are of equal 
significance.
    (b) The contracting officer may make appropriate changes to the 
provision to accurately reflect other evaluation procedures, such as 
evaluation of proposals against mandatory criteria and benchmarking 
criteria for ADP procurements.

[58 FR 26254, May 3, 1993]



PART 2016--TYPES OF CONTRACTS--Table of Contents




              Subpart 2016.3--Cost Reimbursement Contracts

Sec.
2016.307-70  Contract provisions and clauses.

              Subpart 2016.5  Indefinite-Delivery Contracts

2016.506-70  Contract provisions and clauses.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61168, Dec. 23, 1992, unless otherwise noted.



              Subpart 2016.3--Cost Reimbursement Contracts



Sec. 2016.307-70  Contract provisions and clauses.

    (a) The contracting officer shall insert the clause at 2052.216-70, 
Level of Effort, in solicitation for negotiated procurements containing 
labor costs other than maintenance services, to be awarded on a cost 
reimbursement, cost sharing, cost-plus-award fee, cost-plus-

[[Page 591]]

fixed fee, time and materials, or labor hour basis.
    (b) The contracting officer shall insert the following provisions 
and clauses in all cost reimbursement contracts:
    (1) Section 2052.216-71, Indirect Cost Rates (where provisional 
rates without ceilings apply).
    (2) Section 2052.216-72, Indirect Cost Rates--Alternate 1 (where 
predetermined rates apply).
    (3) Section 2052.216-73, Indirect Cost Rates--Alternate 2 (where 
provisional rates with ceilings apply).
    (c) The contracting officer may make appropriate changes to these 
clauses to reflect different arrangements.



              Subpart 2016.5--Indefinite-Delivery Contracts



Sec. 2016.506-70  Contract provisions and clauses.

    The contracting officer shall insert the following provisions in all 
solicitations and contracts that contain task order procedures:
    (a) Section 2052.216-74, Task Order Procedures;
    (b) Section 2052.216-75, Accelerated Task order Procedures.

[[Page 592]]



                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS





PART 2017--SPECIAL CONTRACTING METHODS--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 481(b).



                         Subpart 2017.2--Options



Sec. 2017.204  Contracts

    (a) The contracting officer may approve extensions to five year 
contracts for up to a total of an additional six months, for the purpose 
of completing the competitive process for a follow on contract, provided 
that the competitive requirement was received in DCPM not less than six 
months before the end of the fifth year.
    (b) The Head of the Contracting Activity may approve extensions for 
up to a total of five years.

[57 FR 61168, Dec. 23, 1992, as amended at 58 FR 47221, Sept. 8, 1993]



PART 2019--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS--Table of Contents




      Subpart 2019.7--Subcontracting with small business and small 
                     disadvantaged business concerns

Sec.
2019.705  Responsibilities of the contracting officer under the 
          subcontracting assistance program.
2019.705-4  Reviewing the subcontracting plan.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61168, Dec. 23, 1992, unless otherwise noted.



      Subpart 2019.7--Subcontracting with Small Business and Small 
                     Disadvantaged Business Concerns

2019-705  Responsibilities of the contracting officer under the 
subcontracting assistance program.



Sec. 2019.705-4  Reviewing the subcontracting plan.

    (a) During the source selection process, subcontracting plans may be 
requested from all concerns required to submit them and determined to be 
in the competitive range, for negotiation with the apparent successful 
offeror.
    (b) The contracting officer may accept the terms of an overall or 
``master'' company subcontracting plan incorporated by reference into a 
specific subcontracting plan submitted by the apparent successful 
offeror/bid for a specific contract, if:
    (1) The master plan contains all of the elements required by FAR 
19.704;
    (2) Subcontracting goals for small and small disadvantaged business 
concerns are specifically set forth in each contract or modification 
over the statutory threshold;
    (3) Any changes to the plan deemed necessary and required by the 
contracting officer in areas other than goals are specifically set forth 
in the contract or modification; and
    (4) The contracting officer has copies of the entire plan.



PART 2020--LABOR SURPLUS AREA CONCERNS--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).



                         Subpart 2020.1--General



Sec. 2020.102  General Policy.

    Acquisitions that are in excess of $25,000 must be reviewed for 
potential labor surplus area set-aside consideration in accordance with 
FAR 20.104 using publications and other information identifying labor 
surplus areas obtained from: U.S. Department of Labor,

[[Page 593]]

Employment and Training Administration, U.S. Employment Service, Office 
of Labor Market Information, 200 Constitution Ave., NW., room N4456, 
Washington, DC 20510, Telephone Number: (202) 535-0157.

[57 FR 61168, Dec. 23, 1992]



PART 2022--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS--Table of Contents




                  Subpart 2022.1  Basic Labor Policies

Sec.
2022.101-1  General.
2022.103-4  Approvals.

            Subpart 2022.9  Nondiscrimination Because of Age

2022.901-70  Contract provisions.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 4186(b).

    Source: 57 FR 61168, Dec. 23, 1992, unless otherwise noted.



                  Subpart 2022.1  Basic Labor Policies



Sec. 2022.101-1  General.

    The Head of Contracting Activity shall designate programs or 
requirements for which it is necessary that contractors be required to 
notify the Government of actual or potential labor disputes that are 
delaying or threaten to delay the timely contract performance.



Sec. 2022.103-4  Approvals.

    The agency approving official for contractor overtime shall be the 
contracting officer.



            Subpart 2022.9--Nondiscrimination Because of Age



Sec. 2022.901-70  Contract provisions.

    The contracting officer shall insert the provision found at 
2052.222-70, Nondiscrimination Because of Age, in all solicitations.



PART 2024--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION--Table of Contents




            Subpart 2024.1--Protection of Individual Privacy

2024.103  Procedures.

               Subpart 2024.2--Freedom of Information Act

2024.202  Policy.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61169, Dec. 23, 1992, unless otherwise noted.



            Subpart 2024.1--Protection of Individual Privacy



Sec. 2024.103  Procedures.

    The provisions at 10 CFR part 9, subpart B, Privacy Act Regulations, 
are applicable to the maintenance or disclosure of information for a 
system of records on individuals.



               Subpart 2024.2--Freedom of Information Act



Sec. 2024.202  Policy.

    The provisions at 10 CFR part 9, Subpart A, Freedom of Information 
Act Regulations, are applicable to the availability of NRC records to 
the public.



PART 2025--FOREIGN ACQUISITION--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).



               Subpart 2025.1--Buy American Act--Supplies



Sec. 2025.102  Policy.

    Contracting officers may make the determination required by FAR 
25.102(a)(4), provided the determination is factually supported in 
writing. For contracts exceeding $1 million, the Head of the Contracting 
Activity shall approve the determination.

[57 FR 61169, Dec. 23, 1992]

[[Page 594]]



             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS





PART 2027--PATENTS, DATA, AND COPYRIGHTS--Table of Contents




        Subpart 2027.3--Patent Rights Under Government Contracts

Sec.
2027.305  Administration of patent rights clauses.
2027.305-3  Follow-up by Government.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61169, Dec. 23, 1992, unless otherwise noted.



        Subpart 2027.3--Patent Rights Under Government Contracts



Sec. 2027.305  Administration of patent rights clauses.

    The contracting officer shall ensure that each contractor report is 
in writing on whether any patent rights are being claimed, before final 
payment and closeout of the contract.



Sec. 2027.305-3  Follow-up by Government.

    (a) The contracting officer shall, as a part of the closeout of a 
contract, require each contractor to report on any patents, copyrights, 
or royalties attained using any portion of the contract funds. The 
contractor shall, if no activity is to be reported, certify that in 
connection with the performance of the contract:
    (1) No inventions or discoveries were made,
    (2) No copyrights were secured, produced, or composed,
    (3) No notices or claims of patent or copyright infringement have 
been received by the contractor or its subcontractors, and
    (4) No royalty payments were directly involved in the contract or 
reflected in the contract price to the Government, nor were any 
royalties or other payments paid or owed directly to others.
    (b) The contracting officer may waive any of the requirements 
paragraphs (a)(1)-(4) of this section, after documenting the file to 
indicate the--
    (1) Impracticality of obtaining the document(s); and
    (2) Steps taken to attempt to obtain them.
    (c) The contracting officer shall notify agency legal counsel 
responsible for patents whenever a contractor reports any patient, 
copyright, or royalty activity, and shall document the official file 
with the resolution to protect the Government's rights prior to making 
any final payment and closing out the contract.



PART 2030--COST ACCOUNTING STANDARDS--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).



                Subpart 2030.2--CAS Program Requirements



Sec. 2030.201-5  Waiver.

    Requests to waive Cost Accounting Standards (CAS) requirements must 
be submitted to the Chairman, CAS Board, by the Procurement Executive. 
The requests for waivers must be forwarded through the Head of the 
Contracting Activity with supporting documentation and rationale.

[58 FR 26254, May 3, 1993]



PART 2031--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).



                      Subpart 2031.1--Applicability



Sec. 2031.109-70  Contract clauses.

    The contracting officer shall insert the clause at 2052.231-70, 
Precontract Costs, in all cost type contracts when costs in connection 
with work under the contract will be incurred by the contractor before 
the effective date of the contract. Approval for use of this clause must 
be obtained at one level above the contracting officer.

[57 FR 61169, Dec. 23, 1992]

[[Page 595]]



PART 2032--CONTRACT FINANCING--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).



                    Subpart 2032.4--Advance Payments



Sec. 2032.402  General.

    (a) The contracting officer shall have the responsibility and 
authority for making findings and determinations, and for approval of 
contract terms concerning advance payments.
    (b) Before authorizing any advance payment agreements except for 
subscriptions to publications, the approving official shall coordinate 
with the Office of the Controller, Division of Accounting and Finance, 
to ensure completeness of contractor submitted documentation.

[57 FR 61169, Dec. 23, 1992]



PART 2033--PROTESTS, DISPUTES, AND APPEALS--Table of Contents




                        Subpart 2033.1--Protests

Sec.
2033.103  Protests to the agency.
2033.203  Applicability.
2033.211  Contracting officer's decision.
2033.214  Contract clause.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61169, Dec. 23, 1992, unless otherwise noted.



                        Subpart 2033.1--Protests



Sec. 2033.103  Protests to the agency.

    The agency may not process, or shall cease processing, agency level 
protests that are protested outside the agency unless and until such 
time that a proper determination is made authorizing the agency to 
proceed under the applicable protest procedures.



Sec. 2033.203  Applicability.

    Pursuant to an interagency agreement between the NRC and the 
Department of Energy Board of Contract Appeals (EBCA), the EBCA will 
hear appeals from final decisions of NRC contracting officers issued 
pursuant to the Contract Disputes Act. The EBCA rules appear in 10 CFR 
part 1023.



Sec. 2033.211  Contracting officer's decision.

    Contracting officers shall alter the paragraph at FAR 
33.211(a)(4)(iv) to identify the Energy Board of Contract Appeals and 
include its address: Webb Building, room 1006, 4040 N. Fairfax Drive, 
Arlington, Virginia 22203, when preparing a written decision.



Sec. 2033.214  Contract clause.

    The contracting officer shall use the clause at FAR 52.233-1, 
Disputes, with its Alternate I where continued performance is vital to 
National Security, the public health and safety, critical and major 
agency programs, or other essential supplies or services whose timely 
reprocurement from other sources would be impractical.

[[Page 596]]



             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING





PART 2035--RESEARCH AND DEVELOPMENT CONTRACTING--Table of Contents




Sec.
2035.70  Contract clauses.
2035.71  Broad agency announcements.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61170, Dec. 23, 1992, unless otherwise noted.



Sec. 2035.70  Contract clauses.

    (a) The contracting officer shall insert the following clauses in 
all RFPs for Research and Development or in Requests for Proposals 
(RFPs) for other technical services as appropriate:
    (b) Section 2052.235-70, Publication of Research Results, except 
that in the case of universities, the contracting officer shall 
substitute the paragraph found at 2052.235-71 for paragraph c.
    (c) Section 2052.235-72 Safety, Health and Fire Protection.



Sec. 2035.71  Broad agency announcements.

    (a) Criteria for selecting contractors will include such factors as:
    (1) Unique and innovative methods, approaches, or concepts 
demonstrated by the proposal.
    (2) Overall scientific, technical, or economic merits of the 
proposal.
    (3) The offeror's capabilities, related experience, facilities, 
techniques, or unique combinations of these which are integral factors 
for achieving the proposal objectives.
    (4) The qualifications, capabilities, and experience of the proposed 
principal investigator, team leader, or key personnel who are critical 
in achieving the proposal objectives.
    (5) Potential contribution of the effort to NRC's mission.
    (6) Overall standing among similar proposals available for 
evaluation and/or evaluation against the known state-of-the-art 
technology.
    (b) Once a proposal is received, communication between the agency's 
scientific or engineering personnel and the principal investigator is 
permitted for clarification purposes only and must be coordinated 
through the Division of Contracts and Property Management.
    (c) After evaluation of the proposals, the Designating Official 
shall submit a comprehensive evaluation report to the contracting 
officer which recommends the source(s) for contract award. The report 
must reflect the basis for the selection or nonselection of each 
proposal received.



PART 2039--ACQUISITION OF INFORMATION RESOURCES--Table of Contents




Sec.
2039.001  Policy.
2039.002  Delegations of procurement authority.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61170, Dec. 23, 1992, unless otherwise noted.



Sec. 2039.001  Policy.

    In accordance with the Federal Information Resources Management 
Regulation (41 CFR Ch. 201), and appropriate NRC Management Directives, 
the Office of Information Resources Management will be responsible for 
development and/or approval of requirements analysis including 
information needs, justification for specific make and model, analysis 
of alternatives, and Delegations of Procurement Authority for 
information resources management procurements in excess of $25,000 
(automated data processing, telecommunications, and records), when 
required. These documents must be submitted to the Division of Contracts 
and Property Management with the Request for Procurement Action (RFPA) 
for which these documents are required.



Sec. 2039.002  Delegations of procurement authority.

    The NRC official authorized to sign Agency Procurement Requests and 
Agency Telecommunications Requests for Delegations of Procurement 
Authority is the Deputy Executive Director for Nuclear Materials Safety, 
Safeguards and Operations Support or designee.

[[Page 597]]



                    SUBCHAPTER G--CONTRACT MANAGEMENT





PART 2042--CONTRACT ADMINISTRATION--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 418(b).



                  Subpart 2042.8--Disallowance of Costs



Sec. 2042.803  Disallowing costs after incurrence.

    (a) Vouchers and invoices submitted to NRC must be submitted to the 
contracting officer or designee for review and approval for payment. If 
the examination of a voucher or invoice raises a question regarding the 
allowability of a cost submitted, the contracting officer or designee 
shall:
    (1) Hold informal discussions with the contractor as appropriate.
    (2) If the discussions do not resolve the matter, the contracting 
officer shall issue a notice advising the contractor of costs 
disallowed. The notice must advise the contractor that it may:
    (i) If in disagreement with the disallowance, submit a written claim 
to the contracting officer for payment of the disallowed cost and 
explain why the cost should be reimbursed; or
    (ii) If the disagreement(s) cannot be settled, file a claim under 
the disputes clause which will be processed in accordance with disputes 
procedures found at FAR subpart 33.2; and
    (3) Process the voucher or invoice for payment and advise the NRC 
Division of Accounting and Finance to deduct the disallowed costs when 
scheduling the voucher for payment.
    (b) When audit reports or other notifications question costs or 
consider them unallowable, the contracting officer shall resolve all 
cost issues through discussions with the contractor and/or auditor, 
whenever possible, within six months of receipt of the audit report.
    (1) One of the following courses of action must be pursued:
    (i) Accept and implement audit recommendations as submitted;
    (ii) Accept the principle of the audit recommendation but adjust the 
amount of the questioned costs;
    (iii) Reject audit findings and recommendations.
    (2) When implementing the chosen course of action, the contracting 
officer shall:
    (i) Hold discussions with the auditor and contractor, as 
appropriate;
    (ii) If the contracting officer agrees with the auditor concerning 
the questioned costs, attempt to negotiate a mutual settlement of 
questioned costs;
    (iii) Issue a final decision, including any disallowance of 
questioned costs; inform the contractor of his/her right to appeal the 
decision under the disputes procedures found at FAR subpart 33.2; and 
provide a copy of the final decision of the Office of the Inspector 
General; and
    (iv) Initiate immediate recoupment actions for all disallowed costs 
owed the government by one or more of the following methods:
    (A) Request that the contractor provide a credit adjustment (offset) 
against amounts billed the government on the next or other future 
invoice(s) submitted under the contract for which the disallowed costs 
apply;
    (B) Deduct the disallowed costs from the next invoice submitted 
under the contract;
    (C) Deduct the disallowed costs on a schedule determined by the 
contracting officer after discussion with the contractor (if the 
contracting officer determines that an immediate and complete deduction 
is inappropriate); and
    (D) Advise the contractor that a refund is immediately payable to 
the government (in situations where there are insufficient payments owed 
by the government to effect recovery from the contract).

[57 FR 61170, Dec. 23, 1992]



PART 2045--GOVERNMENT PROPERTY--Table of Contents




    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

[[Page 598]]



      Subpart 2045.3--Providing Government Property to Contractors



Sec. 2045.370  Providing government property (in general).

    (a) Unless otherwise provided for in FAR 45.302-1(d), applicable to 
Government facilities with a unit cost of less than $10,000, a 
contractor may be provided Government property or allowed to purchase 
the property at Government expense upon determination made by the 
contracting officer with the advice of the agency property official 
that:
    (1) No practicable or economical alternative exists; e.g., 
acquisition from other sources, utilization of subcontractors, rental of 
property, or modification of program project requirements;
    (2) Furnishing Government property is likely to result in 
substantially lower costs to the Government for the items produced or 
services rendered when all costs involved (e.g., transportation, 
installation, modification, maintenance, etc.) are compared with the 
costs to the Government of the contractor's use of privately-owned 
property; and
    (3) The Government receives adequate consideration for providing the 
property.
    (b) If the program office is aware before the submission of the RFPA 
that it will be necessary to provide prospective contractors with 
Government property, a written justification must accompany the RFPA to 
the Division of Contracts and Property Management.

[[Page 599]]



                     SUBCHAPTER H--CLAUSES AND FORMS





PART 2052--SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents




             Subpart 2052.2--Text of Provisions and Clauses

Sec.
2052.200  Authority.
2052.204-70  Security.
2052.204-71  Site access badge requirements.
2052.209-70  Qualifications of contract employees.
2052.209-71  Current/former agency employee involvement.
2052.209-72  Contractor organizational conflicts of interest 
          (representation).
2052.209-73  Contractor organizational conflicts of interest.
2052.210-70  Brand name products or equal.
2052.210-71  Drawings, designs, specifications, and other data.
2052.212-70  Preparation of technical reports.
2052.212-71  Technical progress report.
2052.212-72  Financial status report.
2052.212-73  Financial status report--Alternate 1.
2052.214-70  Prebid conference.
2052.214-71  Bidder qualifications and past experiences.
2052.214-72  Bid evaluation.
2052.214-73  Timely receipt of bids.
2052.214-74  Disposition of bids.
2052.215-70  Key personnel.
2052.215-71  Project officer authority.
2052.215-72  Project officer authority--Alternate 1.
2052.215-73  Project officer authority--Alternate 2.
2052.215-74  Timely receipt of proposals.
2052.215-75  Award notification and commitment of public funds.
2052.215-76  Disposition of proposals.
2052.215-77  Proposal presentation and format.
2052.215-78  Proposal presentation and format--Alternate 1 (language for 
          negotiated task order contracts).
2052.215-79  Proposal presentation and format--Alternate 2 (language for 
          negotiated fixed prices, labor hour, or time and materials 
          contracts).
2052.215-80  Preproposal conference.
2052.215-81  Travel reimbursement.
2052.215-82  Travel reimbursement--Alternate 1.
2052.215-83  Travel approvals.
2052.215-84  Contract award and evaluation of proposals technical merit 
          more important than cost.
2052.215-85  Contract award and evaluation of proposals--cost most 
          important than technical merit.
2052.215-86  Contract award and evaluation of proposals--cost and 
          technical merit of equal value.
2052.216-70  Level of effort.
2052.216-71  Indirect cost rates.
2052.216-72  Indirect cost rates--Alternate 1.
2052.216-73  Indirect cost rates--Alternate 2.
2052.216-74  Task order procedures.
2052.216-75  Accelerated task order procedures.
2052.222-70  Nondiscrimination because of age.
2052.231-70  Precontract costs.
2052.235-70  Publication of research results.
2052.235-71  Publication of research results--universities.
2052.235-72  Safety, health, and fire protection.

    Authority: 42 U.S.C. 2201; 42 U.S.C. 5841; and 41 U.S.C. 418(b).

    Source: 57 FR 61171, Dec. 23, 1992, unless otherwise noted.



             Subpart 2052.2--Text of Provisions and Clauses

2052.200  Authority.



Sec. 2052.204-70  Security.

    As prescribed at 2004.404(a), insert the following clause in 
applicable solicitations and contracts:

                                Security

    (a) Security/Classification Requirements Form. The attached NRC Form 
187 (See Section J for List of Attachments) furnishes the basis for 
providing security and classification requirements to prime contractors, 
subcontractors, or others (e.g., bidders) who have or may have an NRC 
contractual relationship that requires access to classified information 
or matter, access on a continuing basis (in excess of 90 or more days) 
to NRC Headquarters controlled buildings, or otherwise requires NRC 
photo identification or card-key badges.
    (b) It is the contractor's duty to safeguard National Security 
Information, Restricted Data, and Formerly Restricted Data. The 
contractor shall, in accordance with the Commission's security 
regulations and requirements, be responsible for safeguarding National 
Security Information, Restricted Data, and Formerly Restricted Data, and 
for protecting against sabotage, espionage, loss, and theft, the 
classified documents and material in the contractor's possession in 
connection with the performance of work under this contract. Except as 
otherwise expressly

[[Page 600]]

provided in this contract, the contractor shall, upon completion or 
termination of this contract, transmit to the Commission any classified 
matter in the possession of the contractor or any person under the 
contractor's control in connection with performance of this contract. If 
retention by the contractor of any classified matter is required after 
the completion or termination of the contract and the retention is 
approved by the contracting officer, the contractor shall complete a 
certificate of possession to be furnished to the Commission specifying 
the classified matter to be retained. The certification must identify 
the items and types or categories of matter retained, the conditions 
governing the retention of the matter and their period of retention, if 
known. If the retention is approved by the contracting officer, the 
security provisions of the contract continue to be applicable to the 
matter retained.
    (c) In connection with the performance of the work under this 
contract, the contractor may be furnished, or may develop or acquire, 
proprietary data (trade secrets) or confidential or privileged 
technical, business, or financial information, including Commission 
plans, policies, reports, financial plans, internal data protected by 
the Privacy Act of 1974 (Pub. L. 93-579), or other information which has 
not been released to the public or has been determined by the Commission 
to be otherwise exempt from disclosure to the public. The contractor 
agrees to hold the information in confidence and not to directly or 
indirectly duplicate, disseminate, or disclose the information in whole 
or in part to any other person or organization except as may be 
necessary to perform the work under this contract. The contractor agrees 
to return the information to the Commission or otherwise dispose of it 
at the direction of the contracting officer. Failure to comply with this 
clause is grounds for termination of this contract.
    (d) Regulations. The contractor agrees to conform to all security 
regulations and requirements of the Commission which are subject to 
change as directed by the NRC Division of Security and the Contracting 
Officer. These changes will be under the authority of the changes 
clause.
    (e) Definition of National Security Information. The term National 
Security Information, as used in this clause, means information that has 
been determined pursuant to Executive Order 12356 or any predecessor 
order to require protection against unauthorized disclosure and that is 
so designated.
    (f) Definition of Restricted Data. The term Restricted Data, as used 
in this clause, means all data concerning:
    (1) design, manufacture, or utilization of atomic weapons;
    (2) the production of special nuclear material; or
    (3) the use of special nuclear material in the production of energy, 
but does not include data declassified or removed from the Restricted 
Data category pursuant to section 142 of the Atomic Energy Act of 1954, 
as amended.
    (g) Definition of Formerly Restricted Data. The term Formerly 
Restricted Data, as used in this clause, means all data removed from the 
Restricted Data category under section 142-d of the Atomic Energy Act of 
1954, as amended.
    (h) Security clearance personnel. The contractor may not permit any 
individual to have access to Restricted Data, Formerly Restricted Data, 
or other classified information, except in accordance with the Atomic 
Energy Act of 1954, as amended, and the Commission's regulations or 
requirements applicable to the particular type or category of classified 
information to which access is required. The contractor shall also 
execute a Standard Form 312, Classified Information Nondisclosure 
Agreement, when access to classified information is required.
    (i) Criminal liabilities. It is understood that disclosure of 
National Security Information, Restricted Data, and Formerly Restricted 
Data, relating to the work or services ordered hereunder to any person 
not entitled to receive it, or failure to safeguard any Restricted Data, 
Formerly Restricted Data, or any other classified matter that may come 
to the contractor or any person under the contractor's control in 
connection with work under this contract, may subject the contractor, 
its agents, employees, or subcontractors to criminal liability under the 
laws of the United States. (See the Atomic Energy Act of 1954, as 
amended, 42 U.S.C. 2011 et seq.; 18 U.S.C. 793 and 794; and Executive 
Order 12356.)
    (j) Subcontracts and purchase orders. Except as otherwise authorized 
in writing by the contracting officer, the contractor shall insert 
provisions similar to the foregoing in all subcontracts and purchase 
orders under this contract.
    (k) In performing the contract work, the contractor shall classify 
all documents, material, and equipment originated or generated by the 
contractor in accordance with guidance issued by the Commission. Every 
subcontract and purchase order issued hereunder involving the 
origination or generation of classified documents, material, and 
equipment must provide that the subcontractor or supplier assign 
classification to all documents, material, and equipment in accordance 
with guidance furnished by the contractor.

                             (End of Clause)

[57 FR 61171, Dec. 23, 1992, as amended at 58 FR 47221, Sept. 8, 1993]

[[Page 601]]



Sec. 2052.204-71  Site access badge requirements.

    As prescribed at 2004.404(b), insert the following clause in 
applicable solicitations and contracts:

                      Site Access Badge Requirement

    During the life of this contract, the rights of ingress and egress 
for contractor personnel must be made available as required. In this 
regard, all contractor personnel whose duties under this contract 
require their presence on-site shall be clearly identifiable by a 
distinctive badge furnished by the Government. The Project Officer shall 
assist the contractor in obtaining the badges for the contractor 
personnel. It is the sole responsibility of the contractor to ensure 
that each employee has proper identification at all times. All 
prescribed identification must be immediately delivered to the Security 
Office for cancellation or disposition upon the termination of 
employment of any contractor personnel. Contractor personnel must have 
this identification in their possession during on-site performance under 
this contract. It is the contractor's duty to assure that contractor 
personnel enter only those work areas necessary for performance of 
contract work, and to assure the safeguarding of any Government records 
or data that contractor personnel may come into contact with.

                             (End of Clause)



Sec. 2052.209-70  Qualifications of contract employees.

    As prescribed at 2009.105-70, insert the following provision in 
applicable solicitations:

                  Qualifications of Contract Employees

    The offeror hereby certifies by submission of this offer that all 
representations made regarding its employees, proposed subcontractor 
personnel, and consultants are accurate.

                           (End of Provision)



Sec. 2052.209-71  Current/former agency employee involvement.

    As prescribed at 2009.105-70, insert the following provision in 
applicable solicitations:

               Current/Former Agency Employee Involvement

    (a) The following representation is required by the NRC Acquisition 
Regulation 2009.105-70(b). It is not NRC policy to encourage offerors 
and contractors to propose current/former agency employees to perform 
work under NRC contracts, and as set forth in the above cited provision, 
the use of such employees may, under certain conditions, adversely 
affect NRC's consideration of non-competitive proposals and task orders.
    (b) The offeror hereby certifies that there (  ) are (  ) are no 
current/former NRC employees (including special Government employees 
performing services as experts, advisors, consultants, or members of 
advisory committees) who have been or will be involved, directly or 
indirectly, in developing the offer, or in negotiating on behalf of the 
offeror, or in managing, administering, or performing any contract, 
consultant agreement, or subcontract resulting from this offer. For each 
individual so identified, the Technical and Management proposal must 
contain, as a separate attachment, the name of the individual, the 
individual's title while employed by the NRC, the date individual left 
NRC, and brief description of the individual's role under this proposal.

                           (End of Provision)



Sec. 2052.209-72  Contractor organizational conflicts of interest (representation).

    As prescribed at 2009.570-4(b) and 2009.570-8, insert the following 
provision in applicable solicitations:

     Contractor Organizational Conflicts of Interest Representation

    I represent to the best of my knowledge and belief that:
    The award to ____________________ of a contract or the modification 
of an existing contract does /  / does not /  / involve situations or 
relationships of the type set forth in 48 CFR 2009.570-3(b).
    (a) If the representation, as completed, indicates that situations 
or relationships of the type set forth in 48 CFR 2009.570-3(b) are 
involved, or the contracting officer otherwise determines that potential 
organizational conflicts of interest exist, the offeror shall provide a 
statement in writing which describes in a concise manner all relevant 
factors bearing on his representation to the contracting officer. If the 
contracting officer determines that organizational conflicts exist, the 
following actions may be taken:
    (1) Impose appropriate conditions which avoid such conflicts,
    (2) Disqualify the offeror, or
    (3) Determine that it is otherwise in the best interest of the 
United States to seek award of the contract under the waiver provisions 
of 48 CFR 2009-570-9.
    (b) The refusal to provide the representation required by 48 CFR 
2009.570-4(b), or upon request of the contracting officer, the facts 
required by 48 CFR 2009.570-3(b), must result in disqualification of the 
offeror for award.

[[Page 602]]

                           (End of Provision)



Sec. 2052.209-73  Contractor organizational conflicts of interest.

    As prescribed at 2009.570-5(a) and 2009-570-8, insert the following 
clause in all applicable solicitations and contracts:

             Contractor Organizational Conflicts of Interest

    (a) Purpose. The primary purpose of this clause is to aid in 
ensuring that the contractor:
    (1) Is not placed in a conflicting role because of current or 
planned interests (financial, contractual, organizational, or otherwise) 
which relate to the work under this contract; and
    (2) Does not obtain an unfair competitive advantage over other 
parties by virtue of its performance of this contract.
    (b) Scope. The restrictions described apply to performance or 
participation by the contractor, as defined in 48 CFR 2009.570-2 in the 
activities covered by this clause.
    (c) Work for others.
    (1) Notwithstanding any other provision of this contract, during the 
term of this contract the contractor agrees to forgo entering into 
consulting or other contractual arrangements with any firm or 
organization, the result of which may give rise to a conflict of 
interest with respect to the work being performed under this contract. 
The contractor shall ensure that all employees under this contract abide 
by the provision of this clause. If the contractor has reason to believe 
with respect to itself or any employee that any proposed consultant or 
other contractual arrangement with any firm or organization may involve 
a potential conflict of interest, the contractor shall obtain the 
written approval of the contracting officer before the execution of such 
contractual arrangement.
    (2) The contractor may not represent, assist, or otherwise support 
an NRC licensee or applicant undergoing an NRC audit, inspection, or 
review where the activities that are the subject of the audit, 
inspection or review are the same as or substantially similar to the 
services within the scope of this contract (or task order as 
appropriate), except where the NRC licensee or applicant requires the 
contractor's support to explain or defend the contractor's prior work 
for the utility or other entity which NRC questions.
    (3) When the contractor performs work for the NRC under this 
contract at any NRC licensee or applicant site, the contractor shall 
neither solicit nor perform work in the same or similar technical area 
for that licensee or applicant organization for a period commencing with 
the award of the task order or beginning of work on the site (if not a 
task order contract) and ending one year after completion of all work 
under the associated task order, or last time at the site (if not a task 
order contract).
    (4) When the contractor performs work for the NRC under this 
contract at any NRC licensee or applicant site,
    (i) The contractor may not solicit work at that site for that 
licensee or applicant during the period of performance of the task order 
or the contract, as appropriate.
    (ii) The contractor may not perform work at that site for that 
licensee or applicant during the period of performance of the task order 
or the contract, as appropriate, and for one year thereafter.
    (iii) Notwithstanding the foregoing, the contracting officer may 
authorize the contractor to solicit or perform this type of work (except 
work in the same or similar technical area) if the contracting officer 
determines that the situation will not pose a potential for technical 
bias or unfair competitive advantage.
    (d) Disclosure after award.
    (1) The contractor warrants that to the best of its knowledge and 
belief, and except as otherwise set forth in this contract, it does not 
have any organizational conflicts of interest as defined in 48 CFR 
2009.570-2.
    (2) The contractor agrees that, if after award, it discovers 
organizational conflicts of interest with respect to this contract, it 
shall make an immediate and full disclosure in writing to the 
contracting officer. This statement must include a description of the 
action which the contractor has taken or proposes to take to avoid or 
mitigate such conflicts. The NRC may, however, terminate the contract if 
termination is in the best interest of the government.
    (3) It is recognized that the scope of work of a task-order-type 
contract necessarily encompasses a broad spectrum of activities. 
Consequently, if this is a task-order-type contract, the contractor 
agrees that it will disclose all proposed new work involving NRC 
licensees or applicants which comes within the scope of work of the 
underlying contract. Further, if this contract involves work at a 
licensee or applicant site, the contractor agrees to exercise diligence 
to discover and disclose any new work at that licensee or applicant 
site. This disclosure must be made before the submission of a bid or 
proposal to the utility or other regulated entity and must be received 
by the NRC at least 15 days before the proposed award date in any event, 
unless a written justification demonstrating urgency and due diligence 
to discover and disclose is provided by the contractor and approved by 
the contracting officer. The disclosure must include the statement of 
work, the dollar value of the proposed contract, and any other documents 
that are needed to fully describe the proposed work for the regulated 
utility or other

[[Page 603]]

regulated entity. NRC may deny approval of the disclosed work only when 
the NRC has issued a task order which includes the technical area and, 
if site-specific, the site, or has plans to issue a task order which 
includes the technical area and, if site-specific, the site, or when the 
work violates paragraphs (c)(2), (c)(3) or (c)(4) of this section.
    (e) Access to and use of information.
    (1) If in the performance of this contract, the contractor obtains 
access to information, such as NRC plans, policies, reports, studies, 
financial plans, internal data protected by the Privacy Act of 1974 (5 
U.S.C. Section 552a (1988)), or the Freedom of Information Act (5 U.S.C. 
Section 552 (1986)), the contractor agrees not to:
    (i) Use this information for any private purpose until the 
information has been released to the public;
    (ii) Compete for work for the Commission based on the information 
for a period of six months after either the completion of this contract 
or the release of the information to the public, whichever is first;
    (iii) Submit an unsolicited proposal to the Government based on the 
information until one year after the release of the information to the 
public; or
    (iv) Release the information without prior written approval by the 
contracting officer unless the information has previously been released 
to the public by the NRC.
    (2) In addition, the contractor agrees that, to the extent it 
receives or is given access to proprietary data, data protected by the 
Privacy Act of 1974 (5 U.S.C. section 552a (1988)), or the Freedom of 
Information Act (5 U.S.C. section 552 (1986)), or other confidential or 
privileged technical, business, or financial information under this 
contract, the contractor shall treat the information in accordance with 
restrictions placed on use of the information.
    (3) Subject to patent and security provisions of this contract, the 
contractor shall have the right to use technical data it produces under 
this contract for private purposes provided that all requirements of 
this contract have been met.
    (f) Subcontracts. Except as provided in 48 CFR 2009.570-2, the 
contractor shall include this clause, including this paragraph, in 
subcontracts of any tier. The terms contract, contractor, and 
contracting officer, must be appropriately modified to preserve the 
Government's rights.
    (g) Remedies. For breach of any of the above restrictions, or for 
intentional nondisclosure or misrepresentation of any relevant interest 
required to be disclosed concerning this contract or for such erroneous 
representations that necessarily imply bad faith, the Government may 
terminate the contract for default, disqualify the contractor from 
subsequent contractual efforts, and pursue other remedies permitted by 
law or this contract.
    (h) Waiver. A request for waiver under this clause must be directed 
in writing to the contracting officer in accordance with the procedures 
outlined in 48 CFR 2009.570-9.
    (i) Follow-on effort. The contractor shall be ineligible to 
participate in NRC contracts, subcontracts, or proposals therefor 
(solicited or unsolicited), which stem directly from the contractor's 
performance of work under this contract. Furthermore, unless so directed 
in writing by the contracting officer, the contractor may not perform 
any technical consulting or management support services work or 
evaluation activities under this contract on any of its products or 
services or the products or services of another firm if the contractor 
has been substantially involved in the development or marketing of the 
products or services.
    (1) If the contractor, under this contract, prepares a complete or 
essentially complete statement of work or specifications, the contractor 
is not eligible to perform or participate in the initial contractual 
effort which is based on the statement of work or specifications. The 
contractor may not incorporate its products or services in the statement 
of work or specifications unless so directed in writing by the 
contracting officer, in which case the restrictions in this paragraph do 
not apply.
    (2) Nothing in this paragraph precludes the contractor from offering 
or selling its standard commercial items to the Government.

                             (End of Clause)



Sec. 2052.210-70  Brand name products or equal.

    As prescribed at 2010.004, insert the following clause in applicable 
solicitations and contracts:

                      Brand Name Products or Equal

    Offers (proposers) offering other than brand name items identified 
herein should furnish with their offers adequate information to ensure 
that a determination can be made as to quality of the product(s) 
offered.



Sec. 2052.210-71  Drawings, designs, specifications, and other data.

    As prescribed at 2010.011, the following clause shall be submitted 
in applicable solicitations and contracts:

            Drawings, Designs, Specifications, and Other Data

    All drawings, sketches, designs, design data, specifications, 
notebooks, technical and scientific data, and all photographs, 
negatives, reports, findings, recommendations,

[[Page 604]]

other data and memoranda of every description relating thereto, as well 
as all copies of the foregoing relating to the work or any part thereto, 
are subject to inspection by the Commission at all reasonable times. 
Inspection of the proper facilities must be afforded the Commission by 
the contractor and its subcontractors. These data are the property of 
the Government and may be used by the Government for any purpose 
whatsoever without any claim on the part of the contractor and its 
subcontractors and vendors for additional compensation and must, subject 
to the right of the contractor to retain a copy of the material for its 
own use, be delivered to the Government, or otherwise disposed of by the 
contractor as the contracting officer may direct during the progress of 
the work or upon completion or termination of this contract. The 
contractor's right of retention and use is subject to the security, 
patent, and use of information provisions, if any, of this contract.

                             (End of Clause)



Sec. 2052.212-70  Preparation of technical reports.

    As prescribed at 2012.104-70(a), insert the clause in applicable 
solicitations and contracts:

                    Preparation of Technical Reports

    All technical reports required by Section C and all Technical 
Progress Reports required by Section F are to be prepared in accordance 
with the attached Management Directive 3.8, ``Unclassified Contractor 
and Grantee Publications in the NUREG Series.'' Management Directive 3.8 
is not applicable to any Contractor Spending Plan (CSP) and any 
Financial Status Report that may be included in this contract. (See 
Section J for List of Attachments).

                             (End of Clause)



Sec. 2052.212-71  Technical progress report.

    As prescribed at 2012.104-70(b), insert the following clause in 
applicable solicitations and contracts:

                        Technical Progress Report

    The contractor shall provide a monthly Technical Progress Report to 
the project officer and the contracting officer. The report is due 
within 15 calendar days after the end of the report period and must 
identify the title of the project, the contract number, Financial 
Identification Number (FIN), project manager and/or principal 
investigator, the contract period of performance, and the period covered 
by the report. Each report must include the following for each discrete 
task/task order:
    (a) A listing of the efforts completed during the period, and 
milestones reached or, if missed, an explanation provided;
    (b) Any problems or delays encountered or anticipated and 
recommendations for resolution. If the recommended resolution involves a 
contract modification, e.g., change in work requirements, level of 
effort (cost) or schedule delay, the contractor shall submit a separate 
letter to the contracting officer identifying the required change and 
estimated cost impact.
    (c) A summary of progress to date; and
    (d) Plans for the next reporting period.

                             (End of clause)



Sec. 2052.212-72  Financial status report.

    As prescribed at 2012.104-70(c), insert the following clause in 
applicable solicitations and contracts.

                         Financial Status Report

    The contractor shall provide a monthly Financial Status Report to 
the project officer and the contracting officer. The report is due 
within 15 calendar days after the end of the report period and must 
identify the title of the project, the contract number, Job Code, 
project manager and/or principal investigator, the contract period of 
performance, and the period covered by the report. Each report must 
include the following for each discrete task:
    (a) Provide total estimated cost (value) of the project as reflected 
in the contract, the amount of funds available in the contract to date, 
and the balance of funds required to complete the work as follows:
    (1) Total estimated contract amount.
    (2) Total funds obligated to date.
    (3) Total costs incurred this reporting period.
    (4) Total costs incurred to date.
    (5) Provide a detail of all direct and indirect costs incurred 
during the reporting period for the entire contract or each task, if it 
is a task ordering contract.
    (6) Balance of obligations remaining.
    (7) Balance of funds required to complete contract/task order.
    (8) Contractor Spending Plan (CSP) status:
    (i) Projected percentage of completion cumulative through the report 
period for the project/task order as reflected in the current CSP.
    (ii) Indicate if there has been a significant change in the original 
CSP projection in either dollars or percentage of completion. Identify 
the change, the reasons for the change, whether there is any projected 
overrun, and when additional funds would be required. If there have been 
no changes to the original NRC-approved CSP projections, a written 
statement to that effect is sufficient

[[Page 605]]

in lieu of submitting a detailed response to item 8.
    (9) A revised CSP is required with the Financial Status Report 
whenever the contractor or the contracting officer has reason to believe 
that the total cost for performance of this contract will be either 
greater or substantially less than what had been previously estimated.
    (b) If the data in this report indicates a need for additional 
funding beyond that already obligated, this information may only be used 
as support to the official request for funding required in accordance 
with the Limitation of Cost (LOC) Clause (FAR 52.232-20) or the 
Limitation of Funds (LOF) Clause FAR 52.232-22.

                             (End of Clause)

[57 FR 61171, Dec. 23, 1992, as amended at 58 FR 26254, May 3, 1993]



Sec. 2052.212-73  Financial status report--Alternate 1.

                  Financial Status Report--Alternate 1

    As prescribed in Sec. 2012.104-70(c), insert the following provision 
in applicable solicitations:

    The Contractor shall provide a monthly Financial Status Report to 
the Project Officer and the Contracting Officer. The report is due 
within 15 calendar days after the end of the report period and shall 
identify the title of the project, the contract number, project manager 
and/or principal investigator, the contract period of performance, and 
the period covered by the report. Each report shall include the 
following for each discrete task:
    (a) Provide total estimated cost (value) of the project as reflected 
in the contract, the amount of funds available in the contract to date, 
and the balance of funds required to complete the work as follows:
    (1) Total Estimated Contract Amount.
    (2) Total Funds Obligated to Date.
    (3) Total Costs Incurred This Reporting Period.
    (4) Total Costs Incurred to Date.
    (5) Balance of Obligations Remaining.
    (6) Balance of Funds Required To Complete Contract.
    (b) Detail of all direct and indirect costs incurred during the 
reporting period for each task.

                             [End of Clause]



Sec. 2052.214-70  Prebid conference.

    As prescribed at 2014.201-670(a), insert the following provision in 
applicable solicitations:

                            Prebid Conference

    (a) A prebid conference is scheduled for:
    Date: * * *
    Location: * * *
    Time: * * *
    (b) This conference is to afford interested parties an opportunity 
to present questions and clarify uncertainties regarding this 
solicitation. You are requested to mail written questions concerning 
those areas of uncertainty which, in your opinion, require clarification 
or correction. You are encouraged to submit your questions in writing 
not later than * working day(s) prior to the conference date. Receipt of 
late questions may result in the questions not being answered at the 
conference although they will be considered in preparing any necessary 
amendment to the solicitation. If you plan to attend the conference, 
notify * by letter or telephone *, no later than close of business *. 
Notification of your intention to attend is essential in the event the 
conference is rescheduled or canceled. (Optional statement: Due to space 
limitations, each potential bidder is limited to * representatives at 
the conference.)
    (c) Written questions must be submitted to: U.S. Nuclear Regulatory 
Commission, Division of Contracts and Property Management, Attn: * * *, 
Mail Stop * * *, Washington, DC 20555.
    (d) The envelope must be marked ``Solicitation No. * /Prebid 
Conference.''
    (e) A transcript of the conference will be furnished to all 
prospective offerors through the issuance of an amendment to the 
solicitation.
    *To be incorporated into the solicitation.



Sec. 2052.214-71  Bidder qualifications and past experiences.

    As prescribed in 2014.201-670(b), insert the following provision in 
applicable solicitations:

               Bidder Qualifications and Past Experiences

    (a) The bidder shall list * previous/current contracts for the same 
or similar products/services. This information will assist the 
contracting officer in his/her Determination of Responsibility. Lack of 
previous/current contracts for same or similar products/services or 
failure to submit this information will not necessarily result in an 
unfavorable Determination of Responsibility.
(1) Contract No.:_______________________________________________________
Name and address of Government agency or commercial entity:
 ______________________________________________________________________
 ______________________________________________________________________
 ______________________________________________________________________
Point of Contact and Telephone Number:
 ______________________________________________________________________
 ______________________________________________________________________

[[Page 606]]

(2) Contract No.:_______________________________________________________
Name and address of Government agency or commercial entity:
 ______________________________________________________________________
 ______________________________________________________________________
 ______________________________________________________________________
Point of Contact and Telephone Number:
 ______________________________________________________________________
 ______________________________________________________________________
(3) Contract No.:_______________________________________________________
Name and address of Government agency or commercial entity:
 ______________________________________________________________________
 ______________________________________________________________________
 ______________________________________________________________________
Point of Contact and Telephone Number:
 ______________________________________________________________________
 ______________________________________________________________________
    (b) The bidder shall also provide the name, title and full telephone 
number for its technical representative and contracts/business 
representative:

                      (1) Technical Representative

Name____________________________________________________________________
Title___________________________________________________________________
Telephone No. (  )______________________________________________________

                         (2) Contracts/Business

Representative Name_____________________________________________________
Title___________________________________________________________________
Telephone No. (  )______________________________________________________
    *To be incorporated into the solicitation

                           (End of Provision)



Sec. 2052.214-72  Bid evaluation.

    As prescribed at 2014.201-670(b), insert the following provision in 
applicable solicitations:

                             Bid Evaluation

    (a) Award will be made to that responsive, responsible bidder within 
the meaning of FAR subpart 9.1 whose total bid amount, as set forth by 
the bidder in Section B of this Invitation for Bid, constitutes the 
lowest overall evaluated final contract price to the Government based 
upon the requirements as set forth in the schedule. Bids will be 
evaluated for purposes of award by first ascertaining the sum of the 
total amount for each of the items specified in Section B of this 
solicitation. This will constitute the bidder's ``Total Bid Amount.''
    (b) Bidders shall insert a definite price or indicate ``no charge'' 
in the blank space provided for each item and/or sub-item listed in 
Section B. Unless expressly provided for herein, no additional charge 
will be allowed for work performed under the contract other than the 
unit prices stipulated for each such item and/or sub-item.
    (c) Any bid which is materially unbalanced as to price for the 
separate items specified in Section B of this IFB may be rejected as 
nonresponsive. An unbalanced bid is defined as one which is based on 
prices which, in the opinion of the NRC, are significantly less than 
cost for some work and/or prices that may be significantly overstated 
for other work.
    (d) Separation charges, in any form, are not solicited. Bids 
containing charges for discontinuance, termination, failure to exercise 
an option, or for any other purpose will cause the bid to be rejected as 
nonresponsive.
    (e) A preaward on-site survey of the bidder's facilities, equipment, 
etc., in accordance with FAR 9.105 and 9.106 may be made by 
representatives of the Commission for the purpose of determining whether 
the bidder is responsible within the meaning of FAR 9.1, and whether the 
bidder possesses qualifications that are conducive to the production of 
work that will meet the requirements, specifications, and provisions of 
this contract. Also, if requested by the Commission, the prospective 
contractor may be required to submit statements within * hours after 
receiving the request:
    (1) Concerning their ability to meet any of the minimum standards 
set forth in FAR 9.104,
    (2) Samples of work, and
    (3) Names and addresses of additional clients, Government agencies 
and/or commercial firms which the bidder is now doing or had done 
business with.
    (f) Notwithstanding paragraph (b) of this section, the award of any 
contract resulting from this solicitation will be made on an ``all or 
none'' basis. Thus, bids submitted on fewer than the items listed in 
Section B of this IFB, or on fewer than the estimated quantity, will 
cause the bid to be rejected as nonresponsive.
    *To be inserted into solicitation.

                           (End of Provision)



Sec. 2052.214-73  Timely receipt of bids.

    As prescribed at 2014.670(b), insert the following provision in 
applicable solicitations:

                         Timely Receipt of Bids

    Because the NRC is a secure facility with perimeter access control, 
bidders shall allow additional time for hand delivery (including express 
mail and delivery services) of bids to ensure that they are timely 
received in the depository at the address shown in Item 9 on the 
Standard Form 33.

                           (End of Provision)



Sec. 2052.214-74  Disposition of bids.

    As prescribed at 2014.670(b), insert the following provision in 
applicable solicitations:

[[Page 607]]

                           Disposition of Bids

    After award of the contract, one copy of each unsuccessful bid will 
be retained by NRC's Division of Contracts and Property Management in 
accordance with the General Records Schedule 3(5)(b). Unless return of 
the additional copies of the bid is requested by the bidder upon 
submission of the bid, all other copies will be destroyed. This request 
should appear in a cover letter accompanying the bid.

                           (End of Provision)



Sec. 2052.215-70  Key personnel.

    As prescribed at 2015.407-70(a), insert the following clause in 
applicable solicitations and contracts:

                              Key Personnel

    (a) The following individuals are considered to be essential to the 
successful performance of the work hereunder:
    * * *
    The contractor agrees that personnel may not be removed from the 
contract work or replaced without compliance with paragraphs (b) and (c) 
of this section.
    (b) If one or more of the key personnel, for whatever reason, 
becomes, or is expected to become, unavailable for work under this 
contract for a continuous period exceeding 30 work days, or is expected 
to devote substantially less effort to the work than indicated in the 
proposal or initially anticipated, the contractor shall immediately 
notify the contracting officer and shall, subject to the concurrence of 
the contracting officer, promptly replace the personnel with personnel 
of at least substantially equal ability and qualifications.
    (c) Each request for approval of substitutions must be in writing 
and contain a detailed explanation of the circumstances necessitating 
the proposed substitutions. The request must also contain a complete 
resume for the proposed substitute and other information requested or 
needed by the contracting officer to evaluate the proposed substitution. 
The contracting officer or his/her authorized representative shall 
evaluate the request and promptly notify the contractor of his or her 
approval or disapproval in writing.
    (d) If the contracting officer determines that suitable and timely 
replacement of key personnel who have been reassigned, terminated, or 
have otherwise become unavailable for the contract work is not 
reasonably forthcoming, or that the resultant reduction of productive 
effort would be so substantial as to impair the successful completion of 
the contract or the service order, the contract may be terminated by the 
contracting officer for default or for the convenience of the 
Government, as appropriate. If the contracting officer finds the 
contractor at fault for the condition, the contract price or fixed fee 
may be equitably adjusted downward to compensate the Government for any 
resultant delay, loss, or damage.

                             (End of Clause)

    *To be incorporated into any resultant contract



Sec. 2052.215-71  Project officer authority.

    As prescribed in 2015.70(a)(2)(i), insert the following clause in 
applicable solicitations and contracts:

                        Project Officer Authority

    (a) The contracting officer's authorized representative hereinafter 
referred to as the project officer for this contract is:
    Name: * * *
    Address: * * *
    Telephone Number: * * *
    (b) Performance of the work under this contract is subject to the 
technical direction of the NRC project officer. The term technical 
direction is defined to include the following:
    (1) Technical direction to the contractor which shifts work emphasis 
between areas of work or tasks, fills in details, or otherwise serves to 
accomplish the contractual statement of work.
    (2) Provide advice and guidance to the contractor in the preparation 
of drawings, specifications, or technical portions of the work 
description.
    (3) Review and, where required by the contract, approval of 
technical reports, drawings, specifications, and technical information 
to be delivered by the contractor to the Government under the contract.
    (c) Technical direction must be within the general statement of work 
stated in the contract. The project officer does not have the authority 
to and may not issue any technical direction which:
    (1) Constitutes an assignment of work outside the general scope of 
the contract.
    (2) Constitutes a change as defined in the ``Changes'' clause of 
this contract.
    (3) In any way cause an increase or decrease in the total estimated 
contract cost, the fixed fee, if any, or the time required for contract 
performance.
    (4) Changes any of the expressed terms, conditions, or 
specifications of the contract.
    (5) Terminates the contract, settles any claim or dispute arising 
under the contract, or issues any unilateral directive whatever.
    (d) All technical directions must be issued in writing by the 
project officer or must be confirmed by the project officer in writing 
within ten (10) working days after verbal issuance. A copy of the 
written direction must be furnished to the contracting officer.
    (e) The contractor shall proceed promptly with the performance of 
technical directions

[[Page 608]]

duly issued by the project officer in the manner prescribed by this 
clause and within the project officer's authority under the provisions 
of this clause.
    (f) If, in the opinion of the contractor, any instruction or 
direction issued by the project officer is within one of the categories 
as defined in paragraph (c) of this section, the contractor may not 
proceed but shall notify the contracting officer in writing within five 
(5) working days after the receipt of any instruction or direction and 
shall request the contracting officer to modify the contract 
accordingly. Upon receiving the notification from the contractor, the 
contracting officer shall issue an appropriate contract modification or 
advise the contractor in writing that, in the contracting officer's 
opinion, the technical direction is within the scope of this article and 
does not constitute a change under the ``Changes'' clause.
    (g) Any unauthorized commitment or direction issued by the project 
officer may result in an unnecessary delay in the contractor's 
performance and may even result in the contractor expending funds for 
unallowable costs under the contract.
    (h) A failure of the parties to agree upon the nature of the 
instruction or direction or upon the contract action to be taken with 
respect thereto is subject to 52.233-1--Disputes.
    (i) In addition to providing technical direction as defined in 
paragraph (b) of the section, the project officer shall:
    (1) Monitor the contractor's technical progress, including 
surveillance and assessment of performance, and recommend to the 
contracting officer changes in requirements.
    (2) Assist the contractor in the resolution of technical problems 
encountered during performance.
    (3) Review all costs requested for reimbursement by the contractor 
and submit to the contracting officer recommendations for approval, 
disapproval, or suspension of payment for supplies and services required 
under this contract.
    *To be incorporated into any resultant contract.

                             (End of Clause)



Sec. 2052.215-72  Project officer authority--Alternate 1.

    As prescribed at 2015.407-70(2)(ii), insert the following clause in 
applicable solicitations and contracts:

                 Project Officer Authority--Alternate 1

    (a) The contracting officer's authorized representative, hereinafter 
referred to as the project officer for this contract is:
    Name: * * *
    Address: * * *
    Telephone Number: * * *
    (b) The project officer shall:
    (1) Place delivery orders for items required under this contract.
    (2) Monitor contractor performance and recommend to the contracting 
officer changes in requirements.
    (3) Inspect and accept products/services provided under the 
contract.
    (4) Review all contractor invoices/vouchers requesting payment for 
products/services provided under the contract and make recommendations 
for approval, disapproval, or suspension.
    (c) The project officer may not make changes to the express terms 
and conditions of this contract.
    *To be incorporated into any resultant contract

                             (End of Clause)



Sec. 2052.215-73  Project officer authority--Alternate 2.

    As prescribed at 2015.407-70(a) for solicitations for fixed price 
contracts, the clause at 2052.215-72--Alternate 1 must be used with 
paragraph (b)(1) deleted and the remainder of the clause renumbered.

[58 FR 26254, May 3, 1993]



Sec. 2052.215-74  Timely receipt of proposals.

    As prescribed in 2015.407-70(a), insert the following provision in 
applicable solicitations:

                       Timely Receipt of Proposals

    Because NRC is a secure facility with perimeter access control, 
offerors shall allow additional time for hand delivery (including 
express mail and delivery services) of proposals to ensure that they are 
timely received in the depository at the address shown in Item 9 on the 
Standard Form 33.

                           (End of Provision)

[57 FR 61171, Dec. 23, 1992. Redesignated at 58 FR 26254, May 3, 1993]



Sec. 2052.215-75  Award notification and commitment of public funds.

    As prescribed at 2015.407-70(a), insert the following clause in 
applicable solicitations and contracts:

            Award Notification and Commitment of Public Funds

    (a) All offerors will be notified of their selection or nonselection 
as soon as possible.

[[Page 609]]

Formal notification of nonselection for unrestricted awards may not be 
made until a contract has been awarded. Pursuant to requirements of FAR 
15.1001(b)(2), preliminary notification will be provided before the 
award for small business set-aside procurements on negotiated 
procurements.
    (b) It is also brought to your attention that the contracting 
officer is the only individual who can legally commit the NRC to the 
expenditure of public funds in connection with this procurement. This 
means that unless provided in a contract document or specifically 
authorized by the contracting officer, NRC technical personnel may not 
issue contract modifications, give informal contractual commitments, or 
otherwise bind, commit, or obligate the NRC contractually. Informal 
contractual commitments include:
    (1) Encouraging a potential contractor to incur costs prior to 
receiving a contract;
    (2) Requesting or requiring a contractor to make changes under a 
contract without formal contract modifications;
    (3) Encouraging a contractor to incur costs under a cost-
reimbursable contract in excess of those costs contractually allowable; 
and
    (4) Committing the Government to a course of action with regard to a 
potential contract, contract change, claim, or dispute.

                             (End of Clause)

[57 FR 61171, Dec. 23, 1992. Redesignated at 58 FR 26254, May 3, 1993]



Sec. 2052.215-76  Disposition of proposals.

    As prescribed in 2015.407-70(a)(5), insert the following provision 
in applicable solicitations:

                        Disposition of Proposals

    After award of the contract, one copy of each unsuccessful proposal 
is retained by the NRC's Division of Contracts and Property Management 
in accordance with the General Records Schedule 3(5)(b). Unless return 
of the additional copies of the proposals is requested by the offeror 
upon submission of proposal, all other copies will be destroyed. This 
request should appear in a cover letter accompanying the proposal.

                           (End of Provision)

[57 FR 61171, Dec. 23, 1992. Redesignated at 58 FR 26254, May 3, 1993]



Sec. 2052.215-77  Proposal presentation and format.

    As prescribed at 2015.407-70(b), insert the following provision in 
applicable solicitations:

                    Proposal Presentation and Format

    (a) Proposals must be typed, printed, or reproduced on letter-size 
paper and each copy must be legible.
    (b) Proposals in response to this Request for Proposal must be 
submitted in the following three (3) separate and distinct parts:
    (1) Two (2) original signed copies of this solicitation package. All 
applicable sections must be completed by the offeror.
    (2) One (1) original and * copies of the ``Cost Proposal.''
    (3) One (1) original and * copies of the ``Technical and Management 
Proposal.''
    (c) Correctness of the proposal. Caution--offerors are hereby 
notified that all information provided in its proposals, including all 
resumes, must be accurate, truthful, and complete to the best of the 
offeror's knowledge and belief. The Commission will rely upon all 
representations made by the offeror both in the evaluation process and 
for the performance of the work by the offeror selected for award. The 
Commission may require the offeror to substantiate the credentials, 
education, and employment history of its employees, subcontractor 
personnel, and consultants, through submission of copies of transcripts, 
diplomas, licenses, etc.
    (d) Cost proposal.
    (1) The offeror shall use Standard Form 1411, Contract Pricing 
Proposal Cover Sheet, in submitting the Cost Proposal. A copy of the 
form and instructions are attached to this solicitation. The information 
must include pertinent details sufficient to show the elements of cost 
upon which the total cost is predicted. The Cost Proposal must be 
submitted separately from the Technical and Management Proposal.
    (2) When the offeror's estimated cost for the proposed work exceeds 
$100,000 and the duration of the contract period exceeds six months, the 
offeror shall submit a Contractor Spending Plan (CSP) as part of its 
cost proposal. Guidance for completing the CSP is attached.
    (3) For any subcontract discussed under the Technical and Management 
Proposal, provide supporting documentation on the selection process, 
i.e. competitive vs. noncompetitive, and the cost evaluation.
    (e) Technical and management proposal.
    (1) The Technical and Management Proposal may not contain any 
reference to cost. Resource information, such as data concerning labor 
hours and categories, materials, subcontracts, travel, computer time, 
etc., must be included in the Technical and Management Proposal so that 
the offeror's understanding of the scope of work may be evaluated.
    (2) The offeror shall submit with the Technical and Management 
Proposal full and complete information as set forth below to permit the 
Government to make a thorough

[[Page 610]]

evaluation and a sound determination that the proposed approach will 
have a reasonable likelihood of meeting the requirements and objectives 
of this procurement.
    (3) Statements which paraphrase the statement of work without 
communicating the specific approach proposed by the offeror or 
statements to the effect that the offeror's understanding can or will 
comply with the statement of work may be construed as an indication of 
the offeror's lack of understanding of the statement of work and 
objectives.
    (4) The Technical and Management Proposal must be tailored to assure 
that all sections reflect a one-to-one relationship to the evaluation 
criteria. The following are examples of the type of information that 
should be included in a technical and management proposal.
    (i) Discussion of the statement of work to substantiate the 
offeror's understanding of the requirement.
    (ii) Discussion of the proposed method of approach to meet the 
contract objectives.
    (iii) Discussion of potential problem areas and the approach to be 
taken to resolve these areas.
    (iv) Statements of any interpretations, requirements, or assumptions 
made by the offeror.
    (v) Discussion of support personnel and facilities available to 
assist the professional personnel.
    (iv) Identify ``Key Personnel,'' and for the person(s) so 
identified, specify the percentage of time that will be committed to 
other projects over the course of the proposed contract period of 
performance.
    (vii) Resumes for all professional personnel, including 
subcontractors and consultants, to be utilized in the performance of any 
resulting contract. Include educational background, specific pertinent 
work experience, and a list of any pertinent publications authored by 
the individual.
    (viii) Description of the source of personnel required for 
performance of each task, including those not presently employed by the 
offeror. If any of the personnel are under commitment, describe the 
terms of the commitment(s). Note specifically the personnel that will be 
employed at time of contract award.
    (ix) If the offeror plans to obtain consultant services, explain the 
need for the services. List the proposed consultants by name, describe 
the work they will perform under this contract, and include related past 
experience. Individuals who are employees of the contractor or of the 
U.S. Government are prohibited from being paid as a consultant under 
this contract.
    (x) If the offeror plans to subcontract any of the work to be 
performed, list proposed subcontractors, if known, by name. Provide a 
detailed description of the work to be performed by the subcontractor, 
and supporting documentation of technical evaluation leading to the 
selection.
    (xi) Provide a detailed schedule for work to be performed and 
identification of significant milestones and completion dates for each 
subpart or task.
    (xii) Project scheduling and contingency planning demonstrating a 
logical progression and integration of the tasks to ensure completion 
within the performance period and without program slippage.
    (xiii) Describe of the management organizational structure 
delineating areas of responsibility and authority under the proposed 
effort. Describe the relationship of the project organization to 
corporate management and to subcontractors, if any. Discuss the 
functions and authorities of the project manager.
    (xiv) Procedures to periodically review in-house organizational 
functions, program reviews and controls, subsequent coordination with 
the NRC.
    (xv) Management controls expected to be utilized to preclude a 
contract cost growth.
    (xvi) The offeror shall list of any commitments with other 
organizations, Government and/or commercial, for the same or similar 
effort.
    (xvii) List of* previous contracts for the same or similar services, 
with the name, title, and full telephone number of a contact for each.
    (xviii) List of the name, title, and full telephone number for the 
proposer's technical representative and contracts/business 
representative.
    (xix) ______ ______ ______ ______ ______ 
    * To be incorporated into the solicitation

                           (End of Provision)

[57 FR 61171, Dec. 23, 1992. Redesignated and amended at 58 FR 26254, 
May 3, 1993]



Sec. 2052.215-78  Proposal presentation and format--Alternate 1 (language for negotiated task order contracts).

    As prescribed at 2015.407-70(b)(1), paragraphs e(4)(xi) and 2(xii) 
must be deleted (and the remainder renumbered) and the following 
paragraph must be substituted for (d)(2) in provision 2052.215-77.

    (d) Cost proposal.
    (2) The offeror shall provide a cost proposal based on the estimated 
level of effort. The total estimated cost proposed by the offeror is 
used for evaluation purposes only. Any resultant contract, except a 
requirements contract, contains an overall cost ceiling whereby 
individual task orders may be issued. The

[[Page 611]]

cost and fee, if any, for each task order is individually negotiated and 
also contains a cost ceiling.

                           (End of Provision)

[58 FR 26254, May 3, 1993]



Sec. 2052.215-79  Proposal presentation and format--Alternate 2 (language for negotiated fixed prices, labor hour, or time and materials contracts).

    As prescribed at 2015.407-70(b)(2), paragraph (d)(2) shall be 
deleted from the provision 2052.215-76.

                           (End of Provision)

[57 FR 61171, Dec. 23, 1992. Redesignated at 58 FR 26254, May 3, 1993]



Sec. 2052.215-80  Preproposal conference.

    As prescribed at 2015.407-70(c), insert the following provision in 
applicable solicitations:

    (a) A preproposal conference is scheduled for:
    Date: *
    Location: *
    Time: *
    (b) This conference is to afford interested parties an opportunity 
to present questions and clarify uncertainties regarding this 
solicitation. You are requested to mail written questions concerning 
those areas of uncertainty which, in your opinion, require clarification 
or correction. You are encouraged to submit your questions in writing 
not later than * working day(s) prior to the conference date. Receipt of 
late questions may result in the questions not being answered at the 
conference although they will be considered in preparing any necessary 
amendment to the solicitation. If you plan to attend the conference, 
notify * by letter or telephone *, no later than close of business *. 
Notification of your intention to attend is essential in the event the 
conference is rescheduled or canceled. (Optional statement: Due to space 
limitations, each potential proposer is limited to * representatives at 
the conference.)
    (c) Written questions must be submitted to: U.S. Nuclear Regulatory 
Commission, Division of Contracts and Property Management, ATTN: *, Mail 
Stop *, Washington, DC 20555.
    (d) The envelope must be marked ``Solicitation No. */Preproposal 
Conference.''
    (e) A transcript of the conference will be furnished to all 
prospective offerors through the issuance of an amendment to the 
solicitation.
    *To be incorporated into the solicitation.

                           (End of Provision)

[57 FR 61171, Dec. 23, 1992. Redesignated at 58 FR 26254, May 3, 1993]



Sec. 2052.215-81  Travel reimbursement.

    As prescribed at 2015.407-70(d), insert the clauses or alternate in 
applicable solicitations and contracts:

                          Travel Reimbursement

    (a) Total expenditure for domestic travel may not exceed *________ 
without the prior approval of the contracting officer.
    (b) The contractor is encouraged to use Government contract 
airlines, AMTRAK rail services, and discount hotel/motel properties in 
order to reduce the cost of travel under this contract. The contracting 
officer shall, upon request, provide each traveler with a letter of 
identification which is required in order to participate in this 
program. The Federal Travel Directory (FTD) identifies carriers, 
contract fares, schedules, payment conditions, and hotel/motel 
properties which offer their services and rates to Government contractor 
personnel traveling on official business under this contract. The FTD, 
which is issued monthly, may be purchased from the U.S. Government 
Printing Office, Washington, DC 20402.
    (c) The contractor will be reimbursed for reasonable travel costs 
incurred directly and specifically in the performance of this contract. 
The cost limitations for travel costs are determined in accordance with 
the specific travel regulations cited in FAR 31.205-46, as are in effect 
on the date of the trip. Travel costs for research and related 
activities performed at State and nonprofit institutions, in accordance 
with section 12 of Public Law 100-679, shall be charged in accordance 
with the contractor's institutional policy to the degree that the 
limitations of Office of Management and Budget (OMB) guidance are not 
exceeded. Applicable guidance documents include OMB Circular A-87, Cost 
Principles for State and Local Governments; OMB Circular A-122, Cost 
principles for Nonprofit Organizations; and OMB Circular A-21, Cost 
Principles for Educational Institutions.
    (d) When the Government changes the Federal Travel Regulations, or 
other applicable regulations, it is the responsibility of the contractor 
to notify the contracting officer in accordance with the Limitations of 
Cost clause of this contract if the contractor will be unable to make 
all of the approved trips and remain within the cost and fee limitations 
of this contract due to the changes.
    *To be incorporated into any resultant contract.

[[Page 612]]

                             (End of Clause)

[57 FR 61171, Dec. 23, 1992. Redesignated at 58 FR 26254, May 3, 1993]
2052.215-82  Travel reimbursement--Alternate 1.



Sec. 2052.215-83  Travel approvals.

    As prescribed in 2015.407-70(d), insert the following clause in 
applicable solicitations and contracts:

                            Travel Approvals

    (a) All domestic travel requires the prior approval of the project 
officer.
    (b) All foreign travel must be approved in advance by the NRC on NRC 
Form 445 and must be in compliance with FAR 52.247-63, Preference for 
U.S. Flag Air Carriers. Foreign travel approval must be communicated in 
writing through the contracting officer.

                             (End of Clause)

    As prescribed at 2015.407-70(d) for contracts where there is no 
ceiling amount on domestic travel, delete paragraph (a) of 2052.215-81 
and renumber the remainder of the clause.

                           (End of Provision)

[58 FR 26254, May 3, 1993]



Sec. 2052.215.84  Contract award and evaluation of proposals technical merit more important than cost.

    As prescribed in 2015.670(a), insert the following provision in 
applicable solicitations:

               Contract Award and Evaluation of Proposals

    (a) By use of numerical and narrative scoring techniques, proposals 
are evaluated against the evaluation factors specified in paragraph * 
below. These factors are listed in their relative order of importance. 
Award is made to the offeror:
    (1) Whose proposal is technically acceptable;
    (2) Whose technical/cost relationship is most advantageous to the 
Government; and
    (3) Who is considered to be responsbile within the meaning of 
Federal Acquisition Regulation Part 9.1.
    (b) Although cost is a factor in the evaluation of proposals, 
technical merit in the evaluation criteria set forth below is a more 
significant factor in the selection of a contractor. Further, to be 
selected for an award, the proposed cost must be realistic and 
reasonable.
    (c) The Government may:
    (1) Reject any or all offers if the action is in the public 
interest;
    (2) Accept other than the lowest offer; and
    (3) Waive informalities and minor irregularities in offers received.
    (d) The Government may award a contract on the basis of initial 
offers received, without discussions. Therefore, each initial offer 
should contain the offeror's best terms from a cost or price and 
technical standpoints.
    (e) A separate cost analysis is performed on each cost proposal. To 
provide a common base for evaluation of cost proposals, the level of 
effort data must be expressed in staff hours. Where a Contractor 
Spending Plan (CSP) is required by other provisions of this 
solicitation, consideration is given to the Plan for completeness, 
reasonableness, and as a measure of effective management of the effort.
    (f) In making the above determination, an analysis is performed by 
the Government that takes into consideration the results of the 
technical evaluation and cost analysis.
    * To be incorporated into the solicitation.

                           (End of Provision)

[57 FR 61171, Dec. 23, 1992. Redesignated at 58 FR 26254, May 3, 1993]



Sec. 2052.215-85  Contract award and evaluation of propsoals--cost more important than technical merit.

    As prescribed in 2015.670(a), substitute the following paragraph for 
paragraph (b) in the clause at 2052.215.82:
    (b) Although technical merit in the evaluation criteria set forth 
below is a factor in the evaluation of proposals, cost is more a 
significant factor in the selection of a contractor. Further, to be 
selected for an award, the proposed cost must be realistic and 
reasonable.

[57 FR 61171, Dec. 23, 1992. Redesignated at 58 FR 26254, May 3, 1993]



Sec. 2052.215-86  Contract award and evaluation of proposals--cost and technical merit of equal value.

    As prescribed at 2015.670a(2), substitute the following paragraph 
for paragraph (b) in the clause at 2052.215.82:
    (b) In the selection of a contractor, technical merit in the 
evaluation criteria set forth below and cost bear equal significance. To 
be selected for an award, the proposed cost must be realistic and 
reasonable.

[57 FR 61171, Dec. 23, 1992. Redesignated at 58 FR 26254, May 3, 1993]

[[Page 613]]



Sec. 2052.216-70  Level of effort.

    As prescribed at 2016.307-70(a), insert the following provision in 
applicable solicitations:

                             Level of Effort

    The NRC's estimate of the total effort for this project is 
approximately * professional and * clerical staff-years for the duration 
of this contract. This information is advisory and is not to be 
considered as the sole basis for the development of the staffing plan. 
For the purposes of the Government estimate, 2000 hours constitute a 
staff year.
    * To be incorporated into any resultant contract.

                           (End of Provision)



Sec. 2052.216-71  Indirect cost rates.

    As prescribed at 2016.307-70(b), insert the following clause in 
applicable solicitations and contracts:

                           Indirect Cost Rates

    (a) Pending the establishment of final indirect rates which must be 
negotiated based on audit of actual costs, the contractor shall be 
reimbursed for allowable indirect costs as follows:
    *
    (b) The contracting officer may adjust the above rates as 
appropriate during the term of the contract upon acceptance of any 
revisions proposed by the contractor. It is the contractor's 
responsibility to notify the contracting officer in accordance with FAR 
52.232-20, Limitation of Cost, or FAR 52.232-22, Limitation of Funds, as 
applicable, if these changes affect performance of work within the 
established cost or funding limitations.
    *To be incorporated into any resultant contract.

                             (End of Clause)



Sec. 2052.216-72  Indirect cost rates--Alternate 1.

    As prescribed at 2016.307-70(b), insert the following clause in 
applicable solicitations and contracts:

                    Indirect Cost Rates--Alternate 1

    The contractor is reimbursed for allowable indirect costs in 
accordance with the following predetermined rates:
    *To be incorporated into any resultant contract.

                             (End of Clause)



Sec. 2052.216-73  Indirect cost rates--Alternate 2.

    As prescribed at 2016.307-70(b), insert the following clause in 
applicable solicitations and contracts:

                    Indirect Cost Rates--Alternate 1

    (a) For this contract, the amount reimbursable for indirect costs is 
as follows:
    *
    (b) In the event that indirect rates developed by the cognizant 
audit activity on the basis of actual allowable costs are less than the 
ceiling rates, the rates established by the cognizant audits must apply. 
The Government may not be obligated to pay any additional amounts for 
indirect costs above the ceiling rates set forth above for the 
applicable period.
    *To be incorporated into any resultant contract.

                             (End of Clause)



Sec. 2052.216-74  Task order procedures.

    As prescribed at 2016.506-70(a), insert the following clause in 
applicable solicitations and contracts:

                          Task Order Procedures

    (a) Task order request for proposal. When a requirement within the 
scope of work for this contract is identified, the contracting officer 
shall transmit to the contractor a Task Order Request for Proposal 
(TORP) which includes the following, as appropriate:
    (1) Scope of work/meetings/travel and deliverables;
    (2) Reporting requirements;
    (3) Period of performance--place of performance;
    (4) Applicable special provisions;
    (5) Technical skills required; and
    (6) Estimated level of effort.
    (b) Task order proposal. By the date specified in the TORP, the 
contractor shall deliver to the contacting officer a written proposal 
that provides the following technical and cost information, as 
appropriate:
    (1) Technical proposal content;
    (i) A discussion of the scope of work requirements to substantiate 
the contractor's understanding of the requirements of the task order and 
the contractor's proposed method of approach to meet the objective of 
the order.
    (ii) Resumes for professional personnel proposed to be utilized in 
the performance of any resulting task order. Include educational 
background, specific pertinent work experience, and a list of any 
pertinent publications authored by the individual.

[[Page 614]]

    (iii) Identification of administrative support personnel and/or 
facilities that are needed to assist the professional personnel in 
completing work on the task order.
    (iv) Identification of ``Key Personnel'' and the number of staff 
hours that will be committed to completion of work on the task order.
    (2) Cost proposal. The contractor's cost proposal for each task 
order must be prepared using Standard Form 1411, Contract Pricing 
Proposal cover sheet. A copy of the form and instructions are attached 
to this contract. Each task order cost proposal must be fully supported 
by cost and pricing data adequate to establish the reasonableness of the 
proposed amounts. When the contractor's estimated cost for the proposed 
task order exceeds $100,000 and the period of performance exceeds six 
months, the contractor may be required to submit a Contractor Spending 
Plan (CSP) as part of its cost proposal. The TORP indicates if a CSP is 
required.
    (c) Task order award. The contractor shall perform all work 
described in definitized task orders issued by the contracting officer. 
Definitized task orders include the following:
    (1) Statement of work/meetings/travel and deliverables;
    (2) Reporting requirements;
    (3) Period of performance;
    (4) Key personnel;
    (5) Applicable special provisions; and
    (6) Total task order amount including any fixed fee.

                             (End of Clause)

[57 FR 61171, Dec. 23, 1992; 58 FR 8450, Feb. 12, 1993]



Sec. 2052.216-75  Accelerated task order procedures.

    As prescribed at 2016.506-70, insert the following clause in 
applicable solicitations and contracts:

                    Accelerated Task Order Procedures

    (a) The NRC may require the contractor to commence work before 
receipt of a definitized task order from the contracting officer. 
Accordingly, when the contracting officer verbally authorizes the work, 
the contractor shall proceed with performance of the task order subject 
to the monetary limitation established for the task order by the 
contracting officer.
    (b) When this accelerated procedure is employed by the NRC, the 
contractor agrees to begin promptly negotiating with the contracting 
officer the terms of the definitive task order and agrees to submit a 
cost proposal with supporting cost or pricing data. If agreement on a 
definitized task order is not reached by the target date mutually agreed 
upon by the contractor and contracting officer, the contracting officer 
may determine a reasonable price and/or fee in accordance with Subpart 
15.8 and Part 31 of the FAR, subject to contractor appeal as provided in 
52.233-1, Disputes. In any event, the contractor shall proceed with 
completion of the task order, subject only to the monetary limitation 
established by the contracting officer and the terms and conditions of 
the basic contract.

                             (End of Clause)



Sec. 2052.222-70  Nondiscrimination because of age.

    As prescribed at 2022.901-70, insert the following clause in 
applicable solicitations and contracts:

                    Nondiscrimination Because of Age

    It is the policy of the Executive Branch of the Government that:
    (a) Contractors and subcontractors engaged in the performance of 
Federal contracts may not, in connection with the employment, 
advancement, or discharge of employees or in connection with the terms, 
conditions, or privileges of their employment, discriminate against 
persons because of their age except upon the basis of a bona fide 
occupational qualification, retirement plan, or statutory requirements; 
and
    (b) That contractors and subcontractors, or person acting on their 
behalf, may not specify, in solicitations or advertisements for 
employees to work on Government contracts, a maximum age limit for 
employment unless the specified maximum age limit is based upon a bona 
fide occupational qualification, retirement plan, or statutory 
requirement.

                           (End of Provision)



Sec. 2052.231-70  Precontract costs.

    As prescribed in Sec. 2031.109-70, insert the following clause in 
applicable solicitations and contracts:

                            Precontract Costs

    Allowable costs under this contract must include such costs, 
incurred by the contractor in connection with the work covered by this 
contract during the period from * and including * to the effective date 
of this contract, as would have been allowable pursuant to the terms of 
this contract if this contract had been in effect during that period; 
provided, however, that the costs may not in aggregate exceed * which is 
included in the estimated cost of this contract.
    *To be incorporated into any resultant contract

[[Page 615]]

                             (End of Clause)

[57 FR 61171, Dec. 23, 1992; 58 FR 8450, Feb. 12, 1993]



Sec. 2052.235-70  Publication of research results.

    As prescribed in 2035.70, insert the following clause in applicable 
solicitations and contracts:

                     Publication of Research Results

    (a) The principal investigator(s)/contractor shall comply with the 
provisions of NRC Handbook 3.8 (formerly MC 3202) and NRC Manual Chapter 
3206 regarding publication in refereed scientific and engineering 
journals or dissemination to the public of any information, oral or 
written, concerning the work performed under this contract. Failure to 
comply with this clause shall be grounds for termination of this 
contract.
    (b) The principal investigator(s)/contractor may publish the results 
of this work in refereed scientific and engineering journals or in open 
literature and present papers at public or association meetings at 
interim stages of work, in addition to submitting to NRC the final 
reports and other deliverables required under this contract. However, 
such publication and papers shall focus on advances in science and 
technology and minimize conclusions and/or recommendations which may 
have regulatory implications.
    (c) Prior to any such publication, the contractor shall submit the 
proposed publication to the NRC Contracting Officer and Project Officer 
for review and approval.

                             (End of Clause)



Sec. 2052.235-71  Publication of research results--universities

    As prescribed at Sec. 2035-70 substitute the following paragraph (c) 
for paragraph (c) in 2052.235-70.
    (c) The principal investigator(s) shall coordinate all such 
publications with, and transmit a copy of the proposed article or paper 
to, the NRC Contracting Officer or Project Officer, prior to 
publication. The NRC agrees to review and provide comments within thirty 
(30) days after receipt of a proposed publication. However, in those 
cases where the information to be published is:
    (1) subject to Commission approval:
    (2) has not been ruled upon, or
    (3) disapproved by the Commission, the

NRC reserves the right to disapprove or delay the publication. 
``Further, if the NRC disagrees with the proposed publication for any 
reason, it reserves the right to require that any publication not 
identify the NRC's sponsorship of the work and that any associated 
publication costs shall be borne by the contractor.

                             (End of Clause)



Sec. 2052.235-72  Safety, Health, and Fire Protection.

    As prescribed in 2035.70, insert the following clause in applicable 
solicitations and contracts:

                   Safety, Health, and Fire Protection

    The contractor shall take all reasonable precautions in the 
performance of the work under this contract to protect the health and 
safety of its employees and of members of the public, including NRC 
employees and contractor personnel, and to minimize danger from all 
hazards to life and property and shall comply with all applicable 
health, safety, and fire protection regulations and requirements 
(including reporting requirements) of the Commission and the Department 
of Labor. In the event that the contractor fails to comply with these 
regulations or requirements, the contracting office may, without 
prejudice to any other legal or contractual rights of the Commission, 
issue an order stopping all or any part of the work; thereafter, a start 
order for resumption of work may be issued at the discretion of the 
contracting officer. The contractor shall make no claim for an extension 
of time or for compensation or damages by reason of, or in connection 
with, this type of work stoppage.

                             (End of Clause)

[[Page 617]]



CHAPTER 21--OFFICE OF PERSONNEL MANAGEMENT, FEDERAL EMPLOYEES GROUP LIFE 
                INSURANCE FEDERAL ACQUISITION REGULATION




                          (Parts 2100 to 2199)

  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
2101            Federal Acquisition Regulations System......         619
2102            Definitions of words and terms..............         620
2103            Improper business practices and personal 
                    conflicts of interest...................         621
2104            Administrative matters......................         621
                   SUBCHAPTER B--ACQUISITION PLANNING
2105            Publicizing contract actions................         623
2106            Competition requirements....................         623
2109            Contractor qualifications...................         623
2110            Specifications, standards, and other 
                    purchase descriptions...................         624
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
2114            Sealed bidding..............................         626
2115            Contracting by negotiation..................         626
2116            Types of contracts..........................         629
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
2122            Application of labor laws to government 
                    acquisitions............................         630
2124            Protection of privacy and freedom of 
                    information.............................         630
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
2128            Bonds and Insurance.........................         631
2129            Taxes.......................................         631

[[Page 618]]

2131            Contract cost principles and procedures.....         632
2132            Contract financing..........................         634
2133            Protests, disputes, and appeals.............         635
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
2137            Service contracting.........................         636
                    SUBCHAPTER G--CONTRACT MANAGEMENT
2143            Contract modifications......................         637
2144            Subcontracting policies and procedures......         637
2146            Quality Assurance...........................         637
2149            Termination of contracts....................         638
                     SUBCHAPTER H--CLAUSES AND FORMS
2152            Precontract provisions and contract clauses.         640

[[Page 619]]



                          SUBCHAPTER A--GENERAL





PART 2101--FEDERAL ACQUISITION REGULATIONS SYSTEM--Table of Contents




              Subpart 2101.1--Purpose, Authority, Issuance

Sec.
2101.101  Purpose.
2101.102  Authority.
2101.103  Applicability.
2101.104  Issuance.
2101.104-1  Publication and code arrangement.
2101.104-2  Arrangement of regulations.

             Subpart 2101.3--Agency Acquisition Regulations

2101.301  Policy.
2101.370  Effective date of LIFAR amendments.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40372, July 28, 1993, unless otherwise noted.



              Subpart 2101.1--Purpose, Authority, Issuance



Sec. 2101.101  Purpose.

    (a) This subpart establishes Chapter 21, Office of Personnel 
Management Federal Employees' Group Life Insurance Federal Acquisition 
Regulation, within title 48, the Federal Acquisition Regulations System, 
of the Code of Federal Regulations. The short title of this regulation 
shall be LIFAR.
    (b) The purpose of the LIFAR is to implement and supplement the 
Federal Acquisition Regulation (FAR) specifically for acquiring and 
administering a contract, or contracts, for life insurance under the 
Federal Employees' Group Life Insurance (FEGLI) Program.



Sec. 2101.102  Authority.

    (a) The LIFAR is issued by the Director of the Office of Personnel 
Management in accordance with the authority of 5 U.S.C. Chapter 87 and 
other applicable laws and regulations.
    (b) The LIFAR does not replace or incorporate regulations found at 5 
CFR Parts 870 through 874, which provide the substantive policy guidance 
for administration of the FEGLI program under 5 U.S.C. chapter 87. The 
following is the order of precedence in interpreting a contract 
provision under the FEGLI Program:
    (1) 5 U.S.C. chapter 87.
    (2) 5 CFR parts 870 through 874.
    (3) 48 CFR chapters 1 and 21.
    (4) The FEGLI Program contract.



Sec. 2101.103  Applicability.

    The FAR is generally applicable to contracts negotiated in the FEGLI 
Program pursuant to 5 U.S.C. chapter 87. The LIFAR implements and 
supplements the FAR where necessary to identify basic and significant 
acquisition policies unique to the FEGLI Program.



Sec. 2101.104  Issuance.



Sec. 2101.104-1  Publication and code arrangement.

    (a) The LIFAR and its subsequent changes are published in:
    (1) Daily issues of the Federal Register; and
    (2) The Code of Federal Regulations, in cumulative form.
    (b) The LIFAR is issued as chapter 21 of title 48 of the Code of 
Federal Regulations.



Sec. 2101.104-2  Arrangement of regulations.

    (a) General. The LIFAR conforms with the arrangement and numbering 
system prescribed by FAR 1.104 and 1.303. However, when a FAR part or 
subpart is adequate for use without further OPM implementation or 
supplementation, there will be no corresponding LIFAR part, subpart, 
etc. The LIFAR is to be used in conjunction with the FAR and the order 
for use is:
    (1) FAR;
    (2) LIFAR.
    (b) Citation. (1) In formal documents, such as legal briefs, 
citation of Chapter 21 material that has been published in the Federal 
Register will be to title 48 of the Code of Federal Regulations.
    (2) In informal documents, any section of chapter 21 may be 
identified as

[[Page 620]]

``LIFAR'' followed by the section number.



             Subpart 2101.3--Agency Acquisition Regulations



Sec. 2101.301  Policy.

    (a) Procedures, contract clauses, and other aspects of the 
acquisition process for contracts in the FEGLI Program shall be 
consistent with the principles of the FAR. Changes to the FAR that are 
otherwise authorized by statute or applicable regulation, dictated by 
the practical realities associated with certain unique aspects of life 
insurance, or necessary to satisfy specific needs of the Office of 
Personnel Management, to the extent not otherwise regulated in the FAR, 
shall be implemented as amendments to the LIFAR and published in the 
Federal Register, or as deviations to the FAR in accordance with FAR 
subpart 1.4.
    (b) Internal procedures, instructions, and guides which are 
necessary to clarify or implement the LIFAR within OPM may be issued by 
agency officials designated by the Director, OPM. Normally, such 
designations will be specified in the OPM Administrative Manual, which 
is routinely available to agency employees and will be made available to 
interested outside parties upon request. Clarifying or implementing 
procedures, instructions, and guides issued pursuant to this section of 
the LIFAR must:
    (1) Be consistent with the policies and procedures contained in this 
regulation as implemented and supplemented from time to time; and
    (2) Follow the format, arrangement, and numbering system of this 
regulation to the extent practicable.



Sec. 2101.370  Effective date of LIFAR amendments.

    (a) Except as provided in paragraphs (b) and (c) of this section, an 
amendment to the LIFAR is effective when promulgated or as provided in 
the amendment.
    (b) Except as provided in paragraphs (c) and (d) of this section, if 
the LIFAR is amended in a manner which would increase the 
contractor's(s') costs or liabilities under the contract(s), the 
amendment will be made effective the October 1 subsequent to the 
amendment's promulgation, unless the contractor(s) agree(s) in writing 
to an earlier date.
    (c) Except as provided for in paragraph (d) of this section, if the 
LIFAR is amended between July 31 and October 1 in a manner which would 
increase the contractor's(s') costs or liabilities under the 
contract(s), the amendment will not be effective until the October 1 in 
the year following the amendment's promulgation, unless the 
contractor(s) agree(s) in writing to an earlier date.
    (d) Paragraphs (b) and (c) of this section are not applicable to 
amendments that are necessary to implement new or existing legislation.



PART 2102--DEFINITIONS OF WORDS AND TERMS--Table of Contents




    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.



                       Subpart 2102.1--Definitions



Sec. 2102.101  Definitions.

    In this chapter, unless otherwise indicated, the following terms 
have the meaning set forth in this subpart.
    Contract means a policy or policies of group life and accidental 
death and dismemberment insurance to provide the benefits specified by 5 
U.S.C. chapter 87.
    Contractor means an insurance company contracted to provide the 
benefits specified by 5 U.S.C. chapter 87.
    Director means the Director of the Office of Personnel Management.
    Employees' Life Insurance Fund means the trust fund established 
under 5 U.S.C. 8714.
    FEGLI Program means the Federal Employees' Group Life Insurance 
Program.
    Fixed price with limited cost redetermination plus fixed fee 
contract means a contract which provides for:
    (1) A fixed price during the contract year with a cost element that 
is adjusted at the end of the contract term based on costs incurred 
under the contract; and
    (2) A profit or fee that is fixed at the beginning of the contract 
term. The amount of adjustment for costs is limited to the amount in the 
Employees'

[[Page 621]]

Life Insurance Fund. The fee will be in the form of either a risk charge 
or a service charge.
    Insurance company, as provided in 5 U.S.C. 8709, means a company 
licensed to transact life and accidental death and dismemberment 
insurance under the laws of all the States and the District of Columbia. 
It must have in effect, on the most recent December 31 for which 
information is available to the Office of Personnel Management, an 
amount of employee group life insurance equal to at least 1 percent of 
the total amount of employee group life insurance in the United States 
in all life insurance companies.
    OPM means the Office of Personnel Management.
    Reinsurer means a company that reinsures portions of the total 
amount of insurance under the contract as specified in 5 U.S.C. 8710 and 
is not an agent or representative of the contractor.
    Subcontract means a contract entered into by any subcontractor that 
furnishes supplies or services for performance of a prime contract under 
the FEGLI Program. Except for the purpose of FAR Subpart 22.8--Equal 
Employment Opportunity, the term ``subcontract'' does not include a 
contract with a reinsurer under the FEGLI Program.
    Subcontractor means any supplier, distributor, vendor, or firm that 
furnishes supplies or services to or for a prime contractor under the 
FEGLI Program contract. Except for the purpose of FAR Subpart 22.8--
Equal Employment Opportunity, the term ``subcontractor'' does not 
include reinsurers under the FEGLI Program.

[58 FR 40373, July 28, 1993]



PART 2103--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents




            Subpart 2103.5--Other Improper Business Practices

Sec.
2103.570  Misleading, Deceptive, or Unfair Advertising.
2103.571  Contract clause.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40373, July 28, 1993, unless otherwise noted.



            Subpart 2103.5--Other Improper Business Practices



Sec. 2103.570  Misleading, Deceptive, or Unfair Advertising.

    (a) OPM prepares and makes available to enrolled Federal employees a 
booklet describing the provisions of the FEGLI Program which includes 
information about eligibility, enrollment, and general procedures. The 
booklet also operates as a certification of the employee's enrollment in 
the FEGLI Program. Because all necessary information is made available 
by OPM, advertising directed specifically at Federal employees and life 
insurance agent contacts with Federal employees for the purpose of 
selling FEGLI Program coverage are prohibited.
    (b) The contractor is prohibited from making incomplete, incorrect 
comparisons or using disparaging or minimizing techniques to compare its 
other products or services to the benefits of the FEGLI Program. The 
contractor agrees that any advertising material authorized and released 
by the contractor which mentions the FEGLI Program shall be truthful and 
not misleading, and shall present an accurate statement of FEGLI Program 
benefits. The contractor will use its best efforts to assure that its 
life insurance agents are aware of and abide by this prohibition.
    (c) The contractor's failure to conform to the requirements of this 
subpart shall be considered by OPM in the determination of the service 
charge prenegotiation objective.



Sec. 2103.571  Contract clause.

    The clause at 2152.203-70 shall be inserted in FEGLI Program 
contracts and in subcontracts.



PART 2104--ADMINISTRATIVE MATTERS--Table of Contents




              Subpart 2104.7--Contractor Records Retention

Sec.
2104.703  Policy.

[[Page 622]]

          Subpart 2104.70--Designation of Authorized Personnel

2104.7001  Designation of authorized personnel.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40373, July 28, 1993, unless otherwise noted.



              Subpart 2104.7--Contractor Records Retention



Sec. 2104.703  Policy.

    In view of the unique payment schedules of FEGLI Program contracts 
and the compelling need for records retention periods sufficient to 
protect the Government's interest, contractors shall be required to 
maintain records for periods determined in accordance with the 
provisions of FAR 4.703(b)(1) and LIFAR 2115.106-270.



          Subpart 2104.70--Designation of Authorized Personnel



Sec. 2104.7001  Designation of authorized personnel.

    The contractor shall notify the contracting officer in writing of 
the name(s), title(s), and address(es) of the individual(s) authorized 
to act on behalf of the contractor regarding a LIFAR Program contract. 
The notice shall include any restriction(s) upon the authority of the 
individual(s). Any change to the notice must also be provided to the 
contracting officer in writing.

[[Page 623]]



                   SUBCHAPTER B--ACQUISITION PLANNING





PART 2105--PUBLICIZING CONTRACT ACTIONS--Table of Contents




    Authority: 5 U.S.C. 8709; 40 U.S.C. 486(c); 48 CFR 1.301.



                     Subpart 2105.70--Applicability



Sec. 2105.7001  Applicability.

    FAR part 5 has no practical application to the FEGLO Program because 
OPM does not issue solicitations. Eligible contractors (i.e., qualified 
life insurance companies) are identified in accordance with 5 U.S.C. 
8709.

[58 FR 40373, July 28, 1993]



PART 2106--COMPETITION REQUIREMENTS--Table of Contents




    Authority: 5 U.S.C. 8709; 40 U.S.C. 486(c); 48 CFR 1.301.



                     Subpart 2106.70--Applicability



Sec. 2106.7001  Applicability.

    FAR part 6 has no practical application to the FEGLI Program in view 
of the statutory exception provided by 5 U.S.C. 8709.

[58 FR 40374, July 28, 1993]



PART 2109--CONTRACTOR QUALIFICATIONS--Table of Contents




        Subpart 2109.4--Debarment, Suspension, and Ineligibility

Sec.
2109.408  Certification regarding debarment, suspension, proposed 
          debarment, and other responsibility matters.
2109.409  Certification and contract clause.

    Subpart 2109.70--Minimum Standards for FEGLI Program Contractors

2109.7001  Minimum standards for FEGLI Program contractors.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40374, July 28, 1993, unless otherwise noted.



        Subpart 2109.4--Debarment, Suspension, and Ineligibility



Sec. 2109.408  Certification regarding debarment, suspension, proposed debarment and other responsibility matters.

    FAR subpart 9.4 is implemented by changing the FAR offeror's 
certification at FAR 52.209-5 (which is part of a solicitation) to a 
pre-contract certificate and a contract clause. These provisions reflect 
the FEGLI Program's statutory exemption from competitive bidding (5 
U.S.C. 8709), which obviates the issuance of solicitations.



Sec. 2109.409  Certification and contract clause.

    (a) The contracting officer may require the precontract certificate 
in 2152.209-70 to be filed prior to or during negotiations.
    (b) The contracting officer shall insert the clause at 2152.209-71 
in all FEGLI Program contracts.



    Subpart 2109.70--Minimum Standards for FEGLI Program Contractors



Sec. 2109.7001  Minimum standards for FEGLI Program contractors.

    (a) The contractor must meet the requirements of chapter 87 of title 
5, United States Code; parts 870, 871, 872, 873, and 874 of title 5, 
Code of Federal Regulations; chapter 1 of title 48, Code of Federal 
Regulations, and the standards in this subpart. The contractor shall 
continue to meet these and the following statutory and regulatory 
requirements while under contract with OPM. Failure to meet these 
requirements and standards is cause for OPM's termination of the 
contract in accordance with part 2149 of this chapter.
    (b) The contractor must actually be engaged in the life insurance 
business and must be licensed to transact life and accidental death and 
dismemberment insurance under the laws of all the States and the 
District of Columbia at the time of application.

[[Page 624]]

    (c) The contractor must not be a Federal, State, local or 
territorial government entity.
    (d) The contractor must not be debarred, suspended or ineligible to 
participate in Government contracting or subcontracting for any reason.
    (e) The contractor must keep statistical and financial records 
regarding the FEGLI Program separate from that of all its other lines of 
business.
    (f) The contractor must enter into rate redeterminations as deemed 
necessary by OPM.
    (g) The contractor must furnish such reasonable reports as OPM 
determines are necessary to administer the FEGLI Program.
    (h) The contractor must establish and maintain a system of internal 
control that provides reasonable assurance that:
    (1) The payment of claims and other expenses is in compliance with 
legal, regulatory, and contractual guidelines;
    (2) Funds, property, and other FEGLI Program assets are safeguarded 
against waste, loss, unauthorized use, or misappropriation;
    (3) Revenues and expenditures applicable to FEGLI Program operations 
are properly recorded and accounted for to permit the preparation of 
reliable financial reporting and to maintain accountability over assets; 
and,
    (4) Data are accurately and fairly disclosed in all reports required 
by OPM.
    (i) The contractor must permit representatives of OPM and of the 
General Accounting Office to audit and examine records and accounts 
pertaining to the FEGLI Program at such reasonable times and places as 
may be designated by OPM or the General Accounting Office.



PART 2110--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE DESCRIPTIONS--Table of Contents




                Subpart 2110.70--Contract Specifications

Sec.
2110.7000  Scope of subpart.
2110.7001  Definitions.
2110.7002  Contractor investment of FEGLI Program funds.
2110.7003  Significant events.
2110.7004  Contract clauses.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40374, July 28, 1993, unless otherwise noted.



                Subpart 2110.70--Contract Specifications



Sec. 2110.7000  Scope of subpart.

    This subpart prescribes mandatory specifications for performance 
under FEGLI Program contracts.



Sec. 2110.7001  Definitions.

    Investment income, as used in this subpart, means the net amount on 
an investment of FEGLI Program funds earned by the contractor after 
deducting reasonable, necessary, and properly allocated investment 
expenses.
    Significant event, as used in this subpart, means any occurrence or 
anticipated occurrence that might reasonably be expected to have a 
material effect upon the contractor's ability to meet its obligations 
under the LIFAR.



Sec. 2110.7002  Contractor investment of FEGLI Program funds.

    (a) The contractor is required to invest and reinvest all FEGLI 
Program funds on hand, including any attributable to the special 
contingency reserve (as used in 5 U.S.C. 8712), until needed to 
discharge promptly the obligations incurred under the contract. Within 
the constraints of safety and liquidity of investments, the contractor 
shall seek to maximize investment income.
    (b) The contractor is required to credit income earned from its 
investment of FEGLI Program funds to the FEGLI Program. Thus, the 
contractor must be able to allocate investment income to the FEGLI 
Program in an appropriate manner. If the contractor fails to invest 
funds on hand, properly allocate investment income, or credit any income 
due to the contract, for whatever reason, it shall return or credit any 
investment income lost to OPM or the FEGLI Program, retroactive to the 
date that such funds should have been originally invested in accordance 
with 2152.210-70.

[[Page 625]]



Sec. 2110.7003  Significant events.

    The contractor is required to inform the contracting officer of all 
significant events.



Sec. 2110.7004  Contract clauses.

    (a) The clause at 2152.210-70 shall be inserted in all FEGLI Program 
contracts.
    (b) The clause at 2152.210-71 shall be inserted in all FEGLI Program 
contracts.

[[Page 626]]



          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES





PART 2114--SEALED BIDDING--Table of Contents




    Authority: 5 U.S.C. 8709; 40 U.S.C. 486(c); 48 CFR 1.301.



                     Subpart 2114.70--Applicability



Sec. 2114.7001  Applicability.

    FAR part 14 has no practical application to the FEGLI Program in 
view of the statutory exemption provided by 5 U.S.C. 8709, 8714a, 8714b, 
and 8714c.

[58 FR 40375, July 28, 1993]



PART 2115--CONTRACTING BY NEGOTIATION--Table of Contents




          Subpart 2115.1--General Requirements for Negotiation

Sec.
2115.106  Contract clauses.
2115.106-270  Specific retention periods.
2115.170  Negotiation authority.

  Subpart 2115.4--Solicitation and Receipt of Proposals and Quotations

2115.401  Applicability.

                    Subpart 2115.6--Source Selection

2115.602  Applicability.

                    Subpart 2115.8--Price Negotiation

2115.802  Policy.

                         Subpart 2115.9--Profit

2115.902  Policy.
2115.905  Profit analysis factors.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40375, July 28, 1993, unless otherwise noted.



          Subpart 2115.1--General Requirements for Negotiation



Sec. 2115.106  Contract clauses.



Sec. 2115.106-270  Specific retention periods.

    Unless the contracting officer determines that there exists a 
compelling reason to include only the contract clause specified by FAR 
52.215-2, ``Audit--Negotiation,'' the contracting officer shall also 
insert the clause at 2152.215-70 in all FEGLI Program contracts.



Sec. 2115.170  Negotiation authority.

    The authority to negotiate FEGLI Program contracts is conferred by 5 
U.S.C. 8709.



  Subpart 2115.4--Solicitation and Receipt of Proposals and Quotations



Sec. 2115.401  Applicability.

    (a) FAR Subpart 15.4 has no practical application to the FEGLI 
Program because OPM does not issue solicitations.
    (b) OPM will announce any opportunities to submit applications to 
provide life insurance through the FEGLI Program in insurance industry 
periodicals and other publications as deemed appropriate by OPM. The 
announcement will contain information on the address to which requests 
for application packages should be submitted and on deadline dates for 
submission of completed applications.
    (c) Eligible contractors (i.e., qualified life insurance companies) 
are identified in accordance with 5 U.S.C. 8709. Offerors voluntarily 
come forth in accordance with procedures provided in 2115.602.
    (d) OPM may approve one or more life insurance companies that, in 
its judgment, are best qualified to provide life insurance coverage to 
Federal enrollees.



                    Subpart 2115.6--Source Selection



Sec. 2115.602  Applicability.

    FAR Subpart 15.6 has no practical application to the FEGLI Program 
because prospective contractors (insurance companies) are considered for 
inclusion in the FEGLI Program in accordance with criteria provided in 5

[[Page 627]]

U.S.C. chapter 87, LIFAR 2109.7001, and the following:
    (a) Applications must be signed by an individual with legal 
authority to enter into a contract on behalf of the company for the 
dollar level of claims and expenses anticipated.
    (b) Applications will be reviewed for evidence of substantial 
compliance in the following areas:
    (1) Management: Stable management with experience pertinent to the 
life insurance industry and, in particular, large group management; 
sufficient operating experience to enable OPM to evaluate past and 
expected future performance.
    (2) Marketing: Past ability to attract and retain large group 
contracts; steady or increasing amount of group life insurance in force.
    (3) Legal expertise: Demonstrated competence in researching, 
compiling, and implementing various Federal and State laws that may 
impact payment of benefits; ability to defend legal challenges to 
payment of benefits.
    (4) Financial condition: Establishment of firm budget projections 
and demonstrated success in keeping costs at or below those projections 
on a regular basis; evidence of the ability to sustain operations in the 
future and to meet obligations under the contract OPM might enter into 
with the company; adequate reserve levels; assets exceeding liabilities.
    (5) Establishment of office: Ability to establish an administrative 
office capable of assessing, tracking, and paying claims.
    (6) Internal controls: Ability to establish and maintain a system of 
internal control that provides reasonable assurance that the payment of 
claims and other expenses will be in compliance with legal, regulatory, 
and contractual guidelines; funds, property, and other FEGLI Program 
assets will be safeguarded against waste, loss, unauthorized use, or 
misappropriation; and revenues and expenditures applicable to FEGLI 
Program operations will be properly recorded and accounted for to permit 
the preparation of timely and accurate financial reporting and to 
maintain accountability over assets.



                    Subpart 2115.8--Price Negotiation



Sec. 2115.802  Policy.

    Pricing of FEGLI Program premium rates is governed by 5 U.S.C. 8707, 
8708, 8711, 8714a, 8714b, and 8714c. FAR Subpart 15.8 shall be 
implemented by applying cost analysis policies and procedures. To the 
extent that reasonable or good faith actuarial estimates are used for 
pricing, such estimates will be deemed acceptable and, if inaccurate, 
will not constitute defective pricing.



                         Subpart 2115.9--Profit



Sec. 2115.902  Policy.

    (a) Risk charge. (1) Section 8711(d) of title 5, United States Code, 
provides for payment of a risk charge to FEGLI Program contractors as 
compensation for the risk assumed under the FEGLI Program. It is 
appropriate to pay such a charge when substantial risk is borne by the 
contractor; that is, when the balance in the Employees' Life Insurance 
Fund is no larger than five times annual claims.
    (2) The risk charge is determined by agreement between the 
contractor and OPM. The amount of risk charge shall be specified in the 
contract.
    (b) Waiver of the risk charge. (1) When the Fund balance is greater 
than five times annual claims, OPM and the contractor may agree that the 
contractor will relinquish the risk charge in favor of a profit 
opportunity in the form of a service charge for the contractor. The 
service charge so determined shall be the total service charge that may 
be negotiated for the contract and shall encompass any service charge 
(whether entitled service charge, profit, fee, contribution to 
surpluses, etc.) that may have been negotiated by the prime contractor 
with any subcontractor. At no time may both a risk charge and a service 
charge be paid for the same portion of a policy year.
    (2) Once agreement to relinquish the risk charge is made, the 
agreement may not be cancelled unless OPM and the contractor mutually 
agree to reinstitute payment of a risk charge; or unless the Fund 
balance falls below the level defined in 2115.902(a) and 30 days notice 
of cancellation is provided; or unless the contractor or OPM provide

[[Page 628]]

notice of cancellation for any reason 1 year prior to the date 
cancellation is sought.
    (c) Any profit prenegotiation objective (service charge) will be 
determined on the basis of a weighted guidelines structured approach.



Sec. 2115.905  Profit analysis factors.

    (a) The OPM contracting officer will apply a weighted guidelines 
method when developing the prenegotiation objective (service charge) for 
the FEGLI Program contract. In accordance with the factors defined in 
FAR 15.905-1, OPM will apply the appropriate weights derived from the 
ranges specified in paragraph (b) of this section and will determine the 
prenegotiation objective based on the contractor's Basic and Family 
Optional insurance claims paid in the previous contract year.
    (1) Contractor performance. OPM will consider such elements as the 
accurate and timely processing of benefit claims, the volume and 
validity of complaints received by OPM, effectiveness of internal 
controls systems in place, the timeliness and adequacy of reports on 
operations, and responsiveness to OPM offices, enrollees, beneficiaries, 
and Congress as measures of economical and efficient contract 
performance. This factor will be judged apart from the contractor's 
basic responsibility for contract compliance and will be a measure of 
the extent and nature of the contractor's contribution to the FEGLI 
Program through the application of managerial expertise and effort. 
Evidence of effective contract performance will receive a plus weight, 
and poor performance or failure to comply with contract terms and 
conditions a zero weight. Innovations of benefit to the FEGLI Program 
will generally receive a plus weight; documented inattention or 
indifference to effective operations, a zero weight.
    (2) Contract cost risk. OPM will evaluate the contractor's risk 
annually in relation to the amount in the Employees' Life Insurance Fund 
and will evaluate this factor accordingly.
    (3) Federal socioeconomic programs. OPM will consider documented 
evidence of successful, contractor-initiated efforts to support such 
Federal socioeconomic programs as drug and substance abuse deterrents, 
and other concerns of the type enumerated in FAR 15.905-1(c) as a factor 
in negotiating profit. This factor will be related to the quality of the 
contractor's policies and procedures and the extent of unusual effort or 
achievement demonstrated. Evidence of effective support of Federal 
socioeconomic programs will result in a plus weight; indifference to 
Federal socioeconomic programs will result in a zero weight; and only 
deliberate failure to provide opportunities to persons and organizations 
that would benefit from these programs will result in a negative weight.
    (4) Capital investments. This factor is generally not applicable to 
FEGLI Program contracts because facilities capital cost of money may be 
an allowable administrative expense. Generally, this factor shall be 
given a weight of zero. However, special purpose facilities or 
investment costs of direct benefit to the FEGLI Program that are not 
recoverable as allowable or allocable administrative expenses may be 
taken into account in assigning a plus weight.
    (5) Cost Control. This factor is based on the contractor's 
previously demonstrated ability to perform effectively and economically. 
In addition, consideration will be given to measures taken by the 
contractor that result in productivity improvements and other cost 
containment accomplishments that will be of future benefit to the FEGLI 
Program. Examples are containment of costs associated with processing 
claims; success at preventing waste, loss, unauthorized use, or 
misappropriation of FEGLI Program assets; and success at limiting and 
recovering erroneous benefit payments.
    (6) Independent Development. Consideration will be given to 
independent contractor-initiated efforts, such as the development of a 
unique and enhanced customer support system, that are of demonstrated 
value to the FEGLI Program and for which developmental costs have not 
been recovered directly or indirectly through allowable or allocable 
administrative expenses. This factor will be used to provide additional 
profit opportunities based upon an assessment of the contractor's 
investment and risk in developing techniques, methods, practices,

[[Page 629]]

etc., having viability to the Program at large. Improvements and 
innovations recognized and rewarded under any other profit factor cannot 
be considered.
    (b) The weight ranges for each factor to be used in the weighted 
guidelines approach are set forth below:

------------------------------------------------------------------------
                 Profit factor                        Weight ranges     
------------------------------------------------------------------------
1. Contractor performance......................              0 to +.0005
2. Contract cost risk..........................      +.000001 to +.00001
3. Federal socioeconomic programs..............       -.00003 to +.00003
4. Capital investment..........................             0 to +.00001
5. Cost control................................         -.0002 to +.0002
6. Independent development.....................             0 to +.00003
------------------------------------------------------------------------



PART 2116--TYPES OF CONTRACTS--Table of Contents




                Subpart 2116.1--Selecting Contract Types

Sec.
2116.105  Solicitation provision.

                  Subpart 2116.2--Fixed-Price Contracts

2116.270  FEGLI Program contracts.
2116.270-1  Contract clauses.

    Authority: 5 U.S.C. 8709; 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 
1.301.

    Source: 58 FR 40376, July 28, 1993, unless otherwise noted.



                Subpart 2116.1--Selecting Contract Types



Sec. 2116.105  Solicitation provision.

    FAR 16.105 has no practical application because the statutory 
provisions of 5 U.S.C. chapter 87 obviate the issuance of solicitations.



                  Subpart 2116.2--Fixed-Price Contracts



Sec. 2116.270  FEGLI Program contracts.

    FEGLI Program contracts will be fixed price with limited cost 
redetermination plus fixed fee. The premium to the contractor will be 
based on an estimate of benefits and administrative costs, plus the 
fixed service or risk charge, and will be determined annually. Claims 
costs, including benefits and administrative expenses, in excess of 
premiums will be paid up to the amount in the Employees' Life Insurance 
Fund. Payment for costs exceeding the amount in the Fund are the 
responsibility of the contractor and reinsurers. The fee is fixed at the 
inception of each contract year. The fee does not vary with the actual 
costs, but may be adjusted as a result of changes in the work to be 
performed under the contract. The fee will be in the form of either a 
risk charge or a service charge.
    (a) Risk charge. The risk charge will be determined as prescribed in 
5 U.S.C. 8711(d) and paragraph 2115.902(a)(2) of this subchapter. It 
will consist of a negotiated amount which will reflect the risk assumed 
by the contractor and the reinsurers and may be adjusted as a result of 
increased or decreased risk under the contract. When the applicable fee 
is a risk charge, no service charge shall be payable for the same period 
of time.
    (b) Service charge. The amount of the service charge will be 
determined using a weighted guidelines structured approach in accordance 
with 2115.905 and negotiated with the contractor at the beginning of the 
contract term. When the applicable fee is a service charge, no risk 
charge will be paid for the same portion of a policy year in which a 
service charge is paid.



Sec. 2116.270-1  Contract clauses.

    (a) The clause at 2152.216-70 shall be inserted in all FEGLI Program 
contracts when a risk charge is negotiated.
    (b) The clause at 2152.216-71 shall be inserted in all FEGLI Program 
contracts when a service charge is negotiated.

[[Page 630]]



                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS





PART 2122--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS--Table of Contents




    Authority: 5 U.S.C. 8709; 40 U.S.C. 486(c); 48 CFR 1.301.



                  Subpart 2122.1--Basic Labor Policies



Sec. 2122.170  Contract clauses.

    The provisions at FAR sections 52.222-21, 52.222-22, 52-222.25 are 
implemented by changing the word ``offeror'' to ``Contractor'' and the 
word ``solicitation'' to ``contract'' wherever they appear in the text 
to reflect the FEGLI Program's statutory exemption from competitive 
bidding (5 U.S.C. 8709), which obviates the issuance of solicitations.

[58 FR 40377, July 28, 1993]



PART 2124--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION--Table of Contents




            Subpart 2124.1--Protection of Individual Privacy

Sec.
2124.102  General.
2124.102-70  Policy.
2124.104  Contract clauses.
2124.104-70  Contract clause.

    Authority: 5 U.S.C. 8716, 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40377, July 28, 1993, unless otherwise noted.



            Subpart 2124.70--Protection of Individual Privacy

2124.102  General.



Sec. 2124.102-70  Policy.

    Records retained by FEGLI Program contractors on Federal insureds 
and members of their families serve the contractors' own commercial 
function of paying FEGLI Program claims and are not maintained to 
accomplish an agency function of OPM. Consequently, the records do not 
fall within the provisions of the Privacy Act. Nevertheless, OPM 
recognizes the need for the contractors to keep certain records 
confidential. The clause at 2152.224-70 addresses this concern.



Sec. 2124.104  Contract Clauses.



Sec. 2124.104-70  Contract clause.

    The clause at 2152.224-70 shall be inserted in all FEGLI Program 
contracts.

[[Page 631]]



             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS





PART 2128--BONDS AND INSURANCE--Table of Contents




    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.



                        Subpart 2128.3--Insurance



Sec. 2128.370  Contract clause.

    The contract clause at FAR 52.228-7 is a mandatory clause in FEGLI 
Program contracts, except paragraph (d) is modified as follows:
    (d) The Government's liability under paragraph (c) of this clause is 
limited to the amount available in the Employee's Life Insurance Fund. 
Nothing in this contract shall be construed as implying that the 
Government will make additional funds available later or that Congress 
will appropriate funds later sufficient to meet deficiencies.

[58 FR 40377, July 28, 1993]



PART 2129--TAXES--Table of Contents




                         Subpart 2129.1--General

Sec.
2129.170 Policy.

                  Subpart 2129.3--State and Local Taxes

2129.302  Application of State and local taxes to the Government.
2129.305  State and local tax exemptions.

                    Subpart 2129.4--Contract Clauses

2129.401  Domestic contracts.
2129.401-70  FEGLI Program Contract clauses.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40377, July 28, 1993, unless otherwise noted.



                         Subpart 2129.1--General



Sec. 2129.170  Policy.

    (a) OPM shall consider taxes as a FEGLI Program cost under 2131.205-
41.
    (b) For purposes of the limited cost redetermination of a FEGLI 
Program contract, taxes are not limited to those in effect as of the 
contract date, but shall include any taxes enacted, modified, or 
repealed, by legislative, judicial, or administrative means, during the 
contract year.



                  Subpart 2129.3--State and Local Taxes



Sec. 2129.302  Application of State and local taxes to the Government.

    (a) 5 U.S.C. 8714(c)(1) prohibits the imposition of taxes, fees, or 
other monetary payment on FEGLI Program premiums by any State, the 
District of Columbia, the Commonwealth of Puerto Rico, or any political 
subdivision or governmental authority of those entities.
    (b) Paragraph (a) of this section shall not be construed to exempt 
the contractor from the imposition, payment, or collection of a tax, 
fee, or other monetary payment on the net income or profit accruing to 
or realized by it from business conducted under the FEGLI Program if the 
tax, fee, or payment is applicable to a broad range of business 
activity.



Sec. 2129.305  State and local tax exemptions.

    (a) FAR 29.305 is modified for the FEGLI Program by substituting 
paragraph (b) of this section in the place of paragraph (b) of FAR 
29.305.
    (b) Furnishing proof of exemption. If a reasonable basis to sustain 
a claimed exemption exists, the seller will be furnished evidence of 
exemption if requested by the contractor and approved by the contracting 
officer or at the discretion of the contracting officer.



                    Subpart 2129.4--Contract Clauses

2129.401  Domestic contracts.



Sec. 2129.401-70  FEGLI Program contract clauses.

    The fixed-price contract clauses in FAR subpart 29.4 are 
inappropriate for the FEGLI Program because of the limited cost-
redetermination of FEGLI Program contracts. The clauses at FAR 52.229-1, 
52.229-2, 52.229-3, and

[[Page 632]]

52.229-4 shall not be inserted into FEGLI Program contracts.



PART 2131--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents




                      Subpart 2131.1--Applicability

Sec.
2131.103  Contracts with commercial organizations.
2131.109  Advance Agreements.

         Subpart 2131.2--Contracts With Commercial Organizations

2131.201  General.
2131.206-5 Credits.
2131.203  Indirect costs.
2131.205  Selected costs.
2131.205-1  Public relations and advertising costs.
2131.205-3  Bad debts.
2131.205-6  Compensation for personal services.
2131.205-32  Precontract costs.
2131.205-38  Selling costs.
2131.205-41  Taxes.
2131.205-43  Trade, business, technical and professional activity costs.
2131.205-70  Major subcontractor service charge.
2131.205-71  Reinsurer administrative expense costs.
2131.270  Contract clauses.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40378, July 28, 1993, unless otherwise noted.



                      Subpart 2131.1--Applicability



Sec. 2131.103  Contracts with Commercial Organizations.

    The contracting officer shall incorporate the cost principles and 
procedures of FAR subpart 31.2 and this part by reference in all FEGLI 
Program contracts because of the nature of a fixed price with limited 
cost redetermination plus fixed fee contract.



Sec. 2131.109  Advance agreements.

    FAR 31.109 is applicable to FEGLI Program contracts, except that 
precontract costs and nonrecurring costs that exceed $25,000 shall not 
be allowed in the absence of an advance agreement.



         Subpart 2131.2--Contracts With Commercial Organizations



Sec. 2131.201  General.



Sec. 2131.201-5  Credits.

    The provisions of FAR 31.201-5 shall apply to income, rebates and 
other credits resulting from benefit payments that include, but are not 
limited to--
    (a) Uncashed and returned checks.
    (b) Refunds attributable to litigation with regard to payments of 
FEGLI Program life insurance monies.
    (c) Erroneous benefit payment, refunds, overpayment, and duplicate 
payment recoveries.
    (d) Escheatments.



Sec. 2131.203  Indirect costs.

    The provisions of FAR 31.203 apply to the allocation of indirect 
costs by means of a ``dividend or retention formula.''



Sec. 2131.205  Selected costs.



Sec. 2131.205-1  Public relations and advertising costs.

    The provisions of FAR 31.205-1 shall be modified to include the 
following:
    (a) Costs of media messages are allowable if approved by the 
contracting officer and all of the following criteria are met:
    (1) The primary objective of the message is to disseminate 
information on general health and fitness or encouraging healthful 
lifestyles;
    (2) The costs of the contractor's messages are allocated to all 
underwritten and non-underwritten lines of business; and
    (3) The contracting officer approves the total dollar amount of the 
contractor's messages to be charged to the FEGLI Program in advance of 
the policy year.
    (b) Costs of media messages that inform enrollees about the FEGLI 
Program are allowable if approved by the contracting officer.
    (c) In those instances where contracting officer approval of the 
total dollar amount is not solicited in advance, it is incumbent upon 
the contractor to

[[Page 633]]

show the contracting officer, for subsequent approval, that the costs 
are reasonable and do not unduly burden the administrative cost to the 
contract.
    (d) Costs of messages that are intended to, or which have the 
primary effect of, calling favorable attention to the contractor or 
subcontractor for the purpose of enhancing its overall image or selling 
its product or services are not allowable.



Sec. 2131.205-3  Bad debts.

    Erroneous benefit payments. If the contractor or OPM determines that 
a FEGLI Program benefit has been paid in error for any reason, the 
contractor shall make a diligent effort to recover such erroneous 
payment from the recipient. The contracting officer shall allow an 
unrecovered erroneous payment to be charged to the contract provided the 
contractor demonstrates that the recovery of the erroneous payment was 
attempted in accordance with a system that is approved under 2146.270(b) 
and that either a diligent effort was made to recover the erroneous 
overpayment or it would not be cost effective to recover the erroneous 
overpayment. The contractor's compliance with a system that is approved 
under 2146.270(b) will be deemed to be a diligent effort to recover the 
erroneous overpayment.



Sec. 2131.205-6  Compensation for personal services.

    FAR 31.205-6 is supplemented as follows: Overtime on a FEGLI Program 
contract normally would meet the conditions specified in FAR 22.103. 
Advance approval of the contracting officer is not required for 
overtime, extra-pay shifts, and multi-shifts.



Sec. 2131.205-32  Precontract costs.

    Precontract costs shall be allowable in accordance with FAR Part 31, 
but precontract costs that exceed $25,000 shall not be allowable except 
to the extent allowable under an advance agreement negotiated in 
accordance with 2131.109.



Sec. 2131.205-38  Selling costs.

    Selling costs are not allowable costs to FEGLI contracts except to 
the extent that they are attributable to conducting contract 
negotiations with the Government and for liaison activities involving 
ongoing contract administration, including the conduct of informational 
and enrollment activities as directed by the contracting officer.



Sec. 2131.205-41  Taxes.

    (a) FAR 31.205-41, as modified in paragraphs (b) through (e), is 
applicable to contracts in the FEGLI Program.
    (b) As long as 5 U.S.C. 8714(c) or other Federal law prohibits the 
imposition of taxes, fees, or other monetary payments on FEGLI Program 
premiums by any State, the District of Columbia, the Commonwealth of 
Puerto Rico, or any other political subdivision or governmental 
authority of those entities, payment of such preempted tax is an 
unallowable expense under FAR 31.205-41(b)(3).
    (c) Paragraph (b)(1) of FAR 31.205-41 is not applicable to the FEGLI 
Program.
    (d) Notwithstanding any other provision in FAR 31.205-41, the 
portion of the contractor's income or excess profits taxes allocated to 
the FEGLI Program, except those allocated to the risk charge or the 
service charge, are allowable costs under the FEGLI Program, including 
any income or excess profit taxes that arise from the operation of this 
paragraph. Income or excess profits taxes allocated to the risk charge 
or the service charge are not allowable costs.
    (e) Notwithstanding any other provision in FAR 31.205-41, an amount 
equal to the ``DAC Tax'' is an allowable tax expense under FAR 31.205-
41. ``DAC Tax'' means an amount equal to: (1) the amount of the 
contractor's Federal, state, and local income tax allocated to payments 
under the FEGLI Program, less (2) the amount of the contractor's 
Federal, state, and local income tax allocated to payments under the 
FEGLI Program computed without regard to the operation of 26 U.S.C. 848, 
which requires that certain policy acquisition expenses be capitalized 
over a 60- or 120-month period, plus (3) the amount of the increase, if 
any, in the contractor's Federal, state, and local income tax that 
results from the operation of this section 2131.205-41(e).

[[Page 634]]



Sec. 2131.205-43  Trade, business, technical and professional activity costs.

    (a) FEGLI Program contractors shall seek the advance written 
approval of the contracting officer for allowability of all or part of 
the costs associated with trade, business, technical, and professional 
activities when the allocable costs of such participation to the FEGLI 
Program will exceed $2,500 annually and the contractor allocates more 
than 50 percent of the membership cost of a trade, business, technical, 
or professional organization to the FEGLI Program.
    (b) When approval of costs for membership in an organization is 
required, the contractor must demonstrate conclusively that membership 
in such an organization and participation in its activities extend 
beyond the contractual relationship with OPM, have a reasonable 
relationship to providing services to FEGLI Program insureds, and that 
the organization is not engaged in activities such as those cited in FAR 
31.205-22 (lobbying costs) for which costs are not allowable.



Sec. 2131.205-70  Major subcontractor service charge.

    In a subcontract for enrollment and eligibility determinations, 
administration of claims and payment of benefits and any other 
subcontract for which prior approval is necessary, when costs are 
determined on the basis of actual costs incurred, any amount that 
exceeds the allowable cost of a major subcontract (whether entitled 
service charge, incentive fee, profit, fee, surplus, or any other title) 
is not allowable under the contract. Amounts which exceed allowable 
costs may be paid to a major subcontractor only from the risk charge or 
service charge negotiated between OPM and the contractor.



Sec. 2131.205-71  Reinsurer administrative expense costs.

    A charge of $500 per policy year per reinsurer of the FEGLI Program 
as set forth in the contract is an allowable cost when documented 
through an internal accounting entry of the contractor and actually 
paid. This amount is deemed to be sufficient to reimburse reinsurers for 
the minor administrative expenses incurred in reinsuring the FEGLI 
Program.



Sec. 2131.270  Contract clauses.

    The clause at 2152.231-70 shall be inserted in all FEGLI Program 
contracts.



PART 2132--CONTRACT FINANCING--Table of Contents




                         Subpart 2132.1--General

Sec.
2132.170  Recurring premium payments to contractors.
2132.171  Contract clause.

                     Subpart 2132.6--Contract Debts

2132.607  Tax credit.
2132.617  Contract clause.

                    Subpart 2132.7--Contract Funding

2132.770  Insurance premium payments and special contingency reserve.
2132.771  Non-commingling of FEGLI Program funds.
2132.772  Contract clause.

                  Subpart 2132.8--Assignment of Claims

2132.806  Contract clause.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40379, July 28, 1993, unless otherwise noted.



                         Subpart 2132.1--General



Sec. 2132.170  Recurring premium payments to contractors.

    OPM and the contractor will concur on an estimate of benefits and 
administrative costs plus the fixed service or risk charge for the 
forthcoming contract year, as specified in the contract. The annual 
premium to the contractor will be determined based on this estimate. The 
premium will be determined annually and will be provided to the 
contractor in 12 equal monthly installments due on the first day of each 
month. Following the close of the contract year, a reconciliation of 
premiums, benefits, and other costs will be performed as a limited cost 
redetermination.

[[Page 635]]



Sec. 2132.171  Contract clause.

    The clause at 2152.232-70 shall be inserted in all FEGLI Program 
contracts.



                     Subpart 2132.6--Contract Debts



Sec. 2132.607  Tax credit.

    FAR 32.607 has no practical application to FEGLI Program contracts. 
The statutory provisions at 5 U.S.C. 8707 and 8708 authorize joint 
enrollee and Government contributions to the Employees' Life Insurance 
Fund. Because the Fund is comprised of contributions by enrollees as 
well as the Government, contractors may not offset debts to the Fund by 
a tax credit that is solely a Government obligation.



Sec. 2132.617  Contract clause.

    The clause at FAR 52.232-17 is modified in FEGLI Program contracts 
to exclude the parenthetical phrase ``(net of any applicable tax credit 
under the Internal Revenue Code (26 U.S.C. 1481)).''



                    Subpart 2132.7--Contract Funding



Sec. 2132.770  Insurance premium payments and special contingency reserve.

    Insurance premium payments and a special contingency reserve are 
made available to FEGLI Program contractors in accordance with 5 U.S.C. 
8712 and 8714.



Sec. 2132.771  Non-commingling of FEGLI Program funds.

    (a) FEGLI Program funds shall be maintained in such a manner as to 
be separately identifiable from other assets of the contractor. Cash and 
investment balances reported on the FEGLI Program Annual Accounting 
Statement must be supported by the contractor's books and records.
    (b) This requirement may be modified by the contracting officer in 
accordance with the clause at 2152.232-71 when adequate accounting and 
other controls are in effect. If the requirement is modified, such 
modification will remain in effect until rescinded by OPM.



Sec. 2132.772  Contract clause.

    The clause at 2152.232-71 shall be inserted in all FEGLI Program 
contracts.



                  Subpart 2132.8--Assignment of Claims



Sec. 2132.806  Contract clause.

    The clause set forth in 2152.232-72 shall be inserted in all FEGLI 
Program contracts.



PART 2133--PROTESTS, DISPUTES, AND APPEALS--Table of Contents




    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.



                  Subpart 2133.2--Disputes and Appeals



Sec. 2133.270  Designation of Board of Contract Appeals.

    The Armed Services Board of Contract Appeals [ASBCA] serves as the 
board of contract appeals for the FEGLI Program. The rules of procedure 
followed in a dispute shall be those prescribed by the ASBCA.

[58 FR 40379, July 28, 1993]

[[Page 636]]



             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING





PART 2137--SERVICE CONTRACTING--Table of Contents




               Subpart 2137.1--Service Contracts--General

Sec.
2137.102  Policy.
2137.110  Contract clause.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40380, July 28, 1993, unless otherwise noted.



               Subpart 2137.1--Service Contracts--General



Sec. 2137.102  Policy.

    (a) The services under this contract are of vital interest to the 
Government and must be continued without interruption in the event the 
contract is terminated.
    (b) The contractor shall be reimbursed for all reasonable phase-in 
and phase-out costs (i.e., costs incurred within the agreed upon period 
after contract termination that result from phase-in and phase-out 
operations). The contractor also shall receive a risk or service charge 
for the full period after contract termination during which services are 
continued, not to exceed a pro rata portion of the risk or service 
charge for the final contract year. The amount of risk or service charge 
shall be based upon the accurate and timely processing of benefit 
claims, the volume and validity of complaints received by OPM, the 
timeliness and adequacy of reports on operations, and responsiveness to 
OPM offices, enrollees, beneficiaries, and Congress.



Sec. 2137.110   Contract clause.

    The clause at 2152.237-70 shall be inserted in all FEGLI Program 
contracts in lieu of the clause at 52.237-3 that is prescribed by FAR 
37.110(c).

[[Page 637]]



                    SUBCHAPTER G--CONTRACT MANAGEMENT





PART 2143--CONTRACT MODIFICATIONS--Table of Contents




                         Subpart 2143.1--General

Sec.
2143.101  Definitions.

                      Subpart 2143.2--Change Orders

2143.205  Contract clause.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40380, July 28, 1993, unless otherwise noted.



                         Subpart 2143.1--General



Sec. 2143.101  Definitions.

    The effective date of a FEGLI contract modification is as defined in 
FAR 43.101, except to the extent that the definition conflicts with 
LIFAR 2101.370.



                      Subpart 2143.2--Change Orders



Sec. 2143.205  Contract clause.

    The clause at 2152.243-70 shall be inserted in all FEGLI Program 
contracts in lieu of the clauses in FAR 52.243-1 that are prescribed by 
FAR 43.205(a).



PART 2144--SUBCONTRACTING POLICIES AND PROCEDURES--Table of Contents




                         Subpart 2144.1--General

Sec.
2144.102  Policy.

                 Subpart 2144.2--Consent to Subcontracts

2144.204  Contract clause.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40380, July 28, 1993, unless otherwise noted.



                         Subpart 2144.1--General




Sec. 2144.102  Policy.
    For all FEGLI Program contracts, advance approval shall be required 
on subcontracts or modifications to subcontracts when the cost of that 
portion of the subcontract that is charged the FEGLI Program contract 
exceeds $200,000, but only if more than 25 percent of the subcontract 
cost is charged to the FEGLI Program contract.



                 Subpart 2144.2--Consent to Subcontracts



Sec. 2144.204  Contract clause.

    The clause set forth at 2152.244-70 shall be inserted in all FEGLI 
Program contracts.



PART 2146--QUALITY ASSURANCE--Table of Contents




              Subpart 2146.2--Contract Quality Requirements

Sec.
2146.201  General.
2146.270  FEGLI Program quality assurance requirements.
2146.270-1  Contract clause.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40380, July 28, 1993, unless otherwise noted.



              Subpart 2146.2--Contract Quality Requirements



Sec. 2146.201  General.

    (a) This part prescribes policies and procedures to ensure that 
services acquired under the FEGLI Program contract conform to the 
contract's quality requirements.
    (b) OPM shall evaluate the contractor's system of internal controls 
under the quality assurance program required by 2146.270 prior to each 
contract year and will acknowledge in writing whether or not the system 
is consistent with the requirements set forth in this Subpart. After the 
initial review, each annual review may be limited to changes in the 
contractor's internal control guidelines. However, a limited review does 
not diminish the contractor's obligation to apply the full internal 
control system.

[[Page 638]]



Sec. 2146.270  FEGLI Program quality assurance requirements.

    (a) The contractor shall develop and apply a quality assurance 
program specifying procedures for assuring contract quality, as directed 
by the contracting officer. At a minimum, the program should include 
procedures to address:
    (1) Accuracy of payments and recovery of overpayments;
    (2) Timeliness of payments to beneficiaries;
    (3) Quality of services and responsiveness to beneficiaries;
    (4) Quality of service and responsiveness to OPM; and
    (5) Detection and recovery of fraudulent claims.
    (b) The contractor shall prepare overpayment recovery guidelines to 
include a system of internal control for approval annually by the 
contracting officer. The contracting officer may withdraw such approval 
with 90 days' notice of prospective withdrawal.
    (c) The contracting officer may order the correction of a deficiency 
or a modification in the contractor's services and/or quality assurance 
program. The contractor shall take the necessary action promptly to 
implement the contracting officer's order. If the contracting officer 
orders the correction of a deficiency or a modification of the 
contractor's services and/or quality assurance program pursuant to this 
paragraph after the contract year has begun, the costs incurred in 
correcting the deficiency or making the modification will not be 
considered to the contractor's detriment in the cost control factor of 
the service charge [if applicable] for the following contract year. 
However, if there is a deficiency, the deficiency itself may be taken 
into consideration.



Sec. 2146.270-1  Contract clause.

    The clause at 2152.246-70 shall be inserted in all FEGLI Program 
contracts.



PART 2149--TERMINATION OF CONTRACTS--Table of Contents




Sec.
2149.002  Applicability.

              Subpart 2149.5--Contract Termination Clauses

2149.505  Other termination clauses.
2149.505-70  FEGLI Program contract termination clause.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

    Source: 58 FR 40380, July 28, 1993, unless otherwise noted.



Sec. 2149.002  Applicability.

    (a) Termination. (1) Termination of FEGLI Program contracts is 
controlled by 5 U.S.C. 8709(c) and this chapter. The procedures for 
termination of FEGLI Program contracts shall be those contained in FAR 
part 49. For the purpose of this part, terminate means to 
``discontinue'' as used in 5 U.S.C. 8709(c).
    (2) A life insurance contract entered into by OPM may be terminated 
by OPM at any time for default by the contractor. A life insurance 
contract entered into by OPM may be terminated at the end of the 31st 
day after default for nonpayment by OPM [see 2152.232-70, Payments].
    (3) A life insurance contract entered into by OPM may be terminated 
for convenience of the Government 60 days after the contractor's receipt 
of OPM's notice to terminate.
    (4) The contractor may terminate its contract with OPM at the end of 
any policy year when notice of intent to terminate is given to OPM in 
writing at least 60 days prior to the end of the policy year (i.e., no 
later than July 31).
    (b) Continuation of services. The services under this contract are 
of vital interest to the Government and must be continued without 
interruption in the event the contract is terminated. Consequently, the 
contract termination procedures contained in this paragraph must be used 
in conjunction with 2137.102, 2137.110, and the provisions of the 
``Continuity of Services'' clause at 2152.237-70.
    (c) Settlement. The procedures for settlement of contracts after 
they are terminated shall be those contained in FAR Part 49.

[[Page 639]]



              Subpart 2149.5--Contract Termination Clauses

2149.505  Other termination clauses.



Sec. 2149.505-70  FEGLI Program contract termination clause.

    The clause in 2152.249-70 shall be inserted in all FEGLI Program 
contracts.

[[Page 640]]



                     SUBCHAPTER H--CLAUSES AND FORMS





PART 2152--PRECONTRACT PROVISIONS AND CONTRACT CLAUSES--Table of Contents




Sec.
2152.070  Applicable clauses.

             Subpart 2152.2--Text of Provisions and Clauses

2152.203-70  Misleading, deceptive, or unfair advertising.
2152.209-70  Certification regarding debarment, suspension, proposed 
          debarment and other responsibility matters during 
          negotiations.
2152.209-71  Certification regarding debarment, suspension, proposed 
          debarment and other responsibility matters.
2152.210-70  Investment income.
2152.210-71  Notice of significant events.
2152.215-70  Contractor records retention.
2152.216-70  Fixed price with limited cost redetermination--risk charge.
2152.216-71  Fixed price with limited cost redetermination--service 
          charge.
2152.224-70  Confidentiality of records.
2152.231-70  Accounting and allowable cost.
2152.232-70  Payments.
2152.232-71  Non-commingling of FEGLI Program funds.
2152.232-72  Approval for assignment of claims.
2152.237-70  Continuity of services.
2152.243-70  Changes.
2152.244-70  Subcontracts.
2152.246-70  Quality assurance requirements.
2152.249-70  Renewal and termination.

               Subpart 2152.3--Provision and Clause Matrix

    2152.370  Use of the matrix.

    Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c), 48 CFR 1.301.

    Source: 58 FR 40381, July 28, 1993, unless otherwise noted.



Sec. 2152.070  Applicable clauses.

    The clauses of FAR subpart 52.2 specified below shall be applicable 
to FEGLI Program contracts. The most recent edition of the clause in the 
FAR shall be applied unless otherwise provided in the contract.

                        Section and Clause Title

52.202-1  Definitions
52.203-1  Officials Not to Benefit
52.203-3  Gratuities
52.203-5  Covenant Against Contingent Fees
52.203-6  Restrictions on Subcontractor Sales to the Government
52.203-7  Anti-Kickback Procedures
52.203-9  Requirement for Certificate of Procurement Integrity--
          Modification
52.203-10  Price or Fee Adjustment for Illegal or Improper Activity
52.203-12  Limitation on Payments to Influence Certain Federal 
          Transactions
52.209-6  Protecting the Government's Interest When Subcontracting With 
          Contractors Debarred, Suspended, or Proposed for Debarment
52.215-1  Examination of Records by Comptroller General
52.215-2  Audit--Negotiation
52.215-22  Price Reduction for Defective Cost or Pricing Data
52.215-24  Subcontractor Cost or Pricing Data
52.215-27  Termination of Defined Benefit Pension Plans
52.215-30  Facilities Capital Cost of Money
52.215-31  Waiver of Facilities Capital Cost of Money
52.215-39  Reversion or Adjustment of Plans for Postretirement Benefits 
          (PRB) Other Than Pensions
52.219-8  Utilization of Small Business Concerns and Small Disadvantaged 
          Business Concerns
52.219-13  Utilization of Women-Owned Small Businesses
52.220-3  Utilization of Labor Surplus Area Concerns
52.222-1  Notice to the Government of Labor Disputes
52.222-3  Convict Labor
52.222-4  Contract Work Hours and Safety Standards Act--Overtime 
          Compensation-General
52.222-21  Certification of NonSegregated Facilities
52.222-22  Previous Contracts and Compliance Reports
52.222-25  Affirmative Action Compliance
52.222-26  Equal Opportunity
52.222-28  Equal Opportunity Preaward Clearance of Subcontracts
52.222-29  Notification of Visa Denial
52.222-35  Affirmative Action for Special Disabled and Vietnam Era 
          Veterans
52.222-36  Affirmative Action for Handicapped Workers
52.222-37  Employment Reports on Special Disabled Veterans and Veterans 
          of the Vietnam Era
52.222-41  Service Contract Act of 1965, as Amended
52.223-2  Clean Air and Water
52.223-6  Drug-Free Workplace
52.227-1  Authorization and Consent
52.227-2  Notice and Assistance

[[Page 641]]

52.232-9  Limitation on Withholding of Payments
52.232-17; 2132.617  Interest
52.232-23  Assignment of Claims
52.232-28  Electronic Funds Transfer Payment Method
52.233-1  Disputes (Alternate I)
52.242-1  Notice of Intent to Disallow Costs
52.242-13  Bankruptcy
52.244-5  Competition in Subcontracting
52.245-2  Government Property (Fixed-Price Contracts)
52.246-4  Inspection of Services--Fixed Price
52.246-25  Limitation of Liability--Services
52.247-63  Preference for U.S.-Flag Air Carriers
52.249-2  Termination for Convenience of the Government (Fixed-Price)
52.249-8  Default (Fixed Price Supply and Service)
52.251-1  Government Supply Sources
52.252-4  Alterations in Contract
52.252-6  Authorized Deviations in Clauses



             Subpart 2152.2--Text of Provisions and Clauses



Sec. 2152.203-70  Misleading, deceptive, or unfair advertising.

    As prescribed in 2103.571, insert the following clause:

         Misleading, Deceptive, or Unfair Advertising (Oct 1993)

    The Contractor agrees that any advertising material authorized and 
released by the Contractor which mentions the FEGLI Program shall be 
truthful and not misleading, and shall present an accurate statement of 
FEGLI Program benefits. The Contractor is prohibited from making 
incomplete, incorrect comparisons or using disparaging or minimizing 
techniques to compare its other products or services to the benefits of 
the FEGLI Program. The Contractor agrees to use its best efforts to 
assure that its agents are aware of and abide by this provision.
    The Contractor agrees to incorporate this clause in all subcontracts 
as defined at LIFAR 2102.101.

                             (End of Clause)



Sec. 2152.209-70   Certification regarding debarment, suspension, proposed debarment and other responsibility matters during negotiations.

    As prescribed in 2109.409(a), the contracting officer may require a 
potential contractor to provide the following certification:

 Certification Regarding Debarment, Suspension, Proposed Debarment, and 
                 Other Responsibility Matters (Oct 1993)

    (a)(1) The undersigned certifies, to the best of its knowledge and 
belief, that--
    (i) The undersigned and/or any of its Principals--
    (A) Are (  ) are not (  ) presently debarred, suspended, proposed 
for debarment, or declared ineligible for the award of contracts by any 
Federal agency;
    (B) Have (  ) have not (  ), within a 3-year period preceding this 
certification, been convicted of or had a civil judgment rendered 
against them for: Commission of fraud or a criminal offense in 
connection with obtaining, attempting to obtain, or performing a public 
(Federal, state, or local) contract or subcontract; violation of Federal 
or state antitrust statutes relating to the submission of offers; or 
commission of embezzlement, theft, forgery, bribery, falsification or 
destruction of records, making false statements, or receiving stolen 
property; and
    (C) Are (  ) are not (  ) presently indicted for, or otherwise 
criminally or civilly charged by a governmental entity with, commission 
of any of the offenses enumerated in subdivision (a)(2) of this clause.
    (ii) The undersigned has (  ) has not (  ), within a 3-year period 
preceding this certification, had one or more contracts terminated for 
default by any Federal agency.
    (2) ``Principals,'' for the purposes of this certification, means 
officers; directors; owners; partners; and persons having primary 
management or supervisory responsibilities within a business entity 
(e.g., general manager; plant manager; head of a subsidiary, division, 
or business segment, and similar positions).
    This certification concerns a matter within the jurisdiction of an 
agency of the United States and the making of a false, fictitious, or 
fraudulent certification may render the undersigned subject to 
prosecution under section 1001, title 18, United States Code.
    (b) The undersigned shall provide immediate written notice to the 
Contracting Officer if, at any time prior to the contract award, the 
undersigned learns that its certification was erroneous when submitted 
or has become erroneous by reason of changed circumstances.
    (c) A certification that any of the actions mentioned in paragraph 
(a) of this provision exists will not necessarily result in the 
withholding of an award under a contract under the FEGLI Program. 
However, the certification, or the undersigned's failure to provide such 
additional information as requested by the Contracting Officer will be 
considered in connection with a determination of the undersigned's 
responsibility under LIFAR subpart 2109.70, Minimum Standards for FEGLI 
Program Contractors.

[[Page 642]]

    (d) Nothing contained in this certification shall be construed to 
require establishment of a system of records in order to render, in good 
faith, the certification required by paragraph (a). The knowledge and 
information of the undersigned is not required to exceed that which is 
normally possessed by a prudent person in the ordinary course of 
business dealings.
    (e) The certification in (a) is a material representation of fact 
upon which reliance is placed during negotiation of a FEGLI Program 
contract. If it is later determined that the undersigned knowingly 
rendered an erroneous certification, in addition to other remedies 
available to the Government, the Contracting Officer may terminate the 
contract resulting from this certification for default.



(Name of Company)
By:_____________________________________________________________________
(Signature)
_______________________________________________________________________
(Name and Title of Signatory)
Date signed:____________________________________________________________

                          (End of Certificate)



Sec. 2152.209-71  Certification regarding debarment, suspension, proposed debarment, and other responsibility matters.

    As prescribed in 2109.409(b), insert the following clause:

     CERTIFICATION BY FEGLI PROGRAM CONTRACTOR REGARDING DEBARMENT, 
 SUSPENSION, PROPOSED DEBARMENT, AND OTHER RESPONSIBILITY MATTERS (OCT 
                                  1993)

    (a)(1) The Contractor certifies, to the best of its knowledge and 
belief, that--
    (i) The Contractor and/or any of its Principals--
    (A) Are (  ) are not (  ) presently debarred, suspended, proposed 
for debarment, or declared ineligible for the award of contracts by any 
Federal agency;
    (B) Have (  ) have not (  ), within a 3-year period preceding this 
certification, been convicted of or had a civil judgment rendered 
against them for: Commission of fraud or a criminal offense in 
connection with obtaining, attempting to obtain, or performing a public 
(Federal, state, or local) contract or subcontract; violation of Federal 
or state antitrust statutes relating to the submission of offers; or 
commission of embezzlement, theft, forgery, bribery, falsification or 
destruction of records, making false statements, or receiving stolen 
property; and
    (C) Are (  ) are not (  ) presently indicted for, or otherwise 
criminally or civilly charged by a governmental entity with, commission 
of any of the offenses enumerated in subdivision (a)(2) of this clause.
    (ii) The Contractor has (  ) has not (  ), within a 3-year period 
preceding this certification, had one or more contracts terminated for 
default by any Federal agency.
    (2) ``Principals,'' for the purposes of this certification, means 
officers; directors; owners; partners; and persons having primary 
management or supervisory responsibilities within a business entity 
(e.g., general manager; plant manager; head of a subsidiary, division, 
or business segment, and similar positions).
    This certification concerns a matter within the jurisdiction of an 
agency of the United States and the making of a false, fictitious, or 
fraudulent certification may render the Contractor subject to 
prosecution under section 1001, title 18, United States Code.
    (b) The Contractor shall provide immediate written notice to the 
Contracting Officer if, at any time, the Contractor learns that its 
certification was erroneous when submitted or has become erroneous by 
reason of changed circumstances.
    (c) A Contractor's certification that any of the actions mentioned 
in the certification exists will not necessarily result in termination 
of the contract. However, the certification, or the Contractor's failure 
to provide such additional information as requested by the Contracting 
Officer will be considered in connection with a determination of the 
Contractor's responsibility under LIFAR subpart 2109.70, Minimum 
Standards for FEGLI Program Contractors.
    (d) Nothing contained in the certification shall be construed to 
require establishment of a system of records in order to render, in good 
faith, the certification required by this section. The knowledge and 
information of the Contractor is not required to exceed that which is 
normally possessed by a prudent person in the ordinary course of 
business dealings.
    (e) The certification in this section is a material representation 
of fact upon which reliance is placed by the Contracting Officer in 
making this contract. If it is later determined that the Contractor 
knowingly rendered an erroneous certification, in addition to other 
remedies available to the Government, the Contracting Officer may 
terminate the contract for default.
    (End of Clause)



Sec. 2152.210-70  Investment income.

    As prescribed in 2110.7004(a), insert the following clause:

                      Investment Income (Oct 1993)

    (a) The Contractor shall invest and reinvest all FEGLI Program funds 
on hand until needed to discharge promptly the obligations

[[Page 643]]

incurred under the contract. Within the constraints of safety and 
liquidity of investments, the Contractor shall seek to maximize 
investment income.
    (b) All investment income earned on FEGLI Program funds shall be 
credited to the FEGLI Program.
    (c) When the Contracting Officer concludes that the Contractor 
failed to comply with paragraphs (a) or (b) of this clause, the 
Contractor shall pay to the Office of Personnel Management (OPM) the 
investment income that would have been earned, at the rate(s) specified 
in paragraph (d) of this clause, had it not been for the Contractor's 
noncompliance. ``Failed to comply with paragraphs (a) or (b)'' means: 
(1) Making any charges against the contract which are not allowable, 
allocable, or reasonable; or (2) failing to credit any income due the 
contract and/or failing to place funds on hand, including premium 
payments and payments from OPM not needed to discharge promptly the 
obligations incurred under the contract, tax refunds, credits, deposits, 
investment income earned, uncashed checks, or other amounts owed OPM in 
income-producing investments and accounts.
    (d)(1) Investment income lost as a result of unallowable, 
unallocable, or unreasonable charges against the contract shall be paid 
from the 1st day of the contract term following the contract term in 
which the unallowable charge was made and shall end on the earlier of: 
(i) The date the amounts are returned to OPM; (ii) the date specified by 
the Contracting Officer; or, (iii) the date of the Contracting Officer's 
Final Decision.
    (2) Investment income lost as a result of failure to credit income 
due the contract or failure to place funds on hand in income-producing 
investments and accounts shall be paid from the date the funds should 
have been invested or appropriate income was not credited and shall end 
on the earlier of: (i) The date the amounts are returned to OPM; (ii) 
the date specified by the Contracting Officer; or, (iii) the date of the 
Contracting Officer's Final Decision.
    (3) The Contractor shall credit to the FEGLI Program income that is 
due in accordance with this clause. All amounts payable shall bear lost 
investment income compounded semiannually at the rate established by the 
Secretary of the Treasury as provided in section 12 of the Contract 
Disputes Act of 1978 (Pub. L. 95-563), during the periods specified in 
paragraphs (d)(1) and (d)(2).
    (4) All amounts due and unpaid after the periods specified in 
paragraphs (d)(1) and (d)(2) shall bear simple interest at the rate 
applicable for each 6-month period as fixed by the Secretary of the 
Treasury until the amount is paid [see FAR 32.614-1].
    (End of Clause)



Sec. 2152.210-71  Notice of significant events.

    As prescribed in 2110.7004(b), insert the following clause:

                 Notice of Significant Events (Oct 1993)

    (a) The Contractor agrees to notify OPM of any significant event 
within 10 working days after the Contractor becomes aware of it. As used 
in this section, a ``significant event'' is any occurrence of 
anticipated occurrence that might reasonably be expected to have a 
material effect upon the Contractor's ability to meet its obligations 
under this contract, including, but not limited to, any of the 
following:
    (1) Disposal of 25 percent or more of the Contractor's assets within 
a six-month period;
    (2) Termination or modification of any contract or subcontract if 
such termination or modification might have a material effect on the 
Contractor's obligations under this contract;
    (3) Loss of 20 percent or more of FEGLI Program reinsurers in a 
policy year;
    (4) The imposition of, or notice of the intent to impose, a 
receivership, conservatorship, or special regulatory monitoring;
    (5) The withdrawal of, or notice of intent to withdraw, by any 
State, its license to do business or any other change of status under 
Federal or State law;
    (6) The Contractor's default on a loan or other financial 
obligation;
    (7) Any actual or potential labor dispute that delays or threatens 
to delay timely performance or substantially impairs the functioning of 
the Contractor's facilities or facilities used by the Contractor in the 
performance of the contract;
    (8) Any change in its charter, constitution, or by-laws which 
affects any provision of this contract or the Contractor's participation 
in the Federal Employees' Group Life Insurance Program;
    (9) Any significant changes in policies and procedures or 
interpretations of the contract which would affect the benefits payable 
under the contract or the costs charged to the contract;
    (10) Any fraud, embezzlement or misappropriation of FEGLI Program 
funds; or
    (11) Any written exceptions, reservations or qualifications 
expressed by the independent accounting firm (which ascribes to the 
standards of the American Institute of Certified Public Accountants) 
contracted with by the Contractor to provide an opinion on the annual 
accounting statements required by OPM for the FEGLI Program.
    (b) Upon learning of a significant event, OPM may institute action, 
in proportion to the seriousness of the event, to protect the

[[Page 644]]

interest of insureds, including, but not limited to--
    (1) Directing the Contractor to take corrective action;
    (2) Making a downward adjustment to the weight in the ``Contractor 
Performance'' factor of the service charge; or,
    (3) Withholding payments of the service charge.
    (c) Prior to taking action as described in paragraph (b) of this 
clause, OPM will notify the Contractor and offer an opportunity to 
respond.
    (d) The Contractor agrees to insert this clause in any subcontract 
or subcontract modification if the amount of the subcontract or 
modification that is charged to the FEGLI Program exceeds $200,000, but 
only if more than 25 percent of the subcontract cost is charged to the 
FEGLI contract.
    (End of Clause)



Sec. 2152.215-70  Contractor records retention.

    As prescribed in 2115.106-270, insert the following clause:

                 Contractor Records Retention (Oct 1993)

    Notwithstanding the provisions of FAR 52.215-2(d), ``Audit-
Negotiation,'' the Contractor will retain and make available all records 
applicable to a contract term that support the annual statement of 
operations for a period of 5 years after the end of the contract term to 
which the records relate. Individual enrollee and/or beneficiary claim 
records shall be maintained for 10 years after the end of the policy 
year to which the claim records relate.
    (End of Clause)



Sec. 2152.216-70  Fixed price with limited cost redetermination--risk charge.

    As prescribed in 2116.270-1(a), insert the following clause when a 
risk charge is negotiated:

 Fixed Price With Limited Cost Redetermination Plus Fixed Fee Contract--
                         Risk Charge (Oct 1993)

    (a) This is a fixed price with limited cost redetermination plus 
fixed fee contract, with the fixed fee in the form of a risk charge.
    (b) OPM shall pay the Contractor the risk charge specified in 
Appendix ______ for the risk assumed in performing this contract.
    (End of clause)



Sec. 2152.216-71  Fixed price with limited cost redetermination--service charge.

    As prescribed in 2116.270-1(b), insert the following clause when a 
service charge is negotiated:

 Fixed Price With Limited Cost Redetermination Plus Fixed Fee Contract--
                        Service Charge (Oct 1993)

    (a) This is a fixed price with limited cost redetermination plus 
fixed fee contract, with the fixed fee in the form of a service charge.
    (b) OPM shall pay the Contractor the service charge specified in 
Appendix ______.
    (End of clause)



Sec. 2152.224-70  Confidentiality of records.

    As prescribed in 2124.104-70, insert the following clause:

                  Confidentiality of Records (Oct 1993)

    (a) The Contractor shall use the personal data on employees and 
annuitants that is provided by agencies and OPM, including social 
security numbers, for only those routine uses stipulated for the data 
and published annually in the Federal Register as a part of OPM's notice 
of systems of records.
    (b) The Contractor shall also hold all medical records, evidence of 
insurability for insurance coverage, designations of beneficiaries, 
amounts of insurance, and information relating thereto, of the insured 
and family members confidential except for disclosure as follows:
    (1) as may be reasonably necessary for the administration of this 
contract;
    (2) as authorized by the insured or his or her estate;
    (3) as necessary to permit Government officials having authority to 
investigate and prosecute alleged civil or criminal actions; and
    (4) as necessary to audit the contract.
    (End of Clause)



Sec. 2152.231-70  Accounting and allowable cost.

    As prescribed in 2131.270, insert the following clause:

                Accounting and Allowable Cost (Oct 1993)

    (a) Annual Accounting Statement. (1) The Contractor shall prepare 
annually an accounting statement summarizing the financial results of 
the FEGLI Program for the previous contract year. This statement shall 
be prepared in accordance with the requirements issued annually by OPM 
and shall be

[[Page 645]]

due to OPM in accordance with a date established by those requirements.
    (2) The Contractor shall have the most recent financial statement 
for the FEGLI Program audited by an accounting firm that ascribes to the 
standards of the American Institute of Certified Public Accountants. The 
report shall be submitted to OPM along with the annual accounting 
statement.
    (3) Based on the results of either the independent audit or a 
Government audit, the annual accounting statements for the FEGLI Program 
may be (i) adjusted by amounts found not to constitute properly 
allocable or allowable costs; or (ii) adjusted for prior overpayments or 
underpayments.
    (b) Definition of costs. (1) The allowable costs chargeable to the 
contract for a policy year shall be the actual, necessary, reasonable, 
and allocable amounts incurred with proper justification and accounting 
support, determined in accordance with Subpart 31.2 of the Federal 
Acquisition Regulation (FAR) and Subpart 2131.2 of the Federal Employees 
Group Life Insurance Program Acquisition Regulation (LIFAR) applicable 
on October 1 of each year, and the terms of this contract.
    (2) In the absence of specific contract terms to the contrary, 
contract costs shall be classified in accordance with the following 
criteria:
    (i) Benefits. Claims costs consist of payments made and costs 
incurred for life insurance and accidental death and dismemberment 
insurance on behalf of FEGLI Program subscribers, including interest 
paid on delayed claims, less any overpayments (subject to the terms of 
2131.205-3), refunds, or other credits received.
    (ii) Administrative expenses. Administrative expenses consist of all 
allocable, allowable, and reasonable expenses incurred in the 
adjudication of beneficiary claims or incurred in the Contractor's 
overall operation of the business. Unless otherwise provided in the 
contract, FAR, or LIFAR, administrative expenses include, but are not 
limited to, taxes, insurance and reinsurance premiums, the cost of 
investigation and settlement of policy claims, the cost of maintaining 
files regarding payment of claims, and legal expenses incurred in the 
litigation of benefit payments. Administrative expenses exclude the 
expenses related to investment income in paragraph (b)(2)(iii) of this 
clause.
    (iii) Investment income. Investment income represents the amount 
earned by the Contractor after deducting reasonable, necessary, and 
properly allocable investment expenses as a result of investing of FEGLI 
Program funds. The direct or allocable indirect expenses incurred with 
respect to the investment of Program funds, such as brokerage fees, are 
netted against investment income earned rather than as part of 
administrative expenses.
    (c) Certification of Annual Accounting Statement. (1) The Contractor 
shall certify the annual accounting statement in the form set forth in 
paragraph (c)(2) of this clause. The certificate shall be signed by the 
chief executive officer for the Contractor's FEGLI Program operations 
and the chief financial officer for the Contractor's FEGLI Program 
operations and shall be returned with the annual accounting statement.
    (2) The certification required shall be in the following form:

              Certification of Annual Accounting Statement

    This is to certify that I have reviewed this accounting statement 
and, to the best of my knowledge and belief, attest that:
    1. The statement was prepared in conformity with the guidelines 
issued by the Office of Personnel Management and fairly presents the 
financial results of this policy year in conformity with those 
guidelines;
    2. The costs included in the statement are allowable and allocable 
in accordance with the terms of the contract and with the cost 
principles of the Federal Employees' Group Life Insurance Program 
Acquisition Regulation (LIFAR) and the Federal Acquisition Regulation 
(FAR);
    3. Income, overpayments, refunds, and other credits made or owed in 
accordance with the terms of the contract and applicable cost principles 
have been included in the statement.
Contractor Name: ______________________________________________________
(Chief Executive Officer for FEGLI Operations)
Date signed: __________________________________________________________
(Chief Financial Officer for FEGLI Operations)
Date signed: __________________________________________________________
(Type or print and sign)
(End of Certificate)
(End of Clause



Sec. 2152.232-70  Payments.

    As prescribed in 2132.171, insert the following clause:

                           Payments (Oct 1993)

    (a) OPM will provide to the Contractor, in full settlement of its 
obligations under this contract, subject to adjustment based on actual 
claims and administrative cost or for Contractor fraud, a fixed premium 
once per month on the first business day of the month. The premium will 
be determined by an estimate of costs for the contract year as provided 
in Section ______, and will be redetermined annually. In addition, an 
annual reconciliation of premiums and actual costs will be performed, 
and additional payment by OPM or reimbursement by the Contractor will be 
paid as necessary.

[[Page 646]]

    (b) If OPM fails to provide the premium in full by the due date, a 
grace period of 31 days shall be granted to OPM for providing any 
premium due, unless OPM has previously given written notice to the 
Contractor that the contract is to be discontinued on the premium due 
date. The contract shall continue in force during the grace period.
    (c) If OPM fails to provide any premiums within the grace period, 
the contract shall be discontinued at the end of the 31st day of the 
grace period, unless the Contractor and OPM agree to continue the 
contract. OPM shall be liable to the Contractor for all premiums then 
due and unpaid. If during the grace period OPM presents written notice 
to the Contractor that the contract is to be discontinued before the 
expiration of the grace period, the contract shall be discontinued the 
later of the date of receipt of such written notice by the Contractor or 
the date specified by OPM for discontinuance. OPM shall be liable to the 
Contractor for all premiums then due and unpaid.
    (d) The specific premium rates, charges, allowances and limitations 
applicable to the contract are set forth in 5 CFR Parts 870 through 874, 
48 CFR chapter 1, LIFAR, and this contract.
    (e) In accordance with FAR 52.243-2, if a change is made to the 
contract that increases or decreases the cost of performance of the work 
under this contract, the Contracting Officer shall make an equitable 
adjustment to the estimate on which the monthly premiums are based.
    (f) In the event this contract is terminated in accordance with 
LIFAR Part 2149, the special contingency reserve held by the Contractor 
shall be available to pay the necessary and proper charges against this 
contract after other Program assets held by the Contractor are 
exhausted.
    (End of Clause)



Sec. 2152.232-71  Non-commingling of FEGLI Program funds.

    As prescribed in 2132.772, insert the following clause:

                   Non-Commingling of Funds (Oct 1993)

    (a) FEGLI Program funds shall be maintained in such a manner as to 
be separately identifiable from other assets of the Contractor. Cash and 
investment balances reported on the FEGLI Program Annual Accounting 
Statement must be supported by the Contractor's books and records.
    (b) The Contractor may request a modification of this requirement 
from the Contracting Officer. The modification shall be requested in 
advance and the Contractor shall demonstrate that accounting techniques 
have been established that will clearly measure FEGLI Program cash and 
investment income (i.e., subsidiary ledgers). Reconciliations between 
amounts reported and actual amounts shown in accounting records shall be 
provided as supporting schedules to the Annual Accounting Statements.
    (End of Clause)



Sec. 2152.232-72  Approval for assignment of claims.

    As prescribed in 2132.806, insert the following clause:

              Approval For Assignment of Claims (Oct 1993)

    (a) The Contractor shall not make any assignment of FEGLI Program 
funds under the Assignment of Claims Act without the prior written 
approval of the Contracting Officer.
    (b) Unless a different period is specified in the Contracting 
Officer's written approval, an assignment of FEGLI Program funds shall 
be in force only for a period of 1 year from the date of the Contracting 
Officer's approval. However, assignments may be renewed upon their 
expiration.
    (End of Clause)



Sec. 2152.237-70  Continuity of Services.

    As prescribed in 2137.110, insert the following clause:

                    Continuity of Service (Oct 1993)

    (a) The Contractor recognizes that the services under this contract 
are vital to the Government and must be continued without interruption 
and that, upon contract expiration or termination, including termination 
by the Contractor, a successor, either the Government or another 
contractor, may continue them. The Contractor agrees to (1) furnish 
phase-in training and (2) exercise its best efforts and cooperation to 
effect an orderly and efficient transition to a successor.
    (b) The Contractor shall, upon the Contracting Officer's written 
notice, (1) furnish phase-in and phase-out services for up to 10 months 
after this contract expires and (2) negotiate in good faith a plan with 
a successor to determine the nature and extent of phase-in and phase-out 
services required. The plan shall specify a training program and a date 
for transferring responsibilities for each division of work described in 
the plan, and shall be subject to the Contracting Officer's approval. 
The Contractor shall provide sufficient experienced personnel during the 
phase-in and phase-out period to ensure that the services called for by 
this contract are maintained at the required level of proficiency.
    (c) The Contractor shall allow as many personnel as practicable to 
remain on the job to help the successor maintain the continuity and 
consistency of the services required by this contract. The Contractor 
also shall disclose necessary personnel records and

[[Page 647]]

allow the successor to conduct onsite interviews with these employees. 
If selected employees are agreeable to the change, the Contractor shall 
release them at a mutually agreeable date and negotiate transfer of 
their earned fringe benefits to the successor.
    (d) The Contractor shall be reimbursed for all reasonable phase-in, 
phase-out costs (i.e., costs incurred within the agreed period after 
contract termination that result from phase-in and phase-out operations) 
and a risk or service charge not to exceed a pro rata portion of the 
risk or service charge under this contract. The amount of profit shall 
be based upon the accurate and timely processing of benefit claims, the 
volume and validity of complaints received by OPM, the timeliness and 
adequacy of reports on operations, and responsiveness to OPM offices, 
enrollees, beneficiaries, and Congress. In setting the final profit 
figure, obstacles overcome by the Contractor during the phase-in and 
phase-out period will be taken into consideration.
    (End of Clause)



Sec. 2152.243-70  Changes.

    As prescribed in 2143.205, insert the following clause:

                           Changes (Oct 1993)

    (a) Except as provided in paragraph (f) of this clause, the 
Contracting Officer may at any time, by written order, and without 
notice to the sureties, if any, make changes within the general scope of 
this contract in any one or more of the following:
    (1) Description of services to be performed.
    (2) Time of performance (i.e.: hours of the day, days of the week, 
etc.).
    (3) Place of performance of the services.
    (b) If any such change causes an increase or decrease in the cost 
of, or the time required for, performance of any part of the work under 
this contract, or the Contractor's liability under this contract, 
whether or not changed by the order, the Contracting Officer shall make 
an equitable adjustment in the contract price, the delivery schedule, or 
both, and shall modify the contract.
    (c) The Contractor must assert its right to an adjustment under this 
clause with 30 days from the date of receipt of the written order. 
However, if the Contracting Officer decides that the facts justify it, 
the Contracting Officer may receive and act upon a proposal submitted 
before final payment of the contract.
    (d) If the Contractor's proposal includes the cost of property made 
obsolete or excess by the change, the Contracting Officer shall have the 
right to prescribe the manner of the disposition of the property.
    (e) Failure to agree to any adjustment shall be a dispute under the 
Disputes clause. However, nothing in this clause shall excuse the 
Contractor from proceeding with the contract as changed.
    (f) The Contracting Officer shall not make any changes pursuant to 
paragraph (a) of this clause to conform this contract to any amendment 
in the LIFAR before the effective date of the amendment as provided for 
in LIFAR 2101.370.
    (End of Clause)



Sec. 2152.244-70  Subcontracts.

    As prescribed by 2144.204, insert the following clause:

                         Subcontracts (Oct 1993)

    (a) The Contractor shall notify the Contracting Officer reasonably 
in advance of entering into any subcontract or subcontract modification, 
or as otherwise specified by this contract, when the cost of that 
portion of the subcontract that is charged the FEGLI Program contract 
exceeds $200,000 and more than 25 percent of the subcontract cost is 
charged to the FEGLI Program contract.
    (b) The advance notification required by paragraph (a) of this 
clause shall include the following information:
    (1) A description of the supplies or services to be subcontracted;
    (2) Identification of the type of subcontract to be used;
    (3) Identification of the proposed subcontract and an explanation of 
why and how the proposed subcontractor was selected, including the 
competition obtained;
    (4) The proposed subcontract price and the Contractor's cost or 
price analysis;
    (5) The subcontractor's current, complete, and accurate cost or 
pricing data and Certificate of Current Cost or Pricing Data, if 
required by other contract provisions.
    (6) The subcontractor's Disclosure Statement or Certificate relating 
to Cost Accounting Standards when such data are required by other 
provisions of this contract; and
    (7) A negotiation memorandum reflecting--
    (i) The principal elements of the subcontract price negotiations;
    (ii) The most significant consideration controlling establishment of 
initial or revised prices;
    (iii) The reason cost or pricing data were or were not required;
    (iv) The extent, if any, to which the Contractor did not rely on the 
subcontractor's cost or pricing data in determining the price objective 
and in negotiating the final price;
    (v) The extent to which it was recognized in the negotiation that 
the subcontractor's cost or pricing data were not accurate, complete, or 
current; the action taken by the Contractor and the subcontractor; and 
the

[[Page 648]]

effect of any such defective data on the total price negotiated;
    (vi) The reasons for any significant difference between the 
Contractor's price objective and the price negotiated; and
    (vii) A complete explanation of the incentive fee or profit plan 
when incentives are used. The explanation shall identify each critical 
performance element, management decisions used to quantify each 
incentive element, reasons for the incentives, and a summary of all 
trade-off possibilities considered.
    (c) The Contractor shall obtain the Contracting Officer's written 
consent before placing any subcontract for which advance notification is 
required under paragraph (a) of this clause. However, the Contracting 
Officer may ratify in writing any such subcontract. Ratification shall 
constitute the consent of the Contracting Officer.
    (d) The Contracting Officer may waive the requirement for advance 
notification and consent required by paragraph (a), (b), and (c) of this 
clause where the Contractor and subcontractor submit an application or 
renewal as a contractor team arrangement as defined in FAR subpart 9.6 
and--
    (1) The Contracting Officer evaluated the arrangement during 
negotiation of the contract or contract renewal; and
    (2) The subcontractor's price and/or costs were included in the 
plan's rates that were reviewed and approved by the Contracting Officer 
during negotiations of the contract or contract renewal.
    (e) Unless the consent or approval specifically provides otherwise, 
consent by the Contracting Office to any subcontract shall not 
constitute a determination (1) of the acceptability of any subcontract 
terms or conditions; (2) of the allowability of any cost under this 
contract; or (3) to relieve the Contractor of any responsibility for 
performing this contract.
    (f) No subcontract placed under this contract shall provide for 
payment on a cost-plus-a-percentage-of-cost basis. Any fee payable under 
cost reimbursement type subcontracts shall not exceed the fee 
limitations in FAR 15.903(d). Any profit or fee payable under a 
subcontract shall be in accordance with the provisions of Section 
______, Service Charge.
    (g) The Contractor shall give the Contracting Officer immediate 
written notice of any action or suit filed and prompt notice of any 
claim made against the Contractor by any subcontractor or vendor that, 
in the opinion of the Contractor, may result in litigation related in 
any way to this contract with respect to which the Contractor may be 
entitled to reimbursement from the Government.
    (End of Clause)



Sec. 2152.246-70  Quality assurance requirements.

    As prescribed by 2146.270-1 insert the following clause:

                Quality Assurance Requirements (Oct 1993)

    (a) The Contractor shall develop and apply a quality assurance 
program as directed by the Contracting Officer pursuant to LIFAR 
2146.270.
    (b) The Contractor shall keep complete records of its quality 
assurance procedures and the results of their implementation and make 
them available to the Government during contract performance and for as 
long afterwards as the contract requires.
    (c) The Contracting Officer or his or her representative has the 
right to inspect and test all services called for by the contract, to 
the extent practicable, at all times and places during the term of the 
contract and for as long afterward as the contract requires. The 
Contracting Officer or his or her representative shall perform any 
inspections and tests in a manner that will not unduly delay the work.
    (End of Clause)



Sec. 2152.249-70  Renewal and termination.

    As prescribed in 2149.505-70, insert the following clause:

                   Renewal and Termination (Oct 1993)

    (a) This contract renews automatically each October 1st, unless 
written notice of termination is given by the Contractor not less than 
60 calendar days before the renewal date.
    (b) This contract may be terminated by OPM at any time for default 
by the Contractor. This contract terminates at the end of the 31st day 
after default for nonpayment by the Government, unless the Contractor 
and OPM agree to continue the contract.
    (c) This contract may be terminated for convenience of the 
Government 60 days after the Contractor's receipt of OPM's written 
notice of termination.
    (d) Upon termination of the contract, the Contractor agrees to 
assist OPM with an orderly and efficient transition to a successor in 
accordance with LIFAR 2137.102, 2137.110, and the provisions of the 
``Continuity of Services'' clause at 2152.237-70.
    (e) After receipt of a termination notice, the prime Contractor 
shall, unless directed otherwise by the Contracting Officer, terminate 
all subcontracts to the extent that they relate to the performance of 
the FEGLI Program contract. The failure of the prime Contractor to 
include an appropriate termination clause in any subcontract, or to 
exercise the clause rights, shall not affect the Contracting Officer's 
right to require the

[[Page 649]]

termination of the subcontract; or increase the obligation of the 
Government beyond what it would have been if the subcontract had 
contained an appropriate clause.
    (End of Clause)



               Subpart 2152.3--Provision and Clause Matrix



Sec. 2152.370  Use of the matrix.

    (a) The matrix in this section lists the FAR and LIFAR clauses to be 
used with the FEGLI Program contract. The clauses are to be incorporated 
in the contract in full text.
    (b) Certain contract clauses are mandatory for FEGLI Program 
contracts. Other clauses are to be used only when made applicable by 
pertinent sections of the FAR or LIFAR. An ``M'' in the ``Use Status'' 
column indicates that the clause is mandatory. An ``A'' indicates that 
the clause is to be used only when the applicable conditions are met.

                                           FEGLI Program Clause Matrix                                          
----------------------------------------------------------------------------------------------------------------
        Clause No.                 Text reference                        Title                     Use status   
----------------------------------------------------------------------------------------------------------------
FAR 52.202-1                FAR 2.2                       Definitions........................  M                
FAR 52.203-1                FAR 3.102-2                   Officials Not to Benefit...........  M                
FAR 52.203-3                FAR 3.202                     Gratuities.........................  M                
FAR 52.203-5                FAR 3.404(c)                  Covenant Against Contingent Fees...  M                
FAR 52.203-6                FAR 3.503-2                   Restrictions of Subcontractor Sales  M                
                                                           to the Government.                                   
FAR 52.203-7                FAR 3.502-3                   Anti-Kickback Procedures...........  M                
FAR 52.203-9                FAR 3.104-10(b)               Requirement for Certificate of       M                
                                                           Procurement Integrity--                              
                                                           Modification.                                        
FAR 52.203-12               FAR 3.808                     Limitation on Payments to Influence  M                
                                                           Certain Federal Transactions.                        
2152.203-70                 2103.571                      Misleading, Deceptive, or Unfair     M                
                                                           Advertising.                                         
FAR 52.209-6                FAR 9.409(b)                  Protecting the Government's          M                
                                                           Interest When Subcontracting With                    
                                                           Contractors Debarred, Suspended,                     
                                                           or Proposed for Debarment.                           
2152.209-71                 2109.409(b)                   Certification Regarding Debarment,   M                
                                                           Suspension, Proposed Debarment,                      
                                                           and Other Responsibility Matters.                    
2152.210-70                 2110.7004(a)                  Investment Income..................  M                
2152.210-71                 2110.7004(b)                  Notice of Significant Events.......  M                
FAR 52.215-1                FAR 15.106-1(b)               Examination of Records by            M                
                                                           Comptroller General.                                 
FAR 52.215-2                FAR 15.106-2(b)               Audit--Negotiation.................  M                
FAR 52.215-22               FAR 15.804-8(a)               Price Reduction for Defective Cost   M                
                                                           or Pricing Data.                                     
FAR 52.215-24               FAR 15.804-8(c)               Subcontractor Cost or Pricing Data.  M                
FAR 52.215-27               FAR 15.804-8(e)               Termination of Defined Benefit       M                
                                                           Pension Plans.                                       
FAR 52.215-30               FAR 15.904                    Facilities Capital Cost of Money...  M                
FAR 52.215-31               FAR 15.904                    Waiver of Facilities Capital Cost    A                
                                                           of Money.                                            
FAR 52.215-39               FAR 15.804-8(f)               Reversion or Adjustment of Plans     A                
                                                           for Post-retirement Benefits (PRB)                   
                                                           Other Than Pensions.                                 
2152.215-70                 2115.106-270                  Contractor Records Retention.......                   
2152.216-70                 2116.270-1(a)                 Fixed Price With Limited Cost        A                
                                                           Redetermination--Risk Charge.                        
2152.216-71                 2116.270-1(b)                 Fixed Price With Limited Cost        A                
                                                           Redetermination--Service Charge.                     
FAR 52.219-8                FAR 19.708(a)                 Utilization of Small Business        M                
                                                           Concerns and Small Disadvantaged                     
                                                           Business Concerns.                                   
FAR 52.219-13               FAR 19.902                    Utilization of Women-Owned Small     M                
                                                           Businesses.                                          
FAR 52.220-3                FAR 21.302(a)                 Utilization of Labor Surplus Area    M                
                                                           Concerns.                                            
FAR 52.222-1                FAR 22.103-5(a)               Notice to the Government of Labor    M                
                                                           Disputes.                                            
FAR 52.222-3                FAR 22.202                    Convict Labor......................  M                
FAR 52.222-4                FAR 22.305(a)                 Contract Work Hours and Safety       M                
                                                           Standards Act--Overtime                              
                                                           Compensation--General.                               
FAR 52.222-21               FAR 22.810(a)(1)              Certification of NonSegregated       M                
                                                           Facilities.                                          
FAR 52.222-22               FAR 22.810(a)(2)              Previous Contracts and Compliance    M                
                                                           Reports.                                             
FAR 52.222-25               FAR 22.810(d)                 Affirmative Action Compliance......  M                
FAR 52.222-26               FAR 22.810(e)                 Equal Opportunity..................  M                
FAR 52.222-28               FAR 22.810(g)                 Equal Opportunity Preaward           M                
                                                           Clearance of Subcontracts.                           
FAR 52.222-29               FAR 22.810(h)                 Notification of Visa Denial........  A                
FAR 52.222-35               FAR 22.1308(a)                Affirmative Action for Special       M                
                                                           Disabled and Vietnam Era Veterans.                   
FAR 52.222-36               FAR 22.1408(a)                Affirmative Action for Handicapped   M                
                                                           Workers.                                             
FAR 52.222-37               FAR 22.1308(b)                Employment Reports on Special        M                
                                                           Disabled Veterans and Veterans of                    
                                                           the Vietnam Era.                                     
FAR 52.223-2                FAR 23.105(b)                 Clean Air and Water................  A                
FAR 52.223-6                FAR 23.505(c)                 Drug-Free Workplace................  M                
2152.224-70                 2124.104-70                   Confidentiality of Records.........  M                
FAR 52.227-1                FAR 27.201-2(a)               Authorization and Consent..........  M                

[[Page 650]]

                                                                                                                
FAR 52.227-2                FAR 27.202-2                  Notice and Assistance..............  A                
FAR 52.228-7                FAR 28.311-2 Modification:    Insurance--Liability to Third        M                
                             2128.370                      Persons.                                             
2152.231-70                 2131.270                      Accounting and Allowable Cost......  M                
FAR 52.232-9                FAR 32.111(c)(2)              Limitation on Withholding of         M                
                                                           Payments (Modified).                                 
FAR 52.232-17               FAR 32.617 Modification:      Interest...........................  M                
                             2132.617                                                                           
FAR 52.232-23               FAR 32.806(a)(1)              Assignment of Claims...............  A                
FAR 52.232-28               FAR 32.908(d)                 Electronic Funds Transfer Payment    M                
                                                           Method.                                              
2152.232-70                 2132.171                      Payments...........................  M                
2152.232-71                 2132.772                      Non-Commingling of FEGLI Program     M                
                                                           Funds.                                               
2152.232-72                 2132.806                      Approval for Assignment of Claims..  M                
FAR 52.233-1                FAR 33.214                    Disputes (Alternate I).............  M                
2152.237-70                 2137.110                      Continuity of Services.............  M                
FAR 52.242-1                FAR 42.802                    Notice of Intent to Disallow Costs.  M                
FAR 52.242-13               FAR 42.903                    Bankruptcy.........................  M                
2152.243-70                 2143.205                      Changes--FEGLI Program Contract....  M                
FAR 52.244-5                FAR 44.204(e)                 Competition in Subcontracting......  M                
2152.244-70                 2144.204                      Subcontracts.......................  M                
4FAR 52.245-2               FAR 45.106(b)(1)              Government Property (Fixed-Price     M                
                                                           Contracts).                                          
FAR 52.246-4                FAR 46.304                    Inspection of Services--Fixed-Price  M                
FAR 52.246-25               FAR 46.805(a)(4)              Limitation of Liability--Services..  M                
2152.246-70                 2146.270-1                    Quality Assurance Requirements.....  M                
FAR 52.247-63               FAR 47.405                    Preference for U.S.-Flag Air         M                
                                                           Carriers.                                            
FAR 52.249-2                FAR 49.502(b)(1)              Termination for Convenience of the   M                
                                                           Government (Fixed Price).                            
FAR 52.249-8                FAR 49.504(a)(1)              Default (Fixed-Price Supply and      M                
                                                           Service).                                            
FAR 52.249-14               FAR 49.505(d)                 Excusable Delays...................  M                
2152.249-70                 2149.505-70                   Renewal and Termination............  M                
FAR 52.251-1                FAR 51.107                    Government Supply Sources..........  A                
FAR 52.252-4                FAR 52.107(d)                 Alterations in Contract............  M                
FAR 52.252-6                FAR 52.107(f)                 Authorized Deviations in Clauses...  M                
----------------------------------------------------------------------------------------------------------------


[[Page 651]]



               CHAPTER 23--SOCIAL SECURITY ADMINISTRATION




                          (Parts 2300 to 2399)

  --------------------------------------------------------------------








                          SUBCHAPTER A--GENERAL
Part                                                                Page
2301            Social Security Acquisition Regulation 
                    System..................................         652

[[Page 652]]





                          SUBCHAPTER A--GENERAL





PART 2301--SOCIAL SECURITY ACQUISITION REGULATION SYSTEM--Table of Contents




              Subpart 2301.1--Purpose, Authority, Issuance

2301.101  Purpose.
2301.103  Authority.
2301.104  Applicability.
2301.105  Issuance.
2301.105-1  Publication and code arrangement.
2301.105-2  Arrangement of regulations.

    Authority: 5 U.S.C. 301, 40 U.S.C. 486(c).

    Source: 61 FR 50738, Sept. 27, 1996, unless otherwise noted.

    Effective Date Note: At 61 FR 50738, Sept. 27, 1996, part 2301 was 
added, effective Oct. 28, 1996.



              Subpart 2301.1--Purpose, Authority, Issuance



Sec. 2301.101  Purpose.

    (a) The Social Security Acquisition Regulation (SSAR) is issued to 
establish uniform acquisition policies and procedures for the Social 
Security Administration (SSA) which conform to the Federal Acquisition 
Regulation (FAR) System.
    (b) The SSAR implements and supplements the FAR. (Implementing 
material expands upon or indicates the manner of compliance with related 
FAR material. Supplementing material refers to policies or procedures 
which have no corresponding counterpart in the FAR.)
    (c) The SSAR contains only formal agency policies and procedures 
which have a significant effect beyond SSA's internal operating 
procedures or which have a significant cost or administrative impact on 
contractors or offerors.



Sec. 2301.103  Authority.

    The SSAR is prescribed under the authority of 5 U.S.C. 301 and 
section 205(c) of the Federal Property and Administrative Services Act 
of 1949, as amended (40 U.S.C. 486(c)).



Sec. 2301.104  Applicability.

    The FAR and SSAR apply to all SSA acquisitions as stated in FAR 
1.104. Unless specified otherwise, the FAR and SSAR apply to 
acquisitions within and outside the United States.
2301.105  Issuance.



Sec. 2301.105-1  Publication and code arrangement.

    (a) The SSAR is also published in the same forms as indicated in FAR 
1.105-1(a).
    (b) The SSAR is issued in the Code of Federal Regulations (CFR) as 
Chapter 23 of Title 48, Social Security Acquisition Regulation (SSAR). 
It may be referenced as ``48 CFR chapter 23.''



Sec. 2301.105-2  Arrangement of regulations.

    (a) General. The SSAR conforms to the FAR with respect to divisional 
arrangements; i.e., subchapters, parts, subparts, sections, subsections, 
and paragraphs.
    (b) Numbering. The FAR System of numbering permits the keying of the 
same or similar subject matter throughout Chapters 1 (FAR) and 23 (SSAR) 
of Title 48, CFR. However, SSA's system varies somewhat from that of the 
FAR numbering scheme, in the numbering to the left of the decimal point. 
Whereas the FAR only identifies the part number of 48 CFR to the left of 
the decimal point, our corresponding reference identifies the chapter as 
well. For example, the FAR paragraph corresponding to this SSAR 
paragraph is numbered 1.105-2(b) where ``1'' is the part number (may be 
one or two digits and is followed by a decimal point), ``1'' (to the 
right of the decimal point) is the subpart number, ``05'' (always two 
digits) is the section number, ``2'' is the subsection number (always 
hyphenated), and ``(b)'' is the paragraph reference. This SSAR reference 
is 2301.105-2(b) where the ``23'' is the chapter number assigned to SSA 
and the ``01'' represents the part number (part numbers will always be 
two digits for agencies implementing the FAR). The remaining numbers to 
the right of

[[Page 653]]

the decimal point are identical to and reflect the same divisions as in 
the FAR numbering scheme.
    (c) References and citations. (1) Unless otherwise stated, 
references indicate parts, subparts, sections, subsections, etc., of 
this regulation, the SSAR.
    (2) This regulation shall be referred to as the Social Security 
Acquisition Regulation (SSAR). Any reference may be cited as ``SSAR'' 
followed by the appropriate number. Within the SSAR, the number alone 
will be used.
    (3) Citations of authority shall be incorporated where necessary. 
All FAR reference numbers shall be preceded by ``FAR.''

[[Page 655]]



         CHAPTER 24--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT




                          (Parts 2400 to 2499)

  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
2401            Federal Acquisition Regulation System.......         657
2402            Definitions of words and terms..............         661
2403            Improper business practices and personal 
                    conflicts of interest...................         661
2404            Administrative matters......................         663
           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
2405            Publicizing contract actions................         664
2406            Competition requirements....................         664
2407            Acquisition planning........................         665
2409            Contractor qualifications...................         665
2411            Describing agency needs.....................         667
         SUBCHAPTER C--CONTRACTING METHODS AND CONTRACTING TYPES
2413            Small purchase and other simplified purchase 
                    procedures..............................         668
2414            Sealed bidding..............................         668
2415            Contracting by negotiation..................         669
2416            Types of contracts..........................         672
2417            Special contracting methods.................         673
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
2419            Small business programs.....................         674
2420      [Reserved]
2422            Application of labor laws to government 
                    acquistions.............................         675
2424            Protection of privacy and freedom of 
                    information.............................         675
2425            Trade Agreements Act........................         675
2426            Other socioeconomic programs................         676

[[Page 656]]

2427            Patents, data, and copyrights...............         676
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
2428            Bonds and insurance.........................         677
2429            Taxes.......................................         677
2432            Contract financing..........................         677
2433            Protests, disputes, and appeals.............         678
2434            Major system acquisitions...................         679
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
2436            Construction and architect-engineer 
                    contracts...............................         680
2437            Service contracting.........................         680
                    SUBCHAPTER G--CONTRACT MANAGEMENT
2442            Contract adminstration......................         682
2446            Quality assurance...........................         682
2449            Termination of contracts....................         683
2451            Use of government sources by contractors....         683
                     SUBCHAPTER H--CLAUSES AND FORMS
2452            Solicitation provisions and contract clauses         684
2453            Forms.......................................         696

[[Page 657]]



                          SUBCHAPTER A--GENERAL





PART 2401--FEDERAL ACQUISITION REGULATION SYSTEM--Table of Contents




Sec.
2401.000 Scope of part.

              Subpart 2401.1--Purpose, Authority, Issuance

2401.100  Scope of subpart.
2401.101  Purpose.
2401.103  Authority.
2401.104  Applicability.
2401.105  Issuance.
2401.105-2  Arrangement of regulations.
2401.106  OMB approval under the Paperwork Reduction Act.

             Subpart 2401.3--Agency Acquisition Regulations

2401.301  Policy.
2401.302  Limitations.

                 Subpart 2401.4--Deviations From the FAR

2401.403  Individual deviations.
2401.404  Class deviations.

     Subpart 2401.6--Career Development, Contracting Authority, and 
                            Responsibilities

2401.601  General.
2401.601-70  Senior Procurement Executive.
2401.601-71  Office of Procurement and Contracts.
2401.601-72  Government National Mortgage Association (GNMA).
2401.601-73  Administrative Service Centers.
2401.602  Contracting Officers.
2401.602-3  Ratification of unauthorized commitments.
2401.603  Selection, appointment and termination of appointment.
2401.603-2  Selection.
2401.603-3  Appointment.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 49 FR 7697, Mar. 1, 1984, unless otherwise noted.



Sec. 2401.000  Scope of part.

    This part describes the method by which the Department of Housing 
and Urban Development (HUD) implements, supplements and deviates from 
the Federal Acquisition Regulation (FAR) through the establishment of 
the HUD Acquisition Regulation (HUDAR), which prescribes the 
Department's procurement policies and procedures under the FAR System.



              Subpart 2401.1--Purpose, Authority, Issuance



Sec. 2401.100  Scope of subpart.

    This subpart describes the HUDAR and states its relationship to the 
FAR System. This subpart also provides the explanation of the purpose 
and the authorities under which the HUDAR is issued.



Sec. 2401.101  Purpose.

    The Department of Housing and Urban Development Acquisition 
Regulation is hereby established as chapter 24 of the Federal 
Acquisition Regulation System (48 CFR chapter 24). It is issued to 
provide uniform Departmental policies and procedures for the acquisition 
of supplies, personal property and non-personal services by the 
Department's contracting activities and to make these policies and 
procedures readily available to Departmental personnel and to the 
public.



Sec. 2401.103  Authority.

    The HUDAR is prescribed by the Assistant Secretary for 
Administration under section 7(d) of the Department of HUD Act (42 
U.S.C. 3535(d)), section 205(c) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 486(c)), the Secretary's 
delegation effective January 19, 1976, 41 FR 2665, and the general 
authorization in FAR 1.301.

[49 FR 7697, Mar. 1, 1984. Redesignated at 61 FR 19470, May 1, 1996]



Sec. 2401.104  Applicability.

    All acquisition of personal property and non-personal services 
(including construction) by HUD, except as may be otherwise authorized 
by law, must be accomplished in accordance with the HUDAR and the FAR.

[49 FR 7697, Mar. 1, 1984. Redesignated at 61 FR 19470, May 1, 1996]

[[Page 658]]

2401.105  Issuance.



Sec. 2401.105-2  Arrangement of regulations.

    (a) General. Chapter 24 is divided into parts, subparts, sections, 
subsections, paragraphs and further subdivisions as necessary.
    (b) Numbering. Generally, the numbering system and part, subpart, 
and section titles used in the HUDAR conform with those used in the FAR 
or as follows:
    (1) When the HUDAR implements or deviates from a parallel part, 
subpart, section, subsection, or paragraph of the FAR, that 
implementation or deviation will be numbered and captioned where 
possible to correspond to the FAR part, subpart, section, subsection, or 
paragraph. For example, FAR subpart 1.4, Deviations, is implemented in 
HUD's acquisition regulations at subpart 2401.4, Deviations. (The ``24'' 
in the number indicates what chapter of title 48 contains the HUDAR.)
    (2) When HUD supplements material contained in the FAR, it is given 
a unique number containing the numerals ``70'' or higher. The rest of 
the number will parallel the FAR part, subpart, section, subsection, or 
paragraph it is supplementing. For example, FAR 14.407, Award, does not 
contain a provision for the steps to be taken when only one bid is 
received. The HUDAR provides this information. Since the subject matter 
supplements what is contained in FAR 14.407, the HUDAR section 
supplementing the FAR is numbered 2414.407-70.
    (3) Where material in the FAR requires no implementation or 
deviation, there is no corresponding numbering in the HUDAR. Therefore, 
there may be gaps in the HUDAR sequence of numbers where the FAR, as 
written, is applicable to the HUDAR and requires no further 
implementation.
    (c) Citation. The HUDAR will be cited in accordance with Federal 
Register standards approved for the FAR. Thus, this section when 
referred to in the HUDAR is cited as 2401.104-2(c). When this section is 
referred to formally in official documents, such as legal briefs, it 
should be cited as ``48 CFR 2401.104-2(c).'' Any section of the HUDAR 
may be formally identified by the section number, e.g., ``HUDAR 
2401.104-2.'' In the HUDAR, any reference to the FAR will be indicated 
by ``FAR'' followed by the section number, for example FAR 37.108.

[49 FR 7697, Mar. 1, 1984, as amended at 58 FR 49437, Sept. 23, 1993. 
Redesignated at 61 FR 19470, May 1, 1996]



Sec. 2401.106  OMB approval under the Paperwork Reduction Act.

    The Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520) requires 
that Federal agencies obtain approval from the Office of Management and 
Budget (OMB) before collecting information from 10 or more persons. HUD 
has received approval from OMB to collect information under the 
provisions of its Acquisition Regulation. The OMB Approval Number is 
2535-0091.

[50 FR 46575, Nov. 8, 1985. Redesignated at 61 FR 19470, May 1, 1996]



             Subpart 2401.3--Agency Acquisition Regulations



Sec. 2401.301  Policy.

    (a)(1) Implementation. The HUDAR implements and supplements the FAR. 
Implementation material is that which expands upon related FAR material. 
Supplementing material is that for which there is no counterpart in the 
FAR.



Sec. 2401.302  Limitations.

    (c) Exclusions. Certain HUD policies and procedures which come 
within the scope of this chapter are not included in the HUDAR. Not 
included is a policy or procedure of an internal nature or which is 
expected to be effective for a period of less than six months.



                       Subpart 2401.4--Deviations



Sec. 2401.403  Individual deviations.

    In individual cases, proposed deviations from the FAR or HUDAR shall 
be submitted to the Senior Procurement Executive (see 2401.601-70) for 
approval or other necessary or appropriate action. A supporting 
statement shall be submitted with the proposed deviation indicating 
briefly the nature of the deviation and the reasons for granting the 
deviation, consistent with

[[Page 659]]

FAR 1.402. The contract file shall include a copy of the request 
submitted and the approval. In emergency situations involving individual 
cases, deviation approvals may be processed by telephone and later 
confirmed in writing.

[49 FR 7697, Mar. 1, 1984, as amended at 51 FR 7948, Mar. 7, 1986; 53 FR 
46533, Nov. 17, 1988]



Sec. 2401.404  Class deviations.

    For deviations which affect more than one contracting action, 
proposed deviations from the FAR or HUDAR shall be submitted to the 
Senior Procurement Executive for approval or other necessary or 
appropriate action. Requests for deviations shall be supported by 
statements which fully disclose the nature of the deviation and the need 
there of. The Senior Procurement Executive will consider the proposal on 
an expedited basis and in the case of a proposed FAR deviation will 
comply with FAR 1.404.

[49 FR 7697, Mar. 1, 1984, as amended at 51 FR 7948, Mar. 7, 1986]



     Subpart 2401.6--Career Development, Contracting Authority, and 
                            Responsibilities

2401.601  General.



Sec. 2401.601-70  Senior Procurement Executive.

    The Assistant Secretary for Administration is the Department's 
Senior Procurement Executive and is responsible for all Departmental 
procurement policy, regulations, and procedures, except for internal 
procedures related to procurement transactions conducted by the 
Government National Mortgage Association. The Senior Procurement 
Executive is also responsible for the development of HUD's procurement 
system standards, evaluation of the system in accordance with approved 
criteria, enhancement of career management of the procurement work 
force, and certification to the Secretary that the Department's 
procurement system meets approved criteria.

[57 FR 59787, Dec. 15, 1992]



Sec. 2401.601-71  Office of Procurement and Contracts.

    Except as provided otherwise is this chapter, the Office of 
Procurement and Contracts, in the Office of the Assistant Secretary for 
Administration, is responsible for all Departmental procurement.

[57 FR 59787, Dec. 15, 1992]



Sec. 2401.601-72  Government National Mortgage Association.

    (a) The President, GNMA, may exercise authority under section 306(g) 
of the National Housing Act and 24 CFR part 390 to enter into agreements 
with the issuers of mortgage-backed securities. The FAR and the HUDAR do 
not apply to these transactions, including the assignation of servicing 
requirements to a substitute servicer or issuer in the event of a 
default by, or other termination of, an issuer.
    (b) Sales or guarantees of securities by GNMA are outside the scope 
of this part.
    (c) All contracts that are not within the scope of paragraphs (a) 
and (b) of this section, and that are for the acquisition of supplies 
and services, shall be awarded in conformance with the FAR and HUDAR 
and, as appropriate, the FIRMR.

[57 FR 59787, Dec. 15, 1992]



Sec. 2401.601-73  Administrative Service Centers.

    Procurement of supplies and services for HUD field components is 
accomplished at the three Administrative Service Centers, each of which 
has a Contracting Division. The ASC Contracting Division Director may 
redelegate contracting authority to qualified personnel within their 
service area jurisdiction, consistent with the Department's published 
delegations of procurement authority and 2401.603.

[60 FR 46154, Sept. 5, 1995]
2401.602  Contracting Officers.



Sec. 2401.602-3  Ratification of unauthorized commitments.

    (b)(1) Policy. A request for ratification shall be sent to the 
Contracting Officer through the Head of the Contracting Activity (HCA). 
The request

[[Page 660]]

will include an explanation as to the need for the service, the reason 
why normal procurement procedures were not followed, to what extent 
price competition was received or the price otherwise justified, and, 
corrective management actions to avoid ratifications in the future. If 
the justification is adequate, the ratification will be signed by the 
Contracting Officer and forwarded to the HCA or designee for approval.
    (b)(3) The HCA may delegate authority to approve ratifications below 
the simplified acquisition threshold to:
    (i) Contracting division directors (Headquarters); or,
    (ii) Contracting branch chiefs (Field).
    (c)(5) Legal concurrence may be requested if there is a legal issue 
involved, e.g. the propriety of the funding source, appropriateness of 
the expense, etc.

[60 FR 46154, Sept. 5, 1995]
2401.603  Selection, appointment and termination of appointment.



Sec. 2401.603-2  Selection.

    In selecting Contracting Officers, the appointing authorities shall 
consider experience, education, training, business acumen, judgment, 
character, reputation and ethics. In the area of experience, education 
and training, the following shall be required unless contracting 
authority is limited to simplified small purchase procedures:
    (a) Experience, for appointment of an individual to a position 
having Contracting Officer authority, shall consist of a minimum of two 
years experience performing contracting, procurement or purchasing 
operations in a government or commercial procurement office. 
Alternatively, where appointment of a Contracting Officer involves a 
specialized procurement field, experience in that field may be 
considered as a criterion for the appointment.
    (b) Educational requirements for an individual in a position having 
Contracting Officer authority shall be, as a minimum, the equivalent of 
a Bachelor's Degree from an accredited college or institution preferably 
with major studies in Business Administration, Law, Accounting or 
related fields. Experience related to the field of procurement involved 
(e.g., supply construction, etc.), gained in a government or 
nongovernment contracting office, may be substituted for educational 
requirements when it is determined in writing and made a part of the 
appointment files (as stipulated in 2401.603-3(b)) that a potential 
appointee is otherwise qualified by virtue of extensive contract-related 
experience or training.
    (c) Training courses as prescribed by the Senior Procurement 
Executive.
    (d) The selection requirements specified in paragraphs (a) through 
(c) of this section are applicable to all full-time permanent (FTP) 
personnel whose primary duties are performed as a Contracting Officer as 
opposed to the individuals who supervise Contracting Officers, or to 
individuals who normally spend less than 10 percent of their time in the 
capacity of a Contracting Officer.

[49 FR 7697, Mar. 1, 1984; 49 FR 10930, Mar. 23, 1984, as amended at 57 
FR 59787, Dec. 15, 1992]



Sec. 2401.603-3  Appointment.

    (a) Appointments below the level of Assistant Secretary shall be 
made in writing by the Head of the Contracting Activity on a 
``Certificate of Appointment,'' SF 1402. Limitations on the scope of the 
authority to be exercised by the Contracting Officer, other than those 
contained in applicable laws and regulations shall be entered on the 
face of the appointment notification.
    (b) Appointing officials will execute a written affirmative 
statement that the individual, placed in the position to commit the 
Government as Contracting Officer, meets the selection criteria of the 
Federal Acquisition Regulation and HUDAR. If a temporary waiver (see 
2401.603-2) is to be granted concerning the training requirements, the 
written statement should include the waiver and the statement that the 
training requirements must be met within 24 months. This statement shall 
be made part of the official personnel file of the Contracting Officer 
or the individual so selected or designated. The designation and 
statement shall be based on the size and complexity of contracts the 
individual will be required to execute and administer, and also shall 
consider any

[[Page 661]]

limitations on the scope of the authority to be exercised.

[49 FR 7697, Mar. 1, 1984, as amended at 57 FR 59787, Dec. 15, 1992]



PART 2402--DEFINITIONS OF WORDS AND TERMS--Table of Contents




Sec.
2402.000  Scope of part.

                       Subpart 2402.1--Definitions

2402.101  Definitions.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).



Sec. 2402.000  Scope of part.

    This part contains definitions of terms used generally throughout 
the HUDAR, in addition to those set forth in FAR part 2. Additional 
definitions will be found in individual subparts of the FAR and HUDAR 
covering terms used in those subparts only.

[49 FR 7699, Mar. 1, 1984]



                       Subpart 2402.1--Definitions



Sec. 2402.101  Definitions.

    Accounting Office means the Office of Finance and Accounting in 
headquarters or the Field Accounting Divisions in the field.
    Best Value is an approach to source selection that considers the 
appropriate balance of technical merit, management capability, and cost/
price factors in deciding which proposal offers the overall ``best 
value'' to the Government. A best value procurement permits the 
government to award a contract to an offeror with a higher price in 
order to obtain a better technical product or service with a lower risk 
that performance will be unsuccessful. The selection decision may be 
based on a determination of whether to tradeoff paying a higher price to 
obtain the added value of a particular proposal.
    Department--means The Department of Housing and Urban Development, 
which may also be designated as ``HUD''.
    Head of Contracting Activity (HCA) is defined in accordance with the 
FAR. The following HUD officials are designated HCAs:
    (1) Director, Office of Procurement and Contracts, for HUD 
Headquarters procurement;
    (2) The Directors, Administrative Service Center Contracting 
Divisions for field procurement;
    (3) The President, Government National Mortgage Association (GNMA), 
for procurement transactions that are conducted by GNMA in accordance 
with 2401.601-72(c).
    Legal Counsel means the Office of General Counsel in Headquarters, 
or the cognizant Assistant General Counsel in the field.
    Lowest-Priced Technically Acceptable Proposal is an approach to 
source selection under which all evaluation factors, except price, are 
evaluated on a ``Pass-Fail'' basis. It is used when price will be the 
deciding factor once the technical acceptability of proposals has been 
determined.
    Primary Organization Heads are those officials of the Department who 
are responsible for the major organizational components of HUD and who 
report directly to the Secretary or Deputy Secretary. The Primary 
Organization Heads of HUD include: the Assistant Secretaries, the 
Inspector General, and the General Counsel.
    Secretary--means the Secretary of the Department of Housing and 
Urban Development, or his or her designee.
    Senior Procurement Executive--means the Assistant Secretary for 
Administration. The Senior Procurement Executive's responsibilities are 
stated in HUDAR 2401.601-70.
    Source Selection Official means the head of the office initiating 
and providing funding for the procurement, or his/her designee. This 
role may also be delegated to the contracting officer.

[50 FR 46575, Nov. 8, 1985, as amended at 52 FR 47396, Dec. 14, 1987; 53 
FR 46534, Nov. 17, 1988; 57 FR 59787, Dec. 15, 1992; 58 FR 49437, Sept. 
23, 1993; 60 FR 46154, Sept. 1995]



PART 2403--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents




                       Subpart 2403.1--Safeguards

Sec.
2403.101  Standards of conduct.

[[Page 662]]

      Subpart 2403.2--Contractor Gratuities to Government Personnel

2403.203  Reporting procedures.
2403.204  Treatment of violations.

        Subpart 2403.3--Reports of Suspected Antitrust Violations

2403.303-70  Reporting requirements.

                     Subpart 2403.4--Contingent Fees

2403.408-1  Responsibilities.
2403.409  Misrepresentations or violations of the Covenant Against 
          Contingent Fees.

            Subpart 2403.5--Other Improper Business Practices

2403.502  Subcontractor kickbacks.

  Subpart 2403.6--Contracts With Government Employees or Organizations 
                       Owned or Controlled by Them

2403.601  Policy.
2403.670  Solicitation provision and contract clause.

    Authority: 42 U.S.C. 3535(d).

    Source: 49 FR 7700, Mar. 1, 1984, unless otherwise noted.



                       Subpart 2403.1--Safeguards



Sec. 2403.101  Standards of conduct.

    Detailed rules which apply to the conduct of HUD employees are set 
forth in 24 CFR part 0.



      Subpart 2403.2--Contractor Gratuities to Government Personnel



Sec. 2403.203  Reporting procedures.

    Suspected violations of the gratuities clause (FAR 52.203-3) shall 
be reported to the Head of the Contracting Activity (HCA) in writing. 
The HCA will request the Office of Inspector General (OIG) to conduct 
any necessary investigation. Upon receipt of the OIG report, the HCA 
will evaluate the circumstances to determine if a violation has 
occurred. The HCA will refer violations and recommended corrective 
actions to the Senior Procurement Executive for disposition.

[49 FR 7700, Mar. 1, 1984, as amended at 51 FR 7948, Mar. 7, 1986]



Sec. 2403.204  Treatment of violations.

    The Senior Procurement Executive will process violations in 
accordance with FAR 3.204.

[49 FR 7700, Mar. 1, 1984, as amended at 51 FR 7948, Mar. 7, 1986]



        Subpart 2403.3--Reports of Suspected Antitrust Violations



Sec. 2403.303-70  Reporting requirements.

    Potential anti-competitive practices such as described in FAR 
subpart 3.3, evidenced in bids or proposals, shall be reported to the 
Office of General Counsel through the Head of the Contracting Activity 
with a copy to the Senior Procurement Executive and the Inspector 
General. The Office of General Counsel will provide reports to the 
Attorney General as appropriate.

[49 FR 7700, Mar. 1, 1984, as amended at 51 FR 7948, Mar. 7, 1986]



                     Subpart 2403.4--Contingent Fees



Sec. 2403.408-1  Responsibilities.

    (b) The contracting officer's documentation of the evaluation, 
conclusion, and any proposed actions shall be submitted for the review 
and approval of the Head of the Contracting Activity and the Office of 
General Counsel.



Sec. 2403.409  Misrepresentations or violations of the Covenant Against Contingent Fees.

    (a) Government personnel who suspect or have evidence of attempted 
or actual exercise of improper influence, misrepresentation of a 
contingent fee arrangement, or other violation of the Covenant against 
Contingent Fees shall report the matter promptly to the Head of the 
Contracting Activity.
    (b) When there is specific evidence or other reasonable basis to 
suspect one or more of the violations in paragraph (a) of this section, 
the Head of the Contracting Activity shall review the facts and, if 
appropriate, take or direct one or more of the following, or other, 
actions:
    (1) If before award, reject the bid or proposal.

[[Page 663]]

    (2) If after award, enforce the government's right to void the 
contract or to recover the fee.
    (3) Initiate suspension or debarment action.
    (4) Refer suspected fraudulent or criminal matters to the Office of 
Inspector General for possible referral to the Department of Justice.



            Subpart 2403.5--Other Improper Business Practices



Sec. 2403.502  Subcontractor kickbacks.

    (b) Contracting Officers shall report suspected violations of the 
Anti-Kickback Act through the Head of the Contracting Activity to the 
Office of Inspector General consistent with the procedures for reporting 
any violation of law contained in HUD Handbook 2000.3, REV. 2, Office of 
Inspector General Activities (1983).



  Subpart 2403.6--Contracts With Government Employees or Organizations 
                       Owned or Controlled by Them



Sec. 2403.601  Policy.

    The Senior Procurement Executive must approve exceptions to the 
restriction against contracts with Government employees under FAR 
subpart 3.6. In addition, the Contracting Officer shall comply with FAR 
subpart 9.5 before awarding any such contract.

[49 FR 7700, Mar. 1, 1984, as amended at 51 FR 7948, Mar. 7, 1986]



Sec. 2403.670  Solicitation provision and contract clause.\1\
---------------------------------------------------------------------------

    \1\ This HUDAR provision/clause has been submitted to the FAR 
Secretariat for consideration as FAR coverage with Governmentwide 
application. In the event that similar FAR coverage is issued, HUD will 
rescind the corresponding HUDAR text.
---------------------------------------------------------------------------

    Insert the clause at 2452.203-70 in all solicitations and contracts, 
and the provision at 2452.203-71 in all solicitations.

[57 FR 59788, Dec. 15, 1992]



PART 2404--ADMINISTRATIVE MATTERS--Table of Contents




    Authority: 42 U.S.C. 3535(d).



                Subpart 2404.8--Government Contract Files



Sec. 2404.805  Storage, handling and disposal of contract files.

    (a) Unsuccessful cost and technical proposals shall be retained in 
the contracting activity for a period of two months following the 
contract award as reference material for debriefings. Upon expiration of 
the two month period, the contracting office shall either:
    (1) Retain one copy of each such proposal with the official contract 
file; or,
    (2) Ship one copy of each unsuccessful bid or proposal to the 
Federal Records Center unless a debriefing has been requested but not 
held, or a protest is pending concerning the procurement. In no event 
shall these documents be destroyed before expiration of the retention 
periods in FAR 4.805.
    (b) By the program office. Unsuccessful proposals shall be retained 
on file in the program office which conducted the technical evaluation 
for a period of two months following the contract award. Upon expiration 
of the two month period, the program office shall return one copy of 
each unsuccessful bid or proposal not required for the conduct of 
debriefings to the contracting activity for proper disposition. The 
remaining copies will be destroyed.

[49 FR 7700, Mar. 1, 1984; 49 FR 10930, Mar. 23, 1984. Redesignated and 
amended at 60 FR 46155, Sept. 5, 1995]

[[Page 664]]



           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING





PART 2405--PUBLICIZING CONTRACT ACTIONS--Table of Contents




          Subpart 2405.2--Synopses of Proposed Contract Actions

Sec.
2405.202  Exceptions.

                   Subpart 2405.5--Paid Advertisements

2405.502  Authority.

    Authority: 40 U.S.C. 486(c); 41 U.S.C. 253; 42 U.S.C. 3535(d); and 
FAR class deviation approved November 15, 1990.



          Subpart 2405.2--Synopses of Proposed Contract Actions



Sec. 2405.202  Exceptions.

    (b) The Senior Procurement Executive shall make the written 
determination in accordance with FAR 5.202(b) that advance notice of 
proposed contract actions is not appropriate or reasonable.

[50 FR 46576, Nov. 8, 1985]



                   Subpart 2405.5--Paid Advertisements



Sec. 2405.502  Authority.

    Use of paid advertisements in newspapers, trade journals, and other 
media are authorized by Delegations or Redelegations of Authority, 
subject to the availability of funds.

[49 FR 7701, Mar. 1, 1984]



PART 2406--COMPETITION REQUIREMENTS--Table of Contents




  Subpart 2406.2--Full and Open Competition After Exclusion of Sources

Sec.
2406.202  Establishing or maintaining alternative sources.

          Subpart 2406.3--Other Than Full and Open Competition

2406.304  Approval of the justification.
2406.304-70  Approval of the justification--field procurements.

                  Subpart 2406.5--Competition Advocates

2406.501  Requirement.

    Authority: 40 U.S.C. 486(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).

    Source: 50 FR 46576, Nov. 8, 1985, unless otherwise noted.



  Subpart 2406.2--Full and Open Competition After Exclusion of Sources



Sec. 2406.202  Establishing or maintaining alternative sources.

    (b)(1) The HCA shall sign the Determination and Finding (D&F) 
required by FAR 6.202(b)(1).



          Subpart 2406.3--Other Than Full and Open Competition



Sec. 2406.304  Approval of the justification.

    (c) A class justification for other than full and open competition 
shall be approved in writing by the Senior Procurement Executive.



Sec. 2406.304-70  Approval of the justification--field procurements.

    (a) The justification for other than full and open competition for 
field procurements shall be approved in writing--
    (3) For a proposed contract more than $1 million but not exceeding 
$10 million, by the Director, Office of Procurement and Contracts.

[60 FR 46155, Sept. 5, 1995]



                  Subpart 2406.5--Competition Advocates



Sec. 2406.501  Requirement.

    The Senior Procurement Executive shall designate the Department's 
competition advocate by Federal Register notice. Contracting activity-
level competition advocates shall be appointed by each HCA.

[60 FR 46155, Sept. 5, 1995]

[[Page 665]]



PART 2407--ACQUISITION PLANNING--Table of Contents




    Authority: Sec. 7(d) of the Department of Housing and Urban 
Development Act (42 U.S.C. 3535(d)).



                    Subpart 2407.1--Acquisition Plans



Sec. 2407.102  Policy.

    The Senior Procurement Executive is responsible for establishing and 
maintaining internal procedures to implement the Department's Advance 
Procurement Planning System (APPS). The APPS should generally meet the 
criteria contained in FAR subpart 7.1.

[49 FR 7701, Mar. 1, 1984, as amended at 51 FR 7948, Mar. 7, 1986]



PART 2409--CONTRACTOR QUALIFICATIONS--Table of Contents




          Subpart 2409.5--Organizational Conflicts of Interest

Sec.
2409.500  Scope of subpart.
2409.502  Applicability.
2409.503  Waiver.
2409.504  Contracting Officer responsibilities.
2409.507  Solicitation provisions and contract clause.
2409.507-1  Solicitation provisions.
2409.507-2  Contract clause.

        Subpart 2409.70--Debarment, Suspension, and Ineligibility

2409.701  HUD regulations on debarment, suspension, and ineligibility.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 49 FR 7701, Mar. 1, 1984, unless otherwise noted.



          Subpart 2409.5--Organizational Conflicts of Interest



Sec. 2409.500  Scope of subpart.

    This subpart prescribes responsibilities, general rules, and 
procedures for identifying, evaluating, and resolving organizational 
conflicts of interest.



Sec. 2409.502  Applicability.

    The procedures described in this section shall be used for all 
advisory and assistance services contracts and for any other procurement 
involving the acquisition of services when the Contracting Officer 
determines that the nature of the procurement presents a potential for 
an organizational conflict of interest.

[49 FR 7701, Mar. 1, 1984, as amended at 57 FR 59788, Dec. 15, 1992]



Sec. 2409.503  Waiver.

    The Senior Procurement Executive is authorized to waive any general 
rule or procedure in FAR Subpart 9.5 by determining that its application 
to a particular situation would not be in the Government's interest.

[57 FR 59788, Dec. 15, 1992]



Sec. 2409.504  Contracting officer responsibilities.

    The following actions are required for all contract actions covered 
by 2409.502:
    (a) Disclosure or Representation. (1) Each solicitation shall 
contain a provision which requires a potential offeror to provide a 
statement which describes in a concise manner all relevant facts 
concerning any present or current planned interest (financial, 
contractual, organizational, or otherwise) relating to the work to be 
performed under this section and bearing on whether the offeror and any 
proposed subcontractor or consultant has a possible organizational 
conflict of interest with respect to:
    (i) Being able to render impartial, technically sound, and objective 
assistance or advice; or
    (ii) Being given an unfair competitive advantage.

The offeror also may provide relevant facts that show how its 
organizational structure or management systems limit its knowledge of 
possible organizational conflicts of interest relating to other 
divisions or sections of the organizations and how that structure or 
system would eliminate or neutralize such organizational conflict.
    (2) In the absence of any interest referred to above, the offeror 
shall submit a statement certifying that to the best of its knowledge 
and belief no such interest exists.
    (3) The Contracting Officer will review the statement submitted and 
may

[[Page 666]]

require additional relevant information from the offeror. All such 
information and any other relevant information known to the Contracting 
Officer will be used to determine whether an award to the offeror may 
create any organizational conflict of interest. If such organizational 
conflict of interest is found to exist, the Contracting Officer may:
    (i) Impose appropriate conditions which eliminate or neutralize such 
conflict;
    (ii) Disqualify the offeror; or,
    (iii) Determine that it is otherwise in the best interests of the 
United States to contract with the offeror by including appropriate 
conditions mitigating such conflict in the contract awarded.
    (4) Failure to provide the disclosure or execute the representation 
will be deemed to be a minor infraction and the offeror or contractor 
will be permitted to correct the omission within a time frame 
established by the Contracting Officer.
    (5) Refusal to provide the disclosure or representation and any 
additional information as required, or the willful nondisclosure or 
misrepresentation of any relevant interest shall disqualify the offeror 
or contractor for award or provide the rationale for post-award default 
action if the exercise of due diligence would have disclosed an apparent 
conflict. This provision applies equally to post-award disclosure 
requirements contained in the clause required by HUDAR 2409.508-2.
    (b) Administrative requirements. (1) The disclosure or certification 
required by HUDAR 2409.508-1 and 2409.508-2 is designed to alert the 
Contracting Officer to situations or relationships which may constitute 
either present or anticipated organizational conflicts of interest with 
respect to a particular offeror or contractor. However, this disclosure 
or representation may not identify a potential organizational conflict 
of interest involving a successful offeror that could affect his or her 
participation in subsequent procurements arising out of or related to 
work performed under a contract that results from the solicitation 
currently under consideration. Accordingly, whenever such potential 
conflicts are foreseeable, a special notice also shall be included in 
the solicitation informing offerors of the fact that such a potential 
conflict is foreseen and that a special contract clause designed to 
eliminate or neutralize such conflict will be included in any resultant 
contract. Such notice shall specify the proposed extent and duration of 
restrictions to be imposed with respect to participation in subsequent 
procurements. A fixed term of reasonable duration is measured by the 
time required to eliminate what otherwise would constitute an unfair 
competitive advantage. This is a variable. However, in no event shall an 
exclusion be stated which is not related to a specific expiration date 
or a certain event. The Government shall not determine without notice on 
an after-the-fact basis that performance of a contract created an 
organizational conflict of interest with respect to procurements arising 
out of or related to work performed under that contract.
    (2) Whenever an organizational conflict of interest is found to 
exist, it shall be adequately eliminated, or neutralized through the use 
of an appropriate special contract clause. Examples of the types of 
clauses which may be employed include, but are not limited, to the 
following:
    (i) Hardware exclusion clauses which prohibit the acceptance of 
production contracts following a related nonproduction contract 
previously performed by the Contractor.
    (ii) Software exclusion clauses which:
    (A) Require the contractor, members of his or her Board of 
Directors, or his or her chief executives to eliminate, or neutralize an 
organizational conflict of interest:
    (B) Provide for the protection of the confidentiality of data and 
guard against its unauthorized use; or
    (C) Prohibit other segments or divisions of the contractor from 
becoming involved in the performance of the contract work or being in a 
position to influence such work.
    (iii) The prospective contractor shall be given the opportunity to 
negotiate the terms and conditions of the clause and its application. 
The extent and time period of any restrictions shall be specified in the 
clause.

[[Page 667]]

    (c) Contract award when an organizational conflict of interest is 
present. (1) No contract or modification award shall be made to an 
offeror or contractor having an organizational conflict of interest with 
respect to that contract or modifications unless:
    (i) The conflict has been eliminated or neutralized; or
    (ii) The Contracting Officer determines that the award of the 
contract would be otherwise in the best interests of the Government. 
Where such a determination is made, an appropriate written finding and 
determination shall be placed in the contract file.
    (2) Examples of circumstances justifying such a determination 
include but are not necessarily limited to:
    (i) Situations where the public exigency will not otherwise permit; 
or,
    (ii) Situations where the requirement cannot otherwise be obtained.
    (3) The Contracting Officer's determination shall be approved by the 
Head of the Contracting Activity before award.
    (d) Action in Lieu of Termination. If the Contracting Officer 
determines that it would not be in the best interest of the Government 
to terminate a contract as provided in the clause cited at HUDAR 
2409.508-2, the Contracting Officer shall take every reasonable action 
to eliminate, or otherwise neutralize the organizational conflict of 
interest.

[49 FR 7701, Mar. 1, 1984; 49 FR 10930, Mar. 23, 1984, as amended at 53 
FR 46534, Nov. 17, 1988; 57 FR 59788, Dec. 15, 1992]
2409.507  Solicitation provisions and contract clause.



Sec. 2409.507-1  Solicitation provisions.

    The Contracting Officer shall insert the provisions at 2452.209-70, 
Organizational Conflicts of Interest Notification, and 2452.209-71, 
Organizational Conflicts of Interest Certification, in all solicitations 
over the small purchase limitation.

[53 FR 46534, Nov. 17, 1988. Redesignated at 61 FR 19470, May 1, 1996]



Sec. 2409.507-2  Contract clause.

    The Contracting Officer shall insert the clause at 2452.209-72, 
Organizational Conflicts of Interest, in all contracts.

[53 FR 46534, Nov. 17, 1988. Redesignated at 61 FR 19470, May 1, 1996]



        Subpart 2409.70--Debarment, Suspension, and Ineligibility



Sec. 2409.701  HUD regulations on debarment, suspension, and ineligibility.

    Departmental policies and procedures concerning debarment and 
suspension are contained in 24 CFR part 24.



PART 2411--DESCRIBING AGENCY NEEDS--Table of Contents




    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).



            Subpart 2411.4--Delivery or Performance Schedules



Sec. 2411.404  Contract clause.

    (a) The Contracting Officer may insert the clause at 48 CFR 
2452.211-70, Contract Period, in all solicitations and contracts.

[61 FR 19470, May 1, 1996]

[[Page 668]]



         SUBCHAPTER C--CONTRACTING METHODS AND CONTRACTING TYPES





PART 2413--SIMPLIFIED ACQUISITION PROCEDURES--Table of Contents




                         Subpart 2413.1--General

Sec.
2413.106-2  Data to support purchases.

                      Subpart 2413.4--Imprest Fund

2413.402  Agency responsibilities.
2413.403  Conditions for use.

                     Subpart 2413.5--Purchase Orders

2413.505  Purchase order and related forms.
2413.505-1  Optional Form (OF) 347, order for supplies and services, and 
          Optional Form 348, order for supplies and services schedule-
          continuation.

                     Subpart 2413.6--Micro-Purchase

2413.601  General.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).



                         Subpart 2413.1--General



Sec. 2413.106-2  Data to support purchases.

    (d) Contracting officers may use Form HUD-24007, Purchase/Delivery 
Order Data File, to record all relevant data pertaining to a purchase 
using simplified acquisition procedures, including recording written and 
oral quotations received and documenting orders against GSA contracts.

[61 FR 19470, May 1, 1996]



                      Subpart 2413.4--Imprest Fund



Sec. 2413.402  Agency responsibilities.

    (c) Policies and procedures governing the operation of imprest funds 
are established in internal directives issued by HUD's Office of the 
Chief Financial Officer.

[60 FR 46155, Sept. 5, 1995]



Sec. 2413.403   Conditions for use.

    (a) Transaction limits above that established in FAR 13.403(a) may 
be approved by the Senior Procurement Executive.

[60 FR 46155, Sept. 5, 1995]



                     Subpart 2413.5--Purchase Orders

2413.505  Purchase order and related forms.



Sec. 2413.505-1  Optional Form (OF) 347, order for supplies and services, and Optional Form 348, order for supplies and services schedule-continuation.

    (b) For purchases charged to the FHA Fund using simplified 
acquisition procedures, contracting officers may use Form HUD-2542, 
Purchase Order and Payment Authorization.

[61 FR 19470, May 1, 1996]



                     Subpart 2413.6--Micro-Purchase

    Source: 60 FR 46155, Sept. 5, 1995, unless otherwise noted.



Sec. 2413.601   General.

    (c) HUD's procedures concerning the use of the government-wide 
commercial purchase card are contained in its Handbook on the 
Government-wide Commercial Credit Card Program.



PART 2414--SEALED BIDDING--Table of Contents




          Subpart 2414.4--Opening of bids and Award of Contract

Sec.
2414.404  Rejection of bids.
2414.404-1  Cancellation of invitations after opening.
2414.407  Mistakes in bid.
2414.407-3  Other mistakes disclosed before award.
2414.407-4  Mistakes after award.
2414.408  Award.
2414.408-70  Award when only one bid is received.

    Authority: 40 U.S.C. 486(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).

    Source: 49 FR 7702, Mar. 1, 1984, unless otherwise noted.

[[Page 669]]



         Subpart 2414.4--Opening of Bids and Award of Contracts

2414.404  Rejection of bids.



Sec. 2414.404-1  Cancellation of invitations after opening.

    (c) Invitations may be cancelled and all bids rejected before award 
but after opening when the Head of the Contracting Activity, as 
described in subpart 2402.1, determines in writing that cancellation is 
appropriate and consistent with FAR 14.404-1.

[50 FR 46577, Nov. 8, 1985]
2414.407  Mistakes in bids.



Sec. 2414.407-3  Other mistakes disclosed before award.

    (e) The determination to allow a bidder to: Correct a mistake in bid 
discovered before award (other than obvious clerical errors); withdraw a 
bid; or, neither correct nor withdraw a bid shall be submitted to the 
Head of the Contracting Activity for approval.

[57 FR 59788, Dec. 15, 1992. Redesignated at 61 FR 19470, May 1, 1996]



Sec. 2414.407-4  Mistakes after award.

    (d) For determinations under FAR 14.407-4(b) (1) and (2), the Head 
of the Contracting Activity will obtain the concurrence of legal counsel 
before notification to the Contractor. The Contracting Officer shall be 
notified promptly of action to be taken.

[61 FR 19470, May 1, 1996]
2414.408  Award.



Sec. 2414.408-70  Award when only one bid is received.

    When only one bid is received in response to an invitation for bids, 
such bid may be considered and accepted if the Contracting Officer makes 
a written determination that: (a) The specifications were clear and not 
unduly restrictive; (b) adequate competition was solicited and it could 
have been reasonably assumed that more than one bid would have been 
submitted; (c) the price is reasonable; and (d) the bid is otherwise in 
accordance with the invitation for bids. Such a determination shall be 
placed in the file.

[49 FR 7702, Mar. 1, 1984; 51 FR 7948, Mar. 7, 1986, as amended at 58 FR 
49437, Sept. 23, 1993. Redesignated at 61 FR 19471, May 1, 1996]



PART 2415--CONTRACTING BY NEGOTIATION--Table of Contents




  Subpart 2415.4--Solicitation and Receipt of Proposals and Quotations

Sec.
2415.407  Solicitation provisions.
2415.413  Disclosure and use of information before award.
2415.413-1  Alternate I.
2415.413-2  Alternate II.

                  Subpart 2415.5--Unsolicited Proposals

2415.505  Content of unsolicited proposals.
2415.505-70  Unsolicited research proposals.
2415.506  Agency procedures.

                    Subpart 2415.6--Source Selection

2415.604  Responsibilities.
2415.605  Evaluation factors.
2415.608  Proposal evaluation.
2415.610  Written or oral discussion.
2415.611  Best and final offers.
2415.613  Alternative source selection procedures.
2415.613-70  Technical evaluation.
2415.613-71  Limited written or oral discussions.
2415.613-72  Selection and final negotiation.

Subpart 2415.10--Preaward, Award, and Postaward Notifications, Protests, 
                              and Mistakes

2415.1005  Protests against award.

    Authority: 40 U.S.C. 486(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).

    Source: 49 FR 7703, Mar. 1, 1984, unless otherwise noted.



  Subpart 2415.4--Solicitation and Receipt of Proposals and Quotations



Sec. 2415.407  Solicitation provisions.

    (a) The Contracting Officer shall insert a provision substantially 
the same as the provision at 48 CFR 2452.215-70, Proposal Content, in 
all solicitations for negotiated procurements using the best value 
approach selection method

[[Page 670]]

expected to exceed the simplified acquisition limit. The Contracting 
officer shall adapt paragraph (c) of the provision (i.e., include, 
delete, and provide additional detail to subparagraphs) to address the 
particular requirements of the immediate solicitation. The provision may 
be used in simplified acquisitions when it is necessary to obtain 
technical and management information in making the award selection. When 
award selection will be made through the lowest-priced technically 
acceptable proposal method, the provision shall be used with its 
Alternate I. If the proposed contract requires work on, or access to, 
sensitive automated systems as required by the clause at 48 CFR 
2452.237-76, the provision shall be used with its Alternate II.

[61 FR 19471, May 1, 1996]
2415.413  Disclosure and use of information before award.



Sec. 2415.413-1  Alternate I.

    It is HUD's policy to have proposals evaluated by the most competent 
technical and management sources available. The Department's preferred 
procedure for evaluation of proposals is not to disclose the proposals 
outside the Government for evaluation purposes. If external parties will 
not be used to evaluate proposals, the procedures in FAR 15.413-1 
Alternate I, shall be used.

[61 FR 19471, May 1, 1996]



Sec. 2415.413-2  Alternate II.

    When it is necessary to disclose proposals outside the Government to 
meet the Department's evaluation needs, the procedures in FAR 15.413-2 
Alternate II, shall be used.
    (f)(1) The HCA is authorized to make decisions regarding the release 
of proposals outside the Government.
    (2) The written agreement shall be obtained prior to releasing 
proposals to the evaluator.
    (3) The HCA shall make the written determination, which shall be 
retained permanently in the official contract file.

[61 FR 19471, May 1, 1996]



                  Subpart 2415.5--Unsolicited Proposals

2415.505  Content of unsolicited proposals.



Sec. 2415.505-70  Unsolicited research proposals.

    FAR subpart 15.5 outlines the policies and procedures relating to 
unsolicited proposals. In addition to these requirements, the Department 
requires that each award made as the result of an unsolicited proposal 
for research contain a commitment to provide actual cost-sharing. This 
provision will be included in the award whether or not cost-sharing was 
part of the unsolicited proposal.



Sec. 2415.506  Agency procedures.

    (a) The contact points shall ensure that unsolicited proposals are 
controlled, evaluated, safeguarded, and disposed of in accordance with 
FAR subpart 15.5.
    (b) Unless otherwise specified in a Federal Register announcement 
unsolicited proposals should be submitted to the following contact 
points:
    (1) For research--Department of Housing and Urban Development, 
Assistant Secretary for Policy Development and Research, Office of 
Management and Program Control, 451 7th Street SW., Washington, DC 
20410.
    (2) For funding under the Secretary's Discretionary Fund Program--
Department of Housing and Urban Development, Assistant Secretary for 
Community Planning and Development, Office of Program Policy 
Development, 451 Seventh Street, SW., Washington, DC 20410.
    (3) For all others--Department of Housing and Urban Development, 
Director, Office of Procurement and Contracts, 451 7th Street SW., 
Washington, DC 20410.

[49 FR 7703, Mar. 1, 1984, as amended at 51 FR 7948, Mar. 7, 1986]



                    Subpart 2415.6--Source Selection

    Source: 50 FR 46577, Nov. 8, 1985, unless otherwise noted.

[[Page 671]]



Sec. 2415.604   Responsibilities.

    (b) The technical requirements related to source selection shall be 
performed by a Technical Evaluation Panel (TEP). Generally, a TEP will 
consist of three to five voting members, with one member serving as the 
chairperson. For more complex procurements, the TEP may add advisors 
and/or a committee structure to focus on specific technical issues or 
concerns. For inexpensive or routine acquisitions of equipment, supplies 
or services, the TEP may consist of one technical representative. The 
TEP is responsible for documenting the evaluation of all proposals as 
appropriate to the source selection approach in use, and for making the 
source selection recommendation(s).
    (c)(4) The selection of the source(s) for contract award shall be 
made by:
    (i) The contracting officer for awards using the ``lowest-priced 
technically-acceptable proposal'' approach; or,
    (ii) The Source Selection Official (SSO) for awards based on the 
``best value'' approach.

[60 FR 46156, Sept. 5, 1995]



Sec. 2415.605   Evaluation factors.

    (d)(1) The solicitation shall state the basis for the source 
selection decision as either ``lowest-priced technically-acceptable 
proposal'' (LPTAP) or ``best value'' (see 2402.1, Definitions).
    (2) When using the best value approach, each technical evaluation 
factor and subfactor shall be assigned a numerical weight (except for 
pass-fail factors) which shall appear in the RFP. When using LPTAP, each 
evaluation factor is applied on a ``pass-fail'' basis; numerical scores 
are not assigned. ``Pass-Fail'' evaluation factors define a standard of 
comparison for solicitation/contract requirements which proposals either 
completely satisfy or fail to meet.

[60 FR 46156, Sept. 5, 1989, as amended at 61 FR 19471, May 1, 1996]



Sec. 2415.608  Proposal evaluation.

    (a) After receipt of proposals, the Contracting Officer will forward 
copies of the technical portion of each proposal to the TEP Chairperson 
or his or her designee. The cost/price portion of each proposal shall be 
retained by the Contracting Officer pending initial technical evaluation 
by the TEP.
    (3) Technical evaluation. The TEP shall rate each proposal based on 
the evaluation factors specified in the solicitation. The TEP shall 
identify each proposal as being either acceptable, unacceptable but 
capable of being made acceptable, or unacceptable. A proposal shall be 
considered unacceptable if it is so clearly deficient that it cannot be 
corrected through written or oral discussions. Under the best value 
approach, predetermined cut-off scores designed to determine a threshold 
level of acceptability of proposals shall not be employed. A technical 
evaluation report, which complies with FAR 15.608(a)(3), shall be 
prepared and signed by the technical evaluator(s), furnished to the 
contracting officer, and maintained as a permanent record in the 
official procurement file.
    (b) The HCA may reject all proposals received in response to a 
solicitation. His or her written determination shall follow FAR 
15.608(b).

[50 FR 46577, Nov. 8, 1985, as amended at 57 FR 59789, Dec. 15, 1992; 60 
FR 46156, Sept. 5, 1995; 61 FR 19471, May 1, 1996]



Sec. 2415.610  Written or oral discussion.

    (b) Except as provided in FAR 15.610(a), the Contracting Officer (or 
his or her designee) and the TEP shall conduct written or oral 
discussions with all responsible offerors who submit proposals within 
the competitive range.



Sec. 2415.611   Best and final offers.

    (d) After receipt and evaluation of best and final offers, the TEP 
shall document its selection recommendation(s) in a final written 
report. The final report shall include sufficient information to support 
the recommendation(s) made, appropriate to the source selection approach 
and type and complexity of the acquisition.

[60 FR 46156, Sept. 5, 1995]



Sec. 2415.613  Alternative source selection procedures.

    (a) The Department of Housing and Urban Development uses procedures 
authorized by FAR 15.613 for all research and development contracts and

[[Page 672]]

other contracts where the contractor's proposed methodology of carrying 
out the work is a significant selection factor and the award decision 
will follow the best value approach.
    (b) These procedures allow for limited oral or written discussions 
to avoid technical leveling, a request for best and final offers, and 
selection of source(s) for negotiation of a final contract.

[57 FR 59789, Dec. 15, 1992, as amended at 60 FR 46156, Sept. 5, 1995]



Sec. 2415.613-70   Technical evaluation.

    The TEP shall perform the required technical evaluation of proposals 
received in accordance with 2415.608.

[60 FR 46156, Sept. 5, 1995]



Sec. 2415.613-71  Limited written or oral discussions.

    Limited written or oral discussions shall be conducted with each 
offeror considered to be within the competitive range. These discussions 
should address technical weaknesses of the particular offer, as well as 
cost issues, to the fullest extent practicable while avoiding technical 
leveling.

[57 FR 59789, Dec. 15, 1992]



Sec. 2415.613-72  Selection and final negotiation.

    (a) Selection. After the close of discussions and receipt of best 
and final offers, the TEP shall perform a final evaluation and prepare 
its selection recommendation for the SSO. Based on this evaluation, the 
SSO shall select for final contract negotiation the offeror(s) whose 
proposal is most advantageous to the Government in terms of price/cost, 
technical and other relevant factors included in the solicitation.
    (b) Final negotiation. This includes reaching agreement with the 
selected source on any remaining cost/price, technical, socioeconomic, 
or other issues that will condition performance of the contract and 
setting forth those terms and conditions in a mutually acceptable 
contract document. No factor or condition that could have had any effect 
on the selection process may be changed at this point. These 
negotiations are led by the contracting officer and may include any 
technical, audit, or support personnel he/she deems necessary.

[57 FR 59789, Dec. 15, 1992, as amended at 60 FR 46156, Sept. 5, 1995]



Subpart 2415.10--Preaward, Award, and Postaward Notifications, Protests, 
                              and Mistakes



Sec. 2415.1005  Protests against award.

    Protests against awards of negotiated procurements shall be 
processed in accordance with FAR subpart 33.1 and HUDAR subpart 2433.1

[50 FR 46578, Nov. 8, 1985. Redesignated at 61 FR 19471, May 1, 1996]



PART 2416--TYPES OF CONTRACTS--Table of Contents




                   Subpart 2416.4--Incentive Contracts

Sec.
2416.405  Contract clauses.
2416.506  Solicitation provisions and contract clauses.
2416.506-70  Unpriced delivery/task orders.

  Subpart 2416.6--Time-and-Materials, Labor-Hour, and Letter Contracts

2416.603  Letter contracts.
2416.603-2  Application.

    Authority: 40 U.S.C. 486(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).

    Source: 49 FR 7706, Mar. 1, 1984, unless otherwise noted.



                   Subpart 2416.4--Incentive Contracts



Sec. 2416.405  Contract clauses.

    (e)(1) The Contracting Officer shall insert the clauses at 2452.216-
70, Estimated Cost, Base Fee, and Award Fee; 2452.216-71, Payment of 
Base and Award Fee; 2452.216-72, Determination of Award Fee Earned; 
2452.216-73, Performance Evaluation Plan; and 2452.216-74, Distribution 
of Award Fee, in all award fee contracts. The Contracting Officer may 
modify the clauses to meet individual situations and any clause or 
specific requirement therein may be deleted when it is not applicable to 
a given contract.

[53 FR 46535, Nov. 17, 1988]

[[Page 673]]

2416.506  Solicitation provisions and contract clauses.



Sec. 2416.506-70  Unpriced delivery/task orders.

    (e) The contracting officer shall insert the clause at 2452.216-75, 
Unpriced Task Orders, in contracts for which task orders are 
individually negotiated and there may be a need to issue unpriced task 
orders; provided, however, that the contracting officer shall ensure 
that the cost of the work authorized by the task order is not in excess 
of the funds obligated under the contract.

[57 FR 59790, Dec. 15, 1992. Redesignated at 61 FR 19471, May 1, 1996]



  Subpart 2416.6--Time-And-Materials, Labor-Hour, and Letter Contracts

2416.603  Letter contracts.



Sec. 2416.603-2  Application.

    (c) In accordance with FAR 16.603-2(c), a letter contract shall be 
made definite within 180 days of the date of award or after completion 
of 40 percent of the work to be performed, whichever occurs first, 
unless different terms are approved in advance by the Head of the 
Contracting Activity.



PART 2417--SPECIAL CONTRACTING METHODS--Table of Contents




                         Subpart 2417.2--Options

2417.204  Contracts.

     Subpart 2417.5--Interagency Acquisitions Under the Economy Act

2417.504  Ordering procedures.
    Authority: 31 U.S.C. 1535; 40 U.S.C. 486(c); 42 U.S.C. 3535(d).



                         Subpart 2417.2--Options



Sec. 2417.204  Contracts.

    (e) The Senior Procurement Executive shall approve any solicitation 
or contract which exceeds the five (5) year maximum for acquisitions of 
supplies or services.

[61 FR 19471, May 1, 1996]



     Subpart 2417.5--Interagency Acquisitions Under the Economy Act



Sec. 2417.504  Ordering procedures.

    (b) The Contracting Officer shall use HUD Form 730, Award/
Modification of Interagency Agreement, when placing or modifying an 
order for supplies or services from another Government agency.

[53 FR 46535, Nov. 17, 1988]

[[Page 674]]



                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS





PART 2419--SMALL BUSINESS PROGRAMS--Table of Contents




                        Subpart 2419.2--Policies

Sec.
2419.201  General policy.

              Subpart 2419.5--Set-Asides for Small Business

2419.503  Setting aside a class of acquisitions.

Subpart 2419.7--Subcontracting with Small Business, Small Disadvantaged 
            Business and Women-Owned Small Business Concerns

2419.708  Solicitation provisions and contract clauses.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).



                        Subpart 2419.2--Policies



Sec. 2419.201  General policy.

    (c) The Director, Office of Small and Disadvantaged Business 
Utilization (OSDBU), Headquarters, is responsible for the administration 
of HUD's small business programs. This includes Department-wide 
responsibility for developing, implementing, executing, and managing 
these programs, providing advice on these programs, and representing HUD 
before other government agencies on matters primarily affecting small, 
small disadvantaged and women-owned small businesses.
    (d) Each head of a contracting activity shall designate a small 
business specialist who shall perform the following functions:
    (1) Maintain a program designed to locate capable small business 
sources as referenced in 48 CFR 2419.201(c) for current and future 
procurements;
    (2) Coordinate inquiries and requests for advice from such 
businesses on procurement matters;
    (3) Review proposed requirements for supplies and services, ensure 
that all such business concerns will be afforded an equitable 
opportunity to compete, and, as appropriate, initiate recommendation for 
small business or Section 8a set-asides (under the Small Business Act);
    (4) Take action to ensure the availability of adequate 
specifications and drawings, when necessary, to obtain participation by 
such businesses in a procurement;
    (5) Review proposed procurements for possible breakout of items 
suitable for procurement from such businesses;
    (6) Advise such businesses with respect to the financial assistance 
available under existing laws and regulations and assist such businesses 
in applying for financial assistance;
    (7) Ensure that adequate records are maintained and accurate reports 
are prepared concerning such businesses participation in the procurement 
program;
    (8) Make available to SBA copies of solicitations, when requested, 
and
    (9) Act as liaison between the Contracting Officer and the 
appropriate SBA office in connection with set-asides, certificates of 
competency, size classification, and any other matter in which the small 
business program may be involved.

[49 FR 7706, Mar. 1, 1984, as amended at 50 FR 46578, Nov. 8, 1985; 61 
FR 19471, May 1, 1996]



              Subpart 2419.5--Set-Asides for Small Business



Sec. 2419.503  Setting aside a class of acquisitions.

    (a) Class set-aside for construction under the Acquired Property 
Program. A class set-aside is hereby made for each proposed procurement 
for construction under the Acquired Property Program with an estimated 
cost of less than $1,000,000. Accordingly, Contracting Officers shall 
set aside for small business each such proposed procurement. If a 
Contracting Officer determines that any individual procurement falling 
within the class set-aside requirements of this section is unsuitable 
for such a set-aside in part or in total, the set-aside may be withdrawn 
with the concurrence of the Head of the Contracting Activity. Proposed 
procurements

[[Page 675]]

for construction which exceed an estimate of $1,000,000 shall be 
considered for set-aside on a case-by-case basis.

[49 FR 7706, Mar. 1, 1984; 49 FR 10930, Mar. 23, 1984, as amended at 53 
FR 46535, Nov. 17, 1988]



Subpart 2419.7--Subcontracting with Small Business, Small Disadvantaged 
            Business and Women-Owned Small Business Concerns



Sec. 2419.708  Solicitation Provisions and Contract Clauses.\3\
---------------------------------------------------------------------------

    \3\ The coverage provided in paragraphs (d) and (e) have been 
submitted to the FAR Secretariat for consideration as FAR coverage with 
Governmentwide application. In the event that similar FAR coverage is 
issued, HUD will rescind the corresponding HUDAR text.
---------------------------------------------------------------------------

    (d) The Contracting Officer shall insert the provision at 2452.219-
70 in negotiated solicitations exceeding $500,000 that are not set aside 
for small business or 8(a) concerns.
    (e) The Contracting Officer shall insert the provision at 2452.219-
70 with Alternate I in sealed bid solicitations exceeding $500,000 that 
are not set aside for small business or 8(a) concerns.

[57 FR 59790, Dec. 15, 1992]



PART 2420--[RESERVED]






PART 2422--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS--Table of Contents




    Authority: Sec. 205(c) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 486(c)); sec. 7(d) of the Department of 
Housing and Urban Development Act (42 U.S.C. 3535(d)).

    Source: 53 FR 46535, Nov. 17, 1988, unless otherwise noted.



             Subpart 2422.14--Employment of the Handicapped



Sec. 2422.1408  Contract clause.

    (c) The Contracting Officer shall insert the clause at 2452.222-70, 
Accessibility of Meetings, Conferences, and Seminars to Persons with 
Disabilities, in all solicitations and contracts.



PART 2424--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION--Table of Contents




       Subpart 2424.1--Protection of Individual Privacy Procedures

Sec.
2424.103  Procedures.

               Subpart 2424.2--Freedom of Information Act

2424.202  Policy.
2424.202-70  Solicitation provision.

    Authority: Freedom of Information Act (5 U.S.C. 552); Privacy Act of 
1974 (5 U.S.C. 552a); sec. 205(c) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 486(c)); sec. 7(d) of the 
Department of Housing and Urban Development Act (42 U.S.C. 3535(d)).


    Source: 49 FR 7708, Mar. 1, 1984, unless otherwise noted.



            Subpart 2424.1--Protection of Individual Privacy



Sec. 2424.103  Procedures.

    (b)(2) See 24 CFR part 16 for the HUD regulations which implement 
the Privacy Act.



               Subpart 2424.2--Freedom of Information Act



Sec. 2424.202  Policy.

    See 24 CFR part 15 for the HUD regulations which implement the 
Freedom of Information Act.



Sec. 2424.202-70  Solicitation provision.

    The Contracting Officer shall insert the provisions at 2452.224-70, 
Freedom of Information Act Notification, in all negotiated solicitations 
exceeding the small purchase limitation.

[53 FR 46536, Nov. 17, 1988]



PART 2425--TRADE AGREEMENTS ACT--Table of Contents




    Authority: 42 U.S.C. 3535(d).



Sec. 2425.402  Policy.

    It is the Department's policy to determine whether the Trade 
Agreements

[[Page 676]]

Act applies based on the total estimated dollar value of the proposed 
acquisition before the solicitation is issued, including all line items 
and options.

[57 FR 59790, Dec. 15, 1992]



PART 2426--OTHER SOCIOECONOMIC PROGRAMS--Table of Contents




             Subpart 2426.70--Minority Business Enterprises


2426.701  Policy.
2426.702  Responsibility.
2426.703  Solicitation provision.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 53 FR 46536, Nov. 17, 1988, unless otherwise noted.



             Subpart 2426.70--Minority Business Enterprises



Sec. 2426.701  Policy.

    It is the policy of the Department to foster and promote Minority 
Business Enterprise (MBE) participation in its procurement program, to 
the extent permitted by law and consistent with its primary mission. A 
``minority business enterprise'' is a business which is at least 51 
percent owned by one or more minority group members; or, in the case of 
a publicly-owned business, one in which at least 51 percent of its 
voting stock is owned by one or more minority group members, and whose 
management and daily business operations are controlled by one or more 
such individuals. For this purpose, minority group members are those 
groups of U.S. citizens found to be disadvantaged by the Small Business 
Administration pursuant to Section 8(d) of the Small Business Act.

[60 FR 46156, Sept. 5, 1995]



Sec. 2426.702  Responsibility.

    The Director of the Office of Small and Disadvantaged Business 
Utilization (OSDBU) develops Departmental MBE plans and policies in 
accordance with Executive Orders 11625 and 12432 and by directive from 
the Secretary. He or she provides advice and guidance to the Secretary 
and Primary Organization Heads on MBE functions, reviews and makes 
recommendations to the Secretary on MBE annual plans and goals, monitors 
and evaluates the Department's MBE program, and reports on MBE program 
performance to the Department of Commerce.

[60 FR 46157, Sept. 5, 1995]



Sec. 2426.703  Solicitation provision.

    Contracting officers shall request all interested contractors, 
bidders, or offerors (including those responding to requests for 
quotations) to complete the certification at 2452.226-70, Certification 
of Status as a Minority Business Enterprise. Completion of this 
certification is voluntary and is not a condition of eligibility for 
contract award.

[60 FR 46157, Sept. 5, 1995]



PART 2427--PATENTS, DATA, AND COPYRIGHTS--Table of Contents




        Subpart 2427.3--Patent Rights Under Government Contracts

Sec.
2427.305  Administration of patent rights clauses.
2427.305-2  Follow-up by contractor.

    Authority: Sec. 205(c) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 486(c)); sec. 7(d) of the Department of 
Housing and Urban Development Act (42 U.S.C. 3535(d)).

    Source: 53 FR 46536, Nov. 17, 1988, unless otherwise noted.



        Subpart 2427.3--Patent Rights Under Government Contracts



Sec. 2427.305  Administration of patent rights clauses.



Sec. 2427.305-2  Follow-up by contractor.

    (b) Contractor reports. Contractors shall complete and submit to the 
Contracting Officer HUD Form 770, Report of Inventions and Subcontracts, 
upon receipt of said form. The Contracting Officer shall send the form 
to those contractors whose contract work may have required the 
development of inventions upon physical completion of the contract.

[[Page 677]]



             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS





PART 2428--BONDS AND INSURANCE--Table of Contents




                          Subpart 2428.1--Bonds

Sec.
2428.106  Administrative.
2428.106-6  Furnishing information.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 50 FR 46578, Nov. 8, 1985, unless otherwise noted.

    Editorial Note: At 60 FR 46157, Sept. 5, 1995, subpart 2428.2 was 
removed effective Oct. 5, 1995. The superseded text of the removals 
remaining in effective until Oct. 5, 1995, appears in the October 1, 
1994 revision of title 48 chapters 15-28.



                          Subpart 2428.1--Bonds

2428.106  Administrative.



Sec. 2428.106-6  Furnishing information.

    (c) The HCA shall furnish the certified copy of the bond and the 
contract for which it was given to any person who requests them in 
accordance with FAR 28.106-6.



PART 2429--TAXES--Table of Contents




    Authority: 42 U.S.C. 3535(d).



                         Subpart 2429.1--General



Sec. 2429.101  Resolving tax problems.

    In order to have uniformity in HUD's treatment of the tax aspects of 
contracting and ensure effective cooperation with other Government 
agencies on tax matters of mutual interest, the Office of General 
Counsel has the responsibility within HUD for handling all those tax 
problems. Therefore, the contracting activity will not engage in 
negotiation with any taxing authority for the purpose of determining the 
validity or applicability of, or obtaining exemptions from or refund of, 
any tax. When a problem exists, the Contracting Officer shall request, 
in writing, the assistance of legal counsel. The request shall detail 
the problem and be accompanied by appropriate backup data. Counsel shall 
report to the Contracting Officer as to the necessary disposition of the 
tax problem. The Contracting Officer will notify the contractor of the 
outcome of the tax problem. Counsel is responsible for communications 
with the Department of Justice for representation or intervention in 
proceedings concerning taxes.

[60 FR 46157, Sept. 5, 1995]



PART 2432--CONTRACT FINANCING--Table of Contents




                    Subpart 2432.4--Advance Payments

Sec.
2432.402  General.

                     Subpart 2432.9--Prompt Payment

2432.906  Contract financing payments.
2432.908  Contract clauses.

    Authority: 31 U.S.C. 3901-3906; 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 53 FR 46536, Nov. 17, 1988, unless otherwise noted.



                    Subpart 2432.4--Advance Payments



Sec. 2432.402  General.

    (e)(1) The Determination and Findings required by FAR 
32.402(c)(1)(iii) shall be made by the Director, Office of Procurement 
and Contracts for Headquarters contracts, or the cognizant Director, 
Administrative Services Center Contracting Division for field contracts.
    (2) Each advance payment situation shall be coordinated with the 
head of the cognizant accounting office, before authorization may be 
given, to ensure that there are controls in place to assure proper 
administration of advance payments.

[60 FR 46157, Sept. 5, 1995]



                     Subpart 2432.9--Prompt Payment



Sec. 2432.906  Contract financing payments.

    Except for construction contracts (see FAR 52.232-27), periods for 
payment shorter than 30 days shall not be

[[Page 678]]

specified in contracts without the prior approval of the cognizant 
accounting office to ensure that procedures are in place to allow timely 
payment.

[60 FR 46157, Sept. 5, 1995]

    Effective Date Note: At 60 FR 46157, Sept. 5, 1995, section 2432.906 
was revised, effective October 5, 1995.



Sec. 2432.908  Contract clauses.

    (a) The Contracting Officer shall insert a clause substantially the 
same as provided at 2452.232-70, Payment Schedule and Invoice Submission 
(Fixed-Price), in all fixed-price solicitations and contracts. The 
clause with its Alternate I may be used for solicitations and contracts 
issued by the Administrative Service Centers.
    (b) The Contracting Officer shall insert a clause substantially the 
same as provided at 2452.232-71, Voucher Submission (Cost-
Reimbursement), in all cost-reimbursement solicitations and contracts 
when vouchers are to be sent directly to the paying office. The clause 
with its Alternate I may be used for solicitations and contracts issued 
by the Administrative Service Centers.

[60 FR 46157, Sept. 5, 1995]



PART 2433--PROTESTS, DISPUTES, AND APPEALS--Table of Contents




Sec.
2433.000  Scope of part.

                        Subpart 2433.1--Protests

2433.101-70  Definitions.
2433.102  General.
2433.102-70  Responsibility.
2433.103  Protests to the agency.
2433.103-70  Agency decision.
2433.104  Protests to GAO.
2433.105  Protests to GSBCA.

    Authority: 31 U.S.C. 3551-3556; 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 50 FR 46578, Nov. 8, 1985, unless otherwise noted.



Sec. 2433.000  Scope of part.

    This part identifies the responsible agents and sets forth 
procedural requirements for handling protests.

[51 FR 40333, Nov. 6, 1986]



                        Subpart 2433.1--Protests



Sec. 2433.101-70  Definitions.

    Working day, as used in this part, means a working day of the 
Agencies of the Federal Government, excluding Saturdays, Sundays, and 
Federal holidays, as specified in 5 U.S.C. 6103.
2433.102  General.



Sec. 2433.102-70  Responsibility.

    The Office of General Counsel has responsibility for handling 
matters relating to protests filed with the General Accounting Office 
(GAO) or the General Services Board of Contract Appeals (GSBCA) against 
award of contracts by the Department. All written communications from 
the Department to the GAO or the GSBCA shall be by the Office of General 
Counsel. The Contracting Officer has responsibility for furnishing the 
Office of General Counsel with all information relating to a protest.



Sec. 2433.103  Protests to the agency.

    (a)(2) When the Contracting Officer makes a determination to award a 
contract notwithstanding a protest, as authorized by FAR 33.103(a)(2), 
that determination shall be approved by the HCA before award, after 
consultation with the Office of General Counsel.
    (a)(4) Protests received after award that are filed only with the 
Department shall be decided promptly by the Contracting Officer after 
consultation with appropriate officials, including the program office 
and the Office of General Counsel.

[57 FR 59790, Dec. 15, 1992]



Sec. 2433.103-70  Agency decision.

    The Contracting Officer shall issue, in writing, his or her final 
decision on a protest within 20 working days from the date of receipt of 
the protest by the Department. If it is determined that it is desirable 
to solicit the views of GAO, the time for rendering a decision shall be 
10 working days after the Department's receipt of GAO's views, but not 
later than 30 working days after the Department receives the protest.

[50 FR 46578, Nov.8, 1985. Redesignated at 57 FR 59790, Dec. 15, 1992]

[[Page 679]]



Sec. 2433.104  Protests to GAO.

    (a)(1) General. When advised by GAO of the receipt of a protest, the 
Office of General Counsel shall immediately inform the contracting 
activity. The Contracting Officer shall notify the Office of General 
Counsel upon receipt of the copy of the protest from the protestor.
    (2) Upon receipt by the Department of a written request for a formal 
report relating to a protest, the Office of General Counsel, with 
appropriate assistance from the Contracting Officer, shall prepare and 
file the report in accordance with GAO requirements at 4 CFR part 21.
    (c) Protests after award. Protests received after award shall be 
treated in the same manner as those filed with GAO before award in 
accordance with paragraphs (a)(1) and (a)(2) of this section.
    (d) Findings and notice. When the Contracting Officer makes a 
determination to award a contract notwithstanding a protest as 
authorized by FAR 33.104(b)(1)(i-ii), or to continue contractor 
performance as authorized by FAR 33.104(c)(2), that determination of the 
intent to make an award or to continue contract performance shall be 
approved by the HCA after consultation with the Office of General 
Counsel.
    (g) Notice to GAO. If the HCA proposes not to comply with a GAO 
recommendation concerning the resolution of a protest of a procurement 
award, prior to reporting to the Comptroller General concerning that 
decision, the HCA shall obtain the concurrence of the Office of General 
Counsel and the Senior Procurement Executive.

[50 FR 46578, Nov. 8, 1985, as amended at 51 FR 40333, Nov. 6, 1986; 57 
FR 59790, Dec. 15, 1992]



Sec. 2433.105  Protests to GSBCA.

    (d)(2) The Determination and Findings (D&F) establishing the 
circumstances for not suspending the Department's procurement authority 
shall be executed by the Assistant Secretary for Administration.

[51 FR 40333, Nov. 6, 1986]



PART 2434--MAJOR SYSTEM ACQUISITIONS--Table of Contents




Sec.
2434.003  Responsibilities.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).



Sec. 2434.003  Responsibilities.

    (a) The Senior Procurement Executive is responsible for establishing 
written procedures for implementation of A-109. Such procedures have 
been set out in internal Departmental directives.

[53 FR 46537, Nov. 17, 1988]

[[Page 680]]



             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING





PART 2436--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS--Table of Contents




               Subpart 2436.6--Architect-Engineer Services

Sec.
2436.602  Selection of firms for architect-engineer contracts.
2436.602-2  Evaluation boards.
2436.602-4  Selection authority.
2436.602-5  Short selection processes for contracts not to exceed the 
          small purchase limitation.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 49 FR 7708, Mar. 1, 1984, unless otherwise noted.



               Subpart 2436.6--Architect-Engineer Services

2436.602  Selection of firms for architect-engineer contracts.



Sec. 2436.602-2  Evaluation boards.

    (a) Each architect-engineer evaluation board, whether permanent or 
ad hoc (which may include preselection boards), shall consist of at 
least three voting members who are Federal employees from the 
appropriate program area or from Federal offices outside the program 
area as appropriate. One member of each board shall be appointed 
chairperson. Non-voting advisors may also be appointed, including 
private practitioners in architecture, engineering and related 
professions. The members of a permanent board shall be appointed for a 
period of two years. Appointment shall be made by the following 
authorities with copies of appointment memoranda furnished to the 
appropriate contracting activity:
    (1) Assistant Secretary or equivalent for boards appointed at the 
Headquarters level;
    (2) The cognizant program office head within the State or Area 
Office for boards appointed at the field level.
    (c) Conflict of interest. Each board member, whether voting or 
nonvoting, shall be advised of, and presumed to be familiar with the 
regulations at 24 CFR Part 0, Standards of Conduct, regarding conflicts 
of interest. If at any time during the selection process a board member 
encounters a situation with one or more of the firms being considered 
that might be or might appear to be a conflict of interest, he or she 
will disqualify him or herself and call it to the attention of the 
chairperson for resolution and proper action. The chairperson will refer 
the matter to legal counsel.
    (d) Confidentiality. The evaluation board is to be insulated from 
outside pressures, to the extent practical. No person having knowledge 
of the activities of the board shall divulge information concerning the 
deliberations of the board to any other persons not having a need to 
know such information.

[49 FR 7708, Mar. 1, 1984, as amended at 57 FR 59790, Dec. 15, 1992; 60 
FR 46157, Sept. 5, 1995]



Sec. 2436.602-4   Selection authority.

    (a) The final selection decision shall be made by the appropriate 
Primary Organization Head (Headquarters) or the appropriate program 
office head at the cognizant State or Area Office (Field).

[60 FR 46158, Sept. 5, 1995]



Sec. 2436.602-5  Short selection processes for contracts not to exceed the small purchase limitation.

    The short selection process described in FAR 36.602-5(a) is 
authorized for use for contracts not expected to exceed the small 
purchase limitation.

[49 FR 7708, Mar. 1, 1984; 49 FR 10930, Mar. 23, 1984, as amended at 57 
FR 59791, Dec. 15, 1992]



PART 2437--SERVICE CONTRACTING--Table of Contents




               Subpart 2437.1--Service Contracts--General

Sec.
2437.101  Definitions.
2437.110  Solicitation provisions and contract clauses.

            Subpart 2437.2--Advisory and Assistance Services

2437.205  Management controls.


[[Page 681]]


    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).



               Subpart 2437.1--Service Contracts--General



Sec. 2437.101  Definitions.

    Government Technical Representative (GTR) means that individual 
responsible for the technical direction, oversight, and evaluation of 
the Contractor's performance.

[53 FR 46537, Nov. 17, 1988]



Sec. 2437.110  Solicitation provisions and contract clauses.\4\
---------------------------------------------------------------------------

    \4\ The HUDAR provisions in paragraphs (g) and (h) of this section 
have been submitted to the FAR Secretariat for consideration as FAR 
coverage with Governmentwide application. In the event that similar FAR 
coverage is issued, HUD will rescind the corresponding HUDAR text.
---------------------------------------------------------------------------

    (a) The Contracting Officer shall insert the clause at 2452.237-70, 
Key Personnel, in solicitations and contracts when it is necessary for 
contract performance to identify Contractor Key personnel.
    (b) The Contracting Officer shall insert the clause at 2452.237-71, 
Reproduction of Reports, in solicitations and contracts where the 
Contractor is required to produce, as an end product, publications or 
other written materials.
    (c) The Contracting Officer shall insert the clause at 2452.237-72, 
Coordination of Data Collection Activities, in solicitations and 
contracts where the Contractor is required to collect information from 
ten or more public respondents.
    (d) The Contracting Officer shall insert the clause at 2452.237-73, 
Conduct of Work, in all service contracts.
    (e) The Contracting Officer shall insert the clause at 2452.237-74, 
Technical Direction, in all cost-reimbursement solicitations and 
contracts for services.
    (f) The Contracting Officer shall insert the clause at 48 CFR 
2452.237-75, Clearance of Personnel, in all solicitations and contracts 
where contractor personnel will be working on-site in any HUD office.
    (g) The contracting officer shall insert the clause at 2452.237-76 
in solicitations and contracts that involve work on or access to 
sensitive automated systems.
    (h) The Contracting Officer shall insert the clause at 2452.237-77, 
Observance of Legal Holidays and Administrative Leave, in all 
solicitations and contracts where contractor personnel will be working 
on-site in any HUD office.

[53 FR 46537, Nov. 17, 1988, as amended at 57 FR 59791, Dec. 15, 1992; 
61 FR 19472, May 1, 1996]



            Subpart 2437.2--Advisory and Assistance Services



Sec. 2437.205  Management controls.

    Documentation of the contractor's performance and the utility of 
products or services delivered shall be recorded on Form HUD-24002, GTR 
Performance Assessment (Final) by the responsible Government Technical 
Representative. This form may also be used to document contractor 
performance on other contracts.

[60 FR 46158, Sept. 5, 1995]

[[Page 682]]



                    SUBCHAPTER G--CONTRACT MANAGEMENT





PART 2442--CONTRACT ADMINISTRATION--Table of Contents




                   Subpart 2442.7--Indirect Cost Rates

Sec.
2442.705  Final indirect cost rates.
2442.705-70  Contract clause.

         Subpart 2442.11--Production Surveillance and Reporting

2442.1106  Reporting requirements.
2442.1107  Contract clause.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 53 FR 46537, Nov 17, 1988, unless otherwise noted.



                   Subpart 2442.7--Indirect Cost Rates

2442.705  Final indirect cost rates.



Sec. 2442.705-70  Contract clause.

    The Contracting Officer shall insert the clause at 2452.242-70, 
Indirect Costs, in cost-reimbursement type solicitations and contracts 
when it is determined that the Contractor will be compensated for 
negotiated or provisional indirect cost rates pending establishment of 
final indirect cost rates.



         Subpart 2442.11--Production Surveillance and Reporting



Sec. 2442.1106  Reporting requirements.

    (a) All contracts for professional or technical services exceeding 
$500,000 shall use HUD Form 441.1, ``Project Management System Baseline 
Plan,'' to outline how the Contractor proposes to carry out the contract 
work and HUD Form 661.1, ``Project Management System Progress Report,'' 
to monitor quantitative progress against the baseline plan. Each of 
these forms shall be accompanied by a narrative description. The 
Contracting Officer may waive the requirement to use these forms if he 
or she believes the Statement of Work or contractor's technical proposal 
are sufficiently specific or another acceptable means for project 
management is substituted. Contracts awarded under the Acquired Property 
Program are exempt from use of this reporting requirement. The 
prescribed forms may be used for contracts under $500,000, when 
determined necessary by the Contracting Officer.

[61 FR 19472, May 1, 1996]



Sec. 2442.1107  Contract clause.

    The Contracting Officer shall insert the clause at 48 CFR 2452.242-
71, Project Management System, in solicitations and contracts for 
professional or technical services exceeding $500,000, unless the 
Contracting Officer determines that the Statement of Work or technical 
proposal is sufficiently specific, or another acceptable method for 
project management is substituted. Use of this clause in contracts below 
the stated threshold is at the discretion of the Contracting Officer.

[61 FR 19472, May 1, 1996]



PART 2446--QUALITY ASSURANCE--Table of Contents




                       Subpart 2446.5--Acceptance

Sec.
2446.502  Responsibility for acceptance.
2446.502-70  Contract clause.

    Subpart 2446.6--Material Inspection and Receiving Reports [Note]

                       Subpart 2446.7--Warranties

2446.710  Contract clauses.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 53 FR 46537, Nov. 17, 1988, unless otherwise noted.



                       Subpart 2446.5--Acceptance

2446.502  Responsibility for acceptance.



Sec. 2446.502-70  Contract clause.

    The Contracting Officer shall insert the clause at 2452.246-70, 
Inspection and Acceptance, in solicitations and contracts unless 
inspection and acceptance will be performed by someone other than the 
Government Technical Representative (GTR).

[[Page 683]]



        Subpart 2446.6--Material Inspection and Receiving Reports

    Note: Inspection of contractor's performance shall be performed as 
often as necessary to protect HUD's interest. HUD Form 9519, Acquired 
Property Inspection Report, shall be used to document inspection and 
acceptance for work performed on properties under the Acquired Property 
Program. Distribution shall be as indicated on the form.



                       Subpart 2446.7--Warranties



Sec. 2446.710  Contract clauses.

    (c)(1) The contracting officer may include a clause substantially 
the same as FAR 52.246-19, Warranty of Systems and Equipment under 
Performance Specifications or Design Criteria, whenever it is in the 
Government's interest.

[57 FR 59791, Dec. 15, 1992]



PART 2449--TERMINATION OF CONTRACTS--Table of Contents




    Authority: Sec. 7(d) of the Department of Housing and Urban 
Development Act (42 U.S.C. 3535(d)).

    Source: 49 FR 7708, Mar. 1, 1984, unless otherwise noted.



                   Subpart 2449.1--General Principles



Sec. 2449.111  Review of proposed settlements.

    The Head of the Contracting Activity shall establish internal 
procedures to ensure the independent review of proposed termination 
settlements in excess of $100,000.



PART 2451--USE OF GOVERNMENT SOURCES BY CONTRACTORS--Table of Contents




    Authority: Sec. 205(c) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 486(c)); sec. 7(d) of the Department of 
Housing and Urban Development Act (42 U.S.C. 3535(d)).

    Source: 53 FR 46538, Nov. 17, 1988, unless otherwise noted.



  Subpart 2451.3--Contractor Use of Government Discount Air Passenger 
                          Transportation Rates



Sec. 2451.303  Contract clause.

    The Contracting Officer shall insert the clause at 2452.251-70, 
Contractor Employee Travel, in all cost-reimbursement contracts 
involving airline travel.

[[Page 684]]



                     SUBCHAPTER H--CLAUSES AND FORMS





PART 2452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents




             Subpart 2452.2--Texts of Provisions and Clauses

Sec.
2452.203-70  Prohibition against the use of Federal employees.
2452.203-71  Certification regarding Federal employment.
2452.209-70  Organizational conflicts of interest notification.
2452.209-71  Organizational conflicts of interest certification.
2452.209-72  Organizational conflicts of interest.
2452.211-70  Contract period.
2452.215-70  Proposal content.
2452.216-70  Estimated cost, base fee, and award fee.
2452.216-71  Payment of base and award fee.
2452.216-72  Determination of award fee earned.
2452.216-73  Performance evaluation plan.
2452.216-74  Distribution of award fee.
2452.216-75  Unpriced task orders.
2452.219-70  Small, small disadvantaged, and women-owned small business 
          subcontracting plan.
2452.222-70  Accessibility of meetings, conferences, and seminars to 
          persons with disabilities.
2452.224-70  Freedom of Information Act notification.
2452.226-70  Certification of status as a minority business enterprise.
2452.232-70  Payment schedule and invoice submission (fixed-price).
2452.232-71  Voucher submission (cost-reimbursement).
2452.237-70  Key personnel.
2452.237-71  Reproduction of reports.
2452.237-72  Coordination of data collection activities.
2452.237-73  Conduct of work.
2452.237-74  Technical direction.
2452.237-75  Clearance of personnel.
2452.237-76  Background investigations for sensitive automated systems/
          applications.
2452.237-77  Observance of legal holidays and administrative leave.
2452.242-70  Indirect costs.
2452.242-71  Project management system.
2452.246-70  Inspection and acceptance.
2452.251-70  Contractor Employee Travel.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 53 FR 46538, Nov. 17, 1988, unless otherwise noted.



             Subpart 2452.2--Texts of Provisions and Clauses



Sec. 2452.203-70  Prohibition against the use of Federal employees.\5\
---------------------------------------------------------------------------

    \5\ This HUDAR clause has been submitted to the FAR Secretariat for 
consideration as FAR coverage with Governmentwide application. In the 
event that similar FAR coverage is issued, HUD will rescind the 
corresponding HUDAR text.
---------------------------------------------------------------------------

    As prescribed in 2403.670, insert the following clause in 
solicitations and contracts:

            PROHIBITION AGAINST THE USE OF FEDERAL EMPLOYEES

                              December 1992

    In accordance with Federal Acquisition Regulation 3.601, contracts 
are not to be awarded to Federal employees or a business concern or 
other organization owned or substantially owned or controlled by one or 
more Federal employees. For the purposes of this contract, this 
prohibition against the use of Federal employees includes any work 
performed by the Contractor or any of its employees, subcontractors, or 
consultants.
    [End of clause]

[57 FR 59791, Dec. 15, 1992]



Sec. 2452.203-71  Certification regarding Federal employment.\6\
---------------------------------------------------------------------------

    \6\ This HUDAR provision has been submitted to the FAR Secretariat 
for consideration as FAR coverage with Governmentwide application. In 
the event that similar FAR coverage is issued, HUD will rescind the 
corresponding HUDAR text.
---------------------------------------------------------------------------

    As prescribed in 2403.670, insert the following provision in 
solicitations:

               CERTIFICATION REGARDING FEDERAL EMPLOYMENT

                              December 1992

    By submitting an offer, the offeror hereby certifies that it is not 
owned or substantially owned or controlled by one or more Federal 
employees.
    [End of provision]

(Approved by the Office of Management and Budget under control number 
2535-0091).

[57 FR 59791, Dec. 15, 1992]

[[Page 685]]



Sec. 2452.209-70  Organizational conflicts of interest notification.

    As prescribed in 2409.508-1, insert the following solicitation 
provision in all solicitations.

       Organizational Conflict of Interest Notification (Feb 1987)

    (a) It is the Department of Housing and Urban Development's policy 
to avoid situations which place an offeror in a position where its 
judgment may be biased because of any past, present, or currently 
planned interest, financial or otherwise, that the offeror may have 
which relates to the work to be performed pursuant to this solicitation 
or where the offeror's performance of such work may provide it with an 
unfair competitive advantage.
    (b) Offerors shall provide a statement which describes in a concise 
manner all relevant facts concerning any past, present, or currently 
planned interest (financial, contractual, organizational, or otherwise) 
relating to the work to be performed hereunder and bearing on whether 
the offeror has a possible organizational conflict of interest with 
respect to (1) being able to render impartial, technically sound, and 
objective assistance or advice, or (2) being given an unfair competitive 
advantage. The offeror may also provide relevant facts that show how its 
organizational structure and/or management systems limit its knowledge 
of possible organizational conflicts of interest relating to other 
divisions or sections of the organization and how that structure or 
system would avoid or mitigate such organizational conflict. (Offerors 
should refer to FAR subpart 9.5 and HUDAR subpart 2409.5 for policies 
and procedures for avoiding, neutralizing, or mitigating organizational 
conflicts of interest).
    (c) In the absence of any relevant interests referred to above, the 
offeror shall complete the certification at 2452.209-71, Organizational 
Conflicts of Interest Certification.
    (d) No award shall be made until the disclosure or certification has 
been evaluated by the Contracting Officer. Failure to provide the 
disclosure or certification will be deemed to be a minor infraction and 
the offeror will be permitted to correct the omission within a time 
frame established by the Contracting Officer.
    (e) Refusal to provide the disclosure or certification and any 
additional information as required, or the willful nondisclosure or 
misrepresentation of any relevant information shall disqualify the 
offeror.
    (f) If the Contracting Officer determines that a potential conflict 
exists, the selected offeror shall not receive an award unless the 
conflict can be avoided or otherwise resolved through the inclusion of a 
special contract clause or other appropriate means. The terms of any 
special clause are subject to negotiation.

                           (End of provision)



Sec. 2452.209-71  Organizational conflicts of interest certification.

    As prescribed in 2409.508-1, insert the following solicitation 
provision in all solicitations.

      Organizational Conflicts of Interest Certification (Apr 1984)

    The bidder or offeror certifies that to the best of its knowledge 
and belief and except as otherwise disclosed, he or she does not have 
any organizational conflict of interest which is defined as a situation 
in which the nature of work to be performed under this proposed 
Government contract and the bidder or offeror's organizational, 
financial, contractual or other interests may, without some restriction 
on future activities:
    (a) Result in an unfair competitive advantage to the offeror; or
    (b) Impair the offeror's objectivity in performing the contract 
work.
    {time}  In the absence of any actual or apparent conflict, I hereby 
certify that to the best of my knowledge and belief, no actual or 
apparent conflict of interest exists with regard to
    Offeror(s) or Bidder(s) ____________________ possible performance of 
this procurement.

                           (End of provision)



Sec. 2452.209-72  Organizational conflicts of interest.

    As prescribed in 2409.508-2, insert the following contract clause in 
all contracts.

             Organizational Conflicts of Interest (Apr 1984)

    (a) The Contractor warrants that to the best of its knowledge and 
belief and except as otherwise disclosed, he or she does not have any 
organizational conflict of interest which is defined as a situation in 
which the nature of work under a Government contract and a Contractor's 
organizational, financial, contractual or other interests are such that:
    (1) Award of the contract may result in an unfair competitive 
advantage; or
    (2) The Contractor's objectivity in performing the contract work may 
be impaired.
    (b) The Contractor agrees that if after award he or she discovers an 
organizational conflict of interest with respect to this contract, he or 
she shall make an immediate and full disclosure in writing to the 
Contracting Officer which shall include a description of the action 
which the Contractor has taken or intends to take to eliminate or 
neutralize the conflict.

[[Page 686]]

    The Government may, however, terminate the contract for the 
convenience of the Government if it would be in the best interest of the 
Government.
    (c) In the event the Contractor was aware of an organizational 
conflict of interest before the award of this contract and intentionally 
did not disclose the conflict to the Contracting Officer, the Government 
may terminate the contract for default.
    (d) The provisions of this clause shall be included in all 
subcontracts and consulting agreements wherein the work to be performed 
is similar to the service provided by the prime contractor. The 
Contractor shall include in such subcontracts and consulting agreements 
any necessary provisions to eliminate or neutralize conflicts of 
interest.

                             (End of clause)



Sec. 2452.211-70  Contract period.

    As prescribed in 2411.404(a), insert the following clause in all 
solicitations and contracts:

                       Contract Period (Apr 1984)

    The Contractor shall complete all work hereunder, including delivery 
of the final report, if required, within __________ months from the 
effective date of the contract.

                             (End of clause)

[53 FR 46538, Nov. 17, 1988. Redesignated and amended at 61 FR 19472, 
May 1, 1996]



Sec. 2452.215-70  Proposal content.

    As prescribed in 2415.407(a), insert a provision substantially the 
same as the following:

                       Proposal Content (Oct 1995)

    (a) Proposals shall be submitted in two parts as described in 
paragraphs (b) and (c) below. Each of the parts must be complete in 
itself so that evaluation of each part may be conducted independently, 
and so that the technical and management part may be evaluated strictly 
on its own merit. Proposals shall be submitted in the format, if any, 
prescribed elsewhere in this solicitation. Proposals shall be enclosed 
in sealed packaging and addressed to the office specified in the 
solicitation. The offeror's name and address, the solicitation number 
and the date and time specified in the solicitation for proposal 
submission must appear in writing on the outside of the package.
    (b) Proposals shall be submitted in original and [insert number] 
copies of Part I and [insert number] copies of Part II.
    (c) Part I--Technical and Management.
    (1) Prior experience. The offeror shall provide evidence of the 
offeror's (i.e., firm's or organization's) prior and current experience 
in performing the work and/or providing the deliverables required by the 
solicitation.
    (2) Past Performance. The offeror shall provide evidence of the 
offeror's past performance in accomplishing work--including meeting 
delivery dates and schedules--the same as, or substantially similar to, 
that required by the solicitation. The offeror shall provide references 
as follows [Contracting Officer insert specific instruction for 
reference check information required].
    (3) Personnel qualifications. The offeror shall provide the names, 
position descriptions and information to support the qualifications--
including relevant experience, specialized training and education--of 
all proposed key personnel (see the clause entitled ``Key Personnel'' in 
this solicitation for further definition). The term ``personnel'' shall 
include any proposed consultants and subcontractor employees who will 
perform duties of key personnel.
    (4) Management Capability. The offeror shall provide evidence of 
his/her organization's ability to manage the work required under the 
proposed contract. The offeror shall describe how the work will be 
organized, the proposed staffing and the responsibilities and existing 
commitments of proposed staff.
    (5) Technical Capability. The offeror shall provide a detailed 
description of how he/she proposes to conduct the work required under 
the proposed contract.
    (6) Mandatory Minimum Requirements. The offeror shall provide 
evidence, including copies of documents, as appropriate of [contracting 
officer insert description of requirement(s), e.g., licenses, minimum 
experience, etc., or delete this paragraph if not applicable].
    (d) Part II--Business Proposal.
    (1) The Offeror shall complete the Representations and 
Certifications provided in Section K of this solicitation and include 
them in this Part II.
    (2) The offeror shall provide information to support the offeror's 
proposed costs or prices as prescribed elsewhere in this Section L.

(End of Provision)

                         Alternate I (Oct 1995)

    Substitute paragraph (c) with the following:
    (c) Part I--Technical and Management Information.
    (1) Prior experience. The offeror shall provide evidence that the 
offeror's (i.e., firm's or organization's) prior experience meets the 
following minimum standards: [contracting officer insert specific 
experience requirements].
    (2) Past Performance. The offeror shall provide evidence of the 
offeror's past performance as follows: [contracting officer insert 
specific performance requirements]. The

[[Page 687]]

offeror shall provide references as follows [contracting Officer insert 
specific instruction for reference check information required].
    (3) Personnel qualifications. The offeror shall provide the names, 
position descriptions and evidence that proposed key personnel (see the 
clause entitled ``Key Personnel'' elsewhere in this solicitation for 
definition) meet the minimum qualifications described below. The term 
``personnel'' includes any proposed consultants and subcontractor 
employees who will perform duties of key personnel. The minimum 
qualifications are: [contracting officer insert descriptions]
    (4) Management Capability. The offeror shall provide evidence of 
his/her organization's ability to manage the work required under the 
proposed contract. The offeror shall describe how the work will be 
organized, the proposed staffing and the responsibilities and existing 
commitments of proposed staff.

(End of provision)

                         Alternate II (Oct 1995)

    Add the following subparagraph, numbered sequentially, to paragraph 
(c):
    The offeror shall describe in detail how the offeror will maintain 
the security of automated systems as required by clause 2452.237-76 in 
Section I of this solicitation.

(End of provision)

[61 FR 19472, May 1, 1996]



Sec. 2452.216-70  Estimated cost, base fee, and award fee.

    As prescribed in 2416.405(e)(1), insert the following clause in all 
award fee contracts.

           Estimated Cost, Base Fee, and Award Fee (Apr 1984)

    The estimated cost of this contract is $ (Insert Amount). A base fee 
of $ (Insert Amount) is payable in accordance with the clause entitled 
Payment of Base and Award Fee. In addition, a maximum Award Fee of $ 
(Insert Amount) is available for payment in accordance with the clause 
entitled Payment of Base and Award Fee.

                             (End of clause)



Sec. 2452.216-71  Payment of base and award fee.

    As prescribed in 2416.405(e)(1), insert the following clause in all 
award fee contracts.

                Payment of Base and Award Fee (Aug 1987)

    (a) Base Fee. The Government will make payment of the base fee in 
(insert number) increments on the schedule set forth in the Performance 
Evaluation Plan established by the Government. The amount payable shall 
be based on the progress toward completion of contract tasks as 
determined by the Contracting Officer. Payment of the base fee is 
subject to any withholdings as provided for elsewhere in this contract.
    (b) Award Fee. The Government shall make payments of the award fee 
in accordance with the schedule established in the Performance 
Evaluation Plan and the Evaluation Period(s) set forth in the 
Distribution of Award Fee clause.

                             (End of clause)



Sec. 2452.216-72  Determination of award fee earned.

    As prescribed in 2416.405(e)(1), insert the following clause in all 
award fee contracts.

              Determination of Award Fee Earned (Aug 1987)

    (a) At the conclusion of each evaluation period specified in the 
Performance Evaluation Plan, the Government shall evaluate the 
contractor's performance and determine the amount, if any, of award fee 
earned by the contractor. The amount of award fee to be paid will be 
determined by the designated Fee Determination Official's (FDO) 
judgmental evaluation in accordance with the criteria set forth in the 
Performance Evaluation Plan. This decision is made unilaterally by the 
Government and is not subject to the disputes clause or the provisions 
of the Contract Disputes Act of 1978, 41 U.S.C. 601 et seq. In reaching 
this decision, the FDO may consider any justification of award fee the 
Contractor submits, provided that the justification is submitted within 
(insert number) days after the end of an evaluation period. The FDO 
determination shall be in writing, shall set forth the basis of the 
FDO's decision, and shall be sent to the Contractor within (insert 
number) days after the end of the evaluation period.
    (b) The FDO may specify in any fee determination that fee not earned 
during the period evaluated may be accumulated and be allocated for 
award during a later evaluation period. The Distribution of Award Fee 
clause shall be amended to reflect the allocation.

                             (End of clause)



Sec. 2452.216-73  Performance evaluation plan.

    As prescribed in 2416.405(e)(1), insert the following clause in all 
award fee contracts.

                 Performance Evaluation Plan (Aug 1987)

    (a) The Government shall unilaterally establish a Performance 
Evaluation Plan that

[[Page 688]]

will provide the basis for the determination of the amount of award fee 
awarded under the contract. The Plan shall set forth evaluation criteria 
and percentage of award fee available for (1) technical functions, 
including schedule requirements if appropriate, (2) management 
functions; and, (3) cost functions. The Government shall furnish a copy 
of the Plan to the Contractor (insert number) days before the start of 
the first evaluation period.
    (b) The Government may initially revise the Performance Evaluation 
Plan at any time during the contract term. The Contractor shall be 
notified at least (insert number) days before the start of the 
evaluation period to which the change will apply.

                             (End of clause)



Sec. 2452.216-74  Distribution of award fee.

    As prescribed in 2416.405(e)(1), insert the following clause in all 
award fee contracts.

                  Distribution of Award Fee (Apr 1984)

    (a) The total amount of award fee available under this contract is 
assigned to the following evaluation periods in the following amounts:

Evaluation Period:______________________________________________________
Available Award Fee:____________________________________________________

    (b) In the event of contract termination, either in whole or in 
part, the amount of award fee available shall represent a pro-rata 
distribution associated with evaluation period activities or events as 
deteremined by the Fee Determination Official as designated in the 
contract. The contract clauses required for cost reimbursement contracts 
should be modified for use under award fee contracts as cited below:
    (1) The term ``base fee and award fee'' should be substituted for 
``fixed-fee'' where it appears in the clause at FAR 52.243-2, Changes.
    (2) The term ``base fee'' should be substituted for ``fee'' where it 
appears in the clauses at FAR 52.232-20, Limitation of Costs, and FAR 
52.232-22, Limitation of Funds.
    (3) The phrase ``base fee, if any, and such additional fee as may be 
awarded as provided for in the Schedule''; should be substituted for the 
term ``fee'' whenever it appears in the clause at FAR 52.216-7, 
Allowable Cost and Payment.

                             (End of clause)



Sec. 2452.216-75  Unpriced task orders.

    As prescribed in 2416.504(e), insert the following clause:

                     Unpriced Task Orders (Apr 1984)

    (a) Although it is anticipated that the Government and the 
Contractor will reach agreement on the total cost and fee or profit (if 
applicable) for the effort to be undertaken, prior to the issuance of a 
Task Order, there may be occasions when the Government wishes to 
authorize commencement of work prior to agreement on price. If this is 
the case, a Task Order may be issued which provides that the Contractor 
shall immediately commence performance of the services specified in the 
order, and shall submit a pricing proposal within fifteen days of 
receipt of the Task Order. Upon negotiations of the cost, a supplemental 
agreement shall be executed to make specific all terms and conditions of 
the Task Order. Failure to agree for costs ordered under this procedure 
shall be considered a dispute within the meaning of the clause of this 
contract entitled Disputes.
    (b) Unpriced Task Orders shall indicate a ``not-to-exceed'' amount 
for the order; however, such amount shall not exceed 50 percent of the 
estimated cost of the Task Order. The Task Order shall only require the 
Contracting Officer's signature, but shall comply with all other Task 
Order requirements.

                             (End of clause)

[53 FR 46538, Nov. 17, 1988, as amended at 57 FR 59792, Dec. 15, 1992]



Sec. 2452.219-70  Small, Small Disadvantaged, and Women-Owned Small Business Subcontracting Plan.

    As prescribed in 2419.708, insert the following provision:

Small, Small Disadvantaged and Women-Owned Small Business Subcontracting 
                             Plan (Oct 1995)

    (a) This provision is not applicable to small business concerns.
    (b) Consistent with the national interest, it is HUD policy that 
small business, women-owned small business and small business concerns 
that are owned and controlled by socially and economically disadvantaged 
individuals shall have the maximum practicable opportunity to 
participate in the performance of HUD work at the prime and subcontract 
level. Therefore, any contract awarded as a result of this solicitation 
shall fully comply with the intent of this policy, and the successful 
offeror shall agree to pursue an effective and comprehensive small 
business, small disadvantaged business and women-owned small business 
subcontracting program in compliance with the clause entitled 
``Utilization of Small, Small Disadvantaged and Women-Owned Small 
Business Concerns.''

[[Page 689]]

    (c) Prior compliance with subcontracting plans shall be considered 
in determining the responsibility of an offeror (see FAR 9.104-3). 
Therefore, offerors having previous contracts with subcontracting plans 
shall provide the following information: agency name; agency point of 
contact; contract number; total contract value; a synopsis of the work 
required under the contract; the role(s) of the subcontractor(s) 
involved; and, the applicable goals and actual performance (dollars and 
percentages) for subcontracting with small, small disadvantaged and 
women-owned small business concerns. This information shall be provided 
for the three most recently (within the last three years) completed 
contracts with such subcontracting plans.
    (d) The contract expected to result from this solicitation will 
contain the clause at FAR 52.219-9, ``Small, Small Disadvantaged and 
Women-Owned Small Business Subcontracting Plan.'' In accordance with 
that clause, the offeror shall submit the complete subcontracting plan 
with the response to this solicitation. The content of the final plan is 
subject to negotiation. Failure to submit a complete subcontracting plan 
and negotiate its content in good faith shall make the offeror 
ineligible for the contract award.

(End of provision)

                         Alternate I (Dec 1992)

    This alternate is required for all sealed bid solicitations 
exceeding $500,000 ($1,000,000 for construction) that are not set aside 
for small business. In such cases, insert the following paragraph (d) 
for that in the basic clause:
    (d) The contract expected to result from this solicitation will 
contain the clause at FAR 52.219-9, ``Small, Small Disadvantaged and 
Women-Owned Small Business Subcontracting Plan (Alternate I).'' The 
offeror submitting the apparent low bid, upon request by the Contracting 
Officer, shall submit a subcontracting plan, where applicable, which 
addresses separately subcontracting with small, small disadvantaged 
business and women-owned small business concerns, and which shall be 
included in and made a part of the resultant contract. The Contracting 
Officer will review the adequacy of the subcontracting plan as part of 
the responsibility determination (FAR Subpart 9.1). Failure to submit an 
adequate subcontracting plan where applicable shall make the bidder 
ineligible for the contract award.

(End of provision)

(Approved by the Office of Management and Budget under control number 
2535-0091)

57 FR 59792, Dec. 15, 1992, as amended at 60 FR 46159, Sept. 5, 1995; 61 
FR 19473, May 1, 1996]



Sec. 2452.222-70  Accessibility of meetings, conferences, and seminars to persons with disabilities.

    As prescribed in 2422.1408(c), insert the following clause in all 
solicitations and contracts.

  Accessibility of Meetings, Conferences, and Seminars to Persons With 
                         Disabilities (Jul 1988)

    The contractor shall assure that any meeting, conference, or seminar 
held pursuant to the contract will meet all applicable standards for 
accessibility to persons with disabilities pursuant to section 504 of 
the Rehabilitation Act of 1973, as amended (29 U.S.C. 794) and any 
implementing regulations of the Department.

                             (End of clause)



Sec. 2452.224-70  Freedom of Information Act notification.

    As prescribed in 2424.202-70, insert the following provision in all 
solicitations.

           Freedom of Information Act Notification (Apr 1984)

    Proposals submitted in response to this solicitation are subject to 
disclosure under the Freedom of Information Act (FOIA). To assist the 
Department in determining whether or not to release information 
contained in a proposal in the event a FOIA request is received, 
offerors may, through clear earmarking or otherwise, indicate those 
portions of their proposals which they believe should not be disclosed. 
While an offeror's advice will be considered by the Department in its 
determination whether to release requested information or not, it must 
be emphasized that the Department is required by the FOIA to make an 
independent evaluation as to the information, notwithstanding the 
offeror's views. It is suggested that if an offeror believes that 
confidential treatment is appropriate, the basis for this view should be 
provided, where possible, because general assertions or blanket requests 
for confidentiality, without more information, are not particularly 
helpful to the Department in making determinations concerning the 
release of information under the Act. It should also be noted that the 
Department is required to segregate disclosable information from non-
disclosable items, so particular care should be taken in the 
identification of each portion of which confidential treatment is 
requested. Offeror's views concerning confidentiality will be used to 
aid the Department in preparing its response to FOIA requests. Further, 
offerors should note that the presence or absence of such comments or 
earmarking regarding confidential information will have no bearing 
whatsoever on the evaluation of

[[Page 690]]

proposals submitted pursuant to this solicitation, nor will the absence 
of this earmarking automatically result in greater disclosure.

                           (End of provision)



Sec. 2452.226-70  Certification of status as a minority business enterprise.

    As prescribed in 2426.703, insert the following provision in all 
solicitations:

        CERTIFICATION OF STATUS AS A MINORITY BUSINESS ENTERPRISE

                              (August 1995)

    Bidder, Offeror or Supplier certifies that he or she ______ is, 
______ is not, (check one), a minority business enterprise which is 
defined as a business which is at least 51 percent owned by one or more 
minority group members or, in the case of a publicly owned business, at 
least 51 percent of its voting stock is owned by one or more minority 
group members, and whose management and daily operations are controlled 
by one or more such individuals. For the purpose of this definition, 
minority group members are:

                    (Check the box applicable to you)

[  ] Black Americans
[  ] Hispanic Americans
[  ] Native Americans
[  ] Asian Pacific Americans
[  ] Asian Indian Americans

[60 FR 46159, Sept. 5, 1995]



Sec. 2452.232-70  Payment schedule and invoice submission (fixed-price).

    As prescribed in 2432.908(a), insert the following clause in all 
fixed price solicitations and contracts.

    Payment Schedule and Invoice Submission (Fixed-Price) (Mar 1988)

    (a) General. The Government shall pay the Contractor as full 
compensation for all work required, performed and accepted under this 
contract, inclusive of all costs and expenses, the firm fixed-price 
stated in Part I, Section B of this contract.

(USE PARAGRAPH (b) ONLY IF PARTIAL PAYMENTS APPLY. OTHERWISE PARAGRAPH 
(a) ABOVE ASSUMES THE CONTRACTOR WILL BE PAID THE FULL AMOUNT UPON 
COMPLETION OF ALL CONTRACT REQUIREMENTS)

    (b) Payment Schedule. Payments will be made in accordance with the 
following partial payment schedule:

----------------------------------------------------------------------------------------------------------------
        Partial payment number           Specific deliverable        Delivery date            Payment amount    
----------------------------------------------------------------------------------------------------------------
  1. [  ]                                                                                                       
  2. [  ]                                                                                                       
  3. [  ]                                                                                                       
----------------------------------------------------------------------------------------------------------------

                         (Continue as necessary)

    (c) Submission of Invoices. Invoices shall be submitted in an 
original and three (3) copies to the payment office identified in Block 
12 of the SF-26 or Block 25 of the SF-33. To constitute a proper 
invoice, the invoice must include all items per FAR 52.232-25, ``Prompt 
Payment.''
    To assist the Government in making timely payments, the Contractor 
is also requested to identify the appropriation number (from Block 14 if 
award is made on the SF-26 or Block 21 if award is made on the SF-33) on 
each invoice. The Contractor is also requested to identify on the 
envelope that an invoice is enclosed.
    (d) Contractor Remittance Address. Payment shall be made to the 
Contractor's address as specified on the cover page of this contract, 
unless a separate remittance address is specified below:

                      (Insert appropriate address)

                             (End of clause)

                         ALTERNATE I (MAR 1988)

    This alternate may be used in fixed-price contracts awarded by the 
Administrative Service Centers. In such cases, substitute the following 
paragraph (c) for that in the basic clause:
    (c) Invoices shall be submitted in an original and three (3) copies 
to the office identified on the cover page of the contract (SF-26 or SF-
33). To constitute a proper invoice, the invoice must include all items 
per FAR 52.232-25, ``Prompt Payment.''

[53 FR 46538, Nov. 17, 1988, as amended at 60 FR 46159, Sept. 5, 1995]



Sec. 2452.232-71  Voucher submission (cost-reimbursement).

    As prescribed in 2432.908(b), insert the following clause in all 
cost-reimbursement solicitations and contracts.

           Voucher Submission (Cost-Reimbursement) (Mar 1988)

    (a) The Contractor shall submit, on a monthly basis (Contracting 
Officer may substitute a different time frame, if appropriate), an 
original and two (2) copies of each voucher. In addition to the items 
necessary per FAR 52.232-25, ``Prompt Payment,'' the voucher shall show 
the elements of cost for the billing period and the cumulative costs to 
date. All vouchers shall be distributed as

[[Page 691]]

follows, except for the final voucher which shall be submitted in all 
copies to the Contracting Officer.

------------------------------------------------------------------------
                                                               Address  
                                                               shown on 
       Interim vouchers                Attention of            face of  
                                                             contract in
                                                                block   
------------------------------------------------------------------------
Original.....................  Voucher Examiner............           12
One copy.....................  Contracting Officer.........            5
One copy.....................  GTR.........................           11
------------------------------------------------------------------------

    To assist the Government in making timely payments, the Contractor 
is requested to identify the appropriation number (from Block 14 of the 
SF 26) on each voucher. The Contractor is also requested to identify on 
the envelope that a voucher is enclosed.
    (b) Contractor Remittance Address.
    Payment shall be made to the Contractor's address as specified on 
the cover page of this contract, unless a separate remittance address is 
specified below:

                      (Insert appropriate address)

                             (End of clause)

                         ALTERNATE I (MAR 1988)

    This alternate may be used in cost-reimbursement contracts awarded 
by the Administrative Service Centers. In such cases, substitute the 
following paragraph (a) for that in the basic clause:
    (a) The Contractor shall submit, on a monthly basis [Contracting 
Officer may substitute a different time frame, if appropriate], an 
original and three (3) copies of each voucher. In addition to the items 
necessary per FAR 52.232-25, ``Prompt Payment,'' the voucher shall show 
the elements of cost for the billing period and the cumulative costs to 
date. All vouchers shall be submitted to the Contracting Officer 
specified on the cover page of the contract (SF-26 or SF-33).

[53 FR 46538, Nov. 17, 1988, as amended at 60 FR 46159, Sept. 5, 1995]



Sec. 2452.237-70  Key personnel.

    As prescribed in 2347.110(a), insert the following clause in 
solicitations and contracts when it is necessary for contract 
performance to identify the Contractor's key personnel.

                        Key Personnel (Apr 1984)

    The personnel specified below are considered to be essential to the 
work being performed under this contract. Prior to diverting any of the 
specified individuals to other projects, the Contractor shall notify the 
Contracting Officer reasonably in advance and shall submit justification 
(including proposed substitutions) in sufficient detail to permit 
evaluation of the impact on the program. No diversion shall be made by 
the Contractor without the written consent of the Contracting Officer: 
Provided, that the Contracting Officer may ratify in writing such 
diversion and such ratification shall constitute the consent of the 
Contracting Officer required by this clause. This clause may be amended 
from time to time during the course of the contract to either add or 
delete personnel, as appropriate.

                          (List Key Personnel)

                             (End of clause)



Sec. 2452.237-71  Reproduction of reports.

    As prescribed in 2437.110(b), insert the following clause in 
solicitations and contracts where the Contractor is required to produce, 
as an end product, publications or other written materials.

                   Reproduction of Reports (Apr 1984)

    In accordance with Title I of the Government Printing and Binding 
Regulations, printing of reports, data, or other written material, if 
required herein, is authorized provided that the material produced does 
not exceed 5,000 production units of any page and that items consisting 
of multiple pages do not exceed 25,000 production units in aggregate. 
The aggregate number of production units is determined by multiplying 
pages times copies. A production unit is one set, size 8\1/2\ by 11 
inches or less, printed on one side only and in one color. All copy 
preparation to produce camera ready copy for reproduction must be set by 
methods other than hot metal typesetting. The reports should be produced 
by methods employing stencils, masters, and plates which are to be used 
in single unit duplicating equipment no larger than 11 by 17 inches with 
a maximum image of 10\3/4\ by 14\1/4\ inches and are prepared by methods 
or devices that do not utilize reusable contact negatives and/or 
positives prepared with a camera requiring a darkroom. All reproducibles 
(camera ready copies for reproduction by photo offset methods) shall 
become the property of the Government and shall be delivered to the 
Government with the report, data, or other written materials.

                             (End of clause)



Sec. 2452.237-72  Coordination of data collection activities.

    As prescribed in 2437.110(c), insert the following clause in 
solicitations and contracts where the Contractor is required to collect 
identical information from ten or more public respondents.

[[Page 692]]

          Coordination of Data Collection Activities (Apr 1984)

    If it is established at award or subsequently becomes a contractual 
requirement to collect identical information from ten or more public 
respondents, the Paperwork Reduction Act (44 U.S.C. 3501-3520) applies. 
In that event, the Contractor shall not take any action to solicit 
information from any of the public respondents until notified in writing 
by the Contracting Officer that the required Office of Management and 
Budget (OMB) final clearance was received.

                             (End of clause)



Sec. 2452.237-73  Conduct of work.

    As prescribed in 2437.110(d), insert the following clause in all 
contracts for services.

                       Conduct of Work (Apr 1984)

    (a) The Government Technical Representative (GTR) for liaison with 
the Contractor as to the conduct of work is __________, or a successor 
designated in writing by the Contracting Officer.
    (b) The Contractor's work hereunder shall be carried out under the 
supervision of __________.

                             (End of clause)

                               Alternate I

    This alternate is required for all fixed-price contracts for 
services. In such cases, add the following paragraph (c):
    (c) The GTR shall provide direction on contract performance. Such 
direction must be within the contract scope of work and may not be of a 
nature which: (1) institutes additional work outside the scope of the 
contract; (2) constitutes a change as defined in FAR 52.243-1; (3) 
causes an increase or decrease in the cost of the contract; (4) alters 
the period of performance or delivery dates; or, (5) changes any of the 
other express terms or conditions of the contract.

[53 FR 46538, Nov. 17, 1988, as amended at 58 FR 49437, Sept. 23, 1993]



Sec. 2452.237-74  Technical direction.

    As prescribed in 2437.110(e), insert the following clause in all 
cost-reimbursement type solicitations and contracts.

                     Technical Direction (Jun 1985)

    (a) The GTR will provide technical direction on contract 
performance. Technical direction includes:
    (1) Direction to the contractor as to which areas the Contractor is 
to emphasize or pursue.
    (2) Comments on and approval of reports or other deliverables.
    (b) Technical direction must be within the contract Statement of 
Work.
    The GTR does not have the authority to issue technical direction 
that: (1) institutes additional work outside the scope of the contract; 
(2) constitutes a change as defined in FAR 52.243-2; (3) causes an 
increase or decrease in the estimated cost of the contract; (4) alters 
the period of performance; or (5) changes any of the other express terms 
or conditions of the contract.
    (c) Technical direction will be issued in writing by the GTR or 
confirmed by him or her in writing within five calendar days after 
verbal issuance.

                             (End of clause)



Sec. 2452.237-75  Clearance of personnel.

    As prescribed in 2437.110(f), insert the following clause in 
solicitations and contracts where contractor personnel will be working 
on-site in any HUD office.

                   Clearance of Personnel (June 1995)

    (a) The contractor shall submit to the Contracting Officer within 
five days after contract award, two (2) completed Forms FD-258, 
``Fingerprint Chart'', one original and one copy of the SF 85P, 
``Questionnaire for Public Trust Positions'', and one original and one 
copy of the OF 306, ``Declaration for Federal Employment'', for the 
contractor and all employees who have access to the building in 
performance of the contract work. These forms must be submitted for all 
replacement employees prior to entrance on duty. Necessary forms will be 
furnished by HUD. If the Contracting Officer receives an unsuitable 
report on any employee after processing these forms or if the 
Contracting Officer finds a prospective employee to be unsuitable or 
unfit for his/her duties, the contractor shall be advised immediately 
that such employee cannot continue to work or be assigned to work under 
the contract.
    (b) HUD shall have and exercise full and complete control over 
granting, denying, withholding, or terminating employment eligibility of 
contractor employees.
    (c) Temporary identification/building passes shall be issued to each 
Contractor employee working on-site. The Contractor shall submit to the 
GTR a list of those employee(s) with their Social Security number(s). 
Building passes, when issued, shall indicate an expiration date not 
exceeding the first-year term of the contract. The passes shall be 
renewed for each succeeding option year, if any. The Contractor shall 
return, to the GTR, all building passes upon expiration of the contract, 
whenever the employment of any such employee is terminated, or when an

[[Page 693]]

employee no longer has a need for access to the building.

                             (End of clause)

[53 FR 46538, Nov. 17, 1988, as amended at 61 FR 19473, May 1, 1996]



Sec. 2452.237-76   Background investigations for sensitive automated systems/applications.

    As prescribed in 2437.110(g), insert the following clause:

 BACKGROUND INVESTIGATIONS FOR SENSITIVE AUTOMATED SYSTEMS/APPLICATIONS 
                              DECEMBER 1992

    (A) General. This contract involves work on or access to an 
automated system [name] that has a sensitivity rating of [3 or 4], as 
defined in Appendix A of HUD Handbook 2400.23, ``ADP Security.'' All 
contractor employees working on this contract are required to have a 
background investigation commensurate with the rating of the automated 
system (position designation of: 6, High Risk; 5, Moderate Risk; or 1, 
Low Risk) in accordance with Federal Personnel Manual (FPM) Chapters 
731, 732, and 736. Any employee who is required to have a background 
investigation shall not be permitted to work on this contract without 
the required investigation; however, contractor employees in Low Risk 
positions are eligible for immediate (interim) approval if the 
contractor submits the required security package described in paragraph 
(c) of this section within 14 days of contract award. The contractor 
shall establish personnel security procedures that meet, as a minimum, 
the requirements of Handbook 2400.23 and shall provide a copy to the 
GTR.
    (b) Citizenship-related requirements. Every contractor employee 
working on the sensitive applications of this contract shall satisfy at 
least one of the following requirements: (1) be a citizen living in the 
U.S.; or (2) owe allegiance to the U.S.
    (c) Approval process. To obtain a background investigation, the 
contractor shall submit the following completed forms to the GTR for 
screening and transmittal to the Office of the Inspector General's (OIG) 
Security Staff for initiation of the required investigation: SF 85-P, 
Questionnaire for Public Trust Positions; SF 86A, Continuation Sheet (if 
needed); SF-171, Application for Federal Employment: FD-258, Fingerprint 
Chart; and other forms or information as may be necessary. An original 
and two copies of SF-171 and SF 85-P are necessary. The investigation 
process shall consist of: a range of personal background inquiries and 
contacts (written and personal) pertaining to verification of the 
information provided on the security forms. The background investigation 
may be waived by HUD upon presentation of acceptable evidence that an 
employee has received a timely appropriate background investigation.
    Upon completion of the investigation process, the Contracting 
Officer, after conferring with the appropriate HUD offices, shall notify 
the contractor in writing of the individual's eligibility or 
ineligibility to work on this contract. The contractor is responsible 
for ensuring that such investigations are requested as necessary for the 
performance of this contract. If contractor personnel will be working 
on-site in any HUD office, the contractor shall comply with the 
requirements of HUDAR clause 2452.237-75--Clearance of Personnel and 
obtain building passes for those personnel.
    (d) Signed pledges. The contractor shall require that any employees 
who may have access to the automated systems identified in Section C of 
this contract sign a pledge of nondisclosure of information. These 
pledges shall be signed by the employees before they are assigned to 
this contract and shall be maintained by the contractor for a period of 
three years after final payment under the contract.
    (e) Nondisclosure of information. Neither the contractor nor any of 
its employees shall divulge or release data or information developed or 
obtained during performance of this contract, except to authorized 
Government personnel with an established need to know or upon written 
approval of the Contracting Officer. Information contained in all source 
documents and other media provided by HUD are the sole property of HUD.
    (f) Contract performance. If HUD receives disqualifying information 
on a contractor employee, the contractor, upon written notice, will 
immediately remove the employee from work on this contract. Contractor 
employees may be barred from working on this contract for failing to 
meet or maintain the suitability standards prescribed in FPM Chapter 
731, as applicable. Failure to comply with the terms of this clause may 
result in termination for default.
    (g) Notification. The contractor shall notify the Government 
Technical Representative (GTR) in writing (with a copy to the 
contracting officer) whenever a cleared employee terminates employment 
or is no longer working on this contract, and the GTR shall notify the 
HUD ADP Security Staff, who will notify the OIG Security Staff. The 
contractor shall immediately notify the Contracting Officer of any 
breach or suspected breach of security or any unauthorized disclosure of 
the information contained in the automated system specified in this 
contract.
    (h) Subcontracts. The contractor shall incorporate this clause in 
all subcontracts

[[Page 694]]

where the requirements specified in paragraph (a) of this section are 
applicable to performance of the subcontract.
    [End of clause]

(Approved by the Office of Management and Budget under control number 
2535-0091)

[57 FR 59793, Dec. 15, 1992]



Sec. 2452.237-77  Observance of legal holidays and administrative leave.\8\

    As prescribed in 2437.110(h), insert the following clause:
---------------------------------------------------------------------------

    \8\ This HUDAR clause has been submitted to the FAR Secretariat for 
consideration as FAR coverage with Governmentwide application. In the 
event that similar FAR coverage is issued, HUD will rescind the 
corresponding HUDAR text.
---------------------------------------------------------------------------

          Observance of Legal Holidays and Administrative Leave

                              December 1992

    (a) The Department of Housing and Urban Development observes the 
following days as holidays:

New Year's Day
Martin Luther King's Birthday
Washington's Birthday
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans Day
Thanksgiving Day
Christmas Day

    Any other day designated by Federal law, Executive Order, or 
Presidential Proclamation.
    (b) When any such day falls on a Saturday, the preceding Friday is 
observed; when any such day falls on a Sunday, the following Monday is 
observed. Observances of such days by Government personnel shall not be 
cause for additional period of performance or entitlement to 
compensation except as set forth in the contract. If the contractor's 
personnel work on a holiday, no form of holiday or other premium 
compensation will be reimbursed either as a direct or indirect cost, 
unless authorized pursuant to an overtime clause elsewhere in this 
contract.
    (c) When HUD grants administrative leave to its Government 
employees, assigned contractor personnel in Government facilities shall 
also be dismissed. However, the contractor agrees to continue to provide 
sufficient personnel to perform round-the-clock requirements of critical 
tasks already in operation or scheduled, and shall be guided by the 
instructions issued by the Contracting Officer or his/her duly 
authorized representative.
    (d) For fixed-price contracts, if services are not required or 
provided because the building is closed due to inclement weather, 
unanticipated holidays declared by the President, failure of the 
Congress to appropriate funds, or similar reasons, deductions will be 
computed as follows:
    (1) The deduction rate in dollars per day will be equal to the per 
month contract price divided by 21 days per month.
    (2) The deduction rate in dollars per day will be multiplied by the 
number of days services are not required or provided.
    If services are provided for portions of days, appropriate 
adjustment will be made by the Contracting Officer to ensure that the 
contractor is compensated for services provided.
    (e) If administrative leave is granted to contractor personnel as a 
result of conditions stipulated in any ``Excusable Delays'' clause of 
this contract, it will be without loss to the contractor. The cost of 
salaries and wages to the contractor for the period of any such excused 
absence shall be a reimbursable item of direct cost hereunder for 
employees whose regular time is normally charged, and a reimbursable 
item of indirect cost for employees whose time is normally charged 
indirectly in accordance with the contractor's accounting policy.

[57 FR 59793, Dec. 15, 1992, as amended at 60 FR 46159, Sept. 5, 1995]



Sec. 2452.242-70  Indirect costs.

    As prescribed in 2442.705-70, insert the following clause in cost-
reimbursement type solicitations and contracts when it is determined 
that the Contractor will be compensated for negotiated or provisional 
indirect cost rates pending establishment of final indirect cost rates.

                        Indirect Costs (Apr 1984)

    (a) Pursuant to the provisions of the clause of this contract 
entitled, ``Allowable Cost and Payment'' the rates listed below are 
established. If the column entitled, ``Ceiling Rate'' has rates listed, 
the ceiling applies for those rates only. If there are no ceiling rates 
listed, ceilings do not apply to this contract and the provisions of 
paragraph (b) of this clause are not applicable.

[[Page 695]]



----------------------------------------------------------------------------------------------------------------
             Period                    Category        Provisional rate      Ceiling rate            Base       
----------------------------------------------------------------------------------------------------------------
Effective date until amended:                                                                                   
  (b) For the term of this contract, the final indirect rates shall not exceed the ceiling rates listed above,  
   if any. However, in the event the indirect rates developed by the cognizant audit activity on the basis of   
   actual allowable costs are less than the ceiling rates agreed to herein, then the rates established by such  
   cognizant audits shall apply (downward adjustment only). The Government shall not be obligated to pay any    
   additional amounts on indirect rates above the ceiling rates set forth for the applicable period.            
                                                                                                                
                                                 (End of clause)                                                
----------------------------------------------------------------------------------------------------------------



Sec. 2452.242-71  Project management system.

    As prescribed in 2442.1107, insert the following clause:

                  Project Management System (Jun 1984)

    The Contractor shall provide to the GTR and Contracting Officer a 
project management system workplan and regular status reports showing 
actual progress against the workplan. The project management system 
utilizes two reporting forms (the HUD 441.1 Baseline Plan and the HUD 
661.1 Progress Report), in addition to a narrative description. Briefly, 
the workplan and progress reports shall consist of the following:

                                Workplan

    The workplan shall consist of a narrative description and a graphic 
summary (HUD 441.1) of the schedule and financial elements of the 
contract. The narrative shall: (1) describe the planned schedule; (2) 
identify each step in the work process required for completing the 
contract work and the period of time needed to accomplish each step, 
expressed in terms of calendar dates; (3) provide the staff, financial, 
and other resources allocated to each task; and, (4) provide the 
rationale for project organization, staff utilization, and other 
resources allocated to each task or activity. The HUD 441.1 shall show: 
(1) cumulative planned or budgeted costs of work scheduled for each 
reporting period over the life of the contract; and (2) the planned 
project schedule that traces, by reporting period, the task or sub-task 
start dates, periods of work in progress, and completion dates.

                            Progress Reports

    Progress reports shall consist of a narrative report and the HUD 
661.1 which depicts actual progress against planned progress. The 
narrative report shall: (1) provide a brief, factual summary description 
of technical progress made and costs incurred for each task (or group of 
tasks) during the reporting period; and, (2) identify significant 
problems and their impacts, causes, proposed corrective actions, and the 
effect that such corrective actions will have on the accomplishment of 
the contract objectives. The HUD 661.1 reproduces the Baseline Plan (HUD 
441.1) and shall show: (1) the schedule status or the degree of 
completion of tasks/activities by time intervals; and, (2) cost status 
or the actual costs of work performed in accomplishing the tasks.
    Specific and detailed guidance on preparing the forms and the 
narratives may be obtained from the GTR.

                             (End of clause)

[53 FR 46538, Nov. 17, 1988, as amended at 61 FR 19473, May 1, 1996]



Sec. 2452.246-70  Inspection and acceptance.

    As prescribed in 2446.502-70, insert the following clause in 
solicitations and contracts unless inspection and acceptance will be 
performed by someone other than the GTR.

                  Inspection and Acceptance (Apr 1984)

    Inspection and acceptance of all work required under this contract 
shall be performed by the Government Technical Representative (GTR) 
identified in Block 11 of the SF-26, or other individual as designated 
by the Contracting Officer of GTR.

                             (End of clause)



Sec. 2452.251-70  Contractor employee travel.

    As prescribed in 2451.303, insert the following clause in all cost-
reimbursement solicitations and contracts involving airline travel.

                  Contractor Employee Travel (Feb 1987)

    (a) In the event that travel is required by this contract, the 
Contractor shall, to the maximum extent practical, utilize the travel 
discounts offered to Federal travelers, through use of contracted 
airline discount air fares, hotel and motel lodging rates, and car 
rental companies, which are available to contractor employees performing 
official Government contract business. Vendors providing these services 
may require that the contractor employee traveling on Government 
business be furnished with a letter of identification signed by the 
Contracting Officer.

[[Page 696]]

    (b) The Contractor shall provide the Contracting Officer with the 
names of those individuals who are required to travel per the contract 
terms. The Contracting Officer shall provide the Contractor with an 
identification letter for presentation to the participating vendors.
    (c) The Contractor shall bill the Government for the actual costs 
incurred for travel in accordance with FAR 31.205-46, ensuring that 
other savings achieved through the use of any discount fares accrue to 
the Government.

                             (End of clause)



PART 2453--FORMS--Table of Contents




Sec.
2453.000  Scope of part.

                  Subpart 2453.2--Prescription of Forms

2453.213  Small purchases and other simplified purchase procedures.
2453.213-70  HUD Form 24007, Purchase/Delivery Order Data File.
2453.213-71  HUD Form 2452, Purchase Order and Payment Authorization.
2453.215  Contracting by negotiation.
2453.215-70  HUD Form 4056, Abstract of Proposals.
2453.217  Special contracting methods.
2453.217-70  HUD Form 730, Award/Modification of Interagency Agreement.
2453.227  Patents, data, and copyrights.
2453.227-70  HUD Form 770, Report of Inventions and Subcontracts.
2453.237-70  HUD Form 24002, GTR Performance Assessment (Final).
2453.242  Contract administration.
2453.242-70  HUD Form 441.1, Project Management System Baseline Plan.
2453.242-71  HUD Form 661.1, Project Management System Progress Report.
2453.246  Quality Assurance.
2453.246-70  HUD Form 9519, Acquired Property Inspection Report.

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).

    Source: 53 FR 46543, Nov. 17, 1988, unless otherwise noted.



Sec. 2453.000  Scope of part.

    This part prescribes Agency forms for use in acquisition and 
contains requirements and information generally applicable to the forms.



                  Subpart 2453.2--Prescription of Forms

2453.213  Small purchases and other simplified purchase procedures.



Sec. 2453.213-70  HUD Form 24007. Purchase/Delivery Order Data File.

    As prescribed in 2413.107(a)(4), HUD Form 24007 may be used by the 
Contracting Officer to record all relevant data pertaining to a small 
purchase, including recording written and oral quotations received and 
documenting orders against GSA contracts.



Sec. 2453.213-71  HUD Form 2542, Purchase Order and Payment Authorization.

    As prescribed in 2413.505-2(b), Contracting Officers may use HUD 
Form 2542 for small purchases charged to the FHA Fund.

[60 FR 46159, Sept. 5, 1995]
2453.215  Contracting by negotiation.



Sec. 2453.215-70  HUD Form 4056, Abstract of Proposals.

    As prescribed in 2415.411-70, HUD Form 4056 may be used by the 
Contracting Officer to record the names and addresses of offerors whose 
proposals are received before the stated deadline.
2453.217  Special contracting methods.



Sec. 2453.217-70  HUD Form 730, Award/Modification of Interagency Agreement.

    As prescribed in 2417.504(b), HUD Form 730 shall be used by 
Contracting Officers when placing or modifying an order for supplies or 
services from another Government agency.
2453.227  Patents, data, and copyrights.



Sec. 2453.227-70  HUD Form 770, Report of Inventions and Subcontracts.

    As prescribed in 2427.305-2, HUD Form 770 shall be completed by the 
Contractor, and submitted to the Contracting Officer, if requested, upon 
completion of the contract.

[[Page 697]]



Sec. 2453.237-70  HUD Form 24002, GTR Performance Assessment (Final).

    As prescribed in 2437.205, Government Technical Representatives 
shall use HUD Form 24002 to document the contractor's performance and 
the utility of products or services delivered. This form may also be 
used for other contracts.

[60 FR 46159, Sept. 5, 1995]
2453.242  Contract administration.



Sec. 2453.242-70  HUD Form 441.1, Project Management System Baseline Plan.

    As prescribed in 2442.1106(a), HUD Form 441.1 shall be used in 
contract for professional or technical services exceeding $100,000.00 by 
Contractors to show how they propose to carry out the contract work. The 
requirement may be waived by the Contracting Officer if he or she 
believes that the Statement of Work or Contractor's technical proposal 
is sufficiently specific or another acceptable means for project 
management is substituted.



Sec. 2453.242-71  HUD Form 661.1, Project Management System Progress Report.

    As prescribed in 2442.1106(a), HUD Form 661.1 shall be used in 
conjunction with the HUD Form 441.1 to monitor quantitative progress 
against the baseline plan. The 661.1 need not be used if use of HUD Form 
441.1 has been waived by the Contracting Officer; however, some 
acceptable means of progress reporting must be substituted.
2453.246  Quality Assurance.



Sec. 2453.246-70  HUD Form 9519, Acquired Property Inspection Report.

    As prescribed in 2446.6, HUD Form 9519 shall be used to document 
inspection and acceptance for work performed on properties under the 
Acquired Property Program.

[[Page 699]]



                 CHAPTER 25--NATIONAL SCIENCE FOUNDATION




                          (Parts 2500 to 2599)

  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
2501            Federal Acquisition Regulations System......         700
                   SUBCHAPTER B--ACQUISITION PLANNING
2509            Contractor qualifications...................         702
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
2515            Contracting by negotiation..................         704
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
2527            Patents, data, and copyrights...............         705
2532            Contract financing..........................         705

[[Page 700]]



                          SUBCHAPTER A--GENERAL





PART 2501--FEDERAL ACQUISITION REGULATIONS SYSTEM--Table of Contents




              Subpart 2501.1--Purpose, Authority, Issuance

Sec.
2501.101  Purpose.
2501.102  Authority.
2501.103  Applicability.
2501.104  Issuance.
2501.104-1  Publication and code arrangement.
2501.104-2  Arrangement of regulations.

                 Subpart 2501.4--Deviations From the FAR

2501.403  Individual deviations.
2501.404  Class deviations.

       Subpart 2501.6--Contracting Authority and Responsibilities

2501.601  General.
2501.602  Contracting officers.
2501.602-1  Authority.

    Authority: 42 U.S.C. 1870(a).

    Source: 49 FR 46744, Nov. 28, 1984, unless otherwise noted.



              Subpart 2501.1--Purpose, Authority, Issuance



Sec. 2501.101  Purpose.

    These regulations implement and supplement the Federal Acquisition 
Regulations (FAR).



Sec. 2501.102  Authority.

    The NSF Acquisition Regulations are issued under the authority of 
section 11(a) of the National Science Foundation Act of 1950, as amended 
(42 U.S.C. 1870(a)).



Sec. 2501.103  Applicability.

    Except where a deviation is specifically authorized in accordance 
with subpart 2501.4 or otherwise authorized by law, the FAR and the 
NSFAR govern all NSF acquisitions.
2501.104  Issuance.



Sec. 2501.104-1  Publication and code arrangement.

    (a) The NSFAR is published in the daily issues of the Federal 
Register and, in cumulative form, in the Code of Federal Regulations.
    (b) The NSFAR is issued as chapter 25 of title 48, CFR.



Sec. 2501.104-2  Arrangement of regulations.

    The NSFAR uses the same numbering system and arrangement used in the 
FAR. Where the NSFAR implements the FAR it is numbered and captioned to 
correspond to the FAR. Where there is no corresponding material in the 
FAR, Parts 70 and up are used by the NSFAR. Where the subject matter in 
the FAR requires no implementation the NSFAR contains no corresponding 
part.



                 Subpart 2501.4--Deviations From the FAR



Sec. 2501.403  Individual deviations.

    Individual deviations, affecting only one contracting action may be 
authorized by the NSF Procurement Executive.



Sec. 2501.404  Class deviations.

    Class deviations may be authorized by the NSF Procurement Executive 
subject to the limitations set forth in FAR subpart 1.4.



       Subpart 2501.6--Contracting Authority and Responsibilities



Sec. 2501.601  General.

    Authority and responsibility to contract for authorized supplies and 
services is vested in the Director, NSF, within the limits expressly 
provided by the National Science Foundation Act of 1950 (42 U.S.C. 1861 
et seq.). The NSF Procurement Executive is delegated overall 
responsibility by the Director for the Foundation's contracting 
activities.
2501.602  Contracting officers.



Sec. 2501.602-1  Authority.

    NSF Contracting Officers have authority to enter into, administer, 
or terminate contracts and make related

[[Page 701]]

determinations and findings to the extent of the authority delegated to 
them in writing by the NSF Procurement Executive.

[[Page 702]]



                   SUBCHAPTER B--ACQUISITION PLANNING





PART 2509--CONTRACTOR QUALIFICATIONS--Table of Contents




        Subpart 2509.4--Debarment, Suspension, and Ineligibility

Sec.
2509.400  Scope of subpart.
2509.403  Definitions.
2509.405  Effect of listing.
2509.405-1  Continuation of current contracts.
2509.405-2  Restrictions on subcontracting.
2509.406  Debarment.
2509.406-1  General.
2509.406-3  Procedures.
2509.407  Suspension.
2509.407-1  General.
2509.407-3  Procedures.
2509.408  Certification regarding debarment, suspension, proposed 
          debarment, and other responsibility matters.
2509.410  Appeals.

    Authority: Sec. 11(a), National Science Foundation Act of 1950, as 
amended (42 U.S.C. 1870(a)).

    Source: 57 FR 34881, Aug. 7, 1992, unless otherwise noted.



        Subpart 2509.4--Debarment, Suspension, and Ineligibility



Sec. 2509.400  Scope of subpart.

    This subpart supplements subpart 9.4 of the Federal Acquisition 
Regulation by prescribing NSF policies and procedures and assigning 
responsibility for making debarment and suspension decisions. Nothing in 
this subpart is intended to alter the effect of subpart 9.4.



Sec. 2509.403  Definitions.

    The NSF Deputy Director is the ``debarring official'' and 
``suspending official'' for the Foundation. All duties assigned to the 
NSF Deputy Director by this regulation or by subpart 9.4 of the Federal 
Acquisition Regulation may be delegated by him or her to any officer or 
employee of the Foundation.
2509.405  Effect of listing.



Sec. 2509.405-1  Continuation of current contracts.

    (a) The NSF Deputy Director will decide whether to continue NSF 
contracts or subcontracts in existence at the time a contractor is 
debarred, suspended, or proposed for debarment.
    (b) The NSF Deputy Director will decide whether to renew or 
otherwise extend the duration of NSF contracts, or consent to 
subcontracts, with contractors debarred, suspended, or proposed for 
debarment. He or she will prepare a written statement of the compelling 
reasons for renewal and extension.



Sec. 2509.405-2  Restrictions on subcontracting.

    The NSF Deputy Director may authorize a contracting officer to 
consent to a subcontract with a contractor debarred, suspended, or 
proposed for debarment. Her or she will prepare a written statement of 
the compelling reasons for such approval.
2509.406    Debarment.



Sec. 2509.406-1  General.

    (c) The NSF Deputy Director will decide whether to enter into a 
contract with a contractor that is debarred or proposed for debarment. 
He or she will prepare a written statement of the compelling reasons 
justifying continued business dealings between the Foundation and the 
contractor.



Sec. 2509.406-3  Procedures.

    (a) Any NSF employee who becomes aware of circumstances that may 
serve as the basis for debarment of a contractor will promptly report 
them to the NSF Office of Inspector General (OIG) and the debarring 
official. OIG will investigate the circumstances and, if it determines 
appropriate, prepare a written referral of the matter to the debarring 
official.
    (b) Upon receipt of a referral from the NSF Office of Inspector 
General, the debarring official will determine, in consultation as 
appropriate with OIG, the NSF Office of the General Counsel, the NSF 
Procurement Executive, and program officials, what additional steps are 
necessary and appropriate to make a decision in accordance with the 
requirements of 48 CFR 9.406-3.

[[Page 703]]

2509.407  Suspension.



Sec. 2509.407-1  General.

    (d) The NSF Deputy Director will decide whether to enter into a 
contract with a suspended contractor. He or she will prepare a written 
statement of the compelling reasons justifying continued business 
dealings between the Foundation and the contractor.



Sec. 2509.407-3  Procedures.

    (a) Any NSF employee who becomes aware of circumstances that may 
serve as the basis for suspension of a contractor will promptly report 
them to the NSF Office of Inspector General (OIG) and the suspending 
official. OIG will investigate the circumstances and, if it determines 
appropriate, prepare a written referral of the matter to the suspending 
official.
    (b) Upon receipt of a referral from the NSF Office of Inspector 
General, the suspending official will determine, in consultation as 
appropriate with OIG, the NSF Office of the General Counsel, the NSF 
Procurement Executive, and program officials, what additional steps are 
necessary and appropriate to make a decision in accordance with the 
requirements of 48 CFR 9.407-3.



Sec. 2509.408  Certification regarding debarment, suspension, proposed debarment, and other responsibility matters.

    (a)(2) NSF contracting officers will notify the Office of Inspector 
General and the Deputy Director whenever information submitted by 
offerors in compliance with the Certifications Regarding Debarment, 
Suspension, Proposed Debarment, and Other Responsibility Matters 
provisions in solicitations indicates the existence of an indictment, 
charge, conviction, or civil judgment.



Sec. 2509.410  Appeals.

    (a) A debarred or suspended contractor may appeal to the Director in 
writing within 30 days after receiving notice of the debarring or 
suspending official's decision in accordance with 48 CFR 9.406-3(e) or 
Sec. 9.407-3(d)(4). The debarring or suspending official's decision 
becomes a final administrative action if not appealed within the 30 day 
period.
    (b) The Director may appoint an uninvolved NSF officer or employee 
to review an appeal and make recommendations.
    (c) The Director will inform the appellant of a final decision 
within 30 days after receiving the appeal. That decision will be the 
final administrative action of the Foundation.

[[Page 704]]



          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES





PART 2515--CONTRACTING BY NEGOTIATION--Table of Contents




    Authority: 42 U.S.C. 1870(c).

    Source: 49 FR 46744, Nov. 28, 1984, unless otherwise noted.



                 Subpart 2515.2--Negotiation Authorities



Sec. 2515.215-70  NSF negotiation authorities.

    (a) Authorities. Citation: 42 U.S.C. 1870(c).
    (b) Application. When an NSF contract is for scientific activities 
which are determined by the NSF contracting officer to be ``necessary to 
carry out the purposes of the NSF Act,'' then 41 U.S.C. 252(c)(15) is 
applicable and the contract may be entered into through negotiation 
rather than formal advertising. The Foundation's contracting officer 
may, in lieu of reliance on 42 U.S.C. 1870(c) and 41 U.S.C. 252(c)(15), 
utilize other applicable negotiating authorities at his or her 
discretion. 42 U.S.C. 1870(c) and 41 U.S.C. 252(c)(15) may also be used 
to authorize negotiation if the Foundation is carrying out, ``at the 
request of the Secretary of State or Secretary of Defense, specific 
scientific activities in connection with matters relating to 
international cooperation or national security.'' Contracts or their 
modifications entered into under this authority may be done so without 
legal consideration and without performance or other bonds.

[[Page 705]]



             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS





PART 2527--PATENTS, DATA, AND COPYRIGHTS--Table of Contents




          Subpart 2527.70--Disposition of Rights in Inventions

Sec.
2527.7001  General.
2527.7002  NSF patent policy.

                Subpart 2527.71--Data Rights--[Reserved]

    Authority: 35 U.S.C. 200-212; 42 U.S.C. 1870(e) and 1871); and the 
Presidential Memorandum entitled ``Government Patent Policy'', issued 
February 18, 1983.



          Subpart 2527.70--Disposition of Rights in Inventions



Sec. 2527.7001  General.

    National Science Foundation policies, procedures, and clauses 
governing allocation of rights to inventions made under NSF contracts, 
grants, and cooperative agreements are codified as part 650 of title 45 
of the Code of Federal Regulations.

[57 FR 34882, Aug. 7, 1992, as amended at 61 FR 51022, Sept. 30, 1996]



Sec. 2527.7002  NSF patent policy.

    As authorized by the National Science Board at its 230th meeting, 
October 15-16, 1981, the Director of the National Science Foundation has 
adopted the following statement of NSF patent policy.
    (a) In accordance with by the Bayh-Dole Act and the Presidential 
Memorandum entitled ``Government Patent Policy'' issued February 18, 
1983, the Foundation will use the Patent Rights clause prescribed by the 
Department of Commerce in all its funding agreements for the performance 
of experimental, developmental, or research work, including awards made 
to foreign entities, unless the Foundation determines that some other 
provision would better serve the purposes of that Act or the interests 
of the United States and the general public.
    (b) In funding agreements covered by a treaty or agreement that 
provides that an international organization or foreign government, 
research institute, or inventor will own or share patent rights, the 
Foundation will acquire such patent rights as are necessary to comply 
with the applicable treaty or agreement.
    (c) If an awardee elects not to retain rights to an invention, the 
Foundation will allow the inventor to retain the principal patent rights 
unless the awardee, or the inventor's employer if other than the 
awardee, shows that it would be harmed by that action.
    (d) The Foundation will normally allow any patent rights not wanted 
by the awardee or inventor to be dedicated to the public through 
publication in scientific journals or as a statutory invention 
registration. However, if another Federal agency is known to be 
interested in the relevant technology, the Foundation may give it an 
opportunity to review and patent the invention so long as that does not 
inhibit the dissemination of the research results to the scientific 
community.

[57 FR 34882, Aug. 7, 1992]



                Subpart 2527.71--Data Rights--[Reserved]



PART 2532--CONTRACT FINANCING--Table of Contents




                    Subpart 2532.4--Advance Payments

Sec.
2532.401  Statutory authority.
2532.403  Applicability.

    Authority: 42 U.S.C. 1870(d).

    Source: 49 FR 46745, Nov. 28, 1984, unless otherwise noted.



                    Subpart 2532.4--Advance Payments



Sec. 2532.401  Statutory authority.

    The NSF Act (42 U.S.C. 1870(d)) provides that advance, progress, or 
other payments which relate to scientific activities or scientific 
information may

[[Page 706]]

be made without regard to the provisions of section 3324 of title 31 of 
the United States Code.

[49 FR 46745, Nov. 28, 1984, as amended at 61 FR 51022, Sept. 30, 1996]



Sec. 2532.403  Applicability.

    Advance payments may be made in any amount not exceeding the 
contract price, provided (a) the amount of the advance payment is based 
upon an analysis of the financing required by the contractor for the 
contract and does not exceed reasonable financial requirements between 
payments, and (b) such advance payment is appropriate in order to 
contract for the required work.

[[Page 707]]



                    CHAPTER 28--DEPARTMENT OF JUSTICE




                          (Parts 2800 to 2899)

  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
2801            Department of Justice Acquisition 
                    Regulations System......................         709
2802            Definitions of words and terms..............         716
2803            Improper business practices and personal 
                    conflicts of interest...................         716
2804            Administrative matters......................         719
           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
2805            Publicizing contract actions................         722
2806            Competition requirements....................         723
2807            Acquisition planning........................         725
2808            Required sources of supplies and services...         726
2809            Contractor qualifications...................         727
2810            Specifications, standards, and other 
                    purchase descriptions...................         729
2812            Contract delivery or performance............         730
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
2813            Small purchase and other simplified purchase 
                    procedures..............................         732
2814            Sealed bidding..............................         733
2815            Contracting by negotiation..................         734
2816            Types of contracts..........................         735
2817            Special contracting methods.................         736
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
2819            Small and disadvantaged business concerns...         737
2822            Application of labor laws to Government 
                    acquisitions............................         737
2824            Protection of privacy and freedom of 
                    information.............................         738

[[Page 708]]

2825            Foreign acquisitions........................         738
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
2828            Bonds and insurance.........................         740
2829            Taxes.......................................         740
2830            Cost accounting standards...................         741
2831            Contract cost principles and procedures.....         742
2832            Contract financing..........................         743
2833            Disputes and appeals........................         743
2834            Major system acquisition....................         744
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
2835            Research and development contracting........         746
                    SUBCHAPTER G--CONTRACT MANAGEMENT
2845            Government property.........................         748
                     SUBCHAPTER H--CLAUSES AND FORMS
2852            Solicitation provisions and contract clauses         749
                SUBCHAPTER I--SPECIAL AGENCY REGULATIONS
2870            Acquisition of leasehold interests in real 
                    property................................         752

[[Page 709]]



                          SUBCHAPTER A--GENERAL





PART 2801--DEPARTMENT OF JUSTICE ACQUISITION REGULATIONS SYSTEM--Table of Contents




              Subpart 2801.1--Purpose, Authority, Issuance

Sec.
2801.101  Purpose.

                     Subpart 2801.2--Administration

2801.270  Amendment of regulation.
2801.270-1  Revisions.
2801.270-3  Effective date.
2801.270-4  Numbering.

             Subpart 2801.3--Agency Acquisition Regulations

2801.301  Policy.
2801.303  Codification and public participation.
 2801.304  Agency control and compliance procedures.

Subpart 2801.4--Deviations From the Federal Acquisition Regulations and 
                   the Justice Acquisition Regulations

2801.403  Individual deviations.
2801.404  Class deviations.
2801.470  Requests for class deviations.

     Subpart 2801.6--Career Development, Contracting Authority, and 
                            Responsibilities

2801.601  General.
2801.602-3  Ratification of unauthorized commitments.
2801.602-70  Office of the Procurement Executive.
2801.603  Selection, appointment and termination of appointment.
2801.603-2  Selection.
2801.670  Department of Justice Procurement Career Management Program.

     Subpart 2801.70--Contracting Officer's Technical Representative

2801.7001-701  General.
2801.7001-702  Selection, appointment, limitation of authority.
2801.7001-703  Performance standards.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4450, Jan. 30, 1985, unless otherwise noted.



              Subpart 2801.1--Purpose, Authority, Issuance



Sec. 2801.101  Purpose.

    The JAR is established to provide procurement regulations that 
supplement the Federal Acquisition Regulation (FAR) (48 Code of Federal 
Regulations (CFR), chapter 1). As such, the regulations contained in the 
JAR will include coverage of only those areas where agency 
implementation is required by the FAR, or where Department of Justice 
policies and procedures exist that supplement FAR coverage and directly 
affect the contractual relationship between the Department and potential 
or existing contractors. The JAR will not repeat or supplement FAR 
coverage where considered unnecessary. The JAR is not a complete system 
of regulations and must be used in conjunction with the FAR.



                     Subpart 2801.2--Administration

    Source: 57 FR 24555, June 10, 1992, unless otherwise noted.



Sec. 2801.270  Amendment of regulation.

    This Regulation will be amended from time to time to set forth 
improved procedures which reduce contract preparation time, simplify and 
standardize contract forms, improve the contracting process and reflect 
changes in statutes, Executive Orders, the FAR and other policies. 
Acquisition personnel are encouraged to submit suggestions, based on 
operating experience, for improving and simplifying the procedures set 
forth in this Regulation. Such suggestions should be submitted through 
the Bureau Chief of Procurement to the Office of the Procurement 
Executive.



Sec. 2801.270-1  Revisions.

    This Regulation will be amended by issuance of Justice Acquisition 
Circulars (JACs) containing loose-leaf replacement pages which revise 
parts, subparts, paragraphs or subparagraphs.

[[Page 710]]

A vertical bar (edit bar) at the beginning or end of a line indicates 
that a change has been made within that line.



Sec. 2801.270-3  Effective date.

    (a) Statements in Justice Acquisition Circulars and Policy 
Directives to the effect that the material published therein is 
``effective upon receipt,'' or upon a specified date, or that changes 
set forth in the Circulars or Directives are ``to be used upon 
receipt,'' mean that any new or revised clauses or forms included in the 
Circulars or Directives shall be included in invitations for bids and 
requests for proposals issued thereafter.
    (b) Procurements initiated after receipt of new or revised clauses 
should include such clauses.
    (c) Unless otherwise stated, invitations for bids which have been 
issued and bilateral agreements, upon which negotiations have been 
completed prior to the receipt of new or revised contract clauses, need 
not be amended to include the new or revised clauses, if such amendment 
would unduly delay the procurement action.



Sec. 2801.270-4  Numbering.

    Justice Acquisition Circulars will be consecutively numbered 
beginning with the number 1, after each rewrite and publication of the 
Justice Acquisition Regulations.

[60 FR 40108, Aug. 7, 1995]



             Subpart 2801.3--Agency Acquisition Regulations



Sec. 2801.301  Policy.

    (a) In accordance with FAR 1.301(b) and paragraph (c) of this 
section, the Department may issue acquisition regulations that 
supplement or implement the FAR.
    (b) Subject to the authority in paragraph (c) of this section, the 
Department may also issue internal policies and procedures for the 
efficient administration of its procurement programs and to meet the 
specific needs of the agency.
    (c) Regulations and internal policies and procedures under the JAR 
are issued in accordance with the lawful authority vested in the 
Attorney General. Authority to issue department wide acquisition 
regulations has been delegated by Attorney General Order 1085-85 to the 
Office of the Procurement Executive, subject to the review of the 
Assistant Attorney General of Administration (AAG/A).
    (d) The JAR consists of: (1) Department wide regulations which 
supplement or implement the FAR and which directly affect the 
contractual relationship between the Department's existing or potential 
contractors;
    (2) Published and codified bureau regulations which supplement and 
implement the FAR and directly affect the contractual relationship;
    (3) Published internally but not codified department wide policies 
and procedures which provide administrative guidance in the acquisition 
process in accordance with FAR 1.301(b); and
    (4) Published internally but not codified bureau internal policies 
and procedures which provide administrative guidance in the acquisition 
process in accordance with FAR 1.301(b).

[50 FR 4450, Jan. 30, 1985, as amended at 50 FR 29798, July 22, 1985; 53 
FR 49665, Dec. 9, 1988]



Sec. 2801.303  Codification and public participation.

    (a) Implementing and supplemental regulations issued under the JAR 
are codified under chapter 28 of title 48 of the CFR and conform to the 
numbering system specified in FAR 1.303.
    (b) Department wide regulations (see 2801.301(d)(1)) for which there 
is a FAR counterpart or assigned part, subpart, section, or subsection 
numbers 2801 through 2869. Department wide material for which there is 
no FAR counterpart shall be codified using part, subpart, section, or 
subsection numbers 70 through 79. For example, the Department of Justice 
(DOJ) assigned chapter number in title 48 is 28, part 2870, subpart 
2801.70, section 2801.370, or subsection 2801.370-70.
    (c) Bureauwide regulations (see 2801.301(d)(2)) are assigned parts 
2880 through 2899 under 48 CFR as follows:

2880--2881 Justice Management Division
2882--2883 Drug Enforcement Administration
2884--2885 Federal Bureau of Investigation
2886--2887 Federal Prison Industries
2888--2889 Office of Justice Programs

[[Page 711]]

2890--2891 U.S. Marshals Service
2892--2893 Immigration and Naturalization Service
2894--2895 Bureau of Prisons
2896--2899 [Reserved]

    (d) Public participation in the development of the JAR, including 
subsequent significant amendments or revision, shall be provided by a 
notice in the Federal Register. Normally, at least 60 days will be 
provided for comments. In the event of urgency, regulations may be 
published in final form without an initial comment period. Such 
instances will be fully justified in the Federal Register notice and 
give invitation and consideration to comments received after publication 
within the time period specified in the notice.



Sec. 2801.304  Agency control and compliance procedures.

    (a) The AAG/A shall review and approve all department wide and 
bureauwide acquisition regulations prior to publication in the Federal 
Register to insure compliance with departmental policy and consistency 
with the FAR.
    (b) The Procurement Executive will review all bureau unpublished 
internal acquisition policies and provide comments prior to their 
implementation.

[50 FR 4450, Jan. 30, 1985, as amended at 50 FR 29798, July 22, 1985; 60 
FR 40108, Aug. 7, 1995]



Subpart 2801.4--Deviations From the Federal Acquisition Regulations and 
                   the Justice Acquisition Regulations



Sec. 2801.403  Individual deviations.

    Individual deviations from the FAR or the JAR shall be approved by 
the head of the contracting activity (HCA). A copy of the deviation 
shall be included in the contract file. Copies of all deviations will be 
provided to the Procurement Executive.

[60 FR 40108, Aug. 7, 1995]



Sec. 2801.404  Class deviations.

    Requests for class deviations from the FAR or the JAR shall be 
submitted to the Procurement Executive. The Procurement Executive will 
consult with the chairperson of the Civilian Agency Acquisition Council, 
as appropriate, and send his recommendations to the Assistant Attorney 
General for Administration. The Assistant Attorney General for 
Administration will grant or deny requests for such deviations. For the 
purposes of this regulation, requests for deviations involving basic 
ordering agreements, master type contracts or situations where multiple 
awards are made on one solicitation are considered to involve more than 
one contract and are therefore considered to be class deviation 
requests.

[54 FR 40877, Oct. 4, 1989]



Sec. 2801.470  Requests for class deviations.

    Requests for approval of class deviations to the FAR of the JAR 
shall be forwarded to the Procurement Executive. Such requests will be 
signed by the bureau procurement chief. Requests for class deviations 
shall be submitted as far in advance as the exigencies of the situation 
permit and shall contain sufficient written justification to evaluate 
the request.

[60 FR 40109, Aug. 7, 1995]



     Subpart 2801.6--Career Development, Contracting Authority, and 
                            Responsibilities



Sec. 2801.601  General.

    (a) In accordance with Attorney General Order 1687-93, the authority 
vested in the Attorney General with respect to contractual actions, for 
goods and services, is delegated to the following officials:
    (1) Assistant Attorney General for Administration (for the offices, 
boards, and divisions (OBDs);
    (2) Director, Federal Bureau of Investigation;
    (3) Director, Bureau of Prisons;
    (4) Commissioner, Federal Prison Industries;
    (5) Commissioner, Immigration and Naturalization Service;
    (6) Administrator, Drug Enforcement Administration;
    (7) Assistant Attorney General, Office of Justice Programs;
    (8) Director, U.S. Marshals Service;
    (9) Director, National Institute of Corrections; and

[[Page 712]]

    (10) Inspector General
    (b) In accordance with Attorney General Order 1688-93, the authority 
vested in the Attorney General with respect to acquisition by lease or 
purchase of any interest in real property has been redelegated to the 
Assistant Attorney General for Administration.
    (1) The following authorities have been redelegated to the Director, 
Facilities and Administrative Services Staff, JMD, for the efficient and 
proper administration of the Department's real property operations:
    (i) Acquire by lease or purchase any interest in real property for 
all components of the Department of Justice.
    (ii) Secure delegations of lease acquisition authority from GSA for 
all components of the Department.
    (iii) Approve ratification requests of $5,000 or less with respect 
to interests in real property.
    (iv) Only the authority contained in paragraph (b)(1)(i) of this 
section may be redelegated.
    (2) Authority contained in paragraph (b)(1)(i) is redelegated to the 
heads of Bureaus, as defined in the Order as follows:
    (i) Assistant Attorney General for Administration (for the offices, 
boards, divisions, United States Attorneys, and United States Trustees);
    (ii) Director, Federal Bureau of Investigation;
    (iii) Director, Bureau of Prisons;
    (iv) Commissioner, Federal Prison Industries, Inc.;
    (v) Commissioner, Immigration and Naturalization Service;
    (vi) Administrator, Drug Enforcement Administration;
    (vii) Assistant Attorney General, Office of Justice Programs;
    (viii) Director, United States Marshals Service; and
    (ix) Inspector General, Office of the Inspector General.
    (c) The acquisition authority delegated to the officials in 2801.601 
(a) and (b)(2) may be redelegated to subordinate officials as necessary 
for the efficient and proper administration of the Department's 
acquisition operations. Such redelegated authority shall expressly state 
whether it carries the power of redelegation and the limits, if any, of 
the redelegation of authority.
    (d) The redelegation of contracting authority directly to specific 
persons without regard for intermediate organizational levels only 
establishes authority to represent the Government in its commercial 
business dealings. It is not intended to affect the organizational 
relationship between the contracting officers and higher administrative 
and supervisory levels in the performance of their duties.
    (e) When exercising delegated contracting officer authority, a 
designated employee shall be identified as the contracting officer and 
shall function within the limits prescribed by law, the FAR, the JAR, 
and his/her delegation of contracting authority. Additionally, real 
property contracting officers shall be subject to the GSAR and the JPMR.
    (f) A contracting officer shall maintain evidence of his/her 
delegation of authority and while functioning as a contracting officer, 
shall make such evidence available upon request.

[58 FR 68774, Dec. 29, 1993, as amended at 60 FR 16065, Mar. 29, 1995]



Sec. 2801.602-3  Ratification of unauthorized commitments.

    The HCA may delegate the authority to ratify unauthorized 
commitments to the chief of the contracting office, except for those 
actions effected by his or her office. Dollar thresholds for delegations 
made under this section will be determined by the HCA. Copies of all 
ratifications are to be provided to the Procurement Executive.

[60 FR 40109, Aug. 7, 1995]



Sec. 2801.602-70  Office of the Procurement Executive.

    (a)(1) The contracting officer shall forward the proposed contract 
action to the Office of the Procurement Executive for review prior to 
execution of any contractual action which:
    (i) Exceeds $50,000 and was solicited using other than full and open 
competition procedures, including amendments or modifications to these 
contracts which cause the total contract costs to exceed $50,000;
    (ii) Exceeds $100,000, and was solicited using full and open 
competition procedures, including amendments or modifications to these 
contracts which

[[Page 713]]

cause the total contract costs to exceed $100,000; or
    (iii) Is evaluated on the basis of system life costs and/or is 
evaluated on the basis of option pricing regardless of dollar value;
    (2) For the purposes of this section contractual actions include all 
pre-award, award, and post-award contractual actions above the 
thresholds in paragraphs (a)(1) (i) through (iii) including, but not 
limited to modifications, ratifications, and options, but excluding 
orders from Federal Supply Schedules and orders from Basic Ordering 
Agreements. Review by the Office of the Procurement Executive is 
applicable to all organization elements in the Department, with the 
exception of the FBI as noted in this section. It is the responsibility 
of the FBI's Contract Review Board to ensure that procurement actions 
for goods and services are awarded in conformity with applicable 
statutes, regulations, and procedures. This exemption, however, does not 
exempt the FBI from the review by the Office of the Procurement 
Executive of all real property procurement actions above the thresholds 
cited in paragraphs (a)(1) (i) through (iii) of this section, or from 
other oversight responsibilities of the Office of the Procurement 
Executive, including Procurement Executive review and approval of 
justifications for other than full and open competition on contracts 
over $10 million.
    (b) Prior to submission to the Procurement Executive, the legal 
officer for each Bureau procurement activity is responsible for 
reviewing and approving all such procurement actions for legal 
sufficiency.
    (c) The AAG/A and/or the Procurement Executive may waive any 
requirements for preaward contract review, except those imposed by 
statute. Requests for waivers shall be submitted to the Procurement 
Executive in accordance with paragraph (d) of this section.
    (d) A request for a waiver must be submitted in writing by the head 
of the contracting activity and include a detailed explanation as to why 
a waiver is required, as well as information explaining reasons why a 
contract or class of contracts cannot be reviewed on a preaward basis. 
Oral waivers may be requested and granted under circumstances of 
compelling urgency, but written documentation of the waiver shall be 
made as soon as time permits. All contract documents that are available 
at the time a waiver request is made must accompany the request for 
review. All available documents will be reviewed to assure that the 
award is legally sufficient prior to the granting of a waiver. A 
postaward review of the completed contract file is required. Waivers 
will not be granted near the end of a fiscal year for the purpose of 
obligating year end funds.
    (e) In accordance with Attorney General Orders 1687-93 and 1688-93, 
the head of a Bureau may appeal a decision of the Procurement Executive 
to the Contract Appeals Panel (Panel), in writing, within 15 calendar 
days after receipt of the decision of the Procurement Executive. The 
Panel shall be composed of the Deputy Attorney General who shall serve 
as chairperson, the Associate Attorney General and the Assistant 
Attorney General for Administration. The Panel shall meet on an ad hoc 
basis as necessary and determined by the chairperson. When appealing a 
decision of the Procurement Executive, the head of the Bureau shall 
follow the procedures described in paragraphs (e) (1) through (4) of 
this section.
    (1) The appeal file shall be submitted through the Office of the 
Procurement Executive (OPE) to the Deputy Attorney General as 
Chairperson of the Contract Appeals Panel. Submission of the appeal 
through the OPE is required so that the Procurement Executive may 
provide a written response to the issues raised in the appeal and, due 
to the ad hoc nature of the Contract Appeals Panel, provide a location 
for the collection and maintenance of appeal documents and files. The 
Procurement Executive shall forward the appeal file to the Chairperson 
within five working days of receipt.
    (2) Content of the appeal file. The appeal file must be complete in 
that it fully addresses the issue(s) being appealed. The file shall 
include a copy of the proposed contract or other award action, documents 
relied upon by the contracting officer in taking the action

[[Page 714]]

under dispute, the Procurement Executive's decision and a statement of 
facts setting forth the basis on which the appeal is made. The statement 
of facts shall cite, where applicable, procurement regulations, 
statutes, or decisions by other authorities, such as GAO decisions, that 
support or form the basis of the appeal. A summary shall be provided 
stating the resolution requested by the Bureau. An original and three 
copies of the appeal file shall be submitted.
    (3) The head of the Bureau shall also submit to the OPE, with the 
appeal file, the original contract file as submitted to the OPE for 
review.
    (4) The Contract Appeals Panel, following review and consideration 
of the appeal shall issue its decision in writing to the head of the 
Bureau through the Office of the Procurement Executive and return, with 
the decision, all documents submitted by the Bureau. Unless the Attorney 
General directs that the matter be referred to him/her, the decision of 
the Panel will be the final Department of Justice position as to whether 
a particular procurement action complies with the applicable statute, 
regulation, policy or procedure.

[58 FR 68775, Dec. 29, 1993, as amended at 60 FR 40109, Aug. 7, 1995]
2801.603  Selection, appointment and termination of appointment.



Sec. 2801.603-2  Selection.

    Selection of contracting officers shall be in accordance with 
criteria and procedures established by each Bureau Procurement Chief in 
his or her component.

[60 FR 16066, Mar. 29, 1995]



Sec. 2801.670  Department of Justice Procurement Career Management Program.

    (a) Each Bureau Procurement Chief shall develop a procurement career 
management program for contracting personnel in his or her component.
    (b) The program shall cover all contracting personnel with less than 
seven year experience in the categories described below:
    (1) Occupational series 1102;
    (2) Contracting officers with contracting authority above the 
simplified acquisition threshold;
    (3) Occupational series 1105, other individuals performing 
purchasing duties and individuals with contracting authority at or under 
the simplified acquisition threshold.
    (c)(1) The program shall include:
    (i) An individual assessment by a supervisor of each covered 
employee's state of competence to perform the full range of potential 
duties of his or his job; and
    (ii) An individual development plan to schedule classroom, on-the-
job training, or other training to develop the employee's skill level to 
an appropriate level in each area of competence necessary to perform his 
or her job.
    (2) Individual assessments and development plans should be designed 
to fit the needs of the component, but they should build upon the units 
of competence and instruction prepared by the Federal Acquisition 
Institute wherever feasible. Individual development plans should attempt 
to bring the employee to an appropriate level of skill in all necessary 
competencies by the time the employee has obtained seven years of 
experience in the field of procurement. In general, a proficiency skill 
level of 3, as defined in Attachment 1 to OFPP Policy Letter 92-3, shall 
be attained for any contracting duty that is actually required to be 
performed on the job.
    (3) Employees who perform only purchasing duties, regardless of 
occupational series, shall be required to obtain the requisite level of 
skill only in competencies involving small purchases. If the employee's 
duties are expanded to include contracting duties, then skill in 
procurement competencies must be assessed and developed.
    (4) Individual assessments of covered employee skills shall be 
completed by June 27, 1995, or within 90 days of the employee's entry on 
duty.

[60 FR 16066, Mar. 29, 1995]



     Subpart 2801.70--Contracting Officer's Technical Representative

    Source: 56 FR 37860, Aug. 9, 1991, unless otherwise noted.

[[Page 715]]



Sec. 2801.7001-701  General.

    Contracting officers may appoint individuals selected by program 
offices to act as authorized representatives in the monitoring and 
administration of a contract. Such officials shall be designated as 
Contracting Officers' Technical Representatives (COTR's).



Sec. 2801.7001-702  Selection, appointment, limitation of authority.

    (a) COTR Standards Program. This subpart sets forth policies and 
procedures for establishing standards for COTR's in DOJ. The program 
sets forth minimum standards for individuals to be eligible for an 
appointment as a COTR.
    (b) Applicability. The eligibility requirements of this subpart 
apply to all individuals who are designated by the contracting officer 
as COTR's.
    (c) Eligibility standards. To be determined eligible for an 
appointment as a DOJ COTR, the following standards must be met:
    (1) The candidate must attend and successfully complete a minimum of 
a 16-hour basic COTR course;
    (2) The candidate must attend a minimum of 3 hours training 
specifically in procurement ethics, either through courses offered 
periodically by the Department, the bureaus, or a commercial vendor; and
    (3) The candidate must sign the certification for procurement 
officials required by the recent Procurement Integrity Act.
    (d) Certification and appointment. (1) In accordance with bureau 
procedures, the individual must provide the contracting activity with 
evidence of completion of the COTR course, procurement ethics training, 
and with the certification required by the Procurement Integrity Act. 
Upon determination that the required standards have been met, the chief 
of the contracting office will issue a one-time Certificate of COTR 
Appointment.
    (2) Once the COTR standards have been met and a Certificate of 
Appointment has been issued, an individual may be designated and 
appointed by a contracting officer to serve as a COTR for a particular 
contract. The individual shall be designated in the contract schedule as 
the COTR and shall be notified in writing by the contracting officer of 
the scope and limitations of the COTR's authority as it pertains to the 
particular contract the individual will administer.
    (e) Limitations. Each appointment of a COTR made by the contracting 
officer shall clearly state that the representative is not an authorized 
contracting officer and does not have the authority under any 
circumstances to:
    (1) Award, agree to award, or execute any contract, contract 
modification, notice of intent, or other form of binding agreement;
    (2) Obligate, in any manner, the payment of money by the Government;
    (3) Make a final decision on any contract matter which is subject to 
the clause at FAR 52.233-1, Disputes; or,
    (4) Terminate, suspend, or otherwise interfere with the contractor's 
right to proceed, or direct any changes in the contractor's performance 
that are inconsistent with or materially change the contract 
specifications.
    (f) Termination. Termination of the COTR's appointment shall be made 
in writing by the contracting officer and shall give the effective date 
of the termination. The contracting officer shall promptly modify the 
contract once a COTR termination notice has been issued. A termination 
notice is not required when the COTR's appointment terminates upon 
expiration of the contract.
    (g) Implementation schedule and waivers. No individual may serve as 
a COTR on any contract without the requisite training and signed COTR 
certificate for the file. In the rare event that there is an urgent 
requirement for a specific individual to serve as a COTR and the 
individual has not successfully completed the required training, the 
bureau procurement chief may waive the training requirements and 
authorize the individual to perform the COTR duties, for a period of 
time not to exceed 120 days. The waiver may be granted in accordance 
with bureau procedures.

[56 FR 37860, Aug. 9, 1991, as amended at 60 FR 40109, Aug. 7, 1995]



Sec. 2801.7001-703  Performance standards.

    Supervisors of COTR's are encouraged to include successful contract 
administration in performance standards

[[Page 716]]

for individuals with contract administration responsibility.



PART 2802--DEFINITIONS OF WORDS AND TERMS--Table of Contents




    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).



                       Subpart 2802.1--Definitions



Sec. 2802.102  Definitions.

    Throughout this regulation the following words and terms are used as 
defined in this subpart unless the context in which they appear clearly 
requires a different meaning, or a different definition is prescribed 
for a particular part or portion of a part.
    (a) Contracting acitivity means an office, board, division, or 
bureau within the Department which has been delegated procurement 
authority to manage contracting functions associated with its mission 
or, as is the case with the Office of Justice Programs, which must 
adhere to the procurement policy of the Attorney General. See 2801. 602 
(a), (b)(1) and (b)(2).
    (b) Head of the agency (also called agency head) means the Attorney 
General, Deputy Attorney General, AAG/A, or their authorized 
representative, which means any person(s) or board (other than the 
contracting officer) authorized to act for the head of the agency.
    (c) Head of the contracting activity means those officials 
identified in 2801.601(a) having responsibility for supervising, 
managing, and directing the operations of the contracting activities.
    (d) DOJ means the Department of Justice.
    (e) JAR means the Department of Justice Acquisition Regulations.
    (f) Bureau procurement chief means that supervisory official who is 
directly responsible for supervising, managing and directing all 
contracting offices of the bureau.
    (g) Chief of the contracting office means that supervisory official 
who is directly responsible for supervising, managing and directing the 
contracting office.
    (h) OBD means the offices, boards, and divisions within the Justice 
Department.
    (i) EOUSA means the Executive Office of United States Attorneys.
    (j) Bureaus means the procurement components managed by the Justice 
Department. (See contracting activity in this subpart.)
    (k) JMD means the Justice Management Division.
    (l) USAO means United States Attorneys' Offices.
    (m) DOJ/PE means Departmental Procurement Executive.
    (n) BPE means Bureau Procurement Executive.

[50 FR 4452, Jan. 30, 1985, as amended at 58 FR 68778, Dec. 29, 1993; 60 
FR 40109, Aug. 7, 1995]



PART 2803--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents




                       Subpart 2803.1--Safeguards

Sec.
2803.101-3  Agency regulations.
2803.104  Procurement integrity.
2803.104-5  Disclosure, protection, and marking of proprietary and 
          source selection information.
2803.104-9  Certification requirements.
2803.104-11  Processing violations or possible violations.
2803.104-12  Ethics program training requirements.

      Subpart 2803.2--Contractor Gratuities To Government Personnel

2803.203  Reporting suspected violations of the Gratuities Clause.
2803.203-70  Agency reporting procedures.

                     Subpart 2803.4--Contingent Fees

2803.408  Evaluation and review of the SF 119.

            Subpart 2803.5--Other Improper Business Practices

2803.502  Subcontractor kickbacks.

Subpart 2803.8--Limitation on the Payment of Funds to Influence Federal 
                              Transactions

2803.804  Policy.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4453, Jan. 30, 1985, unless otherwise noted.

[[Page 717]]



                       Subpart 2803.1--Safeguards

    Source: 57 FR 24556, June 10, 1992, unless otherwise noted.



Sec. 2803.101-3  Agency regulation.

    The DOJ regulations governing Standards of Conduct are contained in 
28 CFR part 45. Agency authorized exceptions to FAR 3.101-2 are 
contained in 28 CFR 45.735-14.
2803.104  Procurement integrity.



Sec. 2803.104-5  Disclosure, protection, and marking of proprietary and source selection information.

    (a) The head of the agency, or his or her designee, or the 
contracting officer are permitted by FAR 3.104-5(d) to authorize 
persons, or classes of persons, access to proprietary or source 
selection information when access is necessary to the conduct of the 
procurement. Authorizations to individuals should be made in writing 
only after confirmation by the contracting officer that the individual 
has completed a certification in accordance with FAR 3.104-12(a)(2). 
Authorizations to classes of persons must be made at a level not lower 
than the chief of the contracting office.
    (b) The head of the office receiving the proprietary or source 
selection information, or his or her designee, shall maintain a list of 
persons, or classes of persons, who have authorized access to the 
information. The list shall be forwarded to the contracting office 
responsible for the conduct of the procurement to be included in the 
contract file.



Sec. 2803.104-9  Certification requirements.

    (a) Record-keeping requirements. (1) For those contracts over 
$100,000, the contracting officer's and the contractor's certifications 
shall be filed in the contract file. Also, the list of personnel having 
access to source selection information submitted by the program office 
head will be filed in the contract folder in accordance with FAR 3.104-
5.
    (2) Bureaus are required to maintain a central file of all 
certifications required by FAR 3.104-12.
    (b) Exception to certification requirements. In an exceptional case, 
the Attorney General may determine in writing that the certification 
requirement should be waived. The contracting officer, with approval of 
the Bureau Director, shall submit a request for waiver to the Office of 
the Procurement Executive. The request shall clearly identify the 
procurement, or class of procurements, and provide a detailed 
justification for the requested waiver. The Procurement Executive will 
evaluate the request, provide recommendations, and forward the request 
to the Attorney General for his determination. The resulting decision of 
the Attorney General shall state the reasons for approval or disapproval 
of the waiver. The Attorney General shall promptly notify Congress, in 
writing, of each waiver approved. The authority to approve a waiver may 
not be delegated.



Sec. 2803.104-11  Processing violations or possible violations.

    (a) If any certification received by, or signed by, the contracting 
officer contains any information of a violation, or possible violation 
of the procurement integrity section of the OFPP Act, the contracting 
officer shall determine whether the reported violation, or possible 
violation has any impact on the pending award, or selection of the 
source thereof. If the contracting officer concludes that there is no 
impact, the contracting officer shall report the violation, accompanied 
by the appropriate documentation supporting that conclusion, to the head 
of the procurement office. With the concurrence of the head of the 
procurement office, the contracting officer may immediately proceed with 
award, and the head of the procurement office shall notify the head of 
the bureau, or his or her designee, of a violation, or possible 
violation.
    (b) The head of the bureau, or his or her designee, receiving a 
certification describing an actual, or possible violation of the 
procurement integrity provisions of the OFPP Act, shall review all 
information available and he or she may make a determination that the 
prohibitions of section 27 of the Act have not been violated. This 
signed determination will be sent to the contracting officer for 
inclusion in the contract file.

[[Page 718]]

    (c) If the head of the bureau, or his or her designee, determines 
that the prohibitions of section 27 of the Act have been violated, he/
she shall submit the file to the Procurement Executive with an 
explanation of his/her intentions to remedy the situation. If the 
Procurement Executive concurs in the intended actions, a written 
concurrence will be sent to the head of the bureau or designee. The 
contracting officer will then be advised, or directed by the head of the 
bureau, or designee, as to the action to be taken. The types of actions 
that would normally be taken when a violation has occurred that affected 
the outcome of a procurement are listed in FAR 3.104-11(d).
    (d) If the head of the bureau, or his or her designee, receiving the 
certification of a violation, or possible violation, determines that 
award is justified by urgent and compelling circumstances, or is 
otherwise in the interest of the Government, then he or she may 
authorize the contracting officer to award the contract after 
notification to the Procurement Executive.



Sec. 2803.104-12  Ethics program training requirements.

    It is the responsibility of the bureaus to provide training for 
``procurement officials'' concerning the requirements of FAR 3.104. The 
bureau procurement training efforts should be coordinated with the 
Department's Ethics Official, who is responsible for developing agency 
ethics training plans, to include briefings on ethics and standards of 
conduct for all employees who are contracting officers and procurement 
officials. The Ethics Official should be contacted directly to schedule 
training.



      Subpart 2803.2--Contractor Gratuities To Government Personnel

2803.203  Reporting suspected violations of the Gratuities Clause.



Sec. 2803.203-70  Agency reporting procedures.

    (a) DOJ personnel shall report suspected violations of the 
Gratuities clause (FAR 52.203-3) to the contracting officer or chief of 
the contracting activity in writing. The report shall clearly state the 
circumstances surrounding the incident, including the nature of the 
gratuity, the behavior or action the gratuity was to influence, and the 
persons involved. The Contracting officer, after review, shall forward 
the report along with his or her recommendations regarding the treatment 
of the violation in accordance with FAR 3.204(c) to the head of the 
contracting activity or his designee.
    (b) The head of contracting activity or his designee shall determine 
whether adverse action against the contractor in accordance with FAR 
3.204(c) should be taken. In reaching a decision, the head of the 
contracting activity or designee shall consult with contracting 
activities legal advisor or other official in the Department. Prior to 
taking any action against the contractor the head of the contracting 
activity or designee shall allow the contractor the opportunity to 
present opposing arguments in accordance with FAR 3.204.
    (c) If the report of the suspected violation alleges that a gratuity 
was not only offered but also accepted by a Department employee, a copy 
of the report shall be forwarded by the head of the contracting activity 
or designee to the DOJ Office of Professional Responsibility (see 28 CFR 
0.39).



                     Subpart 2803.4--Contingent Fees



Sec. 2803.408  Evaluation and review of the SF 119.

    (a) The contracting officer shall review and evaluate the SF 119 and 
all related information in accordance with FAR 3.408.
    (b) The contracting officer's documentation of the evaluation, 
conclusions, and any proposed actions shall be reviewed and approved at 
a level above the contracting officer with the concurrence of the 
agency's procurement counsel.



            Subpart 2803.5--Other Improper Business Practices



Sec. 2803.502  Subcontractor kickbacks.

    Suspected violations of the Anti-Kickback Act (41 U.S.C. 51-54) 
shall be reported by the contracting officer to the contracting 
activity's procurement

[[Page 719]]

counsel who will then advise the contracting officer of appropriate 
action.



Subpart 2803.8--Limitation on the Payment of Funds to Influence Federal 
                              Transactions



Sec. 2803.804  Policy.

    (a) Copies of all contractor disclosures furnished pursuant to the 
clause at FAR 52.203-12, Limitation on Payments to Influence Certain 
Federal Transactions, and a summary report, containing a compilation of 
the information contained in the disclosures received, shall be 
forwarded, by the Bureau Procurement Chief, to the Procurement 
Executive. Negative reports are required to be submitted if no 
disclosures have been received from the contractors.
    (b) The disclosures, or negative reports, shall be submitted in 
accordance with the following schedule:
    (1) For the six month period from October 1 to March 31, reports are 
due to the Procurement Executive by April 30.
    (2) For the six month period from April 1 to September 30, reports 
are due to the Procurement Executive by October 31.
    (c) The Procurement Executive shall consolidate the disclosures and 
reports and submit the semi-annual report and disclosures to the 
Assistant Attorney General for Administration, for subsequent submission 
to Congress, on behalf of the Attorney General, by May 31 and November 
30 of each year.

[57 FR 24556, June 10, 1992]



PART 2804--ADMINISTRATIVE MATTERS--Table of Contents




   Subpart 2804.4--Safeguarding Classified Information Within Industry

Sec.
2804.402  General.
2804.403  Responsibilities of contracting officers.

                   Subpart 2804.6--Contract Reporting

2804.601  Federal Procurement Data System.

  Subpart 2804.9--Information Reporting to the Internal Revenue Service

2804.901  Definitions.
2804.903  Procedures.
2804.903-70  Certification.
2804.970  Special reporting exceptions.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4453, Jan. 30, 1985, unless otherwise noted.



   Subpart 2804.4--Safeguarding Classified Information Within Industry



Sec. 2804.402  General.

    Classified acquisitions or contracts which require access to 
classified material, as defined in FAR 4.401, for their performance 
shall be subject to the policies, procedures, and instructions contained 
in departmental regulations and shall be processed in a manner 
consistent with those regulations.



Sec. 2804.403  Responsibilities of contracting officers.

    For proposed solicitations and contracts which may require access to 
classified material or where guard services are assigned to safeguard 
departmental activities in possession of classified information, the 
contracting officer will consult with the COTR and the Director, 
Security Staff to determine the appropriate security measures to 
safeguard such material and information.



                   Subpart 2804.6--Contract Reporting



Sec. 2804.601  Federal Procurement Data System.

    (a) Federal Procurement Data System (FPDS) reports shall be 
submitted to the Office of the Procurement Executive within thirty days 
after the close of quarters one through three, and within forty-five 
days of the close of the fourth quarter in a fiscal year. Specific 
preparation procedures are contained in the FPDS Reporting Manual and 
the Product and Service Code Manual.
    (b) Bureau Procurement Chiefs shall provide to the Procurement 
Executive, the name, office, mailing address, and telephone number of 
the individual who will provide day-to-day operational contact within 
the bureau for

[[Page 720]]

the implementation of the FPDS. Changes and updates shall be forwarded 
to the Office of the Procurement Executive (OPE) within 30 days after 
they occur. It is the responsibility of the bureau contacts to ensure 
that all actions are reported and submitted to the OPE in a timely 
manner and that all statistics and reports are accurate, current, and 
complete. Bureau procurement chiefs shall obtain and review a hard copy 
computer printout of the ACF entries on a periodic basis, for validation 
purposes.

[50 FR 4453, Jan. 30, 1985, as amended at 50 FR 29799, July 22, 1985; 57 
FR 24557, June 10, 1992]



  Subpart 2804.9--Information Reporting to the Internal Revenue Service

    Source: 55 FR 14094, Apr. 16, 1990, unless otherwise noted.



Sec. 2804.901  Definitions.

    Classified contract, as used in this subpart, means a contract such 
that the fact of the existence of such contract or the subject matter of 
such contract has been designated and clearly marked or clearly 
represented, pursuant to the provisions of Federal law or an Executive 
order, as requiring a specific degree of protection against unauthorized 
disclosure for reasons of national security.
    Confidential contract, as used in this subpart, means a contract, 
the reporting of which to the IRS as required under 26 U.S.C. 6050M, 
would interfere with the effective conduct of a confidential law 
enforcement activity, such as contracts for sites for undercover 
operations or contracts with informants, or foreign counterintelligence 
activity.



Sec. 2804.903  Procedures.

    Bureau procurement offices shall submit their quarterly FPDS reports 
together with the certification required by section 2804.903-70 to the 
Procurement Executive in accordance with section 2804.601. The 
Procurement Executive will certify the consolidated FPDS data for the 
Department, transmit the data to the Federal Procurement Data Center 
(FPDC) and authorize the FPDC to make returns to the IRS on behalf of 
the agency.



Sec. 2804.903-70  Certification.

    (a) 26 U.S.C. 6050M, as implemented in 26 CFR requires the head of 
every Federal executive agency to file an information return with the 
IRS for certain contract actions in excess of $25,000 and to certify 
under penalties of perjury that the information provided is, to the best 
of his or her belief, true, correct and complete.
    (b) The head of the contracting activity or his or her delegate 
shall certify to the Procurement Executive, in the format specified 
below, under penalty of perjury, that such official has examined the 
information submitted by that bureau as its FPDS data, and that the data 
has been prepared pursuant to the requirements of Section 6050M and 
that, to the best of such official's knowledge and belief it is compiled 
from bureau records business for the purpose of making a true, correct 
and complete return as required by 26 U.S.C. 6050M.
    (c) The following certification will be signed and dated by the head 
of the contracting activity, or his or her delegate, and submitted with 
each quarterly FPDS report from that bureau.

                              Certification

    I, ________(Name), ________(Title) under the penalties of perjury 
have examined the information to be submitted by ________(Bureau) to the 
Procurement Executive, for making information returns on behalf of the 
Department of Justice to the Internal Revenue Service, and certify that 
this information has been prepared pursuant to the requirements of 
section 6050M and that it is to the best of my knowledge and belief, a 
compilation of bureau records maintained in the normal course of 
business for the purpose of providing true, correct and complete returns 
as required by 26 U.S.C. section 6050M.
_______________________________________________________________________
Signature
_______________________________________________________________________
Date

[55 FR 14094, Apr. 16, 1990, as amended at 56 FR 26341, June 7, 1991]



Sec. 2804.970  Special reporting exceptions.

    (a) The Technical and Miscellaneous Revenue Act of 1988 (Pub. L. 
100-647) amended 26 U.S.C. 6050M to allow exceptions to the reporting 
requirements

[[Page 721]]

for certain classified or confidential contracts.
    (b) The head of the agency has determined that the filing of 
information returns, as required by 26 U.S.C. 6050M, on confidential 
contracts, which involve law enforcement or foreign counterintelligence 
activities, would interfere with the effective conduct of those 
confidential law enforcement or foreign counterintelligence activities, 
and that the special reporting exceptions added to section 6050M by The 
Technical and Miscellaneous Revenue Act of 1988 apply to these types of 
contracts.

[[Page 722]]



           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING





PART 2805--PUBLICIZING CONTRACT ACTIONS--Table of Contents




Sec.

          Subpart 2805.2--Synopses of Proposed Contract Actions

2805.201-70  Departmental notification.

               Subpart 2805.3--Synopses of Contract Awards

2805.302-70  Departmental notification.

                   Subpart 2805.5--Paid Advertisements

2805.502  Authority.
2805.503-70  Procedures.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).



          Subpart 2805.2--Synopses of Proposed Contract Actions



Sec. 2805.201-70  Departmental notification.

    (a) A copy of each synopsis of a proposed contract action sent to 
the Department of Commerce, shall be furnished to the Director, Office 
of Small and Disadvantaged Business Utilization (OSDBU), Justice 
Management Division.
    (b) Contracting officers shall document, in the contract file, that 
a copy of the notice has been forwarded to the OSDBU. A ``cc'' to the 
OSDBU on the file copy of the CBD notice shall be considered adequate 
documentation.

[57 FR 24557, June 10, 1992]



               Subpart 2805.3--Synopses of Contract Awards



Sec. 2805.302-70  Departmental notification.

    (a) The contracting officer shall forward a copy of the synopsis of 
contract award, as prepared under FAR 5.302, to the Director, Office of 
Small and Disadvantaged Business Utilization (OSDBU), Justice Management 
Division.
    (b) Contracting officers shall document in the contract file that a 
copy of the notice has been forwarded to the OSDBU. A ``cc'' to the 
OSDBU on the file copy of the CBD notice shall be considered adequate 
documentation.

[57 FR 24557, June 10, 1992]



                   Subpart 2805.5--Paid Advertisements

    This subpart provides policies and procedures for the procurement of 
paid advertising as covered by 5 U.S.C. 302, 44 U.S.C. 3701, 3702, and 
3703, and title 7, chapter 5-25.2, General Accounting Office Policy and 
Procedures Manual for Guidance of Federal Agencies.

[50 FR 4455, Jan. 30, 1985]



Sec. 2805.502  Authority.

    (a) Authorization for paid advertising is required for newspapers 
only. Pursuant to 28 CFR 0.140, the authority to approve publication of 
paid advertisements in newspapers has been delegated to the officials 
listed in 2801.601(a). This authority may be redelegated as appropriate.
    (b) The authority to approve the publication of advertisements, 
notices, or proposals pursuant to litigation has been delegated by 
memorandum by the AAG/A to the heads of the OBDs with the power of 
redelegation.
    (c) Authority to purchase paid advertising must be granted in 
writing by an official delegated such authority. No advertisement, 
notice, or proposal will be published prior to receipt of advance 
written authority for such publication. No voucher for any such 
advertisement or publication will be paid unless there is presented, 
with the voucher, a copy of such written authority. Authority shall not 
be granted retroactively.

[50 FR 4455, Jan.30, 1985, as amended at 60 FR 40109, Aug. 7, 1995]



Sec. 2805.503-70  Procedures.

    (a) Agency officials exercising the authority delegated by 
2805.502(a) and (b) shall do so in accordance with the procedures set 
forth in FAR 5.503 and those set forth below.

[[Page 723]]

    (b) Requests for procurement of advertising shall be accompanied by 
written authority to advertise or publish which sets forth justification 
and includes the names of newspapers or journals concerned, frequency 
and dates of proposed advertisements, estimated cost, and other 
pertinent information.
    (c) Paid advertisements shall be limited to publication of essential 
details of invitations for bids and requests for proposals including 
those for the sale of personal property and for the recruitment of 
employees.
    (d) Optional Form 347, Order for Supplies or Services, or an 
approved agency form, shall be used for procurement and payment of paid 
advertising. Procedures for payment of vouchers are contained in title 
7, chapter 5-25.2, General Accounting Office Policy and Procedures 
Manual for Guidance of Federal Agencies.

[50 FR 4455, Jan. 30, 1985, as amended at 56 FR 26341, June 7, 1991]



PART 2806--COMPETITION REQUIREMENTS--Table of Contents




          Subpart 2806.3--Other Than Full and Open Competition

Sec.
2806.302  Circumstances permitting other than full and open competition.
2806.302-7  Public interest.
2806.302-70  Determination and findings.
2806.303-2  Content.
2806.304  Approval of the justification.

                  Subpart 2806.5--Competition Advocates

2806.501  Requirement.
2806.502  Duties and responsibilities.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(e); 28 CFR 0.75(j) and 
0.76(j).



          Subpart 2806.3--Other Than Full and Open Competition

2806.302  Circumstances permitting other than full and open competition.
2806.302-7  Public interest.



Sec. 2806.302-70  Determination and findings.

    (a) Procedure. The determination and findings (D&F) required by FAR 
6.302-7(c)(1) shall be prepared in the format provided in paragraph (b) 
below. The original and two copies of the D&F and documentation 
supporting the use of this exception to the requirement for full and 
open competition shall be submitted to the Office of the Procurement 
Executive for concurrence and coordination up to the Attorney General 
for signature.
    (b) Format. The following format shall be used for the D&F:

Department of Justice, Washington, DC 20530.

Determination and Findings.

          Authority To Use Other Than Full and Open Competition

    Upon the basis of the following findings and determination, which I 
hereby make pursuant to the authority of 41 U.S.C. 253(c)(7) as 
implemented by FAR 6.302-7, it is in the public interest to provide for 
other than full and open competition in the contract action described 
below.

                                Findings

    1. The (1) proposes to enter into a contract for the acquisition of 
(2).
    2. Use of the authority cited above is necessary and in the public 
interest for the following reasons: (3).

                              Determination

    For the reasons described above, it is necessary and in the public 
interest to use procedures other than competitive procedures in the 
proposed acquisition.

Date____________________________________________________________________

                                 Notes:

(1) Name of contracting activity.

[[Page 724]]

(2) Brief description of supplies or services.
(3) Explain the need for use of the authority.

[56 FR 26341, June 7, 1991]



Sec. 2806.303-2  Content.

    In addition to the information required by FAR 6.303-2, 
justifications over $10,000,000 shall contain the following documents:
    (a) A written Acquisition Plan as required by FAR 7.102 and DOJ 
Order 2300.5A. If a plan was not prepared, explain why planning was not 
feasible or accomplished.
    (b) A copy of the CBD announcement or proposed announcement in 
accordance with the requirements of FAR 5.203.
    (c) As part of the description of the supplies or services required 
in FAR 6.303-2, the justification should include the statement of need 
as submitted by the requiring activity and any subsequent changes or 
revisions to the specifications.
    (d) Any additional documentation that may be unique to the proposed 
procurement and is relevant to the justification.

[57 FR 24557, June 10, 1992]



Sec. 2806.304  Approval of the justification.

    (a) All justifications for contract actions over $100,000 shall be 
submitted to the chief of the contracting activity for concurrence 
before being forwarded to the procuring activity competition advocate 
for approval. Justifications over $10,000,000 shall be further submitted 
for the concurrence of the procuring activity competition advocate and 
the head of the contracting activity, before being forwarded to the 
Procurement Executive for approval.
    (b) The original and one copy of the justification shall be 
forwarded to the Office of the Procurement Executive. After approval by 
the Procurement Executive, the signed original will be returned to the 
contracting activity and one copy will be retained in the Office of the 
Procurement Executive.

[57 FR 24557, June 10, 1992, as amended at 58 FR 68778, Dec. 29, 1993]



                  Subpart 2806.5--Competition Advocates



Sec. 2806.501  Requirement.

    As required by section 20 of the Office of Federal Procurement 
Policy Act, each executive agency must appoint an agency competition 
advocate and a competition advocate in each procuring activity of the 
executive agency. Accordingly:
    (a) The competition advocate for DOJ will be located in the Office 
of the Procurement Executive, Justice Management Division.
    (b) The agency head will appoint in each bureau an official to be 
the procuring activity competition advocate. The procuring agency 
competition advocates shall be vested with the overall responsibility 
for competition activities within their respective procuring activity. 
No individual in the contracting office at or below the level of chief 
of the contracting office may serve as the procuring activity 
competition advocate. An individual at any level in the supervisory 
chain above the chief of the contracting office may serve as procuring 
activity competition advocate.

[50 FR 29801, July 22, 1985, as amended at 52 FR 42295, Nov. 4, 1987; 53 
FR 49666, Dec. 9, 1988; 56 FR 26341, June 7, 1991; 58 FR 68779, Dec. 29, 
1993]



Sec. 2806.502  Duties and responsibilities.

    (a) The Procurement Executive shall:
    (1) Provide guidance to competition advocates in formulating plans, 
goals, and procedures to achieve the goals of enhancing competition and 
challenging barriers to full and open competition; and,
    (2) Review and approve justifications for other than full and open 
competition for contract requirements over $10 million in accordance 
with JAR 2806.303-2.
    (b) The DOJ Competition Advocate is responsible for the duties and 
responsibilities described in FAR 6.502.
    (c) The Procuring Activity Competition Advocate shall:
    (1) Actively enforce the Department's Competition Advocacy Program 
within the procuring activity. Ensure that

[[Page 725]]

systems are established for the effective internal control of procuring 
activity functions and activities which implement the Department's 
Competition Advocacy Program.
    (2) Review specifications for unnecessary detail and statements of 
need for undue restrictions which have not been successfully tested in 
the marketplace. Should the procuring activity competition advocate 
challenge that the specifications are not conducive to full and open 
competition or that the statement of need is unduly restrictive, 
corrective action shall be taken as the chief of the contracting office 
determines necessary.
    (3) Review and approve justifications for other than full and open 
competition for contract requirements over $100,000 but not exceeding $1 
million. Justifications submitted to the procuring activity competition 
advocate shall be prepared pursuant to FAR 6.303 and shall contain the 
concurrence of the chief of the contracting office before being 
forwarded to the competition advocate.
    (4) Concur with justifications for other than full and open 
competition for contract requirements over $1 million but not exceeding 
$10 million which require the review and approval by the head of the 
contracting activity or designee. Such justifications shall be prepared 
pursuant to FAR 6.303 and the JAR 2806.303-2. In addition to obtaining 
the concurrence of the procuring activity competition advocate, the 
concurrence of the chief of the contracting office shall also be 
obtained before being forwarded for higher level review and approval.
    (5) Identify and challenge barriers to full and open competition.
    (6) Implement specific goals and objectives to enhance competition.
    (7) Prepare and submit to the DOJ Competition Advocate, by November 
30th of each year, an annual report of competition advocacy activities 
conducted during the prior fiscal year.

[58 FR 68779, Dec. 29, 1993]



PART 2807--ACQUISITION PLANNING--Table of Contents




                    Subpart 2807.1--Acquisition Plans

Sec.
2807.102  Policy.
2807.103  Agency-head responsibilities.

                Subpart 2807.70--End-of-Year Procurements

2807.7001  Lead times and cut-off dates.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4455, Jan. 30, 1985, unless otherwise noted.



                    Subpart 2807.1--Acquisition Plans



Sec. 2807.102  Policy.

    (a) In accordance with the Office of Federal Procurement Policy, 
Policy Letter 81-1, Executive Order 12352, and in compliance with FAR 
7.102, procurement activities of DOJ shall coordinate planning of 
resource utilization in conducting procurement programs. Such planning 
shall accomplish the following objectives:
    (1) Provide for early planning of procurement actions to allow ample 
time for conducting competitive solicitations and to avoid unnecessary 
urgent requirements that generally restrict competition.
    (2) Provide for a more even flow of procurement requests to 
procurement operations throughout a fiscal year, better using personnel 
resources and avoiding wasteful and hasty year-end spending.
    (3) Identify identical or like requirements that can be combined 
under one solicitation, thereby saving manpower resources and financial 
resources through quantity discounts.
    (b) Acquisition planning shall be accomplished in accordance with 
the Department's Advance Procurement Planning Program Order. Approval 
for alterations of programs or DOJ forms must be obtained from the 
Office of the Procurement Executive.

[50 FR 4455, Jan. 30, 1985, as amended at 50 FR 29801, July 22, 1985; 58 
FR 68779, Dec. 29, 1993]

[[Page 726]]



Sec. 2807.103  Agency-head responsibilities.

    (a) The Department's Advance Procurement Planning Program Order 
provides that heads of components (Offices, Boards, Divisions and 
Bureaus) shall appoint an acquisition planner for all programs and 
activities requiring contract actions estimated at $500,000 or more in 
any given contract year. Acquisition planners shall be responsible for 
developing and maintaining written advance procurement plans. The 
acquisition planner shall work with the component procurement 
representative in developing advance procurement plans.
    (b) The heads of the contracting activities shall ensure that, 
during the acquisition planning phase, requirements personnel consider 
the use of the metric system of measurement consistent with 15 U.S.C. 
2205 et seq. Use of the metric system must be coordinated with the 
contracting office and be consistent with security, operational, 
economic, technical, training, and safety requirements.

[57 FR 24558, June 10, 1992, as amended at 58 FR 68779, Dec. 29, 1993]



                Subpart 2807.70--End-of-Year Procurements



Sec. 2807.7001  Lead times and cut-off dates.

    (a) DOJ procurement activities shall establish lead times and cut-
off dates for acceptance and processing of procurement requests that 
require use of expiring current year funds. Procedures implemented by 
the procurement activities shall include:
    (1) Lead times required to process procurement requests according to 
the method of contracting (sealed bid or competitive proposals, etc.) 
and type of action (new award, modification, or option). Procurement 
activities may further refine the lead times in accordance with their 
experience and types of requirements;
    (2) Firm cut-off dates beyond which a procurement request will not 
be accepted if the requirement is to use expiring current year funds. 
Cut-off dates will be issued consistent with the lead times established 
in paragraph (a)(1) of this section; and
    (3) A statement that failure to submit a requisition prior to the 
cut-off date applicable to processing a fully competitive procurement 
does not, in itself, establish justification for contracting by other 
than full and open competition.
    (b) Fourth quarter procurements.
    (1) Instructions provided to Federal agencies by the Office of 
Management and Budget state that fourth quarter obligations should not 
exceed the average obligations for the first three quarters, except 
where seasonal requirements, essential program objectives, or lead times 
justify a higher level. Excessive and wasteful year-end spending can be 
prevented by firmly enforcing the procurement cut-off dates, the 
Department's Advance Procurement Planning Program Order, reviewing 
questioned procurements with procurement supervisors and appropriate 
program personnel and giving particular attention to fourth quarter 
procurement requests in areas that are particularly vulnerable to 
wasteful spending. In addition, chiefs of the contracting offices shall 
ensure that their staffs are aware of OFPP Policy Letter 81-1 and the 
OFPP checklist for use in detecting and preventing wasteful year-end 
spending.

[52 FR 4320, Feb. 11, 1987, as amended at 58 FR 68779, Dec. 29, 1993]



PART 2808--REQUIRED SOURCES OF SUPPLIES AND SERVICES--Table of Contents




      Subpart 2808.4  Ordering From Federal Supply Schedules (FSS)

Sec.
2808.400-70  Renewals of purchase orders issued under Federal Supply 
          Schedules.
2808.401-70  Use of General Services Administration (GSA) Self-Service 
          Stores.

      Subpart 2808.8--Acquisition of Printing and Related Supplies

2808.802-70  Procedure.

               Subpart 2808.11--Leasing of Motor Vehicles

2808.1102-70  Procedure.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4456, Jan. 30, 1985, unless otherwise noted.

[[Page 727]]



      Subpart 2808.4--Ordering From Federal Supply Schedules (FSS)



Sec. 2808.400-70  Renewals of purchase orders issued under Federal Supply Schedues.

    (a) To expedite renewals of purchase orders issued against FSS 
contracts OBD's and the EOUSA are encouraged to submit annually only one 
requisition which would cover all renewals for a given vendor's GSA 
schedule contract.
    (b) In preparing renewals, consolidate items of identical make and 
model number, indicate aggreate quantity, and segregate as to lease 
renewals and maintenance renewals for DOJ equipment. Systems are not to 
be aggregated, but should be listed as a separate line item on the 
requisition and shall not be split.



Sec. 2808.401-70  Use of General Services Administration (GSA) Self-Service Stores.

    Policy and procedures for the use of the GSA self-service stores are 
contained in departmental orders.



      Subpart 2808.8--Acquisition of Printing and Related Supplies



Sec. 2808.802-70  Procedure.

    Contracting officers shall obtain written approval from the 
Director, General Services Staff. JMD (the central printing authority 
designated to serve as liaison between the Department and the Joint 
Committee on Printing) before acquiring any of the items defined in FAR 
8.801.

[50 FR 4456, Jan. 30, 1985, as amended at 50 FR 29801, July 22, 1985]



               Subpart 2808.11--Leasing of Motor Vehicles



Sec. 2808.1102-70  Procedure.

    Prior to preparing solicitations for the leasing of motor vehicles, 
contracting officers shall ensure that the requisition for such lease 
has been reviewed and approved by the General Services Staff, Justice 
Management Division.

[50 FR 4456, Jan 30, 1985, as amended at 52 FR 34390, Sept. 11, 1987]



PART 2809--CONTRACTOR QUALIFICATIONS--Table of Contents




        Subpart 2809.4--Debarment, Suspension, and Ineligibility

Sec.
2809.401  Applicability.
2809.402  Policy.
2809.405  Effects of listing.
2809.405-1  Continuation of current contracts.
2809.470  Responsibilities.

          Subpart 2809.5--Organizational Conflicts of Interest

2809.503  Waiver.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4456, Jan. 30, 1985, unless otherwise noted.



        Subpart 2809.4--Debarment, Suspension, and Ineligibility



Sec. 2809.401  Applicability.

    This subpart is applicable to all contracting activities in the 
offices, boards, divisions, and bureaus (OBDBs) of DOJ and for contracts 
involving personal property and non-personal services including 
construction and leases of real property. This subpart does not apply to 
grants or other forms of Federal assistance.



Sec. 2809.402  Policy.

    Debarment and suspension actions are a means to ensure that agencies 
contract only with responsible business concerns and individuals. 
Contracting activities shall:
    (a) Consider debarment or suspension of a contractor when cause is 
shown as listed under FAR 9.406-2 (debarment) and FAR 9.407-2 
(suspension).
    (b) Consult the GSA Consolidated List of Debarred, Suspended, or 
Ineligible Contractors prior to soliciting offers from, awarding 
contracts to, renewing or extending contracts, or consenting to 
subcontracts with contractors on the GSA Consolidated List. Exceptions 
will be granted only for compelling reasons and in accordance with FAR 
9.405(a).

[[Page 728]]

2809.405  Effects of listing.



Sec. 2809.405-1  Continuation of current contracts.

    In accordance with FAR 9.405-1, contracting activities may continue 
contracts or subcontracts in existence at the time a contractor is 
suspended or debarred unless it is determined that termination of the 
contract is in the best interest of the Government. In making this 
determination contracting activities shall consider the seriousness of 
the act or omission leading to the debarment or suspension, the effect 
of debarment or suspension on the contractor's ability to continue 
operations, and the Department's ability to safeguard its interests and 
receive satisfactory performance and for compelling reasons and in 
accordance with FAR 9.405(a).



Sec. 2809.470  Responsibilities.

    (a) Contracting activities in the OBDBs shall:
    (1) Be familiar with the policies and procedures concerning 
debarment, suspension, and ineligibility as set forth in FAR subpart 9.4 
and this subpart.
    (2) Provide an effective system within their activity to ensure that 
contracting staff consult the GSA Consolidated List of Debarred, 
Suspended, or Ineligible Contractors prior to soliciting offers from, 
awarding or extending contracts to, or consenting to subcontracts with 
contractors on the list.
    (3) Consider recommending debarment or suspension of a contractor 
when cause exists under FAR 9.406-2 (debarment) and FAR 9.407-2 
(suspension). Existence of cause for debarment or suspension does not 
necessarily require that the contractor be debarred or suspended. 
Contracting activities must consider the seriousness of the contractor's 
acts or omissions and any mitigating circumstances. Contracting staffs 
should consult with their appropriate legal counsel prior to making a 
decision to initiate debarment or suspension proceedings. If a 
determination is made that available facts do not justify beginning 
debarment or suspension proceedings, the file should be documented 
accordingly. This determination should be subject to reconsiderations if 
new information or additional fact-finding so justifies.
    (4) Immediately prepare a notice in accordance with FAR 9.406-3(a) 
(debarment) or FAR 9.407-3(c) (suspension) if a decision is made to 
initiate debarment and/or suspension of a contractor. The draft notice 
along with the administrative file containing all relevant facts and 
analysis shall be forwarded to the Procurement Executive, as the 
debarring and suspending official, following review by the activity's 
legal counsel and procurement head.
    (b) The DOJ Procurement Executive, as the debarring and suspending 
official, shall:
    (1) Review the notice and administrative file for sufficiency and 
provide for review by other DOJ officials as considered appropriate.
    (2) Give the contractor prompt notice of the proposed debarment or 
suspension if he or she so decides, in accordance with FAR 9.406-3(c) 
(debarment) or FAR 9.407-3(c) (suspension).
    (3) Direct additional fact-finding as necessary when material facts 
are in dispute. Fact-finding over disputed issues of fact in debarment 
and suspension proceedings may be conducted by the General Services 
Administration Board of Contract Appeals (GSBCA) in accordance with the 
signed agreement between the Department and GSBCA if requested by either 
the government or the contractor.
    (4) Notify the contractor of the final decision to debar or suspend, 
including a decision not to debar or suspend, in accordance with FAR 
9.406-3(c) (debarment) and FAR 9.407-3(c) (suspension).
    (c) Other responsibilities of the DOJ Procurement Executive.
    (1) Provide notification to GSA within five working days after 
debarring or suspending a contractor or modifying or rescinding such an 
action of the information set forth in FAR 9.404(c).
    (2) Maintain agencywide records of debarred or suspended contractors 
in accordance with FAR 9.404(c)(4).
    (3) In accordance with FAR 9.405(a), approve determinations 
submitted by contracting activities establishing compelling reasons to 
contract or consent to a subcontractor with a contractor on a current 
debarred or suspended

[[Page 729]]

list. (DOJ officials do not have the authority to make exceptions for 
contractors declared ineligible.)
    (4) Provide interim notification to the OBDBs of contractors 
debarred or suspended pending inclusion into the GSA Consolidated List 
and coordinate among the OBDBs annual subscriptions to the GSA list.

[50 FR 4456, Jan. 30, 1985, as amended at 52 FR 34390, Sept. 11, 1987]



          Subpart 2809.5--Organizational Conflicts of Interest



Sec. 2809.503  Waiver.

    (a) Waiver authority granted under FAR 9.503 is delegated by this 
subpart to the DOJ officials listed in 2801.601(a). This authority may 
not be redelegated.
    (b) Requests for waivers shall be prepared by the contracting 
officer and shall include the following:
    (1) A complete description of the organizational conflict;
    (2) A discussion of why the conflict cannot be avoided, neutralized, 
or mitigated in accordance with the procedures in FAR 9.507;
    (3) The benefits to the Government and to the contractor in 
approving the waiver; and,
    (4) The potential or actual negative or detrimental effects of 
approving the waiver.



PART 2810--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE DESCRIPTIONS--Table of Contents




Sec.
2810.001  Definitions.
2810.002  Metric Policy.
2810.004-70  ``Brand name of equal'' purchase description.
2810.007  Deviations.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4457, Jan. 30, 1985, unless otherwise noted.



Sec. 2810.001  Definitions.

    Dual systems means the use of both inch-pound and metric systems. 
For example, an item is designed, produced, and described in inch-pound 
values with soft metric values also shown for information or comparison 
purposes.
    Hybrid systems means the use of both inch-pound and hard metric 
values in specifications, standards, supplies, and services; e.g., an 
engine with internal parts in metric dimensions and external fittings or 
attachments in inch-pound dimensions.
    Metric system means the International System of Units established by 
the General Conference of Weights and Measures in 1960.
    Soft metric means the result of mathematical conversion of inch-
pound measurements to metric equivalents in specifications, standards, 
supplies, and services. The physical dimensions are not changed.

[57 FR 24558, June 10, 1992]



Sec. 2810.002  Metric Policy.

    Consistent with the policy expressed in FAR 10.002(c), solicitations 
must include specifications and purchase descriptions stated in metric 
units of measurement whenever metric is the accepted industry system. 
Whenever possible, commercially developed metric specifications and 
internationally, or domestically developed voluntary standards, using 
metric measurements, must be adopted. While an industry is in transition 
to metric specifications, solicitations must include specifications and 
purchase descriptions stated in soft metric, hybrid, or dual systems 
except when impractical or inefficient.

[57 FR 24558, June 10, 1992]



Sec. 2810.004-70  ``Brand name or equal'' purchase description.

    (a) A ``brand name or equal'' purchase description shall be used 
only under the conditions listed below and in FAR 10.004(b)(3) and in 
accordance with the policies and procedures in this subpart.
    (1) When a suitable formal Government specification, standard, or 
industry standard approved for agency use is not available and a 
purchase description meeting the general requirements of FAR 10.004 
cannot be prepared because:
    (i) Construction or composition of the product to be procured is too 
technically involved;
    (ii) Public exigency precludes timely development; or,

[[Page 730]]

    (iii) It is impractical or uneconomical to prepare a purchase 
description.
    (2) When purchasing items for authorized resale.
    (b) The term ``brand name product'' means a commercial product 
described by a brand name and make or model number or other appropriate 
nomenclature by which that product is offered for sale to the public by 
the particular manufacturer, producer, or distributor. When using a 
``brand name or equal'' purchase description all known acceptable brand 
name products should be listed in the solicitation. When a ``brand name 
or equal'' purchase description is used to describe a primary item or 
major component, prospective offerors must be given the opportunity to 
offer products other than those specifically referenced by brand name, 
if those other products will meet the needs of the Government in 
essentially the same manner as those referenced as brand name in the 
solicitation. If modifications to standard products are anticipated to 
meet the purchase description requirements, a minimum of 30 calendar 
days shall be allowed between the issuance of the solicitation and the 
opening of bids or receipt of proposals, provided that periods of less 
than 30 calendar days may be set only in cases where one of the 
statutory exceptions to publicizing the procurement in the Commerce 
Business Daily applies and when the contracting officer has reason to 
believe that bidders can bid effectively on the basis of a shorter 
period.
    (c) ``Brand name or equal'' purchase descriptions should set forth 
those salient physical, functional, or other characteristics of the 
products referenced as brand name which are essential to the Government, 
and should contain the following information to the extent available, 
and include such other information as is necessary to describe the item 
required:
    (1) Complete common generic identification of the required item;
    (2) Applicable make, model, or catalog number for each brand name 
product referenced and identification of the commercial catalog in which 
it appears; and,
    (3) Name of manufacturer, producer, or distributor of each brand 
name product referenced (and address if possible).
    (d) In ``brand name or equal'' solicitations the product referenced 
as ``brand name'' must be regularly offered for sale to the public.
    (e) When a ``brand name or equal'' purchase description is used the 
contracting officer shall note in the contract file the reasons for 
using this purchase description.
    (f)(1) When a ``brand name or equal'' purchase description is used 
in a solicitation, except for component parts or accessories of an end 
item for which the contracting officer determined that the application 
of the following clause would be impractical, the following clause shall 
be inserted after each item so described in the solicitation for 
completion by the offeror.

    Bidding On:

Manufacturer's Name:____________________________________________________
Brand:__________________________________________________________________
No.:____________________________________________________________________

    (2) In addition, the clause set forth in section 2852.210-70 
entitled ``Brand Name or Equal'' shall be inserted into all 
solicitations for which this type of purchase description is used.



Sec. 2810.007  Deviations.

    Heads of contracting activities are authorized to approve deviations 
and exceptions to specifications or standards listed in the Index of 
Federal Specifications and Standards when the exceptions listed in FAR 
10.006 do not apply, in accordance with the reporting and other 
requirements of FAR 10.007. The Office of the Procurement Executive 
shall be notified, in writing, within 30 days of the approval of each 
deviation or exception approved.

[50 FR 4457, Jan. 30, 1985, as amended at 50 FR 29801, July 22, 1985]



PART 2812--CONTRACT DELIVERY OR PERFORMANCE--Table of Contents




     Subpart 2812.1--Extension of Delivery or Performance Schedules

Sec.
2812.170  Policy.

[[Page 731]]

                   Subpart 2812.2--Liquidated Damages

2812.270  Procedure.

               Subpart 2812.3--Priorities and Allocations

2812.303  Procedures.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4458, Jan. 30, 1985, unless otherwise noted.



     Subpart 2812.1--Extension of Delivery or Performance Schedules



Sec. 2812.170  Policy.

    It is the policy of DOJ to ensure that contract delivery schedules 
are reasonable, realistic and meet the requirements of the acquisition. 
However, in some instances when the contractor fails to deliver in a 
timely manner, it may be necessary for the Government to allow the 
contractor to continue performance. Under these circumstances, if the 
delay is caused by conditions which would not be considered ``excusable 
delays'' (as defined in FAR clause 52.249-14, Excusable Delays) the 
contracting officer should secure consideration for the Government's 
forbearance in extending the delivery schedule.

[60 FR 40109, Aug. 7, 1995]



                   Subpart 2812.2--Liquidated Damages



Sec. 2812.270  Procedure.

    In the event it is desirable to make a remission of liquidated 
damages, assessed against a contractor for delayed performance, the 
contracting officer shall prepare a memorandum for the signature of the 
AAG/A and subsequent transmittal to the Comptroller General, which sets 
forth the rationale for the proposed remission of liquidated damages 
together with all pertinent background data upon which the 
recommendation that such damages be remitted to the contractor. This 
memorandum must be coordinated with the JMD Office of General Counsel 
prior to forwarding to the AAG/A for signature.



               Subpart 2812.3--Priorities and Allocations



Sec. 2812.303  Procedures

    (a) The Procurement Executive, in accordance with paragraph 1.e., of 
the Procurement Executive Charter, issued with Attorney General Order 
1085-85, is the agency official delegated authority to exercise priority 
authority on behalf of the Department. Any request for a priority rating 
on a contract or order must be submitted to the Office of the 
Procurement Executive in accordance with the procedures in this subpart.
    (1) The requesting activity shall submit to the Procurement 
Executive a description of the supplies or services requiring a priority 
rating and a complete justification for the necessity of a rated order 
including the method and type of contract and the anticipated award 
date. The justification must also state the level of priority rating 
requested and comply with the requirements of the Defense Priorities and 
Allocations System (OPAS) (15 CFR part 350).
    (2) Upon receipt the Office of the Procurement Executive shall 
review the request for completeness and establish appropriate liaison 
with the Department of Commerce (DOC), the administering agency. 
Depending on the nature of the requirement, the OPE may schedule a 
meeting with DOC officials to present the proposal. In such cases, a 
representative from the requiring activity may be requested to attend.
    (3) DOJ activities requesting rated orders that concern classified 
material shall call the Procurement Executive before submitting their 
request to ensure appropriate transmission and handling between the 
requesting activity and the Office of the Procurement Executive.

[52 FR 4320, Feb. 11, 1987]

[[Page 732]]



          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES





PART 2813--SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES--Table of Contents




                      Subpart 2813.4--Imprest Fund

Sec.
2813.403-80  Agency responsibilities.
2813.404-70  Conditions for use.

                     Subpart 2813.5--Purchase Orders

2813.505  Purchase order and related forms.
2813.505-2  Agency order forms in lieu of Optional Forms 347 and 348.
2813.505-370  Standard Form 44.

              Subpart 2813.70--Certified Invoice Procedure

2813.7001  Policy.
2813.7002  Procedure.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4458, Jan. 30, 1985, unless otherwise noted.



                      Subpart 2813.4--Imprest Fund



Sec. 2813.403-80  Agency responsibilities.

    Regulations governing the operation and procedures of the imprest 
fund for the OBDs are contained in OBD internal regulations and 
Accounting Operations Instructions. Individuals delegated the authority 
to withdraw from the imprest fund are further subject to the limitations 
contained in their delegation memorandum.



Sec. 2813.404-70  Conditions for use.

    The Department of the Treasury has approved for OBDBs limitations on 
transactions of varying amounts depending on needs. These limitations 
are maintained in OBDB internal regulations and procedures.



                     Subpart 2813.5--Purchase Orders

2813.505  Purchase order and related forms.



Sec. 2813.505-2  Agency order forms in lieu of Optional Forms 347 and 348.

    The JMD Form 422 is authorized for use in the OBDs as a substitute 
for Optional Form 347. Bureaus may prescribe an equivalent form to meet 
their needs subject to the approval of the head of the procuring 
activity and in accordance with FAR 13.505-2 and FAR 13.507, Clauses.



Sec. 2813.505-370  Standard Form 44.

    (a) Purchasing offices using the SF 44 will be responsible for 
instructing authorized users as to the limitations and procedures for 
use of the SF 44 as outlined in FAR 13.505-3.
    (b) Since the SF 44 is an accountable form, a record shall be 
maintained of: serial numbers of the forms; to whom issued; and, the 
date issued. SF 44's shall be kept securely under lock and key to 
prevent unauthorized use. A reservation of funds shall be established to 
cover total anticipated expenditures prior to use of the SF 44.



              Subpart 2813.70--Certified Invoice Procedure

    Source: 57 FR 24558, June 10, 1992, unless otherwise noted.



Sec. 2813.7001  Policy.

    Under limited circumstances as described in this subpart, supplies 
or services directly related to mission accomplishment, may be acquired 
on the open market from local suppliers at the site of the work or use 
point, using vendor's invoices under the certified invoice procedure, 
instead of issuing purchase orders. Certified invoice procedures may not 
be used to place orders under established contracts, unless, specific 
authorization for their use is included in the contract document.

[[Page 733]]



Sec. 2813.7002  Procedure.

    (a) Purchases utilizing the certified invoice procedure shall be 
effected only in accordance with FAR part 13 and JAR 2813, subject to 
the following:
    (1) The amount of any one purchase does not exceed 10 percent of the 
small purchase limitation;
    (2) A purchase order is not required by either the supplier or the 
Government;
    (3) Appropriate invoices can be obtained from the supplier; and
    (4) The items to be purchased shall be domestic source end products, 
except as provided in FAR subpart 25.1.
    (b) Use of the certified invoice procedures does not eliminate the 
requirements in FAR part 13 or JAR part 2813 to:
    (1) Reserve small purchases for small business in accordance with 
the Small Business Investment Act of 1958, as amended (15 U.S.C. 661, et 
seq.), or document the file as to why a small business was not selected;
    (2) Certify that the quality and quantity of item/services furnished 
are in accordance with the verbal agreement made with the vendor; and
    (3) Obtain competitive quotes as is reasonable for the item being 
purchased.
    (c) The Chief of the Contracting Office, as defined in (JAR) 48 CFR 
2802.102(g), shall delegate the authority to the use the certified 
invoice procedure. Each delegation must specify any limitation placed on 
the individual's use of these procedures, such as limits on the amount 
of each purchase, or limits on the commodities, or services which can be 
procured.
    (d) Each individual using this purchasing technique shall require 
the supplier to immediately submit properly prepared invoices which 
itemize property or services furnished. Upon receiving the invoice, the 
individual making the purchase shall annotate the invoice with the date 
of receipt, verify the arithmetic accuracy of the invoiced amount and 
verify on the invoice that the supplies and/or services have been 
received and accepted. If the invoice is correct, the individual making 
the purchase shall sign the invoice indicating acceptance and 
immediately forward it to his/her Executive Office. The invoice shall be 
approved by his/her appropriate administrative office and be forwarded 
to the Finance Office for payment within 5 workdays after receipt of the 
invoice, or acceptance of supplies or services, whichever is later. 
Before forwarding the invoice to Finance, the administrative office 
shall place the following statement on the invoice, along with the 
accounting and appropriation data:

    I certify that these goods and/or services were received on 
____________ (date) and accepted on ____________ (date). Oral purchase 
was authorized and no confirming order has been issued.

_______________________________________________________________________
Signature

_______________________________________________________________________
Date

_______________________________________________________________________
Printed or Typed Name and Title

[57 FR 24558, June 10, 1992, as amended at 60 FR 40110, Aug. 7, 1995]



PART 2814--SEALED BIDDING--Table of Contents




    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).



          Subpart 2814.4--Opening of Bids and Award of Contract



Sec. 2814.406-370  Other mistakes disclosed before award.

    (a) The authority to make determinations under paragraphs (a), (b), 
(c), and (d) of FAR Subsection 14.406-3 is delegated to those 
individuals listed in subpart 2801.6, Contracting Authority and 
Responsibility, section 2801.601. Such authority may be redelegated in 
accordance with FAR 14.406-3(e).
    (b) Copies of all records, documentation, and determinations made 
with respect to mistakes in bids shall be kept in the contract file to 
which they pertain.
    (c) The following procedures shall be followed when submitting 
doubtful cases of mistakes in bids to the Comptroller General for an 
advance decision.
    (1) Requests for advance decisions submitted to the Comptroller 
General in cases of mistakes in bids shall be made by those individuals 
in paragraph (a) of this section with the authority to make 
determinations under this subpart.

[[Page 734]]

    (2) Requests for advance decisions shall be in writing, dated, 
signed by the requestor, addressed to the Comptroller General of the 
United States, General Accounting Office, Washington, DC 20548, and 
contain the following:
    (i) The name and address of the party requesting the decision;
    (ii) A statement of the question to be decided, a presentation of 
all relevant facts, and a statement of the requesting party's position 
with respect to the question; and,
    (iii) Copies of all pertinent records and supporting documentation.

[50 FR 4459, Jan. 30, 1985]



PART 2815--CONTRACTING BY NEGOTIATION--Table of Contents




  Subpart 2815.4--Solicitation and Receipt of Proposals and Quotations

Sec.
2815.405  Solicitations for informational and planning purposes.
2815.408  Issuing solicitations.
2815.411  Receipt of proposals and quotations.

                  Subpart 2815.5--Unsolicited Proposals

2815.506  Agency procedures.

                    Supbart 2815.8--Price Negotiation

2815.803-70  General.
2815.804-370  Waiver of submission of certified cost or pricing data.
2815.805-570  Field pricing support.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4459, Jan. 30, 1985, unless otherwise noted.



  Subpart 2815.4--Solicitation and Receipt of Proposals and Quotations



Sec. 2815.405  Solicitations for informational and planning purposes.

    When a solicitation for informational or planning purposes is to be 
issued, the contracting officer shall make a written determination that 
such solicitation is justified. This determination shall be approved at 
one level above the contracting officer.

[60 FR 40110, Aug. 7, 1995]



Sec. 2815.408  Issuing solicitations.

    Solicitations involving classified information shall be handled in 
accordance with the policies and procedures contained in departmental 
and other OBDB prescribed policies and regulations that supplement 
Departmental regulations. Such supplemental regulations must have the 
prior approval of the AAG/A before implementation in accordance with the 
Departmental regulations.

(Approved by the Office of Management and Budget under control number 
1105-0028)



Sec. 2815.411  Receipt of proposals and quotations.

    Classified proposals and quotations shall be handled in accordance 
with agency regulations and any supplemental directives or orders 
implemented by the OBDBs.



                  Subpart 2815.5--Unsolicited Proposals



Sec. 2815.506  Agency procedures.

    (a) Each contracting activity of the Department as defined in 
2802.1(a) shall designate a point of contact for the receipt and 
handling of unsolicited proposals. Generally, the official designated 
shall be the chief of the contracting office as defined in 2802.1(f) or 
immediate subordinate.
    (b) The following points of contact have been designated:
    (1) For the OBDs--The Assistant Director, Procurement Service, PCS.
    (c) The designated point of contact for each contracting activity 
shall provide for and coordinate receipt, review, evaluation, and final 
disposition of unsolicited proposals in accordance with FAR 15.506 
through 15.509.
    (d) The contracting officer shall advise the members of the 
evaluation committee of the Standards of Conduct contained in 28 CFR 
part 45. Each member of the evaluation committee shall certify in 
writing that he/she has no apparent or actual conflict of interest. 
Committee members who become aware of a conflict of interest during the 
course of the proceedings shall report such conflicts, whether real or 
apparent, to the contracting officer immediately following such 
awareness.

[[Page 735]]

The contracting officer shall take immediate action to dismiss the 
committee member and appoint a replacement. If the contracting officer 
determines that dismissal is not necessary, such determination shall be 
made in writing and approved by the head of the contracting activity.



                    Subpart 2815.8--Price Negotiation



Sec. 2815.803-70  General.

    In a contractor insists on a price or demands a profit or fee that 
the contracting officer considers unreasonable and the contracting 
officer has taken all authorized actions to negotiate a reasonable price 
or profit or fee without success, the contracting officer shall then 
refer the contract action to the Office of the Procurement Executive for 
the OBD's, or to the appropriate official for their agency listed in 
2801.601(a) or their designee in accordance with bureau procedures.

[50 FR 4459, Jan. 30, 1985, as amended at 50 FR 29801, July 22, 1985]



Sec. 2815.804-370  Waiver of submission of certified cost or pricing data.

    In exceptional cases, the requirement for submission of certified 
cost or pricing data may be waived. The authorization to waive the 
requirement shall be in writing and shall set forth the relevant 
circumstances, including the reasons for granting the waiver and the 
contracting officer's recommendation. The waiver shall be approved by 
the appropriate bureau official listed in 2801.601(a) or his/her 
designee in accordance with bureau procedures.

[60 FR 40110, Aug. 7, 1995]



Sec. 2815.805-570  Field pricing support.

    Field pricing support is available to the Department components 
through the Office of Inspector General. All requests for audit 
assistance shall be directed to the Assistant Inspector General for 
Audits, Suite 701, 4 Skyline Place, 5113 Leesburg Pike, Falls Church, VA 
22041.

[56 FR 26341, June 7, 1991]



PART 2816--TYPES OF CONTRACTS--Table of Contents




Sec.

  Subpart 2816.6--Time-and-Materials, Labor-Hour, and Letter Contracts

2816.601  Time-and-materials contracts.
2816.602  Labor-hour contracts.
2816.603  Letter contracts.
2816.603-270  Application.
2816.603-370  Limitations.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).



  Subpart 2816.6--Time-and-Materials, Labor-Hour, and Letter Contracts



Sec. 2816.601  Time-and-materials contracts.

    A time-and-materials type contract may be used only after the 
contracting officer receives written approval from the chief of the 
contracting office. When the contracting officer is also the chief of 
the contracting office, the approval to use a time-and-materials type 
contract will be made at a level above the contracting officer.

[60 FR 40110, Aug. 7, 1995]



Sec. 2816.602  Labor-hour contracts.

    A labor-hour type contract may be used only after the contracting 
officer receives written approval from the chief of the contracting 
office. When the contracting officer is also the chief of the 
contracting office, the approval to use a labor-hour type contract will 
be made at a level above the contracting officer.

[60 FR 40110, Aug. 7, 1995]



Sec. 2816.603  Letter contracts.



Sec. 2816.603-270  Application.

    In cases where the contracting officer and the contractor cannot 
negotiate the definitization of a letter contract within 180 days after 
the date of the letter contract, or before completion of 40 percent of 
the work to be performed, the contracting officer may, with the written 
approval of the head of the contracting activity, revise and extend the 
definitization schedule. However, in no event shall the extension of the 
definitization schedule extend beyond

[[Page 736]]

the lesser of: An additional 180 day period or the completion of 80 
percent of the work to be performed. If at the end of the extension the 
contracting officer and the contractor cannot negotiate a definitive 
contract because of failure to reach an agreement on price or fee, the 
procedures set forth in FAR 52.216-25, FAR 16.603-2, 15.8, and Part 31 
shall be followed as applicable.

[50 FR 4461, Jan. 30, 1985]



Sec. 2816.603-370  Limitations.

    Copies of all approved determinations authorizing the use of letter 
contracts shall be provided to the Procurement Executive.

[60 FR 40110, Aug. 7, 1995]



PART 2817--SPECIAL CONTRACTING METHODS--Table of Contents




    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).



     Subpart 2817.5--Interagency Acquisitions Under the Economy Act



Sec. 2817.502-70  General.

    For the purposes of FAR 17.502, the head of the requesting agency 
responsible for making the required written determination shall be the 
individuals listed in 2801.601(a) or their designee.

[50 FR 4462, Jan. 30, 1985]

[[Page 737]]



                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS





PART 2819--SMALL AND DISADVANTAGED BUSINESS CONCERNS--Table of Contents




                        Subpart 2819.2--Policies

Sec.
2819.201  General policy.

              Subpart 2819.5--Set-Asides for Small Business

2819.506  Withdrawing or modifying set-asides.

      Subpart 2819.70--Forecasts of Expected Contract Opportunities

2819.701  General.
2819.702  Procedures.

    Authority: 28 U.S.C. 509 and 510; 15 U.S.C. 644(k); 28 CFR 
0.18(a)(4).



                        Subpart 2819.2--Policies



Sec. 2819.201  General policy.

    (a) The Office of Small and Disadvantaged Business Utilization is 
organizationally attached to the Office of the Deputy Attorney General 
in accordance with 28 CFR 0.18(a).
    (b) The Director, Office of Small and Disadvantaged Business 
Utilization is responsible for the administration of the DOJ small and 
disadvantaged business programs in accordance with the duties described 
in 28 CFR 0.18(a).

[50 FR 4462, Jan. 30, 1985]



              Subpart 2819.5--Set-Asides for Small Business



Sec. 2819.506  Withdrawing or modifying set-asides.

    Before a contracting officer may withdrawn or modify a small 
business set-aside, the contracting officer shall seek the concurrence 
of the Director, Office of Small and Disadvantaged Business Utilization 
(OSDBU). If the contracting officer and the Director, OSDBU, are unable 
to agree on the proposed withdrawal or modification, the Director, OSDBU 
shall forward the matter to the Deputy Attorney General for resolution.

[54 FR 40878, Oct. 4, 1989]



      Subpart 2819.70--Forecasts of Expected Contract Opportunities



Sec. 2819.701  General.

    Section 501 of Public Law 100-656 the Business Opportunity 
Development Reform Act of 1988 requires executive agencies having 
contract actions in excess of $50 million in Fiscal Year 1988 or later 
to prepare an annual forecast of expected contract opportunities, or 
classes of contract opportunities that small business concerns, 
including those owned and controlled by socially and economically 
disadvantaged individuals, are capable of performing.

[56 FR 26341, June 7, 1991]



Sec. 2819.702  Procedures.

    The content and format of bureau annual forecasts of contract 
opportunities, as well as the updates to their contracting forecasts 
shall be as specified by the Director, OSDBU. Updates should be prepared 
and submitted at the same time the bureaus prepare their semiannual 
reviews of their advance procurement plans, in April and October.

[56 FR 26341, June 7, 1991]



PART 2822--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS--Table of Contents




    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).



                  Subpart 2822.1--Basic Labor Policies



Sec. 2822.103-4  Overtime approvals.

    The inclusion of a dollar amount greater than zero in paragraph (a) 
of the FAR clause 52.222-2, Payment for overtime premiums, must be 
approved at a level above the contracting officer. Such approval shall 
be signified by the signature of the approving official on

[[Page 738]]

the contracting officer's written determination made in accordance with 
FAR 22.103-4.

[50 FR 4462, Jan. 30, 1985]



PART 2824--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION--Table of Contents




    Authority: 28 U.S.C. 510; 5 U.S.C. 301, 552.



Sec. 2824.202  Policy.

    Procedures for processing FOIA/PA requests for JMD records are set 
forth in departmental regulations and 28 CFR part 16.

[50 FR 4462, Jan. 30, 1985]



PART 2825--FOREIGN ACQUISITIONS--Table of Contents




               Subpart 2825.1--Buy American Act--Supplies

Sec.
2825.102-70  Policy.
2825.105-70  Evaluating offers.
2825.108-70  Excepted articles, materials, and supplies.

        Subpart 2825.2--Buy American Act--Construction Materials

2825.202-70  Policy.
2825.203-70  Evaluating offers.

               Subpart 2825.3--Balance of Payments Program

2825.302-70  Policy.

      Subpart 2825.9--Omission of the Examination of Records Clause

2825.903-70  Conditions for omission.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c), 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4462, Jan. 30, 1985, unless otherwise noted.



               Subpart 2825.1--Buy American Act--Supplies



Sec. 2825.102-70  Policy.

    (a) The agency officials authorized to make determinations under FAR 
25.102(a)(3) that domestic preference would be inconsistent with the 
public interest are those individuals listed in 2801.601(a). 
Determinations made under this authority shall cite the rationale 
supporting the decision not to apply the domestic preference criteria 
and shall be reviewed and concurred in by the contracting activity's 
procurement counsel prior to approval by the appropriate agency 
official.
    (b) The agency officials authorized to make determinations under FAR 
25.102(a)(4) are the officials referenced in paragraph (a) of this 
section or their designees. Determinations made under this subpart shall 
cite the rationale supporting the determination and shall be reviewed 
and concurred in by the contracting activity's procurement counsel prior 
to approval by the appropriate agency official.



Sec. 2825.105-70  Evaluating offers.

    The agency officials authorized to make a determination that the 
offered price of a domestic end product is unreasonable when the lowest 
priced acceptable domestic offer exceeds the lowest priced acceptable 
foreign offer inclusive of duty when the factors set forth in FAR 25.105 
have been applied, are those officials listed in 2801.601(a).



Sec. 2825.108-70  Excepted articles, materials, and supplies.

    The agency officials cited in 2825.102-70(b) and 2825.202-70(b) who 
are responsible for making the determinations authorized under those 
sections shall be responsible for providing the notification of excepted 
articles, materials, and supplies required by FAR 25.108(b) and (c).



        Subpart 2825.2--Buy American Act--Construction Materials



Sec. 2825.202-70  Policy.

    (a) The agency officials authorized to make determinations under FAR 
25.202(a)(2) that the use of a particular construction material would be 
impracticable are those individuals listed in 2801.601(a). 
Determinations made under this authority shall cite the rationale 
supporting the determination and shall be reviewed and concurred in by 
the contracting activity's procurement counsel prior to approval by the 
appropriate agency official.
    (b) The agency officials authorized to make determinations under FAR

[[Page 739]]

25.202(a)(3) are the officials referenced in paragraph (a) of this 
section or their designees. Determinations made under this subpart shall 
cite the rationale supporting the determination and shall be reviewed 
and concurred in by the agency's procurement counsel prior to approval 
by the appropriate agency official.



Sec. 2825.203-70  Evaluating offers.

    The agency officials authorized to make a determination that using a 
particular domestic construction material would unreasonably increase 
the cost of the acquisition or would be impracticable are those 
officials listed in 2801.601(a).



               Subpart 2825.3--Balance of Payments Program



Sec. 2825.302-70  Policy.

    The agency officials authorized to make determinations under FAR 
25.302(b)(3), as well as authorize the use of a differential greater 
than 50 percent for the evaluation of domestic and foreign offers under 
the Balance of Payments Program, are those officials listed in 
2801.601(a) or their designees. All determinations made under this part 
shall be in writing and shall set forth the facts and circumstances 
supporting the determination. Determinations shall be reviewed and 
concurred in by the contracting activity's procurement counsel. 
Authorizations to use a differential greater than 50 percent for the 
evaluation of domestic and foreign offers under the Balance of Payments 
Program (ref. FAR 25.302(c) and 25.303(b)) shall also require a written 
determination.



      Subpart 2825.9--Omission of the Examination of Records Clause



Sec. 2825.903-70  Conditions for omission.

    The agency officials authorized to make determinations under FAR 
25.903(a)(1) are those individuals listed in 2801.601(a). All 
determinations made under this authority shall conform to FAR 25.904 and 
be reviewed and concurred in by the contracting activity's procurement 
counsel prior to being approved by the authorized agency official.

[[Page 740]]



             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS





PART 2828--BONDS AND INSURANCE--Table of Contents




Sec.
2828.000  Scope of part.

                          Subpart 2828.1--Bonds

2828.106-270  Substitution of surety bonds.

                        Subpart 2828.2--Sureties

2828.203  Options in lieu of sureties.

                        Subpart 2828.3--Insurance

2828.307  Group insurance plans.

     Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4463, Jan. 30, 1985, unless otherwise noted.



Sec. 2828.000  Scope of part.

    This part prescribes requirements for obtaining financial protection 
against damages under advertised and negotiated contracts. It covers bid 
guarantees, bonds, sureties, and insurance. The terms ``bid'' and 
``bidders'' as used in this part include ``proposal'' and ``offerors.''



                          Subpart 2828.1--Bonds



Sec. 2828.106-270  Substitution of surety bonds.

    (a) A new surety bond covering all or part of the obligations on a 
bond previously approved may be substituted for the original bond if 
approved by the head of the contracting activity.
    (b) When the contracting officer determines in writing that it is in 
the Government's best interest to substitute sureties he will set forth 
his rationale in the determination and submit it to the head of the 
contracting activity for approval.
    (c) When so approved and authorized by the head of the contracting 
activity, the contracting officer shall notify the principal and surety 
of the original bond, that the original bond will not be considered as 
security for any default occurring after the date of acceptance of the 
new bond.



                        Subpart 2828.2--Sureties



Sec. 2828.203  Options in lieu of sureties.

    When contractors submit any of the types of security described in 
FAR 28.203 in lieu of furnishing sureties, the contracting officer shall 
enter into an agreement with the contractor covering a bank account, and 
suitable covenants protecting the Government's interest, in which the 
securities will be deposited to protect against their loss during the 
period of the bond obligation.



                        Subpart 2828.3--Insurance



Sec. 2828.307  Group insurance plans.

    Under cost-reimbursement contracts, before buying insurance under a 
group insurance plan, the contractor shall submit the plan to the 
contracting officer for review. During review, the contracting officer 
should utilize all sources of information available such as audit, 
industry practices, etc., to determine that acceptance of the group 
insurance plan, as submitted, is in the Government's best interest, 
prior to submitting the determination and the plan to the head of the 
contracting activity for approval.



PART 2829--TAXES--Table of Contents




                         Subpart 2829.1--General

Sec.
2829.101-70  Resolving tax problems.

                  Subpart 2829.3--State and Local Taxes

2829.303-70  Application of State and local taxes to government 
          contractors and subcontractors.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).



                         Subpart 2829.1--General



Sec. 2829.101-70  Resolving tax problems.

    Agency designated legal counsel is responsible for resolving tax 
issues which affect the agency.

[50 FR 4463, Jan. 30, 1985]

[[Page 741]]



                  Subpart 2829.3--State and Local Taxes



Sec. 2829.303-70  Application of State and local taxes to government contractors and subcontractors.

    (a) It is DOJ policy that DOJ contracts shall not contain clauses 
expressly designating prime contractors as agents of the Government for 
the purpose of avoiding State and local taxes.
    (b) Although circumstances may exist under which a contractor is an 
agent of the Government, even in the absence of a contract clause 
expressly designating a contractor as such, these circumstances should 
be extremely rare. Before any DOJ procuring activity may contend that 
any of its contractors are agents of the Government for the purpose of 
claiming immunity from State and local sales and use taxes, the matter 
will be referred to the AAG/A for review, and approval to ensure that 
DOJ policy is complied with and that the procuring activity's contention 
is fully in accordance with the pertinent legal principles and 
precedents. Each case forwarded will be reviewed by the head of the 
contracting activity before referral to the AAG/A. The referral will 
include all pertinent data on which the procuring activity's contention 
is based, together with a thorough analysis of all relevant legal 
precedents.
    (c) Whenever clauses, procedures, and business practices are cited 
by DOJ procurring activities to support the contention that a contractor 
is an agent of the Government for the purpose of immunity from a State 
or local sales or use tax, contracting activities should whenever 
possible, devise alternative clauses, procedures, and practices for 
future use which will accomplish their intended purpose without 
providing the basis for contention that the contractor is an agent of 
the Government for the purpose of immunity from State and local sales or 
use taxes. Any referral to the AAG/A for approval under this subpart 
shall include comments on the extent to which alternative clauses, 
procedures, or practices may be utilized to accomplish the intended 
purpose without providing the basis for the contention that the 
contractor is an agent of the Government for the purpose of immunity 
from State and local sales or use taxes.

[50 FR 4463, Jan. 30, 1985]



PART 2830--COST ACCOUNTING STANDARDS--Table of Contents




Sec.
2830.000  Scope of part.

                 Subpart 2830.2--Disclosure Requirements

2830.201-270  Impracticality of submission.

     Subpart 2830.3--Cost Accounting Standards Contract Requirements

2830.304-70  Waiver.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).



Sec. 2830.000  Scope of part.

    This part describes policies and procedures for applying the Cost 
Accounting Standards Board (CASB) standards and regulations which the 
Administrator of the General Services Administration, as a matter of 
policy, has directed to be applied to certain nondefense contracts. This 
part does not apply to formally advertised contracts or to any contract 
with a small business concern (see FAR 30.301(b) for other exemptions).

[50 FR 4464, Jan. 30, 1985]



                 Subpart 2830.2--Disclosure Requirements



Sec. 2830.201-270  Impracticality of submission.

    When the contracting officer has determined that it is impractical 
to secure a Disclosure Statement, as required by FAR 30.202, he/she will 
document the reasons and rationale for such impracticality and forward 
the determination, and an explanatory cover letter which sets forth the 
pertinent circumstances and details the solicitation contracting 
officer's attempts to secure the Disclosure Statement, to the 
Procurement Executive for review of the documentation prior to 
forwarding it to the AAG/A for approval.

[60 FR 40110, Aug. 7, 1995]

[[Page 742]]



     Subpart 2830.3--Cost Accounting Standards Contract Requirements



Sec. 2830.304-70  Waiver.

    All requests for a waiver of the Cost Accounting Standards 
requirements shall be forwarded through the DOJ Procurement Executive to 
the AAG/A after the contracting officer has made the determination 
required by FAR 30.304(a).

[50 FR 4464, Jan. 30, 1985]



PART 2831--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents




Sec.
2831.000  Scope of part.

                      Subpart 2831.1--Applicability

2831.101-70  Objectives.
2831.109-70  Advance agreements.

         Subpart 2831.2--Contracts With Commercial Organizations

2831.205  Selected costs.
2831.205-3270  Precontract costs.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4464, Jan. 30, 1985, unless otherwise noted.



Sec. 2831.000  Scope of part.

    This part contains cost principles and procedures for (a) the 
pricing of contracts, subcontracts, and modifications to contracts and 
subcontracts whenever cost analysis is performed and (b) the 
determination, negotiation, or allowance of costs when required by a 
contract clause.



                      Subpart 2831.1--Applicability



Sec. 2831.101-70  Objectives.

    (a) The DOJ Procurement Executive is the AAG/A's designee with 
respect to the granting of individual deviations to the cost principles 
of FAR part 31. All requests for individual deviations must cite the 
facts and circumstances surrounding the request as well as attempts 
negotiate contractor compliance.
    (b) Requests for class deviations from the cost principles set forth 
in FAR part 31 will be forwarded through the Office of the Procurement 
Executive prior to submission to the Civilian Agency Acquisition 
Counsel. Requests must contain the information required in paragraph (a) 
of this section.

[50 FR 4464, Jan. 30, 1985, as amended at 50 FR 29809, July 22, 1985]



Sec. 2831.109-70  Advance agreements.

    (a) The DOJ and bureau contracting officers are encouraged to 
negotiate advance agreements concerning the treatment of special or 
unusual costs to avoid possible subsequent disputes or disallowance of 
costs based upon unreasonableness or nonallowability. All such 
agreements shall be negotiated prior to the incurring of such costs by 
the contractor and in accordance with FAR 31.109. Contracting officers 
are not authorized to agree to a treatment of costs which would be 
inconsistent with FAR part 31.
    (b) Prior to negotiating an advance agreement, contracting officers 
shall make a written determination setting forth the reasons and 
rationale for entering into such advance agreement. In addition, the 
determination will set forth the nature, the duration, and which 
contract or contracts are covered by the proposed agreement. All 
determinations required by this subpart will be reviewed and approved at 
a level above the contracting officer prior to negotiation of the 
proposed agreement. The approved determination will be placed in the 
contract file.
    (c) All advance agreements shall be in writing and shall set forth 
the nature, duration, and contract or contracts covered by the 
agreements. Advance agreements will be signed by both the contractor and 
the contracting officer, and made a part of the contract file. Copies of 
executed advance agreements will be distributed to the cognizant audit 
office when applicable.
    (d) All advance agreements will be incorporated in full in the 
subsequent contract(s) to which they pertain, prior to award.

[[Page 743]]



         Subpart 2831.2--Contracts With Commercial Organizations

2831.205  Selected costs.



Sec. 2831.205-3270  Precontract costs.

    (a) Precontract cost authorizations shall be used only on cost 
reimbursement contracts, contain no provisions for payment of fees, and 
be treated as advance agreements in accordance with the provisions of 
FAR 31.109 and 2831.109-70 of this chapter.
    (b) The following limitations apply to the execution of precontract 
cost authorizations.
    (1) Contracts which are estimated to be $100,000 or less may contain 
a precontract cost authorization providing the authorization is for a 
period of 30 days or less and the dollar amount does not exceed one 
third of the total estimated costs (including fee if any) of the 
contract.
    (2) Contracts which are estimated to be greater than $100,000 may 
contain a precontract cost authorization providing the authorization is 
for a period of 60 days or less and the dollar amount does not exceed 
the lesser of $100,000 or one third of the total estimated costs 
(including fee if any) of the contract.
    (3) The limitations expressed under paragraphs (b) (1) and (2) of 
this section may be increased in unusual circumstances as appropriate, 
with the written approval of the head of the contracting authority, but 
in no event shall they exceed one-third of the total estimated costs 
(including fee if any) of the contract or be for periods of time which 
exceed 90 days.



PART 2832--CONTRACT FINANCING--Table of Contents




                    Subpart 2832.4--Advance Payments

Sec.
2832.402-70  General.
2832.407-70  Interest.

                     Subpart 2832.70--Prompt Payment

2832.7001  Policy.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4464, Jan. 30, 1985, unless otherwise noted.



                    Subpart 2832.4--Advance Payments



Sec. 2832.402-70  General.

    (a) The authority to sign written determinations and findings with 
respect to making advance payments is vested in those individuals listed 
in 2801.601(a) for their respective bureaus.
    (b) Prior to awarding a contract which contains provisions for 
making advanced payments, the contract terms and conditions concerning 
advance payments must be approved at a level above the Contracting 
Officer, with the advice and consent of the bureau's legal counsel.
    (c) The Contracting Officer shall coordinate with the activity that 
is to provide contract financing for advance payments, the bureau's 
disbursing or finance office, or the Treasury Department, as 
appropriate, to ensure that all FAR and departmental requirements are 
met.



Sec. 2832.407-70  Interest.

    In cases where advance payments may be made on an interest free 
basis (FAR 32.407(d)), the intent to make such interest free advance 
payments, and the circumstance permitting interest free advance 
payments, shall be set forth in the original determination and findings 
and be approved in accordance with 2832.402-70(a).



                     Subpart 2832.70--Prompt Payment



Sec. 2832.7001   Policy.

    The head of each contracting activity is responsible for 
promulgating procedures to ensure that, when specifying due dates, full 
consideration will be given to the time reasonably required by 
Government officials to fulfill their administrative responsibilities 
under the contract.

[53 FR 12421, Apr. 14, 1988]



PART 2833--DISPUTES AND APPEALS--Table of Contents




Sec.
2833.009-70  Suspected fraudulent claims.
2833.011-70  Contracting officer's decision.

[[Page 744]]

                        Subpart 2833.1--Protests

2833.105-70  Protests to GSBCA.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4465, Jan. 30, 1985, unless otherwise noted.



Sec. 2833.009-70  Suspected fraudulent claims.

    Contracting officers shall report suspected fraudulent claims to the 
Director, Commercial Litigation Branch, Civil Division, Room 1138, TODD 
Building, Washington, DC, (Ref. 28 CFR 0.45(d)).



Sec. 2833.011-70  Contracting officer's decision.

    (a) The Agency Board of Contract Appeals (BCA) which will hear 
appeals from the decisions of DOJ and bureau contracting officers is the 
Department of Transportation BCA. The procedures set forth in 41 CFR 12-
60 Contract Appeals Board shall apply.
    (b) Pursuant to 28 CFR 0.45 the contact for all appeals of decisions 
of DOJ contracting officers which will be forwarded to the BCA under 
paragraph (a) of this section, should be sent to the Director, 
Commercial Litigation Branch, Civil Division, Room 740, TODD Building, 
Washington, DC 20530.



                        Subpart 2833.1--Protests



Sec. Sec. 2833.105-70  Protests to GSBCA.

    (a) Upon notification of an ADP protest to the GSBCA, the 
contracting officer shall forward, through the Bureau Procurement Chief, 
a notification to the Procurement Executive. This notification should be 
in the form of a memorandum and include the following information:
    (1) Protestor.
    (2) Nature of protest.
    (3) Date protest received in GSBCA.
    (4) Procurement item description.
    (5) Estimated dollar amount.
    (6) Status of award.
    (7) Brief summary of bureau position regarding protestor's 
allegations.
    (b) The protest notification to the Procurement Executive should be 
delivered within two working days after bureau notification. Copies to 
all final decisions should be delivered to the Procurement Executive 
within two working days after bureau notification.

[57 FR 24559, June 10, 1992]



PART 2834--MAJOR SYSTEM ACQUISITION--Table of Contents




    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).



Sec. 2834.002-70  Policy.

    In accordance with Pub. L. 98-577, the Small Business and Federal 
Procurement Competition Enhancement Act of 1984, an executive agency may 
establish dollar thresholds for the designation of a major system. 
Accordingly, dollar thresholds for a major system under Office of 
Management and Budget Circular A-109 are designated below.
    (a) Major Automated Information System. Within the Department of 
Justice, a major automated information system is one whose life cycle 
cost is in excess of $40 million.
    (b) Major Real Property System. (1) By purchase, when the assessed 
value of the property exceeds $60 million.
    (2) By lease, when the annual rental charges, including basic 
services (e.g., cleaning, guards, maintenance), exceed $1.5 million.
    (3) By transfer from another agency at no cost when the assessed 
value of the property exceeds $12 million.
    (c) Research and Development (R&D) System. Any R&D activity expected 
to exceed $0.5 million for the R&D phase is subject to OMB Circular A-
109, unless exempted by the head of the contracting activity.
    (d) Any Other System or Activity. The head of the contracting 
activity responsible for the system may designate any system or activity 
as a Major System under OMB Circular A-109 as a result of Departmental 
review, e.g., selected systems designed to support more than one 
principal organizational unit.
    (e) Exemption. The Assistant Attorney General for Administration, 
upon recommendation by the head of the contracting activity responsible 
for the system, may determine that, because of the routine nature of the 
acquisition, the system (e.g., an information system utilizing only off-
the-shelf

[[Page 745]]

hardware or software) will be exempt from the OMB Circular A-109 
process, although by virtue of its life cycle costs, it would otherwise 
be identified as ``major'' in response to OMB Circular A-11.

[50 FR 29809, July 22, 1985, as amended at 52 FR 34390, Sept. 11, 1987; 
57 FR 24559, June 10, 1992]

[[Page 746]]



             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING





PART 2835--RESEARCH AND DEVELOPMENT CONTRACTING--Table of Contents




Sec.
2835.001-70  Definitions.
2835.003-70  Policy and procedures.
2835.005-70  Work statement.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4465, Jan. 30, 1985, unless otherwise noted.



Sec. 2835.001-70  Definitions.

    (a) Research is a systematic, intensive, scientific study including 
experimentation directed toward increasing knowledge and understanding 
of those fields of the sciences related to the solution of mission 
related problems.
    (b) Development as used in the JAR, is the systematic use of the 
knowledge and understanding derived from research efforts directed 
toward the solution of specific problems or the formulation of specific 
projects or processes, and the subsequent production of useful 
materials, devices, systems, methods, or prototypes.
    (c) Research and development activities are those activities which 
include: Strategic planning and analysis leading to the performance of 
research or development; research or development leading to the creation 
of prototype equipment or processes; as well as operational testing; 
experimentation; field implementation; and evaluation of such equipment 
or processes. The following are illustrative of research and development 
activities: Theoretical analyses; exploratory studies and experiments in 
any field of science and technology; developmental efforts requiring the 
practical application of investigative findings and theories of a 
scientific or technical nature; the use of such quantities and kinds of 
equipment, supplies, parts, accessories, or patent rights thereto and 
drawings or designs thereof as well as services, tests, and reports 
necessary for, or incidental to the performance of experimental, 
developmental or research work. The term research and development 
activities, as used in this part, ordinarily encompasses those 
activities listed above. However, in an exceptional case, depending upon 
the particular facts, some kinds of efforts not set forth above could be 
categorized as research and development activities within this part. 
These activities do not ordinarily include: Routine product testing; 
quality control; mapping; collection of general purpose statistics; 
experimental production; routine evaluation of an experimental program 
or an operational program; activities concerned primarily with the 
dissemination of scientific information or the training of scientific 
and technical personnel. However, in an exceptional case, depending upon 
the particular facts and circumstances, some kinds of efforts excluded 
in the preceding sentence could be research and development activities 
within this supplemental regulation.



Sec. Sec. 2835.003-70  Policy and procedures.

    Requiring activities and contracting offices shall adhere to the 
policies and procedures in this Section in acquiring R&D services.
    (a) Acquisition approvals. All requirements for R&D activities of 
more than $25,000 shall be submitted to the Assistant Attorney General 
for Administration (AAG/A) for approval prior to solicitation and award 
by the contracting office. Requirements for R&D will be submitted for 
approval via the Systems Policy Staff, OIT, and the Office of the 
Procurement Executive, who will review the submission and recommend to 
the AAG/A the appropriate action. The proposed R&D project shall be 
reviewed for the following elements.
    (1) The requirement is not duplicative of any R&D activity 
previously conducted or in progress.
    (2) The statement of work clearly and adequately describes the 
objectives of the R&D project.
    (b) Contracting for R&D requirements. Approval of the requirement by 
the AAG/A does not constitute approval of the method of procurement or 
contract type. Such decisions will be made by the contracting officer in 
accordance with applicable regulations.

[[Page 747]]

    (c) R&D requirements of $25,000 or less shall be approved by the 
heads of the contracting activity as defined in 2802.102(c) following 
review by the Systems Policy Staff and Office of the Procurement 
Executive.

[51 FR 759, Jan. 8, 1986]



Sec. 2835.005-70  Work statement.

    (a) The preparation of a clear, concise, and complete statement of 
work is essential to sound contracting for R&D activities. Work 
statements must be individually tailored by technical and contracting 
personnel to attain the desired degree of flexibility for contractor 
creativity, both in submitting proposals and in contract performance. 
Distinction must be made between level of effort (term) work statements 
which generally require the furnishing of technical effort and a report 
on the results thereof, and task (completion) work statements which 
generally require development of tangible end items designed to meet 
specific functional requirements.
    (b) In preparing statements of work for R&D activities the following 
elements shall be considered:
    (1) A general description of the required objectives and the desired 
results;
    (2) All background information helpful to a clear understanding of 
the requirements and how they evolved;
    (3) Technical considerations which affect the requirements such as 
known specific phenomena or techniques;
    (4) A detailed description of the technical requirements and 
subordinate or associated tasks;
    (5) A description of the reporting requirements and any other 
deliverable items such as data, experimental hardware, prototypes, etc.; 
and,
    (6) Other special considerations.

[[Page 748]]



                    SUBCHAPTER G--CONTRACT MANAGEMENT





PART 2845--GOVERNMENT PROPERTY--Table of Contents




                         Subpart 2845.1--General

Sec.
2845.102  Policy.
2845.105  Records of Government property.

 Subpart 2845.5--Management of Government Property in the Possession of 
                               Contractors

2845.505-14  Reports of Government property.

 Subpart 2845.6--Reporting, Redistribution, and Disposal of Contractor 
                                Inventory

2845.603  Disposal methods.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75 (j) and 28 
CFR 0.76(j).

    Source: 53 FR 49666, Dec. 9, 1988, unless otherwise noted.



                         Subpart 2845.1--General



Sec. 2845.102  Policy.

    Subject to the provisions in part 45 of the Federal Acquisition 
Regulations:
    (a) The contracting officer is responsible for the delivery of 
Government property to contractors and serves as property administrator 
unless property administration responsibilities are explicitly delegated 
in the contract. Property management responsibilities may be delegated 
to contracting officer's technical representatives or other 
representatives authorized to act in the contracting officer's behalf 
with respect to Government-furnished property.
    (b) The contracting officer shall ensure that contractor property 
responsibilities are clearly delineated and that, consistent with 
internal bureau policies and procedures, requirements are coordinated 
with the bureau property managers before award and throughout the course 
of a contract in which property is furnished.



Sec. 2845.105  Records of Government property.

    If departmental elements maintain the Government's official property 
management records, the contract records may be kept as a separate 
account in the bureau's internal property management system, in which 
case the contracting officer or formally designated property 
administrator shall serve as custodian of the account.



 Subpart 2845.5--Management of Government Property in the Possession of 
                               Contractors



Sec. 2845.505-14  Reports of Government property.

    (a) In compliance with FAR 45.505-14, by January 31 of each year, 
DOJ contractors shall furnish the cognizant contracting officer an 
annual report of the Department of Justice property for which they are 
accountable as of the end of the calendar year.
    (b) By March 1 of each year, bureaus shall submit a summary report 
of Departmental property furnished under each contract, as of the end of 
the calendar year, to the Facilities and Administrative Services Staff, 
Justice Management Division. The report shall be categorized in 
accordance with FAR subpart 45.505 and shall include contracts for which 
the bureau maintains the official government records.



 Subpart 2845.6--Reporting, Redistribution, and Disposal of Contractor 
                                Inventory



Sec. 2845.603  Disposal methods.

    Policies pertaining to reutilization and disposal of Department of 
Justice property, including requirements for internal screening, 
waivers, and disposal reporting, are prescribed in the Justice Property 
Management Regulations subpart 128-43. Unless otherwise specified, the 
``plant clearance officer'' shall be a designated utilization and 
disposal representative of a bureau's property management office.

[[Page 749]]



                     SUBCHAPTER H--CLAUSES AND FORMS





PART 2852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents




      Subpart 2852.1--Instructions for Using Provisions and Clauses

Sec.
2852.101  Using part 2852.
2852.102  Incorporating provisions and clauses.
2852.102-70  Incorporation in full text.
2852.104-70  Procedures for modifying and completing JAR provisions and 
          clauses.
2852.105-70  Procedures for using alternates.

             Subpart 2852.2--Texts and Provisions of Clauses

2852.201-70  Contracting Officer's Technical Representative (COTR).
2852.210-70  Brand name or equal.
2852.232-79  Inspection and acceptance.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(c); 28 CFR 0.75(j) and 
0.76(j).

    Source: 50 FR 4466, Jan. 30, 1985, unless otherwise noted.



      Subpart 2852.1--Instructions for Using Provisions and Clauses



Sec. 2852.101  Using part 2852.

    (a) Definitions:
    Alternate means a substantive variation of a basic provision or 
clause prescribed for use in a defined circumstance. It (1) adds wording 
to, (2) deletes wording from, or (3) substitutes specified wording for a 
portion of the basic provision or clause. The alternate portion of the 
basic provision or clause is the basic provision or clause as changed by 
the addition, deletion, or substitution.
    Contract clause or clause means a term or condition used in 
contracts or both solicitations and contracts which applies after 
contract award or both before and after award.
    Modification, as used in this subpart, means a minor change in the 
details of a provision or clause that is specifically authorized by the 
JAR and does not alter the substance of the provision or clause.
    Solicitation provisions or provision means a term or condition used 
only in solicitations and applying only before contract award.
    Substantially as follows or substantially the same as, when used in 
the prescription or preface of a provision or clause, means that 
authorization is granted to prepare and utilize a variation of that 
provision or clause to accommodate equipment peculiar to an individual 
acquisition; provided that the variations include the salient features 
of the JAR provision or clause and are not inconsistent with the intent, 
principle, and substance of the JAR provision or clause or related 
coverage of the subject matter.
    (b) The numbering system used for JAR clauses follows to the extent 
possible, the numbering system used in FAR part 52.
2852.102  Incorporating provisions and clauses.



Sec. 2852.102-70  Incorporation in full text.

    JAR provisions or clauses shall be incorporated in solicitations and 
contracts in full text.



Sec. 2852.104-70  Procedures for modifying and completing JAR provisions and clauses.

    (a) JAR provisions and clauses shall not be modified unless the JAR 
authorizes their modification. Any such authorizations are contained in 
the provision or clause preface.
    (b) When modifying JAR provisions or clauses incorporated by 
reference, insert the changed wording directly by substituting the 
changed wording as permitted.
    (c) When completing blanks in JAR provisions or clauses incorporated 
in full text, insert the fill-in information in the blanks of the 
provision or clause.



Sec. 2852.105-70  Procedures for using alternates.

    (a) A major variation in a JAR provision or clause is accommodated 
by the use of an alternate. All alternates to a given provision or 
clause as well as instructions for their use appear after the basic 
provision or clause.

[[Page 750]]

    (b) Bureaus wishing to use an alternate for a JAR required provision 
or clause must submit the proposed alternate to the Procurement 
Executive for review and approval prior to using the proposed alternate.

[50 FR 4466, Jan. 30, 1985, as amended at 53 FR 49666, Dec. 9, 1988]



             Subpart 2852.2--Texts and Provisions of Clauses



Sec. 2852.201-70  Contracting Officer's Technical Representative (COTR).

    The following clause is recommended for use in solicitations and 
contracts to delineate COTR responsibility and authority is accordance 
with 2801.70.

             Contracting Officer's Technical Representative

    (a) Mr./Ms. (Name) of (Organization) (Room No.), (Building), 
(Address), (Area Code & Telephone No.), is hereby designated to act as 
Contracting Officer's Technical Representative (COTR) under this 
contract.
    (b) The COTR is responsible for: receiving all deliverables; 
inspecting and accepting the supplies or services provided hereunder in 
accordance with the terms and conditions of this contract; providing 
direction to the contractor which clarifies the contract effort, fills 
in details or otherwise serves to accomplish the contractual Scope of 
Work; evaluating performance; and certifying all invoices/vouchers for 
acceptance of the supplies or services furnished for payment prior to 
forwarding the original invoice to the payment office and a conformed 
copy to the Contracting Officer.
    (c) The COTR does not have the authority to alter the contractor's 
obligations under the contract, direct changes that fall within the 
purview of the General Provisions clause entitled ``Changes,'' and/or 
modify any of the expressed terms, conditions, specification, or cost of 
the agreement. If as a result of technical discussions it is desirable 
to alter/change contractual obligations or the Scope of Work, the 
Contracting Officer shall issue such changes in writing and signed.

                             (End of clause)



Sec. 2852.210-70  Brand name or equal.

    This clause shall be used in accordance with 2810.004-70. (As used 
in this clause, the term ``brand name'' includes identification of 
products by make and model.) When this clause is used, the salient 
features of the ``brand name'' item must be set forth in the 
solicitation in order to permit offerors of ``equal products'' to bid.

                           Brand Name or Equal

    (a) If items called for by this invitation for bids have been 
identified in the schedule by a ``brand name or equal'' description, 
such identification is intended to be descriptive but not restrictive, 
and is to indicate the quality and characteristics of products that will 
be satisfactory. Bids offering ``equal'' products (including products of 
the brand name manufacturer other than the one described by brand name) 
will be considered for award if such products are clearly identified in 
the bids and are determined by the Government to meet fully the salient 
characteristics and requirements listed in the invitation.
    (b) Unless the bidder clearly indicates in his bid that he is 
offering an ``equal'' product, his bid shall be considered as offering a 
brand name product referenced in the invitation for bids.
    (c)(1) If the bidder proposes to furnish an ``equal'' product, the 
brand name, if any, of the product to be furnished shall be inserted in 
the space provided in the invitation for bids, or such product shall be 
otherwise clearly identified in the bid. The evaluation of bids and the 
determination as to equality of the product offered shall be the 
responsibility of the Government and will be based on information 
furnished by the bidder or identified in his bid as well as other 
information reasonably available to the purchasing activity. Caution to 
Bidders: The purchasing activity is not responsible for locating or 
securing any information which is not identified in the bid and 
reasonably available to the purchasing activity. Accordingly, to ensure 
that sufficient information is available, the bidder must furnish as a 
part of his bid all descriptive material (such as cuts, illustrations, 
drawings, or other information) necessary for the purchasing activity 
to; (i) determine whether the product offered meets the salient 
characteristics requirement of the invitation for bids, and (ii) 
establish exactly what the bidder proposed to furnish and what the 
Government would be binding itself to purchase by making an award. The 
information furnished may include specific references to information 
previously furnished or information otherwise available to the 
purchasing activity.
    (2) If the bidder proposes to modify a product so as to make it 
conform to the requirements of the Invitation for Bids, he shall; (i) 
include in his bid a clear description of such proposed modifications, 
and (ii) clearly mark any descriptive material to show the proposed 
modifications.
    (3) Modifications proposed after the bid opening to make a product 
conform to a

[[Page 751]]

brand name product referenced in the Invitation for Bids will not be 
considered.

                             (End of clause)



Sec. 2852.232-79  Inspection and acceptance.

    The following clause is recommended for use in solicitations and 
contracts to establish definitive dates for inspection and acceptance.

                        Inspection and Acceptance

    (a) Inspection and acceptance of the supplies or services to be 
furnished hereunder shall be performed at *------ by the COTR or his 
designated representative, in accordance with the Inspection clause and 
any other provisions specified in this contract. The Government reserves 
the right to conduct any tests it deems reasonably necessary to ensure 
that the supplies or services provided conform in all respects to the 
contract specifications. Supplies or services which upon inspection are 
found not to be in conformance with contractual specifications shall be 
promptly rejected and notice of such rejection, together with 
appropriate instructions, will be provided the contractor by the 
Contracting Officer.
    (b) The Government will use its best efforts to inspect and accept/
reject the supplies or services provided within **------ days. Failure 
of the Government to so inspect the supplies or services within the 
above stated time shall not be construed as acceptance of such supplies 
or services.

                             (End of clause)

(Oct. 1988)

    * Contracting officer to insert the appropriate place of inspection.
    ** Contracting officer to insert the appropriate number of days 
required for inspection and acceptance.

                             (End of clause)

[50 FR 4466, Jan. 30, 1985, as amended at 53 FR 49666, Dec. 9, 1988]

[[Page 752]]



                SUBCHAPTER I--SPECIAL AGENCY REGULATIONS





PART 2870--ACQUISITION OF LEASEHOLD INTERESTS IN REAL PROPERTY--Table of Contents




                       Subpart 2870.1--Definitions

Sec.
2870.101  Definitions.

   Subpart 2870.2--Agency Acquisition Regulations for Leases of Real 
                                Property

2870.201  Authority to lease.
2870.202  Review by the Office of the Procurement Executive.
2870.203  Competition.
2870.204  Procedures for executing a lease.

    Authority: 28 U.S.C. 510; 40 U.S.C. 486(C); 28 CFR 0.75(j); and, 28 
CFR 0.76(j).

    Source: 56 FR 26342, June 7, 1991, unless otherwise noted.



                       Subpart 2870.1--Definitions



Sec. 2870.101  Definitions.

    Throughout this regulation the following words and terms are used as 
defined in this subpart unless the context in which they appear clearly 
requires a different meaning.
    (a) Acquisition means the acquiring, by lease with appropriated 
funds, of an interest in improved real property for use by the Federal 
Government whether the space is already in existence or must be 
constructed.

    Acquisition begins at the point when agency needs are established 
and includes the description of requirements to satisfy agency needs, 
market survey, solicitation, award of lease, lease performance, lease 
administration, and those technical and management functions directly 
related to the process of fulfilling agency space needs by contract.
    (b) Contract means lease.
    (c) Contractor means lessor.
    (d) Landlord or lessor means any individual, firm, partnership, 
trust, association, State or local government, or other legal entity 
that leases real property to the Government.
    (e) Lease or leasehold interest in real property means a conveyance 
to the Government of the right of exclusive possession of real property 
for a definite period of time by a landlord. It may include services 
provided by the landlord such as heating, ventilation, air conditioning, 
utilities, custodial services, and other related services furnished by 
the landlord.



   Subpart 2870.2--Agency Acquisition Regulations for Leases of Real 
                                Property



Sec. 2870.201  Authority to lease.

    The authority for Federal agencies to enter leases is found in 41 
CFR 101-18.104. Contracting officers exercising leases on behalf of the 
Department or of a bureau must assure that all necessary delegations 
have been obtained from the General Services Administration (GSA) and 
are within the authority of the Justice Property Management Regulations 
(JPMR), subpart 128-1.60.



Sec. 2870.202  Review by the Office of the Procurement Executive.

    Leases are subject to the same review requirements as other types of 
acquisitions, in accordance with the JAR 2801.602-70. These leases which 
exceed the minimum dollar thresholds for contract review must be 
submitted to the Office of the Procurement Executive for review and 
approval prior to the signing of the lease agreement on behalf of the 
Government.



Sec. 2870.203  Competition.

    The competition requirements of FAR part 6 apply to the acquisition 
of leasehold interests in real property. The acquisition of space 
through other than full and open competition must be held to the 
smallest number practicable and be justified in writing and approved in 
accordance with FAR 6.303 and 6.304.



Sec. 2870.204  Procedures for executing a lease.

    (a) Pursuant to the requirements of the delegations issued by GSA, 
all lease acquisitions shall be performed in accordance with the 
guidance provided

[[Page 753]]

in the General Services Acquisition Regulation (GSAR) 48 CFR chapter 5, 
part 570, Acquisition of Leasehold Interests in Real Property, except 
for deviations approved by the Procurement Executive.
    (b) The following FAR clauses are to be used in lease agreements as 
applicable. Special leasing clauses are found in GSA forms 3516, 
Solicitation Provisions, 3517, General Clauses and 3518 Representations 
and Certifications, which are located in subpart 553.370 of the GSAR.
    1. Solicitation provisions.

    (i) 52.203-8 Requirement for Certification of Procurement Integrity
    (ii) 52.204-13 Taxpayer Identification
    (iii) 52.215-10 Late Submission, Modifications and Withdrawals of 
Offers
    (iv) 52.215-12 Restrictions on Disclosure and Use of Data
    (v) 52.215-13 Preparation of Offers
    (vi) 52.215-14 Explanation to Prospective Offerors
    (vii) 52.222-24 Preaward On-site Equal Opportunity Compliance Review
    (viii) 52.233-2 Service of Protest (Required clause)

    2. Lease Clauses

    (i) 52.202-1 Definitions (Required Clause)
    (ii) 52.203-1 Officials Not to Benefit
    (iii) 52.203-3 Gratuities
    (iv) 52.203-5 Covenant Against Contingent Fees (Required Clause)
    (v) 52.203-7 Anti-Kickback Procedures (Required clause)
    (vi) 52.203-9 Requirement for Certification of Procurement 
Integrity--Modification
    (vii) 52.209-6 Protecting the Government's Interest When 
Subcontracting With Contractors Debarred, Suspended or Proposed for 
Debarment
    (viii) 52.212-6 Time Extensions
    (ix) 52.215-1 Examination of Records by Comptroller General 
(Negotiated over $10,000)
    (x) 52.215-22 Price Reduction for Defective Cost or Pricing Data
    (xi) 52.215-24 Subcontractor Cost or Pricing Data
    (xii) 52.219-8 Utilization of Small Business Concerns and Small 
Disadvantaged Business Concerns (Applicable to leases which exceed 
$10,000)
    (xiii) 52.219-9 Small Business and Small Disadvantaged Business 
Subcontracting Plan (Applicable to leases which exceed $500,000)
    (xiv) 52.219-13 Utilization of Women-Owned Small Business 
(Applicable to leases which exceed $25,000)
    (xv) 52.219-16 Liquidated Damages--Small Business Subcontracting 
Plan
    (xvi) 52.222-26 Equal Opportunity (Applicable to leases which exceed 
$10,000)
    (xvii) 52.222-35 Affirmative Action for Special Disabled and Vietnam 
Era Veterans (Applicable to leases which exceed $10,000)
    (xviii) 52.222-36 Affirmative Action for Handicapped Workers 
(Applicable to leases which exceed $2,500)
    (xix) 52.222-37 Employment Reports on Special Disabled Veterans and 
Veterans of the Vietnam Era (Applicable to leases which exceed $10,000)
    (xx) 52.223-2 Clean Air and Water (Applicable to leases which exceed 
$100,000)
    (xxi) 52.223-6 Drug-Free Workplace
    (xxii) 52.232-23 Assignment of claims
    (xxiii) 52.232-25 Prompt Payment
    (xxiv) 52.233-1 Disputes
    (xxv) 52.249-2 Termination for Convenience of the Government (Fixed 
Price)
    (xxvi) 52.249-5 Termination (Cost Reimbursement)
    (xxvii) 52.249-8 Default (Fixed Price Supply and Services)
    (xxviii) 52.249-10 Default (Fixed Price Construction)

    3. Representations and Certifications

    (i) 52.203-2 Certification of Independent Price Determination
    (ii) 52.203-4 Contingent Fee Representation and Agreement
    (iii) 52.209-5 Certification Regarding Debarment, Suspension, 
Proposed Debarment and Other Responsibility Matters (Applies to leases 
exceeding 25,000)
    (iv) 52.219-2 Small Disadvantaged Business Concern Representation 
(Applies to leases exceeding $25,000)
    (v) 52.219-3 Women Owned Small Business Representation (Applies to 
leases exceeding $25,000)
    (vi) 52.219-1 Small Business Concern Representation
    (vii) 52.222-21 Certification of Nonsegregated Facilities (Applies 
to leases exceeding $10,000)
    (viii) 52.222-22 Previous Contracts and Compliance Reports (Applies 
to leases exceeding $10,000)
    (ix) 52.222-25 Affirmative Action Compliance (Applies to leases 
exceeding $10,000)
    (x) 52.223-1 Clean Air and Water Certification (Applicable to leases 
expected to exceed $100,000)
    (xi) 52.223-5 Certification Regarding a Drug-Free Workplace

[[Page 755]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected



[[Page 757]]



                    Table of CFR Titles and Chapters




                   (Revised as of September 30, 1996)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3202)
     XXIII  Department of Energy (Part 3301)

[[Page 758]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
      XXVI  Department of Defense (Part 3601)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)

[[Page 759]]

      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of Finance and Management, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
     XXXIX  Economic Analysis Staff, Department of Agriculture 
                (Parts 3900--3999)
        XL  Economics Management Staff, Department of Agriculture 
                (Parts 4000--4099)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

[[Page 760]]

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                399)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

[[Page 761]]

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

[[Page 762]]

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)

[[Page 763]]

        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)

[[Page 764]]

        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3699)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)

[[Page 765]]

         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Programs, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)

[[Page 766]]

        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)

[[Page 767]]

       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

[[Page 768]]

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

[[Page 769]]

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services, 
                General Administration (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)

[[Page 770]]

      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Saint Lawrence Seaway Development Corporation (Great 
                Lakes Pilotage), Department of Transportation 
                (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)

[[Page 771]]

        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

[[Page 772]]

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Regulatory Agencies (Fishing and 
                Whaling) (Parts 300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            Acts Requiring Publication in the Federal Register
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 773]]





           Alphabetical List of Agencies Appearing in the CFR




                   (Revised as of September 30, 1996)

                                                  CFR Title, Subtitle or
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Analysis Staff                         7, XXXIX
  Economic Research Service                       7, XXXVII
  Economics Management Staff                      7, XL
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Finance and Management, Office of               7, XXX
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII

[[Page 774]]

American Battle Monuments Commission              36, IV
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51

[[Page 775]]

  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Defense Mapping Agency                          32, I
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Mapping Agency                            32, I
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Analysis Staff                           7, XXXIX
Economic Development Administration               13, III
Economics Management Staff                        7, XL
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV

[[Page 776]]

Farm Service Agency                               7, VII, XVIII
Farmers Home Administration                       7, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Finance and Management, Office of                 7, XXX
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Fishing and Whaling, International Regulatory     50, III
     Agencies
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105

[[Page 777]]

  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
     Secretary
[[Page 778]]

  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  Mines, Bureau of                                30, VI
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, Agency for             22, II
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, Agency for           22, II; 48, 7
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Regulatory Agencies (Fishing and    50, III
     Whaling)
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Relations and Cooperative      29, II
       Programs, Bureau of
  Labor-Management Programs, Office of            29, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Relations and Cooperative        29, II
     Programs, Bureau of
Labor-Management Programs, Office of              29, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II

[[Page 779]]

Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV

[[Page 780]]

Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV; 46, III
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II

[[Page 781]]

  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV; 46, III
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 783]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1973-1985, published in four separate volumes.

                                  1986

48 CFR
                                                                   51 FR
                                                                    Page
Chapter 15
1505  Subchapter assignment; editorial note.........................6004
1506  Subchapter assignment; editorial note.........................6004
1527  Revision at 49 FR 29222 effective as final rule..............25368
1552.227-70  Revision at 49 FR 29228 effective as final rule.......25368
1552.227-71  Addition at 49 FR 29229 effective as final rule.......25368
1552.227-72  Addition at 49 FR 29230 effective as final rule.......25368
1552.227-73  Addition at 49 FR 29231 effective as final rule.......25368
1552.227-74  Addition at 49 FR 29231 effective as final rule.......25368
1552.227-75  Addition at 49 FR 29231 effective as final rule.......25368
Chapter 17
Chapter established................................................44296
1733  Added........................................................44296
Chapter 18
1801  Heading revised..............................................27848
1801.104-370  Revised..............................................27848
1801.270-2  (a) revised; (c) added.................................27849
1801.270-4  Revised................................................27849
1801.271  Added....................................................45770
1801.301  Amended..................................................27849
1801.405  Amended..................................................27849
1801.570 (Subpart 1801.5)  Removed.................................27849
1801.603-1  Removed................................................27849
1801.603-2  Added..................................................27849
1801.603-3  Added..................................................27850
1801.603-4  Revised................................................27851
1801.670  Added....................................................27851
1803.101-2  Amended................................................45770
1803.203  Amended..................................................45770
1803.704--1803.705 (Subpart 1803.7)  Added.........................45770
1804.170  Added....................................................27851
1804.202  Revised..................................................45770
1804.601  Added....................................................27851
1804.671-4  (w) and (ii) amended; (pp), (rr), (ss), and (tt) 
        introductory text revised..................................27851
1804.676  Revised..................................................27852
1804.803-71  Added.................................................27853
1804.804-5  Revised................................................27853
1804.805-70  (a)(2) and (b)(1) amended.............................27853
1804.7202  Removed.................................................27853
1804.7205  (a) revised.............................................27853
1804.7301  (a) and (c) revised.....................................27853
1805  Subchapter assignment; editorial note.........................6004
1805.202  Added....................................................27853
1805.207  Revised..................................................45770
1805.303-71  (b)(1) introductory text revised......................45771
1806  Subchapter assignment; editorial note.........................6004
1806.301  Heading revised..........................................27853
1806.302-1-70  (a) amended.........................................27853
1806.302-270  Added................................................45771
1806.303-271  Added................................................45771
1806.304  (a) amended; (d) revised.................................27853

[[Page 784]]

1807.102  Revised...........................................27853, 45771
1807.103  (b)(1)(iii) revised......................................27854
    (b)(1)(i)(A) and (B) and (ii)(A) and (B) amended...............45771
1807.170-1  Revised................................................27854
    (a)(1)(iv) removed; (a)(1)(v) redesignated as (a)(1)(iv).......45771
1807.204 (Subpart 1807.2)  Added...................................27854
1807.7102  (a) revised.............................................27855
    (c) revised....................................................45771
1807.7105  (a) amended......................................27855, 45772
1807.7106  Amended.................................................27855
1808.802  Amended..................................................45772
1809.106-7001  Revised.............................................27855
1809.202  Added....................................................27855
1809.203-70  (a) revised...........................................27855
1809.206-1  Added..................................................27855
1812.302--1812.303-70 (Subpart 1812.3)  Revised....................45772
1813.404  (a) amended..............................................27855
1813.7003  (a) amended.............................................27855
1814.201-3  Removed................................................27855
1815.406-3  Removed................................................27855
1815.406-5  (a) and (b) redesignated as (b) and (c); new (a) 
        added; new (b)(9) revised..................................27855
1815.407-70  Amended...............................................27855
1815.412  Removed..................................................28575
1815.507  (c) revised..............................................27856
1815.570  Amended..................................................45772
1815.613-70  Revised...............................................27856
1815.613-71  (a)(4) added..........................................27856
    (a)(1) introductory text amended...............................45772
1815.704  Revised..................................................45772
1819.001  Heading added............................................27856
1819.001-70  Redesignated from 1819.101 and heading revised........27856
1819.101 (Subpart 1819.1)  Heading removed.........................27856
1819.101  Redesignated as 1819.001-70 and heading revised..........27856
1822.305 (Subpart 1822.3)  Added; interim...........................4502
    Removed........................................................23765
1822.403-1--1822.403-4 (Subpart 1822.4)  Added; interim.............4502
    Removed........................................................23765
1822.1103  (a) revised.............................................45772
1825.109  Removed..................................................27856
1825.109-70  Removed...............................................27856
1825.604  (e) added................................................27856
1827.373  (a)(1) and (c)(1) revised; (g) added.....................27856
1827.474  (b)(2) revised...........................................45772
1827.475-10  Removed...............................................45773
1832.470  Removed..................................................27856
1833  Heading revised..............................................27856
1833.211-70  Added.................................................27856
1836.203  (a) amended..............................................27857
1836.602-71  (b) revised...........................................45773
1837.204-70  (d) revised...........................................27857
    (d) and (e) revised............................................45773
1837.204-71  Added.................................................27857
1837.205-71  (b)(1) and (4) revised................................27857
1839.7003-2  Amended...............................................27857
1839.7005  (a) revised.............................................45773
1842.202-70  (e) amended...........................................27857
    (a)(1) amended; (b) revised....................................45773
1842.202-71  (b)(2) removed; (b)(3) and (4) redesignated as (b)(2) 
        and (3)....................................................45773
1842.302  Text added...............................................45773
1845.106-70  (c) revised...........................................27857
1845.302-70  (a) amended...........................................27857
1845.7103  Amended.................................................45774
1845.7205  (f)(1) revised..........................................27857
1846.673  (a) revised..............................................45774
1847.506-70  (a) revised...........................................27857
1847.507  Added....................................................27858
1851.7003  (c) revised.............................................27858
1851.7004  Revised.................................................27858
1851.7005  Revised.................................................27858
1852.214-70  Removed...............................................27858
1852.215-10  Removed...............................................28575
1852.215-73  Removed...............................................27858
1852.222-4  Added; interim..........................................4502
    Removed........................................................23765
1852.222-7  Added; interim..........................................4503
    Removed........................................................23765
1852.225-70  Removed...............................................27858
1852.227-82  Removed...............................................45774
1852.227-84  Added.................................................27858
1852.227-85  Added.................................................27858
1852.235-70  Revised...............................................45774
1852.251-70  Revised...............................................27858
1853.107  Revised..................................................45774
1853.207  (b) revised..............................................27859
1853.212  Removed..................................................45774
1853.223  Text added...............................................45774
1853.227  Added....................................................45774
1853.251  Revised..................................................27859
    Heading revised................................................45774
Chapter 24
2401.403  Amended...................................................7948
2401.404  Amended...................................................7948
2403.203  Amended...................................................7948
2403.204  Amended...................................................7948

[[Page 785]]

2403.303-70  Amended................................................7948
2403.601  Amended...................................................7948
2407.102  Amended...................................................7948
2413  Authority citation revised...................................40333
2413.404  Added (effective date pending)...........................40333
2414.407-701  (d) correctly designated..............................7948
2415.506  (b)(2) redesignated as (b)(3); new (b)(2) added...........7948
2416.405  Amended...................................................7949
2433.000  Revised (effective date pending).........................40333
2433.104  (f) revised (effective date pending).....................40333
2433.104-70  Text added (effective date pending)...................40333
2433.105  Revised (effective date pending).........................40333
Chapter 28
2801.601  Revised....................................................758
2801.602-70  (e) introductory text amended; (e)(1) through (4) 
        added........................................................759
2835.003-70  Revised.................................................759

                                  1987

48 CFR
                                                                   52 FR
                                                                    Page
Chapter 15
1537.205  (b)(3) removed............................................8073
Chapter 16
Chapter established................................................16037
1601--1606 (Subchapter A)  Heading added...........................16037
1601  Added........................................................16037
1602  Added........................................................16038
1603  Added........................................................16039
1604  Added........................................................16039
1605  Added........................................................16039
1606  Added........................................................16039
1614--1616 (Subchapter C)  Heading added...........................16039
1614  Added........................................................16039
1615  Added........................................................16040
1616  Added........................................................16041
1622--1624 (Subchapter D)  Heading added...........................16041
1622  Added........................................................16041
1624  Added........................................................16041
1631--1649 (Subchapter E)  Heading added...........................16041
1631  Added........................................................16041
1632  Added........................................................16043
1633  Added........................................................16043
1644  Added........................................................16043
1646  Added........................................................16044
1649  Added........................................................16044
1652--1653 (Subchapter H)  Heading added...........................16044
1652  Added........................................................16044
1653  Added........................................................16048
Chapter 18
1801  Revised......................................................34790
1801.105-1  Revised (OMB numbers)..................................15414
1801.105-1  Revised................................................46765
1801.603-2  (d)(2) amended.........................................15414
1801.670  Revised..................................................46765
1802.101  Revised...........................................15414, 34795
1803.303  (a)(5) and (c) revised...................................34796
1803.7001  Revised.................................................34796
1804.7002  Revised.................................................34796
1804.7100  Amended.................................................15415
1804.7102-2  (a) and (b) amended; (f) removed; (g) and (h) 
        redesignated as (f) and (g)................................15415
1804.7102-4  (a) revised...........................................15415
1804.7102-5  (c) removed; (d) redesignated as (c)..................15415
1804.7103-2  Revised...............................................15415
1804.7401 (Subpart 1804.74)  Added.................................34796
1805.202  Revised..................................................46766
1805.205  Revised..................................................34796
1805.207  Revised..................................................34796
1805.302--1805.303-71 (Subpart 1805.3)  Revised....................34797
1805.403-70  Revised...............................................34798
1807.103  (b)(2) revised...........................................46766
1807.7102  (a) introductory text amended; (d)(1) removed; (d) (2) 
        and (3) redesignated as (d) (1) and (2)....................46766
1808.302  Removed..................................................46766
1808.303  Amended..................................................15415
1808.304-2  (c) amended............................................15415
1808.304-4  (a) amended............................................15415
1808.304-571  Amended..............................................15415
1809.106-7204  (a)(2)(ii) amended..................................46766
1809.206-71  Revised...............................................15415
1810.002-70  Revised...............................................34798
1810.004  (a) revised..............................................34798
1810.004-71  (a) through (g) revised...............................34798
1810.007  Revised..................................................15415
1810.008  Revised..................................................34798

[[Page 786]]

1810.008-70  Revised...............................................34798
1810.011  Revised..................................................15415
1812.104-70  (c) added.............................................34798
    (b) amended....................................................46766
1813.204--1813.205  Added..........................................46766
1813.303  Revised..................................................34799
1813.403-70  (c)(2) amended........................................34799
1815.407  Revised..................................................15415
1815.407-70  Revised...............................................15415
1815.412  Added....................................................15415
1815.413-2  (c) amended............................................15416
    (e) amended....................................................46766
1815.613-70  Amended...............................................15416
1815.805-5  (a) revised............................................34799
1815.870-1--1815.870-2  Revised....................................34799
1815.970  (f) introductory text revised............................46766
1815.1003  Amended.................................................15416
1816.203-4  Revised................................................34799
1816.303  Revised..................................................34800
1816.603-71  Revised...............................................34801
1816.702  Removed..................................................34801
1822.101-1  (c) revised............................................15416
1822.103-4  Revised................................................15416
1822.608-5  Revised................................................34801
1822.804-2  Revised................................................15416
1823.7002  (d)(1)(vii) revised.....................................34801
1825.402  Text added...............................................15416
1827.404--1827.409 (Subpart 1827.4)  Revised.......................46767
1828.305  (b)(2)(ii) revised.......................................15416
1828.309  (a) designation removed..................................15416
1830.101  Revised..................................................46769
1830.201-5 (Subpart 1830.2)  Added.................................46769
1830.304 (Subpart 1830.3)  Removed.................................46769
1831  Revised......................................................46769
1831.303 (Subpart 1831.3)  Added; interim..........................13685
1831.703 (Subpart 1831.7)  Added; interim..........................13685
1832.111-70  (d) amended...........................................15416
    (e) added......................................................34802
    (d) revised....................................................46769
1832.171  Removed..................................................34802
1832.501-170  Removed..............................................46770
1832.705-270  Revised..............................................46770
1835.070  (c) revised..............................................15416
1836.370  Revised..................................................46770
1836.770  Removed..................................................46770
1837.106  Removed..................................................46770
1839.7001  Revised.................................................15416
1842.101  Revised..................................................34802
1842.173  Revised..................................................34802
1842.202-70  (d) revised...........................................34802
1842.7001 (Subpart 1842.70)  Added.................................34802
1845.102-70  (a)(3) revised........................................34802
1845.106-70  (d) revised...........................................34802
1845.106-71  Added.................................................34802
1845.505-14  Revised...............................................34802
1845.7101  Amended.................................................34803
1846.709-70  Amended...............................................15417
1847.7001 (Subpart 1847.70)  Added.................................34805
1852.000  Revised..................................................15417
1852.204-71  Revised...............................................15417
1852.204-72  Amended...............................................15417
1852.204-73  Added.................................................34805
1852.208-7000--1852.208-7001  Removed..............................46770
1852.208-7002  Revised.............................................46770
1852.208-7007  Revised.............................................46770
1852.208-7008  Revised.............................................46770
1852.208-7009  Revised.............................................46770
1852.208-7010  Revised.............................................46771
1852.210-70  Revised...............................................15417
1852.212-72  Added.................................................34805
1852.215-72  Amended...............................................15417
1852.215-73  Added.................................................15417
1852.223-3  Removed................................................46771
1852.223-370  Removed..............................................46771
1852.227-14  Added.................................................46771
1852.227-19  Added.................................................46771
1852.227-74--1852.227-81  Correctly removed........................47936
1852.227-83  Correctly removed.....................................47936
1852.227-86  Added.................................................46771
1852.231-70--1852.231-71  Removed..................................46772
1852.232-71  Revised...............................................46772
1852.232-78  Amended...............................................15417
    Revised........................................................46772
1852.232-79  Added.................................................34806
1852.232-80  Added.................................................46772
1852.232-1670  Added...............................................46772
1852.233-1  Revised................................................15418
1852.235-71  Revised...............................................15418
1852.236-70  Revised...............................................46772
1852.236-71  Revised...............................................46772
1852.236-72  Added.................................................46773
1852.242-70  Added.................................................34806
1852.243-70  Amended...............................................15418
    Revised........................................................46773
1852.245-71  Amended...............................................15418
1852.245-73  Revised...............................................34806
1852.247-71  Added.................................................34806
1852.249-72  Amended...............................................15418

[[Page 787]]

1852.250-70  Revised...............................................15418
1852.250-72  Revised...............................................15419
1853.201  Removed..................................................46773
1853.246  (a) amended..............................................46773
1870  Added........................................................15419
1870.103  Appendix I amended.......................................34807
Chapter 24
2401.601-70  Redesignated as 2401.601-71; new 2401.601-70 added....47396
2401.601-71  Redesignated as 2401.601-72; new 2401.601-71 
        redesignated from 2401.601-70..............................47396
2401.601-72  Redesignated as 2401.601-73; new 2401.601-72 
        redesignated from 2401.601-71..............................47396
2401.601-73  Redesignated as 2401.601-74; new 2401.601-73 
        redesignated from 2401.601-72..............................47396
2401.601-74  Redesignated from 2401.601-73.........................47396
2402.101  Amended..................................................47396
2413.404  Eff. 3-2-87...............................................3663
2433.000  Eff. 3-2-87...............................................3663
2433.104  Eff. 3-2-87...............................................3663
2433.104-70  Eff. 3-2-87............................................3663
2433.105  Eff. 3-2-87...............................................3663
Chapter 28
2801.31  (c) amendment confirmed...................................34390
2801.304  (b) amendment confirmed..................................34390
2801.403  (a) amendment confirmed..................................34390
2801.601  (c)(1)(i) introductory text amended; (c)(1)(i)(A) 
        revised....................................................32796
    (a) introductory text revision confirmed.......................34390
2801.602-70  Revision confirmed; (f) amended.......................34390
2801.603  Added....................................................32797
2804.601  (a) and (b) amendment confirmed..........................34390
2804.803-70  (b)(1) table, (2) table, (3) table and (4) table 
        revised.....................................................4320
    (b) (1) and (2) and (c) revision and (b)(3) addition confirmed
                                                                   34390
2804.7001--2804.7002 (Subpart 2804.70)  Revision confirmed.........34390
2806--2812 (Subchapter B)  Heading revision confirmed..............34390
2806  Addition confirmed...........................................34390
2806.501  (a) revised..............................................42295
2806.502  (b)(1) amended...........................................34390
2807.102  (b) amendment confirmed..................................34390
2807.7000--2807.7001 (Subpart 2807.70)  Added.......................4320
2808.802-70  Amendment confirmed...................................34390
2808.1102-70  Amended..............................................34390
2809.400  (b) amended..............................................34390
2809.470  (a)(4) amended...........................................34390
2810.007  Amendment confirmed......................................34390
2812.303 (Subpart 2812.3)  Added....................................4320
2814  Heading revision confirmed...................................34390
2814.000  Amendment confirmed......................................34390
2815.104--2815.105-70 (Subpart 2815.1)  Removal confirmed..........34390
2815.307 (Subpart 2815.3)  Removal confirmed.......................34390
2815.803-70  Amendment confirmed...................................34390
2827  Removed......................................................34390
2830.201-270  Amendment confirmed..................................34390
2831.101-70  (b) amendment confirmed...............................34390
2834  Addition confirmed...........................................34390
2834.002-70  (b)(1) and (e) amended; (f) added.....................34390
2835.003-70  (a) amendment confirmed...............................34390
2852.227-70--2852.227-74  Removed..................................34390

                                  1988

48 CFR
                                                                   53 FR
                                                                    Page
Chapter 15
1505.202  Revised..................................................31871
1506.302-5  Added..................................................31872
1515.413  Added....................................................38293
1515.604-70  (a) amended...........................................38293
Chapter 16
1602.170-9  Redesignated as 1602.170-10; new 1602.170-9 added......51783
1602.170-10  Redesignated as 1602.170-11; new 1602.170-10 
        redesignated from 1602.170-9...............................51783

[[Page 788]]

1602.170-11  Redesignated from 1602.170-10.........................51783
1632.111  Removed..................................................51784
1632.170--1632.172  Added..........................................51784
1652.232-70  Redesignated as 1652.232-72; new 1652.232-70 added....51784
1652.232-71  Added.................................................51784
1652.232-72  Redesignated from 1652.232-70.........................51784
Chapter 18
Chapter revised....................................................28186
1801.301--1801.303-70 (Subpart 1801.3)  Revised....................26932
1801.401  Revised..................................................26933
1801.602-3  Added..................................................13056
    Revised........................................................38414
1804.103  Revised..................................................51340
1804.170  (b) amended..............................................38414
1804.402  Revised..................................................38414
1804.404-70  Added.................................................51340
1804.671-8  Removed................................................26933
1804.676  Amended..................................................51340
1804.7102  Amended.................................................38414
1804.7102-4  (a) amended...........................................38414
1804.7103-2  Amended...............................................38414
1804.7401 (Subpart 1804.74)  Removed...............................51340
1805.303-71  (b)(1) amended........................................26933
    (b) (1) and (2) amended........................................38415
1807.101--1807.170-3 (Subpart 1807.1)  Revised.....................26933
1807.103  (a)(2)(vii) revised......................................38415
1807.7001 (Subpart 1807.70)  Added.................................38415
    (Subpart 1807.70)  Heading revised.............................51340
1807.7100--1807.7107 (Subpart 1807.71)  Revised....................26935
1807.7102  (c) revised.............................................13056
1807.7105  (a) amended.............................................13056
1807.7106  Introductory text and Table 7-1 heading revised.........13056
1808.002-76  Added.................................................51340
1808.303  Revised..................................................26936
1808.304-5  Revised................................................26937
1808.304-570  Revised..............................................26937
1808.304-572  (a)(2)(ii) and (4) amended...........................51340
1808.305  Amended..................................................51340
1808.309  (a) through (i) amended..................................51340
1808.705-4  Removed................................................26937
1808.711  Removed..................................................26937
1808.870  Added....................................................51340
1809.670 (Subpart 1809.6)  Added...................................51341
1810.011  Revised..................................................51341
1810.011-70  Added.................................................51341
1812.104-70  (d) and (e) added.....................................51341
1813.205  Revised..................................................51341
1814.201-6  Added..................................................51341
1814.201-670  Added................................................51341
1814.404-170  (b)(2) revised.......................................38415
1815.106  Removed..................................................51341
1815.106-2  Removed................................................51341
1815.406-2  Added..................................................51341
1815.406-4  Revised................................................51341
1815.406-5  Revised................................................51342
1815.407  (a) amended..............................................32902
1815.407-70  (a) revised...........................................13056
    (c) through (i) added..........................................51342
1815.412  Introductory text amended................................32902
1815.413-2  (c)(2) amended.........................................32902
    (b) revised....................................................52713
1815.502--1815.570 (Subpart 1815.5)  Revised.......................13056
1815.505-70  Amended...............................................32902
1815.506  (b) added................................................32902
1815.613-70  Amended...............................................32902
1815.613-71  (a)(1) introductory text revised......................13057
    Heading amended; (b) (1) and (2) revised.......................26937
    (a) revised....................................................38415
1815.708  Added....................................................51342
1815.708-70  Added.................................................51342
1815.1003 (Subpart 1815.10)  Heading revised.......................51342
1816.202  Added....................................................51342
1816.202-70  Added.................................................51342
1816.203-4  (a) introductory text, (1), and (2) and (g) amended....51342
1816.207  Added....................................................51342
1816.207-70  Added.................................................51342
1816.307  Revised..................................................51343
1816-307-70  Revised...............................................51343
1816.404  Added....................................................26937
1816.404-2  Added..................................................26937
1816.405  Revised..................................................51343
1816.405-70  Added.................................................51343
1816.603-4  Added..................................................51343
1816.603-470  Added................................................51343
1817.200--1817.208 (Subpart 1817.2)  Revised.......................26937
1817.204  (a) amended..............................................51343
1817.504  (a) amended..............................................32903
1819.001  Revised..................................................13058

[[Page 789]]

1819.170 (Subpart 1819.1)  Added...................................51343
1819.202-4  Added..................................................13058
1819.202-5  Removed................................................13058
1819.402  Removed..................................................13058
1819.470  Removed..................................................13058
1819.502-2  Removed................................................13058
1819.602-70  Revised...............................................13058
1819.708  Added....................................................51343
1819.708-70  Added.................................................51343
1819.809-1  Revised................................................13058
    Revised........................................................51344
1819.810  Removed..................................................13058
1822.302 (Subpart 1822.3)  Added...................................13058
1822.403-4--1822.406-13 (Subpart 1822.4)  Added....................13058
1822.608  Removed..................................................26938
1823.303-70  Revised...............................................51344
1823.7004  (e) and (f) added.......................................51344
1824  Revised......................................................26938
1824.102 (Subpart 1824.1)  Added...................................38415
1824.202 (Subpart 1824.2)  Added...................................38415
1825.101--1825.105 (Subpart 1825.1)  Revised.......................38415
1825.202--1825.205-70 (Subpart 1825.2)  Revised....................38417
1825.402  Revised..................................................13059
1825.405  Revised..................................................51344
1825.407  Added....................................................51344
1825.407-70  Added.................................................51344
1825.605  Added....................................................51344
1825.605-70  Added.................................................51344
1825.703  (a) and (b) designation removed..........................51344
1825.904  Added....................................................51344
1825.903-70  Redesignated as 1825.904-70...........................51344
1825.904-70  Redesignated from 1825.903-70.........................51344
1827.303  Added....................................................51344
1827.371  Revised..................................................13059
1827.373  Heading, (a) (1) through (3) revised; (a)(4) added.......51344
1827.374-1  (f) removed; (g) and (h) redesignated as (f) and (g); 
        new (g) revised............................................13059
    (d) amended....................................................51345
1827.374-4  (a)(2) amended.........................................51345
1827.404  (e)(1) amended...........................................51345
1827.405  (a) (1) and (2) amended..................................51345
1827.409  (e), (f), (g) and (h) revised............................51345
1828.106-6  Added..................................................26938
1828.001  Added; interim...........................................45096
1828.101  Added....................................................51345
1828.101-70  Added.................................................51345
1828.305  (b)(2) and (ii) revised..................................51345
1828.309  Amended..................................................51345
1828.370  (a) revised; (c) added...................................51345
1828.372  Added....................................................38418
1828.373  Added; interim...........................................45096
1829.170  Removed..................................................13059
1829.203 (Subpart 1829.2)  Added...................................13059
    Revised........................................................38418
1830.7000--1830.7002-6 (Subpart 1830.70)  Added....................38418
1831.303 (Subpart 1831.3)  Removed.................................47956
1831.703 (Subpart 1831.7)  Removed.................................47956
1832.111-70  Revised...............................................13059
1832.172  Removed..................................................26938
1832.402  Revised..................................................26938
1832.502-4  Added..................................................38421
1832.502-470  Added................................................38421
1832.704  (b) revised..............................................38421
1832.705-270  (c) and (d) added....................................38421
1832.806 (Subpart 1832.8)  Removed.................................38421
1832.908 (Subpart 1832.9)  Added...................................13060
1833.103  Revised..................................................51346
1833.104  Revised..................................................51346
1835.016  Added....................................................32903
1835.016-70  Added.................................................32903
1835.071  Amended..................................................38421
1836.370  (b) amended..............................................13060
1836.570--1836.570-2 (Subpart 1836-5)  Added.......................51346
1837.110  Heading added............................................51346
1837.110-70  Added.................................................51346
1839.000  Removed..................................................26938
1842.202  (a)(2)(iv) removed; (a)(2) (v) through (viii) 
        redesignated as (a)(2) (iv) through (vii)38421
1842.202-70  (a) amended; (d) removed; (e) and (f) redesignated as 
        (d) and (e)................................................38421
1842.202-72  Added.................................................38421
1842.270  Added....................................................13060
    (b), (c), and (d) revised......................................26938
1842.803  (c)(5) amended...........................................51347
1842.7001--1842.7003 (Subpart 1842.70)  Revised....................51347
1842.7001  (a) revised.............................................26938
1845.106-70  Revised........................................38421, 38422

[[Page 790]]

1845.302-2  Revised................................................38423
1845.302-270  Removed..............................................38423
1845.406  Added....................................................38423
1845.502-70  Removed; new 1845.502-70 redesignated from 1845.502-
        71.........................................................38424
1845.502-71  Redesignated as 1845.502-70; new 1845.502-71 
        redesignated from 1845.502-72..............................38424
1845.502-72  Redesignated as 1845.502-71...........................38424
1845.604  Revised..................................................38424
1845.607  Revised..................................................38424
1845.607-70  Added.................................................38424
1845.607-71  Removed...............................................38424
1845.607-72  Removed...............................................38424
1845.7101  Amended.................................................26939
1846.270 (Subpart 1846.2)  Added...................................38424
1846.470 (Subpart 1846.4)  Added...................................38424
1846.674  Added....................................................38424
1847.305-70  Revised...............................................38424
1848  Revised......................................................51347
1849.101-70  (a) introductory text revised.........................13060
1849.505--1849.505-70 (Subpart 1845.5)  Revised....................38425
1849.603--1849.603-70 (Subpart 1849.6)  Revised....................38425
1851.7001--1851.7005 (Subpart 1851.70)  Removed....................13060
1852.102  Removed..................................................51348
1852.102-2  Removed................................................51348
1852.103  Revised..................................................26939
1852.103-70  (a) revised...........................................13060
    Revised........................................................51348
1852.203-70  Revised...............................................51348
1852.204-70  Revised...............................................51348
1852.204-71  Revised...............................................51348
1852.204-72  Revised...............................................51349
1852.204-73  Removed...............................................51349
1852.204-74  Added.................................................51349
1852.204-75  Added.................................................51349
1852.207-70  Added.................................................38426
1852.208-70  Added.................................................51349
1852.208-71  Added.................................................51349
1852.208-72  Added.................................................51349
1852.208-73  Added.................................................51349
1852.208-74--1852.208-77  Added....................................51350
1852.208-78--1852.208-80  Added....................................51351
1852.208-7002--1852.208-7012  Removed..............................51351
1852.208-81  Added.................................................51351
1852.208-83  Added.................................................51352
1852.209-70  Revised...............................................51352
1852.209-71  Revised...............................................51352
1852.209-72  Added.................................................51352
1852.210-70  Revised...............................................26939
    Revised........................................................51352
1852.210-71  Added.................................................51352
1852.210-72  Added.................................................51353
1852.210-75  Added.................................................51353
1852.212-13  Removed...............................................51353
1852.212-70  Revised...............................................51353
1852.212-72  Revised...............................................51353
1852.212-73  Added.................................................51353
1852.212-74  Added.................................................51354
1852.214-70  Added.................................................51354
1852.214-71  Added.................................................51354
1852.214-72  Added.................................................51354
1852.215-2  Removed................................................51354
1852.215-12  Removed...............................................51354
1852.215-70  Revised...............................................51354
1852.215-71  Revised...............................................51354
1852.215-73  Revised...............................................51354
1852.215-74  Added.................................................51354
1852.215-75  Added.................................................51355
1852.215-76  Added.................................................51355
1852.215-77  Added.................................................51355
1852.215-78  Added.................................................51355
1852.215-79  Added.................................................51355
1852.215-80  Added.................................................51355
1852.216-7  Amended................................................13060
    Removed........................................................51355
1852.216-13  Removed...............................................51355
1852.216-26  Removed...............................................13060
1852.216-70  Added.................................................51355
1852.216-71  Added.................................................51356
1852.216-72  Added.................................................51357
1852.216-73  Added.................................................51357
1852.216-74  Added.................................................51357
1852.216-75  Added.................................................51357
1852.216-76  Added.................................................51357
1852.216-7001--1852.216-7007  Removed..............................51357
1852.216-78--1852.216-80  Added....................................51357
1852.216-81--1852.216-87  Added....................................51358
1852.216-770  Removed..............................................13060
1852.217-70  Revised...............................................51359
1852.217-71  Removed...............................................26939
1852.217-72  Removed...............................................26939
1852.219-70  Added.................................................13060
1852.219-71  Added.................................................13061
1852.219-70--1852.219-71  Removed..................................51359
1852.219-72--1852.219-73  Added....................................51359
1852.222-70  Revised...............................................13061
1852.222-71  Revised...............................................13061
    Revised........................................................51359

[[Page 791]]

1852.223-70  Revised...............................................51359
1852.223-71  Revised...............................................51360
1852.223-72  Revised...............................................51360
1852.223-73  Revised...............................................51360
1852.225-71  Revised...............................................51360
1852.225-72  Revised...............................................51360
1852.225-73  Revised...............................................51360
1852.227-11  Removed...............................................51360
1852.227-14  Removed...............................................51360
1852.227-19  Removed...............................................51360
1852.227-70  Revised...............................................13061
1852.228-70  Revised...............................................51360
1852.228-71  Revised...............................................51362
1852.228-72  Revised...............................................51363
1852.228-73--1852.228-75  Added....................................38426
1852.228-73  Revised...............................................51364
1852.228-74  Revised...............................................51364
1852.228-75  Revised...............................................51364
1852.228-76  Added; interim........................................45096
1852.228-77  Added.................................................51364
1852.228-470  Removed..............................................51360
1852.232-1  Removed................................................13063
1852.232-2  Removed................................................13063
1852.232-4  Removed................................................13063
1852.232-7  Removed................................................13063
1852.232-10  Removed...............................................13063
1852.232-16  Removed...............................................13063
1852.232-22  Added.................................................38427
1852.232-25  Added.................................................13063
1852.232-71  Removed...............................................13063
1852.232-73  Removed...............................................13063
1852.232-74  Removed...............................................13063
1852.232-77  Introductory text revised.............................13063
1852.232-78  Removed...............................................13063
1852.232-79  Introductory text revised.............................13063
1852.232-81  Added.................................................38427
1852.232-82  Added.................................................38427
1852.232-1670  Removed.............................................13063
1852.235-72  Introductory text revised.............................13063
    Introductory text amended......................................26939
1852.236-72  Introductory text revised.............................13063
1852.236-73  Added.................................................51364
1852.236-74  Added.................................................51365
1852.237-70  Added.................................................51365
1852.242-70  Revised...............................................26939
1852.242-71  Added.................................................51365
1852.242-72  Added.................................................51365
1852.245-70  Revised...............................................13063
1852-245.71  Introductory text revised.............................13064
1852.245-72  Introductory text revised.............................13064
1852.245-75--1852.245-78  Added....................................38427
1852.245-79  Added.................................................38428
1852.245-80  Added.................................................38428
1852.246-70--1852.246-72  Added....................................38428
1852.246-73  Added.................................................38429
1852.247-72  Added.................................................38429
1852.247-73  Added.................................................38429
1852.250-70  Amended...............................................38429
    Introductory text amended......................................51365
1852.250-71  Amended...............................................38429
    Introductory text amended......................................51365
1852.251-70  Removed...............................................13064
1853.242-70  (f) added.............................................13064
1853.251  Removed..................................................13064
1870.103  Appendix I amended................................13064, 26940
1870.201--1870.203 (Subpart 1870.2)  Added.........................32905
1870.301--1870.303 (Subpart 1870.3)  Added.........................38429
Chapter 24
2401  Authority citation revised...................................46533
2401.403  Amended (effective date pending).........................46533
2401.601-70  Eff. 3-4-88............................................7187
2401.601-71  Eff. 3-4-88............................................7187
2401.601-72  Eff. 3-4-88............................................7187
2401.601-73  Eff. 3-4-88............................................7187
2401.602-3  Added (effective date pending).........................46533
2401.602-70  Removed (effective date pending)......................46533
2402.101  Eff. 3-4-88...............................................7187
    Amended (effective date pending)...............................46534
2406.304-70  (a)(1) amended (effective date pending)...............46534
2409  Authority citation revised...................................46534
2409.504  (a)(5) revised; (b) removed; (c), (d) and (e) 
        redesignated as (b), (c) and (d); new (b)(1) amended; new 
        (d) revised (effective date pending).......................46534
2409.508--2409.508-2  Added (effective date pending)...............46534
2412  Added (effective date pending)...............................46534
2413  Authority citation revised...................................46534
2413.107 (Subpart 2413.1)  Added (effective date pending)..........46535

[[Page 792]]

2413.505--2413.505-2 (Subpart 2413.5)  Added (effective date 
        pending)...................................................46535
2414.406-3  (e)(3) amended (effective date pending)................46535
2415.407  Added (effective date pending)...........................46535
2415.411  Added (effective date pending)...........................46535
2415.411-70  Added (effective date pending)........................46535
2416.405  Revised (effective date pending).........................46535
2416.504  Added (effective date pending)...........................46535
2417  Added (effective date pending)...............................46535
2419.503  (a) heading revised; (a) text amended (effective date 
        pending)...................................................46535
2422  Added (effective date pending)...............................46535
2424  Authority citation revised...................................46536
2424.202-70  Added (effective date pending)........................46536
2426  Added (effective date pending)...............................46536
2427  Added (effective date pending)...............................46536
2432  Revised (effective date pending).............................46536
2434  Added (effective date pending)...............................46537
2437.101--2437.110 (Subpart 2437.1)  Heading and sections added 
        (effective date pending)...................................46537
2442  Added (effective date pending)...............................46537
2446  Added (effective date pending)...............................46537
2451  Added (effective date pending)...............................46538
2452  Added (effective date pending)...............................46538
2453  Added (effective date pending)...............................46543
2470 (Subchapter U)  Removed (effective date pending)..............46544
Chapter 28
2801.301  (c) amended..............................................49665
2801.602-3  Added..................................................49665
2801.602-70  (a), (b), (c), and (d) revised........................49665
2801.603  (b)(2) amended...........................................49665
2804.70  Removed...................................................49665
2804.7001  (a) and (b) removed.....................................12421
    (a) and (b) correctly removed..................................12866
2804.7002  Revised.................................................12421
2806.501  (b) amended..............................................49666
2832.7000--2832.7001 (Subpart 2832.70)  Heading amended............12421
2832.7000  Revised.................................................12421
2832.7001  Revised.................................................12421
2832.7002  Removed.................................................12421
2845 (Subchapter G)  Added.........................................49666
2845  Added........................................................49666
2852.105-70  (b) amended...........................................49666
2852.232-70--2852.232-78  Removed..................................12422
2852.232-79  Amended...............................................49666

                                  1989

48 CFR
                                                                   54 FR
                                                                    Page
Chapter 15
1515.407  (a)(3) revised; (b) removed; (c) redesignated as (b); 
        eff. 10-15-89..............................................36980
1529  Added........................................................49998
1532.908 (Subpart 1532.9)  Added....................................9215
    Amended; interim...............................................40876
1532.70--1532.7003 (Subpart 1532.70)  Removed.......................9215
1552.215-75  Removed; eff. 10-15-89................................36980
1552.215-76  Introductory text and (q) revised; eff. 10-15-89......36980
1552.229-70  Added.................................................49998
1552.232-70  Revised................................................9215
    Amended; interim...............................................40876
1552.232-71--1552.232-72  Removed...................................9216
Chapter 18
1801.270  Revised..................................................53622
1801.270-4  Revised................................................10796
1801.271  Revised..................................................53622
1801.272  Added....................................................53622
1801.272-1  Added..................................................53622
1801.272-2  Added..................................................53622
1801.272-3  Added..................................................53622
1801.302  Added....................................................53622
1801.302-70  (a) and (b) amended...................................53622
1803.104  Added....................................................39360
1803.104-2  Added..................................................53623
1803.104-4  Added..................................................39360

[[Page 793]]

1803.104-5  Added..................................................39360
1803.104-6  Added..................................................39360
1803.104-7  Added..................................................39361
1803.104-9  Added..................................................39361
1803.104-11  Added.................................................39361
1803.104-12  Added.................................................39361
1804.103  Added....................................................39361
1804.404-70  Amended...............................................39361
1804.601  Amended..................................................53623
1804.602  Added....................................................39361
1804.603  Added....................................................39361
1804.671  Amended..................................................53623
1804.671-1  (a)(1)(v) added........................................39362
      Revised......................................................53623
1804.671-4  Revised................................................39362
    Revised........................................................53623
1804.671-5  Revised................................................39368
    Removed........................................................53630
1804.671-6  (d) revised............................................39369
1804.7102-7  (b)(2) revised........................................10796
    Revised........................................................39369
1805.207  Revised..................................................39369
1805.303-71  (b)(1) introductory text revised......................10796
1807.103  (b)(1) introductory text revised; (b)(2) removed; (b)(3) 
        redesignated as (b)(2).....................................10796
1807.170-1  Revised................................................10796
1807.7200--1807.7206 (Subpart 1807.72)  Added......................39370
1808.304-573  Added................................................53630
1809.106-70  (f)(2)(ii) amended....................................39370
1809.404  Revised..................................................39370
1809.405  Revised..................................................39370
1809.405-1  Revised................................................39370
1809.405-2  Revised................................................39371
1813.7101--1813.7107 (Subpart 1813.71)  Added......................53630
1814.201-2  Revised................................................39371
1814.202  Added....................................................53630
1814.202-7  Added..................................................53630
1815.402  Added....................................................53631
1815.413-2  (e) removed............................................39371
1815.613-70  Amended...............................................10798
1815.613-71  (a)(4) revised........................................10798
1815.805-5  (e) amended............................................53631
1815.806  Removed..................................................39371
1815.904  Removed..................................................53631
1815.1003--1815.1003-4 (Subpart 1815.10)  Revised..................10798
1816.203-4  (a) removed; (b) through (g) redesignated as (a) 
        through (f); new (a) amended...............................10798
1816-307-70  (c) amended...........................................10798
1817.200  Revised..................................................53631
1817.204  (a) revised..............................................53631
1819.170 (Subpart 1819.1)  Heading Revised.........................39371
1819.501  Revised..................................................53631
1819.505  (a) amended..............................................53631
1819.1005 (Subpart 1819.10)  Added.................................39371
1822.101-72  Added.................................................39371
1822.608-4  Added..................................................10799
1822.1000--1822.1051 (Subpart 1822.10)  Revised....................10799
    Removed........................................................21222
1822.1001--1822.1008 (Subpart 1822.10)  Revised....................39371
1823.7102  Revised.................................................10806
1824.103  Added....................................................39372
1825.1002--1825.1004 (Subpart 1825.10)  Added......................39372
1825.7100--1825.7105 (Subpart 1825.71)  Added; interim.............18113
1825.7104  (b) (2) and (3) corrected...............................19576
1827.372  (a)(1) revised; (h) and (i) redesignated as (i) and (j); 
        new (h) added..............................................39372
1827.373  (a) revised..............................................39372
1827.374-1  (a) through (g) redesignated as (b) through (h); new 
        (a) added..................................................39373
1827.374-2  Revised................................................39373
1827.407  Added....................................................39373
1827.670--1827.670-2 (Subpart 1827.6)  Added.......................39373
1828.001  Added.....................................................7037
1828.373  Added.....................................................7037
1832.702-70  (d) added.............................................53631
1832.705-2  Revised................................................10806
1832.705-270  (d) removed..........................................10806
1832.903--1832.970 (Subpart 1832.9)  Revised.......................53631
1832.908  Revised...........................................10806, 39373
1834.005-1  Added..................................................10807
1835.070  Heading revised..........................................10807
1836.602-70  (b) revised...........................................39373
1836.602-71  Revised...............................................39374
1836.609  Removed..................................................10807
1836.609-70  Removed...............................................10807
1837.101  Added..............................................5625, 10807
1837.110  Text added................................................5625
    Revised........................................................10807
1837.170  Added..............................................5625, 10807
1837.200--1837.205-73 (Subpart 1837.2)  Heading revised............39374
1842.202-71  Revised...............................................10807

[[Page 794]]

1842.7003  (b) revised; (c) added..................................39374
1843.205--1843.270 (Subpart 1843.2)  Revised.......................10807
1845.102  (c) added................................................39374
1845.102-70  Revised...............................................39374
1845.106  Revised..................................................10808
1845.106-70  Heading revised.......................................10808
1845.302-72  Added.................................................10808
1846.470  Amended..................................................10808
1847.305-70  (a) revised...........................................10808
1848.102--1848.104-2 (Subpart 1848.1)  Revised.....................10808
1848.201--1848.201-70 (Subpart 1848.2)  Revised....................10809
1850.402  Revised..................................................39374
1850.403-2  Revised................................................39375
1850.403-70  Revised...............................................39375
1850.403-370  Revised..............................................39375
1852.204-75  Revised...............................................39375
1852.214-71  Amended...............................................10809
1852.216-70--1852.216-71  Removed..................................10809
1852.216-72  Amended...............................................10809
1852.216-82  (a) revised...........................................10809
1852.222-40  Added.................................................10809
    Removed........................................................21222
1852.222-41  Added.................................................10809
    Removed........................................................21222
1852.222-43  Added.................................................10812
    Removed........................................................21222
1852.225-74  Added; interim........................................18114
1852.225-75  Added; interim........................................18114
1852.227-70  Amended...............................................53631
1852.227-73  Removed...............................................39375
1852.227-84  Revised...............................................53631
1852.227-87  Added.................................................39375
1852.228-76  Added..................................................7037
1852.232-22  Removed...............................................10813
1852.232-25  Removed...............................................10813
1852.232-75  Revised...............................................10813
1852.232-77  Revised...............................................10813
1852.232-80  Revised...............................................10813
1852.232-81  Revised...............................................10813
1852.232-82  Revised...............................................10814
1852.233-1  Removed................................................10814
1852.235-70--1852.235-72  Revised..................................10814
1852.236-70--1852.236-72  Revised..................................10814
1852.237-70  Introductory text amended.............................39376
1852.242-70  Revised...............................................10814
1852.242-72  Revised...............................................39376
1852.243-1--1852.243-3  Removed....................................10815
1852.243-70  Revised...............................................10815
1852.245-70  Revised...............................................10815
1852.245-71--1852.245-73  Revised..................................10816
1852.245-74  Added.................................................10819
1852.245-75  Revised...............................................10817
1852.245-77--1852.245-79  Revised..................................10817
1852.245-80  Revised...............................................10818
1852.246-70  Revised...............................................10818
1852.247-70--1852.247-71  Revised..................................10818
1852.247-70  Amended...............................................39376
1852.247-73  Revised...............................................10819
1852.249-72  Revised...............................................10819
1852.250-70  Amended...............................................39376
1852.250-71  Removed...............................................39376
1852.250-72  Amended...............................................53632
1852.252-70  Revised...............................................10819
1853.204-70  (b) revised...........................................39376
    Revised........................................................53632
1853.223  Removed..................................................10819
1870.401--1870.403 (Subpart 1870.4)  Added.........................53632
Chapter 24
2401.403  Amendment; eff. 3-3-89....................................8336
2401.602-3  Addition; eff. 3-3-89...................................8336
2401.602-70  Removal; eff. 3-3-89...................................8336
2402.101  Amendment; eff. 3-3-89....................................8336
2406.304-70  (a)(1) amendment; eff. 3-3-89..........................8336
2409.504  (a)(5) revision, (b) removal, (c) through (e) 
        redesignation as (b) through (d); new (b)(1) amendment; 
        new (d) revision; eff. 3-3-89...............................8336
2409.508--2409.508-2  Additions; eff. 3-3-89........................8336
2412  Addition; eff. 3-3-89.........................................8336
2413.107 (Subpart 2413.1)  Addition; eff. 3-3-89....................8336
2413.505--2413.505-2 (Subpart 2413.5)  Additions; eff. 3-3-89.......8336
2414.406-3  (e)(3) amendment; eff. 3-3-89...........................8336
2415.407  Addition; eff. 3-3-89.....................................8336
2415.411  Addition; eff. 3-3-89.....................................8336
2415.411-70  Addition; eff. 3-3-89..................................8336
2416.405  Revision; eff. 3-3-89.....................................8336
2416.504  Addition; eff. 3-3-89.....................................8336
2417  Addition; eff. 3-3-89.........................................8336
2419.503  (a) heading revision, (a) text amendment; eff. 3-3-89.....8336
2422  Addition; eff. 3-3-89.........................................8336

[[Page 795]]

2424.202-70  Addition; eff. 3-3-89..................................8336
2426  Addition; eff. 3-3-89.........................................8336
2427  Addition; eff. 3-3-89.........................................8336
2432  Revision; eff. 3-3-89.........................................8336
2434  Addition; eff. 3-3-89.........................................8336
2437.101--2437.110 (Subpart 2437.1)  Addition; eff. 3-3-89..........8336
2442  Addition; eff. 3-3-89.........................................8336
2446  Addition; eff. 3-3-89.........................................8336
2451  Addition; eff. 3-3-89.........................................8336
2452  Addition; eff. 3-3-89.........................................8336
2453  Addition; eff. 3-3-89.........................................8336
2470 (Subchapter U)  Removal; eff. 3-3-89...........................8336
Chapter 28
2801.404  Revised..................................................40877
2801.470  Added....................................................40877
2813.570  Added....................................................40878
2819.506 (Subpart 2819.5)  Added...................................40878

                                  1990

48 CFR
                                                                   55 FR
                                                                    Page
Chapter 15
1501.602-3  Added..................................................18340
1501.670  Removed..................................................18341
1501.670-6  (c) nomenclature change................................24579
1502.100  Amended..................................................24579
1503.301  Nomenclature change......................................24579
1503.408-1  Nomenclature change....................................24579
1503.409  Nomenclature change......................................24579
1503.502  Nomenclature change......................................24579
1506.202  Nomenclature change......................................24579
1510.007  Nomenclature change......................................24579
1510.011-73  Revised...............................................39622
1510.011-74--1510.011-77  Redesignated as 1510.011-75--1510.011-
        78; new 1510.011-74 added..................................39622
1513.404  Revised..................................................48623
1514.201-7  Added..................................................24579
1514.401-1  Revised................................................24579
1515.604  (a) amended..............................................24579
1515.609  (a) amended; (b) revised.................................24579
1515.612  (a)(1) introductory text, (i), (ii), and (iii), and (2) 
        introductory text revised..................................24579
1515.804-3  Nomenclature change....................................24579
1515.902  (c) nomenclature change..................................24579
1515.1003  Amended.................................................24579
1516.404-276  (a) nomenclature change..............................24579
1516.404-277  Nomenclature change..................................24579
1516.603--1516.603-3 (Subpart 1516.6)  Added.......................24580
1517.202  Nomenclature change......................................24579
1519.201-2  (c)(3) amended.........................................24579
1522.608-4  Nomenclature change....................................24579
1522.803  Nomenclature change......................................24579
1522.1306  Nomenclature change.....................................24579
1522.1403  Nomenclature change.....................................24579
1527.404 (Subpart 1527.4)  Subpart and section added...............48623
1527.7000--1527.7005 (Subpart 1527.70)  Removed....................48624
1530.304  Nomenclature change......................................24579
1531.101  Revised..................................................24580
1532.102  Nomenclature change......................................24579
1532.908  Revised..................................................38807
1533.209  Nomenclature change......................................24579
1536.209  Nomenclature change......................................24579
    Revised........................................................49283
1536.602-4  Revised................................................24580
1542.1202  (b) amended.............................................24580
1545.403  Nomenclature change......................................24579
1552.210-72  Amended...............................................39622
1552.210-73  Revised...............................................39622
1552.210-74--1552.210-77  Redesignated as 1552.210-75--1552.210-
        78; new 1552.210-74 added..................................39622
1552.215-76  Amended (OMB numbers).................................13535
1552.227-70  Removed...............................................48624
1552.227-71  Removed...............................................48624
1552.227-72  Removed...............................................48624
1552.227-73  Removed...............................................48624
1552.227-74  Removed...............................................48624
1552.227-75  Removed...............................................48624
1552.232-70  Amended........................................38807, 39622
Chapter 16
1602.170-2  Revised................................................27414
1602.170-6  Revised................................................27414
1602.170-11  Redesignated as 1602.170-12; new 1602.170-11 added....27414
1602.170-12  Redesignated from 1602.170-11.........................27414
1615.802  (b) revised..............................................27414

[[Page 796]]

1615.804-70  Revised...............................................27414
1615.804-71  Revised...............................................27414
1615.804-72  Added.................................................27415
1615.805-70  (c) redesignated as (d); new (c) added................27415
1616.102--1616.105 (Subpart 1616.1)  Nomenclature change...........27415
1616.270--1616.271 (Subpart 1616.2)  Nomenclature change...........27415
1622.103-70  Revised...............................................27415
1632.806-70 (Subpart 1632.8)  Added................................27415
1652.203-70  Revised...............................................27415
1652.204-70  Amended...............................................27415
1652.204-71  Revised...............................................27415
1652.215-70  Revised...............................................27415
1652.215-71  Revised...............................................27416
1652.216-70  Amended...............................................27416
1652.216-71  Revised...............................................27416
1652.222-70  Amended...............................................27417
1652.224-70  Amended...............................................27417
1652.232-72  Amended...............................................27418
1652.232-73  Added.................................................27418
1652.244-70  Amended...............................................27418
1652.246-70  Revised...............................................27418
1652.249-70  Amended...............................................27418
1652.370  Amended..................................................27418
Chapter 18
1803.602  Revised..................................................12174
1803.804--1803.806 (Subpart 1803.8)  Added.........................12174
1804.470  Added....................................................47478
1804.470-1  Added..................................................47478
1804.470-2  Added..................................................47478
1804.470-3  Added..................................................47478
1804.470-4  Added..................................................47478
1804.671-1  (a)(5) amended.........................................27088
1804.671-6  (e) amended............................................47478
1805.303-70  (a)(1) introductory text amended......................27088
1805.303-71  (a)(2), (b)(1) introductory text, (ii), and (2) 
        amended....................................................27088
1806.202-70  (a)(2)(i) and (3) amended.............................47478
1806.302-770  (c) amended..........................................27088
    (a) and (c) amended............................................47478
1806.304  (c) amended..............................................47478
1806.304-70  Removed...............................................12175
1807.103  (a)(1)(i)(B), (b)(1)(i), (A)(2), and (ii)(A)(2) amended 
                                                                   27088
    (a)(1)(i)(B) corrected.........................................39156
1807.7102  (b)(1)(ii) amended......................................27088
1807.7103-1  (a) revised...........................................12175
1809.106-70  (d)(1) and (j)(2)(iv) introductory text amended.......27088
1809.404  (b) amended..............................................27088
1810.011-70  (d) amended...........................................47478
    Corrected......................................................53153
1813.104  (c) amended..............................................47478
1813.204  Amended..................................................47478
1815.405-71  (b) amended...........................................47478
1815.506  (a)(3) amended...........................................27088
1815.609  Added....................................................47478
1815.804-3  Amended................................................47478
1815.807-71  Amended...............................................27088
1819.705-4  Added..................................................47478
1819.7101--1819.7103 (Subpart 1819.71)  Added......................47479
1819.801  Removed..................................................12175
1819.803  Removed..................................................12175
1819.804  Revised..................................................12175
1819.808  Removed..................................................12175
1819.809  Removed..................................................12175
1819.809-1  Removed................................................12175
1822.804-2--1822.870 (Subpart 1822.8)  Revised.....................12175
1822.1306  Amended.................................................27089
1825.108  Added....................................................12175
1825.402  Amended..................................................12175
1825.7004  Amended.................................................27089
1825.7005  (a) amended.............................................27089
1825.7100--1825.7105 (Subpart 1825.71)  Added......................12175
    Corrected......................................................38808
1827.373  (a)(2) revised...........................................27089
1827.409  (e), (f), and (g) revised................................27089
1835.016-70  (b)(3) amended........................................27089
1837.200--1837.205-71 (Subpart 1837.2)  Revised....................12176
1837.205  Revised..................................................47479
1839.7001  Revised.................................................12177
1839.7003-1  (d) amended...........................................12177
1839.7003-2  (c) amended...........................................12177
1839.7003-3  Revised...............................................12177
1839.7004  (a) removed; (b) and (c) redesignated as (a) and (b); 
        new (a) amended............................................12177
1839.7005  Revised.................................................12177
1839.7006  Revised.................................................12177
1842.102-70  Amended...............................................12177
1842.1004  Amended.................................................47479
1842.7002  (a) designation and (b) removed.........................27089
1843.205--1843.270 (Subpart 1843.2)  Revised.......................47479
1846.470--1846.470-2 (Subpart 1846.4)  Revised.....................27089

[[Page 797]]

1846.470  Revised...................................................9447
1852.204-76  Added.................................................47479
1852.208-81  Amended...............................................27089
1852.208-83  Amended...............................................12177
1852.210-75  Amended...............................................47479
1852.219-74  Added.................................................47479
1852.225-74  Added.................................................12178
    Corrected......................................................38808
1852.225-75  Added.................................................12178
    Corrected......................................................38808
1852.227-11  Added.................................................27089
1852.227-14  Added.................................................27089
1852.227-19  Added.................................................27090
    (a) amended....................................................47480
    Corrected......................................................53153
1852.227-86  Amended...............................................27090
1852.232-81  Amended...............................................27090
1852.242-71  Amended...............................................27090
1852.243-70  Revised...............................................47480
1852.246-71  Amended...............................................27090
1852.246-74  Added..................................................9447
    Revised........................................................27090
1852.246-75  Added.................................................27090
1852.250-72  Introductory text corrected...........................38808
1853.107  (a) amended..............................................47480
1853.215-2  Amended................................................27090
1870.303  Appendix I amended.......................................27090
1870.403  Appendix I amended.......................................47480
Chapter 28
2804.900--2804.970 (Subpart 2804.9)  Added.........................14094

                                  1991

48 CFR
                                                                   56 FR
                                                                    Page
Chapter 15
1501.670-1  Removed.................................................6288
1501.670-2  Removed.................................................6288
1501.670-3  Removed.................................................6288
1501.670-4  Removed.................................................6288
1501.670-5  Removed.................................................6288
1501.670-6  Removed.................................................6288
1501.670-7  Removed.................................................6288
1510.001  Added....................................................42236
1510.002  Added....................................................42236
1510.011-79  Added.................................................42236
1513.570  Revised..................................................32518
1516.301-70  Added; eff. 10-4-91...................................43711
1516.307  Existing text designated as (a); (b) added; eff. 10-4-91
                                                                   43711
1516.404-276  (a) amended...........................................6288
1537.200--1537.205 (Subpart 1537.2)  Revised........................5957
1552.210-79  Added.................................................42236
1552.216-74  Added; eff. 10-4-91...................................43711
Chapter 16
1631.205-41  Added.................................................57496
1652.216-71  (b)(2)(ii) amended; (b)(2)(iv)(B) revised.............57497
Chapter 18
1801.104-370  Revised..............................................48738
    (e) corrected..................................................56691
1801.302-70  (b) amended...........................................48738
1801.370  Added....................................................48738
1801.402  Amended..................................................12458
    Corrected......................................................15134
1801.471  (a)(1) amended...........................................12458
1803.101--1803.104-12 (Subpart 1803.1)  Revised.....................8719
1804.202  (a) amended.......................................12458, 48739
1804.470-2  Amended.................................................8720
1804.671-4  (qqq) amended...........................................8720
    (d) and (u) amended; (l) revised; (ll) and (tt) revised; (ccc) 
through (sss) redesignated as (ddd) through (ttt) and amended; new 
(ccc) added.................................................48739, 48740
1804.804-5  Revised................................................32115
1805.207  (b) amended...............................................8721
1806.302-4  Added...................................................8721
1806.302-470  Added.................................................8721
1806.304  (a) amended..............................................32115
    (a) revised....................................................48740
1807.170-1  (c) redesignated as (d); new (c) added.................48740
1807.170-2  Amended................................................48740
1807.7102  (a) amended.............................................32115
1808.304-573  Revised..............................................12458
1810.002  Text added...............................................48740
1812.302  (b) amended..............................................48740
1812.303-70  (c) amended...........................................48740
1814.404-170  (b) introductory text amended.........................8721
1815.613-70  Amended................................................8721
1815.804--1815.872 (Subpart 1815.8)  Revised.......................48740
1815.805-5  (b) revised.............................................8721
1815.872  (c)(1) and (2) corrected.................................56691
1815.902--1815.971 (Subpart 1815.9)  Revised.......................48743
1815.1003-4  (c) revised...........................................48746
1817.204  (a) amended..............................................48746
1819.170 (Subpart 1819.1)  Removed..................................8721

[[Page 798]]

1819.705-4  Heading revised; existing text designated as (a); (b) 
        added......................................................48746
1819.7001--1819.7004 (Subpart 1819.70)  Added......................48746
1825.102  (b)(1) revised; (b)(2) redesignated as (b)(2)(ii) 
        introductory text and republished; (b)(2)(i) added; (b)(3) 
        removed....................................................48747
    (b)(1) correctly revised; (b)(2) correctly redesignated as 
(b)(2)(ii) introductory text; (b)(2)(i) correctly added; (b)(3) 
correctly removed..................................................00000
    Corrected......................................................52213
1825.407  Removed..................................................32115
1825.407-70  Removed...............................................32115
1825.703  Amended..................................................32115
1825.901 (Subpart 1825.9)  Revised.................................48747
1825.903  Amended..................................................12458
1825.7100  Revised.................................................32115
1825.7101  Amended.................................................32115
1825.7104  Introductory text revised...............................32115
1825.7105  Revised.................................................32115
1825.7200 (Subpart 1825.72)  Added.................................12458
1827.404  (e)(1) amended...........................................12458
1827.406  (b)(1)(v) amended........................................12458
    (b)(1)(iv) and (v) amended.....................................48747
1828.311-2  Revised................................................12459
1832.402-1  Added..................................................48747
1832.410-70  (b) removed; (c) and (d) redesignated as (b) and (c); 
        new (c) revised............................................48747
1832.412-70  Added.................................................48747
1832.501-1  Added; interim.........................................63877
1832.503-4  Added; interim.........................................63877
1832.702-70  (e) added.............................................48747
1835.071  Revised..................................................12459
1836.702 (Subpart 1836.7)  Heading amended..........................8721
1837.110  Amended..................................................48748
1839  Revised......................................................32116
1839.7001  (b) corrected...........................................38485
1839.7003-2  (a) introductory text corrected.......................38485
1842.202  Revised..................................................32117
    (b) amended....................................................48748
1842.202-70  (a) revised...........................................32118
1842.708  Added....................................................12459
1842.708-70  Added.................................................12459
1842.708-71  Added.................................................12459
1842.708-72  Added.................................................12459
1842.7003  (c) revised.............................................48748
1845.302-71  (b) amended...........................................32119
1845.302-72  (b) amended...........................................32119
1846.270  (a) revised..............................................12459
1849.101-70  (a)(3) amended........................................12460
1849.102-70  (b) introductory text, (c) and (d) amended.............8721
1852.208-70  Introductory text amended.............................12460
1852.208-71  Introductory text amended.............................12460
1852.208-72  Introductory text amended.............................12460
1852.208-73  Introductory text amended.............................12460
1852.208-74  Introductory text amended.............................12460
1852.208-75  Introductory text amended.............................12460
1852.208-76  Introductory text amended.............................12460
1852.208-77  Introductory text revised.............................12460
1852.208-78  Amended...............................................12460
1852.208-79  Introductory text amended.............................12460
1852.208-80  Introductory text amended.............................32119
1852.208-81  Amended...............................................32119
1852.210-70  Introductory text amended.............................12460
1852.210-75  Amended...............................................12460
1852.215-79  Introductory text amended.............................12460
1852.216-76  Introductory text amended.............................12460
1852.216-83  Introductory text amended.............................12460
1852.219-72  Removed................................................8721
1852.219-76  Added.................................................48748
    (a) corrected..................................................56691
1852.223-70  Introductory text amended.............................12460
1852.225-72  Introductory text amended.............................12460
    Removed........................................................32119
1852.225-74  Amended...............................................32119
1852.225-75  Amended...............................................32119
1852.232-70  Added; interim........................................63877
1852.232-76  Added.................................................48748
1852.235-70  Amended...............................................48748
1852.242-70  Amended...............................................32119
1852.242-71  Introductory text amended.............................12460

[[Page 799]]

1852.243-70  Introductory text revised.............................12460
1852.246-70  Heading revised; text amended.........................12460
1852.250-70  Introductory text amended.............................12460
1853.204-70  (l) revised...........................................32119
1853.207  (a) and (b) amended.......................................8721
    (b) amended....................................................48748
1853.227  Removed..................................................48748
Chapter 19
Chapter 19  Temporary waiver.......................................22661
Chapter 28
2801.603  (c) heading revised; (c)(2)(ii), (3)(ii) and (4)(ii) 
        amended; (d) through (h) redesignated as (e) through (i); 
        new (d) and (f)(3) added...................................26340
2801.7001-701--2801.7001-703 (Subpart 2801.70)  Revised............37860
2803.408 (Subpart 2803.4)  Heading added...........................26341
2803.502 (Subpart 2803.5)  Heading added...........................26341
2804.903-70  (c) amended...........................................26341
2805.503-70  (d) amended...........................................26341
2806.302--2806.302-70 (Subpart 2806.3)  Added......................26341
2806.501  (a) amended..............................................26341
2815.805-570  Revised..............................................26341
2819.701--2819.702 (Subpart 2819.70)  Added........................26341
2870 (Subchapter I)  Added.........................................26342

                                  1992

48 CFR
                                                                   57 FR
                                                                    Page
Chapter 16
1602.170-9  Amended; interim.......................................14359
    Regulation at 57 FR 14359 confirmed............................54001
1605--1609  Designated as Subchapter B.............................54001
1609  Added; interim...............................................14359
    Regulation at 57 FR 14359 confirmed............................54001
1632.170  Revised; interim.........................................14360
    Regulation at 57 FR 14360 confirmed............................54001
1632.171  Revised; interim.........................................14360
    Regulation at 57 FR 14360 confirmed............................54001
1632.172  Revised; interim.........................................14360
    Regulation at 57 FR 14360 confirmed............................54001
1649.002-70  Revised...............................................19387
1652.216-71  (c)(3)4 Amended; interim..............................14360
    Regulation at 57 FR 14360 confirmed............................54001
1652.232-70  Heading and introductory text revised; interim........14360
    Regulation at 57 FR 14360 confirmed............................54001
1652.232-71  Heading and introductory text revised; (d) amended; 
        interim....................................................14361
    Regulation at 57 FR 14361 confirmed............................54001
1652.249-70  Amended...............................................19388
Chapter 18
1801.104-370  (a), (e), (f) and (g) amended........................40852
    (e) and (f) amended............................................58719
1801.270  Amended..................................................40852
1801.370  (a)(1)(i), (ii) and (b) amended............................832
    (a)(1)(ii), (iii), (2)(i) and (b) revised......................40852
    (a)(1)(ii) and (b) amended.....................................58719
1801.471  (a) revised..............................................40852
1803.804  (a) amended..............................................40853
1804.170  (b) amended..............................................58719
1804.202  (a) amended..............................................58719
1804.470-3  Existing text designated as (a); (b) added.............30909
    (a) amended....................................................40853
1804.470-4  Existing text designated as (a) and amended; (b) added
                                                                   30909
1804.601  Amended..................................................40853
1804.671-4  (k) and (w) amended....................................40853
    (ss) revised...................................................58719
1804.671-6  (e) amended............................................40853
    (d) revised....................................................58719
1804.671-7  Introductory text amended..............................58719
1804.676  Amended..................................................40853
1804.677  Added.....................................................3137
1804.677-1  Added...................................................3137
    (c) revised; interim...........................................60737
1804.677-2  Added...................................................3137
1804.677-3  Added...................................................3137
1804.677-4  Added...................................................3137
    (b) revised; interim...........................................60737
1804.677-5  Added...................................................3138
1804.677-6  Added...................................................3138

[[Page 800]]

    (n)(2), (4) and (q) revised; interim...........................60738
1805.202  Revised..................................................58719
1805.403-70  Amended...............................................40853
1806.202-70  (a)(2)(i) and (3) amended...............................832
1806.203  Added....................................................58719
1806.302-770  (a) and (c) amended....................................832
1806.303-1  (b) amended............................................40853
1806.304  (c) amended................................................832
1807.103  (a)(1)(ii) (C) through (G) redesignated as (a)(1)(ii)(D) 
        through (H); (a)(1)(i)(B) redesignated as new 
        (a)(1)(ii)(C); (b)(1)(ii)(B) (3) through (7) redesignated 
        as (b)(1)(ii)(B)(4) through (8); (b)(1)(ii)(A)(2) 
        redesignated as new (b)(1)(ii)(B)(3); new (a)(1)(i)(B) and 
        new (b)(1)(ii)(A)(2) added.................................58719
1807.7102  (b)(2) (iii) through (vii) redesignated as (b)(2) (iv) 
        through (viii); (b)(1)(ii) redesignated as new 
        (b)(2)(iii); new (b)(1)(ii) added..........................58719
1807.7204  Amended...................................................832
1807.7206  Amended...................................................832
    (b)(2) amended.................................................40853
1808.303  (a) amended..............................................40853
1808.304-571  Amended..............................................40853
1808.305  (a) introductory text and (b) amended....................40853
1808.307-70  Amended...............................................40853
1809.104-70  Added; interim.........................................8280
1809.105  Added....................................................58720
1809.106-70  (d)(1), (2) and (3) amended...........................40853
1809.404  (c) added................................................40853
1809.506  Redesignated from 1809.507; (a) and (b) amended..........58720
1809.507  Redesignated as 1809.506.................................58720
1809.508-2  Amended................................................58720
1812.104-70  (d) amended.............................................832
1813.104  (a) revised..............................................40853
1815.507  Removed..................................................58720
1815.613-71  (b)(5)(ii)(A) amended.................................40853
1815.804-3  (a) through (d) redesignated as (b) through (e); new 
        (a) added..................................................40853
    (d) amended....................................................40854
1815.807-72  (a) amended...........................................40854
1815.808  (b) amended................................................832
    (b) revised....................................................40854
1815.970  (e) amended................................................832
1815.970-2  (d) amended..............................................832
1815.970-3  (b) revised............................................40854
1816  Revised........................................................832
1816.207-70  (a) amended...........................................40854
1816.603-2  Correctly designated....................................4912
1817.7002-2  Amended...............................................58720
1817.7002-3  Amended...............................................58720
1819.505  (c) amended..............................................40854
1822.101-1  (b) amended............................................40854
1822.101-4  Amended................................................40854
1822.302  Amended  L40854
1822.403-4  Amended................................................40854
1822.404-3  Amended................................................40854
1822.406-2  Amended................................................40854
1822.406.8  Amended................................................40854
1822.406-9  Amended................................................40854
1822.406-11  Amended...............................................40854
1822.604-2  Amended................................................40854
1822.608.4  Amended................................................40854
1822.1001  Amended.................................................40854
1822.1003  Amended.................................................40854
1822.1007  (a) and (b) amended.....................................40854
1823.302  Heading revised; introductory text amended.................836
1823.303-70  Amended.................................................836
1823.370  Amended....................................................836
1823.7002  (c) amended...............................................836
1823.7004  (f) amended.............................................40854
1825.402  Amended..................................................40854
1825.402-70  Amended...............................................40854
1825.403-70  Amended...............................................40854
1825.901 (Subpart 1825.9)  Revised...................................836
1825.1002--1825.1004 (Subpart 1825.10)  Removed....................40854
1825.7002  Amended.................................................40855
1825.7003  Amended.................................................40855
1825.7006  (a) and (c) amended.....................................40855
1827.406  (b)(1)(v) revised........................................58720
1827.409  (i) added................................................58720
1827.670-2  Heading and text amended...............................40855
1828.106-1  Revised................................................58720
1828.202 (Subpart 1828.2)  Added...................................58720
1830.7001--1830.7002-2 (Subpart 1830.70)  Revised....................836
1831  Revised........................................................837
1831.205-70  Amended...............................................40855
    Amended........................................................58720

[[Page 801]]

1832.402--1832.412 (Subpart 1832.4)  Revised.........................838
1832.503-4  Heading revised........................................40855
1832.503-470  Added................................................40855
1832.702--1832.705-270 (Subpart 1832.7)  Revised.....................839
1832.903--1832.970 (Subpart 1832.9)  Revised.........................839
1833.103  (b) amended..............................................40855
1833.104  (a)(2) amended...........................................40855
1833.211  Amended..................................................40855
1833.211-70  Amended...............................................40855
1833.214  Redesignated as 1833.215.................................58720
1833.215  Redesignated from 1833.214...............................58720
1834  Revised; interim.............................................30910
1835.003-70  Amended...............................................58720
1835.070  (a) amended..............................................58720
1836.602-70  (b)(1) and (2) amended................................40855
1836.602-71  (b) amended...........................................40855
1837.205  (c) amended..............................................40855
1837.205-70  (a) and (b) amended...................................40855
1837.7000--1837.7001-4 (Subpart 1837.70)  Added....................58720
1839.7000--1839.7007 (Subpart 1839.70)  Revised....................58721
1842.101  Amended..................................................40855
1842.174  (b) amended..............................................40855
1842.202  (c) revised................................................839
1842.202-70  (f) added...............................................840
    (d) amended....................................................40855
    (a)(6)(iii) amended............................................58725
1842.705-70  (b) revised and (c) added...............................840
1842.801 (Subpart 1842.8)  Revised...................................840
1842.1008  Amended...................................................840
1842.7101 (Subpart 1842.71)  Added...................................840
1844.102  Revised....................................................841
1844.102-71  Heading and (a) amended.................................841
1844.302-70  Revised.................................................841
1844.302-71  Revised.................................................842
1844.304-70  Added...................................................842
1844.305  Added......................................................842
1844.307-70  Added...................................................842
1845.106-70  (e) added.............................................40855
1845.302-1  (a) revised............................................58725
1845.302-73  Added.................................................58725
1845.405  (b) amended..............................................40855
1845.407  (a) amended..............................................40855
1845.608-6  Amended................................................40855
1845.610-2  Amended................................................40855
1845.7203  Amended.................................................40855
1845.7205  (f)(1) and (i) amended..................................40855
1845.7213  (c)(1) amended..........................................40855
1849.110  Heading revised..........................................58725
1849.111-71  (a)(1) amended........................................40855
1851.102  (b) amended..............................................40855
1851.103  Revised..................................................40856
1852.000  Revised..................................................40856
1852.101  Heading revised; existing text designated as (a); (b) 
        and (c) added..............................................40856
1852.204-70  Amended........................................40856, 58725
1852.204-76  Amended...............................................30909
1852.204-77  Added.................................................30909
1852.204-78  Added.................................................30909
1852.208-83  Amended...............................................40856
1852.216-72  Revised.................................................842
1852.216-73  Revised.................................................842
1852.216-74  Revised.................................................842
1852.216-76  Revised.................................................843
1852.216-79  Revised.................................................843
1852.216-80  Revised.................................................843
1852.216-81  Amended...............................................40856
1852.216-82  Revised.................................................843
1852.216-83  Revised.................................................844
1852.216-84  Revised.................................................844
1852.216-85  Revised.................................................844
1852.216-86  Revised.................................................844
1852.216-87  Amended.................................................844
1852.223-73  Amended...............................................40856
1852.228-70  Amended...............................................40856
1852.228-76  Amended...............................................40856
1852.231-70  Redesignated from 1852.232-80 and revised...............844
1852.232-12  Redesignated from 1852.232-76 and revised...............844
1852.232-70  Amended...............................................40856
1852.232-75  Removed.................................................844
1852.232-76  Redesignated as 1852.232-12 and revised.................844
1852.232-80  Redesignated as 1852.231-70 and revised.................844
1852.232-81  Amended...............................................40856
1852.235-70  Revised...............................................58725
1852.242-72  Amended...............................................40856
1852.300--1852.301 (Subpart 1852.3)  Added.........................40856
1853.103  Amended..................................................40856
1853.204-70  Heading revised; (o) added.............................3139
    Heading revised................................................58726
1853.215-2  Revised..................................................844

[[Page 802]]

1853.242-70  (d) amended.............................................844
    (c) revised....................................................40856
1870.103  Appendix I amended.......................................40856
1870.303  Appendix I amended........................................3139
    Appendix I amended.............................................58726
    Amended........................................................40856
Chapter 20
Chapter 20  Established............................................29221
Chapter 20  Revised................................................61157
Chapter 24
2401  Authority citation revised...................................59787
2401.601-70  Revised...............................................59787
2401.601-71  Revised...............................................59787
2401.602-72  Removed; new 2401.602-72 redesignated from 2401.601-
        73 and revised.............................................59787
2401.601-73  Redesignated as 2401.601-72; new 2401.601-73 
        redesignated from 2401.601-74 and revised..................59787
2401.601-74  Redesignated as 2401.601-73...........................59787
2401.603-2  (c) revised............................................59787
2401.603-3  (b) amended............................................59787
2402  Authority citation revised...................................59787
2402.101  Amended..................................................59787
2403  Authority citation revised...................................59788
2403.303-70 (Subpart 2403.3)  Heading amended......................59788
2403.670  Added....................................................59788
2405  Authority citation revised...................................59788
2405.301 (Subpart 2405.3)  Added...................................59788
2406  Authority citation revised...................................59788
2406.304-70  Removed; new 2406.304-70 redesignated from 2406.304-
        71.........................................................59788
2406.304-71  Redesignated as 2406.304-70; new 2406.304-71 
        redesignated from 2406.304-72; (c) revised.................59788
2406.304-72  Redesignated as 2406.304-71...........................59788
2409  Authority citation revised...................................59788
2409.501  Removed..................................................59788
2409.502  Amended..................................................59788
2409.503  Added....................................................59788
2409.504  Introductory text revised................................59788
2413  Authority citation revised...................................59788
2413.505-2  (b) revised............................................59788
2414  Authority citation revised...................................59788
2414.406-3  Revised................................................59788
2415  Authority citation revised...................................59788
2415.407  (a) revised..............................................59788
2415.604  Revised..................................................59789
2415.608  (a) revised..............................................59789
2415.611  Removed..................................................59789
2415.611-70  Removed...............................................59789
2415.612  Redesignated from 2415.613 and revised...................59787
2415.612-70  Redesignated from 2415.613-70 and revised.............59789
2415.613  Redesignated as 2415.612; new 2415.613 added.............59789
2415.613-70  Redesignated as 2415.612-70; new 2415.613-70 added....59789
2415.613-71  Removed; new 2415.613-71 added........................59789
2415.613-72  Added.................................................59789
2416  Authority citation revised...................................59790
2416.504  Revised..................................................59790
2419  Authority citation revised...................................59790
2419.708 (Subpart 2419.7)  Added...................................59790
2425  Added........................................................59790
2426  Authority citation added.....................................59790
2426.201  Nomenclature change......................................59790
2428  Authority citation revised...................................59790
2428.203  Redesignated as 2428.204.................................59790
2428.203-70  Redesignated as 2428.204-70...........................59790
2428.204  Redesignated from 2428.203...............................59790
2428.204-70  Redesignated from 2428.203-70.........................59790
2432  Authority citation revised...................................59790
2432.402  Revised..................................................59790
2432.906  Added....................................................59790
2433  Authority citation revised...................................59790
2433.103  Revised..................................................59790
2433.103-70  Removed; new 2433.103-70 redesignated from 2433.103-
        71.........................................................59790

[[Page 803]]

2433.103-71  Redesignated as 2433.103-70...........................59790
2433.104  (f) redesignated as (g)..................................59790
2433.104-70  Removed...............................................59790
2436  Authority citation revised...................................59790
2436.602-2  (a) amended............................................59790
    (3) added......................................................59791
2436.602-4  Revised................................................59791
2436.602-5  Amended................................................59791
2437  Authority citation revised...................................59791
2437.110  (g) and (h) added........................................59791
2437.205 (Subpart 2437.2)  Heading revised.........................59791
2437.205  (b)(6) amended...........................................59791
2446  Authority citation revised...................................59791
2446.710 (Subpart 2446.7)  Added...................................59791
2452  Authority citation revised...................................59791
2452.203-70  Added.................................................59791
2452.203-71  Added (OMB number)....................................59791
2452.215-70  Amended (OMB number)..................................59791
2452.215-71  Amended...............................................59792
2452.216-75  Introductory text revised.............................59792
2452.219-70  Added.................................................59792
2452.237-76  Added (OMB number)....................................59793
2452.237-77  Added.................................................59793
Chapter 25
2509 (Subchapter B)  Added.........................................34881
2527.7001  Revised.................................................34882
2527.7002  Revised.................................................34882
Chapter 28
2801.270--2801.270-4 (Subpart 2801.2)  Added.......................24555
2801.2801.603(f)(1)introductory text revised; (f)(3)(v) added; (h) 
        removed; (i) redesignated (h)..............................24555
2803.101-3--2803.104-12 (Subpart 2803.1)  Revised..................24556
2803.804 (Subpart 2803.8)  Added...................................24556
2804.601  (b) revised..............................................24557
2804.803-70  (c) added.............................................24557
2804.7000 (Subpart 2804.70)  Added.................................24557
2805.201-70 (Subpart 2805.2)  Added................................24557
2805.302-70 (Subpart 2805.3)  Added................................24557
2806.303-2  Added..................................................24557
2806.304  Added....................................................24557
2807.103  Revised..................................................24558
2810.001  Added....................................................24558
2810.002  Added....................................................24558
2813.7001--2813.7002 (Subpart 2813.70)  Added......................24558
2817.200 (Subpart 2817.2)  Added...................................24559
2833.105-70 (Subpart 2833.1)  Added................................24559
2834.002-70  (c) removed; (d), (e) and (f) redesignated as (c), 
        (d) and (e)................................................24559

                                  1993

48 CFR
                                                                   58 FR
                                                                    Page
Chapter 15
1515.407  (a)(2) revised....................................45844, 45486
1552.215-73  Amended........................................45844, 45486
1552.215-74  Amended...............................................45846
Chapter 18
Chapter 18  Nomenclature change....................................51136
1801.104-370  (f) amended..........................................51136
1801.105  (a) revised (OMB numbers)................................51136
1801.370  (a)(1)(ii) revised.......................................51136
    (a)(2)(i), (5) and (6) amended; (b) revised....................51137
1801.602-3  (b) revised............................................51137
1801.603-2  (d)(2) amended.........................................51137
1803.705  (b) amended..............................................51137
1803.7001  (b) amended.............................................51137
1804.470-1  Revised................................................51019
1804.470-2  Revised................................................51019
1804.470-3  Revised................................................51019
1804.470-4  Revised................................................51019
1804.603  Removed..................................................51137
1804.671-4  (n) table amended......................................51137
1804.7005  Amended.................................................51137
1804.7102-4  (a) table amended.....................................51137
1804.7103-2  Table amended.........................................51137
1804.7202  Heading amended.........................................51137
1804.7203  (b) amended.............................................51137
1805.202  Existing text designated as (a); (b) added; interim......69246
1805.207  (a) table amended........................................51137
    (c) added......................................................59188

[[Page 804]]

1805.303-71  (b)(1) introductory text amended......................51137
1807.103  (a)(1) revised...........................................48975
    (b)(1)(i)(A)(2) removed; (b)(1)(i)(A)(3) and (4) redesignated 
as (b)(1)(i)(A)(2) and (3) and (b)(1)(i)(B)(3) through (7) 
redesignated as (b)(1)(i)(B)(4) through (8); new (b)(1)(B)(3) 
added..............................................................51137
    (b)(1)(i)(A)(3) and (4) amended................................51138
    (a)(1) and (b) revised; interim................................61629
1807.170-1  (a) revised; interim...................................58792
    (b)(11) amended; (d)(1)(i) revised; interim....................61630
1807.170-4  Added; interim.........................................61630
1807.7102  (b)(1)(iv) amended......................................51138
    (a) amended; interim...........................................61630
1807.7103-1  (b) amended; interim..................................61630
1807.7103-2  (a) amended; interim..................................61630
1807.7104  (b) heading amended.....................................51138
1807.7105  (b)(1) amended..........................................51138
    Removed; new 1807.7105 redesignated from 1807.7106 and 
revised; interim...................................................61630
1807.7106  (b) and (c) amended.....................................51138
    Redesignated as 1807.7105; new 1807.7106 redesignated from 
1807.7107; interim.................................................61630
1807.7107  Redesignated as 1807.7106; interim......................61630
1808.002-71  (c) amended...........................................51138
1808.307-71  Amended...............................................51138
1808.802--1808.870 (Subpart 1808.8)  Revised; interim..............47219
1809.408  Added....................................................51138
1809.507  Redesignated from 1809.508; heading revised..............51138
1809.507-2  Redesignated from 1809.508-2...........................51138
1809.508  Redesignated as 1809.507.................................51138
1809.508-2  Redesignated as 1809.507-2.............................51138
1812.103  Added....................................................51138
1812.104  Text added...............................................51138
1813.7104  (c) and (d) revised.....................................51138
1814.407  Added....................................................51138
1814.407-1  Added..................................................51138
1815.406  (c) and (d) added; interim...............................61630
1815.407-70  (j) and (k) added; interim............................61631
1815.413-2  Revised................................................51139
1815.611  Added....................................................54299
1815.613-71  (b)(5)(i) revised; (b)(6) removed; (b)(7) and (8) 
        redesignated as (b)(6) and (7).............................54299
    (b)(4) revised; interim........................................61631
1815.613-72  Heading revised; text redesignated as (a); (b) added; 
        interim....................................................61631
1815.805-5  Revised................................................51140
1815.1002  Added...................................................51141
1816.404  Revised..................................................52446
1816.405  Revised..................................................52449
1819.705-4  (b) revised............................................42879
1819.708-70  Heading revised; existing text designated as (a); (b) 
        added......................................................51141
1828.371  Revised; interim.........................................54050
1828.373  Removed; interim.........................................54051
1832.402-1  Amended................................................51141
1832.402-2  Added...................................................4086
1832.906  Added....................................................48615
1832.7001--1832.7008 (Subpart 1832.70)  Added.......................4086
1833.211  Revised; interim.........................................44462
    Regulation at 58 FR 44462 confirmed............................53138
1833.211-70  Revised; interim......................................44462
    Regulation at 58 FR 44462 confirmed............................53138
1834  Revised; interim.............................................58792
1834.005-1  (b)(3) corrected.......................................68687
1836.304  Added....................................................51141
1837.110  Revised..................................................44463
1837.170  Revised..................................................44463
1839.7003-4  (a)(6) added..........................................59189
1839.7008  Added...................................................59189
1842.172  Revised..................................................51141
1842.174  (b) introductory text amended............................51141
1842.202-70  (a)(3) introductory text and (d) amended..............51141
1842.1203  (a) amended.............................................51141
1843.205-70  (a) amended...........................................51141
1845.106-70  (e) introductory text amended.........................51141
1845.405  (b) and (c) introductory text amended....................51141
1845.407  (a) introductory text amended............................51141
1845.608-6  Amended................................................51141
1845.7101-1  (e) introductory text amended.........................51141

[[Page 805]]

1845.7203  Amended.................................................51141
1845.7205  (f)(1) and (i) amended..................................51141
1845.7213  (c)(1) introductory text amended........................51141
1851.102  (b) amended..............................................51141
1852.107-70  Removed...............................................51142
1852.204-76  Revised...............................................51019
1852.204-77  Revised...............................................51020
1852.204-78  Revised...............................................51020
1852.208-81  Revised; interim......................................47220
1852.215-70  Amended; interim......................................61631
1852.215-76  Heading amended.......................................51142
1852.215-81  Added; interim........................................61631
1852.215-82  Added; interim........................................61632
1852.215-83  Added; interim........................................61632
1852.216-76  Revised...............................................52449
1852.216-77  Added.................................................52449
1852.216-83  Amended...............................................52450
1852.216-84  Amended...............................................52450
1852.216-85  Revised...............................................52450
1852.216-88  Added.................................................52450
1852.219-73  Amended...............................................51142
1852.219-75  Added.................................................51142
1852.223-70  Amended...............................................51142
1852.228-72  Revised; interim......................................54051
1852.228-76  Revised; interim......................................54052
1852.228-78  Added; interim........................................54051
1852.232-83  Added..................................................4088
1852.232-84  Added..................................................4088
1852.234-70  Added; interim........................................58794
1852.234-71  Added; interim........................................58794
1852.237-71  Added.................................................44463
1852.239-70  Added.................................................59189
    Corrected......................................................62556
1852.243-70  Amended...............................................51142
1852.252-70  Removed...............................................51142
1853.204-70  Heading revised; (f) through (o) redesignated as (g) 
        through (p); new (f) added.................................51020
    (i) amended....................................................51142
1870.303 Appendix I amended........................................54300
    appendix I amended; interim......................61632, 61633, 61634
1870.501--1870.503 (Subpart 1870.5) Added; interim.................58795
1870.503  appendix I corrected.....................................68687
1871  Added; eff. in part to 6-30-97...............................54300
1871.102  (b) added (effective date pending).......................54301
Chapter 20
2001.602-3  (c) corrected...........................................8449
2009.570-2  Corrected...............................................8449
2012.104-70  (b)(1) amended........................................26253
2015.407-70  Revised...............................................26253
2015.604  (b) corrected.............................................8449
2015.605  Corrected.................................................8450
2015.611  Corrected.................................................8450
2015.670  Revised..................................................26254
2017.204  (b) amended..............................................47221
2027--2033 (Subchapter E)  Correctly designated....................12988
2030.201-5  Revised................................................26254
2052  Table of contents corrected...................................8450
2052.204-70  (d) revised...........................................47221
2052.212-72  Amended...............................................26254
2052.215-73  Redesignated as 2052.215-74; new 2052.215-73 added....26254
2052.215-74  Redesignated as 2052.215-75; new 2052.215-74 
        redesignated from 2052.215-73..............................26254
2052.215-75  Redesignated as 2052.215-76; new 2052.215-75 
        redesignated from 2052.215-74..............................26254
2052.215-76  Redesignated as 2052.215-77; new 2052.215-76 
        redesignated from 2052.215-75..............................26254
2052.215-77  Redesignated as 2052.215-78; new 2052.215-77 
        redesignated from 2052.215-76; (d)(1) amended..............26254
2052.215-78  Redesignated as 2052.215-79; new 2052.215-78 
        redesignated from 2052.215-77 and revised..................26254
2052.215-79  Redesignated as 2052.215-80; new 2052.215-79 
        redesignated from 2052.215-78..............................26254
2052.215-80  Redesignated as 2052.215-81; new 2052.215-80 
        redesignated from 2052.215-79..............................26254
2052.215-81  Redesignated as 2052.215-83; new 2052.215-81 
        redesignated from 2052.215-80..............................26254
2052.215-82  Redesignated as 2052.215-84; new 2052.215-82 added....26254
2052.215-83  Redesignated as 2052.215-85; new 2052.215-83 
        redesignated from 2052.215-81 and revised..................26254
2052.215-84  Redesignated as 2052. 215-86; new 2052.215-84 
        redesignated from 2052.215-82..............................26254
2052.216-74  (b)(2) corrected.......................................8450
2052.231-70  Corrected..............................................8450

[[Page 806]]

Chapter 21
Chapter 21  Established............................................40371
Chapter 24
2401.104-2  Heading and (b)(2) revised; eff. 10-25-93..............49437
2402.101  Amended; eff. 10-25-93...................................49437
2413.505-2  (a) removed; (b) redesignated as (a); eff. 10-25-93....49437
2414.406-4  Revised; eff. 10-25-93.................................49437
2414.407-70  Correctly designated; eff. 10-25-93...................49437
2415.407  (b) removed; eff. 10-25-93...............................49437
2415.604  (b) amended; eff. 10-25-93...............................49437
2419.201-70  Removed; eff. 10-25-93................................49437
2452.215-70  Corrected; eff. 10-25-93..............................49437
2452.237-73  Amended; eff. 10-25-93................................49437
Chapter 28
2801.601  Revised..................................................68774
2801.601-70  Removed...............................................68775
2801.602-70  Revised...............................................68775
2801.603  Revised..................................................68776
2802.102  (a) revised..............................................68778
2806.304  (a) amended..............................................68778
2806.501  (b) revised..............................................68779
2806.502  Revised..................................................68779
2807.102  (b) revised..............................................68779
2807.103  (a) revised..............................................68779
2807.7001  (b)(1) amended..........................................68779

                                  1994

48 CFR
                                                                   59 FR
                                                                    Page
Chapter 15
1501.301  Amended..................................................18976
1501.370  Revised (OMB numbers)....................................18619
    Heading revised; table amended (OMB numbers)...................32134
1501.602-3  (c)(2) and (3) amended.................................18976
1502.1  Revised....................................................18977
1503.301  Amended..................................................18976
1503.408-1  Amended................................................18976
1503.409  Amended..................................................18976
1503.502  Amended..................................................18976
1506.202  Amended..................................................18976
1509.170-4  (b)(1), (2), (3), (d), (e) and (f) amended.............18976
1509.505-70  Redesignated from 1509.506............................18619
1509.506  Redesignated as 1509.505-70; new 1509.506 redesignated 
        from 1509.507 and (b) amended..............................18619
    (b) amended....................................................18976
1509.507  Redesignated as 1509.506.................................18619
1509.507-1  Redesignated from 1509.508; heading revised, (a)(1) 
        and (b) amended; (c) removed...............................18619
1509.507-2  Added..................................................18619
1509.508  Redesignated as 1509.507-1; new 1509.508 redesignated 
        from 1509.509..............................................18619
1509.509  Redesignated as 1509.508.................................18619
1510.007  Amended..................................................18976
1510.011-80  Added.................................................18619
1512.104  (b) amended..............................................18619
1514.201-7  Amended................................................18976
1514.404-1  Amended................................................18976
1515.604  (a) amended..............................................18976
1515.608  (e) amended..............................................18976
1515.609  (b) amended..............................................18976
1515.610-70  (b) amended...........................................18976
1515.612  (a)(1) introductory text, (i), (ii) and (2) introductory 
        text amended...............................................18976
1515.804-3  Amended................................................18976
1515.902  (c) amended..............................................18976
1515.1003  Amended.................................................18976
1516.404-276  (a) introductory text amended........................18976
1516.404-277  Introductory text amended............................18976
1516.603-3  Amended................................................18976
1517.202  (a) amended..............................................18976
1522.608-4  Amended................................................18976
1522.803  Amended..................................................18976
1522.1306  Amended.................................................18976
1522.1403  Amended.................................................18976
1527.409  Added....................................................18620
1530.304  Amended..................................................18976
1531.101  Amended..................................................18976
1532.102  Amended..................................................18977
1533.209  Amended..................................................18977
1533.212  (a)(3) and (b)(4) amended................................18977
1536.201  (d) and (e) amended......................................18977
1536.209  (c) amended..............................................18977

[[Page 807]]

1536.602-2  Revised................................................18977
1536.602-4  Amended................................................18977
1542.705-1  (a) and (b)(1)(i) amended..............................18977
1542.708  (c) amended..............................................18977
1542.1202  (a) and (b) amended.....................................18977
1542.1203  (c) amended.............................................18977
1545.403  amended..................................................18977
1552.209-70  Introductory text amended.............................18620
1552.209-71  Amended...............................................18620
1552.209-72  Introductory text amended.............................18620
1552.209-73  Added.................................................18620
1552.209-74  Added.................................................18620
1552.210-80  Added.................................................18623
1552.212-71  Amended...............................................18624
1552.227-76  Added.................................................18624
1552.242-70  (a) amended...........................................18977
Chapter 16
1601  Technical correction.........................................28487
1601.102  Existing text designated as (a); (b) added...............14764
1602  Technical correction.........................................28487
1602.170-11  Revised...............................................14764
1609  Technical correction.........................................28487
1609.470--1609.471 (Subpart 1609.4)  Added.........................14764
1609.701  Redesignated as 1609.7001................................14764
1609.7001  Redesignated from 1609.701..............................14764
    (a)(7), (b)(7) and (8) added...................................14765
1615  Technical correction.........................................28487
1615.802  (a) and (c) redesignated as (a)(1) and (2); new (a)(1) 
        and (b)(3) revised; (b)(4) added...........................14765
1615.804-70  Revised...............................................14765
1632  Technical correction.........................................28487
1632.617  Revised..................................................14765
1633--1649 (Subchapter G)  Heading added...........................14765
1642  Added........................................................14765
    Technical correction...........................................28487
1646  Technical correction.........................................28487
1646.270 (Subpart 1646.2)  Added...................................14767
1646.301 (Subpart 1646.3)  Heading added...........................14767
1652  Technical correction.........................................28487
1652.000  Amended..................................................14767
1652.215-70  Heading revised; amended; interim.....................62346
1652.370  Table amended............................................14767
Chapter 18
1801.104-370  (d) amended..........................................46360
    (a) amended....................................................66268
1801.105  (a) table amended (OMB numbers)...................12193, 46358
1801.270  Amended..................................................66268
1801.271  (a)(1) amended; (a)(2) revised...........................66268
1801.272-1  Amended................................................66268
1801.302-70  (a) designation and (b) removed.......................46360
1801.370  (a)(1)(i), (ii), (iii), (2)(i), (iv), (5) and (b) 
        revised....................................................12193
    (a)(1)(i) table, (ii) table and (b) table amended..............21667
    Removed........................................................46360
1801.601--1801.670 (Subpart 1801.6)  Heading revised...............29961
1801.602-3  (b)(1) designation and (2) removed; (b)(i) through 
        (iv) redesignated as (b)(1) through (4)....................12194
1801.603-2  (d)(3) revised.........................................66268
1801.670  (b) amended..............................................21667
1802.101  Amended..................................................29961
1803.104-11  (b) amended...........................................66268
1803.804  (a) and (b) amended......................................66268
1804.402  Amended..................................................12194
1804.404-70  Amended...............................................12194
1804.601--1804.677-6 (Subpart 1804.6)  Table 1804-1 added..........12196
1804.601  Amended..................................................66268
1804.602  Amended..................................................66268
1804.671-3  Amended................................................12194
1804.671-4  Introductory text, (k), (n) table, (r), (s) and (u) 
        table amended; (v) through (y) and (z) through (ttt) 
        redesignated as (w) through (z) and (bb) through (vvv); 
        new (vv) revised; new (oo)(7) redesignated as (oo)(8); 
        (v), (aa) and new (oo)(7) added............................12194
    (k) and (zz)(3) amended........................................66268
1804.675  Removed; interim.........................................23801
1804.675-1  Removed; interim.......................................23801
1804.676  Table 1804-1 removed.....................................12195
1804.677  Removed..................................................10079
1804.677-1  Removed................................................10079
1804.677-2  Removed................................................10079
1804.677-3  Removed................................................10079
1804.677-4  Removed................................................10079
1804.677-5  Removed................................................10079
1804.677-6  Removed................................................10079
1804.7101  (a) amended.............................................66269
1804.7102  (a) table amended.......................................29961

[[Page 808]]

1804.7103-2  Table amended.........................................29961
1805.202  Regulation at 58 FR 69246 confirmed......................66268
1805.207  (a) amended..............................................29961
1805.303-71  (b) introductory text revised; (b)(1) amended.........29961
1806.303-270  Amended..............................................66269
1807.002-71  Added.................................................29963
1807.170-1  (a) amended............................................10080
    (d)(4) added; interim..........................................11200
    (b)(1)(iv) and (v) revised; (b)(1)(vi) added...................29963
    (b)(10)(i) revised.............................................46359
1807.170-2  Revised................................................29963
    Amended........................................................46359
1807.7102  (b) revised.............................................29961
    Revised........................................................66269
1807.7103-1  Revised...............................................66269
1807.7204  (b) amended.............................................66269
1808.405  (a) and (b) redesignated from 1808.405-1; new (a) 
        amended....................................................66269
1808.405-1  Heading removed; (a) and (b) redesignated as 1808.405 
        (a) and (b)................................................66269
1808.802  Amended..................................................12197
1808.1100  Revised.................................................12197
1809.200  Revised..................................................12197
1809.500--1809.507-2 (Subpart 1809.5)  Heading revised.............29961
1810.002  Amended..................................................12197
1810.002-71  Added.................................................29963
1812.302  (a) amended..............................................66269
1812.303-70  (e) amended...........................................66269
1814.201-70  Added.................................................21667
1814.406-3  (a) revised............................................12197
1814.406-4  (a) designation and (b) removed........................12197
1815.406  (c) amended..............................................11199
1815.406-5  (b)(1) revised.........................................12197
1815.406-70  (b)(5)(iii) revised...................................46359
1815.406-71  Added.................................................21667
1815.570  Revised..................................................12197
1815.610  Revised..................................................10081
1815.613-70  Revised...............................................10081
    (c) amended....................................................21667
1815.613-71  (a) revised...........................................10081
    (b)(4)(i) and (ii) amended.....................................11199
1815.804-3  (e)(3) amended; (e)(4) removed.........................29961
    (a)(4) and (d) amended.........................................66269
1815.805-5  (e) amended............................................66269
1815.807-70  (d)(1) revised........................................12197
    (c)(5) revised.................................................46359
1815.807-71  Amended...............................................29961
1815.807-72  (a) and (c) removed; (b) and (d) redesignated as (a) 
        and (b); new (a) revised...................................46360
1815.970-3  (b) amended............................................29961
1816.307-70  (h) added; interim....................................22521
1816.603-3  (a)(1) designation, (2), and (3) removed; (a) amended; 
        (a)(1)(i) through (xi) redesignated as (a)(1) through (11)
                                                                   12197
1817.504  (a) amended..............................................12197
1819.505-70  Added; interim........................................38131
    Regulation at 59 FR 38131 confirmed............................66268
1819.708-70  (b) amended...........................................66269
1822.103-4  Amended................................................29962
1822.406-13  Amended...............................................66269
1822.807  Amended..................................................66269
1822.870  (a) amended..............................................29962
1823.7002  (c) revised.............................................29962
1824.102  Revised..................................................12197
1824.202  (a) revised..............................................12197
1825.7100--1825.7105  (Subpart 1825.71) Removed....................29962
1825.604  (e) amended..............................................12197
1825.7003  Amended..........................................29962, 46360
1825.7004  Amended.................................................29962
1825.7005  (b) revised.............................................46360
1825.7200  Amended.................................................66270
1828.001  Removed..................................................65729
1828.371  Revised..................................................65729
1829.203  (a) amended..............................................66270
1831.205-18  Added; interim........................................22521
1831.205-670  Added................................................12198
1831.205-671  Added................................................12198
1832.402-1  Amended................................................12198
1832.702-70  (d) amended...........................................12198
1832.705-2  Removed................................................12198
1832.705-270  (b) amended..........................................12198
1833.103  (a) revised; (c) amended.................................66270
1834.000  Amended..................................................10080
1834.001  (b) amended..............................................10080
1834.005-1  (a) revised............................................10080
1835.003  (c) revised..............................................12198
1835.016-70  (b)(6) removed........................................66270
1837.101  Revised..................................................60917
1837.110  Revised..................................................60916
1837.200  Revised..................................................12198
1837.202-71  Amended...............................................66270
1839.7003-5  (a)(2) revised........................................29962
1842.101  Amended..................................................66270
1842.173  Amended..................................................12198
1842.202-72  Amended...............................................12198
1842.270  Revised..................................................21667

[[Page 809]]

1842.801  Revised..................................................38131
1842.1004  Amended.................................................66270
1842.1203  (a) introductory text and (c)(1) amended................66270
1842.1203-70  (c) amended..........................................66270
1842.7201--1842.7201 (Subpart 1842.72)  Added; interim.............23801
1843.101--1843.105 (Subpart 1843.1)  Added; interim................23803
    Redesignated as 1843.7001--1843.7005 Subpart 1843.70); interim
                                                                   29964
1843.101  Redesignated as 1843.7001; interim.......................29964
1843.102  Redesignated as 1843.7002; interim.......................29964
1843.103  Redesignated as 1843.7003; interim.......................29964
1843.104  Redesignated as 1843.7004; interim.......................29964
1843.105  Redesignated from 1843.7005; interim.....................29964
1843.7001--1843.7005 (Subpart 1843.70)  Redesignated from 
        1843.101--1843.105 (Subpart 1843.1); heading revised; 
        interim....................................................29964
1843.7001  Redesignated from 1843.101; interim.....................29964
1843.7002  Redesignated from 1843.102; interim.....................29964
1843.7003  Redesignated from 1843.103; interim.....................29964
1843.7004  Redesignated from 1843.104; interim.....................29964
1843.7005  Redesignated from 1843.105; interim.....................29964
1844.102-71  Removed...............................................46360
1844.305  Amended..................................................66270
1845.302-1  (c) added; interim.....................................13250
    Regulation at 59 FR 13250 eff. date corrected to 3-21-94.......27312
1845.302-70  (a) revised...........................................12198
1845.7101-3  (b) revised; interim..................................38937
1846.270  (a) amended..............................................12198
1847.200-70  Revised...............................................12199
1852.103  (a)(1) amended...........................................29962
1852.103-70  Example amended.......................................46360
    Amended........................................................66270
1852.204-70  Amended...............................................66270
1852.204-71  Removed; interim......................................23802
1852.204-72  Removed; interim......................................23802
1852.209-71  Introductory text revised.............................29962
1852.215-81  Amended...............................................11199
1852.216-77  (d) added.............................................21668
1852.216-89  Added; interim........................................22521
    Introductory text revised; interim.............................29964
1852.225-74  Removed...............................................29962
1852.225-75  Removed...............................................29962
1852.228-72  Revised...............................................65730
1852.228-76  Revised...............................................65730
1852.228-78  Revised...............................................65731
1852.231-71  Added.................................................12199
1852.234-70  Amended...............................................10080
1852.234-71  Amended...............................................10080
1852.237-71  Amended...............................................12199
    Revised........................................................60917
1852.242-70  Amended...............................................21668
1852.242-73  Added; interim........................................23802
1852.242-74  Added; interim........................................23802
1852.245-73  Amended; interim......................................38937
1853.103  Amended..................................................66270
1853.108  Amended..................................................66270
1853.204-70  Heading amended; (o) removed..........................10079
1853.242-72  Revised...............................................38132
1870.103  Appendix I amended................................12199, 66270
1870.303  Appendix I amended..................10079, 11200, 12199, 66270
1870.502  Amended..................................................10080
1870.503  Appendix I amended.......................................10081
1871  Revised......................................................59378
Chapter 19
1901.670  Removed..................................................40313
1901.670-1  Removed................................................40313
1901.670-2  Removed................................................40313
1901.670-3  Removed................................................40313
1901.670-4  Removed................................................40313
1901.670-5  Removed................................................40313
1903.000  Removed..................................................40313
1903.101--1903.103-2 (Subpart 1903.1)  Removed.....................40313
1903.203--1903.204 (Subpart 1903.2)  Removed.......................40313
1903.301 (Subpart 1903.3)  Removed.................................40313
1912  Removed......................................................40313
1913.106-70--1913.107 (Subpart 1913.1)  Removed....................40313
1913.201--1913.203-1 (Subpart 1913.2)  Removed.....................40313
1913.404--1913.405 (Subpart 1913.4)  Removed.......................40313
1919--1922 (Subchapter D)  Removed.................................40313

[[Page 810]]

1927--1932 (Subchapter E)  Removed.................................40313
1952.200  Removed..................................................40313
1952.210-70  Removed...............................................40313
1952.212-70  Removed...............................................40313
1952.222-70  Removed...............................................40313
1952.222-71  Removed...............................................40313
1952.222-72  Removed...............................................40313
1952.222-73  Removed...............................................40313
1952.222-74  Removed...............................................40313
1952.222-75  Removed...............................................40313
1952.222-76  Removed...............................................40313
1952.222-77  Removed...............................................40313
1952.222-78  Removed...............................................40313
1952.222-79  Removed...............................................40313
1952.222-80  Removed...............................................40313
1952.222-81  Removed...............................................40313
1952.222-82  Removed...............................................40313
1952.222-83  Removed...............................................40313
1952.227-70  Removed...............................................40313
1952.227-71  Removed...............................................40313
1952.227-72  Removed...............................................40313
1952.227-73  Removed...............................................40313
1952.227-74  Removed...............................................40313
1952.227-75  Removed...............................................40313
1952.232-70  Removed...............................................40313
1952.232-71  Removed...............................................40313
1952.232-72  Removed...............................................40313
1952.232-73  Removed...............................................40313
1952.232-74  Removed...............................................40313
1952.242-70  Removed...............................................40313
Chapter 28
2801.603-2  (d)(3) correctly revised...............................13661

                                  1995

48 CFR
                                                                   60 FR
                                                                    Page
Chapter 15
1501.101  Revised..................................................38505
1501.303  Removed..................................................38505
1501.304  Removed..................................................38505
1501.404  Removed..................................................38505
1501.602-3  (c)(2) revised.........................................38505
1503.101-3  Removed................................................38505
1503.103-2  Removed................................................38505
1503.203  Amended..................................................21993
    Removed........................................................38505
1503.301  Removed..................................................38505
1503.408-1  Removed................................................38505
1503.409  Removed..................................................38505
1503.502  Removed..................................................38505
1503.602  Revised..................................................38505
1503.603  Removed..................................................38505
1505.202  Revised..................................................38505
1505.270  (b) amended..............................................21993
1505.270  Removed..................................................38505
1505.271  Removed..................................................21993
1505.401  Removed..................................................38505
1505.502  Removed..................................................38505
1506.202  Removed..................................................38505
1506.301  Removed..................................................38505
1506.302  Removed..................................................38505
1506.302-1  Removed................................................38505
1506.303  Removed..................................................38505
1506.370  Removed..................................................38505
1506.372  Removed..................................................38505
1509.105-2  Removed................................................38505
1509.105-3  Removed................................................38505
1509.506  Removed..................................................38505
1509.508  Removed..................................................38505
1513.570  (c) revised..............................................21993
1514.205-1  Removed................................................38505
1514.404-1  Removed................................................38505
1514.406-3  Amended................................................21993
    Removed........................................................38505
1514.406-4  Removed................................................38505
1515.403  Removed..................................................38505
1515.506  Amended..................................................21993
1515.608  (b)(2) and (c)(2) removed; (b)(3), (c)(1) introductory 
        text, (i), (ii) and (iii) redesignated as (b)(2), (c) 
        introductory text, (1), (2) and (3); (b) introductory 
        text, new (2) introductory text and new (c) heading 
        revised....................................................38505
1515.610-70  Removed...............................................38505
1515.612  (a)(1) introductory text and (2) introductory text 
        amended....................................................21993
1515.804-3  Removed................................................38505
1515.1003  Removed.................................................38505
1516.404-270  Revised; eff. 10-20-95...............................43404
1516.404-271  Revised; eff. 10-20-95...............................43404
1516.404-272  Revised; eff. 10-20-95...............................43404
1516.404-273  Revised; eff. 10-20-95...............................43404
1516.404-274  Revised; eff. 10-20-95...............................43404
1516.404-275  Removed; eff. 10-20-95...............................43404
1516.404-276  Removed; eff. 10-20-95...............................43404
1516.404-277  Removed; eff. 10-20-95...............................43404

[[Page 811]]

1516.404-278  Removed; eff. 10-20-95...............................43404
1516.404-279  Removed; eff. 10-20-95...............................43404
1516.404-2710  Removed; eff. 10-20-95..............................43404
1516.405  Revised; eff. 10-20-95...................................43404
1517.202  Removed..................................................12713
1517.204  Added....................................................12713
1519.602-1  Removed................................................38505
1520.102  Removed..................................................38505
1520.303  Removed..................................................38505
1522.103-4  Removed................................................38505
1522.608-3  Amended................................................21993
    Removed........................................................38505
1522.608-4  Removed................................................38505
1522.608-6  Removed................................................38505
1522.1003  Revised.................................................21994
    Removed........................................................38505
1522.1306  Removed.................................................38505
1522.1403  Removed.................................................38505
1522.1406  Removed.................................................38505
1524.202  Removed..................................................38505
1525.102  Revised..................................................21994
    Removed........................................................38505
1530.304  Removed..................................................38505
1531.101  Removed..................................................38505
1532.102  Revised..................................................38505
1532.402  Removed..................................................38505
1532.407  Removed..................................................38505
1532.409-2  Removed................................................38505
1532.412  Removed..................................................38505
1533.209  Removed..................................................38505
1533.211  Removed..................................................38505
1536.203  Removed..................................................38505
1536.602-4  Removed................................................38505
1536.602-5  Removed................................................38505
1536.604  Removed..................................................38505
1536.605  Removed..................................................38505
1542.708  (a)(1) and (2) amended...................................21994
1545.403  Removed..................................................38505
1552.210-75  Introductory text amended.............................21994
1552.210-76  Introductory text amended.............................21994
1552.210-77  Introductory text amended.............................21994
1552.210-78  Introductory text amended.............................21994
1552.216-70  Revised; eff. 10-20-95................................43404
1552.216-75  Added; eff. 10-20-95..................................43404
Chapter 16
1604.7101 (Subpart 1604.71)  Added; interim........................16057
1652.204-72  Added; interim........................................16057
Chapter 18
1801.000  Revised..................................................40509
1801.101  Removed..................................................40509
1801.102  (a) and (b) revised......................................40509
    Redesignated as 1801.103.......................................47704
1801.103  Redesignated as 1801.104; new 1801.103 redesignated from 
        1801.102...................................................47704
1801.104  Redesignated as 1801.105; new 1801.104 redesignated from 
        1801.103...................................................47704
1801.104-1  (a)(3) revised.........................................40509
    Redesignated as 1801.105-1.....................................47704
1801.104-2  Revised................................................40509
    Redesignated as 1801.105-2.....................................47704
1801.104-3  Revised................................................40509
    Redesignated as 1801.105-3.....................................47704
1801.104-370  (a), (e) and (f) amended.............................16059
    Revised........................................................40509
    Redesignated as 1801.105-370...................................47704
1801.105  Revised (OMB numbers)....................................40509
    Redesignated as 1801.106; new 1801.105 redesignated from 
1801.104...........................................................47704
1801.105-1  Redesignated from 1801.104-1; (b) amended..............47704
1801.105-2  Redesignated from 1801.104-2...........................47704
1801.105-3  Redesignated from 1801.104-3...........................47704
1801.105-370  Redesignated from 1801.104-370.......................47704
1801.106  Redesignated from 1801.105...............................47704
1801.270--1801.272 (Subpart 1801.2)  Revised.......................40509
1801.301  (b) introductory text, (1) introductory text and (2)(i) 
        revised....................................................40510
1801.303  Revised..................................................40510
1801.400  Revised..................................................40510
1801.401  Removed..................................................40510
1801.402  Removed..................................................40510
1801.403  Removed..................................................40510
1801.404  Removed..................................................40510
1801.405  Removed..................................................40510
1801.470  Removed..................................................40510
1801.471  (a) and (b)(2) revised; (c) added........................40510
1801.602-3  (a) revised............................................47704

[[Page 812]]

1801.603-2  (d)(1) introductory text amended.......................16059
    Revised........................................................47704
1801.603-3  Removed................................................47705
1801.603-4  Removed................................................47705
1801.670  Revised..................................................47705
1801.703  Removed..................................................47705
1801.704  Amended..................................................47705
1801.770  Added....................................................47705
1802.101  (b) amended..............................................18033
1803.104-5  (c) introductory text revised; (c)(11) added...........47099
1803.104-11  (b) and (c) amended...................................40510
1803.303  (a) introductory text and (c) amended....................40510
1803.806  Amended..................................................40510
1804.601  Revised..................................................47705
1804.671  Revised..................................................47705
1804.671-1  Revised................................................47705
1804.671-2  Removed................................................47705
1804.671-4  Revised................................................47705
1804.671-6  Revised................................................47712
1804.672  Removed..................................................47712
1804.674  Removed..................................................47712
1804.676  Amended..................................................47712
1804.802--1804.805-70 (Subpart 1804.8)  Heading revised............16059
1804.805  Heading revised..........................................16059
1805.303-70  Redesignated as 1805.303-71; new 1805.303-70 added....14378
1805.303-71  Redesignated as 1805.303-72; new 1805.303-71 
        redesignated from 1805.303-70..............................14378
    (a)(1)(iv) amended.............................................14379
1805.303-72  Redesignated from 1805.303-71.........................14378
1806.303-1  (b) amended............................................16059
1808.002-71  Removed...............................................16059
1808.002-76  Removed...............................................16059
1808.301--1808.309 (Subpart 1808.3)  Removed.......................16059
1808.605  (c) amended..............................................40511
1808.705--1808.705-1 (Subpart 1808.7)  Heading revised.............16059
1808.705-1  (b) amended............................................16059
1809.104-70  Removed...............................................40511
1809.404  (a) and (c) amended......................................40511
1809.405  Amended..................................................40511
1809.405-1  (b) amended............................................40511
1809.405-2  Amended................................................40511
1809.406-3  Amended................................................40511
1809.407-3  Amended................................................40511
1809.408  (d) and (e) amended......................................40511
1809.470-1  Introductory text amended..............................40511
1809.470-3  Amended................................................40511
1810  Revised......................................................40511
1812.103  Amended..................................................47712
1812.302  (a) amended..............................................40512
    (b) revised....................................................47712
1812.303-70  (e) amended...........................................40512
1813.402  Redesignated from 1813.403...............................47712
1813.402-70  Redesignated from 1813.403-70; (b) amended............47712
1813.403  Redesignated as 1813.402; new 1813.403 redesignated from 
        1813.404; (b)(5) amended...................................47712
1813.403-70  Redesignated as 1813.402-70...........................47712
1813.404  Redesignated as 1813.403; new 1813.404 redesignated from 
        1813.405; (e)(3) amended...................................47712
1813.405  Redesignated as 1813.404.................................47712
1813.505-1  Redesignated from 1813.505-2; heading revised..........47712
1813.505-2  Redesignated as 1813.505-1.............................47712
1813.7003  (a) amended.............................................47712
1813.7104  (a) amended.............................................16059
1814.201-2  Removed................................................40512
1814.201-5  (a) revised; (b) removed; (c) redesignated as (b)......40512
1814.201-670  (b) and (c) amended; (d) revised.....................40513
1814.404-1  Revised................................................40513
1814.404-170  Removed..............................................40513
1814.406  Redesignated as 1814.407.................................47712
1814.406-3  (a) revised; (b) amended...............................40513
    Redesignated as 1814.407-3.....................................47712
1814.406-4  Introductory text amended; (c) removed.................40513
    Redesignated as 1814.407-4.....................................47712
1814.407  Redesignated as 1814.408; new 1814.407 redesignated from 
        1814.406...................................................47712
1814.407-1  (a) and (f) revised; (b) through (e) and (g) amended 
                                                                   40513
    Redesignated as 1814.408-1.....................................47712
1814.407-3  Redesignated from 1814.406-3; (a), (b) and (c) amended
                                                                   47712
1814.407-4  Redesignated from 1814.406-4 and amended...............47712

[[Page 813]]

1814.408  Redesignated from 1814.407...............................47712
1814.408-1  Redesignated from 1814.407-1...........................47712
1815.102--1815.170 (Subpart 1815.1)  Removed.......................40513
1815.405-1  Revised................................................40513
1815.405-70  Removed...............................................40513
1815.405-71  (b) introductory text amended.........................40513
1815.406  (b) revised..............................................40513
1815.406-5  (b)(1) removed; (b)(2) through (8) redesignated as 
        (b)(1) through (7); new (b)(8) added.......................40513
1815.412  Introductory text revised................................40514
    Heading revised................................................47712
1815.413  (b) amended..............................................47712
1815.502  Amended..................................................40514
1815.503  (a), (b) and (c) amended.................................40514
1815.504-70  Amended...............................................40514
1815.506  (a)(3) removed...........................................40514
1815.608-72  Added.................................................16064
1815.611  Revised..................................................40514
1815.613-71  (a) designation, heading and (b) removed..............40514
1815.804  Heading revised..........................................53879
    Heading correctly revised......................................56125
1815.804-1  Redesignated from 1815.804-3; heading, (a)(1), (2), 
        (b), (c), (d) and (e)(3) revised; (a)(3)(i) amended........53879
    Heading, (a), (b) and (c) correctly revised....................56125
1815.804-2  Added..................................................53879
    (b) correctly added............................................56126
1815.804-3  Redesignated as 1815.804-1.............................53879
1815.807-70  (d)(1) and (2) amended................................53879
1815.807-71  Amended...............................................53880
1815.807-72  (a) revised...........................................53880
1815.870-1  (a) revised; (b) amended...............................53880
1815.871  Removed..................................................16059
1815.872  Removed..................................................16059
1815.970-2  (f)(1) heading removed.................................53880
1815.970-3  (a) amended; (b) revised; (c) removed..................53880
1815.1002  Redesignated as 1815.1003...............................47712
1815.1003  Redesignated as 1815.1004; new 1815.1003 redesignated 
        from 1815.1002 and amended.................................47712
1815.1003-1  Redesignated as 1815.1004-1...........................47712
1815.1003-2  (a) introductory text revised.........................40514
    Redesignated as 1815.1004-2....................................47712
1815.1003-3  Redesignated as 1815.1004-3...........................47712
1815.1003-4  Redesignated as 1815.1004-4...........................47712
1815.1004  Redesignated from 1815.1003.............................47712
1815.1004-1  Redesignated from 1815.1003-1.........................47712
1815.1004-2  Redesignated from 1815.1003-2; (a) amended............47712
1815.1004-3  Redesignated from 1815.1003-3.........................47712
1815.1004-4  Redesignated from 1815.1003-4.........................47712
1815.7001--1815.7002 (Subpart 1815.70)  Added......................47100
1816.203-4  (c) amended............................................53880
1816.301  Removed..................................................16059
1816.301-3  Removed................................................16059
1816.403  Removed..................................................16059
1819.502-3  (a)(1) revised.........................................47712
1819.708-70  (b) amended...........................................53881
1819.7201--1819.7219 (Subpart 1819.72)  Added......................15500
1822.103-4  Revised................................................52121
1822.406-13  Amended...............................................40514
1822.804-2  Amended................................................40514
1822.807  Amended..................................................40514
1825.402-70  Removed...............................................37599
1825.901  Revised..................................................47713
1825.7002  Revised.................................................37599
1825.7003  Removed; new 1825.7003 redesignated from 1825.7004 and 
        revised....................................................37599
1825.7004  Redesignated as 1825.7003; new 1825.7004 redesignated 
        from 1825.7005 and revised.................................37599
1825.7005  Redesignated as 1825.7004...............................37599
1825.7006  Removed.................................................37599
1825.7200  Amended.................................................40514
1827.372  (a)(2), (3), (b)(1), (i)(1) and (2) amended..............40514

[[Page 814]]

1827.373  (f) removed; (g) redesignated as (f); (a)(1), (b) 
        introductory text, (c) introductory text, (1), (2), (d) 
        and new (f) amended........................................40514
1827.374-1  (a), (b) and (c) amended; (f) revised..................40514
    (g) amended....................................................40515
1827.374-3  (a) amended............................................40515
1827.375-1  (b)(1), (2)(ii) and (4) amended........................40515
1827.375-2  (a)(1) introductory text and (2) amended...............40515
1827.375-3  (a) introductory text, (e)(3) and (f) amended..........40515
1827.404  (e)(1), (3) and (g) amended..............................40515
    (d)(1) and (e)(1) revised; (e)(4) and (5) added................47311
1827.405  (a)(1) and (3) amended...................................40515
    (c) added......................................................47312
1827.406  (a), (b)(1) introductory text, (i), (ii), (iii), (v) and 
        (2) amended................................................40515
1827.409  (a), (b) and (e) through (i) amended.....................40515
1827.670-1  Amended................................................40515
1829.203  (a) amended..............................................40515
1831.101 (Subpart 1831.1)  Removed.................................40515
1831.205-32  Revised...............................................29505
1831.205-70  Revised...............................................29505
1832.402  (a)(1) amended...........................................16059
1833.103  (c) amended..............................................40515
1833.104  (a) revised..............................................40515
    (b)(1), (c)(1), (2), (d) and (e) amended.......................40516
1834.005-1  (k) removed; (l) redesignated as (k)...................47713
1835.003  (b) removed; (c) redesignated as (b) and amended.........40516
1835.003-70  Removed...............................................40516
1835.003-71  Removed...............................................40516
1835.015  (b) amended..............................................40516
1835.016-70  Revised...............................................40516
    (e)(9) amended.................................................47713
1835.070  (b) amended..............................................40518
1835.071  Removed..................................................40518
1836.304  Amended..................................................47713
1836.600  Removed..................................................16059
1836.600-70  Removed...............................................16059
1836.602-2  Revised................................................16059
1836.602-4  Revised................................................16060
1836.602-5  Revised................................................16060
    Heading revised................................................47713
1836.602-70  (b)(1) amended........................................16060
1836.602-71  (a)(1) revised; (a)(3) amended........................16060
1837  Technical correction.........................................11634
1837.000  Removed..................................................40518
1837.102  Added....................................................16064
1837.110  Revised..................................................16065
1837.170  Revised..................................................60916
1839.7001  (a) amended; (b) revised................................40518
1839.7003-1  (a)(2) and (c) revised................................40518
1839.7003-2  (b) introductory text revised; (b)(1) through (4) 
        removed; (b)(5), (6) and (7) redesignated as (b)(1), (2) 
        and (3); new (b)(1) amended................................40518
1839.7003-3  (e) revised...........................................40518
1839.7003-4  (a) introductory text revised; (a)(1) through (5) 
        removed; (a)(6) and (b) redesignated as (b) and (c)........40518
1839.7003-5  Revised...............................................40518
1839.7003-6  (b) and (c) revised...................................40519
1839.7004  Amended.................................................40519
1839.7006  (a) and (b) amended; (d) removed; (e), (f) and (g) 
        redesignated as (d), (e) and (f); new (d) and new (e) 
        revised....................................................40519
1841  Added........................................................16060
1842.101  Amended..................................................40519
1842.202-70  (d) amended...........................................16062
1842.7301 (Subpart 1842.73)  Added.................................16062
1845.106-70  (e) amended...........................................16063
1845.405  (b) amended..............................................16063
1845.407  (a) amended..............................................16063
1845.608-6  Amended................................................16063
1845.610-2  Amended................................................16063
1845.7203  Amended.................................................16063
1845.7205  (f)(1) and (i) amended..................................16063
1845.7213  (c)(1) introductory text amended........................16063
1846.470-1  Amended................................................40519
1846.470-2  (b) amended............................................40519
1846.670-1  (a), (b)(1) and (c) revised............................40519
1846.670-2  (a)(3) revised; (a)(4) removed.........................40519
1846.670-4  (c) revised............................................40519
1846.670-5  Revised................................................40519
1846.671  (a) revised..............................................40520

[[Page 815]]

1846.672-1  (a)(1), (r)(1)(i), (2) introductory text, (ii) and (w) 
        introductory text amended; (a)(4), (b), (c), (d)(1) 
        introductory text, (ii), (g)(1) and (h)(1) revised.........40520
1846.672-3  Introductory text revised..............................40520
1846.672-5  Introductory text revised..............................40520
1846.703-70  (b) and (c) revised...................................40520
1849.102-70  (a) revised; (b) introductory text, (c) and (d) 
        amended....................................................40520
1849.111-71  (a)(1) and (2)(ii) amended............................40520
1849.111-72  Amended...............................................40520
1849.111-74  Amended...............................................40520
1849.603-70  (d) introductory text, (1) and (2) revised............40520
1850.202  Revised..................................................18033
1850.402  Removed..................................................18033
1850.403-1  Revised................................................18033
1850.403-2  Revised................................................18033
1850.403-3  Removed................................................18034
1850.403-70  Removed...............................................18034
1850.403-370  Removed..............................................18034
1851.102  (b) amended..............................................16063
1852  Technical correction.........................................22095
1852.204-70  Removed...............................................47713
1852.208-70  Removed...............................................16063
1852.208-71  Removed...............................................16063
1852.208-72  Removed...............................................16063
1852.208-73  Removed...............................................16063
1852.208-74  Removed...............................................16063
1852.208-75  Redesignated as 1852.241-70...........................16063
1852.208-76  Removed...............................................16063
1852.208-77  Removed...............................................16063
1852.208-78  Removed...............................................16063
1852.208-79  Removed...............................................16063
1852.208-80  Removed...............................................16063
1852.208-83  Removed...............................................16063
1852.215-70  Amended...............................................53880
1852.215-84  Added.................................................47100
1852.219-75  Amended...............................................53881
1852.219-77  Added.................................................15503
1852.219-78  Added.................................................15503
1852.219-79  Added.................................................15503
1852.227-14  Amended...............................................47312
1852.227-15  Added.................................................47312
1852.227-70  Amended...............................................40521
1852.231-70  Revised...............................................29505
1852.237-72  Added.................................................16065
1852.241-70  Redesignated from 1852.208-75; introductory text 
        revised....................................................16063
1852.243-70  Amended...............................................53880
1852.246-72  Amended...............................................40521
1852.250-70  Removed...............................................18034
1852.250-72  Removed...............................................18034
1853.101  Amended..................................................40521
1853.103  Amended..................................................40521
1853.104  Amended..................................................40521
1853.105  Revised..................................................40521
1853.108  Amended..................................................40521
1853.204-70  Revised...............................................40521
1853.216-70  Revised...............................................40521
1853.242-70  Heading revised; (g) added............................40521
1853.242-71  Removed...............................................40521
    Redesignated from 1853.242-72..................................40522
1853.242-72  Redesignated as 1853.242-71...........................40522
1853.249  (b) revised..............................................40522
1870.000  Revised..................................................40522
1870.101--1870.102 (Subpart 1870.1)  Revised.......................40522
1870.102  appendix A amended.......................................53880
1870.102  appendix I amended.......................................47713
1870.103  appendix I amended.......................................16063
1870.202  (b) revised..............................................40535
1870.203  Revised..................................................40535
1870.303  appendix I amended.......................................47713
1871.000  Revised; eff. 10-1-95 through 6-30-97....................51368
1871.101  Amended; eff. 10-1-95 through 6-30-97....................51368
1871.103  Revised; eff. 10-1-95 through 6-30-97....................51368
1871.104  (a) revised; (g) and (h) added; eff. 10-1-95 through 6-
        30-97......................................................51369
1871.105  (d), (e) and (f) revised; eff. 10-1-95 through 6-30-97 
                                                                   51369
1871.301  Amended; eff. 10-1-95 through 6-30-97....................51369
1871.302  Revised; eff. 10-1-95 through 6-30-97....................51369
1871.401  Amended; eff. 10-1-95 through 6-30-97....................51369
1871.401-1  (b)(2) amended; eff. 10-1-95 through 6-30-97...........51369
1871.401-5  (b)(1) revised; eff. 10-1-95 through 6-30-97...........51369
1871.401-6  Added; eff. 10-1-95 through 6-30-97....................51369
1871.406  Heading revised; eff. 10-1-95 through 6-30-97............51369

[[Page 816]]

1871.406-1  Revised; eff. 10-1-95 through 6-30-97..................51370
1871.406-3  Revised; eff. 10-1-95 through 6-30-97..................51370
1871.406-4  Revised; eff. 10-1-95 through 6-30-97..................51370
1871.505  Revised; eff. 10-1-95 through 6-30-97....................51370
1871.506  Revised; eff. 10-1-95 through 6-30-97....................51370
1871.605  (a)(1) amended; eff. 10-1-95 through 6-30-97.............51370
Chapter 24
2401.601--2401.603-3 (Subpart 2401.6)  Heading revised; interim; 
        eff. 10-5-95...............................................46154
2401.601-73  Revised; interim; eff. 10-5-95........................46154
2401.602-3  Revised; interim; eff. 10-5-95.........................46154
2402.101  Amended; interim; eff. 10-5-95...........................46154
2404  Authority citation revised...................................46154
2404.805  Redesignated from 2404.805-1; heading and (a) revised; 
        interim; eff. 10-5-95......................................46155
2404.805-1 (Subpart 2404.8)  Heading revised; interim; eff. 10-5-
        95.........................................................46155
2404.805-1  Redesignated as 2404.805; interim; eff. 10-5-95........46155
2405  Authority citation revised...................................46155
2405.301 (Subpart 2405.3)  Removed; interim; eff. 10-5-95..........46155
2406  Authority citation revised...................................46155
2406.304-70  Revised; interim; eff. 10-5-95........................46155
2406.304-71  Removed; interim; eff. 10-5-95........................46155
2406.501  Revised; interim; eff. 10-5-95...........................46155
2413  Heading revised; interim; eff. 10-5-95.......................46155
2413.106-2  Redesignated from 2413.107 and revised; interim; eff. 
        10-5-95....................................................46155
2413.107  Redesignated as 2413.106-2; interim; eff. 10-5-95........46155
2413.402  Redesignated from 2413.403 and revised; interim; eff. 
        10-5-95....................................................46155
2413.403  Redesignated as 2413.402; new 2413.403 redesignated from 
        2413.404 and revised; interim; eff. 10-5-95................46155
2413.404  Redesignated as 2413.403; interim; eff. 10-5-95..........46155
2413.505-1  Redesignated from 2413.505-2 and revised; interim; 
        eff. 10-5-95...............................................46155
2413.505-2  Redesignated as 2413.505-1; interim; eff. 10-5-95......46155
2413.601 (Subpart 2413.6)  Added; interim; eff. 10-5-95............46155
2414  Authority citation revised...................................46155
2414.406-4  Revised; interim; eff. 10-5-95.........................46155
2415  Authority citation revised...................................46155
2415.407  (b) and (c) added; interim; eff. 10-5-95.................46155
2415.408  Removed; interim; eff. 10-5-95...........................46156
2415.411  Removed; interim; eff. 10-5-95...........................46156
2415.411-70  Removed; interim; eff. 10-5-95........................46156
2415.604  Revised; interim; eff. 10-5-95...........................46156
2415.605  Revised; interim; eff. 10-5-95...........................46156
2415.608  (a) revised; interim; eff. 10-5-95.......................46156
2415.609  Removed; interim; eff. 10-5-95...........................46156
2415.611  Added; interim; eff. 10-5-95.............................46156
2415.612  Removed; interim; eff. 10-5-95...........................46156
2415.612-70  Removed; interim; eff. 10-5-95........................46156
2415.613  (a) revised; interim; eff. 10-5-95.......................46156
2415.613-70  Revised; interim; eff. 10-5-95........................46156
2415.613-72  (a) revised; interim; eff. 10-5-95....................46156
2416  Authority citation revised...................................46156

[[Page 817]]

2416.301--2416.301-3 (Subpart 2416.3)  Removed; interim; eff. 10-
        5-95.......................................................46156
2426.101  Removed; interim; eff. 10-5-95...........................46156
2426.101--2426.103 (Subpart 2426.1)  Heading redesignated as 
        Subpart 2426.70 heading; interim; eff. 10-5-95.............46156
2426.102  Removed; interim; eff. 10-5-95...........................46156
2426.103  Removed; interim; eff. 10-5-95...........................46156
2426.202--2426.202-70 (Subpart 2426.2)  Removed; interim; eff. 10-
        5-95.......................................................46156
2426.701  Added; interim; eff. 10-5-95.............................46156
2426.702  Added; interim; eff. 10-5-95.............................46157
2426.703  Added; interim; eff. 10-5-95.............................46157
2428.204--2428-204-70 (Subpart 2428.2)  Removed; interim; eff. 10-
        5-95.......................................................46157
2429  Authority citation revised...................................46157
2429.101  Revised; interim; eff. 10-5-95...........................46157
2432.402  Revised; interim; eff. 10-5-95...........................46157
2432.906  Revised; interim; eff. 10-5-95...........................46157
2432.908  Revised; interim; eff. 10-5-95...........................46157
2436  Authority citation revised...................................46157
2436.602-2  (a) introductory text, (2) and (c) revised; (a)(3) 
        removed; interim; eff. 10-5-95.............................46157
2436.602-4  Revised; interim; eff. 10-5-95.........................46158
2437.205  Revised; interim; eff. 10-5-95...........................46158
2452.215-70  Revised; interim; eff. 10-5-95........................46158
2452.219-70  Amended; heading revised; interim; eff. 10-5-95.......46159
2452.226-70  Revised; interim; eff. 10-5-95........................46159
2452.232-70  Amended; interim; eff. 10-5-95........................46159
2452.232-71  Amended; interim; eff. 10-5-95........................46159
2452.237-77  Amended; interim; eff. 10-5-95........................46159
2453  Authority citation revised...................................46159
2453.213-71  Revised; interim; eff. 10-5-95........................46159
2453.213-72  Removed; interim; eff. 10-5-95........................46159
2453.237-70  Added; interim; eff. 10-5-95..........................46159
Chapter 28
2801.000  Removed..................................................40108
2801.270-2  Removed................................................40108
2801.270-4  Revised................................................40108
2801.304  (b) revised..............................................40108
2801.403  Revised..................................................40108
2801.470  Revised..................................................40109
2801.601--2801.603-4 (Subpart 2801.6)  Heading revised.............16065
2801.601  (d) revised..............................................16065
2801.602-3  Revised................................................40109
2801.602-70  (f) removed...........................................40109
2801.603  Revised..................................................16066
2801.670  Added....................................................16066
2801.7001-702  (d)(1) and (g) revised..............................40109
2802.000  Removed..................................................40109
2802.102  (f) through (m) redesignated as (g) through (n); new (f) 
        added; new (g) revised.....................................40109
2804.000  Removed..................................................40109
2804.800--2804.803-70 (Subpart 2804.8)  Removed....................40109
2804.900  Removed..................................................40109
2804.7000 (Subpart 2804.70)  Removed...............................40109
2805.101 (Subpart 2805.1)  Removed.................................40109
2805.502  (a) revised..............................................40109
2807.7000  Removed.................................................40109
2808.000  Removed..................................................40109
2808.102-80 (Subpart 2808.1)  Removed..............................40109
2809.400  Removed..................................................40109
2809.403  Removed..................................................40109
2809.405-2  Removed................................................40109
2809.471  Removed..................................................40109
2810.000  Removed..................................................40109
2812.000  Removed..................................................40109
2812.170  Revised..................................................40109
2813.570  Removed..................................................40110
2813.7002  (c) revised.............................................40110
2814.000  Removed..................................................40110
2814.401  Removed..................................................40110
2814.402  Removed..................................................40110

[[Page 818]]

2815.405  Revised..................................................40110
2815.804-370  Revised..............................................40110
2816.000  Removed..................................................40110
2816.601  Added....................................................40110
2816.602  Added....................................................40110
2816.603-370  Added................................................40110
2817.200 (Subpart 2817.2)  Removed.................................40110
2828.105  Removed..................................................40110
2829.000  Removed..................................................40110
2830.201-270  Revised..............................................40110
2832.000  Removed..................................................40110
2832.400  Removed..................................................40110
2832.7000  Removed.................................................40110
2833.000  Removed..................................................40110
2835.000  Removed..................................................40110
2845.000  Removed..................................................40110
2852.000  Removed..................................................40111
2852.100  Removed..................................................40111
2852.200  Removed..................................................40111
2870.000  Removed..................................................40111

                                  1996

  (Regulations published from January 1, 1996, through October 1, 1996)

48 CFR
                                                                   61 FR
                                                                    Page
Chapter 15
1501.370  Amended..................................................29316
1506.371  Removed..................................................47065
1509.503  Amended..................................................29316
1510.011-71  Removed...............................................29316
1510.011-72  Revised...............................................29316
1510.011-73  Removed...............................................29316
1510.011-74  Removed...............................................29316
1515.407  (a)(1) removed; (a)(2) and (3) redesignated as (a)(1) 
        and (2)....................................................47065
1515.604  (a), (c) and (d) revised.................................47065
1515.604-70  (c) added.............................................47066
1515.605  (a) and (b) revised; (c) added...........................47066
1515.608  (e) amended..............................................29316
    (a)(1), (b)(1)(ii) and (2)(i) revised; (a)(3) and (b)(3) 
added; (c) removed; (d) and (e) redesignated as (c) and (d)........47066
1515.609  (c) revised..............................................47067
1515.611  Revised..................................................47067
1515.612  (a)(1)(iii), (iv) and (v) revised; (c) added.............47067
1516.303  Added....................................................14504
1516.303-71  Added.................................................14504
1516.303-72  Added.................................................14504
1516.303-73  Added.................................................14504
1516.303-74  Added.................................................14505
1516.303-75  Added.................................................14505
1516.303-76  Added.................................................14505
1516.303-77  Added.................................................14505
1516.307  (c) added................................................14505
1516.370  Added....................................................14505
1523  Heading revised..............................................14506
1523.7000--1523.7003 (Subpart 1523.70)  Added......................14506
1528  Removed......................................................29493
1532.170  (b) revised; (c) removed.................................29316
1532.908  Revised..................................................29317
1534  Removed......................................................47065
1535.007  Revised..................................................14264
1535.007-70  (b) and (c) revised; (d), (e) and (f) added...........14265
1536.303--1536.303-70 (Subpart 1536.3)  Removed....................47065
1536.570  Removed..................................................47065
1542.705-1  Removed................................................47065
1545.502 (Subpart 1545.5)  Removed.................................47065
1552.210-71  Removed...............................................29317
1552.210-72  Revised...............................................29317
1552.210-73  Removed...............................................29317
1552.210-74  Removed...............................................29317
1552.210-79  (b), (c) and (d) revised; (e) and (f) removed.........33689
1552.215-70  Revised...............................................47067
1552.215-71  Revised...............................................47067
1552.215-72  Removed...............................................47068
1552.216-76  Added.................................................14505
1552.228-70  Removed...............................................29493
1552.228-71  Removed...............................................29493
1552.228-72  Removed...............................................29493
1552.228-73  Removed...............................................29493
1552.232-70  Revised...............................................29317
1552.235-72  Revised...............................................14265
1552.235-73  Added.................................................14265
1552.235-74  Added.................................................14265
1552.235-75  Added.................................................14265
1552.235-76  Added.................................................14266
1552.235-77  Added.................................................14266
1552.235-78  Added.................................................14266
1552.235-79  Added.................................................14267
1552.236-71  Removed...............................................47065
1552.239-103  Added................................................14507
1553.232-75  Revised...............................................29318
1553.232-76  Removed...............................................29318

[[Page 819]]

Chapter 16
1604.7101 (Subpart 1604.71)  Regulation at 60 FR 16057 confirmed 
                                                                   15198
1652.204-72  Revised...............................................15198
Chapter 18
1801  Revised......................................................40534
1802  Revised......................................................40537
1803  Revised......................................................40537
1804  Revised......................................................40539
1805  Revised......................................................40543
1806  Revised......................................................40545
1807  Revised......................................................47068
1808  Revised......................................................47073
1809  Revised......................................................47075
1810  Removed......................................................47077
1811  Added........................................................47078
1812  Revised......................................................47079
1814  Revised......................................................47079
1815.413-2  Revised.................................................5313
1815.970  (b) amended...............................................5314
1815.7002  Amended..................................................5314
1816.505  Added.....................................................5314
1819  Heading revised...............................................5314
1819.705-4--1819.708-70 (Subpart 1819.7)  Heading revised...........5314
1823.570--1823.570-4 (Subpart 1823.5)  Added........................7225
1823.7004  (c)(2), (3) and (4) revised..............................5314
1825.400  Added....................................................42395
1825.401  Added.....................................................6577
    Removed........................................................42395
1827.405  (c) revised...............................................5314
1828.202  Revised..................................................47081
1835.003  Revised...................................................5314
1835.004  Added....................................................47081
1837.204  Added.....................................................5314
1842.1305 (Subpart 1842.13)  Added.................................47081
1845.102-70  (a)(3) revised........................................47083
1845.106-70  (d) revised; (i) removed; (j) and (k) redesignated as 
        (i) and (j)................................................47083
1845.301  Amended..................................................47084
1845.407  Heading revised; introductory text, (a)(1) and (b) 
        amended....................................................47084
1845.501  Amended..................................................47084
1845.502-1  Amended................................................47084
1845.502-71  (e) heading revised...................................47084
1845.505-14  Revised...............................................47084
1845.7101  Amended.................................................47084
1845.7101-1  Revised...............................................47084
1845.7101-2  Revised...............................................47085
1845.7101-3  Revised...............................................47085
1845.7101-4  Revised...............................................47085
1845.7101-5  Revised...............................................47086
1845.7101-7  Removed...............................................47086
1845.7101-8  Removed...............................................47086
1845.7101-9  Removed...............................................47086
1852.000  Revised..................................................40547
1852.101--1852.104 (Subpart 1852.1)  Revised.......................40547
1852.203-70  Removed...............................................40548
1852.204-75  Revised...............................................40548
1852.204-76  Revised...............................................40548
1852.204-77  Removed...............................................40548
1852.204-78  Removed...............................................40548
1852.207-70  Removed........................................40548, 47081
1852.208-81  Revised...............................................40548
1852.209-70  Revised...............................................40548
1852.209-71  Revised...............................................40548
1852.209-72  Revised...............................................40548
1852.210-40  Removed...............................................47081
1852.210-71  Removed...............................................47081
1852.210-72  Removed...............................................47081
1852.210-75  Removed...............................................47081
1852.211-70  Added.................................................47081
1852.211-72  Added.................................................47081
1852.211-74  Added.................................................47081
1852.212-72  Removed...............................................47081
1852.212-73  Removed...............................................47081
1852.214-70  Revised...............................................47082
1852.214-71  Revised...............................................47082
1852.214-72  Revised...............................................47082
1852.223-70  Amended................................................5315
1852.223-74  Added..................................................7226
1852.227-15  Redesignated as 1852.227-17............................5315
1852.227-17  Redesignated from 1852.227-15..........................5315
1852.245-73  Revised...............................................47086
1852.245-78  Removed...............................................47086
1853.245  (a) revised..............................................47086
1871.103  (b) revised..............................................47082
1871.401-6  (a)(2) revised.........................................47082
Chapter 22
Chapter  22 Removed................................................54590
Chapter 23
Chapter  23 Established; eff. 10-28-96.............................50738
Chapter 24
2401.102  Redesignated as 2401.103.................................19470
2401.103  Redesignated as 2401.104; new 2401.103 redesignated from 
        2401.102...................................................19470

[[Page 820]]

2401.104  Redesignated as 2401.105; new 2401.104 redesignated from 
        2401.103...................................................19470
2401.104-2  Redesignated as 2401.105-2.............................19470
2401.105  Redesignated as 2401.106; new 2401.105 redesignated from 
        2401.104...................................................19470
2401.105-2  Redesignated from 2401.104-2...........................19470
2401.106  Redesignated from 2401.105...............................19470
2401.601--2401.603-3 (Subpart 2401.6)  Regulation at 60 FR 46154 
        confirmed..................................................19470
2401.602-3  Regulation at 60 FR 46154 confirmed....................19470
2401.673  Regulation at 60 FR 46154 confirmed......................19470
2402.101  Regulation at 60 FR 46154 confirmed......................19470
2404.805 (Subpart 2404.8)  Regulation at 60 FR 46155 confirmed.....19470
2404.805-1  Regulation at 60 FR 46155 confirmed....................19470
2405.301 (Subpart 2405.3)  Regulation at 60 FR 46155 confirmed.....19470
2406.304-70  Regulation at 60 FR 46155 confirmed...................19470
2406.304-71  Regulation at 60 FR 46155 confirmed...................19470
2406.501  Regulation at 60 FR 46155 confirmed......................19470
2409.507  Redesignated from 2409.508...............................19470
2409.507-1  Redesignated from 2409.508-1...........................19470
2409.507-2  Redesignated from 2409.508-2...........................19470
2409.508  Redesignated as 2409.507.................................19470
2409.508-1  Redesignated as 2409.507-1.............................19470
2409.508-2  Redesignated as 2409.507-2.............................19470
2411  Redesignated from Part 2412; heading revised.................19470
2411.104 (Subpart 2411.1)  Redesignated as 2411.404 (Subpart 
        2411.4)....................................................19470
2411.404 (Subpart 2411.4)  Redesignated from 2411.104 (Subpart 
        2411.1) and revised........................................19470
2412  Authority citation revised...................................19470
    Redesignated as Part 2411......................................19470
2413  Regulation at 60 FR 46155 confirmed..........................19470
2413.106-2  Regulation at 60 FR 46155 confirmed; revised...........19470
2413.107  Regulation at 60 FR 46155 confirmed......................19470
2413.402  Regulation at 60 FR 46155 confirmed......................19470
2413.403  Regulation at 60 FR 46155 confirmed......................19470
2413.404  Regulation at 60 FR 46155 confirmed......................19470
2413.505-1  Regulation at 60 FR 46155 confirmed; revised...........19470
2413.505-2  Regulation at 60 FR 46155 confirmed....................19470
2413.601 (Subpart 2413.6)  Regulation at 60 FR 46155 confirmed.....19470
2414.406  Redesignated as 2414.407.................................19470
2414.406-3  Redesignated as 2414.407-3.............................19470
2414.406-4  Regulation at 60 FR 46155 confirmed; redesignated as 
        2414.407-4.................................................19470
2414.407  Redesignated from 2414.406...............................19470
2414.407-3  Redesignated from 2414.406-3...........................19470
2414.407-4  Redesignated from 2414.406-4 and revised...............19470
2414.407-70  Redesignated as 2414.408-70...........................19471
2414.408  Added....................................................19471
2414.408-70  Redesignated from 2414.407-70.........................19471
2415.407  Regulation at 60 FR 46155 confirmed......................19470
    Revised........................................................19471
2415.408  Regulation at 60 FR 46156 confirmed......................19470
2415.411  Regulation at 60 FR 46156 confirmed......................19470
2415.411-70  Regulation at 60 FR 46156 confirmed...................19470
2415.413-1  Revised................................................19471
2415.413-2  Added..................................................19471
2415.604  Regulation at 60 FR 46156 confirmed......................19470
2415.605  Regulation at 60 FR 46156 confirmed......................19470

[[Page 821]]

    (c) and (e) redesignated as (d)(1) and (2).....................19471
2415.608  Regulation at 60 FR 46156 confirmed......................19470
    (a) revised....................................................19471
2415.609  Regulation at 60 FR 46156 confirmed......................19470
2415.611  Regulation at 60 FR 46156 confirmed......................19470
2415.612  Regulation at 60 FR 46156 confirmed......................19470
2415.612-70  Regulation at 60 FR 46156 confirmed...................19470
2415.613  Regulation at 60 FR 46156 confirmed......................19470
2415.613-70  Regulation at 60 FR 46156 confirmed...................19470
2415.613-72  Regulation at 60 FR 46156 confirmed...................19470
2415.1004  Redesignated as 2415.1005...............................19471
2415.1005  Redesignated from 2415.1004.............................19471
2416.301--2416.301-3 (Subpart 2416.3)  Regulation at 60 FR 46156 
        confirmed..................................................19470
2416.504  Redesignated as 2416.506.................................19471
2416.506  Redesignated from 24