[Title 48 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2017 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          

          Title 48

Federal Acquisition Regulations System


________________________

Chapters 3 to 6

                         Revised as of October 1, 2017

          Containing a codification of documents of general 
          applicability and future effect

          As of October 1, 2017
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 48:
          Chapter 3--Health and Human Services                       3
          Chapter 4--Department of Agriculture                      75
          Chapter 5--General Services Administration               147
          Chapter 6--Department of State                           283
  Finding Aids:
      Table of CFR Titles and Chapters........................     383
      Alphabetical List of Agencies Appearing in the CFR......     403
      List of CFR Sections Affected...........................     413

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

                     Cite this Code:  CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 48 CFR 301.101 
                       refers to title 48, part 
                       301, section 101.

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

[[Page v]]



                               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, 2017), 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.

PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of 
the revision date stated on the cover of each volume are not carried. 
Code users may find the text of provisions in effect on any given date 
in the past by using the appropriate List of CFR Sections Affected 
(LSA). For the convenience of the reader, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume. For changes to 
the Code prior to the LSA listings at the end of the volume, consult 
previous annual editions of the LSA. For changes to the Code prior to 
2001, consult the List of CFR Sections Affected compilations, published 
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.

``[RESERVED]'' TERMINOLOGY

    The term ``[Reserved]'' is used as a place holder within the Code of 
Federal Regulations. An agency may add regulatory information at a 
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used 
editorially to indicate that a portion of the CFR was left vacant and 
not accidentally dropped due to a printing or computer error.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed as 
an approved incorporation by reference, please contact the agency that 
issued the regulation containing that incorporation. If, after 
contacting the agency, you find the material is not available, please 
notify the Director of the Federal Register, National Archives and 
Records Administration, 8601 Adelphi Road, College Park, MD 20740-6001, 
or call 202-741-6010.

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 Authorities 
and Rules. A list of CFR titles, chapters, subchapters, and parts and an 
alphabetical list of agencies publishing in the CFR are also included in 
this volume.

[[Page vii]]

    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 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, 8601 Adelphi Road, College Park, MD 
20740-6001 or e-mail [email protected].

SALES

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ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, the LSA (List of 
CFR Sections Affected), The United States Government Manual, the Federal 
Register, Public Laws, Public Papers of the Presidents of the United 
States, Compilation of Presidential Documents and the Privacy Act 
Compilation are available in electronic format via www.ofr.gov. For more 
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Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-
mail, [email protected].
    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) World Wide Web 
site for public law numbers, Federal Register finding aids, and related 
information. Connect to NARA's web site at www.archives.gov/federal-
register.
    The e-CFR is a regularly updated, unofficial editorial compilation 
of CFR material and Federal Register amendments, produced by the Office 
of the Federal Register and the Government Publishing Office. It is 
available at www.ecfr.gov.

    Oliver A. Potts,
    Director,
    Office of the Federal Register.
    October 1, 2017.

                                
                                      
                            

  

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                               THIS TITLE

    Title 48--Federal Acquisition Regulations System is composed of 
seven 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 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, 2017.

    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).

    For this volume, Cheryl E. Sirofchuck was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of John 
Hyrum Martinez, assisted by Stephen J. Frattini.

[[Page 1]]



            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM




                  (This book contains chapters 3 to 6)

  --------------------------------------------------------------------
                                                                    Part

chapter 3--Health and Human Services........................         301

chapter 4--Department of Agriculture........................         401

chapter 5--General Services Administration..................         501

chapter 6--Department of State..............................         601

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                  CHAPTER 3--HEALTH AND HUMAN SERVICES




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

                          SUBCHAPTER A--GENERAL
Part                                                                Page
300

[Reserved]

301             HHS Acquisition Regulation System...........           5
302             Definitions of words and terms..............           6
303             Improper business practices and personal 
                    conflicts of interest...................           7
304             Administrative matters......................           8
           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
305             Publicizing contract actions................          11
306             Competition requirements....................          11
307             Acquisition planning........................          12
308             Required sources of supplies and services...          12
309             Contractor qualifications...................          13
310             Market research.............................          14
311             Describing agency needs.....................          14
312             Acquisition of commercial items.............          16
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
313             Simplified acquisition procedures...........          17
314             Sealed bidding..............................          17
315             Contracting by negotiation..................          17
316             Types of contracts..........................          20
317             Special contracting methods.................          20
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
319             Small business programs.....................          22
322             Application of labor laws to Government 
                    acquisitions............................          22
323             Environment, energy and water efficiency, 
                    renewable energy technologies, 
                    occupational safety, and drug-free 
                    workplace...............................          22
324             Protection of privacy and freedom of 
                    information.............................          23

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326             Other socioeconomic programs................          25
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
327             Patents, data, and copyrights...............          30
328

[Reserved]

330             Cost accounting standards...................          30
331             Contract cost principles and procedures.....          30
332             Contract financing..........................          31
333             Protests, disputes, and appeals.............          33
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
334             Major system acquisition....................          34
335             Research and development contracting........          34
336             Construction and architect-engineer 
                    contracts...............................          35
337             Service contracting--general................          36
339             Acquisition of information technology.......          37
                    SUBCHAPTER G--CONTRACT MANAGEMENT
342             Contract administration.....................          39
                     SUBCHAPTER H--CLAUSES AND FORMS
352             Solicitation provisions and contract clauses          40
353             Forms.......................................          69
                       SUBCHAPTERS I-L [RESERVED]
                   SUBCHAPTER M--HHS SUPPLEMENTATIONS
370             Special programs affecting acquisition......          70
371-399

[Reserved]

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                          SUBCHAPTER A_GENERAL



                           PART 300 [RESERVED]



PART 301_HHS ACQUISITION REGULATION SYSTEM--Table of Contents



             Subpart 301.1_Purpose, Authority, and Issuance

Sec.
301.101  Purpose.
301.103  Authority.
301.106  Office of Management and Budget approval under the Paperwork 
          Reduction Act.

Subpart 301.2 [Reserved]

                  Subpart 301.4_Deviations from the FAR

301.401  Deviations.

      Subpart 301.6_Career Development, Contracting Authority, and 
                            Responsibilities

301.602  Contracting officers.
301.602-3  Ratification of unauthorized commitments.
301.603  Selection, appointment, and termination of appointment of 
          contracting officers.
301.603-1  General.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



             Subpart 301.1_Purpose, Authority, and Issuance



301.101  Purpose.

    (a) The Department of Health and Human Services (HHS) Acquisition 
Regulation (HHSAR) establishes uniform HHS acquisition policies and 
procedures that implement and supplement the Federal Acquisition 
Regulation (FAR).
    (b)(1) The HHSAR contains HHS policies that govern the acquisition 
process or otherwise control acquisition relationships between HHS' 
contracting activities and contractors. The HHSAR contains--
    (i) Requirements of law;
    (ii) HHS-wide policies;
    (iii) Deviations from FAR requirements; and
    (iv) Policies that have a significant effect beyond the internal 
procedures of HHS or a significant cost or administrative impact on 
contractors or offerors.
    (2) Relevant internal procedures, guidance, and information not 
meeting the criteria in paragraph (b)(1) of this section are issued by 
HHS in other announcements, internal procedures, guidance, or 
information.



301.103  Authority.

    (b) The Assistant Secretary for Financial Resources (ASFR) 
prescribes the HHSAR 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. 121(c)(2)), as delegated by the Secretary).
    (c) The HHSAR is issued in the Code of Federal Regulations (CFR) as 
chapter 3 of title 48, Department of Health and Human Services 
Acquisition Regulation. It may be referenced as ``48 CFR chapter 3.''



301.106  Office of Management and Budget approval under the Paperwork
Reduction Act.

    (a) The Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.) 
imposes a requirement on Federal agencies to obtain approval from the 
Office of Management and Budget (OMB) before collecting the same 
information from 10 or more members of the public.
    (b) The following OMB control numbers apply to the information 
collection and recordkeeping requirements contained in this chapter:

------------------------------------------------------------------------
                 HHSAR Segment                       OMB Control No.
------------------------------------------------------------------------
311.7102.......................................                0990-0434
311.7202(b)....................................                0990-0434
311.7300.......................................                0990-0436
337.103(d)(3)..................................                0990-0430
337.103(d)(4)..................................                0990-0433
370.301........................................                0990-0431
370.401........................................                0990-0432
352.211-1......................................                0990-0434
352.211-2......................................                0990-0434
352.211-3......................................                0990-0436
352.227-11.....................................                0990-0419
352.227-14.....................................                0990-0419
352.227-71.....................................                0990-0430
352.237-72.....................................                0990-0433
352.237-73.....................................                0990-0431
352.270-4a.....................................                0990-0431
352.270-4b.....................................                0990-0431
352.270-10.....................................                0990-0431

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352.270-11.....................................                0990-0432
352.270-5a.....................................                0990-0432
352.270-5b.....................................                0990-0432
------------------------------------------------------------------------

Subpart 301.2 [Reserved]



                  Subpart 301.4_Deviations from the FAR



301.401  Deviations.

    Contracting officers are not permitted to deviate from the FAR or 
HHSAR without seeking proper approval. With full acknowledgement of FAR 
1.102(d) regarding innovative approaches, any deviation to FAR or the 
HHSAR requires approval by the Senior Procurement Executive (SPE).



      Subpart 301.6_Career Development, Contracting Authority, and 
                            Responsibilities



301.602  Contracting officers.



301.602-3  Ratification of unauthorized commitments.

    (b) Policy. (1) The Government is not bound by agreements with, or 
contractual commitments made to, prospective contractors by individuals 
who do not have delegated contracting authority. Unauthorized 
commitments do not follow the appropriate process for the expenditure of 
Government funds. Consequently, the Government may not be able to ratify 
certain actions, putting a contractor at risk for taking direction from 
a Federal official other than the contracting officer. See FAR 1.602-1. 
Government employees responsible for unauthorized commitments are 
subject to disciplinary action. Contractors perform at their own risk 
when accepting direction from unauthorized officials. Failure to follow 
statutory and regulatory processes for the expenditure of Government 
funds is a very serious matter.
    (2) The head of the contracting activity (HCA) is the official 
authorized to ratify an unauthorized commitment. No other re-delegations 
are authorized.
    (c) Limitations. (5) The HCA shall coordinate the request for 
ratification with the Office of General Counsel, General Law Division 
and submit a copy to the SPE.



301.603  Selection, appointment, and termination of appointment of
contracting officers.



301.603-1  General.

    (a) The Agency head has delegated broad authority to the Chief 
Acquisition Officer, who in turn has further delegated this authority to 
the SPE. The SPE has further delegated specific acquisition authority to 
the Operating and Staff Division heads and the HCAs. The HCA (non-
delegable) shall select, appoint, and terminate the appointment of 
contracting officers.
    (b) To ensure proper control of redelegated acquisition authorities, 
HCAs shall maintain a file containing successive delegations of HCA 
authority through the contracting officer level.



PART 302_DEFINITIONS OF WORDS AND TERMS--Table of Contents



    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                        Subpart 302.1_Definitions



302.101  Definitions.

    (a) Agency head or head of the agency, unless otherwise stated, 
means the Secretary of Health and Human Services or specified designee.
    (b) Contracting Officer's Representative (COR) is a Federal employee 
designated in writing by a contracting officer to act as the contracting 
officer's representative in monitoring and administering specified 
aspects of contractor performance after award of a contract or order. In 
accordance with local procedures, operating divisions (OPDIVs) or staff 
divisions (STAFFDIVs) may designate CORs for firm fixed-price contracts 
or orders. COR's responsibilities may include verifying that:
    (1) The contractor's performance meets the standards set forth in 
the contract or order;
    (2) The contractor meets the contract or order's technical 
requirements by

[[Page 7]]

the specified delivery date(s) or within the period of performance; and
    (3) The contractor performs within cost ceiling stated in the 
contract or order. CORs must meet the training and certification 
requirements specified in 301.604.
    (c) Head of the Contracting Activity (HCA) is an official having 
overall responsibility for managing a contracting activity, i.e. the 
organization within an OPDIV or STAFFDIV or other HHS organization which 
has been delegated broad authority regarding the conduct of acquisition 
functions.



PART 303_IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST
--Table of Contents



                        Subpart 303.1_Safeguards

Sec.
303.101  Standards of conduct.
303.101-3  Agency regulations.
303.104-7  Violations or possible violations of the Procurement 
          Integrity Act.

       Subpart 303.2_Contractor Gratuities to Government Personnel

303.203  Reporting suspected violations of the Gratuities clause.

Subpart 303.6_Contracts with Government Employees or Organizations Owned 
                          or Controlled by Them

303.602  Exceptions.

             Subpart 303.7_Voiding and Rescinding Contracts

303.704  Policy.

 Subpart 303.8_Limitation on the Payment of Funds to Influence Federal 
                              Transactions

303.808-70  Solicitation provision and contract clause.

      Subpart 303.10_Contractor Code of Business Ethics and Conduct

303.1003  Requirements.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                        Subpart 303.1_Safeguards



303.101  Standards of conduct.



303.101-3  Agency regulations.

    (a)(3) The HHS Standards of Conduct are prescribed in 45 CFR part 
73.



303.104-7  Violations or possible violations of the Procurement Integrity Act.

    (a)(1) The contracting officer shall submit to the head of the 
contracting activity (HCA) for review and concurrence the determination 
(along with supporting documentation) that a reported violation or 
possible violation of the statutory prohibitions has no impact on the 
pending award or selection of a contractor for award.
    (2) The contracting officer shall refer the determination that a 
reported violation or possible violation of the statutory prohibitions 
has an impact on the pending award or selection of a contractor, along 
with all related information available, to the HCA. The HCA shall--
    (i) Refer the matter immediately to the Associate Deputy Assistant 
Secretary--Acquisition (ADAS-A) for review, who may consult with the 
appropriate legal office representative and the Office of Inspector 
General (OIG) as appropriate; and
    (ii) Determine the necessary action in accordance with FAR 3.104-
7(c) and (d). The HCA shall obtain the approval or concurrence of the 
ADAS-A before proceeding with an action.
    (b) The HCA (non-delegable) shall act with respect to actions taken 
under the Federal Acquisition Regulation (FAR) clause at 52.203-10, 
Price or Fee Adjustment for Illegal or Improper Authority.



       Subpart 303.2_Contractor Gratuities to Government Personnel



303.203  Reporting suspected violations of the Gratuities clause.

    HHS personnel shall report suspected violations of the clause at FAR 
52.203-3, Gratuities, to the contracting officer, who will in turn 
report the matter to the Office of General Counsel (OGC), Ethics 
Division for disposition.

[[Page 8]]



Subpart 303.6_Contracts with Government Employees or Organizations Owned 
                          or Controlled by Them



303.602  Exceptions.

    The HCA (non-delegable) is the official authorized to approve an 
exception to the policy stated in FAR 3.601.



             Subpart 303.7_Voiding and Rescinding Contracts



303.704  Policy.

    (a) For purposes of supplementing FAR subpart 3.7, the HCA (non-
delegable) is the designee. Coordination with the Senior Procurement 
Executive is required.



 Subpart 303.8_Limitation on the Payment of Funds to Influence Federal 
                              Transactions



303.808-70  Solicitation provision and contract clause.

    The contracting officer shall insert the clause at 352.203-70, Anti-
lobbying, in solicitations and contracts that exceed the simplified 
acquisition threshold.



      Subpart 303.10_Contractor Code of Business Ethics and Conduct



303.1003  Requirements.

    (b) The contracting officer, when notified of a possible contractor 
violation, in accordance with FAR 3.1003(b), shall notify the OIG and 
the HCA.
    (c)(2) The contracting officer shall specify the title of HHS' OIG 
hotline poster and the Web site where the poster can be obtained in 
paragraph (b)(3) of the clause at FAR 52.203-14.



PART 304_ADMINISTRATIVE MATTERS--Table of Contents



                    Subpart 304.6_Contract Reporting

Sec.
304.602  General.
304.604  Responsibilities.

              Subpart 304.13_Personal Identity Verification

304.1300  Policy.

        Subpart 304.16_Unique Procurement Instrument Identifiers

304.1600  Scope of subpart.

Subpart 304.70 [Reserved]

     Subpart 304.71_Review and Approval of Proposed Contract Actions

304.7100  Policy.

  Subpart 304.72_Affordable Care Act Prevention and Public Health Fund_
                         Reporting Requirements

304.7200  Scope of subpart.
304.7201  Procedures.
304.7202  Contract clause.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                    Subpart 304.6_Contract Reporting



304.602  General.

    Follow internal department procedures for reporting information to 
the Federal Procurement Data System (FPDS) and for resolving technical 
or policy issues relating to FPDS contract reporting.



304.604  Responsibilities.

    The Department of Health and Human Services (HHS) acquisition 
officials and staff shall report their contract information in FPDS 
accurately and timely.



              Subpart 304.13_Personal Identity Verification



304.1300  Policy.

    To ensure compliance with Homeland Security Presidential Directive-
12: Policy for a Common Identification Standard for Federal Employees 
and Contractors (HSPD-12) and the Presidential Cross Agency Priority for 
strong authentication, contracting officers shall provide in each 
acquisition those HSPD-12 requirements necessary for contract 
performance.

[[Page 9]]



        Subpart 304.16_Unique Procurement Instrument Identifiers



304.1600  Scope of subpart.

    This subpart provides guidance for assigning identification numbers 
to solicitation or contract actions. The Senior Procurement Executive 
shall be responsible for establishing a numbering system within the 
department that conforms to Federal Acquisition Regulation (FAR) subpart 
4.16.

Subpart 304.70 [Reserved]



     Subpart 304.71_Review and Approval of Proposed Contract Actions



304.7100  Policy.

    In accordance with HHS delegated acquisition authority, the FAR, 
this regulation, internal policies and guidance, the head of the 
contracting activity (non-delegable) shall establish review and approval 
procedures for proposed contract actions to ensure that--
    (a) Contractual documents are in conformance with law, established 
policies and procedures, and sound business practices;
    (b) Contract actions properly reflect the mutual understanding of 
the parties; and
    (c) The contracting officer is informed of deficiencies and items of 
questionable acceptability, and takes corrective action.



  Subpart 304.72_Affordable Care Act Prevention and Public Health Fund_
                         Reporting Requirements



304.7200  Scope of subpart.

    This subpart implements Section 220 of Public Law 112-74, FY 2012 
Labor, HHS and Education Appropriations Act, which requires, semi-annual 
reporting on the use of funds from the Prevention and Public Health Fund 
(PPHF), Public Law 111-148, sec. 4002. Contractors that receive awards 
(or modifications to existing awards) with a value of $25,000 or more 
funded, in whole or in part, from the PPHF, shall report information 
specified in the clause at 352.204-70, Prevention and Public Health 
Fund--Reporting Requirements, including, but not limited to--
    (a) The dollar amount of contractor invoices;
    (b) The supplies delivered and services performed; and
    (c) Specific information on subcontracts with a value of $25,000 or 
more.



304.7201  Procedures.

    (a) In any contract action funded in whole or in part by the PPHF, 
the contracting officer shall indicate that the contract action is being 
made under the PPHF, and indicate which products or services are funded 
under the PPHF. This requirement applies whenever PPHF funds are used, 
regardless of the contract instrument.
    (b) To maximize transparency of PPHF funds that shall be reported by 
the contractor, the contracting officer shall structure contract awards 
to allow for separately tracking PPHF funds. For example, the 
contracting officer may consider awarding dedicated separate contracts 
when using PPHF funds or establishing contract line item number 
structures to prevent commingling of PPHF funds with other funds.
    (c) Contracting officers shall ensure that the contractor complies 
with the reporting requirements of 352.204-70. Upon receipt of each 
report, the contracting officer shall review it for completeness, 
address any clarity or completeness issues with the contractor, and 
submit the final approved report in Section 508 compliant format to an 
Assistant Secretary for Public Affairs point-of-contact for posting on 
HHS' PPHF Web site at http://www.hhs.gov/open/prevention/index.html no 
later than 30 days after the end of the reporting period. If the 
contractor fails to comply with the reporting requirements, the 
contracting officer shall exercise appropriate contractual remedies.
    (d) The contracting officer shall make the contractor's failure to 
comply with the reporting requirements a part of the contractor's 
performance information under FAR subpart 42.15.

[[Page 10]]



304.7202  Contract clause.

    Insert the clause at 352.204-70, Prevention and Public Health Fund--
Reporting Requirements, in all solicitations and contract actions funded 
in whole or in part with PPHF funds, except classified solicitations and 
contracts. This includes, but is not limited to, awarding or modifying 
orders against existing or new contracts issued under FAR subparts 8.4 
and 16.5 that will be funded with PPHF funds. Contracting officers shall 
include this clause in any existing contract or order that will be 
funded with PPHF funds. This clause is not required for any contract or 
order which contains a prior version of the clause at 352.204-70.

[[Page 11]]



            SUBCHAPTER B_COMPETITION AND ACQUISITION PLANNING





PART 305_PUBLICIZING CONTRACT ACTIONS--Table of Contents



                Subpart 305.3_Synopses of Contract Awards

Sec.
305.303  Announcement of contract awards.

                    Subpart 305.5_Paid Advertisements

305.502  Authority.

Subpart 305.70_Publicizing Requirements Funded From the Affordable Care 
                  Act Prevention and Public Health Fund

305.7001  Scope.
305.7002  Applicability.
305.7003  Publicizing preaward.
305.7004  Publicizing postaward.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                Subpart 305.3_Synopses of Contract Awards



305.303  Announcement of contract awards.

    (a) Public announcement. The contracting officer shall report 
awards, not exempt under Federal Acquisition Regulation (FAR) 5.303, to 
the Office of the Assistant Secretary for Legislation (Congressional 
Liaison Office.)



                    Subpart 305.5_Paid Advertisements



305.502  Authority.

    Written approval at least one level above the contracting officer 
shall be obtained prior to placing advertisements or notices in 
newspapers.



Subpart 305.70_Publicizing Requirements Funded From the Affordable Care 
                  Act Prevention and Public Health Fund



305.7001  Scope.

    Pursuant to appropriations acts, this subpart prescribes 
requirements for posting presolicitation and award notices for actions 
funded in whole or in part from the Prevention and Public Health Fund 
(PPHF). The requirements of this subpart enhance transparency to the 
public.



305.7002  Applicability.

    This subpart applies to all actions funded in whole or in part by 
the PPHF.



305.7003  Publicizing preaward.

    Notices of all proposed contract actions, funded in whole or in part 
by the PPHF, shall be identified on HHS' Prevention and Public Health 
Fund Web site at http://www.hhs.gov/open/prevention/index.html no later 
than 1-day after issuance of the solicitation or other request for 
proposal or quotation document. When applicable, the notice shall 
provide a link to the full text; for example, a link to the FedBizOpps 
notice required by FAR 5.201.



305.7004  Publicizing postaward.

    Notices of contract actions exceeding $25,000, funded in whole or in 
part by the PPHF, shall be identified on HHS' PPHF Web site at http://
www.hhs.gov/open/prevention/index.html no later than 5 days after the 
contract action occurs.



PART 306_COMPETITION REQUIREMENTS--Table of Contents



   Subpart 306.2_Full and Open Competition After Exclusion of Sources

Sec.
306.202  Establishing or maintaining alternative sources.

           Subpart 306.3_Other Than Full and Open Competition

306.302  Circumstances permitting other than full and open competition.
306.302-1  Only one responsible source and no other supplies or services 
          will satisfy agency requirements.

                   Subpart 306.5_Competition Advocates

306.501  Requirement.


[[Page 12]]


    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



   Subpart 306.2_Full and Open Competition After Exclusion of Sources



306.202  Establishing or maintaining alternative sources.

    (a) The Senior Procurement Executive (SPE) shall make the 
determination required in Federal Acquisition Regulation (FAR) 6.202(a).
    (b)(1) The contracting officer shall prepare the required 
determination and findings (D&F), see FAR 6.202(b)(1), based on the data 
provided by program personnel. The appropriate Competition Advocate (CA) 
(non-delegable) shall sign the D&F, indicating concurrence. The final 
determination will be made by the SPE.



           Subpart 306.3_Other Than Full and Open Competition



306.302  Circumstances permitting other than full and open competition.



306.302-1  Only one responsible source and no other supplies or services
will satisfy agency requirements. See FAR 6.302-1.

    For acquisitions covered by 42 U.S.C. 247d-6a(b)(2)(A), ``available 
from only one responsible source'' shall be deemed to mean ``available 
from only one responsible source or only from a limited number of 
responsible sources''.



                   Subpart 306.5_Competition Advocates



306.501  Requirement.

    The Department Competition Advocate for Health and Human Services is 
located in the Division of Acquisition.



PART 307_ACQUISITION PLANNING--Table of Contents



    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



307.105  Contents of written acquisition plans.

    Federal Acquisition Regulation 7.105 specifies the content 
requirements for a written Acquisition Plan (AP). The Department of 
Health and Human Services requires a written AP for all acquisitions 
above the simplified acquisition threshold.



PART 308_REQUIRED SOURCES OF SUPPLIES AND SERVICES--Table of Contents



                 Subpart 308.4_Federal Supply Schedules

Sec.
308.405-6  Limited source justification and approval.

       Subpart 308.8_Acquisition of Printing and Related Supplies

308.800  Scope of subpart.
308.801  Definitions.
308.802  Policy.
308.803  Solicitation provision and contract clause.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                 Subpart 308.4_Federal Supply Schedules



308.405-6  Limited source justification and approval.

    (d)(1) As required by Federal Acquisition Regulation (FAR) 8.405-1 
or 8.405-2, the responsible program office must provide a written 
justification for an acquisition under the Federal Supply Service 
program that restricts the number of schedule contractors or when 
procuring an item peculiar to one manufacturer.



       Subpart 308.8_Acquisition of Printing and Related Supplies



308.800  Scope of subpart.

    This subpart provides the Department of Health and Human Services 
(HHS) policy for the acquisition of Government printing and related 
supplies. The HHS Office of the Assistant Secretary for Public Affairs 
is responsible for the review and clearance of print and electronic 
publications,

[[Page 13]]

printing and related supplies, audiovisual products, and communication 
service contracts. See FAR 8.802 for exceptions.



308.801  Definitions.

    The terms ``printing'' and ``duplicating/copying'' are defined in 
the Government Printing and Binding Regulations of the Joint Committee 
on Printing. The regulations are available at http://www.gpo.gov.



308.802  Policy.

    In accordance with FAR 8.802(b), the Central Printing and 
Publications Management Organization at Program Support Center is the 
HHS designated central printing authority.



308.803  Solicitation provision and contract clause.

    The contracting officer shall insert the clause at 352.208-70, 
Printing and Duplication, in all solicitations, contracts, and orders 
over the simplified acquisition threshold, unless printing or increased 
duplication is authorized by statute.



PART 309_CONTRACTOR QUALIFICATIONS--Table of Contents



         Subpart 309.4_Debarment, Suspension, and Ineligibility

Sec.
309.403  Definitions.
309.404  System for Award Management (SAM) exclusions.
309.405  Effect of listing (compelling reason determinations).
309.406  Debarment.
309.406-3  Procedures.
309.407  Suspension.
309.407-3  Procedures.
309.470  Reporting of suspected causes for debarment or suspension or 
          the taking of evasive actions.
309.470-1  Situations where reports are required.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



         Subpart 309.4_Debarment, Suspension, and Ineligibility



309.403  Definitions.

    The following definition applies to this subpart:
    The HHS Suspension and Debarment Official is the Deputy Assistant 
Secretary (DAS) for the Office of Grants and Acquisition Policy and 
Accountability (OGAPA).



309.404  System for Award Management (SAM) exclusions.

    (c) For actions made by HHS pursuant to FAR 9.406 and 9.407, the 
Office of Recipient Integrity Coordination shall perform the actions 
required by FAR 9.404(c).



309.405  Effect of listing (compelling reason determinations).

    (a) The head of the contracting activity (HCA) (non-delegable) may, 
with the written concurrence of the Suspension and Debarment Official, 
make the determinations referenced in FAR 9.405(a) regarding contracts.
    (1) If a contracting officer considers it necessary to award a 
contract, or consent to a subcontract with a debarred or suspended 
contractor, the contracting officer shall prepare a determination, 
including all pertinent documentation, and submit it through appropriate 
acquisition channels to the HCA. The documentation shall include the 
date by which approval is required and a compelling reason for the 
proposed action. Compelling reasons for award of a contract or consent 
to a subcontract with a debarred or suspended contractor include the 
following:
    (i) Only the cited contractor can provide the property or services, 
and
    (ii) The urgency of the requirement dictates that HHS conduct 
business with the cited contractor.
    (2) If the HCA decides to approve the requested action, the HCA 
shall request the concurrence of the Suspension and Debarment Official 
and, if given, shall inform the contracting officer in writing of the 
determination within the required time period.

[[Page 14]]



309.406  Debarment.



309.406-3  Procedures.

    Refer all matters appropriate for consideration by an agency 
Suspension and Debarment Official as soon as practicable to the 
appropriate Suspension and Debarment Official identified in 309.403. Any 
person may refer a matter to the Suspension and Debarment Official.



309.407  Suspension.



309.407-3  Procedures.

    Refer all matters appropriate for consideration by an agency 
Suspension and Debarment Official as soon as practicable to the 
appropriate Suspension and Debarment Official identified in 309.403. Any 
person may refer a matter to the Suspension and Debarment Official.



309.470  Reporting of suspected causes for debarment or suspension or 
the taking of evasive actions.



309.470-1  Situations where reports are required.

    The contracting officer shall report to the HCA and the Associate 
Deputy Assistant Secretary--Acquisition whenever the contracting 
officer--
    (a) Knows or suspects that a contractor is committing or has 
committed any of the acts described in FAR 9.406-2 or 9.407-2; or
    (b) Suspects a contractor is attempting to evade the prohibitions of 
debarment or suspension imposed under FAR 9.405, or any other comparable 
regulation, by changes of address, multiple addresses, formation of new 
companies, or by other devices.



PART 310_MARKET RESEARCH--Table of Contents



    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



310.001  Policy.

    Market research shall be conducted as prescribed in Federal 
Acquisition Regulation part 10.



PART 311_DESCRIBING AGENCY NEEDS--Table of Contents



           Subpart 311.70_Section 508 Accessibility Standards

Sec.
311.7000  Defining electronic information technology requirements.

     Subpart 311.71_Public Accommodations and Commercial Facilities

311.7100  Policy.
311.7101  Responsibilities.
311.7102  Contract clause.

            Subpart 311.72_Conference Funding and Sponsorship

311.7200  Policy.
311.7201  Funding and sponsorship.
311.7202  Contract clause.

           Subpart 311.73_Contractor Collection of Information

311.7300  Policy.
311.7301  Contract clause.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



           Subpart 311.70_Section 508 Accessibility Standards



311.7000  Defining electronic and information technology requirements.

    The contracting officer shall ensure that requiring activities 
specify agency needs for electronic and information technology (EIT) 
supplies and services, and document market research, document EIT 
requirements, and identify the applicable Section 508 accessibility 
standards. See FAR 11.002(f) and HHSAR subpart 339.2.



     Subpart 311.71_Public Accommodations and Commercial Facilities.



311.7100  Policy.

    (a) It is HHS policy that all contractors comply with current and 
any future changes to 28 CFR part 36--Nondiscrimination on the Basis of 
Disability by Public Accommodations and in Commercial Facilities. For 
the purpose of this policy, accessibility is defined as both physical 
access to public

[[Page 15]]

accommodations and commercial facilities, and access to aids and 
services enabling individuals with sensory disabilities to fully 
participate in events in public accommodations and commercial 
facilities.
    (b) This policy applies to all contracts requiring contractors to 
conduct events in public accommodations and commercial facilities open 
to the public or involving HHS personnel, but not ad hoc meetings 
necessary or incidental to contract performance.



311.7101  Responsibilities.

    The contractor shall submit a plan assuring that any event held will 
meet or exceed the minimum accessibility standards set forth in 28 CFR 
part 36. A consolidated or master plan for contracts requiring numerous 
events in public accommodations and commercial facilities is acceptable.



311.7102  Contract clause.

    The contracting officer shall insert the clause at 352.211-1, Public 
Accommodations and Commercial Facilities, in solicitations, contracts, 
and orders requiring the contractor to conduct events in accordance with 
311.7100(b).



            Subpart 311.72_Conference Funding and Sponsorship



311.7200  Policy.

    HHS policy requires that all conferences the agency funds or 
sponsors shall: be consistent with HHS missions, objectives, and 
policies; represent an efficient and effective use of taxpayer funds; 
and withstand public scrutiny.



311.7201  Funding and sponsorship.

    Funding a conference through a HHS contract does not automatically 
imply HHS sponsorship, unless the conference is funded entirely by the 
agency. Also, HHS staff attendance or participation at a conference does 
not imply HHS conference sponsorship. Accordingly, for non-conference 
contracts funded entirely by HHS prior to a contractor claiming HHS 
sponsorship, the contractor must provide the contracting officer a 
written request for permission to designate HHS the conference sponsor. 
The OPDIV or STAFFDIV (operating division or staff division) head, or 
designee, shall approve such requests. The determination on what 
constitutes a ``conference contract'' or a ``non-conference contract'' 
shall be made by the contracting officer.



311.7202  Contract clause.

    To ensure that a contractor:
    (a) Properly requests approval to designate HHS the conference 
sponsor, where HHS is not the sole provider of conference funding; and
    (b) Includes an appropriate Federal funding disclosure and content 
disclaimer statement for conference materials, the contracting officer 
shall include the clause at 352.211-2, Conference Sponsorship Request 
and Conference Materials Disclaimer, in solicitations, contracts, and 
orders providing funding which partially or fully supports a conference.



           Subpart 311.73_Contractor Collection of Information



311.7300  Policy.

    In accordance with the Paperwork Reduction Act (PRA), contractors 
shall not proceed with collecting information from surveys, 
questionnaires, or interviews until the COR obtains an Office of 
Management and Budget clearance and the contracting officer issues 
written approval to proceed. For any contract involving a requirement to 
collect or record information calling either for answers to identical 
questions from 10 or more persons other than Federal employees, or 
information from Federal employees which is outside the scope of their 
employment, for use by the Federal Government or disclosure to third 
parties, the contracting officer must comply with the PRA of 1995 (44 
U.S.C. 3501 et seq.).



311.7301  Contract clause.

    The contracting officer shall insert the clause at 352.211-3, 
Paperwork Reduction Act, in solicitations, contracts, and orders that 
require a contractor to collect the same information from 10 or more 
persons.

[[Page 16]]



PART 312_ACQUISITION OF COMMERCIAL ITEMS--Table of Contents



          Subpart 312.1_Acquisition of Commercial Items_General

Sec.
312.101  Policy.

  Subpart 312.2_Special Requirements for the Acquisition of Commercial 
                                  Items

312.202(d)  Market research and description of agency need.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



          Subpart 312.1_Acquisition of Commercial Items_General



312.101  Policy.

    Contracting offices shall use the HHS Smarter Buying Program to the 
maximum extent practicable. See HHS Acquisition Regulation part 307, 
Acquisition Planning.



  Subpart 312.2_Special Requirements for the Acquisition of Commercial 
                                  Items



312.202(d)  Market research and description of agency need.

    Whenever a requiring activity specifies electronic and information 
technology (EIT) supplies and services subject to Section 508 of the 
Rehabilitation Act of 1973, as amended, the requiring activity shall 
acquire commercially available supplies and services to the maximum 
extent possible while ensuring Section 508 compliance. See part 339.

[[Page 17]]



           SUBCHAPTER C_CONTRACTING METHODS AND CONTRACT TYPES





PART 313_SIMPLIFIED ACQUISITION PROCEDURES--Table of Contents



Sec.
313.003  Policy.

              Subpart 313.3_Simplified Acquisition Methods

313.301  Government-wide commercial purchase card.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



313.003  Policy.

    Electronic and information technology (EIT) supplies and services 
acquired pursuant to Federal Acquisition Regulation part 13 shall comply 
with Section 508 of the Rehabilitation Act of 1973, as amended. See part 
339.



              Subpart 313.3_Simplified Acquisition Methods



313.301  Government-wide commercial purchase card.

    (b) Make all HHS transactions utilizing the government-wide 
commercial purchase card in accordance with the HHS Purchase Card 
Program.



PART 314_SEALED BIDDING--Table of Contents



                   Subpart 314.1_Use of Sealed Bidding

Sec.
314.103  Policy.

           Subpart 314.4_Opening of Bids and Award of Contract

314.404  Rejection of bids.
314.404-1  Cancellation of invitations after opening.
314.407  Mistakes in bids.
314.407-3  Other mistakes disclosed before award.
314.407-4  Mistakes after award.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                   Subpart 314.1_Use of Sealed Bidding



314.103  Policy.

    Electronic and information technology (EIT) supplies and services 
acquired using sealed-bid procedures shall comply with Section 508 of 
the Rehabilitation Act of 1973, as amended. See part 339.



           Subpart 314.4_Opening of Bids and Award of Contract



314.404  Rejection of bids.



314.404-1  Cancellation of invitations after opening.

    (c) The head of the contracting activity (HCA) shall make the 
determinations specified in FAR 14.404-1(c).



314.407  Mistakes in bids.



314.407-3  Other mistakes disclosed before award.

    (e) The HCA has the authority to make determinations under 
paragraphs (a), (b), (c), and (d) of FAR 14.407-3.



314.407-4  Mistakes after award.

    (c) The HCA has the authority to make administrative determinations 
in connection with alleged post-award mistakes.



PART 315_CONTRACTING BY NEGOTIATION--Table of Contents



   Subpart 315.2_Solicitation and Receipt of Proposals and Information

Sec.
315.204-5  Part IV--Representations and instructions.
315.208  Submission, modification, revision, and withdrawal of 
          proposals.

                     Subpart 315.3_Source Selection

315.303-70  Policy.
315.304  Evaluation factors and significant subfactors.
315.305  Proposal evaluation.

[[Page 18]]

                     Subpart 315.4_Contract Pricing

315.404  Proposal analysis.
315.404-2  Information to support proposal analysis.

                   Subpart 315.6_Unsolicited Proposals

315.605  Content of unsolicited proposals.
315.606  Agency procedures.
315.606-1  Receipt and initial review.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



   Subpart 315.2_Solicitation and Receipt of Proposals and Information



315.204-5  Part IV--Representations and instructions.

    (c) Section M, Evaluation factors for award. (1) The requiring 
activity shall develop technical evaluation factors and submit them to 
the contracting officer as part of the acquisition plan or other 
acquisition request documentation for inclusion in a solicitation. The 
requiring activity shall indicate the relative importance or weight of 
the evaluation factors based on the requirements of an individual 
acquisition.
    (2) Only a formal amendment to a solicitation can change the 
evaluation factors.



315.208  Submission, modification, revision, and withdrawal of proposals.

    (b) In addition to the provision in Federal Acquisition Regulation 
(FAR) 52.215-1, Instructions to Offerors--Competitive Acquisition, if 
the head of the contracting activity (HCA) determines that biomedical or 
behavioral research and development (R&D) acquisitions are subject to 
conditions other than those specified in FAR 52.215-1(c)(3), the HCA may 
authorize for use in competitive solicitations for R&D, the provision at 
352.215-70, Late Proposals and Revisions. This is an authorized FAR 
deviation.
    (2) When the provision at 352.215-70 is included in the solicitation 
and if the HCA intends to consider a proposal or proposals received 
after the exact time specified for receipt, the contracting officer, 
with the assistance of cost or technical personnel as appropriate, shall 
determine in writing that the proposal(s) meets the requirements of the 
provision at 352.215-70.



                     Subpart 315.3_Source Selection



315.303-70  Policy.

    (a) If an operating division (OPDIV) is required by statute to use 
peer review for technical review of proposals, the requirements of those 
statutes, any implementing regulatory requirements, the Federal Advisory 
Committee Act, and as applicable, any approved Department of Health and 
Human Services Acquisition Regulation (HHSAR) deviation(s) from this 
subpart take precedence over the otherwise applicable requirements of 
this subpart.
    (b) The statutes that require such review and implementing 
regulations are as follows: National Institutes of Health--42 U.S.C. 
289a, Peer Review Requirements and 42 CFR part 52h, Scientific Peer 
Review of Research Grant Applications and Research and Development 
Contract Projects; Substance Abuse and Mental Health Services 
Administration--42 U.S.C. 290aa-3, Peer Review and Agency for Healthcare 
Research and Quality--42 U.S.C. 299c-1, Peer review with respect to 
grants and contracts.



315.304  Evaluation factors and significant subfactors.

    When acquiring electronic and information technology supplies and 
services (EIT) using negotiated procedures, contracting officers shall 
comply with Section 508 of the Rehabilitation Act of 1973, as amended.



315.305  Proposal evaluation.

    (c) Use of non-Federal evaluators. (1) Except when peer review is 
required by statute as provided in 315.303-70(a), decisions to disclose 
proposals to non-Federal evaluators shall be made by the official 
responsible for appointing Source Selection Evaluation Team members in 
accordance with OPDIV procedures. The avoidance of organizational and 
personal conflicts of interest must be taken into consideration when 
making the decision to use non-Federal evaluators.

[[Page 19]]

    (2) When a solicited proposal will be disclosed outside the 
Government to a contractor or a contractor employee for evaluation 
purposes, the following or similar conditions shall be part of the 
written agreement with the contractor prior to disclosure:

                   CONDITIONS FOR EVALUATING PROPOSALS

    The contractor agrees that it and its employees, as well as any 
subcontractors and their employees (in these conditions, ``evaluator'') 
will use the data (trade secrets, business data, and technical data) 
contained in the proposal for evaluation purposes only. The foregoing 
requirement does not apply to data obtained from another source without 
restriction. Any notice or legend placed on the proposal by either HHS 
or the offeror shall be applied to any reproduction or abstract provided 
to the evaluator or made by the evaluator. Upon completion of the 
evaluation, the evaluator shall return to the Government the furnished 
copy of the proposal or abstract, and all copies thereof, to the HHS 
office which initially furnished the proposal for evaluation. The 
evaluator shall not contact the offeror concerning any aspects of a 
proposal's contents.



                     Subpart 315.4_Contract Pricing



315.404  Proposal analysis.



315.404-2  Information to support proposal analysis.

    (a)(2) When some or all information sufficient to determine the 
reasonableness of the proposed cost or price is already available or can 
be obtained from the cognizant audit agency, or by other means including 
data obtained through market research (See FAR part 10 and HHSAR part 
310) the contracting officer may request less-than-complete field 
pricing support (specifying in the request the information needed) or 
may waive in writing the requirement for audit and field pricing support 
by documenting the file to indicate what information will be used. When 
field-pricing support is required, contracting officers shall make the 
request through the HCA.



                   Subpart 315.6_Unsolicited Proposals



315.605  Content of unsolicited proposals.

    (d) Warranty by offeror. To ensure against contacts between HHS 
personnel and prospective offerors that would exceed the limits of 
advance guidance set forth in FAR 15.604 and potentially result in an 
unfair advantage to an offeror, the prospective offeror of an 
unsolicited proposal must include the following warranty in any 
unsolicited proposal. Contracting officers receiving an unsolicited 
proposal without this warranty shall not process the proposal until the 
offeror is notified of the missing language and given an opportunity to 
submit a proper warranty. If no warranty is provided in a reasonable 
time, the contracting officer shall reject the unsolicited proposal, 
notify the offeror of the rejection, and document the actions in the 
file.

                          UNSOLICITED PROPOSAL

                           WARRANTY BY OFFEROR

    This is to warrant that--
    (a) This proposal has not been prepared under Government 
supervision;
    (b) The methods and approaches stated in the proposal were developed 
by this offeror;
    (c) Any contact with HHS personnel has been within the limits of 
appropriate advance guidance set forth in FAR 15.604; and,
    (d) No prior commitments were received from HHS personnel regarding 
acceptance of this proposal.

Date:___________________________________________________________________
Organization:___________________________________________________________
Name:___________________________________________________________________
Title:__________________________________________________________________

    (This warranty shall be signed by a responsible management official 
of the proposing organization who is a person authorized to 
contractually obligate the organization.)



315.606  Agency procedures.

    (a) The HCA is responsible for establishing procedures to comply 
with FAR 15.606(a).
    (b) The HCA or designee shall be the point of contact for 
coordinating the

[[Page 20]]

receipt and processing of unsolicited proposals.



315.606-1  Receipt and initial review.

    (d) OPDIVs may consider an unsolicited proposal even though an 
organization initially submitted it as a grant application. However, 
OPDIVs shall not award contracts based on unsolicited proposals that 
have been rejected for grant awards due to lack of scientific merit.



PART 316_TYPES OF CONTRACTS--Table of Contents



               Subpart 316.3_Cost-Reimbursement Contracts

Sec.
316.307  Contract clauses.

               Subpart 316.5_Indefinite-Delivery Contracts

316.505  Ordering.

   Subpart 316.6_Time-and-Materials, Labor-Hour, and Letter Contracts

316.603  Letter contracts.
316.603-3  Limitations.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



               Subpart 316.3_Cost-Reimbursement Contracts



316.307  Contract clauses.

    (a)(1) If a contract for research and development is with a hospital 
(profit or nonprofit), the contracting officer shall modify the 
``Allowable Cost and Payment'' clause at FAR 52.216-7 by deleting from 
paragraph (a) the words ``Federal Acquisition Regulation (FAR) subpart 
31.2'' and substituting ``45 CFR part 75.''
    (2) The contracting officer shall also insert the clause at 352.216-
70, Additional Cost Principles for Hospitals (Profit or Non-Profit), in 
solicitations and contracts with a hospital (profit or non-profit) when 
a cost-reimbursement contract is contemplated.



               Subpart 316.5_Indefinite-Delivery Contracts



316.505  Ordering.

    (b)(8) The Department of Health and Human Services (HHS) Competition 
Advocate is the task-order and delivery-order ombudsman for the 
department. Ombudsmen for each of the HHS contracting activities shall 
be designated in writing by the head of the contracting activity. See 
part 306.



   Subpart 316.6_Time-and-Materials, Labor-Hour, and Letter Contracts



316.603  Letter contracts.



316.603-3  Limitations.

    An official one level above the contracting officer shall make the 
written determination, to be included in the contract file, that no 
other contract type is suitable and to approve all letter contract 
modifications. No letter contract or modification can exceed the limits 
prescribed in FAR 16.603-2(c).



PART 317_SPECIAL CONTRACTING METHODS--Table of Contents



                  Subpart 317.1_Multi-Year Contracting

Sec.
317.104  General.
317.105  Policy.
317.105-1  Uses.
317.107  Options.
317.108  Congressional notification.

                          Subpart 317.2_Options

317.204  Contracts.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                  Subpart 317.1_Multi-Year Contracting



317.104  General.

    (b) The Senior Procurement Executive (SPE) is the agency approving 
official for determinations under Federal Acquisition Regulation (FAR) 
17.104(b).

[[Page 21]]



317.105  Policy.



317.105-1  Uses.

    (a) Each head of the contracting activity (HCA) determination to use 
multi-year contracting, as defined in FAR 17.103, is limited to 
individual acquisitions where the full estimated cancellation ceiling 
does not exceed 20 percent of the total contract value over the multi-
year term or $12.5 million, whichever is less. Cancellation ceiling 
provisions shall conform to the requirements of FAR 17.106-1(c). The 
determination is not delegable and shall address the issues in FAR 
17.105-1(a).
    (b)(1) SPE approval is required for any--
    (i) Individual determination to use multi-year contracting with a 
cancellation ceiling in excess of the limits in 317.105-1(a); or
    (ii) Class determination (see FAR subpart 1.7).
    (2) A determination involving a cancellation ceiling in excess of 
the limits in 317.105-1(a) shall present a well-documented justification 
for the estimated cancellation ceiling. When the estimated cancellation 
ceiling exceeds $12.5 million, the determination shall accompany a draft 
congressional notification letter pursuant to FAR 17.108 and 317.108.



317.107  Options.

    When included as part of a multi-year contract, use of options shall 
not extend the performance of the original requirement beyond 5 years. 
Options may serve as a means to acquire related services (severable or 
non-severable) and, upon their exercise, shall receive funding from the 
then-current fiscal year's appropriation.



317.108  Congressional notification.

    (a) The SPE shall give the approval of the written notification 
required by FAR 17.108(a). Upon approval of the determination required 
by 317.105-1(b)(1), the HCA will finalize and sign the congressional 
notification letter and provide it to the appropriate House and Senate 
committees.



                          Subpart 317.2_Options



317.204  Contracts.

    (e)(1) Information technology contracts. Notwithstanding FAR 
17.204(e), the 5-year limitations apply also to information technology 
contracts unless a longer period is authorized by statute.
    (2) Requests to exceed 5-year limitation. A request to exceed the 5-
year limitation specified in FAR 17.204(e) must follow guidance in FAR 
Part 1.7.
    (3) Approval authority. All requests to exceed the 5-year 
limitations specified in FAR 17.204(e) must be supported with a 
Determination and Finding and approved by:
    (i) The HCA; and
    (ii) The HHS SPE.

[[Page 22]]



                   SUBCHAPTER D_SOCIOECONOMIC PROGRAMS





PART 319_SMALL BUSINESS PROGRAMS--Table of Contents



                         Subpart 319.2_Policies

Sec.
319.201  General policy.
319.270-1  Mentor Protege Program Solicitation provision and contract 
          clause.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                         Subpart 319.2_Policies



319.201  General policy.

    (d) The functional management responsibilities for the Department of 
Health and Human Services' (HHS) small business program are delegated to 
the Office of Small and Disadvantaged Business Utilization (OSDBU) 
Director.
    (e)(1) The HHS OSDBU Director shall exercise full management 
authority over the small business program. The small business specialist 
(SBS) shall review and make recommendations for all acquisitions, unless 
exempted by statute, that are not being set aside for small business in 
accordance with Federal Acquisition Regulation (FAR) 19.502. The review 
must take place prior to issuing the solicitation.
    (2) Within the Indian Health Service (IHS), the primary SBSs are 
responsible for IHS' overall implementation of the HHS small business 
program; however, each IHS contracting office will assign a small 
business technical advisor (SBTA) to perform those functions and 
responsibilities necessary to implement the small business program. The 
primary IHS SBS shall assist and provide guidance to respective SBTAs.



319.270-1  Mentor Protege Program Solicitation provision and contract clause.

    (a) The contacting officer shall insert the provision at 352.219-70, 
Mentor-Protege Program, in solicitations that include the clause at FAR 
52.219-9, Small Business Subcontracting Plan. The provision requires 
offerors to provide the contracting officer a copy of their HHS Office 
of OSDBU-approved mentor-protege agreement in response to a 
solicitation.
    (b) The contacting officer shall insert the clause at 352.219-71, 
Mentor-Protege Program Reporting Requirements, in contracts that include 
the clause at FAR 52.219-9, Small Business Subcontracting Plan, and 
which are awarded to a contractor with an HHS OSDBU-approved mentor-
protege agreement.



PART 322_APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
--Table of Contents



    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



               Subpart 322.8_Equal Employment Opportunity



322.810  Solicitation provisions and contract clauses.

    (h) The contracting officer shall insert the clause at 352.222-70, 
Contractor Cooperation in Equal Employment Opportunity Investigations, 
in solicitations, contracts, and orders that include the clause at FAR 
52.222-26, Equal Opportunity.



PART 323_ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE
--Table of Contents



                    Subpart 323.70_Safety and Health

Sec.
323.7000  Scope of subpart.
323.7001  Policy.
323.7002  Actions required.

           Subpart 323.71_Sustainable Acquisition Requirements

323.7100  Policy.
323.7101  Applicability.
323.7102  Procedures.
323.7103  Solicitation Provision.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

[[Page 23]]


    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



323.7000  Scope of subpart.

    This subpart provides procedures for administering safety and health 
requirements.



323.7001  Policy.

    The contracting officer shall follow the guidance in this subpart 
when additional requirements for safety and health are necessary for an 
acquisition.



323.7002  Actions required.

    Contracting activities. The contracting officer shall insert the 
clause at 352.223-70, Safety and Health, or a clause substantially the 
same, in solicitations and contracts that involve hazardous materials or 
hazardous operations for the following types of requirements:
    (a) Services or products.
    (b) Research, development, or test projects.
    (c) Transportation of hazardous materials.
    (d) Construction, including construction of facilities on the 
contractor's premises.



           Subpart 323.71_Sustainable Acquisition Requirements



323.7100  Policy.

    This subpart provides procedures for sustainable acquisitions and 
use of the following: Designated recycled content; energy efficient, 
environmentally preferred, Electronic Product Environmental Assessment 
Tool (EPEAT)-registered, bio-based, water efficient, non-ozone depleting 
products and services; and alternate fuel vehicles and fuels. The 
Department of Health and Human Services (HHS) has designated product and 
service codes for supplies and services having sustainable acquisition 
attributes. See FAR part 23.



323.7101  Applicability.

    It is HHS policy to include a solicitation provision and to include 
an evaluation factor for an offeror's Sustainable Action Plan when 
acquiring sustainable products and services. This applies only to new 
contracts and orders above the micro-purchase threshold. Such contracts 
and orders include, but are not limited to: Office supplies; 
construction, renovation or repair; building operations and maintenance; 
landscaping services; pest management; electronic equipment, including 
leasing; fleet maintenance; janitorial services; laundry services; 
cafeteria operations; and meetings and conference services. If using a 
product or service code designated for supplies or services having 
sustainable acquisition attributes but a review of the requirement 
determines that no opportunity exists to acquire sustainable acquisition 
supplies or services, document the determination in the contract file 
and make note in the solicitation.



323.7102  Procedures.

    (a) When required by the solicitation, offerors or quoters must 
include a Sustainable Acquisition Plan in their technical proposal 
addressing the environmental products and services for delivery under 
the resulting contract.
    (b) The contracting officer shall incorporate the final Sustainable 
Acquisition Plan into the contract.
    (c) The contracting officer shall ensure that sustainability is 
included as an evaluation factor in all applicable new contracts and 
orders when the acquisition utilizes a product or service code 
designated by HHS for supplies or services having sustainable 
acquisition attributes.



323.7103  Solicitation Provision.

    The contracting officer shall insert the provision at 352.223-71, 
Instruction to Offerors--Sustainable Acquisition, in solicitations above 
the micro-purchase threshold when the acquisition utilizes a product or 
service code designated by HHS as having sustainable acquisition 
attributes.



PART 324_PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION--Table of Contents



             Subpart 324.1_Protection of Individual Privacy

Sec.
324.103  Procedures for the Privacy Act.
324.104  Restrictions on Contractor Access to Government or Third Party 
          Information.

[[Page 24]]

324.105  Contract clauses.

 Subpart 324.70_Health Insurance Portability and Accountability Act of 
                              1996 (HIPAA)

324.7000  Scope of subpart.
324.7001  Policy on Compliance with HIPAA Business Associate Contract 
          Requirements.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



             Subpart 324.1_Protection of Individual Privacy



324.103  Procedures for the Privacy Act.

    (a) The contracting officer shall review all acquisition request 
documentation to determine whether the requirements of the Privacy Act 
of 1974 (5 U.S.C. 552a) are applicable. The Privacy Act requirements 
apply when a contract or order requires the contractor to design, 
develop, or operate any Privacy Act system of records on individuals to 
accomplish an agency function. When applicable, the contracting officer 
shall include the two Privacy Act clauses required by Federal 
Acquisition Regulation (FAR) 24.104 in the solicitation and contract or 
order. In addition, the contracting officer shall include the two FAR 
Privacy Act clauses, and other pertinent information specified in this 
subpart, in any modification which results in the Privacy Act 
requirements becoming applicable to a contract or order.
    (b) The contracting officer shall ensure that the statement of work 
or performance work statement (SOW or PWS) specifies the system(s) of 
records or proposed system(s) of records to which the Privacy Act and 
the implementing regulations are applicable or may be applicable. The 
contracting officer shall send the contractor a copy of 45 CFR part 5b, 
which includes the rules of conduct and other Privacy Act requirements.
    (c) The contracting officer shall ensure that the contract SOW or 
PWS specifies for both the Privacy Act and the Federal Records Act the 
disposition to be made of the system(s) of records upon completion of 
contract performance. The contract SOW or PWS may require the contractor 
to destroy the records, remove personal identifiers, or turn the records 
over to the contracting officer. If there is a legitimate need for a 
contractor to keep copies of the records after completion of a contract, 
the contractor must take measures, as approved by the contracting 
officer, to keep the records confidential and protect the individuals' 
privacy.
    (d) For any acquisition subject to Privacy Act requirements, the 
requiring activity prior to award shall prepare and have published in 
the Federal Register a ``system notice,'' describing the Department of 
Health and Human Services' (HHS) intent to establish a new system of 
records on individuals, to make modifications to an existing system, or 
to disclose information in regard to an existing system. The requiring 
activity shall attach a copy of the system notice to the acquisition 
plan or other acquisition request documentation. If a system notice is 
not attached, the contracting officer shall inquire about its status and 
shall obtain a copy from the requiring activity for inclusion in the 
contract file. If a notice for the system of records has not been 
published in the Federal Register, the contracting officer may proceed 
with the acquisition but shall not award the contract until the system 
notice is published and the contracting officer verifies its 
publication.



324.104  Restrictions on Contractor Access to Government or
Third Party Information.

    The contracting officer shall establish the restrictions that govern 
the contractor employees' access to Government or third party 
information in order to protect the information from unauthorized use or 
disclosure.



324.105  Contract clauses.

    (a) The contracting officer shall insert the clause at 352.224-70, 
Privacy Act, in solicitations, contracts, and orders that require the 
design, development, or operation of a system of records to notify the 
contractor that it and its employees are subject to criminal penalties 
for violations of the Privacy Act (5 U.S.C. 552a(i)) to the same

[[Page 25]]

extent as HHS employees. The clause also requires the contractor to 
ensure each of its employees knows the prescribed rules of conduct in 45 
CFR part 5b and each contractor employee is aware that he or she is 
subject to criminal penalties for violations of the Privacy Act. These 
requirements also apply to all subcontracts awarded under the contract 
or order that require the design, development, or operation of a system 
of records.
    (b) The contracting officer shall insert the clause at 352.224-71, 
Confidential Information, in solicitations, contracts, and orders that 
require access to Government or to third party information.



 Subpart 324.70_Health Insurance Portability and Accountability Act of 
                                  1996



324.7000  Scope of subpart.

    All individually identifiable health information that is Protected 
Health Information (PHI), as defined in 45 CFR 160.103 shall be 
administered in accordance with the Health Insurance Portability and 
Accountability Act of 1996 (HIPAA) implementing regulations at 45 CFR 
parts 160 and 164 (the HIPAA Privacy, Security, and Breach Notification 
Rules). The term ``HIPAA'' is used in this part to refer to title II, 
subtitle F of the HIPAA statute, at part C of title XI of the Social 
Security Act, 42 U.S.C. 1320d et seq., section 264 of HIPAA, subtitle D 
of title XIII of the American Recovery and Reinvestment Act of 2009, and 
regulations under such provisions.



324.7001  Policy on Compliance with HIPAA business associate contract
requirements.

    (a) HHS is a HIPAA ``covered entity'' that is a ``hybrid entity'' as 
these terms are defined at sections 160.103 and 164.103 respectively. As 
such, only the portions of HHS that the Secretary has designated as 
``health care components'' (HCC) as defined at section 164.103, are 
subject to HIPAA. HHS' HCCs may utilize persons or entities known as 
``business associates,'' as defined at section 160.103. Generally, 
``business associate'' means a ``person'' as defined by section 160.103 
(including contractors, and third-party vendors, etc.) if or when the 
person or entity:
    (1) Creates, receives, maintains, or transmits ``protected health 
information'', as the term is defined at section 160.103, on behalf of 
an HHS HCC to carry out HHS HIPAA ``covered functions'' as that term is 
defined at 164.103; or
    (2) Provides certain services to an HHS HCC that involve PHI.
    (b) Where the Department as a covered entity is required by 45 CFR 
164.502(e)(1) and 164.504(e) and, if applicable, sections 164.308(b)(3) 
and 164.314(a), to enter into a HIPAA business associate contract, the 
relevant HCC contracting officer, acting on behalf of the Department, 
shall ensure that such contract meets the requirements at section 
164.504(e)(2) and, if applicable, section 164.314(a)(2).



PART 326_OTHER SOCIOECONOMIC PROGRAMS--Table of Contents



      Subpart 326.5_Indian Preference in Employment, Training, and 
                      Subcontracting Opportunities

Sec.
326.501  Statutory requirements.
326.502  Definitions.
326.503  Compliance enforcement.
326.504  Tribal Preference requirement.
326.505  Applicability.

           Subpart 326.6_Acquisitions Under the Buy Indian Act

326.600  Scope of subpart.
326.601  Policy.
326.602  Definitions.
326.603  Requirements.
326.604  Competition.
326.605  Responsibility determinations.

    Subpart 326.7_Acquisitions Requiring the Native American Graves 
                     Protection and Repatriation Act

326.700  Scope of subpart.
326.701  Applicability.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.

[[Page 26]]



      Subpart 326.5_Indian Preference in Employment, Training, and 
                      Subcontracting Opportunities



326.501  Statutory requirements.

    Any contract or subcontract pursuant to subchapter II, chapter 14, 
title 25 of the United States Code, the Act of April 16, 1934 (48 Stat. 
596), as amended, or any other Act authorizing Federal contracts with or 
grants to Indian organizations or for the benefit of Indians, shall, to 
the greatest extent feasible, comply with section 7(b) of the Indian 
Self-Determination and Education Assistance Act, Public Law 93-638, 88 
Stat. 2205, 25 U.S.C. 450e(b) which provides preferences and 
opportunities for training and employment in connection with the 
administration of such contracts, and preference in the award of 
subcontracts in connection with the administration of such contracts to 
Indian organizations and to Indian-owned economic enterprises as defined 
in section 1452 of title 25, United States Code.



326.502  Definitions.

    For purposes of this subpart, the following definitions shall apply:
    (a) Indian means a person who is a member of an Indian tribe. If the 
contractor has reason to doubt that a person seeking employment 
preference is an Indian, the contractor shall grant the preference but 
shall require the individual provide evidence within 30 days from the 
tribe concerned that the person is a member of the tribe.
    (b) Indian tribe means an Indian tribe, pueblo, band, nation, or 
other organized group or community, including any Alaska Native Village 
or regional or village corporation as defined in or established pursuant 
to the Alaska Native Claims Settlement Act (85 Stat. 688, 43 U.S.C. 
1601), which the United States recognizes as eligible for special 
programs and services because of its status as Indian.
    (c) Indian organization means the governing body of any Indian 
tribe, or entity established or recognized by such governing body, in 
accordance with the Indian Financing Act of 1974 (88 Stat. 77, 25 U.S.C. 
1451).
    (d) Indian-owned economic enterprise means any Indian-owned 
commercial, industrial, or business activity established or organized 
for the purpose of profit, provided that such Indian ownership shall 
constitute not less than 51 percent of the enterprise, and the ownership 
shall encompass active operation and control of the enterprise.
    (e) Indian reservation includes Indian reservations, public domain 
Indian allotments, former Indian reservations in Oklahoma, and land held 
by incorporated Native groups, regional corporations, and village 
corporations under the provisions of the Alaska Native Claims Settlement 
Act (85 Stat. 688, 43 U.S.C. 1601 et seq.).
    (f) On or near an Indian reservation means on a reservation or 
reservations or within that area surrounding an Indian reservation(s) 
where a person seeking employment could reasonably commute to and from 
in the course of a work day.



326.503  Compliance enforcement.

    The contracting officer shall promptly investigate and resolve 
written complaints of noncompliance with the requirements of the clauses 
at 352.226-1, Indian Preference and 352.226-2, Indian Preference Program 
filed with the contracting activity.



326.504  Tribal preference requirements.

    (a) When the contractor will perform work under a contract on an 
Indian reservation, the contracting officer may supplement the clause at 
352.226-2, Indian Preference Program by adding specific Indian 
preference requirements of the tribe on whose reservation the contractor 
will work. The contracting activity and the tribe shall jointly develop 
supplemental requirements for the contract. Supplemental preference 
requirements shall represent a further implementation of the 
requirements of section 7(b) of Public Law 93-638 and require the 
approval of the affected program director and the appropriate legal 
office, or a regional attorney, before the contracting officer adds them 
to a solicitation and resultant contract. Any supplemental preference 
requirements the contracting officer adds to the clause at 352.226-2, 
Indian Preference Program shall also clearly

[[Page 27]]

identify in the solicitation the additional requirements.
    (b) Nothing in this part shall preclude tribes from independently 
developing and enforcing their own tribal preference requirements. Such 
independently-developed tribal preference requirements shall not, except 
as provided in paragraph (a) of this section, become a requirement in 
contracts covered under this subpart, and shall not conflict with any 
Federal statutory or regulatory requirement concerning the award and 
administration of contracts.



326.505  Applicability.

    The contracting officer shall insert the clause at 352.226-1, Indian 
Preference, and the clause at 352.226-2, Indian Preference Program, in 
contracts to implement section 7(b) of Public Law 93-638 for all 
Department of Health and Human Services (HHS) activities. Contracting 
activities shall use the clauses as follows, except for those exempted 
solicitations and contracts issued and or awarded pursuant to Title I of 
Public Law 93-638 (25 U.S.C. 450 et seq.):
    (a) The contracting officer shall insert the clause at 352.226-1, 
Indian Preference, in solicitations, contracts, and orders when--
    (1) The award is (or will be) pursuant to an act specifically 
authorizing such awards with Indian organizations; or
    (2) The work is specifically for the benefit of Indians and is in 
addition to any incidental benefits which might otherwise accrue to the 
general public.
    (b) The contracting officer shall insert the clause at 352.226-2, 
Indian Preference Program, in solicitations, contracts, and orders 
when--
    (1) The dollar amount of the acquisition is expected to equal or 
exceed $650,000 for non-construction work or $1.5 million for 
construction work;
    (2) The solicitation, contract, or order includes the Indian 
Preference clause; and
    (3) The contracting officer makes the determination, prior to 
solicitation, that performance will take place in whole or in 
substantial part on or near an Indian reservation(s). In addition, the 
contracting officer may insert the Indian Preference Program clause in 
solicitations, contracts, and orders below the $650,000 or $1.5 million 
level for non-construction or construction contracts, respectively, but 
which meet the requirements of paragraphs (b)(2) and (3) of this 
section, and in the opinion of the contracting officer, offer 
substantial opportunities for Indian employment, training, and 
subcontracting.



           Subpart 326.6_Acquisitions Under the Buy Indian Act



326.600  Scope of subpart.

    This subpart sets forth the policy on preferential acquisition from 
Indians under the negotiation authority of the Buy Indian Act. This 
subpart applies only to acquisitions made by or on behalf of Indian 
Health Service (IHS).



326.601  Policy.

    (a) IHS shall utilize the negotiation authority of the Buy Indian 
Act to give preference to Indians whenever authorized and practicable. 
The Buy Indian Act, 25 U.S.C. 47, prescribes the application of the 
advertising requirements of 41 U.S.C. 6101 to the acquisition of Indian 
supplies. As specified in 25 U.S.C. 47, the Buy Indian Act provides 
that, so far as practicable, the Government shall employ Indian labor 
and, at the discretion of the Secretary of the Interior, purchase 
products of Indian industry (including, but not limited to printing, 
notwithstanding any other law) from the open market.
    (b) Due to the transfer of authority from the Department of the 
Interior to HHS, the Secretary of HHS may use the Buy Indian Act to 
acquire products of Indian industry in connection with the maintenance 
and operation of Indian hospital and health facilities, and for the 
overall conservation of Indian health. This authority is exclusively 
delegated to IHS and is not available for use by any other HHS component 
(unless that component makes an acquisition on behalf of IHS). However, 
the Buy Indian Act itself does not exempt IHS from meeting the 
statutorily mandated small business goals.
    (c) Subsequent legislation, particularly Public Law 94-437 and 
Public Law 96-537, emphasize using the Buy Indian Act negotiation 
authority.

[[Page 28]]



326.602  Definitions.

    (a) Buy Indian contract means any contract involving activities 
covered by the Buy Indian Act and negotiated under the provisions of 41 
U.S.C. 3104 and 25 U.S.C. 47 between an Indian firm and a contracting 
officer representing IHS.
    (b) Indian means a member of any tribe, pueblo, band, group, 
village, or community recognized by the Secretary of the Interior as 
being Indian or any individual or group of individuals recognized by the 
Secretary of the Interior or the Secretary of HHS. The Secretary of HHS 
in making determinations may take into account the determination of the 
tribe with which affiliation is claimed.
    (c) Indian firm means a sole enterprise, partnership, corporation, 
or other type of business organization owned, controlled, and operated 
by:
    (1) One or more Indians (including, for the purpose of sections 301 
and 302 of Public Law 94-437, former or currently federally recognized 
Indian tribes in the State of New York); or
    (2) By an Indian firm (as defined in paragraph (1) of this 
definition); or
    (3) A nonprofit firm organized for the benefit of Indians and 
controlled by Indians (see 326.601(a)).
    (d) Product of Indian industry means anything produced by Indians 
through either physical labor or intellectual effort involving the use 
and application of their skills. To classify as a product of Indian 
industry, the total cost of the item's production must equal or exceed 
51 percent Indian effort.



326.603  Requirements.

    (a) Indian ownership. Indian ownership shall constitute at least 51 
percent of an Indian firm during the period covered by a Buy Indian 
contract.
    (b) Joint ventures. An Indian firm may enter into a joint venture 
with other entities for specific projects as long as the Indian firm is 
the managing partner. However, the contracting officer shall approve the 
joint venture prior to the award of a contract under the Buy Indian Act.
    (c) Bonds. In the case of contracts for the construction, 
alteration, or repair of public buildings or public works, the Miller 
Act (40 U.S.C. 3131 et seq.) and Federal Acquisition Regulation (FAR) 
part 28 require performance and payment bonds. Bonds are not required in 
the case of contracts with Indian tribes or public nonprofit 
organizations serving as governmental instrumentalities of an Indian 
tribe. However, bonds are required when dealing with private business 
entities owned by an Indian tribe or members of an Indian tribe. The 
contracting officer may require bonds of private business entities that 
are joint ventures with, or subcontractors of, an Indian tribe or a 
public nonprofit organization serving as a governmental instrumentality 
of an Indian tribe. A bid guarantee or bid bond is required only when a 
performance or payment bond is required.
    (d) Indian preference in employment, training and subcontracting. 
Contracts awarded under the Buy Indian Act are subject to the 
requirements of section 7(b) of the Indian Self-Determination and 
Education Assistance Act 25 U.S.C. 450e, which requires giving 
preference to Indians in employment, training, and subcontracting. The 
contracting officer shall include the Indian Preference clause specified 
at 326.505(a) in all Buy Indian solicitations and resultant contracts. 
The contracting officer shall use the Indian Preference Program clause 
specified at 326.505(b). The contracting officer shall follow all 
requirements specified in subpart 326.2 which apply to a Buy Indian 
acquisition (e.g., 326.604 and 326.605).
    (e) Subcontracting. A contractor shall not subcontract more than 50 
percent of the work under a prime contract awarded pursuant to the Buy 
Indian Act to non-Indian firms. For this purpose, contract work does not 
include the provision of materials, supplies, or equipment.
    (f) Wage rates. The contracting officer shall include a 
determination of the minimum wage rates by the Secretary of Labor as 
required by the Davis-Bacon Act (40 U.S.C. 276a) in all contracts 
awarded under the Buy Indian Act for over $2,000 for construction, 
alteration, or repair, including painting and decorating, of public 
buildings and public works, except contracts with Indian tribes or 
public nonprofit organizations serving as governmental instrumentalities 
of an Indian tribe.

[[Page 29]]

    The contracting officer shall include the wage rate determination in 
contracts with private business entities, even when owned by an Indian 
tribe or a member of an Indian tribe and in connection with joint 
ventures with, or subcontractors of, an Indian tribe or a public 
nonprofit organization serving as a governmental instrumentality of an 
Indian tribe.



326.604  Competition.

    (a) Contracts awarded under the Buy Indian Act are subject to 
competition among Indians or Indian firms to the maximum extent 
practicable. When the contracting officer determines that competition is 
not practicable, a justification and approval is required in accordance 
with subpart 306.3.
    (b) The contracting officer shall: Synopsize and publicize 
solicitations in the Government point of entry and provide copies of the 
synopses to the tribal office of the Indian tribal government directly 
concerned with the proposed acquisition as well as to Indian firms and 
others having a legitimate interest. The synopses shall state that the 
acquisitions are restricted to Indian firms under the Buy Indian Act.



326.605  Responsibility determinations.

    (a) The contracting officer may award a contract under the Buy 
Indian Act only if it is determined that the contractor will likely 
perform satisfactorily and properly complete or maintain the contracted 
project or function.
    (b) The contracting officer shall make the written determination 
specified in paragraph (a) of this section prior to the award of a 
contract. The determination shall reflect an analysis of FAR 9.104-1 
standards.



    Subpart 326.7_Acquisitions Requiring the Native American Graves 
                     Protection and Repatriation Act



326.700  Scope of subpart.

    Public Law 101-601, dated November 16, 1990, also known as the 
Native American Graves Protection and Repatriation Act, imposes certain 
responsibilities on individuals and organizations when they discover 
Native American cultural items (including human remains) on Federal or 
tribal lands.



326.701  Applicability.

    The contracting officer shall insert the clause at 352.226-3, Native 
American Graves Protection and Repatriation Act, in solicitations, 
contracts, and orders requiring performance on tribal lands or those for 
construction projects on Federal or tribal lands.

[[Page 30]]



              SUBCHAPTER E_GENERAL CONTRACTING REQUIREMENTS





PART 327_PATENTS, DATA, AND COPYRIGHTS--Table of Contents



         Subpart 327.3_Patent Rights Under Government Contracts

Sec.
327.303  Solicitation provision and contract clause.

               Subpart 327.4_Rights in Data and Copyrights

327.404-70  Solicitation provision and contract clause.
327.409  Solicitation provision and contract clause.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



         Subpart 327.3_Patent Rights Under Government Contracts



327.303  Solicitation provision and contract clause.

    The contracting officer shall insert the clause at 352.227-11, 
Patent Rights--Exceptional Circumstances and any appropriate alternates 
in lieu of Federal Acquisition Regulation (FAR) 52.227-11 whenever a 
Determination of Exceptional Circumstances (DEC) involving the provision 
of materials that has been executed in accordance with Agency policy and 
procedures calls for its use and the clause at 352.227-11, Patent 
Rights--Exceptional Circumstances, appropriately covers the 
circumstances. The contracting officer should reference the DEC in the 
solicitation and shall attach a copy of the executed DEC to the 
contract.



               Subpart 327.4_Rights in Data and Copyrights



327.404-70  Solicitation provision and contract clause.

    The contracting officer shall insert the clause at 352.227-70, 
Publications and Publicity, in solicitations, contracts, and orders that 
involve requirements which could lead to the contractor's publishing the 
results of its work under the contract.



327.409  Solicitation provision and contract clause.

    The contracting officer shall insert the clause at 352.227-14, 
Rights in Data--Exceptional Circumstances, and any appropriate 
alternates in lieu of the FAR clause at 52.227-14, Rights in Data-
General, whenever a DEC executed in accordance with Agency policy and 
procedures calls for its use. Prior to using this clause, a DEC must be 
executed in accordance with Agency policy and procedures. The 
contracting officer should reference the DEC in the solicitation and 
shall attach a copy of the executed DEC to the contract.

                           PART 328 [RESERVED]



PART 330_COST ACCOUNTING STANDARDS--Table of Contents



                 Subpart 330.2_CAS Program Requirements

Sec.
330.201  Contract requirements.
330.201-5  Waiver.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                 Subpart 330.2_CAS Program Requirements



330.201  Contract requirements.



330.201-5  Waiver.

    The Senior Procurement Executive (SPE) shall exercise the waiver 
authority under Federal Acquisition Regulation 30.201-5(a)(2). Operating 
Divisions and Staff Divisions shall forward waiver requests to the SPE.



PART 331_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents



    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.

[[Page 31]]



                       Subpart 331.1_Applicability



331.101-70  Salary rate limitation.

    (a) Beginning in fiscal year 1990, Congress has stipulated in the 
Department of Health and Human Services appropriations acts and 
continuing resolutions that, under applicable contracts, appropriated 
funds cannot be used to pay the direct salary of an individual above the 
stipulated rates. The applicable rates for each year are identified at 
www.opm.gov.
    (b) The contracting officer shall insert the clause at 352.231-70, 
Salary Rate Limitation, in solicitations and contracts when a cost-
reimbursement; fixed-price level-of-effort; time-and-materials; or 
labor-hour contract is contemplated.



PART 332_CONTRACT FINANCING--Table of Contents



         Subpart 332.4_Advance Payments for Non-Commercial Items

Sec.
332.402  General.
332.407  Interest.

              Subpart 332.5_Progress Payments Based on Cost

332.501  General.
332.501-2  Unusual progress payments.

                     Subpart 332.7_Contract Funding

332.702  Policy.
332.703  Contract funding requirements.
332.703-1  General.
332.703-71  Incrementally funded cost-reimbursement contracts.
332.703-72  Incremental Funding Table.
332.706  Solicitation provision and contract clauses.
332.706-2  Provision and clauses for limitation of cost or funds.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



         Subpart 332.4_Advance Payments for Non-Commercial Items



332.402  General.

    (e) The head of the contracting activity (HCA) (non-delegable) shall 
make determinations related to advanced payments and assure compliance 
with FAR 32.402.



332.407  Interest.

    (d) The HCA (non-delegable) shall make the determinations in FAR 
32.407(d).



              Subpart 332.5_Progress Payments Based on Cost



332.501  General.



332.501-2  Unusual progress payments.

    (a)(3) The HCA (non-delegable) shall approve unusual progress 
payments.



                     Subpart 332.7_Contract Funding



332.702  Policy.

    Departmental employees shall report any suspected violation of the 
Anti-Deficiency Act (31 U.S.C. 1341, 13 U.S.C. 1342, and 31 U.S.C. 1517) 
immediately to the Operating Division's Chief Financial Officer (CFO), 
who in turn will report the matter to the HHS Deputy CFO.



332.703  Contract funding requirements.



332.703-1  General.

    (b) The following requirements govern all solicitations and 
contracts using incremental funding, as appropriate:
    (1) The contracting officer shall consider the estimated total cost 
of the contract, including all planned increments of performance when 
determining the requirements that must be met before contract execution 
(e.g., Justification and Approvals, clearances, and approvals).
    (2) The solicitation and resultant contract shall include a 
statement of work or performance work statement that describes the total 
project, covers all proposed increments of performance, and contains a 
schedule of planned increments of performance. No funding increment may 
exceed 1 year, and the services rendered during each increment of 
performance must provide a specific material benefit that can stand 
alone if the remaining effort is not funded. The resultant contract 
shall also include the corresponding

[[Page 32]]

amount of funds planned for obligation for each increment of 
performance.
    (3) The contracting officer shall request that offerors respond to 
the solicitation with technical and cost proposals for the entire 
project, and shall require distinct technical and cost break-outs of the 
planned increments of performance.
    (4) Proposals shall be evaluated and any discussions and 
negotiations shall be conducted based upon the total project, including 
all planned increments of performance.



332.703-71  Incrementally funded cost-reimbursement contracts.

    Incremental funding may be used in cost-reimbursement contracts for 
severable services only when all of the following circumstances are 
present:
    (a) Funding of increments after the initial increment of performance 
is provided from the appropriation account available for obligation at 
that time;
    (b) The project represents a bona fide need of the fiscal year in 
which the contract is awarded and initially funded (i.e., the initial 
increment of performance) and is also a bona fide need of each 
subsequent fiscal year whose appropriation will be used; and
    (c) The project's significance provides reasonable assurance that 
subsequent year appropriations will be made available to fund the 
project's continuation and completion.



332.703-72  Incremental Funding Table.

    (a) The contracting officer shall insert substantially the following 
language in Section B: Supplies or Services and Prices or Costs, Table 
1, in all cost-reimbursement contracts for severable services using 
incremental funding. The language requires the contracting officer to:
    (1) Insert the initial funding obligated by the award;
    (2) Identify the increment of performance covered by the funding 
provided; and
    (3) Specify the start and end dates for each increment of 
performance, as required by the ``Limitation of Funds'' clause at FAR 
52.232-22.
    (b) Modification of the language is permitted to fit specific 
circumstances of the contract, including but not limited to language 
necessary to reflect the specific type of cost reimbursement contract 
awarded, but the language may not be omitted completely.

       Table 1--B. __Estimated Cost--Incrementally Funded Contract

    (a) The total estimated cost to the Government for full performance 
of this contract, including all allowable direct and indirect costs, is 
$__ [insert full amount].
    (b) The following represents the schedule* by which the Government 
expects to allot funds to this contract:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Start date of                                                                             Estimated cost plus
 CLIN, task number, or description        increment of        End date of increment    Estimated cost ($)        Fee ($) (as            fee ($) (as
                                           performance           of performance                                  appropriate)           appropriate)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                     ......................  ......................  .....................
                                    --------------------------------------------------------------------------------------------------------------------
                                     ......................  ......................  .....................
                                    --------------------------------------------------------------------------------------------------------------------
                                     ......................  ......................  .....................
                                    --------------------------------------------------------------------------------------------------------------------
                                     ......................  ......................  .....................
                                    --------------------------------------------------------------------------------------------------------------------
                                     ......................  ......................  .....................
                                    --------------------------------------------------------------------------------------------------------------------
                                     ......................  ......................  [Total]..............  [Total]..............  [Total]
--------------------------------------------------------------------------------------------------------------------------------------------------------

    * To be inserted after negotiation
    (c) Total funds currently obligated and available for payment under 
this contract are $__ [insert amount funded to date].
    (d) The contracting officer may issue unilateral modifications to 
obligate additional funds to the contract and make related changes to 
paragraphs (b) and/or (c) above.

[[Page 33]]

    (e) Until this contract is fully funded, the requirements of the 
clause at FAR 52.232-22, Limitation of Funds, shall govern. Once the 
contract is fully funded, the requirements of the clause at FAR 52.232-
20, Limitation of Cost, govern.



332.706  Solicitation provision and contract clauses.



332.706-2  Provision and clauses for limitation of cost or funds.

    (b) In addition to the clause at FAR 52.232-22, Limitation of Funds, 
the contracting officer shall insert the provision at 352.232-70, 
Incremental Funding, in all solicitations when a cost-reimbursement 
contract for severable services using incremental funding is 
contemplated. The provision requires the contracting officer to insert a 
specific increment of performance that the initial funding is expected 
to cover.



PART 333_PROTESTS, DISPUTES, AND APPEALS--Table of Contents



                         Subpart 333.1_Protests

Sec.
333.102  General.
333.103  Protests to the agency.

                   Subpart 333.2_Disputes and Appeals

333.203  Applicability.
333.209  Suspected fraudulent claims.
333.215-70  Contract clauses.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                         Subpart 333.1_Protests



333.102  General.

    (g)(1) The Office of General Counsel-General Law Division serves as 
the liaison for protests lodged with the Government Accountability 
Office (GAO); is designated as the office responsible for all protests 
within the Department of Health and Human Services; and serves as the 
notification point with GAO for all protests.
    (2) The contracting officer will follow the direction of the 
Operating Division's protest control officer for responding to protests 
whether they are filed with GAO or directly with the contracting 
officer.



333.103  Protests to the agency.

    (f)(1) Protests to the contracting officer must be in writing. The 
contracting officer is authorized to make the determination, using the 
criteria in Federal Acquisition Regulation 33.104(b), to award a 
contract notwithstanding the protest after obtaining the concurrence of 
the contracting activity's protest control officer and consulting with 
the appropriate legal office.



                   Subpart 333.2_Disputes and Appeals



333.203  Applicability.

    (c) The Civilian Board of Contract Appeals is the authorized 
``Board'' to hear and determine disputes for the Department.



333.209  Suspected fraudulent claims.

    The contracting officer shall submit any instance of a contractor's 
suspected fraudulent claim to the Office of Inspector General for 
investigation.



333.215-70  Contract clauses.

    (a) The contracting officer shall insert the clause at 352.233-70, 
Choice of Law (Overseas), in solicitations and contracts when 
performance will be outside the United States, its possessions, and 
Puerto Rico, except as otherwise provided in a government-to-government 
agreement.
    (b) The contracting officer shall insert the clause at 352.233-71, 
Litigation and Claims, in solicitations and contracts when a cost-
reimbursement, time-and-materials, or labor-hour contract is 
contemplated (other than a contract for a commercial item).

[[Page 34]]



             SUBCHAPTER F_SPECIAL CATEGORIES OF CONTRACTING





PART 334_MAJOR SYSTEM ACQUISITION--Table of Contents



              Subpart 334.2_Earned Value Management System

Sec.
334.201  Policy.
334.202  Integrated Baseline Reviews (IBRs).

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



              Subpart 334.2_Earned Value Management System



334.201  Policy.

    The Department of Health and Human Services applies the earned value 
management system requirement as follows:
    (a) For cost or incentive contracts and subcontracts valued at $20 
million or more, the contractor's earned value management system shall 
comply with the guidelines in the American National Standards Institute/
Electronic Industries Alliance Standard 748, Earned Value Management 
Systems (ANSI/EIA-748).
    (b) For cost or incentive contracts and subcontracts valued at $50 
million or more, the contractor shall have an earned value management 
system that has been determined by the cognizant Federal agency to be in 
compliance with the guidelines in ANSI/EIA-748.
    (c) For cost or incentive contracts and subcontracts valued at less 
than $20 million--
    (1) The application of earned value management is optional at the 
discretion of the program/project manager and is a risk-based decision 
that must be supported by a cost/benefit analysis; and
    (2) A decision to apply earned value management shall be documented 
in the contract file.
    (d) For firm-fixed-price contracts and subcontracts of any dollar 
value the application of earned value management is discouraged.



334.202  Integrated Baseline Reviews (IBRs).

    (a) An IBR normally should be conducted as a post-award activity. A 
pre-award IBR may be conducted only if--
    (1) The acquisition plan contains documentation that demonstrates 
the need and rationale for a pre-award IBR, including an assessment of 
the impact on the source selection schedule and the expected benefits;
    (2) The use of a pre-award IBR is approved in writing by the head of 
the contracting activity prior to the issuance of the solicitation;
    (3) The source selection plan and solicitation specifically 
addresses how the results of a pre-award IBR will be used during source 
selection, including any weight to be given to it in source evaluation; 
and
    (4) Specific arrangements are made, and budget authority is 
provided, to compensate all offerors who prepare for or participate in a 
pre-award IBR; and the solicitation informs prospective offerors of the 
means for and conditions of such compensation.



PART 335_RESEARCH AND DEVELOPMENT CONTRACTING--Table of Contents



Sec.
335.070  Cost-sharing.
335.070-1  Policy.
335.070-2  Amount of cost-sharing.
335.070-3  Method of cost-sharing.
335.071  [Reserved]
335.072  Key personnel.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



335.070  Cost-sharing.



335.070-1  Policy.

    (a) Contracting activities should encourage contractors to 
contribute to the cost of performing research and development (R&D), 
through the use of cost-sharing contracts, where there is a probability 
that the contractor will receive present or future benefits from 
participation as described in Federal Acquisition Regulation (FAR) 
16.303.

[[Page 35]]

Examples include increased technical know-how, training for employees, 
acquisition of goods or services, development of a commercially viable 
product that can be sold in the commercial market and use of background 
knowledge in future contracts. Cost-sharing is intended to serve the 
mutual interests of the Government and its contractors by helping to 
ensure efficient utilization of the resources available for the conduct 
of R&D projects and by promoting sound planning and prudent fiscal 
policies of the contractor. The Government's interest includes positive 
impact on the community at large.
    (b) The contracting officer should use a cost-sharing contract for 
R&D contracts, unless the contracting officer determines that a request 
for cost-sharing would not be appropriate.
    (c) Any determination made by a contracting officer as described in 
this section shall be evidenced by appropriate documentation in the 
contract file.



335.070-2  Amount of cost-sharing.

    When cost-sharing is appropriate, the contracting officer shall use 
the following guidelines to determine the amount of cost participation 
by the contractor:
    (a) The amount of cost participation depends on the extent to which 
the R&D effort or results are likely to enhance the contractor's 
capability, expertise, or competitive position, and the value of this 
enhancement to the contractor. Therefore, contractor cost participation 
could reasonably range from as little as one percent or less of the 
total project cost to more than 50 percent of the total project cost. 
Ultimately, cost-sharing is a negotiable item. As such, the amount of 
cost-sharing shall be proportional to the anticipated value of the 
contractor's gain.
    (b) If the contractor will not acquire title to, or the right to 
use, inventions, patents, or technical information resulting from the 
R&D project, it is normally appropriate to obtain less cost-sharing than 
in cases in which the contractor acquires these rights.
    (c) If the R&D is expected to be of only minor value to the 
contractor, and if a statute does not require cost-sharing, it may be 
appropriate for the contractor to make a contribution in the form of a 
reduced fee or profit rather than sharing costs of the project. 
Alternatively, a limitation on indirect cost rates might be appropriate. 
See FAR 42.707. See also, FAR 16.303.
    (d) The contractor's participation may be considered over the total 
term of the project, so that a relatively high contribution in 1 year 
may be offset by a relatively low contribution in another. Care must be 
exercised that the intent to cost-share in future years does not become 
illusory. Redetermination of the cost sharing arrangement might be 
appropriate depending on future circumstances.
    (e) A relatively low degree of cost-sharing may be appropriate if an 
area of R&D requires special stimulus in the national interest.



335.070-3  Method of cost-sharing.

    Cost-sharing on individual contracts may be accomplished either by a 
contribution of part or all of one or more elements of allowable cost of 
the work being performed or by a fixed amount or stated percentage of 
the total allowable costs of the project. Contractors shall not charge 
costs contributed to the Government under any other instrument (e.g., 
grant or contract), including allocations to other instruments as part 
of any independent R&D program.



335.071  [Reserved]



335.072  Key personnel.

    If the contracting officer determines that the personnel to be 
assigned to perform effort on an R&D contract are critical to the 
success of the R&D effort, or were a critical factor in the award of the 
contract, then the contracting officer should consider using the key 
personnel clause at 352.237-75, Key Personnel.



PART 336_CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS--Table of Contents



                          Subpart 336.1_General

Sec.
336.104  Policy.

[[Page 36]]

                      Subpart 336.5_Contract Clause

336.570  Contract clause.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                          Subpart 336.1_General



336.104  Policy.

    Contracting officers shall follow the policies described in Federal 
Acquisition Regulation 36.104 and the guidance promulgated by the 
Department of Health and Human Services Facilities Management.



                      Subpart 336.5_Contract Clause



336.570  Contract clause.

    (a) The contracting officer shall insert the clause at 352.236-70, 
Design-Build Contracts, in all solicitations and contracts for all 
design-build requirements.
    (b) The contracting officer shall use Alternate I to the clause at 
352.236-70, Design-Build Contracts, in all solicitations and contracts 
for construction when Fast-Track procedures are being used.
    (c) Due to the importance of maintaining consistency in the 
contractor's personnel during design-build construction, the contracting 
officer should consider including the clause at 352.237-75, Key 
personnel.



PART 337_SERVICE CONTRACTING_GENERAL--Table of Contents



    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                 Subpart 337.1_Service Contracts_General



337.103  Contracting officer responsibility.

    (d)(1) The contracting officer shall insert the clause at 352.237-
70, Pro-Children Act, in solicitations, contracts, and orders that 
involve:
    (i) Kindergarten, elementary, or secondary education or library 
services; or
    (ii) Health or daycare services that are provided to children under 
the age of 18 on a routine or regular basis pursuant to the Pro-Children 
Act of 1994 (20 U.S.C. 6081-6084).
    (2) The contracting officer shall insert the clause at 352.237-71, 
Crime Control Act--Reporting of Child Abuse, in solicitations, 
contracts, and orders that require performance on Federal land or in a 
federally operated (or contracted) facility and involve the professions/
activities performed by persons specified in the Crime Control Act of 
1990 (42 U.S.C. 13031) including, but not limited to, teachers, social 
workers, physicians, nurses, dentists, health care practitioners, 
optometrists, psychologists, emergency medical technicians, alcohol or 
drug treatment personnel, child care workers and administrators, 
emergency medical technicians and ambulance drivers.
    (3) The contracting officer shall insert the clause at 352.237-72, 
Crime Control Act--Requirement for Background Checks, in solicitations, 
contracts, and orders that involve providing child care services to 
children under the age of 18, including social services, health and 
mental health care, child- (day) care, education (whether or not 
directly involved in teaching), and rehabilitative programs covered 
under the Crime Control Act of 1990 (42 U.S.C. 13041).
    (4) Contracting officers supporting the Indian Health Service shall 
insert the clause at 352.237-73, Indian Child Protection and Family 
Violence Act in all solicitations, contracts, and orders when 
performance of the contract may involve regular contact with or control 
over Indian children. The required declaration shall also be included in 
Section J of the solicitation and contract.
    (e) The contracting officer shall insert the clause at 352.237-74, 
Non-Discrimination in Service Delivery, in solicitations, contracts, and 
orders to deliver services under HHS' programs directly to the public.
    (f) The contracting officer shall insert the clause at 352.237-75, 
Key Personnel, in solicitations and contracts when the contracting 
officer will require the contractor to designate contractor key 
personnel.

[[Page 37]]



PART 339_ACQUISITION OF INFORMATION TECHNOLOGY--Table of Contents



                          Subpart 339.1_General

Sec.
339.101  Policy.

           Subpart 339.2_Electronic and Information Technology

339.203  Applicability.
339.203-70  Contract clauses for electronic and information technology 
          (EIT) acquisitions.
339.204  Exceptions.
339.204-1  Approval of exceptions.
339.205  Section 508 accessibility standards for contracts.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                          Subpart 339.1_General



339.101  Policy

    In addition to the regulatory guidance in Federal Acquisition 
Regulation part 39, contracting officers shall collaborate with the 
requiring activity to ensure information technology (IT) acquisitions 
for supplies, services, and systems meet the requirements established by 
the Department of Health and Human Services (HHS).



           Subpart 339.2_Electronic and Information Technology



339.203  Applicability.

    (a) Electronic and information technology (EIT) supplies and 
services must comply with Section 508 of the Rehabilitation Act (the 
Act) of 1973 (29 U.S.C. 794d), as amended by the Workforce Investment 
Act of 1998, and the Architectural and Transportation Barriers 
Compliance Board (Access Board) Electronic and Information Accessibility 
Standards (36 CFR part 1194). Requiring activities must consult with 
their Section 508 Official or designee to determine if the contractor 
should be responsible for compliance with EIT accessibility standards 
which apply to Web site content and communications material.
    (1) When conducting a procurement and employing the best value 
continuum, the solicitation shall include a separate technical 
evaluation factor developed by the contracting officer, requiring 
activity, and the Operating Division (OPDIV) Section 508 Official or 
designee.
    (2) At a minimum, solicitations for supplies and services shall 
require the submission of a Section 508 Product Assessment Template (See 
http://www.hhs.gov/web/508 for the template). Solicitations for services 
shall include any other pertinent information that the contracting 
officer deems necessary to evaluate the offeror's ability to meet the 
applicable Section 508 accessibility standards.
    (3) The HHS Operating Division or Staff Division (OPDIV or STAFFDIV) 
Section 508 Official or designee is responsible for providing technical 
assistance in development of Section 508 evaluation factors.
    (4) Before conducting negotiations or making an award, the 
contracting officer shall provide a summary of the Source Selection 
Evaluation Team's (SSET) assessment of offeror responses to the 
solicitation's Section 508 evaluation factor. This summary shall be 
submitted for review by the Section 508 Official or designee. The 
Section 508 Official or designee shall indicate approval or disapproval 
of the SSET assessment. The contracting officer shall coordinate the 
resolution of any issues raised by the Section 508 Official or designee 
with the chair of the SSET or requiring activity representative, as 
appropriate. The acquisition process shall not proceed until the Section 
508 Official or designee approves the SSET assessment. The contracting 
officer shall include the assessment in the official contract file. See 
339.204-1 regarding processing exception determination requests.
    (b) When acquiring commercial items, if no commercially available 
supplies or services meet all of the applicable Section 508 
accessibility standards, OPDIVs or STAFFDIVs shall, under the direction 
and approval of the Section 508 Official or designee, acquire the 
supplies and services that best meet the applicable Section 508 
accessibility standards. Process exception determinations for EIT 
supplies and

[[Page 38]]

services not meeting applicable Section 508 accessibility standards in 
accordance with 339.204-1.



339.203-70  Contract clauses for electronic and information technology
(EIT) acquisitions.

    (a) The contracting officer shall insert the provision at 352.239-
73, Electronic and Information Technology Accessibility Notice, in all 
solicitations.
    (b) The contracting officer shall insert the clause at 352.239-74, 
Electronic and Information Technology Accessibility, in all contracts 
and orders.



339.204  Exceptions.



339.204-1  Approval of exceptions.

    (a) Procedures to document exception and determination requests are 
set by the OPDIV Section 508 Official.
    (b) In the development of an acquisition plan (AP) or other 
acquisition request document, the contracting officer shall ensure that 
all Section 508 exception determination requests for applicable EIT 
requirements are:
    (1) Documented and certified in accordance with the requirements of 
the HHS Section 508 policy;
    (2) Signed by the requestor in the requiring activity;
    (3) Certified and approved by the OPDIV Section 508 Official or 
designee; and
    (4) Included in the AP or other acquisition request document 
provided by the requiring activity to the contracting office.
    (c) For instances with an existing technical evaluation and no 
organization's proposed supplies or services meet all of the Section 508 
accessibility standards; in order to proceed with the acquisition, the 
requiring activity shall provide an exception determination request 
along with the technical evaluation team's assessment of the Section 508 
evaluation factor to the designated Section 508 Official or designee for 
review and approval or disapproval. The contracting officer shall 
include the Section 508 Official's or designee's approval or disapproval 
of the exception determination request in the official contract file and 
reference it, as appropriate, in all source selection documents. For 
further information, see HHS Section 508 Policy on http://www.hhs.gov/
web/508.



339.205  Section 508 accessibility standards for contracts.

    (a) Section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 
794(d)), as amended by the Workforce Investment Act of 1998 (Section 
508), specifies the applicable accessibility standards for all new 
solicitations and new or existing contracts or orders, regardless of EIT 
dollar amount.
    (b) The requiring activity shall consult with the OPDIV or STAFFDIV 
Section 508 Official or designee, as necessary, to determine the 
applicability of Section 508, identify applicable Section 508 
accessibility standards, and resolve any related issues before 
forwarding a request to the contracting or procurement office for the 
acquisition of EIT supplies and services--including Web site content and 
communications material for which the contractor must meet EIT 
accessibility standards.
    (c) Based on those discussions, the requiring activity shall provide 
a statement in the AP (or other acquisition request document) for 
Section 508 applicability. See 307.105. If Section 508 applies to an 
acquisition, include the provision at 352.239-73, Electronic and 
Information Technology and Accessibility Notice, language in a separate, 
clearly designated, section of the statement of work or performance work 
statement, along with any additional information applicable to the 
acquisition's Section 508 accessibility standards (e.g., the list of 
applicable accessibility standards of the Access Board EIT Accessibility 
Standards (36 CFR part 1194)). If an AP does not address Section 508 
applicability and it appears an acquisition involves Section 508, or if 
the discussion of Section 508 applicability to the acquisition is 
inadequate or incomplete, the contracting officer shall request the 
requiring activity modify the AP accordingly.
    (d) Items provided incidental to contract administration are not 
subject to this section.
    (e) The OPDIV Section 508 Official or designee may, at his or her 
discretion, require review and approval of solicitations and contracts 
for EIT supplies and services.

[[Page 39]]



                    SUBCHAPTER G_CONTRACT MANAGEMENT





PART 342_CONTRACT ADMINISTRATION--Table of Contents



    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



                    Subpart 342.7_Indirect Cost Rates



342.705  Final indirect cost rates.

    Contract actions for which the Department of Health and Human 
Services is the cognizant Federal agency:
    (a) The Financial Management Services, Division of Cost Allocation, 
Program Support Center, shall establish facilities and administration 
costs, also known as indirect cost rates, research patient care rates, 
and, as necessary, fringe benefits, computer, and other special costing 
rates for use in contracts awarded to State and local governments, 
colleges and universities, hospitals, and other nonprofit organizations.
    (b) The National Institute of Health, Division of Financial Advisory 
Services, shall establish indirect cost rates and similar rates for use 
in contracts awarded to for profit organizations.

[[Page 40]]



                     SUBCHAPTER H_CLAUSES AND FORMS





PART 352_SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents



       Subpart 352.1_Instructions for Using Provisions and Clauses

Sec.
352.100  Scope of subpart.
352.101-70  Application of provisions and clauses.

              Subpart 352.2_Texts of Provisions and Clauses

352.203-70  Anti-Lobbying.
352.204-70  Prevention and Public Health Fund-Reporting Requirements.
352.208-70  Printing and Duplication.
352.211-1  Public Accommodations and Commercial Facilities.
352.211-2  Conference Sponsorship Request and Conference Materials 
          Disclaimer.
352.211-3  Paperwork Reduction Act.
352.215-70  Late Proposals and Revisions.
352.216-70  Additional Cost Principles for Hospitals (Profit or Non-
          Profit).
352.219-70  Mentor-Protege Program.
352.219-71  Mentor-Protege Program Reporting Requirements.
352.222-70  Contractor Cooperation in Equal Employment Opportunity 
          Investigations.
352.223-70  Safety and Health.
352.223-71  Instructions to Offerors-Sustainable Acquisition.
352.224-70  Privacy Act.
352.224-71  Confidential Information.
352.226-1  Indian Preference.
352.226-2  Indian Preference Program.
352.226-3  Native American Graves Protection and Repatriation Act.
352.227-11  Patent Rights--Exceptional Circumstances.
352.227-14  Rights in Data--Exceptional Circumstances.
352.227-70  Publications and Publicity.
352.231-70  Salary Rate Limitation.
352.232-70  Incremental Funding.
352.233-70  Choice of Law (Overseas).
352.233-71  Litigation and Claims.
352.236-70  Design-Build Contracts.
352.237-70  Pro-Children Act.
352.237-71  Crime Control Act--Reporting of Child Abuse.
352.237-72  Crime Control Act--Requirement for Background Checks.
352.237-73  Indian Child Protection and Family Violence Act.
352.237-74  Non-Discrimination in Service Delivery.
352.237-75  Key Personnel.
352.239-73  Electronic Information and Technology Accessibility Notice.
352.239-74  Electronic Information and Technology Accessibility.
352.270-1--352.270-3  [Reserved]
352.270-4a  Notice to Offerors, Protection of Human Subjects.
352.270-4b  Protection of Human Subjects.
352.270-5a  Notice to Offerors of Requirement for Compliance with the 
          Public Health Service Policy on Humane Care and Use of 
          Laboratory Animals.
352.270-5b  Care of Live Vertebrate Animals.
352.270-6  Restriction on Use of Human Subjects.
352.270-7--352.270-8  [Reserved]
352.270-9  Non-Discrimination for Conscience.
352.270-10  Notice to Offerors--Protection of Human Subjects, Research 
          Involving Human Subjects Committee (RIHSC) Approval of 
          Research Protocols Required.
352.270-11  Protection of Human Subjects, Research Involving Human 
          Subjects Committee (RIHSC) Approval of Research Protocols 
          Required.
352.270-12  Needle Exchange.
352.270-13  Continued Ban on Funding Abortion and Continued Ban on 
          Funding of Human Embryo Research.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.



       Subpart 352.1_Instructions for Using Provisions and Clauses



352.100  Scope of subpart.

    This subpart provides guidance for applying the Department of Health 
and Human Services provisions and clauses in solicitations, contracts, 
and orders.



352.101-70  Application of provisions and clauses.

    (a) If a clause is included in the master instrument (e.g., in an 
indefinite delivery/indefinite quantity contract or a blanket purchase 
agreement), it is not necessary to also include the clause in a task 
order or delivery order thereunder.
    (b) When a dollar amount or dollar threshold is specified (e.g., $25 
million or simplified acquisition threshold), the dollar amount of the 
award (contract or order) includes any options thereunder.

[[Page 41]]



              Subpart 352.2_Texts of Provisions and Clauses



352.203-70  Anti-Lobbying.

    As prescribed in HHSAR 303.808-70, the Contracting Officer shall 
insert the following clause:

                        Anti-Lobbying (DEC 2015)

    Pursuant to the HHS annual appropriations acts, except for normal 
and recognized executive-legislative relationships, the Contractor shall 
not use any HHS contract funds for:
    (a) Publicity or propaganda purposes;
    (b) The preparation, distribution, or use of any kit, pamphlet, 
booklet, publication, electronic communication, radio, television, or 
video presentation designed to support or defeat the enactment of 
legislation before the Congress or any State or local legislature or 
legislative body, except in presentation to the Congress or any state or 
local legislature itself; or designed to support or defeat any proposed 
or pending regulation, administrative action, or order issued by the 
executive branch of any state or local government, except in 
presentation to the executive branch of any state or local government 
itself; or
    (c) Payment of salary or expenses of the Contractor, or any agent 
acting for the Contractor, related to any activity designed to influence 
the enactment of legislation, appropriations, regulation, administrative 
action, or Executive order proposed or pending before the Congress or 
any state government, state legislature or local legislature or 
legislative body, other than for normal and recognized executive-
legislative relationships or participation by an agency or officer of a 
state, local, or tribal government in policymaking and administrative 
processes within the executive branch of that government.
    (d) The prohibitions in subsections (a), (b), and (c) above shall 
include any activity to advocate or promote any proposed, pending, or 
future federal, state, or local tax increase, or any proposed, pending, 
or future requirement for, or restriction on, any legal consumer 
product, including its sale or marketing, including, but not limited to, 
the advocacy or promotion of gun control.

                             (End of clause)



352.204-70  Prevention and Public Health Fund--Reporting Requirements.

    As prescribed in HHSAR 304.7201, insert the following clause:

  Prevention and Public Health Fund--Reporting Requirements (DEC 2015)

    (a) Pursuant to public law this contract requires the contractor to 
provide products or services or both that are funded from the Prevention 
and Public Health Fund (PPHF), Public Law 111-148, sec. 4002. Section 
220(b)(5) requires each contractor to report on its use of these funds 
under this contract. These reports will be made available to the public.
    (b) Semi-annual reports from the Contractor for all work funded, in 
whole or in part, by the PPHF, are due no later than 20 days following 
the end of each 6-month period. The 6-month reporting periods are 
January through June and July through December. The first report is due 
no later than 20 days after the end of the 6-month period following 
contract award. Subsequent reports are due no later than 20 days after 
the end of each reporting period. If applicable, the Contractor shall 
submit its final report for the remainder of the contract period no 
later than 20 days after the end of the reporting period in which the 
contract ended.
    (c) The Contractor shall provide the following information in an 
electronic and Section 508 compliant format to the Contracting Officer.
    (1) The Government contract and order number, as applicable.
    (2) The amount of PPHF funds invoiced by the contractor for the 
reporting period and the cumulative amount invoiced for the contract or 
order.
    (3) A list of all significant services performed or supplies 
delivered, including construction, for which the contractor invoiced in 
the reporting period.
    (4) Program or project title, if any.
    (5) The Contractor shall report any subcontract funded in whole or 
in part with PPHF funding, that is valued at $25,000 or more. The 
Contractor shall advise the subcontractor that the information will be 
made available to the public. The Contractor shall report:
    (i) Name and address of the subcontractor.
    (ii) Amount of the subcontract award.
    (iii) Date of the subcontract award.
    (iv) A description of the products or services (including 
construction) being provided under the subcontract.

                             (End of clause)



352.208-70  Printing and Duplication.

    As prescribed in HHSAR 308.803, the Contracting Officer shall insert 
the following clause:

                   Printing and Duplication (DEC 2015)

    (a) Unless otherwise specified in this contract, no printing by the 
Contractor or any

[[Page 42]]

subcontractor is authorized under this contract. All printing required 
must be performed by the Government Printing Office except as authorized 
by the Contracting Officer. The Contractor shall submit camera-ready 
copies to the Contracting Officer's Representative (COR). The terms 
``printing'' and ``duplicating/copying'' are defined in the Government 
Printing and Binding Regulations of the Joint Committee on Printing.
    (b) If necessary for performance of the contract, the Contractor may 
duplicate or copy less than 5,000 production units of only one page, or 
less than 25,000 production units in aggregate of multiple pages for the 
use of a department or agency. A production unit is defined as one 
sheet, size 8.5 x 11 inches, one side only, and one color. The pages may 
not exceed a maximum image size of 10\3/4\ by 14\1/4\ inches. This page 
limit applies to each printing requirement and not for all printing 
requirements under the entire contract.
    (c) Approval for all printing, as well as duplicating/copying in 
excess of the stated limits, shall be obtained from the COR who will 
consult with the designated publishing services office and provide 
direction to the contractor. The cost of any unauthorized printing or 
duplicating/copying under this contract will be considered an 
unallowable cost for which the Contractor will not be reimbursed.



352.211-1  Public Accommodations and Commercial Facilities.

    As prescribed in HHSAR 311.7102, the Contracting Officer shall 
insert the following clause:

       Public Accommodations and Commercial Facilities (DEC 2015)

    The Contractor agrees as follows:
    (a) Except for ad hoc meetings necessary or incidental to contract 
performance, the Contractor shall develop a plan to assure that any 
event held pursuant to this contract will meet or exceed the minimum 
accessibility standards set forth in 28 CFR part 36--Nondiscrimination 
on the Basis of Disability by Public Accommodations and in Commercial 
Facilities. The Contractor shall submit the plan to the Contracting 
Officer and must receive approval prior to the event. The Contractor may 
submit a consolidated or master plan for contracts requiring numerous 
events in lieu of separate plans.
    (b) The Contractor shall manage the contract in accordance with the 
standards set forth in 28 CFR part 36.

                             (End of clause)



352.211-2  Conference Sponsorship Requests and Conference Materials
Disclaimer.

    As prescribed in HHSAR 311.7202, the Contracting Officer shall 
insert the following clause:

Conference Sponsorship Request and Conference Materials Disclaimer (DEC 
                                  2015)

    (a) If HHS is not the sole provider of funding under this contract, 
then, prior to the Contractor claiming HHS conference sponsorship, the 
Contractor shall submit a written request (including rationale) to the 
Contracting Officer for permission to claim such HHS sponsorship.
    (b) Whether or not HHS is the conference sponsor, the Contractor 
shall include the following statement on conference materials, including 
promotional materials, agendas, and Web sites:
    ``This conference was funded, in whole or in part, through a 
contract (insert contract number) with the Department of Health and 
Human Services (HHS) (insert name of OPDIV or STAFFDIV). The views 
expressed in written conference materials and by speakers and moderators 
at this conference, do not necessarily reflect the official policies of 
HHS, nor does mention of trade names, commercial practices, or 
organizations imply endorsement by the U.S. Government.''
    (c) Unless authorized in writing by the Contracting Officer, the 
Contractor shall not display the HHS logo on any conference materials.

                             (End of clause)



352.211-3  Paperwork Reduction Act.

    As prescribed in HHSAR 311.7301, the Contracting Officer shall 
insert the following clause:

                   Paperwork Reduction Act (DEC 2015)

    (a) This contract involves a requirement to collect or record 
information calling either for answers to identical questions from 10 or 
more persons other than Federal employees, or information from Federal 
employees which is outside the scope of their employment, for use by the 
Federal government or disclosure to third parties; therefore, the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) shall apply to 
this contract. No plan, questionnaire, interview guide or other similar 
device for collecting information (whether repetitive or single time) 
may be used

[[Page 43]]

without the Office of Management and Budget (OMB) first providing 
clearance. Contractors and the Contracting Officer's Representative 
shall be guided by the provisions of 5 CFR part 1320, Controlling 
Paperwork Burdens on the Public, and seek the advice of the HHS 
operating division or Office of the Secretary Reports Clearance Officer 
to determine the procedures for acquiring OMB clearance.
    (b) The Contractor shall not expend any funds or begin any data 
collection until the Contracting Officer provides the Contractor with 
written notification authorizing the expenditure of funds and the 
collection of data. The Contractor shall allow at least 120 days for OMB 
clearance. The Contracting Officer will consider excessive delays caused 
by the Government which arise out of causes beyond the control and 
without the fault or negligence of the Contractor in accordance with the 
Excusable Delays or Default clause of this contract.

                             (End of clause)



352.215-70  Late Proposals and Revisions.

    As prescribed in HHSAR 315.208, the Contracting Officer shall insert 
the following provision:

            Late Proposals and Revisions (DEC 2015) Deviation

    Notwithstanding the procedures contained in FAR 52.215-1(c)(3) of 
the provision of this solicitation entitled Instructions to Offerors-
Competitive Acquisition, the Government may consider a proposal received 
after the date specified for receipt if it appears to offer significant 
cost or technical advantage to the Government and it was received before 
proposals were distributed for evaluation, or within 5 calendar days 
after the exact time specified for receipt, whichever is earlier.

                           (End of provision)



352.216-70  Additional Cost Principles for Hospitals (Profit and Non-Profit).

    As prescribed in HHSAR 316.307(a)(2), the Contracting Officer shall 
insert the following clause:

  Additional Cost Principles for Hospitals (Profit or Non-Profit) (DEC 
                                  2015)

    (a) Bid and proposal (B&P) costs. (1) B&P costs are the immediate 
costs of preparing bids, proposals, and applications for potential 
Federal and non-Federal contracts, grants, and agreements, including the 
development of scientific, cost, and other data needed to support the 
bids, proposals, and applications.
    (2) B&P costs of the current accounting period are allowable as 
indirect costs.
    (3) B&P costs of past accounting periods are unallowable in the 
current period. However, if the organization's established practice is 
to treat these costs by some other method, they may be accepted if they 
are found to be reasonable and equitable.
    (4) B&P costs do not include independent research and development 
(IR&D) costs covered by the following paragraph, or pre-award costs 
covered by paragraph 36 of Attachment B to OMB Circular A-122.
    (b) IR&D costs.
    (1) IR&D is research and development conducted by an organization 
which is not sponsored by Federal or non-Federal contracts, grants, or 
other agreements.
    (2) IR&D shall be allocated its proportionate share of indirect 
costs on the same basis as the allocation of indirect costs to sponsored 
research and development.
    (3) The cost of IR&D, including its proportionate share of indirect 
costs, is unallowable.

                             (End of clause)



352.219-70  Mentor-Protege Program.

    As prescribed in HHSAR 319.270-1(a), the Contracting Officer shall 
insert the following provision:

                    Mentor-Protege Program (DEC 2015)

    (a) Large business prime contractors serving as mentors in the HHS 
Mentor-Protege Program are eligible for HHS subcontracting plan credit, 
and shall submit a copy of their HHS Office of Small and Disadvantaged 
Business Utilization (OSDBU)-approved mentor-protege agreements as part 
of their offers. The amount of credit provided by the Contracting 
Officer to a mentor firm for protege firm developmental assistance costs 
shall be calculated on a dollar for dollar basis and reported by the 
mentor firm in the Summary Subcontract Report via the Electronic 
Subcontracting Reporting System (eSRS) at www.esrs.gov. The mentor firm 
and protege firm shall submit to the Contracting Officer a signed joint 
statement agreeing on the dollar value of the developmental assistance 
the mentor firm provided. (For example, a mentor firm would report a 
$10,000 subcontract awarded to a protege firm and provision of $5,000 of 
developmental assistance as $15,000 of subcontracting plan credit.) The 
mentor firm may use this additional credit towards attaining its 
subcontracting plan participation goal under this contract.
    (b) The program consists of--
    (1) Mentor firms--large businesses that:

[[Page 44]]

    (i) Demonstrate the interest, commitment, and capability to provide 
developmental assistance to small business protege firms; and
    (ii) Have a Mentor-Protege agreement approved by HHS' OSDBU;
    (2) Protege firms--firms that:
    (i) Seek developmental assistance;
    (ii) Qualify as small businesses, veteran-owned small businesses, 
service-disabled veteran-owned small businesses, HUBZone small 
businesses, small disadvantaged businesses, or woman-owned small 
businesses; and
    (iii) Have a Mentor-Protege agreement approved by HHS' OSDBU; and
    (3) Mentor-Protege agreements--joint agreements, approved by HHS' 
OSDBU, which detail the specific terms, conditions, and responsibilities 
of the mentor-protege relationship.

                           (End of provision)



352.219-71  Mentor-Protege Program Reporting Requirements.

    As prescribed in HHSAR 319.270-1(b), the Contracting Officer shall 
insert the following clause:

      Mentor-Protege Program Reporting Requirements (January 2010)

    The Contractor shall comply with all reporting requirements 
specified in its Mentor-Protege agreement approved by HHS' OSDBU.

                             (End of clause)



352.222-70  Contractor Cooperation in Equal Employment Opportunity 
Investigations.

    As prescribed in HHSAR 322.810(h), the Contracting Officer shall 
insert the following clause:

 Contractor Cooperation in Equal Employment Opportunity Investigations 
                               (DEC 2015)

    (a) In addition to complying with the clause at FAR 52.222-26, Equal 
Opportunity, the Contractor shall, in good faith, cooperate with the 
Department of Health and Human Services (Agency) in investigations of 
Equal Employment Opportunity (EEO) complaints processed pursuant to 29 
CFR part 1614. For purposes of this clause, the following definitions 
apply:
    (1) Complaint means a formal or informal complaint that has been 
lodged with Agency management, Agency EEO officials, the Equal 
Employment Opportunity Commission (EEOC), or a court of competent 
jurisdiction.
    (2) Contractor employee means all current Contractor employees who 
work or worked under this contract. The term also includes current 
employees of subcontractors who work or worked under this contract. In 
the case of Contractor and subcontractor employees, who worked under 
this contract, but who are no longer employed by the Contractor or 
subcontractor, or who have been assigned to another entity within the 
Contractor's or subcontractor's organization, the Contractor shall 
provide the Agency with that employee's last known mailing address, 
email address, and telephone number, if that employee has been 
identified as a witness in an EEO complaint or investigation.
    (3) Good faith cooperation cited in paragraph (a) includes, but is 
not limited to, making Contractor employees available for:
    (i) Formal and informal interviews by EEO counselors or other Agency 
officials processing EEO complaints;
    (ii) Formal or informal interviews by EEO investigators charged with 
investigating complaints of unlawful discrimination filed by Federal 
employees;
    (iii) Reviewing and signing appropriate affidavits or declarations 
summarizing statements provided by such Contractor employees during the 
course of EEO investigations;
    (iv) Producing documents requested by EEO counselors, EEO 
investigators, Agency employees, or the EEOC in connection with a 
pending EEO complaint; and
    (v) Preparing for and providing testimony in depositions or in 
hearings before the MSPB, EEOC and U.S. District Court.
    (b) The Contractor shall include the provisions of this clause in 
all subcontract solicitations and subcontracts awarded at any tier under 
this contract.
    (c) Failure on the part of the Contractor or its subcontractors to 
comply with the terms of this clause may be grounds for the Contracting 
Officer to terminate this contract for default.

                             (End of clause)



352.223-70  Safety and Health.

    As prescribed in HHSAR 323.7002, the Contracting Officer shall 
insert the following clause:

                      Safety and Health (DEC 2015)

    (a) To help ensure the protection of the life and health of all 
persons, and to help prevent damage to property, the Contractor shall 
comply with all Federal, State, and local laws and regulations 
applicable to the work being performed under this contract. These laws 
are implemented or enforced by the Environmental Protection Agency, 
Occupational Safety and Health Administration (OSHA) and other 
regulatory/enforcement agencies at the Federal, State, and local levels.
    (1) In addition, the Contractor shall comply with the following 
regulations when developing and implementing health and safety

[[Page 45]]

operating procedures and practices for both personnel and facilities 
involving the use or handling of hazardous materials and the conduct of 
research, development, or test projects:
    (i) 29 CFR 1910.1030, Bloodborne pathogens; 29 CFR 1910.1450, 
Occupational exposure to hazardous chemicals in laboratories; and other 
applicable occupational health and safety standards issued by OSHA and 
included in 29 CFR part 1910. These regulations are available at https:/
/www.osha.gov/.
    (ii) Nuclear Regulatory Commission Standards and Regulations, 
pursuant to the Energy Reorganization Act of 1974 (42 U.S.C. 5801 et 
seq.). The Contractor may obtain copies from the U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001.
    (2) The following Government guidelines are recommended for 
developing and implementing health and safety operating procedures and 
practices for both personnel and facilities:
    (i) Biosafety in Microbiological and Biomedical Laboratories, CDC. 
This publication is available at http://www.cdc.gov/biosafety/
publications/index.htm.
    (ii) Prudent Practices for Safety in Laboratories (1995), National 
Research Council, National Academy Press, 500 Fifth Street NW., Lockbox 
285, Washington, DC 20055 (ISBN 0-309-05229-7). This publication is 
available at http://www.nap.edu/catalog/4911/prudent-practices-in-the-
laboratory-handling-and-disposal-of-chemicals.
    (b) Further, the Contractor shall take or cause to be taken 
additional safety measures as the Contracting Officer, in conjunction 
with the Contracting Officer's Representative or other appropriate 
officials, determines to be reasonably necessary. If compliance with 
these additional safety measures results in an increase or decrease in 
the cost or time required for performance of any part of work under this 
contract, the Contracting Officer will make an equitable adjustment in 
accordance with the applicable ``Changes'' clause set forth in this 
contract.
    (c) The Contractor shall maintain an accurate record of, and 
promptly report to the Contracting Officer, all accidents or incidents 
resulting in the exposure of persons to toxic substances, hazardous 
materials or hazardous operations; the injury or death of any person; or 
damage to property incidental to work performed under the contract 
resulting from toxic or hazardous materials and resulting in any or all 
violations for which the Contractor has been cited by any Federal, State 
or local regulatory/enforcement agency. The report citing all accidents 
or incidents resulting in the exposure of persons to toxic substances, 
hazardous materials or hazardous operations; the injury or death of any 
person; or damage to property incidental to work performed under the 
contract resulting from toxic or hazardous materials and resulting in 
any or all violations for which the Contractor has been cited shall 
include a copy of the notice of violation and the findings of any 
inquiry or inspection, and an analysis addressing the impact these 
violations may have on the work remaining to be performed. The report 
shall also state the required action(s), if any, to be taken to correct 
any violation(s) noted by the Federal, State, or local regulatory/
enforcement agency and the time frame allowed by the agency to 
accomplish the necessary corrective action.
    (d) If the Contractor fails or refuses to comply with the Federal, 
State or local regulatory/enforcement agency's directive(s) regarding 
any violation(s) and prescribed corrective action(s), the Contracting 
Officer may issue an order stopping all or part of the work until 
satisfactory corrective action (as approved by the Federal, State, or 
local regulatory/enforcement agencies) has been taken and documented to 
the Contracting Officer. No part of the time lost due to any such stop 
work order shall form the basis for a request for extension or costs or 
damages by the Contractor.
    (e) The Contractor shall insert the substance of this clause in each 
subcontract involving toxic substances, hazardous materials, or 
hazardous operations. The Contractor is responsible for the compliance 
of its subcontractors with the provisions of this clause.

                             (End of clause)



352.223-71  Instructions to Offerors--Sustainable Acquisition.

    As prescribed in HHSAR 323.7103, the Contracting Officer shall 
insert the following provision:

      Instructions to Offerors--Sustainable Acquisition (DEC 2015)

    Offerors must include a Sustainable Acquisition Plan in their 
technical proposals. The Plan must describe their approach and the 
quality assurance mechanisms in place for applying FAR 23.1, Sustainable 
Acquisition Policy (and other Federal laws, regulations and Executive 
Orders governing sustainable acquisition purchasing) to this 
acquisition. The Plan shall clearly identify those products and services 
included in Federal sustainable acquisition preference programs by 
categorizing them along with their respective price/cost in the 
following eight groups: Recycled Content, Energy Efficient, Biobased, 
Environmentally Preferable, Electronic Product Environment Assessment 
Tool, Water-Efficient, Non-Ozone Depleting Substances, and Alternative 
Fuel Vehicle and Alternative Fuels.

[[Page 46]]

                           (End of provision)



352.224-70  Privacy Act.

    As prescribed in HHSAR 324.105(a), the Contracting Officer shall 
insert the following clause:

                         Privacy Act (DEC 2015)

    This contract requires the Contractor to perform one or more of the 
following: (a) Design; (b) develop; or (c) operate a Federal agency 
system of records to accomplish an agency function in accordance with 
the Privacy Act of 1974 (Act) (5 U.S.C. 552a(m)(1)) and applicable 
agency regulations.
    The term system of records means a group of any records under the 
control of any agency from which information is retrieved by the name of 
the individual or by some identifying number, symbol, or other 
identifying particular assigned to the individual. Violations of the Act 
by the Contractor and/or its employees may result in the imposition of 
criminal penalties (5 U.S.C. 552a(i)).
    The Contractor shall ensure that each of its employees knows the 
prescribed rules of conduct in 45 CFR part 5b and that each employee is 
aware that he/she is subject to criminal penalties for violation of the 
Act to the same extent as Department of Health and Human Services 
employees. These provisions also apply to all subcontracts the 
Contractor awards under this contract which require the design, 
development or operation of the designated system(s) of records (5 
U.S.C. 552a(m)(1)). The contract work statement:
    (a) Identifies the system(s) of records and the design, development, 
or operation work the Contractor is to perform; and
    (b) Specifies the disposition to be made of such records upon 
completion of contract performance.

                             (End of clause)



352.224-71  Confidential Information.

    As prescribed in HHSAR 324.105(b), insert the following clause:

                   Confidential Information (DEC 2015)

    (a) Confidential Information, as used in this clause, means 
information or data of a personal nature about an individual, or 
proprietary information or data submitted by or pertaining to an 
institution or organization.
    (b) Specific information or categories of information that the 
Government will furnish to the Contractor, or that the Contractor is 
expected to generate, which are confidential may be identified elsewhere 
in this contract. The Contracting Officer may modify this contract to 
identify Confidential Information from time to time during performance.
    (c) Confidential Information or records shall not be disclosed by 
the Contractor until:
    (1) Written advance notice of at least 45 days shall be provided to 
the Contracting Officer of the Contractor's intent to release findings 
of studies or research, to which an agency response may be appropriate 
to protect the public interest or that of the agency.
    (2) For information provided by or on behalf of the government,
    (i) The publication or dissemination of the following types of 
information are restricted under this contract: [INSERT RESTRICTED TYPES 
OF INFORMATION. IF NONE, SO STATE.]
    (ii) The reason(s) for restricting the types of information 
identified in subparagraph (i) is/are: [STATE WHY THE PUBLIC OR 
GOVERNMENT INTEREST REQUIRES THE RESTRICTION OF EACH TYPE OF 
INFORMATION. ANY BASIS FOR NONDISCLOSURE WHICH WOULD BE VALID UNDER THE 
FREEDOM OF INFORMATION ACT IS SUFFICIENT UNDER THIS CLAUSE.]
    (iii) Written advance notice of at least 45 days shall be provided 
to the Contracting Officer of the Contractor's intent to disseminate or 
publish information identified in subparagraph (2)(i). The contractor 
shall not disseminate or publish such information without the written 
consent of the Contracting Officer.
    (d) Whenever the Contractor is uncertain with regard to the 
confidentiality of or a property interest in information under this 
contract, the Contractor should consult with the Contracting Officer 
prior to any release, disclosure, dissemination, or publication.



352.226-1  Indian Preference.

    As prescribed in HHSAR 326.505(a), the Contracting Officer shall 
insert the following clause:

                      Indian Preference (DEC 2015)

    (a) The Contractor agrees to give preference in employment 
opportunities under this contract to Indians who can perform required 
work, regardless of age (subject to existing laws and regulations), sex, 
religion, or tribal affiliation. To the extent feasible and consistent 
with the efficient performance of this contract, the Contractor further 
agrees to give preference in employment and training opportunities under 
this contract to Indians who are not fully qualified to perform 
regardless of age (subject to existing laws and regulations), sex, 
religion, or tribal affiliation. The Contractor also agrees to give 
preference to Indian organizations and Indian-owned economic enterprises 
in the awarding of any subcontracts to the extent feasible and 
consistent with the efficient performance of this contract. The 
Contractor

[[Page 47]]

shall maintain the necessary statistical records to demonstrate 
compliance with this paragraph.
    (b) In connection with the Indian employment preference requirements 
of this clause, the Contractor shall provide reasonable opportunities 
for training, incident to such employment. Such training shall include 
on-the-job, classroom, or apprenticeship training designed to increase 
the vocational effectiveness of an Indian employee.
    (c) If the Contractor is unable to fill its employment and training 
opportunities after giving full consideration to Indians as required by 
this clause, the Contractor may satisfy those needs by selecting non-
Indian persons in accordance with the clause of this contract entitled 
``Equal Opportunity.''
    (d) If no Indian organizations or Indian-owned economic enterprises 
are available under reasonable terms and conditions, including price, 
for awarding of subcontracts in connection with the work performed under 
this contract, the Contractor agrees to comply with the provisions of 
this contract involving utilization of small businesses; HUBZone small 
businesses; service-disabled, veteran-owned small businesses; 8(a) small 
businesses; veteran-owned small businesses; women-owned small 
businesses; or small disadvantaged businesses.
    (e) As used in this clause,
    (1) Indian means a person who is a member of an Indian tribe. If the 
Contractor has reason to doubt that a person seeking employment 
preference is an Indian, the Contractor shall grant the preference but 
shall require the individual provide evidence within 30 days from the 
tribe concerned that the person is a member of the tribe.
    (2) Indian tribe means an Indian tribe, pueblo, band, nation, or 
other organized group or community, including Alaska Native village or 
regional or village corporation as defined in or established pursuant to 
the Alaska Native Claims Settlement Act (85 Stat. 688; 43 U.S.C. 1601) 
which the United States recognizes as eligible for the special programs 
and services provided to Indians because of its status as Indians.
    (3) Indian organization means the governing body of any Indian Tribe 
or entity established or recognized by such governing body in accordance 
with the Indian Financing Act of 1974 (88 Stat. 77; 25 U.S.C. 1451).
    (4) Indian-owned economic enterprise means any Indian-owned 
commercial, industrial, or business activity established or organized 
for the purpose of profit, provided that such Indian ownership shall 
constitute not less than 51 percent of the enterprise, and that 
ownership shall encompass active operation and control of the 
enterprise.
    (f) The Contractor agrees to include the provisions of this clause, 
including this paragraph (f) of this clause, in each subcontract awarded 
at any tier under this contract.
    (g) In the event of noncompliance with this clause, the Contracting 
Officer may terminate the contract in whole or in part or may pursue any 
other remedies authorized by law or by other provisions of the contract.

                             (End of clause)



352.226-2  Indian Preference Program.

    As prescribed in HHSAR 326.505(b), the Contracting Officer shall 
insert the following clause:

                  Indian Preference Program (DEC 2015)

    (a) In addition to the requirements of the clause of this contract 
entitled ``Indian Preference,'' the Contractor agrees to establish and 
conduct an Indian preference program which will expand opportunities for 
Indians to receive preference for employment and training in connection 
with the work performed under this contract, and which will expand the 
opportunities for Indian organizations and Indian-owned economic 
enterprises to receive a preference in the awarding of subcontracts. In 
this connection, the Contractor shall perform the following:
    (1) Designate a liaison officer who will maintain liaison with the 
Government and the Tribe(s) on Indian preference matters; supervise 
compliance with the provisions of this clause; and administer the 
Contractor's Indian preference program.
    (2) Advise its recruitment sources in writing and include a 
statement in all employment advertisements that Indian applicants 
receive preference in employment and training incident to such 
employment.
    (3) Not more than 20 calendar days after award of the contract, post 
a written notice setting forth the Contractor's employment needs and 
related training opportunities in the tribal office of any reservations 
on or near the contract work location. The notice shall include the 
approximate numbers and types of employees needed; the approximate dates 
of employment; any experience or special skills required for employment; 
training opportunities available; and other pertinent information 
necessary to advise prospective employees of any other employment 
requirements. The Contractor shall also request the tribe(s) on or near 
whose reservation(s) the Contractor will perform contract work to 
provide assistance filling its employment needs and training 
opportunities. The Contracting Officer will advise the Contractor of the 
name, location, and phone number of the Tribal officials to contact 
regarding the posting of notices and requests for Tribal assistance.
    (4) Establish and conduct a subcontracting program which gives 
preference to Indian organizations and Indian-owned economic enterprises 
as subcontractors (including suppliers) under this contract. The 
Contractor

[[Page 48]]

shall give public notice of existing subcontracting opportunities and, 
to the extent feasible and consistent with the efficient performance of 
this contract, shall solicit bids or proposals from Indian organizations 
or Indian-owned economic enterprises only. The Contractor shall request 
assistance and information on Indian firms qualified as subcontractors 
(including suppliers) from the Tribe(s) on or near whose reservation(s) 
the Contractor will perform contract work. The Contracting Officer will 
advise the Contractor of the name, location, and phone number of the 
Tribal officials to contact regarding the request for assistance and 
information. Public notices and solicitations for existing 
subcontracting opportunities shall provide an equitable opportunity for 
Indian firms to submit bids or proposals by including--
    (i) A clear description of the supplies or services required, 
including quantities, specifications, and delivery schedules that 
facilitate the participation of Indian firms;
    (ii) A statement indicating that Indian organizations and Indian-
owned economic enterprises will receive preference in accordance with 
section 7(b) of Public Law 93-638; 88 Stat. 2205; 25 U.S.C. 450e(b);
    (iii) Definitions for the terms ``Indian organization'' and 
``Indian-owned economic enterprise'' prescribed under the ``Indian 
Preference'' clause of this contract;
    (iv) A statement that the bidder or offeror shall complete 
certifying that it is an Indian organization or Indian-owned economic 
enterprise; and
    (v) A closing date for receipt of bids or proposals which provides 
sufficient time for preparation and submission of a bid or proposal. If, 
after soliciting bids or proposals from Indian organizations and Indian-
owned economic enterprises, the Contractor receives no responsive bid or 
acceptable proposal, the Contractor shall comply with the requirements 
of paragraph (d) of the ``Indian Preference'' clause of this contract. 
If the Contractor receives one or more responsive bids or conforming 
proposals, the Contractor shall award the contract to the low, 
responsive, responsible bidder or conforming offer from a responsible 
offeror if the price is reasonable. If the Contractor determines the low 
responsive bid or conforming proposal's price is unreasonable, the 
Contractor shall attempt to negotiate a reasonable price and award a 
subcontract. If parties cannot agree on a reasonable price, the 
Contractor shall comply with the requirements of paragraph (d) of the 
``Indian Preference'' clause of this contract.
    (5) Maintain written records under this contract which demonstrate--
    (i) The numbers of Indians seeking employment for each employment 
position available under this contract;
    (ii) The number and types of positions filled by Indians and non-
Indians;
    (iii) The total number of Indians employed under this contract;
    (iv) For those positions having both Indian and non-Indian 
applicants, and a non-Indian is selected for employment, the reason(s) 
why the Contractor did not select the Indian applicant;
    (v) Actions taken to give preference to Indian organizations and 
Indian-owned economic enterprises for subcontracting opportunities which 
exist under this contract;
    (vi) Reasons why Indian subcontractors and or suppliers did not 
receive preference for each requirement where the Contractor determined 
that such preference was inconsistent with efficient contract 
performance; and
    (vii) The number of Indian organizations and Indian-owned economic 
enterprises contacted, and the number receiving subcontract awards under 
this contract.
    (6) Submit to the Contracting Officer for approval a quarterly 
report summarizing the Contractor's Indian preference program and 
indicating the number and types of available positions filled by Indians 
and non-Indians, and the dollar amounts of all subcontracts awarded to 
Indian organizations and Indian-owned economic enterprises, and to all 
other firms.
    (7) Maintain records pursuant to this clause and keep them available 
for review by the Government for one year after final payment under this 
contract, or for such longer period in accordance with requirements of 
any other clause of this contract or by applicable law or regulation.
    (b) For purposes of this clause, the following definitions of terms 
shall apply:
    (1) The terms Indian, Indian tribe, Indian organization, and Indian-
owned economic enterprise are defined in the clause of this contract 
entitled Indian Preference.
    (2) Indian reservation includes Indian reservations, public domain 
Indian allotments, former Indian reservations in Oklahoma, and land held 
by incorporated Native groups, regional corporations, and village 
corporations under the provisions of the Alaska Native Claims Settlement 
Act (85 Stat. 688; 43 U.S.C. 1601 et seq.)
    (3) On or near an Indian reservation means on a reservation or 
reservations or within that area surrounding an Indian reservation(s) 
where a person seeking employment could reasonably expect to commute to 
and from in the course of a work day.
    (c) Nothing in the requirements of this clause shall preclude Indian 
tribes from independently developing and enforcing their own Indian 
preference requirements. Such requirements must not conflict with any 
Federal statutory or regulatory requirement dealing with the award and 
administration of contracts.

[[Page 49]]

    (d) The Contractor agrees to include the provisions of this clause, 
including this paragraph (d), in each subcontract awarded at any tier 
under this contract and to notify the Contracting Officer of such 
subcontracts.
    (e) In the event of noncompliance with this clause, the Contracting 
Officer may terminate the contract in whole or in part or may pursue any 
other remedies authorized by law or by other provisions of the contract.

                             (End of clause)



352.226-3  Native American Graves Protection and Repatriation Act.

    As prescribed in HHSAR 326.701, the Contracting Officer shall insert 
the following clause:

    Native American Graves Protection and Repatriation Act (DEC 2015)

    (a) Public Law 101-601, dated November 16, 1990, also known as the 
Native American Graves Protection and Repatriation Act, imposes certain 
responsibilities on individuals and organizations when they discover 
Native American cultural items (including human remains) on Federal or 
tribal lands.
    (b) In the event the Contractor discovers Native American cultural 
items (including human remains, associated funerary objects, 
unassociated funerary objects, sacred objects and cultural patrimony), 
as defined in the Act during contract performance, the Contractor 
shall--
    (1) Immediately cease activity in the area of the discovery;
    (2) Notify the Contracting Officer of the discovery; and
    (3) Make a reasonable effort to protect the items discovered before 
resuming such activity. Upon receipt of the Contractor's discovery 
notice, the Contracting Officer will notify the appropriate authorities 
as required by the Act.
    (c) Unless otherwise specified by the Contracting Officer, the 
Contractor may resume activity in the area on the 31st calendar day 
following the date that the appropriate authorities certify receipt of 
the discovery notice. The Contracting Officer shall provide to the 
Contractor the date that the appropriate authorities certify receipt of 
the discovery notice and the date on which the Contractor may resume 
activities.



352.227-11  Patent Rights--Exceptional Circumstances.

    As prescribed in HHSAR 327.303, the Contracting Officer shall insert 
the following clause:

          Patent Rights--Exceptional Circumstances (SEPT 2014)

    This clause applies to all Contractor and subcontractor (at all 
tiers) Subject Inventions.
    (a) Definitions. As used in this clause--
    Agency means the Agency of the U.S. Department of Health and Human 
Services that is entering into this contract.
    Class 1 Subject Invention means a Subject Invention described and 
defined in the DEC that will be assigned to a third party assignee, or 
assigned as directed by the Agency.
    Class 2 Subject Invention means a Subject Invention described and 
defined in the DEC.
    Class 3 Subject Invention means a Subject Invention that does not 
fall into Class 1 or Class 2 as defined in this clause.
    DEC means the Determination of Exceptional Circumstances signed by 
[insert approving official] ____ on __ [insert date] ____ and titled 
``[insert description].''
    Invention means any invention or discovery, which is or may be 
patentable or otherwise protectable under Title 35 of United States 
Code, or any novel variety of plant that is or may be protectable under 
the Plant Variety Protection Act (7 U.S.C. 2321, et seq.)
    Made means: When used in relation to any invention other than a 
plant variety, the conception or first actual reduction to practice of 
such invention; or when used in relation to a plant variety, that the 
Contractor has at least tentatively determined that the variety has been 
reproduced with recognized characteristics.
    Material means any proprietary material, method, product, 
composition, compound, or device, whether patented or unpatented, which 
is provided to the Contractor under this contract.
    Nonprofit organization 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 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 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 or 
Government regulations, available to the public on reasonable terms.
    Small business firm means a small business concern as defined at 
section 2 of Public Law

[[Page 50]]

85-536 (15 U.S.C. 632) and implementing regulations of the Administrator 
of the Small Business Administration. For the purpose of this clause, 
the size standards for small business concerns involved in Government 
procurement and subcontracting at 13 CFR 121.3-8 and 13 CFR 121.3-12, 
respectively, will be used.
    Subject Invention means any invention of the Contractor made in the 
performance of work under this contract.
    Third party assignee means any entity or organization that may, as 
described in the DEC, be assigned Class 1 inventions.
    (b) Allocation of principal rights. (1) Retention of pre-existing 
rights. Third party assignees shall retain all preexisting rights to 
Material in which the Third party assignee has a proprietary interest.
    (2) Allocation of Subject Invention rights. (i) Disposition of Class 
1 Subject Inventions. (A) Assignment to the Third party assignee or as 
directed by the Agency. The Contractor shall assign to the Third party 
assignee designated by the Agency the entire right, title, and interest 
throughout the world to each Subject Invention, or otherwise dispose of 
or transfer those rights as directed by the Agency, except to the extent 
that rights are retained by the Contractor under paragraph (b)(3) of 
this clause. Any such assignment or other disposition or transfer of 
rights will be subject to a nonexclusive, nontransferable, irrevocable, 
paid-up license to the U.S. Government to practice or have practiced the 
Subject Invention for or on behalf of the U.S. throughout the world. Any 
assignment shall additionally be subject to the ``March-in rights'' of 
35 U.S.C. 203. If the Contractor is a U.S. nonprofit organization it may 
retain a royalty free, nonexclusive, nontransferable license to practice 
the invention for all nonprofit research including for educational 
purposes, and to permit other U.S. nonprofit organizations to do so.
    (B) [Reserved]
    (ii) Disposition of Class 2 and 3 Subject Inventions. Class 2 
Subject Inventions shall be governed by FAR clause 52.227-11, Patent 
Rights-Ownership (December 2007) (incorporated herein by reference). 
However, the Contractor shall grant a license in the Class 2 Subject 
Inventions to the provider of the Material or other party designated by 
the Agency as set forth in Alternate I.
    (iii) Class 3 Subject Inventions shall be governed by FAR clause 
52.227-11, Patent Rights--Ownership by the Contractor (December 2007) 
(previously incorporated herein by reference).
    (3) Greater Rights Determinations. The Contractor, or an employee-
inventor after consultation by the Agency with the Contractor, may 
request greater rights than are provided in paragraph (b)(1) of this 
clause in accordance with the procedures of FAR paragraph 27.304-1(c). 
In addition to the considerations set forth in paragraph 27.304-1(c), 
the Agency may consider whether granting the requested greater rights 
will interfere with rights of the Government or any Third party assignee 
or otherwise impede the ability of the Government or the Third party 
assignee to, for example, develop and commercialize new compounds, 
dosage forms, therapies, preventative measures, technologies, or other 
approaches with potential for the diagnosis, prognosis, prevention, and 
treatment of human diseases.
    A request for a determination of whether the Contractor or the 
employee-inventor is entitled to retain such greater rights must be 
submitted to the Agency Contracting Officer at the time of the first 
disclosure of the invention pursuant to paragraph (c)(1) of this clause, 
or not later than 8 months thereafter, unless a longer period is 
authorized in writing by the Contracting Officer for good cause shown in 
writing by the Contractor. Each determination of greater rights under 
this contract shall be subject to paragraph (c) of the FAR clause at 
52.227-13 (incorporated herein by reference), and to any reservations 
and conditions deemed to be appropriate by the Agency such as the 
requirement to assign or exclusively license the rights to Subject 
Inventions to the Third party assignee.
    A determination by the Agency denying a request by the Contractor 
for greater rights in a Subject Invention may be appealed within 30 days 
of the date the Contractor is notified of the determination to an Agency 
official at a level above the individual who made the determination. If 
greater rights are granted, the Contractor must file a patent 
application on the invention. Upon request, the Contractor shall provide 
the filing date, serial number and title, a copy of the patent 
application (including an English-language version if filed in a 
language other than English), and patent number and issue date for any 
Subject Invention in any country for which the Contractor has retained 
title. Upon request, the Contractor shall furnish the Government an 
irrevocable power to inspect and make copies of the patent application 
file.
    (c) Invention disclosure by Contractor. The Contractor shall 
disclose in writing each Subject Invention to the Agency Contracting 
Officer and to the Director, Division of Extramural Inventions and 
Technology Resources (DEITR), if directed by the Contracting Officer, as 
provided in paragraph (j) of this clause within 2 months after the 
inventor discloses it in writing to Contractor personnel responsible for 
patent matters. The disclosure to the Agency Contracting Officer shall 
be in the form of a written report and shall identify the contract under 
which the invention was Made and all inventors. It shall be sufficiently 
complete in technical detail to convey a clear understanding to the

[[Page 51]]

extent known at the time of the disclosure, of the nature, purpose, 
operation, and the physical, chemical, biological, or electrical 
characteristics of the invention. The disclosure shall also identify any 
publication, on sale (offer for sale), or public use of the invention 
and whether a manuscript describing the 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 Contracting Officer and DEITR of the acceptance of 
any manuscript describing the invention for publication or of any on 
sale or public use planned by the Contractor. If the Contractor assigns 
a Subject Invention to the Third party assignee, then the Contractor and 
its employee inventors shall assist the Third party assignee in securing 
patent protection. All costs of securing the patent, including the cost 
of the Contractor's assistance, are at the Third party's expense. Any 
assistance provided by the Contractor and its employee inventors to the 
Third party assignee or other costs incurred in securing patent 
protection shall be solely at the Third party's expense and not billable 
to the contract.
    (d) Contractor action to protect the Third party assignee's and the 
Government's interest. (1) The Contractor agrees to execute or to have 
executed and promptly deliver to the Agency all instruments necessary 
to: Establish or confirm the rights the Government has throughout the 
world in Subject Inventions pursuant to paragraph (b) of this clause; 
convey title to a Third party assignee in accordance with paragraph (b) 
of this clause; and enable the Third party assignee to obtain patent 
protection throughout the world in that Subject Invention.
    (2) The Contractor agrees to require, by written agreement, its 
employees, other than clerical and nontechnical employees, to disclose 
promptly in writing to personnel identified as responsible for the 
administration of patent matters and in a format suggested by the 
Contractor, each Subject Invention ``Made'' under contract in order that 
the Contractor can comply with the disclosure provisions of paragraph 
(c) of this clause, and to execute all papers necessary to file patent 
applications on Subject Inventions and to establish the Government's 
rights or a Third party assignee's rights in the Subject Inventions. 
This disclosure format should require, as a minimum, the information 
required by subparagraph (c)(1) of this clause. The Contractor shall 
instruct such employees, through employee agreements or other suitable 
educational programs, on the importance of reporting inventions in 
sufficient time to permit the filing of patent applications prior to 
U.S. or foreign statutory bars.
    (3) If the Contractor is granted greater rights, the Contractor 
agrees to include, within the specification of any United States non-
provisional patent application it files, and any patent issuing thereon, 
covering a Subject Invention the following statement: ``This invention 
was made with Government support under (identify the Contract) awarded 
by (identify the specific Agency). The Government has certain rights in 
the invention.''
    (4) The Contractor agrees to provide a final invention statement and 
certification prior to the closeout of the contract listing all Subject 
Inventions or stating that there were none.
    (e) Subcontracts. (1) The Contractor will include this clause in all 
subcontracts, regardless of tier, for experimental, developmental, or 
research work. At all tiers, the clause must be modified to identify the 
parties as follows: References to the Government are not changed, and 
the subcontractor has all rights and obligations of the Contractor in 
the clause. The Contractor will not, as part of the consideration for 
awarding the contract, obtain rights in the subcontractor's Subject 
Inventions.
    (2) In subcontracts, at any tier, the Agency, the subcontractor, and 
the Contractor agree that the mutual obligations of the parties created 
by this clause constitute a contract between the subcontractor and the 
Agency with respect to the matters covered by the clause; provided, 
however, that nothing in this paragraph is intended to confer any 
jurisdiction under the Contract Disputes Act in connection with 
proceedings under paragraph (c)(1)(ii) of FAR clause 52.227-13.
    (f) Reporting on utilization of Subject Inventions in the event 
greater rights are granted to the Contractor. The Contractor agrees to 
submit, on request, periodic reports no more frequently than annually on 
the utilization of a Subject Invention or on efforts at obtaining such 
utilization that are being made by the Contractor or its licensees or 
assignees when a request under subparagraph b.3. has been granted by the 
Agency. Such reports shall include information regarding the status of 
development, date of first commercial sale or use, gross royalties 
received by the Contractor, and such other data and information as the 
Agency may reasonably specify. The Contractor also agrees to provide 
additional reports as may be requested by the Agency in connection with 
any march-in proceeding undertaken by the Agency in accordance with 
paragraph (h) of this clause. As required by 35 U.S.C. 202(c)(5), the 
Agency agrees it will not disclose such information to persons outside 
the Government without permission of the Contractor.
    (g) Preference for United States industry in the event greater 
rights are granted to the Contractor. Notwithstanding any other 
provision of this clause, the Contractor agrees

[[Page 52]]

that neither it nor any assignee will grant to any person the exclusive 
right to use or sell any Subject Invention in the United States unless 
such person agrees that any product embodying the Subject Invention or 
produced through the use of the Subject Invention will be manufactured 
substantially in the United States. However, in individual cases, the 
requirement for such an agreement may be waived by the Agency upon a 
showing by the Contractor or its 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.
    (h) March-in rights in the event greater rights are granted to the 
Contractor. The Contractor acknowledges that, with respect to any 
Subject Invention in which it has acquired ownership through the 
exercise of the rights specified in paragraph (b)(3) of this clause, the 
Agency has the right to require licensing pursuant to 35 U.S.C. 203 and 
210(c), and in accordance with the procedures in 37 CFR 401.6 and any 
supplemental regulations of Agency in effect on the date of contract 
award.
    (i) Special provisions for contracts with nonprofit organizations in 
the event greater rights are granted to the Contractor. If the 
Contractor is a nonprofit organization, it shall:
    (1) Not assign rights to a Subject Invention in the United States 
without the written approval of the Agency, except where an assignment 
is made to an organization that has as one of its primary functions the 
management of inventions, provided that the assignee shall be subject to 
the same provisions as the Contractor;
    (2) Share royalties collected on a Subject Invention with the 
inventor, including Federal employee co-inventors (but through their 
Agency if the Agency deems it appropriate) when the Subject Invention is 
assigned in accordance with 35 U.S.C. 202(e) and 37 CFR 401.10;
    (3) Use the balance of any royalties or income earned by the 
Contractor with respect to Subject Inventions, after payment of expenses 
(including payments to inventors) incidental to the administration of 
Subject Inventions for the support of scientific research or education;
    (4) Make efforts that are reasonable under the circumstances to 
attract licensees of Subject Inventions that are small business 
concerns, and give a preference to a small business concern when 
licensing a Subject Invention if the Contractor determines that the 
small business concern has a plan or proposal for marketing the 
invention which, if executed, is equally as likely to bring the 
invention to practical application as any plans or proposals from 
applicants that are not small business concerns; provided, that the 
Contractor is also satisfied that the small business concern has the 
capability and resources to carry out its plan or proposal. The decision 
whether to give a preference in any specific case will be at the 
discretion of the Contractor; and
    (5) Allow the Secretary of Commerce to review the Contractor's 
licensing program and decisions regarding small business applicants, and 
negotiate changes to its licensing policies, procedures, or practices 
with the Secretary of Commerce when the Secretary's review discloses 
that the Contractor could take reasonable steps to more effectively 
implement the requirements of paragraph (i)(4) of this clause.
    (j) Communications. All invention disclosures and requests for 
greater rights shall be sent to the Agency Contracting Officer, as 
directed by the Contracting Officer. Additionally, a copy of all 
disclosures, confirmatory licenses to the Government, face page of the 
patent applications, waivers and other routine communications under this 
funding agreement at all tiers must be sent to:
    [Insert Agency Address]
    Agency Invention Reporting Web site: https://public.era.nih.gov/
iedison.
    Alternate I (Sept 2014). As prescribed in 327.303, the license to 
Class 2 inventions recited in 352.227-11(b)(2)(a) is as follows:
    [Insert description of license to Class 2 inventions]

                             (End of clause)



352.227-14  Rights in Data--Exceptional Circumstances.

    As prescribed in HHSAR 327.409, insert the following clause with any 
appropriate alternates:

          Rights in Data--Exceptional Circumstances (SEPT 2014)

    (a) Definitions. As used in this clause--Definitions may be added or 
modified in paragraph (a) as applicable.
    Computer database or database means a collection of recorded 
information in a form capable of, and for the purpose of, being stored 
in, processed, and operated on by a computer. The term does not include 
computer software.
    Computer software--(i) Means (A) Computer programs that comprise a 
series of instructions, rules, routines, or statements, regardless of 
the media in which recorded, that allow or cause a computer to perform a 
specific operation or series of operations; and
    (B) Recorded information comprising source code listings, design 
details, algorithms, processes, flow charts, formulas, and related 
material that would enable the computer program to be produced, created, 
or compiled.

[[Page 53]]

    (ii) Does not include computer databases or computer software 
documentation.
    Computer software documentation means owner's manuals, user's 
manuals, installation instructions, operating instructions, and other 
similar items, regardless of storage medium, that explain the 
capabilities of the computer software or provide instructions for using 
the software.
    Data means recorded information, regardless of form or the media on 
which it may be recorded. The term includes technical data and computer 
software. The term does not include information incidental to contract 
administration, such as financial, administrative, cost or pricing, or 
management information.
    Form, fit, and function data means data relating to items, 
components, or processes that are sufficient to enable physical and 
functional interchangeability, and data identifying source, size, 
configuration, mating and attachment characteristics, functional 
characteristics, and performance requirements. For computer software it 
means data identifying source, functional characteristics, and 
performance requirements but specifically excludes the source code, 
algorithms, processes, formulas, and flow charts of the software.
    Limited rights means the rights of the Government in limited rights 
data as set forth in the Limited Rights Notice in Alternate II paragraph 
(g)(3) if included in this clause. ``Limited rights data'' means data, 
other than computer software, that embody trade secrets or are 
commercial or financial and confidential or privileged, to the extent 
that such data pertain to items, components, or processes developed at 
private expense, including minor modifications.
    Restricted computer software means computer software developed at 
private expense and that is a trade secret, is commercial or financial 
and confidential or privileged, or is copyrighted computer software, 
including minor modifications of the computer software.
    Restricted rights, as used in this clause, means the rights of the 
Government in restricted computer software, as set forth in a Restricted 
Rights Notice of Alternate III paragraph (g)(4) if included in this 
clause, or as otherwise may be provided in a collateral agreement 
incorporated in and made part of this contract, including minor 
modifications of such computer software.
    Technical data means recorded information (regardless of the form or 
method of the recording) of a scientific or technical nature (including 
computer databases and computer software documentation). This term does 
not include computer software or financial, administrative, cost or 
pricing, or management data or other information incidental to contract 
administration. The term includes recorded information of a scientific 
or technical nature that is included in computer databases (See 41 
U.S.C. 403(8)).
    Unlimited rights means the rights of the Government to use, 
disclose, reproduce, prepare derivative works, distribute copies to the 
public, and perform publicly and display publicly, in any manner and for 
any purpose, and to have or permit others to do so.
    (b) Allocation of rights. (1) Except as provided in paragraph (c) of 
this clause, the Government shall have unlimited rights in--
    (i) Data first produced in the performance of this contract;
    (ii) Form, fit, and function data delivered under this contract;
    (iii) Data delivered under this contract (except for restricted 
computer software) that constitute manuals or instructional and training 
material for installation, operation, or routine maintenance and repair 
of items, components, or processes delivered or furnished for use under 
this contract; and
    (iv) All other data delivered under this contract unless provided 
otherwise for limited rights data or restricted computer software in 
accordance with paragraph (g) of this clause.
    (2) The Contractor shall have the right to--
    (i) Assert copyright in data first produced in the performance of 
this contract to the extent provided in paragraph (c)(1) of this clause;
    (ii) Use, release to others, reproduce, distribute, or publish any 
data first produced or specifically used by the Contractor in the 
performance of this contract, unless provided otherwise in paragraph (d) 
of this clause;
    (iii) Substantiate the use of, add, or correct limited rights, 
restricted rights, or copyright notices and to take other appropriate 
action, in accordance with paragraphs (e) and (f) of this clause; and
    (iv) Protect from unauthorized disclosure and use those data that 
are limited rights data or restricted computer software to the extent 
provided in paragraph (g) of this clause.
    (c) Copyright--(1) Data first produced in the performance of this 
contract. (i) Unless provided otherwise in paragraph (d) of this clause, 
the Contractor may, without prior approval of the Contracting Officer, 
assert copyright in scientific and technical articles based on or 
containing data first produced in the performance of this contract and 
published in academic, technical or professional journals, symposia 
proceedings, or similar works. The prior, express written permission of 
the Contracting Officer is required to assert copyright in all other 
data first produced in the performance of this contract.
    (ii) When authorized to assert copyright to the data, the Contractor 
shall affix the applicable copyright notices of 17 U.S.C. 401 or 402, 
and an acknowledgment of Government sponsorship (including contract 
number).

[[Page 54]]

    (iii) For data other than computer software, the Contractor grants 
to the Government and others acting on its behalf, a paid-up, 
nonexclusive, irrevocable, worldwide license in such copyrighted data to 
reproduce, prepare derivative works, distribute copies to the public, 
and perform publicly and display publicly by or on behalf of the 
Government. For computer software, the Contractor grants to the 
Government, and others acting on its behalf, a paid-up, nonexclusive, 
irrevocable, worldwide license in such copyrighted computer software to 
reproduce, prepare derivative works, and perform publicly and display 
publicly (but not to distribute copies to the public) by or on behalf of 
the Government.
    (2) Data not first produced in the performance of this contract. The 
Contractor shall not, without the prior written permission of the 
Contracting Officer, incorporate in data delivered under this contract 
any data not first produced in the performance of this contract unless 
the Contractor--
    (i) Identifies the data; and
    (ii) Grants to the Government, or acquires on its behalf, a license 
of the same scope as set forth in paragraph (c)(1) of this clause or, if 
such data are restricted computer software, the Government shall acquire 
a copyright license as set forth in paragraph (g)(4) of this clause (if 
included in this contract) or as otherwise provided in a collateral 
agreement incorporated in or made part of this contract.
    (3) Removal of copyright notices. The Government will not remove any 
authorized copyright notices placed on data pursuant to this paragraph 
(c), and will include such notices on all reproductions of the data.
    (d) Release, publication, and use of data. The Contractor shall have 
the right to use, release to others, reproduce, distribute, or publish 
any data first produced or specifically used by the Contractor in the 
performance of this contract, except--
    (1) As prohibited by Federal law or regulation (e.g., export control 
or national security laws or regulations);
    (2) As expressly set forth in this contract; or
    (3) If the Contractor receives or is given access to data necessary 
for the performance of this contract that contain restrictive markings, 
the Contractor shall treat the data in accordance with such markings 
unless specifically authorized otherwise in writing by the Contracting 
Officer or in the following paragraphs.
    (4) In addition to any other provisions, set forth in this contract, 
the Contractor shall ensure that information concerning possible 
inventions made under this contract is not prematurely published thereby 
adversely affecting the ability to obtain patent protection on such 
inventions. Accordingly, the Contractor will provide the Contracting 
Officer a copy of any publication or other public disclosure relating to 
the work performed under this contract at least 30 days in advance of 
the disclosure. Upon the Contracting Officer's request the Contractor 
agrees to delay the public disclosure of such data or publication of a 
specified paper for a reasonable time specified by the Contracting 
Officer, not to exceed 6 months, to allow for the filing of domestic and 
international patent applications in accordance with Clause 352.227-11, 
Patent Rights--Exceptional Circumstances (abbreviated month and year of 
Final Rule publication).
    (5) Data on Material(s). The Contractor agrees that in accordance 
with paragraph (d)(2), proprietary data on Material(s) provided to the 
Contractor under or through this contract shall be used only for the 
purpose for which they were provided, including screening, evaluation or 
optimization and for no other purpose.
    (6) Confidentiality. (i) The Contractor shall take all reasonable 
precautions to maintain Confidential Information as confidential, but no 
less than the steps Contractor takes to secure its own confidential 
information.
    (ii) Contractor shall maintain Confidential Information as 
confidential unless specifically authorized otherwise in writing by the 
Contracting Officer. Confidential Information includes/does not include 
[Government may define confidential information here.]
    (e) Unauthorized marking of data. (1) Notwithstanding any other 
provisions of this contract concerning inspection or acceptance, if any 
data delivered under this contract are marked with the notices specified 
in paragraph (g)(3) or (4) of this clause (if those alternate paragraphs 
are included in this clause), and use of the notices is not authorized 
by this clause, or if the data bears any other restrictive or limiting 
markings not authorized by this contract, the Contracting Officer may 
cancel or ignore the markings. However, pursuant to 41 U.S.C. 253d, the 
following procedures shall apply prior to canceling or ignoring the 
markings.
    (i) The Contracting Officer will make written inquiry to the 
Contractor affording the Contractor 60 days from receipt of the inquiry 
to provide written justification to substantiate the propriety of the 
markings;
    (ii) If the Contractor fails to respond or fails to provide written 
justification to substantiate the propriety of the markings within the 
60-day period (or a longer time approved in writing by the Contracting 
Officer for good cause shown), the Government shall have the right to 
cancel or ignore the markings at any time after said period and the data 
will no longer be made subject to any disclosure prohibitions.
    (iii) If the Contractor provides written justification to 
substantiate the propriety of the markings within the period set in 
paragraph (e)(1)(i) of this clause, the Contracting

[[Page 55]]

Officer will consider such written justification and determine whether 
or not the markings are to be cancelled or ignored. If the Contracting 
Officer determines that the markings are authorized, the Contractor will 
be so notified in writing. If the Contracting Officer determines, with 
concurrence of the Head of the Contracting Activity, that the markings 
are not authorized, the Contracting Officer will furnish the Contractor 
a written determination, which determination will become the final 
Agency decision regarding the appropriateness of the markings unless the 
Contractor files suit in a court of competent jurisdiction within 90 
days of receipt of the Contracting Officer's decision. The Government 
will continue to abide by the markings under this paragraph (e)(1)(iii) 
until final resolution of the matter either by the Contracting Officer's 
determination becoming final (in which instance the Government will 
thereafter have the right to cancel or ignore the markings at any time 
and the data will no longer be made subject to any disclosure 
prohibitions), or by final disposition of the matter by court decision 
if suit is filed.
    (2) The time limits in the procedures set forth in paragraph (e)(1) 
of this clause may be modified in accordance with Agency regulations 
implementing the Freedom of Information Act (5 U.S.C. 552) if necessary 
to respond to a request there under.
    (3) Except to the extent the Government's action occurs as the 
result of final disposition of the matter by a court of competent 
jurisdiction, the Contractor is not precluded by this paragraph (e) from 
bringing a claim, in accordance with the Disputes clause of this 
contract, that may arise as the result of the Government removing or 
ignoring authorized markings on data delivered under this contract.
    (f) Omitted or incorrect markings. (1) Data delivered to the 
Government without any restrictive markings shall be deemed to have been 
furnished with unlimited rights. The Government is not liable for the 
disclosure, use, or reproduction of such data.
    (2) If the unmarked data has not been disclosed without restriction 
outside the Government, the Contractor may request, within 6 months (or 
a longer time approved by the Contracting Officer in writing for good 
cause shown) after delivery of the data, permission to have authorized 
notices placed on the data at the Contractor's expense. The Contracting 
Officer may agree to do so if the Contractor--
    (i) Identifies the data to which the omitted notice is to be 
applied;
    (ii) Demonstrates that the omission of the notice was inadvertent;
    (iii) Establishes that the proposed notice is authorized; and
    (iv) Acknowledges that the Government has no liability for the 
disclosure, use, or reproduction of any data made prior to the addition 
of the notice or resulting from the omission of the notice.
    (3) If data has been marked with an incorrect notice, the 
Contracting Officer may--
    (i) Permit correction of the notice at the Contractor's expense if 
the Contractor identifies the data and demonstrates that the correct 
notice is authorized; or
    (ii) Correct any incorrect notices.
    (g) Protection of limited rights data and restricted computer 
software. (1) The Contractor may withhold from delivery qualifying 
limited rights data or restricted computer software that are not data 
identified in paragraphs (b)(1)(i) through (iii) of this clause. As a 
condition to this withholding, the Contractor shall--
    (i) Identify the data being withheld; and
    (ii) Furnish form, fit, and function data instead.
    (2) Limited rights data that are formatted as a computer database 
for delivery to the Government shall be treated as limited rights data 
and not restricted computer software.
    (3) [Reserved]
    (h) Subcontracting. The Contractor shall obtain from its 
subcontractors all data and rights therein necessary to fulfill the 
Contractor's obligations to the Government under this contract. If a 
subcontractor refuses to accept terms affording the Government those 
rights, the Contractor shall promptly notify the Contracting Officer of 
the refusal and shall not proceed with the subcontract award without 
authorization in writing from the Contracting Officer.
    (i) Relationship to patents or other rights. Nothing contained in 
this clause shall imply a license to the Government under any patent or 
be construed as affecting the scope of any license or other right 
otherwise granted to the Government.

                             (End of clause)

    Alternate I (Sept 2014). As prescribed in HHSAR 327.409, substitute 
the following definition for ``limited rights data'' in paragraph (a) of 
the basic clause:
    Limited rights data means data, other than computer software, 
developed at private expense that embody trade secrets or are commercial 
or financial and confidential or privileged.
    Alternate II (Sept 2014). As prescribed in HHSAR 327.409, insert the 
following paragraph (g)(3) in the basic clause:
    (g)(3) Notwithstanding paragraph (g)(1) of this clause, the contract 
may identify and specify the delivery of limited rights data, or the 
Contracting Officer may require by written request

[[Page 56]]

the delivery of limited rights data that has been withheld or would 
otherwise be entitled to be withheld. If delivery of that data is 
required, the Contractor shall affix the following ``Limited Rights 
Notice'' to the data and the Government will treat the data, subject to 
the provisions of paragraphs (e) and (f) of this clause, in accordance 
with the notice:

                    Limited Rights Notice (SEPT 2014)

    (a) These data are submitted with limited rights under Government 
Contract No. __ (and subcontract __, if appropriate). These data may be 
reproduced and used by the Government with the express limitation that 
they will not, without written permission of the Contractor, be used for 
purposes of manufacture nor disclosed outside the Government; except 
that the Government may disclose these data outside the Government for 
the following purposes, if any; provided that the Government makes such 
disclosure subject to prohibition against further use and disclosure: 
Agencies may list additional purposes or if none, so state.
    (b) This notice shall be marked on any reproduction of these data, 
in whole or in part.

                             (End of notice)

    Alternate III (SEPT 2014). As prescribed in HHSAR 327.409, insert 
the following paragraph (g)(4) in the basic clause: (g)(4)(i) 
Notwithstanding paragraph (g)(1) of this clause, the contract may 
identify and specify the delivery of restricted computer software, or 
the Contracting Officer may require by written request the delivery of 
restricted computer software that has been withheld or would otherwise 
be entitled to be withheld. If delivery of that computer software is 
required, the Contractor shall affix the following ``Restricted Rights 
Notice'' to the computer software and the Government will treat the 
computer software, subject to paragraphs (e) and (f) of this clause, in 
accordance with the notice:

                  Restricted Rights Notice (SEPT 2014)

    (a) This computer software is submitted with restricted rights under 
Government Contract No. __ (and subcontract __, if appropriate). It may 
not be used, reproduced, or disclosed by the Government except as 
provided in paragraph (b) of this notice or as otherwise expressly 
stated in the contract.
    (b) This computer software may be--
    (1) Used or copied for use with the computer(s) for which it was 
acquired, including use at any Government installation to which the 
computer(s) may be transferred;
    (2) Used or copied for use with a backup computer if any computer 
for which it was acquired is inoperative;
    (3) Reproduced for safekeeping (archives) or backup purposes;
    (4) Modified, adapted, or combined with other computer software, 
provided that the modified, adapted, or combined portions of the 
derivative software incorporating any of the delivered, restricted 
computer software shall be subject to the same restricted rights;
    (5) Disclosed to and reproduced for use by support service 
Contractors or their subcontractors in accordance with paragraphs (b)(1) 
through (4) of this notice; and
    (6) Used or copied for use with a replacement computer.
    (c) Notwithstanding the foregoing, if this computer software is 
copyrighted computer software, it is licensed to the Government with the 
minimum rights set forth in paragraph (b) of this notice.
    (d) Any other rights or limitations regarding the use, duplication, 
or disclosure of this computer software are to be expressly stated in, 
or incorporated in, the contract.
    (e) This notice shall be marked on any reproduction of this computer 
software, in whole or in part.

                             (End of notice)

    (ii) Where it is impractical to include the Restricted Rights Notice 
on restricted computer software, the following short-form notice may be 
used instead:

             Restricted Rights Notice Short Form (SEPT 2014)

    Use, reproduction, or disclosure is subject to restrictions set 
forth in Contract No. __ (and subcontract, if appropriate) with __ (name 
of Contractor and subcontractor).

                             (End of notice)

    (iii) If restricted computer software is delivered with the 
copyright notice of 17 U.S.C. 401, it will be presumed to be licensed to 
the Government without disclosure prohibitions, with the minimum rights 
set forth in paragraph (b) of this clause.

    Alternate IV Sept 2014). As prescribed in HHSAR 327.409, substitute 
the following paragraph (c)(1) for paragraph (c)(1) of the basic clause:
    (c) Copyright--(1) Data first produced in the performance of the 
contract. Except as otherwise specifically provided in this contract, 
the Contractor may assert copyright in any

[[Page 57]]

data first produced in the performance of this contract. When asserting 
copyright, the Contractor shall affix the applicable copyright notice of 
17 U.S.C. 401 or 402, and an acknowledgment of Government sponsorship 
(including contract number), to the data when such data are delivered to 
the Government, as well as when the data are published or deposited for 
registration as a published work in the U.S. Copyright Office. For data 
other than computer software, the Contractor grants to the Government, 
and others acting on its behalf, a paid-up, nonexclusive, irrevocable, 
worldwide license for all such data to reproduce, prepare derivative 
works, distribute copies to the public, and perform publicly and display 
publicly, by or on behalf of the Government. For computer software, the 
Contractor grants to the Government and others acting on its behalf, a 
paid-up, nonexclusive, irrevocable, worldwide license for all such 
computer software to reproduce, prepare derivative works, and perform 
publicly and display publicly (but not to distribute copies to the 
public), by or on behalf of the Government.
    Alternate V (Sept 2014). As prescribed in HHSAR 327.409, add the 
following paragraph (j) to the basic clause:
    (j) The Contractor agrees, except as may be otherwise specified in 
this contract for specific data deliverables listed as not subject to 
this paragraph, that the Contracting Officer may, up to 3 years after 
acceptance of all deliverables under this contract, inspect at the 
Contractor's facility any data withheld pursuant to paragraph (g)(1) of 
this clause, for purposes of verifying the Contractor's assertion of 
limited rights or restricted rights status of the data or for evaluating 
work performance. When the Contractor whose data are to be inspected 
demonstrates to the Contracting Officer that there would be a possible 
conflict of interest if a particular representative made the inspection, 
the Contracting Officer shall designate an alternate inspector.

                             (End of clause)



352.227-70  Publications and Publicity.

    As prescribed in HHSAR 327.404-70, the Contracting Officer shall 
insert the following clause:

                  Publications and Publicity (DEC 2015)

    (a) Unless otherwise specified in this contract, the Contractor may 
publish the results of its work under this contract. The Contractor 
shall promptly send a copy of each article submitted for publication to 
the Contracting Officer's Representative. The Contractor shall also 
inform the Contracting Officer's Representative when the article or 
other publication is published, and furnish a copy of it as finally 
published.
    (b) Unless authorized in writing by the Contracting Officer, the 
Contractor shall not display the HHS logo including Operating Division 
or Staff Division logos on any publications.
    (c) The Contractor shall not reference the product(s) or service(s) 
awarded under this contract in commercial advertising, as defined in FAR 
31.205-1, in any manner which states or implies HHS approval or 
endorsement of the product(s) or service(s) provided.
    (d) The contractor shall include this clause, including this section 
(d) in all subcontracts where the subcontractor may propose publishing 
the results of its work under the subcontract.

                             (End of clause)



352.231-70  Salary Rate Limitation.

    As prescribed in HHSAR 331.101-70(b), the Contracting Officer shall 
insert the following clause:

                    Salary Rate Limitation (DEC 2015)

    (a) The Contractor shall not use contract funds to pay the direct 
salary of an individual at a rate in excess of the Federal Executive 
Schedule Level II in effect on the date the funding was obligated.
    (b) For purposes of the salary rate limitation, the terms ``direct 
salary,'' ``salary,'' and ``institutional base salary,'' have the same 
meaning and are collectively referred to as ``direct salary,'' in this 
clause. An individual's direct salary is the annual compensation that 
the Contractor pays for an individual's direct effort (costs) under the 
contract. Direct salary excludes any income that an individual may be 
permitted to earn outside of duties to the Contractor. Direct salary 
also excludes fringe benefits, overhead, and general and administrative 
expenses (also referred to as indirect costs or facilities and 
administrative costs). The salary rate limitation does not restrict the 
salary that an organization may pay an individual working under a 
Department of Health and Human Services contract or order; it merely 
limits the portion of that salary that may be paid with contract funds.
    (c) The salary rate limitation also applies to individuals under 
subcontracts.
    (d) If this is a multiple-year contract or order, it may be subject 
to unilateral modification by the Contracting Officer to ensure that an 
individual is not paid at a rate that exceeds the salary rate limitation 
provision established in the HHS appropriations act used to fund this 
contract.
    (e) See the salaries and wages pay tables on the Office of Personnel 
Management Web site for Federal Executive Schedule salary levels.

[[Page 58]]

                             (End of clause)



352.232-70  Incremental Funding.

    As prescribed in HHSAR 332.706-2(b), the Contracting Officer shall 
insert the provision provided below in all solicitations when a cost-
reimbursement contract for severable services using incremental funding 
is contemplated.

                     Incremental Funding (DEC 2015)

    The Government intends to negotiate and award a cost-reimbursement 
contract using incremental funding as described in the clause at FAR 
52.232-22, ``Limitation of Funds''. The initial obligation of funds 
under the contract is expected to cover [insert the appropriate 
increment of performance]. The Government intends to obligate additional 
funds up to and including the full estimated cost of the contract for 
the remaining periods of performance by unilateral contract 
modification. However, the Government is not required to reimburse the 
Contractor for costs incurred in excess of the total amount obligated, 
nor is the Contractor required to perform beyond the level supported by 
the total amount obligated.

                           (End of provision)



352.233-70  Choice of Law (Overseas).

    As prescribed in HHSAR 333.215-70(a), the Contracting Officer shall 
insert the following clause:

                   Choice of Law (Overseas) (DEC 2015)

    This contract shall be construed in accordance with the substantive 
laws of the United States of America. By the execution of this contract, 
the Contractor expressly agrees to waive any rights to invoke the 
jurisdiction of local national courts where this contract is performed 
and agrees to accept the exclusive jurisdiction of the United States 
Civilian Board of Contract Appeals or the United States Court of Federal 
Claims for hearing and determination of any and all disputes that may 
arise under the Disputes clause of this contract.

                             (End of clause)



352.233-71  Litigation and Claims.

    As prescribed in HHSAR 333.215-70(b), the Contracting Officer shall 
insert the following clause:

                    Litigation and Claims (Dec 2015)

    (a) The Contractor shall provide written notification immediately to 
the Contracting Officer of any action, including any proceeding before 
an administrative agency, filed against the Contractor arising out of 
the performance of this contract, including, but not limited to the 
performance of any subcontract hereunder; and any claim against the 
Contractor the cost and expense of which is allowable under the clause 
entitled ``Allowable Cost and Payment.''
    (b) Except as otherwise directed by the Contracting Officer, the 
Contractor shall furnish immediately to the Contracting Officer copies 
of all pertinent documents received by the Contractor with respect to 
such action or claim. To the extent not in conflict with any applicable 
policy of insurance, the Contractor may, with the Contracting Officer's 
approval, settle any such action or claim. If required by the 
Contracting Officer, the Contractor shall effect an assignment and 
subrogation in favor of the Government of all the Contractor's rights 
and claims (except those against the Government) arising out of any such 
action or claim against the Contractor; and authorize representatives of 
the Government to settle or defend any such action or claim and to 
represent the Contractor in, or to take charge of, any action.
    (c) If the Government undertakes a settlement or defense of an 
action or claim, the Contractor shall furnish all reasonable assistance 
in effecting a settlement or asserting a defense. Where an action 
against the Contractor is not covered by a policy of insurance, the 
Contractor shall, with the approval of the Contracting Officer, proceed 
with the defense of the action in good faith. The Government shall not 
be liable for the expense of defending any action or for any costs 
resulting from the loss thereof to the extent that the Contractor would 
have been compensated by insurance which was required by other terms or 
conditions of this contract, by law or regulation, or by written 
direction of the Contracting Officer, but which the Contractor failed to 
secure through its own fault or negligence. In any event, unless 
otherwise expressly provided in this contract, the Government shall not 
reimburse or indemnify the Contractor for any liability loss, cost, or 
expense, which the Contractor may incur or be subject to by reason of 
any loss, injury or damage, to the person or to real or personal 
property of any third parties as may accrue during, or arise from, the 
performance of this contract.

                             (End of clause)



352.236-70  Design-Build Contracts.

    As prescribed in HHSAR 336.570(a), the Contracting Officer shall 
insert the following clause:

                    Design-Build Contracts (Dec 2015)

    (a) General. (1) The contract constitutes and defines the entire 
agreement between the Contractor and the Government. This

[[Page 59]]

contract includes the standard or special contract clauses and schedules 
included at the time of award. This contract incorporates by reference:
    (i) The solicitation in its entirety (with the exception of 
instructions to offerors and evaluation criteria which do not become 
part of the award document);
    (ii) The specifications and statement of work;
    (iii) All drawings, cuts and illustrations, included in the 
solicitation and any amendments during all proposal phases leading up to 
award;
    (iv) Exhibits and other attachments; and
    (v) The successful Offeror's accepted proposal.
    (2) In the event of conflict or inconsistency between any of the 
requirements of the various portions of this contract, precedence shall 
be given in the following order:
    (i) Betterments: Any portions of the Offeror's proposal which exceed 
the requirements of the solicitation and which go beyond repair and 
improve the value of the property.
    (ii) The contract clauses and schedules included during the 
solicitation or at the time of award.
    (iii) All requirements (other than betterments) of the accepted 
proposal.
    (iv) Any design products, including but not limited to plans, 
specifications, engineering studies and analyses, shop drawings, 
equipment installation drawings, etc. These are ``deliverables'' under 
the contract and are not part of the contract itself.
    (3) Design products must conform to all requirements of the 
contract, in the order of precedence stated here.
    (b) Responsibility of the contractor for design. (1) The Contractor 
shall be responsible for the professional quality, technical accuracy, 
and the coordination of all designs, drawings, specifications, and other 
non-construction services furnished by the Contractor under this 
contract. The Contractor shall, without additional compensation, correct 
or revise any errors or deficiency in its designs, drawings, 
specifications, and other non-construction services and perform any 
necessary rework or modifications, including any damage to real or 
personal property, resulting from the design error or omission.
    (2) Neither the Government's review, approval or acceptance of, nor 
payment for, the services required under this contract shall be 
construed to operate as a waiver of any rights under this contract or of 
any cause of action arising out of the performance of this contract. The 
Contractor shall be and remain liable to the Government in accordance 
with applicable law for all damages to the Government caused by the 
Contractor's negligent performance of any of these services furnished 
under this contract.
    (3) The rights and remedies of the Government provided for under 
this contract are in addition to any other rights and remedies provided 
by law.
    (4) If the Contractor is comprised of more than one legal entity 
each such entity shall be jointly and severally liable with respect to 
all rights and remedies of the Government.
    (c) Sequence of design--construction. (1) After receipt of the 
Contract Award, the Contractor shall initiate design, comply with all 
design submission requirements, and obtain Government review of each 
submission. No construction may be started until the Government reviews 
the Final Design submission and determines it satisfactory for purposes 
of beginning construction. The Contracting Officer will notify the 
Contractor when the design is cleared for construction. The Government 
will not grant any time extension for any design resubmittal required 
when, in the opinion of the Contracting Officer, the initial submission 
failed to meet the minimum quality requirements as set forth in the 
Contract.
    (2) If the Government allows the Contractor to proceed with limited 
construction based on pending minor revisions to the reviewed Final 
Design submission, no payment will be made for any completed or in-
progress construction related to the pending revisions until they are 
completed, resubmitted, and are satisfactory to the Government.
    (3) No payment will be made for any completed or in-progress 
construction until all required submittals have been made, reviewed, and 
are satisfactory to the Government.
    (d) Constructor's role during design. The Contractor's construction 
management key personnel shall be actively involved during the design 
process to effectively integrate the design and construction 
requirements of this contract. In addition to the typical required 
construction activities, the constructor's involvement includes, but is 
not limited to actions such as: integrating the design schedule into the 
Master Schedule to maximize the effectiveness of fast-tracking design 
and construction (within the limits, if any, allowed in the contract), 
ensuring constructability and economy of the design, integrating the 
shop drawing and installation drawing process into the design, executing 
the material and equipment acquisition programs to meet critical 
schedules, effectively interfacing the construction Quality Control (QC) 
program with the design QC program, and maintaining and providing the 
design team with accurate, up-to-date redline and as-built 
documentation. The Contractor shall require and manage the active 
involvement of key trade subcontractors in the above activities.

[[Page 60]]

    (e) Preconstruction conference. (1) A preconstruction conference 
will be arranged by the Contracting Officer after award of contract and 
before commencement of work. The Contracting Officer or designated 
representative will notify the Contractor of the time, date, and 
location for the meeting. At this conference, the Contractor shall be 
oriented with respect to Government procedures and line of authority, 
contractual, administrative, and construction matters.
    (2) The Contractor shall bring to this conference, in completed 
form, a Certificate of Insurance, plus the following items in either 
completed or draft form:
    (i) Accident Prevention Plan;
    (ii) Quality Control Plan;
    (iii) Letter Appointing Superintendent;
    (iv) Transmittal Register;
    (v) Power of Attorney and Certified Copy of Resolution;
    (vi) Network Analysis System, (when identified in the contract 
schedule as applicable);
    (vii) List of Subcontractors;
    (viii) SF 1413;
    (ix) Performance and Payment Bonds; and
    (x) Schedule of Values.
    (3) A letter of record will be written documenting all items 
discussed at the conference, and a copy will be furnished by the 
Contracting Officer to all in attendance.
    (f) Payment for design under fixed-price design-build contracts. (1) 
The Contracting Officer may approve progress payments for work performed 
during the project design phase up to the maximum amount of __ 
(Contracting Officer to insert percent figure. If none stated, the 
amount is four (4) percent) percent of the contract price.
    (2) Contractor invoices for payment must be accompanied by 
satisfactory documentation supporting the amounts for which payments are 
requested. Progress payments approved by the Contracting Officer during 
the project design phase in no way constitute an acceptance of 
functional and aesthetic design elements nor acceptance of a final 
settlement amount in the event of a buy-out nor a waiver of any 
contractual requirements.
    (g) Unscheduled jobsite shutdowns. Due to security reasons during 
the life of this contract the Government may on an unscheduled basis 
require the contractor to shut down its jobsite for 2 days per year at 
no additional cost. This shall not constitute a suspension of work under 
FAR 52.242-14, Suspension of Work

                             (End of clause)

    Alternate I (DEC 2015).
    When Fast Track procedures are being used, replace paragraph (c) of 
the basic clause with the following:
    (c) Sequence of design build. (1) After receipt of the Contract 
Award the Contractor shall initiate design, comply with all design 
submissions requirements and obtain Government review of each 
submission. The contractor may begin construction on portions of the 
work for which the Government has reviewed the final design submission 
and has determined satisfactory for purposes of beginning construction. 
The Contracting Officer will notify the Contractor when the design is 
cleared for construction. The Government will not grant any time 
extension for any design resubmittal required when, in the opinion of 
the Contracting Officer, the initial submission failed to meet the 
minimum quality requirements as set forth in the Contract.
    (2) If the Government allows the Contractor to proceed with the 
construction based on pending minor revisions to the reviewed Final 
Design submission, no payment will be made for any in-place construction 
related to the pending revisions until they are completed, resubmitted, 
and are satisfactory to the Government.
    (3) No payment will be made for any in-place construction until all 
required submittals have been made, reviewed, and are satisfactory to 
the Government.

                             (End of clause)



352.237-70  Pro-Children Act.

    As prescribed in HHSAR 337.103(d)(1), the Contracting Officer shall 
insert the following clause:

                       Pro-Children Act (DEC 2015)

    (a) Public Law 103-227, Title X, Part C, also known as the Pro-
Children Act of 1994 (Act), 20 U.S.C. 7183, imposes restrictions on 
smoking in facilities where certain federally funded children's services 
are provided. The Act prohibits smoking within any indoor facility (or 
portion thereof), whether owned, leased, or contracted for, that is used 
for the routine or regular provision of: (i) Kindergarten, elementary, 
or secondary education or library services or (ii) health or day care 
services that are provided to children under the age of 18. The 
statutory prohibition also applies to indoor facilities that are 
constructed, operated, or maintained with Federal funds.
    (b) By acceptance of this contract or order, the Contractor agrees 
to comply with the requirements of the Act. The Act also applies to all 
subcontracts awarded under this contract for the specified children's 
services. Accordingly, the Contractor shall ensure that each of its 
employees, and any subcontractor staff, is made aware of, understands, 
and complies with the provisions of the Act. Failure to comply with the 
Act may result in the imposition of a civil monetary penalty in an 
amount not to exceed $1,000 for each violation and/or the imposition of 
an administrative compliance order on the responsible

[[Page 61]]

entity. Each day a violation continues constitutes a separate violation.



352.237-71  Crime Control Act--Reporting of Child Abuse.

    As prescribed in HHSAR 337.103(d)(2), the Contracting Officer shall 
insert the following clause:

     Crime Control Act of 1990--Reporting of Child Abuse (DEC 2015)

    (a) Public Law 101-647, also known as the Crime Control Act of 1990 
(Act), imposes responsibilities on certain individuals who, while 
engaged in a professional capacity or activity, as defined in the Act, 
on Federal land or in a federally-operated (or contracted) facility, 
learn of facts that give the individual reason to suspect that a child 
has suffered an incident of child abuse.
    (b) The Act designates ``covered professionals'' as those persons 
engaged in professions and activities in eight different categories 
including, but not limited to, teachers, social workers, physicians, 
dentists, medical residents or interns, hospital personnel and 
administrators, nurses, health care practitioners, chiropractors, 
osteopaths, pharmacists, optometrists, podiatrists, emergency medical 
technicians, ambulance drivers, alcohol or drug treatment personnel, 
psychologists, psychiatrists, mental health professionals, child care 
workers and administrators, and commercial film and photo processors. 
The Act defines the term ``child abuse'' as the physical or mental 
injury, sexual abuse or exploitation, or negligent treatment of a child.
    (c) Accordingly, any person engaged in a covered profession or 
activity under an HHS contract or subcontract, regardless of the purpose 
of the contract or subcontract, shall immediately report a suspected 
child abuse incident in accordance with the provisions of the Act. If a 
child is suspected of being harmed, the appropriate State Child Abuse 
Hotline, local child protective services (CPS), or law enforcement 
agency shall be contacted. For more information about where and how to 
file a report, the Childhelp USA, National Child Abuse Hotline (1-800-4-
A-CHILD) shall be called. Any covered professional failing to make a 
timely report of such incident shall be guilty of a Class B misdemeanor.
    (d) By acceptance of this contract or order, the Contractor agrees 
to comply with the requirements of the Act. The Act also applies to all 
applicable subcontracts awarded under this contract. Accordingly, the 
Contractor shall ensure that each of its employees, and any 
subcontractor staff, is made aware of, understands, and complies with 
the provisions of the Act.

                             (End of clause)



352.237-72  Crime Control Act--Requirement for Background Checks.

    As prescribed in HHSAR 337.103(d)(3), the Contracting Officer shall 
insert the following clause:

 Crime Control Act of 1990--Requirement for Background Checks (DEC 2015)

    (a) Public Law 101-647, also known as the Crime Control Act of 1990 
(Act), requires that all individuals involved with the provision of 
child care services to children under the age of 18 undergo a criminal 
background check. ``Child care services'' include, but are not limited 
to, social services, health and mental health care, child (day) care, 
education (whether or not directly involved in teaching), and 
rehabilitative programs. Any conviction for a sex crime, an offense 
involving a child victim, or a drug felony, may be grounds for denying 
employment or for dismissal of an employee providing any of the services 
listed above.
    (b) The Contracting Officer will provide the necessary information 
to the Contractor regarding the process for obtaining the background 
check. The Contractor may hire a staff person provisionally prior to the 
completion of a background check, if at all times prior to the receipt 
of the background check during which children are in the care of the 
newly-hired person, the person is within the sight and under the 
supervision of a previously investigated staff person.
    (c) By acceptance of this contract or order, the Contractor agrees 
to comply with the requirements of the Act. The Act also applies to all 
applicable subcontracts awarded under this contract. Accordingly, the 
Contractor shall ensure that each of its employees, and any 
subcontractor staff, is made aware of, understands, and complies with 
the provisions of the Act.

                             (End of clause)



352.237-73  Indian Child Protection and Family Violence Act.

    As prescribed in HHSAR 337.103(d)(4) the Contracting Officer shall 
insert the following clause:

       Indian Child Protection and Family Violence Act (DEC 2015)

    (a) This contract is subject to the Indian Child Protection and 
Family Violence Act, Public Law 101-630 (25 U.S.C. 3201 et seq.) The 
duties and responsibilities required by this contract may involve 
regular contact with or control over Indian children. Public Law 101-630 
prohibits employment, including Personal Service Contracts, with anyone 
who has been convicted of any crime of violence.

[[Page 62]]

Any such conviction should immediately be brought to the attention of 
the Contracting Officer. The contractor will be subject to a character 
investigation, conducted by the Indian Health Service, Office of Human 
Resources. Until such time as the contractor has been notified of 
completion of the investigation, the contractor shall have no 
unsupervised contact with Indian children. In order to initiate this 
background investigation, the contractor must provide information as 
required in this contract or as directed by the Contracting Officer.
    (b) As a prerequisite to providing services under this contract, the 
Contractor is required to complete and sign the declaration found in 
Section J of this contract.

                             (End of clause)



352.237-74  Non-Discrimination in Service Delivery.

    As prescribed in HHSAR 337.103(e), the Contracting Officer shall 
insert the following clause in solicitations and contracts:

            Non-Discrimination In Service Delivery (DEC 2015)

    It is the policy of the Department of Health and Human Services that 
no person otherwise eligible will be excluded from participation in, 
denied the benefits of, or subjected to discrimination in the 
administration of HHS programs and services based on non-merit factors 
such as race, color, national origin, religion, sex, gender identity, 
sexual orientation, or disability (physical or mental). By acceptance of 
this contract, the contractor agrees to comply with this policy in 
supporting the program and in performing the services called for under 
this contract. The contractor shall include this clause in all sub-
contracts awarded under this contract for supporting or performing the 
specified program and services. Accordingly, the contractor shall ensure 
that each of its employees, and any sub-contractor staff, is made aware 
of, understands, and complies with this policy.

                             (End of clause)



352.237-75  Key Personnel.

    As prescribed in HHSAR 337.103(f), the Contracting Officer shall 
insert the following clause:

                        Key Personnel (DEC 2015)

    The key personnel specified in this contract are considered to be 
essential to work performance. At least 30 days prior to the contractor 
voluntarily diverting any of the specified individuals to other programs 
or contracts the Contractor shall notify the Contracting Officer and 
shall submit a justification for the diversion or replacement and a 
request to replace the individual. The request must identify the 
proposed replacement and provide an explanation of how the replacement's 
skills, experience, and credentials meet or exceed the requirements of 
the contract (including, when applicable, Human Subjects Testing 
requirements). If the employee of the contractor is terminated for cause 
or separates from the contractor voluntarily with less than thirty days 
notice, the Contractor shall provide the maximum notice practicable 
under the circumstances. The Contractor shall not divert, replace, or 
announce any such change to key personnel without the written consent of 
the Contracting Officer. The contract will be modified to add or delete 
key personnel as necessary to reflect the agreement of the parties.

                             (End of clause)



352.239-73  Electronic Information and Technology Accessibility Notice.

    (a) As prescribed in HHSAR 339.203-70(a), the Contracting Officer 
shall insert the following provision:

  Electronic and Information Technology Accessibility Notice (Dec 2015)

    (a) Section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d), 
as amended by the Workforce Investment Act of 1998 and the Architectural 
and Transportation Barriers Compliance Board Electronic and Information 
(EIT) Accessibility Standards (36 CFR part 1194), require that when 
Federal agencies develop, procure, maintain, or use electronic and 
information technology, Federal employees with disabilities have access 
to and use of information and data that is comparable to the access and 
use by Federal employees who are not individuals with disabilities, 
unless an undue burden would be imposed on the agency. Section 508 also 
requires that individuals with disabilities, who are members of the 
public seeking information or services from a Federal agency, have 
access to and use of information and data that is comparable to that 
provided to the public who are not individuals with disabilities, unless 
an undue burden would be imposed on the agency.
    (b) Accordingly, any offeror responding to this solicitation must 
comply with established HHS EIT accessibility standards. Information 
about Section 508 is available at http://www.hhs.gov/web/508. The 
complete text of the Section 508 Final Provisions can be accessed at 
http://www.access-board.gov/guidelines-and-standards/communications-and-
it/about-the-section-508-standards.
    (c) The Section 508 accessibility standards applicable to this 
solicitation are stated in

[[Page 63]]

the clause at 352.239-74, Electronic and Information Technology 
Accessibility.
    In order to facilitate the Government's determination whether 
proposed EIT supplies meet applicable Section 508 accessibility 
standards, offerors must submit an HHS Section 508 Product Assessment 
Template, in accordance with its completion instructions. The purpose of 
the template is to assist HHS acquisition and program officials in 
determining whether proposed EIT supplies conform to applicable Section 
508 accessibility standards. The template allows offerors or developers 
to self-evaluate their supplies and document--in detail--whether they 
conform to a specific Section 508 accessibility standard, and any 
underway remediation efforts addressing conformance issues. Instructions 
for preparing the HHS Section 508 Evaluation Template are available 
under Section 508 policy on the HHS Web site http://www.hhs.gov/web/508.
    In order to facilitate the Government's determination whether 
proposed EIT services meet applicable Section 508 accessibility 
standards, offerors must provide enough information to assist the 
Government in determining that the EIT services conform to Section 508 
accessibility standards, including any underway remediation efforts 
addressing conformance issues.
    (d) Respondents to this solicitation must identify any exception to 
Section 508 requirements. If a offeror claims its supplies or services 
meet applicable Section 508 accessibility standards, and it is later 
determined by the Government, i.e., after award of a contract or order, 
that supplies or services delivered do not conform to the described 
accessibility standards, remediation of the supplies or services to the 
level of conformance specified in the contract will be the 
responsibility of the Contractor at its expense.

                           (End of provision)



352.239-74  Electronic and Information Technology Accessibility.

    As prescribed in HHSAR 339.203-70(b), insert the following clause:

     Electronic and Information Technology Accessibility (DEC 2015)

    (a) Pursuant to Section 508 of the Rehabilitation Act of 1973 (29 
U.S.C. 794d), as amended by the Workforce Investment Act of 1998, all 
electronic and information technology (EIT) supplies and services 
developed, acquired, or maintained under this contract or order must 
comply with the ``Architectural and Transportation Barriers Compliance 
Board Electronic and Information Technology (EIT) Accessibility 
Standards'' set forth by the Architectural and Transportation Barriers 
Compliance Board (also referred to as the ``Access Board'') in 36 CFR 
part 1194. Information about Section 508 is available at http://
www.hhs.gov/web/508. The complete text of Section 508 Final Provisions 
can be accessed at http://www.access-board.gov/guidelines-and-standards/
communications-and-it/about-the-section-508-standards.
    (b) The Section 508 accessibility standards applicable to this 
contract or order are identified in the Statement of Work or 
Specification or Performance Work Statement. The contractor must provide 
any necessary updates to the submitted HHS Product Assessment 
Template(s) at the end of each contract or order exceeding the 
simplified acquisition threshold (see FAR 2.101) when the contract or 
order duration is one year or less. If it is determined by the 
Government that EIT supplies and services provided by the Contractor do 
not conform to the described accessibility standards in the contract, 
remediation of the supplies or services to the level of conformance 
specified in the contract will be the responsibility of the Contractor 
at its own expense.
    (c) The Section 508 accessibility standards applicable to this 
contract are:

________________________________________________________________________
(Contract staff must list applicable standards)

    (d) In the event of a modification(s) to this contract or order, 
which adds new EIT supplies or services or revises the type of, or 
specifications for, supplies or services, the Contracting Officer may 
require that the contractor submit a completed HHS Section 508 Product 
Assessment Template and any other additional information necessary to 
assist the Government in determining that the EIT supplies or services 
conform to Section 508 accessibility standards. Instructions for 
documenting accessibility via the HHS Section 508 Product Assessment 
Template may be found under Section 508 policy on the HHS Web site: 
(http://www.hhs.gov/web/508). If it is determined by the Government that 
EIT supplies and services provided by the Contractor do not conform to 
the described accessibility standards in the contract, remediation of 
the supplies or services to the level of conformance specified in the 
contract will be the responsibility of the Contractor at its own 
expense.
    (e) If this is an Indefinite Delivery contract, a Blanket Purchase 
Agreement or a Basic Ordering Agreement, the task/delivery order 
requests that include EIT supplies or services will define the 
specifications and accessibility standards for the order. In those 
cases, the Contractor may be required to provide a completed HHS Section 
508 Product Assessment Template and any other additional information 
necessary to assist the Government in determining that the EIT supplies 
or services conform to Section 508 accessibility standards. Instructions 
for documenting accessibility via the HHS Section

[[Page 64]]

508 Product Assessment Template may be found at http://www.hhs.gov/web/
508. If it is determined by the Government that EIT supplies and 
services provided by the Contractor do not conform to the described 
accessibility standards in the provided documentation, remediation of 
the supplies or services to the level of conformance specified in the 
contract will be the responsibility of the Contractor at its own 
expense.

                             (End of clause)



352.270-1--352.270-3  [Reserved]



352.270-4a  Notice to Offerors, Protection of Human Subjects.

    As prescribed in HHSAR 370.303(a), the Contracting Officer shall 
insert the following provision:

       Notice to Offerors, Protection of Human Subjects (DEC 2015)

    (a) The Department of Health and Human Services (HHS) regulations 
for the protection of human subjects, 45 CFR part 46, are available on 
the Office for Human Research Protections (OHRP) Web site at: http://
www.hhs.gov/ohrp/index.html.
    These regulations provide a systematic means, based on established 
ethical principles, to safeguard the rights and welfare of human 
subjects participating in research activities supported or conducted by 
HHS.
    (b) The regulations define a human subject as a living individual 
about whom an investigator (whether professional or student) conducting 
research obtains data or identifiable public information through 
intervention or interaction with the individual, or identifiable private 
information. In most cases, the regulations extend to the use of human 
organs, tissue, and body fluids from individually identifiable human 
subjects as well as to graphic, written, or recorded information derived 
from individually identifiable human subjects. 45 CFR part 46 does not 
directly regulate the use of autopsy materials; instead, applicable 
state and local laws govern their use.
    (c) Activities which involve human subjects in one or more of the 
categories set forth in 45 CFR 46.101(b)(1)-(6) are exempt from 
complying with 45 CFR part 46. See http://www.hhs.gov/ohrp/
humansubjects/guidance/45cfr46.html.
    (d) Inappropriate designations of the noninvolvement of human 
subjects or of exempt categories of research in a project may result in 
delays in the review of a proposal.
    (e) In accordance with 45 CFR part 46, offerors considered for award 
shall file an acceptable Federal-wide Assurance (FWA) of compliance with 
OHRP specifying review procedures and assigning responsibilities for the 
protection of human subjects. The FWA is the only type of assurance that 
OHRP accepts or approves. The initial and continuing review of a 
research project by an institutional review board shall ensure that: The 
risks to subjects are minimized; risks to subjects are reasonable in 
relation to anticipated benefits, if any, to subjects, and the 
importance of the knowledge that may reasonably be expected to result; 
selection of subjects is equitable; and informed consent will be 
obtained and documented by methods that are adequate and appropriate. 
Depending on the nature of the research, additional requirements may 
apply; see http://www.hhs.gov/ohrp/humansubjects/guidance/
45cfr46.html46.111 for additional requirements regarding initial and 
continuing review. HHS regulations for the protection of human subjects 
(45 CFR part 46), information regarding OHRP registration and assurance 
requirements/processes, and OHRP contact information is available at the 
OHRP Web site (at http://www.hhs.gov/ohrp/assurances/index.html).
    (f) Offerors may consult with OHRP only for general advice or 
guidance concerning either regulatory requirements or ethical issues 
pertaining to research involving human subjects. ONLY the contracting 
officer may offer information concerning a solicitation.
    (g) The offeror shall document in its proposal the approved FWA from 
OHRP, related to the designated Institutional Review Board (IRB) 
reviewing and overseeing the research. If the offeror does not have an 
approved FWA from OHRP, the offeror must obtain an FWA before the 
deadline for proposal submission. When possible, the offeror shall also 
certify the IRB's review and approval of the research. If the offeror 
cannot obtain this certification by the time of proposal submission they 
must include an explanation in their proposal. Never conduct research 
covered by 45 CFR part 46 prior to receiving certification of the 
research's review and approval by the IRB.

                           (End of provision)

    Alternate I (DEC 2015).
    As prescribed in HHSAR 370.303(a), the Contracting Officer shall 
substitute the following paragraph (g) for paragraph (g) of the basic 
clause.
    (g) The offeror's proposal shall document that it has an approved or 
active FWA from OHRP, related to the designated IRB reviewing and 
overseeing the research. When possible the offeror shall also certify 
the IRB has reviewed and approved the research. If the offeror cannot 
make this certification at the time of proposal submission, its proposal 
must include an explanation. Never conduct research covered by 45 CFR 
part 46 prior to receiving certification of the research's review and 
approval by the IRB.

[[Page 65]]

    If the offeror does not have an active FWA from OHRP, the offeror 
shall take all necessary steps to obtain an FWA prior to the deadline 
for proposal submission. If the offeror cannot obtain an FWA before the 
proposal submission date, the proposal shall indicate the steps/actions 
the offeror will take to obtain OHRP approval within (Contracting 
Officer must insert a time period in which the FWA must be obtained). 
Upon obtaining FWA approval, submit the approval notice to the 
Contracting Officer.



352.270-4b  Protection of Human Subjects.

    As prescribed in HHSAR 370.304(a), the Contracting Officer shall 
insert the following clause:

                 Protection of Human Subjects (DEC 2015)

    (a) The Contractor agrees that the rights and welfare of human 
subjects involved in research under this contract shall be protected in 
accordance with 45 CFR part 46 and with the Contractor's current 
Federal-wide Assurance (FWA) on file with the Office for Human Research 
Protections (OHRP), Department of Health and Human Services. The 
Contractor further agrees to provide certification at least annually 
that the Institutional Review Board has reviewed and approved the 
procedures, which involve human subjects in accordance with 45 CFR part 
46 and the Assurance of Compliance.
    (b) The Contractor shall bear full responsibility for the 
performance of all work and services involving the use of human subjects 
under this contract and shall ensure that work is conducted in a proper 
manner and as safely as is feasible. The parties hereto agree that the 
Contractor retains the right to control and direct the performance of 
all work under this contract. Nothing in this contract shall create an 
agency or employee relationship between the Government and the 
Contractor, or any subcontractor, agent or employee of the Contractor, 
or any other person, organization, institution, or group of any kind 
whatsoever. The Contractor agrees that it has entered into this contract 
and will discharge its obligations, duties, and undertakings and the 
work pursuant thereto, whether requiring professional judgment or 
otherwise, as an independent Contractor without creating liability on 
the part of the Government for the acts of the Contractor or its 
employees.
    (c) Contractors involving other agencies or institutions in 
activities considered to be engaged in research involving human subjects 
must ensure that such other agencies or institutions obtain their own 
FWA if they are routinely engaged in research involving human subjects 
or ensure that such agencies or institutions are covered by the 
Contractors' FWA via designation as agents of the institution or via 
individual investigator agreements (see OHRP Web site at: http://
www.hhs.gov/ohrp/policy/guidanceonalternativetofwa.pdf).
    (d) If at any time during the performance of this contract the 
Contractor is not in compliance with any of the requirements and or 
standards stated in paragraphs (a) and (b) above, the Contracting 
Officer may immediately suspend, in whole or in part, work and further 
payments under this contract until the Contractor corrects the 
noncompliance. The Contracting Officer may communicate the notice of 
suspension by telephone with confirmation in writing. If the Contractor 
fails to complete corrective action within the period of time designated 
in the Contracting Officer's written notice of suspension, the 
Contracting Officer may, after consultation with OHRP, terminate this 
contract in whole or in part.

                             (End of clause)



352.270-5a  Notice to Offerors of Requirement for Compliance with the
Public Health Service Policy on Humane Care and Use of Laboratory
Animals.

    As prescribed in HHSAR 370.403(a), the Contracting Officer shall 
insert the following provision:

Notice to Offerors of Requirement for Compliance with the Public Health 
 Service Policy on Humane Care and Use of Laboratory Animals (DEC 2015)

    The Public Health Service (PHS) Policy on Humane Care and Use of 
Laboratory Animals (PHS Policy) establishes a number of requirements for 
research activities involving animals. Before awarding a contract to an 
offeror, the organization shall file, with the Office of Laboratory 
Animal Welfare (OLAW), National Institutes of Health (NIH), a written 
Animal Welfare Assurance (Assurance) which commits the organization to 
comply with the provisions of the PHS Policy, the Animal Welfare Act, 
and the Guide for the Care and Use of Laboratory Animals (National 
Academy Press, Washington, DC). In accordance with the PHS Policy, 
offerors must establish an Institutional Animal Care and Use Committee 
(IACUC), qualified through the experience and expertise of its members, 
to oversee the institution's animal program, facilities, and procedures. 
Offerors must provide verification of IACUC approval prior to receiving 
an award involving live vertebrate animals. No award involving the use 
of animals shall be made unless OLAW approves the Assurance and 
verification of IACUC approval for the proposed animal activities has 
been provided to the Contracting Officer. Prior to award, the 
Contracting Officer will notify Contractor(s) selected for

[[Page 66]]

projects involving live vertebrate animals of the Assurance and 
verification of IACUC approval requirement. The Contracting Officer will 
request that OLAW negotiate an acceptable Assurance with those 
Contractor(s) and request verification of IACUC approval. For further 
information, contact OLAW at NIH, 6705 Rockledge Drive, RKL1, Suite 360, 
MSC 7982 Bethesda, Maryland 20892-7982 (Email: [email protected]; Phone: 
301-496-7163).

                           (End of provision)



352.270-5b  Care of Live Vertebrate Animals.

    As prescribed in HHSAR 370.404, the Contracting Officer shall insert 
the following clause:

               Care of Live Vertebrate Animals (DEC 2015)

    (a) Before undertaking performance of any contract involving animal-
related activities where the species is regulated by the United Sates 
Department of Agriculture (USDA), the Contractor shall register with the 
Secretary of Agriculture of the United States in accordance with 7 
U.S.C. 2136 and 9 CFR 2.25 through 2.28. The Contractor shall furnish 
evidence of the registration to the Contracting Officer.
    (b) The Contractor shall acquire vertebrate animals used in research 
from a dealer licensed by the Secretary of Agriculture under 7 U.S.C. 
2133 and 9 CFR 2.1-2.11, or from a source that is exempt from licensing 
under those sections.
    (c) The Contractor agrees that the care, use, and intended use of 
any live vertebrate animals in the performance of this contract shall 
conform with the Public Health Service (PHS) Policy on Humane Care of 
Use of Laboratory Animals (PHS Policy), the current Animal Welfare 
Assurance (Assurance), the Guide for the Care and Use of Laboratory 
Animals (National Academy Press, Washington, DC) and the pertinent laws 
and regulations of the United States Department of Agriculture (see 7 
U.S.C. 2131 et seq. and 9 CFR subchapter A, Parts 1-4). In case of 
conflict between standards, the more stringent standard shall govern.
    (d) If at any time during performance of this contract, the 
Contracting Officer determines, in consultation with the Office of 
Laboratory Animal Welfare (OLAW), National Institutes of Health (NIH), 
that the Contractor is not in compliance with any of the requirements 
and standards stated in paragraphs (a) through (c) above, the 
Contracting Officer may immediately suspend, in whole or in part, work 
and further payments under this contract until the Contractor corrects 
the noncompliance. Notice of the suspension may be communicated by 
telephone and confirmed in writing. If the Contractor fails to complete 
corrective action within the period of time designated in the 
Contracting Officer's written notice of suspension, the Contracting 
Officer may, in consultation with OLAW, NIH, terminate this contract in 
whole or in part, and the Contractor's name may be removed from the list 
of those contractors with Animal Welfare Assurances.
    Note: The Contractor may request registration of its facility and a 
current listing of licensed dealers from the Regional Office of the 
Animal and Plant Health Inspection Service (APHIS), USDA, for the region 
in which its research facility is located. The location of the 
appropriate APHIS Regional Office, as well as information concerning 
this program may be obtained by contacting the Animal Care Staff, USDA/
APHIS, 4700 River Road, Riverdale, Maryland 20737 (Email: 
[email protected]; Web site: (http://www.aphis.usda.gov/wps/portal/
aphis/ourfocus/animalwelfare).

                             (End of clause)



352.270-6  Restriction on Use of Human Subjects.

    As prescribed in HHSAR 370-304(b), the Contracting Officer shall 
insert the following clause:

             Restriction on Use of Human Subjects (DEC 2015)

    Pursuant to 45 CFR part 46, Protection of Human Research Subjects, 
the Contractor shall not expend funds under this award for research 
involving human subjects or engage in any human subjects research 
activity prior to the Contracting Officer's receipt of a certification 
that the research has been reviewed and approved by the Institutional 
Review Board (IRB) registered with OHRP. This restriction applies to all 
collaborating sites, whether domestic or foreign, and subcontractors. 
The Contractor must ensure compliance by collaborators and 
subcontractors.

                             (End of clause)



352.270-7--352.270-8  [Reserved]



352.270-9  Non-Discrimination for Conscience.

    As prescribed in HHSAR 370.701, the Contracting Officer shall insert 
the following provision:

              Non-Discrimination for Conscience (DEC 2015)

    (a) Section 301(d) of the United States Leadership Against HIV/AIDS, 
Tuberculosis, and Malaria Act, as amended, provides that

[[Page 67]]

an organization, including a faith-based organization, that is otherwise 
eligible to receive assistance under section 104A of the Foreign 
Assistance Act of 1961, under the United States Leadership Against HIV/
AIDS, Tuberculosis, and Malaria Act of 2003, under the Tom Lantos and 
Henry J. Hyde United States Global Leadership Against HIV/AIDS, 
Tuberculosis, and Malaria Reauthorization Act of 2008, or under any 
amendment to the foregoing Acts for HIV/AIDS prevention, treatment, or 
care--
    (1) Shall not be required, as a condition of receiving such 
assistance, to--
    (i) Endorse or utilize a multisectoral or comprehensive approach to 
combating HIV/AIDS; or
    (ii) Endorse, utilize, make a referral to, become integrated with, 
or otherwise participate in any program or activity to which the 
organization has a religious or moral objection.
    (2) Shall not be discriminated against under the provisions of law 
in subparagraph (a) for refusing to meet any requirement described in 
paragraph (a)(1) in this solicitation.
    (b) Accordingly, an offeror who believes this solicitation contains 
work requirements requiring it endorse or utilize a multisectoral or 
comprehensive approach to combating HIV/AIDS, or endorse, utilize, make 
referral to, become integrated with, or otherwise participate in a 
program or activity to which it has a religious or moral objection, 
shall identify those work requirements it excluded in its technical 
proposal.
    (c) The Government acknowledges that an offeror has specific rights, 
as cited in paragraph (b), to exclude certain work requirements in this 
solicitation from its proposal. However, the Government reserves the 
right to not make an award to an offeror whose proposal does not comply 
with the salient work requirements of the solicitation. Any exercise of 
that Government right will be made by the Head of the Contracting 
Activity.

                           (End of provision)



352.270-10  Notice to Offerors--Protection of Human Subjects, Research
Involving Human Subjects Committee (RIHSC) Approval of Research Protocols
Required.

    As prescribed in HHSAR 370.303(d), the Contracting Officer shall 
insert the following provision:

  Notice to Offerors--Protection of Human Subjects, Research Involving 
Human Subjects Committee (RIHSC) Approval of Research Protocols Required 
                               (DEC 2015)

    (a) All Offerors proposing research expected to involve human 
subjects shall comply with the regulations set forth in 45 CFR part 46, 
and with the provisions at HHSAR 352.270-4a.
    (b) The Offeror shall have an acceptable Assurance of Compliance on 
file with the Office for Human Research Protections (OHRP), whenever it 
submits a proposal to the FDA for research expected to involve human 
subjects. Direct questions regarding Federal-wide Assurance to OHRP. The 
Offeror's proposal shall include a copy of the acceptable Assurance of 
Compliance.
    (c) After the contract has been awarded, the Contractor shall take 
the following actions:
    (1) The Institutional Review Board (IRB) specified in the Offeror's 
Assurance of Compliance, hereafter referred to as ``the local IRB,'' 
shall review the proposed research protocol. A letter from the local IRB 
stating that the proposed research protocol has been reviewed and 
approved, and thus adequately protects the rights and welfare of human 
subjects involved, or a letter stating that the proposed research is 
exempt under 45 CFR 46.101(b) shall be submitted to the Contracting 
Officer.
    (2) Upon award, the successful Offeror, hereafter ``the 
Contractor,'' shall submit its proposed research protocol to the FDA's 
Research Involving Human Subjects Committee (RIHSC). The RIHSC or its 
designee will review and approve the research protocol to assure it 
adequately protects the rights and welfare of human subjects involved. 
The RIHSC or designee will also determine whether the proposed research 
is exempt under 45 CFR 46.101(b). The Contractor shall submit, to the 
Contracting Officer of record, a copy of the RIHSC's or its designee's 
letter stating that it reviewed and approved the proposed research 
protocol.
    (d) The Contractor shall not advertise for, recruit, or enroll human 
subjects, or otherwise commence any research involving human subjects 
until RIHSC or its designee reviews and approves its research. The 
Contractor may begin other limited aspects of contract performance prior 
to receiving RIHSC's or designee's approval of the proposed research 
protocol. Research involving human subjects may commence immediately 
upon the Contractor's receipt of RIHSC's or designee's approval; 
however, the Contractor shall submit a copy of RIHSC's or its designee's 
approval to the Contracting Officer within three business days of its 
receipt.

[[Page 68]]

    (e) A Contractor's failure to obtain RIHSC's or its designee's 
approval of its proposed research may result in termination of its 
contract. However, failure to obtain RIHSC's or its designee's approval 
during initial review will not automatically result in termination of 
the contract. Instead, the Contractor may correct any deficiencies 
identified during the initial RIHSC or designee review and resubmit the 
proposed research protocol to RIHSC or its designee for a second review. 
The Contractor is encouraged to solicit the RIHSC's or its designee's 
input during the resubmission process.
    (f) The Contractor shall seek RIHSC's or its designee's and local 
IRB review and approval whenever making modifications, amendments or 
other changes to the research protocol. Such modifications, amendments 
and changes include, but are not limited to changes in investigators, 
informed consent forms, and recruitment advertisements. The Contractor 
may institute changes immediately after receiving both the local IRB and 
RIHSC or its designee approval (except when necessary to eliminate 
apparent immediate hazards to the subject); however, the Contractor 
shall submit a copy of the letter evidencing RIHSC's or its designee's 
approval of the proposed changes to the Contracting Officer within three 
business days of its receipt.

                           (End of provision)



352.270-11  Protection of Human Subjects--Research Involving Human 
Subjects Committee (RIHSC) Approval of Research Protocols Required.

    As prescribed in HHSAR 370.304(c), the Contracting Officer shall 
insert the following clause:

    Protection of Human Subjects--Research Involving Human Subjects 
  Committee (RIHSC) Approval of Research Protocols Required (DEC 2015)

    (a) The Contractor agrees to protect the rights and welfare of human 
subjects involved in research under this contract by complying with 45 
CFR part 46 and the clause at HHSAR 352.270-4b.
    (b) Initial proof of compliance with 45 CFR part 46 shall consist 
of:
    (1) A copy of a current Federal-wide Assurance on file with OHRP. 
The copy of a current Federal-wide Assurance shall be included with the 
Contractor's proposal;
    (2) A letter from the Contractor's local IRB (the Institutional 
Review Board (IRB) specified in the Offeror's Assurance of Compliance) 
stating that it has reviewed and approved the proposed research 
protocol. The letter from the local IRB shall be submitted to the 
Contracting Office; and
    (3) A copy of a letter from the RIHSC stating that it or its 
designee has reviewed and approved the proposed research protocol. This 
shall be submitted to the Contracting Officer within three business days 
of its issuance.
    The Contractor shall not advertise for, recruit, or enroll human 
subjects, or otherwise commence any research involving human subjects 
under this contract, until RIHSC has reviewed and approved its research. 
The Contractor may commence other limited aspects of contract 
performance prior to receiving RIHSC or its designee approval of its 
proposed research protocol. Research involving human subjects may 
commence immediately upon the Contractor's receipt of RIHSC or its 
designee approval; however, the Contractor shall submit a copy of 
RIHSC's or its designee's letter of approval to the Contracting Officer 
within three business days of its receipt.
    Failure to obtain RIHSC or its designee approval of proposed 
research protocols may result in the termination of this contract.
    (c) The Contractor further agrees that:
    (1) The Contractor will provide a letter from RIHSC, at least 
annually, stating that RIHSC or its designee has reviewed and approved 
the research protocols for research performed under this contract. This 
shall be submitted to the Contracting Officer for inclusion in the 
contract file.
    (2) The Contractor will submit all proposed modifications and 
amendments to research protocols for research performed under this 
contract to RIHSC for review and approval. Modifications and amendments 
include, but are not limited, to changes to consent forms and 
advertising materials, and the addition or deletion of investigators. 
Changes may be instituted immediately after the Contractor has received 
both the local IRB and RIHSC or its designee approval (except when 
necessary to eliminate apparent immediate hazards to the subject); 
however the Contractor shall submit a copy of the letter evidencing 
RIHSC's or its designee's approval of the proposed changes to the 
Contracting Officer within three business days of its receipt.

                             (End of clause)



352.270-12  Needle Exchange.

    As prescribed in HHSAR 370.304(d), the Contracting Officer shall 
insert the following clause:

                       Needle Exchange (DEC 2015)

    The Contractor shall not use any funds obligated under this contract 
to carry out any program of distributing sterile needles or syringes for 
the hypodermic injection of any illegal drug.

[[Page 69]]

                             (End of clause)



352.270-13  Continued Ban on Funding Abortion and Continued Ban on
Funding of Human Embryo Research.

    As prescribed in HHSAR 370.304(e), the Contracting Officer shall 
insert the following clause:

Continued Ban on Funding Abortion and Continued Ban on Funding of Human 
                       Embryo Research (DEC 2015)

    (a) The Contractor shall not use any funds obligated under this 
contract for any abortion.
    (b) The Contractor shall not use any funds obligated under this 
contract for the following:
    (1) The creation of a human embryo or embryos for research purposes; 
or
    (2) Research in which a human embryo or embryos are destroyed, 
discarded, or knowingly subjected to risk of injury of death greater 
than that allowed for research on fetuses in utero under 45 CFR part 46 
and Section 498(b) of the Public Health Service Act (42 U.S.C. 289g(b)).
    (c) The term ``human embryo or embryos'' includes any organism, not 
protected as a human subject under 45 CFR part 46 as of the date of the 
enactment of this Act, that is derived by fertilization, 
parthenogenesis, cloning, or any other means from one or more human 
gametes of human diploid cells.
    (d) The Contractor shall not use any Federal funds for the cloning 
of human beings.

                             (End of clause)



PART 353_FORMS [RESERVED]--Table of Contents



Subpart 353.3 [Reserved]



                       SUBCHAPTERS I	L [RESERVED]



[[Page 70]]



                    SUBCHAPTER M_HHS SUPPLEMENTATIONS





PART 370_SPECIAL PROGRAMS AFFECTING ACQUISITION--Table of Contents



Subparts 370.1-370.2 [Reserved]

           Subpart 370.3_Acquisitions Involving Human Subjects

Sec.
370.300  Scope of subpart.
370.301  Policy.
370.302  Federal-wide Assurance (FWA).
370.303  Notice to offerors.
370.304  Contract clauses.

   Subpart 370.4_Acquisitions Involving the Use of Laboratory Animals

370.400  Scope of subpart.
370.401  Policy.
370.402  Assurances.
370.403  Notice to offerors.
370.404  Contract clause.

Subparts 370.5-370.6 [Reserved]

           Subpart 370.7_Acquisitions under the Leadership Act

370.700  Scope of subpart.
370.701  Contract clause.
370.702  Solicitation provision.

    Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2)

    Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.

Subparts 370.1-370.2 [Reserved]



           Subpart 370.3_Acquisitions Involving Human Subjects



370.300  Scope of subpart.

    This subpart applies to all research activities conducted under 
contracts involving human subjects. See 45 CFR 46.102(d) and (f).



370.301  Policy.

    It is the Department of Health and Human Services (HHS) policy that 
the contracting officer shall not award a contract involving human 
subjects until the prospective contractor provides assurance that the 
activity will undergo initial and continuing review by an appropriate 
Institutional Review Board (IRB) in accordance with HHS regulations at 
45 CFR 46.103. The contracting officer shall require a Federal-wide 
assurance (FWA), approved by the HHS Office for Human Research 
Protections (OHRP), of each contractor, subcontractor, or institution 
engaged in human subjects research in performance of a contract. OHRP 
administers the assurance covering all HHS-supported or HHS-conducted 
activities involving human subjects.



370.302  Federal-wide Assurance (FWA).

    (a) OHRP-Approved FWAs are found at the following Web site: http://
ohrp.cit.nih.gov/search/search.aspx?styp=bsc.
    (b) Normally a contractor, subcontractor, or institution must 
provide approval of a FWA before a contract is awarded. If a contractor, 
subcontractor, or institution does not currently hold an approved FWA, 
it shall submit an explanation with its proposal and an FWA application 
prior to submitting a proposal. The contracting officer, on a case by 
case basis, may make award without an approved assurance in consultation 
with OHRP.
    (c) A contractor, subcontractor, or institution must submit all 
FWAs, including new FWAs, using the electronic submission system 
available through the OHRP Web site at http://ohrp.cit.nih.gov/efile/, 
unless an institution lacks the ability to do so electronically. If an 
institution believes it lacks the ability to submit its FWA 
electronically, it must contact OHRP by telephone or email (see http://
www.hhs.gov/ohrp/assurances/index.html) and explain why it is unable to 
submit its FWA electronically.



370.303  Notice to offerors.

    (a) The contracting officer shall insert the provision at 352.270-
4a, Notice to Offerors, Protection of Human Subjects, in solicitations 
that involve human subjects. The contracting officer shall use the 
clause with its Alternate I when the agency is prescribing a date later 
than the proposal submission by which the offeror must have an approved 
FWA.

[[Page 71]]

    (b) Institutions having an OHRP-approved FWA shall certify IRB 
approval of submitted proposals in the manner required by instructions 
for completion of the contract proposal; by completion of an OMB Form 
No. 0990-0263, Protection of Human Subjects Assurance Identification/IRB 
Certification/Declaration of Exemption (Common Rule); or by letter 
indicating the institution's OHRP-assigned FWA number, the date of IRB 
review and approval, and the type of review (convened or expedited). The 
date of IRB approval must not be more than 12 months prior to the 
deadline for proposal submission.
    (c) The contracting officer generally will not request FWAs for 
contractors, subcontractors, or institutions prior to selecting a 
contract proposal for negotiation. When a contractor submits an FWA, it 
provides certification for the initial contract period; no additional 
documentation is required. If the contract provides for additional years 
to complete the project, the contractor shall certify annually in the 
manner described in 370.303(b).
    (d) For the Food and Drug Administration (FDA), the contracting 
officer shall insert the provision at 352.270-10, Notice to Offerors--
Protection of Human Subjects, Research Involving Human Subjects 
Committee (RIHSC) Approval of Research Protocols Required, in 
solicitations that involve human subjects when the research is subject 
to RIHSC review and approval.



370.304  Contract clauses.

    (a) The contracting officer shall insert the clause at 352.270-4b, 
Protection of Human Subjects, in solicitations, contracts and orders 
involving human subjects.
    (b) The contracting officer shall insert the clause at 352.270-6, 
Restriction on Use of Human Subjects, in contracts and orders if the 
contractor has an approved FWA of compliance in place, but cannot 
certify prior to award that an IRB registered with OHRP reviewed and 
approved the research, because definite plans for involvement of human 
subjects are not set forth in the proposal (e.g., projects in which 
human subjects' involvement will depend upon completion of instruments, 
prior animal studies, or purification of compounds). Under these 
conditions, the contracting officer may make the award without the 
requisite certification, as long as the contracting officer includes 
appropriate conditions in the contract or order.
    (c) For FDA, the contracting officer shall insert the clause at 
352.270-11, Protection of Human Subjects, Research Involving Human 
Subjects Committee (RIHSC) Approval of Research Protocols Required, in 
contracts and orders that involve human subjects when the research is 
subject to RIHSC review and approval.
    (d) The contracting officer shall insert the clause at 352.270-12, 
Needle Exchange, in solicitations, contracts, and orders involving human 
subjects.
    (e) The contracting officer shall insert the clause at 352.270-13, 
Continued Ban on Funding Abortion and Continued Ban on Funding of Human 
Embryo Research, in solicitations, contracts, and orders involving human 
subjects.



   Subpart 370.4_Acquisitions Involving the Use of Laboratory Animals



370.400  Scope of subpart.

    This subpart applies to all research, research training, biological 
testing, housing and maintenance, and other activities involving live 
vertebrate animals conducted under contract. Additional information can 
be found in Public Health Service (PHS) Policy on Humane Care and Use of 
Laboratory Animals http://grants.nih.gov/grants/olaw/references/
phspolicylabanimals.pdf.



370.401  Policy.

    (a) It is HHS policy that contracting activities shall not award a 
contract involving live vertebrate animals until the Contractor provides 
acceptable assurance the contract work is subject to initial and 
continuing review by an appropriate Institutional Animal Care and Use 
Committee (IACUC) as described in the PHS Policy at IV.B.6 and 7. The 
contracting officer shall require an applicable Animal Welfare Assurance 
approved by the Office of Laboratory Animal Welfare (OLAW), National 
Institutes of Health (NIH), of each contractor, subcontractor, or 
institution having responsibility for animal care

[[Page 72]]

and use involved in performance of the contract. Normally the assurance 
shall be approved before award. The contracting officer, on a case-by-
case basis, may make award without an approved assurance in consultation 
with OLAW. For additional information see PHS Policy II., IV.A, and V.B.
    (b) The OLAW, NIH, is responsible for negotiating assurances 
covering all HHS/PHS-supported or HHS/PHS-conducted activities involving 
the care and use of live vertebrate animals. OLAW shall provide guidance 
to contracting officers regarding adequate animal care and use, 
approval, disapproval, restriction, or withdrawal of approval of 
assurances. For additional information see PHS Policy V.A.
    (c) If using live vertebrate animals, HHS policy requires that 
offerors address the points in the Vertebrate Animal Section (VAS) of 
the Technical Proposal. Each of the points must be addressed in the VAS 
portion of the Technical Proposal. For additional information see PHS 
Policy and use Contract Proposal VAS Worksheet. http://grants.nih.gov/
grants/olaw/references/phspol.htm InformationRequiredinApplications- 
ProposalsforAwardsSubmittedtoPHS and http://grants.nih.gov/grants/olaw/
VAScontracts.pdf.



370.402  Assurances.

    (a) Animal Welfare Assurances may be one of three types:
    (1) Domestic Assurance (DA). A DA describes the institution's animal 
care and use program, including but not limited to the lines of 
authority and responsibility, veterinary care, IACUC composition and 
procedures, occupational health and safety, training, facilities, and 
species housed. A DA listed in OLAW's list of institutions with an 
approved DA is acceptable for purposes of this policy.
    (2) Inter-institutional Assurance (IA). The offeror, its proposed 
subcontractor, or institution shall submit an IA when it does not have a 
proprietary animal care and use program, facilities to house animals or 
IACUC, and does not conduct animal research on-site. The offeror will 
perform the animal activity at an institution with an Animal Welfare 
Assurance named as a performance site. An IA approval extends to the 
full period of contract performance (up to 5 years) limited to the 
specific award or single project.
    (3) Foreign Assurance (FA). The Foreign Assurance is required for 
institutions outside the U.S. that receive PHS funds directly through a 
contract award. The Foreign Assurance also applies to institutions 
outside the U.S. that receive PHS funds indirectly (named as a 
performance site). An FA listed in OLAW's list of institutions with an 
approved FA is acceptable for purposes of this policy.
    (b) The contracting officer shall forward copies of proposals 
selected for negotiation and requiring an assurance to OLAW at 
[email protected], as early as possible to secure the necessary 
assurances.
    (c) A contractor providing animal care services at an institution 
with an Animal Welfare Assurance, such as a Government-owned, 
Contractor-operated (GOCO) site, does not need a separate assurance. 
GOCO site assurances normally cover such contractor services.



370.403  Notice to offerors.

    (a) The contracting officer shall insert the provision at 352.270-
5a, Notice to Offerors of Requirement for Compliance with the Public 
Health Service Policy on Humane Care and Use of Laboratory Animals, in 
solicitations involving live vertebrate animals.
    (b) Offerors having a DA on file with OLAW shall submit IACUC 
approval of the use of animals in the manner required by the 
solicitation, but prior to award. The date of IACUC approval must not be 
more than 36 months prior to award.
    (c) It is not necessary for offerors lacking an Animal Welfare 
Assurance to submit assurances or IACUC approval with proposals. OLAW 
shall contact contractors, subcontractors, and institutions to negotiate 
necessary assurances and verify IACUC approvals when requested by the 
contracting officer.



370.404  Contract clause.

    The contracting officer shall insert the clause at 352.270-5b, Care 
of Live Vertebrate Animals, in solicitations,

[[Page 73]]

contracts, and orders that involve live vertebrate animals.

Subparts 370.5-370.6 [Reserved]



           Subpart 370.7_Acquisitions Under the Leadership Act



370.700  Scope of subpart.

    This subpart sets forth the acquisition requirements regarding 
implementation of Human Immunodeficiency Virus/Acquired Immune 
Deficiency Syndrome (HIV/AIDS) programs under the President's Emergency 
Plan for AIDS Relief as established by the United States Leadership 
Against HIV/AIDS, Tuberculosis and Malaria Act of 2003, as amended (Pub. 
L. 108-25, Pub. L. 110-293, Pub. L. 113-56).



370.701  Solicitation provision.

    The contracting officer shall insert the provision at 352.270-9, 
Non-Discrimination for Conscience, in solicitations valued at more than 
the micro-purchase threshold:
    (a) In connection with the implementation of HIV/AIDS programs under 
the President's Emergency Plan for AIDS Relief established by the United 
States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 
2003, as amended; or
    (b) Where the contractor will receive funding under the United 
States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 
2003, as amended. In resolving any issues or complaints that offerors 
may raise regarding meeting the requirements specified in the provision, 
the contracting officer shall consult with the Office of Global Health 
Affairs, Office of the General Counsel, the Program Manager, and other 
HHS officials, as appropriate.

                        PARTS 371	399 [RESERVED]

[[Page 75]]



                  CHAPTER 4--DEPARTMENT OF AGRICULTURE




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

                          SUBCHAPTER A--GENERAL
Part                                                                Page
400

[Reserved]

401             Agriculture Acquisition Regulation System...          77
402             Definitions of words and terms..............          82
403             Improper business practices and personal 
                    conflicts of interest...................          82
404             Administrative matters......................          84
           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
405             Publicizing contract actions................          86
406             Competition requirements....................          86
407             Acquisition planning........................          87
408             Required sources of supplies and services...          88
409             Contractor qualifications...................          90
410             Market research.............................          92
411             Describing agency needs.....................          92
412             Acquisition of commercial items.............          93
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
413             Simplified acquisition procedures...........          95
414             Sealed bidding..............................          95
415             Contracting by negotiation..................          96
416             Types of contracts..........................          98
417             Special contracting methods.................          99
418

[Reserved]

                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
419             Small business programs.....................         100
420-421

[Reserved]

422             Application of labor laws to Government 
                    acquisitions............................         101
423             Environment, energy and water efficiency, 
                    renewable energy technologies, 
                    occupational safety, and drug-free 
                    workplace...............................         103
424             Protection of privacy and freedom of 
                    information.............................         105
425             Foreign acquisition.........................         106

[[Page 76]]

426             Other socioeconomic programs................         107
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
427             Patents, data, and copyrights...............         108
428             Bonds and insurance.........................         108
429

[Reserved]

430             Cost accounting standards administration....         109
431             Contract cost principles and procedures.....         110
432             Contract financing..........................         110
433             Protests, disputes and appeals..............         114
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
434             Major system acquisition....................         116
435             Research and development contracting........         117
436             Construction and architect-engineer 
                    contracts...............................         117
437             Service contracting.........................         120
438

[Reserved]

439             Acquisition of information technology.......         122
440

[Reserved]

441             Acquisition of utility services.............         122
                    SUBCHAPTER G--CONTRACT MANAGEMENT
442             Contract administration.....................         123
443-444

[Reserved]

445             Government property.........................         123
446             Quality assurance...........................         124
447             Transportation..............................         124
448

[Reserved]

449             Termination of contracts....................         125
450             Extraordinary contractual actions...........         125
451

[Reserved]

                     SUBCHAPTER H--CLAUSES AND FORMS
452             Solicitation provisions and contract clauses         127
453             Forms.......................................         138
                 SUBCHAPTER I--FOOD ASSISTANCE PROGRAMS
470             Commodity acquisitions......................         140
471-499

[Reserved]

[[Page 77]]



                          SUBCHAPTER A_GENERAL



                           PART 400 [RESERVED]



PART 401_AGRICULTURE ACQUISITION REGULATION SYSTEM--Table of Contents



Sec.
401.000  Scope of part.

               Subpart 401.1_Purpose, Authority, Issuance

401.101  Purpose.
401.103  Authority.
401.104  Applicability.
401.105  Issuance.
401.105-1  Publication and code arrangement.
401.105-2  Arrangement of regulations.
401.105-3  Copies.
401.106  OMB approval under the Paperwork Reduction Act.
401.170  Electronic access to regulatory information.

                      Subpart 401.2_Administration

401.201  Maintenance of the FAR.
401.201-1  The two councils.

              Subpart 401.3_Agency Acquisition Regulations

401.301  Policy.
401.304  Agency control and compliance procedures.
401.370  Exclusions.
401.371  AGAR Advisories.
401.372  Departmental directives.

             Subpart 401.4_Deviations From the FAR and AGAR

401.402  Policy.
401.403  Individual deviations.
401.404  Class deviations.

        Subpart 401.6_Contracting Authority and Responsibilities

401.601  General.
401.602  Contracting officers.
401.602-3  Ratification of unauthorized commitments.
401.603  Selection, appointment, and termination of appointment.
401.603-1  General.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



401.000  Scope of part.

    This part presents basic policies and general information about the 
Department of Agriculture's (USDA) Acquisition Regulation, subsequently 
referred to as the AGAR. The AGAR is an integral part of the Federal 
Acquisition Regulations System.



               Subpart 401.1_Purpose, Authority, Issuance



401.101  Purpose.

    (a) The AGAR provides for the codification and publication of 
uniform policies and procedures for acquisitions by contracting 
activities within USDA.
    (b) The purpose of the AGAR is to implement the Federal Acquisition 
Regulation (FAR), where further implementation is needed, and to 
supplement the FAR when coverage is needed for subject matter not 
covered in the FAR. The AGAR is not by itself a complete document, as it 
must be used in conjunction with the FAR.



401.103  Authority.

    The AGAR and amendments thereto are issued under 5 U.S.C. 301 and 40 
U.S.C. 486(c). The Senior Procurement Executive (SPE) has the delegated 
authority to promulgate Departmental acquisition regulations.



401.104  Applicability.

    The FAR and AGAR apply to all USDA acquisitions of supplies and 
services (including construction) which obligate appropriated funds, 
unless otherwise specified in this chapter or excepted by law.



401.105  Issuance.



401.105-1  Publication and code arrangement.

    (a) The AGAR is codified in the Code of Federal Regulations (CFR) as 
Chapter 4 of Title 48, Federal Acquisition Regulations System, to 
implement and supplement Chapter 1 which constitutes the FAR. Parts 400 
through 499 have been assigned to USDA by the Office of the Federal 
Register.

[[Page 78]]

    (b) The AGAR and its subsequent changes are published in:
    (1) Daily issues of the Federal Register,
    (2) Cumulative form in the CFR, and,
    (3) Electronic form on the USDA Departmental Administration 
Procurement Homepage (see 401.170).
    (c) Section 553(a)(2) of the Administrative Procedure Act, 5 U.S.C. 
553, provides an exception from the standard public rulemaking 
procedures to the extent that the rule involves a matter relating to 
agency management or personnel or to public property, loans, grants, 
benefits, or contracts. In 1971, Secretary of Agriculture Hardin 
announced a voluntary partial waiver from the Administrative Procedure 
Act exception, and USDA agencies generally are required to provide 
notice and an opportunity for public comment on proposed rules (36 FR 
13804, July 24, 1971). The AGAR has been promulgated and may be revised 
from time to time in accordance with the rulemaking procedures of the 
Administrative Procedure Act. The USDA also is required to publish for 
public comment procurement regulations in the Federal Register, pursuant 
to the Office of Federal Procurement Policy Act (41 U.S.C. 418b), and 
FAR 1.301.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 44, Jan. 3, 2005]



401.105-2  Arrangement of regulations.

    AGAR coverage parallels the FAR in format, arrangement, and 
numbering system. However, subdivisions below the section and subsection 
levels may not always correlate directly to FAR designated paragraphs 
and subparagraphs.



401.105-3  Copies.

    Copies of the AGAR published in CFR form may be purchased from the 
Superintendent of Documents, Government Printing Office, Washington, 
D.C. 20402. Requests should reference Chapter 4 of Title 48 CFR.



401.106  OMB approval under the Paperwork Reduction Act.

    The following OMB control numbers apply to USDA solicitations and 
specified information collections within the AGAR:

------------------------------------------------------------------------
                                                             OMB Control
                        AGAR segment                             No.
------------------------------------------------------------------------
411.170....................................................    0505-0014
415.2......................................................    0505-0013
436.575....................................................    0505-0011
437.110....................................................    0505-0015
437.270....................................................    0505-0016
452.211-1..................................................    0505-0014
452.215-71.................................................    0505-0013
452.236-75.................................................    0505-0011
452.237-74.................................................    0505-0015
452.237-76.................................................    0505-0016
------------------------------------------------------------------------


[61 FR 53646, Oct. 15, 1996, as amended at 64 FR 52674, Sept. 30, 1999]



401.170  Electronic access to regulatory information.

    The USDA Departmental Administration Procurement Homepage provides 
access to the AGAR, AGAR amendments (circulars), AGAR Advisories, and 
other USDA procurement policy and guidance in electronic form. The 
Internet address for the Procurement Homepage is URL http://
www.usda.gov/procurement/.

[63 FR 26994, May 15, 1998, as amended at 70 FR 44, Jan. 3, 2005]



                      Subpart 401.2_Administration



401.201  Maintenance of the FAR.



401.201-1  The two councils.

    (a) USDA's representative on the Civilian Agency Acquisition Council 
is designated by the SPE.
    (b) The Procurement Policy Division will coordinate proposed FAR 
revisions within USDA.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 44, Jan. 3, 2005]



              Subpart 401.3_Agency Acquisition Regulations



401.301  Policy.

    (a) The SPE, subject to the authorities in 401.103 and FAR 1.301, 
may issue and publish Departmental regulations, that together with the 
FAR, constitute Department-wide policies, procedures, solicitation 
provisions, and contract clauses governing the contracting process or 
otherwise controlling the relationship between USDA (including any of 
its contracting activities) and contractors or prospective contractors.

[[Page 79]]

    (b) Each designated head of a contracting activity (HCA) is 
authorized to issue or authorize the issuance of, at any organizational 
level, internal guidance which does not have a significant effect beyond 
the internal operating procedures of the activity, or a significant cost 
or administrative impact on offerors or contractors. Internal guidance 
issued by contracting activities will not be published in the Federal 
Register. HCA's shall ensure that the guidance, procedures, or 
instructions issued--
    (1) Are consistent with the policies and procedures contained in 
this chapter;
    (2) Follow the format, arrangement, and numbering system of this 
chapter to the extent practicable;
    (3) Contain no material which duplicates, paraphrases, or is 
inconsistent with this chapter; and
    (4) Are numbered and identified by use of alphabetical suffixes to 
the chapter number as follows:

4A [Reserved]
4B Agricultural Research Service.
4C Farm Service Agency.
4D Rural Development (mission area).
4E Food Safety and Inspection Service.
4F [Reserved]
4G Forest Service.
4H [Reserved]
4I Natural Resources Conservation Service.
4J [Reserved]
4K Food and Nutrition Service.
4L Animal and Plant Health Inspection Service.
4M [Reserved]
4N Departmental Administration.
4O-4P [Reserved]
4R Office of Inspector General.
4S [Reserved]

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 44, Jan. 3, 2005]



401.304  Agency control and compliance procedures.

    (a) The AGAR System is under the direct oversight and control of the 
SPE, who is responsible for review and issuance of all Department-wide 
acquisition regulations published in the Federal Register to assure 
compliance with FAR part 1.
    (b) The SPE is also responsible for review and issuance of 
unpublished, Department-wide internal guidance under the AGAR System.
    (c) HCA's are responsible for establishment and implementation of 
formal procedures for oversight and control of unpublished internal 
guidance issued within the contracting activity to implement FAR or AGAR 
requirements. These procedures shall be subject to the review and 
approval by the SPE.
    (d) The SPE is responsible for evaluating coverage under the AGAR 
System to determine applicability to other agencies and for recommending 
coverage to the FAR Secretariat for inclusion in the FAR.
    (e) Recommendations for revision of existing FAR coverage or new FAR 
coverage shall be submitted by the HCA to the SPE for further action.



401.370  Exclusions.

    Subject to the policies of FAR subpart 1.3, certain USDA acquisition 
policies and procedures may be excluded from the AGAR under 
appropriately justified circumstances, such as:
    (a) Subject matter which is effective for a period less than 12 
months.
    (b) Subject matter which is instituted on an experimental basis for 
a reasonable period.
    (c) Acquisition procedures instituted on an interim basis to comply 
with the requirements of statute, regulation, Executive Order, OMB 
Circular, or OFPP Policy Letter.



401.371  AGAR Advisories.

    The SPE may issue AGAR Advisories, consistent with the policies of 
the FAR and the AGAR, for the following purposes:
    (a) To communicate Department-wide policy and/or procedural guidance 
to contracting activities;
    (b) To delegate to procurement officials authority to make 
determinations or to take action to implement the policies of the FAR or 
the AGAR; and,
    (c) To establish internal policy and procedures on an interim basis, 
prior to incorporation in the AGAR or in a Departmental Directive.
    (d) AGAR Advisories are only available in electronic format on the 
USDA

[[Page 80]]

Procurement Web site at http://www.usda.gov/procurement/.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 44, Jan. 3, 2005]



401.372  Departmental directives.

    Subject to the policies of FAR 1.3, USDA from time to time may issue 
internal directives to establish procedures, standards, guidance, or 
methods of performing duties, functions, or operations. Such directives 
include Departmental Regulations (DR's), Departmental Notices, and 
Secretary's Memoranda.



             Subpart 401.4_Deviations From the FAR and AGAR



401.402  Policy.

    Requests for authority to deviate from the provisions of the FAR or 
the AGAR shall be submitted in writing as far in advance as the 
exigencies of the situation will permit. Each request for deviation 
shall contain the following:
    (a) A statement of the deviation desired, including identification 
of the specific paragraph number(s) of the FAR and AGAR;
    (b) The reason why the deviation is considered necessary or would be 
in the best interest of the Government;
    (c) If applicable, the name of the contractor and identification of 
the contract affected;
    (d) A statement as to whether the deviation has been requested 
previously and, if so, circumstances of the previous request;
    (e) A description of the intended effect of the deviation;
    (f) A statement of the period of time for which the deviation is 
needed; and
    (g) Any pertinent background information which will contribute to a 
full understanding of the desired deviation.



401.403  Individual deviations.

    In individual cases, deviations from either the FAR or the AGAR will 
be authorized only when essential to effect a necessary acquisition or 
where special circumstances make such deviations clearly in the best 
interest of the Government. Except for cost principles, HCA's may 
approve individual deviations from the AGAR, after coordinating with the 
General Counsel and the SPE. No deviations from the FAR or AGAR may be 
authorized at the contracting office level. A copy of each deviation and 
its supporting documentation shall be provided to the SPE. Deviations 
from the FAR shall not be made unless such action is authorized by the 
SPE after consultation with the Office of the General Counsel and any 
other appropriate office, on the basis of a written justification 
stating clearly the special circumstances involved.



401.404  Class deviations.

    Where deviations from the FAR or AGAR are considered necessary for 
classes of contracts, requests for authority to deviate shall be 
submitted in writing to the SPE for approval. The SPE may authorize 
class deviations from the FAR without consulting the Chairperson of the 
Civilian Agency Acquisition Council where urgency precludes 
consultation. The SPE shall subsequently inform the Chairperson of the 
Civilian Agency Acquisition Council of the deviation including the 
circumstances under which it was required.



        Subpart 401.6_Contracting Authority and Responsibilities



401.601  General.

    (a) The authority and responsibility vested in the Secretary to 
manage USDA's acquisition function is delegated through the Assistant 
Secretary for Administration to the SPE. This broad authority includes, 
but is not limited to, the following responsibilities:
    (1) Prescribing and publishing Departmental acquisition policies, 
regulations, and procedures.
    (2) Taking any necessary actions consistent with policies, 
regulations, and procedures with respect to purchases, contracts, 
leases, and other transactions.
    (3) Designating contracting officers.
    (4) Establishing clear lines of contracting authority.
    (5) Evaluating and monitoring the performance of USDA's acquisition 
system.

[[Page 81]]

    (6) Managing and enhancing career development of the contracting 
work force.
    (7) Participating in the development of Government-wide acquisition 
policies, regulations, and standards; and determining specific areas 
where government-wide performance standards should be established and 
applied.
    (8) Determining areas of Department-unique standards and developing 
unique Department-wide standards.
    (9) Certifying to the Secretary that the acquisition system meets 
approved standards.
    (b) The SPE may delegate contracting authority to the Heads of 
Contracting Activities (HCA's) and the responsibility to manage their 
acquisition function.
    (c) Unless prohibited by the FAR, the AGAR, or by other applicable 
statutes and regulations, the SPE may redelegate to HCA's the authority 
to make determinations as the agency head in order to implement the 
policies and procedures of the FAR. Such delegations shall be in 
writing, but need not be published.
    (d) Unless prohibited by the FAR, the AGAR, or by other applicable 
statutes or regulations, each HCA may designate one individual from the 
contracting activity to carry out the functions of the HCA (HCAD). The 
HCAD may exercise all authority delegated to the HCA.



401.602  Contracting officers.



401.602-3  Ratification of unauthorized commitments.

    (a) Definitions. Ratification, as used in this section, means the 
signed, documented action taken by an authorized official to approve and 
sanction a previously unauthorized commitment.
    Unauthorized commitment, as used in this section, means an agreement 
made by a Government representative who lacked the authority to enter 
into a contract on behalf of the Government.
    (b) Policy. The HCA may delegate ratification authority to the chief 
of the contracting office.
    (c) Procedure. Whenever an official of the cognizant contracting 
activity who is authorized to ratify unauthorized commitments learns 
that a person or firm has assumed work as a result of an unauthorized 
commitment, that official shall take the following actions:
    (1) Immediately inform any person who is performing work as a result 
of an unauthorized commitment that the work is being performed at that 
person's risk;
    (2) Inform the individual who made the unauthorized commitment of 
the seriousness of the act and the possible consequences;
    (3) Ensure that the individual who made the unauthorized commitment 
furnishes all records and documents concerning the commitment and a 
complete, written statement of facts, including, but not limited to: a 
statement as to why a contracting officer was not used; why the vendor 
was selected and a list of sources considered; a description of work to 
be performed or products to be furnished; the estimated or agreed price; 
whether an appropriation is available for the work; and whether 
performance has begun. Under exceptional circumstances, such as when the 
individual who made the unauthorized commitment is no longer available 
to attest to the circumstances of the unauthorized commitment, the 
ratifying official may waive these requirements; and
    (4) Decide whether ratification is proper and proceed as follows:
    (i) If ratification is not justifiable, provide the cognizant 
program office, contracting office, and the unauthorized contractor with 
an explanation of the decision not to ratify.
    (ii) If ratification appears adequately justified, ratify the action 
and retain or assign the contract to a successor contracting officer if 
necessary.
    (iii) Maintain related approval, decisional, and background 
documents in the contract file for audit purposes.
    (iv) Notify the cognizant program supervisor or line officer about 
the final disposition of the case; the notification may include a 
recommendation that the unauthorized commitment should be further 
considered a violation of USDA's employee conduct regulations.

[[Page 82]]



401.603  Selection, appointment, and termination of appointment.



401.603-1  General.

    An HCA may delegate contracting authority to the extent authorized 
by the SPE in a general delegation of acquisition authority, by 
appointing qualified individuals as contracting officers, in accordance 
with the USDA Contracting Officer Warrant System, Departmental 
Regulation 5001-1.



PART 402_DEFINITIONS OF WORDS AND TERMS--Table of Contents



Sec.
402.000  Scope of part.

                        Subpart 402.1_Definitions

402.101  Definitions.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



402.000  Scope of part.

    As used throughout this chapter, the following words and terms are 
used as defined in this subpart unless the context in which they are 
used clearly requires a different meaning, or a different definition is 
prescribed for a particular part or portion of a part.



                        Subpart 402.1_Definitions



402.101  Definitions.

    Acquisition official means an individual who has been delegated 
authority to manage or to exercise acquisition functions and 
responsibilities.
    Agency head or Head of the Agency means the Secretary of 
Agriculture, Deputy Secretary, or the Assistant Secretary for 
Administration.
    Head of the contracting activity (HCA) means the official who has 
overall responsibility for managing the contracting activity (i.e., 
Chief, Forest Service; Administrator, Agricultural Research Service; 
etc.), or the individual designated by such an official to carry out the 
functions of the HCA.
    Senior Procurement Executive (SPE) means the agency official 
appointed as such by the head of the agency pursuant to Executive Order 
12931. The Director, Office of Procurement and Property Management, has 
been designated as the USDA SPE.

[61 FR 53646, Oct. 15, 1996, as amended at 63 FR 26994, May 15, 1998]



PART 403_IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST
--Table of Contents



                        Subpart 403.1_Safeguards

Sec.
403.101  Standards of conduct.
403.101-3  Agency regulations.
403.104  Procurement integrity.
403.104-5  [Reserved]
403.104-7  Violations or possible violations.

       Subpart 403.2_Contractor Gratuities to Government Personnel

403.203  Reporting suspected violations of the gratuities clause.
403.204  Treatment of violations.

         Subpart 403.3_Reports of Suspected Antitrust Violations

403.303  Reporting suspected antitrust violations.

                      Subpart 403.4_Contingent Fees

403.405  Misrepresentations or violations of the Covenant Against 
          Contingent Fees.

             Subpart 403.5_Other Improper Business Practices

403.502  Subcontractor kickbacks.

Subpart 403.6_Contracts With Government Employees or Organizations Owned 
                          or Controlled by Them

403.602  Exceptions.
403.603  Responsibilities of the contracting officer.

 Subpart 403.8_Limitation on the Payment of Funds To Influence Federal 
                              Transactions

403.806  Processing suspected violations

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.

[[Page 83]]



                        Subpart 403.1_Safeguards



403.101  Standards of conduct.



403.101-3  Agency regulations.

    (a) The standards of conduct for USDA procurement officials are the 
uniform standards established by the Office of Government Ethics in 5 
CFR Part 2635, Standards of Ethical Conduct for Employees of the 
Executive Branch, and FAR 3.104, Procurement integrity.
    (b) Procurement officials and other employees who require advice 
concerning the application of standards of conduct to any acquisition 
issue shall obtain ethics advisory opinions from ethics advisory 
officials in their agency personnel offices.



403.104  Procurement integrity.



403.104-5  [Reserved]



403.104-7  Violations or possible violations.

    The contracting officer shall forward information concerning any 
violation or possible violation of the Procurement Integrity Act (41 
U.S.C. 423) to the chief of the contracting office.

[61 FR 53646, Oct. 15, 1996, as amended at 63 FR 26995, May 15, 1998. 
Redesignated and amended at 70 FR 44, Jan. 3, 2005]



       Subpart 403.2_Contractor Gratuities to Government Personnel



403.203  Reporting suspected violations of the gratuities clause.

    A suspected violation of the contract clause, FAR 52.203-3, 
Gratuities, shall be reported immediately to the cognizant contracting 
officer in writing, stating the circumstances surrounding the 
incident(s), the date(s), and names of all parties involved. The 
contracting officer shall review the report for completeness, add any 
additional information deemed necessary and a recommendation for action, 
and submit the report to the HCA.



403.204  Treatment of violations.

    The HCA shall review the report and consult with the Offices of 
General Counsel and Inspector General to determine whether further 
action should be pursued. If it is found that the facts and 
circumstances warrant further action, the HCA shall give the contractor 
a formal written notice which summarizes the reported violation and 
affords the contractor the opportunity to make a written or oral 
response within a reasonable, specified period after receipt of the 
notice. The notice shall be sent by certified mail with return receipt 
requested. Oral presentations shall follow the procedures outlined in 
FAR 3.204(b). The HCA shall furnish copies of any adverse determination 
to the contracting officer and the Department Debarring Officer for 
their subsequent considerations under FAR 3.204(c)(1) and (2), 
respectively.



         Subpart 403.3_Reports of Suspected Antitrust Violations



403.303  Reporting suspected antitrust violations.

    Contracting officers shall report the circumstances of suspected 
violations of antitrust laws to the Office of Inspector General in 
accordance with procedures in Departmental Regulations (1700 series).



                      Subpart 403.4_Contingent Fees



403.405  Misrepresentations or violations of the Covenant Against
Contingent Fees.

    (a) A suspected misrepresentation or violation of the Covenant 
Against Contingent Fees shall be documented in writing by the 
contracting officer and reported immediately to the chief of the 
contracting office. The chief of the contracting office shall determine 
if a violation has occurred and report any violation to the Office of 
Inspector General. The chief of the contracting office shall take action 
in accordance with FAR 3.405(b).
    (b) If the chief of the contracting office decides to refer the case 
to the Department of Justice, it should be referred through the Office 
of Inspector General with a copy of the report and referral submitted 
through the HCA to the Senior Procurement Executive.

[61 FR 53646, Oct. 15, 1996. Redesignated and amended at 70 FR 44, Jan. 
3, 2005]

[[Page 84]]



             Subpart 403.5_Other Improper Business Practices



403.502  Subcontractor kickbacks.

    Contracting officers shall report the circumstances of suspected 
violations of the Anti-Kickback Act (41 U.S.C. 51-58) to the Office of 
Inspector General in accordance with procedures in Departmental 
Regulations (1700 series).

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 44, Jan. 3, 2005]



Subpart 403.6_Contracts With Government Employees or Organizations Owned 
                          or Controlled by Them



403.602  Exceptions.

    The HCA is authorized to accept a contract from the policy in FAR 
3.601.



403.603  Responsibilities of the contracting officer.

    The contracting officer, when requesting authorization under 
403.602, shall prepare a written determination and findings for the 
signature of the HCA. The determination shall document compliance with 
FAR 3.603, specifying the compelling reason(s) for award, and shall be 
placed in the contract file.



 Subpart 403.8_Limitation on the Payment of Funds To Influence Federal 
                              Transactions



403.806  Processing suspected violations.

    Suspected violations of the requirements of 31 U.S.C. 1352 shall be 
referred to the Office of Inspector General in accordance with 
procedures in Departmental Regulations (1700 series).



PART 404_ADMINISTRATIVE MATTERS--Table of Contents



                   Subpart 404.2_Contract Distribution

Sec.
404.203  Taxpayer identification information.

    Subpart 404.4_Safeguarding Classified Information Within Industry

404.403  Responsibilities of contracting officers.

                    Subpart 404.6_Contract Reporting

404.601  [Reserved]
404.602  Federal Procurement Data System.

                 Subpart 404.8_Government Contract Files

404.870  Document numbering system.

             Subpart 404.11_Central Contractor Registration

404.1103  Procedures.

                   Subpart 404.70_Precontract Notices

404.7001  Solicitation provision.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                   Subpart 404.2_Contract Distribution



404.203  Taxpayer identification information.

    (a) If the contractor furnishes taxpayer identification number (TIN) 
and type of organization information pursuant to solicitation provision 
52.204-3 or 52.212-3, and the USDA Office of the Chief Financial 
Officer, Controller Operations Division, New Orleans will be the payment 
office, that information will be entered into the Foundation Financial 
Information System (FFIS) in accordance with FFIS Vendor Table 
Maintenance Procedures set forth in FFIS Bulletins issued by the Office 
of the Chief Financial Officer and AGAR Advisories issued by the Office 
of Procurement and Property Management.
    (b) Separate submission of the TIN or type of organization 
information, in accordance with 52.204-3 or 52.212-3, is not required 
for contractors registered in the Central Contractor Registration (CCR) 
database.

[70 FR 44, Jan. 3, 2005]

[[Page 85]]



    Subpart 404.4_Safeguarding Classified Information Within Industry



404.403  Responsibilities of contracting officers.

    When a proposed solicitation is likely to require access to 
classified information, the contracting officer shall consult with the 
Information Security Staff, Personnel and Document Security Division, 
Office of Procurement and Property Management, regarding the procedures 
that must be followed.

[70 FR 44, Jan. 3, 2005]



                    Subpart 404.6_Contract Reporting



404.601  [Reserved]



404.602  Federal Procurement Data System.

    (a) Contracting activities shall report contract actions into the 
Federal Procurement Data System in accordance with the instructions 
issued or distributed by the SPE.
    (b) The unique identifier for each contract action reported to the 
Federal Procurement Data System shall begin with the two-letter USDA 
Agency Prefix ``AG''.

[70 FR 44, Jan. 3, 2005]



                 Subpart 404.8_Government Contract Files



404.870  Document numbering system.

    The SPE shall issue AGAR Advisories to establish and maintain a 
numbering system for USDA contracts, modifications, and delivery/task 
orders. USDA contracting offices shall number contracts, modifications, 
and orders in accordance with this numbering system.

[70 FR 44, Jan. 3, 2005]



             Subpart 404.11_Central Contractor Registration



404.1103  Procedures.

    (a) Contracting officers and other USDA employees shall not enter 
information into the Central Contractor Registration (CCR) database on 
behalf of prospective contractors. Prospective contractors who are 
unable to register on-line at the CCR Web site should be advised to 
submit a written application to CCR for registration into the CCR 
database. USDA employees may assist prospective contractors by 
downloading the registration template, CCR handbook, and other 
information from the CCR Web site and providing copies of that material 
to requesters. Written applications for registration may be submitted to 
Department of Defense Central Contractor Registration, 74 Washington 
Ave., Suite 7, Battle Creek, MI 49017-3084.
    (b) Verification that the prospective contractor is registered in 
the CCR database shall be done via the CCR Internet Web site http://
www.ccr.gov. This verification process using the CCR Web site applies 
both to acquisitions executed using USDA legacy procurement systems and 
the USDA Integrated Acquisition System.
    (c) AGAR Advisories issued by the Office of Procurement and Property 
Management will address internal procedures for integration of 
contractor information in the CCR database with the USDA FFIS payment 
system.

[70 FR 44, Jan. 3, 2005]



                   Subpart 404.70_Precontract Notices



404.7001  Solicitation provision.

    The contracting officer shall insert the provision at 452.204-70, 
Inquiries, in all solicitations.

[[Page 86]]



            SUBCHAPTER B_COMPETITION AND ACQUISITION PLANNING





PART 405_PUBLICIZING CONTRACT ACTIONS--Table of Contents



                Subpart 405.3_Synopses of Contract Awards

Sec.
405.303  Announcement of contract awards.

                  Subpart 405.4_Release of Information

405.403  Requests from Members of Congress.
405.404  Release of long-range acquisition estimates.
405.404-1  Release procedures.

                    Subpart 405.5_Paid Advertisements

405.502  Authority.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                Subpart 405.3_Synopses of Contract Awards



405.303  Announcement of contract awards.

    Contracting officers shall make information available on any 
contract award with an estimated total value over $1 million (including 
options) to their agency congressional liaison office in sufficient time 
for the agency to announce it by 5:00 p.m. Washington, DC time on the 
day of award. The agency congressional liaison office shall, concurrent 
with the public announcement, provide the award announcement information 
to the USDA Congressional Relations Office.



                  Subpart 405.4_Release of Information



405.403  Requests from Members of Congress.

    The head of the contracting activity (HCA) is the agency head 
designee pursuant to FAR 5.403.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 45, Jan. 3, 2005]



405.404  Release of long-range acquisition estimates.



405.404-1  Release procedures.

    (a) HCA's shall establish written procedures to control the release 
of long-range acquisition estimates, as authorized under FAR 5.404-1.
    (b) Classified information shall not be released without the 
approval of the Information Security Staff, Personnel and Document 
Security Division, Office of Procurement and Property Management. 
Departmental Manuals and Regulations (3400 series) contain guidance on 
classified information.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 45, Jan. 3, 2005]



                    Subpart 405.5_Paid Advertisements



405.502  Authority.

    (a) The authority vested in the agency head to authorize publication 
of paid advertisements in newspapers (44 U.S.C. 3702) is delegated, with 
power of redelegation, to HCA's. HCA redelegation of this authority 
shall be in writing.
    (b) Policies and procedures regarding prior authorization required 
for media other than newspapers are contained in USDA Departmental 
Regulations 1400 series.



PART 406_COMPETITION REQUIREMENTS--Table of Contents



   Subpart 406.2_Full and Open Competition After Exclusion of Sources

Sec.
406.202  Establishing or maintaining alternative sources.

           Subpart 406.3_Other Than Full and Open Competition

406.302  Circumstances permitting other than full and open competition.
406.302-70  Otherwise authorized by law.

                   Subpart 406.5_Competition Advocates

406.501  Requirements.


[[Page 87]]


    Authority: 5 U.S.C. and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



   Subpart 406.2_Full and Open Competition After Exclusion of Sources



406.202  Establishing or maintaining alternative sources.

    The Senior Procurement Executive is authorized to make 
determinations pursuant to FAR 6.202(a) and sign the determination and 
findings required by FAR 6.202(b).



           Subpart 406.3_Other Than Full and Open Competition



406.302  Circumstances permitting other than full and open competition.



406.302-70  Otherwise authorized by law.

    (a) Authority. Section 1472 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3318) (the Act) 
authorizes the Secretary of Agriculture to award contracts, without 
competition, to further research, extension, or teaching programs in the 
food and agricultural sciences.
    (b) Limitations. The use of this authority is limited to those 
instances where it can be determined that contracting without full and 
open competition is in the best interest of the Government and necessary 
to the accomplishment of the research, extension, or teaching program. 
Therefore:
    (1) Contracts under the authority of the Act shall be awarded on a 
competitive basis to the maximum practicable extent.
    (2) When full and open competition is not deemed appropriate, the 
contracting officer shall make a written justification on a case-by-case 
basis in accordance with procedures in FAR 6.303 and 6.304.



                   Subpart 406.5_Competition Advocates



406.501  Requirements.

    (a) The Chief, Procurement Policy Division, Office of Procurement 
and Property Management, has been designated as the Competition Advocate 
for USDA.
    (b) Each HCA shall designate a competition advocate for the 
contracting activity. The HCA shall forward a copy of the designation 
memorandum to the Competition Advocate for USDA.

[70 FR 45, Jan. 3, 2005]



PART 407_ACQUISITION PLANNING--Table of Contents



                     Subpart 407.1_Acquisition Plans

Sec.
407.103  Agency-head responsibilities.
407.170  Advance acquisition plans.

Subpart 407.3 [Reserved]

             Subpart 407.5_Inherently Governmental Functions

407.503  Policy.

    Authority: 5 U.S.C. 301 and 40 U.S.C.

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                     Subpart 407.1_Acquisition Plans



407.103  Agency-head responsibilities.

    Heads of Contracting Activities (HCA's) shall develop procedures to 
comply with FAR 7.103.



407.170  Advance acquisition plans.

    Each HCA shall maintain an advance acquisition planning system.

[70 FR 45, Jan. 3, 2005]

Subpart 407.3 [Reserved]



             Subpart 407.5_Inherently Governmental Functions



407.503  Policy.

    (a) HCA's shall establish procedures to ensure that requesting 
activities

[[Page 88]]

provide the written determination required by FAR 7.503(e), when 
submitting requests for procurement of services.
    (b) In the event of a disagreement as to whether the functions to be 
performed are inherently governmental, the HCA may refer the matter to 
the Senior Procurement Executive (SPE) for resolution. When submitting 
disagreements to the SPE for resolution the HCA shall provide a summary 
of the areas of disagreement, supported by the following:
    (1) The HCA's assessment of whether the services are ``inherently 
governmental'';
    (2) The basis for that assessment (include references to the 
definition and policy in FAR subpart 7.5 and/or Office of Federal 
Procurement Policy letter 92-1);
    (3) A copy of the statement of work; and,
    (4) The requesting activity's written determination in accordance 
with FAR 7.503(e).
    (c) Such disagreements shall be resolved prior to issuance of the 
solicitation.

[61 FR 53646, Oct. 15, 1996, as amended at 63 FR 26995, May 15, 1998]



PART 408_REQUIRED SOURCES OF SUPPLIES AND SERVICES--Table of Contents



                 Subpart 408.4_Federal Supply Schedules

Sec.
408.404  Using schedules.
408.404-3  Requests for waivers.

 Subpart 408.7_Acquisition From Nonprofit Agencies Employing People Who 
                     Are Blind or Severely Disabled

408.701  Definitions.
408.705  Procedures.
408.705-2  Direct order process.
408.705-3  Allocation process.
408.705-4  Compliance with orders.
408.706  Purchase exemptions.
408.707  Prices.
408.711  Quality complaints.
408.712  Specification changes.
408.714  Communications with the central nonprofit agencies and the 
          Committee.

       Subpart 408.8_Acquisition of Printing and Related Supplies

408.802  Policy.

                Subpart 408.11_Leasing of Motor Vehicles

408.1103  Contract requirements.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                 Subpart 408.4_Federal Supply Schedules



408.404  Using schedules.



408.404-3  Requests for waivers.

    A copy of the request for a waiver and the approval shall be placed 
in the contract file to support the acquisition of items off schedule.



 Subpart 408.7_Acquisition From Nonprofit Agencies Employing People Who 
                     Are Blind or Severely Disabled

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.

    Editorial Note: Nomenclature changes to subpart 408.7 of part 408 
appear at 70 FR 45, Jan. 3, 2005.



408.701  Definitions.

    Committee Member is the Presidential appointee representing USDA as 
a member of the Committee for Purchase from People Who Are Blind or 
Severely Disabled.
    Organization head is the Under Secretary or Assistant Secretary of a 
mission area or the head of a USDA staff office.

[70 FR 45, Jan. 3, 2005]



408.705  Procedures.

    (a) The organization head shall appoint one person as Javits-Wagner-
O'Day Act (JWOD) Liaison to represent the organization and to coordinate 
the organization's actions with the Committee Member.
    (b) JWOD advocates may represent more than one organization. 
Liaisons need not be acquisition officials.
    (c) The organization head shall issue and maintain a performance 
plan to promote and enhance the organization's acquisitions from JWOD 
participating nonprofit agencies.
    (d) The performance plan shall:

[[Page 89]]

    (1) Announce the organization's support for the JWOD Act;
    (2) Establish a promotion program for the products and services 
provided by the JWOD participating nonprofit agencies;
    (3) Provide for the JWOD Liaison's role in acquisition planning;
    (4) Establish measurable program goals for growth or other 
accomplishment in the organization's JWOD program actions; and
    (5) Establish an awards program for successful participation in the 
JWOD program.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 45, Jan. 3, 2005]



408.705-2  Direct order process.

    (a) The chief of a contracting office may apply to a central 
nonprofit agency for authorization to order specific supplies or 
services directly from a JWOD participating nonprofit agency.
    (b) A copy of the application should be provided to the JWOD Liaison 
who will inform the USDA Committee Member.



408.705-3  Allocation process.

    (a) The chief of a contracting office may apply to a central 
nonprofit agency for a production allocation of specific supplies or 
services to a JWOD participating nonprofit agency.
    (b) A copy of the application should be provided to the JWOD Liaison 
who will inform the USDA Committee Member.



408.705-4  Compliance with orders.

    Prior to attempting to resolve a failure to perform by a 
participating nonprofit agency with the Committee, the chief of the 
contracting office should provide advance notice to the JWOD Liaison who 
will inform the USDA Committee Member.



408.706  Purchase exemptions.

    Prior to applying to the Committee for a purchase exemption, the 
chief of the contracting office should provide advance notice to the 
JWOD Liaison who will inform the USDA Committee Member.



408.707  Prices.

    Prior to applying for a price revision, the chief of the contracting 
office should provide advance notice to the JWOD Liaison who will inform 
the USDA Committee Member.



408.711  Quality complaints.

    Prior to attempting to resolve a complaint regarding the quality of 
goods or services provided by participating nonprofit agency with the 
Committee, the chief of the contracting office should provide advance 
notice to the JWOD Liaison who will inform the USDA Committee Member.



408.712  Specification changes.

    Prior to providing 90-days advance notification to the Committee on 
actions that affect supplies and services on the Procurement List, the 
chief of the contracting office should provide advance notice to the 
JWOD Liaison who will inform the USDA Committee Member.



408.714  Communications with the central nonprofit agencies and the
Committee.

    Any matter requiring referral to the Committee shall be provided to 
the JWOD Liaison who will coordinate the matter with the Committee 
Member.



       Subpart 408.8_Acquisition of Printing and Related Supplies



408.802  Policy.

    (a) The Director, Office of Communications (OC) has been designated 
as the central printing authority in USDA, with the authority to 
represent the USDA before the Joint Committee on Printing (JCP), the 
Government Printing Office, and other Federal and State agencies on all 
matters related to printing.
    (b) Prior to contracting for any of the items defined in FAR 8.801, 
the contracting officer shall verify that the requisite approval has 
been received by the publication liaison officer or requisitioner.
    (c) The approval from OC or the approval authority designated by OC 
shall be maintained in the contract file.

[[Page 90]]



                Subpart 408.11_Leasing of Motor Vehicles



408.1103  Contract requirements.

    If the requirement includes the need for the vendor to provide 
operational maintenance such as fueling, lubrication, or other fluid 
changes or replenishment, the contracting officer shall include in the 
contract:
    (1) A requirement for the use of fluids and lubricants containing 
the maximum available amounts of recovered materials, and alternative 
fuels whenever available; and
    (2) A preference for retreaded tires meeting the Federal retread 
specifications, tires with the maximum recovered material content, or 
retreading services for the tires on the vehicle.

[70 FR 45, Jan. 3, 2005]



PART 409_CONTRACTOR QUALIFICATIONS--Table of Contents



          Subpart 409.4_Debarment, Suspension and Ineligibility

Sec.
409.403  Definitions.
409.404  List of parties excluded from Federal procurement and 
          nonprocurement programs.
409.405  Effect of listing.
409.405-1  Continuation of current contracts.
409.405-2  Restrictions on subcontracting.
409.406  Debarment.
409.406-3  Procedures.
409.407  Suspension.
409.407-3  Procedures.

    Subpart 409.5_Organizational and Consultant Conflicts of Interest

409.503  Waiver.

    Authority: 40 U.S.C. 121, 41 U.S.C. 421.

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



          Subpart 409.4_Debarment, Suspension and Ineligibility



409.403  Definitions.

    Debarring official. Pursuant to the Secretary's delegations of 
authority in 7 CFR 2.24, the Senior Procurement Executive (SPE) is 
designated as the debarring official (Department Debarring Officer) with 
the following exceptions:
    (a) For commodity contracts awarded on behalf of the Commodity 
Credit Corporation (CCC), the Executive Vice President, CCC, or his 
designee is designated as the debarring official pursuant to 7 CFR part 
1407.
    (b) For contracts awarded under the School Lunch and Surplus Removal 
Programs (42 U.S.C. 1755 and 7 U.S.C. 612c), the Department Debarring 
Officer has delegated debarring authority to the Agricultural Marketing 
Service (AMS).

[63 FR 26995, May 15, 1998]



409.404  List of parties excluded from Federal procurement and 
nonprocurement programs.

    The Department Debarring Officer is USDA's single point of contact 
with GSA for debarment and suspension actions taken under this subpart. 
The debarring official for AMS shall notify the Department Debarring 
Officer of each debarment and suspension action by promptly submitting a 
copy of the debarment or suspension notice and any later changes to the 
debarment or suspension status. The Department Debarring Officer will 
forward a copy of each notice to GSA for inclusion in the Government-
wide list.



409.405  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 SPE is authorized to make the determinations under FAR 
9.405. Requests for such determinations shall be submitted through the 
head of the contracting activity (HCA) to the SPE.



409.405-1  Continuation of current contracts.

    The HCA is authorized to make the determinations under FAR 9.405-1.



409.405-2  Restrictions on subcontracting.

    The HCA is authorized to approve subcontracts with debarred or 
suspended subcontractors under FAR 9.405-2.

[[Page 91]]



409.406  Debarment.



409.406-3  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 shall be immediately referred 
through the HCA to the debarring official. 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 shall be referred to the HCA who should 
consult with the Office of 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 Inspector General and Office of the 
General Counsel, as appropriate, 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.
    (c) Fact-finding proceeding. 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, 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 shall 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. The 
contractor shall be provided a copy of a transcript of the proceedings 
under the conditions established in FAR 9.406-3(b)(2)(ii).



409.407  Suspension.



409.407-3  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 shall be immediately referred 
through the HCA to the debarring official. 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 shall be referred to 
the HCA who should consult with the Office of Inspector General to 
determine if further investigation is required prior to referring it to 
the debarring official.
    (b) Decision-making process. If, after reviewing the recommendations 
and consulting with the Office of Inspector General and Office of the 
General Counsel, as appropriate, the debarring official determines 
suspension is justified, the debarring official shall initiate the 
proposed suspension in accordance with FAR 9.407-3(c) and notify the HCA 
of the action taken.
    (c) Fact-finding proceedings. For actions listed under 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 409.406-3(c).



    Subpart 409.5_Organizational and Consultant Conflicts of Interest



409.503  Waiver.

    (a) The HCA, on a non-delegable basis, is authorized to waive any 
general rule or procedure in FAR 9.5 when in the Government's interest.
    (b) Each request for waiver shall include:
    (1) The general rule or procedure proposed to be waived;
    (2) An analysis of the potential conflict, including the benefits 
and detriments to the Government and prospective contractors;

[[Page 92]]

    (3) A discussion of why the conflict cannot be avoided, neutralized, 
or mitigated; and
    (4) Advice of counsel obtained under FAR 9.504(b).



PART 410_MARKET RESEARCH--Table of Contents



Sec.
410.001  Policy.
410.002  Procedures.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c)

    Source: 70 FR 45, Jan. 3, 2005, unless otherwise noted.



410.001  Policy.

    In addition to those uses listed in FAR 10.001, agencies must use 
the results of market research to--
    (a) Ensure the minimum use of hazardous or toxic materials;
    (b) Ensure the maximum use of biobased products and biofuels; and
    (c) Identify products and services on or eligible for addition to 
the Javits-Wagner-O'Day Act Procurement List in order to achieve USDA's 
goal to increase participation in this program.



410.002  Procedures.

    Market research must include obtaining information on the commercial 
quality assurance practices as an alternative for Government inspection 
and testing prior to tender for acceptance.



PART 411_DESCRIBING AGENCY NEEDS--Table of Contents



      Subpart 411.1_Selecting and Developing Requirements Documents

Sec.
411.101  Order of precedence for requirements documents.
411.103  Market acceptance.
411.106  Purchase descriptions for service contracts.
411.170  Brand name or equal.
411.171  Solicitation provisions and contract clauses.

       Subpart 411.2_Using and Maintaining Requirements Documents

411.202  Maintenance of standardization documents.

             Subpart 411.4_Delivery or Performance Schedules

411.404  Contract clauses.

                Subpart 411.6_Priorities and Allocations

411.600  Scope of subpart.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



      Subpart 411.1_Selecting and Developing Requirements Documents



411.101  Order of precedence for requirements documents.

    (a) Office of Management and Budget (OMB) Circular A-119 establishes 
a Federal policy requiring the use of voluntary consensus standards in 
lieu of government-unique standards except where inconsistent with law 
or otherwise impractical.
    (b) The HCA is authorized to submit the determination required by 
OMB Circular A-119 that a voluntary standard is inconsistent with law or 
otherwise impracticable. The HCA must submit the determination to OMB 
through the National Institute of Standards and Technology in accordance 
with the Circular with a copy provided to the SPE.

[70 FR 45, Jan. 3, 2005]



411.103  Market acceptance.

    (a) The head of the contracting activity (HCA) may determine that 
offerors must demonstrate, in accordance with FAR 11.103(a), the market 
acceptability of their items to be offered.
    (b) The contracting officer shall place a copy of this 
determination, signed by the HCA, in the solicitation file.



411.106  Purchase descriptions for service contracts.

    When contract personnel are to be used, the requiring official shall 
record on the requisition his or her determination whether harm to the 
Government might occur should contractor

[[Page 93]]

personnel fail to identify themselves as non-Government officials.

[61 FR 53646, Oct. 15, 1996. Redesignated at 70 FR 45, Jan. 3, 2005]



411.170  Brand name or equal.

    (a) A ``brand name or equal'' purchase description shall include the 
following type of information:
    (1) Identification of the item by generic description.
    (2) Make, model number, catalog designation, or other description, 
and identification of a commercial catalog where it is listed.
    (3) Name of manufacturer, producer, or distributor of the item and 
complete address.
    (4) All salient characteristics of the ``brand name or equal'' 
product or products which have been determined by the requisitioner to 
be essential to the Government's minimum requirements.
    (b) [Reserved]



411.171  Solicitation provisions and contract clauses.

    (a) Contracting officers shall insert the provision at 452.211-70, 
Brand Name or Equal, in solicitations, other than those for 
construction, where ``brand name or equal'' purchase descriptions are 
used.
    (b) Contracting officers shall insert the clause at 452.211-71, 
Equal Products Offered, in solicitations, other than those for 
construction, where the provision at 452.211-70 is included.
    (c) Contracting officers shall insert the clause at 452.211-72, 
Statement of Work/Specifications, when the description (statement of 
work) or specification(s) is included in Section J of the solicitation.
    (d) Contracting officers shall insert the clause at 452.211-73, 
Attachment to Statement of Work/Specifications, when there are 
attachments to the description (statement of work) or specifications.

[63 FR 26995, May 15, 1998]



       Subpart 411.2_Using and Maintaining Requirements Documents



411.202  Maintenance of standardization documents.

    Recommendations for changes to standardization documents are to be 
submitted through the Senior Procurement Executive, who will coordinate 
the submission of these recommendations to the cognizant preparing 
activity.



             Subpart 411.4_Delivery or Performance Schedules



411.404  Contract clauses.

    (a) The contracting officer shall insert the clause at 452.211-74, 
Period of Performance, when it is necessary to specify a period of 
performance, beginning on the date of award, date of receipt of notice 
of award, or a specified date.
    (b) The contracting officer shall insert the clause at 452.211-75, 
Effective Period of the Contract, when it is necessary to specify the 
effective period of the contract.

[63 FR 26995, May 15, 1998]



                Subpart 411.6_Priorities and Allocations



411.600  Scope of subpart.

    The Defense Priorities and Allocation System (DPAS) excludes USDA 
activities (see 15 CFR 700.18(b)). USDA Contracting Officers are not 
authorized to place rated orders under DPAS.



PART 412_ACQUISITION OF COMMERCIAL ITEMS--Table of Contents



    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

[[Page 94]]



   Subpart 412.3_Solicitation Provisions and Contract Clauses for the 
                     Acquisition of Commercial Items



412.302  Tailoring of provisions and clauses for the acquisition of
commercial items.

    The head of the contracting activity is authorized to approve 
waivers in accordance with FAR 12.302(c). The approved waiver may be 
either for an individual contract or for a class of contracts for the 
specific item. The approved waiver and supporting documentation shall be 
incorporated into the contract file.

[61 FR 53646, Oct. 15, 1996]

[[Page 95]]



           SUBCHAPTER C_CONTRACTING METHODS AND CONTRACT TYPES





PART 413_SIMPLIFIED ACQUISITION PROCEDURES--Table of Contents



              Subpart 413.3_Simplified Acquisition Methods

Sec.
413.301  Governmentwide commercial purchase card.
413.306  SF 44, Purchase Order-Invoice-Voucher.
413.307  Forms.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 64 FR 45895, Aug. 23, 1999, unless otherwise noted.



              Subpart 413.3_Simplified Acquisition Methods



413.301  Governmentwide commercial purchase card.

    USDA policy and procedures on use of the Governmentwide commercial 
purchase card are established in Departmental Regulation Series 5000.



413.306  SF 44, Purchase Order-Invoice-Voucher.

    The Standard Form 44 (and the previously prescribed USDA Form AD-
744) is not authorized for use within USDA.



413.307  Forms.

    Form AD-838, Purchase Order, is prescribed for use by USDA in lieu 
of Optional Forms (OFs) 347 and 348 except that use of the OF 347 and OF 
348 is authorized when utilizing the USDA Integrated Acquisition System.

[70 FR 45, Jan. 3, 2005]



PART 414_SEALED BIDDING--Table of Contents



                   Subpart 414.2_Solicitation of Bids

Sec.
414.201  Preparation of invitations for bids.
414.201-6  Solicitation provision.

           Subpart 414.4_Opening of Bids and Award of Contract

414.404  Rejection of bids.
414.404-1  Cancellation of invitations after opening.
414.407  Mistakes in bids.
414.407-3  Other mistakes disclosed before award.
414.407-4  Mistakes after award.
414.409  Information to bidders.
414.409-2  Award of classified contracts.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                   Subpart 414.2_Solicitation of Bids



414.201  Preparation of invitations for bids.



414.201-6  Solicitation provision.

    The contracting officer shall insert the provision 452.214-70, Award 
by Lot, when multiple items are segregated into clearly identifiable 
lots and the contracting officer wants to reserve the right to award by 
item within a lot, if award in that manner would be advantageous to the 
Government.



           Subpart 414.4_Opening of Bids and Award of Contract



414.404  Rejection of bids.



414.404-1  Cancellation of invitations after opening.

    An acquisition official at a level above the contracting officer is 
authorized to make the determinations under FAR 14.404-1(c) and (e)(1).



414.407  Mistakes in bids.



414.407-3  Other mistakes disclosed before award.

    The authority to make the determinations under FAR 14.407-3(a), (b), 
and (d) is delegated, without power of redelegation, to the head of the 
contracting activity. The authority to make the determination under FAR 
14.407-3(c) is delegated to the contracting officer. Each determination 
pursuant to FAR 14.407-3 shall have the concurrence of the Office of the 
General Counsel (OGC).

[[Page 96]]



414.407-4  Mistakes after award.

    If a mistake in bid is disclosed after award, the contracting 
officer shall make a final determination in accordance with the 
provisions of FAR 14.407-4 (b) and (c) and shall coordinate each 
proposed determination with OGC. Such coordination shall, at a minimum, 
consist of the contracting officer providing the proposed determination 
and the case file to OGC for comment.



414.409  Information to bidders.



414.409-2  Award of classified contracts.

    Disposition of classified information shall be in accordance with 
Departmental Regulation and Manual (3400 Series) and in accordance with 
direction issued by the Information Security Staff, Personnel and 
Document Security Division, Office of Procurement and Property 
Management.

[70 FR 45, Jan. 3, 2005]



PART 415_CONTRACTING BY NEGOTIATION--Table of Contents



   Subpart 415.2_Solicitation and Receipt of Proposals and Information

Sec.
415.204  Contract format.
415.207  Handling proposals and information.
415.209  Solicitation provisions and contract clauses.

                     Subpart 415.3_Source Selection

415.303  Responsibilities.
415.305  Proposal evaluation.

                     Subpart 415.4_Contract Pricing

415.404-4  Profit.

Subpart 415.5_Preaward, Award, and Postaward Notifications, Protests and 
                                Mistakes

415.570  Post-award conference.

                   Subpart 415.6_Unsolicited Proposals

415.604  Agency points of contact.
415.606  Agency procedures.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 64 FR 52674, Sept. 30, 1999, unless otherwise noted.



   Subpart 415.2_Solicitation and Receipt of Proposals and Information



415.204  Contract format.

    The Senior Procurement Executive is authorized to exempt contracts 
from the uniform contract format.



415.207  Handling proposals and information.

    (a) Throughout the source selection process, agency personnel and 
non-Government evaluators with access to proposal information shall 
disclose neither the number of offerors nor their identity except as 
authorized by FAR subpart 15.5. (See also FAR 5.403.)
    (b) The contracting officer shall obtain the following written 
agreement from the non-Government evaluator prior to the release of any 
proposal to that evaluator.

         Agreement Governing the Use and Disclosure of Proposals

RFP_____________________________________________________________________
Offeror_________________________________________________________________
    1. To the best of my knowledge and belief, no conflict of interest 
exists that may diminish my capacity to perform an impartial and 
objective review of the offeror's proposal, or may otherwise result in a 
biased opinion or an unfair advantage. If a potential conflict of 
interest arises or if I identify such a conflict, I agree to notify the 
Government promptly concerning the potential conflict. In determining 
whether any potential conflict of interest exists, I agree to review 
whether my or my employer's relationships with other persons or 
entities, including, but not limited to, ownership of stocks, bonds, 
other outstanding financial interests or commitments, employment 
arrangements (past, present, or under consideration), and, to the extent 
known by me, all financial interests and employment arrangements of my 
spouse, minor children, and other members of my immediate household, may 
place me in a position of conflict, real or apparent, with the 
evaluation proceedings.
    2. I agree to use proposal information only for evaluation purposes. 
I understand that any authorized restriction on disclosure placed upon 
the proposal by the prospective contractor or subcontractor or by the 
Government shall be applied to any reproduction or abstracted 
information of the proposal. I agree to use my best effort to safeguard 
such information physically, and not to disclose the contents of, or 
release any information relating to, the proposal(s) to anyone outside 
of the Source Evaluation Board or other

[[Page 97]]

panel assembled for this acquisition, the Contracting Officer, or other 
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)

                           (End of provision)

    (c) The release of a proposal to a non-Government evaluator for 
evaluation does not constitute the release of information for purposes 
of the Freedom of Information Act (5 U.S.C. 552).
    (d) The contracting officer shall attach a cover page bearing the 
following notice: GOVERNMENT NOTICE FOR HANDLING PROPOSALS--This 
proposal shall be used and disclosed for evaluation purposes only. 
Attach a copy of this Government notice to every reproduction or 
abstract of the proposal. Any authorized restrictive notices which the 
submitter places on this proposal shall be strictly complied with. 
Disclosure of this proposal outside the Government for evaluation 
purposes shall be made only to the extent authorized by, and in 
accordance with, FAR 3.104-4, FAR 15.207, and AGAR 415.207.

[64 FR 52674, Sept. 30, 1999; 64 FR 54963, Oct. 8, 1999, as amended at 
70 FR 46, Jan. 3, 2005]



415.209  Solicitation provisions and contract clauses.

    (a) The provision at 452.215-71, Instructions for the Preparation of 
Technical and Business Proposals, may be used when offerors will be 
required to submit technical and business proposals. Contracting 
officers should tailor the clause to reflect the degree of information 
required for the specific acquisition.
    (b) The contracting officer shall insert the provision at 452.215-
72, Amendments to Proposals, in solicitations which require the 
submittal of lengthy, complex technical proposals.



                     Subpart 415.3_Source Selection



415.303  Responsibilities.

    The head of the contracting activity (HCA) is authorized to appoint 
an individual other than the contracting officer as the source selection 
authority.



415.305  Proposal evaluation.

    HCAs are responsible for establishing procedures regarding the 
release of cost information to the members of the technical evaluation 
team.



                     Subpart 415.4_Contract Pricing



415.404-4  Profit.

    (a)(1) USDA will use a structured approach to determine the profit 
or fee prenegotiation objective in acquisition actions when price 
negotiation is based on cost analysis.
    (2) The following types of acquisitions are exempt from the 
requirements of the structured approach, but the contracting officer 
shall comply with FAR 15.404-4(d) when analyzing profit for these 
contracts or actions:
    (i) Architect-engineer contracts;
    (ii) Construction contracts;
    (iii) Contracts primarily requiring delivery of material supplied by 
subcontractors;
    (iv) Termination settlements; and
    (v) Cost-plus-award-fee contracts;
    (b) Unless otherwise restricted by contracting activity procedures, 
the Contracting Officer may use another Federal agency's structured 
approach if that approach has been formalized and is maintained as part 
of that Agency's acquisition regulations (i.e., included in that 
Agency's assigned chapter of title 48 of the Code of Federal 
Regulations).
    (c) The HCA is responsible for establishing procedures to ensure 
compliance with this subpart.



Subpart 415.5_Preaward, Award, and Postaward Notifications, Protests and 
                                Mistakes



415.570  Post-award conference.

    If a postaward conference is necessary, the contracting officer 
shall insert clause 452.215-73, Post-Award Conference.

[[Page 98]]



                   Subpart 415.6_Unsolicited Proposals



415.604  Agency points of contact.

    HCAs are responsible for establishing procedures to ensure 
compliance with the requirements of FAR 15.604.



415.606  Agency procedures.

    HCAs are responsible for establishing the procedures for control of 
unsolicited proposals required by FAR 15.606(a) and for identifying the 
contact points as required by FAR 15.606(b).



PART 416_TYPES OF CONTRACTS--Table of Contents



Sec.
416.000  Scope of part.

                   Subpart 416.2_Fixed-Price Contracts

416.203  Fixed-price contracts with economic price adjustment.
416.203-4  Contract clauses.

                    Subpart 416.4_Incentive Contracts

416.405  Cost-reimbursement incentive contracts.
416.405-2  Cost-plus-award-fee contracts.
416.406  Contract clauses.
416.470  Solicitation provision.

               Subpart 416.5_Indefinite-Delivery Contracts

416.505  Ordering.
416.506  Solicitation provision and contract clauses.

   Subpart 416.6_Time-and-Materials, Labor-Hour, and Letter Contracts

416.603  Letter contracts.
416.603-2  Application.
416.603-4  Contract clauses.
416.670  Contract clauses.

                        Subpart 416.7_Agreements

416.702  Basic agreements.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



416.000  Scope of part.

    Heads of contracting activities (HCA's) are authorized to establish 
written procedures allowing the use of any contract type described in 
FAR part 16 for acquisitions made under simplified acquisition 
procedures in FAR part 13.



                   Subpart 416.2_Fixed-Price Contracts



416.203  Fixed-price contracts with economic price adjustment.



416.203-4  Contract clauses.

    An economic price adjustment clause based on cost indexes of labor 
or material may be used under the conditions listed in FAR 16.203-4(d) 
after approval by the HCA and consultation with the Office of the 
General Counsel.



                    Subpart 416.4_Incentive Contracts



416.405  Cost-reimbursement incentive contracts.



416.405-2  Cost-plus-award-fee contracts.

    The HCA may designate an acquisition official other than the 
contracting officer as the fee determination official (FDO) to make the 
final determination of the award fee. The designated official must have 
warranted contracting authority at the same level as the contracting 
officer or higher, and shall not have participated in preparing the 
contractor performance evaluation. If the HCA does not designate an FDO, 
the chief of the contracting office shall act as the FDO.

[61 FR 53646, Oct. 15, 1996. Redesignated at 63 FR 26995, May 15, 1998.]



416.406  Contract clauses.

    The contracting officer shall insert a clause substantially the same 
as the clause at 452.216-70, Award Fee, in solicitations and contracts 
which contemplate the award of cost-plus-award-fee contracts.

[61 FR 53646, Oct. 15, 1996. Redesignated at 63 FR 26995, May 15, 1998.]



416.470  Solicitation provision.

    The contracting officer shall insert the provision at 452.216-71, 
Base Fee and Award Fee Proposal, in solicitations which contemplate the 
award of a cost-plus-award-fee contract.

[[Page 99]]



               Subpart 416.5_Indefinite-Delivery Contracts



416.505  Ordering.

    (a) The Chief, Procurement Policy Division, Office of Procurement 
and Property Management, has been designated as the Departmental Task 
Order Ombudsman.
    (b) Each HCA shall designate a task order ombudsman for the 
contracting activity. The HCA shall forward a copy of the designation 
memorandum to the Departmental Task Order Ombudsman. Contracting 
activity ombudsmen shall review and resolve complaints from contractors 
concerning task or delivery orders placed by the contracting activity.
    (c) Any contractor who is not satisfied with the resolution of a 
complaint by a contracting activity ombudsman may request the 
Departmental Task Order Ombudsman to review the complaint.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 46, Jan. 3, 2005]



416.506  Solicitation provision and contract clauses.

    (a) The contracting officer shall insert a provision substantially 
the same as the provision at 452.216-72, Evaluation Quantities-
Indefinite-Delivery Contract, in solicitations which contemplate the 
award of indefinite-quantity or requirements contracts to establish the 
basis on which offers will be evaluated.
    (b) The contracting officer shall insert the clause at 452.216-73, 
Minimum and Maximum Contract Amounts, in indefinite-delivery, 
indefinite-quantity contracts when the clause at FAR 52.216-18 is used.



   Subpart 416.6_Time-and-Materials, Labor-Hour, and Letter Contracts



416.603  Letter contracts.



416.603-2  Application.

    The HCA is authorized to extend the period for defining a letter 
contract required by FAR 16.603-2(c) in extreme cases where it is 
determined in writing that such action is in the best interest of the 
Government.



416.603-4  Contract clauses.

    The contracting officer shall insert the clause at 452.216-75, 
Letter Contract, in a definitive contract superseding a letter contract.



416.670  Contract clauses.

    The contracting officer shall limit the Government's obligation 
under a time-and-materials or labor-hour contract by inserting the 
clause at 452.216-74, Ceiling Price.



                        Subpart 416.7_Agreements



416.702  Basic agreements.

    Promptly after execution by the Government, the HCA shall furnish to 
the Senior Procurement Executive a copy of each basic agreement 
negotiated with contractors in accordance with FAR 16.702.



PART 417_SPECIAL CONTRACTING METHODS--Table of Contents



    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).



                          Subpart 417.2_Options



417.204  Contracts.

    The head of the contracting activity is authorized to approve 
contracts which exceed the 5 year limitation in FAR 17.204(e).

[61 FR 53646, Oct. 15, 1996]

                           PART 418 [RESERVED]

[[Page 100]]



                   SUBCHAPTER D_SOCIOECONOMIC PROGRAMS





PART 419_SMALL BUSINESS PROGRAMS--Table of Contents



                         Subpart 419.2_Policies

Sec.
419.201  General policy.
419.201-70  Office of Small and Disadvantaged Business Utilization 
          (OSDBU).
419.201-71  Small business coordinators.
419.201-73  Reports.

               Subpart 419.5_Set-Asides for Small Business

419.508  Solicitation provisions and contract clauses.

     Subpart 419.6_Certificates of Competency and Determinations of 
                             Responsibility

419.602  Procedures.
419.602-1  Referral.
419.602-3  Resolving differences between the agency and the Small 
          Business Administration.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                         Subpart 419.2_Policies

    Source: 70 FR 46, Jan. 3, 2005, unless otherwise noted.



419.201  General policy.

    It is the policy of USDA to provide maximum practicable contracting 
and subcontracting opportunities to small business (SB), small 
disadvantaged business (SDB), HUBZone small business, women-owned 
business (WOB), veteran-owned small business (VOSB), and service-
disabled veteran-owned small business (SDVOSB) concerns.



419.201-70  Office of Small and Disadvantaged Business Utilization (OSDBU).

    The Office of Small and Disadvantaged Business Utilization (OSDBU) 
develops rules, policy, procedures and guidelines for the effective 
administration of USDA's small business program that includes all 
categories named under 419.201.



419.201-71  Small business coordinators.

    The head of the contracting activity (HCA) or a representative of 
the HCA shall designate in writing a small business coordinator in each 
contracting office. Supervisors of small business coordinators are 
encouraged to provide sufficient time for the coordinators to carry out 
their small business program duties. Coordinators' duties shall include, 
but not be limited to, the following:
    (a) Reviewing each proposed acquisition expected to exceed the 
simplified acquisition threshold prior to its solicitation. The 
coordinator shall:
    (1) Recommend section 8(a), HUBZone, or SDVOSB action and identify 
potential contractors, or
    (2) Identify available SDB, WOB, and VOSB to be solicited by 
competitive procedures. Coordinators shall document the contract file 
with recommendations made and actions taken.
    (b) Participating in goal-setting procedures and planning activities 
and establishing aggressive SDB, WOB, and SDVOSB goals based on the 
annual review of advance acquisition plans.
    (c) Participating in the review of those contracts which require the 
successful offeror to submit written plans for the utilization of small 
businesses as subcontractors to include all preference program areas in 
419.201.
    (d) Ensuring that purchases exceeding $2,500 and not exceeding the 
simplified acquisition threshold are reserved exclusively for small 
businesses, including all preference program areas named in 419.201. 
This policy shall be implemented unless the contracting officer is 
unable to obtain offers from two or more small business concerns that 
are competitive with market prices and in terms of quality and delivery 
of the goods or services being purchased.
    (e) Maintaining comprehensive source listings of small businesses.

[[Page 101]]

    (f) Upon written request, providing small businesses (in the 
preference program areas named in 419.201) the bidders' mailing lists of 
individuals receiving solicitations which will contain the 
subcontracting clause entitled ``Utilization of Small Business 
Concerns'' (FAR 52.219-8). These lists may be limited to those supplies 
or services of major interest to the requesting firms.
    (g) Developing a program of contacts with local and small (to 
include all preference program areas named in 419.201) trade, business, 
and professional associations and organizations and Indian tribal 
councils to apprise them of USDA's program needs and recurring contract 
requirements.
    (h) Periodically meeting with program managers to discuss 
requirements of the small business preference program, to explore the 
feasibility of breaking large complex requirements into smaller lots 
suitable for participation by small firms, and to encourage program 
managers to meet with these firms so that their capabilities can be 
demonstrated.
    (i) Establishing internal operating procedures which implement the 
requirements of the regulations as set forth in this part 419.
    (j) Compiling data and preparing all reports pertaining to the small 
business program activities, and ensuring that these reports are 
accurate, complete and up-to-date.
    (k) Assisting and counseling small business firms.
    (l) Reviewing proposed large contract requirements that may be 
bundled to determine the potential for breaking out components suitable 
for purchase from small business firms.
    (m) Ensuring that the SBA Resident Procurement Center Representative 
(PCR) is provided an opportunity and reasonable time to review any 
solicitation that meets the dollar threshold for small business 
(including all preference program areas named in 419.201) subcontracting 
plans.



419.201-73  Reports.

    The Director, OSDBU, shall be responsible for submitting reports 
concerning USDA's progress and achievements in the procurement 
preference program.



               Subpart 419.5_Set-Asides for Small Business



419.508  Solicitation provisions and contract clauses.

    The contracting officer shall insert the provision at 452.219-70, 
Size Standard and NAICS Code Information, in solicitations that are set 
aside for small businesses.

[61 FR 53646, Oct. 15, 1996, as amended at 66 FR 49317, Sept. 27, 2001]



     Subpart 419.6_Certificates of Competency and Determinations of 
                             Responsibility



419.602  Procedures.



419.602-1  Referral.

    Contracting officers shall refer determinations of non-
responsibility regarding small businesses directly to the SBA Regional 
Office servicing the location where the contractor's office (home) is 
located.



419.602-3  Resolving differences between the agency and the Small
Business Administration.

    The HCA is authorized to appeal the issuance of a COC to SBA 
Headquarters as provided by FAR 19.602-3(a).

[63 FR 26995, May 15, 1998]

                        PARTS 420	421 [RESERVED]



PART 422_APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
--Table of Contents



                   Subpart 422.1_Basic Labor Policies

Sec.
422.103  Overtime.
422.103-4  Approvals.

       Subpart 422.3_Contract Work Hours and Safety Standards Act

422.302  Liquidated damages and overtime pay.

[[Page 102]]

   Subpart 422.4_Labor Standards for Contracts Involving Construction

422.404  Davis-Bacon Act wage determinations.
422.404-6  Modifications of wage determinations.
422.406  Administration and enforcement.
422.406-8  Investigations.

             Subpart 422.6_Walsh-Healey Public Contracts Act

422.604  Exemptions.
422.604-2  Regulatory exemptions.
422.608  [Reserved]

               Subpart 422.8_Equal Employment Opportunity

422.803  Responsibilities.
422.804  Affirmative action programs.
422.804-2  Construction.
422.807  Exemptions.

 Subpart 422.13_Special Disabled Veterans, Veterans of the Vietnam Era, 
                       and Other Eligible Veterans

422.1305  Waivers.
422.1308  Complaint procedures.

         Subpart 422.14_Employment of Workers With Disabilities

422.1403  Waivers.
422.1406  Complaint procedures.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                   Subpart 422.1_Basic Labor Policies



422.103  Overtime.



422.103-4  Approvals.

    Requests for the use of overtime shall be approved by an acquisition 
official at a level above the contracting officer in accordance with the 
procedures in FAR 22.103-4 (a) and (b).



       Subpart 422.3_Contract Work Hours and Safety Standards Act



422.302  Liquidated damages and overtime pay.

    Heads of contracting activities (HCA's) are authorized to review 
determinations of liquidated damages due under section 104(c) of the 
Contract Work Hours and Safety Standards Act, and to take remedial 
action, if appropriate, in accordance with FAR 22.302(c). Contractors or 
subcontractors may request review of administrative determinations of 
liquidated damages by written notice to the contracting officer. The 
contracting officer shall promptly forward appeals of liquidated damages 
determinations to the HCA.



   Subpart 422.4_Labor Standards for Contracts Involving Construction



422.404  Davis-Bacon Act wage determinations.



422.404-6  Modifications of wage determinations.

    HCA's are authorized to request extension of the 90 day period for 
award after bid opening as provided in FAR 22.404-6(b)(6).



422.406  Administration and enforcement.



422.406.8  Investigations.

    Reports of violations shall be forwarded to the HCA, who shall 
process such reports in accordance with FAR 22.406-8(d).



             Subpart 422.6_Walsh-Healey Public Contracts Act



422.604  Exemptions.



422.604-2  Regulatory exemptions.

    The Assistant Secretary for Administration can request the Secretary 
of Labor to exempt contracts from the Walsh-Healey Public Contracts Act 
pursuant to FAR 22.604-2(b). A written finding justifying the request 
for exemption shall be prepared for the Assistant Secretary's signature 
and submitted by the HCA to the Senior Procurement Executive (SPE) for 
referral to the Assistant Secretary.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 46, Jan. 3, 2005]

[[Page 103]]



422.608  [Reserved]



               Subpart 422.8_Equal Employment Opportunity



422.803  Responsibilities.

    The contracting office shall submit questions involving the 
applicability of Executive Order 11246 and FAR subpart 22.8 through the 
HCA to the SPE for resolution.



422.804  Affirmative action programs.



422.804-2  Construction.

    The HCA shall ensure that each contracting office, awarding 
nonexempt construction contracts, maintains a current listing of covered 
geographical areas subject to affirmative action requirements specifying 
goals for minorities and women in covered construction trades.



422.807  Exemptions.

    (a) The Assistant Secretary for Administration is authorized to make 
the determination in FAR 22.807(a)(1) that a contract is essential to 
the national security.
    (b) The contracting officer shall submit requests for exemptions 
under FAR 22.807(a)(1), (a)(2), and (b)(5) through the HCA to the SPE 
for determination by the Assistant Secretary of Administration or 
referral to the Deputy Assistant Secretary for Federal Contract 
Compliance Programs, Department of Labor, as appropriate.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 46, Jan. 3, 2005]



 Subpart 422.13_Special Disabled Veterans, Veterans of the Vietnam Era, 
                       and Other Eligible Veterans

    Source: 70 FR 46, Jan. 3, 2005, unless otherwise noted.



422.1305  Waivers.

    (a) The Assistant Secretary for Administration is authorized to make 
the waiver determination in FAR 22.1305(b) that a contract is essential 
to the national security.
    (b) The contracting officer shall submit requests for exemptions 
under FAR 22.1305(a) and (b) through the HCA to the SPE for 
determination by the Assistant Secretary for Administration or referral 
to the Deputy Assistant Secretary for Federal Contract Compliance 
Programs, Department of Labor as appropriate.



422.1308  Complaint procedures.

    The contracting officer shall forward complaints received about the 
administration of the Vietnam Era Veterans Readjustment Assistance Act 
directly to the Department of Labor as prescribed in FAR 22.1308.



         Subpart 422.14_Employment of Workers With Disabilities



422.1403  Waivers.

    (a) The Assistant Secretary for Administration is authorized to make 
the waiver determinations under FAR 22.1403(a) and (b) with the 
concurrence of the Deputy Assistant Secretary for Federal Contract 
Compliance Programs, Department of Labor.
    (b) The contracting officer shall submit requests for waivers 
through the HCA to the SPE for determination by the Assistant Secretary 
for Administration.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 46, Jan. 3, 2005]



422.1406  Complaint procedures.

    The contracting officer shall forward complaints received about the 
administration of Section 503 of the Rehabilitation Act of 1973, as 
amended, directly to the OFCCP as prescribed in FAR 22.1406.



PART 423_ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE
--Table of Contents



Subpart 423.1 [Reserved]

     Subpart 423.2_Energy and Water Efficiency and Renewable Energy

Sec.
423.202  Policy.

[[Page 104]]

                Subpart 423.4_Use of Recovered Materials

423.400  Scope of subpart.
423.402  [Reserved]
423.403  Policy.
423.404  Agency affirmative procurement programs.
423.405  Procedures.

                    Subpart 423.5_Drug-Free Workplace

423.506  Suspension of payments, termination of contract, and debarment 
          and suspension actions.

              Subpart 423.6_Notice of Radioactive Material

423.601  Requirements.

 Subpart 423.7_Contracting for Environmentally Preferable Products and 
                                Services

423.703  Policy.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 70 FR 47, Jan. 3, 2005, unless otherwise noted.

Subpart 423.1 [Reserved]



     Subpart 423.2_Energy and Water Efficiency and Renewable Energy



423.202  Policy.

    Information on Energy Star, energy efficient, water efficient, and 
low standby products covered by this policy is available via the 
Internet at http://www.eere.energy.gov/femp/technologies/eeproducts.cfm.



                Subpart 423.4_Use of Recovered Materials



423.400  Scope of subpart.

    This subpart implements and supplements FAR policies and procedures 
for acquiring products and services when preference is given to offers 
of products containing recovered materials. This subpart further 
supplements FAR subpart 23.4 by providing guidance for affirmative 
procurement programs in accordance with Executive Order 13101 and 42 
U.S.C. 6962.



423.402  [Reserved]



423.403  Policy.

    It is the policy of USDA to acquire and use Environmental Protection 
Agency (EPA) designated recycled content products.



423.404  Agency affirmative procurement programs.

    The USDA affirmative procurement program (APP) policy applicable to 
all USDA agencies and staff offices is hereby established. The 
components of this APP include:
    (a) Recovered Materials Preference Program. In accord with the 
requirements of Section 402(c) of Executive Order 13101, Greening the 
Government Through Recycling, Waste Prevention, and Federal Acquisition, 
USDA agencies will include, in all applicable solicitations and 
contracts, a preference for products and services which meet or exceed 
the EPA purchasing guidelines as contained in the EPA product Recovered 
Materials Advisory Notices (RMANs). Agencies may choose an evaluation 
factor preference, or other method of indicating preference in accord 
with their agency needs. Agencies will, as appropriate, eliminate virgin 
material requirements in contract specifications and replace them with a 
statement of preference for recycled materials.
    (b) Promotion program. USDA agencies will actively promote a 
preference for recovered materials, environmentally preferable products, 
and biobased products in contacts with vendors, in written materials, 
and other appropriate opportunities.
    (c) Reasonable estimation of recovered materials used in the 
performance of contracts. USDA agencies annually will provide in writing 
to the USDA Senior Procurement Executive, in response to a call for data 
for the Resource Conservation and Recovery report, reasonable estimates, 
certification, and verification of recovered material used in the 
performance of contracts.
    (d) Annual review and monitoring of effectiveness of the program. 
USDA agencies will provide an annual assessment of the effectiveness of 
their affirmative

[[Page 105]]

procurement program actions in increasing the purchase and use of EPA 
designated products.
    (e) Purchase of EPA designated products. USDA agencies will require 
that 100% of purchases of EPA-designated products contain recovered 
material, unless the item cannot be acquired--
    (1) Competitively within a reasonable time frame;
    (2) Meeting appropriate performance standards; or
    (3) At a reasonable price.
    (f) The 100% purchase requirement of paragraph (e) of this section 
applies to all USDA agency purchases, including those at or below the 
micro-purchase threshold.



423.405  Procedures.

    (a) The threshold of purchase for EPA designated items is $10,000 
per year at the USDA departmental, not individual agency, level. 
Therefore, the APP requirements above, including the 100% purchase 
requirement, apply at the individual agency and staff office level.
    (b) Contracting officers should refer to EPA's list of designated 
products and products identified as recycled content when purchasing 
supplies or services. Information on EPA designated products is 
available at: www.epa.gov/cpg/products.htm.
    (c) All agencies and USDA Contracting Officers must take necessary 
actions to carry out the provisions of the USDA APP policy described in 
this subpart.



                    Subpart 423.5_Drug-Free Workplace



423.506  Suspension of payments, termination of contract, and debarment
and suspension actions.

    (a) The contracting officer may recommend waiver of the 
determination to suspend payments, to terminate a contract, or to debar 
or to suspend a contractor.
    (b) The recommendation shall be submitted through the HCA to the SPE 
and shall include a full description of the disruption of USDA 
operations should the determination not be waived.
    (c) The SPE will submit the request for a waiver to the Secretary 
with a recommendation for action.



              Subpart 423.6_Notice of Radioactive Material



423.601  Requirements.

    The HCA shall establish a system of instructions to identify the 
installation/facility radiation protection officer.



 Subpart 423.7_Contracting for Environmentally Preferable Products and 
                                Services



423.703  Policy.

    (a) USDA's Affirmative Procurement Program promotes energy-
efficiency, water conservation, and the acquisition of environmentally 
preferable products and services. In its acquisitions, USDA will support 
federal ``green purchasing'' principles in the acquisition of products 
and services that are environmentally preferable or that are biobased 
content products and services.
    (b) USDA agencies will actively promote this preference for 
environmentally preferable products and biobased products in contacts 
with vendors, in written materials, and other appropriate opportunities.



PART 424_PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION
--Table of Contents



             Subpart 424.1_Protection of Individual Privacy

Sec.
424.103  Procedures.
424.104  Contract clauses.

                Subpart 424.2_Freedom of Information Act

424.203  Policy.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.

[[Page 106]]



             Subpart 424.1_Protection of Individual Privacy



424.103  Procedures.

    USDA regulations implementing the Privacy Act are found in 7 CFR, 
subtitle A, part 1, subpart G. Contracting officers shall follow these 
regulations when responding to requests for information or awarding 
contracts that will involve the design, development, or operation of a 
system of records on individuals to accomplish agency functions.



424.104  Contract clauses.

    When applicable, the contracting officer shall insert the clause at 
452.224-70, Confidentiality of Information, in contracts involving 
confidential information.



                Subpart 424.2_Freedom of Information Act



424.203  Policy.

    USDA regulations implementing the Freedom of Information Act are 
found in 7 CFR, Subtitle A, Part 1, Subpart A. Contracting officers 
shall follow these regulations when responding to requests for 
information.

[70 FR 48, Jan. 3, 2005]



PART 425_FOREIGN ACQUISITION--Table of Contents



                 Subpart 425.1_Buy American Act_Supplies

Sec.
425.102  [Reserved]
425.103  Exceptions.
425.104  Nonavailable articles.
425.105  Determining reasonableness of cost.
425.108  [Reserved]

          Subpart 425.2_Buy American Act_Construction Materials

425.202  Exceptions.
425.203-425.204  [Reserved]

Subparts 425.3-425.4 [Reserved]

                      Subpart 425.6_Trade Sanctions

425.602  Exceptions.

Subpart 425.9 [Reserved]

        Subpart 425.10_Additional Foreign Acquisition Regulations

425.1001  Waiver of right to examination of records.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                 Subpart 425.1_Buy American Act_Supplies

    Source: 70 FR 48, Jan. 3, 2005, unless otherwise noted.



425.102  [Reserved]



425.103  Exceptions.

    (a) The Senior Procurement Executive (SPE) shall make the 
determination prescribed in FAR 25.103(a).
    (b) Copies of determinations of nonavailability in accordance with 
FAR 25.103(b)(2) or 25.202(a)(2), for articles, material or supplies not 
listed in FAR 25.104, may be submitted to the SPE for submission to the 
Civilian Agency Acquisition Council (CAAC).



425.104  Nonavailable articles.

    Information required by FAR 25.104(b) shall be submitted to the SPE 
for submission to the CAAC.



425.105  Determining reasonableness of cost.

    The SPE may make the determination prescribed in FAR 25.105(a). 
Requests for a determination by the SPE shall be submitted by the HCA, 
in writing, and shall provide a detailed justification supporting why 
evaluation factors higher than those listed in FAR 25.102(b)(1) and (2) 
should be applied to determine whether the offered price of a domestic 
end product is unreasonable.



425.108  [Reserved]



          Subpart 425.2_Buy American Act_Construction Materials



425.202  Exceptions.

    (a) The SPE shall make the determination prescribed in FAR 
25.202(a)(1).
    (b) If a contracting officer proposes that the use of a particular 
domestic

[[Page 107]]

construction material should be waived for a contract on the grounds 
that its use would be impracticable, the contracting officer shall 
submit a proposed determination with supporting information through the 
HCA to the SPE for approval or disapproval.

[63 FR 26995, May 15, 1998, as amended at 70 FR 48, Jan. 3, 2005]



425.203-425.204  [Reserved]

Subparts 425.3-425.4 [Reserved]



                      Subpart 425.6_Trade Sanctions



425.602  Exceptions.

    The Secretary, without power of redelegation, has the authority to 
make the necessary determination(s) and authorize award(s) of 
contract(s) in accordance with FAR 25.602(b).

[70 FR 48, Jan. 3, 2005]

Subpart 425.9 [Reserved]



        Subpart 425.10_Additional Foreign Acquisition Regulations



425.1001  Waiver of right to examination of records.

    The SPE shall make the determination under FAR 25.1001(a)(2)(iii).

[70 FR 48, Jan. 3, 2005]



PART 426_OTHER SOCIOECONOMIC PROGRAMS--Table of Contents



Subpart 426.70 [Reserved]

[[Page 108]]



              SUBCHAPTER E_GENERAL CONTRACTING REQUIREMENTS





PART 427_PATENTS, DATA, AND COPYRIGHTS--Table of Contents



    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).



                          Subpart 427.1_General



427.104  General guidance.

    As used in FAR part 27, the agency head or agency head designee is 
the Senior Procurement Executive, except under FAR 27.306(a) and (b). 
Under FAR 27.306(a) and (b), the agency head is the Secretary without 
power of redelegation.

[61 FR 53646, Oct. 15, 1996]



PART 428_BONDS AND INSURANCE--Table of Contents



           Subpart 428.1_Bonds and Other Financial Protections

Sec.
428.101  Bid guarantees.
428.101-1  Policy on use.
428.106  Administration.
428.106-6  Furnishing information.

           Subpart 428.2_Sureties and Other Security for Bonds

428.203  Acceptability of individual sureties.
428.204  Alternatives in lieu of corporate or individual sureties.
428.204-2  Certified or cashier's checks, bank drafts, money orders, or 
          currency.

                         Subpart 428.3_Insurance

428.307  Insurance under cost-reimbursement contracts.
428.307-1  Group insurance plans.
428.310  Contract clause for work on a Government installation.
428.370  Government-owned vehicles operated in foreign countries.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



           Subpart 428.1_Bonds and Other Financial Protections



428.101  Bid guarantees.



428.101-1  Policy on use.

    The Senior Procurement Executive may authorize class waivers of the 
requirement to obtain bid guarantees.



428.106  Administration.



428.106-6  Furnishing information.

    Heads of contracting activities (HCA's) or their designees may 
furnish certified copies of bonds and the contracts for which they were 
given as provided by FAR 28.106-6(c). Requesters may be required to pay 
costs of certification and copying established by the Departmental Fee 
Schedule for records requests (7 CFR part 1, subpart A, appendix A).



           Subpart 428.2_Sureties and Other Security for Bonds



428.203  Acceptability of individual sureties.

    Evidence of possible criminal or fraudulent activities by an 
individual surety shall be reported to the Office of Inspector General 
in accordance with Departmental Regulations (1700 series).



428.204  Alternatives in lieu of corporate or individual sureties.

    HCA's shall establish procedures to ensure protection and conveyance 
of deposited securities of the types listed in FAR 28.204-1 through 
28.204-3.



428.204-2  Certified or cashier's checks, bank drafts, money orders,
or currency.

    The contracting officer shall insert the provision at 452.228-70, 
Alternative Forms of Security, in a solicitation if a bond is required.

[[Page 109]]



                         Subpart 428.3_Insurance



428.307  Insurance under cost-reimbursement contracts.



428.307-1  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 
shall use all sources of information available, such as audits, industry 
practice, or other sources of information, to determine whether 
acceptance of the plan submitted would be in the Government's best 
interest.



428.310  Contract clause for work on a Government installation.

    The contracting officer shall insert the clause at 452.228-71, 
Insurance Coverage, in solicitations and contracts which include the 
clause at FAR 52.228-5, Insurance--Work on a Government Installation. If 
property liability insurance is required, the contracting officer shall 
use the clause with its Alternate I.



428.370  Government-owned vehicles operated in foreign countries.

    USDA is authorized to obtain insurance to cover liability incurred 
by any of its employees while acting within the scope of their 
employment and operating a Government-owned vehicle in a foreign 
country. (7 U.S.C. 2262).

                           PART 429 [RESERVED]



PART 430_COST ACCOUNTING STANDARDS ADMINISTRATION--Table of Contents



Sec.
430.070  Definitions.

                 Subpart 430.2_CAS Program Requirements

430.201  Contract requirements.
430.201-5  Waiver.
430.202  Disclosure requirements.
430.202-2  Impracticality of submission.
430.202-8  Subcontractor Disclosure Statements.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



430.070  Definitions.

    ACO, as used in this part and in FAR part 30, means administrative 
contracting officer as described in FAR part 42.



                 Subpart 430.2_CAS Program Requirements



430.201  Contract requirements.



430.201-5  Waiver.

    The Senior Procurement Executive (SPE), without the authority to 
further redelegate, is authorized to request the Cost Accounting 
Standards Board to waive the application of the Cost Accounting 
Standards (CAS). Contracting officers shall prepare waiver requests in 
accordance with 48 CFR chapter 99 (Appendix B, FAR loose-leaf edition), 
subsection 9903.201-5, and submit them to the SPE through the head of 
the contracting activity (HCA).



430.202  Disclosure requirements.



430.202-2  Impracticality of submission.

    (a) The Secretary, without the power to delegate, is authorized to 
determine, in accordance with FAR part 99 (Appendix B), subsection 
9903.202-2, that the Disclosure Statement is impractical to secure and 
to authorize award without obtaining the Disclosure Statement.
    (b) The request for this determination is to be prepared in 
accordance with FAR part 99 (Appendix B), subsection 9903.202-2 and is 
to contain the proposed report to the CASB.
    (c) Requests for a determination under paragraph (a) of this section 
shall be prepared by the contracting officer and submitted through the 
HCA to the SPE for concurrence and submittal to the Secretary.



430.202-8  Subcontractor Disclosure Statements.

    (a) The Secretary, without the power to redelegate, is authorized to 
determine that the Disclosure Statement for a subcontractor is 
impractical to secure and to authorize award without obtaining the 
Disclosure Statement.
    (b) Requests for this determination are to be prepared and forwarded 
as described in 430.202-2.

[[Page 110]]



PART 431_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents



    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).



                       Subpart 431.1_Applicability



431.101  Objectives.

    (a) The SPE is designated as the official authorized to give advance 
approval of an individual deviation concerning cost principles.
    (b) The SPE is designated as the official authorized to give advance 
approval of a class deviation concerning cost principles after 
coordination with the Civilian Agency Acquisition Council.
    (c) Requests for advance approval of class deviations concerning 
cost principles must be submitted to the SPE through the HCA.

[61 FR 53646, Oct. 15, 1996]



PART 432_CONTRACT FINANCING--Table of Contents



Sec.
432.001  Definitions.
432.003  Simplified acquisition procedures financing.
432.006  Reduction or suspension of contract payments upon finding of 
          fraud.
432.006-2  Definitions.
432.006-3  Responsibilities.
432.006-4  Procedures.
432.006-5  Reporting.
432.007  Contract financing payments.

          Subpart 432.1_Non-Commercial Item Purchase Financing

432.102  Description of contract financing methods.
432.103  Progress payments under construction contracts.
432.111  Contract clauses for non-commercial purchases.
432.113  Customary contract financing.
432.114  Unusual contract financing.

            Subpart 432.2_Commercial Item Purchase Financing

432.202  General.
432.202-1  Policy.
432.202-4  Security for Government financing.
432.206  Solicitation provisions and contract clauses.
432.207  Administration and payment of commercial financing payments.

          Subpart 432.3_Loan Guarantees for Defense Production

432.301  Definitions.

         Subpart 432.4_Advance Payments for Non-Commercial Items

432.402  General.
432.406  Letters of credit.
432.407  Interest.
432.412  Contract clause.

                      Subpart 432.6_Contract Debts

432.601  Definition.
432.616  Compromise actions.

                     Subpart 432.7_Contract Funding

432.703  Contract funding requirements.
432.703-3  Contracts crossing fiscal years.
432.770  USDA specific funding limitations.

                   Subpart 432.8_Assignment of Claims

432.802  Conditions.
432.803  Policies.
432.805  Procedure.
432.806  Contract clauses.

                      Subpart 432.9_Prompt Payment

432.904  Determining payment due dates.

                Subpart 432.10_Performance-Based Payments

432.1007  Administration and payment of performance-based payments.

    Authority: 40 U.S.C. 121, 41 U.S.C. 421.

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



432.001  Definitions.

    The agency contract finance office is the office, other than the 
office of the requisitioner, providing funding or performing funding 
record keeping for the contract action.
    Responsible fiscal authority is that officer in the agency contract 
finance office with the responsibility to ensure that adequate funds are 
available and usable for the intended purpose.



432.003  Simplified acquisition procedures financing.

    (a) The chief of the contracting office may approve contract 
financing on a contract to be entered under the simplified acquisition 
procedures. Class approvals may not be made.

[[Page 111]]

    (b) The signed approval must contain the supporting rationale for 
the action and an estimate of the cost and/or risk to the government.



432.006  Reduction or suspension of contract payments upon finding of fraud.



432.006-2  Definitions.

    (a) The USDA remedy coordination official (RCO) is the Assistant 
Secretary for Administration.
    (b) For the purposes of this part, head of the agency means, 
exclusively, the Secretary or the Deputy Secretary.



432.006-3  Responsibilities.

    When a contracting officer suspects that a request for advance, 
partial, or progress payment is based on fraud, the request shall be 
referred directly to the Office of Inspector General (OIG) in accordance 
with their instructions. A copy of the referral shall be submitted 
through the head of the contracting activity (HCA) to the Senior 
Procurement Executive (SPE).



432.006-4  Procedures.

    (a) Immediately upon submittal of the referral described in 432.006-
3, the HCA and the contracting officer shall confer with the SPE and 
representatives of the OIG to discuss the potential for reduction or 
suspension of further payments based on the considerations listed in FAR 
32.006-4(d) (1) through (5).
    (b) The SPE will determine whether the contractor has contracts with 
other Departments or contracting activities and will involve them, as 
necessary, in the decision making process.
    (c) The OIG will determine the need for and the extent of an 
investigation.
    (d) Immediately upon completion of the OIG investigation (or, if 
deemed necessary by the OIG and the SPE, before completion of the 
investigation) the SPE, in coordination with the HCA, the contracting 
officer, and the OIG, shall make a report on the action to the RCO.
    (e) Upon receipt of the report, the RCO will submit a recommendation 
to the Secretary.
    (f) Upon receipt of the RCO's report the Secretary will:
    (1) Notify the contractor in writing, allowing 30 calendar days 
after receipt of the notice, that the contractor may submit in writing 
information and arguments in opposition to the recommendation; and
    (2) Consider the RCO's recommendation, the SPE's report, the 
response of the contractor, and any other relevant information in order 
to make an appropriate final determination.
    (g) This determination will be provided to the contractor and to the 
SPE for distribution to the agencies involved and for appropriate action 
under the determination.
    (h) The determination and the supporting documentation will be 
placed in the contract file(s) and a copy will be maintained by the SPE.
    (i) The contracting officer will advise the SPE of the actual date 
of the reduction or suspension action.
    (j) Not later than 150 calendar days after the actual date of the 
reduction or suspension action, the SPE will prepare for the RCO a 
review of the agency head's determination, and will propose a 
recommendation from the RCO to the agency head as to whether the 
reduction or suspension action should continue. The RCO will submit the 
recommendation (including a recommendation for the time period of a 
follow up review) to the agency head. This recommendation will be 
considered by the Secretary and handled as a final action described in 
paragraph (f) of this section.
    (k) The contract may not be closed nor final payment made prior to a 
final determination by the Secretary.



432.006-5  Reporting.

    The annual report required by FAR 32.006-5 is to be prepared by the 
SPE and to be submitted to the Secretary within 90 calendar days after 
the end of the fiscal year. When signed by the Secretary, the report is 
to be maintained by the SPE.



432.007  Contract financing payments.

    The HCA may prescribe, on a case-by-case basis, a shorter period for 
financing payments.

[61 FR 53646, Oct. 15, 1996. Redesignated at 70 FR 48, Jan. 3, 2005]

[[Page 112]]



          Subpart 432.1_Non-Commercial Item Purchase Financing



432.102  Description of contract financing methods.

    Progress payments based on a percentage or stage of completion are 
authorized for use as a payment method under USDA contracts or 
subcontracts for construction, alteration or repair, and shipbuilding 
and conversion. Such payments also are authorized for service contracts, 
if the contracting officer determines that progress payments based on 
costs are not practicable and adequate safeguards are provided to 
administer progress payments based on a percentage or stage of 
completion. For all other contracts, progress payment provisions shall 
be based on costs except that the HCA may authorize progress payments 
based on a percentage or stage of completion on a case-by-case basis. 
Each authorization by the HCA shall include a determination and finding 
that progress payments based on costs cannot be employed practically and 
that there are adequate safeguards provided for the administration of 
progress payments based on a percentage or stage of completion.



432.103  Progress payments under construction contracts.

    (a) When approving a progress payment under a construction contract, 
the contracting officer shall indicate the amount to be paid by the 
payment office and include in the contract file the rationale in support 
of the payment.
    (b) When a retainage is made on a progress payment under a 
construction contract, the contracting officer shall place in the 
contract file a written determination stating the reason(s) for the 
retainage.
    (c) When a progress payment under a construction contract has been 
approved, the amount to be paid, the amount of any retainage withheld, 
and the reason(s) for the retainage shall be provided to the contractor 
by the contracting officer in writing before the payment due date.
    (d) When the contractor, under a fixed-price construction contract, 
furnishes evidence to the contracting officer that the surety has been 
paid in full for bond premiums and requests reimbursement, the first 
subsequent progress payment shall include the total amount attributable 
to such bond premiums and the Government shall pay that amount in full. 
This amount paid for the bond premiums is not an amount in addition to 
the stated contract price.



432.111  Contract clauses for non-commercial purchases.

    The contracting officer shall insert the clause at 452.232-70, 
Reimbursement for Bond Premiums--Fixed Price Construction Contracts, 
whenever the clause at FAR 52.232-5, Payments under Fixed-Price 
Construction Contracts, is used in a contract.

[61 FR 53646, Oct. 15, 1996, as amended at 63 FR 26995, May 15, 1998]



432.113  Customary contract financing.

    The contracting officer may determine the necessity for customary 
contract financing. The determination and finding that customary 
contract financing is needed shall be placed in the contract file.



432.114  Unusual contract financing.

    The HCA is authorized to approve unusual contract financing. The 
signed determination and finding supporting this approval shall be 
included in the contract file.



            Subpart 432.2_Commercial Item Purchase Financing



432.202  General.



432.202-1  Policy.

    In the case of unusual contract financing, the approval by the HCA 
shall be recorded in a determination and finding and maintained in the 
contract file.



432.202-4  Security for Government financing.

    Prior to determining that an offeror's financial condition is 
adequate security, the contracting officer must obtain the concurrence 
of the funding activity in the proposed determination.

[[Page 113]]



432.206  Solicitation provisions and contract clauses.

    The responsibility for administration of the liquidation provisions 
of a contract may not be transferred from the contracting officer.



432.207  Administration and payment of commercial financing payments.

    The responsibility for receiving, reviewing, and approval of 
contract financing requests may not be transferred from the contracting 
officer.



          Subpart 432.3_Loan Guarantees for Defense Production



432.301  Definitions.

    Within this subpart, the ``agency'' or ``guaranteeing agency'' is 
the ``head of the contracting activity'' (HCA) and may not be 
redelegated.



         Subpart 432.4_Advance Payments for Non-Commercial Items



432.402  General.

    The HCA is designated as the individual responsible for making the 
findings and determination, and for approval of the contract terms 
concerning advance payments.



432.406  Letters of credit.

    The HCA is designated as the individual responsible for coordination 
with the Department of Treasury concerning letters of credit.



432.407  Interest.

    (a) The HCA is designated as the individual who may authorize, on a 
case by case basis, advance payments without interest for the contract 
types described in FAR 32.407(d)(1), (2), (3), and (4). The signed 
determination and findings supporting these authorizations shall be 
included in the contract files.
    (b) The SPE is designated as the individual who may authorize 
advance payments without interest other than those described in 
paragraph (a) of this section.



432.412  Contract clause.

    The decision to use Alternates I or III to clause 52.232-12 must be 
supported by a determination and finding.



                      Subpart 432.6_Contract Debts



432.601  Definition.

    Responsible official means the contracting officer.



432.616  Compromise actions.

    Compromise of a debt within the proceedings under appeal to the 
Civilian Board of Contract Appeals is the responsibility of the 
contracting officer.

[72 FR 31438, June 7, 2007]



                     Subpart 432.7_Contract Funding



432.703  Contract funding requirements.



432.703-3  Contracts crossing fiscal years.

    Funds appropriated to USDA may be used for one-year contracts which 
are to be performed in two fiscal years so long as the total amount for 
such contracts is obligated in the year for which the funds are 
appropriated (7 U.S.C. 2209c).



432.770  USDA specific funding limitations.

    (a) The USDA is authorized to subscribe for newspapers as may be 
necessary to carry out its authorized work: Provided, that such 
subscriptions shall not be made unless provision is made therefor in the 
applicable appropriation and the cost thereof is not in excess of 
limitations prescribed therein (7 U.S.C. 2258).
    (b) The expenditure of any USDA appropriation for any consulting 
service through any contract, pursuant to section 3109 of Title 5 of the 
U.S. Code shall be limited to those contracts where such expenditures 
are a matter of public record and available for public inspection, 
except where otherwise provided under existing law, or under existing 
Executive Order issued pursuant to existing law (7 U.S.C. 2225a).

[[Page 114]]



                   Subpart 432.8_Assignment of Claims



432.802  Conditions.

    Written notices of assignment and a true copy of the assigned 
instrument are to be sent to the contracting officer rather than the 
agency head. Other copies are distributed as directed in FAR 32.802.



432.803  Policies.

    The HCA may make a determination of need to include a no-setoff 
commitment in a contract.



432.805  Procedure.

    The information described in FAR 32.805 shall be filed with the 
contracting officer.



432.806  Contract clauses.

    The contracting officer may make the determination whether to 
include the clause at FAR 52.232-23 in any purchase order expected to 
exceed the micro-purchase threshold.



                      Subpart 432.9_Prompt Payment



432.904  Determining payment due dates.

    The payment terms for supplies and services on the Procurement List 
and provided by a Javits-Wagner-O'Day Act participating nonprofit agency 
are governed by FAR 8.709.

[61 FR 53646, Oct. 15, 1996. Redesignated at 70 FR 48, Jan. 3, 2005]



                Subpart 432.10_Performance-Based Payments



432.1007  Administration and payment of performance-based payments.

    The responsibility for receiving, reviewing, and approval of 
performance-based payment requests may not be transferred from the 
contracting officer.



PART 433_PROTESTS, DISPUTES AND APPEALS--Table of Contents



                         Subpart 433.1_Protests

Sec.
433.102  General.
433.103  Protests to the agency.
433.104  [Reserved]

                   Subpart 433.2_Disputes and Appeals

433.203  Applicability.
433.203-70  Civilian Board of Contract Appeals.
433.209  Suspected fraudulent claims.

    Authority: 40 U.S.C. 121, 41 U.S.C. 421.

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                         Subpart 433.1_Protests



433.102  General.

    (a) The Senior Procurement Executive (SPE) is responsible for 
coordinating the handling of bid protests lodged with the Government 
Accountability Office (GAO).
    (b) The head of the contracting activity (HCA), on a non-delegable 
basis, may resolve protests and authorize reimbursement of costs in 
accordance with FAR 33.102(b).

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 48, Jan. 3, 2005]



433.103  Protests to the agency.

    (a) Actual or prospective bidders or offerors may file protests 
either with the HCA, as provided by 433.102(b), or with the contracting 
officer. Protesters who file protests with the HCA shall furnish a 
complete copy to the contracting officer no later than 1 day after the 
protest is filed with the HCA.
    (b) When a protest is received, the adjudicating official shall take 
prompt action towards resolution and notify the protester in writing of 
the action taken. The written final decision shall include a paragraph 
substantially as follows:

    This decision shall be final and conclusive unless a further written 
notice of protest is filed with the Government Accountability Office in 
accordance with 4 CFR part 21. Neither the filing of a protest with USDA 
nor the filing of a protest with the Government Accountability Office 
affects your right to file an action in a district court of the United 
States or the United States Court of Federal Claims.

[61 FR 53646, Oct. 15, 1996, as amended at 70 FR 48, Jan. 3, 2005]

[[Page 115]]



433.104  [Reserved]



                   Subpart 433.2_Disputes and Appeals



433.203  Applicability.

    The Assistant Secretary for Administration is authorized to 
determine the applicability of the Contract Disputes Act to contracts 
with foreign governments pursuant to FAR 33.203.



433.203-70  Civilian Board of Contract Appeals.

    The organization, jurisdiction, and functions of the Civilian Board 
of Contract Appeals, together with its Rules of Procedure, are set out 
in 48 CFR part 6101.

[72 FR 31438, June 7, 2007]



433.209  Suspected fraudulent claims.

    The contracting officer shall refer all matters related to suspected 
fraudulent claims by a contractor under the conditions in FAR 33.209 to 
the Office of Inspector General for additional action or investigation.

[[Page 116]]



             SUBCHAPTER F_SPECIAL CATEGORIES OF CONTRACTING





PART 434_MAJOR SYSTEM ACQUISITION--Table of Contents



                          Subpart 434.0_General

Sec.
434.001  Definitions.
434.002  Policy.
434.003  Responsibilities.
434.004  Acquisition strategy.
434.005  General requirements.
434.005-6  Full production.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 70 FR 49, Jan. 3, 2005, unless otherwise noted.



                          Subpart 434.0_General



434.001  Definitions.

    Pursuant to OMB Circular No. A-109 (A-109) and the definition at FAR 
2.101, within USDA, a system shall be considered a major system if:
    (a) The total acquisition costs (for information technology, life 
cycle costs) are estimated to be $50 million or more, or
    (b) The system, regardless of estimated acquisition or life cycle 
costs, has been specifically designated to be a major system by the USDA 
Acquisition Executive or by the Major Information Technology Systems 
Executive.



434.002  Policy.

    In addition to the policy guidance at FAR 34.002 and other parts of 
the FAR, the policies outlined in paragraph 6 of A-109 should serve as 
guidelines for all contracting activities in planning and developing 
systems, major or otherwise.



434.003  Responsibilities.

    (a) The Secretary of Agriculture or other designated USDA key 
executive is responsible for making four key decisions in each major 
system acquisition process. These are listed in paragraph 9 of A-109 and 
elaborated on in paragraphs 10 through 13. The key executives of USDA 
(Secretary, Deputy Secretary, Under Secretaries and Assistant 
Secretaries) individually or as a group will participate in this 
decision making process.
    (b) The Chief Information Officer (CIO) is the Major Information 
Technology Systems Executive. For acquisitions of information 
technology, the CIO will ensure that A-109 is implemented in USDA and 
that the management objectives of the Circular are realized. The CIO is 
responsible for designating the program manager for each major 
information technology system acquisition, designating an acquisition to 
be a major information technology system acquisition, and approving the 
written charter and project control system for each major information 
technology system acquisition.
    (c) The Assistant Secretary for Administration (ASA) is the USDA 
Acquisition Executive for major system acquisitions other than 
acquisitions of information technology. The ASA will ensure that A-109 
is implemented in USDA and that the management objectives of the 
Circular are realized. The ASA is responsible for designating the 
program manager for each major system acquisition, designating an 
acquisition to be a major system acquisition, and approving the written 
charter and project control system for each major system acquisition.
    (d) Heads of contracting activities must:
    (1) Ensure compliance with the requirements of A-109, FAR Part 34 
and AGAR Part 434.
    (2) Ensure that potential major system acquisitions are brought to 
the attention of the USDA Acquisition Executive or the Major Information 
Technology Systems Executive, as appropriate.
    (3) Recommend qualified candidates for designation as program 
managers for each major system acquisition within their jurisdiction.
    (4) Ensure that program managers fulfill their responsibilities and 
discharge their duties.
    (5) Cooperate with the ASA and Major Information.
    Technology Systems Executive in implementing the requirements of A-
109.

[[Page 117]]

    (e) The program manager is responsible for planning and executing 
the major system acquisition, ensuring appropriate coordination with the 
USDA Acquisition Executive and Major Information Technology Systems 
Executive and other key USDA executives.



434.004  Acquisition strategy.

    (a) The program manager will develop, in coordination with the 
Acquisition Executive or Major Information Technology Systems Executive, 
a written charter outlining the authority, responsibility, 
accountability, and budget for accomplishing the proposed objective.
    (b) The program manager will develop, subject to the approval of the 
Acquisition Executive or Major Information Technology Systems Executive, 
a project control system to schedule, monitor, and regularly report on 
all aspects of the project. The control system shall establish reporting 
periods and milestones consistent with the key decisions listed in 
paragraph 9 of A-109.
    (c) Upon initiation of the project, the program manager will report 
regularly to the Acquisition Executive or Major Information Technology 
Systems Executive.
    (d) Specific procedures and requirements for information technology 
systems are included in the USDA Information Technology Capital Planning 
and Investment Control Guide which can be accessed on the USDA OCIO Web 
site at http://www.ocio.usda.gov.



434.005  General requirements.



434.005-6  Full production.

    The Secretary or the USDA key executive designated by the Secretary 
for the specific program is the agency head for the purposes of FAR 
34.005-6.



PART 435_RESEARCH AND DEVELOPMENT CONTRACTING--Table of Contents



    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).



435.010  Scientific and technical reports.

    Research and development contracts shall contain a provision 
requiring that the contractor send copies of all scientific and 
technical reports to the National Technical Information Service at the 
address indicated in FAR 35.010(b). The release of research and 
development contract results to other government activities and to the 
private sector is subject to the provisions of FAR subpart 4.4.

[61 FR 53646, Oct. 15, 1996]



PART 436_CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
--Table of Contents



      Subpart 436.2_Special Aspects of Contracting for Construction

Sec.
436.201  Evaluation of contractor performance.
436.203  Government estimate of construction costs.
436.204  Disclosure of the magnitude of construction projects.
436.205  Statutory cost limitations.
436.209  Construction contracts with architect-engineer firms.
436.213  Special procedures for sealed bidding in construction 
          contracting.
436.213-2  Presolicitation notices.

Subpart 436.3 [Reserved]

                     Subpart 436.5_Contract Clauses

436.500  Scope of subpart.
436.571  Prohibition against the use of lead-based paint.
436.572  Use of premises.
436.573  Archeological or historic sites.
436.574  Control of erosion, sedimentation, and pollution.
436.575  Maximum workweek-construction schedule.
436.576  Samples and certificates.
436.577  Emergency response.
436.578  Contract clause.
436.579  Opted timber sale road requirements.

                Subpart 436.6_Architect-Engineer Services

436.601  Policy.
436.601-3  Applicable contracting procedures.
436.602  Selection of firms for architect-engineer contracts.
436.602-1  Selection criteria.
436.602-2  Evaluation boards.
436.602-3  Evaluation board functions.
436.602-4  Selection authority.
436.602-5  Short selection process for contracts not to exceed the 
          simplified acquisition threshold.
436.603  Collecting data on and appraising firms' qualifications.

[[Page 118]]

436.604  Performance evaluation.
436.605  Government cost estimate for architect-engineer work.
436.609  Contract clauses.
436.609-1  Design within funding limitations.
436.670  Firms ineligible for award--construction.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 121(c)

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



      Subpart 436.2_Special Aspects of Contracting for Construction



436.201  Evaluation of contractor performance.

    Preparation of performance evaluation reports. In addition to the 
requirements of FAR 36.201, performance evaluation reports shall be 
prepared for indefinite-delivery type contracts when either the contract 
maximum or the contracting activity's reasonable estimate of services to 
be ordered exceeds $500,000.00. For these contracts, performance 
evaluation reports shall be prepared for each order at the time of final 
acceptance of the work under the order.



436.203  Government estimate of construction costs.

    For acquisitions using sealed bid procedures, the contracting 
officer may disclose the overall amount of the Government's estimate of 
construction costs following identification of the responsive bid most 
advantageous to the Government; verification of that bid's price 
reasonableness; and verification of the bidder's responsibility. For 
acquisitions using other than sealed bid procedures (e.g., negotiation), 
the contracting officer may disclose the overall amount of the estimate 
after contract award.



436.204  Disclosure of the magnitude of construction projects.

    In the case of indefinite-delivery type contracts, the reasonable 
estimate of work to be done or the maximum in the solicitation, both 
including all options, is to be used to select the price range. 
Contracting officers may elect to use both a price range for the base 
period of services and the total, inclusive of options, to best describe 
the magnitude of the solicitation.



436.205  Statutory cost limitations.

    (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 solicitation for a base bid item 
covering the work generally as specified and for one or more additive or 
deductive bid items which progressively add or omit specified features 
of the work in a stated order of priority. In this case, the contracting 
officer shall insert the provision at 452.236-70, Additive or Deductive 
Items, in solicitations for construction.
    (b) In the alternative to the process in paragraph (a) of this 
section, the contracting officer may use the policies and procedures 
found in FAR 17.2.



436.209  Construction contracts with architect-engineer firms.

    The head of the contracting activity (HCA) is authorized to approve 
the award of a contract to construct a project, in whole or in part, to 
the firm (inclusive of its subsidiaries or affiliates) that designed the 
project.



436.213  Special procedures for sealed bidding in construction contracting.



436.213-2  Presolicitation notices.

    The authority to waive a presolicitation notice is restricted to the 
HCA.

[63 FR 26995, May 15, 1998]

Subpart 436.3 [Reserved]



                     Subpart 436.5_Contract Clauses



436.500  Scope of subpart.

    This subpart prescribes clauses for insertion in USDA solicitations 
and contracts for construction and for dismantling, demolition, or 
removal of improvements or structures. The contracting officer shall use 
the clauses as prescribed, in contracts that exceed the simplified 
acquisition threshold. The contracting officer may use the clauses if 
the contract amount is expected to be within the simplified acquisition 
threshold.

[[Page 119]]



436.571  Prohibition against the use of lead-based paint.

    The contracting officer shall insert the clause at 452.236-71, 
Prohibition Against the Use of Lead-Based Paint, in solicitations and 
contracts, if the work involves construction or rehabilitation 
(including dismantling, demolition, or removal) of residential 
structures. This clause may be used in contracts for other than 
residential structures.



436.572  Use of premises.

    The contracting officer shall insert the clause at 452.236-72, Use 
of Premises, if the contractor will be permitted to use land or premises 
administered by USDA.



436.573  Archeological or historic sites.

    The contracting officer shall insert the clause at 452.236-73, 
Archeological or Historic Sites, if the contractor will be working in an 
area where such sites may be found. Use of the clause is optional in 
service contracts for on-the-ground work, e.g., reforestation, 
silvicultural, land stabilization, or other agricultural-related 
projects.



436.574  Control of erosion, sedimentation, and pollution.

    The contracting officer shall insert the clause at 452.236-74, 
Control of Erosion, Sedimentation and Pollution, if there is a need for 
applying environmental controls in the performance of work. Use of the 
clause is optional in service contracts for on-the-ground e.g., 
reforestation, silvicultural, land stabilization, or other agricultural-
related projects.



436.575  Maximum workweek-construction schedule.

    The contracting officer shall insert the clause at 452.236-75, 
Maximum Workweek-Construction Schedule, if the clause at FAR 52.236-15 
is used and the contractor's work schedule is restricted by access to 
the facility or must be coordinated with the schedule of contract 
administration personnel.

[63 FR 26996, May 15, 1998]



436.576  Samples and certificates.

    The contracting officer shall insert the clause at 452.236-76, 
Samples and Certificates, in all contracts.



436.577  Emergency response.

    The contracting officer may insert the clause at 452.236-77, 
Emergency Response, in construction contracts awarded for the Forest 
Service.



436.578  Contract clause.

    Insert the clause at 452.236-78, Fire Suppression and Liability in 
solicitations and contracts for Integrated Resource Service Contracts 
(IRSC) awarded for the Forest Service.

[81 FR 7480, Feb. 12, 2016]



436.579  Opted timber sale road requirements.

    The contracting officer shall insert the clause at 452.236-79, Opted 
Timber Sale Road Requirements, in road construction contracts resulting 
from a timber sale turnback.



                Subpart 436.6_Architect-Engineer Service



436.601  Policy.



436.601-3  Applicable contracting procedures.

    The technical official's listing of areas where recovered materials 
cannot be used shall be referred to the contracting activity's official 
designated in accordance with FAR 23.404. A copy of the listing and of 
any approval or disapproval by that official is to be retained in the 
solicitation file.



436.602  Selection of firms for architect-engineer contracts.



436.602-1  Selection criteria.

    The HCA is authorized to approve the use of design competition under 
the conditions in FAR 36.602-1(b).



436.602-2  Evaluation boards.

    HCA's shall establish written procedures for providing permanent or 
ad hoc architect-engineer evaluation boards as prescribed in FAR 36.602-
2. The procedures may provide for the appointment of private 
practitioners of

[[Page 120]]

architecture, engineering, or related professions when such action is 
determined by the HCA to be essential to meet the Government's minimum 
needs.



436.602-3  Evaluation board functions.

    The selection report required in FAR 36.602-3(d) shall be prepared 
for the approval of the HCA. The HCA may authorize an acquisition 
official above the level of the contracting officer to execute the 
required approval.



436.602-4  Selection authority.

    (a) The HCA shall serve as the selection authority in accordance 
with FAR 36.602-4. The HCA may authorize an acquisition official above 
the level of the contracting officer to serve as the selection 
authority.
    (b) A copy of the final selection, inclusive of the supporting 
documents, shall be provided to the contracting officer and maintained 
in the solicitation file.



436.602-5  Short selection process for contracts not to exceed the
simplified acquisition threshold.

    The HCA may include either or both procedures in FAR 36.602-5 in the 
procedures for evaluation boards.



436.603  Collecting data on and appraising firms' qualifications.

    (a) HCA's which require architect-engineer services shall establish 
procedures to comply with the requirements of FAR 36.603.
    (b) The procedures shall include a list of names, addresses, and 
phone numbers of offices or boards assigned to maintain architect-
engineer qualification data files. The list shall be updated annually.



436.604  Performance evaluation.

    Preparation of performance evaluation reports. (a) In addition to 
the requirements of FAR 36.604, performance evaluation reports shall be 
prepared for indefinite-delivery type contracts when either the contract 
maximum or the contracting activities reasonable estimate of services to 
be ordered exceeds $25,000.00. For these contracts, performance 
evaluation reports shall be prepared for each order at the time of final 
acceptance of the work under the order.
    (b) The contracting officer may require a performance evaluation 
report on the work done by the architect-engineer after the completion 
of or during the construction of the designed project.



436.605  Government cost estimate for architect-engineer work.

    The contracting officer may release the Government's total cost 
estimate in accordance with FAR 36.605(b).



436.609  Contract clauses.



436.609-1  Design within funding limitations.

    (a) Should the head of the contracting activity appoint a designee 
to make the determination in FAR 36.609-1(c)(1), the appointment may be 
to one no lower than the official authorized to commit program funds for 
the work being acquired.
    (b) The contracting officer, with the advice of appropriate 
technical representatives, may make the determination in FAR 36.609-
1(c)(2) or (3).
    (c) A copy of the determinations described in paragraph (b) and (c) 
of this section shall be maintained in the contract file.



436.670  Firms ineligible for award--construction.

    The contracting officer shall insert the clause at 452.236-80, Firms 
Ineligible For Award--Construction, in the contract for architect-
engineering services except as provided in FAR 36.209 and AGAR 436.209.



PART 437_SERVICE CONTRACTING--Table of Contents



                 Subpart 437.1_Service Contracts_General

Sec.
437.104  Personal services contracts.
437.110  Solicitation provisions and contract clauses.

             Subpart 437.2_Advisory and Assistance Services

437.203  Policy.
437.204  Guidelines for determining availability of personnel.

[[Page 121]]

437.270  Solicitation provisions and contract clauses.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                 Subpart 437.1_Service Contracts_General



437.104  Personal services contracts.

    USDA has the following specific statutory authorities to contract 
for personal services:
    (a) Section 706(a) of the Organic Act of 1944 (7 U.S.C. 2225) 
authorizes contracting with persons or organizations on a temporary 
basis, without regard to civil service compensation classification 
standards in 5 U.S.C., Chapter 51 and Subchapter III of Chapter 53, 
Provided:
    (1) That no expenditures shall be made unless specifically provided 
for in the applicable appropriation, and
    (2) Expenditures do not exceed any limitations prescribed in the 
appropriation.
    (b) 7 U.S.C. 1627 authorizes the Secretary of Agriculture to 
contract with technically qualified persons, firms or organizations to 
perform research, inspection, classification, technical, or other 
special services, without regard to the civil-service laws, Provided: it 
is for a temporary basis and for a term not to exceed six months in any 
fiscal year.



437.110  Solicitation provisions and contract clauses.

    (a) The contracting officer shall insert a clause substantially the 
same as the clause at 452.237-70, Loss Damage, Destruction or Repair, in 
contracts for equipment rental, whether the equipment is furnished with 
or without operator.
    (b) The contracting officer shall insert a provision substantially 
the same as the clause at 452.237-71, Pre-Bid/Pre-Proposal Conference, 
in all solicitations if a conference with prospective offerors will be 
held prior to the submittal of bids or proposals.
    (c) The contracting officer shall insert the provision at 452.237-
73, Equipment Inspection visit, in solicitations if work is to be done 
on Government equipment and an offeror's inspection is encouraged for an 
understanding of the work to be performed prior to submittal of bids or 
proposals.
    (d) The contracting officer shall insert a clause substantially the 
same as the clause at 452.237-74, Key Personnel, in contracts if 
contract performance requires identification of the contractor's key 
personnel.
    (e) The contracting officer shall insert a clause substantially the 
same as the clause at 452.237-75, Restrictions Against Disclosure, in 
service contracts (including architect-engineer contracts) requiring 
restrictions on release of information developed or obtained in 
connection with performance of the contract.



             Subpart 437.2_Advisory and Assistance Services



437.203  Policy.

    Contracting for advisory and assistance services is subject to the 
policy and procedures in Departmental Regulations (5000 series).



437.204  Guidelines for determining availability of personnel.

    The head of the contracting activity (HCA) is authorized to approve 
the use of non-Government evaluators in proposal evaluation. Each such 
decision shall be supported by a written determination in accordance 
with FAR 37.204.

[64 FR 52675, Sept. 30, 1999]



437.270  Solicitation and contract clauses.

    (a) The contracting officer shall insert a clause substantially the 
same as the clause at 452.237-76, Progress Reporting, in all contracts 
for advisory and assistance services. It may also be used in other 
service contracts.
    (b) The contracting officer shall insert a clause substantially the 
same as the clause at 452.237-78, Contracts with Consulting Firms for 
Services, in solicitations and contracts for consulting services which 
prohibit follow-on contracts with the contracting firm.

                           PART 438 [RESERVED]

[[Page 122]]



PART 439_ACQUISITION OF INFORMATION TECHNOLOGY--Table of Contents



                          Subpart 439.1_General

Sec.
439.101  Policy.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).



                          Subpart 439.1_General



439.101  Policy.

    (a) In addition to policy and regulatory guidance contained in the 
FAR and AGAR:
    (1) The USDA Information Technology Capital Planning and Investment 
Control Guide (CPIC) establishes requirements for the acquisition of 
information technology.
    (2) Specific thresholds at which USDA Office of the Chief 
Information Officer Information Technology Acquisition Approval is 
required have been established.
    (3) The procurement authority delegated to USDA Agencies is 
established in Departmental Regulations 5000 series.
    (4) The CPIC Guide and USDA CIO policy and procedural guidance are 
available on the USDA OCIO Web site at http://www.ocio.usda.gov. Notices 
of changes in the Information Technology Acquisition Approval Thresholds 
are also promulgated by AGAR Advisory.
    (b) Acquisition of on-line courseware libraries and learning 
management system services requires specific approval of the ASA and 
CIO. Information regarding the specific approval requirements and 
processes is promulgated by AGAR Advisory.

[70 FR 49, Jan. 3, 2005]

                           PART 440 [RESERVED]



PART 441_ACQUISITION OF UTILITY SERVICES--Table of Contents



    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).



                Subpart 441.2_Acquiring Utility Services



441.201  Policy.

    As used in FAR 41.201(d)(2)(i) and 41.201(d)(3) the Federal agency 
head designee is the head of the contracting activity.

[61 FR 53646, Oct. 15, 1996]

[[Page 123]]



                    SUBCHAPTER G_CONTRACT MANAGEMENT





PART 442_CONTRACT ADMINISTRATION--Table of Contents



  Subpart 442.1_Interagency Contract Administration and Audit Services

Sec.
442.102  Procedures.

            Subpart 442.15_Contractor Performance Information

442.1502  Policy.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



  Subpart 442.1_Interagency Contract Administration and Audit Services



442.102  Procedures.

    (a) The Office of Inspector General (OIG), Audit Division, has 
established a cross-servicing arrangement with the Defense Contract 
Audit Agency (DCAA) to provide contract audit services required by the 
FAR.
    (b) All contract audit services required by contracting officers, 
except those which can be accomplished in-house, shall be coordinated 
through the cognizant OIG Regional Inspector General--Auditing (RIG-A). 
Cognizance is determined on the basis of the contractor's location. 
There is no charge for DCAA audit services coordinated through OIG.
    (c) In order to ensure compliance with this requirement and to 
evaluate the results of audits, contracting officers shall forward to 
the RIG-A copies of all price negotiation memoranda prepared for 
contracts and contract modifications in excess of $500,000.



            Subpart 442.15_Contractor Performance Information



442.1502  Policy.

    The Contractor Performance System (CPS), developed by the National 
Institutes of Health, is designated as the single USDA-wide system for 
maintaining contractor performance/evaluation information. Use of the 
CPS is mandatory. As a minimum, the CPS shall be accessed for contractor 
past performance information as part of proposal evaluation in 
accordance with FAR subpart 15.3, and information resulting from the 
evaluation of contractor performance in accordance with FAR subpart 
42.15 shall be entered into and maintained in this system. The CPS is a 
part of the USDA Acquisition Toolkit which can be accessed from the USDA 
Procurement Homepage at http://www.usda.gov/procurement/.

[66 FR 49867, Oct. 1, 2001]

                        PARTS 443	444 [RESERVED]



PART 445_GOVERNMENT PROPERTY--Table of Contents



       Subpart 445.3_Providing Government Property to Contractors

Sec.
445.302  Providing facilities.
445.302-1  Policy.

     Subpart 445.4_Contractor Use and Rental of Government Property

445.403  Rental--Use and Charges clause.
445.407  Non-Government use of plant equipment.

Subpart 445.6 [Reserved]

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



       Subpart 445.3_Providing Government Property to Contractors



445.302  Providing facilities.



445.302-1  Policy.

    Heads of contracting activities (HCA's) are authorized to make 
determinations for providing facilities to a contractor as prescribed in 
FAR 45.302-1(a)(4).

[[Page 124]]



     Subpart 445.4_Contractor Use and Rental of Government Property



445.403  Rental--Use and Charges clause.

    HCA's are authorized to make determinations for charging rent on the 
basis of use under the Use and Charges clause in FAR 52.245-9 as 
prescribed in FAR 45.403(a).



445.407  Non-Government use of plant equipment.

    Requests for non-Government use of plant equipment as prescribed in 
FAR 45.407 shall be submitted by the HCA to the Senior Procurement 
Executive (SPE) for approval.

Subpart 445.6 [Reserved]



PART 446_QUALITY ASSURANCE--Table of Contents



    Authority: 5 U.S.C. 30 and 40 U.S.C. 486(c).



                     Subpart 446.3_Contract Clauses



446.370  Inspection and acceptance.

    The Contracting Officer shall insert the clause at 452.246-70, 
Inspection and Acceptance, in contracts where inspection and acceptance 
will be performed at the same location. The clause with its Alternate I 
is for use when inspection and acceptance will be performed at different 
locations.

[61 FR 53646, Oct. 15, 1996]



PART 447_TRANSPORTATION--Table of Contents



            Subpart 447.3_Transportation in Supply Contracts

Sec.
447.302  Place of delivery--F.O.B. point.
447.305  Solicitation provisions, contract clauses, and transportation 
          factors.
447.305-10  Packing, marking, and consignment instructions.

    Authority: 5 U.S.C. 30 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



            Subpart 447.3_Transportation in Supply Contracts



447.302  Place of delivery--F.O.B. point.

    The contracting officer shall insert a clause substantially the same 
as the clause at 452.247-70, Delivery Location, in supply contracts when 
it is necessary to specify delivery locations. If appropriate, the 
clause may reference an attachment which lists various delivery 
locations and other delivery details (e.g., quantities to be delivered 
to each location, etc.).



447.305  Solicitation provisions, contract clauses, and transportation factors.



447.305-10  Packing, marking, and consignment instructions.

    (a) The contracting officer shall insert a clause substantially the 
same as the clause at 452.247-71, Marking Deliverables, in solicitations 
and contracts if special marking on deliverables (other than reports) 
are required.
    (b) The contracting officer shall insert the clause at 452.247-72, 
Packing for Domestic Shipment, in contracts when item(s) will be 
delivered for immediate use to a destination in the continental United 
States; when the material specification or purchase description does not 
provide preservation, packaging, packing, and/or marking requirements; 
and/or when the requiring activity has not cited a specific 
specification for packaging.
    (c) The contracting officer shall insert the clause at 452.247-73, 
Packing for Overseas Shipment, in contracts when item(s) will be 
delivered to an overseas destination for immediate use, the material 
specification does not specify packing levels, and the required activity 
has not specified such requirements.

                           PART 448 [RESERVED]

[[Page 125]]



PART 449_TERMINATION OF CONTRACTS--Table of Contents



                    Subpart 449.1_General Principles

Sec.
449.106  Fraud or other criminal conduct.
449.111  Review of proposed settlements.

                  Subpart 449.4_Termination for Default

449.402  Termination of fixed-price contracts for default.
449.402-3  Procedure for default.

               Subpart 449.5_Contract Termination Clauses

449.501  General.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



                    Subpart 449.1_General Principles



449.106  Fraud or other criminal conduct.

    (a) If the contracting officer suspects fraud or other criminal 
conduct a written report documenting the facts shall be submitted by the 
head of the contracting activity (HCA) to the Office of Inspector 
General. Copies of documents or other information connected with the 
suspected fraud or criminal conduct shall be provided with the report. 
Concurrently, a copy of the report shall also be submitted to the Senior 
Procurement Executive.
    (b) Depending on the findings of the Office of Inspector General, 
the HCA may initiate suspension or debarment action as prescribed in FAR 
part 9.4 and part 409.4.



449.111  Review of proposed settlements.

    Proposed settlement agreements shall be reviewed and approved in 
accordance with contracting activity procedures.



                  Subpart 449.4_Termination for Default



449.402  Termination of fixed-price contracts for default.



449.402-3  Procedure for default.

    In addition to the requirements of FAR 49.402-3(g), the notice of 
termination shall contain instructions regarding the disposition of any 
Government property in the possession of the contractor (see FAR 45.508-
1) and, in the case of construction contracts, such materials, 
appliances, and structures as may be on the site of the construction 
work. The notice shall also contain a statement concerning the liability 
of the contractor or its surety for any liquidated damages (see FAR 
49.402-7).



               Subpart 449.5_Contract Termination Clauses



449.501  General.

    Use of special purpose termination clauses pursuant to the authority 
of FAR 49.501 shall be approved in advance by the HCA.



PART 450_EXTRAORDINARY CONTRACTUAL ACTIONS--Table of Contents



Sec.
450.001  Definitions.

Subpart 450.1 [Reserved]

  Subpart 450.2_Delegation of and Limitations on Exercise of Authority

450.201  Delegation of authority.

                   Subpart 450.3_Contract Adjustments

450.303  Contract adjustment.
450.303-1  Contractor requests.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



450.001  Definitions.

    Approving authority, as used in this part, means the Assistant 
Secretary for Administration.
    Secretarial level, as used in this part means the Assistant 
Secretary for Administration.

[[Page 126]]

Subpart 450.1 [Reserved]



  Subpart 450.2_Delegation of and Limitations on Exercise of Authority



450.201  Delegation of authority.

    The Assistant Secretary for Administration is authorized to approve 
all actions under FAR part 50 except indemnification actions listed in 
FAR 50.201(d) which must be approved by the Secretary, without power of 
delegation.



                   Subpart 450.3_Contract Adjustments



450.303  Contract adjustment.



450.303-1  Contractor requests.

    Contractor requests shall be submitted to the contracting officer.

                           PART 451 [RESERVED]

[[Page 127]]



                     SUBCHAPTER H_CLAUSES AND FORMS





PART 452_SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents



              Subpart 452.2_Texts of Provisions and Clauses

Sec.
452.204-70  Inquiries.
452.211-70  Brand Name or Equal.
452.211-71  Equal Products Offered.
452.211-72  Statement of Work/Specifications.
452.211-73  Attachments to Statement of Work/Specifications.
452.211-74  Period of Performance.
452.211-75  Effective Period of the Contract.
452.214-70  Award by Lot.
452.215-71  Instructions for the Preparation of Technical and Business 
          Proposals.
452.215-72  Amendments to Proposals.
452.215-73  Post Award Conference.
452.216-70  Award Fee.
452.216-71  Base Fee and Award Fee Proposal.
452.216-72  Evaluation Quantities--Indefinite-Delivery Contract.
452.216-73  Minimum and Maximum Contract Amounts.
452.216-74  Ceiling Price.
452.216-75  Letter Contract.
452.219-70  Size Standard and NAICS Code Information.
452.224-70  Confidentiality of Information.
452.226-70--452.226-72  [Reserved]
452.228-70  Alternative Forms of Security.
452.228-71  Insurance Coverage.
452.232-70  Reimbursement for Bond Premiums--Fixed-Price Construction 
          Contracts.
452.236-70  Additive or Deductive Items.
452.236-71  Prohibition Against the Use of Lead-Based Paint.
452.236-72  Use of Premises.
452.236-73  Archaeological or Historic Sites.
452.236-74  Control of Erosion, Sedimentation, and Pollution.
452.236-75  Maximum Workweek--Construction Schedule.
452.236-76  Samples and Certificates.
452.236-77  Emergency Response.
452.236-78  Fire Suppression and Liability.
452.236-79  Opted Timber Sale Road Requirements.
452.236-80  Firms Ineligible for Award--Construction.
452.237-70  Loss, Damage, Destruction or Repair.
452.237-71  Pre-Bid/Pre-Proposal Conference.
452.237-73  Equipment Inspection Visit.
452.237-74  Key Personnel.
452.237-75  Restrictions Against Disclosure.
452.237-76  Progress Reporting.
452.237-78  Contracts with Consulting Firms for Services.
452.246-70  Inspection and Acceptance.
452.247-70  Delivery Location.
452.247-71  Marking Deliverables.
452.247-72  Packing for Domestic Shipment.
452.247-73  Packing for Overseas Shipment.

    Authority: 5 U.S.C. 301 and 40 U.S.C. 121(c)

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



              Subpart 452.2_Texts of Provisions and Clauses



452.204-70  Inquiries.

    As prescribed in 404.7001, insert the following provision:

                          Inquiries (FEB 1988)

    Inquiries and all correspondence concerning this solicitation should 
be submitted in writing to the Contracting Officer. Offerors should 
contact only the Contracting Officer issuing the solicitation about any 
aspect of this requirement prior to contract award.

                           (End of provision)



452.211-70  Brand Name or Equal.

    As prescribed in 411.171, insert the following provision:

                     Brand Name or Equal (NOV 1996)

    (As used in this provision, the term ``brand name'' includes 
identification of products by make and model.)
    (a) If items called for by this solicitation have been identified 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. Offers of 
``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 offer (see clause 
452.211-71) and are determined by the Contracting Officer to meet fully 
the salient characteristics requirements listed in the solicitation.
    (b) Unless the offeror clearly indicates in its offer that it is 
offering an ``equal'' product, the offeror shall be considered as 
offering the brand name product(s) referenced in the solicitation.
    (c)(1) If the offeror proposes to furnish an ``equal'' product or 
products, the brand

[[Page 128]]

name(s), if any, and any other required information about the product(s) 
to be furnished shall be inserted in the space provided in the 
solicitation. The evaluation of offers and the determination as to the 
equality of the product(s) offered shall be the responsibility of the 
Government and will be based on information furnished by the offeror or 
identified in its offer as well as other information reasonably 
available to the contracting activity. Caution to offerors: The 
contracting activity is not responsible for locating or securing any 
information which is not identified in the offer and is not reasonably 
available to the contracting activity. Accordingly, to assure that 
sufficient information is available, the offeror must furnish as a part 
of its offer all descriptive material (such as cuts, illustrations, 
drawings, or other information) necessary for the contracting activity 
to (i) determine whether the product offered meets the salient 
characteristics requirement 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 reference to information previously 
furnished or to information otherwise available to the contracting 
activity.
    (2) If an offeror proposes to modify a product so as to make it 
conform to the requirements of the solicitation, the offer shall include 
(i) a clear description of such proposed modifications and (ii) clearly 
marked descriptive material to show the proposed modifications.

                           (End of provision)

[61 FR 53646, Oct. 15, 1996. Redesignated at 63 FR 26996, May 15, 1998, 
as amended at 70 FR 50, Jan. 3, 2005]



452.211-71  Equal Products Offered.

    As prescribed in 411.171, insert the following or substantially the 
same clause in solicitations seeking offers on a ``brand name or equal'' 
basis to allow offerors the opportunity to clearly identify the 
``equal'' item being offered, and to illustrate how that item meets the 
salient characteristics requirements of the Government.

                    Equal Products Offered (NOV 1996)

    (a) Offerors proposing to furnish an ``equal'' product, in 
accordance with the ``Brand Name or Equal'' provision of this 
solicitation, shall provide the following information for each offered 
``equal'' product:
Contract Line Item Number (if any):_____________________________________
Brand Name or Equal Product identified by the Government in this 
solicitation:___________________________________________________________
Offered Product Name:___________________________________________________
Catalog Description or part number:_____________________________________
________________________________________________________________________
Manufacturer's Name:____________________________________________________
Manufacturer's Address:_________________________________________________
________________________________________________________________________
________________________________________________________________________
    (b) Offerors are responsible for submitting all additional 
information on the above product necessary for the Contracting Officer 
to determine whether the product offered meets the ``brand name or 
equal'' product's salient characteristics listed in the solicitation.

                             (End of clause)

[61 FR 53646, Oct. 15, 1996. Redesignated at 63 FR 26996, May 15, 1998.]



452.211-72  Statement of Work/Specifications.

    As prescribed in 411.171, insert the following clause:

               Statement of Work/Specifications (FEB 1988)

    The Contractor shall furnish the necessary personnel, material, 
equipment, services and facilities (except as otherwise specified), to 
perform the Statement of Work/Specifications referenced in Section J.

                             (End of clause)

[61 FR 53646, Oct. 15, 1996. Redesignated at 63 FR 26996, May 15, 1998.]



452.211-73  Attachments to Statement of Work/Specifications.

    As prescribed in 411.171, insert the following clause:

       Attachments to Statement of Work/Specifications (FEB 1988)

    The attachments to the Statement of Work/Specifications listed in 
Section J are hereby made part of this solicitation and any resultant 
contract.

                             (End of clause)

[61 FR 53646, Oct. 15, 1996. Redesignated at 63 FR 26996, May 15, 1998.]



452.211-74  Period of Performance.

    As prescribed in 411.404(a), insert the following clause:

                    Period of Performance (FEB 1988)

    The period of performance of this contract is from ___ through ___.*

[[Page 129]]

                             (End of clause)

    * Contracting Officer shall insert the appropriate dates.

[61 FR 53646, Oct. 15, 1996. Redesignated at 63 FR 26996, May 15, 1998.]



452.211-75  Effective Period of the Contract.

    As prescribed in 411.404(b), insert the following clause:

               Effective Period of the Contract (FEB 1988)

    The effective period of this contract is from ___ through ___.*

                             (End of clause)

    * Contracting Officer shall insert the appropriate dates.

[61 FR 53646, Oct. 15, 1996. Redesignated at 63 FR 26996, May 15, 1998.]



452.214-70  Award by Lot.

    As prescribed in 414.201-6, insert a provision substantially as 
follows:

                         Award by Lot (NOV 1996)

    Subject to the Section L provision FAR 52.214-10, ``Contract Award--
Sealed Bidding,'' award will generally be made to a single bidder on 
each entire lot. However, the Government reserves the right to award by 
item within any lot when the contracting officer determines that it is 
advantageous to the Government.

                           (End of provision)



452.215-71  Instructions for the Preparation of Technical and Business
Proposals.

    As prescribed in 415.209(a), insert a provision substantially as 
follows:

  Instructions for the Preparation of Technical and Business Proposals 
                               (SEP 1999)

    (a) General Instructions. Proposals submitted in response to this 
solicitation shall be furnished in the following format with the numbers 
of copies as specified below.
    (1) The proposal must include a technical proposal and business 
proposal. Each of the parts shall be separate and complete so that 
evaluation of one may be accomplished independently from evaluation of 
the other. The technical proposal must not contain reference to cost; 
however, resource information (such as data concerning labor hours and 
categories, materials, subcontracts, etc.) must be contained in the 
technical proposal so that the contractor's understanding of the 
statement of work may be evaluated.
    (2) Offerors may, at their discretion, submit alternate proposals or 
proposals which deviate from the requirement; provided, that an offeror 
also submit a proposal for performance of the work as specified in the 
statement of work. Any ``alternate'' proposal may be considered if 
overall performance would be improved or not compromised, and if it is 
in the best interest of the Government. Alternate proposals, or 
deviations from any requirement of this RFP, must be clearly identified.
    (3) The Government will evaluate proposals in accordance with the 
evaluation criteria set forth in Section M of this RFP.
    (4) Offerors shall submit their proposal(s) in the following format 
and the quantities specified:
    (a) ___* copies of the completed, signed offer (Sections A through K 
of the solicitation package)
    (b) ___* copies of the technical proposal
    (c) ___* copies of the business/cost proposal
    (b) Technical Proposal Instructions. The technical proposal will be 
used to make an evaluation and arrive at a determination as to whether 
the proposal will meet the requirements of the Government. Therefore, 
the technical proposal must present sufficient information to reflect a 
thorough understanding of the requirements and a detailed, description 
of the techniques, procedures and program for achieving the objectives 
of the specifications/statement of work. Proposals which merely 
paraphrase the requirements of the Government's specifications/ 
statement of work, or use such phrases as ``will comply'' or ``standard 
techniques will be employed'' will be considered unacceptable and will 
not be considered further. As a minimum, the proposal must clearly 
provide the following:
    (Contracting Officer shall identify in this section the minimum 
information required to evaluate each technical evaluation factor listed 
in Section M.)
    (c) Business Proposal Instructions.
    (1) Cost Proposal.
    In addition to any other requirements for cost/pricing information 
required in clause FAR 52.215-20, Requirements for Cost or Pricing Data 
or Information Other Than Cost or Pricing Data (OCT 1997), the following 
is required:
    (Contracting Officer shall identify additional information required 
if appropriate.)
    (2) Business Proposal.
    (a) Furnish financial statements for the last two years, including 
an interim statement for the current year, unless previously provided to 
the office issuing the RFP, in which case a statement as to when and 
where this information was provided may be furnished instead.

[[Page 130]]

    (b) Specify the financial capacity, working capital and other 
resources available to perform the contract without assistance from any 
outside source.
    (c) Provide the name, location, and intercompany pricing policy for 
other divisions, subsidiaries, parent company, or affiliated companies 
that will perform work or furnish materials under this contract.

                           (End of provision)

    *Contracting officer shall insert number of copies required.

[61 FR 53646, Oct. 15, 1996, as amended at 64 FR 52675, Sept. 30, 1999; 
70 FR 50, Jan. 3, 2005]



452.215-72  Amendments to Proposals.

    As prescribed in 415.209(b), insert the following provision:

                   Amendments to Proposals (FEB 1988)

    Any changes to a proposal made by the offeror after its initial 
submittal shall be accomplished by replacement pages. Changes from the 
original page shall be indicated on the outside margin by vertical lines 
adjacent to the change. The offeror shall include the date of the 
amendment on the lower right corner of the changed pages.

                           (End of provision)

[61 FR 53646, Oct. 15, 1996, as amended at 64 FR 52675, Sept. 30, 1999]



452.215-73  Post Award Conference.

    As prescribed in 415.570, insert a clause substantially as follows:

                    Post Award Conference (NOV 1996)

    A post award conference with the successful offeror is required. It 
will be scheduled within ___* days after the date of contract award. The 
conference will be held at: ___*.

                             (End of clause)

    * Contracting officer to insert number of days and location.

[61 FR 53646, Oct. 15, 1996, as amended at 64 FR 52675, Sept. 30, 1999]



452.216-70  Award Fee.

    As prescribed in 416.405, insert a clause substantially as follows:

                          Award Fee (FEB 1988)

    The amount of award fee the Contractor earns, if any, is based on a 
subjective evaluation by the Government of the quality of the 
Contractor's performance in accordance with the award fee plan. The 
Government will determine the amount of award fee every ___* months 
beginning with ___*. The Fee Determination Official (FDO) will 
unilaterally determine the amount of award fee. The FDO's determination 
will be in writing to the Contractor and is not subject to the 
``Disputes'' clause. The Government may unilaterally change the award 
fee plan at any time and will provide such changes in writing to the 
Contractor prior to the beginning of the applicable evaluation period. 
The Contractor may submit a voucher for the earned award fee. Available 
award fee not earned during one period does not carry over to subsequent 
periods.

                             (End of clause)

    * Contracting Officer shall insert appropriate number of months.
    ** Contracting Officer shall insert appropriate date.



452.216-71  Base Fee and Award Fee Proposal.

    As prescribed in 416.470, insert the following provision:

                 Base Fee and Award Proposal (FEB 1988)

    For the purpose of this solicitation, offerors shall propose a base 
fee of ___* percent of the total estimated cost proposed. The award fee 
shall not exceed ___* percent of the total estimated cost.

                           (End of provision)

    * Contracting Officer shall insert appropriate percentages.



452.216-72  Evaluation Quantities--Indefinite-Delivery Contract.

    As prescribed in 416.506(a), insert a provision substantially as 
follows:

     Evaluation Quantities--Indefinite-Delivery Contract (FEB 1988)

    To evaluate offers for award purposes, the Government will apply the 
offeror's proposed fixed-prices/rates to the estimated quantities 
included in the solicitation, and will add other direct costs if 
applicable.

                           (End of provision)



452.216-73  Minimum and Maximum Contract Amounts.

    As prescribed in 416.506(b), insert the following clause:

[[Page 131]]

             Minimum and Maximum Contract Amounts (FEB 1988)

    During the period specified in FAR clause 52.216-18, ORDERING, the 
Government shall place orders totaling a minimum of ___*, but not in 
excess of ___*.

                             (End of clause)

    * Contracting Officer shall insert appropriate quantity or dollar 
amounts.



452.216-74  Ceiling Price.

    As prescribed in 416.670, insert the following clause:

                        Ceiling Price (FEB 1988)

    The ceiling price of this contract is $___*. The Contractor shall 
not make expenditures or incur obligations in the performance of this 
contract which exceed the ceiling price specified herein, except at the 
Contractor's own risk.

                             (End of clause)

    *Contracting Officer shall insert appropriate dollar amount.



452.216-75  Letter Contract.

    As prescribed in 416.603-4, insert the following clause:

                       Letter Contract (FEB 1988)

    This contract replaces letter contract No. ___* dated ___* and all 
amendments thereto.

                             (End of clause)

    * Contracting Officer shall insert number and date.



452.219-70  Size Standard and NAICS Code Information.

    As prescribed in 419.508, insert the following provision:

           Size Standard and NAICS Code Information (SEP 2001)

    The North American Industrial Classification System Code(s) and 
business size standard(s) describing the products and/or services to be 
acquired under this solicitation are listed below:

Contract line item(s): ___* NAICS Code ___* Size Standard ___*

                           (End of provision)

    * Contracting Officer shall insert the appropriate data for each 
contract line item in the solicitation. The data entry line may be 
duplicated as required to describe all of the contract line items or 
sub-items.

[61 FR 53646, Oct. 15, 1996, as amended at 66 FR 49317, Sept. 27, 2001]



452.224-70  Confidentiality of Information.

    As prescribed in 424.104, insert a clause substantially as follows:

                Confidentiality of Information (FEB 1988)

    (a) Confidential information, as used in this clause, means--
    (1) information or data of a personal nature, proprietary about an 
individual, or (2) information or data submitted by or pertaining to an 
organization.
    (b) In addition to the types of confidential information described 
in (a)(1) and (2) above, information which might require special 
consideration with regard to the timing of its disclosure may derive 
from studies or research, during which public disclosure of primarily 
invalidated findings could create an erroneous conclusion which might 
threaten public health or safety if acted upon.
    (c) The Contracting Officer and the Contractor may, by mutual 
consent, identify elsewhere in this contract specific information and/or 
categories of information which the Government will furnish to the 
Contractor or that the Contractor is expected to generate which is 
confidential. Similarly, the Contracting Officer and the Contractor may, 
by mutual consent, identify such confidential information from time to 
time during the performance of the contract. Failure to agree will be 
settled pursuant to the ``Disputes'' clause.
    (d) If it is established that information to be utilized under this 
contract is subject to the Privacy Act, the Contractor will follow the 
rules and procedures of disclosure set forth in the Privacy Act of 1974, 
5 U.S.C. 552a, and implementing regulations and policies, with respect 
to systems of records determined to be subject to the Privacy Act.
    (e) Confidential information, as defined in (a)(1) and (2) above, 
shall not be disclosed without the prior written consent of the 
individual, institution or organization.
    (f) Written advance notice of at least 45 days will be provided to 
the Contracting Officer of the Contractor's intent to release findings 
of studies or research, which have the possibility of adverse effects on 
the public or the Federal agency, as described in (b) above. If the 
Contracting Officer does not pose any objections in writing within the 
45 day period, the Contractor may proceed with disclosure. Disagreements 
not resolved by the Contractor and Contracting Officer will be settled 
pursuant to the ``Disputes'' clause.

[[Page 132]]

    (g) Whenever the Contractor is uncertain with regard to the proper 
handling of material under the contract, or if the material in question 
is subject to the Privacy Act or is confidential information subject to 
the provisions of this clause, the Contractor shall obtain a written 
determination from the Contracting Officer prior to any release, 
disclosure, dissemination, or publication.
    (h) The provisions of paragraph (e) of this clause shall not apply 
when the information is subject to conflicting or overlapping provisions 
in other Federal, State or local laws.

                             (End of clause)



452.226-70--452.226-72  [Reserved]



452.228-70  Alternative Forms of Security.

    As prescribed in 428.204-2, insert the following provision:

                Alternative Forms of Security (NOV 1996)

    If furnished as security, money orders, drafts, cashiers checks, or 
certified checks shall be drawn payable to: ___*.

                           (End of provision)

    * Contracting Officer shall insert the name of the USDA contracting 
activity.



452.228-71  Insurance Coverage.

    As prescribed in 428.310, insert the following clause:

                      Insurance Coverage (NOV 1996)

    Pursuant to FAR clause 52.228-5, Insurance-Work on a Government 
Installation, the Contractor will be required to present evidence to 
show, as a minimum, the amounts of insurance coverage indicated below:
    (a) Workers Compensation and Employer's Liability. The Contractor is 
required to comply with 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 a Contractor's commercial 
operations that it would not be practical to require this coverage. 
Employer's liability coverage of at least $100,000 shall be required, 
except in States with exclusive or monopolistic funds that do not permit 
worker's compensation to be written by private carriers.
    (b) General Liability. The Contractor shall have bodily injury 
liability insurance coverage written on a comprehensive form of policy 
of at least $500,000 per occurrence.
    (c) Automobile Liability. The Contractor shall have automobile 
liability insurance written on a comprehensive form of policy. The 
policy shall provide for bodily injury and property damage liability 
covering the operation of all automobiles used in connection with 
performing the contract. Policies covering automobiles operated in the 
United States shall provide coverage of at least $200,000 per person and 
$500,000 per occurrence for bodily injury and $20,000 per occurrence for 
property damage or loss.
    (d) Aircraft Public and Passenger Liability. When aircraft are used 
in connection with performing the contract, the Contractor shall have 
aircraft public and passenger liability insurance. Coverage shall be at 
least $200,000 per person and $500,000 per occurrence for bodily injury, 
other than passenger injury. Coverage for passenger injury shall be at 
least $200,000 multiplied by the number of seats or passengers, 
whichever is greater.

                             (End of clause)

    Alternate I (NOV 1996). As prescribed in 428.310, substitute the 
following paragraph (b), when additionally the contractor must have 
property damage liability coverage:

    (b) General Liability. (1) The Contractor shall have bodily injury 
liability coverage written on a comprehensive form of policy of at least 
$500,000 per occurrence.
    (2) The Contractor shall have property damage liability insurance 
shall be required in the amount of ___* per occurrence.
    * Contracting Officer shall insert amount required.



452.232-70  Reimbursement for Bond Premiums--Fixed-Price Construction
Contracts.

    As prescribed in 432.111, insert the following clause:

Reimbursement for Bond Premiums--Fixed-Price Construction Contracts (NOV 
                                  1996)

    The Contract Price includes the total amount for premiums that the 
Contractor attributes to the furnishing of performance and payment bonds 
required by the contract. Reimbursement for bond premiums under the 
clause at FAR 52.232-5, Payments Under Fixed-Price Construction, shall 
not cover any amount therefor not included in the contract price.

                             (End of clause)

[61 FR 53646, Oct. 15, 1996. Redesignated at 63 FR 26996, May 15, 1998, 
as amended at 70 FR 50, Jan. 3, 2005]

[[Page 133]]



452.236-70  Additive or Deductive Items.

    As prescribed in 436.205, insert the following provision:

                 Additive or Deductive Items (FEB 1988)

    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 the 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 such funds for all 
bidders, it shall be skipped and the next subsequent additive bid item 
in a lower amount shall be added if award therein can be made within 
such funds. For example, when the amount available is $100,000 and a 
bidder's base bid and four successive additives are $85,000, $10,000, 
$8,000, $6,000, and $4,000, 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 of each 
of them would cause the aggregate bid to exceed $100,000. In any case 
all bids shall be evaluated on the basis of the same additive or 
deductive bid items, determined as above provided. The listed order of 
priority need be followed only for determining the low bidder. After 
determination of the low bidder as stated, award in the best interests 
of the Government may be made on the selected first or base bid item and 
any combination of additive or deductive items for which funds are 
determined to be available at the time of the award, provided that award 
on such 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 clause)



452.236-71  Prohibition Against the Use of Lead-Based Paint.

    As prescribed in 436.571, insert the following clause:

       Prohibition Against the Use of Lead-Based Paint (NOV 1996)

    Neither the Contractor nor any subcontractor performing under this 
contract shall use paints containing more then 0.06 of 1 percent lead by 
weight (calculated as lead metal) in the total nonvolatile content of 
the paint, or the equivalent measure of lead in the dried film of paint 
already applied, or both.

                             (End of clause)



452.236-72  Use of Premises.

    As prescribed in 436.572, insert the following clause:

                       Use of Premises (NOV 1996)

    (a) Before any camp, quarry, borrow pit, storage, detour, or bypass 
site, other than shown on the drawings, is opened or operated on USDA 
land or lands administered by the USDA, the Contractor shall obtain 
written permission from the Contracting Officer. A camp is interpreted 
to include a campsite or trailer parking area of any employee working on 
the project for the Contractor.
    (b) Unless excepted elsewhere in the contract, the Contractor shall 
(i) provide and maintain sanitation facilities for the work force at the 
site and (ii) dispose of solid waste in accordance with applicable 
Federal, State and local regulations.

                             (End of clause)



452.236-73  Archaeological or Historic Sites.

    As prescribed in 436.573, insert the following clause:

               Archaeological or Historic Sites (FEB 1988)

    If a previously unidentified archaeological or historic site(s) is 
encountered, the Contractor shall discontinue work in the general area 
of the site(s) and notify the Contracting Officer immediately.

                             (End of clause)



452.236-74  Control of Erosion, Sedimentation, and Pollution.

    As prescribed in 436.574, insert the following clause:

       Control of Erosion, Sedimentation, and Pollution (NOV 1996)

    (a) Operations shall be scheduled and conducted to minimize erosion 
of soils and to prevent silting and muddying of streams, rivers, 
irrigation systems, and impoundments (lakes, reservoirs, etc.).
    (b) Pollutants such as fuels, lubricants, bitumens, raw sewage, and 
other harmful materials shall not be discharged on the ground; into or 
nearby rivers, streams, or impoundments; or into natural or man-made 
channels. Wash water or waste from concrete or aggregate operations 
shall not be allowed to enter live streams prior to treatment by 
filtration, settling, or other means sufficient to reduce the sediment 
content to not more than that of the stream into which it is discharged.

[[Page 134]]

    (c) Mechanized equipment shall not be operated in flowing streams 
without written approval by the Contracting Officer.

                             (End of clause)



452.236-75  Maximum Workweek--Construction Schedule.

    As prescribed in 436.575, insert the following clause:

           Maximum Workweek--Construction Schedule (NOV 1996)

    Within __ calendar days after receipt of a written request from the 
Contracting Officer, the Contractor must submit the following in writing 
for approval:
    (a) A schedule as required by FAR clause 52.236-15, Schedules for 
Construction Contracts, and
    (b) The hours (including the daily starting and stopping times) and 
days of the week the Contractor proposes to carry out the work.
    The maximum workweek that will be approved is __*.

                             (End of clause)

    * Contracting Officer shall insert appropriate number of days and 
hours and/or days.



452.236-76  Samples and Certificates.

    As prescribed in 436.576, insert the following clause:

                   Samples and Certificates (FEB 1988)

    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 with 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)



452.236-77  Emergency Response.

    As prescribed in 436.577, the following clause may be used in Forest 
Service construction contracts:

                      Emergency Response (NOV 1996)

    (a) Contractor's Responsibility for Fire Fighting. (1) The 
Contractor, under the provisions of FAR clause 52.236-9, Protection of 
Existing Vegetation, Structures, Equipment, Utilities, and Improvements, 
shall immediately extinguish all fires on the work site other than those 
fires in use as a part of the work.
    (2) The Contractor may be held liable for all damages and for all 
costs incurred by the Government for labor, subsistence, equipment, 
supplies, and transportation deemed necessary to control or suppress a 
fire set or caused by the Contractor or the Contractor's agents or 
employees.
    (b) Contractor's Responsibility for Notification in Case of Fire. 
The Contractor shall immediately notify the Government of any fires 
sighted on or in the vicinity of the work site.
    (c) Contractor's Responsibility for Responding to Emergencies. When 
directed by the Contracting Officer, the Contractor shall allow the 
Government to temporarily use employees and equipment from the work site 
for emergency work (anticipated to be restricted to fire fighting). An 
equitable adjustment for the temporary use of employees and equipment 
will be made under the Changes clause, FAR 52.243-4.

                             (End of clause)



452.236-78  Fire Suppression and Liability.

    As prescribed in section 436.578, the following clause shall be 
inserted in Intergrated Resource Service Contracts (IRSC) awarded for 
the Forest Service.

                  Fire Suppression and Liability Clause

    (a) Contractor's Responsibility for Fire Fighting. The Contractor, 
under the provisions of FAR clause at 52.236-9, Protection of Existing 
Vegetation, Structures, Equipment, Utilities, and Improvements, shall 
immediately extinguish all fires on the work site other than those fires 
in use as a part of the work. The Contractor may be held liable for all 
damages and for all costs incurred by the Government for labor, 
subsistence, equipment, supplies, and transportation deemed necessary to 
control or suppress a fire set or caused by the Contractor or the 
Contractor's agents or employees subject to the following fire 
classifications listed in subsection (b).
    (b) Fire Suppression Costs. The Contractor's obligations for cost of 
fire suppression vary according to three classifications of fires as 
follows:
    (1) Operations Fire. An ``operations fire'' is a fire caused by the 
Contractor's operations other than a negligent fire. The Contractor 
agrees to reimburse Forest Service for such cost for each operations 
fire, subject to a

[[Page 135]]

maximum dollar amount of [Contracting Officer insert amount]. The cost 
of the Contractor's actions, supplies, and equipment on any such fire, 
or otherwise provided at the request of Forest Service, shall be 
credited toward such maximum. If the Contractor's actual cost exceeds 
contractor's obligation stated above, Forest Service shall reimburse the 
contractor for the excess.
    (2) Negligent Fire. A ``negligent fire'' is a fire caused by the 
negligence or fault of the Contractor's operations including, but not 
limited to, one caused by smoking by persons engaged in the Contractor's 
operations during the course of their employment, or during rest or 
lunch periods; or if the Contractor's failure to comply with 
requirements under this contract results in a fire starting, or permits 
a fire to spread. Damages and the cost of suppressing negligent fires 
shall be borne by the Contractor.
    (3) Other Fires on Contract Area. Forest Service shall pay the 
Contractor, at firefighting rates common in the area or at prior agreed 
rates, for equipment or personnel furnished by the Contractor at the 
request of Forest Service, on any fire on contract area other than an 
operations fire or a negligent fire.
    (c) Contractor's Responsibility for Notification in Case of Fire. 
The Contractor shall immediately notify the Government of any fires 
sighted on or in the vicinity of the work site.
    (d) Contractor's Responsibility for Responding to Emergencies. When 
directed by the Contracting Officer, the Contractor shall temporarily 
redirect employees and equipment from the work site for emergency work 
(anticipated to be restricted to firefighting). This is considered to be 
within the general scope of the contract. An equitable adjustment for 
any such redirection of employees and equipment will be made under the 
FAR clause at 52.243-4, Changes.
    (e) Performance by the Contractor. Where the Contractor's employees, 
agents, contractors, subcontractors, or their employees or agents 
perform the Contractor's operations in connection with fire 
responsibilities, the Contractor's obligations shall be the same as if 
performance was by Contractor.
    (f) State Law. The Contractor shall not be relieved by the terms of 
this contract of any liability to the United States for fire suppression 
costs recovered in an action based on State law, except for such costs 
resulting from operations fires. Amounts due to the Contractor for 
firefighting expenditures on operations fires shall not be withheld 
pending settlement of any such claim or action based on State law.

                             (End of Clause)

[81 FR 7480, Feb. 12, 2016]



452.236-79  Opted Timber Sale Road Requirements.

    As prescribed in 436.579, insert the following clause:

             Opted Timber Sale Road Requirements (NOV 1996)

    This contract is for the construction of timber sale road(s) which a 
timber purchaser has opted to have the Government construct. The 
Government is obligated to make these roads available to the timber 
purchaser by ___*. Failure to make these roads available by this date 
could result in Government liability for delay to the timber purchaser 
for which the Contractor might become liable should the Contractor fail 
to complete this contract within the specified and allowed contract 
time.

                             (End of clause)

    * Contracting Officer shall insert appropriate date.



452.236-80  Firms Ineligible for Award--Construction.

    As prescribed in 436.670, insert the following clause:

           Firms Ineligible for Award--Construction (NOV 1996)

    The firm(s) and its subsidiaries or affiliates signatory to this 
contract shall be ineligible for award of any construction contract 
resulting from the design work performed under this contract.

                             (End of clause)



452.237-70  Loss, Damage, Destruction or Repair.

    (a) As prescribed in 437.110(a), insert a clause substantially as 
follows:

             Loss, Damage, Destruction or Repair (FEB 1988)

    (a) For equipment furnished under this contract without operator, 
the Government will assume liability for any loss, damage or destruction 
of such equipment, not to exceed a total of $___* except that no 
reimbursement will be made for loss, damage or destruction due to (1) 
ordinary wear or tear, (2) mechanical failure, or (3) the fault or 
negligence of the Contractor or the Contractor's agents or employees.
    (b) For equipment furnished under this contract with operator, the 
Government shall not be liable for any loss, damage or destruction of 
such equipment, except for loss, damage or destruction resulting from 
the negligent or wrongful act(s) of Government

[[Page 136]]

employee(s) while acting within the scope of their employment.
    (c) All repairs to equipment furnished under this contract shall be 
made by the Contractor and reimbursement, if any, shall be determined in 
accordance with (a) or (b) above. Repairs shall be made promptly and 
equipment returned to use within ___** hours. In lieu of repairing 
equipment, the Contractor may furnish similar replacement equipment 
within the time specified. The Contractor may authorize the Government 
to make repairs upon the request of the Contracting Officer. In such 
case, the Contractor will be billed for labor and parts costs.

                             (End of clause)

    * Contracting Officer shall insert amount available in current funds 
to cover potential liability.
    ** Contracting Officer shall insert appropriate number of hours.



452.237-71  Pre-Bid/Pre-Proposal Conference.

    As prescribed in 437.110(b), insert a provision substantially as 
follows:

               Pre-Bid/Pre-Proposal Conference (FEB 1988)

    (a) The Government is planning a pre-bid/pre-proposal conference, 
during which potential offerors may obtain a better understanding of the 
work required.
    (b) Offerors are encouraged to submit all questions in writing at 
least five (5) days prior to the conference. Questions will be 
considered at any time prior to or during the conference; however, 
offerors will be asked to confirm verbal questions in writing. 
Subsequent to the conference, an amendment to the solicitation 
containing an abstract of the questions and answers, and a list of 
attendees, will be disseminated.
    (c) In order to facilitate conference preparations, it is requested 
that the person named on the Standard Form 33 of this solicitation be 
contacted and advised of the number of persons who will attend.
    (d) The Government assumes no responsibility for any expense 
incurred by an offeror prior to contract award.
    (e) Offerors are cautioned that, notwithstanding any remarks or 
clarifications given at the conference, all terms and conditions of the 
solicitation remain unchanged unless they are changed by amendment to 
the solicitation. If the answers to conference questions, or any 
solicitation amendment, create ambiguities, it is the responsibility of 
the offeror to seek clarification prior to submitting an offer.
    (f) The conference will be held:

Date:___________________________________________________________________
Time:___________________________________________________________________
Location:_______________________________________________________________

                             (End of clause)



452.237-73  Equipment Inspection Visit.

    As prescribed in 437.110(c), insert the following provision:

                  Equipment Inspection Visit (FEB 1988)

    Offerors are urged and expected to inspect the equipment on which 
maintenance or repairs are to be performed and to satisfy themselves 
regarding all conditions that may affect the cost of contract 
performance, to the extent that the information is reasonably 
obtainable. In no event shall failure to inspect the equipment 
constitute grounds for a claim after contract award.
    Offerors are invited to inspect the ___* at ___* by telephoning ___* 
on ___* for an appointment.

                             (End of clause)

    * Contracting Officer shall insert appropriate data.



452.237-74  Key Personnel.

    As prescribed in 437.110(d), insert a clause substantially as 
follows:

                        Key Personnel (FEB 1988)

    (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) below. 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. The 
contract will be modified to reflect any approved changes of key 
personnel.

[[Page 137]]

                             (End of clause)



452.237-75  Restrictions Against Disclosure.

    As prescribed in 437.110(e), insert a clause substantially as 
follows:

               Restrictions Against Disclosure (FEB 1988)

    (a) The Contractor agrees, in the performance of this contract, to 
keep all information contained in source documents or other media 
furnished by the Government in the strictest confidence. The Contractor 
also agrees not to publish or otherwise divulge such information in 
whole or in part in any manner or form, or to authorize or permit others 
to do so, taking such reasonable measures as are necessary to restrict 
access to such information while in the Contractor's possession, to 
those employees needing such information to perform the work provided 
herein, i.e., on a ``need to know'' basis. The Contractor agrees to 
immediately notify in writing, the Contracting Officer, named herein, in 
the event that the Contractor determines or has reason to suspect a 
breach of this requirement.
    (b) The Contractor agrees not to disclose any information concerning 
the work under this contract to any persons or individual unless prior 
written approval is obtained from the Contracting Officer. The 
Contractor agrees to insert the substance of this clause in any 
consultant agreement or subcontract hereunder.

                             (End of clause)



452.237-76  Progress Reporting.

    As prescribed in 437.270(a), insert a clause substantially as 
follows:

                      Progress Reporting (FEB 1988)

    The Contractor shall submit a progress report ___*, covering work 
accomplished during that period of the contract performance. The 
progress report shall be brief and factual and shall be prepared in 
accordance with the following format:
    (a) A cover page containing:
    (1) Contract number and title;
    (2) Type of report, sequence number of report, and period of 
performance being reported;
    (3) Contractor's name and address;
    (4) Author(s); and
    (5) Date of report.
    (b) Section I--An introduction covering the purpose and scope of the 
contract effort. This shall be limited to one paragraph in all but the 
first and final month's narrative.
    (c) Section II--A description of overall progress plus a separate 
description of each task or other logical segment of work on which 
effort was expended during the report period. The description shall 
include pertinent data and/or graphs in sufficient detail to explain any 
significant results achieved.
    (d) Section III--A description of current technical or substantive 
performance, and any problem(s) which may impede performance along with 
proposed corrective action.
    (e) Section IV--A planning schedule shall be included with the first 
progress report for all assigned tasks required under the contract, 
along with the estimated starting and completion dates for each task. 
The planning schedule shall be updated and submitted with each 
subsequent technical progress report, including an explanation of any 
difference between actual progress and planned progress, why the 
differences have occurred, and--if behind planned progress--what 
corrective steps are planned.
    (f) Section V--If applicable, financial information shall be 
submitted for each major task or line item cost.
    Data shall include:
    (1) The total estimated cost budgeted (fee excluded).
    (2) The estimated cost expended during the current reporting period.
    (3) Identification of direct labor hours of prime contractor and 
subcontractor(s) and/or consultant(s), if applicable.
    (4) Total project to-date expenditures.
    (5) Total remaining funds.

                             (End of clause)

    * Contracting Officer shall insert frequency of reporting 
requirement.



452.237-78  Contracts with Consulting Firms for Services.

    As prescribed in 437.270(b), insert a clause substantially as 
follows:

         Contracts with Consulting Firms for Services (FEB 1988)

    Offerors are specifically cautioned that any firm(s) receiving a 
contract award to provide the services described herein will be 
prohibited from competing for or receiving a follow-on contract to 
perform ___.*

                             (End of clause)

    * Contracting Officer shall insert the appropriate information.



452.246-70  Inspection and Acceptance.

    As prescribed in 446.370, insert the following clause:

                  Inspection and Acceptance (FEB 1988)

    (a) The Contracting Officer or the Contracting Officer's duly 
authorized representative will inspect and accept the supplies

[[Page 138]]

and/or services to be provided under this contract.
    (b) Inspection and acceptance will be performed at: ___.*

                             (End of clause)

    * Contracting Officer shall insert appropriate identifying data.

    Alternate I (FEB 1988). As prescribed in 446.370, substitute a 
paragraph (b) and add a paragraph (c):

    (b) Inspection will be performed at: ___.*
    (c) Acceptance will be performed at: ___.*

                             (End of clause)



452.247-70  Delivery Location.

    As prescribed in 447.302, insert a clause substantially as follows:

                      Delivery Location (FEB 1988)

    Shipment of deliverable items, other than reports, shall be to: 
___.*

                             (End of clause)

    * Contracting Officer shall insert appropriate identifying data.



452.247-71  Marking Deliverables.

    As prescribed in 447.305-10(a), insert a clause substantially as 
follows:

                     Marking Deliverables (FEB 1988)

    (a) The contract number shall be placed on or adjacent to all 
exterior mailing or shipping labels of deliverable items called for by 
the contract.
    (b) Mark deliverables, except reports, for: ___.*

                             (End of clause)

    * Contracting Officer shall insert the appropriate information.



452.247-72  Packing for Domestic Shipment.

    As prescribed in 447.305-10(b), insert the following clause:

                Packing for Domestic Shipment (FEB 1988)

    Material shall be packed for shipment in such a manner that will 
insure acceptance by common carriers and safe delivery at destination. 
Containers and closures shall comply with the Interstate Commerce 
Commission regulations, Uniform Freight Classification Rules, or 
regulations of other carriers as applicable to the mode of 
transportation.

                             (End of clause)



452.247-73  Packing for Overseas Shipment.

    As prescribed in 447.305-10(c), insert the following clause:

                Packing for Overseas Shipment (FEB 1988)

    Supplies shall be packed for overseas shipment in accordance with 
the best commercial export practice suitable for water movement to 
arrive undamaged at ultimate destination.

                             (End of clause)



PART 453_FORMS--Table of Contents



Sec.
453.000  Scope of part.

                          Subpart 453.1_General

453.103  Exceptions.
453.108  Recommendations concerning forms.

                   Subpart 453.2_Prescription of Forms

453.200  Scope of subpart.
453.213  Simplified Acquisition and other simplified purchase procedures 
          (AD-838).
453.270  Request for contract action (AD-700).

                  Subpart 453.3_Illustrations of Forms

453.300  Scope of subpart.
453.303  Agency forms.
453.303-700  Procurement Request (AD-700).
453.303-838  Purchase Order (AD-838).

    Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).

    Source: 61 FR 53646, Oct. 15, 1996, unless otherwise noted.



453.000  Scope of part.

    This part:
    (a) Prescribes USDA (AD) forms for use in acquisition,
    (b) Contains requirements and information generally applicable to AD 
forms and forms prescribed by FAR part 53, and
    (c) Illustrates AD forms.



                          Subpart 453.1_General



453.103  Exceptions.

    (a) The contracting officer shall submit a request for exceptions to 
forms prescribed in FAR part 53 through the head of the contracting 
activity (HCA)

[[Page 139]]

to the Senior Procurement Executive (SPE) for referral to the GSA.
    (b) Requests for exceptions to AD forms prescribed in part 453 shall 
be handled as individual or class deviations, as appropriate (see 
subpart 401.4).



453.108  Recommendations concerning forms.

    Contracting officers shall submit recommendations for new forms or 
to revise, eliminate, or consolidate forms prescribed by FAR part 53 and 
part 453 through the HCA to the SPE.



                   Subpart 453.2_Prescription of Forms



453.200  Scope of subpart.

    This subpart prescribes USDA (AD) forms for use in acquisition. 
Consistent with the approach used in FAR subpart 53.2, this subpart is 
arranged by subject matter, in the same order as, and keyed to, the 
parts of the AGAR in which the form usage requirements are addressed.



453.213  Simplified Acquisition and other simplified purchase procedures (AD-838).

    Form AD-838, Purchase Order, is prescribed for use as a Simplified 
Acquisition Procedure/delivery order/task order document in lieu of OF 
347 and OF 348, except that use of the OF 347 and OF 348 is authorized 
when utilizing the USDA Integrated Acquisition System (See 413.307).

[70 FR 50, Jan. 3, 2005]



453.270  Request for contract action (AD-700).

    Form AD-700, Procurement Request, may be used as a contract 
requisition document by contracting activities in USDA.



                  Subpart 453.3_Illustrations of Forms



453.300  Scope of subpart.

    This subpart contains illustrations of USDA (AD) forms for use in 
acquisitions. Forms are not illustrated in the Federal Register or Code 
of Federal Regulations. Individual copies may be obtained from any USDA 
contracting activity or the office of the SPE.



453.303  Agency forms.



453.303-700  Procurement Request (AD-700).



453.303-838  Purchase Order (AD-838).

[[Page 140]]



                  SUBCHAPTER I_FOOD ASSISTANCE PROGRAMS





PART 470_COMMODITY ACQUISITIONS--Table of Contents



Sec.
470.000  Scope of part.
470.101  Definitions.
470.102  Policy.
470.103  United States origin of agricultural products.
470.200  [Reserved]
470.201  Acquisition of commodities and freight shipment for Foreign 
          Agricultural Service programs.
470.202  Acquisition of commodities for United States Agency for 
          International Development (USAID) programs.
470.203  Cargo preference.

    Authority: 5 U.S.C. 301; 7 U.S.C. 1691 through 1726b; 1731 through 
1736g-3; 1736o; 1736o-1; 40 U.S.C. 121(c); 46 U.S.C. 53305, 55314 and 
55316.

    Source: 74 FR 13079, Mar. 26, 2009, unless otherwise noted.



470.000  Scope of part.

    This part sets forth the policies, procedures and requirements 
governing the procurement of agricultural commodities by the Department 
of Agriculture for use:
    (a) Under any domestic feeding and assistance program administered 
by the Food and Nutrition Service; and
    (b) Under Title II of the Food for Peace Act (7 U.S.C. 1721 et 
seq.); the Food for Progress Act of 1985; the McGovern-Dole 
International Food for Education and Child Nutrition Program; and any 
other international food assistance program.



470.101  Definitions.

    The following definitions are applicable to this part:
    Commingled product means grains, oilseeds, rice, pulses, other 
similar commodities and the products of such commodities, when such 
commodity or product is normally stored on a commingled basis in such a 
manner that the commodity or product produced in the United States 
cannot be readily distinguished from a commodity or product not produced 
in the United States.
    Department means the Department of Agriculture.
    Food and Nutrition Service means such agency located within the 
Department of Agriculture.
    Foreign Agriculture Service means such agency located within the 
Department of Agriculture.
    Free alongside ship (f.a.s.) ( * * named port of shipment) means a 
term of sale which means the seller fulfills its obligation to deliver 
when the goods have been placed alongside the vessel on the quay or in 
lighters at the named port of shipment. The buyer bears all costs and 
risks of loss of or damage to the goods from that moment.
    Free carrier (FCA) ( * * named place) means a term of sale which 
means the seller fulfills its obligation when the seller has handed over 
the goods, cleared for export, into the charge of the carrier named by 
the buyer at the named place or point. If no precise point is indicated 
by the buyer, the seller may choose, within the place or range 
stipulated, where the carrier should take the goods into their charge.
    Grantee organization means an organization which will receive 
commodities from the United States Agency for International Development 
under Title II of the Food for Peace Act (7 U.S.C. 1721 et seq.) or from 
the Foreign Agricultural Service under the Food for Progress Act of 
1985; the McGovern-Dole International Food for Education and Child 
Nutrition Program; and any other international food assistance program.
    Ingredient means spices, vitamins, micronutrients, desiccants, and 
preservatives when added to an agricultural commodity product.
    Last contract lay day means the last day specified in an ocean 
freight contract by which the carriage of goods must start for contract 
performance.
    Lowest landed cost means, as authorized by 46 U.S.C. 55314(c), with 
respect to an agricultural product acquired under this part the lowest 
aggregate cost for the acquisition of such product and the shipment of 
such product to a foreign destination.
    Multi-port voyage charter means the charter of an ocean carrier in 
which

[[Page 141]]

the carrier will stop at two or more ports to discharge cargo.



470.102  Policy.

    (a) Policy. It is the policy of the Department to follow the 
policies and procedures set forth in the Federal Acquisition Regulation 
(FAR) as supplemented by the Agriculture Acquisition Regulation, 
including this part, in the procurement of agricultural commodities and 
products of agricultural commodities that are used in domestic feeding 
and international feeding and development programs.
    (b) Electronic submission. To the maximum extent possible, the use 
of electronic submission of solicitation-related documents shall be used 
with respect to the acquisition of agricultural commodities and related 
freight; however, to the extent that a solicitation allows for the 
submission of written information in addition to information in an 
electronic format and there is a discrepancy in such submissions, the 
information submitted in a written format shall prevail unless the 
electronic submission states that a specific existing written term is 
superseded by the electronic submission.
    (c) Freight. With respect to the acquisition of freight for the 
shipment of agricultural commodities and products of agricultural 
commodities, the provisions of the FAR, including part 47, shall be 
utilized and various types of services to be obtained may include multi-
trip voyage charters.



470.103  United States origin of agricultural products.

    (a) Products of United States origin. As provided by 7 U.S.C. 
1732(2) and 1736o-1(a) commodities and the products of agricultural 
commodities acquired for use in international feeding and development 
programs shall be products of United States origin. A product shall not 
be considered to be a product of the United States if it contains any 
ingredient that is not produced in the United States if that ingredient 
is:
    (1) Produced in the United States; and
    (2) Commercially available in the United States at fair and 
reasonable prices from domestic sources.
    (b) Use by the Food and Nutrition Service. Commodities and the 
products of agricultural commodities acquired for use by the Food and 
Nutrition Service shall be a product of the United States, except as may 
otherwise be required by law, and shall be considered to be such a 
product if it is grown, processed, and otherwise prepared for sale or 
distribution exclusively in the United States except with respect to 
ingredients. Ingredients from non-domestic sources will be allowed to be 
utilized as a United States product if such ingredients are not 
otherwise:
    (1) Produced in the United States; and
    (2) Commercially available in the United States at fair and 
reasonable prices from domestic sources.
    (c) Commingled product. (1) Except as provided in paragraph (c)(2) 
of this section, a commingled product shall be considered to be a 
product of the United States if the offeror can establish that the 
offeror has in inventory at the time the contract for the commodity or 
product is awarded to the offeror, or obtains during the contract 
performance period specified in the solicitation, or a combination 
thereof, a sufficient quantity of the commodity or product that was 
produced in the United States to fulfill the contract being awarded, and 
all unfulfilled contracts that the offeror entered into to provide such 
commingled product to the United States.
    (2) To the extent the Department has determined a commodity is one 
that is generally commingled, but is also one which can be readily 
stored on an identity preserved basis with respect to its country of 
origin, the Department may require that the commodity procured by the 
Department shall be of 100 percent United States origin.
    (d) Product derived from animals. With respect to the procurement of 
products derived from animals, the solicitation will set forth any 
specific requirement that is applicable to the country in which the 
animal was bred, raised, slaughtered or further processed.

[[Page 142]]



470.200  [Reserved]



470.201  Acquisition of commodities and freight shipment for Foreign
Agricultural Service programs.

    (a) Lowest landed cost and delivery considerations. (1) Except as 
provided in paragraphs (a)(3) and (4) of this section, in contracts for 
the Foreign Agricultural Service for commodities and related freight 
shipment for delivery to foreign destinations, the contracting officer 
shall consider the lowest landed cost of delivering the commodity to the 
intended destination. This lowest landed cost determination will be 
calculated on the basis of rates and service for that portion of the 
commodities being purchased that is determined is necessary and 
practicable to meet 46 U.S.C. 55314(c)(3) and cargo preference 
requirements and on an overall (foreign and U.S. flag) basis for the 
remaining portion of the commodities being procured and the additional 
factors set forth in this section. Accordingly, the solicitations issued 
with respect to a commodity procurement or a related freight procurement 
will specify that in the event an offer submitted by a party is the 
lowest offered price, the contracting officer reserves the right to 
reject such offer if the acceptance of another offer for the commodity 
or related freight, when combined with other offers for commodities or 
related freight, results in a lower landed cost to the Department.
    (2) The Department may contact any port prior to award to determine 
the port's cargo handling capabilities, including the adequacy of the 
port to receive, accumulate, handle, store, and protect the cargo. 
Factors considered in this determination may include, but not be limited 
to, the adequacy of building structures, proper ventilation, freedom 
from insects and rodents, cleanliness, and overall good housekeeping and 
warehousing practices. The Department may consider the use of another 
coastal range or port if a situation exists at a port that may adversely 
affect the ability of the Department to have the commodity delivered in 
a safe and timely manner. Such situations include:
    (i) A port is congested;
    (ii) Port facilities are overloaded;
    (iii) A vessel would not be able to dock and load cargo without 
delay;
    (iv) Labor disputes or lack of labor may prohibit the loading of the 
cargo onboard a vessel in a timely manner; or
    (v) Other similar situation that may adversely affect the ability of 
the Department to have the commodity delivered in a timely manner.
    (3) Use of other than lowest landed cost. In order to ensure that 
commodities are delivered in a timely fashion to foreign destinations 
and without damage, the contracting officer may award an acquisition 
without regard to the lowest land cost process set forth in paragraph 
(a)(1) of this section if:
    (i) The solicitation specifies that the lowest land cost process 
will not be followed in the completion of the contract; or
    (ii) After issuance of the solicitation, it is determined that:
    (A) Internal strife at the foreign destination or urgent 
humanitarian conditions threatens the lives of persons at the foreign 
destination;
    (B) A specific port's cargo handling capabilities (including the 
adequacy of the port to receive, accumulate, handle, store, and protect 
commodities) and other similar factors may adversely affect the delivery 
of such commodities through damage or untimely delivery. Such similar 
factors include, but are not limited to: port congestion; overloaded 
facilities at the port; vessels not being able to dock and load cargo 
without delay due to conditions at the port; labor disputes or lack of 
labor may prohibit the loading of the cargo onboard a vessel in a timely 
manner; and the existence of inadequate or unsanitary warehouse and 
other supporting facilities;
    (C) The total transit time of a carrier, as it relates to a final 
delivery date at the foreign destination may impair the timely delivery 
of the commodity;
    (D) Other similar situations arise that materially affect the 
administration of the program for which the commodity or freight is 
being procured; or
    (E) The contracting officer determines that extenuating 
circumstances preclude awards on the basis of lowest-landed cost, or 
that efficiency and cost-savings justify use of types of ocean

[[Page 143]]

service that would not involve an analysis of freight. However, in all 
such cases, commodities would be transported in compliance with cargo 
preference requirements. Examples of extenuating circumstances are 
events such as internal strife at the foreign destination or urgent 
humanitarian conditions threatening the lives of persons at the foreign 
destination. Other types of services may include, but are not limited 
to, multi-trip voyage charters, indefinite delivery/indefinite quantity 
(IDIQ), delivery cost and freight (C & F), delivery cost insurance and 
freight (CIF), and indexed ocean freight costs.
    (4) If a contracting officer determines that action may be 
appropriate under paragraph (a)(3) of this section, prior to the 
acceptance of any applicable offer, the contracting officer will provide 
to the Head of Contracting Activity Designee a written request to obtain 
commodities and freight in a manner other than on a lowest landed cost 
basis consistent with Title 48 Code of Federal Regulations. This request 
shall include a statement of the reasons for not using lowest landed 
cost basis. The Head of the Contracting Activity Designee, or the 
designee one level above the contracting officer, may either accept or 
reject this request and shall document this determination.
    (b) Multiple offers or delivery points. If more than one offer for 
the sale of commodities is received or more than one delivery point has 
been designated in such offers, in order to achieve a combination of a 
freight rate and commodity award that produces the lowest landed cost 
for the delivery of the commodity to the foreign destination, the 
contracting officer shall evaluate offers submitted on a delivery point 
by delivery point basis; however, consideration shall be given to 
prioritized ocean transport service in determining lowest landed cost.
    (c) Freight shipping and rates. (1) In determining the lowest-landed 
cost, the Department shall use the freight rates offered in response to 
solicitations issued by the Department or, if applicable, the grantee 
organization.
    (2) Freight rates offered must be submitted as specified in the 
solicitation issued by the Department or, if applicable, the grantee 
organization. Any such solicitation issued by a grantee organization 
must contain the following elements:
    (i) If directed by the Department, include a closing time for the 
receipt of written freight offers and state that late written freight 
offers will not be considered;
    (ii) Provide that freight offers are required to have a canceling 
date no later than the last contract lay day specified in the 
solicitation;
    (iii) Provide the same deadline for receipt of written freight 
offers from both U.S. flag vessel and non-U.S. flag vessels; and
    (iv) Be received and opened prior to any related offer for 
acquisition of commodities to be shipped.
    (3) The Department may require organizations that will receive 
commodities from the Department to submit information relating to the 
capacity of a U.S. port, or, if applicable, a terminal, prior to the 
acquisition of such commodities or freight.
    (d) Freight rate notification. If the Department is not the party 
procuring freight with respect to a shipment of an agricultural 
commodity for delivery to a foreign destination, the organization that 
will receive commodities from the Department, or its shipping agent, 
shall be notified by the Department of the vessel freight rate used in 
determining the commodity contract award and the organization will be 
responsible for finalizing the charter or booking contract with the 
vessel representing the freight rate.



470.202  Acquisition of commodities for United States Agency for
International Development (USAID) programs.

    (a) Lowest landed cost and delivery considerations. (1) Except as 
provided in paragraphs (a)(3) and (e)(2) of this section, with respect 
to the acquisition of agricultural commodities for delivery to foreign 
destinations and related freight to transport such commodities under 
Title II of Public Law 480, contracts will be entered into in a manner 
that will result in the lowest landed cost of such commodity delivery to 
the

[[Page 144]]

intended destination. This lowest landed cost determination shall be 
calculated on the basis of rates and service for that portion of the 
commodities being purchased that is determined is necessary and 
practicable to meet 46 U.S.C. 55314(c)(3) and cargo preference 
requirements and on an overall (foreign and U.S. flag) basis for the 
remaining portion of the commodities being procured and the additional 
factors set forth in this section. Accordingly, the solicitations issued 
with respect to a commodity procurement or a freight procurement will 
specify that in the event an offer submitted by a party is the lowest 
offered price, the contracting officer reserves the right to reject such 
offer if the acceptance of another offer for the commodity or freight, 
when combined with other offers for commodities or freight, results in a 
lower landed cost to USAID.
    (2) The Department may contact any port prior to award to determine 
the port's cargo handling capabilities, including the adequacy of the 
port to receive, accumulate, handle, store, and protect the cargo. 
Factors which will be considered in this determination will include, but 
not be limited to, the adequacy of building structures, proper 
ventilation, freedom from insects and rodents, cleanliness, and overall 
good housekeeping and warehousing practices. The Department may consider 
the use of another coastal range or port if a situation exists at a port 
that may adversely affect the ability of the Department to have the 
commodity delivered in a safe and/or timely manner. Such situations 
include:
    (i) A port is congested;
    (ii) Port facilities are overloaded;
    (iii) A vessel would not be able to dock and load cargo without 
delay;
    (iv) Labor disputes or lack of labor may prohibit the loading of the 
cargo onboard a vessel in a timely manner; or
    (v) Other similar situation that may adversely affect the ability of 
the Department to have the commodity delivered in a timely manner.
    (3) Use of other than lowest landed cost. In order to ensure that 
commodities are delivered in a timely fashion to foreign destinations 
and without damage, the Department may complete an acquisition without 
regard to the lowest land cost process set forth in paragraph (a)(1) of 
this section, if:
    (i) The solicitation specifies that the lowest land cost process 
will not be followed in the completion of the contract; or
    (ii) After issuance of the solicitation, it is determined that:
    (A) Internal strife at the foreign destination or urgent 
humanitarian conditions threatens the lives of persons at the foreign 
destination;
    (B) A specific port's cargo handling capabilities (including the 
adequacy of the port to receive, accumulate, handle, store, and protect 
commodities) and other similar factors will adversely affect the 
delivery of such commodities without damage or in a timely manner. Such 
similar factors include, but are not limited to: port congestion; 
overloaded facilities at the port; vessels would not be able to dock and 
load cargo without delay; labor disputes or lack of labor may prohibit 
the loading of the cargo onboard a vessel in a timely manner; and the 
existence of inadequate or unsanitary warehouse and other supporting 
facilities;
    (C) The total transit time of a carrier, as it relates to a final 
delivery date at the foreign destination may impair the ability of the 
Department to achieve timely delivery of the commodity; or
    (D) Other similar situations arise that materially affect the 
administration of the program for which the commodity or freight is 
being procured.
    (4) If the contracting officer determines that action may be 
appropriate under paragraph (a)(3) of this section, prior to the 
acceptance of any applicable offer, the contracting officer shall 
provide to the head of contracting activity designee and to USAID, a 
written request to obtain commodities and freight in a manner other than 
on a lowest landed cost basis. This request shall include a statement of 
the reasons for not using lowest landed cost basis. The head of 
contracting authority designee, or one level above the contracting 
officer, with the concurrence of USAID, shall, on an expedited basis, 
either accept or reject this request and shall document this 
determination in writing and provide a copy to USAID.

[[Page 145]]

    (b) Freight shipping and rates. (1) In determining lowest-landed 
cost as specified in paragraph (a) of this section, the Department shall 
use vessel rates offered in response to solicitations issued by USAID or 
grantee organizations receiving commodities under 7 U.S.C. 1731 et seq.
    (2) USAID may require, or direct a grantee organization to require, 
an ocean carrier to submit offers electronically through a Web-based 
system maintained by the Department. If electronic submissions are 
required, the Department may, at its discretion, accept corrections to 
such submissions that are submitted in a written form other than by use 
of such Web-based system.
    (c) Delivery date. The contracting officer shall consider total 
transit time, as it relates to a final delivery date, in order to 
satisfy Public Law 480 Title II program requirements.
    (d) Delivery points. (1) Commodities offered for delivery free 
alongside ship Great Lakes port range or intermodal bridge-point Great 
Lakes port range that represent the overall (foreign and U.S. flag) 
lowest landed cost will be awarded on a lowest landed cost basis. 
Tonnage allocated on this basis will not be reevaluated on a lowest 
landed cost U.S.-flag basis unless the contracting officer determines 
that 25 percent of the total annual tonnage of bagged, processed, or 
fortified commodities furnished under 7 U.S.C. 1731 et seq. has been, or 
will be, transported from the Great Lakes port range during that fiscal 
year.
    (2) The contracting officer shall consider commodity offers as 
offers for delivery ``intermodal bridge-point Great Lakes port range'' 
only if:
    (i) The offer specifies delivery at a marine cargo-handling facility 
that is capable of loading ocean going vessels at a Great Lakes port, as 
well as loading ocean going conveyances such as barges and container 
vans, and
    (ii) The commodities will be moved from one transportation 
conveyance to another at such a facility.
    (e) Multiple awards or delivery points. (1) If more than one offer 
for the sale of commodities is received or more than one delivery point 
has been designated in such offers, in order to achieve a combination of 
a freight rate and commodity award that produces the lowest landed cost 
for the delivery of the commodity to the foreign destination, the 
contracting officer shall evaluate offers submitted on a delivery point 
by delivery point basis; however, consideration shall be given to 
prioritized ocean transport service in determining lowest landed cost.
    (2) The contracting officer may determine that extenuating 
circumstances preclude awards on the basis of lowest landed cost. 
However, in all such cases, commodities may be transported in compliance 
with cargo preference requirements as determined by USAID.
    (3) The contracting officer shall notify USAID or, if applicable, 
the grantee organization, that its shipping agent will be notified of 
the vessel freight rate used in determining the commodity contract 
award. The grantee organization or USAID will be responsible for 
finalizing the charter or booking contract with the vessel representing 
the freight rate so used.



470.203  Cargo preference.

    An agency having responsibility under this subpart shall administer 
its programs, with respect to this subpart, in accordance with 
regulations prescribed by the Secretary of Transportation.

                        PARTS 471	499 [RESERVED]

[[Page 147]]



               CHAPTER 5--GENERAL SERVICES ADMINISTRATION




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

                          SUBCHAPTER A--GENERAL
Part                                                                Page
500

[Reserved]

501             General Services Administration Acquisition 
                    Regulation System.......................         149
502

[Reserved]

503             Improper business practices and personal 
                    conflicts of interest...................         151
504             Administrative matters......................         153
           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
505

[Reserved]

509             Contractor qualifications...................         156
511             Describing agency needs.....................         159
512             Acquisition of commercial items.............         162
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
513

[Reserved]

514             Sealed bidding..............................         164
515             Contracting by negotiation..................         169
516             Types of contracts..........................         174
517             Special contracting methods.................         175
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
519             Small business programs.....................         177
522             Application of labor laws to Government 
                    acquisitions............................         183
523             Environment, energy and water efficiency, 
                    renewable energy technologies, 
                    occupational safety, and drug-free 
                    workplace...............................         185
525             Foreign acquisition.........................         185
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
527             Patents, data, and copyrights...............         186
528             Bonds and insurance.........................         186

[[Page 148]]

529             Taxes.......................................         186
532             Contract financing..........................         187
533             Protests, disputes, and appeals.............         189
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
536             Construction and architect-engineer 
                    contracts...............................         191
537             Service contracting.........................         194
538             Federal supply schedule contracting.........         195
539             Acquisition of information technology.......         199
                    SUBCHAPTER G--CONTRACT MANAGEMENT
541             Acquisition of utility services.............         201
542             Contract administration and audit services..         201
543             Contract modifications......................         201
546             Quality assurance...........................         201
547

[Reserved]

549             Termination of contracts....................         202
                     SUBCHAPTER H--CLAUSES AND FORMS
552             Solicitation provisions and contract clauses         203
553             Forms.......................................         266
               SUBCHAPTER I--SPECIAL CONTRACTING PROGRAMS
570             Acquiring leasehold interests in real 
                    property................................         267
571-599

[Reserved]

[[Page 149]]



                          SUBCHAPTER A_GENERAL



                           PART 500 [RESERVED]



PART 501_GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION SYSTEM
--Table of Contents



               Subpart 501.1_Purpose, Authority, Issuance

Sec.
501.101  Purpose.
501.103  Authority.
501.104  Applicability.
501.105  Issuance.
501.105-1  Publication and code arrangement.
501.105-2  Arrangement of regulations.
501.105-3  Copies.
501.106  OMB approval under the Paperwork Reduction Act.

             Subpart 501.4_Deviations From the FAR and GSAR

501.402  Policy.
501.403  Individual deviations.
501.404  Class deviations.
501.404-70  Contract action.
501.404-71  Deviations to the nonregulatory GSAM.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37203, July 9, 1999, unless otherwise noted.



               Subpart 501.1_Purpose, Authority, Issuance



501.101  Purpose.

    (a) The General Services Acquisition Regulation (GSAR) contains 
agency acquisition policies and practices, contract clauses, 
solicitation provisions, and forms that control the relationship between 
GSA and contractors and prospective contractors.
    (b) GSAR address rules directly to you, the contracting officer, 
unless otherwise indicated.



501.103  Authority.

    GSA's Senior Procurement Executive issues the GSAR under the 
authority of the Federal Property and Administrative Services Act of 
1949, as amended.



501.104  Applicability.

    (a) General. The GSAR applies to contracts for suppliers or 
services, including construction.
    (b) Acquisition of leasehold interests in real property. Part 570 
establishes rules for the acquisition of leasehold interests in real 
property. Other provisions of 48 CFR chapter 5 (GSAR) do not apply to 
leases of real property unless specifically cross-reference in part 570.
    (c) Relationship to state. Some GSAR rules implement and interpret 
laws and other authorities affecting procurement. A GSAR rule 
specifically directed by statute has the force and effect of law.
    (d) GSAR/FAR Relationship. The GSAR may deviate from the Federal 
Acquisition Regulation (FAR) if authorized. If the GSAR does not 
implement the FAR, the FAR alone governs.



501.105  Issuance.



501.105-1  Publication and code arrangement.

    The GSAR is published in the following sources:
    (a) Daily issue of the Federal Register.
    (b) Annual Code of Federal Regulations (CFR), as Chapter 5 of Title 
48.
    (c) GSA Acquisition Manual distributed within GSA.
    (d) GSA Home Page at http://www/gas.gov. Click on either 
``Government Agencies'' or on ``Business and Industry,'' the click on 
``Acquisition.''



501.105-2  Arrangement of regulations.

    (a) The GSAR numbers and captions policies and procedures to 
correspond to how they appear in the FAR, e.g., 1.104 in the FAR is 
501.104 in the GSAR.
    (b) GSAR rules not implementing the FAR have numbers beginning with 
70, e.g., part 570, subsection 515.209-70.
    (c) The GSAR may have gaps in its numbering scheme because a FAR 
rule may not require GSAR implementation.

[[Page 150]]



501.105-3  Copies.

    The GSAR in CFR form may be purchased from: Superintendent of 
Documents, Government Printing Office, Washington, DC 20402.



501.106  OMB approval under the Paperwork Reduction Act.

------------------------------------------------------------------------
               GSAR Reference                      OMB Control No.
------------------------------------------------------------------------
509.105-1(a)...............................  3090-0007
511.140-70.................................  3090-0203
511.204(c).................................  3090-0246
514.201-1(a)...............................  3090-0163
515.408....................................  3090-0235
516.203-4(a)(1)............................  3090-0243
516.506....................................  3090-0248
519.70.....................................  3090-0286
519.708(b).................................  3090-0252
522.406-6..................................  1215-0149
523.370....................................  3090-0205
532.111(c).................................  3090-0080
532.905-70.................................  9000-0102
532.905-71.................................  3090-0080
537.110(a).................................  3090-0197
537.110(b).................................  3090-0006
538.273(a)(1)..............................  3090-0250
538.273(a)(3)..............................  3090-0262
538.273(b)(1)..............................  3090-0121
542.1107...................................  3090-0027
546.307-70.................................  3090-0027
546.302-71.................................  3090-0027
552.211-77.................................  3090-0246
552.215-73.................................  3090-0163
552.216-70.................................  3090-0243
552.216-72.................................  3090-0248
552.216-73.................................  3090-0248
552.216-75.................................  3090-0306
552.219-72.................................  3090-0252
552.219-75.................................  3090-0286
552.219-76.................................  3090-0286
552.223-72.................................  3090-0205
552.232-72.................................  3090-0080
552.237-71.................................  3090-0006
552.238-70.................................  3090-0250
552.238-72.................................  3090-0262
552.238-74.................................  3090-0121, 3090-0306
552.238-81.................................  3090-0302
552.239-71.................................  3090-0294
552.242-70.................................  3090-0027
552.246-70.................................  3090-0027
552.246-71.................................  3090-0027
GSA-72-A...................................  3090-0121
GSA-527....................................  3090-0007
GSA-618-D..................................  1215-0149
GSA-1142...................................  3090-0080
GSA-1364...................................  3090-0086
GSA-1678...................................  3090-0027
GSA-2419...................................  9000-0102
570.802(c).................................  3090-0086
570.802(d).................................  3090-0086
------------------------------------------------------------------------


[64 FR 37203, July 9, 1999, as amended at 65 FR 41378, July 5, 2000; 68 
FR 41288, July 11, 2003; 74 FR 21273, May 7, 2009; 74 FR 41063, Aug. 14, 
2009; 74 FR 47738, Sept. 17, 2009; 74 FR 66253, Dec. 15, 2009; 76 FR 
30845, May 27, 2011; 77 FR 750, Jan. 6, 2012; 79 FR 14184, Mar. 13, 
2014; 79 FR 62884, Oct. 21, 2014; 79 FR 63057, Oct. 22, 2014; 81 FR 
36425, June 6, 2016; 81 FR 41136, June 23, 2016]

    Editorial Note: At 74 FR 66253, Dec. 15, 2009, the table in 
Sec. 501.106 was amended by removing the GSAR reference number 
``511.104-70'' and its corresponding OMB Control Number ``3090-0203''; 
however, the amendment could not be done because this reference number 
is not found in the table.



             Subpart 501.4_Deviations From the FAR and GSAR



501.402  Policy.

    Uniformity is a goal of GSA's Acquisition Regulation System. Despite 
this desire for uniformity, a contracting activity may take any of the 
following actions:
    (a) Develop and test new procedures and techniques.
    (b) Adopt alternate procedures in the public interest for unique 
programmatic or managerial requirements
    (c) Deviate from a regulatory provision implementing a statutory 
requirement provided the deviation does not violate the underlying 
statute. Deviations must not be used to defeat the FAR and GSAR approval 
requirements.



501.403  Individual deviations.

    (a) An individual deviation affects only one contract action.
    (1) The Head of the Contracting Activity (HCA) must approve an 
individual deviation to the FAR. The authority to grant an individual 
deviation may not be re-delegated. A copy of the deviation must be 
provided to GSA's Senior Procurement Executive (SPE).
    (2) An individual deviation to the GSAR must be approved by the HCA. 
The authority to grant an individual deviation may be re-delegated to 
the Contracting Director.
    (b) If GSA delegates authority to another agency and requires 
compliance with the GSAR as a condition of the delegation, the 
Contracting Director in the agency receiving the delegation may approve 
individual deviations

[[Page 151]]

from the GSAR unless the agency head receiving the delegation designates 
another official.
    (c) Send a copy of each deviation to GSA's SPE (MV).

[64 FR 37203, July 9, 1999, as amended at 70 FR 15779, Mar. 29, 2005; 81 
FR 1532, Jan. 13, 2016]



501.404  Class deviations.

    (a) A class deviation affects more than one contract action. A 
deviation for any solicitation that will result in multiple awards or 
any solicitation under the multiple award Federal Supply Schedule 
program is considered to be a class deviation. Each award under such a 
solicitation is considered an individual contract action.
    (1) A class deviation to the FAR must be forwarded by the cognizant 
HCA to GSA's SPE for approval. Prior to approving a class deviation to 
the FAR, the SPE will consult with the Chairman of the Civilian Agency 
Acquisition Council (CAAC) in accordance with FAR 1.404(a)(1).
    (2) A class deviation to the GSAR must be forwarded by the cognizant 
HCA to GSA's SPE for approval.
    (3) When an HCA knows that a proposed class deviation will be 
required on a permanent basis, the HCA should propose or recommend an 
appropriate FAR and/or GSAR revision.
    (b) If GSA delegates authority to another agency and requires 
compliance with the GSAR as a condition of the delegation, the HCA in 
the agency receiving the delegation may approve class deviations from 
the GSAR unless the agency head receiving the delegation designates 
another official.
    (c) Send a copy of each deviation to GSA's SPE (MV).
    (d) A request for class deviations must be supported by statements 
that fully describe the need for and the nature of the deviation.
    (e) Class deviations from the GSAR:
    (1) Expire in 12 months if not extended.
    (2) May be rescinded earlier by GSA's SPE or by officials designated 
under paragraph (a) of this section without prejudice to any action 
taken previously.

[64 FR 37203, July 9, 1999, as amended at 70 FR 15780, Mar. 29, 2005; 81 
FR 1532, Jan. 13, 2016]



501.404-70  Contract action.

    Contract action. A contract action, for the purpose of determining 
whether an individual or class deviation is appropriate, has the same 
meaning as that used for reporting contract actions to Federal 
Procurement Data System--Next Generation (FPDS-NG). A contract action 
includes, but is not limited to, any of the following:
    (a) Initial letter contract.
    (b) Definitive contract superseding letter contract.
    (c) New definitive contract.
    (d) Purchase order/BPA calls using simplified acquisition 
procedures.
    (e) Orders under single award indefinite delivery contracts.
    (f) Orders under BOA.
    (g) Order/modification under Federal schedule contract.
    (h) Modification.
    (i) Termination for Default.
    (j) Termination for Convenience.
    (k) Order under multiple award contract.
    (l) Initial load of Federal schedule contract.

[70 FR 15780, Mar. 29, 2005]



501.404-71  Deviations to the nonregulatory GSAM.

    Handle individual and class deviations to the nonregulatory 
(unshaded) part of the GSAM as stated in 501.403 and 501.404.

[70 FR 15780, Mar. 29, 2005]

                           PART 502 [RESERVED]



PART 503_IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST--Table of Contents



                        Subpart 503.1_Safeguards

Sec.
503.104  Procurement integrity.

       Subpart 503.2_Contractor Gratuities to Government Personnel

503.204  Treatment of violations.

[[Page 152]]

Subpart 503.4--Contingent Fees [Reserved]

             Subpart 503.5_Other Improper Business Practices

503.570  Advertising.
503.570-1  Policy.
503.570-2  Contract clause.

             Subpart 503.7_Voiding and Rescinding Contracts

503.703  Authority.

      Subpart 503.10_Contractor Code of Business Ethics and Conduct

503.1004  Contract clauses.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37204, July 9, 1999, unless otherwise noted.



                        Subpart 503.1_Safeguards



503.104  Procurement integrity.



       Subpart 503.2_Contractor Gratuities to Government Personnel



503.204  Treatment of violations.

    (a) The Senior Procurement Executive, or designee, makes 
determinations under FAR 3.204.
    The Senior Procurement Executive, or designee, takes all the 
following actions:
    (1) Coordinates with legal counsel;
    (2) Initiates proceedings under FAR 3.204(a) by notifying the 
contractor that GSA is considering action against the contractor for a 
violation of the Gratuities clause. Notice is sent by a certified letter 
to the last known address of the party, its counsel, or agent for 
service of process. In the case of a business, notice is sent to any 
partner, principal officer, director, owner or co-owner; and
    (3) Presumes receipt if no return receipt is received within 10 
calendar days after mailing the notice.
    (b) The contractor has 30 calendar days to exercise its rights under 
FAR 3.204(b), unless the Senior Procurement Executive, or designee, 
grants an extension.
    (c) If there is a dispute of fact material to making a 
determination, the Senior Procurement Executive, or designee, may refer 
the matter to an agency fact-finding official, designated by the 
Suspension and Debarment Official, in accordance with GSAR 509.403. 
Referrals for fact-finding are not made in cases arising from a 
conviction or indictment as defined in FAR 9.403. If a referral is made, 
the fact-finding official takes all the following actions:
    (1) Gives the contractor an opportunity to dispute material facts 
relating to the determinations under FAR 3.204(a)(1) and (2);
    (2) Conducts proceedings under rules consistent with FAR 3.204(b);
    (3) Schedules a hearing within 20 calendar days of receipt of the 
referral. The contractor or GSA may request an extension for good cause; 
and
    (4) Delivers to the Senior Procurement Executive, or designee, 
written findings of fact (together with a transcription of the 
proceedings, if made) within 20 calendar days after the hearing record 
closes. The findings must resolve any material disputes of fact by a 
preponderance of the evidence.
    (d) The Senior Procurement Executive, or designee, may reject the 
findings of the fact-finding official only if the findings are clearly 
erroneous or arbitrary and capricious.
    (e) In cases arising from conviction or indictment, or in which 
there are no disputes of material fact, the Senior Procurement 
Executive, or designee, conducts the hearing required by FAR 3.204(b).
    (f) If the Gratuities clause was violated, the contractor may 
present evidence of mitigating factors to the Senior Procurement 
Executive, or designee, in accordance with FAR 3.204(b) either orally or 
in writing, consistent with a schedule the Senior Procurement Executive, 
or designee, establishes. The Senior Procurement Executive, or designee, 
exercises the Government's rights under FAR 3.204(c) only after 
considering mitigating factors.

[64 FR 37204, July 9, 1999, as amended at 74 FR 51511, Oct. 7, 2009]

Subpart 503.4--Contingent Fees [Reserved]

[[Page 153]]



             Subpart 503.5_Other Improper Business Practices



503.570  Advertising.



503.570-1  Policy.

    GSA policy precludes contractors from making references to GSA 
contracts in commercial advertising in a manner that states or implies 
the Government approves or endorses the product or service or considers 
it superior to other products or services. The intent of this policy is 
to prevent the appearance of Government bias toward any product or 
service.

[64 FR 37204, July 9, 1999, as amended at 74 FR 51511, Oct. 7, 2009]



503.570-2  Contract clause.

    Insert the clause at 552.203-71, Restriction on Advertising, in 
solicitations and contracts, including acquisitions of leasehold 
interests in real property, if the contract amount is expected to exceed 
the simplified acquisition threshold.



             Subpart 503.7_Voiding and Rescinding Contracts



503.703  Authority.

    Pursuant to FAR 3.703 and 3.705(b), the authority to void or rescind 
contracts resides with the Senior Procurement Executive.

[74 FR 51512, Oct. 7, 2009]



      Subpart 503.10_Contractor Code of Business Ethics and Conduct



503.1004  Contract clauses.

    (a) GSA has exercised the authority provided at FAR 3.1004(b)(1)(i) 
to establish a lower threshold for inclusion of clause 52.203-14, 
Display of Hotline Poster(s). When the contract or order is funded with 
disaster assistance funds, the threshold is $1,000,000.
    (b) The information required to be inserted in the clause at FAR 
52.203-14, Display of Hotline Poster(s), is as follows:
    (1) Poster: GSA Office of Inspector General ``FRAUDNET HOTLINE''; 
and
    (2) Obtain from: Contracting Officer.

[74 FR 51512, Oct. 7, 2009, as amended at 81 FR 68335, Oct. 4, 2016]



PART 504_ADMINISTRATIVE MATTERS--Table of Contents



    Subpart 504.4_Safeguarding Classified Information Within Industry

Sec.
504.402  General.
504.475  Return of classified information.

            Subpart 504.5_Electronic Commerce in Contracting

504.500  [Reserved]
504.502  Policy.
504.570  [Reserved]

                    Subpart 504.6_Contract Reporting

504.605-70  Federal Procurement Data System--Public access to data.

               Subpart 504.11_System for Award Management

504.1103  Procedures.

  Subpart 504.13_Personal Identity Verification of Contractor Personnel

504.1301  Policy.
504.1303  Contract clause.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37205, July 9, 1999, unless otherwise noted.



    Subpart 504.4_Safeguarding Classified Information Within Industry



504.402  General.

    (a) This subpart prescribes procedures for safeguarding classified 
information required to be disclosed to contractors in connection with 
the solicitation of offers, and the award, performance, and termination 
of contracts.
    (b) As used in this subpart, the term ``Contractor(s)'' means 
prospective contractors, subcontractors, vendors, and suppliers.

[77 FR 59792, Oct. 1, 2012]

[[Page 154]]



504.475  Return of classified information.

    (a) Contracting officers must recover classified information, unless 
it has been destroyed as provided in Section 7 of Chapter 5 of the 
National Industrial Security Program Operating Manual (NISPOM). 
Information on NISPOM can be found at http://www.fas.org/sgp/library/
nispom.htm.
    (b) Contracting officers must ensure that classified information 
provided by the government is returned immediately after any of the 
following events:
    (1) Bid opening or closing date for receipt of proposals by non-
responding offerors.
    (2) Contract award by unsuccessful offerors.
    (3) Termination or completion of the contract.
    (4) Notification that authorization to release classified 
information has been withdrawn.
    (5) Notification that a facility:
    (i) Does not have adequate means to safeguard classified 
information; or
    (ii) Has had its security clearance revoked or inactivated.
    (6) Whenever otherwise instructed by the authority responsible for 
the security classification.
    (c) The Government agency that provided classified information to a 
GSA contractor is responsible for the return of the information.

[77 FR 59792, Oct. 1, 2012]



            Subpart 504.5_Electronic Commerce in Contracting



504.500  [Reserved]



504.502  Policy.

    Use of electronic signatures is encouraged and can be used to sign 
and route documents in GSA's IT systems to contractually obligate funds. 
The method of authentication used for electronic signatures shall be 
consistent with the level (1-4) determined from the e-authentication 
risk assessment in accordance with OMB M-04-04, E-authentication 
Guidance for Federal Agencies, and the respective technology safeguards 
applicable to that level or risk from National Institute of Standards 
and Technology 800-63, Electronic Authentication Guideline.

[77 FR 59792, Oct. 1, 2012]



504.570  [Reserved]



                    Subpart 504.6_Contract Reporting



504.605-70  Federal Procurement Data System--Public access to data.

    (a) The FPDS database. The General Services Administration awarded a 
contract for creation and operation of the Federal Procurement Data 
System (FPDS) database. That database includes information reported by 
departments and agencies as required by FAR subpart 4.6. One of the 
primary purposes of the FPDS database is to provide information on 
Government procurement to the public.
    (b) Fee for direct hook-up. To the extent that a member of the 
public requests establishment of real-time integration of reporting 
services to run reports from another application, a one-time charge of 
$2,500 for the original integration must be paid by the requestor. This 
one-time charge covers the setup and certification required for an 
integrator to access the FPDS database and for technical assistance to 
help integrators use the web services. The fee will be paid to the FPDS 
contractor and credited to invoices submitted to GSA by the FPDS 
contractor.

[69 FR 77662, Dec. 28, 2004. Redesignated and amended at 77 FR 59792, 
Oct. 1, 2012]



               Subpart 504.11_System for Award Management



504.1103  Procedures.

    In addition to the requirements found in FAR 4.1103, prior to 
awarding a contractual instrument the contracting officer must--
    (a) Verify that the prospective contractor's legal business name, 
Doing-Business-As (DBA) name (if any), physical street address, and Data 
Universal Number System (DUNS) number or DUNS+4 number, as found in the 
System for Award Management (SAM), match the information that will be 
included in the contract, order, or agreement resulting from the 
vendor's quote

[[Page 155]]

or proposal. Correct any mismatches by having the vendor amend the 
information in the SAM and/or the quote or proposal. The SAM information 
can be accessed through the SAM Web site (www.sam.gov) by creating a 
user account.
    (b) Ensure that the contractor's address code exists in Pegasys and 
that it is SAM enabled with the contractor's DUNS or DUNS+4 number. This 
can be done by searching Pegasys records using the contractor's Taxpayer 
Identification Number (TIN). If no code exists, request that a new 
address code be established by the Finance Center for SAM compliance.
    (c) Ensure that the contractor's identifying information is 
correctly placed on the contractual instrument, using special care to 
ensure that the legal name and ``remit to'' name match exactly. (Note: 
Lockbox names or numbers should not be used to replace the contractor's 
name in the remittance block on the contractual instrument.)
    (d) Unless one of the exceptions to registration in SAM applies (see 
FAR 4.1102(a)), the contracting officer must not award a contract to a 
prospective contractor who is not registered in SAM. If no exceptions 
are applicable, and the needs of the requiring activity allows for a 
delay in award, see FAR 4.1103(b)(1).

[77 FR 59792, Oct. 1, 2012, as amended at 81 FR 1532, Jan. 13, 2016]



  Subpart 504.13_Personal Identity Verification of Contractor Personnel

    Source: 77 FR 59793, Oct. 1, 2012, unless otherwise noted.



504.1301  Policy.

    Contracting officers must follow the procedures contained in CIO 
P2181.1--GSA HSPD-12 Personal Identity Verification and Credentialing 
Handbook, which may be obtained from the CIO Office of Enterprise 
Solutions, to ensure compliance with Homeland Security Presidential 
Directive-12 (HSPD-12) ``Policy for a Common Identification Standard for 
Federal Employees and Contractors,'' Office of Management and Budget 
Memorandum M-05-24, and Department of Commerce FIPS PUB 201.



504.1303  Contract clause.

    Insert the clause at 552.204-9, Personal Identity Verification 
Requirements, in solicitations and contracts when it is determined that 
contractor employees will require access to federally controlled 
facilities or information systems to perform contract requirements.

[[Page 156]]



            SUBCHAPTER B_COMPETITION AND ACQUISITION PLANNING



                           PART 505 [RESERVED]



PART 509_CONTRACTOR QUALIFICATIONS--Table of Contents



            Subpart 509.1_Responsible Prospective Contractors

Sec.
509.105  Procedures.
509.105-1  Obtaining information.
509.105-2  Determinations and documentation.
509.106-2  Requests for preaward surveys.

Subpart 509.2 [Reserved]

            Subpart 509.3_First Article Testing and Approval

509.306  Solicitation requirements.
509.308-1  Testing performed by the contractor.
509.308-2  Testing performed by the Government.

         Subpart 509.4_Debarment, Suspension, and Ineligibility

509.401  Applicability.
509.403  Definitions.
509.405  Effect of listing.
509.405-1  Continuation of current contracts.
509.405-2  Restrictions on subcontracting.
509.406  Debarment.
509.406-1  General.
509.406-3  Procedures.
509.407  Suspension.
509.407-1  General.
509.407-3  Procedures.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37207, July 9, 1999, unless otherwise noted.



            Subpart 509.1_Responsible Prospective Contractors



509.105  Procedures.



509.105-1  Obtaining information.

    (a) From a prospective contractor. FAR 9.105-1 lists a number of 
sources of information that a contracting officer may utilize before 
making a determination of responsibility. The contracting officer may 
request information directly from a prospective contractor using GSA 
Form 527, Contractor's Qualifications and Financial Information, but 
only after exhausting other available sources of information.
    (b) From Government personnel. The contracting officer may solicit 
and consider information from any appropriate activities, e.g., legal 
counsel, quality control, contract management, credit and finance, and 
auditors before determining that an offeror is responsible.

[74 FR 12732, Mar. 25, 2009]



509.105-2  Determinations and documentation.

    (a) The contracting officer shall provide written notification to a 
prospective contractor determined not responsible. Include the basis for 
the determination. Notification provides the prospective contractor with 
the opportunity to correct any problem for future solicitations.
    (b) Due to the potential for de facto debarment, the contracting 
officer shall avoid making repeated determinations of nonresponsibility 
based on the same past performance information.
    (c) To provide for timely consideration of the need to institute 
action to debar a contractor, the contracting officer shall submit a 
copy of each nonresponsibility determination, other than those based on 
capacity or financial capability, to the Suspension and Debarment 
Official in the Office of Acquisition Policy.

[74 FR 12732, Mar. 25, 2009, as amended at 81 FR 1532, Jan. 13, 2016]



509.106-2  Requests for preaward surveys.

    Federal Supply Service (FSS). Contracting activities in FSS may use 
GSA Form 353, Performance Evaluation & Facilities Report, in lieu of SF 
1403 through 1406. Complete Section I in accordance with instructions in 
553.370-353-I.

Subpart 509.2 [Reserved]

[[Page 157]]



            Subpart 509.3_First Article Testing and Approval



509.306  Solicitation requirements.

    The clauses at FAR 52.209-3 and 52.209-4 do not cover all the 
solicitation requirements described in FAR 9.306. If a solicitation 
contains a testing and approval requirement, the contracting officer 
must address the requirements in FAR 9.306(d) and (f) through (j) in the 
solicitation's Section H, special contract requirements.

[74 FR 12732, Mar. 25, 2009]



509.308-1  Testing performed by the contractor.

    In FSS solicitations and contracts that will require the contractor 
to perform testing, insert 552.209-72, Supplemental Requirements for 
First Article Approval--Contractor Testing, and FAR 52.209-3, Alternate 
I.



509.308-2  Testing performed by the Government.

    In FSS solicitations and contracts that will have the Government 
responsible for first article testing, insert 552.209.73, Supplemental 
Requirements for First Article Approval--Government Testing, and FAR 
52.209-4, Alternate I.



         Subpart 509.4_Debarment, Suspension, and Ineligibility



509.401  Applicability.

    This subpart applies to all the following:
    (a) Acquisitions of personal property, nonpersonal services, 
construction, and space in buildings.
    (b) Acquisition of transportation services (Federal Management 
Regulation (FMR) Parts 102-117 and 102-118 (41 CFR parts 102-117 and 
102-118)).
    (c) Contracts for disposal of personal property (FMR Parts 102-36 
through 102-38 (41 CFR parts 102-36 through 102-38)).
    (d) Covered transactions as defined by 41 CFR part 105-68.

[74 FR 12732, Mar. 25, 2009]



509.403  Definitions.

    Fact-finding official, means the Suspension and Debarment Official 
or a designee.
    Notice means a letter sent by certified mail, return receipt 
requested, to the last known address of a party, its counsel, or agent 
for service of process. In the case of a business, such notice may be 
sent to any partner, principal officer, director, owner or co-owner, or 
joint venturer. If no return receipt is received within 10 calendar days 
of mailing, receipt will then be presumed.

[64 FR 37207, July 9, 1999, as amended at 74 FR 12732, Mar. 25, 2009; 81 
FR 1532, Jan. 13, 2016]



509.405  Effect of listing.



509.405-1  Continuation of current contracts.

    (a) When a contractor appears as a current exclusion in the System 
for Award Management (SAM), consider terminating a contract under any of 
the following circumstances:
    (1) Any circumstances giving rise to the debarment or suspension 
also constitute a default in the contractor's performance of the 
contract.
    (2) The contractor presents a significant risk to the Government in 
completing the contract.
    (3) The conduct that provides the cause of the suspension, proposed 
debarment, or debarment involved a GSA contract.
    (b) Before terminating a contract when a contractor appears as a 
current exclusion in the SAM, consider the following factors:
    (1) Seriousness of the cause for debarment or suspension.
    (2) Extent of contract performance.
    (3) Potential costs of termination and reprocurement.
    (4) Need for or urgency of the requirement, contract coverage, and 
the impact of delay for reprocurement.
    (5) Availability of other safeguards to protect the Government's 
interest until completion of the contract.
    (6) Availability of alternate competitive sources to meet the 
requirement (e.g., other multiple award contracts, readily available 
commercial items.)

[[Page 158]]

    (c) The responsibilities of the agency head under FAR 9.405-1 are 
delegated to the Senior Procurement Executive.

[74 FR 12732, Mar. 25, 2009, as amended at 81 FR 1532, Jan. 13, 2016]



509.405-2  Restrictions on subcontracting.

    The responsibilities of the agency head under FAR 9.405-2(a) are 
delegated to the Senior Procurement Official.

[74 FR 12732, Mar. 25, 2009, as amended at 81 FR 1532, Jan. 13, 2016]



509.406  Debarment.



509.406-1  General.

    The Suspension and Debarment Official is the designee under FAR 
9.406-1(c).

[74 FR 12733, Mar. 25, 2009]



509.406-3  Procedures.

    (a) Investigation and referral. (1) Refer to the Suspension and 
Debarment Official matters involving serious contract improprieties or 
performance deficiencies. Performance deficiencies that continue over a 
period of time or apply to more than one contract may warrant debarment 
consideration.
    (2) Refer possible criminal or fraudulent activities to the Office 
of the Inspector General (OIG). See 5 CFR 6701.107, Reporting Waste, 
Fraud, Abuse, and Corruption. If, after investigation, the OIG believes 
a cause for debarment exists, it will refer the matter to the Suspension 
and Debarment Official for consideration of debarment action.
    (b) Reports. Include in referrals to the Suspension and Debarment 
Official a report that contains at least the following:
    (1) The recommendation and supporting rationale.
    (2) A list of parties to be considered for possible debarment, 
including the contractor, principals, and affiliates. Include last known 
home and business addresses, zip codes, and DUNS Numbers.
    (3) A statement of facts.
    (4) Copies of documentary evidence and a list of witnesses. Include 
addresses and telephone numbers. Determine their availability to appear 
at a fact-finding proceeding and identify the subject matter of their 
testimony.
    (5) GSA's acquisition history with the contractor. Include recent 
experience, copies of the pertinent contracts, and an explanation of 
impact debarment would have on GSA programs. OIG referrals do not 
require this explanation; the Suspension and Debarment Official will 
obtain the information directly from the contracting activity(s).
    (6) A list of any known active or potential criminal investigations, 
criminal or civil proceedings, or administrative claims before the Board 
of Contract Appeals.
    (c) Review. The Suspension and Debarment Official will review the 
report, and after coordinating with assigned legal counsel--
    (1) Initiate debarment action;
    (2) Decline debarment action;
    (3) Request additional information; or
    (4) Refer the matter to the OIG for further investigation and 
development of a case file.
    (d) Decisionmaking process. (1) The Suspension and Debarment 
Official will provide:
    (i) Notice of declinations, proposed debarments, and decisions to 
the referring activity.
    (ii) Notice of proposed debarment to each party being considered for 
debarment.
    (iii) Decision notices to each party after considering information 
in the administrative record and information and argument submitted by 
the affected party or parties.
    (2) A party proposed for debarment:
    (i) Has 30 calendar days after receipt of the notice to respond to 
the Suspension and Debarment Official or the debarment becomes final.
    (ii) May request and receive a copy of the administrative record 
that was the basis for the proposed debarment. If information is 
withheld, the party will be notified and provided the reason.
    (iii) May request the opportunity to present information and 
argument in person to the Suspension and Debarment Official. The 
Suspension and Debarment Official will schedule an oral presentation 
within 20 calendar days of receipt of the request, unless a longer

[[Page 159]]

period of time is requested by the party. An oral presentation is 
informal and a transcript usually is not made. The party may supplement 
the oral presentation with written information and arguments.
    (iv) May identify to the Suspension and Debarment Official material 
facts in dispute and the bases. For an action other than one based on a 
conviction of civil judgment, a party may request review and a written 
finding by a fact-finding official.
    (3) Following a review of the record and, if needed, a presentation 
by the contractor in opposition to the proposed action, the Suspension 
and Debarment Official will determine whether there is a genuine dispute 
of material fact. If so, the Suspension and Debarment Official will 
initiate the fact-finding process. The fact-finding official will:
    (i) Establish a date for a fact-finding proceeding, normally to be 
held within 45 days of the determination of who will function as the 
fact-finding official.
    (ii) Grant extensions for good cause.
    (iii) Provide notice of the scheduled hearing.
    (iv) Provide the parties with a schedule for exchange of documents 
and witness lists.
    (v) Develop an official transcript of the fact-finding proceeding.
    (vi) Provide the Government's representative and the contractor with 
an opportunity to present evidence relevant to the facts at issue. The 
contractor may appear in person or through a representative.
    (vii) Conduct hearings under rules consistent with FAR 9.406-3 
pertaining to fact finding. Neither the Federal Rules of Evidence nor 
the Federal Rules of Civil Procedure govern fact finding. Hearsay 
evidence may be presented and will be given appropriate weight by the 
fact-finding official.
    (viii) Provide for witness testimony. Witnesses may testify in 
person. Witnesses are subject to cross examination.
    (ix) Prepare written findings of fact based on a preponderance of 
the evidence and submit them to both the Suspension and Debarment 
Official and the contractor within 20 calendar days following the 
conclusion of the fact-finding proceeding.

[64 FR 37207, July 9, 1999, as amended at 74 FR 12733, Mar. 25, 2009]



509.407  Suspension.



509.407-1  General.

    The Suspension and Debarment Official is the designee under FAR 
9.407-1(d).

[64 FR 37207, July 9, 1999, as amended at 74 FR 12733, Mar. 25, 2009]



509.407-3  Procedures.

    (a) General. The procedures in 509.406-3 apply to suspension actions 
except as noted in paragraph (b) of this section.
    (b) Fact-finding. (1) Fact-finding will not be conducted in an 
action:
    (i) Based on an indictment.
    (ii) When the Suspension and Debarment Official finds no genuine 
dispute of material facts.
    (2) If the action is not based on an indictment, the Suspension and 
Debarment Official must coordinate with the Department of Justice or 
state prosecutorial authority through OIG. Based on the advice received, 
the Suspension and Debarment Official will determine if fact-finding 
would impair substantial interests of the Federal or state Government. 
In an action not based on an indictment, a suspended party may:
    (i) Identify to the Suspension and Debarment Official material facts 
in dispute and the bases.
    (ii) Request review and a written finding by a fact-finding official 
to resolve genuine disputes of material fact. For procedures involving a 
genuine dispute of material fact, see 509.406-3(d)(3).

[64 FR 37207, July 9, 1999, as amended at 74 FR 12733, Mar. 25, 2009]



PART 511_DESCRIBING AGENCY NEEDS--Table of Contents



       Subpart 511.2_Using and Maintaining Requirements Documents

Sec.
511.204  Solicitation provisions and contract clauses.

[[Page 160]]

             Subpart 511.4_Delivery or Performance Schedules

511.404  Contract clauses.

                Subpart 511.6_Priorities and Allocations

511.600  Scope of subpart.
511.601  [Reserved]
511.602  General.
511.603  Procedures.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37209, July 9, 1999, unless otherwise noted.



       Subpart 511.2_Using and Maintaining Requirements Documents



511.204  Solicitation provisions and contract clauses.

    (a) Federal specifications. The contracting officer shall insert the 
clause at 552.211-72, Reference to Specifications in Drawings, in 
solicitations and contracts citing Federal or agency specifications that 
contain drawings.
    (b) Supply contracts that exceed the simplified acquisition 
threshold. (1) The contracting officer shall include the clause at 
552.211-73, Marking, in solicitations and contracts for supplies when 
deliveries may be made to both civilian and military activities and the 
contract amount is expected to exceed the simplified acquisition 
threshold.
    (2) The contracting officer shall include the clause at 552.211-75, 
Preservation, Packaging, and Packing, in solicitations and contracts for 
supplies expected to exceed the simplified acquisition threshold. The 
contracting officer may also include the clause in contracts estimated 
to be at or below the simplified acquisition threshold when appropriate. 
The contracting officer shall use Alternate I in solicitations and 
contracts for all Federal Supply Schedule Contracts.
    (3) The contracting officer shall insert a clause substantially the 
same as the clause at 552.211-76, Charges for Packaging, Packing, and 
Marking, in solicitations and contracts for supplies to be delivered to 
GSA distribution centers.
    (4) The contracting officer shall include the clause 552.211-85, 
Consistent Pack and Package Requirements, in solicitations and contracts 
for supplies when deliveries may be made to both civilian and military 
activities and the contract amount is expected to exceed the simplified 
acquisition threshold.
    (5) The contracting officer shall include the clause 552.211-86, 
Maximum Weight Per Shipping Container, in solicitations and contracts 
for supplies when deliveries may be made to both civilian and military 
activities and the contract amount is expected to exceed the simplified 
acquisition threshold.
    (6) The contracting officer shall include the clause 552.211-87, 
Export Packing, in solicitations and contracts for supplies when 
deliveries may be made to both civilian and military activities and the 
contract amount is expected to exceed the simplified acquisition 
threshold.
    (7) The contracting officer shall include the clause 552.211-88, 
Vehicle Export Preparation, in solicitations and contracts for supplies 
when deliveries may be made to both civilian and military activities and 
the contract amount is expected to exceed the simplified acquisition 
threshold.
    (8) The contracting officer shall include the clause at 552.211-89, 
Non-Manufactured Wood Packaging Material for Export, in solicitations 
and contracts for supplies when deliveries may be made to both civilian 
and military activities overseas and the contract amount is expected to 
exceed the simplified acquisition threshold.
    (9) The contracting officer shall include the clause 552.211-90, 
Small Parts, in solicitations and contracts for supplies when deliveries 
may be made to both civilian and military activities and the contract 
amount is expected to exceed the simplified acquisition threshold.
    (10) The contracting officer shall include the clause 552.211-91, 
Vehicle Decals, Stickers, and Data Plates, in solicitations and 
contracts for supplies when deliveries may be made to both civilian and 
military activities and the contract amount is expected to exceed the 
simplified acquisition threshold.
    (11) The contracting officer shall include the clause 552.211-92, 
Radio Frequency Identification (RFID) using Passive Tags, in 
solicitations and contracts for supplies when deliveries may be made to 
military activities and the

[[Page 161]]

contract amount is expected to exceed the simplified acquisition 
threshold.
    (c) Supply contracts. The contracting officer shall include the 
clause at 552.211-77, Packing List, in solicitations and contracts for 
supplies, including purchases over the micropurchase threshold. Use 
Alternate I in solicitations and contracts for all Federal Supply 
Schedule Contracts.

[74 FR 66253, Dec. 15, 2009, as amended by 80 FR 28849, May 20, 2015; 81 
FR 36429, June 6, 2016]



             Subpart 511.4_Delivery or Performance Schedules



511.404  Contract clauses.

    In supply contracts, the contracting officer shall use the clauses 
as specified in this section.
    (a) Shelf-life items. The contracting officer shall use the 
following clauses in solicitations and contracts that require delivery 
of shelf-life items within a specified number of months from the date of 
manufacture or production:
    (1) The contracting officer shall insert 552.211-79, Acceptable Age 
of Supplies, if the required shelf-life period is 12 months or less, and 
lengthy acceptance testing may be involved. For items having a limited 
shelf-life, substitute Alternate I when required by the director of the 
portfolio concerned.
    (2) The contracting officer shall insert 552.211-80, Age on 
Delivery, if the required shelf-life period is more than 12 months, or 
when source inspection can be performed within a short time period.
    (b) Stock replenishment contracts. The contracting officer shall 
insert 552.211-81, Time of Shipment, in solicitations and stock 
replenishment contracts that do not include the Availability for 
Inspection, Testing, and Shipment/Delivery clause at 552.211-83 and 
require shipment within 45 calendar days after receipt of the order. If 
shipment is required in more than 45 days, the contracting officer shall 
use Alternate I.
    (c) Indeterminate testing time. The contracting officer shall insert 
552.211-83, Availability for Inspection, Testing, and Shipment/Delivery, 
in solicitations and contracts that provide for source inspection by 
Government personnel and that require lengthy testing for which time 
frames cannot be determined in advance. If the contract is for stock 
items, the contracting officer shall use Alternate I.
    (d) The contracting officer shall insert the clause at 552.211-94, 
Time of Delivery, in solicitations and contracts for supplies for the 
Stock Program when neither of the FAR delivery clauses (FAR 52.211-8 or 
52.211-9) is suitable.

[74 FR 66253, Dec. 15, 2009]



                Subpart 511.6_Priorities and Allocations

    Source: 69 FR 55934, Sept. 16, 2004, unless otherwise noted.



511.600  Scope of subpart.

    Pursuant to the Defense Priorities and Allocations System (DPAS) 
Delegation 3, the Department of Commerce (DOC) has delegated to GSA the 
authority to use the DPAS under certain conditions. DPAS Delegation 3 
restricts use of DPAS authority to GSA supply system procurement in 
support of the Department of Defense (DoD), Department of Energy (DoE), 
and Federal Emergency Management Agency (FEMA) approved programs.

[74 FR 66254, Dec. 15, 2009]



511.601  [Reserved]



511.602  General.

    (a) The purpose of the DPAS is to assure the timely availability of 
industrial resources to meet current national defense, energy, and civil 
emergency preparedness program requirements and to provide an operating 
system to support rapid industrial response in a national emergency. The 
primary statutory authority for the DPAS is Title I of the Defense 
Production Act of 1950, as amended, with additional authority from the 
Selective Service Act of 1948 and the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act. Executive Orders 12919 and 12742 delegate 
to the DOC authority to administer the DPAS. Within the DOC, the Office 
of Strategic Industries and Economic Security (SIES)

[[Page 162]]

is assigned responsibility for DPAS implementation, administration, and 
compliance.
    (b) The DPAS is published in the Code of Federal Regulations at 15 
CFR part 700. This regulation provides an overview, a detailed 
explanation of operations and procedures, and other implementing 
guidance, including information on special priorities assistance and 
compliance.
    (c) Orders placed under DPAS are ``rated orders.'' Rated orders must 
receive preferential treatment only as necessary to meet delivery 
requirements. Rated orders are identified by a rating symbol of either 
``DX'' or ``DO'' followed by a program identification symbol. All ``DO'' 
rated orders have equal priority with each other and take preference 
over unrated orders. All ``DX'' rated orders have equal priority with 
each other and take preference over ``DO'' rated orders and unrated 
orders. A program identification symbol indicates which approved program 
is supported by the rated order.
    (d) The authority delegated to GSA shall not be used to support the 
procurement of any items that--
    (1) Are commonly available in commercial markets for general 
consumption;
    (2) Do not require major modification when purchased for approved 
program use;
    (3) Are readily available in sufficient quantity so as to cause no 
delay in meeting approved program requirements; or
    (4) Are to be used primarily for administrative purposes (including 
Federal Supply Classification (FSC) classes, groups, or items), such as 
for personnel or financial management. The Commissioner, FAS, shall 
issue additional guidance, as may be necessary, to ensure effective 
implementation of its delegated DPAS authority.

[74 FR 66254, Dec. 15, 2009]



511.603  Procedures.

    (a) A DPAS rating may be placed against an entire contract at time 
of award or an individual order issued under an existing, otherwise 
unrated, contract. FAR 11.604 requires contracting officers to insert 
the provision at 52.211-14, Notice of Priority Rating for National 
Defense, Emergency Preparedness, and Energy Program Use, in 
solicitations when the contract or order to be awarded will be a rated 
order and to insert the clause at 52.211-15, Defense Priority and 
Allocation Requirements, in contracts that are rated orders.
    (b) In addition to the FAR provision and clause referenced in 
paragraph (a) of this section, the contract or order must include the 
following (see 15 CFR 700.12):
    (1) The appropriate priority rating symbol (i.e., either ``DO'' or 
``DX'') along with the program identification symbol. When GSA 
contracting officers place DO rated orders, they must use program 
identification symbol ``K1''. When placing a DX-rated order for other 
agencies, GSA contracting officers must use the requesting agency 
program identification symbol from the DoD Master Urgency List and may 
only do so when GSA is acting as the procuring agent for DoD or DoE and 
has received a ``DX'' rated contract or order from either department.
    (2) A required delivery date. The words ``as soon as possible'' or 
``immediately'' do not constitute a required delivery date. Use of 
either a specific date or a specified number of days ARO (after receipt 
of order) is acceptable.
    (3) The written signature on a manually placed order, or the digital 
signature or name on an electronically placed order of an individual 
authorized to place rated orders.
    (4) A statement that reads substantially as follows: ``This is a 
rated order certified for national defense use, and you are required to 
follow all the provisions of the Defense Priorities and Allocations 
System regulation (15 CFR part 700)''.
    (c) Multiple and Single Award Schedule contracts are not rated at 
time of award.

[74 FR 66254, Dec. 15, 2009]



PART 512_ACQUISITION OF COMMERCIAL ITEMS--Table of Contents



    Authority: 40 U.S.C. 486(c).

[[Page 163]]



   Subpart 512.3_Solicitation Provisions and Contract Clauses for the 
                     Acquisition of Commercial Items



512.301  Solicitation provisions and contract clauses for the acquisition
of commercial items.

    (a) Solicitation provisions and clauses. Insert these provisions or 
clauses in solicitations or solicitations and contracts, respectively, 
in accordance with the instructions provided:
    (1) 552.212-71, Contract Terms and Conditions Applicable to GSA 
Acquisition of Commercial Items, when listed clauses apply. The clause 
provides for incorporation by reference of terms and conditions which 
are, to the maximum extent practicable, consistent with customary 
commercial practice. If necessary, tailor this clause.
    (2) 552.212-72, Contract Terms and Conditions Required to Implement 
Statutes or Executive Orders Applicable to GSA Acquisitions of 
Commercial Items, when listed clauses apply. The clause provides for the 
incorporation by reference of terms and conditions required to implement 
provisions of law or executive orders that apply to commercial item 
acquisitions.
    (b) Discretionary use of GSAR provisions and clauses. Consistent 
with the limitations contained in FAR 12.302(c), include in 
solicitations and contracts by addendum other GSAR provisions and 
clauses.
    (c) Use of additional provisions and clauses. The Senior Procurement 
Executive must approve the use of a provision or clause that is either 
not:
    (1) Prescribed in the FAR or GSAR for use in contracts for 
commercial items.
    (2) Consistent with customary commercial practice.
    (d) In solicitations issued in conjunction with the policy and 
procedures in FAR part 14, Sealed Bidding; or FAR part 15, Contracting 
by Negotiation, include the two notices in paragraphs (d)(1) and (d)(2) 
of this section, except that acquisitions of leasehold interests in real 
property, must include only the notice in paragraph (d)(1) of this 
section.
    (1) The information collection requirements contained in this 
solicitation/contract are either required by regulation or approved by 
the Office of Management and Budget pursuant to the Paperwork Reduction 
Act and assigned OMB Control No. 3090-0163.
    (2) The General Services Administration's hours of operation are 8 
a.m. to 4:30 p.m. Requests for preaward debriefings postmarked or 
otherwise submitted after 4:30 p.m. will be considered submitted the 
following business day. Requests for postaward debriefings delivered 
after 4:30 p.m. will be considered received and filed the following 
business day.

[75 FR 5242, Feb. 2, 2010]

[[Page 164]]



           SUBCHAPTER C_CONTRACTING METHODS AND CONTRACT TYPES



                           PART 513 [RESERVED]



PART 514_SEALED BIDDING--Table of Contents



                   Subpart 514.2_Solicitation of Bids

Sec.
514.201  Preparation of invitations for bids.
514.201-1  Uniform contract format.
514.201-2  Part I--The Schedule.
514.201-6  Solicitation provisions.
514.201-7  [Reserved]
514.202  General rules for solicitation of bids.
514.202-4  Bid samples.
514.202-5  Descriptive literature.
514.203-1  Transmittal to prospective bidders.
514.270  Aggregate awards.
514.270-1  Definition.
514.270-2  Guidelines for use.
514.270-3  Evaluation factors for award.
514.270-4  Grouping line items for aggregate award.
514.270-5  Evaluation methodologies for aggregate awards.
514.270-6  Guidelines for using the weight factors method.
514.270-7  Guidelines for using the price list method.

           Subpart 514.4_Opening of Bids and Award of Contract

514.407  Mistakes in bids.
514.407-3  Other mistakes disclosed before award.
514.407-4  Mistakes after award.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37211, July 9, 1999, unless otherwise noted.



                   Subpart 514.2_Solicitation of Bids



514.201  Preparation of invitations for bids.



514.201-1  Uniform contract format.

    Include the following notice in each solicitation:

    The information collection requirements contained in this 
solicitation/contract, are either required by regulation or approved by 
the Office of Management and Budget pursuant to the Paperwork Reduction 
Act and assigned OMB Control No. 3090-0162.



514.201-2  Part I--The Schedule.

    (a) When using Standard Form 33, Solicitation, Offer and Award, 
include the following cautionary notice:
    ``Notice to Bidders--Use Item 13 of the Standard Form 33, 
Solicitation, Offer and Award, to offer prompt payment discounts. The 
Prompt Payment clause of this solicitation sets forth payment terms. Do 
not insert any statement in Item 13 that requires payment sooner than 
the time stipulated in the Prompt Payment clause (See FAR 52.232-25, 
52.232-26, or 52.232-27, as applicable). EXAMPLE: If you insert ``NET 
20'' in Item 13, GSA will reject your bid as nonresponsive because the 
entry contradicts the 30 day payment terms specified in the Prompt 
Payment clause.''
    (b) When using other authorized forms (e.g., Standard Form 1447, 
Solicitation/Contract; Standard Form 1449, Solicitation/Contract/Order 
for Commercial Items), include the notice in paragraph (a) of this 
section. Change the reference to the form number, form title, and item 
number accordingly.

[74 FR 47738, Sept. 17, 2009]



514.201-6  Solicitation provisions.

    When considering all or none bids, insert the provision at 552.214-
70, ``All or None'' Bids, in the solicitation.

[74 FR 47739, Sept. 17, 2009]



514.201-7  [Reserved]



514.202  General rules for solicitation of bids.



514.202-4  Bid samples.

    (a) Requirements for samples in invitations for bids. (1) When bid 
samples are required, the contracting officer shall require bidders to 
submit samples produced by the manufacturer whose products will be 
supplied under the contract.
    (2) The FAR limits use of bid samples to cases where the contracting 
officer cannot describe some characteristics of

[[Page 165]]

a product adequately in the specification or purchase description. This 
usually applies to subjective characteristics. The contracting officer 
may determine that there is a need to examine objective characteristics 
of bid samples to determine the responsiveness of a bid. The contracting 
officer should base the determination on past experience or other valid 
considerations. In the solicitation, separately list ``Subjective 
Characteristics'' and ``Objective Characteristics''.
    (3) A provision appears at 552.214-72, Bid Sample Requirements. This 
provision may be modified to fit the circumstances of a procurement.
    (b) Handling bid samples. (1) Samples from accepted bids must be 
retained for the period of contract performance. If there are no 
outstanding claims regarding the contract, the contracting officer may 
authorize disposal of the samples at the end of the contract term 
following the bidder's instructions.
    (2) If the contracting officer anticipates a claim regarding the 
contract, the contracting officer shall require that the bid samples be 
retained until the claim is resolved.
    (3) The contracting officer shall require that samples from 
unsuccessful bids be retained until award. After award, these samples 
may be disposed of following the bidder's instructions.

[74 FR 47739, Sept. 17, 2009]



514.202-5  Descriptive literature.

    Requirements for Invitations for bids. When using brand name or 
equal purchase descriptions, the provision at FAR 52.211-6 satisfies the 
requirement for descriptive literature.

[74 FR 47739, Sept. 17, 2009]



514.203-1  Transmittal to prospective bidders.

    Prospective bidders, as used in FAR 14.203-1, include both the 
following:
    (a) The incumbent contractor, except when its written response to 
the notice of contract action under FAR subpart 5.2 states a negative 
interest.
    (b) Bidders that responded to recent solicitations for the same or 
similar items.



514.270  Aggregate awards.



514.270-1  Definition.

    Aggregate award means an arrangement whereby two or more separately-
priced line items are combined for award to that bidder whose bid will 
result in the lowest overall cost to the Government for the line items 
as a group. The individual price for each item does not have to be the 
lowest bid received. (See also the definition of a ``line item'' in FAR 
3.302.)



514.270-2  Guidelines for use.

    (a) GSA usually solicits prices and reserves the right to make award 
for individual line items. In some cases it serves GSA's best interest 
to combine two or more line items for an aggregate award. Such cases 
include when:
    (1) Users desire uniformity of design, style, and finish (e.g., 
suites of household furniture).
    (2) The articles will be assembled and used as a unit, and different 
manufacturers' components may not be interchangeable.
    (3) Users have high demand for certain articles, but demand for 
related articles is insufficient to attract competitive bids (e.g., 
various sized of socket wrenches). Awarding the low-demand articles in 
conjunction with the high-demand articles may encourage competition.
    (4) Awarding the low-demand articles in conjunction with the high-
demand articles may encourage competition.
    (5) One location (delivery point) has a large requirement, and 
another location has a requirement too small to individually attract 
competitive bids.
    (6) Awarding and administering numerous small contracts for similar 
articles or services is impractical.
    (b) Before deciding to combine items for aggregate award, the 
contracting officer should consider the following factors:
    (1) The capability of bidders to furnish the types and quantities of 
supplies or services in the aggregate.
    (2) How grouping delivery points will affect bidders.
    (3) Which combinations will accurately project the lowest overall 
cost to the Government.

[[Page 166]]

    (c) The contracting officer should not use an aggregate award if it 
will significantly restrict the number of eligible bidders.

[64 FR 37211, July 9, 1999, as amended at 74 FR 47739, Sept. 17, 2009]



514.270-3  Evaluation factors for award.

    The solicitation should clearly state the basis for evaluating bids 
for aggregate award, require bidders to submit a price on each item 
within the group or a percentage to be added or subtracted from a list 
price, and advise bidders that failure to submit prices as required 
within a group makes a bid ineligible for award for that group.

[74 FR 47739, Sept. 17, 2009]



514.270-4  Grouping line items for aggregate award.

    (a) Supplies and services. This subsection applies to acquisitions 
of supplies and services.
    (b) Effect on compeition. Provide for full and open competition when 
grouping items for award. Grouping items for award may preclude a 
significant of firms from bidding. This occurs if firms are unable to 
provide all the types or quanities of supplies or services, or make 
deliveries to the various delivery points included in the prospective 
aggregate group.
    (c) Grouping different articles. Include only related articles in an 
aggregate group. Related articles are those normally manufactured or 
produced by a majority of prospective bidders. Grouping unrelated 
articles often restricts competition unnecessarily.
    (d) Grouping geographic locations or delivery points. Consider the 
following guidelines before deciding to group different geographic 
locations or delivery points:
    (1) A delivery point may have sufficient requirements so that 
individual shipments involve economic production runs and carload or 
truckload quanities. In this case, list it as a separate line item.
    (2) The types of bidders (i.e., small or large firms, manufacturers 
or distributors, etc.) who responded to previous solicitations can 
provide important information. For example, if previous bidders are 
distributors with franchises in certain territories, grouping different 
territories could tend to restrict competition.
    (3) Transportation costs can affect competition and pricing. They 
may constitute a significant portion of the total delivered cost. Obtain 
the advice and assistance of transportation specialists before grouping 
geographic locations or delivery points. Depending upon the supplies 
being acquired:
    (i) Grouping widespread geographic locations or delivery points may 
reduce competition or result in higher prices. It can cause the loss of 
``area pricing'' advantages provided by a supplier with a single 
production point.
    (ii) Conversely, for many small commercial items (hand tools, locks, 
etc.), manufacturers may quote the same price for delivery anywhere in 
the U.S.
    (iii) Tariff boundaries can also affect how manufacturers price 
deliveries to different areas.

[64 FR 37211, July 9, 1999, as amended at 74 FR 47739, Sept. 17, 2009]



514.270-5  Evaluation methodologies for aggregate awards.

    (a) Definite quantity contracts without options. For definite 
quantity contracts without options, the evaluated bid price is the total 
bid price, as adjusted for any price-related factors identified in the 
solicitation. This reflects the actual cost to the Government and will 
identify the most advantageous bid.
    (b) Indefinite quantity contracts, requirements contracts, and 
options. Indefinite quantity and requirements contracts use estimated 
quantities. Options involve the probability of whether and when the 
options will be exercised. These situations may result in unbalanced 
bids (see FAR 15.404-1(g)), leading to inaccurate evaluation of the 
projected cost and award to other than the most advantageous bid. To 
avoid unbalanced bids, GSA has two preferred methods for evaluating bids 
for aggregate awards: weight factors and price list.
    (1) Weight factors method. Assign a weight to each item in a group. 
The weight is based on the portion of quantities that item represents. 
To evaluate bids, multiply each unit price by its weight factor, then 
total the results.

[[Page 167]]

    (2) Price list method. Establish prices for bidders to use as a base 
for preparing their bids. Prepare a list that identifies a base price 
for each item in a group. Bidders bid a percentage factor to add to or 
subtract from the base price.



514.270-6  Guidelines for using the weight factors method.

    (a) Use the weight factors method when there are reliable estimates 
for the quantities needed in an acquisition. Reliable estimates of 
quantities form the foundation for:
    (1) Accurate evaluation of the projected cost of each bid.
    (2) An appropriate determination of which bid is most advantageous 
to the Government for the aggregate group.
    (b) Assign a weight factor to each item in a group. Develop the 
weight factor by calculating the portion of the total quantity in a 
defined group that each item represents.
    (c) To evaluate bid prices, first multiply the price bid for each 
item (unit price X quantity) by its weight factor. Then, add the 
subtotals together to project the cost for the aggregate group.
    (d) Estimated quantities may be reduced to smaller numbers by a 
common denominator. This may help facilitate the computations involved 
in evaluating bids.
    (e) Consider all price-related factors identified in the 
solicitation. Award to the responsive and responsible bidder with the 
lowest evaluated overall cost to the Government for the aggregate group. 
This represents the most advantageous bid.

[64 FR 37211, July 9, 1999, as amended at 74 FR 47739, Sept. 17, 2009]



514.270-7  Guidelines for using the price list method.

    (a) General. The price list method helps avoid unbalanced bidding 
when making aggregate awards, but lack accurate estimates of anticipated 
quantities. This method establishes base prices for bidders to use in 
preparing their bids.
    (b) Solicitation requirements. When using the price list method, in 
the solicitation:
    (1) Include the price list.
    (2) Include an estimate of requirements.
    (3) Require the bidder to express its price as ``net'' or as a 
percentage added to or subtracted from the list prices for each group. 
Require the bidder to quote only one percentage factor for each group. 
This means that the bidder provides one percentage factor that applies 
to every item in a group; not a separate percentage for each item. 
``Net'' indicates the bidder chooses to submit the list prices as its 
bid.
    (4) Identify the percentage factor in paragraph (b)(3) of this 
section as a price related evaluation factor.
    (c) Developing list prices. Price lists may be developed using one 
or more of the following sources:
    (1) Industry published prices.
    (2) Industry surveys.
    (3) Government cost estimates based on knowledge of the supplies or 
services and previous contract prices.
    (d) First time use for an item or service. The first time the 
contracting officer uses list prices for an item or service, give 
prospective bidders an opportunity to review the proposed list. Also 
provide information on how GSA will use the list prices. This 
information may be provided in a draft solicitation.
    (e) Balanced prices. Ensure that the list prices for the grouped 
items bear a reasonable and balanced relationship to one another. Prices 
may be used from previous awards made using the weight factors method to 
develop price lists. Review those prices first to ensure they did not 
result from unbalanced bidding.
    (f) Evaluation and award. Consider all price-related factors 
identified in the solicitation. Award to the responsive and responsible 
bidder whose percentage factor produces the most favorable price to the 
Government. This represents the most advantageous bid.
    (g) Example. The following illustrates a bidding schedule 
arrangement for a group of items for aggregate award under the price 
list method:

[[Page 168]]



 Drills, Twist, High Speed, Under Federal Specification (No. and Date), and Amendment (No. and Date), Amendment
                      (No. and Date) Wire Gauge Sizes, Straight Shank, Short Length, Type C
----------------------------------------------------------------------------------------------------------------
     Item No.        National Stock No.       Drill size       Est. quantity         Unit           List price
----------------------------------------------------------------------------------------------------------------
                                           Group 1 (Items 1 through 5)
----------------------------------------------------------------------------------------------------------------
1.................      5133-00-189-9246  1.................           2,800  Pkg...............          $11.16
2.................      5133-00-189-9247  2.................           2,400  Pkg...............           11.16
3.................      5133-00-189-9248  3.................           2,800  Pkg...............           10.44
4.................      5133-00-189-9249  4.................           1,600  Pkg...............           10.80
5.................      5133-00-189-9250  5.................           2,000  Pkg...............           10.80
----------------------------------------------------------------------------------------------------------------

    The bid on each item above is the list price shown minus/plus __ 
percent. (Bidder, insert ``net'' or a single percentage amount in the 
blank space and cross out minus or plus, as appropriate.)
    (h) Special considerations for contracts for store stock items. Show 
estimated quantities only if estimates of demand for each item within a 
group can be derived from Government records or verified contractor 
sales reports. Use only current estimates. If the Government's needs 
cannot be estimated, the solicitation may include past orders. (See CG 
Decision, B-209037, 82-2 CPD para 323 (1982).)
    (i) Special considerations for repair and alteration contracts. In 
the solicitation:
    (1) List the estimated quantities for work to be performed during 
both normal working hours and outside of normal working hours.
    (2) State the percent of work anticipated to be performed during 
normal working hours.
    (3) List the unit prices for work to be performed during both normal 
working hours and outside of normal working hours.
    (4) Define ``normal'' in terms of hours and days of the week.
    (5) Advise bidders of the previous year's total expenditures or 
portions of that total attributable to the listed items.
    (6) If providing quantity estimates, state that the estimates are 
for information only and do not constitute guarantees or commitments to 
order items under the contract.
    (7) Solicit two percentage factors for the line item unit prices 
listed: one for the unit prices for work performed during normal working 
hours and the second for the unit prices for work performed outside of 
normal working hours.
    (8) When the solicitation further groups unit prices by trade or 
business category, multiple percentages may be required.
    (9) For the evaluated bid price, add together the following 
percentages:
    (i) The percentage of work performed during normal work hours 
multiplied by the total estimate adjusted by the bidder's percentage 
factor for that portion of the work, plus
    (ii) The percentage of work performed during other than normal 
working hours multiplied by the total estimate adjusted by the bidder's 
percentage factor for that portion of the work.
    (10) Consider other price-related factors identified in the 
solicitation. Make award to the responsible and responsive bidder 
submitting the lowest overall evaluated bid price for the aggregate 
group. This represents the most advantageous bid.

[64 FR 37211, July 9, 1999, as amended at 74 FR 47739, Sept. 17, 2009]



           Subpart 514.4_Opening of Bids and Award of Contract



514.407  Mistakes in bids.



514.407-3  Other mistakes disclosed before award.

    Delegation of authority by head of the agency. Under FAR 14.407-
3(e), contracting directors (see 502.101) are authorized, without power 
of redelegation, to make:
    (a) The determinations regarding corrections and withdrawals under 
FAR 14.407-3(a), (b), and (c); and

[[Page 169]]

    (b) The corollary determinations not to permit withdrawal or 
correction under FAR 14.407-3(d).

[74 FR 47740, Sept. 17, 2009]



514.407-4  Mistakes after award.

    The contracting director and assigned counsel are required to review 
and approve the contracting officer's determinations under FAR 14.407-
4(b) and (c).

[74 FR 47740, Sept. 17, 2009]



PART 515_CONTRACTING BY NEGOTIATION--Table of Contents



   Subpart 515.2_Solicitation and Receipt of Proposals and Information

Sec.
515.204  Contract format.
515.209  Solicitation provisions and contract clauses.
515.209-70  Examination of records by GSA clause.

                     Subpart 515.3_Source Selection

515.305  Proposal evaluation.
515.305-70  Use of outside evaluators.

                     Subpart 515.4_Contract Pricing

515.408  Solicitation provisions and contract clauses.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37214, July 9, 1999, unless otherwise noted.



   Subpart 515.2_Solicitation and Receipt of Proposals and Information



515.204  Contract format.

    (a) The uniform contract format is not required for leases of real 
property (See GSAM 570.116).
    (b) The Senior Procurement Executive is the agency head's designee 
for the purposes of granting exemptions to the use of the Uniform 
Contract Format (see FAR 15.204(e)).

[81 FR 36425, June 6, 2016]



515.209  Solicitation provisions and contract clauses.



515.209-70  Examination of records by GSA clause.

             Clause for Other Than Multiple Award Schedules

    (a) Examination of records by GSA clause for other than multiple 
award schedule (MAS) contracts. Insert the clause at 552.215-70, 
Examination of Records by GSA, in all solicitations and contracts above 
the simplified acquisition threshold, including acquisitions of 
leasehold interests in real property, that meet any of the conditions 
listed below:
    (2) Provide for advance payments, progress payments based on cost, 
or guaranteed loan.
    (3) Contain a price warranty or price reduction clause.
    (4) Involve income to the Government where income is based on 
operations under the control of the contractor.
    (5) Include an economic price adjustment clause where the adjustment 
is not based solely on an established, third party index.
    (6) Are requirements, indefinite-quantity, or letter type contracts 
as defined in FAR part 6.
    (7) Are subject to adjustment based on a negotiated cost escalation 
base.
    (8) Contain the provision of FAR 52.223-4, Recovered Material 
Certification.
    (9) The contracting officer may modify the clause at 552.215-70 to 
define the specific area of audit (e.g., the use or disposition of 
Government-furnished property). Office of General Counsel or the Office 
of Regional Counsel and the Assistant Inspector General for Auditing or 
Regional Inspector General for Auditing, as appropriate, must concur in 
any modifications to the clause.
    (b) Insert the clause at 552.215-73, Notice, in all solicitations 
for negotiated procurements above the simplified acquisition threshold 
in accordance with FAR part 15.

                   Clause for Multiple Award Schedules

    (c) Insert the clause at 552.215-71, Examination of Records by GSA 
(Multiple

[[Page 170]]

Award Schedule), in solicitations and contracts for MAS contracts.
    (d) With the Senior Procurement's Executive approval, you may modify 
the clause at 552.215-71 to provide for post-award access to and the 
right to examine records to verify that the pre-award/modification 
pricing, sales or other data related to the supplies or services offered 
under the contract which formed the basis for the award/modification was 
accurate, current, and complete. The following procedures apply:
    (1) Such a modification of the clause must provide for the right of 
access to expire 2 years after award or modification.
    (2) Before modifying the clause, you must make a determination that 
absent such access there is a likelihood of significant harm to the 
Government and submit it to the Senior Procurement Executive for 
approval.
    (3) The determinations under paragraph (d)(2) of this section must 
be made on a schedule-by-schedule basis.

[64 FR 37214, July 9, 1999, as amended at 81 FR 36425, June 6, 2016]



                     Subpart 515.3_Source Selection



515.305  Proposal evaluation.

    (a) Restrictions placed on a proposal by the submitter. If you 
receive a proposal with more restrictive conditions than those in the 
provision at FAR 52.215-1(e), ask whether the submitter is willing to 
accept the conditions of the paragraph at FAR 52.215-1(e). If the 
submitter refuses, consult with legal counsel on whether to accept the 
proposal as marked or return it.
    (b) Actions before releasing proposal. Before releasing any proposal 
to an evaluator you must take all the following actions:
    (1) Obtain the signed original ``Conflict of Interest Acknowledgment 
and Nondisclosure Agreement'' from each Government and nongovernment 
individual serving as an evaluator. Use the Acknowledgment/Agreement in 
Figure 515.3-1.
    (i) For employees of other Executive agencies, replace the reference 
in paragraph (c) of the Acknowledgement/Agreement to GSA's supplemental 
standards with a reference to the applicable agency.
    (ii) for nongovernment evaluators, substitute paragraph (c) of the 
Acknowledgement/Agreement with the following language and delete 
paragraph (h):

    (c) I have read and understand the requirements of subsection 27(a) 
and 27(b) of the Office of Federal Procurement Policy Act (41 U.S.C. 
423).

    (2) Attach to each proposal a cover page bearing the following 
notice:

                Government Notice for Handling Proposals

    To anyone receiving this proposal or proposal abstract:
    (1) This proposal must be used and disclosed for evaluation purposes 
only.
    (2) You must apply a copy of this Government notice to any 
reproduction or abstract of this proposal.
    (3) You must comply strictly with any authorized restrictive notices 
which the submitter places on this proposal.
    (4) You must not disclose this proposal outside the Government for 
evaluation purposes except to the extent authorized by, and in 
accordance with, the procedures in 48 CFR 515.305-71.



515.305-70  Use of outside evaluators.

    (a) Conditions. To use outside evaluators, you must meet the 
restrictions in FAR 37.203 and 537.2.
    (b) Limitations on disclosing proposal information. You may disclose 
proposal information outside the Government before the Government's 
decision as to contract award only to the extent authorized in this 
section. Disclosure and handling must comply with FAR 3.1 and 503.1.
    (c) Solicitation notice. Include in the solicitation a notice 
substantially as follows:

                    Notice About Releasing Proposals

    (1) The Government intends to disclose proposals received in 
response to this solicitation to nongovernment evaluators.
    (2) Each evaluator will sign and provide to GSA a ``Conflict of 
Interest Acknowledgment and Nondisclosure Agreement.''

[[Page 171]]

 Figure 515.3-1--Conflict of Interest Acknowledgment and Nondisclosure 
                                Agreement

     Conflict of Interest Acknowledgment and Nondisclosure Agreement

    For proposals submitted in response to GAS solicitation no. ____, I 
agree to the following:
    (a) To the best of my knowledge and belief, no conflict of interest 
exists that may either:
    (1) Diminish my capacity to impartially review the proposals 
submitted.
    (2) Or result in a biased opinion or unfair advantage.
    (b) In making the above statement, I have considered all the 
following factors that might place me in a position of conflict, real or 
apparent, with the evaluation proceedings:
    (1) All my stocks, bonds, other outstanding financial interests or 
commitments.
    (2) All my employment arrangements (past, present, and under 
consideration).
    (3) As far as I know, all financial interests and employment 
arrangements of my spouse, minor children, and other members of my 
immediate household.
    (c) I have read and understand the requirements of the Standards of 
Ethical Conduct for Employees of the Executive Branch (5 CFR Part 2635) 
and Supplemental Standards of Ethical Conduct for Employees of the 
General Service Administration (5 CFR Part 6701).
    (d) I have a continuing obligation to disclose any circumstances 
that may create an actual or apparent conflict of interest. If I learn 
of any such conflict, I will report it immediately to the Contracting 
Officer. I will perform no more duties related to evaluating proposals 
until I receive instructions on the matter.
    (e) I will use proposal information for evaluation purposes only. I 
understand that any authorized restriction on disclosure placed on the 
proposal by the prospective contractor, prospective subcontractor, or 
the Government applies to any reproduction or abstracted information of 
the proposal.
    (f) I will use my best efforts to safeguard proposal information 
physically. I will not disclose the contents of, nor release any 
information about, the proposals to anyone other than:
    (1) The Source Selection Evaluation Board or other panel assembled 
to evaluate proposals submitted in response to the solicitation 
identified above.
    (2) Other individuals designed by the contracting Officer.
    (g) After completing evaluation, I will return to the Government all 
copies of the proposals and any abstracts.
    (h) GSA Appropriations Act restriction: These restrictions are 
consistent with and do not supersede, conflict with or otherwise alter 
the employee obligations, rights, or liabilities created by Executive 
Order No. 12958; section 7211 of title 5, United States Code (governing 
disclosure of Congress); section 1034 of title 10, United States Code, 
as amended by the Military Whistleblower Protection Act (governing 
disclosure to Congress by members of the military); section 2302(b)(8) 
of title 5, United States Codes, as amended by the Whistleblower 
Protection Act (governing disclosures of illegality, waste, fraud, abuse 
or public health or safety threats); the Intelligence Identities 
Protection Act of 1982 (50 U.S.C. 421 et seq.) (governing disclosures 
that could expose confidential Government agents); and the statutes 
which protect against disclosure that may compromise the national 
security, including sections 641, 793, 794, 798, and 952 of title 18, 
United States Code, and section 4(b) of the Subversive Activities Act of 
1950 (50 U.S.C. 783(b). The definitions, requirements, obligations, 
rights, sanctions, and liabilities created by said Executive order and 
listed statutes are incorporated into this agreement and are 
controlling.
________________________________________________________________________
(Enter name of evaluator and organization)
________________________________________________________________________
Date



                     Subpart 515.4_Contract Pricing



515.408  Solicitation provisions and contract clauses.

      MAS Requests for Information Other Than Cost or Pricing Data

    (a) Use Alternate IV of the FAR provision at 52.215-20, Requirements 
for Cost or Pricing Data or Information Other Than Cost or Pricing Data, 
for MAS solicitations to provide the format for submission of 
information other than cost or pricing data for MAS solicitations. To 
provide uniformity in requests under the MAS program, insert the 
following in paragraph (b) of the provision:
    (1) An offer prepared and submitted in accordance with the clause at 
552.212-70, Preparation of Offer (Multuiple Award Schedule).
    (2) Commercial sales practices. When the solicitation contains the 
basic clause 552.238-74 Industrial Funding Fee and Sales Reporting, the 
Offeror must submit information in the format provided in this 
solicitation in accordance with the instructions at Figure 515.4-2 of 
the GSA Acquisition Regulation (48 CFR 515.4-2), or submit information 
in the Offeror's own format.
    (3) Any additional supporting information requested by the 
Contracting Officer. The Contracting Officer may require additional

[[Page 172]]

supporting information, but only to the extent necessary to determine 
whether the price(s) offered is fair and reasonable.
    (4) By submission of an offer in response to this solicitation, the 
Offeror grants the Contracting Officer or an authorized representative 
the right to examine, at any time before initial award, books, records, 
documents, papers, and other directly pertinent records to verify the 
pricing, sales and other data related to the supplies or services 
proposed in order to determine the reasonableness of price(s). Access 
does not extend to Offeror's cost or profit information of other data 
relevant solely to the Offeror's determination of the prices to be 
offered in the catalog or marketplace.
    (b) When the contract contains the basic clause 552.238-74 
Industrial Funding Fee and Sales Reporting, insert the following format 
for commercial sales practices in the exhibits or attachments section of 
the solicitation and resulting contract (see FAR 12.303).

                    Commercial Sales Practices Format

Name of Offeror _____ SIN(s) ___

    Note: Please refer to Clause 552.212-70, Preparation of Offer 
(Multiple Award Schedule), for additional information concerning your 
offer. Provide the following information for each SIN (or group of SINs 
or SubSIN for which information is the same).

    (1) Provide the dollar value of sales to the general public at or 
based on an established catalog or market price during the previous 12-
month period or the offerors last fiscal year: $____. State beginning 
and ending of the 12 month period. Beginning ____ ending ____. In the 
event that a dollar value is not an appropriate measure of the sales, 
provide and describe your own measure of the sales of the item(s).
    (2) Show your total projected annual sales to the Government under 
this contract for the contract term, excluding options, for each SIN 
offered. If you currently hold a Federal Supply Schedule contract for 
the SIN the total projected annual sales should be based on your 
mostrecent 12 months of sales under that contract.

SIN ______  $______
SIN ______  $______
SIN ______  $______

    (3) Based on your written discounting policies (standard commercial 
sales practices in the event you do not have written discounting 
policies), are the discounts and any concessions which you offer the 
Government equal to or better than your best price (discount and 
concessions in any combination) offered to any customer acquiring the 
same items regardless of quantity or terms and conditions? YES__ NO__ 
(See definition of ``concession'' and ``discount'' in 552.212-70.)
    (4)(a) Based on your written discounting policies (standard 
commercial sales practices in the event you do not have written 
discounting policies), provide information as requested for each SIN (or 
group of SINs for which the information is the same) in accordance with 
the instructions at Figure 515.4, which is provided in this solicitation 
for your convenience. The information should be provided in the chart 
below or in an equivalent format developed by the offeror. Rows should 
be added to accommodate as many customers as required.

----------------------------------------------------------------------------------------------------------------
                                                      Column 3 Quantity/                           Column 5
        Column 1 Customer          Column 2 Discount        Volume         Column 4 FOB Term      Concessions
----------------------------------------------------------------------------------------------------------------
 
 
 
----------------------------------------------------------------------------------------------------------------

    (b) Do any deviations from your written policies or standard 
commercial sales practices disclosed in the above chart ever result in 
better discounts (lower prices) or concessions than indicated? YES-- 
NO--. If YES, explain deviations in accordance with the instructions at 
Figure 515.4, which is provided in this solicitation for your 
convenience.
    (5) If you are a dealer/reseller without significant sales to the 
general public, you should provide manufacturers' information required 
by paragraphs (1) through (4) above for each item/SINoffered, if the 
manufacturer's sales under any resulting contract are expected to exceed 
$500,000. You must also obtain written authorization from the 
manufacturer(s) for Government access, at any time before award or 
before agreeing to a modification, to the manufacturer's sales records 
for the purpose of verifying the information submitted by the 
manufacturer. The information is required in order to enable the 
Government to make a determination that the offered price is fair and 
reasonable. To expedite the review and processing of offers, you should 
advise the manufacturer(s) of this requirement. The contracting officer 
may require the information be submitted on electronic media with 
commercially available spreadsheet(s). The information may be provided 
by the manufacturer directly to the Government. If the manufacturer's 
item(s) is being offered by multiple dealers/resellers, only one copy of 
the requested information should be submitted to the Government. In

[[Page 173]]

addition, you must submit the following information along with a listing 
of contact information regarding each of the manufacturers whose 
products and/or services are included in the offer (include the 
manufacturer's name, address, the manufacturer's contact point, 
telephone number, and FAX number) for each model offered by SIN:
    (a) Manufacturer's Name.
    (b) Manufacturer's Part Number.
    (c) Dealer's/Reseller's Part Number.
    (d) Product Description.
    (e) Manufacturer's List Price.
    (f) Dealer's/Reseller's percentage discount from list price or net 
prices.

                             (End of format)

    (c) When the contract contains the basic clause 552.238-74 
Industrial Funding Fee and Sales Reporting, include the instructions for 
completing the commercial sales practices format in Figure 515.4-2 in 
solicitations issued under the MAS program.

    Figure 515.4--Instructions for Commercial Sales Practices Format

    If you responded ``yes'' to question (3), on the Commercial Sales 
Practices Format in paragraph (b) of this section, complete the chart in 
question (4)(a) for the customer(s) who receive your best discount. If 
you responded ``no'', complete the chart in question (4)(a) showing your 
written policies or standard sales practices for all customers or 
customer categories to whom you sell at a price (discounts and 
concessions in combination) that is equal to or better than the price(s) 
offered to the Government under this solicitation or with which the 
Offeror has a current agreement to sell at a discount which equals or 
exceeds the discount(s) offered under this solicitation. Such agreement 
shall be in effect on the date the offer is submitted or contain an 
effective date during the proposed multiple award schedule contract 
period. If your offer is lower than your price to other customers or 
customers categories, you will be aligned with the customer or category 
of customer that receives your best price for purposes of the Price 
Reductions clause at 552.238-75. The Government expects you to provide 
information required by the format in accordance with these instructions 
that is, to the best of your knowledge and belief, current, accurate, 
and complete as of 14 calendar days prior to its submission. You must 
also disclose any changes in your price list(s), discounts and/or 
discounting policies which occur after the offer is submitted, but 
before the close of negotiations. If your discount practices vary by 
model or product line, the discount information should be by model or 
product line as appropriate. You may limit the number of models or 
product lines reported to those which exceed 75% of actual historical 
Government sales (commercial sales may be substituted if Government 
sales are unavailable) value of the special item number (SIN).

   Column 1--Identify the Applicable Customer or Category of Customer

    A ``customer'' is any entity, except the Federal Government, which 
acquires supplies or services from the Offeror. The term customer 
includes, but is not limited to original equipment manufacturers, value 
added resellers, state and local Governments, distributors, educational 
institutions (an elementary, junior high, or degree granting school 
which maintains a regular faculty and established curriculum and an 
organized body of students), dealers, national accounts, and end users. 
In any instance where the Offeror is asked to disclose information for a 
customer, the Offeror may disclose information by category of customer 
if the Offeror's discount policies or practices are the same for all 
customers in the category. (Use a separate line for each customer or 
category of customer.)

                     Column 2--Identify the Discount

    The term ``discount'' is as defined in solicitation clause 552.212-
70, Preparation of Offer (Multiple Award Schedule). Indicate the best 
discount (based on your written discounting policies or standard 
commercial discounting practices if you do not have written discounting 
policies) at which you sell to the customer or category of customer 
identified in column 1, without regard to quantity; terms and conditions 
of the agreements under which the discounts are given; and whether the 
agreements are written or oral. Net prices or discounts off of other 
price lists should be expressed as percentage discounts from the price 
list which is the basis of your offer. If the discount disclosed is a 
combination of various discounts (prompt payment, quantity, etc.), the 
percentage should be broken out for each type of discount. If the price 
lists which are the basis of the discounts given to the customers 
identified in the chart are different than the price list submitted upon 
which your offer is based, identify the type or title and date of each 
price list. The contracting officer may require submission of these 
price lists. To expedite evaluation, offerors may provide these price 
lists at the time of submission.

           Column 3--Identify the Quantity or Volume of Sales

    Insert the minimum quantity or sales volume which the identified 
customer or category of customer must either purchase/order, per order 
or within a specified period, to earn a discount indicate the time 
period.

[[Page 174]]

  Column 4--Indicate the FOB Delivery Term for Each Identified Customer

    See FAR 47.3 for an explanation of FOB delivery terms.

  Column 5--Indicate Concessions Regardless of Quantity Granted to the 
               Identified Customer or Category of Customer

    Concessions are defined in solicitation clause 552.12-70, 
Preparation of Offers (Multiple Award Schedule). If the space provided 
is inadequate, the disclosure should be made on a separate sheet by 
reference.
    If you respond ``yes'' to question 4(b) in the Commercial Sales 
Practices Format, provide an explanation of the circumstances under 
which you deviate from your written policies or standard commercial 
sales practices disclosed in the chart on the Commercial Sales Practices 
Format and explain how often they occur. Your explanation should include 
a discussion of situations that lead to deviations from standard 
practice, an explanation of how often they occur, and the controls you 
employ to assure the integrity of your pricing. Examples of typical 
deviations may include, but are not limited to, one time goodwill 
discounts to charity organizations or to compensate an otherwise 
disgruntled customer; a limited sale of obsolete or damaged goods; the 
sale of sample goods to a new customer, or the sales of prototype goods 
for testing purposes.
    If deviations from your written policies or standard commercial 
sales practices disclosed in the chart on the Commercial Sales Practices 
Format are so significant and/or frequent that the Contracting Officer 
cannot establish whether the price(s) offered is fair and reasonable, 
then you may be asked to provide additional information. The Contracting 
Officer may ask for information to demonstrate that you have made 
substantial sales of the item(s) in the commercial market consistent 
with the information reflected on the chart on the Commercial Sales 
Practices Format, a description of the conditions surrounding those 
sales deviations, or other information that may be necessary in order 
for the Contracting Officer to determine whether your offered price(s) 
is fair and reasonable. In cases where additional information is 
requested the Contracting Officer will target the request in order to 
limit the submission of data to that needed to establish the 
reasonableness of the offered price.

                             (End of figure)

    (d) When the contract contains the basic clause 552.238-74 
Industrial Funding Fee and Sales Reporting, insert the clause at 
552.215-72, Price Adjustment--Failure to Provide Accurate Information, 
in solicitations and contracts under the MAS program.
    (e) Use Alternate IV of FAR 52.215-21, Requirements for Cost or 
Pricing Data or Information Other Than Cost or Pricing Data--
Modifications, to provide for submission of information other than cost 
or pricing data for MAS contracts. To provide for uniformity in requests 
under the MAS program, insert the following in paragraph (b) of the 
clause:
    (1) Information required by the clause at 552.238-81, Modifications 
(Multiple Award Schedule).
    (2) Any additional supporting information requested by the 
Contracting Officer. The Contracting Officer may require additional 
supporting information, but only to the extent necessary to determine 
whether the price(s) offered is fair and reasonable.
    (3) By submitting a request for modification, the Contractor grants 
the Contracting Officer or an authorized representative the right to 
examine, at any time before agreeing to a modification, books, record, 
documents, papers, and other directly pertinent records to verify the 
pricing, sales and other data related to the supplies or services 
proposed in order to determine the reasonableness of price(s). Access 
does not extent to Contractor's cost or profit information or other data 
related solely to the Contractor's determination of the prices to be 
offered in the catalog or marketplace.

[64 FR 37214, July 9, 1999, as amended at 65 FR 11247, Mar. 2, 2000; 81 
FR 41136, June 23, 2016]



PART 516_TYPES OF CONTRACTS--Table of Contents



                   Subpart 516.2_Fixed Price Contracts

Sec.
516.203-4  Contract clauses.

               Subpart 516.5_Indefinite-Delivery Contracts

516.506  Solicitation provisions and contract clauses.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37218, July 9, 1999, unless otherwise noted.



                   Subpart 516.2_Fixed Price Contracts



516.203-4  Contract clauses.

    (a) Special Order Program Contracts. In multiyear solicitations and 
contracts, after making the determination required by FAR 16.203-3, use 
552.216-71, Economic Price Adjustment Special Order Program Contracts, 
or a clause

[[Page 175]]

prepared as authorized in paragraph (a)(3) of this subsection.
    (1) If the contract includes one or more options to extend the term 
of the contract, use the clause with its Alternate I or a clause 
substantially the same as 552.216-71 with its Alternate I suitably 
modified.
    (2) In a contract requiring a minimum adjustment before the price 
adjustment mechanism is effectuated, use the basic clause with Alternate 
II or with Alternate I and Alternate II.
    (3) If the Producer Price Index is not an appropriate indicator for 
price adjustment, modify the clause to use an alternate indicator for 
adjusting prices. Similarly, if other aspects of 552.216-71 are not 
appropriate, use an alternate clause following established procedures.
    (b) Adjustments based on cost indexes of labor or material. (1) If 
the contracting officer decides to provide for adjustments based on cost 
indexes of labor or material, prepare a clause that defines each of the 
following elements:
    (i) The type of labor and/or material subject to adjustment;
    (ii) The labor rates, including any fringe benefits and/or unit 
prices of materials that may be increased or decreased;
    (iii) The index(es) that will be used to measure changes in price 
levels and the base period or reference point from which changes will be 
measured; and
    (iv) The period during which the price(s) will be subject to 
adjustment.
    (2) The contracting director must approve use of this clause.

[75 FR 41095, July 15, 2010]



               Subpart 516.5_Indefinite-Delivery Contracts



516.506  Solicitation provisions and contract clauses.

    (a) In solicitations and contracts for Special Order Program items, 
when the contract authorizes FAS and other activities to issue delivery 
or task orders, insert the clause at 552.216-72, Placement of Orders. If 
only FAS will issue delivery or task orders, insert the clause with its 
Alternate I.
    (b) In solicitations and contracts for multiple-award contracts 
where GSA is the only ordering activity, or for GSA orders placed 
against a GSA multiple-award contract, insert clause 552.216-74, GSA 
Task-Order and Delivery-Order Ombudsman. This clause shall not be 
included in GSA-awarded contracts available for multiple agency use 
(i.e., Governmentwide Acquisition Contracts, Multi-Agency Contracts); 
instead, see paragraph (d) of this section.
    (c) If the clause at 552.216-72 is prescribed, insert the provision 
at 552.216-73, Ordering Information, in solicitations for Special Order 
Program items and in other FAS Program solicitations.
    (d) Insert clause 552.216-76, Ordering Agency Task-Order and 
Delivery-Order Ombudsman in all GSA-awarded contracts available for 
multiple agency use (i.e., Governmentwide Acquisition Contracts, Multi-
Agency Contracts).
    (e) The Contracting Officer may insert clause 552.216-75 in 
solicitations and GSA-awarded IDIQ contracts, not including Federal 
Supply Schedule (FSS) contracts. This clause should be included in all 
GSA-awarded Governmentwide acquisition contracts and multi-agency 
contracts. See 538.273 for clauses applicable to FSS contracts.

[75 FR 41096, July 15, 2010, as amended at 81 FR 41136, June 23, 2016; 
82 FR 2250, Jan. 9, 2017]



PART 517_SPECIAL CONTRACTING METHODS--Table of Contents



                  Subpart 517.1_Multi-year Contracting

Sec.
517.109  Contract clauses.

                          Subpart 517.2_Options

517.200  Scope of subpart.
517.202  Use of options.
517.203  [Reserved]
517.207  Exercise of options.
517.208  Solicitation provisions and contract clauses.

    Authority: 40 U.S.C. 486(c).

    Source: 64 FR 37218, July 9, 1999, unless otherwise noted.

[[Page 176]]



                  Subpart 517.1_Multi-year Contracting



517.109  Contract clauses.

    Use of FAR 52.217-2, Cancellation Under Multi-year Contracts, is 
optional in multi-year contracts authorized by 40 U.S.C. 581(c)6 for 
maintenance and repair of fixed equipment in federally-owned buildings 
and services and 40 U.S.C. 501(b)(1)(B) for public utility services.

[64 FR 37218, July 9, 1999, as amended at 81 FR 36422, June 6, 2016]



                          Subpart 517.2_Options



517.200  Scope of subpart.

    This subpart applies to all GSA contracts for supplies and services, 
including:
    (a) Services involving construction, alteration, or repair 
(including dredging, excavating, and painting) of buildings, bridges, 
roads, or other kinds of real property.
    (b) Architect-engineer services.

[81 FR 36422, June 6, 2016]



517.202  Use of options.

    (a) Supplies or services. (1) Options may be used when they meet one 
or more of the following objectives:
    (i) Reduce procurement lead time and associated costs.
    (ii) Ensure continuity of contract support.
    (iii) Improve overall contractor performance.
    (iv) Facilitate longer term contractual relationships with those 
contractors that continually meet or exceed quality performance 
expectations.
    (2) An option is normally in the Government's interest in the 
following circumstances:
    (i) There is an anticipated need for additional supplies or services 
during the contract term.
    (ii) When there is both a need for additional supplies or services 
beyond the basic contract period and the use of multi-year contracting 
authority is inappropriate.
    (iii) There is a need for continuity of supply or service support.
    (3) An option shall not be used if the market price is likely to 
change substantially and an economic price adjustment clause 
inadequately protects the Government's interest.
    (b) Construction. For limitations on the use of options, see 536.213 
and 536.270.

[64 FR 37218, July 9, 1999, as amended at 81 FR 36422, June 6, 2016]



517.203  [Reserved]



517.207  Exercise of options.

    In addition to the requirements of FAR 17.207, the Contracting 
Officer must also:
    (a) Document the contract file with the rationale for an extended 
contractual relationship if the contractor's performance rating under 
the contract is less than satisfactory.
    (b) Determine that the option price is fair and reasonable.

[81 FR 36423, June 6, 2016]



517.208  Solicitation provisions and contract clauses.

    (a) For solicitations under the Federal Acquisition Service's or 
Special Order Program, insert a provision substantially the same as the 
provision at 552.217-70, Evaluation of Options, if both of the following 
conditions apply:
    (1) The solicitation contains an option to extend the term of the 
contract.
    (2) The contract will be fixed price and contain an economic price 
adjustment clause.
    (b) Insert the provision at 552.217-71, Notice Regarding Option(s), 
or a similar provision, in solicitations that include an option for 
increased quantities of supplies or services or an option to extend.

[64 FR 37218, July 9, 1999, as amended at 81 FR 36422, June 6, 2016]

[[Page 177]]



                   SUBCHAPTER D_SOCIOECONOMIC PROGRAMS





PART 519_SMALL BUSINESS PROGRAMS--Table of Contents



               Subpart 519.5_Set-Asides for Small Business

Sec.
519.508  Soliciation provisions for contract clauses.

         Subpart 519.7_The Small Business Subcontracting Program

519.708  Contract clauses.
519.708-70  Solicitation provisions.

 Subpart 519.8_Contracting With the Small Business Administration (The 
                              8(a) Program)

519.870  Direct 8(a) contracting.
519.870-8  Contract clauses.

    Subpart 519.12_Small Disadvantaged Business Participation Program

519.1202  Evaluation factor or subfactor.
519.1202-2  Applicability.

                Subpart 519.70_GSA Mentor-Protege Program

519.7001   Scope of subpart.
519.7002   Definitions.
519.7003   General policy.
519.7004   Incentives for prime contractors.
519.7005   Measurement of program success.
519.7006   Mentor firms.
519.7007   Protege firms.
519.7008   Selection of protege firms.
519.7009   Application process.
519.7010   Agreement contents.
519.7011   Application review.
519.7012   Developmental assistance.
519.7013   Obligation.
519.7014   Internal controls.
519.7015   Reports.
519.7016   Program review.
519.7017   Contract clauses.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37219, July 9, 1999, unless otherwise noted.



               Subpart 519.5_Set-Asides for Small Business



519.508  Solicitation provisions for contract clauses.

    Insert 552.219-70, Allocation of Orders--Partially Set-Asides Items, 
in solicitations and requirements type supply contracts that are 
partially set aside for small business.



         Subpart 519.7_The Small Business Subcontracting Program



519.708  Contract clauses.



519.708-70  Solicitation provisions.

    Insert the following provisions as directed:
    (a) 552.219-71, Notice to Offerors of Subcontracting Plan 
Requirements, on the cover page of solicitations containing the clause 
at FAR 52.219-9, Small Business Subcontracting Plan.
    (b) 552.219-72, Preparation, Submission, and Negotiations of 
Subcontracting Plans, in solicitations requiring submission of the 
subcontracting plan with initial offers.
    (c) 552.219-73, Goals for Subcontracting Plan as follows:
    (1) Use the basic provision in sealed bid solicitations containing 
FAR 52.219-9 if you are able to establish realistic target goals.
    (2) Use Alternate I in:
    (i) sealed bid solicitations if you cannot establish target goals.
    (ii) Negotiated solicitations that include FAR 52.219-9, but do not 
include 552.219-72.



 Subpart 519.8_Contracting With the Small Business Administration (The 
                              8(a) Program)



519.870  Direct 8(a) contracting.



519.870-8  Contract clauses.

    (a) Insert the following clauses in solicitations, contracts, and 
orders issued under the MOU:
    (1) Insert the clause at 552.219-74, Section 8(a) Direct Award.
    (2) Insert the clause at FAR 52.219-14, Limitation on 
Subcontracting.
    (3) Insert the clause at FAR 52.219-18, Notification of Competition 
Limited to Eligible 8(a) Concerns. Substitute the following paragraph 
for paragraph (c) of the clause. Add the word ``Deviation'' at the end 
of the clause title.


[[Page 178]]


    (c) Any award resulting from this solicitation will be made directly 
by the Contracting Officer to the successful 8(a) offeror selected 
through the evaluation criteria set forth in this solicitation.

    (b) Do not use the clauses at FAR 52.219-11, Special 8(a) Contract 
Conditions, FAR 52.219-12, Special 8(a) Subcontract Conditions, or FAR 
52.219-17, Section 8(a) Award.

[64 FR 37219, July 9, 1999, as amended at 77 FR 10666, Feb. 23, 2012]



    Subpart 519.12_Small Disadvantaged Business Participation Program



519.1202  Evaluation factor or subfactor.



519.1202-2  Applicability.

    In addition to the exception in FAR 19.1202-2, do not evaluate the 
extent of participation of SDB concerns in performance of multiple award 
schedule contracts when all fair and reasonable offers from responsible 
sources are accepted.



                Subpart 519.70_GSA Mentor-Protege Program

    Source: 74 FR 41063, Aug. 14, 2009, unless otherwise noted.



519.7001  Scope of subpart.

    The GSA Mentor-Protege Program is designed to encourage and motivate 
GSA prime contractors to assist small businesses concerns, small 
disadvantaged businesses concerns, women-owned small businesses 
concerns, veteran-owned small business concerns, service-disabled 
veteran-owned small businesses concerns, and HUBZone small businesses 
concerns, and enhance their capability of performing successfully on GSA 
contracts and subcontracts, foster the establishment of long-term 
business relationships between these small business entities and GSA 
prime contractors, and increase the overall number of small business 
entities that receive GSA contract and subcontract awards.



519.7002  Definitions.

    The definitions of small business concern, small disadvantaged 
business concern, HUBZone small business concern, women-owned small 
business concern, veteran-owned small business concern, and service-
disabled veteran-owned small business concern are the same as found in 
FAR 2.101. Also see 13 CFR 121, 124, 125 and 126.
    (a) Mentor as used in the GSA Mentor-Protege Program, is a prime 
contractor that elects, on a specific GSA contract, to promote and 
develop small business subcontractors by providing developmental 
assistance designed to enhance the business success of the protege.
    (b) Mentor-Protege Program Manager means an employee in the Office 
of Small Business Utilization (OSBU) (E) designated by the Associate 
Administrator of OSBU to manage the Mentor-Protege Program.
    (c) Protege as used in the GSA Mentor-Protege Program is a small 
business concern that is the recipient of developmental assistance 
pursuant to a mentor-protege arrangement on a specific GSA contract.



519.7003  General policy.

    (a) A large business prime contractor that meets the requirements at 
section 519.7006, and is approved as a mentor firm by the Mentor-Protege 
Program Manager, may enter into an Agreement with a small business 
concern, small disadvantaged business concern, women-owned small 
business concern, veteran-owned small business concern, service-disabled 
veteran-owned small business concern or HUBZone small business concern 
that meets the requirements for being a protege (see 519.7007) in order 
to provide appropriate developmental assistance to enhance the 
capabilities of the protege to perform successfully as a subcontractor 
and supplier.
    (b) A small business prime contractor that is capable of providing 
developmental assistance to proteges, may also be approved as a mentor.
    (c) An active mentor-protege arrangement requires the protege to 
either be a current or newly selected subcontractor under the mentor's 
prime contract with GSA.

[[Page 179]]

    (d) A small business concern's status as a protege under a GSA 
contract shall not have an effect on its ability to seek other prime 
contracts or subcontracts.
    (e) Potential Mentors may submit an application for admittance to 
the Mentor-Protege Program at any time as long as the requirements at 
section 519.7006 are met.
    (f) The determination of affiliation is a function of the SBA.



519.7004  Incentives for prime contractors.

    (a) Under the Small Business Act, 15 U.S.C. 637(d)(4)(E), the GSA is 
authorized to provide appropriate incentives to prime contractors in 
order to encourage subcontracting opportunities for small business 
concerns consistent with the efficient and economical performance of the 
contract. This authority is limited to negotiated procurements, 
including the GSA Multiple Award Schedule contracts and the GSA 
Governmentwide Acquisition Contracts. It does not include orders under 
any GSA contracts.
    (b) Costs incurred by a mentor to provide developmental assistance, 
as described in section 519.7012 to fulfill the terms of their 
agreement(s) with a protege firm(s), are not reimbursable as a direct 
cost under a GSA contract. If GSA is the mentor's responsible audit 
agency under FAR 42.703-1, GSA will consider these costs in determining 
indirect cost rates. If GSA is not the responsible audit agency, mentors 
are encouraged to enter into an advance agreement with their responsible 
audit agency on the treatment of such costs when determining indirect 
cost rates.
    (c) In addition to paragraph (b) of this section, contracting 
officers may give mentors evaluation credit during the source selection 
process for subcontracts awarded under their subcontracting plans 
pursuant to their Mentor-Protege Agreements. (See FAR 15.101-1). 
Therefore:
    (1) Contracting officers may evaluate proposals with subcontracting 
plans containing Mentor-Protege Agreements more favorably than proposals 
with subcontracting plans that do not include Mentor-Protege Agreements; 
and
    (2) Contracting officers may assess the prime contractor's 
compliance with the subcontracting plans submitted in previous contracts 
as a factor in evaluating past performance under certain circumstances 
(see FAR 15.304(c)(3) and 15.305(a)(2)(v)) and determining contractor 
responsibility FAR section 19.705-5(a)(1).
    (d) OSBU Mentoring Award. A non-monetary award may be presented 
annually to the mentoring firm providing the most effective 
developmental support of a protege. The Mentor-Protege Program Manager 
will recommend an award winner to the Administrator of GSA.
    (e) OSBU Mentor-Protege Annual Conference. At the conclusion of each 
year in the Mentor-Protege Program, mentor firms will be invited to 
brief contracting officers, program leaders, office directors, and other 
guests on their experience and progress under the Program. Participation 
is voluntary.



519.7005  Measurement of program success.

    The overall success of the GSA 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 GSA contracts 
since the date of entry into the Program. The baseline that demonstrates 
an increase is determined by comparing the number and total dollar 
amount of subcontract awards made to the identified protege firm(s) 
during the two preceding fiscal years (if any) that are listed in 
application;
    (b) An increase in the number and dollar value of contract and 
subcontract awards (including percentage of subcontract awards) to 
protege firms since the date of the protege's entry into the Program 
(under GSA contracts and contracts awarded by other Federal agencies);
    (c) An increase in the number and dollar value of subcontracts 
awarded to a protege firm by its mentor firm; and

[[Page 180]]

    (d) An increase in subcontracting with protege firms in industry 
categories where they have not traditionally participated within the 
mentor firm's activity (i.e., the protege is expanding its field of 
expertise or is increasing its opportunities in areas where it has not 
traditionally performed).
    (e) Assessments of the semi-annual reports submitted by the mentors 
and ``Lessons Learned'' evaluation submitted by the mentors and proteges 
to the GSA Mentor-Protege Program Manager.



519.7006  Mentor firms.

    (a) Mentors must be:
    (1) A large business prime contractor that is currently performing 
under an approved subcontracting plan as required by FAR 19.7 - Small 
business mentors are exempted; or
    (2) A small business prime contractor that can provide developmental 
assistance to enhance the capabilities of proteges to perform as 
contractors, subcontractors, and suppliers;
    (b) Must be eligible (not listed as an exclusion in the System for 
Award Management (SAM)) for U.S. Government contracts and not excluded 
from the Mentor-Protege Program under section 519.7014(b);
    (c) Must be able to provide developmental assistance that will 
enhance the ability of proteges to perform as contractors and 
subcontractors; and
    (d) Must provide semi-annual reports detailing the assistance 
provided and the cost incurred in supporting proteges.

[74 FR 41063, Aug. 14, 2009, as amended at 81 FR 1532, Jan. 13, 2016]



519.7007  Protege firms.

    (a) For selection as a protege, a firm must be:
    (1) A small business concern, small disadvantaged business concern, 
veteran-owned small business concern, service-disabled veteran-owned 
small business concern, HUBZone small business concern, or women-owned 
small business concern;
    (2) Small for the NAICS code the prime contractor/mentor assigns to 
the subcontract; and
    (3) Eligible (not listed as an exclusion in the (SAM)) for U.S. 
Government contracts and not excluded from the Mentor-Protege Program 
under section 519.7014(b).
    (b) A protege firm may self-represent to a mentor firm that it meets 
the requirements set forth in paragraph (a) of this section. Mentors may 
check the SAM at www.sam.gov to verify that the self-representation of 
the potential protege meets the specified small business and 
socioeconomic category eligibility requirements (see FAR 19.703(b) and 
(d)). HUBZone and small disadvantaged business status eligibility and 
documentation requirements are determined according to 13 CFR parts 124 
and 126.
    (c) A protege firm must not have another formal, active mentor-
protege relationship under GSA's Mentor-Protege Program but may have an 
active mentor-protege relationship under another agency's program.

[74 FR 41063, Aug. 14, 2009, as amended at 81 FR 1532, Jan. 13, 2016]



519.7008  Selection of protege firms.

    (a) Mentor firms will be solely responsible for selecting protege 
firms. Mentors are encouraged to select from a broad base of small 
business concerns including small disadvantaged business concerns, 
women-owned small business concerns, veteran-owned small business 
concerns, service-disabled veteran-owned small business concerns, and 
HUBZone small business concerns. A protege must be either a current 
subcontractor or a newly selected subcontractor for the prime 
contractor's GSA contract.
    (b) Mentor firms may have more than one protege. GSA reserves the 
right to limit the number of proteges participating under each mentor 
firm.
    (c) The selection of protege firms by mentor firms is not 
protestable, except for a protest regarding the size or eligibility 
status of an entity selected by a mentor to be a protege. Such protests 
shall be handled in accordance with FAR 19.703(b). The contracting 
officer shall notify the Office of Small Business Utilization (OSBU) of 
the protest.

[[Page 181]]



519.7009  Application process.

    (a) Prime contractors interested in becoming a mentor firm must 
apply in writing by submitting the GSA Form 3695 to the GSA Mentor-
Protege Program Manager, at GSA Office of Small Business Utilization 
(E), Washington, DC 20405. The Application shall include the Mentor-
Protege Agreement and will be evaluated for approval based on the extent 
to which the company plans to provide developmental assistance.
    (b) The application must contain:
    (1) A statement that the mentor firm is currently performing under 
at least one active approved subcontracting plan (small business 
exempted) and the firm is eligible, as of the date of Application, for 
the award of Federal contracts;
    (2) The number of proposed protege arrangements;
    (3) Data on all current GSA contracts, and subcontracts including 
the contract/subcontract number(s), type of contract(s), period of 
performance (including options), contract/subcontract value(s) including 
options, technical program effort(s) (program title), name of GSA 
Project Manager or Contracting Officer's Representative (including 
contact information), name of contracting officer(s) and contact 
information, and awarding GSA installation;
    (4) Data on total number and dollar value of subcontracts awarded 
under GSA prime contracts within the past 2 years and the number and 
dollar value of such subcontracts awarded to entities who are proposed 
proteges;
    (5) 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
    (6) Agreement information as listed in 519.7010.



519.7010  Agreement contents.

    The contents of the Agreement must contain:
    (a) Names, addresses (including facsimile, e-mail, and homepage) and 
telephone numbers of mentor and protege firms and the name, telephone 
number, and position title within both firms of the person who will 
oversee the Agreement.
    (b) An eligibility statement from the protege stating that it is a 
small business, its primary NAICS code, and when applicable the type of 
small business (small disadvantaged business concern, HUBZone small 
business concern, women-owned small business concern, veteran-owned 
small business concern, or service-disabled veteran-owned small business 
concern).
    (c) A description of the type of developmental assistance that will 
be provided by the mentor firm to the protege firm (see 519.7012).
    (d) Milestones for providing the identified developmental 
assistance.
    (e) Factors to assess the protege firm's developmental progress 
under the Program.
    (f) The anticipated dollar value and type of subcontracts that may 
be awarded to the protege firm consistent with the extent and nature of 
mentor firm's business, and the period of time over which they may be 
awarded.
    (g) Program participation term: State the period of time over which 
the developmental assistance will be performed.
    (h) Mentor termination procedures: Describe the procedures 
applicable to the mentor firm when notifying the Protege firm, in 
writing and at least 30 days in advance, of the mentor firm's intent to 
voluntarily withdraw its participation in the Program, or to terminate 
the Agreement.
    (i) Protege termination procedures: Describe the procedures 
applicable to the protege firm when notifying the mentor firm, in 
writing at least 30 days in advance, of the protege firm's intent to 
terminate the Mentor-Protege Agreement.
    (j) Plan for accomplishing contract work should the Mentor-Protege 
Agreement be terminated or a party

[[Page 182]]

excluded under 519.7014(b). The mentor's prime contract with GSA 
continues even if the Mentor-Protege Agreement or the Mentor-Protege 
Program is discontinued.
    (k) The protege must agree to provide input into the mentor firm's 
semi-annual reports (see 519.7015). The protege must submit a ``Lessons 
Learned'' evaluation along with the mentor firm at the conclusion of the 
Mentor-Protege agreement.
    (l) Other terms and conditions as specified by the Mentor-Protege 
Manager on a case-by-case basis.



519.7011  Application review.

    (a) The Mentor-Protege Program Manager will review the information 
specified in section 519.7009(b) and 519.7010 to establish the Mentor's 
and Protege's eligibility and to ensure all necessary information is 
included. If the application relates to a specific contract, then the 
Mentor-Protege Program Manager will consult with the applicable 
contracting officer regarding the adequacy of the proposed Agreement, as 
appropriate. The Mentor-Protege Program Manager will complete its review 
no later than 30 days after receipt of the application. The contracting 
officer must provide feedback to the Program Manager no later than 10 
days after receipt of the application.
    (b) After the Mentor-Protege Program Manager completes its review 
and provides written approval, the Mentor may execute the Agreement and 
implement the developmental assistance as provided under the Agreement. 
The Mentor-Protege Program Manager will provide a copy of the Mentor-
Protege Agreement to the GSA contracting officer for any GSA contracts 
affected by the Agreement.
    (c) The Agreement defines the relationship between the Mentor and 
the Protege firms only. The Agreement itself does not create any privity 
of contract or contractual relationship between the Mentor and GSA nor 
the Protege and GSA.
    (d) If the Agreement is disapproved, the Mentor may provide 
additional information for reconsideration. The Mentor-Protege Program 
Manager will complete the review of any supplemental information no 
later than 30 days after its receipt. Upon finding deficiencies that GSA 
considers correctable, the Mentor-Protege Program Manager will notify 
the Mentor and Protege and request correction of the deficiencies to be 
provided within 15 days.



519.7012  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) Loans.
    (d) Rent-free use of facilities and/or equipment.
    (e) Temporary assignment of personnel to the protege for purpose of 
training.
    (f) Any other types of developmental assistance approved by the GSA 
Mentor-Protege Program Manager.



519.7013  Obligation.

    (a) The mentor or protege may terminate the Agreement in accordance 
with 519.7010. The mentor will notify the Mentor-Protege Program Manager 
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 to 
terminate the Agreement, or upon receipt of a protege's notice to 
withdraw from the Program.
    (b) Mentor and protege firms will submit a ``Lessons Learned'' 
evaluation to the GSA Mentor-Protege Program Manager at the conclusion 
or termination of each Mentor-Protege Agreement or withdrawal from the 
Mentor-Protege program.



519.7014  Internal controls.

    (a) The GSA Mentor-Protege Program Manager will manage the Program. 
Internal controls will be established by the Mentor-Protege Program 
Manager to achieve the stated Program objectives (by serving as checks 
and

[[Page 183]]

balances against undesired actions or consequences) such as:
    (1) Reviewing and evaluating mentor Applications for realism, 
validity and accuracy of provided information;
    (2) Monitoring each Mentor-Protege Agreement by reviewing semi-
annual progress reports submitted by mentors and proteges on protege 
development to measure protege progress against the master plan 
contained in the approved Agreement;
    (3) Monitoring milestones in the Agreement (see 519.7010); and
    (4) Evaluating ``Lessons Learned'' submitted by the Mentor and the 
Protege as required by section 519.7013 to improve the GSA Mentor-
Protege Program.
    (b)(1) GSA has the authority to exclude mentor or protege firms from 
participating in the GSA Program.
    (2) GSA may rescind approval of an existing Mentor-Protege Agreement 
if it determines that such action is in GSA's best interest. The 
rescission shall be in writing and sent to the Mentor and protege after 
approval by the Director of OSBU. Rescission of an Agreement does not 
change the terms of any subcontract between the Mentor and the Protege.
    (3) Exclusion from the Program does not constitute a termination of 
the subcontract between the mentor and the protege.



519.7015  Reports.

    (a) Semi-annual reports shall be submitted by the mentor to the GSA 
Mentor-Protege Program manager to include information as outlined in 
section 552.219-76(c).
    (b) Proteges must agree to provide input into the mentor firm's 
semi-annual reports detailing the assistance provided and goals achieved 
since agreement inception. However, for cost reimbursable contracts, 
costs associated with the preparation of these reports are unallowable 
costs under these Government contracts and will not be reimbursed by the 
Government.
    (c) The GSA contracting officer, or if applicable the technical 
program manager, shall include an assessment of the prime contractor's 
(mentor's) performance in the Mentor-Protege Program in a quarterly 
``Strengths and Weaknesses'' evaluation report. A copy of this 
assessment will be provided to the Mentor-Protege Program Manager and to 
the mentor and protege.



519.7016  Program review.

    At the conclusion of each year in the Mentor-Protege Program 
(anniversary date of the Mentor-Protege Program), the prime contractor 
and protege, as appropriate, will formally brief the GSA Mentor-Protege 
Program Manager, the technical program manager, and the contracting 
officer regarding Mentor-Protege Program accomplishments pertaining to 
the approved Agreement.



519.7017  Contract clauses.

    (a) The contracting officer shall insert the clause at 552.219-75, 
GSA Mentor-Protege Program, in all unrestricted solicitations (not set 
aside) and contracts that exceed the simplified acquisition threshold 
that offer subcontracting opportunities or in the case of a small 
business, that can offer developmental assistance to a small business 
protege.
    (b) The contracting officer shall insert the clause at 552.219-76, 
Mentor Requirements and Evaluation, in contracts anticipated to exceed 
the simplified acquisition threshold where the prime contractor has 
signed a Mentor-Protege Agreement with GSA.



PART 522_APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
--Table of Contents



                   Subpart 522.1_Basic Labor Policies

Sec.
522.101  Labor relations.
522.101-1  General.
522.103-5  Contract clauses.

   Subpart 522.4_Labor Standards for Contracts Involving Construction

522.406  Administration and enforcement.
522.406-6  Payrolls and statements.

               Subpart 522.8_Equal Employment Opportunity

522.803  Responsibilities.
522.804  Affirmative action programs.
522.804-1  Nonconstruction.
522.804-2  Construction.

[[Page 184]]

522.805  Procedures.
522.807  Exemptions.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37220, July 9, 1999, unless otherwise noted.



                   Subpart 522.1_Basic Labor Policies



522.101  Labor relations.



522.101-1  General.

    The Office of General Counsel (OGC) and the agency labor advisor 
shall--
    (a) Serve as the GSA points of contact on all contractor labor 
relations matters;
    (b) Initiate contact on contractor labor relations matters with 
national offices of labor organizations, Government departments, 
agencies or other governmental organizations. Contracting offices shall 
notify OGC and the agency labor advisor when they are contacted by such 
external organizations;
    (c) Serve as a clearinghouse for information on labor laws 
applicable to Government acquisitions; and
    (d) Respond to questions involving FAR Part 22, Application of Labor 
Laws to Government Acquisitions, or other contractor labor relations 
matters concerning GSA acquisition programs. OGC determines the agency's 
legal position.

[73 FR 46203, Aug. 8, 2008]



522.103-5  Contract clauses.

    Insert FAR 52.222-1, Notice to the Government of Labor Disputes, in 
solicitations and contracts for DX rated orders under the Defense 
Priorities and Allocations System (DPAS). Information on the DPAS can be 
found at FAR Subpart 11.6, Priorities and Allocations.

[73 FR 46203, Aug. 8, 2008]



   Subpart 522.4_Labor Standards for Contracts Involving Construction



522.406  Administration and enforcement.



522.406-6  Payrolls and statements.

    Weekly payrolls and statements of compliance with respect to payment 
of wages are not required from a prime contractor or a subcontractor 
that personally performs work.

[73 FR 46203, Aug. 8, 2008]



               Subpart 522.8_Equal Employment Opportunity



522.803  Responsibilities.

    Contracting officers should submit questions on the applicability of 
E.O. 11246 and implementing regulations to assigned legal counsel.

[64 FR 37220, July 9, 1999, as amended at 73 FR 46203, Aug. 8, 2008]



522.804  Affirmative action programs.



522.804-1  Nonconstruction.

    (a) The requirements of FAR 22.804 also apply to each contractor and 
subcontractor with 50 or more employees that either:
    (1) Serves as a depository of Government funds; or
    (2) Is a financial institution serving as an issuing and paying 
agent for U.S. savings bonds and savings notes.
    (b) The contractors, subcontractors, and financial institutions 
described in 522.804-1(a) must develop a written affirmative action 
compliance program for each of its establishments regardless of the 
contract or holding value, in accordance with 41 CFR 60-1.40.

[64 FR 37220, July 9, 1999, as amended at 73 FR 46203, Aug. 8, 2008]



522.804-2  Construction.

    Goals for the employment of minorities and women in the construction 
industry are established by the Director, Office of Federal Contract 
Compliance Programs (OFCCP), Department of Labor. The current goal for 
the utilization of women is 6.9%, regardless of the location of the 
Federal contract. This

[[Page 185]]

goal was extended indefinitely by the Department of Labor in 1980. The 
current goals for minority participation vary by location and are listed 
in the Technical Assistance Guide for Construction Participation Goals 
for Minorities and Females. This guide can be accessed at http://
www.dol.gov/ofccp/index.htm.

[73 FR 46203, Aug. 8, 2008, as amended at 81 FR 1532, Jan. 13, 2016]



522.805  Procedures.

    (a) To determine whether the contract meets the threshold in FAR 
22.805(a), contracting officers shall include the value of the basic 
contract plus priced options. A contract modification exercising a 
priced option is not a contract award under FAR 22.805(a)(1)(ii) and 
does not a require a preaward clearance.
    (b) Contracting officers shall submit preaward clearance requests 
directly to the appropriate OFCCP regional office. A list of these 
offices can be found at http://www.dol.gov/ofccp/contacts/ofnation2.htm.
    (c) The EEO poster required by FAR 22.805(b) can be found at: http:/
/www.dol.gov/ofccp/regs/compliance/posters/ofccpost.htm In addition to 
providing this poster to each non-exempt contractor, the contracting 
officer shall advise contractors to complete the Employer Information 
Report (EEO-1) at http://www.eeoc.gov/eeo1survey/index.html.

[64 FR 37220, July 9, 1999, as amended at 73 FR 46203, Aug. 8, 2008; 81 
FR 1532, Jan. 13, 2016]



522.807  Exemptions.

    The agency labor advisor submits a request for exemption.



PART 523_ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE
--Table of Contents



Subpart 523.3_Hazardous Material Identification and Material Safety Data

Sec.
523.303  Contract clauses.
523.370  Solicitation provision.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37220, July 9, 1999, unless otherwise noted.



Subpart 523.3_Hazardous Material Identification and Material Safety Data



523.303  Contract clauses.

    (a) Insert 552.223-70, Hazardous Substances, in solicitations and 
contracts for packaged items subject to the Federal Hazardous Substances 
Act and the Hazardous Materials Transportation Act.
    (b) Insert 552.223-71, Nonconforming Hazardous Materials, in 
solicitations and contracts for supplies that contain hazardous 
materials.
    (c) Insert 552.223-73, Preservation, Packaging, Packing, Marking and 
Labeling of Hazardous Materials (HAZMAT) for Shipments, in solicitations 
and contracts for packaged items containing hazardous materials.

[64 FR 37220, July 9, 1999, as amended at 80 FR 36248, June 24, 2015]



523.370  Solicitation provision.

    Insert 552.223-72, Hazardous Material Information, in any 
solicitation that provides for delivery of hazardous materials on an 
f.o.b. origin basis.



PART 525_FOREIGN ACQUISITION--Table of Contents



Subpart 525.1--Buy American Act-Supplies [Reserved]

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37221, July 9, 1999, unless otherwise noted.

[[Page 186]]



              SUBCHAPTER E_GENERAL CONTRACTING REQUIREMENTS





PART 527_PATENTS, DATA, AND COPYRIGHTS--Table of Contents



    Authority: 40 U.S.C. 486(c).

    Source: 64 FR 37221, July 9, 1999, unless otherwise noted.



               Subpart 527.4_Rights in Data and Copyrights



527.409  Solicitation provisions and contract clauses.

    Architect-Engineer Services and Construction Contracts Involving 
                       Architect-Engineer Services

    Insert the following in solicitations and contracts for architect-
engineer services and construction contracts involving architect-
engineer services:
    (a) Insert 552.227-70, Government Rights (Unlimited), instead of FAR 
52.227-17, Rights in Data-Special Works, in contracts, except if 
552.227-71 is prescribed.
    (b) If the Government requires sole property rights and exclusive 
control over the design and data, insert 552.227-71, Drawings and Other 
Data to Become Property of Government, instead of FAR 52.227-17.



PART 528_BONDS AND INSURANCE--Table of Contents



           Subpart 528.2_Sureties and Other Security for Bonds

Sec.
528.202  Acceptability of corporate sureties.

                         Subpart 528.3_Insurance

528.310  Contract clause for work on a Government installation.
528.311  Solicitation provision and contract clause on liability 
          insurance under cost-reimbursement contracts.
528.311-1  Contract clause.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37221, July 9, 1999, unless otherwise noted.



           Subpart 528.2_Sureties and Other Security for Bonds



528.202  Acceptability of corporate sureties.

    Corporate surety bonds must be manually signed by the Attorney-in-
Fact or officer of the surety company and the corporate seal affixed. 
The contracting officer may waive failure of the surety to affix the 
corporate seal as a minor informality. (See B-184120, July 2, 1975, 75-2 
CPD 9.)

[74 FR 17099, Apr. 14, 2009]



                         Subpart 528.3_Insurance



528.310  Contract clause for work on a Government installation.

    Insert the clause at 552.228-5, Government as Additional Insured, in 
each solicitation and contract that meets all the following conditions:
    (a) The contract amount is expected to exceed the simplified 
acquisition threshold; and
    (b) The contract will require work to be performed on Government 
property.

[74 FR 17099, Apr. 14, 2009]



528.311  Solicitation provision and contract clause on liability 
insurance under cost-reimbursement contracts.



528.311-1  Contract clause.

    Use the clause at FAR 52.228-7, Insurance--Liability to Third 
Persons, in solicitations and contracts, other than those for 
construction and those for architect-engineer services, when a cost-
reimbursement contract is contemplated, unless the head of the 
contracting activity waives the requirement for use of the clause.

[74 FR 17099, Apr. 14, 2009]



PART 529_TAXES--Table of Contents



                     Subpart 529.4_Contract Clauses

Sec.
529.401  Domestic contracts.
529.401-70  Purchases at or under the simplified acquisition threshold.

[[Page 187]]

529.401-71  Contracts for supplies and services usable by the DC 
          Government.

    Authority: 40 U.S.C. 486(c).

    Source: 64 FR 37222, July 9, 1999, unless otherwise noted.



                     Subpart 529.4_Contract Clauses



529.401  Domestic contracts.



529.401-70  Purchases at or under the simplified acquisition threshold.

    Insert 552.229-70, Federal, State, and Local Taxes, in purchases and 
contracts estimated to exceed the micropurchase threshold, but not the 
simplified acquisition threshold.



529.401-71  Contracts for supplies and services usable by the DC Government.

    Insert 552.229-71, Federal Tax-DC Government, in solicitations and 
contracts that permit the District of Columbia Government to place 
orders.



PART 532_CONTRACT FINANCING--Table of Contents



          Subpart 532.1_Non-Commercial Item Purchase Financing

Sec.
532.111  Contract clauses for non-commercial purchases.

                   Subpart 532.8_Assignment of Claims

532.806  Contract clauses.

                      Subpart 532.9_Prompt Payment

532.904  Determining payment due dates.
532.905  Payment documentation and process.
532.905-70  Final payment--construction and building service contracts.
532.908  Contract clauses.

      Subpart 532.70_Authorizing Payment by Government Charge Card

532.7002  Solicitation requirements.
532.7003  Contract clause.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37222, July 9, 1999, unless otherwise noted.



          Subpart 532.1_Non-Commercial Item Purchase Financing



532.111  Contract clauses for non-commercial purchases.

    For contracts that include the clause at FAR 52.232-5, Payments 
Under Fixed-Price Construction Contracts, the contracting officer shall 
provide the contractor with GSA Form 2419, Certification of Progress 
Payments Under Fixed-Price Construction Contracts, to be used to make 
the certification required by FAR 52.232-5(c).

[74 FR 54917, Oct. 26, 2009]



                   Subpart 532.8_Assignment of Claims



532.806  Contract clauses.

    Insert the clause at 552.232-23, Assignment of Claims, in 
solicitations and requirements or indefinite quantity contracts under 
which more than one agency may place orders.



                      Subpart 532.9_Prompt Payment



532.904  Determining payment due dates.

    Payment due dates for construction contracts are addressed at FAR 
32.904(d). The following procedures apply to construction and building 
service contracts:
    (a) The amount of final payment must include, as appropriate, 
deductions to cover any of the following:
    (1) Liquidated damages for late completion.
    (2) Liquidated damages for labor violations.
    (3) Amounts withheld for improper payment of labor wages.
    (4) The amount of unilateral change orders covering defects and 
omissions.
    (5) The agreed-upon dollar amount in a Deficiency Report, which is 
included in all applicable Operation and Maintenance (O&M) service 
contracts.
    (b) When the contract is for the performance of building services, 
the contracting officer shall include the clause at 552.232-72, Final 
Payment Under Building Services Contracts.

[74 FR 54917, Oct. 26, 2009]

[[Page 188]]



532.905  Payment documentation and process.

    For contracts of the type shown in 532.7201(a)(1) through (4):
    (a) Contractors are to submit invoices or vouchers to the 
contracting officer for approval. Invoices must be annotated with the 
date of receipt, as required by FAR 32.905. That date will be used to 
determine interest penalties for late payments. The contracting officer 
or designee must review the processing of invoices or vouchers before 
payment to determine if the items and amounts claimed are consistent 
with the contract terms and represent prudent business transactions. The 
contracting officer must ensure that these payments are commensurate 
with physical and technical progress under the contract. If the 
contractor has not deducted questionable amounts from the invoice or 
amounts required to be withheld, the contracting officer must make the 
required deduction, except as provided in 532.7203. Subject to 532.7201, 
the contracting officer must note approval of any payment on (or 
attached to) the invoice or voucher submitted by the contractor and 
forward the invoice or voucher to the appropriate contract finance 
office for retention after certification and scheduling for payment by a 
disbursing office.
    (b) See GSAM 532.7203 for the handling of audit findings.

[74 FR 54917, Oct. 26, 2009]



532.905-70  Final payment--construction and building service contracts.

    The following procedures apply to construction and building service 
contracts:
    (a) The Government shall pay the final amount due the Contractor 
under this contract after the documentation in the payment clauses of 
the contract is submitted. This includes the final release prescribed 
for construction at FAR 52.232-5, and for building services at GSAR 
552.232-72.
    (b) Contracting officers may not process the final payment on 
construction or building service contracts until the contractor submits 
a properly executed GSA Form 1142, Release of Claims, except as provided 
in paragraph (c) of this section.
    (c) In cases where, after 60 days from the initial attempt, the 
contracting officer is unable to obtain a release of claims from the 
contractor, the final payment may be processed with the approval of 
assigned legal counsel.
    (d) The amount of final payment must include, as appropriate, 
deductions to cover any of the following:
    (1) Liquidated damages for late completion.
    (2) Liquidated damages for labor violations.
    (3) Amount withheld for improper payment of labor wages.
    (4) The amount of unilateral change orders covering defects and 
omissions.

[77 FR 6987, Feb. 10, 2012]



532.908  Contract clauses.

    (a) GSA has a FAR deviation that allows this agency to use the 
clause at 552.232-1, Payments, in lieu of the clause at FAR 52.232-1, 
Payments.
    (b) General. Before exercising the authority to modify the date for 
constructive acceptance or constructive approval of progress payments in 
paragraph (a)(5)(i) of the clause at FAR 52.232-25, Prompt Payment, the 
contracting officer must prepare a written justification explaining why 
a longer period is necessary. An official one level above the 
contracting officer must approve the justification. The time needed 
should be determined on a case-by-case basis, but the specified 
constructive acceptance period shall not exceed 30 days.
    (c) Stock, Special Order, and Schedules Programs. (1) GSA has 
obtained a FAR Deviation to authorize payment within 10 days of receipt 
of a proper invoice. The authority applies only to:
    (i) Orders placed by GSA under the referenced programs;
    (ii) That include FAR 52.232-33, Mandatory Information for 
Electronic Funds Transfer Payment; and
    (iii) For which the order is placed, and the contractor submits 
invoices, using EDI in accordance with the Trading Partner Agreement.
    (2) If the contract is for commercial items and will include FAR 
52.212-4, use the clause with its Alternate II. If the contract is not 
for commercial items, use the clause at 552.232-25,

[[Page 189]]

Prompt Payment, instead of FAR 52.232-25.

[74 FR 54918, Oct. 26, 2009]



      Subpart 532.70_Authorizing Payment by Government Charge Card



532.7002  Solicitation requirements.

    (a) In solicitations for supplies and services, except FSS schedule 
solicitations, request offerors to indicate if they will accept payment 
by Governmentwide commercial purchase card. Identify the card brand(s) 
under the GSA SmartPay program that may be used to make payments under 
the contract, on the cover page or in Section L of the solicitation.
    (b) For FSS schedule contracts, identify the card brand(s) under the 
GSA SmartPay program that may be used to make payments under the 
contract in the contract award letter.
    (c) For orders placed by GSA, you may authorize payment by 
Governmentwide commercial purchase card only for orders that do not 
exceed $100,000 (see GSA Order, Guidance on Use of the Credit Card for 
Purchases (CFO 4200.1)).
    (d) Consider requesting offerors to designate different levels for 
which they may accept payment by Governmentwide commercial purchase 
card, for example:

    ``If awarded a contract under this solicitation, the offeror agrees 
to accept payment by Governmentwide commercial purchase card for orders 
of:

--$2,500 or less
--$25,000 or less
--$50,000 or less
--$100,000 or less''

[65 FR 11247, Mar. 2, 2000]



532.7003  Contract clause.

    For indefinite-delivery, indefinite-quantity (IDIQ) contracts other 
than Schedules, insert the clause at 552.232-77, Payment By Government 
Charge Card, if the contract will provide for payment by Government 
charge card as an alternative method of payment for orders. For Schedule 
contracts that provide for payment using the Government charge card, use 
the clause(s) prescribed at part 538.

[74 FR 54918, Oct. 26, 2009]



PART 533_PROTESTS, DISPUTES, AND APPEALS--Table of Contents



                         Subpart 533.1_Protests

Sec.
533.103  Protests to the agency.
533.103-1  Filing a protest.

                   Subpart 533.2_Disputes and Appeals

533.209  Suspected fraudulent claims.
533.211  Contracting officer's decision.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37224, July 9, 1999, unless otherwise noted.



                         Subpart 533.1_Protests



533.103  Protests to the agency.



533.103-1  Filing a protest.

    (a) Any protester filing an agency protest has the choice of 
requesting either that the contracting officer or the Agency Protest 
Official decide the protest. If the protest is silent on this matter, 
the contracting officer will decide the protest. If a party requests a 
review at a level above the contracting officer, the Agency Protest 
Official will decide the protest. The decision by the Agency Protest 
Official for GSA is an alternative to a decision by the contracting 
officer on a protest. The Agency Protest Official for GSA will not 
consider an appeal of the contracting officer's decision on an agency 
protest.
    (b) If an agency protest is filed, the deciding official uses the 
procedures in FAR 33.103 and this section to resolve the protest. The 
deciding official will provide a fair and quick review of any protest 
filed with the agency.
    (c) The filing timeframes in FAR 33.103(e) apply. An agency protest 
is filed when the complete protest is received at the location the 
solicitation designates for serving protests. GSA's hours of operation 
are 8 a.m. to 4:30 p.m. Protests delivered after 4:30 p.m. will be 
considered received and filed the following business day.
    (d) The protest must meet all the following conditions:

[[Page 190]]

    (1) Include the information required by FAR 33.103(d)(2).
    (2) Indicate that it is a protest to the agency.
    (3) Be filed in writing with the contracting officer.
    (4) State whether the protester chooses to have the contracting 
officer or the Agency Protest Official decide the protest. If the 
protest does not include the protester's choice, then the contracting 
officer will decide the protest (see paragraph (a) of this subsection).
    (e) The following procedures apply to information submitted in 
support of or in response to an agency protest:
    (1) GSA procedures do not provide for any discovery.
    (2) The deciding official has discretion to request additional 
information from either the agency or the protester, orally or in 
writing, as may be necessary to render a timely decision on the protest. 
However, protests are normally decided on the basis of information 
initially provided by the protester and the agency.
    (3) To the extent permitted by law and regulations, the parties may 
exchange relevant information.
    (4) The agency must make a written response to the protest within 
ten days unless another date is set by the deciding official.
    (5) The agency must also provide the protester with a copy of the 
response on the same day it files the protest response with the deciding 
official. If the agency believes it needs to redact or withhold any 
information in the response from the protester, it should identify and 
provide the information to the deciding official for in camera review.
    (f) A protester may represent itself or be represented by legal 
counsel. GSA will not reimburse the protester for any legal fees related 
to the agency protest.
    (g) GSA may dismiss or stay proceedings on an agency protest if a 
protest on the same or similar basis is filed with a protest forum 
outside of GSA.

[73 FR 74614, Dec. 9, 2008]



                   Subpart 533.2_Disputes and Appeals



533.209  Suspected fraudulent claims.

    In GSA, the agency official responsible for investigating fraud is 
the Office of Inspector General.

[73 FR 74614, Dec. 9, 2008]



533.211  Contracting officer's decision.

    The contracting officer's written decision must include the 
paragraph at FAR 33.211(a)(4)(v). The contracting officer shall state in 
the decision that a contractor's notice of appeal to the Civilian Board 
of Contract Appeals (CBCA) should include a copy of the contracting 
officer's decision.

[73 FR 74614, Dec. 9, 2008]

[[Page 191]]



             SUBCHAPTER F_SPECIAL CATEGORIES OF CONTRACTING





PART 536_CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS--Table of Contents



                          Subpart 536.1_General

Sec.
536.101  Applicability.

      Subpart 536.2_Special Aspects of Contracting for Construction

536.213  Special procedures for sealed bidding in construction 
          contracting.
536.213-3  Invitations for bids.
536.213-370  Bids that include alternates.
536.213-371  Bids that include options.
536.213-372  Bids that include both alternates and options.
536.270  Exercise of options.

                     Subpart 536.5_Contract Clauses

536.570  Supplemental provisions and clauses.
536.570-1  Definitions.
536.570-2  Authorities and limitations.
536.570-3  [Reserved]
536.570-4  Basis of award--construction contract.
536.570-5--536.570-7  [Reserved]
536.570-8  Specifications and drawings.
536.570-9  Shop drawings, coordination drawings, and schedules.
536.570-10--536.570-11  [Reserved]
536.570-12  Use of equipment by the Government.
536.570-13  Subcontracts.

                Subpart 536.6_Architect-Engineer Services

536.602  Selection of firms for architect-engineer contracts.
536.602-1  Selection criteria.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37224, July 9, 1999, unless otherwise noted.



                          Subpart 536.1_General



536.101  Applicability.

    This part supplements FAR Part 36 policies and procedures applicable 
to contracting for construction and architect-engineer services. 
Contracts for construction management services are covered by FAR Part 
37 and GSAM Part 537. Part 536 shall take precedence when the 
acquisition involves (1) construction or architect-engineer services, 
and (2) when the requirement is inconsistent with another part of the 
GSAR.

[81 FR 4594, Jan. 27, 2016]



      Subpart 536.2_Special Aspects of Contracting for Construction



536.213  Special procedures for sealed bidding in construction contracting.



536.213-3  Invitations for bids.



536.213-370  Bids that include alternates.

    (a) The base bid must include all features essential to a sound and 
adequate building design. If it appears that funds available for a 
project may be insufficient to include all desired features in the base 
bid, you may issue a solicitation for a base bid and include one or more 
alternates in the order of priority. Use alternates only if they are 
clearly justified and involve substantial amounts of work in relation to 
the base bid. Their use must be limited and should involve only ``add'' 
alternates.
    (b) Before opening bids that include alternates, determine, and 
record in the contract file, the amount of funds available for the 
project. The amount recorded must be announced at the beginning of the 
bid opening. The amount is the controlling factor in determining the low 
bidder. This amount may be increased later when determining the 
alternate items to award to the low bidder if the following condition is 
met: the award amount of the base bid plus the combination of alternate 
items does not exceed the amount offered for the base bid and the same 
combination of alternate items by any other responsible bidder whose bid 
conforms to the solicitation. This requirement prevents the displacement 
of the low bidder by manipulating the alternates to be used.



536.213-371  Bids that include options.

    (a) Subject to the limitations in paragraph (c) of this section, you 
may include options in contracts if it is in the Government's interest.

[[Page 192]]

    (b) the appropriate use of options may include, but is not limited 
to, any of the following:
    (1) If additional work is anticipated but funds are not expected to 
be available at the time of award, and it would not be practicable to 
award a separate contract or to permit an additional contractor to work 
on the same site.
    (2) If fixed building equipment, e.g., elevators or escalators, will 
be installed under the construction contract and it is advantageous to 
have the installer of the equipment maintain and service the equipment 
during the warranty period.
    (c) You must not use options under any of the following conditions:
    (1) the prospective option represents known firm requirements for 
which funds are available unless competition for the option quantity is 
impracticable once the initial contract is awarded.
    (2) The contractor will incur undue risks; e.g., the price or 
availability of necessary materials or labor is not reasonably 
foreseeable.
    (d) Solicitations containing option provisions must state the period 
within which the options may be exercised.
    (e) Solicitations must state whether the basis of award is inclusive 
or exclusive of the options. Before issuing a solicitation that includes 
evaluated options, you must determine that there is reasonable certainty 
that funds will be made available to permit exercise of the option.



536.213-372  Bids that include both alternates and options.

    (a) Solicitations may include both alternates and options if the 
conditions in 536.213-370, Bids that include alternates, and 536.213-
371, Bids that include options, are satisfied. In these solicitations, 
the low bidder for purposes of award is the responsible bidder offering 
the lowest aggregate price for the base bid and the alternates, in the 
order of priority listed in the solicitation, that provide the most work 
features within the funds available at bid opening, plus all options 
designated to be evaluated.
    (b) The basis of award may require the evaluation of options 
associated with alternates if the related alternate is selected.
    (c) Before opening bids that include both alternates and options, 
determine, and record in the contract file, the amount of funds 
available for the project (i.e., for the base bid and alternate work). 
The amount recorded must be announced at the beginning of the bid 
opening. This amount may be increased later when determining the 
alternate items to be awarded to the low bidder if the following 
condition is met: the award amount of the base bid and evaluated options 
plus the alternate items does not exceed the amount offered for the base 
bid, the evaluated options, and the same combination of alternate items 
by any other responsible bidder whose bid conforms to the solicitation.



536.270  Exercise of options.

    (a) If exercising an option, notify the contractor, in writing, 
within the time period specified in the contract.
    (b) Exercise options only after determining that all the following 
conditions exist:
    (1) Funds are available.
    (2) The requirement covered by the option fulfills an existing 
Government need.
    (3) Exercising the option is the most advantageous method of 
satisfying the Government's need, price and other factors considered.
    (c) Before exercising an option, you must determine that the action 
complies with the option's terms and this section's requirements. 
Include your written determination in the contract file.
    (d) The contract modification, or other written document which 
notifies the contractor of the exercise of the option, must cite the 
option clause as authority. If exercising an unpriced or unevaluated 
option, cite the statutory authority permitting the use of other than 
full and open competition (see FAR 6.302 and 517.207).

[[Page 193]]



                     Subpart 536.5_Contract Clauses



536.570  Supplemental provisions and clauses.



536.570-1  Definitions.

    Insert 552.236-70, Definitions, in solicitations and contracts if 
construction, dismantling, demolition, or removal of improvements is 
contemplated.



536.570-2  Authorities and limitations.

    Insert 552.236-71, Authorities and Limitations, in solicitations and 
contracts if construction, dismantling, demolition, or removal of 
improvements is contemplated and the contract amount is expected to 
exceed the simplified acquisition threshold.



536.570-3  [Reserved]



536.570-4  Basis of award--construction contract.

    (a) Insert a provision substantially the same as 552.236-73, Basis 
of Award--Construction Contract, in solicitations for fixed-price 
construction contracts except if any of the following conditions apply:
    (1) The solicitation requires the submission of a lump-sum bid only.
    (2) The solicitation is for an indefinite quantity contract.
    (3) The contract amount is not expected to exceed the simplified 
acquisition threshold.
    (b) Instructions for use.

------------------------------------------------------------------------
     If the solicitation requests the
          submission of a . . .                  Then use the . . .
------------------------------------------------------------------------
(1) Base bid and unit prices.............  Basic provision.
(2) Base bid and options.................  Provision with its Alternate
                                            I.
(3) Base bid and alternates..............  Provision with its Alternate
                                            II.
(4) Base bid, alternates, and options....  Provision with its Alternate
                                            III.
------------------------------------------------------------------------



536.570-5--536.570-7  [Reserved]



536.570-8  Specifications and drawings.

    Insert the clause at 552.236-77, Specifications and Drawings, in 
solicitations and contracts if construction, dismantling, demolition, or 
removal of improvements is contemplated and the contract amount is 
expected to exceed the simplified acquisition threshold.



536.570-9  Shop drawings, coordination drawings, and schedules.

    Insert the clause at 552.236-78, Shop Drawings, Coordination 
Drawings, and Schedules, in solicitations and contracts if construction 
is contemplated and the contract amount is expected to exceed the 
simplified acquisition threshold.



536.570-10--536.570-11  [Reserved]



536.570-12  Use of equipment by the Government.

    Insert the clause at 552.236-81, Use of Equipment by the Government, 
in contracts requiring heating and air-conditioning of existing 
buildings if it may be necessary for the Government to operate all or 
part of the equipment before final acceptance of the contract.



536.570-13  Subcontracts.

    Insert 552.236-82, Subcontracts, in solicitations and contracts for 
construction if the contract amount is expected to exceed the simplified 
acquisition threshold.



                Subpart 536.6_Architect-Engineer Services



536.602  Selection of firms for architect-engineer contracts.



536.602-1  Selection criteria.

    (a) FAR 36.602-1 requires that agencies include ``location in the 
general geographical area of the project and knowledge of locality of 
the project'' as one of several selection criteria.
    (1) Do not use this evaluation factor as a minimum qualification 
requirement for determining whether a firm is eligible to compete for a 
proposed project.
    (2) This factor must not exceed 5 percent of the total weight of all 
evaluation criteria. In order to receive maximum score for this factor, 
the architect-engineer firm(s) must demonstrate that at least 35 percent 
of the architect-engineer contract services (based on the total contract 
price) will be accomplished within the geographical boundaries 
established for the project.
    (3) Under an approved class deviation from FAR 36.602-1(a)(5), this 
factor does not apply to projects that the

[[Page 194]]

Chief Architect of GSA determines have national significance.
    (b) The public announcement (FedBizOpps notice) for a proposed 
project should identify the general geographical area of the project by 
either:
    (1) A radius in miles or other appropriate unit of measure.
    (2) The Standard Metropolitan Statistical Area, county(ies), 
state(s) surrounding the project, or other appropriate geographic 
boundaries.
    (c) Architect-engineer selections under the Design Excellence 
Program must apply the geographical evaluation criteria in the second 
phase.
    (d) The public announcement (FedBizOpps notice) must provide the 
number of calendar days the architect-engineer of record has to 
establish a production capability within the general geographical area 
of the project. You may allow the architect-engineer of record up to 45 
calendar days after contract award to establish this production 
capability.

[65 FR 11247, Mar. 2, 2000, as amended at 81 FR 1532, Jan. 13, 2016]



PART 537_SERVICE CONTRACTING--Table of Contents



                 Subpart 537.1_Service Contracts_General

Sec.
537.110  Solicitation provisions and contract clauses.

             Subpart 537.2_Advisory and Assistance Services

537.201  Definitions.
537.270  Contract clause.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37226, July 9, 1999, unless otherwise noted.



                 Subpart 537.1_Service Contracts_General



537.110  Solicitation provisions and contract clauses.

    The following provision and clauses apply to contracts for building 
services:
    (a) If the contract is expected to exceed the simplified acquisition 
threshold and it is not initiated with AbilityOne under the Javits-
Wagner-O'Day Act insert 552.237-71, Qualifications of Employees, in the 
solicitation and contract. If needed, use supplemental provisions or 
clauses to describe specific requirements for employees performing work 
on the contract.
    (b) Insert 552.237-72, Prohibition Regaring ``Quasi-Military Armed 
Forces,'' in solicitations and contracts for guard service.

[65 FR 41379, July 5, 2000, as amended at 74 FR 20606, May 5, 2009; 79 
FR 62884, Oct. 21, 2014; 81 FR 1532, Jan. 13, 2016]



             Subpart 537.2_Advisory and Assistance Services



537.201  Definitions.

    As used in this subpart--
    Evaluation or analysis of a proposal means proposal evaluation as 
described in FAR 15.305. It includes: Cost or price evaluation using 
cost or price analysis, as defined in FAR 15.404.
    Proposal means a proposal submitted for an initial contract award. 
(See FAR 37.203(d)). It does not include proposals submitted after 
contract award, such as value engineering proposals, proposals related 
to contract modifications, claims, or other contract administration 
actions.
    Readily available means that employees with the requisite training 
and capability are employed by the agency, capable of handling 
additional work relating to other duties as assigned by management, and 
that the travel and other costs associated with using covered personnel 
does not exceed the projected cost of a contract for evaluation and 
analysis services.
    Requisite training and capability means training and capability 
necessary to successfully perform the task or contract at issue in the 
time and in the manner required. It may include relevant experience, 
recent performance of work of similar size and scope, specific training 
and other factors that the contracting officer determines are necessary 
to the successful performance of the task or contract at issue.

[74 FR 20606, May 5, 2009]

[[Page 195]]



537.270  Contract clause.

    Insert the clause at 552.237-73, Restriction on Disclosure of 
Information, in solicitations and contracts for proposal evaluation and 
analysis services.



PART 538_FEDERAL SUPPLY SCHEDULE CONTRACTING--Table of Contents



  Subpart 538.2_Establishing and Administering Federal Supply Schedules

Sec.
538.270  Evaluation of multiple award schedule (MAS) offers.
538.271  MAS contract awards.
538.272  MAS price reductions.
538.273  Contract clauses.

            Subpart 538.70_Purchasing by Non-Federal Entities

538.7000  Scope of subpart.
538.7001  Definitions.
538.7002  General.
538.7003  Policy.
538.7004  Solicitation provisions and contract clauses.

Subpart 538.71 [Reserved]

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37227, July 9, 1999, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 538 appear at 69 FR 
28065, May 18, 2004.



  Subpart 538.2_Establishing and Administering Federal Supply Schedules



538.270  Evaluation of multiple award schedule (MAS) offers.



538.270-1  Evaluation of offers without access to transactional data.

    (a) Applicability. Utilize this evaluation methodology for 
negotiating MAS offers when the commercial sales practices format is 
included in the solicitation (see 515.408).
    (b) When offerors have commercial catalogs, negotiate concessions 
from established catalogs, including price and non-price terms and 
conditions.
    (c) The Government will seek to obtain the offeror's best price (the 
best price given to the most favored customer). However, the Government 
recognizes that the terms and conditions of commercial sales vary and 
there may be legitimate reasons why the best price is not achieved.
    (d) Establish negotiation objectives based on a review of relevant 
data and determine price reasonableness.
    (e) When establishing negotiation objectives and determining price 
reasonableness, compare the terms and conditions of the MAS solicitation 
with the terms and conditions of agreements with the offeror's 
commercial customers. When determining the Government's price 
negotiation objectives, consider the following factors:
    (1) Aggregate volume of anticipated purchases.
    (2) The purchase of a minimum quantity or a pattern of historic 
purchases.
    (3) Prices taking into consideration any combination of discounts 
and concessions offered to commercial customers.
    (4) Length of the contract period.
    (5) Warranties, training, and/or maintenance included in the 
purchase price or provided at additional cost to the product prices.
    (6) Ordering and delivery practices.
    (7) Any other relevant information, including differences between 
the MAS solicitation and commercial terms and conditions that may 
warrant differentials between the offer and the discounts offered to the 
most favored commercial customer(s). For example, an offeror may incur 
more expense selling to the Government than to the customer who receives 
the offeror's best price, or the customer (e.g., dealer, distributor, 
original equipment manufacturer, other reseller) who receives the best 
price may perform certain value-added functions for the offeror that the 
Government does not perform. In such cases, some reduction in the 
discount given to the Government may be appropriate. If the best price 
is not offered to the Government, you should ask the offeror to identify 
and explain the reason for any differences. Do not require offerors to 
provide detailed cost breakdowns.
    (f) You may award a contract containing pricing which is less 
favorable than the best price the offeror extends

[[Page 196]]

to any commercial customer for similar purchases if you make a 
determination that both of the following conditions exist:
    (1) The prices offered to the Government are fair and reasonable, 
even though comparable discounts were not negotiated.
    (2) Award is otherwise in the best interest of the Government.
    (g) State clearly in the award document the price/discount 
relationship between the Government and the identified commercial 
customer (or category of customers) upon which the award is based.

[81 FR 41136, June 23, 2016]



538.271  MAS contract awards.

    (a) MAS awards will be for commercial items as defined in FAR 2.101.
    (b) Before awarding any MAS contract, determine that the offered 
prices are fair and reasonable (see FAR subpart 15.4 and 538.270). 
Document the negotiation and your determination using FAR 15.406-3 as 
guidance.

[64 FR 37227, July 9, 1999, as amended at 81 FR 41137, June 23, 2016]



538.272  MAS price reductions.

    (a) Applicability. This section applies when the contract contains 
the basic clause 552.238-74 Industrial Funding Fee and Sales Reporting.
    (b) The basic clause and Alternate I of 552.238-75, Price 
Reductions, requires the contractor to maintain during the contract 
period the negotiated price/discount relationship (and/or term and 
condition relationship) between the eligible ordering activities and the 
offeror's customer or category of customers on which the contract award 
was predicated (see 538.271(c)). If a change occurs in the contractor's 
commercial pricing or discount arrangement applicable to the identified 
commercial customer (or category of customers) that results in a less 
advantageous relationship between the eligible ordering activities and 
this customer or category of customers, the change constitutes a ``price 
reduction.''
    (c) Ensure that the contractor understands the requirements of 
section 552.238-75 and agrees to report all price reductions to the 
Contracting Officer as provided for in the clause.

[81 FR 41137, June 23, 2016]



538.273  Contract clauses.

    (a) Multiple award schedules. Insert in solicitations and contracts:
    (1) 552.238-70, Identification of Electronic Office Equipment 
Providing Accessibility for the Handicapped, if you include electronic 
office equipment items.
    (2) 552.238-71, Submission and Distribution of Authorized FSS 
Schedule Pricelists.
    (3) 552.238-72, Identification of Products That Have Environmental 
Attributes.
    (4) 552.238-73, Cancellation.
    (b) Multiple and single award schedules. Insert the following in 
solicitations and contracts:
    (1) 552.238-74, Industrial Funding Fee and Sales Reporting. Use 
Alternate I for Federal Supply Schedules with Transactional Data 
Reporting requirements. Clause 552.238-75 Alternate I should also be 
used when vendors agree to include clause 552.238-74 Alternate I in the 
contract.
    (2) 552.238-75, Price Reductions. Use Alternate I for Federal Supply 
Schedules with Transactional Data Reporting requirements. This alternate 
clause is used when vendors agree to include clause 552.238-74 Alternate 
I in the contract.
    (3) 552.238-81, Modifications (Federal Supply Schedule). (i) Use 
Alternate I for Federal Supply Schedules that only accept electronic 
modifications.
    (ii) Use Alternate II for Federal Supply Schedules with 
Transactional Data Reporting requirements. This alternate clause is used 
when vendors agree to include clause 552.238-74 Alternate I in the 
contract.

[64 FR 37227, July 9, 1999, as amended at 68 FR 24378, May 7, 2003; 68 
FR 41288, July 11, 2003; 68 FR 52128, Sept. 2, 2003; 72 FR 4652, Feb. 1, 
2007; 73 FR 54338, Sept. 19, 2008; 79 FR 14184, Mar. 13, 2014; 81 FR 
36429, June 6, 2016; 81 FR 41137, June 23, 2016; 81 FR 43957, July 6, 
2016]

[[Page 197]]



            Subpart 538.70_Purchasing by Non-Federal Entities

    Source: 68 FR 24378, May 7, 2003, unless otherwise noted.



538.7000  Scope of subpart.

    This subpart prescribes policies and procedures that implement 
statutory provisions authorizing non-federal organizations to use--
    (a) Federal Supply Schedule 70;
    (b) The Consolidated Schedule contracts containing information 
technology Special Item Numbers (SINs); and
    (c) Federal Supply Schedule 84.
    (d) Other Federal Supply Schedules as authorized in this subpart.

[73 FR 54338, Sept. 19, 2008, as amended at 81 FR 36429, June 6, 2016]



538.7001  Definitions.

    Ordering activity (also called ``ordering agency'' and ``ordering 
office'') means an eligible ordering activity (see 552.238-78) 
authorized to place orders under Federal supply schedule contracts.
    Preparedness means actions that may include, but are not limited to 
planning, resourcing, training, exercising, and organizing to build, 
sustain, and improve operational disaster response capabilities. 
Preparedness also includes the process of identifying the personnel, 
training, and equipment needed for a wide range of potential incidents, 
and developing jurisdiction-specific plans for delivering capabilities 
when needed for an incident.
    Recovery means actions including, but not limited to, the 
development, coordination, and execution of service- and site-
restoration plans; the reconstitution of Government operations and 
services; individual, private-sector, nongovernmental, and public-
assistance programs to provide housing and to promote restoration; long-
term care and treatment of affected persons; additional measures for 
social, political, environmental, and economic restoration; evaluation 
of the incident to identify lessons learned; post-incident reporting; 
and development of initiatives to mitigate the effects of future 
incidents.
    Relief means disaster ``response'' and ``recovery.'' Please see the 
full definitions for these terms in this section.
    Response means immediate actions taken during a disaster, or in its 
immediate aftermath, in order to save lives, protect property and the 
environment, and meet basic human needs. Response also includes the 
execution of emergency plans and actions to support short-term recovery.
    Schedule 70, as used in this subpart, means Schedule 70 information 
technology contracts, and Consolidated Products and Services Schedule 
contracts containing information technology SINs. The Consolidated 
Products and Services Schedule is a compilation of multiple individual 
Federal Supply Schedules; therefore, only the SINs that fall under 
Schedule 70 of the Consolidated Products and Services Schedule will 
apply to Cooperative Purchasing. No other Schedules, or SINs, containing 
information technology outside of Schedule 70 SINs, and Consolidated 
Products and Services Schedule contracts containing Schedule 70 SINs, 
will apply.
    Schedule 84 means the Federal Supply Schedule for alarm and signal 
systems, facility management systems, firefighting and rescue equipment, 
law enforcement and security equipment, marine craft and related 
equipment, special purpose clothing, and related services (as contained 
in Federal Supply Classification Code Group 84 or any amended or 
subsequent version of that Federal supply classification group).
    State and local government entities, as used in this subpart, means 
the states of the United States, counties, municipalities, cities, 
towns, townships, tribal governments, public authorities (including 
public or Indian housing agencies under the United States Housing Act of 
1937), school districts, colleges and other institutions of higher 
education, council of governments (incorporated or not), regional or 
interstate government entities, or any agency or instrumentality of the 
preceding entities (including any local educational agency or 
institution of higher education), and including legislative and judicial 
departments. The term does not include contractors of, or grantees of, 
State or local governments.

[[Page 198]]

    (1) Local educational agency has the meaning given that term in 
section 8013 of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7713).
    (2) Institution of higher education has the meaning given that term 
in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 
1001(a)).
    (3) Tribal government means--
    (i) The governing body of any Indian tribe, band, nation, or other 
organized group or community located in the continental United States 
(excluding the State of Alaska) that is recognized as eligible for the 
special programs and services provided by the United States to Indians 
because of their status as Indians; and
    (ii) Any Alaska Native regional or village corporation established 
pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
seq.).

[68 FR 24378, May 7, 2003, as amended at 73 FR 54338, Sept. 19, 2008; 81 
FR 36429, June 6, 2016]



538.7002  General.

    (a) 40 U.S.C. 501, (the Act) authorizes the Administrator of General 
Services to procure and supply personal property and nonpersonal 
services for the use of Executive agencies. Under 40 U.S.C. 502, the 
goods and services available to executive agencies are also available to 
mixed ownership Government corporations, establishments within the 
legislative or judicial branches of Government (excepting the Senate, 
House of Representatives, Architect of the Capitol, and any activities 
under the direction of the Architect of the Capitol), the District of 
Columbia, and Qualified Non-profit Agencies.
    (b) Section 211 of the E-Government Act of 2002 amends 40 U.S.C. 502 
to authorize the Administrator of General Services to provide for use of 
certain Federal supply schedules of the GSA by a State or local 
government, which includes any State, local, regional, or tribal 
government, or any instrumentality thereof (including any local 
educational agency or institution of higher education).
    (c) Pub.L. 110-248, The Local Preparedness Acquisition Act, 
authorizes the Administrator of General Services to provide for the use 
by state or local governments of Federal Supply Schedules of the General 
Services Administration (GSA) for alarm and signal systems, facility 
management systems, firefighting and rescue equipment, law enforcement 
and security equipment, marine craft and related equipment, special 
purpose clothing, and related services (as contained in Schedule 84).
    (d) Public Law 109-364, the John Warner National Defense 
Authorization Act for Fiscal Year 2007 authorizing state and local 
governments, to use Federal Supply Schedule contracts to purchase 
products and services to be used to facilitate recovery from a major 
disaster declared by the President under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) or to 
facilitate for recovery from terrorism or nuclear, biological, chemical, 
or radiological attack. Public Law 111-263, the Federal Supply Schedules 
Usage Act of 2010 authorizing state and local governments to use Federal 
Supply Schedule contracts to purchase products and services to be used 
to facilitate disaster preparedness or response.
    (e) Public Law 111-263, the Federal Supply Schedules Usage Act of 
2010, authorizes the American National Red Cross to use Federal Supply 
Schedule contracts to purchase goods or services to be used in 
furtherance of its purposes as set forth in its federal charter (36 
U.S.C. 300102).
    (f) Public Law 111-263, the Federal Supply Schedules Usage Act of 
2010, authorizes other qualified organizations to use Federal Supply 
Schedule contracts to purchase products and services in furtherance of 
purposes determined to be appropriate to facilitate emergency 
preparedness and disaster relief and set forth in guidance by the 
Administrator of General Services, in consultation with the 
Administrator of the Federal Emergency Management Agency. Other 
qualified organizations must meet the requirements of 42 U.S.C. 5152.
    (g) A listing of the participating contractors and SINs for the 
goods and services that are available under these authorized Federal 
Supply Schedules,

[[Page 199]]

is available in GSA's e-Library at www.gsa.gov/elibrary.

[68 FR 24378, May 7, 2003, as amended at 73 FR 54338, Sept. 19, 2008; 81 
FR 36429, June 6, 2016]



538.7003  Policy.

    Preparing solicitations when schedules are open to eligible non-
federal entities. When opening authorized Federal Supply Schedules for 
use by eligible non-federal entities, the contracting officer must make 
minor modifications to certain Federal Acquisition Regulation and GSAM 
provisions and clauses in order to make clear distinctions between the 
rights and responsibilities of the U.S. Government in its management and 
regulatory capacity pursuant to which it awards schedule contracts and 
fulfills associated Federal requirements versus the rights and 
responsibilities of eligible ordering activities placing orders to 
fulfill agency needs. Accordingly, the contracting officer is authorized 
to modify the following FAR provisions/clauses to delete ``Government'' 
or similar language referring to the U.S. Government and substitute 
``ordering activity'' or similar language when preparing solicitations 
and contracts to be awarded under authorized Federal Supply Schedules. 
When such changes are made, the word ``(DEVIATION)'' shall be added at 
the end of the title of the provision or clause. These clauses include 
but are not limited to:
    (a) 52.212-4, Contract Terms and Conditions--Commercial Items.
    (b) 52.216-18, Ordering.
    (c) 52.216-19, Order Limitations.
    (d) 52.229-1, State and Local Taxes.
    (e) 52.229-3, Federal, State, and Local Taxes.
    (f) 52.232-7, Payments Under Time-and-Materials and Labor-Hour 
Contracts.
    (g) 52.232-17, Interest.
    (h) 52.232-19, Availability of Funds for the Next Fiscal Year.
    (i) 52.232-34, Payment by Electronic Funds Transfer--Other than 
Central Contractor Registration
    (j) 52.232-36, Payment by Third Party.
    (k) 52.237-3, Continuity of Services.
    (l) 52.246-4, Inspection of Services-Fixed Price.
    (m) 52.246-6, Inspection-Time-and-Material and Labor-Hour.
    (n) 52.247-34, F.O.B. Destination.
    (o) 52.247-38, F.O.B. Inland Carrier Point of Exportation.

[68 FR 24378, May 7, 2003, as amended at 73 FR 54338, Sept. 19, 2008; 81 
FR 36430, June 6, 2016]



538.7004  Solicitation provisions and contract clauses.

    (a) The contracting officer shall insert the clause at 552.238-77, 
Definition (Federal Supply Schedules)-Non-Federal Entity in 
solicitations and contracts for all Federal Supply Schedules.
    (b) The contracting officer shall insert the clause at 552.238-78, 
Scope of Contract (Eligible Ordering Activities), in solicitations and 
contracts for all Federal Supply Schedules.
    (c) The contracting officer shall insert the clause at 552.238-79, 
Use of Federal Supply Schedule Contracts by Non-Federal Entities, in 
solicitations and contracts for all Federal Supply Schedules.
    (d) See 552.101-70 for authorized FAR deviations.

[81 FR 36430, June 6, 2016]

Subpart 538.71 [Reserved]



PART 539_ACQUISITION OF INFORMATION TECHNOLOGY--Table of Contents



 Subpart 539.70_Additional Requirements for Purchases Not in Support of 
                        National Security Systems

Sec.
539.7000  Scope of subpart.
539.7001  Policy.
539.7002  Solicitation provisions and contract clauses.

    Authority: 40 U.S.C. 121(c).

    Source: 76 FR 34888, June 15, 2011, unless otherwise noted.

[[Page 200]]



 Subpart 539.70_Additional Requirements for Purchases Not in Support of 
                        National Security Systems



539.7000  Scope of subpart.

    This subpart prescribes acquisition policies and procedures for use 
in acquiring information technology supplies, services and systems not 
in support of national security systems, as defined by FAR part 39.



539.7001  Policy.

    (a) GSA must provide information security for the information and 
information systems that support the operations and assets of the 
agency, including those provided or managed by another agency, 
contractor, or other source. Section 3544(a)(1)(A)(ii) of the Federal 
Information Security Management Act (FISMA) describes Federal agency 
security responsibilities as including ``information systems used or 
operated by an agency or by a contractor of an agency or other 
organization on behalf of an agency.''
    (b) Employees responsible for or procuring information technology 
supplies, services and systems shall possess the appropriate security 
clearance associated with the level of security classification related 
to the acquisition. They include, but are not limited to contracting 
officers, contract specialists, project/program managers, and 
contracting officer representatives.
    (c) Contracting activities shall coordinate with requiring 
activities and program officials to ensure that the solicitation 
documents include the appropriate information security requirements. The 
information security requirements must be sufficiently detailed to 
enable service providers to fully understand the information security 
regulations, mandates, and requirements that they will be subject to 
under the contract or task order.
    (d) GSA's Office of the Senior Agency Information Security Officer 
issued CIO IT Security Procedural Guide 09-48, ``Security Language for 
Information Technology Acquisitions Efforts,'' to provide IT security 
standards, policies and reporting requirements that shall be inserted in 
all solicitations and contracts or task orders where an information 
system is contractor owned and operated on behalf of the Federal 
Government. The guide can be accessed at http://www.gsa.gov/portal/
category/25690.



539.7002  Solicitation provisions and contract clauses.

    (a) The contracting officer shall insert the provision at 552.239-
70, Information Technology Security Plan and Security Authorization, in 
solicitations that include information technology supplies, services or 
systems in which the contractor will have physical or electronic access 
to government information that directly supports the mission of GSA.
    (b) The contracting officer shall insert the clause at 552.239-71, 
Security Requirements for Unclassified Information Technology Resources, 
in solicitations and contracts containing the provision at 552.239-70. 
The provision and clause shall not be inserted in solicitations and 
contracts for personal services with individuals.

[[Page 201]]



                    SUBCHAPTER G_CONTRACT MANAGEMENT





PART 541_ACQUISITION OF UTILITY SERVICES--Table of Contents



       Subpart 541.5_Solicitation Provisions and Contract Clauses

Sec.
541.501  Solicitation provision and contract clauses.

    Authority: 40 U.S.C. 121(c).



       Subpart 541.5_Solicitation Provisions and Contract Clauses



541.501  Solicitation provisions and contract clauses.

    In addition to the solicitation terms, provisions and contract 
clauses at FAR 41.501(c), the contracting officer shall include the 
following clauses--
    (a) 552.241-70, Availability of Funds for the Next Fiscal Year or 
Quarter. As prescribed in 541.501, insert the clause 552.241-70, 
Availability of Funds for the Next Fiscal Year or Quarter, instead of 
FAR 52.232-19, in all utility acquisitions; and
    (b) 552.241-71, Disputes (Utility Contracts). As prescribed in 
541.501, insert clause 552.241-71, Disputes (Utility Contracts), in 
solicitations and contracts for utility services subject to the 
jurisdiction and regulation of a utility rate commission.

[75 FR 48873, Aug. 12, 2010]



PART 542_CONTRACT ADMINISTRATION AND AUDIT SERVICES--Table of Contents



          Subpart 542.11_Production Surveillance and Reporting

Sec.
542.1107  Contract clause.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37228, July 9, 1999, unless otherwise noted.



          Subpart 542.11_Production Surveillance and Reporting



542.1107  Contract clause.

    The contracting officer shall insert 552.242-70, Status Report of 
Orders and Shipments, in solicitations and indefinite quantity and 
requirements contracts for Stock or Special Order Program items. The 
clause may be used in indefinite-delivery definite-quantity contracts 
for Stock or Special Order Program items when close monitoring is 
necessary because numerous shipments are involved.

[74 FR 863, Jan. 9, 2009]



PART 543_CONTRACT MODIFICATIONS--Table of Contents



    Authority: 40 U.S.C. 486(c).

    Source: 64 FR 37228, July 9, 1999, unless otherwise noted.



                       Subpart 543.2_Change Orders



543.205  Contract clauses.

    The contracting officer shall insert 552.243-71, Equitable 
Adjustments, in solicitations and contracts containing FAR 52.243-4, 
Changes.

[74 FR 864, Jan. 9, 2009]



PART 546_QUALITY ASSURANCE--Table of Contents



                     Subpart 546.3_Contract Clauses

Sec.
546.302  Fixed-price supply contracts.
546.302-70  Source inspection by Quality Approved Manufacturer for 
          fixed-price supply contracts.
546.302-71  Source inspection.
546.302-72  Destination inspection.
546.312  Construction contracts.

                        Subpart 546.7_Warranties

546.708  Warranties of data.
546.710  Contract clause.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37228, July 9, 1999, unless otherwise noted.

[[Page 202]]



                     Subpart 546.3_Contract Clauses



546.302  Fixed-price supply contracts.



546.302-70  Source inspection by Quality Approved Manufacturer for
fixed-price supply contracts.

    (a) For solicitations issued and contracts awarded by FAS that will 
exceed the simplified acquisition threshold and include the clause at 
52.246-2, Inspection of Supplies--Fixed-Price:
    (1) The contracting officer shall insert the clause at 552.246-70, 
Source Inspection by Quality Approved Manufacturer, in solicitations and 
contracts that provide for source inspection for the Stock and Special 
Order Programs.
    (2) The contracting officer may authorize inspection and testing at 
manufacturing plants or other facilities located outside the United 
States, Puerto Rico, or the U.S. Virgin Islands, under paragraph (a)(1) 
of the clause at 552.246-70 under any of the circumstances listed below 
after coordinating the authorization with QVOC and documenting the 
authorization in the file.
    (i) Inspection services are available from another Federal agency 
with primary inspection responsibility in the geographic area.
    (ii) An inspection interchange agreement exists with another agency 
for inspection at a contractor's plant.
    (iii) Other considerations will ensure more economical and effective 
inspection consistent with the Government's interest.
    (b) When the estimated value of the acquisition is below the 
simplified acquisition threshold and will include the clause at 52.246-
2, Inspection of Supplies--Fixed-Price, insert the clause at 552.246-70, 
Source Inspection by Quality Approved Manufacturer only:
    (1) In solicitations and contracts that support the Wildfire 
program.
    (2) In contracts when a pattern of acquisitions demonstrates an 
ongoing relationship with the contractor.

[74 FR 26108, June 1, 2009]



546.302-71  Source inspection.

    For solicitations and contracts issued by FAS, if Government 
personnel at the source will perform inspection, insert 552.246-71, 
Source Inspection by Government.

[64 FR 37228, July 9, 1999, as amended at 74 FR 26108, June 1, 2009]



546.302-72  Destination inspection.

    The contracting officer shall include the clause at 552.246-78, 
Inspection at Destination (JUL 09)in supply contracts that require 
inspection at destination.

[74 FR 26108, June 1, 2009]



546.312  Construction contracts.

    Insert the clause at 552.246-72, Final Inspection and Tests, in 
solicitations and contracts for construction that include FAR 52.246-12, 
Inspection of Construction.



                        Subpart 546.7_Warranties



546.708  Warranties of data.

    (a) The contracting officer shall use warranties of data only when 
both of the following conditions are applicable:
    (1) Use of a warranty is in the Government's interest and is 
documented; and
    (2) The contracting director concurs with the decision.
    (b) The contracting officer shall consult with the technical or 
specification manager responsible for developing any warranties of data.

[74 FR 26108, June 1, 2009]



546.710  Contract clause.

    The Contracting officer shall insert the clause at 552.246-77, 
Additional Contract Warranty Provisions for Supplies of a Noncomplex 
Nature, when using the clause at 52.246-17 in solicitations and 
contracts.

[74 FR 26108, June 1, 2009]

                           PART 547 [RESERVED]



PART 549_TERMINATION OF CONTRACTS--Table of Contents



    Authority: 40 U.S.C. 121(c).

Subpart 549.5 [Reserved]

[[Page 203]]



                     SUBCHAPTER H_CLAUSES AND FORMS





PART 552_SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents



Sec.
552.000  Scope of part.

       Subpart 552.1_Instructions for Using Provisions and Clauses

552.101-70  Using part 552.
552.102  Incorporating provisions and clauses.
552.103  Identification of provisions and clauses.
552.104  Procedures for modifying and completing provisions and clauses.
552.105  Procedures for using alternates.
552.107-70  Provisions and clauses prescribed in subpart 552.1.

              Subpart 552.2_Text of Provisions and Clauses

552.200  Scope of subpart.
552.203-71  Restriction on Advertising.
552.204-9  Personal Identity Verification Requirements.
552.211-70--522.211-71  [Reserved]
552.211-72  Reference to Specifications in Drawings.
552.211-73  Marking.
552.211-74  [Reserved]
552.211-75  Preservation, Packaging and Packing.
552.211-76  Charges for packaging, packing, and marking.
552.211-77  Packing List.
552.211-78  [Reserved]
552.211-79  Acceptable Age of Supplies.
552.211-80  Age on Delivery.
552.211-81  Time of Shipment.
552.211-82  [Reserved]
552.211-83  Availability for Inspection, Testing, and Shipment/Delivery.
552.211-84  [Reserved]
552.211-85  Consistent pack and package requirements.
552.211-86  Maximum weight per shipping container.
552.211-87  Export packing.
552.211-88  Vehicle export preparation.
552.211-89  Non-manufactured wood packaging material for export.
552.211-90  Small parts.
552.211-91  Vehicle decals, stickers, and data plates.
552.211-92  Radio Frequency Identification (RFID) using passive tags.
552.211-93  [Reserved]
552.211-94  Time of delivery.
552.212-4  Contract Terms and Conditions--Commercial Items
552.212-70  [Reserved]
552.212-71  Contract Terms and Conditions Applicable to GSA Acquisition 
          of Commercial Items.
552.212-72  Contract Terms and Conditions Required To Implement Statutes 
          or Executive Orders Applicable to GSA Acquisition of 
          Commercial Items.
552.212-73  [Reserved]
552.214-70  ``All or None'' Bids.
552.214-71  [Reserved]
552.214-72  Bid Sample Requirements.
552.215-70  Examination of Records by GSA.
552.215-71  Examination of Records by GSA (Multiple Award Schedule).
552.215-72  Price Adjustment--Failure To Provide Accurate Information.
552.216-70  Economic Price Adjustment--FSS Multiple Award Schedule 
          Contracts.
552.216-71  Economic Price Adjustment--Special Order Program Contracts.
552.216-72  Placement of Orders.
552.216-73  Ordering Information.
552.216-74  Task-Order and Delivery-Order Ombudsman.
552.216-75  Transactional Data Reporting.
552.216-76  Ordering Agency Task-Order and Delivery-Order Ombudsman.
552.217-70  Evaluation of Options.
552.217-71  Notice Regarding Option(s).
552.217-73  Notice Regarding Information Collection Requirements.
552.219-70  Allocation of Orders--Partially Set-Aside Items.
552.219-71  Notice to Offerors of Subcontracting Plan Requirements.
552.219-72  Preparation, Submission, and Negotiation of Subcontracting 
          Plans.
552.219-73  Goals for Subcontracting Plan.
552.219-74  Section 8(a) Direct Award.
552.219-75  GSA Mentor-Protege Program.
552.219-76  Mentor Requirements and Evaluation.
552.223-70  Hazardous Substances.
552.223-71  Nonconforming Hazardous Materials.
552.223-72  Hazardous Material Information.
552.223-73  Preservation, Packaging, Packing, Marking and Labeling of 
          Hazardous Materials (HAZMAT) For Shipments.
552.227-70  Government Rights (Unlimited).
552.227-71  Drawings and Other Data To Become Property of Government.
552.228-5  Government as Additional Insured.
552.229-70  Federal, State, and Local Taxes.
552.229-71  Federal Excise Tax--DC Government.
552.232-1  Payments.
552.232-23  Assignment of Claims.
552.232-25  Prompt Payment.

[[Page 204]]

552.232-72  Final Payment Under Building Services Contracts.
552.232-77  Payment By Government Charge Card.
552.236-70  Definitions.
552.236-71  Authorities and Limitations.
552.236-72  [Reserved]
552.236-73  Basis of Award--Construction Contract.
552.236-74--552.236-76  [Reserved]
552.236-77  Specifications and Drawings.
552.236-78  Shop Drawings, Coordination Drawings, and Schedules.
552.236-79--552.236-80  [Reserved]
552.236-81  Use of Equipment by the Government.
552.236-82  Subcontracts.
552.237-70  [Reserved]
552.237-71  Qualifications of Employees.
552.237-72  Prohibition Regarding ``Quasi-Military Armed Forces.''
552.237-73  Restriction on Disclosure of Information.
552.238-70  Identification of Electronic Office Equipment Providing 
          Accessibility for the Handicapped.
552.238-71  Submission and Distribution of Authorized FSS Schedule 
          Pricelists.
552.238-72  Identification of Products That Have Environmental 
          Attributes.
552.238-73  Cancellation.
552.238-74  Industrial Funding Fee and Sales Reporting.
552.238-75  Price Reductions.
552.238-76  [Reserved]
552.238-77  Definition (Federal Supply Schedules)--Non-Federal Entity.
552.238-78  Scope of Contract (Eligible Ordering Activities).
552.238-79  Use of Federal Supply Schedule Contracts by Non-Federal 
          Entities
552.238-80  [Reserved]
552.238-81  Modification (Federal Supply Schedule).
552.239-70  Information Technology Security Plan and Security 
          Authorization.
552.239-71  Security Requirements for Unclassified Information 
          Technology Resources.
552.241-70  Availability of Funds for the Next Fiscal Year or Quarter.
552.241-71  Disputes (Utility Contracts).
552.242-70  Status Report of Orders and Shipments.
552.243-71  Equitable Adjustments.
552.246-70  Source Inspection by Quality Approved Manufacturer.
552.246-71  Source Inspection by Government.
552.246-72  Final Inspection and Tests.
552.246-77  Additional Contract Warranty Provisions for Supplies of a 
          Noncomplex Nature.
552.246-78  Inspection at Destination.
552.252-5  Authorized Deviations in Provisions.
552.252-6  Authorized Deviations in Clauses.
552.270-1  Instructions to Offerors--Acquisition of Leasehold Interests 
          in Real Property.
552.270-2  Historic Preference.
552.270-3  Parties To Execute Lease.
552.270-4  Definitions.
552.270-5  Subletting and Assignment.
552.270-6  Maintenance of Building and Premises--Right of Entry.
552.270-7  Fire and Casualty Damage.
552.270-8  Compliance with Applicable Law.
552.270-9  Inspection--Right of Entry.
552.270-10  Failure in Performance.
552.270-11  Successors Bound.
552.270-12  Alterations.
552.270-13  Proposals for Adjustment.
552.270-14  Changes.
552.270-15  Liquidated Damages.
552.270-16  Adjustment for Vacant Premises.
552.270-17  Delivery and Condition.
552.270-18  Default in Delivery--Time Extensions.
552.270-19  Progressive Occupancy.
552.270-20  Payment.
552.270-21  Effect of Acceptance and Occupancy.
552.270-22  Default by Lessor During the Term.
552.270-23  Subordination, Nondisturbance and Attornment.
552.270-24  Statement of Lease.
552.270-25  Substitution of Tenant Agency.
552.270-26  No Waiver.
552.270-27  Integrated Agreement.
552.270-28  Mutuality of Obligation.
552.270-29  Acceptance of Space.
552.270-30  Price Adjustment for Illegal or Improper Activity.
552.270-31  Prompt Payment.
552.270-32  Covenant Against Contingent Fees.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37229, July 9, 1999, unless otherwise noted.



552.000  Scope of part.

    This part provides the text of provisions and clauses which are 
unique to GSA or supplement the FAR.



       Subpart 552.1_Instructions for Using Provisions and Clauses



552.101-70  Using part 552.

    (a) Definition. ``Clause,'' as used in this subpart, means provision 
or clause as defined in FAR 52.101(a).
    (b) Numbering. (1) Clauses which are ``substantially'' the same as 
FAR clauses and clauses to be used instead of FAR clauses are identified 
as follows:

[[Page 205]]

    (i) The clause has the same title as a clause in the FAR.
    (ii) The number 5 precedes the clause.
    (iii) The clause appears under the same subsection number and 
caption as in the FAR.
    (2) Supplemental clauses are numbered in the same manner as the FAR, 
except:
    (i) The chapter number precedes the clause.
    (ii) The subsection numbers begin with 70.
    (iii) The clauses are sequentially numbered, e.g., 552.232-70, 
552.232-71, etc.



552.102  Incorporating provisions and clauses.

    You may incorporate clauses prescribed in the GSAR for solicitations 
and contracts by reference.



552.103  Identification of provisions and clauses.

    Deviations. If the GSAR prescribes a class deviation from a FAR 
clause, identify the clause by the GSAR citation (e.g., 552.232-8 PROMPT 
PAYMENT DISCOUNT (NOV 1987) (DEVIATION FAR 552.232-8)).



552.104  Procedures for modifying and completing provisions and clauses.

    (a) The procedures in FAR 52.104 apply when you modify or complete a 
GSAR provision or clause. Provisions and clauses shall not be modified 
unless the GSAR authorizes their modification.
    (b) You do not need to identify modifications of clauses which 
result from negotiations unless you issue an amendment to the 
solicitation.
    (c) In general, you should modify FAR or GSAR clauses only for 
individual cases. If a contracting activity develops a modification for 
repeated use, furnish a copy to the Office of GSA Acquisition Policy 
(MV) for potential inclusion in the GSAR.



552.105  Procedures for using alternates.

    The procedures in FAR 52.105 apply to GSAR part 552.



552.107-70  Provisions and clauses prescribed in subpart 552.1.

    (a) Insert the provision at 552.252-5, Authorized Deviations in 
Provisions, in solicitation that include any FAR or GSAR clause with an 
authorized deviation. You must use this provision in lieu of the FAR 
provision at 552.252-5.
    (b) Insert the clause at 552.252-6, Authorized Deviations in 
Clauses, in solicitations and contracts that include any FAR or GSAR 
clause with an authorized deviation. You must use this clause in lieu of 
the FAR clause at 52.252-6.



              Subpart 552.2_Text of Provisions and Clauses



552.200  Scope of subpart.

    This subpart sets forth the text of all GSAR provisions and clauses. 
It also cross-references the location in the GSAR that prescribes the 
use of each provision and clause.



552.203-71  Restriction on Advertising.

    As prescribed in 503.570-2, insert the following clause:

                  Restriction on Advertising (SEP 1999)

    The Contractor shall not refer to this contract in commercial 
advertising or similar promotions in such a manner as to state or imply 
that the product or service provided is endorsed or preferred by the 
White House, the Executive Office of the President, or any other element 
of the Federal Government, or is considered by these entities to be 
superior to other products or services. Any advertisement by the 
Contractor, including price-off coupons, that refers to a military 
resale activity shall contain the following statement: ``This 
advertisement is neither paid for nor sponsored, in whole or in part, by 
any element of the United States Government.''

                             (End of clause)



552.204-9  Personal Identity Verification requirements.

    As prescribed in 504.1303, insert the following clause:

         Personal Identity Verification Requirements (OCT 2012)

    (a) The contractor shall comply with GSA personal identity 
verification requirements, identified at http://www.gsa.gov/hspd12, if 
contractor employees require access to GSA

[[Page 206]]

controlled facilities or information systems to perform contract 
requirements.
    (b) The Contractor shall insert this clause in all subcontracts when 
the subcontractor is required to have access to a GSA-controlled 
facility or access to a GSA-controlled information system.

                             (End of clause)

[77 FR 59793, Oct. 1, 2012]



552.211-70--552.211-71  [Reserved]



552.211-72  Reference to Specifications in Drawings.

    As prescribed in 511.204(a), insert the following clause:

           References to Specifications in Drawings (FEB 1996)

    If military or other drawings are made a part of this contract, any 
reference in the drawings to Federal specifications or standards will be 
considered to be a reference to the date of such Federal specification 
or standard identified in the contract. If the date of the Federal 
specification or standard is not identified in the contract, the 
edition, including revisions thereto, in effect on the date the 
solicitation is issued will apply.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 74 FR 66255, Dec. 15, 2009]



552.211-73  Marking.

    As prescribed in 511.204(b)(1), insert the following clause:

                           Marking (FEB 1996)

    (a) General requirements. Interior packages, if any, and exterior 
shipping containers shall be marked as specified elsewhere in the 
contract. Additional marking requirements may be specified on delivery 
orders issued under the contract. If not otherwise specified, interior 
packages and exterior shipping containers shall be marked in accordance 
with the following standards:
    (1) Deliveries to civilian activities. Supplies shall be marked in 
accordance with Federal Standard 123, edition in effect on the date of 
issuance of the solicitation.
    (2) Deliveries to military activities. Supplies shall be marked in 
accordance with Military Standard 129, edition in effect on the date of 
issuance of the solicitation.
    (b) Improperly marked material. When Government inspection and 
acceptance are at destination, and delivered supplies are not marked in 
accordance with contract requirements, the Government has the right, 
without prior notice to the Contractor, to perform the required marking, 
by contract or otherwise, and charge the Contractor therefor at the rate 
specified elsewhere in this contract. This right is not exclusive, and 
is in addition to other rights or remedies provided for in this 
contract.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 74 FR 66255, Dec. 15, 2009]



552.211-74  [Reserved]



552.211-75  Preservation, Packaging and Packing.

    As prescribed in 511.204(b)(2), insert the following clause:

             Preservation, Packaging, and Packing (FEB 1996)

    Unless otherwise specified, all items shall be preserved, packaged, 
and packed in accordance with normal commercial practices, as defined in 
the applicable commodity specification. Packaging and packing shall 
comply with the requirements of the Uniform Freight Classification and 
the National Motor Freight Classification (issue in effect at time of 
shipment) and each shipping container of each item in a shipment shall 
be of uniform size and content, except for residual quantities. Where 
special or unusual packing is specified in an order, but not 
specifically provided for by the contract, such packing details must be 
the subject of an agreement independently arrived at between the 
ordering agency and the Contractor.

                             (End of clause)

    Alternate I (MAY 2003). As prescribed at 511.204(b)(2), insert the 
following sentence in place of the last sentence of the clause:

    Where special or unusual packing is specified in an order, but not 
specifically provided for by the contract, such packing details must be 
the subject of an agreement independently arrived at between the 
ordering activity and the Contractor.

[64 FR 37229, July 9, 1999, as amended at 68 FR 24379, May 7, 2003; 74 
FR 66255, Dec. 15, 2009]



552.211-76  Charges for packaging, packing, and marking.

    As prescribed in 511.204(b)(3), insert a clause substantially as 
follows:

[[Page 207]]

         Charges for Packaging, Packing, and Marking (JAN 2010)

    If supplies shipped to a GSA wholesale distribution center are not 
packaged, packed and marked in accordance with contract requirements, 
the Government has the right, without prior notice to the Contractor, to 
perform the required repackaging/repacking/remarking, by contract or 
otherwise, and charge the Contractor therefore at the rate of $_____* 
per man-hour or fraction thereof. The Contractor will also be charged 
for material costs, if incurred. This right is not exclusive, and is in 
addition to other rights or remedies provided for in this contract.

                             (End of clause)

    *The rate to be inserted in the above clause shall be determined by 
the Commissioner, Federal Acquisition Service, or a designee.

[74 FR 66255, Dec. 15, 2009]



552.211-77  Packing List.

    As prescribed in 511.204(c), insert the following clause:

                         Packing List (FEB 1996)

    (a) A packing list or other suitable shipping document shall 
accompany each shipment and shall indicate:
    (1) Name and address of the consignor;
    (2) Name and complete address of the consignee;
    (3) Government order or requisition number;
    (4) Government bill of lading number covering the shipment (if any); 
and
    (5) Description of the material shipped, including item number, 
quantity, number of containers, and package number (if any).
    (b) When payment will be made by Government commercial credit card, 
in addition to the information in (a) above, the packing list or 
shipping document shall include:
    (1) Cardholder name and telephone number and
    (2) The term ``Credit Card.''

                             (End of clause)

    Alternate I (MAY 2003). As prescribed at 511.204(d), substitute the 
following paragraphs (a)(3) and (b) for (a)(3) and (b) of the basic 
clause:

    (a)(3) Ordering activity order or requisition number;
    (b) When payment will be made by Ordering activity commercial credit 
card, in addition to the information in (a) above, the packing list or 
shipping document shall include:
    (1) Cardholder name and telephone number; and
    (2) The term ``Credit Card.''

[64 FR 37229, July 9, 1999, as amended at 68 FR 24379, May 7, 2003; 74 
FR 66255, Dec. 15, 2009]



552.211-78  [Reserved]



552.211-79  Acceptable Age of Supplies.

    As prescribed in 511.404(a)(1), insert the following clause:

                  Acceptable Age of Supplies (FEB 1996)

    The supplies furnished under this contract shall not be more than __ 
months old, beginning with the first full month after the date of 
manufacture marked on the container. For the purpose of this clause, 
supplies shall be considered to be furnished (1) when they are offered 
to the Government for inspection and testing, or (2) on the date of 
shipment if shipment is authorized to be made without prior inspection 
by the Government. If the age of the supplies furnished under this 
contract is greater than the specified period, the Government may 
exercise its right to reject the supplies.

                             (End of clause)

    Alternate I (FEB 1996). For items having a limited shelf-life, the 
sentence below should be substituted for the first sentence of the basic 
clause when authorized:

    The supplies furnished under this contract shall not be more than __ 
days old, beginning with the date of manufacture (month, day, year) 
marked on the container.

[64 FR 37229, July 9, 1999, as amended at 74 FR 66255, Dec. 15, 2009]



552.211-80  Age on Delivery.

    As prescribed in 511.404(a)(2) insert the following clause:

                       Age on Delivery (FEB 1996)

    Included in the description of each shelf-life item is a statement 
regarding the ``age on delivery.'' The age of the item(s) shall not 
exceed the number of months shown in the item description, counted from 
the first day of the month after the month of manufacture to the date of 
delivery to the specified delivery point(s). If the age of the supplies 
delivered under this contract is greater than the number of months 
shown, the Government may exercise its right to reject the supplies.

[[Page 208]]

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 74 FR 66255, Dec. 15, 2009]



552.211-81  Time of Shipment.

    As prescribed in 511.404(b), insert the following clause:

                       Time of Shipment (FEB 1996)

    Shipment is required within ___ calendar days after receipt of 
order.

                             (End of clause)

    Alternate I (FEB 1996). If the contract will require shipment more 
than 45 calendar days after receipt of the order, the following 
paragraph should be added to the basic clause.

    Each delivery order will specify that shipment is required no later 
than the number of days shown above. If such order also states that 
``Early Shipment is Precluded,'' the Contractor agrees to make shipment 
no sooner than ___ calendar days after receipt of order. Earlier 
shipments may result in nonacceptance of the supplies at the delivery 
point at the time of arrival.

    (The second number to be inserted should be 15 calendar days less 
than the first number.)

[64 FR 37229, July 9, 1999, as amended at 74 FR 66255, Dec. 15, 2009]



552.211-82  [Reserved]



552.211-83  Availability for Inspection, Testing, and Shipment/Delivery.

    As prescribed in 511.404(c), insert the following clause:

 Availability for Inspection, Testing, and Shipment/Delivery (FEB 1996)

    (a) The Government requires that the supplies be made available for 
inspection and testing within ____*____ calendar days after receipt of 
[Insert ``Notice of Award'' or ``order''], and be [Insert ``shipped'' or 
``delivered''] within ____*____ calendar days after receipt of (1) 
notice of approval and release by the Government inspector or (2) 
authorization to ship without Government inspection.
    (b) Failure to make supplies available for inspection and testing or 
to [Insert ``ship'' or ``deliver''] as required by this clause may 
result in termination of this contract for default.

                             (End of clause)

    Alternate I (FEB 1996). If the contract is for stock items, the 
Contracting Officer shall insert ``shipped'' or ``ship'' in the basic 
clause, add the following paragraph (b) and redesignate paragraph (b) of 
the basic clause as paragraph (c).

    (b) If notice of approval and release by the Government inspector or 
authorization to ship without Government inspection is received before 
____*____ calendar days after receipt of the [Insert ``Notice of Award'' 
or ``order''], receipt of such notice shall be deemed to be received on 
the ____*____ calendar day after receipt of [Insert ``Notice of Award'' 
or ``order'']. Shipments shall not be made before the ____*____ calendar 
day after receipt of the [Insert ``Notice of Award'' or ``order''] 
unless authorized in writing by the Contracting Officer.
    * Entries are normally the same number of days specified for 
availability.

[64 FR 37229, July 9, 1999, as amended at 74 FR 66255, Dec. 15, 2009]



552.211-84  [Reserved]



552.211-85  Consistent pack and package requirements.

    As prescribed in 511.204(b)(4), insert the following clause:

           Consistent Pack and Package Requirements (JAN 2010)

    The Contractor is advised that the Government will, where possible, 
order in full shipping containers and/or unitized loads. If volume 
warrants, the Government may also order in truckload or carload 
quantities provided such quantities do not exceed the maximum order 
limitation of this contract.
    When the number of items per unit container, intermediate container 
and/or shipping container is not specified for an item, the offeror will 
state, in the spaces provided in the schedule of items, the number of 
items to be provided in each container. The quantities which are 
accepted at the time of award shall remain in effect throughout the term 
of the contract unless the Contracting Officer approves in writing a 
request by the Contractor to change the package quantities. Requests for 
changes shall be directed to the Contracting Officer or Administrative 
Contracting Officer, whichever is applicable.

                             (End of clause)

[74 FR 66255, Dec. 15, 2009, as amended at 81 FR 36430, June 6, 2016]

[[Page 209]]



552.211-86  Maximum weight per shipping container.

    As prescribed in 511.204(b)(5), insert the following clause:

            Maximum Weight per Shipping Container (JAN 2010)

    In no instance shall the weight of a shipping container and its 
contents exceed 23 kilograms (51 pounds), except when caused by--
    (1) The weight of a single item within the shipping container;
    (2) A prescribed quantity per pack for an item per shipping 
container; or
    (3) A definite weight limitation set forth in the purchase 
description.

                             (End of clause)

[74 FR 66255, Dec. 15, 2009, as amended at 81 FR 36430, June 6, 2016]



552.211-87  Export packing.

    As prescribed in 511.204(b)(6), insert the following clause:

                        Export Packing (JAN 2010)

    (a) Offerors are requested to quote, in the pricelist accompanying 
their offer (or by separate attachment), additional charges or net 
prices covering delivery of the items furnished with commercial or 
military export packing. Military export packing, if offered, shall be 
in accordance with Mil-Std-2073-1 Level A or B as specified. If 
commercial export packing is offered, the offer or pricelist shall 
include detailed specifications describing the packing to be furnished 
at the price quoted.
    (b) Ordering activities will not be obligated to utilize the 
Contractor's services for export packing accepted under this 
solicitation, and they may obtain such services elsewhere if desired. 
However, the Contractor shall furnish items export packed when such 
packing is specified on the purchase order.

                             (End of clause)

[74 FR 66255, Dec. 15, 2009, as amended at 81 FR 36430, June 6, 2016]



552.211-88  Vehicle export preparation.

    As prescribed in 511.204(b)(7), insert the following clause:

                  Vehicle Export Preparation (JAN 2010)

    Vehicles shall be prepared for export on wheels, unboxed, unless 
otherwise specified in the Schedule of Items. All parts and equipment 
easily removable (subject to pilferage) shall be enclosed in a box 
substantially secured to the vehicle (inside body if feasible) in such a 
manner as to minimize the possibility of loss or damage while in transit 
to ultimate destination.

                             (End of clause)

[74 FR 66255, Dec. 15, 2009, as amended at 81 FR 36430, June 6, 2016]



552.211-89  Non-manufactured wood packaging material for export.

    As prescribed in 511.204(b)(8), insert the following clause:

     Non-Manufactured Wood Packaging Material for Export (JUL 2016)

    (a) Definitions:
    IPPC Country: Countries of the European Union (EU) or any other 
country endorsing the International Plant Protection Convention (IPPC) 
``Guidelines for Regulating Wood Packaging Material in International 
Trade,'' approved March 15, 2002. A listing of countries participating 
in the IPPC is found at http://www.aphis.usda.gov/import_export/plants/
plant_exports/wpm/country/index.shtml.
    Non-manufactured wood, is also called solid wood and defined as wood 
packing other than that comprised wholly of wood-based products such as 
plywood, particle board, oriented strand board, veneer, wood wool, and 
similar materials, which has been created using glue, heat and pressure 
or a combination thereof.
    Packaged material, and solid wood packing material (SWPM), for 
purposes of this clause, is defined as each separate and distinct 
material that by itself or in combination with other materials forms the 
container providing a means of protecting and handling a product. This 
includes, but is not limited to, pallets, dunnage, crating, packing 
blocks, drums, load boards, pallet collars, and skids.
    (b) Non-manufactured wood pallets and other non-manufactured wood 
packaging material used to pack items for delivery to or through IPPC 
countries must be marked and properly treated in accordance with IPPC 
guidelines.
    (c) This requirement applies whether the shipment is direct to the 
end user or through a Government designated consolidation point. 
Packaging that does not conform to IPPC guidelines will be refused 
entry, destroyed or treated prior to entry.
    (d) For Department of Defense distribution facilities or freight 
consolidation points, all non-manufactured wood pallets or packaging 
material with a probability of entering countries endorsing the IPPC 
Guidelines must be treated and marked in accordance with DLAD 47.305-1 
(available at http://farsite.hill.af.mil/archive/Dlad/Rev5/

[[Page 210]]

PART47.htm''), and MIL-STD-2073-1, Standard Practice for Military 
Packaging (and any future revision).
    (e) Pallets and packing material shipped to FAS distribution 
facilities designated for possible delivery to the countries endorsing 
the IPPC Guidelines will comply with DLAD 47.305-1, and MIL-STD-2073-1.
    (f) Delays in delivery caused by non-complying pallets or wood 
package material will not be considered as beyond the control of the 
Contractor. Any applicable Government expense incurred as a result of 
the Contractor's failure to provide appropriate pallets or package 
material shall be reimbursed by the Contractor. Expenses may include the 
applicable cost for repackaging, handling and return shipping, or the 
destruction of solid wood packaging material.

                             (End of clause)

[74 FR 66255, Dec. 15, 2009, as amended at 81 FR 36430, June 6, 2016]



552.211-90  Small parts.

    As prescribed in 511.204(b)(9), insert the following clause:

                         Small Parts (JAN 2010)

    All small parts required to be furnished with machines covered by 
contracts resulting from this solicitation shall be packed in envelopes, 
sealed, identified with part numbers and quantity on outside of 
envelopes. Larger parts must be individually tagged and identified with 
part number on face of tag.

                             (End of clause)

[74 FR 66255, Dec. 15, 2009]



552.211-91  Vehicle decals, stickers, and data plates.

    As prescribed in 511.204(b)(10), insert the following clause:

          Vehicle Decals, Stickers, and Data Plates (JAN 2010)

    Unless otherwise specified, caution plates/decals shall be 
conspicuously installed for all equipment requiring such notices. 
Vehicles for civil agencies shall be provided with the manufacturer's 
current warranty legend imprinted on decalcomania, and applied in a 
visible area of the engine compartment. In addition, a decal or sticker 
shall provide at least the following information: contract number; 
purchase order number; date of delivery, month and year; and the 
warranty time, in month and miles.

                             (End of clause)

[74 FR 66255, Dec. 15, 2009]



552.211-92  Radio Frequency Identification (RFID) using passive tags.

    As prescribed in 511.204(b)(11), insert the following clause:

   Radio Frequency Identification (RFID) Using Passive Tags (JAN 2010)

    Radio Frequency Identification shall be required on all non-bulk 
shipments to the Defense Logistics Agency (DLA) or Department of Defense 
(DoD) destinations. Shipments shall be tagged in accordance with 48 CFR 
clause 252.211-7006. Shipments to GSA Distribution Centers with final 
destinations to DLA and DoD shall be in compliance to 48 CFR 252.211-
7006. Copies may be obtained from http://www.access.gpo.gov/nara/cfr/
cfr-table-search.html.

                             (End of clause)

[74 FR 66255, Dec. 15, 2009]



552.211-93  [Reserved]



552.211-94  Time of delivery.

    As prescribed at 511.404(d), insert the following clause:

                       Time of Delivery (JAN 2010)

    An ``X'' mark in the left hand block shall be considered a mandatory 
requirement to be fulfilled by the contractor.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
                           The Contractor will ship contract item(s) to
                            the Federal Acquisition Service (FAS)
                            stocking points identified in the delivery
                            order at its discretion in order to maintain
                            the required stock levels within the minimum
                            and maximum requirements provided in the
                            weekly status report.
                           Delivery is required to be made at
                            destination within *_____* calendar days
                            after receipt of order for deliveries to a
                            GSA facility.
                           Orders under this contract may require direct
                            delivery to other agencies. Orders for
                            direct delivery must be shipped and
                            delivered within the time specified in
                            blocks below.
                           Shipment must be made with *_____* days after
                            receipt of order.

[[Page 211]]

 
                           In addition to block above the Contractor
                            must also ensure that delivery will be made
                            within *_____* days after receipt of order.
------------------------------------------------------------------------

                             (End of clause)

[74 FR 66255, Dec. 15, 2009]



552.212-4  Contract Terms and Conditions--Commercial Items.

    Alternate II (FAR Deviation) (NOV 2009). When a commercial item 
contract is contemplated and the contract will include the clause at FAR 
52.212-4, insert this Alternate II instead of subparagraph (g)(2) of the 
FAR clause.

    (g)(2) The due date for making invoice payments by the designated 
payment office is the later of the following two events:
    (i) The 10th day after the designated billing office receives a 
proper invoice from the Contractor. If the designated billing office 
fails to annotate the invoice with the date of receipt at the time of 
receipt, the invoice payment due date shall be the 10th day after the 
date of the Contractor's invoice; provided the Contractor submitted a 
proper invoice and no disagreement exists over quantity, quality, or 
Contractor compliance with contract requirements.
    (ii) The 10th day after Government acceptance of supplies delivered 
or services performed by the Contractor.

[74 FR 54918, Oct. 26, 2009]



552.212-70  [Reserved]



552.212-71  Contract Terms and Conditions Applicable to GSA Acquisition
of Commercial Items.

    As prescribed in 512.301(a)(2), insert the following clause:

     Contract Terms and Conditions Applicable to GSA Acquisition of 
                       Commercial Items (JUN 2016)

    (a) The Contractor agrees to comply with any clause that is 
incorporated herein by reference to implement agency policy applicable 
to acquisition of commercial items or components. The clause in effect 
based on the applicable regulation cited on the date the solicitation is 
issued applies unless otherwise stated herein. The clauses in paragraph 
(b) of this section are incorporated by reference:
    [The Contracting Officer should check the clauses that apply or 
delete the clauses that do not apply from the list. The Contracting 
Officer may add the date of the clause if desired for clarity.]
    (b) Clauses.

__ 552.203-71  Restriction on Advertising
__ 552.211-73  Marking
__ 552.2215-70  Examination of Records by GSA
__ 552.215-71  Examination of Records by GSA (Multiple Award Schedule)
__ 552.215-72  Price Adjustment--Failure to Provide Accurate Information
__ 552.219-70  Allocation of Orders--Partially Set-Aside Items
__ 552.228-70  Workers' Compensation Laws
__ 552.229-70  Federal, State, and Local Taxes
__ 552.232-8  Discounts for Prompt Payment
__ 552.232-23  Assignment of Claims
__ 552.232-71  Adjusting Payments
__ 552.232-72  Final Payment
__ 552.232-73  Availability of Funds
__ 552.232-78  Payment Information
__ 552.237-71  Qualifications of Employees
__ 552.238-71  Submission and Distribution of Authorized FSS Schedule 
Price List
__ 552.238-74  Industrial Funding Fee and Sales Reporting
__ 552.238-75  Price Reductions
__ 552.238-81  Modifications  (Multiple Award Schedule)
__ 552.242-70  Status Report of Orders and Shipments
__ 552.246-73  Warranty--Multiple  Award Schedule
__ 552.246-76  Warranty of Pesticides

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 65 FR 41379, July 5, 2000; 68 
FR 41288, July 11, 2003; 79 FR 62884, Oct. 21, 2014; 81 FR 41137, June 
23, 2016]



552.212-72  Contract Terms and Conditions Required To Implement Statutes
or Executive Orders Applicable to GSA Acquisition of Commercial Items.

    As prescribed in 512.301(a)(3), insert the following clause:

    Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders Applicable to GSA Acquisition of Commercial Items (JUN 
                                  2015)

    The Contractor agrees to comply with any provision or clause that is 
incorporated herein by reference to implement provisions of law or 
Executive Orders applicable to acquisition of commercial items or 
components. The provision or clause in effect based on the applicable 
regulation cited on the date the

[[Page 212]]

solicitation is issued applies unless otherwise stated herein. The 
following provisions and clauses are incorporated by reference:

[The contracting officer should either check the provisions and clauses 
that apply or delete the provisions and clauses that do not apply from 
the list. The contracting officer may add the date of the provision or 
clause if desired for clarity.]
    (a) Provisions.

__ 552.223-72  Hazardous Material Information

    (b) Clauses.
__552.223-70  Hazardous Substances.
__552.223-71  Nonconforming Hazardous Material.
__552.223-73  Preservation, Packaging, Packing, Marking and Labeling of 
          Hazardous Materials (HAZMAT) for Shipments.
__552.238-70  Identification of Electronic Office Equipment Providing 
          Accessibility for the Handicapped.
__552.238-72  Identification of Products That Have Environmental 
          Attributes.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 65 FR 41379, July 5, 2000; 68 
FR 41288, July 11, 2003; 68 FR 52128, Sept. 2, 2003; 80 FR 36248, June 
24, 2015]



552.212-73  [Reserved]



552.214-70  ``All or None'' Bids.

    As prescribed in 514.201-6, insert the following provision:

                     ``All or None'' Bids (OCT 2009)

    (a) The Government reserves the right to evaluate bids and make 
awards on an ``all or none'' basis as provided below.
    (b) A bid submitted on an ``all or none'' or similar basis will be 
evaluated as follows: The lowest acceptable bid exclusive of the ``all 
or none'' bid will be selected with respect to each item (or group of 
items when the solicitation provides for aggregate awards) and the total 
cost of all items thus determined shall be compared with the total of 
the lowest acceptable ``all or none'' bid. Award will be made to result 
in the lowest total cost to the Government.

                           (End of provision)

[64 FR 37229, July 9, 1999, as amended at 74 FR 47740, Sept. 17, 2009]



552.214-71  [Reserved]



552.214-72  Bid Sample Requirements.

    As prescribed in 514.202-4(a)(3), insert the following provision:

                   Bid Sample Requirements (OCT 2009)

    This provision supplements FAR 52.214-20, which is incorporated by 
reference. Samples shall be from the production of the manufacturer 
whose products will be supplied under resultant contracts.
    (a) Two bid samples are required for each of the following items in 
this solicitation:

________________________________________________________________________
    (b) Two representative samples shall be submitted for each of the 
following items upon which a bid is submitted:

------------------------------------------------------------------------
                                            Acceptable representative
                 Items                               samples
------------------------------------------------------------------------
                                         ...............................
                                         ...............................
------------------------------------------------------------------------

    Note: Bidders that propose to furnish an item or group of items from 
more than one manufacturer or production point must submit two samples 
from the production of each manufacturer or production point.
    (c) Samples will be evaluated to determine compliance with all 
characteristics listed below:

------------------------------------------------------------------------
        Subjective characteristics            Objective characteristics
------------------------------------------------------------------------
                                            ............................
                                            ............................
------------------------------------------------------------------------

    (d) Forward samples addressed to the Sample Room indicated below. 
Except for samples delivered by U.S. Mail, deliveries will be accepted 
between the hours of __________ Mondays through Fridays, official 
holidays excluded.
    Caution: Use proper address for method of shipment selected.

Mail and Parcel Post
(Insert Address of Bid Sample Room)
Freight or Express
(Insert address of Bid Sample Room)
    (e) Contracting Officer insert address.

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

                           (End of provision)

[64 FR 37229, July 9, 1999, as amended at 74 FR 47740, Sept. 17, 2009]



552.215-70  Examination of Records by GSA.

    As prescribed in 515.209-70(a), insert the following clause:

[[Page 213]]

                Examination of Records by GSA (JUN 2016)

    The Contractor agrees that the Administrator of General Services or 
any duly authorized representatives shall, until the expiration of 3 
years after final payment under this contract, or of the time periods 
for the particular records specified in Subpart 4.7 of the Federal 
Acquisition Regulation (48 CFR 4.7), whichever expires earlier, have 
access to and the right to examine any books, documents, papers, and 
records of the Contractor involving transactions related to this 
contract or compliance with any clauses thereunder. The Contractor 
further agrees to include in all its subcontracts hereunder a provision 
to the effect that the subcontractor agrees that the Administrator of 
General Services or any authorized representatives shall, until the 
expiration of 3 years after final payment under the subcontract, or of 
the time periods for the particular records specified in Subpart 4.7 of 
the Federal Acquisition Regulation (48 CFR 4.7), whichever expires 
earlier, have access to and the right to examine any books, documents, 
papers, and records of such subcontractor involving transactions related 
to the subcontract or compliance with any clauses thereunder. The term 
``subcontract'' as used in this clause excludes (a) purchase orders not 
exceeding the simplified adquisition threshold and (b) subcontracts or 
purchase orders for public utility services at rates established for 
uniform applicability to the general public.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 81 FR 1533, Jan. 13, 2016; 81 
FR 36425, June 6, 2016]



552.215-71  Examination of Records by GSA (Multiple Award Schedule).

    As prescribed in 515.209-70(c), insert the following clause:

   Examination of Records by GSA (Multiple Award Schedule) (JUL 2003)

    The Contractor agrees that the Administrator of General Services or 
any duly authorized representative shall have access to and the right to 
examine any books, documents, papers and records of the contractor 
involving transactions related to this contract for overbillings, 
billing errors, compliance with the Price Reduction clause and 
compliance with the Industrial Funding Fee and Sales Reporting clause of 
this contract. This authority shall expire 3 years after final payment. 
The basic contract and each option shall be treated as separate 
contracts for purposes of applying this clause.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 68 FR 41288, July 11, 2003]



552.215-72  Price Adjustment--Failure To Provide Accurate Information.

    As prescribed in 515.408(d), insert the following clause:

  Price Adjustment--Failure To Provide Accurate Information (AUG 1997)

    (a) The Government, at its election, may reduce the price of this 
contract or contract modification if the Contracting Officer determines 
after award of this contract or contract modification that the price 
negotiated was increased by a significant amount because the Contractor 
failed to:
    (1) Provide information required by this solicitation/contract or 
otherwise requested by the Government; or
    (2) Submit information that was current, accurate, and complete; or
    (3) Disclose changes in the Contractor's commercial pricelist(s), 
discounts or discounting policies which occurred after the original 
submission and prior to the completion of negotiations.
    (b) The Government will consider information submitted to be 
current, accurate and complete if the data is current, accurate and 
complete as of 14 calendar days prior to the date it is submitted.
    (c) If any reduction in the contract price under this clause reduces 
the price for items for which payment was made prior to the date of the 
modification reflecting the price reduction, the Contractor shall be 
liable to and shall pay the United States--
    (1) The amount of the overpayment; and
    (2) Simple interest on the amount of such overpayment to be computed 
from the date(s) of overpayment to the Contractor to the date the 
Government is repaid by the Contractor at the applicable underpayment 
rate effective each quarter prescribed by the Secretary of Treasury 
under 26 U.S.C. 6621(a)(2).
    (d) Failure to agree on the amount of the decrease shall be resolved 
as a dispute.
    (e) In addition to the remedy in paragraph (a) of this clause, the 
Government may terminate this contract for default. The rights and 
remedies of the Government specified herein are not exclusive, and are 
in addition to any other rights and remedies provided by law or under 
this contract.

[[Page 214]]

                             (End of clause)



552.216-70  Economic Price Adjustment--FSS Multiple Award Schedule
Contracts.

    As prescribed in 516.203-4(a), insert the following clause:

 Economic Price Adjustment--FSS Multiple Award Schedule Contracts (SEP 
                                  1999)

    Price adjustments include price increases and price decreases. 
Adjustments will be considered as follows:
    (a) Contractors shall submit price decreases anytime during the 
contract period in which they occur. Price decreases will be handled in 
accordance with the provisions of the Price Reduction Clause.
    (b) Contractors may request price increases under the following 
conditions:
    (1) Increases resulting from a reissue or other modification of the 
Contractor's commercial catalog/pricelist that was used as the basis for 
the contract award.
    (2) Only three increases will be considered during the contract 
period.
    (3) Increases are requested after the first 30 days of the contract 
period and prior to the last 60 days of the contract period.
    (4) At least 30 days elapse between requested increases.
    (c) The aggregate of the increases in any contract unit price under 
this clause shall not exceed ___* percent of the original contract unit 
price. The Government reserves the right to raise this ceiling where 
changes in market conditions during the contract period support an 
increase.
    (d) The following material shall be submitted with the request for a 
price increase:
    (1) A copy of the commercial catalog/pricelist showing the price 
increase and the effective date for commercial customers.
    (2) Commercial Sales Practice format regarding the Contractor's 
commercial pricing practice relating to the reissued or modified 
catalog/price-list, or a certification that no change has occurred in 
the data since completion of the initial negotiation or a subsequent 
submission.
    (3) Documentation supporting the reasonableness of the price 
increase.
    (e) The Government reserves the right to exercise one of the 
following options:
    (1) Accept the Contractor's price increases as requested when all 
conditions of (b), (c), and (d) of this clause are satisfied;
    (2) Negotiate more favorable discounts from the new commercial 
prices when the total increase requested is not supported; or,
    (3) Remove the product(s) from contract involved pursuant to the 
Cancellation Clause of this contract, when the increase requested is not 
supported.
    (f) The contract modification reflecting the price adjustment shall 
be signed by the Government and made effective upon receipt of 
notification from the Contractor that the new catalog/pricelist has been 
mailed to the addresses previously furnished by the Contracting Officer, 
provided that in no event shall such price adjustment be effective prior 
to the effective date of the commercial price increases. The increased 
contract prices shall apply to delivery orders issued to the Contractor 
on or after the effective date of the contract modification.

                             (End of clause)

    * Insert the percent appropriate at the time the solicitation is 
issued. This percentage should normally be 10 percent, unless based on a 
trend established by an appropriate index such as the Producer Prices 
and Price Index during the most recent 6-month period indicates that a 
different percentage is more appropriate. Any ceiling other than 10 
percent must be approved by the contracting director.

    Alternate I (SEP 1999). The following is substituted for paragraphs 
(b) and (c) of the clause:

    (b) Contractors may request price increases to be effective on or 
after the first 12 months of the contract period providing all of the 
following conditions are met:
    (1) Increases resulting from a reissue or other modification of the 
Contractor's commercial catalog/pricelist that was used as the basis for 
the contract award.
    (2) No more than three increases will be considered during each 
succeeding 12-month period of the contract. (For succeeding contract 
periods of less than 12 months, up to three increases will be considered 
subject to the other conditions of this subparagraph (b)).
    (3) Increases are requested before the last 60 days of the contract 
period.
    (4) At least 30 days elapse between requested increases.
    (c) In any contract period during which price increases will be 
considered, the aggregate of the increases during any 12-month period 
shall not exceed *____ percent of the contract unit price in effect at 
the end of the preceding 12-month period. The Government reserves the 
right to raise the ceiling when market conditions during the contract 
period support such a change.
    * Insert the percentage appropriate at the time the solicitation is 
issued. This percentage should be determined based on the trend 
established by an appropriate index such as the Producer Prices and

[[Page 215]]

Price Index. A ceiling of more than 10 percent must be approved by the 
Contracting Director.

[64 FR 37229, July 9, 1999; 64 FR 49844, Sept. 14, 1999]



552.216-71  Economic Price Adjustment--Special Order Program Contracts.

    As prescribed in 516.203-4(a), insert the following clause:

  Economic Price Adjustment--Special Order Program Contracts (AUG 2010)

    (a) ``Producer Price Index'' (PPI), as used in this clause, means 
the originally released index, not seasonally adjusted, published by the 
Bureau of Labor Statistics, U.S. Department of Labor (Labor) for product 
code ____ found under Table ____.
    (b) During the term of the contract, the award price may be adjusted 
once during each 12-month period upward or downward. However, if an 
upward adjustment, a maximum of ___*___ percent shall apply. Any price 
adjustment for the product code shall be based upon the percentage 
change in the PPI released in the month prior to the initial month of 
the contract period specified in the solicitation for sealed bidding or 
the month prior to award in negotiation (the base index) and the PPI 
released 12 months later (the updated index). The formula for 
determining the Adjusted Contract Price (ACP) applicable to shipments 
for the balance of the contract period is--
[GRAPHIC] [TIFF OMITTED] TR09JY99.000

    (c) If the PPI is not available for the month of the base index or 
the updated index, the month with the most recently published PPI prior 
to the month determining the base index or updated index shall be used.
    (d) If a product code is discontinued, the Government and the 
Contractor will mutually agree to substitute a similar product code. If 
Labor designates an index with a new title and/or code number as 
continuous with the product code specified above, the new index shall be 
used.
    (e) Unless the Contractor's written request for a price adjustment 
resulting from the application of the formula in (b) above is received 
by the Contracting Officer within 30 calendar days of the release of the 
updated index, the Contractor shall have waived its right to an upward 
price adjustment for the balance of the contract. Alternatively, the 
Contracting Officer will unilaterally adjust the award price downward 
when appropriate using the updated index defined in (b) above.
    (f) Price adjustments shall be effective upon execution of a 
contract modification by the Government or on the 31st day following the 
release of the updated index, whichever is later, shall indicate the 
updated index and percent of change as well as the ACP, and shall not 
apply to delivery orders issued before the effective date.

                             (End of clause)

    Alternate I (AUG 2010). As prescribed in 516.203-4(a)(1) and (2), 
substitute the following paragraphs (b), (e), and (f) for paragraphs 
(b), (e), and (f) of the basic clause:

    (b) Once during each 12-month period, the contract price may be 
adjusted upward or downward a maximum of ___*___ percent.
    (1) For the first option period, any price adjustment for the 
product code shall be based upon the percentage change in the PPI 
released in the month prior to the initial month of the contract period 
specified in the solicitation for sealed bidding or the month prior to 
award in negotiation (the base index) and the PPI released in the third 
month before completion of the initial contract period stated in the 
solicitation (the updated index). This initial contract period may be 
less than 12 months. The formula for determining the Adjusted Contract 
Price (ACP) applicable to shipments during the first option period is--
[GRAPHIC] [TIFF OMITTED] TR09JY99.001

    (2) For any subsequent option period, the price adjustment shall be 
the percentage change between the previously updated index (the new base 
index) and the PPI released 12 months later (the most recent updated 
index). This percentage shall be applied to the Current Contract Price 
(CCP). The formula for determining the ACP applicable to shipments for 
the subsequent option period(s) is--
[GRAPHIC] [TIFF OMITTED] TR09JY99.002

    (e) Unless the Contractor's written request for a price adjustment 
resulting from the application of the formulas in (b) (1) or (2) above 
is received by the Contracting Officer within 30 calendar days of the 
date of the Government's preliminary written notice of its intent to 
exercise the option, the Contractors shall have waived its right to an 
upward price adjustment for that option period. Alternatively, the 
Contracting Officer in its written notice shall exercise the option

[[Page 216]]

at the CCP or at a reduced price when appropriate using the formulas in 
(b) (1) or (2) above.
    (f) Price adjustments shall be effected by execution of a contract 
modification by the Government indicating the most recent updated index 
and percent of change and shall apply to delivery orders placed on or 
after the first day of the option period.

    Alternate II (AUG 2010). As prescribed in 516.203-4(a)(2), add the 
following paragraph (g) to the basic clause.

    (g) No price adjustment will be made unless the percentage change in 
the PPI is at least ___*___ percent.
    ** The Contracting Officer should insert a lower percent than the 
maximum percentage stated in paragraph (b) of the clause.

    * The appropriate percentage should be determined based upon the 
historical trend in the PPI for the product code. A ceiling of more than 
10 percent must be approved by the Contracting Director.

[64 FR 37229, July 9, 1999, as amended at 75 FR 41096, July 15, 2010]



552.216-72  Placement of Orders.

    As prescribed in 516.506(a), insert the following clause:

                     Placement of Orders (JAN 2016)

    (a) Delivery orders (orders) will be placed by:
    [Contracting Officer insert names of Federal agencies]
    (b) Orders may be placed through Electronic Data Interchange (EDI) 
or mailed in paper form. EDI orders shall be placed using the American 
National Standards Institute (ANSI) X12 Standard for Electronic Data 
Interchange (EDI) format.
    (c) If the Contractor agrees, General Services Administration's 
Federal Acquisition Service (FAS) will place all orders by EDI using 
computer-to-computer EDI. If computer-to-computer EDI is not possible, 
FAS will use an alternative EDI method allowing the Contractor to 
receive orders by facsimile transmission. Subject to the Contractor's 
agreement, other agencies may place orders by EDI.
    (d) When computer-to-computer EDI procedures will be used to place 
orders, the Contractor shall enter into one or more Trading Partner 
Agreements (TPA) with each Federal agency placing orders electronically 
in order to ensure mutual understanding by the parties of certain 
electronic transaction conventions and to recognize the rights and 
responsibilities of the parties as they apply to this method of placing 
orders. The TPA must identify, among other things, the third party 
provider(s) through which electronic orders are placed, the transaction 
sets used, security procedures, and guidelines for implementation. 
Federal agencies may obtain a sample format to customize as needed from 
the office specified in (g) below.
    (e) The Contractor shall be responsible for providing its own 
hardware and software necessary to transmit and receive data 
electronically. Additionally, each party to the TPA shall be responsible 
for the costs associated with its use of third party provider services.
    (f) Nothing in the TPA will invalidate any part of this contract 
between the Contractor and the General Services Administration. All 
terms and conditions of this contract that otherwise would be applicable 
to a mailed order shall apply to the electronic order.
    (g) The basic content and format of the TPA will be provided by: 
General Services Administration, Office of the Chief Information Officer 
(I). Contact information can be found at: http://www.gsa.gov/portal/
category/21404.

                             (End of clause)

    Alternate I (AUG 2010). As prescribed in 516.506(a), substitute the 
following paragraphs (a), (b), (c), and (d) for paragraphs (a), (b), 
(c), and (d) of the basic clause:

    (a) All delivery orders (orders) under this contract will be placed 
by the General Services Administration's Federal Acquisition Service 
(FAS). The Contractor is not authorized to accept orders from any other 
agency. Violation of this restriction may result in termination of the 
contract pursuant to the default clause of this contract.
    (b) All orders shall be placed by Electronic Data Interchange (EDI) 
using the American National Standards Institute (ANSI) X12 Standard for 
Electronic Data Interchange (EDI) format.
    (c) If the Contractor agrees, transmission will be computer-to-
computer EDI. If computer-to-computer EDI is not possible, FAS will use 
an alternative EDI method allowing the Contractor to receive orders by 
facsimile transmission.
    (d) When computer-to-computer EDI procedures will be used to place 
orders, the Contractor shall enter into a Trading Partner Agreement 
(TPA) with FAS in order to ensure mutual understanding by the parties of 
certain electronic transaction conventions and to recognize the rights 
and responsibilities of the parties as they apply to this method of 
placing orders. The TPA must identify among other things, the third 
party provider(s) through which electronic orders

[[Page 217]]

are placed, the transaction sets used, security procedures, and 
guidelines for implementation.

[64 FR 37229, July 9, 1999, as amended at 68 FR 24380, May 7, 2003; 69 
FR 28065, May 18, 2004; 72 FR 4654, Feb. 1, 2007; 75 FR 41096, July 15, 
2010; 81 FR 1533, Jan. 13, 2016]



552.216-73  Ordering Information.

    As prescribed in 516.506(c), insert the following provision:

                     Ordering Information (AUG 2010)

    (a) In accordance with the Placement of Orders clause of this 
solicitation, the offeror elects to receive orders placed by GSA's 
Federal Acquisition Service (FAS) by either 
 facsimile transmission or 
 computer-to-computer Electronic Data Interchange (EDI).
    (b) An offeror electing to receive computer-to-computer EDI is 
requested to indicate below the name, address, and telephone number of 
the representative to be contacted regarding establishment of an EDI 
interface.

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

    (c) An offeror electing to receive orders by facsimile transmission 
is requested to indicate below the telephone number(s) for facsimile 
transmission equipment where orders should be forwarded.

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

    (d) For mailed orders, the offeror is requested to include the 
postal mailing address(es) where paper form orders should be mailed.

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________
    (e) Offerors marketing through dealers are requested to indicate 
below whether those dealers will be participating in the proposed 
contract.
    Yes (  ) No (  )
    If ``yes'' is checked, ordering information to be inserted above 
shall reflect that in addition to offeror's name, address, and facsimile 
transmission telephone number, orders can be addressed to the offeror's 
name, c/o nearest local dealer. In this event, two copies of a list of 
participating dealers shall accompany this offer, and shall also be 
included in Contractor's Federal Supply Schedule pricelist.

                           (End of provision)

    Alternate I (SEP 1999). As prescribed in 516.506(c), delete 
paragraph (d) of the basic provision.

[64 FR 37229, July 9, 1999, as amended at 72 FR 4654, Feb. 1, 2007; 75 
FR 41096, July 15, 2010]



552.216-74  Task-Order and Delivery-Order Ombudsman.

    As prescribed in 516.506(b), insert the following clause:

           Task-Order and Delivery-Order Ombudsman (JAN 2017)

    (a) GSA has designated a Task-Order and Delivery-Order Ombudsman who 
will review complaints from contractors and ensure that they are 
afforded a fair opportunity for consideration in the award of task or 
delivery orders under Indefinite Delivery/Indefinite Quantity (ID/IQ) 
contracts, consistent with the procedures in the contract. Written 
complaints shall be submitted to the Ombudsman, with a copy to the 
Contracting Officer.
    (b) In the case that the contractor is not satisfied with the 
resolution of the complaint by the GSA Task-Order and Delivery-Order 
Ombudsman, the contractor may follow the procedures outlined in subpart 
33.1.
    (c) The GSA Task-Order and Delivery-Order Ombudsman is located at 
the General Services Administration (GSA), Office of Government-wide 
Policy (OGP), Office of Acquisition Policy (MV). Contact information for 
the GSA Task-Order and Delivery-Order Ombudsman can be found at: http://
www.gsa.gov/ombudsman.

(End of Clause)

[75 FR 41096, July 15, 2010, as amended at 81 FR 1533, Jan. 13, 2016; 82 
FR 2250, Jan. 9, 2017]



552.216-75  Transactional Data Reporting.

    As prescribed in 516.506(d), insert the following provision:

                 Transactional Data Reporting (JUN 2016)

    (a) Definition. Transactional data encompasses the historical 
details of the products or services delivered by the Contractor during 
the performance of task or delivery orders issued against this contract.
    (b) Reporting of Transactional Data. The Contractor must report all 
transactional data under this contract as follows:
    (1) The Contractor must electronically report transactional data by 
utilizing the automated reporting system at an Internet Web site 
designated by the General Services Administration (GSA) or by uploading 
the data according to GSA instructions. GSA

[[Page 218]]

will post registration instructions and reporting procedures on the 
Vendor Support Center Web site, https://vsc.gsa.gov. The reporting 
system Web site address, as well as registration instructions and 
reporting procedures, will be provided at the time of award or inclusion 
of this clause in the contract.
    (2) The Contractor must provide, at no additional cost to the 
Government, the following transactional data elements, as applicable:
    (i) Contract or Blanket Purchase Agreement (BPA) Number.
    (ii) Delivery/Task Order Number/Procurement Instrument Identifier 
(PIID).
    (iii) Non Federal Entity.
    (iv) Description of Deliverable.
    (v) Manufacturer Name.
    (vi) Manufacturer Part Number.
    (vii) Unit Measure (each, hour, case, lot).
    (viii) Quantity of Item Sold.
    (ix) Universal Product Code.
    (x) Price Paid per Unit.
    (xi) Total Price.
    Note to paragraph (b)(2): The Contracting Officer may add data 
elements to the standard elements listed in paragraph (b)(2) of this 
section with the approvals listed in GSAM 507.105(c)(3).
    (3) The Contractor must report transactional data within 30 calendar 
days from the last calendar day of the month. If there was no contract 
activity during the month, the Contractor must submit a confirmation of 
no reportable transactional data within 30 calendar days of the last 
calendar day of the month.
    (4) The Contractor must report the price paid per unit, total price, 
or any other data elements with an associated monetary value listed in 
(b)(2) of this section, in U.S. dollars.
    (5) The Contractor must maintain a consistent accounting method of 
transactional data reporting, based on the Contractor's established 
commercial accounting practice.
    (6) Reporting Points. (i) The acceptable points at which 
transactional data may be reported include--
    (A) Issuance of an invoice; or
    (B) Receipt of payment.
    (ii) The Contractor must determine whether to report transactional 
data on the basis of invoices issued or payments received.
    (7) The Contractor must continue to furnish reports, including 
confirmation of no transactional data, through physical completion of 
the last outstanding task or delivery order issued against the contract.
    (8) Unless otherwise expressly stated by the ordering activity, 
orders that contain classified information or other information that 
would compromise national security are exempt from this reporting 
requirement.
    (9) This clause does not exempt the Contractor from fulfilling 
existing reporting requirements contained elsewhere in the contract.
    (10) GSA reserves the unilateral right to change reporting 
instructions following 60 calendar days' advance notification to the 
Contractor.
    (c) Contract Access Fee (CAF). (1) GSA's operating costs are 
reimbursed through a CAF charged on orders placed against this contract. 
The CAF is paid by the ordering activity but remitted to GSA by the 
Contractor. GSA has the unilateral right to change the fee structure at 
any time, but not more than once per year; GSA will provide reasonable 
notice prior to the effective date of any change.
    (2) Within 60 calendar days of award or inclusion of this clause in 
the contract, a GSA representative will provide the Contractor with 
specific written procedural instructions on remitting the CAF, including 
the deadline by which the Contractor must remit the CAF. The deadline 
specified in the written procedural instructions will be no less than 30 
calendar days after the last calendar day of the month. GSA reserves the 
unilateral right to change remittance instructions following 60 calendar 
days' advance notification to the Contractor.
    (3) The Contractor must remit the CAF to GSA in U.S. dollars.
    (4) The Contractor's failure to remit the full amount of the CAF 
within the specified deadline constitutes a contract debt to the United 
States Government under the terms of FAR Subpart 32.6. The Government 
may exercise all rights under the Debt Collection Improvement Act of 
1996, including withholding or offsetting payments and interest on the 
debt (see FAR clause 52.232-17, Interest). If the Contractor fails to 
submit the required sales reports, falsifies them, or fails to timely 
pay the CAF, these reasons constitute sufficient cause for the 
Government to terminate the contract for cause.


(End of Provision)

[81 FR 41137, June 23, 2016]



552.216-76  Ordering Agency Task-Order and Delivery-Order Ombudsman.

    As prescribed in 516.506(d), insert the following provision:

   Ordering Agency Task-Order and Delivery-Order Ombudsman (JAN 2017)

    (a) Ordering Agency Task-Order and Delivery-Order Ombudsman. The 
Ordering Agency shall designate a Task-Order and Delivery-Order 
Ombudsman to review complaints from contractors and ensure that they are 
afforded a fair opportunity for consideration in the award of task or 
delivery orders

[[Page 219]]

placed against GSA Indefinite Delivery/Indefinite Quantity (ID/IQ) 
contracts, consistent with the procedures in the contract. The contact 
information for the Ordering Agency Task-Order and Delivery-Order 
Ombudsman shall be made available to contractors.
    (b) Submission of Complaints. When a contractor submits a complaint 
to the Ordering Agency's designated Task-Order and Delivery-Order 
Ombudsman, the contractor shall also send a copy of the complaint to the 
GSA Procurement Ombudsman, for informational purposes. The GSA 
Procurement Ombudsman is located at the General Services Administration, 
Office of Governmentwide Policy (OGP), Office of Acquisition Policy 
(MV). Contact information for the GSA Procurement Ombudsman can be found 
at: http://www.gsa.gov/ombudsman.
    (c) If the contractor is not satisfied with the resolution of its 
complaint by the Ordering Agency Task-Order and Delivery-Order 
Ombudsman, the contractor may follow the procedures outlined in FAR 
subpart 33.1, as applicable (e.g., FAR 16.505(a)(10).

(End of Clause)

[82 FR 2250, Jan. 9, 2017]



552.217-70  Evaluation of Options.

    As prescribed in 517.208(a), insert the following provision:

                    Evaluation of Options (JUL 2016)

    (a) The Government will evaluate offers for award purposes by 
determining the lowest base period price. When option year pricing is 
based on a formula (e.g., changes in the Producer Price Index or other 
common standard), option year pricing is automatically considered when 
evaluating the base year price, as any change in price will be uniformly 
related to changes in market conditions. All options are therefore 
considered to be evaluated. Evaluation of options will not obligate the 
Government to exercise the option(s).
    (b) The Government will reject the offer if exceptions are taken to 
the price provisions of the Economic Price Adjustment clause, unless the 
exception results in a lower maximum option year price. Such offers will 
be evaluated without regard to the lower option year(s) maximum. 
However, if the offeror offering a lower maximum is awarded a contract, 
the award will reflect the lower maximum.

[64 FR 37218, July 9, 1999, as amended at 81 FR 36422, June 6, 2016]



552.217-71  Notice Regarding Option(s).

    As prescribed in 517.208(b), insert the following provision:

                  Notice Regarding Option(s) (NOV 1992)

    The General Services Administration (GSA) has included an option to 
[Insert ``purchase additional quantities of supplies or services'' or 
``extend the term of this contract'' or ``purchase additional quantities 
of supplies or services and to extend the term of this contract''] in 
order to demonstrate the value it places on quality performance by 
providing a mechanism for continuing a contractual relationship with a 
successful Offeror that performs at a level which meets or exceeds GSA's 
quality performance expectations as communicated to the Contractor, in 
writing, by the Contracting Officer or designated representative. When 
deciding whether to exercise the option, the Contracting Officer will 
consider the quality of the Contractor's past performance under this 
contract in accordance with 48 CFR 517.207.

                           (End of provision)



552.217-73  Notice Regarding Information Collection Requirements.

    As prescribed in 515.209-70(b), insert the following clause:

                            Notice (JUN 2016)

    (a) The information collection requirements contained in this 
solicitation/contract are either required by regulation or approved by 
the Office of Management and Budget pursuant to the Paperwork Reduction 
Act and assigned OMB Control No. 3090-0163.
    (b) GSA's hours of operation are 8:00 a.m. to 4:30 p.m. EST. 
Requests for pre-award debriefings postmarked or otherwise submitted 
after 4:30 p.m. EST will be considered submitted the following business 
day. Requests for post-award debriefings delivered after 4:30 p.m. EST 
will be considered received and filed the following business day.

                             (End of clause)

[81 FR 36425, June 6, 2016]



552.219-70  Allocation of Orders--Partially Set-Aside Items.

    As prescribed in 519.508, insert the following clause:

       Allocation of Orders--Partially Set-Aside Items (SEP 1999)

    Where the set-aside portion of an item or group of items is awarded 
to a Contractor other than the one receiving the award on the 
corresponding non-set-aside portion, the Government will divide the 
requirements to be ordered between the two Contractors with the 
objective of achieving, as nearly as possible, a 50/50 division of the 
total value of orders placed after the award of the set-aside

[[Page 220]]

portion. In no case will this division vary by more than a 60/40 
division (with either the non-set-aside or set-aside Contractor 
receiving the larger portion) from the time of the award of the set-
aside portion.

                             (End of clause)



552.219-71  Notice to Offerors of Subcontracting Plan Requirements.

    As prescribed in 519.708-70(a), insert the following provision:

   Notice to Offerrors of Subcontracting Plan Requirements (OCT 2016)

    The General Services Administration (GSA) is committed to assuring 
that maximum practicable opportunity is provided to small, HUBZone 
small, small disadvantaged, women-owned, veteran-owned, and service-
disabled veteran-owned small business concerns to participate in the 
performance of this contract consistent with its efficient performance. 
GSA expects any subcontracting plan submitted pursuant to FAR 52.219-9, 
Small Business Subcontracting Plan, to reflect this commitment. The plan 
must demonstrate a creative and innovative program for involving small, 
HUBZone small, small disadvantaged, women-owned, veteran-owned, and 
service-disabled veteran-owned small business concerns as subcontractors 
in the performance of this contract.

                           (End of provision)

[64 FR 37229, July 9, 1999, as amended at 70 FR 32522, 32523, June 3, 
2005; 77 FR 10666, Feb. 23, 2012; 81 FR 68335, Oct. 4, 2016]



552.219-72  Preparation, Submission, and Negotiation of Subcontracting
Plans.

    As prescribed in 519.708-70(b), insert the following provision:

 Preparation, Submission, and Negotiation of Subcontracting Plans (OCT 
                                  2016)

    (a) When submitting a subcontracting plan in accordance with FAR 
52.219-9, the offeror shall submit a subcontracting plan with its 
initial offer. The subcontracting plan will be negotiated concurrently 
with price and any required technical and management proposals, unless 
the offeror submits a previously-approved commercial plan.
    (b) Maximum practicable utilization of small, HUBZone small, small 
disadvantaged, women-owned, veteran-owned, and service-disabled veteran 
owned small business concerns as subcontractors is a matter of national 
interest with both social and economic benefits. The General Services 
Administration (GSA) expects that an offeror's subcontracting plan will 
reflect a commitment to assuring that small, HUBZone small, small 
disadvantaged, women-owned, veteran-owned, and service-disabled veteran 
owned small business concerns are provided the maximum practicable 
opportunity, consistent with efficient contract performance, to 
participate as subcontractors in the performance of the resulting 
contract. An offeror submitting a commercial plan can reflect this 
commitment through subcontracting opportunities it provides that relate 
to the offeror's production generally; i.e., for both its commercial and 
Government business.
    (c) GSA believes that this potential contract provides significant 
opportunities for the use of small, HUBZone small, small disadvantaged, 
women-owned, veteran-owned, and service-disabled veteran-owned small 
business concerns as subcontractors. Consequently, in addressing the 
eleven elements described at FAR 52.219-9(d) of the clause in this 
contract entitled Small Business Subcontracting Plan, the offeror shall:
    (1) Demonstrate that its subcontracting plan represents a creative 
and innovative program for involving small, HUBZone small, small 
disadvantaged, women-owned, veteran-owned, and service-disabled veteran-
owned small business concerns in performing the contract.
    (2) Include a description of the offeror's subcontracting strategies 
used in any previous contracts, significant achievements, and how this 
plan will build upon those earlier achievements.
    (3) Demonstrate through its plan that it understands the small 
business subcontracting program's objectives and GSA's expectations, and 
it is committed to taking those actions necessary to meet these goals or 
objectives.
    (d) In determining the acceptability of any subcontracting plan, the 
Contracting Officer will take each of the following actions:
    (1) Review the plan to verify that the offeror demonstrates an 
understanding of the small business subcontracting program's objectives 
and GSA's expectations with respect to the program and has included all 
the information, goals, and assurances required by FAR 52.219-9.
    (2) Consider previous goals and achievements of contractors in the 
small industry.
    (3) Consider information and potential sources obtained from 
agencies administering national and local preference programs and other 
advocacy groups in evaluating whether the goals stated in the plan 
adequately reflect the anticipated potential for subcontracting to 
small, HUBZone small, small disadvantaged, women-owned, veteran-owned, 
and service-disabled veteran-owned small business concerns.

[[Page 221]]

    (4) Review the offeror's description of its strategies, historical 
performance and significant achievements in placing subcontracts for the 
same or similar products or services with small, HUBZone small, small 
disadvantaged, women-owned, veteran-owned, and service-disabled veteran-
owned small business concerns. The offeror's description can apply to 
commercial as well as previous Government contracts.
    (e) Failure to submit an acceptable subcontracting plan and/or 
correct deficiencies in a plan within the time specified by the 
Contracting Officer shall make the offeror ineligible for award.

                           (End of provision)

[64 FR 37229, July 9, 1999, as amended at 70 FR 32522, 32523, June 3, 
2005; 77 FR 10666, Feb. 23, 2012; 81 FR 68336, Oct. 4, 2016]



552.219-73  Goals for Subcontracting Plan.

    As prescribed in 519.708-70(c), insert the following provision:

                Goals for Subcontracting Plan (JUN 2005)

    (a) Maximum practicable utilization of small, HUBZone small, small 
disadvantaged, women-owned, veteran-owned, and service-disabled veteran-
owned small business concerns as subcontractors is a matter of national 
interest with both social and economic benefits.
    (1) The General Service Administration's (GSA's) commitment to 
ensuring that maximum practicable opportunity is provided to small, 
HUBZone small, small disdvantaged, women-owned, veteran-owned, and 
service-disabled veteran-owned small business concerns to participate as 
subcontractors in the performance of this contract, consistent with its 
efficient performance, must be reflected in the offeror's subcontracting 
plan submitted pursuant to the clause of this contract at FAR 52.219-9, 
Small Business Subcontracting Plan.
    (2) In addressing the eleven elements described at FAR 52.219-9(d), 
the offeror shall demonstrate that its subcontracting plan represents a 
creative and innovative program for involving small, HUBZone small, 
small disadvantaged, women-owned, veteran-owned, and service-disabled 
veteran owned small business concerns in performing this contract. An 
offeror submitting a commercial plan can demonstrate its commitment in 
providing maximum practicable opportunities through subcontracting 
opportunities it provides to small, HUBZone small, small disadvantaged, 
women-owned, veteran-owned, and service-disabled veteran owned small 
business concerns that relate to the offeror's production generally; 
i.e., for both its commercial and Government business.
    (3) The subcontracting plan shall include a description of the 
offeror's subcontracting strategies used in previous contracts and 
significant achievements, with an explanation of how this plan will 
build upon those earlier achievements. Additionally, the offeror shall 
demonstrate through its plan that it understands the small business 
subcontracting program's objectives, GSA's expectations, and is 
committed to taking those actions necessary to meet these goals or 
objectives.
    (b) GSA believes that this contract provides significant 
opportunities for the use of small, HUBZone small, small disadvantaged, 
women-owned, veteran-owned, and service-disabled veteran-owned small 
business concerns as subcontractors. Accordingly, it is anticipated that 
an acceptable subcontracting plan will contain at least the following 
goals:

Small Business.......................................        __ percent.
HUBZone Small Business...............................        __ percent.
Small Disadvantaged Business.........................        __ percent.
Women-Owned Small Business...........................        __ percent.
Veteran-Owned Small Business.........................        __ percent.
Service-Disabled Veteran-Owned Small Business........        __ percent.
 

    Note: Target goals are expressed as a percentage of planned 
subcontracting dollars.

    (c) In determining the acceptability of any subcontracting plan, the 
Contracting Officer will--
    (1) Review the plan to verify that the offeror has demonstrated an 
understanding of the small business subcontracting program's objectives 
and GSA's expectations with respect to the programs and has included all 
the information, goals, and assurances required by FAR 52.219-9;
    (2) Consider previous goals and achievements of contractors in the 
same industry;
    (3) Consider information and potential sources obtained from 
agencies administering national and local preference programs and other 
advocacy groups in evaluating whether the goals stated in the plan 
adequately reflect the anticipated potential for subcontracting to 
small, HUBZone small, small disadvantaged, women-owned, veteran-owned, 
and service-disabled veteran-owned small business concerns; and
    (4) Review the offeror's description of its strategies, historical 
performance and significant achievements in placing subcontracts for the 
same or similar products or services with small, HUBZone small, small 
disadvantaged, women-owned, veteran-owned, and service-disabled veteran-
owned small business concerns. The offeror's description can apply to 
commercial as well as previous Government contracts.
    (d) Failure to submit an acceptable subcontracting plan and/or 
correct deficiencies

[[Page 222]]

in a plan within the time specified by the Contracting Officer shall 
make the offeror ineligible for award.

                           (End of provision)

    Alternate I (SEP 1999). As prescribed in 519.708-70(c)(2), delete 
paragraph (b) of the basic provision and redesignate paragraphs (c) and 
(d) as paragraphs (b) and (c).

[64 FR 37229, July 9, 1999, as amended at 70 FR 32522, 32523, June 3, 
2005]



552.219-74  Section 8(a) Direct Award.

    As prescribed in 519.870-8, insert the following clause:

                  Section 8(a) Direct Award (SEP 1999)

    (a) This contract is issued as a direct award between the 
contracting activity and the 8(a) Contractor pursuant to the Memorandum 
of Understanding between the Small Business Administration (SBA) and the 
General Services Administration. SBA retains the responsibility for 8(a) 
certifications, 8(a) eligibility determinations, and related issues, and 
will provide counseling and assistance to the 8(a) contractor under the 
8(a) program. The cognizant SBA district office is: [Complete at time of 
award]
    (b) The contracting activity is responsible for administering the 
contract and taking any action on behalf of the Government under the 
terms and conditions of the contract. However, the contracting activity 
shall give advance notice to SBA before it issues a final notice 
terminating performance, either in whole or in part, under the contract. 
The contracting activity shall also coordinate with SBA prior to 
processing any advance payments or novation agreements. The contracting 
activity may assign contract administration functions to a contract 
administration office.
    (c) The Contractor agrees:
    (1) To notify the Contracting Officer, simultaneous with its 
notification to SBA (as required by SBA's 8(a) regulations), when the 
owner or owners upon whom 8(a) eligibility is based plan to relinquish 
ownership or control of the concern. Consistent with 15 U.S.C. 
637(a)(21), transfer of ownership or control shall result in termination 
of the contract for convenience, unless SBA waives the requirement for 
termination prior to the actual relinquishing of ownership and control.
    (2) To the requirements of 52.219-14, Limitations on Subcontracting.

                             (End of clause)



552.219-75  GSA Mentor-Protege Program.

    As prescribed in 519.7017(a), insert the following clause:

                  GSA Mentor-Protege Program (SEP 2009)

    (a) Prime contractors, including small businesses, are encouraged to 
participate in the GSA Mentor-Protege Program for the purpose of 
providing developmental assistance to eligible protege entities to 
enhance their capabilities and increase their participation in GSA 
contracts.
    (b) The Program consists of:
    (1) Mentor firms are large prime contractors with at least one 
active subcontracting plan, or that are eligible small businesses;
    (2) Proteges are subcontractors to the prime contractor, and include 
small business concerns, small disadvantaged business concerns, veteran-
owned small business concerns, service-disabled veteran-owned small 
business concerns, HUBZone small business concerns, and women-owned 
small business concerns meeting the qualifications specified in Subpart 
519.70; and
    (3) Mentor-protege Applications and Agreements, approved by the 
Mentor-Protege Program Manager in the GSA Office of Small Business 
Utilization (OSBU).
    (c) Mentor participation in the Program 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 GSA contracts and subcontracts.
    (d) Contractors interested in participating in the Program are 
encouraged to read FAR Subpart 19.7 and to contact the GSA Office of 
Small Business Utilization (E), Washington, DC 20405, (202) 501-1021, 
for further information.

                             (End of clause)

[74 FR 41066, Aug. 14, 2009]



552.219-76  Mentor Requirements and Evaluation.

    As prescribed in 519.7017(b), insert the following clause:

              Mentor Requirements and Evaluation (MAR 2012)

    (a) The purpose of the GSA Mentor-Protege Program is for a GSA prime 
contractor to provide developmental assistance to certain subcontractors 
qualifying as proteges. Eligible proteges include small business 
concerns, small disadvantaged business concerns, veteran-owned small 
business concerns, service-disabled veteran-owned small business 
concerns, HUBZone small business concerns, and

[[Page 223]]

women-owned small business concerns meeting the qualifications specified 
in section 519.7007. The Program requires an Application process and an 
Agreement between the mentor and the protege. See GSAR Subpart 519.70 
for more information.
    (b) GSA will evaluate a GSA mentor's performance on the following 
factors:
    (1) Specific actions taken by the contractor, during the evaluation 
period, to increase the participation of its protege as a subcontractor 
and supplier;
    (2) Specific actions taken by the contractor during this evaluation 
period to develop the technical and corporate administrative expertise 
of its 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 other than the mentor, and from 
agencies.
    (c) Semi-annual reports shall be submitted by a GSA mentor to the 
GSA Mentor-Protege Program Manager, GSA Office of Small Business 
Utilization (E), Washington, DC 20405. The reports must include 
information as outlined in paragraph (b) of this section. The semi-
annual report may include a narrative describing the forms of 
developmental assistance a mentor provides to a protege and any other 
types of permissible, mutually beneficial assistance.
    (d) A GSA mentor will notify the GSA Mentor-Protege Program Manager 
and the contracting officer, in writing, at least 30 days in advance of 
the mentor firm's intent to voluntarily withdraw from the GSA Program or 
terminate the Agreement, or upon receipt of a protege's notice to 
withdraw from the Program.
    (e) GSA mentor and protege firms will submit a ``Lessons Learned'' 
evaluation to the GSA Mentor-Protege Program Manager at the conclusion 
of the Mentor-Protege Agreement. At the end of each year in the Mentor-
Protege Program, the mentor and protege, as appropriate, will formally 
brief the GSA Mentor-Protege Program manager, the technical program 
manager, and the contracting officer during a formal Program review 
regarding Program accomplishments as they pertain to the approved 
Agreement.
    (f) GSA has the authority to exclude mentor or protege firms from 
participating in the GSA Program. If GSA excludes a mentor or a protege 
from the Program, the GSA Office of Small Business Utilization will 
deliver to the contractor a Notice specifying the reason for Program 
exclusion and the effective date. The exclusion from the Program 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 section 519.7010(j).
    (g) Subcontracts awarded to GSA protege firms under this Program are 
exempt from competition requirements, notwithstanding FAR 52.244-5. 
However, price reasonableness should still be determined.

                             (End of clause)

[74 FR 41066, Aug. 14, 2009, as amended at 77 FR 10666, Feb. 23, 2012]



552.223-70  Hazardous Substances.

    As prescribed in 523.303(a), insert the following clause:

                     Hazardous Substances (MAY 1989)

    (a) If the packaged items to be delivered under this contract are of 
a hazardous substance and ordinarily are intended or considered to be 
for use as a household item, this contract is subject to the Federal 
Hazardous Materials Act, as amended (15 U.S.C. 1261-1276), implementing 
regulations thereof (16 CFR Chapter II), and Federal Standard No. 123, 
Marking for Shipment (Civil Agencies), issue in effect on the date of 
this solicitation.
    (b) The packaged items to be delivered under this contract are 
subject to the preparation of shipping documents, the preparation of 
items for transportation, shipping container construction, package 
making, package labeling, when required, shipper's certification of 
compliance, and transport vehicle placarding in accordance with Parts 
171 through 178 of 49 CFR and the Hazardous Materials Transportation 
Act.
    (c) The minimum packaging acceptable for packaging Department of 
Transportation regulated hazardous materials shall be those in 49 CFR 
173.

                             (End of clause)



552.223-71  Nonconforming Hazardous Materials.

    As prescribed in 523.303(b), insert the following clause:

              Nonconforming Hazardous Materials (SEP 1999)

    (a) Nonconforming supplies that contain hazardous material or that 
may expose persons who handle or transport the supplies to hazardous 
material and which require replacement under the inspection and/or 
warranty clauses of this contract shall be reshipped to the Contractor 
at the Contractor's expense. The Contractor agrees to accept return of 
these nonconforming supplies

[[Page 224]]

and to pay all costs occasioned by their return.
    (b) ``Hazardous materials,'' as used in this clause, includes any 
material defined as hazardous under the latest version of Federal 
Standard No. 313 (including revisions adopted during the term of the 
contract).
    (c) If the Contractor fails to provide acceptable disposition 
instructions for the nonconforming supplies within 10 days from the date 
of the Government's request (or such longer period as may be agreed to 
between the Contracting Officer and the Contractor), or fails to accept 
return of the reshipped nonconforming supplies, such failure:
    (1) may be interpreted as a willful failure to perform,
    (2) may result in termination of the contract for default and
    (3) shall be considered by the Contracting Officer in determining 
the responsibility of the Contractor for any future award (see FAR 
9.104-3(b) and 9.406-2).
    (d) Pending final resolution of any dispute, the Contractor shall 
promptly comply with the decision of the Contracting Officer.

                             (End of clause)



552.223-72  Hazardous Material Information.

    As prescribed in 523.370, insert the following provision:

                Hazardous Material Information (SEP 1999)

    Offeror shall indicate for each national stock number (NSN) the 
following information:

------------------------------------------------------------------------
                    DOT shipping   DOT hazard
       NSN              name         class         DOT label required
------------------------------------------------------------------------
                                               Yes [  ]    No [  ]
                                               Yes [  ]    No [  ]
                                               Yes [  ]    No [  ]
------------------------------------------------------------------------

                           (End of provision)



552.223-73  Preservation, Packaging, Packing, Marking and Labeling of
Hazardous Materials (HAZMAT) For Shipments.

    As prescribed in 523.303(c), insert the following clause:

  Preservation, Packaging, Packing, Marking and Labeling of Hazardous 
               Materials (HAZMAT) For Shipments [JUN 2015]

    (a) Definition. United States, as used in this clause, means the 48 
adjoining U.S. States, Alaska, Hawaii, and U.S. territories and 
possessions, such as Puerto Rico.
    (b) Preservation, packaging, packing, marking and labeling of 
hazardous materials for export shipment outside the United States in all 
transport modes shall comply with the following, as applicable:
    (1) International Maritime Dangerous Goods (IMDG) Code as 
established by the International Maritime Organization (IMO).
    (2) U.S. Department of Transportation (DOT) Hazardous Material 
Regulation (HMR) 49 CFR parts 171 through 180. (Note: Classifications 
permitted by the HMR, but not permitted by the IMDG code, such as 
Consumer Commodities classed as ORM-D, shall be packaged in accordance 
with the IMDG Code and dual-marked with both Consumer Commodity and IMDG 
marking and labeling.)
    (3) Occupational Safety and Health Administration (OSHA) Regulation 
29 CFR part 1910.1200.
    (4) International Air Transport Association (IATA), Dangerous Goods 
Regulation and/or International Civil Aviation Organization (ICAO), 
Technical Instructions.
    (5) AFMAN 24-204, Air Force Inter-Service Manual, Preparing 
Hazardous Materials For Military Air Shipments.
    (6) Any preservation, packaging, packing, marking and labeling 
requirements contained elsewhere in this solicitation and contract.
    (c) Preservation, packaging, packing, marking and labeling of 
hazardous materials for domestic shipments within the United States in 
all transport modes shall comply with the following; as applicable:
    (1) U.S. Department of Transportation (DOT) Hazardous Material 
Regulation (HMR) 49 CFR parts 171 through 180.
    (2) Occupational Safety and Health Administration (OSHA) Regulation 
29 CFR part 1910.1200.
    (3) Any preservation, packaging, packing, marking and labeling 
requirements contained elsewhere in this solicitation and contract.
    (d) Hazardous Material Packages designated for outside the United 
States destinations through Forwarding Points, Distribution Centers, or 
Container Consolidation Points (CCPs) shall comply with the IMDG, IATA, 
ICAO or AFMAN 24-204 codes, as applicable.
    (e) The test certification data showing compliance with performance-
oriented packaging or UN-approved packaging requirements shall be made 
available to GSA contract administration/management representatives or 
regulatory inspectors upon request.

                             (End of clause)

[80 FR 36249, June 24, 2015]

[[Page 225]]



552.227-70  Government Rights (Unlimited).

    As prescribed in 527.409, insert the following clause:

                Government Rights (Unlimited) (MAY 1989)

    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 copyright 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.

                             (End of clause)



552.227-71  Drawings and Other Data To Become Property of Government.

    As prescribed in 527.409(b), substitute the following clause:

   Drawings and Other Data To Become Property of Government (MAY 1989)

    All designs, drawings, specifications, notes and other works 
developed in the performance of this contract shall become the sole 
property of the Government and may be used on any other design or 
construction without additional compensation to the Contractor. The 
Government shall be considered the ``person for whom the work was 
prepared'' for the purpose of authorship in any copyrightable work under 
Section 201(b) of Title 17, United States Code. With respect thereto, 
the Contractor agrees not to assert or authorize others to assert any 
rights nor establish any claim under the design patent or copyright 
laws. The Contractor for a period of three years after completion of the 
project agrees to furnish all retained works on the request of the 
Contracting Officer. Unless otherwise provided in this contract, the 
Contractor shall have the right to retain copies of works beyond such 
period.

                             (End of clause)



552.228-5  Government as Additional Insured.

    As prescribed in 528.310, insert the following clause:

               Government as Additional Insured (JAN 2016)

    (a) This clause supplements the requirements set forth in FAR clause 
52.228-5, Insurance--Work on a Government Installation.
    (b) Each insurance policy required under this contract, other than 
workers' compensation insurance, shall contain an endorsement naming the 
United States as an additional insured with respect to operations 
performed under this contract. The insurance carrier is required to 
waive all subrogation rights against any of the named insured.

                             (End of clause)

[74 FR 17099, Apr. 14, 2009, as amended at 81 FR 1533, Jan. 13, 2016]



552.229-70  Federal, State, and Local Taxes.

    As prescribed in 529.401-70, insert the following clause:

               Federal, State, and Local Taxes (APR 1984)

    The contract price includes all applicable Federal, State, and local 
taxes. No adjustment will be made to cover taxes which may subsequently 
be imposed on this transaction or changes in the rates of currently 
applicable taxes. However, the Government will, upon the request of the 
Contractor, furnish evidence appropriate to establish exemption from any 
tax from which the Government is exempt and which was not included in 
the contract price.

                             (End of clause)



552.229-71  Federal Excise Tax--DC Government.

    As prescribed in 529.401-71, insert the following clause:

              Federal Excise Tax--DC Government (SEP 1999)

    If the District of Columbia cites an Internal Revenue Tax Exempt 
Certificate Number on orders placed under this contract, the Contractor 
shall bill shipments to the District of Columbia at prices exclusive of 
Federal excise tax and show the amount of such tax on the invoice.

                             (End of clause)



552.232-1  Payments.

    As prescribed in 532.908(a), insert the following clause:

[[Page 226]]

              Payments (NOV 2009) (Deviation FAR 52.232-1)

    (a) The Government shall pay the Contractor, without submission of 
invoices or vouchers, 30 days after the service period, the prices 
stipulated in this contract for supplies delivered and accepted or 
services rendered and accepted, less any deductions provided in this 
contract.
    (b) Unless otherwise specified in this contract, the Government will 
make payment on partial deliveries accepted by the Government if either:
    (1) The amount due on the deliveries warrants it.
    (2) The Contractor requests it and the amount due on the deliveries 
is at least $1,000 or 50 percent of the total contract price.
    (c) When processing payment, GSA's Finance Office will automatically 
generate the 12 digit invoice number using the PDN assigned to the 
contract, followed by an abbreviated month and year of service (e.g., 
84261554JUN7, for June 2007). The PDN appears on the contract award 
document.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 74 FR 54918, Oct. 26, 2009; 81 
FR 1533, Jan. 13, 2016]



552.232-23  Assignment of Claims.

    As prescribed in 532.806, insert the following clause:

                     Assignment of Claims (SEP 1999)

    Because this is a requirements or indefinite quantity contract under 
which more than one agency may place orders, paragraph (a) of the 
Assignment of Claims clause (FAR 52.232-23) is inapplicable and the 
following is substituted therefor:
    In order to prevent confusion and delay in making payment, the 
Contractor shall not assign any claim(s) for amounts due or to become 
due under this contract. However, the Contractor is permitted to assign 
separately to a bank, trust company, or other financial institution, 
including any Federal lending agency, under the provisions of the 
Assignment of Claims Act, as amended, 31 U.S.C. 3727, 41 U.S.C. 15 
(hereinafter referred to as ``the Act''), all amounts due or to become 
due under any order amounting to $1,000 or more issued by any Government 
agency under this contract. Any such assignment takes effect only if and 
when the assignee files written notice of the assignment together with a 
true copy of the instrument of assignment with the contracting officer 
issuing the order and the finance office designated in the order to make 
payment. Unless otherwise stated in the order, payments to an assignee 
of any amounts due or to become due under any order assigned may, to the 
extent specified in the Act, be subject to reduction or set-off.

                             (End of clause)



552.232-25  Prompt Payment.

    As prescribed in 532.908(c)(2), insert the following clause:

           Prompt Payment (NOV 2009) (Deviation FAR 52.232-25)

    Notwithstanding any other payment clause in this contract, the 
Government will make invoice payments and contract financing payments 
under the terms and conditions specified in this clause. Payment shall 
be considered as being made on the day a check is dated or the date of 
an electronic funds transfer. Definitions of pertinent terms are set 
forth in section 32.902 of the Federal Acquisition Regulation. All days 
referred to in this clause are calendar days, unless otherwise 
specified. (However, see subparagraph (a)(4) of this clause concerning 
payments due on Saturdays, Sundays, and legal holidays.)
    (a) Invoice payments. (1) The due date for making invoice payments 
by the designated payment office is:
    (i) For orders placed electronically by the General Services 
Administration (GSA) Federal Acquisition Service (FAS), and to be paid 
by GSA through electronic funds transfer (EFT), the later of the 
following two events:
    (A) The 10th day after the designated billing office receives a 
proper invoice from the Contractor. If the designated billing office 
fails to annotate the invoice with the date of receipt at the time of 
receipt, the invoice payment due date shall be the 10th day after the 
date of the Contractor's invoice; provided the Contractor submitted a 
proper invoice and no disagreement exists over quantity, quality, or 
Contractor compliance with contract requirements.
    (B) The 10th day after Government acceptance of supplies delivered 
or services performed by the Contractor.
    (ii) For all other orders, the later of the following two events:
    (A) The 30th day after the designated billing office receives a 
proper invoice from the Contractor. If the designated billing office 
fails to annotate the invoice with the date of receipt at the time of 
receipt, the invoice payment due date shall be the 30th day after the 
date ofthe Contractor's invoice; provided the Contractor submitted a 
proper invoice and no disagreement exists over quantity, quality, or 
Contractor compliance with contract requirements.
    (B) The 30th day after Government acceptance of supplies delivered 
or services performed by the Contractor.

[[Page 227]]

    (iii) On a final invoice, if the payment amount is subject to 
contract settlement actions, acceptance occurs on the effective date of 
the contract settlement.
    (2) The General Services Administration will issue payment on the 
due date in (a)(1)(i) above if the Contractor complies with full cycle 
electronic commerce. Full cycle electronic commerce includes all the 
following elements:
    (i) The Contractor must receive and fulfill electronic data 
interchange (EDI) purchase orders (transaction set 850).
    (ii) The Contractor must generate and submit to the Government valid 
EDI invoices (transaction set 810) or submit invoices through the GSA 
Finance Center Internet-based invoice process. Internet-based invoices 
must be submitted using procedures provided by GSA.
    (iii) The Contractor's financial institution must receive and 
process, on behalf of the Contractor, EFT payments through the Automated 
Clearing House (ACH) system.
    (iv) The EDI transaction sets in (i) through (iii) above must adhere 
to implementation conventions provided by GSA.
    (3) If any of the conditions in(a)(2) above do not occur, the 10 day 
payment due dates in (a)(1) become 30 day payment due dates.
    (4) Certain food products and other payments. (i) Due dates on 
Contractor invoices for meat, meat food products, or fish; perishable 
agricultural commodities; and dairy products, edible fats or oils, and 
food products prepared from edible fats or oils are--
    (A) For meat or meat food products, as defined in section 2(a)(3) of 
the Packers and Stockyard Act of 1921 (7 U.S.C. 182 (3)), and as further 
defined in Pub. L. 98-181, including any edible fresh or frozen poultry 
meat, any perishable poultry meat food product, fresh eggs, an any 
perishable egg product, as close as possible to, but not later than, the 
7th day after product delivery.
    (B) For fresh or frozen fish, as defined in section 204(3) of the 
Fish and Seafood Promotion Act of 1986 (16 U.S.C. 4003(3)), as close as 
possible to, but not later than, the 7th day after product delivery.
    (C) For perishable agricultural commodities, as defined in section 
1(4) of the Perishable Agricultural Commodities Act of 1930 (7 U.S.C. 
499a(4)), as close as possible to, but not later than, the 10th day 
after product delivery, unless another date is specified in the 
contract.
    (D) For daily products, as defined in section 111(e) of the Dairy 
Production Stabilization Act of 1983 (7 U.S.C. 4502(e)), edible fats or 
oils, and food products prepared from edible fats or oils, as close as 
possible to, but not later than, the 10th day after the date on which a 
proper invoice has been received. Liquid milk, cheese, certain processed 
cheese products, butter, yogurt, ice cream, mayonnaise, salad dressing, 
and other similar products, fall within this classification. Nothing in 
the Act limits this classification to refrigerated products. When 
questions arise regarding the proper classification of a specific 
product, prevailing industry practices will be followed in specifying a 
contract payment due date. The burden of proof that a classification of 
a specific product is, in fact, prevailing industry practice is upon the 
Contractor making the representation.
    (ii) If the contract does not require submission of an invoice for 
payment (e.g., periodic lease payments), the due date will be as 
specified in the contract.
    (5) Contractor's invoice. The Contractor shall prepare and submit 
invoices to the designated billing office specified in the contract. 
Notwithstanding paragraph (g) of the clause at FAR 52.212-4, Contract 
Terms and Conditions--Commercial Items, if the Contractor submits hard-
copy invoices, submit only an original invoice. No copies of the invoice 
are required. A proper invoice must include the items listed in 
subdivisions (a)(5)(i) through (a)(5)(viii) of this clause. If the 
invoice does not comply with these requirements, it shall be returned 
within 7 days after the date the designated billing office received the 
invoice (3 days for meat, meat food products, or fish; 5 days for 
perishable agricultural commodities, edible fats or oils, and food 
products prepared from edible fats or oils), with a statement of the 
reasons why it is not a proper invoice. Untimely notification will be 
taken into account in computing any interest penalty owed the Contractor 
in the manner described in subparagraph (a)(5) of this clause.
    (i) Name and address of the Contractor.
    (ii) Invoice date. (The Contractor is encouraged to date invoices as 
close as possible to the date of the mailing or transmission.)
    (iii) Contract number or other authorization for supplies delivered 
or services preformed (including order number and contract line item 
number).
    (iv) Description, quantity, unit of measure, unit price, an extended 
prices of supplies delivered or services performed.
    (v) Shipping and payment terms (e.g., shipment number and date of 
shipment, prompt payment discount terms). Bill of lading number and 
weight of shipment will be shown for shipments on Government bills or 
lading.
    (vi) Name and address of Contractor official to whom payment is to 
be sent (must be the same as that in the contract or in a proper notice 
of assignment).
    (vii) Name (where practicable), title, phone number, and mailing 
address of person to be notified in the event of a defective invoice.
    (viii) Any other information or documentation required by the 
contract (such as evidence of shipment).
    (ix) While not required, the Contractor is strongly encouraged to 
assign an identification number to each invoice.

[[Page 228]]

    (6) Interest penalty. An interest penalty shall be paid 
automatically by the designated payment office, without request from the 
Contractor, if payment is not made by the due date and the conditions 
listed in subdivisions (a)(6)(i) through (a)(6)(iii) of this clause are 
met, if applicable. However, when the due date falls on a Saturday, 
Sunday, or legal holiday when Federal Government offices are closed and 
Government business is not expected to be conducted, payment may be made 
on the following business day without incurring a late payment interest 
penalty.
    (i) A proper invoice was received by the designated billing office.
    (ii) A receiving report or other Government documentation 
authorizing payment was processed, and there was no disagreement over 
quantity, quality, or Contractor compliance with any contract term or 
condition.
    (iii) In the case of a final invoice for any balance of funds due 
the Contractor for supplies delivered or services performed, the amount 
was not subject to further contract settlement actions between the 
Government and the Contractor.
    (7) Computing penalty amount. The interest penalty shall be at the 
rate established by the Secretary of the Treasury under section 12 of 
the Contract Disputes Act of 1978 (41 U.S.C. 611) that is in effect on 
the day after the due date, except where the interest penalty is 
prescribed by other governmental authority (e.g., tariffs). This rate is 
referred to as the ``Renegotiation Board Interest Rate,'' and it is 
published in the Federal Register semiannually on or about January 1 and 
July 1. The interest penalty shall accrue daily on the invoice principal 
payment amount approved by the Government until the payment date of such 
approved principal amount; and will be compounded in 30-day increments 
inclusive from the first day after the due date through the payment 
date. That is, interest accrued at the end of any 30-day period will be 
added to the approved invoice principal payment amount and will be 
subject to interest penalties if not paid in the succeeding 30-day 
period. If the designated billing office failed to notify the Contractor 
of a defective invoice within the periods prescribed in subparagraph 
(a)(5) of this clause, the due date on the corrected invoice will be 
adjusted by subtracting from such date the number of days taken beyond 
the prescribed notification of defects period. Any interest penalty owed 
the Contractor will be based on this adjusted due date. Adjustments will 
be made by the designated payment office for errors in calculating 
interest penalties.
    (i) For the sole purpose of computing an interest penalty that might 
be due the Contractor, Government acceptance shall be deemed to have 
occurred constructively on the 7th day (unless otherwise specified in 
this contract) after the Contractor delivered the supplies or performed 
the services in accordance with the terms and conditions of the 
contract, unless there is a disagreement over quantity, quality or 
Contractor compliance with a contract provision. In the event that 
actual acceptance occurs within the constructive acceptance period, the 
determination of an interest penalty shall be based on the actual date 
of acceptance. The constructive acceptance requirement does, not 
however, compel Government officials to accept supplies or services, 
perform contract administration functions, or make payment prior to 
fulfilling their responsibilities.
    (ii) The following periods of time will not be included in the 
determination of an interest penalty:
    (A) The period taken to notify the Contractor of defects in invoices 
submitted to the Government, but this may not exceed 7 days (3 days for 
meat, meat food products, or fish; 5 days for perishable agricultural 
commodities, dairy products, edible fats or oils, and food products 
prepared from edible fats or oils).
    (B) The period between the defects notice and resubmission of the 
corrected invoice by the Contractor.
    (C) For incorrect electronic funds transfer (EFT) information, in 
accordance with the EFT clause of this contract.
    (iii) Interest penalties will not continue to accrue after the 
filing of a claim for such penalties under the clause at 52.233-1, 
Disputes, or for more than 1 year. Interest penalties of less than $1 
need not be paid.
    (iv) Interest penalties are not required on payment delays due to 
disagreement between the Government and the Contractor over the payment 
amount or other issues involving contract compliance or on amounts 
temporarily withheld or retained in accordance with the terms of the 
contract. Claims involving disputes, and any interest that may be 
payable, will be resolved in accordance with the clause at 52.233-1, 
Disputes.
    (8) Prompt payment discounts. An interest penalty also shall be paid 
automatically by the designated payment office, without request from the 
Contractor, if a discount for prompt payment is taken improperly. The 
interest penalty will be calculated as described in subparagraph (a)(7) 
of this clause on the amount of discount taken for the period beginning 
with the first day after the end of the discount period through the date 
when the Contractor is paid.
    (9) Additional interest penalty. (i) If this contract was awarded on 
or October 1, 1989, a penalty amount, calculated in accordance with 
subdivision (a)(9)(iii) of this clause, shall be paid in addition to the 
interest penalty amount if the Contractor--
    (A) Is owed an interest penalty of $1 or more;

[[Page 229]]

    (B) Is not paid the interest penalty within 10 days after the date 
the invoice amount is paid; and
    (C) Makes a written demand to the designated payment office for 
additional penalty payment, in accordance with subdivision (a)(9)(ii) of 
this clause, postmarked not later than 40 days after the invoice amount 
is paid.
    (ii)(A) Contractors shall support written demands for additional 
penalty payments with the following data. No additional data shall be 
required. Contractors shall--
    (1) Specifically assert that late payment interest is due under a 
specific invoice, and request payment of all overdue late payment 
interest penalty and such additional penalty as may be required;
    (2) Attach a copy of the invoice on which the unpaid late payment 
interest was due; and
    (3) State that payment of the principal has been received, including 
the date of receipt.
    (B) Demands must be postmarked on or before the 40th day after 
payment was made, except that--
    (1) If the postmark is illegible or nonexistent, the demand must 
have been received and annotated with the date of receipt by the 
designated payment office on or before the 40th day after payment was 
made; or
    (2) If the postmark is illegible or nonexistent and the designated 
payment office fails to make the required annotation, the demand's 
validity will be determined by the date the Contractor has placed on the 
demand; provided such date is no later than the 40th day after payment 
was made.
    (iii)(A) The additional penalty shall be equal to 100 percent of any 
original late payment interest penalty, except--
    (1) The additional penalty shall not exceed $5,000;
    (2) The additional penalty shall never be less than $25; and
    (3) No additional penalty is owed if the amount of the underlying 
interest penalty is less than $1.
    (B) If the interest penalty ceases to accrue in accordance with the 
limits stated in subdivision (a)(5)(iii) of this clause, the amount of 
the additional penalty shall be calculated on the amount of interest 
penalty that would have accrued in the absence of these limits, subject 
to the overall limits on the additional penalty specified in subdivision 
(a)(7)(iii)(A) of this clause.
    (C) For determining the maximum and minimum additional penalties, 
the test shall be the interest penalty due on each separate payment made 
for each separate contract. The maximum and minimum additional penalty 
shall not be based upon individual invoices unless the invoices are paid 
separately. Where payments are consolidated for disbursing purposes, the 
maximum and minimum additional penalty determination shall be made 
separately for each contract therein.
    (D) The additional penalty does not apply to payments regulated by 
other Government regulations (e.g., payments under utility contracts 
subject to tariffs and regulation).
    (b) Contract financing payments--(1) Due dates for recurring 
financing payments. If this contract provides for contract financing, 
requests for payment shall be submitted to the designated billing office 
as specified in this contract or as directed by the Contracting Officer. 
Contract financing payments shall be made on the [insert day as 
prescribed by Agency head; if not prescribed, insert 30th day] day after 
receipt of a proper contract financing request by the designated billing 
office. In the event that an audit or other review of a specific 
financing request is required to ensure compliance with the terms and 
conditions of the contract, the designated payment office is not 
compelled to make payment by the due date specified.
    (2) Due dates for other contract financing. For advance payments, 
loans, or other arrangements that do not involve recurring submissions 
of contract financing requests, payment shall be in accordance with the 
corresponding contract terms or as directed by the Contracting Officer.
    (3) Interest penalty not applicable. Contract financing payments 
shall not be assessed an interest penalty for payment delays.
    (c) Fast payment procedure due dates. If this contract contains the 
clause at 52.213-1, Fast Payment Procedure, payments will be made within 
15 days after the date of receipt of the invoice.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 74 FR 54918, Oct. 26, 2009]



552.232-72  Final Payment Under Building Services Contracts.

    As prescribed in 532.904(c), insert the following clause:

       Final Payment Under Building Services Contracts (MAR 2012)

    Before final payment is made, the Contractor shall complete and 
furnish the Contracting Officer with GSA Form 1142, Release of Claims, 
releasing all claims against the Government relating to this contract, 
other than claims in stated amounts that are specifically excepted by 
the Contractor from the release. If the Contractor's claim to amounts 
payable under the contract has been assigned under the Assignment of 
Claims Act of 1940, as amended (31 U.S.C. 3727, 41 U.S.C. 15), a release 
may also be required of the assignee.

[77 FR 6988, Feb. 10, 2012]

[[Page 230]]



552.232-77  Payment By Government Charge Card.

    As prescribed in 532.7003, insert the following clause:

              Payment By Government Charge Card (NOV 2009)

    (a) Definitions. ``Governmentwide commercial purchase card'' means a 
uniquely numbered charge card issued by a contractor under the GSA 
SmartPay  program contract for Fleet, Travel, and Purchase 
Card Services to named individual Government employees or entities to 
pay for official Government purchases.
    ``Oral order'' means an order placed orally either in person or by 
telephone.
    (b) At the option of the Government and if agreeable to the 
Contractor, payments of ___*-- or less for oral or written orders may be 
made using the Governmentwide commercial purchase card.
    (c) The Contractor shall not process a transaction for payment using 
the charge card until the purchased supplies have been shipped or 
services performed. Unless the cardholder requests correction or 
replacement of a defective or faulty item under other contract 
requirements, the Contractor must immediately credit a cardholder's 
account for items returned as defective or faulty.
    (d) Payments made using the Governmentwide commercial purchase card 
are not eligible for any negotiated prompt payment discount. Payment 
made using a Government debit card will receive the applicable prompt 
payment discount.

                             (End of clause)

    * Enter amount not to exceed $100,000.

[65 FR 11248, Mar. 2, 2000, as amended at 74 FR 54918, Oct. 26, 2009]



552.236-70  Definitions.

    As prescribed in 536.570-1, insert the following clause:

                         Definitions (APR 1984)

    The terms ``Administration'' and ``Service'' as used in this 
contract shall mean the General Services Administration (GSA) and the 
Public Buildings Service (PBS), respectively.

                             (End of clause)



552.236-71  Authorities and Limitations.

    As prescribed in 536.570-2, insert the following clause:

                 Authorities and Limitations (APR 1984)

    (a) All work shall be performed under the general direction of the 
Contracting Officer, who alone shall have the power to bind the 
Government and to exercise the rights, responsibilities, authorities and 
functions vested in him by the contract documents, except that he shall 
have the right to designate authorized representatives to act for him. 
Wherever any provision in this contract specifies an individual (such 
as, but not limited to, Construction Engineer, Resident Engineer, 
Inspector or Custodian) or organization, whether governmental or 
private, to perform any act on behalf of or in the interests of the 
Government, that individual or organization shall be deemed to be the 
Contracting Officer's authorized representative under this contract but 
only to the extent so specified. The Contracting Officer may, at any 
time during the performance of this contract, vest in any such 
authorized representatives additional power and authority to act for him 
or designate additional representatives, specifying the extent of their 
authority to act for him; a copy of each document vesting additional 
authority in an authorized representative or designating an additional 
authorized representative shall be furnished to the Contractor.
    (b) The Contractor shall perform the contract in accordance with any 
order (including but not limited to instruction, direction, 
interpretation, or determination) issued by an authorized representative 
in accordance with his authority to act for the Contracting Officer; but 
the Contractor assumes all the risk and consequences of performing the 
contract in accordance with any order (including but not limited to 
instruction, direction, interpretation, or determination) of anyone not 
authorized to issue such order.

                             (End of clause)



552.236-72  [Reserved]



552.236-73  Basis of Award--Construction Contract.

    As prescribed in 536.570-4, insert the following provision or the 
appropriate Alternate:

            Basis of Award--Construction Contract (APR 1985)

    (a) The low bidder for purposes of award is the responsible bidder 
offering the lowest price for the base bid (consisting of the lump sum 
bid and any associated unit price bids extended by the applicable number 
of units shown on the bid form). See Standard Form 1442, Solicitation, 
Offer, and Award and the provision entitled ``Contract Award--Sealed 
Bidding.''

[[Page 231]]

    (b) A bid may be rejected as nonresponsive if the bid is materially 
unbalanced as to bid prices. A bid is unbalanced when the bid is based 
on prices significantly less than cost for some work and significantly 
overstated for other work.

                           (End of provision)

    Alternate I (APR 1985). if the solicitation includes a base bid and 
options, the Contracting Officer shall delete paragraph (a) of the basic 
provision and insert paragraph (a) substantially as follows:

    (a) The low bidder for purposes of award is the responsible bidder 
offering the lowest aggregate price for (1) the base bid (consisting of 
the lump sum bid and any associated unit price bids extended by the 
applicable number of units shown on the bid form) plus (2) all options 
designated to be evaluated. The evaluation of options will not obligate 
the Government to exercise the options. See Standard Form 1442, 
Solicitation, Offer, and Award and the provision entitled ``Contract 
Award--Sealed Bidding.''

    Alternate II (APR 1985). If the solicitation includes a base bid and 
alternates, the Contracting Officer shall delete paragraph (a) of the 
basic provision and insert paragraphs (a), (c), and (d) substantially as 
follows:

    (a) The low bidder for purposes of award is the responsible bidder 
offering the lowest aggregate price for (1) the base bid (consisting of 
the lump sum bid and any associated unit price bids extended by the 
applicable number of units shown on the bid form) plus (2) those 
alternates in the order of priority listed in the solicitation that 
provide the most features of work within the funds available at bid 
opening. See the provision entitled ``Contract Award--Sealed Bidding.''
    (c) Alternates will be added to the base bid in the order listed in 
the solicitation (see Standard Form 1442, Solicitation, Offer, and 
Award). If the addition of an alternate would make all bids exceed the 
funds available at bid opening, that alternate shall be skipped and the 
next subsequent alternate in a lower amount shall be added, provided 
that the aggregate of base bid and the selected alternates do not exceed 
the funds available at bid opening. For example, when the amount 
available is $100,000 and a bidder's base bid is $85,000, with its 
separate bids on four successive alternatives being $10,000, $8,000, 
$6,000, and $4,000, the aggregate amount of the bid for purposes of 
selecting the alternates would be $99,000 (base bid plus the first and 
four alternates). The second and third alternates are skipped because 
each of them would cause the aggregate of the base bid and alternates to 
exceed the $100,000 amount available when considered with the first 
alternate. All bids shall be evaluated on the basis of the same 
alternates.
    (d) After the low bidder has been determined in accordance with 
paragraph (a), an award may be made to that low bidder on the base bid, 
plus any combination of alternates for which funds are available at the 
time of award, but only if the award amount does not exceed the amount 
offered by any other responsible bidder. If the base bid plus the 
proposed combination of alternates exceed the amount offered by any 
other responsible bidder for the same combination of alternates, the 
award cannot be made on that combination of alternates.

    Alternate III (APR 1985). If the solicitation includes a base bid, 
alternates, and options, the Contracting Officer shall delete paragraph 
(a) of the basic provision and insert paragraphs (a), (c), and (d) 
substantially as follows:

    (a) The low bidder for purposes of award is the responsible bidder 
offering the lowest aggregate price for (1) the base bid (consisting of 
the lump sum bid and any associated unit price bids extended by the 
applicable number of units shown on the bid form) plus (2) those 
alternates in the order of priority listed in the solicitation that 
provide the most features of work within the funds available at bid 
opening plus (3) all options designated to be evaluated except those 
options associated with alternates which are skipped during the 
selection process outlined in paragraph (c) below. The evaluation of 
options will not obligate the Government to exercise the options. See 
the provision entitled ``Contract Award--Sealed Bidding.''
    (c) Alternates will be added to the base bid in the order listed in 
the solicitation (see Standard Form 1442, Solicitation, Offer, or 
Award). If the addition of an alternate would make all bids exceed the 
funds available at bid opening, that alternate shall be skipped and the 
next subsequent alternate in a lower amount shall be added, provided 
that the aggregate of base bid and the selected alternates do not exceed 
the funds available at bid opening. For example, when the amount 
available is $100,000 and a bidder's base bid is $85,000, with its 
separate bids on four successive alternates being $10,000, $8,000, 
$6,000, and $4,000, the aggregate amount of the bid for purposes of 
selecting the alternates would be $99,000 (base bid plus the first and 
fourth alternates). The second and third alternates are skipped because 
each of them would cause the aggregate of the base bid and alternates to 
exceed the $100,000 amount available when considered with the first 
alternate. All bids shall be evaluated on the basis of the same 
alternates.

[[Page 232]]

    (d) After the low bidder has been determined in accordance with 
paragraph (a), award may be made to that low bidder on the base bid and 
evaluated options plus any combination of alternates for which funds are 
available at the time of award, but only if that low bidder is still low 
on the sum thereof plus any previously unevaluated options designated to 
be evaluated which are associated with proposed alternates that were 
skipped during the selection under paragraph (c). If that low bidder is 
not still low, award cannot be made on the proposed combination of 
alternates.



552.236-74--552.236-76  [Reserved]



552.236-77  Specifications and Drawings

    As prescribed in 536.570-8, insert the following clause:

                 Specifications and Drawings (SEP 1999)

    The requirements of the clause entitled ``Specifications and 
Drawings for Construction'' at FAR 52.236-21, are supplemented as 
follows:
    (a) In case of difference between small and large-scale drawings, 
the large-scale drawings shall govern. Schedules on any contract drawing 
shall take precedence over conflicting information on that or any other 
contract drawing. On any of the drawings where a portion of the work is 
detailed or drawn out and the remainder is shown in outline, the parts 
detailed or drawn out shall apply also to all other like portions of the 
work.
    (b) Where the word ``similar'' occurs on the drawings, it shall have 
a general meaning and not be interpreted as being identical, and all 
details shall be worked out in relation to their location and their 
connection with other parts of the work.
    (c) Standard Details or Specification Drawings are applicable when 
listed, bound with the specifications, noted on the drawings or 
referenced elsewhere in the specifications. Where the notes on the 
drawings indicate modifications, such modifications shall govern.
    (d) In case of difference between Standard Details or Specification 
Drawings and the specifications, the specifications will govern. In case 
of difference between the Standard Details or Specification Drawings and 
their drawings prepared specifically for this contract, the later shall 
govern.

                             (End of clause)



552.236-78  Shop Drawings, Coordination Drawings, and Schedules.

    As prescribed in 536.570-9, insert the following clause:

     Shop Drawings, Coordination Drawings, and Schedules (SEP 1999)

    The requirements, of the clause entitled ``Specifications and 
Drawings for Construction'' at FAR 52.236-21, are supplemented as 
follows:
    (a) The Contractor shall submit shop drawings, coordination 
drawings, and schedules for approval as required by the specifications 
or requested by the Contracting Officer as follows:
    (b) Show drawings shall include fabrication, erection and setting 
drawings, schedule drawings, manufacturers' scale drawings, wriring and 
control diagrams, cuts or entire catalogs, pamphlets, descriptive 
literature, and performance and test data.
    (c) Drawings and schedules, other than catalogs, pamphlets and 
similar printed material, shall be submitted in reproducible form with 
two prints made by a process approved by the Contracting Officer. Upon 
approval, the reproducible form will be returned to the Contractor who 
shall then furnish the number of additional prints, not to exceed 10, 
required by the specifications. The Contractor shall submit shop 
drawings in catalog, pamphlet and similar printed form in a minimum of 
four copies plus as many additional copies as the Contractor may desire 
or need for his use or use by subcontractors.
    (d) Before submitting shop drawings on the mechanical and electrical 
work, the Contractor shall submit and obtain the Contracting Officer's 
approval of such lists of mechanical and electrical equipment and 
materials as may be required by the specifications.
    (e) Each shop drawing or coordination drawing shall have a blank 
area 5 by 5 inches, located adjacent to the title block. The title block 
shall display the following:

Number and title of drawing
Date of drawing or revision
Name of project building or facility
Name of Contractor and (if appropriate) name of subcontractor submitting 
drawing
Clear identify of contents and location on the work
Project title and contract number

    (f) Unless otherwise provided in this contract, or otherwise 
directed by the Contracting Officer, shop drawings, coordination 
drawings and schedules shall be submitted to the Contracting Officer, 
with a letter in triplicate, sufficiently in advance of construction 
requirements to permit no less than 10 working days for checking and 
appropriate action.
    (g) Approval of drawings and schedules will be general and shall not 
be construed as permitting any departure from the contract requirements, 
or as approving departures from full-size details furnished by the 
Contracting Officer.

[[Page 233]]

                             (End of clause)



552.236-79--552.236-80  [Reserved]



552.236-81  Use of Equipment by the Government.

    As prescribed in 536.570-12, insert the following clause:

              Use of Equipment by the Government (APR 1984)

    (a) The Government may take over and operate, with Government 
employees, such equipment as is necessary for heating or cooling such 
areas of the building as require the service, as soon as the 
installation is sufficiently complete.
    (b) The Contracting Officer will advise the Contractor by letter, 
prior to the use of equipment, which items of equipment will be 
operated, and the date and time such operation will begin.
    (c) Government operation of equipment will not relieve the 
Contractor of the one-year guarantee on materials and workmanship 
elsewhere provided for in this contract.
    (d) The guarantee period, elsewhere provided for in this contact, 
for each piece of equipment shall be in accordance with the 
``Guarantees'' clause of this contract.

                             (End of clause)



552.236-82  Subcontracts.

    As prescribed in 536.570-13, insert the following clause:

                         Subcontracts (APR 1984)

    (a) Nothing contained in the contract shall be construed as creating 
any contractual relationship between any subcontractor and the 
Government. The divisions or sections of the specifications are not 
intended to control the Contractor in dividing the work among 
subcontractors, or to limit the work performed by any trade.
    (b) The Contractor shall be responsible to the Government for acts 
and omissions of his own employees and of subcontractors and their 
employees. He shall also be responsible for the coordination of the work 
of the trades, subcontractors and suppliers.
    (c) The Government will not undertake to settle any differences 
between or among the Contractor, subcontractors, or suppliers.

                             (End of clause)



552.237-70  [Reserved]



552.237-71  Qualifications of Employees.

    As prescribed in 537.110(a), insert the following clause:

                 Qualifications of Employees (MAY 1989)

    (a) The contracting officer or a designated representative may 
require the Contractor to remove any employee(s) from GSA controlled 
buildings or other real property should it be determined that the 
individual(s) is either unsuitable for security reasons or otherwise 
unfit to work on GSA controlled property.
    (b) The Contractor shall fill out and cause all of its employees 
performing work on the contract work to fill out, for submission to the 
Government, such forms as may be necessary for security or other 
reasons. Upon request of the Contracting Officer, the Contractor and its 
employees shall be fingerprinted.
    (c) Each employee of the Contractor shall be a citizen of the United 
States of America, or an alien who has been lawfully admitted for 
permanent residence as evidenced by Alien Registration Receipt Card Form 
I-151, or, who presents other evidence from the Immigration and 
Naturalization Service that employment will not affect his immigration 
status.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 74 FR 20606, May 5, 2009]



552.237-72  Prohibition Regarding ``Quasi-Military Armed Forces.''

    As prescribed in 537.110(b), insert the following clause:

    Prohibition Regarding ``Quasi-Military Armed Forces'' (SEP 1999)

    The Contractor must not, during the term of this contract, offer for 
hire ``Quasi-Military Armed Forces'' within the meaning of the court 
decision in United States ex. rel. Weinberger v. Equifax, 557 F.2d 456 
(5th Cir. 1977).

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 74 FR 20606, May 5, 2009]



552.237-73  Restriction on Disclosure of Information.

    As prescribed in 537.270, insert the following clause:

           Restriction on Disclosure of Information (MAY 2009)

    (a) The Contractor shall, in the performance of this contract, keep 
all information contained in source documents or other media furnished 
by the Government in the strictest confidence. The Contractor shall

[[Page 234]]

not publish or otherwise divulge such information in whole or in part, 
in any manner or form, nor authorize or permit others to do so. The 
Contractor shall take such reasonable measures as are necessary to 
restrict access to such information, while in the Contractor's 
possession, to those employees needing such information to perform the 
work provided herein, i.e., on a ``need to know'' basis. The Contractor 
shall immediately notify, in writing, the Contracting Officer in the 
event that the Contractor determines or has reason to suspect a breach 
of this requirement.
    (b) The Contractor shall not disclose any information concerning the 
work under this contract to any persons or entity unless the Contractor 
obtains prior written approval from the Contracting Officer.
    (c) The Contractor shall insert the substance of this clause in any 
consultant agreement or subcontract under this contract.
    (d) Any unauthorized disclosure of information may result in 
termination of this contract for cause.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 74 FR 20606, May 5, 2009]



552.238-70  Identification of Electronic Office Equipment Providing
Accessibility for the Handicapped.

    As prescribed in 538.273(a)(1), insert the following clause:

 Identification of Electronic Office Equipment Providing Accessibility 
                     for the Handicapped (SEP 1991)

    (a) Definitions. ``Electronic office equipment accessiblity'' means 
the application/configuration of electronic office equipment (includes 
hardware, software and firmware) in a manner that accommodates the 
functional limitations of individuals with disabilities (i.e., 
handicapped individuals) so as to promote productivity and provide 
access to work related and/or public information resources.
    ``Handicapped individuals'' mean qualified individuals with 
impairments as cited in 29 CFR 1613.702(f) who can benefit from 
electronic office equipment accessibility.
    ``Special peripheral'' means a special needs aid that provides 
access to electronic equipment that is otherwise inaccessible to a 
handicapped individual.
    (b) The offeror is encouraged to identify in its offer, and include 
in any commercial catalogs and pricelists accepted by the Contracting 
Officer, office equipment, including any special peripheral, that will 
facilitate electronic office equipment accessibility for handicapped 
individuals. Identification should include the type of disability 
accommodated and how the users with that disability would be helped.

                             (End of clause)



552.238-71  Submission and Distribution of Authorized FSS Schedule
Pricelists.

    As prescribed in 538.273(a)(2), insert the following clause:

 Submission and Distribution of Authorized FSS Schedule Pricelists (JUL 
                                  2016)

    (a) Definition. For the purposes of this clause, the Mailing List is 
[Contracting officer shall insert either: ``the list of addressees 
provided to the Contractor by the Contracting Officer'' or ``the 
Contractor's listing of its ordering activity customers''].
    (b) The Contracting Officer will return one copy of the Authorize 
FSS Schedule Pricelist to the Contractor with the notification of 
contract award.
    (c)(1) The Contractor shall provide to the GSA Contracting Officer:
    (i) Two paper copies of Authorized FSS Schedule Pricelist; and
    (ii) The Authorized FSS Schedule Pricelist on a common-use 
electronic medium.
    The Contracting Officer will provide detailed instructions for the 
electronic submission with the award notification. Some structured data 
entry in a prescribed format may be required.
    (2) The Contractor shall provide to each addressee on the mailing 
list either:
    (i) One paper copy of the Authorized FSS Schedule Price List; or
    (ii) A self-addressed, postage-paid envelope or postcard to be 
returned by addressee that want to receive a paper copy of the 
pricelist. The Contractor shall distribute price lists within 20 
calendar days after receipt of returned requests.
    (3) The Contractor shall advise each addressee of the availability 
of pricelist information through the on-line Multiple Award Schedule 
electronic data base.
    (d) The Contractor shall make all of the distributions required in 
paragraph (c) at least 15 calendar days before the beginning of the 
contract period, or within 30 calendar days after receipt of the 
Contracting Officer's approval for printing, whichever is later.
    (e) During the period of the contract, the Contractor shall provide 
one copy of its Authorized FSS Schedule Pricelist to any authorized 
schedule user, upon request. Use of the mailing list for any other 
purpose is not authorized.

[[Page 235]]

                             (End of clause)

    (a) Definition. For the purposes of this clause, the Mailing List is 
[Contracting officer shall insert either: ``the list of addressees 
provided to the Contractor by the Contracting Officer'' or ``the 
Contractor's listing of its ordering activity customers''].

[64 FR 37229, July 9, 1999, as amended at 68 FR 24381, May 7, 2003, as 
amended at 81 FR 36430, June 6, 2016]



552.238-72  Identification of Products That Have Environmental Attributes.

    As prescribed in 538.273(a)(3), insert the following clause:

Identification of Products That Have Environmental Attributes (SEP 2003)

    (a) Several laws, Executive orders, and Agency directives require 
Federal buyers to purchase products that are less harmful to the 
environment, when they are life cycle cost-effective (see FAR Subpart 
23.7). The U.S. General Services Administration (GSA) requires 
contractors to highlight environmental products under Federal Supply 
Service schedule contracts in various communications media (e.g., 
publications and electronic formats).
    (b) Definitions. As used in this clause--
    Energy-efficient product means a product that--
    (1) Meets Department of Energy and Environmental Protection Agency 
criteria for use of the ENERGY STAR  trademark label; or
    (2) Is in the upper 25 percent of efficiency for all similar 
products as designated by the Department of Energy's Federal Energy 
Management Program.
    GSA Advantage! is an on-line shopping mall and ordering system that 
provides customers with access to products and services under GSA 
contracts.
    Other environmental attributes refers to product characteristics 
that provide environmental benefits, excluding recovered materials and 
energy and water efficiency. Several examples of these characteristics 
are biodegradable, recyclable, reduced pollutants, ozone safe, and low 
volatile organic compounds (VOCs).
    Post-consumer material means a material or finished product that has 
served its intended use and has been discarded for disposal or recovery, 
having completed its life as a consumer item. Post-consumer material is 
part of the broader category of ``recovered material.'' The 
Environmental Protection Agency (EPA) has developed a list of EPA-
designated products in their Comprehensive Procurement Guidelines (CPGs) 
to provide Federal agencies with purchasing recommendations on specific 
products in a Recovered Materials Advisory Notice (RMAN). The RMAN 
contains recommended recovered and post-consumer material content levels 
for the specific products designated by EPA (40 CFR part 247 and http://
www.epa.gov/cpg/).
    Recovered materials means waste materials and by-products recovered 
or diverted from solid waste, but the term does not include those 
materials and by-products generated from, and commonly reused within, an 
original manufacturing process (Executive Order 13101 and 42 U.S.C. 
6903(19) and http://www.epa.gov/cpg/). For paper and paper products, see 
the definition at FAR 11.301 (42 U.S.C. 6962(h)).
    Remanufactured means factory rebuilt to original specifications.
    Renewable energy means energy produced by solar, wind, geothermal, 
and biomass power.
    Renewable energy technology means--
    (1) Technologies that use renewable energy to provide light, heat, 
cooling, or mechanical or electrical energy for use in facilities or 
other activities; or
    (2) The use of integrated whole-building designs that rely upon 
renewable energy resources, including passive solar design.
    (c)(1) The offeror must identify products that--
    (i) Are compliant with the recovered and post-consumer material 
content levels recommended in the Recovered Materials Advisory Notices 
(RMANs) for EPA-designated products in the CPG program (http://
www.epa.gov/cpg/);
    (ii) Contain recovered materials that either do not meet the 
recommended levels in the RMANs or are not EPA-designated products in 
the CPG program (see FAR 23.401 and http://www.epa.gov/cpg/);
    (iii) Are energy-efficient, as defined by either ENERGY STAR 
 and/or FEMP's designated top 25th percentile levels (see 
ENERGY STAR  at http://www.energystar.gov/ and FEMP at 
http://www.eere.energy.gov/femp/procurement/);
    (iv) Are water-efficient;
    (v) Use renewable energy technology;
    (vi) Are remanufactured; and
    (vii) Have other environmental attributes.
    (2) These identifications must be made in each of the offeror's 
following mediums:
    (i) The offer itself.
    (ii) Printed commercial catalogs, brochures, and pricelists.
    (iii) Online product website.
    (iv) Electronic data submission for GSA Advantage! submitted via 
GSA's Schedules Input Program (SIP) software or the Electronic Data 
Inter-change (EDI). Offerors can use the SIP or EDI methods to indicate 
environmental and other attributes for each product that is translated 
into respective icons in GSA Advantage!.

[[Page 236]]

    (d) An offeror, in identifying an item with an environmental 
attribute, must possess evidence or rely on a reasonable basis to 
substantiate the claim (see 16 CFR part 260, Guides for the Use of 
Environmental Marketing Claims). The Government will accept an offeror's 
claim of an item's environmental attribute on the basis of--
    (1) Participation in a Federal agency-sponsored program (e.g., the 
EPA and DOE ENERGY STAR  product labeling program);
    (2) Verification by an independent organization that specializes in 
certifying such claims; or
    (3) Possession of competent and reliable evidence. For any test, 
analysis, research, study, or other evidence to be ``competent and 
reliable,'' it must have been conducted and evaluated in an objective 
manner by persons qualified to do so, using procedures generally 
accepted in the profession to yield accurate and reliable results.

                             (End of clause)

[68 FR 52128, Sept. 2, 2003]



552.238-73  Cancellation.

    As prescribed in 538.273(a)(4), insert the following clause:

                         Cancellation (SEP 1999)

    Either party may cancel this contract in whole or in part by 
providing written notice. The cancellation will take effect 30 calendar 
days after the other party receives the notice of cancellation. If the 
Contractor elects to cancel this contract, the Government will not 
reimburse the minimum guarantee.

                             (End of clause)



552.238-74  Industrial Funding Fee and Sales Reporting.

    As prescribed in 538.273(b)(1), insert the following clause:

          Industrial Funding Fee and Sales Reporting (JAN 2016)

    (a) Reporting of Federal Supply Schedule Sales. The Contractor shall 
report all contract sales under this contract as follows:
    (1) The Contractor shall accurately report the dollar value, in U.S. 
dollars and rounded to the nearest whole dollar, of all sales under this 
contract by calendar quarter (January 1-March 31, April 1-June 30, July 
1-September 30, and October 1-December 31). The dollar value of a sale 
is the price paid by the Schedule user for products and services on a 
Schedule task or delivery order. The reported contract sales value shall 
include the Industrial Funding Fee (IFF). The Contractor shall maintain 
a consistent accounting method of sales reporting, based on the 
Contractor's established commercial accounting practice. The acceptable 
points at which sales may be reported include--
    (i) Receipt of order;
    (ii) Shipment or delivery, as applicable;
    (iii) Issuance of an invoice; or
    (iv) Payment.
    (2) Contract sales shall be reported to FSS Federal Acquisition 
Services (FSS) within 30 calendar days following the completion of each 
reporting quarter. The Contractor shall continue to furnish quarterly 
reports, including ``zero'' sales, through physical completion of the 
last outstanding task order or delivery order of the contract.
    (3) Reportable sales under the contract are those resulting from 
sales of contract items to authorized users unless the purchase was 
conducted pursuant to a separate contracting authority such as a 
Governmentwide Acquisition Contract (GWAC); a separately awarded FAR 
Part 12, FAR Part 13, FAR Part 14, or FAR Part 15 procurement; or a non-
FAR contract. Sales made to state and local governments under 
Cooperative Purchasing authority shall be counted as reportable sales 
for IFF purposes.
    (4) The Contractor shall electronically report the quarterly dollar 
value of sales, including ``zero'' sales, by utilizing the automated 
reporting system at an Internet website designated by the General 
Services Administration (GSA)'s Federal Acquisition Service (FAS). Prior 
to using this automated system, the Contractor shall complete contract 
registration with the FAS Vendor Support Center (VSC). The website 
address, as well as registration instructions and reporting procedures, 
will be provided at the time of award. The Contractor shall report sales 
separately for each National Stock Number (NSN), Special Item Number 
(SIN), or sub-item.
    (5) The Contractor shall convert the total value of sales made in 
foreign currency to U.S. dollars using the ``Treasury Reporting Rates of 
Exchange'' issued by the U.S. Department of Treasury, Financial 
Management Service. The Contractor shall use the issue of the Treasury 
report in effect on the last day of the calendar quarter. The report is 
available from Financial Management Service, International Funds Branch, 
Telephone: (202) 874-7994, Internet: http://www.fiscal.treasury.gov/
fsreports/rpt/treasRptRateExch/treasRptRateExch_home.htm.
    (b) The Contractor shall remit the IFF at the rate set by GSA's FAS.
    (1) The Contractor shall remit the IFF to FAS in U.S. dollars within 
30 calendar days after the end of the reporting quarter; final payment 
shall be remitted within 30 days after physical completion of the last 
outstanding task order or delivery order of the contract.

[[Page 237]]

    (2) The IFF represents a percentage of the total quarterly sales 
reported. This percentage is set at the discretion of GSA's FAS. GSA's 
FAS has the unilateral right to change the percentage at any time, but 
not more than once per year. FAS will provide reasonable notice prior to 
the effective date of the change. The IFF reimburses FAS for the costs 
of operating the Federal Supply Schedules Program. FAS recoups its 
operating costs from ordering activities as set forth in 40 U.S.C. 321: 
Acquisition Services Fund. Net operating revenues generated by the IFF 
are also applied to fund initiatives benefitting other authorized FAS 
programs, in accordance with 40 U.S.C. 321. Offerors must include the 
IFF in their prices. The fee is included in the award price(s) and 
reflected in the total amount charged to ordering activities. FAS will 
post notice of the current IFF at https://72a.gsa.gov/ or successor Web 
site as appropriate.
    (c) Within 60 days of award, an FAS representative will provide the 
Contractor with specific written procedural instructions on remitting 
the IFF. FAS reserves the unilateral right to change such instructions 
from time to time, following notification to the Contractor.
    (d) Failure to remit the full amount of the IFF within 30 calendar 
days after the end of the applicable reporting period constitutes a 
contract debt to the United States Government under the terms of FAR 
Subpart 32.6. The Government may exercise all rights under the Debt 
Collection Improvement Act of 1996, including withholding or setting off 
payments and interest on the debt (see FAR clause 52.232-17, Interest). 
Should the Contractor fail to submit the required sales reports, falsify 
them, or fail to timely pay the IFF, this is sufficient cause for the 
Government to terminate the contract for cause.
    Alternate I (JUN 2016): As prescribed in 538.273(b)(1), substitute 
the following paragraphs (a), (b), (c), and (d) for paragraphs (a), (b), 
(c), and (d) of the basic clause:
    (a) Definition. Transactional data encompasses the historical 
details of the products or services delivered by the Contractor during 
the performance of task or delivery orders issued against this contract.
    (b) Reporting of Transactional Data. The Contractor must report all 
transactional data under this contract as follows:

    (1) The Contractor must electronically report transactional data by 
utilizing the automated reporting system at an Internet Web site 
designated by the General Services Administration (GSA) or by uploading 
the data according to GSA instructions. GSA will post registration 
instructions and reporting procedures on the Vendor Support Center Web 
site, https://vsc.gsa.gov. The reporting system Web site address, as 
well as registration instructions and reporting procedures, will be 
provided at the time of award or inclusion of this clause in the 
contract.

    (2) The Contractor must provide, at no additional cost to the 
Government, the following transactional data elements, as applicable:
    (i) Contract or Blanket Purchase Agreement (BPA) Number.
    (ii) Delivery/Task Order Number/Procurement Instrument Identifier 
(PIID).
    (iii) Non Federal Entity.
    (iv) Description of Deliverable.
    (v) Manufacturer Name.
    (vi) Manufacturer Part Number.
    (vii) Unit Measure (each, hour, case, lot).
    (viii) Quantity of Item Sold.
    (ix) Universal Product Code.
    (x) Price Paid per Unit.
    (xi) Total Price.
    Note to paragraph (b)(2): The Contracting Officer may add data 
elements to the standard elements listed in paragraph (b)(2) of this 
section with the approvals listed in GSAM 507.105(c)(3).
    (3) The contractor must report transactional data within 30 calendar 
days from the last calendar day of the month. If there was no contract 
activity during the month, the Contractor must submit a confirmation of 
no reportable transactional data within 30 calendar days of the last 
calendar day of the month.
    (4) The Contractor must report the price paid per unit, total price, 
or any other data elements with an associated monetary value listed in 
(b)(2) of this section, in U.S. dollars.
    (5) The reported price paid per unit and total price must include 
the Industrial Funding Fee (IFF).
    (6) The Contractor must maintain a consistent accounting method of 
transactional data reporting, based on the Contractor's established 
commercial accounting practice.
    (7) Reporting Points. (i) The acceptable points at which 
transactional data may be reported include--
    (A) Issuance of an invoice; or
    (B) Receipt of payment.
    (ii) The Contractor must determine whether to report transactional 
data

[[Page 238]]

on the basis of invoices issued or payments received.
    (8) The Contractor must continue to furnish reports, including 
confirmation of no transactional data, through physical completion of 
the last outstanding task or delivery order of the contract.
    (9) Unless otherwise expressly stated by the ordering activity, 
orders that contain classified information or other or information that 
would compromise national security are exempt from this reporting 
requirement.
    (10) This clause does not exempt the Contractor from fulfilling 
existing reporting requirements contained elsewhere in the contract.
    (11) GSA reserves the unilateral right to change reporting 
instructions following 60 calendar days' advance notification to the 
Contractor.
    (c) Industrial Funding Fee (IFF). (1) This contract includes an IFF 
charged on orders placed against this contract. The IFF is paid by the 
authorized ordering activity but remitted to GSA by the Contractor. The 
IFF reimburses GSA for the costs of operating the Federal Supply 
Schedule program, as set forth in 40 U.S.C. 321: Acquisition Services 
Fund. Net operating revenues generated by the IFF are also applied to 
fund initiatives benefitting other authorized GSA programs, in 
accordance with 40 U.S.C. 321.
    (2) GSA has the unilateral right to change the fee amount at any 
time, but not more than once per year; GSA will provide reasonable 
notice prior to the effective date of any change. GSA will post notice 
of the current IFF on the Vendor Support Center Web site at https://
vsc.gsa.gov.
    (3) Offerors must include the IFF in their prices. The fee is 
included in the awarded price(s) and reflected in the total amount 
charged to ordering activities. The fee will not be included in the 
price of non-contract items purchased pursuant to a separate contracting 
authority, such as a Governmentwide Acquisition Contract (GWAC); a 
separately awarded Federal Acquisition Regulation (FAR) Part 12, FAR 
Part 13, FAR Part 14, or FAR Part 15 procurement; or a non-FAR contract.
    (4) The Contractor must remit the IFF to GSA in U.S. dollars within 
30 calendar days after the last calendar day of the reporting quarter; 
final payment must be remitted within 30 calendar days after physical 
completion of the last outstanding task order or delivery order issued 
against the contract.
    (5) GSA reserves the unilateral right to change remittance 
instructions following 60 calendar days' advance notification to the 
Contractor.
    (d) The Contractor's failure to remit the full amount of the IFF 
within 30 calendar days after the end of the applicable reporting period 
constitutes a contract debt to the United States Government under the 
terms of FAR Subpart 32.6. The Government may exercise all rights under 
the Debt Collection Improvement Act of 1996, including withholding or 
offsetting payments and interest on the debt (see FAR clause 52.232-17, 
Interest). If the Contractor fails to submit the required transactional 
data reports, falsifies them, or fails to timely pay the IFF, these 
reasons constitute sufficient cause for the Government to terminate the 
contract for cause.

                             (End of clause)

[68 FR 41288, July 11, 2003, as amended at 79 FR 21402, Apr. 16, 2014; 
79 FR 28448, May 16, 2014; 81 FR 1533, Jan. 13, 2016; 81 FR 3731, Jan. 
22, 2016; 81 FR 41138, June 23, 2016]



552.238-75  Price Reductions.

    As prescribed in 538.273(b)(2), insert the following clause:

                       Price Reductions (JUL 2016)

    (a) Before award of a contract, the Contracting Officer and the 
Offeror will agree upon (1) the customer (or category of customers) 
which will be the basis of award, and (2) the Government's price or 
discount relationship to the identified customer (or category of 
customers). This relationship shall be maintained through out the 
contract period. Any change in the Contractor's commercial pricing or 
discount arrangement applicable to the identified customer (or category 
of customers) which disturbs this relationship shall constitute a price 
reduction.
    (b) During the contract period, the Contractor shall report to the 
Contracting Officer all price reductions to the customer (or category of 
customers) that was the basis of award. The Contractor's report shall 
include an explanation of the conditions under which the reductions were 
made.

[[Page 239]]

    (c)(1) A price reduction shall apply to purchases under this 
contract if, after the date negotiations conclude, the Contractor--
    (i) Revises the commercial catalog, pricelist, schedule or other 
document upon which contract award was predicated to reduce prices;
    (ii) Grants more favorable discounts or terms and conditions than 
those contained in the commercial catalog, pricelist, schedule or other 
documents upon which contract award was predicated; or
    (iii) Grants special discounts to the customer (or category of 
customers) that formed the basis of award, and the change disturbs the 
price/discount relationship of the Government to the customer (or 
category of customers) that was the basis of award.
    (2) The Contractor shall offer the price reduction to the eligible 
ordering activity with the same effective date, and for the same time 
period, as extended to the commercial customer (or category of 
customers).
    (d) There shall be no price reduction for sales--
    (1) To commercial customers under firm, fixed-price definite 
quantity contracts with specified delivery in excess of the maximum 
order threshold specified in this contract;
    (2) To Federal agencies;
    (3) Made to Eligible Ordering Activities identified in GSAR clause 
552.238-78 when the order is placed under this contract (and the 
Eligible Ordering Activities identified in GSAR clause 552.238-78 is the 
agreed upon customer or category of customer that is the basis of 
award); or
    (4) Caused by an error in quotation or billing, provided adequate 
documentation is furnished by the Contractor to the Contracting Officer.
    (e) The Contractor may offer the Contracting Officer a voluntary 
Governmentwide price reduction at any time during the contract period.
    (f) The Contractor shall notify the Contracting Officer of any price 
reduction subject to this clause as soon as possible, but not later than 
15 calendar days after its effective date.
    (g) The contractor will be modified to reflect any price reduction 
which becomes applicable in accordance with this clause.

                             (End of clause)

    Alternate I (JUN 2016 As prescribed in 538.273(b)(2)(ii), substitute 
the following paragraphs (a) and (b) for paragraphs (a), (b), (c), (d), 
(e), (f) and (g) of the basic clause:
    (a) The Government may request from the Contractor, and the 
Contractor may provide to the Government, a temporary or permanent price 
reduction at any time during the contract period.
    (b) The Contractor may offer the Contracting Officer a voluntary 
price reduction at any time during the contract period.

[64 FR 37229, July 9, 1999, as amended at 68 FR 24381, May 7, 2003; 69 
FR 28065, May 18, 2004; 81 FR 36430, June 6, 2016; 81 FR 41139, June 23, 
2016; 81 FR 43957, July 6, 2016]



552.238-76  [Reserved]



552.238-77  Definition (Federal Supply Schedules)--Non-Federal Entity.

    As prescribed in 538.7004(a), insert the following clause:

   Definition (Federal Supply Schedules)--Non-Federal Entity (JUL 2016)

    Ordering activity (also called ``ordering agency'' and ``ordering 
office'') means an eligible ordering activity (see 552.238-78) 
authorized to place orders under Federal Supply Schedule contracts.

                             (End of clause)

[68 FR 24381, May 7, 2003, as amended at 81 FR 36430, June 6, 2016]



552.238-78  Scope of Contract (Eligible Ordering Activities).

    As prescribed in 538.7004(b), insert the following clause:

       Scope of Contract (Eligible Ordering Activities) (JUL 2016)

    (a) This solicitation is issued to establish contracts which may be 
used on a nonmandatory basis by the agencies and activities named below, 
as a source of supply for the supplies or services described herein, for 
domestic and/or overseas delivery. For Special Item Number 132-53, 
Wireless Services ONLY, limited geographic coverage (consistent with the 
Offeror's commercial practice) may be proposed.
    (1) Executive agencies (as defined in FAR Subpart 2.1) including 
nonappropriated fund activities as prescribed in 41 CFR 101-26.000);
    (2) Government contractors authorized in writing by a Federal agency 
pursuant to FAR 51.1;
    (3) Mixed ownership Government corporations (as defined in the 
Government Corporation Control Act);
    (4) Federal Agencies, including establishments in the legislative or 
judicial branch of government (except the Senate, the House of 
Representatives and the Architect of the Capitol and any activities 
under the direction of the Architect of the Capitol).
    (5) The District of Columbia;

[[Page 240]]

    (6) Tribal governments when authorized under 25 U.S.C. 450j(k);
    (7) Tribes or tribally designated housing entities pursuant to 25 
U.S.C. 4111(j);
    (8) Qualified Nonprofit Agencies as authorized under 40 U.S.C. 
502(b); and
    (9) Organizations, other than those identified in paragraph (d) of 
this clause, authorized by GSA pursuant to statute or regulation to use 
GSA as a source of supply.
    (b) Definitions. Domestic delivery is delivery within the 48 
contiguous states, Alaska, Hawaii, Puerto Rico, Washington, DC, and U.S. 
territories. Domestic delivery also includes a port or consolidation 
point, within the aforementioned areas, for orders received from 
overseas activities.
    Overseas delivery is delivery to points outside of the 48 contiguous 
states, Washington, DC, Alaska, Hawaii, Puerto Rico, and U.S. 
territories.
    (c) Offerors are requested to check one of the following boxes:
    
     Contractor will provide domestic and overseas delivery.
    
     Contractor will provide overseas delivery only.
    
     Contractor will provide domestic delivery only.
    (d) The following activities may place orders against Schedule 70 
contracts:
    (1) State and local government may place orders against Schedule 70 
contracts, and Consolidated Schedule contracts containing information 
technology Special Item Numbers, and Schedule 84 contracts, on an 
optional basis; PROVIDED, the Contractor accepts order(s) from such 
activities;
    (2) The American National Red Cross may place orders against Federal 
Supply Schedules for products and services in furtherance of the 
purposes set forth in its Federal charter (36 U.S.C. 300102); PROVIDED, 
the Contractor accepts order(s) from the American National Red Cross; 
and
    (3) Other qualified organizations, as defined in section 309 of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5152), may place orders against Federal Supply Schedules for 
products and services determined to be appropriate to facilitate 
emergency preparedness and disaster relief and set forth in guidance by 
the Administrator of General Services, in consultation with the 
Administrator of the Federal Emergency Management Agency; PROVIDED, the 
Contractor accepts order(s) from such activities.
    (4) State and local governments may place orders against Federal 
Supply Schedules for goods or services determined by the Secretary of 
Homeland Security to facilitate recovery from a major disaster declared 
by the President under the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121, et seq.) to facilitate 
disaster preparedness or response, or to facilitate recovery from 
terrorism or nuclear, biological, chemical, or radiological attack; 
PROVIDED, the Contractor accepts order(s) from such activities.
    (e) Articles or services may be ordered from time to time in such 
quantities as may be needed to fill any requirement, subject to the 
Order Limitations thresholds which will be specified in resultant 
contracts. Overseas activities may place orders directly with schedule 
contractors for delivery to CONUS port or consolidation point.
    (f)(1) The Contractor is obligated to accept orders received from 
activities within the Executive branch of the Federal Government.
    (2) The Contractor is not obligated to accept orders received from 
activities outside the Executive branch; however, the Contractor is 
encouraged to accept such orders. If the Contractor elects to accept 
such orders, all provisions of the contract shall apply, including 
clause 552.232-79, Payment by Credit Card. If the Contractor is 
unwilling to accept such orders, and the proposed method of payment is 
not through the Credit Card, the Contractor shall return the order by 
mail or other means of delivery within 5 workdays from receipt. If the 
Contractor is unwilling to accept such orders, and the proposed method 
of payment is through the Credit Card, the Contractor must so advise the 
ordering activity within 24 hours of receipt of order. (Reference clause 
552.232-79, Payment by Credit Card.) Failure to return an order or 
advise the ordering activity within the time frames of this paragraph 
shall constitute acceptance whereupon all provisions of the contract 
shall apply.
    (g) The Government is obligated to purchase under each resultant 
contract a guaranteed minimum of $2,500 (two thousand, five hundred 
dollars) during the contract term.
    (h) All users of GSA's Federal Supply Schedules, including non-
Federal users, shall use the schedules in accordance with the ordering 
guidance provided by the Administrator of General Services. GSA 
encourages non-Federal users to follow the Schedule Ordering Procedures 
set forth in the Federal Acquisition Regulation (FAR) 8.4, but they may 
use different established competitive ordering procedures if such 
procedures are needed to satisfy their state and local acquisition 
regulations and/or organizational policies.

                             (End of clause)

[68 FR 24381, May 7, 2003, as amended at 69 FR 28065, May 18, 2004; 72 
FR 4654, Feb. 1, 2007; 73 FR 54339, Sept. 19, 2008; 81 FR 36430, June 6, 
2016]

[[Page 241]]



552.238-79  Use of Federal Supply Schedule Contracts by Non-Federal Entities

    As prescribed in 538.7004(c), insert the following clause:

 Use of Federal Supply Schedule Contracts by Non-Federal Entities (JUL 
                                  2016)

    (a) If an entity identified in paragraph (d) of the clause at 
552.238-78, Scope of Contract (Eligible Ordering Activities), elects to 
place an order under this contract, the entity agrees that the order 
shall be subject to the following conditions:
    (1) When the Contractor accepts an order from such an entity, a 
separate contract is formed which incorporates by reference all the 
terms and conditions of the Schedule contract except the Disputes 
clause, the patent indemnity clause, and the portion of the Commercial 
Item Contract Terms and Conditions that specifies ``Compliance with laws 
unique to Government contracts'' (which applies only to contracts with 
entities of the Executive branch of the U.S. Government). The parties to 
this new contract which incorporates the terms and conditions of the 
Schedule contract are the individual ordering activity and the 
Contractor. The U.S. Government shall not be liable for the performance 
or nonperformance of the new contract. Disputes which cannot be resolved 
by the parties to the new contract may be litigated in any State or 
Federal court with jurisdiction over the parties, applying Federal 
procurement law, including statutes, regulations and case law, and, if 
pertinent, the Uniform Commercial Code. To the extent authorized by law, 
parties to this new contract are encouraged to resolve disputes through 
Alternative Dispute Resolution. Likewise, a Blanket Purchase Agreement 
(BPA), although not a contract, is an agreement that may be entered into 
by the Contractor with such an entity and the Federal Government is not 
a party.
    (2) Where contract clauses refer to action by a Contracting Officer 
or a Contracting Officer of GSA, that shall mean the individual 
responsible for placing the order for the ordering activity (e.g., FAR 
52.212-4 at paragraph (f) and FSS clause I-FSS-249 B.)
    (3) As a condition of using this contract, eligible ordering 
activities agree to abide by all terms and conditions of the Schedule 
contract, except for those deleted clauses or portions of clauses 
mentioned in paragraph (a)(1) of this clause. Ordering activities may 
include terms and conditions required by statute, ordinance, regulation, 
order, or as otherwise allowed by State and local government entities as 
a part of a statement of work (SOW) or statement of objective (SOO) to 
the extent that these terms and conditions do not conflict with the 
terms and conditions of the Schedule contract. The ordering activity and 
the Contractor expressly acknowledge that, in entering into an agreement 
for the ordering activity to purchase goods or services from the 
Contractor, neither the ordering activity nor the Contractor will look 
to, primarily or in any secondary capacity, or file any claim against 
the United States or any of its agencies with respect to any failure of 
performance by the other party.
    (4) The ordering activity is responsible for all payments due the 
Contractor under the contract formed by acceptance of the ordering 
activity's order, without recourse to the agency of the U.S. Government, 
which awarded the Schedule contract.
    (5) The Contractor is encouraged, but not obligated, to accept 
orders from such entities. The Contractor may, within 5 days of receipt 
of the order, decline to accept any order, for any reason. The 
Contractor shall fulfill orders placed by such entities, which are not 
declined within the 5-day period.
    (6) The supplies or services purchased will be used for governmental 
purposes only and will not be resold for personal use. Disposal of 
property acquired will be in accordance with the established procedures 
of the ordering activity for the disposal of personal property.
    (b) If the Schedule Contractor accepts an order from an entity 
identified in paragraph (d) of the clause at 552.238-78, Scope of 
Contract (Eligible Ordering Activities), the Contractor agrees to the 
following conditions:
    (1) The ordering activity is responsible for all payments due the 
Contractor for the contract formed by acceptance of the order, without 
recourse to the agency of the U.S. Government, which awarded the 
Schedule contract.
    (2) The Contractor is encouraged, but not obligated, to accept 
orders from such entities. The Contractor may, within 5 days of receipt 
of the order, decline to accept any order, for any reason. The 
Contractor shall decline the order using the same means as those used to 
place the order. The Contractor shall fulfill orders placed by such 
entities, which are not declined within the 5-day period.
    (c) In accordance with clause 552.238-74, Industrial Funding Fee and 
Sales Reporting, the Contractor must report the quarterly dollar value 
of all sales under this contract. When submitting sales reports, the 
Contractor must report two dollar values for each Special Item Number:
    (1) The dollar value for sales to entities identified in paragraph 
(a) of the clause at 552.238-78, Scope of Contract (Eligible Ordering 
Activities), and
    (2) The dollar value for sales to entities identified in paragraph 
(d) of clause 552.238-78.

[[Page 242]]

                             (End of clause)

[68 FR 24381, May 7, 2003, as amended at 68 FR 41289, July 11,



552.238-80  [Reserved]



552.238-81  Modification (Federal Supply Schedule).

    As prescribed in 538.273(b), insert the following clause:

           Modifications (Federal Supply Schedule) (APR 2014)

    (a) General. The Contractor may request a contract modification by 
submitting a request to the Contracting Officer for approval, except as 
noted in paragraph (d) of this clause. At a minimum, every request shall 
describe the proposed change(s) and provide the rationale for the 
requested change(s).
    (b) Types of Modifications. (1) Additional items/additional SINs. 
When requesting additions, the following information must be submitted:
    (i) Information requested in paragraphs (1) and (2) of the 
Commercial Sales Practice Format to add SINs.
    (ii) Discount information for the new items(s) or new SIN(s). 
Specifically, submit the information requested in paragraphs 3 through 5 
of the Commercial Sales Practice Format. If this information is the same 
as the initial award, a statement to that effect may be submitted 
instead.
    (iii) Information about the new item(s) or the item(s) under the new 
SIN(s) must be submitted in accordance with the request for proposal.
    (iv) Delivery time(s) for the new item(s) or the item(s) under the 
new SIN(s) must be submitted in accordance with the request for 
proposal.
    (v) Production point(s) for the new item(s) or the item(s) under the 
new SIN(s) must be submitted if required by FAR 52.215-6, Place of 
Performance.
    (vi) Hazardous Material information (if applicable) must be 
submitted as required by FAR 52.223-3 (Alternate I), Hazardous Material 
Identification and Material Safety Data.
    (vii) Any information requested by FAR 52.212-3(f), Offeror 
Representations and Certifications--Commercial Items, that may be 
necessary to assure compliance with FAR 52.225-1, Buy American Act--
Balance of Payments Programs--Supplies.
    (2) Deletions. The Contractors shall provide an explanation for the 
deletion. The Government reserves the right to reject any subsequent 
offer of the same item or a substantially equal item at a higher price 
during the same contract period, if the contracting officer finds the 
higher price to be unreasonable when compared with the deleted item.
    (3) Price Reduction. The Contractor shall indicate whether the price 
reduction falls under the item (i), (ii), or (iii) of paragraph (c)(1) 
of the Price Reductions clause at 552.238-75. If the Price reduction 
falls under item (i), the Contractor shall submit a copy of the dated 
commercial price list. If the price reduction falls under item (ii) or 
(iii), the Contractor shall submit a copy of the applicable price 
list(s), bulletins or letters or customer agreements which outline the 
effective date, duration, terms and conditions of the price reduction.
    (c) Effective dates. The effective date of any modification is the 
date specified in the modification, except as otherwise provided in the 
Price Reductions clause at 552.238-75.
    (d) Electronic File Updates. The Contractor shall update electronic 
file submissions to reflect all modifications. For additional items or 
SINs, the Contractor shall obtain the Contracting Officer's approval 
before transmitting changes. Contract modifications will not be made 
effective until the Government receives the electronic file updates. The 
Contractor may transmit price reductions, item deletions, and 
corrections without prior approval. However, the Contractor shall notify 
the Contracting Officer as set forth in the Price Reductions clause at 
552.238-75.
    (e) Amendments to Paper Federal Supply Schedule Price Lists.
    (1) The Contractor must provide supplements to its paper price 
lists, reflecting the most current changes. The Contractor may either:
    (i) Distribute a supplemental paper Federal Supply Schedule Price 
List within 15 workdays after the effective date of each modification.
    (ii) Distribute quarterly cumulative supplements. The period covered 
by a cumulative supplement is at the discretion of the Contractor, but 
may not exceed three calendar months from the effective date of the 
earliest modification. For example, if the first modification occurs in 
February, the quarterly supplement must cover February-April, and every 
three month period after. The Contractor must distribute each quarterly 
cumulative supplement within 15 workdays from the last day of the 
calendar quarter.
    (2) At a minimum, the Contractor shall distribute each supplement to 
those ordering activities that previously received the basic document. 
In addition, the Contractor shall submit two copies of each supplement 
to the Contracting Officer and one copy to the FSS Schedule Information 
Center.

[[Page 243]]

                             (End of Clause)

    Alternate I (JUN 2016). As prescribed in 538.273(b)(3)(i), add the 
following paragraph (f) to the basic clause:

    (f) Electronic submission of modification requests is mandatory via 
eMod (http://eOffer.gsa.gov), unless otherwise stated in the electronic 
submission standards and requirements at the Vendor Support Center Web 
site (http://vsc.gsa.gov). If the electronic submissions standards and 
requirements information is updated at the Vendor Support Center Web 
site, Contractors will be notified prior to the effective date of the 
change.
    Alternate II (JUN 2016). As prescribed in 538.273(b)(3)(ii), 
substitute the following paragraph (b) for paragraph (b) of the basic 
clause:
    (b) Types of Modifications.
    (1) Additional items/additional SINs. When requesting additions, the 
Contractor must submit the following information:

    (i) Information about the new item(s) or the item(s) under the new 
SIN(s) must be submitted in accordance with the instructions in the 
solicitation.
    (ii) Delivery time(s) for the new item(s) or the item(s) under the 
new SIN(s) must be submitted in accordance with the request for 
proposal.
    (iii) Production point(s) for the new item(s) or the item(s) under 
the new SIN(s) must be submitted if required by FAR 52.215-6, Place of 
Performance.
    (iv) Hazardous Material information (if applicable) must be 
submitted as required by FAR 52.223-3 (Alternate I), Hazardous Material 
Identification and Material Safety Data.
    (v) Any information requested by FAR 52.212-3(f), Offeror 
Representations and Certifications-Commercial Items, that may be 
necessary to assure compliance with FAR 52.225-1, Buy American Act-
Balance of Payments Programs-Supplies.
    (2) Deletions. The Contractor must provide an explanation for the 
deletion. The Government reserves the right to reject any subsequent 
offer of the same item or a substantially equal item at a higher price 
during the same contract period, if the Contracting Officer determines 
that the higher price is unreasonable compared to the price of the 
deleted item.

[79 FR 14184, Mar. 13, 2014; 79 FR 20107, Apr. 11, 2014; 79 FR 29136, 
May 21, 2014; 81 FR 41139, June 23, 2016]



552.239-70  Information Technology Security Plan and Security Authorization.

    As prescribed in 539.7002(a), insert the following provision:

  Information Technology Security Plan and Security Authorization (JUN 
                                  2011)

    All offers/bids submitted in response to this solicitation must 
address the approach for completing the security plan and certification 
and security authorization requirements as required by the clause at 
552.239-71, Security Requirements for Unclassified Information 
Technology Resources.

                           (End of provision)

[76 FR 34888, June 15, 2011]



552.239-71  Security Requirements for Unclassified Information 
Technology Resources.

    As prescribed in 539.7002(b), insert the following clause:

Security Requirements for Unclassified Information Technology Resources 
                               (JAN 2012)

    (a) General. The Contractor shall be responsible for information 
technology (IT) security, based on General Services Administration (GSA) 
risk assessments, for all systems connected to a GSA network or operated 
by the Contractor for GSA, regardless of location. This clause is 
applicable to all or any part of the contract that includes information 
technology resources or services in which the Contractor has physical or 
electronic access to GSA's information that directly supports the 
mission of GSA, as indicated by GSA. The term information technology, as 
used in this clause, means any equipment, including telecommunications 
equipment that is used in the automatic acquisition, storage, 
manipulation, management, control, display, switching, interchange, 
transmission, or reception of data or information. This includes major 
applications as defined by OMB Circular A-130. Examples of tasks that 
require security provisions include:
    (1) Hosting of GSA e-Government sites or other IT operations;
    (2) Acquisition, transmission, or analysis of data owned by GSA with 
significant replacement cost should the Contractors copy be corrupted;
    (3) Access to GSA major applications at a level beyond that granted 
the general public; e.g., bypassing a firewall; and
    (4) Any new information technology systems acquired for operations 
within the GSA must comply with the requirements of

[[Page 244]]

HSPD-12 and OMB M-11-11. Usage of the credentials must be implemented in 
accordance with OMB policy and NIST guidelines (e.g., NIST SP 800-116). 
The system must operate within the GSA's access management environment. 
Exceptions must be requested in writing and can only be granted by the 
GSA Senior Agency Information Security Officer.
    (b) IT Security Plan. The Contractor shall develop, provide, 
implement, and maintain an IT Security Plan. This plan shall describe 
the processes and procedures that will be followed to ensure appropriate 
security of IT resources that are developed, processed, or used under 
this contract. The plan shall describe those parts of the contract to 
which this clause applies. The Contractors IT Security Plan shall comply 
with applicable Federal laws that include, but are not limited to, 40 
U.S.C. 11331, the Federal Information Security Management Act (FISMA) of 
2002, and the E-Government Act of 2002. The plan shall meet IT security 
requirements in accordance with Federal and GSA policies and procedures. 
GSA's Office of the Chief Information Officer issued ``CIO IT Security 
Procedural Guide 09-48, Security Language for Information Technology 
Acquisitions Efforts,'' to provide IT security standards, policies and 
reporting requirements. This document is incorporated by reference in 
all solicitations and contracts or task orders where an information 
system is contractor owned and operated on behalf of the Federal 
Government. The guide can be accessed at http://www.gsa.gov/portal/
category/25690. Specific security requirements not specified in ``CIO IT 
Security Procedural Guide 09-48, Security Language for Information 
Technology Acquisitions Efforts'' shall be provided by the requiring 
activity.
    (c) Submittal of IT Security Plan. Within 30 calendar days after 
contract award, the Contractor shall submit the IT Security Plan to the 
Contracting Officer and Contracting Officers Representative (COR) for 
acceptance. This plan shall be consistent with and further detail the 
approach contained in the contractors proposal or sealed bid that 
resulted in the award of this contract and in compliance with the 
requirements stated in this clause. The plan, as accepted by the 
Contracting Officer and COR, shall be incorporated into the contract as 
a compliance document. The Contractor shall comply with the accepted 
plan.
    (d) Submittal of a Continuous Monitoring Plan. The Contractor must 
develop a continuous monitoring strategy that includes:
    (1) A configuration management process for the information system 
and its constituent components;
    (2) A determination of the security impact of changes to the 
information system and environment of operation;
    (3) Ongoing security control assessments in accordance with the 
organizational continuous monitoring strategy;
    (4) Reporting the security state of the information system to 
appropriate GSA officials; and
    (5) All GSA general support systems and applications must implement 
continuous monitoring activities in accordance with this guide and NIST 
SP 800-37 Revision 1, Guide for Applying the Risk Management Framework 
to Federal Information Systems: A Security Life Cycle Approach.
    (e) Security authorization. Within six (6) months after contract 
award, the Contractor shall submit written proof of IT security 
authorization for acceptance by the Contracting Officer. Such written 
proof may be furnished either by the Contractor or by a third party. The 
security authorization must be in accordance with NIST Special 
Publication 800-37. This security authorization will include a final 
security plan, risk assessment, security test and evaluation, and 
disaster recovery plan/continuity of operations plan. This security 
authorization, when accepted by the Contracting Officer, shall be 
incorporated into the contract as a compliance document, and shall 
include a final security plan, a risk assessment, security test and 
evaluation, and disaster recovery/continuity of operations plan. The 
Contractor shall comply with the accepted security authorization 
documentation.
    (f) Annual verification. On an annual basis, the Contractor shall 
submit verification to the Contracting Officer that the IT Security plan 
remains valid.
    (g) Warning notices. The Contractor shall ensure that the following 
banners are displayed on all GSA systems (both public and private) 
operated by the Contractor prior to allowing anyone access to the 
system:

                                Government Warning

                         **WARNING**WARNING**WARNING**

    Unauthorized access is a violation of U.S. law and General Services 
Administration policy, and may result in criminal or administrative 
penalties. Users shall not access other users or system files without 
proper authority. Absence of access controls IS NOT authorization for 
access! GSA information systems and related equipment are intended for 
communication, transmission, processing and storage of U.S. Government 
information. These systems and equipment are subject to monitoring by 
law enforcement and authorized Department officials. Monitoring may 
result in the acquisition, recording, and analysis of all data being 
communicated, transmitted, processed or stored in this system by law 
enforcement and authorized Department officials. Use of this system 
constitutes consent to such monitoring.

[[Page 245]]

                         **WARNING**WARNING**WARNING**

    (h) Privacy Act notification. The Contractor shall ensure that the 
following banner is displayed on all GSA systems that contain Privacy 
Act information operated by the Contractor prior to allowing anyone 
access to the system:
    This system contains information protected under the provisions of 
the Privacy Act of 1974 (Pub. L. 93-579). Any privacy information 
displayed on the screen or printed shall be protected from unauthorized 
disclosure. Employees who violate privacy safeguards may be subject to 
disciplinary actions, a fine of up to $5,000, or both.
    (i) Privileged or limited privileges access. Contractor personnel 
requiring privileged access or limited privileges access to systems 
operated by the Contractor for GSA or interconnected to a GSA network 
shall adhere to the specific contract security requirements contained 
within this contract and/or the Contract Security Classification 
Specification (DD Form 254).
    (j) Training. The Contractor shall ensure that its employees 
performing under this contract receive annual IT security training in 
accordance with OMB Circular A-130, FISMA, and NIST requirements, as 
they may be amended from time to time during the term of this contract, 
with a specific emphasis on the rules of behavior.
    (k) GSA access. The Contractor shall afford GSA access to the 
Contractor's and subcontractors' facilities, installations, operations, 
documentation, databases, IT systems and devices, and personnel used in 
performance of the contract, regardless of the location. Access shall be 
provided to the extent required, in GSA's judgment, to conduct an 
inspection, evaluation, investigation or audit, including vulnerability 
testing to safeguard against threats and hazards to the integrity, 
availability and confidentiality of GSA data or to the function of 
information technology systems operated on behalf of GSA, and to 
preserve evidence of computer crime. This information shall be available 
to GSA upon request.
    (l) Subcontracts. The Contractor shall incorporate the substance of 
this clause in all subcontracts that meet the conditions in paragraph 
(a) of this clause.
    (m) Notification regarding employees. The Contractor shall 
immediately notify the Contracting Officer when an employee either 
begins or terminates employment when that employee has access to GSA 
information systems or data. If an employee's employment is terminated, 
for any reason, access to GSA's information systems or data shall be 
immediately disabled and the credentials used to access the information 
systems or data shall be immediately confiscated.
    (n) Termination. Failure on the part of the Contractor to comply 
with the terms of this clause may result in termination of this 
contract.

                             (End of clause)

[76 FR 34888, June 15, 2011, as amended at 77 FR 751, Jan. 6, 2012]



552.241-70  Availability of Funds for the Next Fiscal Year or Quarter.

    As prescribed in 541.501, insert the clause 552.241-70, Availability 
of Funds for the Next Fiscal Year or Quarter, instead of FAR 52.232-19, 
in all utility acquisitions.

  Availability of Funds for the Next Fiscal Year or Quarter (AUG 2010)

    Funds are not presently available for performance under this 
contract beyond ______. The Government's obligation for performance of 
this contract beyond that date is contingent upon the availability of 
appropriated funds from which payment for contract purposes can be made. 
No legal liability on the part of the Government for any payment may 
arise for performance under this contract beyond ______, until funds are 
made available to the Contracting Officer for performance and until the 
Contractor receives notice of availability, to be confirmed in writing 
by the Contracting Officer.

                             (End of clause)

[75 FR 48873, Aug. 12, 2010]



552.241-71  Disputes (Utility Contracts).

    As prescribed in 541.501, insert clause 552.241-71, Disputes 
(Utility Contracts), in solicitations and contracts for utility services 
subject to the jurisdiction and regulation of a utility rate commission.

                 Disputes (Utility Contracts) (AUG 2010)

    The requirements of the Disputes clause at FAR 52.233-1 are 
supplemented to provide that matters involving the interpretation of 
tariffed retail rates, tariff rate schedules, and tariffed terms 
provided under this contract are subject to the jurisdiction and 
regulation of the utility rate commission having jurisdiction.

                             (End of clause)

[75 FR 48873, Aug. 12, 2010]

[[Page 246]]



552.242-70  Status Report of Orders and Shipments.

    As prescribed in 542.1107, insert the following clause:

           Status Report of Orders and Shipments (FEB 9, 2009)

    (a) The Contractor shall furnish to the Administrative Contracting 
Officer (ACO) a report covering orders received and shipments made 
during each calendar month of contract performance. The information 
required by the Government shall be reported on GSA Form 1678, Status 
Report of Orders and Shipments, in accordance with instructions on the 
form. The information required by the GSA Form 1678 may also be 
submitted in an automated printout form if authorized by the ACO. 
Alternatively, the required information may be reported by electronic 
data interchange using ANSI standards. For further information, contact 
GSA, Contract Administration Division [Insert appropriate telephone 
number of QVOC] Reports shall be forwarded to the ACO no later than the 
seventh workday of the succeeding month.
    (b) A copy of GSA Form 1678 will be forwarded to the Contractor with 
the contract. Additional copies of the form, if needed, may be 
reproduced by the Contractor.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 74 FR 863, Jan. 9, 2009]



552.243-71  Equitable Adjustments.

    As prescribed in 543.205, insert the following clause:

                    Equitable Adjustments (JAN 2009)

    (a) This clause governs the determination of equitable adjustments 
to which the Contractor may be entitled under the ``Changes'' clause 
prescribed by FAR 52.243-4, the ``Differing Site Conditions'' clause 
prescribed by FAR 52.236-2, and any other provision of this contract 
allowing entitlement to an equitable adjustment. This clause does not 
govern determination of the Contractor's relief allowable under the 
``Suspension of Work'' clause prescribed by FAR 52.242-14.
    (b) At the written request of the Contracting Officer, the 
Contractor shall submit a proposal, in accordance with the requirements 
set forth herein, for an equitable adjustment to the contract for 
changes or other conditions that may entitle a Contractor to an 
equitable adjustment. If the Contractor deems an oral or written order 
to be a change to the contract, it shall promptly submit to the 
Contracting Officer a proposal for equitable adjustment attributable to 
such deemed change. The proposal shall also conform to the requirements 
set forth herein.
    (c) The proposal shall be submitted within the time specified in the 
``Changes'' clause, or such other time as may reasonably be required by 
the Contracting Officer. In the case of a proposal submitted based on 
the ``Differing Site Conditions'' clause, the notice requirement of that 
clause shall be met.
    (d) Proposals for equitable adjustments, including no cost requests 
for adjustment of the contract's required completion date, shall include 
a detailed breakdown of the following elements, as applicable:
    (1) Direct costs.
    (2) Markups.
    (3) Change to the time for completion specified in the contract.
    (e) Direct costs. The Contractor shall separately identify each item 
of deleted and added work associated with the change or other condition 
giving rise to entitlement to an equitable adjustment, including 
increases or decreases to unchanged work impacted by the change. For 
each item of work so identified, the Contractor shall propose for itself 
and, if applicable, its first two tiers of subcontractors, the following 
direct costs:
    (1) Material cost broken down by trade, supplier, material 
description, quantity of material units, and unit cost (including all 
manufacturing burden associated with material fabrication and cost of 
delivery to site, unless separately itemized);
    (2) Labor cost broken down by trade, employer, occupation, quantity 
of labor hours, and burdened hourly labor rate, together with 
itemization of applied labor burdens (exclusive of employer's overhead, 
profit, and any labor cost burdens carried in employer's overhead rate);
    (3) Cost of equipment required to perform the work, identified with 
material to be placed or operation to be performed;
    (4) Cost of preparation and/or revision to shop drawings and other 
submittals with detail set forth in paragraphs (e)(1) and (e)(2) of this 
clause;
    (5) Delivery costs, if not included in material unit costs;
    (6) Time-related costs not separately identified as direct costs, 
and not included in the Contractor's or subcontractors' overhead rates, 
as specified in paragraph (g) of this clause; and
    (7) Other direct costs.
    (f) Marked-up costs of subcontractors below the second tier may be 
treated as other direct costs of a second tier subcontractor, unless the 
Contracting Officer requires a detailed breakdown under paragraph (i) of 
this clause.
    (g) Extensions of Time and Time-Related Costs. The Contractor shall 
propose a daily rate for each firm's time-related costs during the 
affected period, and, for each firm, the increase or decrease in the 
number of work

[[Page 247]]

days of performance attributable to the change or other condition giving 
rise to entitlement to an equitable adjustment, with supporting 
analysis. Entitlement to time and time-related costs shall be determined 
as follows:
    (1) Increases or decreases to a firm's time-related costs shall be 
allowed only if such increase or decrease necessarily and exclusively 
results from the change or other condition giving rise to entitlement to 
an equitable adjustment.
    (2) The Contractor shall not be entitled to an extension of time or 
recovery of its own time-related costs except to the extent that such 
change or other condition necessarily and exclusively causes its 
duration of performance to extend beyond the completion date specified 
in the contract.
    (3) Costs may be characterized as time-related costs only if they 
are incurred solely to support performance of this contract and the 
increase or decrease in such costs is solely dependent upon the duration 
of a firm's performance of work.
    (4) Costs may not be characterized as time-related costs if they are 
included in the calculation of a firm's overhead rate.
    (5) Equitable adjustment of time and time-related costs shall not be 
allowed unless the analysis supporting the proposal complies with 
provisions specified elsewhere in this contract regarding the 
Contractor's project schedule.
    (h) Markups. For each firm whose direct costs are separately 
identified in the proposal, the Contractor shall propose an overhead 
rate, profit rate, and where applicable, a bond rate and insurance rate. 
Markups shall be determined and applied as follows:
    (1) Overhead rates shall be negotiated, and may be subject to audit 
and adjustment.
    (2) Profit rates shall be negotiated, but shall not exceed ten 
percent, unless entitlement to a higher rate of profit may be 
demonstrated.
    (3) The Contractor and its subcontractor[s] shall not be allowed 
overhead or profit on the overhead or profit received by a 
subcontractor, except to the extent that the subcontractor's costs are 
properly included in other direct costs as specified in paragraph (f) of 
this clause.
    (4) Overhead rates shall be applied to the direct costs of work 
performed by a firm, and shall not be allowed on the direct costs of 
work performed by a subcontractor to that firm at any tier except as set 
forth below in paragraphs (h)(6) and (h)(7) of this clause.
    (5) Profit rates shall be applied to the sum of a firm's direct 
costs and the overhead allowed on the direct costs of work performed by 
that firm.
    (6) Overhead and profit shall be allowed on the direct costs of work 
performed by a subcontractor within two tiers of a firm at rates equal 
to only fifty percent of the overhead and profit rates negotiated 
pursuant to paragraphs (h)(1) and (h)(2) of this clause for that firm, 
but not in excess of ten percent when combined.
    (7) Overhead and profit shall not be allowed on the direct costs of 
a subcontractor more than two tiers below the firm claiming overhead and 
profit for subcontractor direct costs.
    (8) If changes to a Contractor's or subcontractor's bond or 
insurance premiums are computed as a percentage of the gross change in 
contract value, markups for bond and insurance shall be applied after 
all overhead and profit is applied. Bond and insurance rates shall not 
be applied if the associated costs are included in the calculation of a 
firm's overhead rate.
    (9) No markup shall be applied to a firm's costs other than those 
specified herein.
    (i) At the request of the Contracting Officer, the Contractor shall 
provide such other information as may be reasonably necessary to allow 
evaluation of the proposal. If the proposal includes significant costs 
incurred by a subcontractor below the second tier, the Contracting 
Officer may require the same detail for those costs as required for the 
first two tiers of subcontractors, and markups shall be applied to these 
subcontractor costs in accordance with paragraph (h).
    (j) Proposal Preparation Costs. If performed by the firm claiming 
them, proposal preparations costs shall be included in the labor hours 
proposed as direct costs. If performed by an outside consultant or law 
firm, proposal preparation costs shall be treated as other direct costs 
to the firm incurring them. Requests for proposal preparation costs 
shall include the following:
    (1) A copy of the contract or other documentation identifying the 
consultant or firm, the scope of the services performed, the manner in 
which the consultant or firm was to be compensated, and if compensation 
was paid on an hourly basis, the fully burdened and marked-up hourly 
rates for the services provided.
    (2) If compensation was paid on an hourly basis, documentation of 
the quantity of hours worked, including descriptions of the activities 
for which the hours were billed, and applicable rates.
    (3) Written proof of payment of the costs requested. The sufficiency 
of the proof shall be determined by the Contracting Officer.
    (k) Proposal preparation costs shall be allowed only if--
    (1) The nature and complexity of the change or other condition 
giving rise to entitlement to an equitable adjustment warrants 
estimating, scheduling, or other effort not reasonably foreseeable at 
the time of contract award;
    (2) Proposed costs are not included in a firm's time-related costs 
or overhead rate; and

[[Page 248]]

    (3) Proposed costs were incurred prior to a Contracting Officer's 
unilateral determination of an equitable adjustment under the conditions 
set forth in paragraph (o), or were incurred prior to the time the 
request for equitable adjustment otherwise became a matter in dispute.
    (l) Proposed direct costs, markups, and proposal preparation costs 
shall be allowable in the determination of an equitable adjustment only 
if they are reasonable and otherwise consistent with the contract cost 
principles and procedures set forth in part 31 of the Federal 
Acquisition Regulation (48 CFR part 31) in effect on the date of this 
contract. Characterization of costs as direct costs, time-related costs, 
or overhead costs must be consistent with the requesting firm's 
accounting practices on other work under this contract and other 
contracts.
    (m) If the Contracting Officer determines that it is in the 
Government's interest that the Contractor proceed with a change before 
negotiation of an equitable adjustment is completed, the Contracting 
Officer may order the Contractor to proceed on the basis of a unilateral 
modification to the contract increasing or decreasing the contract price 
by an amount to be determined later. Such increase or decrease shall not 
exceed the increase or decrease proposed by the Contractor.
    (n) If the parties cannot agree to an equitable adjustment, the 
Contracting Officer may determine the equitable adjustment unilaterally.
    (o) The Contractor shall not be entitled to any proposal preparation 
costs incurred subsequent to the date of a unilateral determination or 
denial of the request if the Contracting Officer issues a unilateral 
determination or denial under any of the following circumstances:
    (1) The Contractor fails to submit a proposal within the time 
required by this contract or such time as may reasonably be required by 
the Contracting Officer.
    (2) The Contractor fails to submit additional information requested 
by the Contracting Officer within the time reasonably required.
    (3) Agreement to an equitable adjustment cannot be reached within 60 
days of submission of the Contractor's proposal or receipt of additional 
requested information, despite the Contracting Officer's diligent 
efforts to negotiate the equitable adjustment.

                             (End of clause)

[74 FR 864, Jan. 9, 2009]



552.246-70  Source Inspection by Quality Approved Manufacturer.

    As prescribed in 546.302-70, insert the following clause:

       Source Inspection by Quality Approved Manufacturer (JUL 09)

    (a) Inspection system and inspection of facilities. (1) The 
inspection system maintained by the Contractor under the Inspection of 
Supplies--Fixed Price clause (FAR 52.246-2) of this contract shall be 
maintained throughout the contract period. Unless otherwise authorized 
in writing by the Contracting Officer, the Contractor shall comply with 
all requirements of editions in effect on the date of the solicitation 
of either Federal Standard 368 or the International Organization for 
Standardization (ISO) Standard 9001:2000 (Quality Management Systems--
Requirements). A documented description of the inspection system shall 
be made available to the Government before contract award. At the sole 
discretion of the Contracting Officer, he/she may authorize in writing 
exceptions to the quality assurance standards identified above. The 
Contractor shall immediately notify the Administrative Contracting 
Officer (ACO) of any changes made in the inspection system during the 
contract period. As used herein, the term ``inspection system'' means 
the Contractor's own facility or any other facility acceptable to the 
Government that will be used to perform inspections or tests of 
materials and components before incorporation into end articles and for 
inspection of such end articles before shipment. When the manufacturing 
plant is located outside of the United States, the Contractor shall 
arrange delivery of the items from a plant or warehouse located in the 
United States (including Puerto Rico and the U.S. Virgin Islands) 
equipped to perform all inspections and tests required by the contract 
or specifications to evidence conformance therewith, or shall arrange 
with a testing laboratory or other facility in the United States, 
acceptable to the Government, to perform the required inspections and 
tests.
    (2) In addition to the requirements in Federal Standard 368, ISO 
9001:2000 or as otherwise approved by the Government, records shall 
include the date inspection and testing were performed. These records 
shall be available for (i) 3 years after final payment; or (ii) 4 years 
from the end of the Contractor's fiscal year in which the record was 
created, whichever period expires first.
    (3) Offerors are required to specify, in the space provided 
elsewhere in this solicitation, the name and address of each 
manufacturing plant or other facility where supplies will be available 
for inspection, indicating the item number(s) to which each applies.
    (4) The Contractor shall provide the Administrative Contracting 
Officer ACO with the name(s) of the individual and an alternate 
responsible for the inspection system. In the event that the designated 
individual(s) becomes unavailable to oversee the inspection system, the 
Contractor, within 10

[[Page 249]]

calendar days of such event, shall provide the ACO with the names of the 
replacement individual(s).
    (b) Inspection by the Contractor. The Contractor is required to 
demonstrate that the supplies in the shipment have been subject to and 
have passed all inspections and tests required by the contract and meet 
the requirements of the contract.
    (c) Inspection by Government personnel. (1) Although the Government 
will normally rely upon the Contractor's representation as to the 
quality of supplies shipped, it reserves the right under the Inspection 
of Supplies--Fixed Price clause to inspect and test all supplies called 
for by this contract, before acceptance, at all times and places, 
including the point of manufacture. When the Government notifies the 
Contractor of its intent to inspect supplies before shipment, the 
Contractor shall notify or arrange for subcontractors to notify the 
designated GSA quality assurance office 7 workdays before the date when 
supplies will be ready for inspection. Shipment shall not be made until 
inspection by the Government is completed and shipment is authorized by 
the Government.
    (2) The offeror shall indicate, in the spaces provided below, the 
location(s) at which the supplies will be inspected or made available 
for inspection.

                                                INSPECTION POINT
 
                                                           NAME, ADDRESS (Including
        ITEM NO(S).              NAME OF MANUFACTURER            County), and              TELEPHONE NUMBER
 
________                     ________                     ________                    ________
________                     ________                     ________                    ________
________                     ________                     ________                    ________
 

    NOTE: If additional space is needed, the offeror may furnish the 
requested information by an attachment to the offer.

    (3) During the contract period, a Government representative may 
periodically select samples of supplies produced under this contract for 
Government verification, inspection, and testing. Samples selected for 
testing will be disposed of as follows: Samples from an accepted lot, 
not damaged in the testing process, will be returned promptly to the 
Contractor after completion of tests. Samples damaged in the testing 
process will be disposed of as requested by the Contractor. Samples from 
a rejected lot will be returned to the Contractor or disposed of in a 
time and manner agreeable to both the Contractor and the Government.
    (d) Quality deficiencies. (1) Notwithstanding any other clause of 
this contract concerning the conclusiveness of acceptance by the 
Government, any supplies or production lots shipped under this contract 
found to be defective in material or workmanship, or otherwise not in 
conformity with the requirements of this contract within a period of 
____*____ months after acceptance shall, at the Government's option, be 
replaced, repaired, or otherwise corrected by the Contractor at no cost 
to the Government within 30 calendar days (or such longer period as the 
Contracting Officer may authorize in writing) after receipt of notice to 
replace or correct. The Contractor shall remove, at its own expense, 
supplies rejected or required to be replaced, repaired, or corrected. 
When the nature of the defect affects an entire batch or lot of 
supplies, and the Contracting Officer determines that correction can 
best be accomplished by retaining the nonconforming supplies, and 
reducing the contract price by an equitable amount under the 
circumstances, then the equitable price adjustment shall apply to the 
entire batch or lot of supplies from which the nonconforming item was 
taken.
    (2) The Contractor may be issued a Quality Deficiency Notice (QDN) 
if:
    (i) Supplies in process, shipped, or awaiting shipment to fill 
Government orders are found not to comply with contract requirements, or 
(ii) deficiencies in either plant quality or process controls are found. 
Upon receipt of a QDN, the Contractor shall take immediate corrective 
action and shall suspend shipment of the supplies covered by the QDN 
until such time as corrective action has been completed. The Contractor 
shall notify the Government representative, within 5 workdays, of the 
action plan or the corrective action taken. The Government may elect to 
verify the corrective action at the Contractor location(s). Shipments of 
nonconforming supplies will be returned at the Contractor's expense and 
may constitute cause for termination of the contract. Delays due to the 
insurance of a QDN do not constitute excusable delay under the default 
clause of this contract. Failure to complete corrective action in a 
timely manner may result in termination of the contract.
    (3) This contract may be terminated for default if subsequent 
Government inspection discloses that plant quality or process controls 
are not being maintained, supplies that do not meet the requirements of 
the contract are being shipped, or if the contractor fails to comply 
with any other requirement of this clause.

[[Page 250]]

    (e) Additional cost for inspection and testing. The Contractor shall 
be charged for any additional cost of inspection/testing or 
reinspecting/retesting supplies for the reasons stated in paragraph (e) 
of FAR 52.246-2, Inspection of Supplies--Fixed Price. When inspection or 
testing is performed by or under the direction of GSA, charges will be 
at the rate of $____**____ per man-hour or fraction thereof if the 
inspection is at a GSA distribution center; $____**____ per man-hour or 
fraction thereof, plus travel costs incurred, if the inspection is at 
any other location; and $____**____ per man-hour or fraction thereof for 
laboratory testing, except that when a testing facility other than a GSA 
laboratory performs all or part of the required tests, the Contractor 
shall be assessed the actual cost incurred by the Government as a result 
of testing at such facility. When inspection is performed by or under 
the direction of any agency other than GSA, the charges indicated above 
may be used, or the agency may assess the actual cost of performing the 
inspection and testing.
    (f) Responsibility for rejected supplies. When the Contractor fails 
to remove or provide instructions for the removal of rejected supplies 
under paragraph (d) of this clause, pursuant to the Contracting 
Officer's instructions, the Contractor shall be liable for all costs 
incurred by the Government in taking such measures as are expedient to 
avoid unnecessary loss to the Contractor. In addition to the remedies 
provided in FAR 52.246-2, supplies may be--
    (1) Stored and charged against the Contractor's account;
    (2) Reshipped to the Contractor at its expense (any additional 
expense incurred by the Government or the freight carrier caused by the 
refusal of the Contractor to accept their return shall also be charged 
against the Contractor's account);
    (3) Sold to the highest bidder on the open market and the proceeds 
applied against the accumulated storage and other costs, including the 
cost of the sale; or
    (4) Otherwise disposed of by the Government.
    (g) Subcontracting requirements. The Contractor shall insert in any 
subcontracts the inspection or testing provisions set forth in 
paragraphs (a) through (d) of this clause and the Inspection of 
Supplies--Fixed Price clause of this contract. The Contractor shall be 
responsible for compliance by any subcontractor with the provisions set 
forth in paragraphs (a) through (d) of this clause and the Inspection of 
Supplies--Fixed Price clause.

                             (End of clause)

    *Normally insert 12 months as the period during which defective or 
otherwise nonconforming supplies must be replaced. However, when the 
supplies being bought have a shelf life of less than 1 year, you should 
use the shelf-life period, or in the instance where you reasonably 
expect a longer period to be available, you should use the longer 
period.
    **The rates to be inserted are established by the Commissioner of 
the Federal Acquisition Service or a designee.

[74 FR 26108, June 1, 2009]



552.246-71  Source Inspection by Government.

    As prescribed in 546.302-71, insert the following clause:

             Source Inspection by Government (JUNE 1, 2009)

    (a) Inspection by Government personnel. (1) Supplies to be furnished 
under this contract will be inspected at source by the Government before 
shipment from the manufacturing plant or other facility designated by 
the Contractor, unless the Contractor is otherwise notified in writing 
by the Contracting Officer or a designated representative. 
Notwithstanding the foregoing, the Government may perform any or all 
tests contained in the contract specifications at a Government facility 
without prior written notice by the Contracting Officer before release 
of the supplies for shipment. Samples sent to a Government resting 
facility will be disposed of as follows: Samples from an accepted lot, 
not damaged in the testing process, will be returned promptly to the 
Contractor after completion of tests. Samples damaged in the testing 
process will be disposed of as requested by the Contractor. Samples from 
a rejected lot will be returned to the Contractor or disposed of in a 
time and manner agreeable to both the Contractor and the Government.
    (2) Government inspection responsibility will be assigned to the GSA 
quality assurance office which has jurisdiction over the State in which 
the Contractor's subcontractor's plant or other designated point for 
inspection is located. The Contractor shall notify or arrange for 
subcontractors to notify the designated GSA quality assurance office 7 
workdays before the date when supplies will be ready for inspection. 
Shipment shall not be made until after inspection by the Government is 
completed and shipment is authorized by Government.
    (b) Inspection and receiving reports. For each shipment, the 
Contractor shall be responsible for preparation and distribution of 
inspection documents as follows: (1) DD Form 250, Material Inspection 
and Receiving Report, or computer formatted equivalent for deliveries to 
military agencies; or (2) GSA Form 308, Notice of Inspection for 
deliveries to GSA or other civilian agencies. When required, the 
Contractor will be furnished a

[[Page 251]]

supply of GSA Form 308 and/or DD Form 250, and complete instructions for 
their reparation and distribution.
    (c) Inspection facilities. (1) The inspection system required to be 
maintained by the Contractor in accordance with FAR 52.246-2, Inspection 
of Supplies--Fixed Price, may be the Contractor's own facilities or any 
other facilities acceptable to the Government. The facilities shall be 
utilized to perform all inspections and tests of materials and 
components before incorporation into end articles, and for the 
inspection of such end articles before shipment. The Government reserves 
the right to evaluate the acceptability and effectiveness of the 
Contractor's inspection system before award and periodically during the 
contract period.
    (2) Offerors are required to specify, in the spaces provided 
elsewhere in the solicitation, the name and address of each 
manufacturing plant or other facility where supplies will be available 
for inspection, indicating the item number(s) to which each applies.
    (3) The Contractor shall deliver the items specified in this 
contract from a plant or warehouse located within the United States 
(including Puerto Rico and the U.S. Virgin Islands) that is equipped to 
perform all inspections and tests required by this contract or 
specifications to evidence conformance therewith, or shall arrange with 
a testing laboratory or other facility in the United States, acceptable 
to the Government, to perform the required inspections and tests.
    (d) Availability of records. (1) In addition to any other 
requirement of this contract, the Contractor shall maintain records 
showing the following information for each order received under the 
contract: (i) order number; (ii) date order received by the Contractor; 
(iii) quantity ordered; (iv) date scheduled into production; (v) batch 
or lot number, if applicable; (vi) date inspected and/or tested; (vii) 
date available for shipment; (viii) date shipped or date service 
completed; and (ix) National Stock Number (NSN), or if none is provided 
in the contract, the applicable item number or other contractual 
identification.
    (2) These records should be maintained at the point of source 
inspection and shall be available to the Contracting Officer, or an 
authorized representative, for (i) 3 years after final payment; or (ii) 
4 years from the end of the Contractor's fiscal year in which the record 
was created, whichever period expires first.
    (e) Additional cost for inspection and testing. The Contractor will 
be charged for any additional cost for inspecting/testing or 
reinspection/retesting supplies for the reasons stated in paragraph (e) 
of FAR 52.246-2, Inspection of Supplies--Fixed Price. When inspection or 
testing is performed by or under the direction of GSA, charges will be 
at the rate of $____*____ per man-hour or fraction thereof if the 
inspection is at a GSA distribution center; $____*____ per man-hour or 
fraction thereof, plus travel costs incurred, if the inspection is at 
any other location; and $____*____ per man-hour or fraction thereof for 
laboratory testing, except that when a testing facility other than a GSA 
laboratory performs all or part of the required tests, the Contractor 
shall be assessed the actual cost incurred by the Government as a result 
of testing at such facility. When inspection is performed by or under 
the direction of any agency other than GSA, the charges indicated above 
may be used, or the agency may assess the actual cost of performing the 
inspection and testing.
    (f) Responsibility for rejected supplies. When the Contractor fails 
to remove or provide instructions for the removal of rejected supplies 
under FAR 52.246-2(h) pursuant to the Contracting Officer's 
instructions, the Contractor shall be liable for all costs incurred by 
the Government in taking such measures as are expedient to avoid 
unnecessary loss to the Contractor. In addition to the remedies provided 
in FAR 52.246-2, supplies may be--
    (1) Stored for the Contractor's account;
    (2) Reshipped to the Contractor at its expense (any additional 
expense incurred by the Government or the freight carrier caused by the 
refusal of the Contractor to accept their return also shall be for the 
Contractor's account); or
    (3) Sold to the highest bidder on the open market and the proceeds 
applied against the accumulated storage and other costs, including the 
cost of the sale.

                             (End of clause)

    * The rates to be inserted are established by the Commissioner of 
the Federal Acquisition Service or a designee.

[64 FR 37229, July 9, 1999, as amended at 74 FR 26110, June 1, 2009]



552.246-72  Final Inspection and Tests.

    As prescribed in 546.312, insert the following clause:

                  Final Inspection and Tests (SEP 1999)

    The Contractor shall give written notice to the Contracting Officer 
at least 10 calendar days before the date the work will be completed and 
ready for final inspection and tests. Final inspection and tests will 
begin within 10 calendar days after the date specified in the 
Contractor's notice unless the Contracting Officer determines that the 
work is not ready for final inspection and so informs the Contractor.

[[Page 252]]

                             (End of clause)



552.246-77  Additional Contract Warranty Provisions for Supplies of a 
Noncomplex Nature.

    As prescribed in 546.710(a), insert the following clause in 
solicitations and contracts that include FAR 52.246-17, Warranty of 
Supplies of a Noncomplex Nature.

  Additional Contract Warranty Provisions for Supplies of a Noncomplex 
                             Nature (JUL 09)

    (a) Definitions. Correction, as used in this clause, means the 
elimination of a defect.
    (b) Contractor's obligations. When return, correction, or 
replacement is required, the Contractor shall be responsible for all 
costs attendant to the return, correction, or replacement of the 
nonconforming supplies. Any removal in connection with the above shall 
be done by the Contractor at its expense.
    (c) Remedies available to the Government. When the nature of the 
defect in the nonconforming item is such that the defect affects an 
entire batch or lot of material, then the equitable price adjustment 
shall apply to the entire batch or lot of material from which the 
nonconforming item was taken.

                             (End of clause)

[74 FR 26110, June 1, 2009]



552.246-78  Inspection at Destination.

    As prescribed in 546.302-72 insert the following clause:

                   Inspection at Destination (JUL 09)

    Inspection of all purchases under this contract will be made at 
destination by an authorized Government representative.

                             (End of clause)

[74 FR 26110, June 1, 2009]



552.252-5  Authorized Deviations in Provisions.

    As prescribed in 552.107-70(a), insert the following provision:

 Authorized Deviations in Provisions (Deviation FAR 52.252-5) (SEP 1999)

    (a) Deviations to FAR provisions. (1) This solicitation indicates 
any authorized deviation to a Federal Acquisition Regulation (48 CFR 
chapter 1) provision by the addition of ``(DEVIATION)'' after the date 
of the provision, if the provision is not published in the General 
Services Administration Acquisition Regulation (48 CFR chapter 5).
    (2) This solicitation indicates any authorized deviation to a 
Federal Acquisition Regulation (FAR) provision that is published in the 
General Services Administration Acquisition Regulation by the addition 
of ``(DEVIATION (FAR provision no.))'' after the date of the provision.
    (b) Deviations to GSAR provisions. This solicitation indicates any 
authorized deviation to a General Services Administration Acquisition 
Regulation provision by the addition of ``(DEVIATION)'' after the date 
of the provision.
    (c) ``Substantially the same as'' provisions. Changes in wording of 
provisions prescribed for use on a ``substantially the same as'' basis 
are not considered deviations.

                           (End of provision)



552.252-6  Authorized Deviations in Clauses.

    As prescribed in 552.107-70(b), insert the following clause:

  Authorized Deviations in Clauses (Deviation FAR 52.252-6) (SEP 1999)

    (a) Deviations to FAR clauses. (1) This solicitation or contract 
indicates any authorized deviation to a Federal Acquisition Regulation 
(48 CFR chapter 1) clause by the addition of ``(DEVIATION)'' after the 
date of the clause, if the clause is not published in the General 
Services Administration Acquisition Regulation (48 CFR chapter 5).
    (2) This solicitation indicates any authorized deviation to a 
Federal Acquisition Regulation (FAR) clause that is published in the 
General Services Administration Acquisition Regulation by the addition 
of ``(DEVIATION (FAR clause no.))'' after the date of the clause.
    (b) Deviations to GSAR clauses: This solicitation indicates any 
authorized deviation to a General Services Administration Acquisition 
Regulation clause by the addition of ``(DEVIATION)'' after the date of 
the clause.
    (c) ``Substantially the same as'' clauses. Changes in wording of 
clauses prescribed for use on a ``substantially the same as'' basis are 
not considered deviations.

                             (End of clause)



552.270-1  Instructions to Offerors--Acquisition of Leasehold Interests
in Real Property.

    As prescribed in 570.702, insert the following provision:

[[Page 253]]

  Instructions to Offerors--Acquisition of Leasehold Interests in Real 
                           Property (JUN 2011)

    (a) Definitions. As used in this provision--
    ``Discussions'' are negotiations that occur after establishment of 
the competitive range that may, at the contracting Officer's discretion, 
result in the offeror being allowed to revise its proposal.
    ``In writing, writing or written'' means any worded or numbered 
expression that can be read, reproduced, and later communicated, and 
includes electronically transmitted and stored information.
    ``Proposal modification'' is a change made to a proposal before the 
solicitation's closing date and time, or made in response to an 
amendment, or made to correct a mistake at any time before award.
    ``Proposal revision'' is a change to a proposal made after the 
solicitation closing date, at the request of as allowed by a Contracting 
Officer as the result or of negotiations.
    ``Time,'' if stated as a number of days, is calculated using 
calendar days, unless otherwise specified, and will include Saturdays, 
Sundays, and legal holidays. However, if the last day falls on a 
Saturday, Sunday, or legal holiday, then the period shall include the 
next working day.
    (b) Amendments to solicitations. If this solicitation is amended, 
all terms and conditions that are not amended remain unchanged. Offerors 
shall acknowledge receipt of any amendment to this solicitation by the 
date and time specified in the amendment(s).
    (c) Submission, modification, revision, and withdrawal of proposals. 
(1) Unless other methods (e.g., electronic commerce or facsimile) are 
permitted in the solicitation, proposals and modifications to proposals 
shall be submitted in paper media in sealed envelopes or packages. 
Offers must be:
    (i) Submitted on the forms prescribed and furnished by the 
Government as a part of this solicitation or on copies of those forms, 
and
    (ii) Signed. The person signing an offer must initial each erasure 
or change appearing on any offer form. If the offeror is a partnership, 
the names of the partners composing the firm must be included with the 
offer.
    (2) Late proposals and revisions. (i) The Government will not 
consider any proposal received at the office designated in the 
solicitation after the exact time specified for receipt of offers unless 
it is received before the Government makes award and it meets at least 
one of the following conditions:
    (A) It was sent by registered or certified mail not later than the 
fifth calendar day before the date specified for receipt of offers 
(e.g., an offer submitted in response to solicitation requiring receipt 
of offers by the 20th of the month must have been mailed by the 15th).
    (B) It was sent by mail (or telegram or facsimile, if authorized) or 
hand-carried (including delivery by a commercial carrier) if it is 
determined by the Government that the late receipt was due primarily to 
Government mishandling after receipt at the Government installation.
    (C) It was sent by U.S. Postal Service Express Mail Next Day 
Service-Post Office to Addressee, not later than 5:00 p.m. at the place 
of mailing two working days prior to the date specified for receipt of 
proposals. The term ``working days'' excludes weekends and U.S. Federal 
holidays.
    (D) It was transmitted through an electronic commerce method 
authorized by the solicitation and was received at the initial point of 
entry of the Government infrastructure not later than 5:00 p.m. one 
working day prior to the date specified for receipt of proposals.
    (E) There is acceptable evidence to establish that it was received 
at the activity designated for receipt of offers and was under the 
Government's control prior to the time set for receipt of offers, and 
that the Contracting Officer determines that accepting the late offer 
would not unduly delay the procurement.
    (F) It is the only proposal received.
    (ii) Any modification or revision of a proposal or response to 
request for information, including any final proposal revision, is 
subject to the same conditions as in subparagraphs (c)(2)(i)(A) through 
(c)(2)(i)(E) of this provision.
    (iii) The only acceptable evidence to establish the date of mailing 
of a late proposal or modification or revision sent either by registered 
or certified mail is the U.S. or Canadian Postal Service postmark both 
on the envelope or wrapper and on the original receipt from the U.S. or 
Canadian Postal Service. Both postmarks must show a legible date or the 
proposal, response to a request for information, or modification or 
revision shall be processed as if mailed late. ``Postmark'' means a 
printed, stamped, or otherwise placed impression (exclusive of a postage 
meter machine impression) that is readily identifiable without further 
action as having been supplied and affixed by employees of the U.S. or 
Canadian Postal Service on the date of mailing. Therefore, offerors or 
respondents should request the postal clerk to place a legible hand 
cancellation bull's eye postmark on both the receipt and the envelope or 
wrapper.
    (iv) Acceptable evidence to establish the time of receipt at the 
Government installation includes the time/date stamp of that 
installation on the proposal wrapper, other documentary evidence of 
receipt maintained by the installation, or oral testimony or statements 
of Government personnel.

[[Page 254]]

    (v) The only acceptable evidence to establish the date of mailing of 
a late offer, modification or revision, or withdrawal sent by Express 
Mail Next Day Service-Post Office to Addressee is the date entered by 
the post office receiving clerk on the ``Express Mail Next Day Service-
Post Office to Addressee'' label and the postmark on both the envelope 
or wrapper and on the original receipt from the U.S. Postal Service, 
``Postmark'' has the same meaning as defined in paragraph (c)(2)(iii) of 
this provision, excluding postmarks of the Canadian Postal Service. 
Therefore, offerors or respondents should request the postal clerk to 
place a legible hand cancellation bull's eye postmark on both the 
receipt and the envelope or wrapper.
    (vi) Notwithstanding paragraph (c)(2)(i) of this provision, a late 
modification or revision of an otherwise successful proposal that makes 
its terms more favorable to the Government will be considered at any 
time it is received and may be accepted.
    (vii) An offeror may withdraw its proposal by written notice or 
telegram (including mailgram) received at any time before award. If the 
solicitation authorizes facsimile proposals, an offeror may withdraw its 
proposal via facsimile received at any time before award, subject to the 
conditions specified in the provision entitled ``Facsimile Proposals.'' 
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.
    (viii) If an emergency or unanticipated event interrupts normal 
Government processes so that proposals cannot be received at the office 
designated for receipt of proposals by the exact time specified in the 
solicitation, and urgent Government requirements preclude amendment of 
the solicitation or other notice of an extension of the closing date, 
the time specified for receipt of proposals will be deemed to be 
extended to the same time of day specified in the solicitation on the 
first work day on which normal Government processes resume. If no time 
is specified in the solicitation, the time for receipt is 4:30 p.m., 
local time, for the designated Government office.
    (3) Any information given to a prospective offeror concerning this 
solicitation will be furnished promptly to all other prospective 
offerors, if that information is necessary in submitting offers or if 
the lack of it would be prejudicial to any other prospective offeror.
    (4) Offerors may submit modifications to their proposals at any time 
before the solicitation closing date and time, and may submit 
modifications in response to an amendment, or to correct a mistake at 
any time before award.
    (5) Offerors may submit revised proposals only if requested or 
allowed by the Contracting Officer.
    (6) The Government will construe an offer to be in full and complete 
with this solicitation unless the offer describes any deviation in the 
offer.
    (7) Offerors may submit proposals that depart from stated 
requirements. Such a proposal shall clearly identify why the acceptance 
of the proposal would be advantageous to the Government. The proposal 
must clearly identify and explicitly define any deviations from the 
terms and conditions of the solicitation, as well as the comparative 
advantage to the Government. The Government reserves the right to amend 
the solicitation to allow all offerors an opportunity to submit revised 
proposals based on the revised requirements.
    (d) Restriction on disclosure and use of data. An offeror that 
includes in its proposal data that it does not want disclosed to the 
public for any purpose, or use by the Government except for evaluation 
purposes, must meet both of the following conditions:
    (1) Mark the title page with the following legend:
    This proposal includes data that shall not be disclosed outside the 
Government and shall not be duplicated, used, or disclosed--in whole or 
in part--for any purpose other than to evaluate this proposal. If, 
however, a lease is awarded to this offeror as a result of--or in 
connection with--the submission of this data, the Government shall have 
the right to duplicate, use, or disclose the data to the extent provided 
in the resulting contract. This restriction does not limit the 
Government's right to use information contained in this data if it is 
obtained from another source without restriction. The data subject to 
this restriction are contained in sheets [insert numbers or other 
identification of sheets].
    (2) Mark each sheet of data it wishes to restrict with the following 
legend:
    Use or disclosure of data contained on this sheet is subject to the 
restriction on the title page of this proposal.
    (e) Lease award. (1) The Government intends to award a lease 
resulting from this solicitation to the responsible offeror whose 
proposal represents the best value after evaluation in accordance with 
the factors and subfactors in the solicitation.
    (2) The Government may reject any or all proposals if such action is 
in the Government's interest.
    (3) The Government may waive informalities and minor irregularities 
in proposals received.
    (4) The Government intends to evaluate proposals and award a lease 
after conducting discussions with offerors whose proposals have been 
determined to be within the competitive range. If the Contracting 
Officer determines that the number of proposals that

[[Page 255]]

would otherwise be in the competitive range exceeds the number at which 
an efficient competition can be conducted, the Contracting Officer may 
limit the number of proposals in the competitive range to the greatest 
number that will permit an efficient competition among the most highly 
rated proposals. Therefore, the offeror's initial proposal should 
contain the offeror's best terms from a price and technical standpoint.
    (5) Exchanges with offerors after receipt of a proposal do not 
constitute a rejection or counteroffer by the Government.
    (6) The Government may determine that a proposal is unacceptable if 
the price proposed are materially unbalanced between line terms or 
subline items. Unbalanced pricing exists when, despite an acceptable 
total evaluated price, the price of one or more contract line items is 
significantly overstated or understand as indicated by the application 
of cost or price analysis techniques. A proposal may be rejected if the 
Contracting Officer determines that the lack of balance poses an 
unacceptable risk to the Government.
    (7) The execution and delivery of the Lease contract by the 
Government establishes a valid award and contract.
    (8) The Government may disclose the following information in 
postaward debriefings to other offerors:
    (i) The overall evaluated cost or price and technical rating of the 
successful offeror;
    (ii) The overall making of all offerors, when any making was 
developed by the agency during source selection; and
    (iii) A summary of the rationale for award.
    (f) Paperwork collection. The information collection requirements 
contained in this solicitation/contract are either required by 
regulation or approved by the Office of Management and Budget pursuant 
to the Paperwork Reduction Act and assigned OMB Control No. 3090-0163.

                           (End of provision)

    Alternate I (MAR 1998). As prescribed in 570.702, substitute the 
following paragraph for paragraph (c)(2)(i) of the basic provision:

    (i) Any offer received at the office designated in the solicitation 
after the exact time specified for receipt of final proposal revisions 
will not be considered unless it is received before award is made and it 
meets one of the following conditions--

    Alternate II (MAR 1998). As prescribed in 570.702, substitute the 
following paragraph for paragraph (e)(4) of the basic provision:

    (4) The Government intends to evaluate proposals and award a lease 
without discussions with offerors (except clarifications as described in 
FAR 15.306(a)). Therefore, the offeror's initial proposal should contain 
the offeror's best terms from a cost or price and technical standpoint. 
The Government reserves the right to conduct discussions if the 
Contracting Officer later determines them to be necessary. If the 
Contracting Officer determines that the number of proposals that would 
otherwise be in the competitive range exceeds the number at which an 
efficient competition can be conducted, the Contracting Officer may 
limit the number of proposals in the competitive range to the greatest 
number that will permit an efficient competition among the most highly 
rated proposals.

[64 FR 37229, July 9, 1999, as amended at 76 FR 30845, May 27, 2011]



552.270-2  Historic Preference.

    As prescribed in 570.702, insert the following provision:

                     Historic Preference (SEP 2004)

    (a) The Government will give preference to offers of space in 
historic properties following this hierarchy of consideration:
    (1) Historic properties within historic districts.
    (2) Non-historic developed and non-historic undeveloped sites within 
historic districts.
    (3) Historic properties outside of historic districts.
    (b) Definitions. (1) Determination of eligibility means a decision 
by the Department of the Interior that a district, site, building, 
structure or object meets the National Register criteria for evaluation 
although the property is not formally listed in the National Register 
(36 CFR 60.3(c)).
    (2) Historic district means a geographically definable area, urban 
or rural, possessing a significant concentration, linkage, or continuity 
of sites, buildings, structures, or objects united by past events or 
aesthetically by plan or physical development. A district may also 
comprise individual elements separated geographically but linked by 
association or history (36 CFR 60.3(d)). The historic district must be 
included in or be determined eligible for inclusion in the National 
Register of Historic Places.
    (3) Historic property means any pre-historic or historic district, 
site, building, structure, or object included in or been determined 
eligible for inclusion in the National Register of Historic Places 
maintained by the Secretary of the Interior (36 CFR 800.16(l)).
    (4) National Register of Historic Places means the National Register 
of districts, sites, buildings, structures and objects significant

[[Page 256]]

in American history, architecture, archeology, engineering and culture 
that the Secretary of the Interior is authorized to expand and maintain 
under the National Historic Preservation Act (36 CFR 60.1).
    (c) The offer of space must meet the terms and conditions of this 
solicitation. The Contracting Officer has discretion to accept 
alternatives to certain architectural characteristics and safety 
features defined elsewhere in this solicitation to maintain the 
historical integrity of an historic building, such as high ceilings and 
wooden floors, or to maintain the integrity of an historic district, 
such as setbacks, floor-to-ceiling heights, and location and appearance 
of parking.
    (d) When award will be based on the lowest price technically 
acceptable source selection process, the Government will give a price 
evaluation preference, based on the total annual square foot (ANSI/BOMA 
Office Area) cost to the Government, to historic properties as follows:
    (1) First to suitable historic properties within historic districts, 
a 10 percent price preference.
    (2) If no suitable historic property within an historic district is 
offered, or the 10 percent preference does not result in such property 
being the lowest price technically acceptable offer, the Government will 
give a 2.5 percent price preference to suitable non-historic developed 
or undeveloped sites within historic districts.
    (3) If no suitable non-historic developed or undeveloped site within 
an historic district is offered, or the 2.5 percent preference does not 
result in such property being the lowest price technically acceptable 
offer, the Government will give a 10 percent price preference to 
suitable historic properties outside of historic districts.
    (4) Finally, if no suitable historic property outside of historic 
districts is offered, no historic price preference will be given to any 
property offered.
    (e) When award will be based on the best value tradeoff source 
selection process, which permits tradeoffs among price and non-price 
factors, the Government will give a price evaluation preference, based 
on the total annual square foot (ANSI/BOMA Office Area) cost to the 
Government, to historic properties as follows:
    (1) First to suitable historic properties within historic districts, 
a 10 percent price preference.
    (2) If no suitable historic property within a historic district is 
offered or remains in the competition, the Government will give a 2.5 
percent price preference to suitable non-historic developed or 
undeveloped sites within historic districts.
    (3) If no suitable non-historic developed or undeveloped site within 
an historic district is offered or remains in the competition, the 
Government will give a 10 percent price preference to suitable historic 
properties outside of historic districts.
    (4) Finally, if no suitable historic property outside of historic 
districts is offered, no historic price preference will be given to any 
property offered.
    (f) The Government will compute price evaluation preferences by 
reducing the price(s) of the offerors qualifying for a price evaluation 
preference by the applicable percentage provided in this provision. The 
price evaluation preference will be used for price evaluation purposes 
only. The Government will award a contract in the amount of the actual 
price(s) proposed by the successful offeror and accepted by the 
Government.
    (g) To qualify for a price evaluation preference, offerors must 
provide satisfactory documentation in their offer that their property 
qualifies as one of the following:
    (1) An historic property within an historic district.
    (2) A non-historic developed or undeveloped site within an historic 
district.
    (3) An historic property outside of an historic district.

                           (End of provision)

[69 FR 55938, Sept. 16, 2004, as amended at 76 FR 30845, May 27, 2011]



552.270-3  Parties To Execute Lease.

    As prescribed in 570.702, insert the following provision:

                   Parties To Execute Lease (JUN 2011)

    (a) If the lessor is an individual, that individual shall sign the 
lease. A lease with an individual doing business as a firm shall be 
signed by that individual, and the signature shall be followed by the 
individual's typed, stamped, or printed name and the words, ``an 
individual doing business as ___ [insert name of firm].''
    (b) If the Lessor is a partnership, the lease must be signed in the 
partnership name, followed by the name of the legally authorized partner 
signing the same, and a copy of either the partnership agreement or 
current Certificate of Limited Partnership shall accompany the lease.
    (c) If the Lessor is a corporation, the lease must be signed in the 
corporate name, followed by the signature and title of the officer or 
other person signing the lease on its behalf, duly attested, and, if 
requested by the Government, evidence of this authority to so act shall 
be furnished.
    (d) If the Lessor is a joint venture, the lease must be signed by 
each participant in the joint venture in the manner prescribed in 
paragraphs (a) through (c) of this provision for each type of 
participant. When a corporation is participating in the joint venture, 
the

[[Page 257]]

corporation shall provide evidence that the corporation is authorized to 
participate in the joint venture.
    (e) If the lease is executed by an attorney, agent, or trustee on 
behalf of the Lessor, an authenticated copy of the power of attorney, or 
other evidence to act on behalf of the Lessor, must accompany the lease.

                           (End of provision)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30845, May 27, 2011]



552.270-4  Definitions.

    As prescribed in 570.703, insert the following clause:

                         Definitions (SEP 1999)

    The following terms and phrases (except as otherwise expressly 
provided or unless the context otherwise requires) for all purposes of 
this lease shall have the respective meanings hereinafter specified:
    (a) ANSI/BOMA Office Area (ABOA) means the area ``where a tenant 
normally houses personnel, and/or furniture, for which a measurement is 
to be computed,'' as stated by the American National Standards 
Institute/Building Owners and Managers Association (ANSI/BOMA) 
publication, Z65.1-1996.
    (b) ``Commencement Date'' means the first day of the term.
    (c) ``Contract'' and ``Contractor'' means ``Lease'' and ``Lessor,'' 
respectively.
    (d) ``Contracting Officer'' means a person with the authority to 
enter into, administer, and/or terminate contracts and make related 
determinations and findings. The term includes certain authorized 
representatives of the Contracting Officer acting within the limits of 
their authority as delegated by the Contracting Officer.
    (e) ``Delivery Date'' means the date specified in or determined 
pursuant to the provisions of this lease for delivery of the premises to 
the Government, improved in accordance with the provisions of this lease 
and substantially complete, as such date may be modified in accordance 
with the provisions of this lease.
    (f) ``Delivery Time'' means the number of days provided by this 
lease for delivery of the premises to the Government, as such number may 
be modified in accordance with the provision so this lease.''
    (g) ``Excusable Delays'' means delays arising without the fault or 
negligence of Lessor and Lessor's subcontractors and suppliers at any 
tier, and shall include, without limitation:
    (1) acts of God or of the public enemy,
    (2) acts of the United States of America in either its sovereign or 
contractual capacity,
    (3) acts of another contractor in the performance of a contract with 
the Government,
    (4) fires,
    (5) floods,
    (6) epidemics,
    (7) quarantine restrictions,
    (8) strikes,
    (9) freight embargoes,
    (10) unusually severe weather, or
    (11) delays of subcontractors or suppliers at any tier arising from 
unforeseeable causes beyond the control and without the fault or 
negligence of both the Lessor and any such subcontractor or supplier.
    (h) ``Lessor'' means the sub-lessor if this lease is a sublease.
    (i) ``Lessor shall provide'' means the Lessor shall furnish and 
install at Lessor's expense.
    (j) ``Notice'' means written notice sent by certified or registered 
mail, Express Mail or Comparable service, or delivered by hand. Notice 
shall be effective on the date delivery is accepted or refused.
    (k) ``Premises'' means the space described in this lease.
    (l) ``Substantially complete'' and ``substantial completion'' means 
that the work, the common and other areas of the building, and all other 
things necessary for the Government's access to the premises and 
occupancy, possession, use and enjoyment thereof, as provided in this 
lease, have been completed or obtained, excepting only such minor 
matters as do not interfere with or materially diminish such access, 
occupancy, possession, use of enjoyment.
    (m) ``Work'' means all alterations, improvements, modifications, and 
other things required for the preparation or continued occupancy of the 
premises by the Government as specified in this lease.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-5  Subletting and Assignment.

    As prescribed in 570.703, insert the following clause:

                  Subletting and Assignment (SEP 1999)

    The Government may sublet any part of the premises but shall not be 
relieved from any obligations under this lease by reason of any such 
subletting. The Government may at any time assign this lease, and be 
relieved from all obligations to Lessor under this lease excepting only 
unpaid rent and other liabilities, if any that have accrued to the date 
of said assignment. Any assignment shall be subject to prior written 
consent of Lessor, which shall not be unreasonably withheld.

[[Page 258]]

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-6  Maintenance of Building and Premises--Right of Entry.

    As prescribed in 570.703, insert the following clause:

     Maintenance of Building and Premises--Right of Entry (SEP 1999)

    Except in case of damage arising out of the willful act or 
negligence of a Government employee, Lessor shall maintain the premises, 
including the building and all equipment, fixtures, and appurtenances 
furnished by the lessor under this lease, in good repair and condition 
so that they are suitable in appearance and capable of supplying such 
heat, air conditioning, light, ventilation, access and other things to 
the premises, without reasonably preventable or recurring disruption, as 
is required for the Government's access to, occupancy, possession, use 
and enjoyment of the premises as provided in this lease. For the purpose 
of so maintaining the premises, the Lessor may at reasonable times enter 
the premises with the approval of the authorized Government 
representative in charge.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-7  Fire and Casualty Damage.

    As prescribed in 570.703, insert the following clause:

                   Fire and Casualty Damage (JUN 2011)

    If the entire premises are destroyed by fire or other casualty, this 
lease will immediately terminate. In case of partial destruction or 
damage, so as to render the premises untenantable, as determined by the 
Government, the Government may terminate the lease by giving written 
notice to the Lessor within 15 calendar days after such determination; 
if so terminated, no rent will accrue to the Lessor after such partial 
destruction or damage; and if not so terminated, the rent will be 
reduced proportionately by supplemental agreement hereto effective from 
the date of such partial destruction or damage. Nothing in this lease 
shall be construed as relieving Lessor from liability for damage to or 
destruction of property of the United States of America caused by the 
willful or negligent act or omission of Lessor.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-8  Compliance with Applicable Law.

    As prescribed in 570.703, insert the following clause:

                Compliance With Applicable Law (SEP 1999)

    Lessor shall comply with all Federal, state and local laws 
applicable to the Lessor as owner or lessor, or both, of the building or 
premises, including, without limitation, laws applicable to the 
construction, ownership, alteration or operation of both or either 
thereof, and will obtain all necessary permits, licenses and similar 
items at Lessor's expense. The Government will comply with all Federal, 
state and local laws applicable to and enforceable against it as a 
tenant under this lease; provided that nothing in this lease shall be 
construed as a waiver of any sovereign immunity of the Government. This 
lease shall be governed by Federal law.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-9  Inspection--Right of Entry.

    As prescribed in 570.703, insert the following clause:

                  Inspection--Right of Entry (SEP 1999)

    (a) At any time and from time to time after receipt of an offer 
(until the same has been duly withdrawn or rejected), after acceptance 
thereof and during the term, the agents, employees and contractors of 
the Government may, upon reasonable prior notice to Offeror or Lessor, 
enter upon the offered premises or the premises, and all other areas of 
the building access to which is necessary to accomplish the purposes of 
entry, to determine the potential or actual compliance by the Offeror or 
Lessor with the requirements of the solicitation or this lease, which 
purposes shall include, but not be limited to:
    (1) Inspecting, sampling and analyzing suspected asbestos-containing 
materials and air monitoring for asbestos fibers;
    (2) Inspecting the heating, ventilation and air conditioning system, 
maintenance records, and mechanical rooms for the offered premises or 
the premises;
    (3) Inspecting for any leaks, spills, or other potentially hazardous 
conditions which may involve tenant exposure to hazardous or toxic 
substances; and

[[Page 259]]

    (4) Inspecting for any current or past hazardous waste operations, 
to ensure that appropriate mitigative actions were taken to alleviate 
any environmentally unsound activities in accordance with Federal, State 
and local law.
    (b) Nothing in this clause shall be construed to create a Government 
duty to inspect for toxic materials or to impose a higher standard of 
care on the Government than on other lessees. The purpose of this clause 
is to promote the ease with which the Government may inspect the 
building. Nothing in this clause shall act to relieve the Lessor of any 
duty to inspect or liability which might arise as a result of Lessor's 
failure to inspect for or correct a hazardous condition.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-10  Failure in Performance.

    As prescribed in 570.703, insert the following clause:

                    Failure in Performance (SEP 1999)

    The covenant to pay rent and the covenant to provide any service, 
utility, maintenance, or repair required under this lease are 
interdependent. In the event of any failure by the Lessor to provide any 
service, utility, maintenance, repair or replacement required under this 
lease the Government may, by contract or otherwise, perform the 
requirement and deduct from any payment or payments under this lease, 
then or thereafter due, the resulting cost to the Government, including 
all administrative costs. If the Government elects to perform any such 
requirement, the Government and each of its contractors shall be 
entitled to access to any and all areas of the building, access to which 
is necessary to perform any such requirement, and the Lessor shall 
afford and facilitate such access. Alternatively, the Government may 
deduct from any payment under this lease, then or thereafter due, an 
amount which reflects the reduced value of the contract requirement not 
performed. No deduction from rent pursuant to this clause shall 
constitute a default by the Government under this lease. These remedies 
are not exclusive and are in addition to any other remedies which may be 
available under this lease or at law.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-11  Successors Bound.

    As prescribed in 570.703, insert the following clause:

                       Successors Bound (SEP 1999)

    This lease shall bind, and inure to the benefit of, the parties and 
their respective heirs, executors, administrators, successors and 
assigns.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-12  Alterations.

    As prescribed in 570.703, insert the following clause:

                         Alterations (SEP 1999)

    The Government shall have the right during the existence of this 
lease to make alterations, attach fixtures, and erect structures or 
signs in or upon the premises hereby leased, which fixtures, additions 
or structures so placed in, on, upon, or attached to the said premises 
shall be and remain the property of the Government and may be removed or 
otherwise disposed of by the Government. If the lease contemplates that 
the Government is the sole occupant of the building, for purposes of 
this clause, the leased premises include the land on which the building 
is sited and the building itself. Otherwise, the Government shall have 
the right to tie into or make any physical connection with any structure 
located on the property as is reasonably necessary for appropriate 
utilization of the leased space.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-13  Proposals for Adjustment.

    As prescribed in 570.703, insert the following clause:

                   Proposals for Adjustment (OCT 2016)

    (a) The Contracting Officer may, from time to time during the term 
of this lease, require changes to be made in the work or services to be 
performed and in the terms or conditions of this lease. Such changes 
will be required under the Changes clause.
    (b) If the Contracting Officer makes a change within the general 
scope of the lease, the Lessor shall submit, in a timely manner, an 
itemized cost proposal for the work to be accomplished or services to be 
performed when the cost exceeds $100,000. The proposal,

[[Page 260]]

including all subcontractor work, will contain at least the following 
details--
    (1) Material quantities and unit costs;
    (2) Labor costs (identified with specific item or material to be 
placed or operation to be performed);
    (3) Equipment costs;
    (4) Worker's compensation and public liability insurance;
    (5) Overhead;
    (6) Profit; and
    (7) Employment taxes under FICA and FUTA.
    (c) The following Federal Acquisition Regulation (FAR) provisions 
also apply to all proposals exceeding $750,000 in cost--
    (1) The Lessor shall provide cost or pricing data including 
subcontractor cost or pricing data (48 CFR 15.403-4); and
    (2) The Lessor's representative, all Contractors, and subcontractors 
whose portion of the work exceeds $750,000 must sign and return the 
``Certificate of Current Cost or Pricing Data'' (48 CFR 15.406-2).
    (d) Lessors shall also refer to 48 CFR Part 31, Contract Cost 
Principles, for information on which costs are allowable, reasonable, 
and allocable in Government work.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011; 81 
FR 68336, Oct. 4, 2016]



552.270-14  Changes.

    As prescribed in 570.703, insert the following clause:

                           Changes (JUN 2011)

    (a) The Contracting Officer may at any time, by written order, make 
changes within the general scope of this lease in any one or more of the 
following:
    (1) Specifications (including drawings and designs).
    (2) Work or services.
    (3) Facilities or space layout.
    (4) Amount of space, provided the Lessor consents to the change.
    (b) If any such change causes an increase or decrease in Lessor's 
cost of or the time required for performance under this lease, whether 
or not changed by the order, the Contracting Officer shall modify this 
lease to provide for one or more of the following:
    (1) A modification of the delivery date.
    (2) An equitable adjustment in the rental rate.
    (3) A lump sum equitable adjustment.
    (4) An equitable adjustment of the annual operating costs per ABOA 
square foot specified in this lease.
    (c) The Lessor must assert its right to an adjustment under this 
clause within 30 days from the date of receipt of the change order and 
must submit a proposal for adjustment. The Lessor's failure to assert 
its right for adjustment within the time frame specified herein shall be 
a waiver of the Lessor's right to an adjustment under this paragraph. 
Failure to agree to any adjustment shall be a dispute under the Disputes 
clause. However, nothing in this clause excuses the lessor from 
proceeding with the change as directed.
    (d) Absent such written change order, the Government is not liable 
to Lessor under this clause.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-15  Liquidated Damages.

    As prescribed in 570.703, insert the following clause:

                      Liquidated Damages (SEP 1999)

    In case of failure on the part of the Lessor to complete the work 
within the time fixed in the lease contract or letter of award, the 
Lessor shall pay the Government as fixed and agreed liquidated damages, 
pursuant to this clause, the sum $___ for each and every calendar day 
that the delivery is delayed beyond the date specified for delivery of 
all the space ready for occupancy by the Government. this remedy is not 
exclusive and is in addition to any other remedies which may be 
available under this lease or at law.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-16  Adjustment for Vacant Premises.

    As prescribed in 570.703, insert the following clause:

                Adjustment for Vacant Premises (JUN 2011)

    (a) If the Government fails to occupy any portion of the leased 
premises or vacates the premises in whole or in part before the lease 
term expires, the rental rate will be reduced. The reduction shall occur 
after the Government gives 30 calendar days notice to the Lessor, and 
shall continue in effect until the Government occupies or reoccupies the 
vacant premises or the lease expires or is terminated.
    (b) The rate will be reduced by that portion of the costs per ABOA 
square foot of operating expenses not required to maintain the space. In 
addition, at the first operating cost adjustment after the notice of 
reduction to the rent, the base cost of services subject to

[[Page 261]]

escalation will be reduced by said amount. In the event that the 
Government occupies or reoccupies the vacant premises on the lease 
anniversary date following the occupation of the vacant premises, the 
base cost of services subject to escalation will be increased by said 
amount.
    (c) The reduction in operating costs shall be negotiated and stated 
in the lease.

                             (End of clause)

[76 FR 30846, May 27, 2011]



552.270-17  Delivery and Condition.

    As prescribed in 570.703, insert the following clause:

                    Delivery and Condition (SEP 1999)

    (a) Unless the Government elects to have the space occupied in 
increments, the space must be delivered ready for occupancy as a 
complete unit. The Government reserves the right to determine when the 
space is substantially complete.
    (b) If the premises do not in every respect comply with the 
provisions of this lease the Contracting Officer may, in accordance with 
the Failure in Performance clause of this lease, elect to reduce the 
rent payments.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-18  Default in Delivery--Time Extensions.

    As prescribed in 570.703, insert the following clause:

             Default In Delivery--Time Extensions (SEP 1999)

    (a) With respect to Lessor's obligation to deliver the premises 
substantially complete by the delivery date, time is of the essence. If 
the Lessor fails to work diligently to ensure its substantial completion 
by the delivery date or fails to substantially complete the work by such 
date, the Government may by notice to the Lessor terminate this lease. 
Such termination is effective when received by Lessor. The Lessor and 
the Lessor's sureties, if any, are jointly and severally liable for any 
damages to the Government resulting from such termination, as provided 
in this clause. The Government is entitled to the following damages:
    (1) The Government's aggregate rent, estimated real estate tax, and 
operating cost adjustments for the firm term and all option terms of its 
replacement lease or leases, in excess of the aggregate rent and 
estimated real estate tax and operating cost adjustments for the term. 
If the Government procures replacement premises for a term (including 
all option terms) in excess of this lease term, the Lessor is not liable 
for excess Government rent or adjustments during such excess lease term.
    (2) All administrative and other costs the Government incurs in 
procuring a replacement lease or leases.
    (3) Other, additional relief provided for in this lease, at law, or 
in equity.
    (b) Damages to which the Government is entitled under this clause 
are due and payable thirty (30) days following the date Lessor receives 
notice from the Contracting Officer specifying such damages.
    (c) Delivery by Lessor of less than the minimum ABOA square footage 
required by this lease shall in no event be construed as substantial 
completion, except as the Contracting Officer permits.
    (d) The Government shall not terminate this lease under this clause 
nor charge the Lessor with damages under this clause, if (1) the delay 
in substantially completing the work arises from excusable delays, and 
(2) the Lessor within 10 days from the beginning of any such delay 
(unless extended in writing by the Contracting Officer) provides notice 
to the Contracting Officer of the causes of delay. The Contracting 
Officer shall ascertain the facts and the extent of delay. If the facts 
warrant, the Contracting Officer shall extend the delivery date, to the 
extent of such delay at no additional costs to the Government. A time 
extension is the sole remedy of the Lessor.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-19  Progressive Occupancy.

    As prescribed in 570.703, insert the following clause:

                    Progressive Occupancy (SEP 1999)

    The Government shall have the right to elect to occupy the space in 
partial increments prior to the substantial completion of the entire 
leased premises, and the Lessor agrees to schedule its work so as to 
deliver the space incrementally as elected by the Government. The 
Government shall pay rent commencing with the first business day 
following substantial completion of the entire leased premise unless the 
Government has elected to occupy the leased premises incrementally. In 
case of incremental occupancy, the Government shall pay rent pro rata 
upon the first business day following substantial completion of each 
incremental unit. Rental payments shall become due on the first workday 
of the month following the month

[[Page 262]]

in which an increment of space is substantially complete, except that 
should an increment of space be substantially completed after the 
fifteenth day of the month, the payment due date will be the first 
workday of the second month following the month in which it was 
substantially complete. The commencement date of the firm lease term 
will be a complete determined from all rent commencement dates.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-20  Payment.

    As prescribed in 570.703, insert the following clause:

                           Payment (SEP 1999)

    (a) When space is offered and accepted, ABOA square footage 
delivered will be confirmed by either:
    (1) The Government's measurement of plans submitted by the 
successful offeror as approved by the Government, and an inspection of 
the space to verify that the delivered space conforms with such plans.
    (2) A mutual on-site measurement of the space if the Contracting 
Officer determines it necessary.
    (b) The Government will not pay for space in excess of the amount of 
ABOA square footage stated in the lease.
    (c) If the amount of ABOA square footage delivered is less than the 
amount agreed to in the lease, the lease will be modified to reflect the 
amount of ABOA space delivered and the annual rental will be adjusted as 
follows:
    ABOA square feet not delivered multiplied by one plus the common 
area factor (CAF), multiplied by the rate per rentable square foot 
(RSF). That is:

  x  (1+CAF)  x  Rate per RSF = Reduction in Annual Rent.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-21  Effect of Acceptance and Occupancy.

    As prescribed in 570.703, insert the following clause:

              Effect of Acceptance and Occupancy (SEP 1999)

    Neither the Government's acceptance of the premises for occupancy, 
nor the Government's occupancy thereof, shall be construed as a waiver 
of any requirement of or right of the Government under this Lease, or as 
otherwise prejudicing the Government with respect to any such 
requirement or right.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-22  Default by Lessor During the Term.

    As prescribed in 570.703, insert the following clause:

              Default By Lessor During the Term (SEP 1999)

    (a) Each of the following shall constitute a default by Lessor under 
this lease:
    (1) Failure to maintain, repair, operate or service the premises as 
and when specified in this lease, or failure to perform any other 
requirement of this lease as and when required provided any such failure 
shall remain uncured for a period of thirty (30) days next following 
Lessor's receipt of notice thereof from the Contracting Officer or an 
authorized representative.
    (2) Repeated and unexcused failure by Lessor to comply with one or 
more requirements of this lease shall constitute a default 
notwithstanding that one or all such failures shall have been timely 
cured pursuant to this clause.
    (b) If a default occurs, the Government may, by notice to Lessor, 
terminate this lease for default and if so terminated, the Government 
shall be entitled to the damages specified in the Default in Delivery-
Time Extensions clause.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-23  Subordination, Nondisturbance and Attornment.

    As prescribed in 570.703, insert the following clause:

         Subordination, Nondisturbance and Attornment (SEP 1999)

    (a) Lessor warrants that it holds such title to or other interest in 
the premises and other property as is necessary to the Government's 
access to the premises and full use and enjoyment thereof in accordance 
with the provisions of this lease. Government agrees, in consideration 
of the warranties and conditions set forth in this clause, that this 
lease is subject and subordinate to any and all recorded mortgages, 
deeds of trust and other liens now or hereafter existing or imposed upon 
the premises, and to any renewal, modification or extension thereof. It

[[Page 263]]

is the intention of the parties that this provision shall be self-
operative and that no further instrument shall be required to effect the 
present or subsequent subordination of this lease. Government agrees, 
however, within twenty (20) business days next following the Contracting 
Officer's receipt of a written demand, to execute such instruments as 
Lessor may reasonably request to evidence further the subordination of 
this lease to any existing or future mortgage, deed of trust or other 
security interest pertaining to the premises, and to any water, sewer or 
access easement necessary or desirable to serve the premises or 
adjoining property owned in whole or in part by Lessor if such easement 
does not interfere with the full enjoyment of any right granted the 
Government under this lease.
    (b) No such subordination, to either existing or future mortgages, 
deeds of trust or other lien or security instrument shall operate to 
affect adversely any right of the Government under this lease so long as 
the Government is not in default under this lease. Lessor will include 
in any future mortgage, deed of trust or other security instrument to 
which this lease becomes subordinate, or in a separate nondisturbance 
agreement, a provision to the foregoing effect. Lessor warrants that the 
holders of all notes or other obligations secured by existing mortgages, 
deeds of trust or other security instruments have consented to the 
provisions of this clause, and agrees to provide true copies of all such 
consents to the Contracting Officer promptly upon demand.
    (c) In the event of any sale of the premises or any portion thereof 
by foreclosure of the lien of any such mortgage, deed of trust or other 
security instrument, or the giving of a deed in lieu of foreclosure, the 
Government will be deemed to have attorned to any purchaser, purchasers, 
transferee or transferees of the premises or any portion thereof and its 
or their successors and assigns, and any such purchasers and transferees 
will be deemed to have assumed all obligations of the Lessor under this 
lease, so as to establish direct privity of estate and contract between 
Government and such purchasers or transferees, with the same force, 
effect and relative priority in time and right as if the lease had 
initially been entered into between such purchasers or transferees and 
the Government; provided, further, that the Contracting Officer and such 
purchasers or transferees shall, with reasonable promptness following 
any such sale or deed delivery in lieu of foreclosure, execute all such 
revisions to this lease, or other writings, as shall be necessary to 
document the foregoing relationship.
    (d) None of the foregoing provisions may be deemed or construed to 
imply a waiver of the Government's rights as a sovereign.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-24  Statement of Lease.

    As prescribed in 570.703, insert the following clause:

                      Statement of Lease (SEP 1999)

    (a) The Contracting Officer will, within thirty (30) days next 
following the Contracting Officer's receipt of a joint written request 
from Lessor and a prospective lender or purchaser of the building, 
execute and deliver to Lessor a letter stating that the same is issued 
subject to the conditions stated in this clause and, if such is the 
case, that (1) the lease is in full force and effect; and (2) the date 
to which the rent and other charges have been paid in advance, if any; 
and (3) whether any notice of default has been issued.
    (b) Letters issued pursuant to this clause are subject to the 
following conditions:
    (1) That they are based solely upon a reasonably diligent review of 
the Contracting Officer's lease file as of the date of issuance;
    (2) That the Government shall not be held liable because of any 
defect in or condition of the premises or building;
    (3) That the Contracting Officer does not warrant or represent that 
the premises or building comply with applicable Federal, State and local 
law; and
    (4) That the Lessor, and each prospective lender and purchaser are 
deemed to have constructive notice of such facts as would be 
ascertainable by reasonable prepurchase and precommitment inspection of 
the Premises and Building and by inquiry to appropriate Federal, State 
and local Government officials.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30846, May 27, 2011]



552.270-25  Substitution of Tenant Agency.

    As prescribed in 570.703, insert the following clause:

                Substitution of Tenant Agency (SEP 1999)

    The Government may, at any time and from time to time, substitute 
any Government agency or agencies for the Government agency or agencies, 
if any, named in the lease.

[[Page 264]]

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30847, May 27, 2011]



552.270-26  No Waiver.

    As prescribed in 570.703, insert the following clause:

                          No Waiver (SEP 1999)

    No failure by either party to insist upon the strict performance of 
any provision of this lease or to exercise any right or remedy 
consequent upon a breach thereof, and no acceptance of full or partial 
rent or other performance by either party during the continuance of any 
such breach shall constitute a waiver of any such breach of such 
provision.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30847, May 27, 2011]



552.270-27  Integrated Agreement.

    As prescribed in 570.703, insert the following clause:

                     Integrated Agreement (SEP 1999)

    This Lease, upon execution, contains the entire agreement of the 
parties and no prior written or oral agreement, express or implied, 
shall be admissible to contradict the provisions of the Lease.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30847, May 27, 2011]



552.270-28  Mutuality of Obligation.

    As prescribed in 570.703, insert the following clause:

                   Mutuality of Obligation (SEP 1999)

    The obligations and covenants of the Lessor, and the Government's 
obligation to pay rent and other Government obligations and covenants, 
arising under or related to this Lease, are interdependent. The 
Government may, upon issuance of and delivery to Lessor of a final 
decision asserting a claim against Lessor, set off such claim, in whole 
or in part, as against any payment or payments then or thereafter due 
the Lessor under this lease. No setoff pursuant to this clause shall 
constitute a breach by the Government of this lease.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30847, May 27, 2011]



552.270-29  Acceptance of Space.

    As prescribed in 570.703, insert the following clause:

                     Acceptance of Space (JUN 2011)

    (a) When the Lessor has completed all alterations, improvements, and 
repairs necessary to meet the requirements of the lease, the Lessor 
shall notify the Contracting Officer. The Contracting Officer or 
designated representative shall promptly inspect the space.
    (b) The Government will accept the space and the lease term will 
begin after determining that the space is substantially complete and 
contains the required ABOA square footage as indicated in the 
solicitation paragraph, Amount and Type of Space.

                             (End of clause)

[64 FR 37229, July 9, 1999, as amended at 76 FR 30847, May 27, 2011]



552.270-30  Price Adjustment for Illegal or Improper Activity.

    As prescribed in 570.703, insert the following clause:

      Price Adjustment for Illegal or Improper Activity (JUN 2011)

    (a) If the head of the contracting activity (HCA) or his or her 
designee determines that there was a violation of subsection 27(a) of 
the Office of Federal Procurement Policy Act, as amended (41 U.S.C. 
423), as implemented in the Federal Acquisition Regulation, the 
Government, at its election, may--
    (1) Reduce the monthly rental under this lease by five percent of 
the amount of the rental for each month of the remaining term of the 
lease, including any option periods, and recover five percent of the 
rental already paid;
    (2) Reduce payments for alterations not included in monthly rental 
payments by five percent of the amount of the alterations agreement; or
    (3) Reduce the payments for violations by a Lessor's subcontractor 
by an amount not to exceed the amount of profit or fee reflected in the 
subcontract at the time the subcontract was placed.
    (b) Prior to making a determination as set forth above, the HCA or 
designee shall provide to the Lessor a written notice of the action 
being considered and the basis thereof. The Lessor shall have a period 
determined by the agency head or designee, but not less than 30 calendar 
days after receipt of such notice, to submit in person, in writing, or 
through a representative, information and argument in opposition to the 
proposed reduction. The agency head or designee may,

[[Page 265]]

upon good cause shown, determine to deduct less than the above amounts 
from payments.
    (c) The rights and remedies of the Government specified herein are 
not exclusive, and are in addition to any other rights and remedies 
provided by law or under this lease.

                             (End of clause)

[76 FR 30847, May 27, 2011]



552.270-31  Prompt Payment.

    As prescribed in 570.703, insert the following clause:

                        Prompt Payment (JUN 2011)

    The Government will make payments under the terms and conditions 
specified in this clause. Payment shall be considered as being made on 
the day a check is dated or an electronic funds transfer is made. All 
days referred to in this clause are calendar days, unless otherwise 
specified.
    (a) Payment due date--(1) Rental payments. Rent shall be paid 
monthly in arrears and will be due on the first workday of each month, 
and only as provided for by the lease.
    (i) When the date for commencement of rent falls on the 15th day of 
the month or earlier, the initial monthly rental payment under this 
contract shall become due on the first workday of the month following 
the month in which the commencement of the rent is effective.
    (ii) When the date for commencement of rent falls after the 15th day 
of the month, the initial monthly rental payment under this contract 
shall become due on the first workday of the second month following the 
month in which the commencement of the rent is effective.
    (2) Other payments. The due date for making payments other than rent 
shall be the later of the following two events:
    (i) The 30th day after the designated billing office has received a 
proper invoice from the Contractor.
    (ii) The 30th day after Government acceptance of the work or 
service. However, if the designated billing office fails to annotate the 
invoice with the actual date of receipt, the invoice payment due date 
shall be deemed to be the 30th day after the Contractor's invoice is 
dated, provided a proper invoice is received and there is no 
disagreement over quantity, quality, or Contractor compliance with 
contract requirements.
    (b) Invoice and inspection requirements for payments other than 
rent. (1) The Contractor shall prepare and submit an invoice to the 
designated billing office after completion of the work. A proper invoice 
shall include the following items:
    (i) Name and address of the Contractor.
    (ii) Invoice date.
    (iii) Lease number.
    (iv) Government's order number or other authorization.
    (v) Description, price, and quantity of work or services delivered.
    (vi) Name and address of Contractor official to whom payment is to 
be sent (must be the same as that in the remittance address in the lease 
or the order).
    (vii) Name (where practicable), title, phone number, and mailing 
address of person to be notified in the event of a defective invoice.
    (2) The Government will inspect and determine the acceptability of 
the work performed or services delivered within seven days after the 
receipt of a proper invoice or notification of completion of the work or 
services unless a different period is specified at the time the order is 
placed. If actual acceptance occurs later, for the purpose of 
determining the payment due date and calculation of interest, acceptance 
will be deemed to occur on the last day of the seven day inspection 
period. If the work or service is rejected for failure to conform to the 
technical requirements of the contract, the seven days will be counted 
beginning with receipt of a new invoice or notification. In either case, 
the Contractor is not entitled to any payment or interest unless actual 
acceptance by the Government occurs.
    (c) Interest Penalty. (1) An interest penalty shall be paid 
automatically by the Government, without request from the Contractor, if 
payment is not made by the due date.
    (2) The interest penalty shall be at the rate established by the 
Secretary of the Treasury under Section 12 of the Contract Disputes Act 
of 1978 (41 U.S.C. 611) that is in effect on the day after the due date. 
This rate is referred to as the ``Renegotiation Board Interest Rate,'' 
and it is published in the Federal Register semiannually on or about 
January 1 and July 1. The interest penalty shall accrue daily on the 
payment amount approved by the Government and be compounded in 30-day 
increments inclusive from the first day after the due date through the 
payment date.
    (3) Interest penalties will not continue to accrue after the filing 
of a claim for such penalties under the clause at 52.233-1, Disputes, or 
for more than one year. Interest penalties of less than $1.00 need not 
be paid.
    (4) Interest penalties are not required on payment delays due to 
disagreement between the Government and Contractor over the payment 
amount or other issues involving contract compliance or on amounts 
temporarily withheld or retained in accordance with the terms of the 
contract. Claims involving disputes, and any interest that may be 
payable, will be resolved in accordance with the clause at 52.233-1, 
Disputes.
    (d) Overpayments. If the Lessor becomes aware of a duplicate payment 
or that the Government has otherwise overpaid on a payment, the 
Contractor shall--

[[Page 266]]

    (1) Return the overpayment amount to the payment office cited in the 
contract along with a description of the overpayment including the--
    (i) Circumstances of the overpayment (e.g., duplicate payment, 
erroneous payment, liquidation errors, date(s) of overpayment);
    (ii) Affected lease number;
    (iii) Affected lease line item or subline item, if applicable; and
    (iv) Lessor point of contact.
    (2) Provide a copy of the remittance and supporting documentation to 
the Contracting Officer.

                             (End of clause)

    Alternate I (SEP 1999). If Alternate I is used, subparagraph (a)(1) 
of the basic clause should be designated as paragraph (a) and 
subparagraph (a)(2) and paragraph (b) should be deleted. Paragraph (c) 
of the basic clause should be redesignated as (b).

[76 FR 30847, May 27, 2011]



552.270-32  Covenant Against Contingent Fees.

    As prescribed in 570.703, insert the following clause:

               Covenant Against Contingent Fees (JUN 2011)

    (a) The Contractor warrants that no person or agency has been 
employed or retained to solicit or obtain this contract upon an 
agreement or understanding for a contingent fee, except a bona fide 
employee or agency. For breach or violation of this warranty, the 
Government shall have the right to annul this contract without liability 
or, in its discretion, to deduct from the contract price or 
consideration, or otherwise recover the full amount of the contingent 
fee.
    (b) Bona fide agency, as used in this clause, means an established 
commercial or selling agency (including licensed real estate agents or 
brokers), maintained by a Contractor for the purpose of securing 
business, that neither exerts nor proposes to exert improper influence 
to solicit or obtain Government contracts nor holds itself out as being 
able to obtain any Government contract or contracts through improper 
influence.
    Bona fide employee, as used in this clause, means a person, employed 
by a Contractor and subject to the Contractor's supervision and control 
as to time, place, and manner of performance, who neither exerts nor 
proposes to exert improper influence to solicit or obtain Government 
contracts nor holds out as being able to obtain any Government contract 
or contracts through improper influence.
    Contingent fee, as used in this clause, means any commission, 
percentage, brokerage, or other fee that is contingent upon the success 
that a person or concern has in securing a Government contract.
    Improper influence, as used in this clause, means any influence that 
induces or tends to induce a Government employee or officer to give 
consideration or to act regarding a Government contract on any basis 
other than the merits of the matter.

                             (End of clause)

[76 FR 30847, May 27, 2011]



PART 553_FORMS--Table of Contents





                  Subpart 553.2_Illustrations of Forms

    Authority: 40 U.S.C. 486(c).

    Source: 64 FR 37265, July 9, 1999, unless otherwise noted.



553.300  Scope of subpart.

    Standard and GSA forms prescribed or referenced in the text of this 
chapter are illustrated in and made a part of the General Services 
Administration Acquisition Manual. The forms are not illustrated in 
Title 48, Chapter 5, of the Code of Federal Regulations. Copies may be 
obtained from the Director of the Office of GSA Acquisition Policy 
(MVP), 1800 F Street, NW, Washington, DC 20405.

[[Page 267]]



                SUBCHAPTER I_SPECIAL CONTRACTING PROGRAMS





PART 570_ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY
--Table of Contents



                          Subpart 570.1_General

Sec.
570.101  Applicability.
570.102  Definitions.
570.103  Authority to lease.
570.104  Competition.
570.105  Methods of contracting.
570.105-1  Contracting by negotiation.
570.105-2  Criteria for the use of two-phase design-build.
570.106  Advertising, publicizing, and notifications to Congress.
570.106-1  Synopsis of lease awards.
570.107  Oral presentations.
570.108  Responsibility determination.
570.109  Certifications.
570.110  Cost or pricing data and information other than cost or pricing 
          data.
570.111  Inspection and acceptance.
570.112  Awards to Federal employees.
570.113  Disclosure of mistakes after award.
570.114  Protests.
570.115  Novation and change of ownership.
570.116  Contract format.
570.117  Sustainable requirements for lease acquisition.
570.117-1  Federal leadership in environmental, energy, and economic 
          performance.
570.117-2  Guiding principles for federal leadership in high performance 
          and sustainable buildings.

          Subpart 570.2_Simplified Lease Acquisition Procedures

570.201  Purpose.
570.202  Policy.
570.203  Procedures.
570.203-1  Market survey.
570.203-2  Competition.
570.203-3  Soliciting offers.
570.203-4  Negotiation, evaluation, and award.

  Subpart 570.3_Acquisition Procedures for Leasehold Interests in Real 
        Property Over the Simplified Lease Acquisition Threshold

570.301  Market survey.
570.302  Description of requirements.
570.303  Solicitation for offers.
570.303-1  Preparing the SFO.
570.303-2  Issuing the SFO.
570.303-3  Late offers, modifications of offers, and withdrawals of 
          offers.
570.303-4  Changes to SFOs.
570.304  General source selection procedures.
570.305  Two-phase design-build selection procedures.
570.306  Evaluating offers.
570.307  Negotiations.
570.308  Award.
570.309  Debriefings.

    Subpart 570.4_Special Aspects of Contracting for Continued Space 
                              Requirements

570.401  Renewal options.
570.402  Succeeding leases.
570.402-1  General.
570.402-2  Publicizing/Advertising.
570.402-3  Market survey.
570.402-4  No potential acceptable locations.
570.402-5  Potential acceptable locations.
570.402-6  Cost-benefit analysis.
570.403  Expansion requests.
570.404  Superseding leases.
570.405  Lease extensions.

   Subpart 570.5_Special Aspects of Contracting for Lease Alterations

570.501  General.
570.502  Alterations by the lessor.
570.502-1  Justification and approval requirements.
570.502-2  Procedures.
570.503  Alterations by the Government or through a separate contract.

 Subpart 570.6_Contracting for Overtime Services and Utilities in Leases

570.601  General.

       Subpart 570.7_Solicitation Provisions and Contract Clauses

570.701  FAR provisions and clauses.
570.702  GSAR solicitation provisions.
570.703  GSAR contract clauses.
570.704  Deviations to provisions and clauses.

                           Subpart 570.8_Forms

570.801  Standard forms.
570.802  GSA forms.

    Authority: 40 U.S.C. 121(c).

    Source: 64 FR 37265, July 9, 1999, unless otherwise noted.



                          Subpart 570.1_General



570.101  Applicability.

    (a) This part applies to acquisitions of leasehold interests in real 
property except:

[[Page 268]]

    (1) Leasehold interests acquired by the power of eminent domain or 
by donation.
    (2) Acquisition of leasehold interests in bare or unimproved land.
    (b) In addition, the GSAR rules in the following table apply. Other 
provisions of 48 CFR Chapter 5 (GSAR) do not apply to leases of real 
property unless specifically cross-referenced in this part 570.

  GSAR Rules Applicable to Acquisitions of Leasehold Interests in Real
                                Property
501               515.209-70            519.12           536.271
502               515.305               522.805          537.2
503               517.202               522.807          552
509.4             517.207               532.111          553
514.407           519.7                 533              ...............
 

    (c) [Reserved]
    (d) The FAR does not apply to leasehold acquisitions of real 
property. Where referenced in this part, FAR provisions have been 
adopted based on a statutory requirement applicable to such lease 
acquisitions or as a matter of policy, including, but not limited to 
``Federal agency procurement'' as defined at FAR 3.104.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30848, May 27, 2011]



570.102  Definitions.

    ANSI/BOMA Office Area (ABOA) means the area ``where a tenant 
normally houses personnel, and/or furniture, for which a measurement is 
to be computed,'' as stated by the American National Standards 
Institute/Building Owners and Managers Association (ANSI/BOMA) 
publication, Z65.1-1996.
    Contract means lease.
    Contractor means lessor.
    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.
    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 operational 
services provided by the landlord.
    Lease acquisition means the acquiring by lease of an interest in 
improved real property for use by the Government, whether the space 
already exists or must be constructed.
    Lease extension means extension of the expiration date of a lease to 
provide for continued occupancy on a short term basis.
    Lease renewal (option) means the right, but not the obligation of 
the Government to continue a lease upon specified terms and conditions, 
including lease term and rent.
    Lessee or tenant means the United States of America.
    Operational services means services that support use of a leased 
property, such as heating, ventilation, air condition, utilities, and 
custodial services.
    Simplified lease acquisition procedures mean the procedures for 
awarding leases at or below the simplified lease acquisition threshold.
    Simplified lease acquisition threshold means the simplified 
acquisition threshold (see FAR 2.101), when applied to the average 
annual amount of rent for the term of the lease, including option 
periods and excluding the cost of services.
    Small business means a concern including affiliates, which is 
organized for profit, is independently-owned and operated, is not 
dominant in the field of leasing commercial real estate, and that has 
annual average gross receipts for the preceding three fiscal years which 
are less than the size standard established by the Small Business 
Administration pursuant to 13 CFR Part 121. The size standards may be 
found at https://www.sba.gov/content/small-business-size-standards. For 
most lease procurements, the NAICS code is 531190.
    Solicitation for Offers (SFO) means a request for proposals.
    Substantially as follows or substantially the same as, when used in 
prescribing a provision or clause, means that the contracting officer 
may prepare and use a variation of that provision or clause to 
accommodate requirements peculiar to an individual acquisition. The 
variation must include the salient features of the FAR or GSAR provision 
or clause. It must also be consistent with the intent, principle, and 
substance of the FAR or GSAR provision or clause and related coverage on 
the subject matter.

[[Page 269]]

    Succeeding lease means a lease whose effective date immediately 
follows the expiration date of an existing lease for space in the same 
building.
    Superseding lease means a lease that replaces an existing lease, 
prior to the scheduled expiration of the existing lease term.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30848, May 27, 2011; 81 
FR 1533, Jan. 13, 2016]



570.103  Authority to lease.

    (a) The Administrator of General Services is authorized by 40 U.S.C. 
Sec. 585 to enter into a lease agreement for the accommodation of a 
Federal agency in a building (or improvement) which is in existence or 
being erected by the lessor for the accommodation of the Federal agency. 
The lease agreement may not bind the Government for more than 20 years.
    (b) The contracting officer has exclusive authority to enter into 
and administer leases on the Government's behalf to the extent provided 
in the certificate of appointment as a contracting officer. Nothing in 
this paragraph is intended to limit the contracting officer's authority 
to designate, consistent with statute and regulation, a contracting 
officer's representative.

[76 FR 30848, May 27, 2011]



570.104  Competition.

    Unless the contracting officer uses the simplified procedures in 
subpart 570.2, the competition requirements of FAR part 6 apply to 
acquisition of leasehold interests in real property.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30849, May 27, 2011]



570.105  Methods of contracting.



570.105-1  Contracting by negotiation.

    Contracting by negotiation is appropriate for acquiring space in a 
building through a lease contract. The contracting officer will usually 
need to conduct discussions with offerors about their proposals and 
consider factors other than price in making the award.

[76 FR 30849, May 27, 2011]



570.105-2  Criteria for the use of two-phase design-build.

    The contracting officer may use the two-phase design-build selection 
procedures in 41 U.S.C. 253m for lease construction projects. This 
includes lease construction projects with options to purchase the real 
property leased. Use the procedures in 41 U.S.C. 253m and FAR 36.3 when 
the conditions in (a) and (b) below are met:
    (a) The contracting officer anticipates that the lease will involve 
the design and construction of a building, facility, or work for lease 
to the Government.
    (b) The contracting officer determines whether the procedures are 
appropriate for entering into a lease construction contract based on the 
following:
    (1) The contracting officer expects to receive three or more offers.
    (2) Offerors will need to perform design work before developing a 
price.
    (3) Offerors will incur a substantial amount of expense in preparing 
offers.
    (4) The contracting officer considers criteria such as the 
following:
    (i) The extent to which the project requirements have been 
adequately defined.
    (ii) The time constraints for delivery of the project.
    (iii) The capability and experience of potential contractors.
    (iv) The past performance of potential contractors.
    (v) The suitability of the project for use of the two-phase 
selection procedures.
    (vi) The capability of the agency to manage the two-phase selection 
process.
    (vii) Other criteria established by the HCA.
    (c) See 570.305 for additional information.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30849, May 27, 2011]



570.106  Advertising, publicizing, and notifications to Congress.

    (a) If a proposed acquisition is not exempt under FAR 5.202 or GSAR

[[Page 270]]

570.106(e), and is for a leasehold interest in real property estimated 
to exceed 10,000 square feet, then the contracting officer must 
publicize the proposed acquisition in http://www.FBO.gov.
    (b) For leasehold acquisitions where the solicitation requires the 
construction of a new building on a preselected site, the contracting 
officer, in accordance with the timeframes established in FAR 5.203, 
must publicize the proposed acquisition in http://www.FBO.gov regardless 
of size or value.
    (c) For leasehold acquisitions not subject to a square foot 
measurement (e.g., antennas, piers, parking), contracting officers must 
publicize the proposed acquisition in http://www.FBO.gov when the 
contract action is expected to exceed $25,000, unless an exception under 
FAR 5.202 applies.
    (d) Other than as identified in paragraphs (a) through (c) of this 
section, the contracting officer need not publicize the proposed 
acquisition of a leasehold interest in real property, including 
expansion requests within the scope of a lease (see 570.403), lease 
extensions under the conditions defined in 570.405, and building 
alterations within the scope of a lease (see 570.5). However, the 
contracting officer may publicize proposed lease acquisitions of any 
dollar value or square footage in http://www.FBO.gov or local newspapers 
if, in the opinion of the contracting officer, doing so is necessary to 
promote competition.
    (e) The contracting officer may issue a consolidated advertisement 
for multiple leasing actions.
    (f) Except as otherwise provided in paragraph (b) of this section, 
where publicizing of the proposed acquisition is required, the notice 
shall be published in http://www.FBO.gov not less than three calendar 
days prior to issuance of a solicitation.
    (g) Except as otherwise provided in paragraph (b) of this section 
and as set forth in paragraphs (g) and (h) of this section, the 
contracting officer shall provide offerors not less than 20 calendar 
days between solicitation issuance and the date established for receipt 
of initial offers.
    (1) For a proposed acquisition using simplified lease acquisition 
procedures (see 570.2), consider the individual acquisition and 
establish a reasonable response time.
    (2) In cases of unusual and compelling urgency (FAR 6.303-2), 
provide as much time as reasonably possible under the circumstances and 
document the contract file.
    (h) If a Member of Congress has specifically requested notification 
of award, the contracting officer must provide award notifications in 
accordance with 505.303.

[76 FR 30849, May 27, 2011]



570.106-1  Synopsis of lease awards.

    (a) Except for lease actions described in paragraph (b) of this 
section, contracting officers must synopsize in http://www.FBO.gov 
awards exceeding $25,000 total contract value that are likely to result 
in the award of any subcontracts. However, the dollar threshold is not a 
prohibition against publicizing an award of a smaller amount when 
publicizing would be advantageous to industry or to the Government.
    (b) A notice is not required if--
    (1) The notice would disclose the occupant agency's needs and the 
disclosure of such needs would compromise the national security; or
    (2) The lease--
    (i) Is for an amount not greater than the simplified lease 
acquisition threshold;
    (ii) Was made through a means where access to the notice of proposed 
lease action was provided through http://www.FBO.gov; and
    (iii) Permitted the public to respond to the solicitation 
electronically.
    (c) Justifications for other than full and open competition must be 
posted in http://www.FBO.gov. Information exempt from public disclosure 
must be redacted.

[76 FR 30849, May 27, 2011]



570.107  Oral presentations.

    The contracting officer may require oral presentations for 
acquisitions of

[[Page 271]]

leasehold interests in real property. Follow the procedures in FAR 
15.102.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30849, May 27, 2011]



570.108  Responsibility determination.

    (a) Determine that the prospective awardee is responsible with 
respect to the lease under consideration. The standards in FAR 9.104 
apply. As part of the determination that a prospective contractor is 
otherwise qualified and eligible for award, review exclusions in the 
System for Award Management (SAM).
    (b) The contracting officer's signature on the contract is deemed an 
affirmative determination.
    (c) If the contracting officer finds an offeror nonresponsible, sign 
and place in the contract file a determination of nonresponsibility. 
State the basis for the determination.
    (d) If the contracting officer finds a small business concern 
nonresponsible, the procedures at FAR 19.6 apply. Place all documents 
and reports supporting a determination of responsibility or 
nonresponsibility in the lease file.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30849, May 27, 2011; 81 
FR 1533, Jan. 13, 2016]



570.109  Certifications.

    Before awarding a lease, review applicable representations and 
certifications for compliance with statute and regulations.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30849, May 27, 2011]



570.110  Cost or pricing data and information other than cost or
pricing data.

    (a) The policies and procedures of FAR 15.403 apply to lease 
contract actions.
    (b) FAR 15.403-1 defines exceptions to and waivers for submitting 
cost or pricing data. Most leasing actions will have adequate price 
competition. For price analysis of offered rental rates, the contracting 
officer may use a market survey, an appraisal conducted using accepted 
real property appraisal procedures to establish a market price for 
comparison, or other relevant market research data. For price analysis 
of offered tenant improvement costs, obtain two offers or cost and 
pricing data.
    (c) In exceptional cases, the requirement for submission of 
certified cost or pricing data may be waived under FAR 15.403-1(c)(4).
    (d) If cost or pricing data are required, follow the procedures in 
FAR 15.403-4 and 15.406-2.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30850, May 27, 2011]



570.111  Inspection and acceptance.

    Before accepting the space, the contracting officer must verify that 
the space complies with the Government's requirements and specifications 
and document this in an inspection report. The inspection and acceptance 
document must contain the square footage accepted and the acceptance 
date. Include the inspection and acceptance in the contract file. When 
space such as piers, antennas, and parking are leased, square footage 
may not be the manner in which the amount of space is specified; 
therefore, document that the space complies with the Government's 
written requirements.

[76 FR 30850, May 27, 2011]



570.112  Awards to Federal employees.

    If the contracting officer receives an offer from an officer or 
employee of the Government, follow the procedures in FAR 3.6.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30850, May 27, 2011]



570.113  Disclosure of mistakes after award.

    If a mistake in a lessor's offer is discovered after award, the 
contracting officer should process it substantially in accordance with 
FAR 14.407-4 and GSAM 514.407-4.

[76 FR 30850, May 27, 2011]



570.114  Protests.

    FAR 33.1 and 533.1 apply to protests of lease acquisitions.



570.115  Novation and change of ownership.

    In the event of a transfer of ownership of the leased premises or a 
change

[[Page 272]]

in the lessor's legal name, FAR 42.12 applies.

[76 FR 30850, May 27, 2011]



570.116  Contract format.

    The uniform contract format is not required for leases of real 
property.

[76 FR 30850, May 27, 2011]



570.117  Sustainable requirements for lease acquisition.

    Contracting officers must include sustainable design requirements 
appropriate for the type of leasing action in the solicitations for 
offers. Contracting officers can find solicitation requirements and 
instructions on http://www.gsa.gov/leasing under Leasing Policies and 
Procedures, Green Leasing, and in the Leasing Desk Guide to assist them 
in complying with GSA's sustainable requirements identified in this 
part.

[76 FR 30850, May 27, 2011]



570.117-1  Federal leadership in environmental, energy, and economic
performance.

    In order to create a clean energy economy that will increase our 
Nation's prosperity, promote energy security, protect the interests of 
taxpayers, and safeguard the health of our environment, GSA will 
accomplish all requirements of E.O. 13514 that apply to lease 
acquisition.

[76 FR 30850, May 27, 2011]



570.117-2  Guiding principles for federal leadership in high performance
and sustainable buildings.

    GSA is committed to the design, construction, operation, and 
maintenance of leased space that comply with all of the following 
Guiding Principles:
    (a) Employ Integrated Design Principles;
    (b) Optimize Energy Performance;
    (c) Protect and Conserve Water;
    (d) Enhance Indoor Environmental Quality; and
    (e) Reduce the Environmental Impact of Building Materials.

[76 FR 30850, May 27, 2011]



          Subpart 570.2_Simplified Lease Acquisition Procedures



570.201  Purpose.

    This subpart prescribes simplified procedures for small leases. 
These procedures reduce administrative costs, while improving efficiency 
and economy, when acquiring small leasehold interests in real property.



570.202  Policy.

    Use simplified lease acquisition procedures to the maximum extent 
practicable for actions at or below the simplified lease acquisition 
threshold.



570.203  Procedures.



570.203-1  Market survey.

    Conduct a market survey to identify potential sources. Use 
information available in GSA or from other sources to identify locations 
that will meet the Government's requirements.



570.203-2  Competition.

    (a) To the maximum extent practicable, the contracting officer must 
solicit at least three sources to promote competition. If there are 
repeated requirements for space in the same market, invite two sources, 
if practicable, that are not included in the most recent solicitation to 
submit offers.
    (b) If the contracting officer solicits only one source, document 
the file to explain the lack of competition.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30850, May 27, 2011]



570.203-3  Soliciting offers.

    (a) The contracting officer must solicit offers by providing each 
prospective offeror a proposed short form lease GSA Form 3626 or SFO. 
The short form lease or SFO must:
    (1) Describe the Government's requirements.
    (2) List all award factors, including price or cost, and any 
significant subfactors that the contracting officer will consider in 
awarding the lease.
    (3) State the relative importance of the evaluation factors and 
subfactors.

[[Page 273]]

    (4) State whether all evaluation factors other than cost or price, 
when combined, are either:
    (i) Significantly more important than cost or price.
    (ii) Approximately equal in importance to cost or price.
    (iii) Significantly less important than cost or price.
    (5) Include either in full text or by reference, applicable FAR 
provisions and contract clauses required by 570.6.
    (6) Include sustainable design requirements.
    (b) As necessary, review with prospective offerors the Government's 
requirements, pricing matters, evaluation procedures and submission of 
offers.

[76 FR 30850, May 27, 2011]



570.203-4  Negotiation, evaluation, and award.

    (a) If the contracting officer needs to conduct negotiations, use 
the procedures in 570.307.
    (b) Evaluate offers in accordance with the solicitation. Evaluate 
prices and document the lease file to demonstrate whether the proposed 
contract prices are fair and reasonable. See 570.110.
    (c) If the total price, including options, exceeds the amount 
established by FAR 15.403-4, consider whether the contracting officer 
needs cost and pricing data to determine that the price is fair and 
reasonable. In most cases, the exceptions at FAR 15.403-1 will apply.
    (d) Regardless of the process used, the contracting officer must 
determine whether the price is fair and reasonable.
    (e) If the total contract value of the lease, including options, 
will exceed the amount established by FAR 19.702(a), the proposed 
awardee must provide an acceptable small business subcontracting plan. 
This requirement does not apply if the proposed awardee is a small 
business concern.
    (f) Make award to the responsible offeror whose proposal represents 
the best value to the Government considering price and other factors 
included in the solicitation.

[76 FR 30850, May 27, 2011]



  Subpart 570.3_Acquisition Procedures for Leasehold Interests in Real 
        Property Over the Simplified Lease Acquisition Threshold



570.301  Market survey.

    Conduct a market survey to identify potential sources. Use 
information available in GSA or from other sources to identify locations 
capable of meeting the Government's requirements.



570.302  Description of requirements.

    (a) The description of requirements depends on the nature of the 
space the agency needs and the market available to satisfy that need.
    (b) The description of requirements must include all the following:
    (1) A statement of the purpose of the lease.
    (2) Functional, performance, or physical requirements.
    (3) Any special requirements.
    (4) The delivery schedule.
    (c) The description must promote full and open competition. Include 
restrictive provisions or conditions only to the extent necessary to 
satisfy the agency's needs or as authorized by law.



570.303  Solicitation for offers.



570.303-1  Preparing the SFO.

    The SFO forms the basis for the lease negotiation process and 
becomes part of the lease. Document each SFO in writing or 
electronically. Include the information necessary to enable prospective 
offerors to prepare proposals. Each SFO, at a minimum, must :
    (a) Describe the Government's requirements.
    (b) State the method the Government will use to measure space.
    (c) Explain how to structure offers.
    (d) Specify a date, time, and place for submission of offers.
    (e) Explain how the Government will evaluate offers.
    (f) Describe the source selection procedures the Government will 
use.
    (g) Include a statement outlining the information the Government may 
disclose in debriefings.
    (h) Include appropriate forms prescribed in 570.8.

[[Page 274]]

    (i) Include sustainable design requirements.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30851, May 27, 2011]



570.303-2  Issuing the SFO.

    Release the SFO to all prospective offerors at the same time. The 
SFO may be released electronically.

[76 FR 30851, May 27, 2011]



570.303-3  Late offers, modifications of offers, and withdrawals of
offers.

    Follow the procedures in FAR 15.208.



570.303-4  Changes to SFOs.

    (a) If the Government's requirements change, either before or after 
receipt of proposals, issue an amendment. Document the amendment using 
the same method as for the SFO, written or electronic.
    (b) If time is critical, you may provide information on SFO 
amendments orally.
    (1) Make a record of the information provided.
    (2) Provide, or attempt to provide, the notice to all offerors or 
prospective offerors on the same day.
    (3) Promptly confirm the information provided orally in a written 
amendment.
    (c) Distribute an amendment as follows:
    (1) If before the proposal due date, send the amendment to all 
prospective offerors who were sent a copy of the SFO.
    (2) If after proposal receipt, send the amendment to each offeror 
who submitted a proposal.
    (d) If an amendment is so substantial that it requires a complete 
revision of the SFO, cancel the SFO, readvertise if required by 570.106, 
and issue a new SFO.
    (e) If there are changes to the Government's requirements for amount 
of space, delineated area, occupancy date, and/or other major aspects of 
the requirements, the contracting officer shall consider whether there 
is a need to readvertise, and to document the file accordingly.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30851, May 27, 2011]



570.304  General source selection procedures.

    (a) These procedures apply to acquisitions of leasehold interests 
except if the contracting officer uses one of the following:
    (1) Simplified lease acquisition procedures authorized by 570.2.
    (2) Two-phase design-build selection procedures authorized by 
570.105-2.
    (b) The contracting officer is designated as the source selection 
official unless the HCA appoints another individual for a particular 
leasing action or group of leasing actions.
    (c) In a trade off procurement, the contracting officer must include 
price or cost to the Government, past performance, the planned 
participation of small disadvantaged business concerns in performance of 
the contract, and other factors as required by FAR 15.304 as evaluation 
factors. The contracting officer may include other evaluation factors as 
needed.
    (d) The evaluation factors and significant subfactors must comply 
with FAR 15.304 and either one of the following:
    (1) FAR 15.101-1 if the contracting officer will use the tradeoff 
process.
    (2) FAR 15.101-2 if the contracting officer will use the lowest 
price technically acceptable source selection process.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30851, May 27, 2011]



570.305  Two-phase design-build selection procedures.

    (a) These procedures apply to acquisitions of leasehold interests if 
the contracting officer uses the two-phase design-build selection 
procedures authorized by 570.105-2. Follow FAR 36.3.
    (b) The SFO must include all the following information:
    (1) The scope of work.
    (2) The evaluation factors and subfactors to be used in evaluating 
phase-one proposals and their relative importance.
    (3) The maximum number of offerors to be selected to submit 
competitive proposals in phase-two.
    (4) The evaluation factors, including cost or price, and subfactors 
to be used in evaluating phase-two proposals and

[[Page 275]]

selecting the successful offeror, and their relative importance.
    (c) The following procedures apply to phase-one evaluation factors:
    (1) Phase one factors include:
    (i) Specialized experience and technical competence.
    (ii) Capability to perform.
    (iii) Past performance of the offeror's team (including architect-
engineer and construction members of the team).
    (iv) The planned participation of small disadvantaged business 
concerns in performance of the contract.
    (v) Other appropriate factors, such as site or location.
    (2) The contracting officer shall not require offerors to submit 
detailed design information or cost or price information in phase one. 
The contracting officer shall not use cost related or price related 
evaluation factors.
    (d) The contracting officer shall set the maximum number of offerors 
to be selected for phase-two to not exceed five unless the contracting 
officer determines that a number greater than five is both:
    (1) In the government's interest.
    (2) Consistent with the purpose and objectives of the two-phase 
selection process.
    (e) In phase-two, require detailed technical and price proposals. 
Evaluate the proposals using the procedures in 570.306.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30851, May 27, 2011]



570.306  Evaluating offers.

    (a) The contracting officer must evaluate offers solely in 
accordance with the factors and subfactors stated in the SFO.
    (b) Evaluate prices and document the lease file to demonstrate that 
the proposed contract price is fair and reasonable. The contracting 
officer must review the elements of the offeror's proposed rent to 
analyze whether the individual elements are realistic and reflect the 
offeror's clear understanding of the work to be performed. The 
contracting officer must discuss any inconsistencies with the offeror. 
If the offeror refuses to support or make any changes to the rent 
proposed, consider the risk to the Government prior to making any lease 
award.
    (c) Evaluate past performance on previous lease projects in 
accordance with 515.305 and FAR 15.305(a)(2). Obtain information 
through:
    (1) Questionnaires tailored to the circumstances of the acquisition;
    (2) Interviews with program managers or contracting officers;
    (3) Other sources; or
    (4) Past performance information collected under FAR 42.15 and 
available through the Past Performance Information Retrieval System 
(PPIRS) at http://www.ppirs.gov.
    (d) The contracting officer may obtain information to evaluate an 
offeror's past performance on subcontracting plan goals and small 
disadvantaged business participation, monetary targets, and 
notifications under FAR 19.1202-4(b) from the following sources:
    (1) The Small Business Administration;
    (2) Information on prior contracts from contracting officers and 
administrative contracting officers;
    (3) Offeror's references; and
    (4) Past performance information collected under FAR 42.15 and 
available through PPIRS.
    (e) Document the evaluation of award factors other than price listed 
in the solicitation. The file must include the basis for evaluation, an 
analysis of each offer, and a summary of findings.
    (f) Also see the requirements in 570.108, 570.109 and 570.111.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30851, May 27, 2011]



570.307  Negotiations.

    (a) Follow the procedures in FAR 15.306 and 15.307 for exchanges 
(including clarifications, communications, negotiations, discussions, 
and revisions).
    (b) Place a written record of all exchanges in the lease file.
    (c) Provide prompt written notice to any offeror excluded from the 
competitive range or otherwise eliminated from the competition in 
accordance with FAR 15.503(a).



570.308  Award.

    (a) Make award to the responsible offeror whose proposal represents 
the best value after evaluation in accordance with the factors and 
subfactors in the SFO.

[[Page 276]]

    (b) Make award in writing and in the timeframe specified in the SFO.
    (1) If the contracting officer cannot make an award in that time, 
request in writing from each offeror an extension of the acceptance 
period through a specific date.
    (2) If time is critical, the contracting officer may request the 
extensions orally. The contracting officer must make a record of the 
request and confirm it promptly in writing.
    (c) Notify unsuccessful offerors in writing or electronically in 
accordance with FAR 15.501 and 15.503(b).
    (d) The source selection authority may reject all proposals received 
in response to an SFO, if doing so is in the best interest of the 
Government.

[76 FR 30851, May 27, 2011]



570.309  Debriefings.

    The procedures of FAR 15.505 and 15.506 apply to leasing actions.



    Subpart 570.4_Special Aspects of Contracting for Continued Space 
                              Requirements



570.401  Renewal options.

    (a) Exercise of options. Before exercising an option to renew, 
follow the procedures in 517.207. The contract must first provide the 
right to renew the lease. If a renewal option was not evaluated as part 
of the lease at award, then the addition of a renewal option during the 
lease term must satisfy the requirements of GSAM 506 regarding full and 
open competition.
    (b) Market information review. Before exercising an option to renew 
a lease, review current market information to determine that the rental 
rate in the option is fair and reasonable.

[76 FR 30851, May 27, 2011]



570.402  Succeeding leases.



570.402-1  General.

    (a) If a succeeding lease for the continued occupancy of space in a 
building does not exceed the simplified lease acquisition threshold, the 
contracting officer may use the simplified procedures in 570.2. Explain 
the absence of competition in the contract file.
    (b) If a succeeding lease will exceed the simplified lease 
acquisition threshold, the contracting officer may enter into the lease 
under either of the following conditions:
    (1) The contracting officer does not identify any potential 
acceptable locations.
    (2) The contracting officer identifies potential acceptable 
locations, but a cost-benefit analysis indicates that award to an 
offeror other than the present lessor will result in substantial 
relocation costs or duplication of costs to the Government, and the 
Government cannot expect to recover such costs through competition.

[76 FR 30852, May 27, 2011]



570.402-2  Publicizing/Advertising.

    The contracting officer must publish a notice if required by 
570.106. The notice should:
    (a) Indicate that the Government's lease is expiring.
    (b) Describe the requirements in terms of type and quantity of 
space.
    (c) Indicate that the Government is interested in considering 
alternative space if economically advantageous, and that otherwise the 
Government intends to pursue a sole source acquisition.
    (d) Advise prospective offerors that the Government will consider 
the cost of moving, alterations, etc., when deciding whether it should 
relocate.
    (e) Provide a contact person for those interested in providing space 
to the Government.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30852, May 27, 2011]



570.402-3  Market survey.

    Conduct a market survey following 570.301.



570.402-4  No potential acceptable locations.

    If the contracting officer does not identify any potential 
acceptable locations through the advertisement or the market survey, 
prepare a written justification to negotiate directly with the present 
lessor. Fully document the efforts to locate alternative sources.

[[Page 277]]

Prepare the justification and obtain approval following FAR 6.3 and 
506.3.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30852, May 27, 2011]



570.402-5  Potential acceptable locations.

    If the contracting officer identifies potential acceptable locations 
through the advertisement or market survey, conduct a cost-benefit 
analysis following the procedures in 570.402-6. Based on the results of 
the cost-benefit analysis, take appropriate action as follows:
    (a) If the cost-benefit analysis indicates that the Government will 
recover relocation costs and duplication of costs through competition, 
develop an SFO and negotiate with all interested parties following 
570.3.
    (b) If the cost-benefit analysis indicates that the Government 
cannot expect to recover relocation costs and duplication of costs 
through competition, prepare a justification for approval in accordance 
with FAR 6.3 and 506.3. Explain both:
    (1) How the contracting officer performed the cost-benefit analysis.
    (2) That the cost-benefit analysis indicates that award to any other 
offeror will likely result in substantial costs to the Government that 
the Government cannot expect to recover through competition.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30852, May 27, 2011]



570.402-6  Cost-benefit analysis.

    (a) The cost-benefit analysis must consider all the following:
    (1) The prices of other potentially available properties.
    (2) Relocation costs, including estimated costs for moving, 
telecommunications, and alterations, amortized over the firm term of the 
lease.
    (3) Duplication of costs to the Government.
    (4) Other appropriate considerations.
    (b) Establish the prices for other potentially available properties 
by requesting each prospective offeror to provide an informational 
quotation for standard space for comparison purposes.
    (1) Adjust the prices quoted for standard space for any special 
requirements.
    (2) You do not need a formal SFO to obtain the informational 
quotation. However, you must provide a general description of the 
Government's needs.
    (3) If you obtain oral quotations, document the following 
information, as a minimum:
    (i) Name and address of the firm solicited.
    (ii) Name of the firm's representative providing the quote.
    (iii) Price(s) quoted.
    (iv) Description of the space and services for which the quote is 
provided.
    (v) Name of the Government employee soliciting the quotation.
    (vi) Date of the conversation.
    (4) Compare the informational quotations to the present lessor's 
price, adjusted to reflect the anticipated price for a succeeding lease.



570.403  Expansion requests.

    (a) If the expansion space is in the general scope of the lease, the 
contracting officer may acquire the space through a modification without 
further justification under FAR 6.3.
    (b) If the expansion space needed is outside the general scope of 
the lease, the contracting officer must determine whether it is more 
prudent to provide the expansion space by supplemental agreement to the 
existing lease or to meet the expansion requirement and existing tenancy 
to the requirement by competitive means.
    (1) Conduct a market survey to determine the availability of 
suitable alternative locations.
    (2) If you identify alternate locations that can satisfy the total 
requirement, perform a cost-benefit analysis to determine whether it is 
in the Government's best interest to relocate. Consider, as appropriate.
    (i) The cost of the alternate space compared to the cost of 
expanding at the existing location.
    (ii) The cost of moving.
    (iii) The cost of duplicating existing improvements.
    (iv) The cost of the unexpired portion of the firm lease term. If a 
termination is possible, use the actual cost of such an action.

[[Page 278]]

    (v) the cost of disruption to the agency's operation.
    (c) If the contracting officer determines not to use competitive 
procedures and the expansion space is outside the general scope of the 
lease:
    (1) If the estimated value of the acquisition does not exceed the 
simplified lease acquisition threshold, document the file as required by 
570.203-2(b).
    (2) If the estimated value of the acquisition exceeds the simplified 
lease acquisition threshold, prepare a justification for approval under 
FAR 6.3 and 506.3.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30852, May 27, 2011]



570.404  Superseding leases.

    (a) Consider executing a superseding lease to replace an existing 
lease when the Government need numerous or detailed modifications to the 
space that would cause complications or substantially change the present 
lease or when market conditions warrant renegotiation of an existing 
lease.
    (b) If the value of the superseding lease exceeds the simplified 
lease acquisition threshold, the justification and approval requirements 
in FAR 6.3 and 506.3 apply. If the cost does not exceed the simplified 
lease acquisition threshold, the contracting officer may use the 
simplified procedures in 570.2 and explain the absence of competition in 
the file.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30852, May 27, 2011]



570.405  Lease extensions.

    (a) This section applies to extension of the term of a lease to 
provide for continued occupancy on a short-term basis.
    (b) If the value of a lease extension will exceed the simplified 
lease acquisition threshold, the justification and approval requirements 
in FAR 6.3 and 506.3 apply. For extensions that will not exceed the 
simplified lease acquisition threshold, the contracting officer may use 
the simplified procedures in 570.2 and explain the absence of 
competition in the file.
    (c) FAR 6.302-1 permits contracting without providing for full and 
open competition when the property or services needed by the agency are 
available from only one responsible source and no other type of property 
or services will satisfy the needs of the agency. This authority may 
apply to lease extensions in situations such as, but not limited to, the 
following:
    (1) The agency occupying the leased space is scheduled to move into 
other Federally controlled space, but encounters unexpected delays in 
preparing the new space for occupancy.
    (2) The Government encounters unexpected delays outside of its 
control in acquiring replacement space.
    (3) The Government is consolidating various agencies and the 
contracting officer needs to extend the terms of some leases to 
establish a common expiration date.
    (4) The agency occupying the space has encountered delays in 
planning for a potential relocation to other federally controlled space 
due to documented organizational, financial, or other uncertainties.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30852, May 27, 2011]



   Subpart 570.5_Special Aspects of Contracting for Lease Alterations



570.501  General.

    (a) The procedures in 570.502 apply to alterations acquired directly 
from a lessor by modification or supplemental lease agreement. This is 
allowed if the following conditions are met:
    (1) The alterations fall within the scope of the lease. Consider 
whether the work can be regarded fairly and reasonably as part of the 
original lease requirement.
    (2) The lessor is willing to perform the proposed alterations at a 
fair and reasonable price.
    (3) It is in the Government's interest to acquire the alterations 
from the lessor.
    (b) If proposed alterations are outside the scope of the existing 
lease, decide whether to acquire the alterations through either:
    (1) A supplemental lease agreement, as justified and approved under 
570.502-1.
    (2) Government performance or a separate contract. The lease must 
first

[[Page 279]]

provide the Government the right to perform alterations to the leased 
space.

[64 FR 37265, July 9, 1999, as amended at 76 FR 30852, May 27, 2011]



570.502  Alterations by the lessor.



570.502-1  Justification and approval requirements.

    If the proposed alterations are outside the general scope of the 
lease and the contracting officer plans to acquire them from the lessor 
without competition, the following justification and approval 
requirements apply:
    (a) If the alteration project will not exceed the micro-purchase 
threshold identified in FAR 2.101(b), no justification and approval is 
required.
    (b) If the alteration project will exceed the micro-purchase 
threshold identified in FAR 2.101(b), but not the simplified lease 
acquisition threshold, the contracting officer may use simplified 
acquisition procedures and explain the absence of competition in the 
file.
    (c) If the alteration project will exceed the simplified lease 
acquisition threshold, the justification and approval requirements in 
FAR 6.3 and 506.3 apply.

[76 FR 30852, May 27, 2011]



570.502-2  Procedures.

    (a) Scope of work. The contracting officer must prepare a scope of 
work for each alteration project.
    (b) Independent Government estimate. The contracting officer must 
obtain an independent Government estimate for each alteration project, 
including changes to existing alteration agreements with the lessor.
    (c) Request for proposal. (1) The contracting officer must provide 
the scope of work to the lessor, including any plans and specifications, 
and request a proposal.
    (2) The contracting officer must request sufficient cost or price 
information to permit a price analysis.
    (d) Audits. If the contracting officer requires cost or pricing data 
and the alteration project will exceed the threshold identified in FAR 
15.403-4, request an audit.
    (e) Proposal evaluation. The contracting officer must--
    (1) Determine if the proposal meets the Government's requirements.
    (2) Analyze price or cost information. At a minimum, compare the 
proposed cost to the independent estimate and, if applicable, any audit 
results received.
    (3) Analyze profit following FAR 15.404-4.
    (4) Document the analysis under this paragraph and the resulting 
negotiation objectives.
    (f) Price negotiations. The contracting officer must--
    (1) Exercise sound judgment. Make reasonable compromises as 
necessary.
    (2) Provide the lessor with the greatest incentive for efficient and 
economical performance.
    (3) Document negotiations in the contract file, including 
discussions regarding restoration cost or waiver of restoration cost.
    (g) Order. For modifications not exceeding the simplified 
acquisition threshold, lease contracting officers may delegate 
alteration contracting authority to a warranted contracting officer's 
representative in GSA or the tenant agency. Alterations awards must 
reference the lease number. If the modification does not exceed the 
simplified acquisition threshold, the contracting officer may use GSA 
Form 300, Order for Supplies or Services. Reference the lease on the 
form.
    (h) Inspection and payment. The contracting officer must not make 
final payment for alterations until the work is:
    (1) Inspected by a qualified Government employee or independent 
Government contractor.
    (2) Confirmed as completed in a satisfactory manner.

[76 FR 30852, May 27, 2011]



570.503  Alterations by the Government or through a separate contract.

    If the Government chooses to exercise its right to make the 
alterations rather than contracting directly with the lessor, the 
Government may either:
    (a) Have Federal employees perform the work.
    (b) Contract out the work using standard contracting procedures that

[[Page 280]]

apply to a construction contract performed on Federal property. If the 
Government decides to contract for the work, invite the lessor, as well 
as all other prospective contractors, to submit offers for the project.

[76 FR 30853, May 27, 2011]



 Subpart 570.6_Contracting for Overtime Services and Utilities in Leases

    Source: 76 FR 30853, May 27, 2011, unless otherwise noted.



570.601  General.

    (a) Lease tenant agencies may need overtime services and utilities 
on a regular or intermittent basis. Lease contracting officers may 
negotiate overtime rates for services and utilities and include those 
rates in leases where a need is projected. Only lease contracting 
officers may negotiate overtime rates.
    (b) An independent government estimate is required in support of the 
negotiated rate.
    (c) Order. To order overtime services and utilities, if the order 
does not exceed the simplified acquisition threshold, a warranted 
contracting officer's representative, in GSA or the tenant agency, may 
place an order. The order must reference the lease number.
    (d) Payment. Do not make final payment for services and utilities 
until confirmed as delivered in a satisfactory manner.



       Subpart 570.7_Solicitation Provisions and Contract Clauses

    Source: 64 FR 37265, July 9, 1999, unless otherwise noted. 
Redesignated at 76 FR 30853, May 27, 2011



570.701  FAR provisions and clauses.

    Include provisions or clauses substantially the same as the FAR 
provisions and clauses listed below.

------------------------------------------------------------------------
                If . . .                        Then include . . .
------------------------------------------------------------------------
(a) the estimated value of the           52.204-3 Taxpayer
 acquisition exceeds the micro-purchase   Identification.
 threshold identified in FAR 2.101.      52.204-6 Data Universal
                                          Numbering System (DUNS)
                                          Number.
                                         52.204-7 System for Award
                                          Management.
                                         52.219-1 Small Business Program
                                          Representations.
                                         52.219-28 Post-Award Small
                                          Business Program
                                          Rerepresentation (use if lease
                                          term exceeds five years).
                                         52.232-23 Assignment of Claims.
                                         52.232-33 Payment by Electronic
                                          Funds Transfer--System for
                                          Award Management.
                                         52.233-1 Disputes.
(b) the estimated value of the           52.222-21 Prohibition of
 acquisition exceeds $10,000.             Segregated Facilities.
                                         52.222-22 Previous Contracts
                                          and Compliance Reports.
                                         52.222-25 Affirmative Action
                                          Compliance.
                                         52.222-26 Equal Opportunity.
                                         52.222-35 Equal Opportunity for
                                          Veterans.
                                         52.222-36 Equal Opportunity for
                                          Workers with Disabilities.
                                         52.222-37 Employment Reports on
                                          Disabled Veterans and Veterans
                                          of the Vietnam Era.
------------------------------------------------------------------------
(c) the estimated value of the           52.204-10  Reporting Executive
 acquisition is $25,000 or more (not      Compensation and First-Tier
 applicable to individuals).              Subcontract Awards.
(d) the estimated value of the           52.209-6  Protecting the
 acquisition exceeds the threshold        Government's Interest when
 identified in FAR 9.409(b).              Subcontracting with
                                          Contractors Debarred,
                                          Suspended, or Proposed for
                                          Debarment.
(e) the estimated value of the           52.203-11  Certification and
 acquisition exceeds $100,000.            Disclosure Regarding Payments
                                          to Influence Certain Federal
                                          Transactions.
(f) the estimated value of the           52.203-2 Certificate of
 acquisition exceeds the simplified       Independent Price
 lease acquisition threshold.             Determination.
                                         52.203-7 Anti-Kickback
                                          Procedures.
                                         52.204-5 Women-Owned Business
                                          (Other than Small Business).
                                         52.209-5 Certification
                                          Regarding Responsibility
                                          Matters.
                                         52.215-2 Audit and Records--
                                          Negotiation.
                                         52.219-8 Utilization of Small
                                          Business Concerns.
                                         52.223-6 Drug-Free Workplace.
                                         52.233-2 Service of Protest.
------------------------------------------------------------------------

[[Page 281]]

 
(g) the estimated value of the           52.219-9  Small Business
 acquisition exceeds the threshold        Subcontracting Plan.
 identified in FAR 19.708(b).            52.219-16  Liquidated Damages--
                                          Subcontracting Plan.
(h) the estimated value of the           52.219-24  Small Disadvantaged
 acquisition the estimated value of the   Business Participation
 acquisition exceeds the threshold        Program--Targets.
 identified in FAR 19.1202-2(a) and the  52.219-25  Small Disadvantaged
 contracting officer is using a best      Business Participation
 value trade off analysis in an           Program--Disadvantaged Status
 acquisition includes an evaluation       and Reporting.
 factor that considers the extent of
 participation of small disadvantaged
 business concerns in accordance with
 FAR 19.12.
(i) the value of the contract is         52.203-13  Contractor Code of
 expected to exceed $5 million and the    Business Ethics and Conduct.
 performance period is 120 days or more. 52.203-14  Display of Hotline
                                          Poster(s).
(j) the estimated value of the           52.222-24 Pre-award On-site
 acquisition exceeds $10 million.         Equal Opportunity Compliance
                                          Evaluation.
(k) the contracting officer requires     52.215-10 Price Reduction for
 cost or pricing data for work or         Defective Certified Cost or
 services exceeding the threshold         Pricing Data.
 identified in FAR 15.403-4.             52.215-12 Subcontractor
                                          Certified Cost or Pricing
                                          Data.
(l) the contracting officer authorizes   52.215-5  Facsimile Proposals.
 submission of facsimile proposals.
(m) a negotiated acquisition provides    52.219-26  Small Disadvantaged
 monetary incentives based on actual      Business Participation
 achievement of small disadvantaged       Program--Incentive
 business subcontracting targets under    Subcontracting.
 FAR 19.1203 and 519.1203.
------------------------------------------------------------------------


[76 FR 30853, May 27, 2011, as amended at 81 FR 1533, Jan. 13, 2016]



570.702  GSAR solicitation provisions.

    Each SFO must include provisions substantially the same as the 
following, unless the contracting officer determines that the provision 
is not appropriate. However, document the file with the basis for 
deleting or substantially changing a clause.

552.270-1  Instructions to Offerors--Acquisition of Leasehold Interests 
          in Real Property. Use Alternate I if you decide that it is 
          advantageous to the Government to allow offers to be submitted 
          up to the exact time specified for award. Use Alternate II if 
          the Government intends to award without discussions. These two 
          alternates are not exclusive.
552.270-2  Historic Preference.
552.270-3  Parties to Execute Lease.

[64 FR 37265, July 9, 1999. Redesignated and amended at 76 FR 30853, 
30854, May 27, 2011]



570.703  GSAR contract clauses.

    (a) Insert clauses substantially the same as the following in 
solicitations and contracts for leasehold interests in real property 
that exceed the simplified lease acquisition threshold, unless the 
contracting officer determines that a clause is not appropriate. 
However, document the file with the basis for deleting or substantially 
changing a clause. A deviation is not required under section 570.704 to 
determine that a clause in this section is not appropriate. Use the 
clauses at your discretion in actions at or below the simplified lease 
acquisition threshold.

552.215-70  Examination of Records by GSA.
552.270-4  Definitions. You must use this clause if you use 552.270-28.
552.270-5  Subletting and Assignment.
552.270-6  Maintenance of Building and Premises--Right of Entry.
552.270-7  Fire and Casualty Damage.
552.270-8  Compliance with Applicable Law.
552.270-9  Inspection--Right of Entry.
552.270-10  Failure in Performance.
552.270-11  Successors Bound.
552.270-12  Alterations.
552.270-13  Proposals for Adjustment.
552.270-14  Changes.
552.270-15  Liquidated Damages. Insert this clause in solicitations and 
contracts if you have a critical requirement to meet the delivery date 
and you cannot establish an actual cost for the loss to the Government 
resulting from late delivery.
552.270-16  Adjustment for Vacant Premises.
552.270-17  Delivery and Condition.
552.270-18  Default in Delivery--Time Extensions.
552.270-19  Progressive Occupancy.
552.270-20  Payment.
552.270-21  Effect of Acceptance and Occupancy.

[[Page 282]]

552.270-22  Default by Lessor During the Term.
552.270-23  Subordination, Nondisturbance and Attornment
552.270-24  Statement of Lease.
552.270-25  Substitution of Tenant Agency.
552.270-26  No Waiver.
552.270-27  Integrated Agreement.
552.270-28  Mutuality of Obligation.
552.270-29  Acceptance of Space.
    (b) Include the following provisions and clauses in leasehold 
interests in real property.
552.270-30  Price Adjustment for Illegal Improper Activity.
552.270-31  Prompt Payment.
552.270-32  Covenant Against Contingent Fees.

[76 FR 30854, May 27, 2011]



570.704  Deviations to provisions and clauses.

    (a) The contracting officer needs a deviation approved under Subpart 
501.4 to omit any required provision or clause.
    (b) The contracting officer also needs an approved deviation to 
modify the language of a provision or clause mandated by statute (e.g., 
FAR 52.215-2, Audit and Records--Negotiation). The authorizing statute 
must allow for a waiver.
    (c) Certain clauses required by non-GSA regulations require approval 
of the issuing agency before the contracting officer can delete or 
modify them. For example, FARs 52.222-26, Equal Opportunity; 52.222-35, 
Affirmative Action for Disabled Veterans and Veterans of the Vietnam 
Era; and 52.222-36, Affirmative Action for Workers with Disabilities, 
require the approval of the Department of Labor's Office of Federal 
Contract Compliance Programs before they can be deleted from or modified 
in the SFO or lease.

[76 FR 30854, May 27, 2011]



                           Subpart 570.8_Forms

    Source: 64 FR 37265, July 9, 1999, unless otherwise noted. 
Redesignated at 76 FR 30853, May 27, 2011



570.801  Standard forms.

    Use Standard Form 2, U.S. Government Lease for Real Property, to 
award leases unless the contracting officer uses GSA Form 3626 (see 
570.802).

[76 FR 30854, May 27, 2011]



570.802  GSA forms.

    (a) The contracting officer may use GSA Form 3626, U.S. Government 
Lease for Real Property (Short Form), to award leases if using the 
simplified leasing procedures in Subpart 570.2 or if the contracting 
officer determines it advantageous to use the form.
    (b) The contracting officer may use GSA Form 276, Supplemental Lease 
Agreement, for actions requiring the agreement of both parties. This 
includes actions such as amending an existing lease to acquire 
additional space, obtaining partial release of space, revising the terms 
of a lease, settling restoration claims, and acquiring alterations.
    (c) The contracting officer may use GSA Form 1364, Proposal To Lease 
Space to obtain offers from prospective offerors.
    (d) The contracting officer may use GSA Form 1217, Lessor's Annual 
Cost Statement, to obtain pricing information regarding offered services 
and lease commissions.

[76 FR 30854, May 27, 2011]

                        PARTS 571	599 [RESERVED]

[[Page 283]]



                     CHAPTER 6--DEPARTMENT OF STATE




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

                          SUBCHAPTER A--GENERAL
Part                                                                Page
600

[Reserved]

601             Department of State Acquisition Regulations 
                    System..................................         285
602             Definitions of words and terms..............         292
603             Improper business practices and personal 
                    conflicts of interest...................         293
604             Administrative matters......................         295
           SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
605             Publicizing contract actions................         301
606             Competition requirements....................         302
607             Acquisition planning........................         305
608             Required sources of supplies and services...         306
609             Contractor qualifications...................         307
611             Describing agency needs.....................         310
612             Acquisition of commercial items.............         313
          SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
613             Simplified acquisition procedures...........         314
614             Sealed bidding..............................         315
615             Contracting by negotiation..................         316
616             Types of contracts..........................         317
617             Special contracting methods.................         318
                  SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
619             Small business programs.....................         320
622             Application of labor laws to Government 
                    acquisitions............................         329
623             Environment, energy and water efficiency, 
                    renewable energy technologies, 
                    occupational safety, and drug-free 
                    workplace...............................         331
624             Protection of privacy and freedom of 
                    information.............................         332

[[Page 284]]

625             Foreign acquisition.........................         332
             SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
627             Patents, data, and copyrights...............         334
628             Bonds and insurance.........................         334
629             Taxes.......................................         336
630             Cost accounting standards administration....         337
631             Contract cost principles and procedures.....         337
632             Contract financing..........................         338
633             Protests, disputes, and appeals.............         340
             SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
634             Major system acquisition....................         344
636             Construction and architect-engineer 
                    contracts...............................         344
637             Service contracting.........................         346
639             Acquisition of information technology.......         349
641             Acquisition of utility services.............         349
                    SUBCHAPTER G--CONTRACT MANAGEMENT
642             Contract administration and audit services..         350
643             Contract modifications......................         351
644             Subcontracting policies and procedures......         351
645             Government property.........................         351
647             Transportation..............................         352
648             Value engineering...........................         353
649             Termination of contracts....................         353
651             Use of Government sources by contractors....         354
                     SUBCHAPTER H--CLAUSES AND FORMS
652             Solicitation provisions and contract clauses         355
653             Forms.......................................         379
654-699

[Reserved]

[[Page 285]]



                          SUBCHAPTER A_GENERAL



                           PART 600 [RESERVED]



PART 601_DEPARTMENT OF STATE ACQUISITION REGULATIONS SYSTEM
--Table of Contents



               Subpart 601.1_Purpose, Authority, Issuance

Sec.
601.000  Scope of part.
601.101  Purpose.
601.105  Issuance.
601.105-3  Copies.
601.106  OMB approval under the Paperwork Reduction Act.

                      Subpart 601.2_Administration

601.201  Maintenance of the FAR.
601.201-1  The two councils.

              Subpart 601.3_Agency Acquisition Regulations

601.301  Policy.
601.302  Limitations.
601.303  Publication and codification.

                  Subpart 601.4_Deviations from the FAR

601.403  Individual deviations.
601.404  Class deviations.
601.405  Deviations pertaining to treaties and executive agreements.
601.470  Deviations from the DOSAR.

              Subpart 601.5_Agency and Public Participation

601.570  Rulemaking.

      Subpart 601.6_Career Development, Contracting Authority, and 
                            Responsibilities

601.601  General.
601.601-70  Delegations of authority.
601.602  Contracting officers.
601.602-1  Authority.
601.602-3  Ratification of unauthorized commitments.
601.602-3-70  Procedures.
601.603  Selection, appointment, and termination of appointment for 
          contracting officers.
601.603-1  General
601.603-3  Appointment.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26159, July 11, 1988, unless otherwise noted.



601.000  Scope of part.

    This part describes the Department of State Acquisition Regulation 
(DOSAR) in terms of establishment, relationship to the Federal 
Acquisition Regulation (FAR), arrangement, applicability, and deviation 
procedures.

[53 FR 26159, July 11, 1988, as amended at 59 FR 66750, Dec. 28, 1994]



               Subpart 601.1_Purpose, Authority, Issuance



601.101  Purpose.

    The DOSAR is issued to provide Department guidance in accordance 
with the policy cited in FAR 1.301(a)(2). The portions of this 
regulation that affects the relationship between a Department of State 
organization and a contractor or potential contractor are published in 
this chapter 6 of title 48 of the Code of Federal Regulations, in 
accordance with FAR 1.301(b).

[59 FR 66750, Dec. 28, 1994]



601.105  Issuance.



601.105-3  Copies.

    The DOSAR is available through the Department's Intranet system at 
http://aope.a.state.gov, or through the Internet from A/OPE's 
Acquisition Web site. The Internet address is: http://
www.statebuy.state.gov/.

[69 FR 19329, Apr. 13, 2004]



601.106  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 before collecting information from ten (10) or more members of 
the public. Individuals are not required to respond to information 
collection unless the OMB number and burden estimate information is 
provided. Accordingly, the information and recordkeeping requirements 
contained in this regulation have been approved by OMB under

[[Page 286]]

OMB Control Number 1405-0050. The information and recordkeeping 
requirements for Form DS-4053, Department of State Mentor-Protege 
Program Application, have been approved by OMB under OMB Control Number 
1405-0161.

[80 FR 6913, Feb. 9, 2015]



                      Subpart 601.2_Administration



601.201  Maintenance of the FAR.



601.201-1  The two councils.

    The Office of the Procurement Executive (A/OPE) represents the 
Department of State (DOS) on the Civilian Agency Acquisition Council. 
The Procurement Executive shall appoint a representative for this 
purpose. A/OPE is responsible for coordinating with all interested DOS 
elements proposed FAR revisions and for advocating FAR revisions sought 
by the Department.

[53 FR 26159, July 11, 1988, as amended at 59 FR 66750, Dec. 28, 1994]



              Subpart 601.3_Agency Acquisition Regulations



601.301  Policy.

    (a) The Assistant Secretary of State for Administration is the 
agency head for the purposes of FAR 1.301. The Assistant Secretary of 
State for Administration redelegated to the Procurement Executive the 
authority to prescribe, promulgate, and amend DOS acquisition policies, 
rules, and regulations.
    (b) The Department of State Acquisition Regulation (DOSAR) is 
prescribed under the authority of 22 U.S.C. 2658 and 40 U.S.C. 486(c).
    (c) The DOSAR implements and supplements the FAR.

[59 FR 66751, Dec. 28, 1994, as amended at 64 FR 43620, Aug. 11, 1999; 
80 FR 6913, Feb. 9, 2015]



601.302  Limitations.

    (a) The FAR and the DOSAR apply to all DOS acquisitions of personal 
property and services, including construction, both within and outside 
the United States, unless expressly excluded by this subpart, or exempt 
from the Federal Property and Administrative Services Act of 1949, as 
amended (40 U.S.C. 474(7)), or undertaken pursuant to section 208 of the 
State Department Basic Authorities Act of 1956, as amended (22 U.S.C. 
4308), or the Foreign Service Buildings Act of 1926, as amended (22 
U.S.C. 292 et seq.).
    (b) At posts where Joint Administrative Offices have been formed and 
DOS is the procurement agency, the FAR and DOSAR apply to all 
administrative and technical support acquisitions.

[53 FR 26159, July 11, 1988, as amended at 59 FR 66751, Dec. 28, 1994; 
64 FR 43620, Aug. 11, 1999; 80 FR 6913, Feb. 9, 2015]



601.303  Publication and codification.

    (a) The DOSAR is issued as Chapter 6 of Title 48, Code of Federal 
Regulations. The DOSAR is established as Chapter 6 of the Federal 
Acquisition Regulations System. The DOSAR is divided into the same 
parts, subparts, sections, subsections, and paragraphs as is the FAR. 
However, when the FAR coverage is adequate by itself there will be no 
corresponding DOSAR coverage. Where the DOSAR implements a specific 
part, subpart, section, or subsection of the FAR, the DOSAR coverage is 
numbered and titled to correspond to the appropriate FAR number and 
title, except that the DOSAR number will include a 6 or 60 such that 
there will always be three numbers to the left of the decimal. For 
example, the DOSAR implementation of FAR 14.1 is shown as 614.1 and the 
DOSAR implementation of FAR 1.301 is shown as 601.301. Materials that 
supplement the FAR are assigned the numbers 70 and up. For example, 
DOSAR requires additional definitions than those used in FAR; this 
supplementary material is provided in 602.101-70.
    (b) The DOSAR and its revisions are published in the Federal 
Register and in the Code of Federal Regulations, both of which may be 
purchased from the Superintendent of Documents, Government Printing 
Office, Washington, DC 20402.
    (c) The DOSAR shall be referenced in the same manner as described at 
FAR 1.105-2(c).

[53 FR 26159, July 11, 1988, as amended at 59 FR 66751, Dec. 28, 1994; 
64 FR 43620, Aug. 11, 1999]

[[Page 287]]



                  Subpart 601.4_Deviations from the FAR



601.403  Individual deviations.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 1.403.

[53 FR 26159, July 11, 1988, as amended at 59 FR 66751, Dec. 28, 1994]



601.404  Class deviations.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 1.404(a).

[53 FR 26159, July 11, 1988, as amended at 59 FR 66751, Dec. 28, 1994]



601.405  Deviations pertaining to treaties and executive agreements.

    The Procurement Executive shall determine whether a deviation 
pertaining to treaties and executive agreements is authorized under FAR 
1.405 or that a request for deviation is required under FAR 1.405(e).

[53 FR 26159, July 11, 1988, as amended at 59 FR 66751, Dec. 28, 1994]



601.470  Deviations from the DOSAR

    The authority to approve any deviations from the DOSAR is reserved 
to the Procurement Executive.

[53 FR 26159, July 11, 1988, as amended at 59 FR 66751, Dec. 28, 1994]



              Subpart 601.5_Agency and Public Participation



601.570  Rulemaking.

    (a) The DOSAR is promulgated and may be revised, as necessary, in 
accordance with FAR part 1.
    (b) The Procurement Executive shall issue all DOS acquisition 
regulations.

[59 FR 66751, Dec. 28, 1994]



      Subpart 601.6_Career Development, Contracting Authority, and 
                            Responsibilities



601.601  General.

    The Procurement Executive is the agency head for the purposes of FAR 
1.601.



601.601-70  Delegations of authority.

    (a) Delegations. As stated in 601.603-3(a), there is no contracting 
officer authority conferred by virtue of position. Pursuant to 601.602-
1(b), the Procurement Executive has designated the following as 
contracting activities as defined in FAR 2.101. These authorities are 
not redelegable. In addition, specific individuals are designated as 
heads of contracting activities (HCAs) (see FAR 2.101):
    (1) Overseas posts. Each overseas post shall be regarded as a 
contracting activity to enter into and administer contracts for the 
expenditure of funds involved in the acquisition of supplies, equipment, 
publications, and services. The Principal Officer, the Management 
Officer, or the Supervisory General Services Officer are designated as 
HCAs; provided, that he/she has a contracting officer's warrant issued 
by the Procurement Executive. The Procurement Executive (or authorized 
A/OPE staff) may delegate to a contracting officer, on a case-by-case 
basis, the authority to award a contract or modification which exceeds 
the contracting officer's warrant level.
    (i) No authority is delegated to enter into cost-reimbursement, 
fixed-price incentive, or fixed-price redeterminable contracts. Design/
build solicitations and contracts may only be entered into with the 
written approval of A/OPE and OBO. Proposed construction contracts 
exceeding $500,000 and any related architect-engineer contracts must 
have prior A/OPE approval.
    (ii) When expressly authorized by a U.S. Government agency which 
does not have a contracting officer at the post, the officers named in 
paragraph (a)(1) introductory text of this section may enter into 
contracts for that agency. Use of this authority is subject to the 
statutory authority of that agency and any special contract terms or 
other requirements necessary for compliance with any conditions or 
limitations applicable to the funds of that agency. The agency's 
authorization shall cite the statute(s) and state any special contract 
terms or other requirements with which the acquisition so authorized 
must comply. In view of the contracting officer's responsibility

[[Page 288]]

for the legal, technical, and administrative sufficiency of contracts, 
questions regarding the propriety of contracting actions that the post 
is required to take pursuant to this authority may be referred to the 
Department for resolution with the headquarters of the agency concerned.
    (2) Office of Logistics Management; Office of Acquisition Management 
(A/LM/AQM). The authority to enter into and administer contracts for the 
expenditure of funds involved in the acquisition of supplies and 
services, including construction, is delegated to the Director or 
designee as the HCA.
    (3) Foreign Service Institute. The authority to enter into and 
administer contracts pursuant to Chapter 7, Title I, of the Foreign 
Service Act of 1980, as amended (22 U.S.C. 4021 et seq.), is delegated 
to the Director of the Foreign Service Institute, the Executive 
Director, the Deputy Executive Director, and the Supervisory Contracting 
Officer as the HCA.
    (4) Office of Foreign Missions. The authority to enter into and 
administer contracts pursuant to Title II of the State Department Basic 
Authorities Act of 1956, as amended (22 U.S.C. 4301 et seq.), is 
delegated to the Director, Office of Foreign Missions, and the 
Administrative Officer as the HCA.
    (5) U.S. Mission to the United Nations. The authority to enter into 
and administer contracts pursuant to the United Nations Participation 
Act of 1945, as amended (22 U.S.C.287), is delegated to the Counselor 
for Administration as the HCA.
    (b) Other delegations. Several DOS offices have been delegated 
limited procurement authority, although they have not been designated as 
HCAs. Matters requiring HCA resolution are referred to the A/LM/AQM. 
These delegations are provided only to warranted contracting officers in 
the respective offices. They are as follows:
    (1) Office of Language Services. The authority to enter into and 
administer simplified acquisition transactions under FAR Part 13 and 
orders against existing contracts up to the maximum ordering threshold 
or limitation for interpreting, translating, conference reporting, and 
related language support and escort services.
    (2) Office of Overseas Schools. The authority to enter into and 
administer simplified acquisition transactions under FAR Part 13 and 
orders against existing contracts up to the maximum ordering threshold 
or limitation pursuant to section 29 of the State Department Basic 
Authorities Act of 1956, as amended.
    (3) Library. The authority to enter into and administer simplified 
acquisition transactions under FAR Part 13 and orders against existing 
contracts up to the maximum ordering threshold or limitation pursuant to 
the provisions of the Public Printing and Documents Act of 1968, as 
amended, and for the acquisition of newspapers, books, maps, and 
periodicals.
    (4) Office of International Conferences. The authority to enter into 
and administer simplified acquisition transactions under FAR Part 13 and 
orders against existing contracts up to the maximum ordering threshold 
or limitation pursuant to section 5, Title I, of the Department of State 
Basic Authorities Act of 1956, as amended.
    (5) Bureau of International Narcotics and Law Enforcement Affairs. 
The authority to enter into and administer simplified acquisition 
transactions under FAR part 13, to enter into and administer contracts 
over the simplified acquisition threshold but not exceeding $500,000 for 
non-commercial item acquisitions; up to $6.5 million for the acquisition 
of commercial items using the simplified acquisition procedures under 
the Test Program of FAR subpart 13.5; orders against existing contracts 
up to the maximum ordering threshold or limitation and personal services 
contracts pursuant to the Foreign Assistance Act of 1961, as amended; 
and, 48 CFR Chapter 7, Agency for International Development Acquisition 
Regulation (AIDAR), including any amendments thereto. INL follows the 
AIDAR guidance for doing personal service contracts. All other 
contracting actions follow the DOSAR and DoS regulations. These 
authorities extend to any acquisition performed by any Department of 
State contracting activity on behalf of INL.
    (6) Office of Small and Disadvantaged Business Utilization. The 
authority to enter into and administer 8(a) purchase

[[Page 289]]

orders and contracts as a third party pursuant to the Memorandum of 
Understanding signed with the Small Business Administration.
    (7) Bureau of Administration, Office of Operations. The authority to 
enter into and administer simplified acquisition transactions for 
emergency or contingency operations necessary to protect life or federal 
property. This authority is limited to cases when a contracting officer 
in the Office of Acquisitions Management is unavailable.
    (8) Regional Procurement Support Offices. The authority to enter 
into and administer contracts for the expenditure of funds involved in 
the acquisition of supplies, equipment, publications, and services on 
behalf of overseas posts is delegated to each Director, Regional 
Procurement Support Office (RPSO) at the following locations:
    (i) RPSO Frankfurt in conjunction with Consulate General Frankfurt; 
and
    (ii) RPSO Florida in conjunction with the Florida Regional Center.
    (c) Execution of delegated authority. (1) Whenever the contracting 
officer makes use of the various statutory authorities available to the 
Department to waive the application of the Federal Acquisition 
Regulation or laws governing acquisition, such as those provided in the 
Foreign Assistance Act (22 U.S.C. 2291) or the Foreign Service Buildings 
Act (22 U.S.C. 294), a written determination of the basis for using the 
authority must be prepared and included in the file.
    (2) If the statute or current practice of the requiring office does 
not specify a particular format, use the following format.

 DETERMINATION FOR USE OF AUTHORITY TO WAIVE ____[fill in what is being 
                                 waived]

SUBJECT: [State title of program or project]
DESCRIPTION OF REQUIREMENT: [Briefly describe what is being acquired]
STATUTORY AUTHORITY: [Cite specific statute, such as 22 U.S.C. 
2291(a)(4) for INL, and provide quotation from the law that conveys 
authority for the waiver at issue]
SCOPE OF WAIVER: [Describe what is being waived, such as (but not 
limited to) the Federal Acquisition Regulation (FAR) in its entirety, 
the Competition in Contracting Act as implemented in FAR Parts 5 and 6, 
or FAR Part 32 limitation on advance payments, etc.; also identify the 
individual acquisition or class of acquisitions for which the waiver is 
being sought.]
JUSTIFICATION: [Describe the need to use the authority and the 
anticipated impact of not doing so; discuss alternatives considered, if 
any]

CONCURRENCE:

________________________________________________________________________
Contracting Officer
________________________________________________________________________
 Date
________________________________________________________________________
Legal Advisor
________________________________________________________________________
Date

________________________________________________________________________
APPROVAL/SIGNATURE:
________________________________________________________________________
Approving Official
________________________________________________________________________
 Date

    (3) The determination may be made for an individual acquisition or 
on a class basis, as appropriate. The Contracting Officer must ensure 
that the proper official makes the determination in question. There may 
already be a Department of State delegation of authority to a specific 
individual to make the determination.

[59 FR 66752, Dec. 28, 1994, as amended at 60 FR 39662, Aug. 3, 1995; 64 
FR 43620, Aug. 11, 1999; 69 FR 19330, Apr. 13, 2004; 71 FR 34839, June 
16, 2006; 72 FR 45695, Aug. 15, 2007. Redesignated and amended at 80 FR 
6913, Feb. 9, 2015]



601.602  Contracting officers.



601.602-1  Authority.

    (a) DOS contracts are awarded pursuant to the foreign affairs 
management responsibilities conferred on the Secretary of State (22 
U.S.C. 2656), and the various laws, regulations, and Executive Orders 
relating thereto.
    (b) Except as otherwise provided by law, DOS regulations, and this 
DOSAR, the Procurement Executive has the authority to execute, award, 
and administer contracts, purchase orders, other contractual 
arrangements, and other agreements, including FAR-covered interagency 
acquisition agreements, for the expenditure of funds involved in the 
acquisition of personal property, services, and for the sale of personal 
property. The Procurement Executive may further delegate this authority 
to

[[Page 290]]

those DOS employees appointed or designated to the contracting 
activities enumerated in 601.601-70.
    (c) The contracting officer shall not award, modify, or terminate a 
contract unless all reviews, clearances, and approvals prescribed in the 
FAR or the DOSAR have been obtained, and all applicable requirements of 
law, the FAR, the DOSAR, and other regulations have been met.

[53 FR 26159, July 11, 1988, as amended at 55 FR 5774, Feb. 16, 1990; 59 
FR 66751, Dec. 28, 1994; 72 FR 45695, Aug. 15, 2007; 81 FR 24707, Apr. 
27, 2016]



601.602-3  Ratification of unauthorized commitments.

    (b) Policy. (1) The Government generally is not bound by 
unauthorized commitments. Unauthorized commitments violate the Federal 
Property and Administrative Services Act, other Federal laws, the FAR, 
the DOSAR, and proper acquisition practice. Therefore, such unauthorized 
commitments are serious violations that could result in disciplinary 
action against the transgressor, e.g., withdrawal of a contracting 
officer's warrant or a Contracting Officer's Representative delegation 
or collection action.
    (2)(i) Unauthorized commitments not exceeding $1,000. The head of 
the contracting activity is delegated the authority to serve as the 
ratifying official for unauthorized commitments not exceeding $1,000, 
including unauthorized commitments from other agencies where a DOS 
employee serves as the contracting officer for that action. The head of 
the contracting activity may refer any actions not exceeding $1,000 to 
the DOS Procurement Executive for ratification if he or she so chooses.
    (ii) Unauthorized commitments exceeding $1,000. All DOS unauthorized 
commitments in excess of $1,000 shall be submitted to the DOS 
Procurement Executive for ratification. Unauthorized commitments in 
excess of $1,000 from other agencies may be referred to the other 
agency's representative at post for resolution in accordance with that 
agency's ratification process.
    (3) Claims. Unauthorized contractual commitments that would involve 
claims subject to resolution under the Contracts Dispute Act of 1978 
shall be processed in accordance with FAR subpart 33.2 and subpart 
633.2.
    (4) Disciplinary action. The Procurement Executive may refer 
egregious cases of unauthorized commitments to HR/ER for possible 
disciplinary action in accordance with 3 FAM 4370 or 3 FAM 4540. 
Examples might include repeated unauthorized commitments knowingly made 
by an employee; failure to take responsibility for a deliberate 
unauthorized commitment; or similar reasons. The Procurement Executive 
may revoke the appointment certificate of any contracting officer who 
makes an unauthorized commitment. The Procurement Executive may direct a 
contracting officer to revoke the appointment memorandum of a 
Contracting Officer's Representative or Government Technical Monitor who 
makes an unauthorized commitment.

[80 FR 6914, Feb. 9, 2015]



601.602-3-70  Procedures.

    (a)(1) The person who made the unauthorized commitment shall submit 
all records and documents concerning the unauthorized commitment to the 
contracting officer assigned the ratification action. That person shall 
provide a complete written, signed statement of the facts, including why 
normal acquisition procedures were not followed; a statement justifying 
a sole source acquisition (Justification for Other Than Full and Open 
Competition) if the unauthorized commitment exceeds $100,000; why and 
how the vendor was selected; a list of other sources considered; a 
description of work or products; a statement regarding the status of 
performance; an estimated or agreed price; certified funding citations; 
a statement as to why he/she should not be personally liable for the 
cost, e.g., a public purpose was served and no personal benefit was 
received; a statement as to whether the individual has ever been 
responsible for any other unauthorized commitments in the Department of 
State; and, a statement as to the number of unauthorized commitments 
processed by the responsible office within the last three calendar years 
and the circumstances surrounding each of these actions.
    (2) When the person who made the unauthorized contractual commitment

[[Page 291]]

is no longer available to attest to the circumstances of the 
unauthorized commitment, an officer from the responsible office shall 
accomplish the requirements of this paragraph; the statement shall 
identify the individual responsible for the unauthorized commitment.
    (3) In addition, a cognizant management official from the office 
that employed the individual who made the unauthorized commitment at the 
time the unauthorized commitment was made shall provide a statement 
detailing actions that he/she will take to ensure that such commitments 
will not occur again under the same or similar circumstances.
    (4) This statement shall be cleared by the Executive Director of the 
Bureau that employs (or employed) the person who made the unauthorized 
commitment.
    (b) The contracting officer assigned the ratification action shall 
prepare and execute a recommendation to the ratifying official. The 
contracting officer shall either recommend that the ratifying official 
approve and ratify the unauthorized commitment; or, disapprove the 
ratification of the unauthorized commitment.
    (1) The recommendation shall include the facts and circumstances of 
the unauthorized commitment; the information prescribed in FAR 1.602-
3(c)(1) and (c)(3) through (6); and a recommendation to the ratifying 
official as to whether the unauthorized commitment should be ratified.
    (2) Following the signature of the contracting officer, the 
recommendation shall include a statement that the ratifying official 
could have granted authority to enter into a contractual commitment at 
the time it was made and still has the authority to do so; that the 
ratifying official hereby ratifies (or disapproves) the unauthorized 
commitment in the amount specified; and a date and signature block for 
the ratifying official.
    (c) The information required in paragraph (b)(1) of this section 
shall be supported by factual findings included or referenced in the 
recommendation.
    (d) The contracting officer shall submit the complete file to the 
ratifying official. For actions exceeding $1,000, the file shall be 
submitted through the head of the contracting activity to the 
Procurement Executive.
    (e) Upon receipt and review of the complete file, if the ratifying 
official ratifies the unauthorized commitment, the file shall be 
returned, through the head of the contracting activity if the action 
exceeds $1,000, to the contracting officer for issuance of the 
appropriate contractual document(s). If the request for ratification is 
not justified, the ratifying official shall return the request to the 
head of the contracting activity (if over $1,000) or to the contracting 
officer (if under $1,000) with a written explanation for the decision 
and a recommendation for disposition of the action.

[80 FR 6914, Feb. 9, 2015]



601.603  Selection, appointment, and termination of appointment for
contracting officers.



601.603-1  General.

    Details of the Department's acquisition career management program 
are described in 14 FAH-3, Acquisition Career Management Program 
Handbook, which is available on the Internet at http://www.state.gov /m 
/a /dir /regs /fah /14fah 03/index.htm

[72 FR 45695, Aug. 15, 2007, as amended at 80 FR 6914, Feb. 9, 2015]



601.603-3  Appointment.

    (a) General. There is no contracting officer authority conferred 
upon any DOS employee by virtue of position. The Procurement Executive 
appoints all DOS contracting officers, in conformance with FAR 1.603-3, 
with the one exception as noted in paragraph (b) of this section. The 
contracting officer shall retain the original copy of the Standard Form 
1402, Certificate of Appointment, signed by the Procurement Executive. 
Only qualified employees shall be appointed as contracting officers. A/
OPE is responsible for providing guidance and oversight in managing such 
appointments.
    (b) Temporary warrants. The Chief of Mission is delegated the 
authority by the Procurement Executive to issue temporary contracting 
officer warrants for periods up to 90 calendar days in order to cover 
emergency, post-specific

[[Page 292]]

operational requirements (e.g., staffing gaps, medical evacuations, 
extended leave, etc.). These temporary appointments shall be executed on 
the Standard Form 1402, and a copy shall be furnished to A/OPE. The 
warrant shall contain both a dollar limitation of no more than $100,000 
and a specific time period (not to exceed 90 days) during which the 
warrant is effective.
    (c) Non-Federal employees. Only United States Government employees 
shall be appointed as contracting officers. For acquisitions at $25,000 
and below only, this includes locally employed staff (i.e., Foreign 
Service Nationals and Third Country nationals). Personal services 
contractors are not eligible for appointment as DOS contracting 
officers.
    (d) Personal services agreements. Individuals who may sign personal 
services agreements (PSAs) are limited to the following:
    (1) The Human Resources Officer;
    (2) The Human Resources/Financial Management Officer; or,
    (3) The Management Officer or an American Foreign Service Officer 
designated to perform human resource functions.
    (e) Real property leases. The FAR and DOSAR do not apply to leases 
of real property. A contracting officer certificate of appointment is 
not required. Authority to sign real property leases is as follows:
    (1) Domestic real property leases. The General Services 
Administration has delegated domestic leasing authority to the 
Department of State's Office of Real Property Management (A/OPR/RPM). 
This delegation is accomplished on a case-by-case basis.
    (2) Real property leases abroad. Authority to sign real property 
leases abroad is held by the Director/Chief Operating Officer (DIR/COO) 
of the Bureau of Overseas Buildings Operations (OBO), through the 
Secretary of State, under the Foreign Buildings Act of 1926, as amended 
(22 U.S.C. 292 et seq.). Leases at post may be executed by the General 
Services Officer or by other post administrative personnel as authorized 
by OBO.

[59 FR 66752, Dec. 28, 1994, as amended at 64 FR 43620, Aug. 11, 1999; 
69 FR 19330, Apr. 13, 2004; 76 FR 30265, May 25, 2011; 80 FR 6914, Feb. 
9, 2015]



PART 602_DEFINITIONS OF WORDS AND TERMS--Table of Contents



                        Subpart 602.1_Definitions

Sec.
602.101  Definitions.
602.101-70  DOSAR definitions.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

    Source: 53 FR 26162, July 11, 1988, unless otherwise noted.



                        Subpart 602.1_Definitions



602.101  Definitions.



602.101-70  DOSAR definitions.

    For the purposes of the DOSAR, unless otherwise indicated, the 
following terms have the meanings set forth in this subpart.
    Chief of Mission means the principal officer in charge of a 
diplomatic mission of the United States or of a United States office 
abroad which is designated by the Secretary of State as diplomatic in 
nature, including any individual assigned under section 502(c) of the 
Foreign Service Act of 1980 (Public Law 96-465) to be temporarily in 
charge of such a mission or office.
    Consolidated Receiving Point or CRP; means the contractor under 
contract to a Despatch Agency to receive and prepare items for shipment 
to a post. The CRP receives, records, consolidates, and packs items for 
shipment overseas under the direction of the Despatch Agency.
    Department or DOS means the Department of State, including all of 
its activities wherever located.
    Despatch Agency means the office responsible for the transportation 
of supplies between the U.S. and posts within its specific geographic 
area as assigned by the Office of Logistics Operations. There are six 
Despatch Agencies, one each in Iselin, New Jersey; Baltimore, Maryland; 
Miami, Florida; Seattle, Washington; Brownsville, Texas; and

[[Page 293]]

the European Logistical Support Office in Antwerp, Belgium.
    Government means the Government of the United States of America 
unless specifically stated otherwise.
    Major system has the same definition as described in FAR 2.101; 
however, the Department of State's dollar threshold as defined in 
paragraph (2) is $30 million. The Under Secretary for Management is the 
head of the agency for the purposes of paragraph (3).
    Overseas post means a ``post'' located outside the United States of 
America.
    Post means a diplomatic or consular mission of the United States of 
America, administered or managed by the DOS.

[53 FR 26163, July 11, 1988, as amended at 59 FR 66753, Dec. 28, 1994; 
60 FR 39662, Aug. 3, 1995; 64 FR 43620, Aug. 11, 1999; 69 FR 19330, Apr. 
13, 2004; 72 FR 45695, Aug. 15, 2007]



PART 603_IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST--Table of Contents



                        Subpart 603.1_Safeguards

Sec.
603.104  Procurement integrity.
603.104-4  Disclosure, protection, and marking of contractor bid or 
          proposal information and source selection information.
603.104-7  Violations or possible violations.

       Subpart 603.2_Contractor Gratuities to Government Personnel

603.204  Treatment of violations.

                      Subpart 603.4_Contingent Fees

603.405  Misrepresentations or violations of the Covenant Against 
          Contingent Fees.

Subpart 603.6_Contracts with Government Employees or Organizations Owned 
                          or Controlled by Them

603.601  Policy.
603.602  Exceptions.

             Subpart 603.7_Voiding and Rescinding Contracts

603.704  Policy.
603.705  Procedures.

 Subpart 603.8_Limitations on the Payment of Funds To Influence Federal 
                              Transactions

603.804  Policy

    Subpart 603.9_Whistleblower Protections for Contractor Employees

603.905  Procedures for investigating complaints.
603.906  Remedies.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26163, July 11, 1988, unless otherwise noted.



                        Subpart 603.1_Safeguards

    Source: 64 FR 43620, Aug. 11, 1999, unless otherwise noted.



603.104  Procurement integrity.



603.104-4  Disclosure, protection, and marking of contractor bid or
proposal information and source selection information.

    (a) The following classes of persons may be authorized to receive 
contractor bid or proposal information or source selection information 
by the contracting officer or head of the contracting activity, when 
such access is necessary to the conduct of an acquisition:
    (1) Individuals involved in the selection process, such as the 
Contracting Officer's Representative, technical evaluators, advisors, 
consultants, and the Source Selection Official;
    (2) Clerical personnel directly involved in the acquisition;
    (3) Supervisors in the contracting officer's chain of command;
    (4) Contracting personnel involved in reviewing or approving the 
solicitation, contract, or contract modification;
    (5) Individuals from offices who may be required to perform pre-
award audits, such as DCAA; and,
    (6) Personnel in the following offices: Office of Small and 
Disadvantaged Business Utilization (OSDBU), Office of the Legal Adviser, 
Office of Legislative Affairs, Office of the Inspector General, Office 
of the Procurement Executive, the Small Business Administration, and the 
Office of Federal Contract Compliance Programs (Department of Labor).
    (c) All information which is considered proprietary or source 
selection information shall be marked to prevent its unauthorized 
disclosure before

[[Page 294]]

award. This may be performed by marking each page of proprietary or 
source selection material with the statement ``Source Selection 
Information--See FAR 3.104'' or ``Proprietary Information--See FAR 
3.104'', as applicable. Alternatively, this requirement may be met by 
attaching Forms DS-1926, Proprietary Information (Cover Page), and DS-
1927, Source Selection Information (Cover Page), to any proprietary and 
source selection information. Individuals responsible for preparing 
derivative documents which reference, cite, or paraphrase proprietary or 
source selection information, are responsible for marking such documents 
as indicated in this paragraph. The required marking or cover page shall 
be included when technical proposals are submitted for evaluation and 
when an audit is requested. After award, the procedures governing the 
Freedom of Information Act and related laws/regulations shall be 
followed regarding release of proprietary or source selection 
information.

[64 FR 43620, Aug. 11, 1999. Redesignated at 69 FR 19330, Apr. 13, 2004; 
80 FR 6915, Feb. 9, 2015]



603.104-7  Violations or possible violations.

    (a)(1) The contracting officer shall report any violation or 
possible violation to the head of the contracting activity after he or 
she has reviewed the documentation and has concluded that there is no 
impact on the acquisition.
    (d)(2)(ii)(B) The Procurement Executive is the agency head's 
designee for the purposes of FAR 3.104-7(d)(2)(ii)(B).

[64 FR 43620, Aug. 11, 1999. Redesignated and amended at 69 FR 19330, 
Apr. 13, 2004]



       Subpart 603.2_Contractor Gratuities to Government Personnel



603.204  Treatment of violations.

    (a) The Procurement Executive is the agency head's designee for the 
purposes of FAR 3.204.
    (b) Upon completion of the investigation and/or prosecution or with 
the consent of the U.S. Department of Justice, the Assistant Inspector 
General for Investigations shall provide to the Procurement Executive a 
report, together with all pertinent documentation, concerning the 
suspected violation. The Office of the Procurement Executive shall 
provide to the contractor a written notice by certified mail, return 
receipt requested, presenting the findings, and shall establish a 
schedule, including location, for an investigative hearing for the 
purposes described in FAR 3.204(b).

[64 FR 43620, Aug. 11, 1999, as amended at 69 FR 19330, Apr. 13, 2004]



                      Subpart 603.4_Contingent Fees



603.405  Misrepresentations or violations of the Covenant Against
Contingent Fees.

    (a) The contracting officer may request the Office of the Inspector 
General to develop further information if the facts available are deemed 
insufficient to determine whether an actual violation has occurred. The 
contracting officer may also obtain the advice of the Office of the 
Legal Adviser as to the legality and general propriety of any 
information disclosed.

[64 FR 43621, Aug. 11, 1999]



Subpart 603.6_Contracts with Government Employees or Organizations
Owned or Controlled by Them



603.601  Policy.

    (a) It is Department policy not to award contracts to Federal 
employees, or businesses substantially owned or controlled by Federal 
employees. This policy also applies to individuals hired under personal 
services agreements and personal services contracts.

[59 FR 66754, Dec. 28, 1994, as amended at 69 FR 19331, Apr. 13, 2004]



603.602  Exceptions.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 3.602.

[[Page 295]]



             Subpart 603.7_Voiding and Rescinding Contracts



603.704  Policy.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 3.704.

[59 FR 66754, Dec. 28, 1994]



603.705  Procedures.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 3.705.

[59 FR 66754, Dec. 28, 1994]



 Subpart 603.8_Limitations on the Payment of Funds To Influence Federal 
                              Transactions



603.804  Policy

    (b) The contracting officer shall forward a copy of all contractor 
disclosures furnished pursuant to the clause at FAR 52.203-12 to the 
Office of the Legal Adviser, Employment Law, Senior Ethics Counsel (L/
EMP/Ethics).

[69 FR 19331, Apr. 13, 2004]



    Subpart 603.9_Whistleblower Protections for Contractor Employees

    Source: 64 FR 43621, Aug. 11, 1999, unless otherwise noted.



603.905  Procedures for investigating complaints.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 3.905.



603.906  Remedies.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 3.906.



PART 604_ADMINISTRATIVE MATTERS--Table of Contents



                   Subpart 604.2_Contract Distribution

Sec.
604.202  Agency distribution requirements.

            Subpart 604.5_Electronic Commerce in Contracting

604.502  Policy.

                 Subpart 604.8_Government Contract Files

604.802  Contract files.
604.803  Contents of contract files.
604.803-70  Contract file table of contents.
604.804  Closeout of contract files.
604.804-70  Contract closeout procedures.
604.805  Storage, handling, and disposal of contract files.

              Subpart 604.13_Personal Identity Verification

604.1301  Policy.
604.1303  Contract clause.
604.1303-70  DOSAR contract clause.

        Subpart 604.16_Unique Procurement Instrument Identifiers

604.1601  Policy.

                     Subpart 604.70_Contract Review

604.7001  Policy.
604.7002  Procedures.

          Subpart 604.71_Procurement Quality Assurance Program

604.7101  Purpose.
604.7102  Contracting activity reviews.
604.7102-1  Peer reviews.
604.7102-2  Form and scope of review
604.7102-3  Approval.
604.7103  Review by Assistant Legal Adviser for Buildings and 
          Acquisitions (L/BA).

      Subpart 604.72_Secure Procurement for Controlled Access Areas

604.7201  Policy.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 69 FR 19331, Apr. 13, 2004, unless otherwise noted.



                   Subpart 604.2_Contract Distribution

    Source: 80 FR 6915, Feb. 9, 2015, unless otherwise noted.



604.202  Agency distribution requirements.

    As necessary, the contracting officer shall distribute copies of the 
signed contract or modification to those officers/offices involved in 
contract administrative support functions, e.g., the

[[Page 296]]

Contracting Officer's Representative; the requirements office; the Post 
Occupational Safety and Health Officer (POSHO); the Despatch Agent or 
other receiving activity, particularly if it is the initial point of 
contact for receipt of goods or services; the financial management 
office; and each post or office where the contract shall be performed. 
Where required by the laws of a foreign country, overseas posts shall 
retain the original copy of the contract or modification awarded by a 
domestic contracting activity for performance overseas. The contracting 
officer shall send copies of contracts and modifications awarded as 
small business or 8(a) set-asides to OSDBU.



            Subpart 604.5_Electronic Commerce in Contracting



604.502  Policy.

    (b) The Assistant Secretary of State for Administration is the head 
of the agency for the purpose of FAR 4.502(b).
    (1)(i) Materials not in automated format. For solicitations 
containing drawings or other materials that are not in an automated 
format, the contracting officer shall:
    (A) Post as much of the solicitation as possible on the Internet; 
and,
    (B) Make hard copies available for those parts of the solicitation 
that are not in an automated format.
    (ii) Posting solicitations for overseas contracting activities. 
Contracting officers at overseas contracting activities shall post 
competitive local guard solicitations on the Internet using the 
Government-wide point of entry if U.S. firms may be competing. Posting 
of other solicitations is optional.

[69 FR 19331, Apr. 13, 2004, as amended at 72 FR 45695, Aug. 15, 2007]



                 Subpart 604.8_Government Contract Files

    Source: 80 FR 6915, Feb. 9, 2015, unless otherwise noted.



604.802  Contract files.

    Heads of contracting activities shall maintain standard procedures 
to conform to FAR 4.802 for file location and maintenance.
    (f) Electronic files. Offices may maintain files in electronic media 
provided all documentation is maintained as required by FAR subpart 4.8. 
Electronic files dispersed in multiple locations, or maintained with no 
naming convention, do not constitute adequate electronic records.



604.803  Contents of contract files.



604.803-70  Contract file table of contents.

    (a) It is the Department's policy that all contracts, regardless of 
dollar value, be properly documented so as to provide a complete record 
of: pre-solicitation activities; the solicitation, evaluation, and award 
process; and, the administration of the contract through closeout.
    (b) All domestic contracting activities awarding contracts using 
other than simplified acquisition procedures shall use the format of 
Form DS-1930, Domestic Contract File Table of Contents, and all overseas 
contracting activities shall use the format of Form DS-1929, Overseas 
Contract File Table of Contents, unless an alternate format has been 
approved by A/OPE.
    (c) Each table of contents is organized in chronological order, with 
six separate sections for each of the six parts of the file folder (from 
Section I, Pre-Solicitation, through Section VI, Contract and 
Modifications/Contract Closeout). Alternatively, for ease of contract 
administration, offices may choose to organize contract files with 
Section VI of the table of contents at the beginning of the folder, with 
Section I at the back of the folder.
    (d) The format of Form DS-1928, Contract Administration File Table 
of Contents, may be used by those offices that prefer to have a separate 
file folder for contract modifications or delivery/task orders.



604.804  Closeout of contract files.



604.804-70  Contract closeout procedures.

    (a) This section sets forth procedures for closing out contracts 
awarded using other than simplified acquisition procedures by 
contracting activities and requirements offices. It is the Department's 
policy to close out contracts in

[[Page 297]]

the time frames prescribed by FAR Part 4.
    (b) Contracting activities are responsible for initiating each 
contract closeout. Contracting activities and requirements offices are 
jointly responsible for timely compliance with required contract 
closeout procedures.
    (c) The contract closeout process shall begin as soon as possible 
after the contract is physically completed, which means that the 
contractor has delivered the required supplies and the Government has 
inspected and accepted them, or the contractor has performed and the 
Government has accepted all services required by the contract, and the 
base period and any option periods exercised have expired.
    (d) Specific procedures. The normal steps for closing out a 
physically completed contract shall be as follows. These steps are 
summarized in the Contract Closeout Checklist, which shall be completed 
by the contracting officer and included in the contract file. The 
contracting officer shall indicate any items that are not applicable 
(e.g., patent reports, royalty reports, etc.).
    (1) The contracting officer shall verify that all work under the 
contract has been completed; obtain the COR's assessment of the 
contractor's performance; and conduct an initial funds status review, 
i.e., determine if the contract has excess funds that should be 
deobligated by contract modification. Contracting officers shall send a 
cover memo to the COR, to which should be attached the COR Completion 
Certificate, the applicable performance evaluation form (depending on 
whether the contract is for construction (SF-1420), architect-
engineering services (SF-1421), or other supplies or services (DS-1771, 
Contractor Evaluation Statement)); and, a final payment and closeout 
memorandum. Contracting officers may require CORs to input past 
performance data directly into the Contractor Performance Assessment 
Reporting System (CPARS) as opposed to completing a paper evaluation 
form (see 642.1503-70).
    (2) After receipt of the COR's response, and the contractor's 
release, the contracting officer shall send a final payment memo to the 
office responsible for payment of invoices/vouchers.
    (3) An audit is required for cost-reimbursement contracts over 
$550,000, unless available data are considered adequate for a 
reasonableness determination, in which case the contract file shall be 
documented with the appropriate rationale. Requests for audits shall be 
submitted through the Office of the Inspector General. Cost-
reimbursement contracts may be closed after receipt of the audit report 
and resolution of any issues raised. Quick closeout procedures may be 
followed, as prescribed in FAR 42.708. The contracting officer may 
request an audit of any contract, if warranted; however, audits should 
not be requested if the cost of the audit is likely to exceed potential 
cost recovery, except where fraud or misrepresentation is suspected.
    (4) The contracting officer shall send a letter to the contractor 
requesting release of claims, using the appropriate format. In addition, 
a Contractor Assignment Letter is required for certain contracts. To 
determine which format is applicable, contracting officers shall refer 
to the Payments clause in the contract.
    (5) The contracting officer shall reconcile the contract obligations 
and contractor payments, and then deobligate any excess funds remaining 
in the contract by issuing a contract modification on a SF-30. Close 
coordination with the finance office is necessary in order to receive 
the required information to perform a funds status review.
    (6) The contracting officer shall verify that all relevant 
documentation is included in the contract file (see 604.803-70).
    (7) Upon completion of 8(a) contracts, the contracting officer shall 
complete the Small Business Administration's Contract Completion Form 
within ten (10) days of contract completion. One copy shall be forwarded 
to SBA, one copy shall be retained in the contract file, and one copy 
shall be sent to OSDBU.
    (8) For classified contracts, the contractor is required to return 
to the Department all classified material received or generated under 
the contract,

[[Page 298]]

or to destroy all classified material, unless retention is requested and 
authorized by the Department. The contracting officer shall notify DS/
PRD/IN of contract completion, final delivery of goods or services or 
the termination of the classified contract. The contracting officer 
shall ensure that any classified material contained in the contract file 
is properly marked and accounted for.
    (9) Closeout documents are available on the Intranet at the A/OPE 
Web site.
    (e) Contract files that have been closed out shall be retained in 
accordance with the schedule in FAR 4.805.
    (f) Contract files for contracts using simplified acquisition 
procedures are considered closed when the contracting officer receives 
evidence of property/services and final payment. Disposal of such files 
shall be as prescribed in FAR 4.805.



604.805  Storage, handling, and disposal of contract files.

    Heads of contracting activities shall prescribe procedures for 
handling, storing, and disposing of contract files. Additional guidance 
on records management may be found in 5 FAM.



              Subpart 604.13_Personal Identity Verification

    Source: 76 FR 20250, Apr. 12, 2011, unless otherwise noted.



604.1301  Policy.

    The DOS official responsible for verifying contractor employee 
personal identity is the Assistant Secretary for Diplomatic Security.

[76 FR 20250, Apr. 12, 2011. Redesignated at 80 FR 6916, Feb. 9, 2015]



604.1303  Contract clause.

[76 FR 20250, Apr. 12, 2011. Redesignated at 80 FR 6916, Feb. 9, 2015]



604.1303-70  DOSAR contract clause.

    The contracting officer shall insert the clause at 652.204-70, 
Department of State Personal Identification Card Policy and Procedures, 
in solicitations and contracts that require contractor employees to 
perform on-site at a DOS location and/or that require contractor 
employees to have access to DOS information systems.

[80 FR 6916, Feb. 9, 2015]



        Subpart 604.16_Unique Procurement Instrument Identifiers

    Source: 80 FR 6916, Feb. 9, 2015, unless otherwise noted.



604.1601  Policy.

    (c)(1) Procurement Instrument Identifier (PIID). Uniform numbers 
shall be assigned to all DOS procurement instruments, domestic and 
overseas. The numbering system applies to all contracts, purchase 
orders, and other related instruments, including solicitation documents 
and delivery orders. This includes instruments executed by DOS 
contracting officers on behalf of other federal agencies. It does not 
include requisitions submitted to a contracting activity, or to 
instruments awarded under Federal assistance arrangements, e.g., grants, 
cooperative agreements, and loans. Numbers shall be placed in 
appropriate spaces on government forms and appear on all documentation 
intended to support official contract files.
    (2) Responsibility. Heads of contracting activities are responsible 
for enforcing compliance with the uniform numbering system. Heads of 
contracting activities shall develop and maintain a system for assigning 
and recording contract numbers that conforms to this section.
    (3) Instrument identification numbers. A 13-character ``alpha-
numeric'' designator shall be assigned to all DOS procurement 
instruments. Positions (beginning at the left) one through six shall 
identify the purchasing office; positions seven and eight, the fiscal 
year in which the number is assigned; position nine, a symbol 
designating a type of procurement instrument; and positions ten through 
thirteen, a four-position serial number.
    (i) The first six positions shall commence with ``S'' to designate a 
DOS-issued contract. The remaining five characters shall identify the 
activity preparing the instrument. Domestic and overseas contracting 
activities shall assign the character codes using

[[Page 299]]

the five-digit designator from the listing at http://www.aope 
procurement reports.com /Report Server-- OPEMS 2008 /Pages /Report 
Viewer. aspx?% 2fDOS Report %2f Post Code List &rs: Command= Render. DOS 
organizations not listed shall contact A/OPE for assignment of an office 
code.
    (ii) The seventh and eighth positions shall be the last two digits 
of the fiscal year in which the number is assigned.
    (iii) The ninth position shall be a capital letter assigned to 
indicate the type of instrument, as follows:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
(A) Blanket Purchase Agreement..................................      A
(B) Invitation for Bids.........................................      B
(C) Contract (includes letter contracts, contracts incorporating       C
 basic agreements and basic ordering agreements)................
(D) Indefinite Delivery Contract................................      D
(E) Reserved. Do not use........................................      E
(F) Delivery/Task Order (includes orders placed against all U.S.      F
 Government contracts, whether issued by DOS or another agency).
(G) Basic Ordering Agreement....................................      G
(H) Basic Agreement.............................................      H
(I) Request for Information/Comment.............................      I
(J) Reserved. Do not use........................................      J
(K) Reserved. Do not use........................................      K
(L) Orders under Blanket Purchase Agreements....................      L
(M) Purchase Order..............................................      M
(N) Reserved. Do not use........................................      N
(O) Do not use this letter......................................      O
(P) Personal services contract..................................      P
(Q) Request for Quotations......................................      Q
(R) Request for Proposals.......................................      R
------------------------------------------------------------------------

    (iv)(A) The tenth through thirteenth positions shall be the serial 
number for the instrument. A separate set of serial numbers may be used 
for any type of instrument listed in paragraph (c)(3)(iii) of this 
section. Each series of numbers for the same activity shall begin with 
the number 0001 at the start of each fiscal year.
    (v)(A) The following illustrates a properly configured contract 
number for the first number assigned to a fiscal year 2015 contract 
awarded by the Department of State, Embassy Ottawa: SCA525-15-C-0001
    (B) Use of the dashes to separate the individual elements of the 
series is optional; however, when reporting individual contract actions 
to the Federal Procurement Data System (see FAR subpart 6.4), dashes 
shall not be used.
    (C) Contracting activities are authorized to use the first digit of 
the serial number (position 10) to establish discrete series of numbers. 
For example, the ``1000'' series may be reserved for Bureau of Consular 
Affairs requirements (domestic), or the ``1000'' series may be reserved 
for Economic section requirements (overseas). Use of discrete series is 
appropriate generally for activities handling large numbers of 
transactions and can provide useful management information.
    (4) Solicitation amendment and contract modification numbers. 
Solicitation amendments are to be numbered sequentially, beginning with 
the alpha designator ``A,'' e.g., A001. Contract modifications shall 
also be numbered sequentially, beginning with the alpha designator 
``M,'' e.g., M001.



                     Subpart 604.70_Contract Review

    Source: 80 FR 6916, Feb. 9, 2015, unless otherwise noted.



604.7001  Policy.

    The contracting officer shall review each proposed contractual 
document and its supporting file for completeness and accuracy. Each 
contract file shall contain all pertinent information applicable to the 
proposed action. Each contract file should be in sufficient detail to 
permit reconstruction of all significant events by any subsequent 
reviewer without referral to the individual responsible for the 
contractual action.



604.7002  Procedures.

    (a) Overseas contracting activities. (1) A/OPE reviews all 
procurements that exceed the warrant levels of post contracting 
officers. Post contracting officers may request A/OPE review and 
assistance for transactions below this level.
    (2) Personal services agreements. Prior A/OPE approval is not 
applicable to personal services agreements, as they are not subject to 
procurement statute and regulation.
    (b) Domestic contracting activities and Regional Procurement Support 
Offices. A/OPE reviews domestic acquisitions as described in the A/LM/
AQM Quality Assurance Plan.
    (c) Delegation or waiver. The Procurement Executive may delegate or 
waive the review requirements. In such instances, the Procurement 
Executive

[[Page 300]]

shall provide to each head of the contracting activity, as appropriate, 
a written delegation or waiver of these requirements.



          Subpart 604.71_Procurement Quality Assurance Program

    Source: 80 FR 6916, Feb. 9, 2015, unless otherwise noted.



604.7101  Purpose.

    A procurement quality assurance program is essential to the 
effective operation of each domestic contracting activity. Each domestic 
contracting activity and RPSO shall develop a quality assurance plan for 
review and approval of contract actions to ensure that all requirements 
of law, regulation, Departmental policy, and sound procurement practices 
are met, the taxpayer's interests are adequately protected, and the 
Department's mission is well-served. Post quality assurance includes A/
OPE review of actions exceeding warrant levels and Staff Assistance 
Visits (SAVs).



604.7102  Contracting activity reviews.



604.7102-1  Peer reviews.

    All contract actions above the simplified acquisition threshold 
shall be independently reviewed by at least one other qualified 
contracting professional. This includes solicitations, contracts, 
contract modifications, and delivery/task orders. This requirement is 
waived for overseas posts and RPSOs that have only one qualified 
contracting professional.



604.7102-2  Form and scope of review

    (a) The review shall focus on both compliance with statutory/
regulatory requirements as well as good contracting practices. Reviews 
shall be included in the official contract file along with documentation 
regarding the actions taken in response to the review.
    (b) Reviews should be limited in time to prevent unnecessary 
procurement lead-time, but thorough in scope, considering all documents 
in the contract file and all relevant contracting issues. Checklists may 
be used to facilitate a thorough review, as appropriate.



604.7102-3  Approval.

    The solicitation, contract, or contract modification being reviewed 
shall not be issued until all review comments requiring corrective 
action are satisfactorily resolved. Waivers shall not be granted except 
in unusual circumstances, and shall be approved in advance by the head 
of the contracting activity.



604.7103  Review by Assistant Legal Adviser for Buildings and Acquisitions
(L/BA).

    (a) L/BA shall review solicitations, contract awards, and delivery 
orders against GSA Federal Supply Schedule contracts exceeding $1 
million that are generated by domestic contracting activities, including 
RPSOs. L/BA shall also review domestic contract modifications exceeding 
$1 million if the scope or ceiling of the contract may be in question. 
This review is not required for modifications exercising priced options, 
incremental funding modifications, and similar actions that do not 
involve questions regarding the scope or ceiling of the contract.
    (b) L/BA shall also review and approve any nonpersonal services 
contract, purchase order or blanket purchase agreement to be awarded to 
an individual who is a U.S. citizen.



      Subpart 604.72_Secure Procurement for Controlled Access Areas



604.7201  Policy.

    A/LM issues procedures for the acquisition of secure items that are 
needed by overseas posts. Posts shall contact A/LM/AQM regarding secure 
procurement matters, and shall consult the periodic guidance issued by 
A/LM on this subject.

[[Page 301]]



            SUBCHAPTER B_COMPETITION AND ACQUISITION PLANNING





PART 605_PUBLICIZING CONTRACT ACTIONS--Table of Contents



           Subpart 605.2_Synopses of Proposed Contract Actions

Sec.
605.202  Exceptions.
605.202-70  Foreign acquisitions.
605.207  Preparation and transmittal of synopses.
605.207-70  Acquisitions available from only one responsible source.

                Subpart 605.3_Synopses of Contract Awards

605.303  Announcement of contract awards.

                  Subpart 605.4_Release of Information

605.403  Requests from Members of Congress.
605.404  Release of long-range acquisition estimates.
605.404-1  Release procedures.

                    Subpart 605.5_Paid Advertisements

605.502  Authority.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26164, July 11, 1988, unless otherwise noted.



           Subpart 605.2_Synopses of Proposed Contract Actions



605.202  Exceptions.



605.202-70  Foreign acquisitions.

    (a) Policy. In accordance with a Determination and Findings issued 
by the Assistant Secretary of State for Administration, the requirement 
for advance notices in the Governmentwide point of entry (GPE) for the 
Department's foreign acquisitions awarded by overseas contracting 
activities is waived. GPE notices may be published for any acquisition 
where the contracting officer decides that publication would be in the 
Department's best interests.
    (b) Procedures. Contracting officers at overseas contracting 
activities are not required to prepare an individual determination and 
findings to document their decision to waive the GPE notice 
requirements.
    (c) Competition requirements. Nothing in this section waives the 
requirement to obtain competition as required by FAR part 6 and DOSAR 
(48 CFR) part 606. Competition, including the use of written 
solicitation, shall be obtained in all cases to the extent feasible. If 
there are known U.S. firms or firms with U.S. affiliations in local 
residence capable of supplying the required supplies or services, the 
contracting activity shall ensure that those firms are included in the 
source list for the acquisition.
    (d) Policy exclusions. GPE waiver authority does not apply to local 
guard service contracts exceeding $250,000, or any contracts exceeding 
$5 million. Local guard service contracts that exceed $250,000 and other 
contracts that exceed $5 million shall be published in the GPE. Option 
year prices shall be included when computing the applicability of this 
threshold.

[60 FR 39662, Aug. 3, 1995, as amended at 64 FR 43621, Aug. 11, 1999; 69 
FR 19331, Apr. 13, 2004]



605.207  Preparation and transmittal of synopses.

    (a)(1) Contracting officers at overseas posts shall submit notices 
of proposed contract actions to A/OPE for electronic transmittal to the 
GPE. Alternately, posts may obtain a user ID and password that allows 
direct registration and issuance of the notice in the GPE. Posts should 
contact A/OPE for assistance in obtaining the ID and password if they 
choose to directly input the notice information.

[80 FR 6917, Feb. 9, 2015]



605.207-70  Acquisitions available from only one responsible source.

    In addition to the information required at FAR 5.207, each notice of 
a proposed acquisition from only one responsible source shall include 
descriptions of the specific qualifications or capabilities required to 
perform the

[[Page 302]]

work and the information a potential source must submit.

[53 FR 26164, July 11, 1988, as amended at 69 FR 19331, Apr. 13, 2004]



                Subpart 605.3_Synopses of Contract Awards



605.303  Announcement of contract awards.

    (a) Contracting officers shall make information available on awards 
over $10 million to the Bureau of Legislative Affairs, upon request, in 
sufficient time for an announcement by 5:00 p.m. Washington, DC time on 
the day of the award. This requirement applies only to awards made by 
domestic contracting activities where performance will take place within 
the United States or its possessions.

[59 FR 66755, Dec. 28, 1994, as amended at 64 FR 43621, Aug. 11, 1999; 
69 FR 19331, Apr. 13, 2004]



                  Subpart 605.4_Release of Information



605.403  Requests from Members of Congress.

    The Procurement Executive is the agency head for the purposes of FAR 
5.403.

[59 FR 66755, Dec. 28, 1994, as amended at 72 FR 45695, Aug. 15, 2007]



605.404  Release of long-range acquisition estimates.



605.404-1  Release procedures.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 5.404-1(a) and the agency head for the purposes of FAR 
5.404-1(b).

[55 FR 5774, Feb. 16, 1990]



                    Subpart 605.5_Paid Advertisements



605.502  Authority.

    (a) For paid advertisements in newspapers within the United States, 
the head of the contracting activity is the agency head's designee for 
the purposes of FAR 5.502(a). For acquisitions by overseas posts 
necessitating paid advertisements in newspapers outside the United 
States, the head of the contracting activity is the agency's head's 
designee for the purposes of FAR 5.502(a). When the head of the 
contracting activity is the contracting officer for the acquisition, no 
further approvals are necessary.

[59 FR 66755, Dec. 28, 1994]



PART 606_COMPETITION REQUIREMENTS--Table of Contents



   Subpart 606.2_Full and Open Competition After Exclusion of Sources

Sec.
606.202  Establishing or maintaining alternative sources.

           Subpart 606.3_Other Than Full and Open Competition

606.302  Circumstances permitting other than full and open competition.
606.302-1  Only one responsible source and no other supplies or services 
          will satisfy agency requirements.
606.302-4  International agreement.
606.302-6  National security.
606.302-7  Public interest.
606.303  Justifications.
606.303-1  Requirements.
606.303-2  Content.
606.304  Approval of the justification.
606.304-70  Acquisitions by overseas posts.
606.370  Department of State standardization program.

                 Subpart 606.5_Advocates for Competition

606.501  Requirement.
606.501-70  Overseas posts.
606.570  Solicitation provision.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26165, July 11, 1988, unless otherwise noted.



   Subpart 606.2_Full and Open Competition After Exclusion of Sources



606.202  Establishing or maintaining alternative sources.

    The Procurement Executive is the agency head for the purposes of FAR 
6.202.

[[Page 303]]



           Subpart 606.3_Other Than Full and Open Competition



606.302  Circumstances permitting other than full and open competition.



606.302-1  Only one responsible source and no other supplies or services 
will satisfy agency requirements.

    (b)(4) The Procurement Executive is the agency head for the purposes 
of FAR 6.302-1(b)(4).

[59 FR 66755, Dec. 28, 1994]



606.302-4  International agreement.

    (b)(2) In accordance with FAR 6.302-4, guard services shall be 
acquired from the host government only when it is the sole available 
source.

[59 FR 66755, Dec. 28, 1994]



606.302-6  National security.

    (b) This subsection applies to all acquisitions involving national 
security information, regardless of dollar amount. In no case shall 
information be classified in order to restrict competition. Information 
may be classified only when its authorized disclosure could be expected 
to cause damage to national security.
    (c)(1) The Chief, Controls Division, Office of Intelligence Liaison, 
Directorate for Coordination, Bureau of Intelligence and Research, is 
responsible for reviewing and certifying on any proposed acquisitions 
derived from or funded or administered by intelligence community 
agencies that involve sensitive compartmented information and ensuring 
that the provisions of Executive Order 13526 and FAR 6.302-6 have been 
met. The Office Director, Office of Information Security, Security 
Infrastructure Directorate, Bureau of Diplomatic Security (DS/SI/IS) is 
responsible for reviewing and certifying on all other proposed 
acquisitions funded by the Department of State that involve national 
security information and ensuring that the provisions of Executive Order 
13256 and FAR 6.302-6 have been met. When disclosure of the Department's 
needs through full and open competition would compromise national 
security, the Justification for Other than Full and Open Competition 
shall include the following specific information:
    (i) How national security would be compromised if the Department of 
State's (or other agencies') needs were disclosed in the GPE;
    (ii) Why the GPE notice cannot be worded in such a manner that 
national security would not be compromised;
    (iii) Necessity for access to classified information to prepare 
technical and/or cost proposal and level of security clearance required;
    (iv) Necessity for access to classified information to perform the 
proposed contract and level of security clearance required;
    (v) Number and value of contracts that the justification covers; and
    (vi) A statement as follows: ``I hereby certify that the national 
security concerns of the referenced acquisition(s) meet the criteria set 
forth in Executive Order 12958 and FAR 6.302-6''.
    (2) Any acquisition involving national security information shall be 
publicized in the GPE unless disclosure of the agency's needs would 
compromise national security.
    (3) The contracting officer is responsible for soliciting offers 
from as many potential sources as is practicable under the 
circumstances. However, given the sensitivity required for acquisitions 
involving national security information, it is expected that 
requirements offices will work closely with the contracting officer in 
maximizing competition.

[59 FR 66755, Dec. 28, 1994, as amended at 64 FR 43621, Aug. 11, 1999; 
69 FR 19331, Apr. 13, 2004; 72 FR 45695, Aug. 15, 2007; 80 FR 6918, Feb. 
9, 2015]



606.302-7  Public interest.

    The authority to approve the determination prescribed in FAR 6.302-
7(c) is reserved to the Secretary of State.



606.303  Justifications.



606.303-1  Requirements.

    Justifications for contract actions prescribed in FAR 6.303-1(d) 
shall be forwarded by the contracting officer to A/OPE for transmittal 
to the Office of

[[Page 304]]

the United States Trade Representative.

[53 FR 26165, July 11, 1988, as amended at 59 FR 66755, Dec. 28, 1994]



606.303-2  Content.

    (a) All justifications shall address the requirements of FAR 6.303-
2. A sample Justification for Other than Full and Open Competition for 
acquisitions by both overseas posts and domestic contracting activities 
is available on the A/OPE Intranet Web site. Use of the format for 
overseas posts is mandatory; domestic contracting activities may develop 
their own format based on the sample. In addition, sample formats are 
provided for posts to justify motor vehicle and household appliance 
purchases made in accordance with the Department's standardization 
program (see 606.370(b)). All applicable approvals are as indicated on 
the formats. The justification must be completed and signed by the 
appropriate individuals.
    (b)(9) All justifications for acquisitions exceeding $5 million 
shall include a copy of the acquisition plan, as required by 607.103(d).

[80 FR 6918, Feb. 9, 2015]



606.304  Approval of the justification.

    (a)(2) The approval authority for a proposed contract within the 
dollar range set forth in FAR 6.304(a)(2) for domestic contracting 
activities that do not have an advocate for competition is the 
Department Advocate for Competition.

[59 FR 66755, Dec. 28, 1994, as amended at 64 FR 43621, Aug. 11, 1999; 
72 FR 45695, Aug. 15, 2007; 80 FR 6918, Feb. 9, 2015; 81 FR 24707, Apr. 
27, 2016]



606.304-70  Acquisitions by overseas posts.

    The Departmental Advocate for Competition is the approval authority 
for the purposes of FAR 6.304(a)(3). This authority is not redelegable. 
Any such justification must be transmitted through the Principal Officer 
at the overseas post.

[59 FR 66756, Dec. 28, 1994, as amended at 80 FR 6918, Feb. 9, 2015]



606.370  Department of State standardization program.

    (a) It is the Department's policy to promote full and open 
competition in all procurement actions. The authority at 41 U.S.C. 
3304(a)(1)shall be used with respect to standardization when only 
specified makes and models of equipment will satisfy the Department's 
needs and only one source is available. This policy applies to all 
acquisitions involving standardization, regardless of dollar amount.
    (b) Contracts awarded under the authority at 41 U.S.C. 
3304(a)(1)shall be supported by the written justification described in 
FAR 6.303. The contracting officer, requirements office, procuring 
activity advocate for competition, and the Procurement Executive shall 
approve all Justifications for Other than Full and Open Competition that 
cite standardization of technical equipment as justification to restrict 
competition. The Management Officer at each post is the procuring 
activity advocate for competition for that post and the requirements 
office at post is the embassy functional office responsible for 
identifying the need to contract.
    (c) Procurement of specified makes and models of technical equipment 
and systems, for which there is only one source of supply, is considered 
other than full and open competition. Such procurements shall be 
supported by an approved Justification for Other than Full and Open 
Competition. The justification shall include the content requirements of 
FAR 6.303-2. The justification shall also address potential cost savings 
in areas such as inventory, operations, training, maintenance, repairs, 
and administrative and management support. Areas of consideration for 
potential cost savings shall be supported by detailed estimates as 
attachments to the justification. Justifications shall specify an 
effective period, which shall bear a reasonable relationship to the life 
of the technical equipment. The effective period shall not exceed six 
years with a review at the end of the first three years. Periodic 
reviews shall be made during the standardization period to determine 
whether

[[Page 305]]

the standardization should be continued, revised or canceled.

[59 FR 66756, Dec. 28, 1994, as amended at 69 FR 19331, Apr. 13, 2004; 
80 FR 6918, Feb. 9, 2015]



                 Subpart 606.5_Advocates for Competition



606.501  Requirement.

    (a) The Procurement Executive is the head of the agency for the 
purposes of FAR 6.501 and designates the Department Advocate for 
Competition.
    (b) A contracting activity advocate for competition has been 
designated for A/LM/AQM. A/LM/AQM's advocate for competition is also 
designated the contracting activity advocate for competition for the 
Regional Procurement Support Offices. The Department Advocate for 
Competition is the activity advocate for competition for all other 
domestic contracting activities.

[59 FR 66756, Dec. 28, 1994, as amended at 64 FR 43622, Aug. 11, 1999; 
69 FR 19331, Apr. 13, 2004, as amended 80 FR 6918, Feb. 9, 2015; 81 FR 
24707, Apr. 27, 2016]



606.501-70  Overseas posts.

    The Management Officer at each overseas post is the advocate for 
competition for that post.

[53 FR 26165, July 11, 1988, as amended at 69 FR 19331, Apr. 13, 2004; 
80 FR 6918, Feb. 9, 2015]



606.570  Solicitation provision.

    The contracting officer shall insert the provision at 652.206-70, 
Advocate for Competition/Ombudsman, in all solicitations exceeding the 
simplified acquisition threshold.

[64 FR 43622, Aug. 11, 1999, as amended at 80 FR 6918, Feb. 9, 2015]



PART 607_ACQUISITION PLANNING--Table of Contents



                     Subpart 607.1_Acquisition Plans

Sec.
607.102  Policy.
607.103  Agency-head responsibilities.
607.105  Contents of written acquisition plans.

             Subpart 607.5_Inherently Governmental Functions

607.503  Policy.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.



607.102  Policy.

    It is the Department's policy that every acquisition be conducted 
and the contract file documented in conformance with the requirements 
for acquisition planning pursuant to FAR part 7.

[80 FR 6918, Feb. 9, 2015]



607.103  Agency-head responsibilities.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 7.103.
    (d) Domestic requirements offices must develop a formal, written 
acquisition plan for all acquisitions exceeding $5 million. This 
includes base period plus all option years. The plan shall address the 
content requirements of FAR 7.105.
    (j) Acquisition plans for service contracts with an anticipated 
annual expenditure exceeding $25 million must be approved by the bureau 
Assistant Secretary.

[55 FR 5774, Feb. 16, 1990, as amended at 80 FR 6918, Feb. 9, 2015]



607.105  Contents of written acquisition plans.

    (b)(10) Acquisition Plans for support of contract administration and 
other tasks closely related to inherently governmental functions must 
include a determination that the services being requested are not 
inherently governmental and a risk mitigation strategy. Procurement 
Information Bulletin (PIB) 2011-11, Attachment 1, lists functions 
requiring additional oversight and potential mitigation strategies.
    (b)(19) Acquisition Plans must include planning for contract 
administration. Planning shall be developed by the bureau technical 
program office and should consider an initial assessment of resources 
required for contractor oversight, support, travel and communications. 
Planning should take into account the need for multiple

[[Page 306]]

technical monitors based on geographic dispersion and multiple technical 
disciplines. Program offices must identify financial and other resources 
that are reserved for implementation of contract administration.

[80 FR 6918, Feb. 9, 2015]



             Subpart 607.5_Inherently Governmental Functions

    Source: 80 FR 6918, Feb. 9, 2015, unless otherwise noted.



607.503  Policy.

    (e) Requirements offices shall provide to the contracting officer a 
written determination that none of the functions to be performed are 
inherently governmental. This determination shall be included with the 
procurement request package, which is transmitted to the contracting 
officer to initiate an action. The Form DS-4208 may be used to meet this 
requirement. The contracting officer shall obtain review from the 
Assistant Legal Adviser for Buildings and Acquisitions (L/BA) of any 
request package that the contracting officer determines raises 
substantial questions as to the performance of inherently governmental 
functions. Disagreements regarding the determination shall be resolved 
by the head of the contracting activity.



PART 608_REQUIRED SOURCES OF SUPPLIES AND SERVICES--Table of Contents



                 Subpart 608.4_Federal Supply Schedules

608.405  Ordering procedures for Federal Supply Schedules.
608.405-3  Blanket Purchase Agreements.

       Subpart 608.8_Acquisition of Printing and Related Services

Sec.
608.802  Policy.

Subpart 608.70_Acquisition of Official Vehicles by Overseas Contracting 
                               Activities

608.7001  Definitions.
608.7002  Acquisitions for the Department of State.
608.7003  Acquisitions on behalf of other Federal agencies.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 80 FR 6919, Feb. 9, 2015, unless otherwise noted.



                 Subpart 608.4_Federal Supply Schedules

    Source: 81 FR 24707, Apr. 27, 2016, unless otherwise noted.



608.405  Ordering procedures for Federal Supply Schedules.



608.405-3  Blanket Purchase Agreements.

    (a) Establishment.
    (3)(ii) The Procurement Executive is the head of the agency for the 
purposes of FAR 8.405-3(a)(3)(ii).



       Subpart 608.8_Acquisition of Printing and Related Services



608.802  Policy.

    (a)(4) In accordance with Section 2(a) of the State Department Basic 
Authorities Act of 1956, as amended (22 U.S.C. 2669), overseas printing 
and binding services may be acquired from sources other than the 
Government Printing Office.
    (b) The DOS central printing authority is the Director, Global 
Publishing Solutions under the Deputy Assistant Secretary for Global 
Information Services.



Subpart 608.70_Acquisition of Official Vehicles by Overseas Contracting 
                               Activities



608.7001  Definitions.

    Official vehicle means a U.S. Government-owned or leased motor 
vehicle that is fueled by petroleum or electric batteries, has a minimum 
of four wheels, and is designed primarily for use on highways, such as 
sedans, station wagons, buses, carryalls, and trucks.



608.7002  Acquisitions for the Department of State.

    (a) A/LM funds and controls the acquisition of official vehicles 
required

[[Page 307]]

by overseas posts. Accordingly, any acquisition of official vehicles by 
overseas contracting activities must be approved and authorized in 
advance by A/LM.
    (b) GSA is the mandatory source for U.S. manufactured vehicles 
acquired in the United States. Purchase requests are submitted by A/LM 
to GSA on behalf of overseas posts. Overseas posts shall use U.S. 
manufactured vehicles unless justified as described in paragraph (c) of 
this section.
    (c) Overseas posts may acquire non-U.S. manufactured vehicles only 
in special cases that are approved in advance. Requests to purchase non-
U.S. manufactured vehicles may be justified under the conditions 
specified in 6 FAM 228.9-3(B)(c). The request shall be submitted to A/LM 
for approval. If approval is granted to acquire non-U.S. manufactured 
vehicles from the local economy, overseas posts shall follow the normal 
procedures in the FAR.
    (d) Standardization of motor vehicles shall follow the procedures in 
606.370.



608.7003  Acquisitions on behalf of other Federal agencies.

    (a) Acquisition of U.S. manufactured vehicles. (1) GSA is the 
mandatory source for official vehicles purchased in the United States 
for all Federal agencies. Non-DOS agencies must have a waiver from GSA 
that allows them to acquire official vehicles from sources in the United 
States other than GSA, in accordance with the Federal Property 
Management Regulation, 41 CFR 101-38.104.
    (2) DOS overseas contracting activities shall not obtain GSA waivers 
or acquire vehicles through GSA or directly from sources in the United 
States on behalf of other agencies. Requests to acquire vehicles in this 
manner shall be returned to the requesting agency without action, and 
the agency instructed to use its own contracting personnel or GSA for 
this purpose.
    (b) Acquisition from non-U.S. sources. No GSA waiver is required for 
official vehicles purchased outside the United States from non-U.S. 
sources. Normal acquisition procedures shall be followed. However, 
contracting officers should be aware that statutory ceilings apply to 
the acquisition of passenger vehicles (i.e., sedans and station wagons) 
(see P.L. 103-329), so other agencies shall not request that posts 
acquire vehicles without providing an analysis of how the price compares 
with this ceiling.



PART 609_CONTRACTOR QUALIFICATIONS--Table of Contents



                Subpart 609.2_Qualifications Requirements

Sec.
609.202  Policy.
609.206  Acquisitions subject to qualification requirements.
609.206-1  General.

         Subpart 609.4_Debarment, Suspension, and Ineligibility

609.402  Policy.
609.403  Definitions.
609.403-70  DOSAR definitions.
609.404  System for Award Management Exclusions.
609.404-70  Specially Designated Nationals List.
609.405  Effect of listing.
609.405-1  Continuation of current contracts.
609.405-2  Restrictions on subcontracting.
609.406  Debarment.
609.406-1  General.
609.406-3  Procedures.
609.407  Suspension.
609.407-1  General.
609.407-3  Procedures.

   Subpart 609.5_Organizational and Consultant Conflicts of Interests

609.503  Waiver.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26165, July 11, 1988, unless otherwise noted.



                Subpart 609.2_Qualifications Requirements



609.202  Policy.

    The authority prescribed in FAR 9.202(a)(1) is delegated, without 
power of redelegation, to the head of the contracting activity.

[53 FR 26165, July 11, 1988, as amended at 59 FR 66756, Dec. 28, 1994]

[[Page 308]]



609.206  Acquisitions subject to qualification requirements.



609.206-1  General.

    (b) The authority prescribed in FAR 9.206-1(b) is delegated, without 
power of redelegation, to the head of the contracting activity.

[64 FR 43622, Aug. 11, 1999]



         Subpart 609.4_Debarment, Suspension, and Ineligibility



609.402  Policy.

    The Procurement Executive is the agency head's designee to be the 
debarring official and the suspending official.

[80 FR 6919, Feb. 9, 2015]



609.403  Definitions.

[53 FR 26165, July 11, 1988, as amended at 80 FR 6919, Feb. 9, 2015]



609.403-70  DOSAR definitions.

    Fact-finding official means the individual designated by the 
debarring official to conduct additional proceedings as necessary 
concerning disputed material facts.

[81 FR 51125, Aug. 3, 2016]



609.404  System for Award Management Exclusions.

    A/OPE shall accomplish the agency responsibilities prescribed in FAR 
9.404(c)(1) through (6). The authority to establish procedures 
prescribed in FAR 9.404(c)(7) is delegated, without power of 
redelegation, to the head of the contracting activity.

[80 FR 6919, Feb. 9, 2015]



609.404-70  Specially Designated Nationals List.

    Contracting officers shall not award to any of the entities listed 
on the Specially Designated Nationals (SDN) List, available on the 
Department of Treasury's Office of Foreign Assets Control Web site at 
http://www.treas.gov/ofac/. Contracting officers shall consult this list 
prior to award for any dollar amount. This list is included in searches 
conducted on the System for Award Management (SAM) Web site at https://
www.sam.gov.

[80 FR 6919, Feb. 9, 2015]



609.405  Effect of listing.

    (a) The Procurement Executive is the agency head's designee for the 
purposes of FAR 9.405(a).
    (d)(3) The Procurement Executive is the agency head's designee for 
the purposes of FAR 9.405(d)(3).

[59 FR 66756, Dec. 28, 1994, as amended at 60 FR 39662, Aug. 3, 1995; 64 
FR 43622, Aug. 11, 1999; 69 FR 19331, Apr. 13, 2004]



609.405-1  Continuation of current contracts.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 9.405-1. The decision whether to terminate a current 
contract shall be made in consideration of the circumstances listed in 
649.101-70.

[53 FR 26165, July 11, 1988, as amended at 81 FR 51125, Aug. 3, 2016]



609.405-2  Restrictions on subcontracting.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 9.405-2.



609.406  Debarment.



609.406-1  General.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 9.406-1(c).



609.406-3  Procedures.

    (a) Investigation and referral. (1) DOS employees aware of any cause 
that might serve as the basis for debarment shall refer those cases 
through the contracting officer to the debarring official. The debarring 
official shall refer to the Office of the Inspector General all reported 
cases that involve possible criminal or fraudulent activities for 
investigation by that office.
    (2) Referrals for consideration of debarment shall include, as 
appropriate and available--
    (i) The cause for debarment (see FAR 9.406-2);
    (ii) A statement of facts;
    (iii) Copies of supporting documentary evidence and a list of all 
necessary

[[Page 309]]

or probable witnesses, including addresses and telephone numbers, 
together with a statement concerning their availability to appear at a 
fact-finding proceeding and the subject matter of their testimony;
    (iv) A list of all contractors involved, either as principals or as 
affiliates, including current or last known home and business addresses 
and ZIP codes;
    (v) A statement of the acquisition history with such contractors;
    (vi) A statement concerning any known pertinent active or potential 
criminal investigation, criminal or civil court proceedings, or 
administrative claim before Boards of Contract Appeals; and
    (vii) A statement from each DOS organizational element affected by 
the debarment action as to the impact of a debarment on DOS programs.
    (3) As deemed appropriate, the debarring official may conduct 
investigations to supplement the information provided in the referral, 
or may request investigations by the Office of the Inspector General or 
other Department office.
    (b) Decisionmaking process. (1) If the contractor does not respond 
to a debarment notice within 30 calendar days after receipt of the 
notice, the debarring official may put the debarment into effect.
    (2) In response to the debarment notice, if the contractor or its 
representative notifies the debarring official within 30 days after 
receipt of the notice that it wants to present information and arguments 
in person to the debarring official, that official, or a designee, shall 
chair such a meeting. The oral presentation shall be conducted 
informally and a transcript need not be made. However, the contractor 
may supplement its oral presentation with written information and 
arguments for inclusion in the administrative record.
    (3) Pursuant to FAR 9.406-3(b)(2), the contractor may request a 
fact-finding proceeding.
    (4) The debarring official shall designate a fact-finding official 
and shall provide the fact-finding official with a copy of all 
documentary evidence considered in proposing debarment. Upon receipt of 
such material, the fact-finding official shall notify the contractor and 
schedule a hearing date.
    (5) In addition to the purposes provided in FAR 9.406-3(b)(2), the 
hearing is intended to provide the debarring official with findings of 
fact based on a preponderance of evidence submitted to the fact-finding 
official and to provide the debarring official with a determination as 
to whether a cause for debarment exists, based on the facts as found.
    (6) The fact-finding proceeding shall be conducted in accordance 
with procedures determined by the fact-finding official. The rules shall 
be as informal as is practicable, consistent with FAR 9.406-3(b). The 
fact-finding official is responsible for making the transcribed record 
of the hearing, unless the contractor and the fact-finding official 
agree to waive the requirement for a transcript.
    (7) The fact-finding official shall deliver written findings and the 
transcribed record, if made, to the debarring official. The findings 
shall resolve any facts in dispute based on a preponderance of the 
evidence presented and recommend whether a cause for debarment exists.
    (c) Notice of proposal to debar. (1) Upon receipt of a complete 
referral and after consulting with the Office of the Legal Adviser, the 
debarring official shall decide whether to initiate debarment action.
    (2) When a determination is made to initiate action, the debarring 
official shall provide to the contractor and any specifically named 
affiliates written notice in accordance with FAR 9.406-3(c).
    (3) When a determination is made not to initiate action, the 
debarring official shall so advise the DOS officer who made the 
referral.
    (d) Debarring official's decision. In addition to complying with FAR 
9.406-3(d) and (e), the debarring official shall provide single copies 
of the decision to each DOS organizational element affected by the 
decision.

[53 FR 26165, July 11, 1988; 53 FR 36461, Sept. 20, 1988, as amended at 
64 FR 43622, Aug. 11, 1999; 69 FR 19331, Apr. 13, 2004; 81 FR 51126, 
Aug. 3, 2016]

[[Page 310]]



609.407  Suspension.



609.407-1  General.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 9.407-1(d).



609.407-3  Procedures.

    (a) Investigation and referral. Investigation and referral shall be 
accomplished as provided in 609.406-3(a), except that referrals made to 
the suspending official shall cite causes pertinent to a suspension 
action (see FAR 9.407-2).
    (b) Decisionmaking process. (1) If the contractor does not respond 
to a notice of suspension within 30 calendar days after receipt of the 
notice, the suspending official may proceed with completion of 
investigation.
    (2) The DOS decisionmaking process for a suspension action pursuant 
to FAR 9.407-3(b) follow those established for a debarment action (see 
609.406(b)), except that the contractor may request and shall be 
entitled to a hearing before the fact-finding official only if permitted 
under FAR 9.407-3(b)(2).
    (c) Notice of suspension. Notice of suspension shall be accomplished 
as provided in 609.406-3(a), except that the suspending official shall 
process the notice in accordance with FAR 9.407-3(c).
    (d) Suspending official's decision. In addition to complying with 
FAR 9.407-3(d), the suspending official shall provide single copies of 
the decision to each DOS organizational element affected by the 
decision.

[53 FR 26165, July 11, 1988, as amended at 81 FR 51128, Aug. 3, 2016]



   Subpart 609.5_Organizational and Consultant Conflicts of Interests



609.503  Waiver.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 9.503.



PART 611_DESCRIBING AGENCY NEEDS--Table of Contents



Sec.
611.002  Policy.
611.002-70  Metric system implementation.

      Subpart 611.1_Selecting and Developing Requirements Documents

611.103  Market acceptance.

                    Subpart 611.5_Liquidated Damages

611.501  Policy.

                Subpart 611.6_Priorities and Allocations

611.600  Scope of subpart.
611.602  General.
611.603  Procedures.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

    Source: 64 FR 43622, Aug. 11, 1999, unless otherwise noted.



611.002  Policy.



611.002-70  Metric system implementation.

    (a) Policy. The Metric Conversion Act of 1975, as amended by the 
Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 205a, et seq.), 
requires Federal agencies to establish implementing guidelines pursuant 
to metric policy to adopt the metric system as the preferred system of 
weights and measurements for United States trade and commerce. This 
section establishes the Department of State's metric conversion 
guidelines.
    (b) Applicability. This section applies to all DOS acquisitions, 
except to the extent that such use is impractical or is likely to cause 
significant inefficiencies or loss of markets to U.S. firms.
    (c) Definitions.
    Dual system means the use of both traditional and metric systems. 
For example, an item is designated, produced and described in inch-pound 
values with soft metric values also shown for information or comparison.
    Hard metric means the use of only standard metric (SI) measurements 
in specifications, standards, supplies and services.
    Hybrid system means the use of both traditional and hard metric 
values in specifications, standards, supplies and services.
    Measurement sensitive means any item having an application or 
meaning depending substantially on some measured quantity. For example, 
measurement sensitive items include product

[[Page 311]]

or performance criteria and standards binding on others, such as 
emission levels, size and weight limitations, etc.
    Metric system means the International System of Units (Le System 
International d'Unites (SI)) of the International Bureau of Weights and 
Measures.
    Metrication means any act that increases metric system use, 
including metric training and initiation or conversion of measurement 
sensitive processes and systems to the metric system.
    Soft metric means the result of mathematical conversion of inch-
pound measurements to metric equivalents. The physical dimensions, 
however, are not changed.
    Traditional system of weights and measurements means the predominant 
weight and measurement system currently used in the United States, also 
referred to as the ``inch-pound system.'' The traditional system 
includes such commonly used units as inch, foot, yard, mile, pint, 
quart, gallon, bushel, ounce (fluid and avoirdupois), pound, degree 
Fahrenheit, ampere, candela, and second.
    (d) Procedures. (1) DOS contracting activities shall implement the 
metric system in a manner consistent with 15 U.S.C. 205a, et seq.
    (2) All DOS contracting activities shall use the metric system in 
acquisition consistent with security, operations, economic, technical, 
logistical, training and safety requirements.
    (3) The Department shall encourage industry to adopt the metric 
system by acquiring commercially available metric products and services 
that meet the Department's needs whenever practical. Toward this end, 
solicitations for DOS acquisitions shall:
    (i) State all measurement sensitive requirements in metric terms 
whenever possible. Alternatives to hard metric are soft, dual and hybrid 
metric terms. The Metric Handbook for Federal Officials regarding the 
selection of proper metric units and symbols is available from the 
National Technical Information Service; and
    (ii) For contracts expected to exceed $500,000 contracting officers 
shall return to the requirements office all specifications and 
statements of work that are not expressed in some form of metric terms 
unless the requirements office has prepared a justification, for the 
approval of the contracting officer, for the use of non-metric 
specifications or statements of work. The justification shall be in a 
format as prescribed by the head of the contracting activity. Option 
year prices shall be considered when computing the $500,000 threshold.
    (4) Waivers are not required when ordering from Federal Supply 
Schedules.
    (5) Valid justifications for non-metric specifications or statements 
of work include, but are not limited to:
    (i) Existing specifications or standards are in inch-pound units, 
unless conversion of the existing specifications or standards is 
necessary or advantageous to the Government. Unnecessary retrofit of 
existing systems with new metric components should be avoided if the 
total cost of the retrofit, including redesign costs, exceeds $50,000;
    (ii) Metric is not the accepted industry system with respect to a 
business-related activity; however, soft, hybrid, or dual systems may be 
used during the transition to hard metric;
    (iii) The use of metric is impractical or is likely to cause 
significant inefficiencies or loss of markets to U.S. firms.
    (6) The contracting officer shall review and, if acceptable, approve 
the waiver prior to the release of the solicitation. The waiver shall be 
placed in the contract file. If the waiver is not approved, the 
contracting officer shall return it to the requirements office with an 
explanation for the disapproval.
    (7) The in-house operating metric costs shall be identified. 
Identification includes, but is not limited to, the cost of metric aids, 
tools, equipment, training and increased cost to develop metric 
specifications. All contracting activities and requirements offices 
shall maintain a record of any costs and/or savings brought about by 
metric conversion.
    (8) Bulk (loose, unpacked) materials shall be specified and 
purchased in metric or dual units.
    (9) Measuring devices, shop and laboratory equipment shall be 
purchased in metric or dual units.

[[Page 312]]

    (10) Shipping allowances, bills of lading and other shipping 
documents shall be expressed in metric or dual units.



      Subpart 611.1_Selecting and Developing Requirements Documents



611.103  Market acceptance.

    (a) The head of the contracting activity is the agency head for the 
purpose of FAR 11.103(a).



                    Subpart 611.5_Liquidated Damages



611.501  Policy.

    (d) The head of the contracting activity is the agency head for the 
purpose of FAR 11.501(d).

[64 FR 43622, Aug. 11, 1999. Redesignated and amended at 71 FR 34839, 
June 16, 2006]



                Subpart 611.6_Priorities and Allocations

    Source: 69 FR 19332, Apr. 13, 2004, unless otherwise noted.



611.600  Scope of subpart.

    On September 18, 2001, the Department of Commerce (DOC) authorized 
the Department of State to use the Defense Priorities and Allocations 
System (DPAS). This authority expires on October 1, 2006. The Department 
of Defense has approved the Department's Embassy Security Protection 
Program (DOSESPP) as a national defense program eligible for the 
priorities support under the DPAS.



611.602  General.

    (c)(1) Authority to use the DPAS is limited to the following 
circumstances:
    (i) The contract or order must be placed with a U.S. firm; and,
    (ii) The contract or order must be in support of the DOSESPP, which 
consists of work involving the security of overseas posts. The DOSESPP 
includes a wide range of elements of both physical and technical 
security, such as:
    (A) New Embassy/Consulate Compound (NEC/NCC) Program. This program 
involves the construction of new secure Embassies, Consulates, and 
related facilities, as well as renovations of newly acquired buildings 
when used as alternatives to the construction of new secure buildings.
    (B) Physical security upgrade. This includes installation of forced 
entry/ballistic resistant (FE/BR) windows and doors, walls/fences, 
active anti-ram barriers, bollards (concrete and steel barriers), and 
related items.
    (C) Forced entry/ballistic resistant (FE/BR) components. This 
includes doors, windows, and related facilities and items that can 
provide the necessary time to protect Government personnel from attack.
    (D) Armored vehicles. This includes passenger vehicles with 
appropriate armoring.
    (E) Entry control and building surveillance equipment. This includes 
walk-through metal detectors, X-ray equipment, surveillance cameras, 
explosive detection equipment, and other features to enhance the 
protection of Government personnel and facilities.
    (2) DOC has assigned the following priority rating to DOSESPP 
contracts or orders: DO-H8.



611.603  Procedures.

    (f) Department of State contracting officers are authorized to sign 
DO-H8 rated contracts or orders. It is the responsibility of the 
requirements office to determine which contracts or orders should be 
rated. All contracts with U.S. firms under the DOSESPP will not 
necessarily need to be assigned a priority rating.
    (g) The contracting officer should place a DO-H8 rating on any 
contract or order if there is any doubt as to whether a contractor doing 
work for Embassy security protection will be able to deliver on time. If 
an unrated contract or order is not completed on time, the contracting 
officer may modify the contract or order to add the rating; however, the 
rating shall only be effective for the newly established delivery date, 
not the original delivery date.
    (1) DOC can provide special assistance to implement the DPAS program 
in specific cases. For example, the Department may request a higher 
priority rating, or request that DOC issue a written directive to a 
contractor that

[[Page 313]]

is not complying with the DPAS regulations. In addition, although the 
DPAS program normally applies only to U.S. firms, if the Department has 
a prime contract with a foreign firm that will be awarding subcontracts 
with U.S. firms, the Department may request from DOC authorization to 
place a rating on the prime contract.
    (2) Contracting officers or requirements offices who wish to request 
special assistance from DOC must complete DOC Form BXA-999, Request for 
Special Priorities Assistance, and submit it to A/OPE, which will 
arrange for submission of the request to DOC.



PART 612_ACQUISITION OF COMMERCIAL ITEMS--Table of Contents





   Subpart 612.3_Solicitation Provisions and Contract Clauses for the 
                     Acquisition of Commercial Items



612.302  Tailoring of provisions and clauses for the acquisition of
commercial items.

    (c) The head of the contracting activity shall approve any request 
for a waiver to tailor a clause or otherwise include any additional 
terms or conditions in a solicitation or contract in a manner that is 
inconsistent with customary commercial practice.

[69 FR 19332, Apr. 13, 2004]

[[Page 314]]



           SUBCHAPTER C_CONTRACTING METHODS AND CONTRACT TYPES





PART 613_SIMPLIFIED ACQUISITION PROCEDURES--Table of Contents



     Subpart 613.2_Actions At or Below the Micro-Purchase Threshold

613.201  General.

              Subpart 613.3_Simplified Acquisition Methods

Sec.
613.302  Purchase orders.
613.302-1  General.
613.302-5  Clauses.
613.302-5-70  DOSAR clauses.
613.303  Blanket purchase agreements (BPAs).
613.303-1  General.
613.303-5  Purchases under BPAs.
613.303-6  Review procedures.
613.305  Imprest funds and third party drafts.
613.305-3  Conditions for use.
613.307  Forms.
613.307-70  File folders for purchase orders, delivery orders, blanket 
          purchase agreements, and purchase card transactions.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 64 FR 43623, Aug. 11, 1999, unless otherwise noted.



     Subpart 613.2_Actions At or Below the Micro-Purchase Threshold



613.201  General.

    (g)(1) The procurement Executive is the agency head's designee for 
the purpose of FAR 13.201(g)(1).

[72 FR 45695, Aug. 15, 2007]



              Subpart 613.3_Simplified Acquisition Methods



613.302  Purchase orders.



613.302-1  General.

    (d) The contracting officer shall distribute copies of each purchase 
order in conformance with subpart 604.2.

[80 FR 6919, Feb. 9, 2015]



613.302-5  Clauses.

    The contracting officer shall ensure that the appropriate clauses 
prescribed in FAR part 13 are added or incorporated by reference on all 
purchase orders with both U.S. and foreign vendors.

[80 FR 6919, Feb. 9, 2015]



613.302-5-70  DOSAR clauses.

    In addition to the appropriate FAR clauses, each purchase order 
shall incorporate all DOSAR clauses required for or applicable to the 
acquisition. The DOSAR clauses may be incorporated by reference.

[80 FR 6919, Feb. 9, 2015]



613.303  Blanket purchase agreements (BPAs).



613.303-1  General.

    BPAs shall not be used to acquire pest control services.

[80 FR 6919, Feb. 9, 2015]



613.303-5  Purchases under BPAs.

    (b) Individual purchases under BPAs for commercial items may exceed 
the simplified acquisition threshold; however, the higher threshold must 
be consistent with the requirements of FAR 13.303-5(b)(1) and (2).
    (c) In accordance with FAR 13.303-5(c), BPAs shall be awarded to 
small businesses to the maximum extent practicable.

[64 FR 43623, Aug. 11, 1999, as amended at 69 FR 19332, Apr. 13, 2004]



613.303-6  Review procedures.

    (a) Contracting officers shall conduct an annual internal review to 
ensure that authorized BPA procedures are being followed and report the 
results of the review, including needed corrective action, to the head 
of the contracting activity.

[80 FR 6919, Feb. 9, 2015]

[[Page 315]]



613.305  Imprest funds and third party drafts.



613.305-3  Conditions for use.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 13.305-3(a).



613.307  Forms.

    (b)(2) Other than commercial items. The OF-347 shall be mandatory 
for use by domestic contracting activities for issuing purchase orders, 
delivery orders, and BPAs, unless ordering against another Federal 
agency contract that stipulates a different form (e.g., DD-1155, Order 
for Supplies or Services:) or, unless the Procurement Executive has 
approved another form. The OF-347 may also be used as a voucher. In lieu 
of the OF-347, DOS overseas contracting activities may use the DS-2076, 
Purchase Order, Receiving Report, and Voucher; and DS-2077, Continuation 
Sheet. Contracting activities may use the Optional Form (OF) 127, 
Receiving and Inspection Report, for documenting receipt and inspection.

[80 FR 6920, Feb. 9, 2015]



613.307-70  File folders for purchase orders, delivery orders, blanket
purchase agreements, and purchase card transactions.

    Contracting officers shall use Forms DS-1918, Purchase Order File; 
DS-1919, Delivery Order File; DS-1920, Blanket Purchase Agreement (BPA) 
File; and DS-3014, Purchase Card Transaction File (Actions Exceeding 
$3,000 Through $25,000), to record relevant data and document those 
acquisitions, respectively.

[80 FR 6920, Feb. 20, 2015]



PART 614_SEALED BIDDING--Table of Contents



                   Subpart 614.2_Solicitation of Bids

Sec.
614.201  Preparation of Invitation for Bids (IFB).
614.201-70  Use of English language.

           Subpart 614.4_Opening of Bids and Award of Contract

614.402  Opening of bids.
614.402-1  Unclassified bids.
614.402-70  Waiver of public opening of bids.
614.404  Rejection of bids.
614.404-1  Cancellation of invitations after opening.
614.407  Mistakes in bids.
614.407-3  Other mistakes disclosed before award.
614.407-4  Mistakes after award.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

    Source: 53 FR 26168, July 11, 1988, unless otherwise noted.



                   Subpart 614.2_Solicitation of Bids

    Source: 64 FR 43623, Aug. 11, 1999, unless otherwise noted.



614.201  Preparation of Invitation for Bids (IFB).



614.201-70  Use of English language.

    Use of English language solicitations and contracts is mandatory 
unless a deviation has been approved by the Procurement Executive in 
accordance with 601.470. If any part of a contract is not written in the 
English language, the contracting officer shall attach an accurate 
English language translation of such part to the original and each copy 
of the contract, unless the contracting officer determines such action 
is infeasible.



           Subpart 614.4_Opening of Bids and Award of Contract



614.402  Opening of bids.



614.402-1  Unclassified bids.

    After the unclassified bids have been opened pursuant to FAR 14.402-
1, the bid opening officer shall announce that the opening of bids has 
been completed and that all bidders will be notified as soon as possible 
regarding the award.



614.402-70  Waiver of public opening of bids.

    Overseas posts may request waiver of the public opening of bids if 
that activity is inconsistent with local law or legal practice, or with 
post security. For that purpose, the Procurement Executive must approve 
a deviation in accordance with 601.470.

[[Page 316]]



614.404  Rejection of bids.



614.404-1  Cancellation of invitations after opening.

    The authority to make the determination prescribed in FAR 14.404-
1(c) is delegated, without power of redelegation, to the head of the 
contracting activity. The head of the contracting activity shall obtain 
the concurrence of the Office of the Legal Adviser before making a 
determination pursuant to this subsection.
    (f) The head of the contracting activity is the agency head for the 
purpose of FAR 14.404-1(f). This authority is not redelegable.

[53 FR 26168, July 11, 1988, as amended at 59 FR 66758, Dec. 28, 1994; 
64 FR 43623, Aug. 11, 1999]



614.407  Mistakes in bids.



614.407-3  Other mistakes disclosed before award.

    The authority to make the determinations prescribed in FAR 14.407 is 
delegated, without power of redelegation, to the head of the contracting 
activity. In conformance with FAR 14.407-3(f), the head of the 
contracting activity shall obtain the concurrence of the Office of the 
Legal Adviser before making any determinations pursuant to this 
subsection.

[53 FR 26168, July 11, 1988. Redesignated and amended at 64 FR 43623, 
Aug. 11, 1999]



614.407-4  Mistakes after award.

    The authority to make all determinations prescribed in FAR 14.407-4 
is delegated, without power of redelegation, to the head of the 
contracting activity. In conformance with FAR 14.407-4(d), the head of 
the contracting activity shall consult with the Office of the Legal 
Adviser before making any determinations pursuant to this subsection.

[53 FR 26168, July 11, 1988. Redesignated and amended at 64 FR 43623, 
Aug. 11, 1999]



PART 615_CONTRACTING BY NEGOTIATION--Table of Contents



   Subpart 615.2_Solicitation and Receipt of Proposals and Information

Sec.
615.204  Contract format.
615.205  Issuing solicitations.
615.205-70  Use of English language.

                     Subpart 615.3_Source Selection

615.303  Responsibilities.

                     Subpart 615.4_Contract Pricing

615.404  Proposal analysis.
615.404-4  Profit.

                   Subpart 615.6_Unsolicited Proposals

615.604  Agency points of contact.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 64 FR 43623, Aug. 11, 1999, unless otherwise noted.



   Subpart 615.2_Solicitation and Receipt of Proposals and Information



615.204  Contract format.

    (e) The Procurement Executive is the agency head's designee for the 
purposes of FAR 15.204(e).



615.205  Issuing solicitations.

    (a) Contracting officers shall release copies of solicitation 
mailing lists in accordance with FAR 14.205-5(a). However, the list of 
those firms which actually submit proposals is not releasable. Requests 
for information other than solicitation mailing lists shall be handled 
under the Freedom of Information Act.



615.205-70  Use of English language.

    The requirements of 614.201-70 also apply when contracting by 
negotiation.

[64 FR 43623, Aug. 11, 1999, as amended at 81 FR 24707, Apr. 27, 2016]



                     Subpart 615.3_Source Selection



615.303  Responsibilities.

    (a) The Procurement Executive is the agency head for the purposes of 
FAR

[[Page 317]]

15.303(a). The HCA is delegated authority to appoint someone other than 
the contracting officer as source selection authority for a particular 
acquisition.

[64 FR 43623, Aug. 11, 1999, as amended at 80 FR 6920, Feb. 9, 2015]



                     Subpart 615.4_Contract Pricing

    Source: 80 FR 6920, Feb. 9, 2015, unless otherwise noted.



615.404  Proposal analysis.



615.404-4  Profit.

    (b)(2) It is the Department's policy to use the structured approach 
for profit/fee analysis contained in the Department of Health and Human 
Services' (HHS) FAR Supplement (see 48 CFR chapter 3), for acquisitions 
awarded by domestic contracting activities and RPSOs. This document may 
be accessed from A/OPE's Acquisition Web site (see 601.105-3). 
Contracting officers shall follow these procedures. HHS Form 674, 
Structured Approach Profit/Fee Objective, or an equivalent form, may be 
used to document the profit/fee analysis. If more than one pre-
negotiation cost objective is developed (e.g., high and low), a separate 
form should be completed for each. The contracting officer shall ensure 
that a written explanation is attached to the form justifying the 
weights chosen for each cost category or factor. This approach considers 
the factors outlined in FAR 15.404-4(d).
    (c)(4)(i)(B) In accordance with a delegation from OBO, overseas 
posts may request a waiver from A/OPE if post is unable to negotiate a 
price for architect-engineer services within the six percent price 
limitation. To obtain a waiver, the contracting officer must send the 
following information to A/OPE:
    (1) Description of project;
    (2) Estimated dollar amount, with cost breakdown; and,
    (3) Description of negotiation efforts.



                   Subpart 615.6_Unsolicited Proposals



615.604  Agency points of contact.

    (a)(4) The contact points for unsolicited proposals are the heads of 
the contracting activities.



PART 616_TYPES OF CONTRACTS--Table of Contents



Sec.
616.000  Scope of part.

                 Subpart 616.1_Selecting Contract Types

616.102  Policies.
616.102-70  Overseas posts.
616.103  Negotiating contract type.

                   Subpart 616.2_Fixed-Price Contracts

616.203  Fixed-Price contracts with economic price adjustment.
616.203-4  Contract clauses.
616.207  Firm-fixed-price, level-of-effort term contracts.
616.207-3  Limitations.

               Subpart 616.5_Indefinite-Delivery Contracts

616.504  Indefinite-quantity contracts.
616.505  Ordering.
616.506  Solicitation provisions and contract clauses.
616.506-70  DOSAR contract clause.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26169, July 11, 1988, unless otherwise noted.



616.000  Scope of part.

    The contracting officer may use any of the contract types described 
in FAR part 16 for acquisitions made under simplified acquisition 
procedures. The contracting officer shall document his/her decision to 
use a contract type in accordance with the requirements of FAR part 16.

[60 FR 39963, Aug. 3, 1995]



                 Subpart 616.1_Selecting Contract Types

    Source: 80 FR 6920, Feb. 9, 2015, unless otherwise noted.

[[Page 318]]



616.102  Policies.



616.102-70  Overseas posts.

    Pursuant to 601.601-70(a)(1)(i), no authority is delegated to 
overseas posts to enter into cost-reimbursement, fixed-price incentive, 
or fixed-price redeterminable contracts, unless the Procurement 
Executive's approval is obtained. Such requests shall be submitted by 
the head of the contracting activity on a case-by-case basis.



616.103  Negotiating contract type.

    (d) The Procurement Executive has issued class determinations for 
the following categories of contracts awarded by overseas contracting 
activities: painting, vehicle insurance, vehicle rental, alarm 
installation, cell phone rental, janitorial, hotel and cost per copy 
services; gardening and maintenance services; and packing/shipping 
services. Copies may be found in the Overseas Contracting and Simplified 
Acquisition Guidebook. Contracting officers need not develop their own 
determinations provided that they use A/OPE's model solicitations. 
Contracting officers shall place a copy of the appropriate determination 
in the contract file.



                   Subpart 616.2_Fixed-Price Contracts



616.203  Fixed-Price contracts with economic price adjustment.



616.203-4  Contract clauses.

    Contracting officers at domestic contracting activities may use an 
economic price adjustment clause based on cost indexes of labor or 
material in accordance with the circumstances listed in FAR 16.203-4(d) 
and after obtaining the approval of the head of the contracting 
activity. Overseas posts may use the clause at 652.216-71, Price 
Adjustment, when procuring continuing services (e.g., guard, janitorial, 
building maintenance, and gardening). Posts shall obtain A/OPE approval 
for any price adjustment clause that differs from the clause at 652.216-
71.

[53 FR 26169, July 11, 1988, as amended at 59 FR 66759, Dec. 28, 1994]



616.207  Firm-fixed-price, level-of-effort term contracts.



616.207-3  Limitations.

    The head of the contracting activity is the chief of the contracting 
office for the purposes of FAR 16.207-3.



               Subpart 616.5_Indefinite-Delivery Contracts



616.504  Indefinite-quantity contracts.

    (c) Multiple award preference--(1) Planning the acquisition.
    (ii)(D)(1) The Procurement Executive is the head of the agency for 
the purposes of FAR 16.504(c)(1)(ii)(D)(1).

[81 FR 24707, Apr. 27, 2016]



616.505  Ordering.

    (b)(5) The Departmental Advocate for Competition is designated the 
task and delivery order ombudsman.

[64 FR 43624, Aug. 11, 1999, as amended at 69 FR 19332, Apr. 13, 2004; 
80 FR 6920, Feb. 9, 2015]



616.506  Solicitation provisions and contract clauses.



616.506-70  DOSAR contract clause.

    The contracting officer shall insert the clause at 652.216-70, 
Ordering--Indefinite-Delivery Contract, whenever the clause at FAR 
52.216-20, Definite Quantity, or the clause at FAR 52.216-21, 
Requirements, or the clause at FAR 52.216-22, Indefinite Quantity, is 
used.

[53 FR 26169, July 11, 1988. Redesignated at 64 FR 43624, Aug. 11, 1999]



PART 617_SPECIAL CONTRACTING METHODS--Table of Contents



                   Subpart 617.1_Multiyear Contracting

Sec.
617.104  General.
617.105  Policy.
617.105-1  Uses.
617.108  Congressional notification.

                          Subpart 617.2_Options

617.204  Contracts.

[[Page 319]]

      Subpart 617.5_Interagency Acquisitions Under the Economy Act

617.503  Determination and findings requirements.
617.504-70  Ordering procedures.

            Subpart 617.6_Management and Operating Contracts

617.602  Policy.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26169, July 11, 1988, unless otherwise noted.



                   Subpart 617.1_Multiyear Contracting

    Source: 64 FR 43624, Aug. 11, 1999, unless otherwise noted.



617.104  General.

    (b) The Procurement Executive is the agency head for the purpose of 
FAR 17.104(b).



617.105  Policy.



617.105-1  Uses.

    (d) Every multiyear contract shall comply with FAR 17.104(c), unless 
an exception is approved through the budget process in coordination with 
the cognizant financial management office/comptroller.



617.108  Congressional notification.

    (a) The Procurement Executive is the agency head for the purposes of 
FAR 17.108(a).



                          Subpart 617.2_Options



617.204  Contracts.

    (e) The Procurement Executive shall approve any solicitations or 
contracts which exceed the five (5) year maximum length for supplies or 
services. The Procurement Executive may delegate this approval authority 
to individuals within the Office of the Procurement Executive.

[59 FR 66759, Dec. 28, 1994, as amended at 69 FR 19332, Apr. 13, 2004]



      Subpart 617.5_Interagency Acquisitions Under the Economy Act



617.503  Determination and findings requirements.

    The authority to make the determination prescribed in FAR 17.503 is 
delegated to the head of the contracting activity.

[64 FR 43624, Aug. 11, 1999]



617.504-70  Ordering procedures.

    (a) Department deputy assistant secretaries and Bureau Executive 
Directors or their equivalents are authorized to execute Economy Act 
IAAs. Department contracting officers also are authorized to execute 
Economy Act IAAs, as prescribed in FAR 17.504(a).
    (b) Department of State form DS-1921, Award/Modification of 
Interagency Acquisition Agreement, shall be used for all Economy Act 
IAAs where the Department is the requesting agency. It shall also be 
used for Economy Act IAAs where the Department is the servicing agency 
if the requesting agency does not have a similar form that provides the 
same information.

[59 FR 66759, Dec. 28, 1994, as amended at 64 FR 43624, Aug. 11, 1999; 
69 FR 19332, Apr. 13, 2004]



            Subpart 617.6_Management and Operating Contracts



617.602  Policy.

    The Assistant Secretary for Administration is the agency head for 
the purposes of FAR 17.602.

[[Page 320]]



                   SUBCHAPTER D_SOCIOECONOMIC PROGRAMS





PART 619_SMALL BUSINESS PROGRAMS--Table of Contents



Sec.
619.000  Scope of part.

                         Subpart 619.2_Policies

619.201  General policy.
619.202  Specific policies.
619.202-70  The Department of State Mentor-Protege Program.

    Subpart 619.4_Cooperation with the Small Business Administration

619.402  Small Business Administration procurement center 
          representatives.
619.402-70  DOS designee.

               Subpart 619.5_Set-Asides for Small Business

619.501  General.
619.505  Rejecting Small Business Administration recommendations.
619.506  Withdrawing or modifying set asides.

     Subpart 619.6_Certificates of Competency and Determinations of 
                             Responsibility

619.602  Procedures.
619.602-1  Referral.

         Subpart 619.7_The Small Business Subcontracting Program

619.705  Responsibilities of the contracting officer under the 
          subcontracting assistance program.
619.705-1  General support of the program.
619.705-3  Preparing the solicitation.
619.705-4  Reviewing the subcontracting plan.
619.705-6  Postaward responsibilities of the contracting officer.
619.705-6-70  Reporting responsibilities.
619.708-70  Solicitation provisions and contract clauses.

 Subpart 619.8_Contracting with the Small Business Administration (The 
                              8(a) Program)

619.800  General.
619.803  Selecting acquisitions for the 8(a) program.
619.803-70  Responsibilities of the Office of Small and Disadvantaged 
          Business Utilization (A/SDBU).
619.803-71  Simplified procedures for 8(a) acquisitions under MOUs.
619.804  Evaluation, offering, and acceptance.
619.804-2  Agency offering.
619.804-3  SBA acceptance.
619.804-3-  SBA Acceptance Under MOUs for Acquisitions Exceeding 
          $150,000.
619.805  Competitive 8(a).
619.805-2  Procedures.
619.806  Pricing the 8(a) contract.
619.808  Contract negotiation.
619.808-1  Sole source.
619.810  SBA appeals.
619.811  Preparing the contracts.
619.811-1  Sole source.
619.811-2  Competitive.
619.811-3  Contract clauses.
619.812  Contract administration.
619.870  Acquisition of technical requirements.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26170, July 11, 1988, unless otherwise noted.



619.000  Scope of part.

    (b) It is the Department's policy to provide maximum opportunities 
for U.S. small businesses to participate in the acquisition process. DOS 
contracts that are awarded domestically for performance overseas shall 
be subject to the Small Business Act as a matter of policy. Contracts 
that are both awarded and performed overseas should comply on a 
voluntary basis.

[71 FR 34839, June 16, 2006]



                         Subpart 619.2_Policies



619.201  General policy.

    (a) The Operations Director, Office of Small and Disadvantaged 
Business Utilization (OSDBU), is responsible for performing all 
functions and duties prescribed in FAR 19.201(c) and (d).
    (b) In addition to the requirements of FAR 19.201(b), each head of 
the contracting activity, or designee, is responsible for establishing 
in coordination with the OSDBU Operations Director annual goals for the 
DOS small business program.
    (d) Pursuant to FAR 19.201(d), each Small and Disadvantaged Business 
Utilization Specialist (SDBUS) is responsible for--

[[Page 321]]

    (1) Maintaining a program to locate capable small business, small 
disadvantaged business, women-owned small business, HUBZone small 
business, veteran-owned small business, and service-disabled veteran-
owned small business sources to fulfill DOS acquisition requirements;
    (2) Coordinating inquiries and requests for advice from small 
business, small disadvantaged business, women-owned small business, 
HUBZone small business, veteran-owned small business, and service-
disabled veteran-owned small business concerns on DOS contracting and 
subcontracting opportunities and other acquisition matters;
    (3) Advising contracting activities on new or revised small business 
policies, regulations, procedures, and other related information;
    (4) Assuring that small business, small disadvantaged business, 
women-owned small business, HUBZone small business, veteran-owned small 
business, and service-disabled veteran-owned small business concerns are 
provided adequate specifications or drawings by initiating, in writing, 
with appropriate technical and contracting personnel to ensure that all 
necessary specifications or drawings for current and future 
acquisitions, as appropriate, are available;
    (5) Reviewing all proposed acquisitions in excess of the simplified 
acquisition threshold, including commercial items using the simplified 
acquisition procedures of FAR Subpart 13.5, and task and delivery orders 
under multiple award contracts exceeding $2 million, to assure that 
small business, small disadvantaged business, women-owned small 
business, HUBZone small business, veteran-owned small business, and 
service-disabled veteran-owned small business concerns will be afforded 
an equitable opportunity to compete and, as appropriate, initiating 
recommendations for small business, 8(a), or HUBZone set-asides. This 
includes proposed contract modifications for new or additional 
requirements that do not fall within the original scope of the contract 
and which exceed the simplified acquisition limitation. This does not 
include the exercising of contract options;
    (6) Assuring that contract financing available under existing 
regulations is offered when appropriate and that requests by small 
business concerns for such financing are not treated as a handicap in 
the award of contracts;
    (7) Providing assistance to the contracting officer in making 
determinations concerning responsibility of prospective contractors 
whenever small business concerns are involved;
    (8) Participating in the evaluation of a prime contractor's small, 
small disadvantaged, woman-owned small, HUBZone small, veteran-owned 
small, and service-disabled veteran-owned small business subcontracting 
plans;
    (9) Assuring that the participation of small business, small 
disadvantaged business, women-owned small business, HUBZone small 
business, veteran-owned small business, and service-disabled veteran-
owned small business concerns is accurately reported;
    (10) Attending, as appropriate, debriefings to unsuccessful small 
business, small disadvantaged business, women-owned small business, 
HUBZone small business, veteran-owned small business, and service-
disabled veteran-owned small business concerns to assist those firms in 
understanding requirements for responsiveness and responsibility so that 
the firm may be able to qualify for future awards;
    (11) Making available to SBA copies of solicitations when so 
requested;
    (12) When a bid or offer from a small business, small disadvantaged 
business, women-owned small business, HUBZone small business, veteran-
owned small business, and service-disabled veteran-owned small business 
has been rejected for non-responsiveness or non-responsibility, upon 
request, aid, counsel, and assist that firm in understanding 
requirements for responsiveness and responsibility so that the firm may 
be able to qualify for future awards;
    (13) Participating in Government-industry conferences to assist 
small business concerns, including Business Opportunity/Federal 
Acquisition Conferences, Minority Business Enterprise Acquisition 
Seminars and Business Opportunity Committee meetings;

[[Page 322]]

    (14) Maintaining a list of supplies and services that have been 
placed as repetitive small business set-asides;
    (15) Participating in the development, implementation, and review of 
automated source systems to assure that the interests of small business 
concerns are included;
    (16) Advising potential sources how they can obtain information 
about competitive acquisitions;
    (17) Providing small business, small disadvantaged business, women-
owned small business, HUBZone small business, veteran-owned small 
business, and service-disabled veteran-owned small business concerns 
information regarding assistance available from Federal agencies such as 
the Small Business Administration, Minority Business Development Agency, 
Bureau of Indian Affairs, Economic Development Administration, National 
Science Foundation, Department of Labor and others, including State 
agencies and trade associations; and
    (18) Participating in interagency programs relating to small 
business matters as authorized by the OSDBU Operations Director.
    (f)(1) The Procurement Executive is the agency designee for the 
purposes of FAR 19.201(f)(1). The written determination shall be 
forwarded to the Procurement Executive through the OSDBU Operations 
Director.

[69 FR 19333, Apr. 13, 2004, as amended at 72 FR 45695, Aug. 15, 2007; 
80 FR 6920, Feb. 9, 2015]



619.202  Specific policies.



619.202-70  The Department of State Mentor-Protege Program.

    (a) Purpose. The Mentor-Protege Program is designed to motivate and 
encourage firms to assist small businesses with business development, 
including small disadvantaged businesses, women-owned small businesses, 
HUBZone small businesses, veteran-owned small businesses and service-
disabled veteran-owned small businesses. The program is also designed to 
improve the performance of DOS contracts and subcontracts, foster the 
establishment of long-term business relationships between small 
businesses and prime contractors, and increase the overall number of 
small businesses that receive DOS contract and subcontract awards. The 
program is limited to non-commercial item acquisitions.
    (b) Definitions. The definitions of small business (SB), HUBZone 
small business concern (HUBZone), small disadvantaged business (SDB), 
women-owned small business (WOSB), veteran-owned small business (VOSB), 
and service-disabled veteran-owned small business (SDVOSB) are the same 
as found in FAR 2.101.
    Mentor means a prime contractor that elects to promote and develop 
small business subcontractors by providing developmental assistance 
designed to enhance the business success of the protege.
    Protege means a small business, HUBZone small business, small 
disadvantaged business, women-owned small business, veteran-owned small 
business, or service-disabled veteran-owned small business that is the 
recipient of developmental assistance pursuant to a mentor-protege 
program.
    (c) Non-affiliation. For purposes of the Small Business Act, a 
protege firm is not considered an affiliate of a mentor firm solely 
because the protege firm is receiving developmental assistance from the 
mentor firm under the program.
    (d) General policy. (1) Eligible business prime contractors not 
included on the ``List of Parties Excluded from Federal Procurement and 
Nonprocurement Programs'' that are approved as mentor firms may enter 
into agreements with eligible protege.
    (2) A firm's status as a protege under a DOS contract shall not have 
an effect on the firm's ability to seek other prime contracts or 
subcontracts.
    (e) Incentives for prime contractor participation. (1) Under the 
Small Business Act (15 U.S.C. 637(d)(4)(E)), DOS is authorized to 
provide appropriate incentives to encourage subcontracting opportunities 
for small businesses consistent with the efficient and economical 
performance of the contract. This authority is limited to negotiated 
acquisitions.

[[Page 323]]

    (2) Before awarding a contract that requires a subcontracting plan, 
the existence of a mentor-protege arrangement, and performance, if any, 
under an existing arrangement, may be considered by the contracting 
officer in:
    (i) Evaluating the quality of a proposed subcontracting plan under 
FAR 19.704-5; and,
    (ii) Assessing the prime contractor's compliance with the 
subcontracting plans submitted in previous contracts as a factor in 
determining contractor responsibility under FAR 19.705-5(a)(1).
    (3) A non-monetary award may be presented annually (or as often as 
appropriate) to the mentoring firm providing the most effective 
developmental support of a protege. The Mentor-Protege Program Manager 
will recommend an award winner to the Operations Director, OSDBU.
    (f) Measurement of program success. The success of the DOS Mentor-
Protege Program will be measured by:
    (1) The increase in the number and dollar value of contracts awarded 
to protege firms under DOS contracts from the date the protege enters 
the program;
    (2) The increase in the number and dollar value of contracts and 
subcontracts awarded to the protege under other Federal agencies and 
commercial contracts; and,
    (3) The developmental assistance provided by the mentor firm and the 
resulting increase in the technical, managerial, financial or other 
capabilities of the protege firm, as reported by the protege.
    (g) Eligibility of mentor firms. A mentor firm:
    (1) May be either a large or small business;
    (2) Must be eligible for award of U.S. Government contracts;
    (3) Must be able to provide developmental assistance that will 
enhance the ability of protege to perform as subcontractors; and,
    (4) Will be encouraged to enter into arrangements with protege and 
firms with whom they have established business relationships.
    (h) Eligibility of protege firms. (1) A protege firm must be:
    (i) A SB, HUBZone, SDB, WOSB, VOSB, or SDVOSB as those terms are 
defined in FAR 2.101;
    (ii) Small in the NAICS code for the services or supplies to be 
provided by the protege to the mentor; and,
    (iii) Eligible for award of U.S. Government contracts.
    (2) Except for SDB and HUBZone firms, a protege firm may self-
certify to a mentor firm that it meets the requirements set forth in 
paragraph (h)(1) of this subsection. Mentors may rely in good faith on 
written representations by potential protege that they meet the 
specified eligibility requirements. SDB status eligibility and 
documentation requirements are determined by FAR 19.304. HUBZone status 
eligibility and documentation requirements are determined by FAR 
19.1303.
    (3) Protege may have multiple mentors. protege participating in 
mentor-protege programs in addition to DOS's program should maintain a 
system for preparing separate reports of mentoring activity for each 
agency's program.
    (i) Selection of protege firms. (1) Mentor firms are solely 
responsible for selecting protege firms. The mentor is encouraged to 
identify and select a broad base of protege firms whose core 
competencies support DOS's mission.
    (2) Mentors may have multiple protege.
    (3) The selection of protege firms by mentor firms may not be 
protested, except that any protest regarding the size or eligibility 
status of an entity selected by a mentor shall be handled in accordance 
with FAR and SBA regulations.
    (j) Application and agreement process for mentor-protege teams to 
participate in the program. (1) Firms interested in becoming a mentor 
firm shall apply in writing to OSDBU. The application (Form DS-4053, 
Department of State Mentor-Protege Program Application), shall be 
evaluated by the nature and extent of technical and managerial support 
proposed as well as the extent of financial assistance in the form of 
equity investment, loans, joint-venture support, and traditional 
subcontracting support proposed.

[[Page 324]]

    (2) A proposed mentor shall submit the application form and 
associated information to OSDBU.
    (k) OSDBU review of application. (1) OSDBU shall review the 
information to ensure the mentor and protege are eligible and the 
information provided is complete. OSDBU shall consult with the 
contracting officer on the adequacy of the proposed mentor-protege 
arrangement, and its review shall be complete no later than 30 calendar 
days after receipt of the application by OSDBU.
    (2) Upon completion of the review, OSDBU will advise the mentor if 
its application is acceptable. The mentor may then implement the 
developmental assistance program in accordance with the approved 
agreement.
    (3) The agreement defines the relationship between the mentor and 
protege firms only. The agreement itself does not create any privity of 
contract between the mentor or protege and the DOS.
    (l) Developmental assistance. The forms of developmental assistance 
a mentor can provide to a protege include:
    (1) Management guidance relating to:
    (i) Financial management;
    (ii) Organizational management;
    (iii) Overall business management/planning;
    (iv) Business development; and,
    (v) Technical assistance.
    (2) Loans;
    (3) Rent-free use of facilities and/or equipment;
    (4) Property;
    (5) Temporary assignment of personnel to protege for purpose of 
training; and,
    (6) Any other types of permissible, mutually beneficial assistance.
    (m) Obligation. (1) A mentor or protege firm may voluntarily 
withdraw from the program. However, in no event shall such withdrawal 
impact the program mission and contractual requirements under the prime 
contract.
    (2) Mentor and protege firms shall submit to OSDBU annual reports on 
program progress of the mentor-protege agreements. Large business 
mentors may submit these reports as part of their SB, HUBZone, SDB, 
WOSB, VOSB, and SDVOSB plan submission in accordance with the due date 
on the SF-295. DOS shall consider the following in evaluating these 
reports:
    (i) Specific actions taken by the contractor, during the evaluation 
period, to increase the participation of proteges as suppliers to the 
U.S. Government and to commercial entities;
    (ii) Specific actions taken by the mentor, during the evaluation 
period, to develop the technical and corporate administrative expertise 
of a protege as defined in the agreement;
    (iii) To what extent the protege has met the developmental 
objectives in the agreement; and,
    (iv) To what extent the mentor firm's participation in the Mentor-
Protege Program resulted in the protege receiving contract(s) and 
subcontract(s) from private firms and agencies other than the DOS.
    (3) The DOS OSDBU shall submit the annual reports to the cognizant 
contracting officer regarding participating prime contractor(s) 
performance in the program.
    (4) Mentor and protege firms shall submit an evaluation to the OSDBU 
at the conclusion of the mutually agreed upon program period, the 
conclusion of the contract, or the voluntary withdrawal by either party 
from the program, whichever comes first.
    (n) Internal controls. (1) OSDBU shall oversee the program and shall 
work with the cognizant contracting officer to achieve program 
objectives.
    (2) DOS may rescind approval of an existing Mentor-Protege agreement 
if it determines that such an action is in the Department's best 
interest. The rescission shall be in writing and sent to the mentor and 
protege firms after approval by the OSDBU Operations Director. 
Rescission of an agreement does not change the terms of the subcontract 
between the mentor and the protege or the prime contractor's obligations 
under its subcontracting plan.
    (o) Solicitation provision and contract clause. (1) The contracting 
officer shall insert the provision at 652.219-72, Department of State 
Mentor-Protege Program, in all unrestricted solicitations exceeding 
$650,000 ($1,500,000 for construction) that offer subcontracting 
opportunities.

[[Page 325]]

    (2) The contracting officer shall insert the clause at DOSAR 
652.219-73, Mentor Requirements and Evaluation, in all contracts where 
the prime contractor has signed a Mentor-Protege Agreement with the 
Department of State.

[69 FR 19333, Apr. 13, 2004, as amended at 80 FR 6920, Feb. 9, 2015]



    Subpart 619.4_Cooperation with the Small Business Administration



619.402  Small Business Administration procurement center representatives.



619.402-70  DOS designee.

    Where the FAR requires action by a Small Business Administration 
procurement center representative, but one has not been assigned to the 
DOS contracting activity, the OSDBU Operations Director shall perform 
the action so required.

[53 FR 26170, July 11, 1988, as amended at 80 FR 6920, Feb. 9, 2015]



               Subpart 619.5_Set-Asides for Small Business



619.501  General.

    (c) Contracting officers shall use Department of State Form DS-1910, 
Small Business Review--Actions Above the Simplified Acquisition 
Threshold, to document set-aside decisions.

[59 FR 66759, Dec. 28, 1994, as amended at 60 FR 39663, Aug. 3, 1995; 64 
FR 43624, Aug. 11, 1999]



619.505  Rejecting Small Business Administration recommendations.

    The Procurement Executive is the agency head for the purposes of FAR 
19.505.



619.506  Withdrawing or modifying set asides.

    (b) The Procurement Executive shall resolve disagreements between 
the OSDBU Operations Director and the contracting officer.

[59 FR 66759, Dec. 28, 1994, as amended at 80 FR 6920, Feb. 9, 2015]



     Subpart 619.6_Certificates of Competency and Determinations of 
                             Responsibility



619.602  Procedures.



619.602-1  Referral.

    The contracting officer shall transmit to the OSDBU Operations 
Director concurrently with the submission to the appropriate SBA 
Regional Office, a copy of the documentation supporting the 
determination that a small business concern is not responsible, as 
required by FAR 19.602-1(a).

[53 FR 26170, July 11, 1988, as amended at 80 FR 6920, Feb. 9, 2015]



         Subpart 619.7_The Small Business Subcontracting Program



619.705  Responsibilities of the contracting officer under the 
subcontracting assistance program.



619.705-1  General support of the program.

    It is the Department's policy to incorporate its current fiscal year 
goals as negotiated with the SBA into all pertinent Department 
solicitations, in addition to the standard subcontract clauses. 
Incorporation of the goals does not require that large prime contractors 
must subcontract, but does require that to the extent they plan to 
subcontract, specific goals be established for doing business with 
small, small disadvantaged, women-owned small, HUBZone small, veteran-
owned small, and service-disabled veteran-owned small business firms. 
Where funds are available, an incentive clause such as that found in FAR 
52.219-10, Incentive Subcontracting Program, is encouraged.

[69 FR 19335, Apr. 13, 2004]



619.705-3  Preparing the solicitation.

    To further promote the use of small, disadvantaged, women-owned 
small, HUBZone small, veteran-owned small, and service-disabled veteran-
owned small business firms by large prime contractors, contracting 
officers are encouraged to consider the adequacy of the subcontracting 
plans, and/or past performance in achieving negotiated

[[Page 326]]

subcontract goals, as part of the overall evaluation of the technical 
proposals.

[69 FR 19335, Apr. 13, 2004]



619.705-4  Reviewing the subcontracting plan.

    OSDBU shall review subcontracting plans to determine if small, small 
disadvantaged, women-owned small, HUBZone small, veteran-owned small, 
and service-disabled veteran-owned small business concerns are afforded 
the maximum practicable opportunity to participate as subcontractors. 
OSDBU shall recommend to the contracting officer changes needed to 
subcontracting plans found to be deficient.

[69 FR 19335, Apr. 13, 2004, as amended at 80 FR 6920, Feb. 9, 2015]



619.705-6  Postaward responsibilities of the contracting officer.



619.705-6-70  Reporting responsibilities.

    (a) The contracting officer shall forward to the OSDBU Operations 
Director a copy of each subcontracting plan that was incorporated into a 
contract or contract modification. Each contracting activity shall 
maintain a list of its active prime contracts that contain 
subcontracting plans.
    (b) Contracting officers shall collect subcontracting data from 
contractors required to establish subcontracting plans in support of 
small, small disadvantaged, women-owned small, HUBZone small, veteran-
owned small, and service-disabled veteran-owned small business concerns. 
This data shall be collected annually and semiannually, using Standard 
Form 295, Summary Subcontracting Report, for the annual submissions, and 
Standard Form 294, Subcontracting Report for Individual Contracts, for 
the semiannual submissions. The head of the contracting activity shall 
forward these reports to the OSDBU Operations Director, not later than 
the 30th day of the month following the close of the reporting period.

[53 FR 26170, July 11, 1988, as amended at 59 FR 66760, Dec. 28, 1994; 
69 FR 19335, Apr. 13, 2004; 80 FR 6920, Feb. 9, 2015]



619.708-70  Solicitation provisions and contract clauses.

    The contracting officer shall insert a provision substantially the 
same as the provision at 652.219-70, Department of State Subcontracting 
Goals, in solicitations whenever the clause at FAR 52.219-9, Small 
Business Subcontracting Plan, is used.

[59 FR 66760, Dec. 28, 1994, as amended at 69 FR 19335, Apr. 13, 2004]



 Subpart 619.8_Contracting with the Small Business Administration (The 
                              8(a) Program)

    Source: 64 FR 43624, Aug. 11, 1999, unless otherwise noted.



619.800  General.

    (d) Utilizing Memoranda of Understanding (MOUs), the SBA has 
delegated its authority to contract directly with program participants 
under Section 8(a) of the Small Business Act to the Senior Procurement 
Executives of various Federal contracting activities. The Department of 
State has signed an MOU with SBA, effective May 6, 1998. Under the MOU, 
a contract may be awarded directly to an 8(a) firm on either a sole 
source or competitive basis. The SBA reserves the right to withdraw any 
delegation issued as a result of an MOU; however, any such withdrawal 
shall have no effect on contracts currently awarded under the MOU.



619.803  Selecting acquisitions for the 8(a) program.



619.803-70  Responsibilities of the Office of Small and Disadvantaged
Business Utilization (A/SDBU).

    OSDBU shall review the capabilities of 8(a) concerns and disseminate 
that information to DOS program and contracting personnel. As necessary, 
OSDBU shall obtain from the SBA or 8(a) concerns supplemental 
information for DOS program and contracting personnel.

[64 FR 43624, Aug. 11, 1999, as amended at 80 FR 6921, Feb. 9, 2015]

[[Page 327]]



619.803-71  Simplified procedures for 8(a) acquisitions under MOUs.

    Contracting activities may use the simplified acquisition procedures 
of FAR part 13 and DOSAR part 613 to issue purchase orders or contracts, 
not exceeding $150,000, to 8(a) participants. The $150,000 limitation 
for use of FAR part 13 simplified acquisition procedures applies to the 
acquisition of both commercial and non-commercial items. The following 
applies to such acquisitions:
    (a) Neither offering letters to, nor acceptance letters from, the 
SBA are required.
    (b) The contracting activity shall use the System for Award 
Management (https://www.sam.gov) to establish that the selected 8(a) 
firm is a current program participant.
    (c) Once an 8(a) contractor has been identified, the agency 
contracting officer shall establish the price with the selected 8(a) 
contractor.
    (d) The contracting officer shall issue the purchase order or 
contract directly to the 8(a) firm in accordance with the provisions of 
FAR part 13 and DOSAR part 613. The contracting officer shall insert FAR 
52.219-14, Limitations on Subcontracting, and 652.219-71, Section 8(a) 
Direct Award, in all purchase orders and contracts awarded under this 
subsection. The contracting officer's title shall include the 
contracting activity, as follows: Contracting Officer for the Department 
of State [insert contracting activity]. In addition, in accordance with 
the MOU, OSDBU staff who have been issued limited contracting officer 
warrants for this purpose, shall sign the purchase order or contract as 
a third party.
    (e) The contracting officer shall forward to the SBA District Office 
serving the 8(a) firm a copy of the purchase order or contract within 
five days after the order is issued.

[64 FR 43624, Aug. 11, 1999, as amended at 71 FR 34839, June 16, 2006; 
80 FR 6921, Feb. 9, 2015]



619.804  Evaluation, offering, and acceptance.



619.804-2  Agency offering.

    (a) When applicable, this notification shall identify that the 
offering is in accordance with the MOU identified in 619.800.



619.804-3  SBA acceptance.



619.804-3-70  SBA Acceptance Under MOUs for Acquisitions Exceeding
$150,000.

    (a) The SBA's decision whether to accept the requirement shall be 
transmitted to the contracting agency in writing within five working 
days of receipt of the offer.
    (b) The SBA may request, and the contracting agency may grant, an 
extension beyond the five-day limit.
    (c) SBA's acceptance letter should be faxed or e-mailed to the 
offering contracting agency.
    (d) If the offering contracting agency has not received an 
acceptance or rejection of the offering from SBA within five days of 
SBA's receipt of the offering letter, the contracting agency may assume 
that the requirement has been accepted and proceed with the acquisition.
    (e) The contents of the acceptance letter shall be limited to the 
eligibility of the recommended 8(a) contractor.



619.805  Competitive 8(a).



619.805-2  Procedures.

    (a) 8(a) acquisitions may also be conducted using simplified 
acquisition procedures (see FAR part 13). The award process is 
significantly streamlined where an MOU is in place.
    (b) For requirements exceeding $150,000 processed under the MOU 
cited in 619.800, the contracting officer shall submit the name, 
address, and telephone number of the low offeror (in sealed bid 
acquisitions) or the apparent successful offeror (in negotiated 
acquisitions) to the SBA Business Opportunity Specialist at the field 
office servicing the identified 8(a) firm. The SBA shall determine the 
eligibility of the firm(s) and advise the contracting officer within two 
working days of the

[[Page 328]]

receipt of the request. If the firm is determined to be ineligible, the 
contracting officer shall submit information on the next low offeror or 
next apparent successful offeror, as applicable, to the cognizant SBA 
field office.

[64 FR 43624, Aug. 11, 1999, as amended at 69 FR 19335, Apr. 13, 2004; 
72 FR 45695, Aug. 15, 2007; 80 FR 6921, Feb. 9, 2015]



619.806  Pricing the 8(a) contract.

    (a) When required by FAR subpart 15.4, the contracting officer shall 
obtain certified cost or pricing data directly from the 8(a) contractor 
if the contract is being awarded under the MOU cited in 619.800.



619.808  Contract negotiation.



619.808-1  Sole source.

    (a) If the acquisition is conducted under an MOU cited in 619.800, 
the 8(a) contractor is responsible for negotiating with the agency 
within the time established by the agency. If the 8(a) contractor does 
not negotiate within the established time and the agency cannot allow 
additional time, the agency may, after notification and approval by SBA, 
proceed with the acquisition from other sources.
    (b) If the acquisition is conducted under an MOU cited in 619.800, 
the agency is delegated the authority to negotiate directly with the 
8(a) participant; however, if requested by the 8(a) participant, the SBA 
may participate in the negotiations.



619.810  SBA appeals.

    (c) The Procurement Executive is the agency head for the purposes of 
FAR 19.810(c).

[64 FR 43624, Aug. 11, 1999, as amended at 72 FR 45696, Aug. 15, 2007]



619.811  Preparing the contracts.



619.811-1  Sole source.

    (d) If the award is to be made under an MOU cited in 619.800, the 
contract to be awarded by the contracting activity to the 8(a) firm 
shall be prepared in accordance with the contracting activity's normal 
procedures, given contract type and dollar amount, that the contracting 
activity would use for a similar, non-8(a) acquisition, except for the 
following:
    (1) The award form shall cite 41 U.S.C. 3304(a)(5)or 10 U.S.C. 
2304(c)(5), as appropriate, and 15 U.S.C. 637(a) as the authority for 
use of other than full and open competition.
    (2) The contracting officer shall insert FAR 52.219-14, Limitations 
on Subcontracting, and 652.219-71, Section 8(a) Direct Awards.
    (3) For acquisitions exceeding $150,000, the contracting activity 
shall include SBA's requirement number on the award document.
    (4) A single award document shall be used between the agency and the 
8(a) contractor, i.e., an SBA signature will not be required. The title 
of the agency contracting officer shall include the contracting 
activity, as follows: Contracting Officer for the Department of State 
[insert contracting activity]. In addition, in accordance with the MOU, 
OSDBU staff who have been issued limited contracting officer warrants 
for this purpose shall sign the contract as a third party. The 8(a) 
contractor's signature shall be placed on the award document as the 
prime contractor. The 8(a) contractor's name and address shall be placed 
in the ``Awarded to'' or ``Contractor name'' block on the appropriate 
form.

[64 FR 43624, Aug. 11, 1999, as amended at 80 FR 6921, Feb. 9, 2015]



619.811-2  Competitive.

    (a) If the award is made under the delegation of 8(a) contracting 
authority, competitive contracts for 8(a) firms shall be prepared in 
accordance with the same standards as 8(a) sole source contracts. See 
619.811-1.
    (b) If the acquisition is conducted under the MOU cited in 619.800, 
the process for obtaining signatures shall be as specified in 619.811-
1(d)(4).



619.811-3  Contract clauses.

    (d) The contracting officer shall insert the clause at FAR 52.219-
18, Notification of Competition Limited to Eligible 8(a) Concerns, 
(Deviation), in competitive solicitations and contracts exceeding 
$150,000 when the acquisition is processed under the MOU cited in 
619.800.

[[Page 329]]

    (e) The contracting officer shall insert the clause at FAR 52.219-
14, Limitations on Subcontracting, and 652.219-71, Section 8(a) Direct 
Awards, in all solicitations and contracts that are processed under the 
MOU cited at 619.800. The clauses at FAR 52.219-11, Special 8(a) 
Contract Conditions; 52.219-12, Special 8(a) Subcontract Conditions; 
and, 52.219-17, Section 8(a) Award, shall not be used.

[64 FR 43624, Aug. 11, 1999, as amended at 71 FR 34839, June 16, 2006; 
72 FR 45696, Aug. 15, 2007; 80 FR 6921, Feb. 9, 2015]



619.812  Contract administration.

    (d) The head of the contracting activity is the agency head for the 
purposes of FAR 19.812(d). Awards under the MOU cited in 619.800 are 
subject to 15 U.S.C. 637(a)(21). These contracts contain the clause at 
652.219-71, Section 8(a) Direct Awards, that requires the 8(a) 
contractor to notify the SBA and the contracting officer when ownership 
of the firm is being transferred.

[64 FR 43624, Aug. 11, 1999, as amended at 80 FR 6921, Feb. 9, 2015]



619.870  Acquisition of technical requirements.

    (a) Offering letter. When a decision has been made by OSDBU and the 
contracting officer to process an acquisition through the SBA under the 
8(a) program, the contracting activity shall promptly send to the 
applicable SBA office a letter offering the acquisition to the SBA, with 
an information copy to the Small and Disadvantaged Business Utilization 
Specialist. The offering letter should transmit the statement of work, 
purchase description, technical data package, or specifications and such 
other information deemed necessary by the contracting officer.
    (b) The contracting officer has greater latitude in holding 
discussions with the business concerns being considered under an 8(a) 
program acquisition if under the $4 million competitive threshold for 
8(a) competition than under a non-8(a) program acquisition. Informal 
assessments of potential 8(a) sources shall be within the parameters of 
13 CFR 124.308(g). The technical evaluation must be carefully reviewed 
to determine if any source declared to be unacceptable is capable of 
being made acceptable.

[80 FR 6921, Feb. 9, 2015]



PART 622_APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
--Table of Contents



       Subpart 622.3_Contract Work Hours and Safety Standards Act

Sec.
622.302  Liquidated damages and overtime pay.

   Subpart 622.4_Labor Standards for Contracts Involving Construction

622.404  Construction Wage Rate Requirements statute wage 
          determinations.
622.404-3  Procedures for requesting wage determinations.
622.404-6  Modifications of wage determinations.
622.404-7  Correction of wage determinations containing clerical errors.
622.404-11  Wage determination appeals.
622.406  Administration and enforcement.
622.406-1  Policy.
622.406-8  Investigations.
622.406-9  Withholding from or suspension of contract payments.
622.406-10  Disposition of disputes concerning construction contract 
          labor standards enforcement.
622.406-11  Contract terminations.
622.406-12  Cooperation with the Department of Labor.

Subpart 622.6_Contracts for Materials, Supplies, Articles, and Equipment 
                            Exceeding $15,000

622.604  Exemptions.
622.604-2  Regulatory exemptions.

               Subpart 622.8_Equal Employment Opportunity

622.803  Responsibilities.
622.807  Exemptions.

              Subpart 622.13_Equal Opportunity for Veterans

622.1305  Waivers.
622.1310  Solicitation provision and contract clauses.

         Subpart 622.14_Employment of Workers with Disabilities

622.1403  Waivers.

[[Page 330]]

622.1408  Contract clause.

Subpart 622.15_Prohibition of Acquisition of Products Produced by Forced 
                        or Indentured Child Labor

622.1503  Procedures for acquiring end products on the List of Products 
          Requiring Contractor Certification as to Forced or Indentured 
          Child Labor.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26172, July 11, 1988, unless otherwise noted.



       Subpart 622.3_Contract Work Hours and Safety Standards Act



622.302  Liquidated damages and overtime pay.

    The authority to make the determination prescribed in FAR 22.302(c) 
is delegated, without power of redelegation, to the head of the 
contracting activity.

[55 FR 5774, Feb. 16, 1990]



   Subpart 622.4_Labor Standards for Contracts Involving Construction

    Source: 55 FR 5774, Feb. 16, 1990, unless otherwise noted.



622.404  Construction Wage Rate Requirements statute wage determinations.



622.404-3  Procedures for requesting wage determinations.

    The cognizant contracting activity (see 601.601-70) is the 
contracting agency for the purposes of FAR 22.404-3(b) and (d).

[53 FR 26172, July 11, 1988, as amended at 72 FR 45696, Aug. 15, 2007; 
80 FR 6921, Feb. 9, 2015]



622.404-6  Modifications of wage determinations.

    The cognizant contracting activity is the contracting agency for the 
purposes of FAR 22.404-6.
    (b)(6) The head of the contracting activity is the agency head's 
designee for the purposes of FAR 22.404-6(b)(6).

[55 FR 5774, Feb. 16, 1990, as amended at 59 FR 66760, Dec. 28, 1994]



622.404-7  Correction of wage determinations containing clerical errors.

    The cognizant contracting activity is the contracting agency for the 
purposes of FAR 22.404-7.



622.404-11  Wage determination appeals.

    The cognizant contracting activity is the contracting agency for the 
purposes of FAR 22.404-11.



622.406  Administration and enforcement.



622.406-1  Policy.

    The cognizant contracting activity is the contracting agency for the 
purposes of FAR 22.406-1(a).



622.406-8  Investigations.

    (a) The head of the contracting activity is responsible for 
conducting labor standards investigations as prescribed in FAR 22.406-
8(a).
    (d) The Procurement Executive is the agency head's designee for the 
purposes of FAR 22.406-8(d).

[55 FR 5774, Feb. 16, 1990, as amended at 80 FR 6921, Feb. 9, 2015]



622.406-9  Withholding from or suspension of contract payments.

    The authority to suspend contract payments pursuant to FAR 22.406-
9(b) is delegated, without power of redelegation, to the head of the 
contracting activity.



622.406-10  Disposition of disputes concerning construction contract
labor standards enforcement.

    The cognizant contracting activity is the contracting agency for the 
purposes of FAR 22.406-10(b).



622.406-11  Contract terminations.

    The cognizant contracting activity is the contracting agency for the 
purposes of FAR 22.406-11.



622.406-12  Cooperation with the Department of Labor.

    Any information furnished to the Department of Labor pursuant to FAR 
22.406-12(a) shall be submitted through the head of the contracting 
activity.

[[Page 331]]



Subpart 622.6_Contracts for Materials, Supplies, Articles, and Equipment 
                            Exceeding $15,000



622.604  Exemptions



622.604-2  Regulatory exemptions.

    The Procurement Executive is the agency head for the purposes of FAR 
22.604-2(b)(1).

[55 FR 5774, Feb. 16, 1990, as amended at 71 FR 34839, June 16, 2006]



               Subpart 622.8_Equal Employment Opportunity



622.803  Responsibilities.

    (c) The Procurement Executive is the agency head for the purpose of 
FAR 22.803(c).

[64 FR 43626, Aug. 11, 1999]



622.807  Exemptions.

    The Procurement Executive is the agency head for the purposes of FAR 
22.807(a)(1).



              Subpart 622.13_Equal Opportunity for Veterans



622.1305  Waivers.

    The Procurement Executive is the agency head for the purposes of FAR 
22.1305.

[53 FR 26172, July 11, 1988. Redesignated and amended at 69 FR 19335, 
Apr. 13, 2004]



622.1310  Solicitation provision and contract clauses.

    The Procurement Executive is the agency head for the purposes of FAR 
22.1310 (a)(1)(ii) and (a)(2).

[55 FR 5775, Feb. 16, 1990. Redesignated and amended at 69 FR 19336, 
Apr. 13, 2004; 72 FR 45696, Aug. 15, 2007]



         Subpart 622.14_Employment of Workers with Disabilities



622.1403  Waivers.

    The Procurement Executive is the agency head for the purposes of FAR 
22.1403.



622.1408  Contract clause.

    The Procurement Executive is the agency head for the purposes of FAR 
22.1408.

[55 FR 5775, Feb. 16, 1990]



Subpart 622.15_Prohibition of Acquisition of Products Produced by Forced 
                        or Indentured Child Labor



622.1503  Procedures for acquiring end products on the List of Products
Requiring Contractor Certification as to Forced or Indentured Child Labor.

    (e) The contracting officer shall refer to the DOS Inspector General 
for Investigation any instances where the contracting officer has reason 
to believe that forced or indentured child labor was used to mine, 
produce, or manufacture an end product furnished pursuant to a contract 
awarded subject to the certification required in FAR 22.1503(c).

[69 FR 19336, Apr. 13, 2004]



PART 623_ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE
--Table of Contents



     Subpart 623.2_Energy and Water Efficiency and Renewable Energy

Sec.
623.204  Procurement exemptions.

Subpart 623.3_Hazardous Material Identification and Material Safety Data

623.302-70  Policy.

     Subpart 623.4_Use of Recovered Materials and Biobased Products

623.400  Scope of subpart.

                    Subpart 623.5_Drug-Free Workplace

623.506  Suspension of payments, termination of contract, and debarment 
          and suspension actions.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26172, July 11, 1988, unless otherwise noted.

[[Page 332]]



     Subpart 623.2_Energy and Water Efficiency and Renewable Energy

    Source: 80 FR 6921, Feb. 9, 2015, unless otherwise noted.



623.204  Procurement exemptions.

    The head of the contracting activity is the agency head's designee 
for the purpose of executing the written determination to not purchase 
ENERGY STAR or FEMP-designated products.''



Subpart 623.3_Hazardous Material Identification and Material 
Safety Data



623.302-70  Policy.

    Any work that affects the safety and/or health of post personnel, 
including the handling of hazardous materials, shall comply with the 
applicable requirements of the Department of State Safety/Health and 
Environmental Management Resource Guide (6 FAM 606.7). Requirements 
offices shall ensure that any contractor operations and activities, 
whether sponsored by the post or other Department organization, are 
closely coordinated with the Post Occupational Safety and Health Officer 
during both planning and implementation phases.

[59 FR 66760, Dec. 28, 1994, as amended at 80 FR 6921, Feb. 9, 2015]



     Subpart 623.4_Use of Recovered Materials and Biobased Products

    Source: 64 FR 43626, Aug. 11, 1999, unless otherwise noted.



623.400  Scope of subpart.

    The affirmative procurement program is applicable to all domestic 
acquisitions of items currently designated by an EPA guideline or by 
future guidelines promulgated by EPA. The requirements of this section 
are not applicable to acquisitions awarded outside the United States or 
its possessions.

[64 FR 43626, Aug. 11, 1999, as amended at 69 FR 19336, Apr. 13, 2004]



                    Subpart 623.5_Drug-Free Workplace



623.506  Suspension of payments, termination of contract, and debarment
and suspension actions.

    (e) The authority to approve the determination prescribed in FAR 
23.506(e) is reserved to the Secretary of State.

[55 FR 5775, Feb. 16, 1990, as amended at 81 FR 24707, Apr. 27, 2016]



PART 624_PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION
--Table of Contents



    Authority: 22 U.S.C. 2658; 40 U.S.C. 486(c); 48 CFR Subpart 1.3.



                Subpart 624.2_Freedom of Information Act



624.203  Policy.

    DOS regulations implementing the Freedom of Information Act (5 
U.S.C. 552), as amended, are codified in Chapter 1, Department of State, 
Subchapter R, Access to Information, Part 171, Availability of 
information and records to the public, of Title 22 of the Code of 
Federal Regulations (22 CFR Part 171).

[53 FR 26172, July 11, 1988. Redesignated at 80 FR 6921, Feb. 9, 2015]



PART 625_FOREIGN ACQUISITION--Table of Contents



                   Subpart 625.1_Buy American_Supplies

Sec.
625.103  Exceptions.
625.105  Determining reasonableness of cost.

            Subpart 625.2_Buy American_Construction Materials

625.202  Exceptions.
625.204  Evaluating offers of foreign construction material.

        Subpart 625.70_Arab League Boycott and Related Provisions

625.7001  Policy.
625.7002  Solicitation provision and contract clause.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

    Source: 53 FR 26172, July 11, 1988, unless otherwise noted.

[[Page 333]]



                   Subpart 625.1_Buy American_Supplies



625.103  Exceptions.

    (a) The authority to make the determination prescribed in FAR 
25.103(a) is delegated, without power of redelegation, to the head of 
the contracting activity.

[69 FR 19336, Apr. 13, 2004]



625.105  Determining reasonableness of cost.

    (a)(1) The authority to make the determinations prescribed in FAR 
25.105(a)(1) is delegated, without power of redelegation, to the head of 
the contracting activity.

[69 FR 19336, Apr. 13, 2004]



            Subpart 625.2_Buy American_Construction Materials



625.202  Exceptions.

    (a)(1) The authority to make the determination prescribed in FAR 
25.202(a)(1) is delegated, without power of redelegation, to the head of 
the contracting activity.

[69 FR 19336, Apr. 13, 2004]



625.204  Evaluating offers of foreign construction material.

    (b) The head of the contracting activity is the agency head for the 
purposes of FAR 25.204(b).

[69 FR 19336, Apr. 13, 2004]



        Subpart 625.70_Arab League Boycott and Related Provisions

    Source: 64 FR 43626, Aug. 11, 1999, unless otherwise noted.



625.7001  Policy.

    (a) Section 565 of the Fiscal Year 94/95 Foreign Relations 
Authorizations Act (Public Law 103-236) prohibits the Department of 
State from entering into any contract that expends funds appropriated to 
the Department of State:
    (1) With a foreign person that complies with the Arab League Boycott 
of Israel; or,
    (2) With any foreign or United States person that discriminates in 
the award of subcontracts on the basis of religion.
    (b) This authority has continuing effect. Section 565 requires 
specific language to be included in all Invitations for Bids and 
Requests for Proposals with respect to a contract subject to Section 
565's prohibitions.
    (c) Section 565 may be waived on a country-by-country basis if such 
a waiver is in the national interest and necessary to carry on 
diplomatic functions and is approved by the Secretary of State or his/
her designee.



625.7002  Solicitation provision and contract clause.

    Contracting officers shall include the following provision and 
clause in all solicitations and contracts exceeding the simplified 
acquisition threshold, unless a waiver has been granted in accordance 
with 625.7001(c):
    (a) 652.225-70, Arab League Boycott of Israel; and.
    (b) 652.225-71, Section 8(a) of the Export Administration Act, as 
amended.

[64 FR 43626, Aug. 11, 1999, as amended at 80 FR 6921, Feb. 9, 2015]

[[Page 334]]



              SUBCHAPTER E_GENERAL CONTRACTING REQUIREMENTS





PART 627_PATENTS, DATA, AND COPYRIGHTS--Table of Contents



                  Subpart 627.2_Patents and Copyrights

Sec.
627.201  Patent and copyright infringement liability.
627.201-2  Contract clauses.

         Subpart 627.3_Patent Rights Under Government Contracts

627.303  Contract clauses.
627.304  Procedures.
627.304-1  General.
627.304-4  Appeals.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 59 FR 66763, Dec. 28, 1994, unless otherwise noted.



                  Subpart 627.2_Patents and Copyrights



627.201  Patent and copyright infringement liability.



627.201-2  Contract clauses.

    (e) The Procurement Executive is the agency head's designee for the 
purposes of FAR 27.201-2(e).

[59 FR 66763, Dec. 28, 1994. Redesignated and amended at 80 FR 6921, 
Feb. 9, 2015]



         Subpart 627.3_Patent Rights Under Government Contracts



627.303  Contract clauses.

    The Procurement Executive is the agency head's designee to make the 
determinations addressed in FAR 27.303. Determinations proposed to be 
issued by the Procurement Executive shall be reviewed by the Office of 
the Legal Adviser.

[59 FR 66763, Dec. 28, 1994, as amended at 80 FR 6922, Feb. 9, 2015]



627.304  Procedures.



627.304-1  General.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 27.304-1. Questions regarding fact-finding procedures as 
specified in FAR 27.304-1(a)(4) shall be referred to A/OPE. 
Determinations proposed to be issued by the Procurement Executive shall 
be reviewed by the Office of the Legal Adviser.

[59 FR 66763, Dec. 28, 1994, as amended at 81 FR 24707, Apr. 27, 2016]



627.304-4  Appeals.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 27.304-4. Questions regarding the appeals procedure as 
specified in FAR 27.304-4(b) shall be referred to A/OPE.

[59 FR 66763, Dec. 28, 1994. Redesignated and amended at 80 FR 6922, 
Feb. 9, 2015]



PART 628_BONDS AND INSURANCE--Table of Contents



           Subpart 628.1_Bonds and Other Financial Protections

Sec.
628.101  Bid guarantees.
628.101-1  Policy on use.
628.106-6  Furnishing information.

           Subpart 628.2_Sureties and Other Security for Bonds

628.203  Acceptability of individual surety.
628.203-7  Exclusion of individual sureties.

                         Subpart 628.3_Insurance

628.305  Overseas workers' compensation and war-hazard insurance.
628.309  Contract clauses for workers' compensation insurance.
628.309-70  DOSAR provisions and clauses.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26173, July 11, 1988, unless otherwise noted.



           Subpart 628.1_Bonds and Other Financial Protections

    Source: 59 FR 66763, Dec. 28, 1994, unless otherwise noted.

[[Page 335]]



628.101  Bid guarantees.



628.101-1  Policy on use.

    (c) The Procurement Executive is the agency head's designee for the 
purposes of FAR 28.101-1(c).



628.106-6  Furnishing information.

    (c) The head of the contracting activity is the agency head's 
designee for the purposes of FAR 28.106-6(c).



           Subpart 628.2_Sureties and Other Security for Bonds



628.203  Acceptability of individual surety.

    (g) Evidence of possible criminal or fraudulent activities by an 
individual surety shall be referred to the Assistant Inspector General 
for Investigations.

[59 FR 66763, Dec. 28, 1994, as amended at 69 FR 19336, Apr. 13, 2004]



628.203-7  Exclusion of individual sureties.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 28.203-7.

[59 FR 66763, Dec. 28, 1994]



                         Subpart 628.3_Insurance

    Source: 71 FR 34840, June 16, 2006, unless otherwise noted.



628.305  Overseas workers' compensation and war-hazard insurance.

    (b)(1) Acquisitions for services, including construction but 
excluding personal services contracts, requiring contractor personnel to 
perform work outside of the United States, shall include the contractual 
obligation for coverage under the Defense Base Act (42 U.S.C. Sections 
1651-1654, as amended), for covered contractor employees. For the 
purposes of this section, ``covered contractor employees'' includes the 
following individuals:
    (i) United States citizens or residents;
    (ii) Individuals hired in the United States or its possessions, 
regardless of citizenship; and,
    (iii) Local nationals and third country nationals where contract 
performance takes place in a country where there are no local workers' 
compensation laws.
    (2) Individuals who are self-employed (i.e., they have not 
incorporated) do not meet the definition of an employee. No Defense Base 
Act insurance is required when contracting with these individuals.
    (3) Exceptions are discussed in paragraphs (e)(1) and (f) of this 
section.
    (d) The authority to recommend a waiver from the Defense Base Act, 
as set forth in FAR 28.305(d), is reserved to the Secretary of State.
    (e)(1) The Secretary of Labor has waived the applicability of the 
Defense Base Act to all DOS service contracts, including construction, 
for contractor employees who are local nationals or third country 
nationals. This waiver is conditioned on the requirement for the 
contractor to provide workers' compensation benefits against the risk of 
work injury or death and assume liability toward the employees and their 
beneficiaries for war-hazard injury, death, capture, or detention as 
prescribed by the local workers' compensation laws.
    (2) In cases where a contract is performed in a country where there 
are no local workers' compensation laws, local and third country 
national contractor employees are considered to be ``covered contractor 
employees'', and the contractor shall acquire Defense Base Act insurance 
for those employees pursuant to the contract between the Department of 
State and the Defense Base Act insurance broker.
    (f)(1) Section 16 of the State Department Basic Authorities Act (22 
U.S.C. 2680a), as amended, provides that the Defense Base Act shall not 
apply with respect to such contracts as the Secretary of State 
determines are contracts with persons employed to perform work for the 
Department of State on an intermittent basis for not more than 90 days 
in a calendar year. The Department of State has established that 
``persons'' includes employees hired by companies under contract with 
the Department. The Procurement Executive has the authority to issue the 
waivers for employees who

[[Page 336]]

work on an intermittent or short-term basis. Waivers may be issued only 
for employees who are U.S. citizens and residents, and only where the 
contractor provides evidence of alternative workers' compensation 
coverage for those employees. Waivers may not be issued for local or 
third country nationals.
    (2) The contractor shall submit waiver requests to the contracting 
officer. The request shall contain the following information:
    (i) Contract number;
    (ii) Name of contractor;
    (iii) Brief description of the services to be provided under the 
contract and country of performance;
    (iv) Name and position title of individual(s);
    (v) Nationality of individual(s) (must be U.S. citizen or resident);
    (vi) Dates (or timeframe) of performance at the overseas location; 
and
    (vii) Evidence of alternative workers' compensation coverage for 
these employees (e.g., evidence that the State workers' compensation 
program covers workers on short-term foreign assignments).
    (3) The contracting officer shall review the request for 
completeness and accuracy. If the request is complete and accurate, the 
contracting officer shall forward the request to the Procurement 
Executive. If the contractor does not provide complete and accurate 
information, the contracting officer shall return the request to the 
contractor with an explanation as to what additional information is 
required.
    (4) The Procurement Executive shall review requests for waiver 
forwarded by the contracting officer and either approve or disapprove 
the request. The Procurement Executive shall return the request 
indicating his/her approval or disapproval to the contracting officer. 
Any request that is not approved shall describe the reason(s) why the 
request was not approved. The contracting officer shall provide the 
contractor with the original of the approved or disapproved document and 
maintain a copy in the contract file.

[71 FR 34840, June 16, 2006, as amended at 80 FR 6922, Feb. 9, 2015]



628.309  Contract clauses for workers' compensation insurance.



628.309-70  DOSAR provisions and clauses.

    (a) The contracting officer shall insert the provision at 652.228-
70, Defense Base Act--Covered Contractor Employees, in all solicitations 
for services and construction to be performed outside of the United 
States.
    (b) The contracting officer shall insert the clause at 652.228-71, 
Workers' Compensation Insurance (Defense Base Act)--Services, in 
solicitations and contracts for services to be performed outside of the 
United States when there is a reasonable expectation that offers will 
include covered contractor employees, as defined in 628.305(b). If the 
contracting officer is unsure as to whether offers will include covered 
contractor employees, the contracting officer shall insert the clause.

[71 FR 34840, June 16, 2006, as amended at 80 FR 6922, Feb. 9, 2015]



PART 629_TAXES--Table of Contents



                          Subpart 629.1_General

Sec.
629.101  Resolving tax problems.

                   Subpart 629.2_Federal Excise Taxes

629.202  General exemptions.
629.202-70  Exemption from other Federal taxes.

                   Subpart 629.3_State and Local Taxes

629.302  Application of State and local taxes to the Government.
629.303  Application of State and local taxes to Government contractors 
          and subcontractors.

                     Subpart 629.4_Contract Clauses

629.401  Domestic contracts.
629.401-70  DOSAR contract clause.
629.402  Foreign contracts.
629.402-1  Foreign fixed-price contracts.
629.402-1-70  DOSAR contract clause.

    Authority: 22 U.S.C. 2658; 40 U.S.C. 486(c); 48 CFR Subpart 1.3.

    Source: 53 FR 26173, July 11, 1988, unless otherwise noted.

[[Page 337]]



                          Subpart 629.1_General



629.101  Resolving tax problems.

    In certain instances, acquisitions by posts are exempt from various 
taxes in foreign countries. Contracting officers shall ascertain such 
exemptions and take maximum advantage of them.



                   Subpart 629.2_Federal Excise Taxes



629.202  General exemptions.



629.202-70  Exemptions from other Federal taxes.

    Taxable articles purchased for presentation abroad as gifts to 
foreign dignitaries and taxable articles purchased for presentation as 
gifts to foreign dignitaries visiting in the United States but which are 
to be taken out of the United States may be exempt from retail taxes or 
manufacturers excise taxes, in accordance with the letter of October 18, 
1963, from the Chief, Excise Tax Branch, Internal Revenue Service.



                   Subpart 629.3_State and Local Taxes



629.302  Application of State and local taxes to the Government.

    The Office of the Legal Adviser is the agency-designated counsel for 
the purposes of FAR 29.302(a).



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

    The authority to make the determination prescribed in FAR 29.303(a) 
is delegated, without power of redelegation, to the head of the 
contracting activity (see 601.603-70). The Office of the Legal Adviser 
is the agency-designated counsel for the purposes of FAR 29.303(c).



                     Subpart 629.4_Contract Clauses



629.401  Domestic contracts.



629.401-70  DOSAR contract clause.

    The contracting officer shall insert the clause at 652.229-71, 
Excise Tax Exemption Statement for Contractors Within the United States, 
in solicitations and contracts if the prospective contractor is located 
inside the United States and the acquisition involves export of supplies 
to an overseas post.



629.402  Foreign contracts.



629.402-1  Foreign fixed-price contracts.



629.402-1-70  DOSAR contract clause.

    The contracting officer shall insert the clause at 652.229-71, 
Personal Property Disposition at Posts Abroad, in all solicitations and 
contracts performed overseas.

[64 FR 43627, Aug. 11, 1999]



PART 630_COST ACCOUNTING STANDARDS ADMINISTRATION--Table of Contents



                 Subpart 630.2_CAS Program Requirements

Sec.
630.201  Contract requirements.
630.201-5  Waiver.

    Source: 69 FR 19336, Apr. 13, 2004, unless otherwise noted.



                 Subpart 630.2_CAS Program Requirements



630.201  Contract requirements.



630.201-5  Waiver.

    (a) The Procurement Executive is the head of the agency for the 
purposes of FAR 30.201-5(a) and (b).



PART 631_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents



                       Subpart 631.1_Applicability

Sec.
631.101  Objectives.

          Subpart 631.2_Contracts with Commercial Organizations

631.205  Selected costs.
631.205-6  Compensation for personal services.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 59 FR 66764, Dec. 28, 1994, unless otherwise noted.

[[Page 338]]



                       Subpart 631.1_Applicability



631.101  Objectives.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 31.101.



          Subpart 631.2_Contracts with Commercial Organizations



631.205  Selected costs.



631.205-6  Compensation for personal services.

    (g)(6) The head of the contracting activity is the agency head's 
designee for the purpose of FAR 31.205-6(g)(6).

[64 FR 43627, Aug. 11, 1999, as amended at 72 FR 45696, Aug. 15, 2007; 
80 FR 6922, Feb. 9, 2015]



PART 632_CONTRACT FINANCING--Table of Contents



Sec.
632.006  Reduction or suspension of contract payments upon finding of 
          fraud.
632.006-1  General.
632.006-2  Definitions.
632.006-3  Responsibilities.
632.006-4  Procedures.

          Subpart 632.1_Non-Commercial Item Purchase Financing

632.114  Unusual contract financing.

            Subpart 632.2_Commercial Item Purchase Financing

632.201  Statutory authority.

         Subpart 632.4_Advance Payments for Non-Commercial Items

632.402  General.
632.404  Exclusions.
632.407  Interest.

                     Subpart 632.7_Contract Funding

632.702  Policy.
632.702-70  DOS policy.
632.703  Contract funding requirements.
632.703-3  Contracts crossing fiscal years.
632.706  Contract clauses.
632.706-70  DOSAR contract clause.

                   Subpart 632.8_Assignment of Claims

632.803  Policies.

                      Subpart 632.9_Prompt Payment

632.906  Making payments.
632.908  Contract clauses.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26173, July 11, 1988, unless otherwise noted.



632.006  Reduction or suspension of contract payments upon finding of fraud.



632.006-1  General.

    The Procurement Executive is the agency head for the purpose of FAR 
32.006-1.

[64 FR 43627, Aug. 11, 1999]



632.006-2  Definitions.

    Remedy coordination official means the Procurement Executive.

[64 FR 43627, Aug. 11, 1999, as amended at 69 FR 19336, Apr. 13, 2004]



632.006-3  Responsibilities.

    (b) DOS personnel shall report immediately and in writing any 
apparent or suspected instances where the contractor's request for 
advance, partial, or progress payments is based on fraud. The report 
shall be made to the contracting officer and the Assistant Inspector 
General for Investigations. The report shall outline the events, acts, 
or conditions which indicate the apparent or suspected violation and 
include all pertinent documents. The Assistant Inspector General for 
Investigations will investigate, as appropriate. If appropriate, the 
Office of the Inspector General will provide a report to the Procurement 
Executive.

[80 FR 6922, Feb. 9, 2015]



632.006-4  Procedures.

    The Procurement Executive is the agency head for the purposes of FAR 
32.006-4.

[64 FR 43627, Aug. 11, 1999]



          Subpart 632.1_Non-Commercial Item Purchase Financing



632.114  Unusual contract financing.

    The Procurement Executive is the agency head for the purpose of FAR 
32.114.

[64 FR 43627, Aug. 11, 1999]

[[Page 339]]



            Subpart 632.2_Commercial Item Purchase Financing



632.201  Statutory authority.

    The head of the contracting activity is the agency head for the 
purpose of FAR 32.201.

[64 FR 43627, Aug. 11, 1999]



         Subpart 632.4_Advance Payments for Non-Commercial Items



632.402  General.

    (b) Advance payments shall be authorized sparingly. Contracting 
officers should consider the use of partial payments, fast payments, or 
more frequent payments as alternatives to advance payments.
    (c)(1)(iii) The authority to make the determination prescribed in 
FAR 32.402(c)(1)(iii) is delegated, without power of redelegation, to 
the head of the contracting activity (see 601.603-70). For acquisitions 
by overseas posts, the head of the contracting activity shall obtain the 
concurrence of the Procurement Executive before making a determination 
pursuant to this section.

[53 FR 26173, July 11, 1988, as amended at 59 FR 66764, Dec. 28, 1994]



632.404  Exclusions.

    (a) Total advance payments may be authorized for the items listed in 
FAR 32.404(a), notwithstanding their designation as a commercial item 
and acquisition under FAR part 12 procedures.

[64 FR 43627, Aug. 11, 1999]



632.407  Interest.

    (d) The Procurement Executive is the agency head's designee for the 
purposes of FAR 32.407(d).

[59 FR 66764, Dec. 28, 1994]



                     Subpart 632.7_Contract Funding

    Source: 64 FR 43628, Aug. 11, 1999, unless otherwise noted.



632.702  Policy.



632.702-70  DOS policy.

    The Department's policy is to provide full funding for all 
contracts, to the maximum extent practicable. FAR 32.704 and 32.705-2 
provide for incremental funding of cost-reimbursement contracts. Fixed-
price, labor-hour, and time-and-materials contracts for severable 
services may also be incrementally funded if full funding is not 
available at the time of contract award and the contracting officer 
executes a determination and findings, approved by the requirements 
office, justifying the need for incremental funding due to the 
unavailability of funds.



632.703  Contract funding requirements.



632.703-3  Contracts crossing fiscal years.

    (b) The head of the contracting activity is the agency head for the 
purpose of FAR 32.703-3(b).



632.706  Contract clauses.



632.706-70  DOSAR contract clause.

    The contracting officer shall insert the clause at 652.232-72, 
Limitation of Funds, in incrementally funded fixed-price, labor-hour, 
and time-and-materials solicitations and contracts for severable 
services.



                   Subpart 632.8_Assignment of Claims



632.803  Policies.

    (b) The assignment of claims shall be prohibited for all personal 
services contracts. The assignment of claims shall also be prohibited 
for all contracts awarded and performed overseas, unless approval is 
received from the Procurement Executive. The Directors, Regional 
Procurement Support Offices may approve the assignment of claims for 
contracts under their administration after obtaining legal consultation.

[59 FR 66764, Dec. 28, 1994, as amended at 64 FR 43628, Aug. 11, 1999]

[[Page 340]]



                      Subpart 632.9_Prompt Payment



632.906  Making payments.

    (a) General. The authority to make the determination prescribed in 
FAR 32.906(a) is delegated, without power of redelegation, to the head 
of the contracting activity. Before making this determination, the head 
of the contracting activity shall consult with the appropriate financial 
office.

[69 FR 19336, Apr. 13, 2004]



632.908  Contract clauses.

    (a) The contracting officer may insert a clause substantially the 
same as the clause at 652.232-70, Payment Schedule and Invoice 
Submission (Fixed-Price), in fixed-price type solicitations and 
contracts.
    (b) The contracting officer may insert a clause substantially the 
same as the clause at 652.232-71, Voucher Submission (cost-
Reimbursement), in cost-reimbursement type solicitations and contracts.

[59 FR 66764, Dec. 28, 1994]



PART 633_PROTESTS, DISPUTES, AND APPEALS--Table of Contents



                         Subpart 633.1_Protests

Sec.
633.102  General.
633.103  Protests to the agency.
633.104  Protests to GAO.

                   Subpart 633.2_Disputes and Appeals

633.203  Applicability.
633.214  Alternative dispute resolution (ADR)
633.214-70  DOS ADR program.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26173, July 11, 1988, unless otherwise noted.



                         Subpart 633.1_Protests



633.102  General.

    All communications relative to protests filed with the Government 
Accountability Office (GAO) shall be coordinated with the Office of the 
Legal Adviser.

[53 FR 26173, July 11, 1988, as amended at 64 FR 43628, Aug. 11, 1999; 
72 FR 45696, Aug. 15, 2007]



633.103  Protests to the agency.

    (d)(4) The independent review as described in FAR 33.103(d)(4) shall 
be performed by the Departmental Advocate for Competition.

[64 FR 43628, Aug. 11, 1999, as amended at 80 FR 6922, Feb. 9, 2015]



633.104  Protests to GAO.

    (a) General procedures. The Office of the Assistant Legal Adviser 
for Buildings and Acquisitions (L/BA) coordinates the response of the 
Department of State to protests filed at the GAO. Contracting activities 
shall consult L/BA for guidance before taking any actions in response to 
a protest to GAO.

[64 FR 43628, Aug. 11, 1999]



                   Subpart 633.2_Disputes and Appeals



633.203  Applicability.

    (b) The Procurement Executive is the agency head for the purposes of 
FAR 33.203(b).
    (c) The Agency Board of Contract Appeals for the Department of State 
is the United States Civilian Board of Contract Appeals (CBCA). See 
http://www.cbca.gsa.gov.

[53 FR 26173, July 11, 1988, as amended at 80 FR 6922, Feb. 9, 2015]



633.214  Alternative Dispute Resolution (ADR)



633.214-70  DOS ADR program.

    (a) Policy. The Department's goal is to resolve contract disputes 
before the issuance of a contracting officer's final decision under the 
Disputes statute (41 U.S.C. chapter 71). Contracting officers shall 
consider all possible means of reaching a negotiated settlement, 
consistent with the Government's best interests, before issuing a final 
decision on a contractor claim under the process outlined in FAR 33.206 
through 33.211.

[[Page 341]]

    (b) When to use ADR--(1) Factors favoring ADR. Contracting officers 
should consider using ADR in those cases where:
    (i) Only facts are in dispute;
    (ii) The facts are clearly not favorable to the Government;
    (iii) The anticipated costs (in time and money) are less than the 
anticipated costs of litigation;
    (iv) Settlement attempts have reached an impasse;
    (v) ADR techniques have been used successfully in similar 
situations;
    (vi) There is a need for independent expert analysis; or,
    (vii) The claim has merit but its value is overstated.
    (2) Factors disfavoring ADR. The following circumstances do not 
favor use of ADR:
    (i) Cases involving disputes controlled by clear legal precedent, 
making compromise difficult;
    (ii) The resolution will have a significant impact on other pending 
cases or on the future conduct of Department business;
    (iii) The dispute is primarily over issues of law;
    (iv) A decision of precedential value is needed;
    (v) A significant policy question is involved;
    (vi) A full public record of the proceeding is important;
    (vii) The outcome could significantly involve persons who are not 
parties to the contract;
    (viii) The costs of pursuing an ADR procedure (in time and money) 
exceed the cost of litigation;
    (ix) The nature of the case may cause ADR to be used merely for 
delay or discovery; or,
    (x) The case involves criminal violations.
    (3) Initial action. Immediately upon receipt of a claim, the 
contracting officer shall send a letter acknowledging receipt of the 
claim and soliciting the contractor's views on submitting this claim for 
ADR. In every dispute, the first step toward resolution shall be 
unassisted negotiations, in which the parties try to work out the 
disagreement among themselves. If this fails, before issuing a final 
decision, the contracting officer shall consult first with the head of 
the contracting activity, and contact the Office of the Legal Adviser 
and A/OPE to determine whether the disagreement appears susceptible to 
resolution by ADR. Consideration shall be given to pursuing additional 
fact-finding or designating a neutral expert in the disputed issue to 
provide an advisory opinion.
    (c) Methods of ADR. If the initial action to resolve the dispute 
fails, and the contracting officer issues a final decision which is 
appealed, ADR may still be feasible. The CBCA issues a notice regarding 
ADR to all contractors who file appeals under the Contract Disputes Act. 
This notice describes the following ADR techniques, which contracting 
officers are urged to discuss with contractors at any time:
    (1) Settlement judge. A settlement judge is either an administrative 
judge or hearing examiner who is appointed by the parties in dispute for 
the purpose of facilitating settlement. The agenda is flexible and based 
on the specifics of the individual dispute. By holding a frank, in-depth 
discussion of the strengths and weaknesses of each party's position, the 
settlement judge may be able to foster a settlement of the dispute. The 
settlement judge may meet with the parties jointly or individually, and 
the settlement judge's recommendations are not binding. Typically, the 
settlement judge's opinions, based on his or her experience in handling 
prior disputes, will help the parties realize whether their arguments 
have merit or not.
    (2) Minitrial. A minitrial is not an actual trial but rather a 
flexible, expedited, but structured procedure in which each party 
presents an abbreviated version of its position both to a neutral 
advisor (who may be appointed by the CBCA) and to principals of the 
parties who have full contractual authority to conclude a settlement. 
The parties mutually decide on the form of presentation without regard 
to traditional judicial proceedings or rules of evidence. An advance 
agreement by the parties specifies the procedure to be followed in 
making presentations, as well as the role of the neutral advisor. Upon 
conclusion of the presentations, settlement negotiations are conducted.

[[Page 342]]

The neutral advisor may assist the parties in negotiating settlement, 
including making non-binding recommendations.
    (3) Summary trial with binding decision. A summary trial with 
binding decision is a procedure in which the scheduling of an appeal is 
expedited and the parties try their appeal informally before an 
administrative judge or panel of judges. The length of the trial and the 
time for presentation and decision are tailored to the needs of the 
particular case. Trial procedures and rules applicable to appeals are 
modified or eliminated to expedite resolution of the appeal. The parties 
must agree, however, that all decisions, rulings, and orders by the 
judge(s) are final, conclusive, and not appealable, and may not be set 
aside, except for fraud. A summary ``bench'' decision is issued at the 
conclusion of the trial or a summary written decision will be issued 
within ten (10) days of either the trial's conclusion or receipt of a 
trial transcript.
    (4) Mediation. Mediation is a process in which a neutral and 
impartial third party assists the Government and the contractor in 
conflict to negotiate an acceptable settlement of contested issues. The 
mediator is jointly selected and is asked by the disputing parties to 
assist them to reach a voluntary agreement. The mediator has no 
decisionmaking authority and cannot impose a decision. Mediation 
assistance involves working with the parties to improve their 
communications, clarify or interpret data, identify key issues to be 
discussed, design an effective negotiation process, generate settlement 
options, or help to identify or formulate areas of agreement. Additional 
information on alternative dispute resolution and mediation resources is 
available at the following address on the Internet: http://www.adrr.com
    (5) Arbitration. Non-binding arbitration is a process in which a 
dispute is jointly submitted by the Government and a contractor to an 
impartial and neutral person or panel who provides a written, non-
binding opinion used as a guide for negotiations toward a settlement. 
Although the Administrative Dispute Resolution Act of 1990 (Pub. L. 101-
552) allows agencies to use binding arbitration, the law provides that 
the agency head may vacate any arbitration award within 30 days after it 
is served on all parties. For this reason, non-binding arbitration is 
preferable. Additional information on alternative dispute resolution and 
mediation resources is available at the following address on the 
Internet: http://www.adrr.com
    (6) Partnering. Partnering involves an agreement in principle to 
share the risks involved in completing a project, and to establish and 
promote a partnership environment. Partnering itself is not a 
contractual agreement and it does not create any legally enforceable 
rights, but instead partnering seeks to create a new cooperative 
attitude in completing Government contracts. The three basic steps in 
partnering are:
    (i) Establish the new relationship through personal contact among 
the principals for the Government and the contractor before the work 
begins;
    (ii) Prepare a joint statement of goals establishing common 
objectives in specific detail for reaching the goals; and,
    (iii) Identify specific dispute prevention processes designed to 
head off problems, evaluate performance, and promote cooperation. 
Additional information on alternative dispute resolution and mediation 
resources is available at the following address on the Internet: http://
www.adrr.com
    (d) ADR procedures. The ADR method shall be selected voluntarily by 
both the Government and the contractor. Both parties shall agree on the 
procedures to be followed, including the agenda and amount of time 
allowed for each party to present its case. The parties may choose not 
to have a written transcript or hearing on the record, as this might 
inhibit settlement. Also, the decision rendered, if any, should not be 
considered to establish any precedent for future litigation unless the 
parties agree otherwise. In cases where the parties agree to pay jointly 
for a third-party neutral advisor, it is recommended that the parties 
and the advisor agree on a fair and reasonable price. The Government 
would then issue a simplified acquisition (if the dollar amount does not 
exceed the simplified acquisition threshold) for 50% of the agreed 
price, and the advisor would

[[Page 343]]

submit separate invoices (each for 50% of the price) to the Government 
and the contractor.

[59 FR 66764, Dec. 28, 1994, as amended at 64 FR 43628, Aug. 11, 1999; 
80 FR 6922, Feb. 9, 2015]

[[Page 344]]



             SUBCHAPTER F_SPECIAL CATEGORIES OF CONTRACTING





PART 634_MAJOR SYSTEM ACQUISITION--Table of Contents



Sec.
634.003  Responsibilities.
634.005  General requirements.
634.005-6  Full production.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

    Source: 53 FR 26175, July 11, 1988, unless otherwise noted.



634.003  Responsibilities.

    (a) The Procurement Executive is the agency head's designee for the 
purposes of FAR 34.003(a).
    (b) The Under Secretary for Management is the agency head for the 
purposes of FAR 34.003(c) and the acquisition executive for the purposes 
of A-109.

[53 FR 26175, July 11, 1988, as amended at 59 FR 66766, Dec. 28, 1994; 
64 FR 43628, Aug. 11, 1999]



634.005  General requirements.



634.005-6  Full production.

    The Deputy Secretary is the agency head for the purposes of FAR 
34.005-6 with power of redelegation to the Under Secretary for 
Management.

[59 FR 66766, Dec. 28, 1994, as amended at 64 FR 43628, Aug. 11, 1999]



PART 636_CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS--Table of Contents



                          Subpart 636.1_General

Sec.
636.101  Applicability.
636.101-70  Exception.
636.104  Policy
636.104-70  Foreign Service Buildings Act of 1926, as amended.
636.104-71  Omnibus Diplomatic Security and Antiterrorism Act.

      Subpart 636.2_Special Aspects of Contracting for Construction

636.209  Construction contracts with architect-engineer firms.

                     Subpart 636.5_Contract Clauses

636.513  Accident prevention.
636.570  Additional DOSAR provisions.

                Subpart 636.6_Architect-Engineer Services

636.602  Selection of firms for architect-engineer contracts.
636.602-1  Selection criteria.
636.602-4  Selection authority.
636.602-5  Short selection processes for contracts not to exceed the 
          simplified acquisition threshold.
636.606  Negotiations.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26175, July 11, 1988, unless otherwise noted.



                          Subpart 636.1_General



636.101  Applicability.



636.101-70  Exception.

    Contracts for overseas construction, including capital improvements, 
alterations, and major repairs, may be excepted where necessary from the 
provisions of the FAR (48 CFR Chapter 1) under the authority of section 
3 of the Foreign Service Buildings Act of 1926, as amended (22 U.S.C. 
294). The Director/Chief Operating Officer of the Bureau of Overseas 
Buildings Operations is authorized to approve such exceptions.

[69 FR 19337, Apr. 13, 2004]



636.104  Policy.



636.104-70  Foreign Service Buildings Act of 1926, as amended.

    (a) Policy. Section 11 of the Foreign Service Buildings Act of 1926, 
as amended (22 U.S.C. 302) limits competition for the construction, 
alteration, or repair of buildings or grounds abroad exceeding $5 
million to:
    (1) American-owned firms; or
    (2) Firms from countries which permit or agree to permit 
substantially equal access to American firms for comparable diplomatic 
and consular building projects.
    (b) Limitation. This participation may be permitted by or limited 
to:
    (1) Host-country firms where required by international agreement; or

[[Page 345]]

    (2) By the laws of the host country; or
    (3) Where determined by the Secretary of State to be necessary in 
the interest of bilateral relations or necessary to carry out the 
construction project.
    (c) Evaluation preference. For purposes of determining competitive 
status, American-owned firms shall receive a ten (10) percent price 
preference reduction, provided that two prospective responsible bidders/
offerors submit a bid/offer.

[69 FR 19337, Apr. 13, 2004]



636.104-71  Omnibus Diplomatic Security and Antiterrorism Act.

    (a) Preference for United States contractors. The Omnibus Diplomatic 
Security and Antiterrorism Act of 1986 (Public Law 99-399; 22 U.S.C. 
4852) limits certain construction projects abroad to United States 
persons or qualified United States joint venture persons. The Omnibus 
Diplomatic Security and Antiterrorism Act of 1986 applies to the 
following, as determined by the Assistant Secretary for Diplomatic 
Security:
    (1) Diplomatic construction or design projects abroad exceeding $10 
million; or,
    (2) Diplomatic construction projects abroad at any dollar amount 
that involve technical security, unless the project involves low-level 
technology.
    (b) Exception. This preference shall not apply with respect to any 
diplomatic construction or design project in a foreign country whose 
statutes prohibit the use of United States contractors on such projects.
    (c) Subcontracting limitation. With respect to a diplomatic 
construction project, a prime contractor may not subcontract more than 
50 percent of the total value of the contract for that project.

[69 FR 19337, Apr. 13, 2004]



      Subpart 636.2_Special Aspects of Contracting for Construction



636.209  Construction contracts with architect-engineer firms.

    The Procurement Executive is the head of the agency for the purposes 
of FAR 36.209.



                     Subpart 636.5_Contract Clauses



636.513  Accident prevention.

    (a) In accordance with a class deviation approved by the Procurement 
Executive, contracting officers at overseas contracting activities shall 
insert the clause at 652.236-70, Accident Prevention, in lieu of FAR 
clause 52.236-13 when awarding construction contracts. The contracting 
officer shall confer with OBO/OM/SHEM if there are any questions on any 
factors listed in paragraph (4) of the clause, or if the contracting 
officer has any questions regarding construction safety issues.

[64 FR 43628, Aug. 11, 1999, as amended at 69 FR 19337, Apr. 13, 2004; 
80 FR 6922, Feb. 9, 2015]



636.570  Additional DOSAR provisions.

    (a) The contracting officer shall insert the provision at 652.236-
71, Foreign Service Buildings Act, As Amended, in all contracts 
exceeding $5,000,000 for the construction, alteration, or repair of 
buildings and grounds overseas, unless:
    (1) An international agreement with or laws of the host country 
government permits or limits the participation to host-country firms; 
or,
    (2) The Secretary of State determines that it is necessary to the 
interest of bilateral relations or to carry out the project to either 
permit or limit the participation to host-country firms; or,
    (3) The provision at 652.236-72 applies.
    (b) The contracting officer shall insert the provision at 652.236-
72, Statement of Qualifications for the Omnibus Diplomatic Security and 
Antiterrorism Act, in all diplomatic construction or design 
solicitations exceeding $10 million; or, diplomatic construction 
projects abroad at any dollar amount that involve technical security, 
unless

[[Page 346]]

the project involves low-level technology, as determined by the 
Assistant Secretary of Diplomatic Security.

[69 FR 19337, Apr. 13, 2004, as amended at 80 FR 6922, Feb. 9, 2015]



                Subpart 636.6_Architect-Engineer Services



636.602  Selection of firms for architect-engineer contracts.



636.602-1  Selection criteria.

    (b) The head of the contracting activity is the agency head's 
designee for the purpose of FAR 36.602-1(b).

[64 FR 43628, Aug. 11, 1999]



636.602-4  Selection authority.

    (a) For acquisitions conducted by A/LM/AQM on behalf of the Bureau 
of Overseas Buildings Operations, the final selection decision shall be 
made by the Director/Chief Operating Officer of the Bureau of Overseas 
Buildings Operations, with the concurrence of the contracting officer 
and L/BA. For other domestic acquisitions, the selection decision shall 
be made by an individual designated by the Assistant Secretary of State 
for Administration. For acquisitions conducted by overseas posts, the 
selection decision shall be made by the contracting officer.''

[80 FR 6922, Feb. 9, 2015]



636.602-5  Short selection processes for contracts not to exceed the
simplified acquisition threshold.

    The short selection process described in FAR 36.602-5 is authorized 
for use for contracts not expected to exceed the simplified acquisition 
threshold.

[59 FR 66766, Dec. 28, 1994, as amended at 60 FR 39663, Aug. 3, 1995]



636.606  Negotiations.

    (a) Contracting officers at overseas posts may request a waiver from 
A/OPE if the contracting officer is unable to negotiate a fee within the 
six percent limitation. See 615.404-4(c)(4)(i)(B).''

[80 FR 6922, Feb. 9, 2015]



PART 637_SERVICE CONTRACTING--Table of Contents



                 Subpart 637.1_Service Contracts_General

Sec.
637.102  Policy.
637.102-70  Special requirements for the acquisition of local guard 
          services overseas.
637.103  Contracting officer responsibility.
637.104  Personal services contracts.
637.104-70  DOS authorities for personal services contracts.
637.104-71  Personal services agreements.
637.110  Solicitation provisions and contract clauses.

             Subpart 637.2_Advisory and Assistance Services

637.204  Guidelines for determining availability of personnel.

               Subpart 637.6_Performance-Based Contracting

637.601  General.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26176, July 11, 1988, unless otherwise noted.



                 Subpart 637.1_Service Contracts_General



637.102  Policy.

    (c) Any Acquisition Plan or procurement request package for services 
expected to exceed $25,000 shall include a Form DS-4208 completed by the 
requiring activity. Instructions for completing the DS-4208 may be found 
at http://aop epd.a. state. gov/Content /documents /DS- 4208- Instruc 
tions.docx.

[53 FR 26176, July 11, 1988, as amended at 80 FR 6922, Feb. 9, 2015]



637.102-70  Special requirements for the acquisition of local guard
services overseas.

    (a) Policy. Section 136 of the Foreign Relations Authorization Act, 
Fiscal Years 1990 and 1991 (22 U.S.C. 4864) encourages the participation 
of United States persons and qualified United States joint venture 
persons in local guard contracts overseas under diplomatic security 
programs.
    (b) Evaluation preference. For purposes of determining competitive 
status, proposals of United States persons

[[Page 347]]

and qualified United States joint venture persons shall receive a ten 
(10) percent price preference reduction.

[69 FR 19337, Apr. 13, 2004]



637.103  Contracting officer responsibility.

    (a)(2) The Office of the Legal Adviser is the DOS legal counsel for 
the purposes of FAR 37.103(a)(2).
    (e) The Contracting Officer shall review the Forms DS-4208 submitted 
by requiring activities, not contract for inherently governmental 
functions and assist in implementation of mitigation strategies for 
efforts that are closely associated with inherently governmental 
functions. A copy of the DS-4208 shall be retained in the contract file.

[53 FR 26176, July 11, 1988, as amended at 80 FR 6922, Feb. 9, 2015]



637.104  Personal services contracts.

    (e) The Office of the Legal Adviser is the DOS legal counsel for the 
purposes of FAR 37.104(e).



637.104-70  DOS authorities for personal services contracts.

    Pursuant to FAR 37.104(b), DOS statutory authorities for personal 
services contracts are--
    (a) For the Department, section 2(c) of the State Department Basic 
Authorities Act of 1956, as amended (22 U.S.C. 2669);
    (b) For the Bureau of Population, Refugees, and Migration, section 
5(a)(6) of the Migration and Refugee Assistance Act of 1962, as amended 
(22 U.S.C. 2605);
    (c) For the Bureau for International Narcotics and Law Enforcement 
Affairs, section 636(a)(3) of the Foreign Assistance Act of 1961, as 
amended (22 U.S.C. 2396);
    (d) For the Foreign Service Institute, section 704(a)(4) of the 
Foreign Service Act of 1980, as amended (22 U.S.C. 4024);
    (e) For the Office of Foreign Missions, section 208(d) of Title II--
Authorities Relating to the Regulation of Foreign Missions, of the State 
Department Basic Authorities Act of 1956, as amended (22 U.S.C. 4308);
    (f) For the Bureau of Overseas Buildings Operations, section 5 of 
the Foreign Service Buildings Act, 1926, as amended (22 U.S.C. 296);
    (g) For the U.S. Mission to the United Nations, section 7 of the 
United Nations Participation Act of 1945, as amended (22 U.S.C. 287e);
    (h) For the Bureau of International Organization Affairs, the 
separate State Department appropriations acts; and
    (i) For the Bureau of Diplomatic Security, section 206 of Public Law 
99-399, as amended by the Emergency Supplemental Appropriations Act of 
1998.

[53 FR 26176, July 11, 1988, as amended at 59 FR 66766, Dec. 28, 1994; 
60 FR 39663, Aug. 3, 1995; 64 FR 43629, Aug. 11, 1999; 69 FR 19337, Apr. 
13, 2004]



637.104-71  Personal services agreements.

    (a) Applicability. This section applies only to personal services 
agreements (PSAs) awarded under the authority of 22 U.S.C. 2669(c).
    (b) Definition. ``Personal Services Agreement (PSA)'' is a method of 
employment using the statutory authority under 22 U.S.C. 2669(c). The 
Procurement Executive has delegated program management responsibility 
for PSAs awarded under the Department of State basic authority at 22 
U.S.C. 2669(c). When applied to U.S. citizens hired under this 
authority, the term ``PSA Plus'' is normally used.
    (c) Policy. DOS contracting officers at overseas posts should not 
award any personal services contracts that are subject to acquisition 
statutes and regulations.
    (d) Authority. (1) The Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995, amended section 2(c) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2669(c)) by revising the Department's 
authority. This language states: ``and such contracts are authorized to 
be negotiated, the terms of the contracts to be prescribed, and the work 
to be performed, where necessary, without regard to such statutory 
provisions as relative to the negotiation, making, and performance of 
contracts and performance of work in the United States.''
    (2) This authority was further amended under the National Defense 
Authorization Act for Fiscal Year 2002

[[Page 348]]

which added subsection (n) to 22 U.S.C. 2669. This language states 
``exercise the authority provided in section (c), upon the request of 
the Secretary of Defense or the head of any other department or agency 
of the United States, to enter into personal services contracts with 
individuals to perform services in support of the Department of Defense 
or such other department or agency, as the case may be.'' This authority 
allowed the use of 22 U.S.C. 2669(c) by all other agencies, provided 
they meet certain criteria and agree to follow certain guidelines laid 
out in a Memorandum of Agreement (MOA). That MOA is not signed at the 
post level, but by a senior official at the Department of State and the 
other agency. Without the MOA in place, other agencies may not use this 
basic authority. HR/OE has responsibility for implementation of the 
authority that came with this legislative change. The HR/OE Web site 
includes the latest listing of agencies that have signed the MOA and can 
use this authority.
    (3) This statutory language has continuing effect and provides 
authority to the Department of State, and now other agencies, if they so 
agree, to obtain personal services without adherence to acquisition 
statutes. In furtherance of the authority provided by the statute, the 
Procurement Executive has waived the applicability of acquisition 
regulations when obtaining personal services under the authority of 22 
U.S.C. 2669(c). As a result, it is not necessary for the individual 
executing a PSA under the authority of 22 U.S.C. 2669(c) to have a 
contracting officer's certificate of appointment required under FAR 
1.603 and 601.603 (see 601.603-3(d)).
    (e) Signatory authority. Only direct hire U.S. citizens may sign 
PSAs. Provided the individual meets that criterion, individuals who may 
sign PSAs are limited to the following:
    (1) The Human Resources Officer;
    (2) The Human Resources/Financial Management Officer; or,
    (3) The Management Officer or American FSO designated to perform 
human resources functions (e.g., GSO, RSO, etc.).

[80 FR 6923, Feb. 9, 2015]



637.110  Solicitation provisions and contract clauses.

    (a) The contracting officer shall insert the clause at 652.237-70, 
Compensatory Time Off, in personal services contracts awarded in support 
of International Narcotics Control programs overseas, if the contracting 
officer determines its use appropriate.
    (b) The contracting officer shall insert a clause substantially the 
same as the clause at 652.237-72, Observance of Legal Holidays and 
Administrative Leave, in all solicitations and contracts where 
contractor personnel will be working on-site in any Department of State 
facility. Overseas contracting activities may add local holidays to the 
list included in paragraph (a) of the clause.
    (c) The contracting officer shall insert the provision at 652.237-
73, Statement of Qualifications for Preference as a U.S. Person, in all 
overseas local guard solicitations.

[59 FR 66766, Dec. 28, 1994, as amended at 64 FR 43629, Aug. 11, 1999; 
69 FR 19337, Apr. 13, 2004; 76 FR 20250, Apr. 12, 2011]



             Subpart 637.2_Advisory and Assistance Services



637.204  Guidelines for determining availability of personnel.

    The head of the contracting activity is the agency head for the 
purposes of FAR 37.204.

[64 FR 43629, Aug. 11, 1999]



               Subpart 637.6_Performance-Based Contracting



637.601  General.

    It is the Department's policy that all new service contracts be 
performance-based, with clearly defined deliverables and performance 
standards. Any deviations from this policy shall be fully justified in 
writing and approved by the Departmental Advocate for Competition.

[69 FR 19337, Apr. 13, 2004, as amended at 80 FR 6923, Feb. 9, 2015]

[[Page 349]]



PART 639_ACQUISITION OF INFORMATION TECHNOLOGY--Table of Contents



                          Subpart 639.1_General

Sec.
639.107  Contract clause.
639.107-70  DOSAR solicitation provision and contract clause.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

    Source: 72 FR 51569, Sept. 10, 2007, unless otherwise noted.



                          Subpart 639.1_General



639.107  Contract clause.



639.107-70  DOSAR solicitation provision and contract clause.

    (a) The contracting officer shall insert the provision at 652.239-
70, Information Technology Security Plan and Accreditation, in 
solicitations that include information technology resources or services 
in which the contractor will have physical or electronic access to 
Department information that directly supports the mission of the 
Department.
    (b) The contracting officer shall insert the clause at 652.239-71, 
Security Requirements for Unclassified Information Technology Resources, 
in solicitations and contracts containing the provision at 652.239-70. 
The provision and clause shall not be inserted in solicitations and 
contracts for personal services with individuals.



PART 641_ACQUISITION OF UTILITY SERVICES--Table of Contents



    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

    Source: 64 FR 43629, Aug. 11, 1999, unless otherwise noted.



                Subpart 641.2_Acquiring Utility Services



641.201  Policy.

    (d) The Procurement Executive is the agency head for the purposes of 
FAR 41.201(d)(2)(i) and FAR 41.201(d)(3).

[[Page 350]]



                    SUBCHAPTER G_CONTRACT MANAGEMENT





PART 642_CONTRACT ADMINISTRATION AND AUDIT SERVICES--Table of Contents



             Subpart 642.2_Contract Administration Services

Sec.
642.270  Contracting Officer's Representative (COR).
642.271  Government Technical Monitor (GTM).
642.272  DOSAR contract clauses.

       Subpart 642.6_Corporate Administration Contracting Officer

642.602  Assignment and location.

                    Subpart 642.7_Indirect Cost Rates

642.703  General.
642.703-2  Certificate of indirect costs.

            Subpart 642.15_Contractor Performance Information

642.1503  Procedures.
642.1503-70  Contractor Performance Assessment Reporting System (CPARS).

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26176, July 11, 1988, unless otherwise noted.



             Subpart 642.2_Contract Administration Services



642.270  Contracting Officer's Representative (COR).

    (a) Scope. Contracting officers may designate technically qualified 
personnel as their authorized representatives to assist in the 
administration of contracts. This section is mandatory for domestic 
contracting activities and recommended for overseas contracting 
activities.
    (b) Policy. It is Department policy that only Department of State 
employees who have completed adequate training and have the necessary 
experience and judgment shall be appointed as CORs. This policy shall be 
reinforced by contracting officers and administered jointly by A/OPE and 
FSI. Required training shall be funded by the COR's office.

[59 FR 66766, Dec. 28, 1994]



642.271  Government Technical Monitor (GTM).

    (a) Policy. The contracting officer may appoint a Government 
Technical Monitor (GTM) to assist the Contracting Officer's 
Representative (COR) in monitoring a contractor's performance. The 
contracting officer may appoint a GTM because of physical proximity to 
the contractor's work site, or because of special skills or knowledge 
necessary for monitoring the contractor's work. The contracting officer 
may also appoint a GTM to represent the interests of another 
requirements office or post concerned with the contractor's work. A GTM 
shall be a direct-hire U.S. Government employee.

[69 FR 19338, Apr. 13, 2004]



642.272  DOSAR contract clauses.

    (a) The contracting officer shall insert a clause substantially the 
same as the clause at 652.242-70, Contracting Officer's Representative, 
in solicitations and contracts when appointment of a contracting 
officer's representative is anticipated.
    (b) The contracting officer shall insert a clause substantially the 
same as the clause at 652.242-73, Authorization and Performance, in all 
solicitations and contracts to be awarded and/or performed overseas. For 
overseas local guard contracts, the contracting officer shall use the 
clause with its Alternate I.

[64 FR 43629, Aug. 11, 1999. Redesignated at 69 FR 19338, Apr. 13, 2004]



       Subpart 642.6_Corporate Administration Contracting Officer



642.602  Assignment and location.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 42.602(a).

[[Page 351]]



                    Subpart 642.7_Indirect Cost Rates



642.703  General.



642.703-2  Certificate of indirect costs.

    (b) The head of the contracting activity is the agency head's 
designee for the purpose of FAR 42.703-2(b).

[64 FR 43629, Aug. 11, 1999]



            Subpart 642.15_Contractor Performance Information



642.1503  Procedures.



642.1503-70  Contractor Performance Assessment Reporting System (CPARS).

    (a) The Department of State subscribes to the Contractor Performance 
Assessment Reporting System (CPARS) maintained at http://www.cpars.gov/. 
CPARS is an Internet-based tool allowing government activities to input 
past performance information. This information is uploaded by CPARS into 
the Past Performance Information Retrieval System (PPIRS).
    (b) All DOS contracting officers shall evaluate contractors' past 
performance as required by FAR 42.1502 and 42.1503.
    (c) All Terminations for Default and Terminations for Cause shall be 
entered into CPARS regardless of contract purpose or dollar value.
    (d) Heads of contracting activities shall send a list of the names, 
work addresses, and phone numbers of all acquisition personnel whom they 
wish to have access to the CPARS to [email protected].

[80 FR 6923, Feb. 9, 2015]



PART 643_CONTRACT MODIFICATIONS--Table of Contents



                          Subpart 643.1_General

Sec.
643.102  Policy.
643.102-70  Contract compliance and review.
643.104  Notification of contract changes.
643.104-70  DOSAR contract clause.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

    Source: 53 FR 26176, July 11, 1988, unless otherwise noted.



                          Subpart 643.1_General



643.102  Policy.



643.102-70  Contract compliance and review.

    When applicable, the contracting officer shall ensure the proposed 
contract modification complies with the competition requirements of FAR 
Part 6 and DOSAR Part 606.

[53 FR 26176, July 11, 1988, as amended at 59 FR 66767, Dec. 28, 1994; 
64 FR 43629, Aug. 11, 1999]



643.104  Notification of contract changes.



643.104-70  DOSAR contract clause.

    The contracting officer shall insert the clause at 652.243-70, 
Notices, in all solicitations and contracts exceeding the micro-purchase 
threshold which are awarded and/or performed overseas.

[64 FR 43629, Aug. 11, 1999]



PART 644_SUBCONTRACTING POLICIES AND PROCEDURES--Table of Contents



    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 64 FR 43629, Aug. 11, 1999, unless otherwise noted.



          Subpart 644.3_Contractors' Purchasing Systems Reviews



644.302  Requirements.

    (a) The Procurement Executive is the head of the agency for the 
purpose of FAR 44.302(a).



PART 645_GOVERNMENT PROPERTY--Table of Contents



                          Subpart 645.1_General

Sec.
645.107  Contract clauses.
645.107-70  DOSAR contract clause and solicitation provision.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 78 FR 76076, Dec. 16, 2013, unless otherwise noted.

[[Page 352]]



                          Subpart 645.1_General



645.107  Contract clauses.



645.107-70  DOSAR contract clause and solicitation provision.

    (a) The contracting officer shall insert the provision at 652.245-
70, Status of Property Management System, in solicitations when any of 
the following conditions apply:
    (1) Highway motor vehicles or aircraft, regardless of cost, are 
provided by the Government or acquired by the contractor for the account 
of the Government;
    (2) Software exceeding $500,000 in value, including labor costs to 
develop, is provided by the Government or acquired by the contractor for 
the account of the Government; or
    (3) Personal property greater than $25,000 (and not in paragraph 
(a)(1) of this subsection) is provided by the Government or acquired by 
the contractor for the account of the Government. The personal property 
must be complete within itself; does not lose its identity or become a 
component part of other property when put into use; and is of a durable 
nature with an estimated useful life expectancy to exceed two years.
    (b) The contracting officer shall insert the clause at 652.245-71, 
Special Reports of Government Property, in all solicitations and 
contracts that contain the provision at 652.245-70.

[78 FR 76076, Dec. 16, 2013, as amended at 80 FR 6923, Feb. 9, 2015]



PART 647_TRANSPORTATION--Table of Contents



Sec.
647.000  Scope of part.

Subpart 647.2_Contracts for Transportation or for Transportation-Related 
                                Services

647.207  Solicitation provisions, contract clauses, and special 
          requirements.
647.207-7  Liability and insurance.

            Subpart 647.3_Transportation in Supply Contracts

647.305  Solicitation provisions, contract clauses, and transportation 
          factors.
647.305-70  Notice of shipment.
647.305-71  Shipping instructions.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 59 FR 66767, Dec. 28, 1994, unless otherwise noted.



647.000  Scope of part.

    The FAR and DOSAR do not apply to the acquisition of transportation 
services via Government bill of lading (GBL) or other similar forms.



Subpart 647.2_Contracts for Transportation or for Transportation-Related 
                                Services



647.207  Solicitation provisions, contract clauses, and special requirements.



647.207-7  Liability and insurance.

    (e) The Procurement Executive has approved a class deviation for 
paragraph (c) of FAR clause 52.247-23, Contractor Liability for Loss of 
and/or Damage to Household Goods. The contracting officer shall indicate 
that the contractor shall indemnify the owner of the goods at a rate of 
$5.00 per pound (or metric equivalent in local currency) based on the 
total net weight. The rate conforms with liability calculations found in 
International Through Government Bills of Lading (ITGBL).

[64 FR 43629, Aug. 11, 1999]



            Subpart 647.3_Transportation in Supply Contracts

    Source: 80 FR 6923, Feb. 9, 2015, unless otherwise noted.



647.305  Solicitation provisions, contract clauses, and transportation
factors.



647.305-70  Notice of shipment.

    The contracting officer shall insert the clause at 652.247-70, 
Notice of Shipment, in solicitations and contracts entered into and 
performed outside the United States, when overseas shipment of supplies 
is required.

[[Page 353]]



647.305-71  Shipping instructions.

    The contracting officer shall insert the clause at 652.247-71, 
Shipping Instructions, in solicitations and contracts with a source in 
the United States if overseas shipment of supplies is required.



PART 648_VALUE ENGINEERING--Table of Contents



                  Subpart 648.1_Policies and Procedures

648.102  Policies.

    Authority: 22 U.S.C. 2658; 40 U.S.C. 486(c); 48 CFR 1.3.

    Source: 55 FR 5775, Feb. 16, 1990, unless otherwise noted.]



                  Subpart 648.1_Policies and Procedures



648.102  Policies.

    (a) The authority to grant exemptions prescribed in FAR 48.102(a), 
or to extend future contract savings or sharing pursuant to FAR 
48.102(g), is delegated, without power of redelegation, to the head of 
the contracting activity (see 601.603-70).



                     Subpart 648.2_Contract Clauses



648.201  Clauses for supply or service contracts.

    The authority to determine exemptions prescribed in FAR 48.201(a)(6) 
is delegated, without power of redelegation, to the head of the 
contracting activity.

[55 FR 5775, Feb. 16, 1990]



PART 649_TERMINATION OF CONTRACTS--Table of Contents



649.101  Authorities and responsibilities.
649.101-70  Termination action decisions after debarment.
649.106  Fraud or other criminal conduct.

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 59 FR 66767, Dec. 28, 1994, unless otherwise noted.



                    Subpart 649.1_General Principles



649.101  Authorities and responsibilities.



649.101-70  Termination action decisions after debarment.

    (a) Prior to making a decision to terminate, based on the 
consideration listed below, the contracting officer shall have the 
proposed action reviewed and approved by:
    (1) The Office of the Legal Adviser;
    (2) An individual one level above the contracting officer; and
    (3) For overseas posts, A/OPE.
    (b) Termination for default. Termination for default under a 
contract's default clause is appropriate when the circumstances giving 
rise to the debarment or suspension also constitute a default in the 
contractor's performance of that contract. Debarment or suspension of 
the contractor for reasons unrelated to the performance of that contract 
may not support a termination for default.
    (c) Termination for convenience or cancellation. Termination for 
convenience or cancellation under appropriate contract clauses should be 
considered when the contractor presents a significant risk to the 
Government in completing a current contract and when such termination 
for convenience or cancellation is determined to be in the Government's 
best interests. In making this determination, the contracting officer 
should consider such factors as the--
    (1) Seriousness of the cause for debarment or suspension;
    (2) Extent of contract performance;
    (3) Potential costs to the Government;
    (4) Urgency of the requirement and the impact of the delay; and/or
    (5) Availability of other safeguards to protect the Government's 
interests.

[53 FR 26165, July 11, 1988, as amended at 59 FR 66756, Dec. 28, 1994. 
Redesignated at 81 FR 51125, Aug. 3, 2016]



649.106  Fraud or other criminal conduct.

    If the Contracting Officer (CO) suspects fraud or other criminal 
conduct

[[Page 354]]

related to the settlement of a terminated contract, the CO shall 
discontinue negotiations and report the facts to the Office of the 
Inspector General.

[59 FR 66767, Dec. 28, 1994, as amended at 80 FR 6923, Feb. 9, 2015]



649.111  Review of proposed settlements.

    All proposed termination settlements shall be reviewed and approved 
by the Office of the Legal Adviser for legal sufficiency. In addition,
    (a) All proposed termination settlements from domestic contracting 
activities shall be approved by the head of the contracting activity, 
with the exception of termination settlements on simplified acquisitions 
and no-cost termination settlements; and,
    (b) All proposed termination settlements from overseas contracting 
activities shall be approved by the Procurement Executive.

[80 FR 6924, Feb. 9, 2015]



PART 651_USE OF GOVERNMENT SOURCES BY CONTRACTORS--Table of Contents



    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.



   Subpart 651.70_Contractor Use of Travel Advances, Official Travel 
               Orders, and Government Travel Requisitions



651.7001  Policy.

    (a) It is the Department's policy that contractors shall not:
    (1) Receive travel advances from the Department for contract-related 
travel;
    (2) Travel under official travel orders; or,
    (3) Receive Government Travel Requisitions (GTRs) for 
transportation.
    (b) All contract-related travel shall be performed on the 
contractor's account with reimbursement provided after submission of a 
proper voucher.
    (c) This policy does not apply to personal services contractor; 
provided, that such contractors are paid through the Department's 
payroll system and they are subject to the standard payroll deductions 
of Federal Withholding Tax and FICA.

[59 FR 66767, Dec. 28, 1994, as amended at 69 FR 19338, Apr. 13, 2004. 
Redesignated at 81 FR 24707, Apr. 27, 2016]

[[Page 355]]



                     SUBCHAPTER H_CLAUSES AND FORMS





PART 652_SOLICITATION PROVISIONS AND CONTRACT CLAUSES--Table of Contents



Sec.
652.000  Scope of part.

       Subpart 652.1_Instructions for Using Provisions and Clauses

652.100  Scope of subpart.
652.100-70  Policy.
652.102  Incorporating provisions and clauses.
652.102-1  Incorporation by reference.

              Subpart 652.2_Text of Provisions and Clauses

652.200  Scope of subpart.
652.204-70  Department of State Personal Identification Card Policy and 
          Procedures.
652.206-70  Advocate for Competition/Ombudsman.
652.216-70  Ordering--Indefinite-Delivery Contract.
652.216-71  Price Adjustment.
652.219-70  Department of State Subcontracting Goals.
652.219-71  Section 8(a) Direct Awards.
652.219-72  Department of State Mentor-Protege Program.
652.219-73  Mentor Requirements and Evaluation.
652.225-70  Arab League Boycott of Israel.
652.225-71  Section 8(a) of the Export Administration Act of 1979, as 
          Amended.
652.228-70  Defense Base Act--Covered Contractor Employees.
652.228-71  Worker's Compensation Insurance (Defense Base Act)--
          Services.
652.229-70  Excise Tax Exemption Statement for Contractors Within the 
          United States.
652.229-71  Personal Property Disposition at Posts Abroad.
652.232-70  Payment Schedule and Invoice Submission (Fixed-Price).
652.232-71  Voucher Submission (Cost-Reimbursement).
652.232-72  Limitation of Funds.
652.236-70  Accident Prevention.
652.236-71  Foreign Service Buildings Act, as Amended
652.236-72  Statement of Qualifications for the Omnibus Diplomatic 
          Security and Antiterrorism Act.
652.237-70  Compensatory time off.
652.237-71  [Reserved]
652.237-72  Observance of Legal Holidays and Administrative Leave.
652.237-73  Statement of Qualifications for Preference as a U.S. Person.
652.239-70  Information Technology Security Plan and Accreditation.
652.239-71  Security Requirements for Unclassified Information 
          Technology Resources.
652.242-70  Contracting Officer's Representative (COR).
652.242-71-652.242-72  [Reserved]
652.242-73  Authorization and Performance.
652.243-70  Notices.
652.245-70  Status of Property Management System.
652.245-71  Special Reports of Government Property.
652.247-70  Notice of Shipments.
652.247-71  Shipping Instructions.
652.247-72  [Reserved]

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 1.

    Source: 53 FR 26177, July 11, 1988, unless otherwise noted.



652.000  Scope of part.

    This part sets forth solicitation provisions and contract clauses, 
in addition to those prescribed in FAR Part 52, for use in DOS 
acquisitions.



       Subpart 652.1_Instructions for Using Provisions and Clauses



652.100  Scope of subpart.



652.100-70  Policy.

    (a) The solicitation provisions and contract clauses in FAR subpart 
52.2 or this subpart 652.2 shall be used as prescribed therein, except 
when the use of any provision or clause is prohibited by or inconsistent 
with local laws, or the supplies or services could not be obtained if 
the provision or clause were to be included.
    (b) The contracting officer shall justify the exclusion of any 
provisions or clauses in accordance with FAR subpart 1.4 and 601.470.

[53 FR 26177, July 11, 1988, as amended at 81 FR 24707, Apr. 27, 2016]

[[Page 356]]



652.102  Incorporating provisions and clauses.



652.102-1  Incorporation by reference.

    The Procurement Executive is the agency head for the purposes of FAR 
52.102-1(a)(2)(ii).



              Subpart 652.2_Text of Provisions and Clauses



652.200  Scope of subpart.

    This subpart sets forth the text of all DOSAR provisions and 
clauses, and for each provision and clause provides a cross-reference to 
the location in the DOSAR that prescribes its use.



652.204-70  Department of State Personal Identification Card Policy
and Procedures.

    As prescribed in 604.1303-70, insert the following clause:

 Department of State Personal Identification Card Policy and Procedures 
                               (FEB 2015)

    (a) The Contractor shall comply with the Department of State (DOS) 
Personal Identification Card Policy and Procedures for all employees 
performing under this contract who require frequent and continuing 
access to DOS facilities, or information systems. The Contractor shall 
insert the substance of this clause in all subcontracts when the 
subcontractor's employees will require frequent and continuing access to 
DOS facilities, or information systems.
    (b) The DOS Personal Identification Card Policy and Procedures may 
be accessed at http://www.state.gov/m/ds/rls/rpt/c21664.htm.

                             (End of clause)

[80 FR 6932, Feb. 9, 2015]



652.206-70  Advocate for Competition/Ombudsman.

    As prescribed in 606.570, insert the following provision:

              Advocate for Competition/Ombudsman (FEB 2015)

    (a) The Department of State's Advocate for Competition is 
responsible for assisting industry in removing restrictive requirements 
from Department of State solicitations and removing barriers to full and 
open competition and use of commercial items. If such a solicitation is 
considered competitively restrictive or does not appear properly 
conducive to competition and commercial practices, potential offerors 
are encouraged first to contact the contracting officer for the 
solicitation. If concerns remain unresolved, contact:
    (1) For solicitations issued by the Office of Acquisition Management 
(A/LM/AQM) or a Regional Procurement Support Office, the A/LM/AQM 
Advocate for Competition, at [email protected].
    (2) For all others, the Department of State Advocate for Competition 
at [email protected].
    (b) The Department of State's Acquisition Ombudsman has been 
appointed to hear concerns from potential offerors and contractors 
during the preaward and postaward phases of this acquisition. The role 
of the ombudsman is not to diminish the authority of the contracting 
officer, the Technical Evaluation Panel or Source Evaluation Board, or 
the selection official. The purpose of the ombudsman is to facilitate 
the communication of concerns, issues, disagreements, and 
recommendations of interested parties to the appropriate Government 
personnel, and work to resolve them. When requested and appropriate, 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 contact the 
contracting activity ombudsman, [insert name], at [insert telephone and 
fax numbers]. For an American Embassy or overseas post, refer to the 
numbers below for the Department Acquisition Ombudsman. Concerns, 
issues, disagreements, and recommendations which cannot be resolved at a 
contracting activity level may be referred to the Department of State 
Acquisition Ombudsman at (703) 516-1680, by fax at (703) 875-6155, or 
write to: Department of State, Acquisition Ombudsman, Office of the 
Procurement Executive (A/OPE), Suite 603, SA-6, Washington, DC 20522-
0602.

                           (End of provision)

[64 FR 43629, Aug. 11, 1999, as amended at 80 FR 6924, Feb. 9, 2015]



652.216-70  Ordering--Indefinite-Delivery Contract.

    As prescribed in 616.506-70, insert the following clause:

           Ordering--Indefinite-Delivery Contracts (APR 2004)

    The Government shall use one of the following forms to issue orders 
under this contract:
    (a) The Optional Form 347, Order for Supplies or Services, and 
Optional Form 348, Order for Supplies or Services Schedule--
Continuation; or,

[[Page 357]]

    (b) The DS-2076, Purchase Order, Receiving Report and Voucher, and 
DS-2077, Continuation Sheet.

                             (End of clause)

[53 FR 26177, July 11, 1988, as amended at 59 FR 66768, Dec. 28, 1994; 
64 FR 43630, Aug. 11, 1999; 69 FR 19338, Apr. 13, 2004]



652.216-71  Price Adjustment.

    As prescribed in 616.203-4, insert a clause substantially the same 
as follows:

                       Price Adjustment (AUG 1999)

    (a) The contract price may be increased or decreased in actual costs 
of direct service labor which result directly from laws enacted and 
effective during the term of this contract by the [insert name of 
country] Government. Direct service labor costs include only the costs 
of wages and direct benefits (such as social security, health insurance, 
unemployment compensation insurance) paid to or incurred for the direct 
benefit of personnel performing services under one of the categories 
listed in Section [identify section number] of this contract. Price 
adjustments will include only changes in direct service labor costs 
incurred in order to comply with the requirements of the law. No 
adjustment will be made under this clause with respect to labor costs of 
personnel not performing direct service labor under the categories of 
Section [identify section], nor for overhead, profit, general and 
administrative (G&A) costs, taxes or any other costs whatsoever.
    (b) For the contracting officer to consider any request for 
adjustment, the contractor shall demonstrate in writing:
    (1) That the change in the law occurred during the term of this 
contract and subsequent to the award date of this contract; and,
    (2) That the change in the law could not have been reasonably 
anticipated prior to contract award; and,
    (3) How the change in the law directly affects the contractor's 
costs under this contract.
    (c) The contractor shall present data that clearly supports any 
request for adjustment. This data shall be submitted no later than 30 
calendar days after the changes in the law have been made public. This 
data shall include, but not be limited to, the following:
    (1) The calculation of the amount of adjustment requested; and,
    (2) Documentation which identifies and provides the appropriate 
portions of the text of the particular law from which the request is 
derived.
    (d) In order to establish the change between the requested adjusted 
rate and the original rate, the contractor shall support the appropriate 
data and composition of the original rate and the requested adjusted 
rate. This shall include details regarding specific hourly rates paid to 
individual employees. For contracts paid in U.S. dollars, the 
contractor's request for price adjustment shall present data reflecting:
    (1) The exchange rate in effect on the date of the contractor's 
proposal that was accepted for the basic contract; and
    (2) The current exchange rate and its effect on payment of workers 
in local currency. The allowable adjustment shall be limited to the 
extent to which increases in direct service labor costs due to host 
country law changes are not offset by exchange rate gains.
    (e) Only direct cost changes mandated by enacted laws shall be 
considered for adjustment under this contract. Changes for purposes of 
maintaining parity of pay between employees at the minimum mandated 
levels and employees already paid at levels above the newly mandated 
minimums shall not be considered. Therefore, if the contractor elects to 
increase payments to employees who are already being paid at or above 
the mandated amounts, such increased costs shall be borne solely by the 
contractor and shall not be justification for an increase in the hourly 
and monthly rates under this contract.
    (f) Any request for adjustment shall be presented by signature of an 
officer or general partner of the contractor having overall 
responsibility for the conduct of the contractor's affairs.
    (g) No adjustment shall be made to the contract price that relates 
to any indirect, overhead, or fixed costs, profit or fee. Only the 
changes in direct service labor wages (and any benefits based directly 
on wages) shall be considered by the U.S. Government as basis for 
contract price changes.
    (h) No request by the contractor for an adjustment under this clause 
shall be allowed if asserted after final payment has been made under 
this contract.
    (i) This clause shall only apply to laws enacted by the [insert name 
of country] Government meeting the criterion set forth above in 
paragraph (b). No adjustments shall be made due to currency fluctuations 
in exchange rates.

                             (End of clause)

[64 FR 43630, Aug. 11, 1999]



652.219-70  Department of State Subcontracting Goals.

    As prescribed in 619.708-70, insert a provision substantially the 
same as follows:

[[Page 358]]

           Department of State Subcontracting Goals (APR 2004)

    (a) The offeror shall provide a Small, Small Disadvantaged, Woman-
Owned Small, HUBZone Small, and Service-Disabled Veteran-Owned Small 
Enterprise Subcontracting Plan that details its approach to selecting 
and using Small, Small Disadvantaged, Woman-Owned Small, HUBZone Small, 
and Service-Disabled Veteran-Owned Small Business Enterprises.
    (b) For the fiscal year [insert appropriate fiscal year], the 
Department's subcontracting goals are as follows:
(1) Goal for subcontracting to SB: ________
(2) Goal for subcontracting to SDB: ________
(3) Goal for subcontracting to SWB: ________
(4) Goal for subcontracting to HUBZone Firms: ________
(5) Goal for subcontracting to SDVO: ________
(6) Omnibus goals (if applicable): ________
    (i) 10% to minority business
    (ii) 10% to small business

                           (End of provision)

[69 FR 19338, Apr. 13, 2004]



652.219-71  Section 8(a) Direct Awards.

    As prescribed in 619.811-3(f), insert the following clause:

                  Section 8(a) Direct Awards (AUG 1999)

    (a) This purchase order or contract is issued as a direct award 
between the contracting activity and the 8(a) contractor pursuant to the 
Memorandum of Understanding between the Small Business Administration 
(SBA) and the Department of State (DOS). SBA retains responsibility for 
8(a) certification, 8(a) eligibility determinations and related issues, 
and provides counseling and assistance to the 8(a) contractor under the 
8(a) program. The cognizant SBA district office is: [To be completed by 
the contracting officer at the time of award]
    (b) The DOS contracting officer is responsible for administering the 
purchase order or contract and taking any action on behalf of the 
Government under the terms and conditions of the purchase order or 
contract. However, the DOS contracting officer shall give advance notice 
to the SBA before it issues a final notice terminating performance, 
either in whole or in part, under the purchase order or contract. The 
DOS contracting officer shall also coordinate with SBA prior to 
processing any novation agreement. The DOS contracting officer may 
assign contract administration functions to a contract administration 
office.
    (c) The contractor agrees:
    (1) to notify the DOS contracting officer, simultaneous with its 
notification to SBA (as required by SBA's 8(a) regulations), when the 
owner or owners upon whom 8(a) eligibility is based, plan to relinquish 
ownership or control of the concern. Consistent with 15 U.S.C. 
637(a)(21), transfer of ownership or control shall result in termination 
of the contract for convenience, unless SBA waives the requirement for 
termination prior to the actual relinquishing of ownership and control; 
and,
    (2) to adhere to the requirements of FAR 52.219-14, Limitations on 
Subcontracting.

                             (End of clause)

[64 FR 43630, Aug. 11, 1999]



652.219-72  Department of State Mentor-Protege Program.

    As prescribed in 619.202-70(o)(1), insert the following provision:

          Department of State Mentor-Protege Program (APR 2004)

    (a) Large and small businesses are encouraged to participate in the 
Department of State Mentor-Protege Program. Mentor firms provide 
eligible small business proteges with developmental assistance to 
enhance their business capabilities and ability to obtain Federal 
contracts.
    (b) Mentor firms are large prime contractors or eligible small 
businesses capable of providing developmental assistance. Protege firms 
are small businesses, as defined in 13 CFR parts 121, 124, and 126.
    (c) Developmental assistance is technical, managerial, financial, 
and other mutually beneficial assistance that aids proteges. Firms 
interested in participating in the program are encouraged to contact the 
Department of State OSDBU for further information.

                           (End of provision)

[69 FR 19338, Apr. 13, 2004]



652.219-73  Mentor Requirements and Evaluation.

    As prescribed in 619.202-70(o)(2), insert the following clause:

              Mentor Requirements and Evaluation (APR 2004)

    (a) Mentor and protege firms shall submit an evaluation to the 
Department of State's OSDBU at the conclusion of the mutually agreed 
upon program period, the conclusion of the contract, or the voluntary 
withdrawal

[[Page 359]]

by either party from the program, whichever occurs first. At the 
conclusion of each year in the mentor-protege program, the prime 
contractor and protege will formally brief the Department of State 
Mentor-Protege Program Manager regarding program accomplishments under 
their mentor-protege agreement.
    (b) A mentor or protege shall notify the OSDBU and the contracting 
officer, in writing, at least 30 calendar days in advance of the 
effective date of the firm's withdrawal from the program. A mentor firm 
shall notify the OSDBU and the contracting officer upon receipt of a 
protege's notice of withdrawal from the program.

                             (End of clause)

[69 FR 19338, Apr. 13, 2004]



652.225-70  Arab League Boycott of Israel.

    As prescribed in 625.7002(a), insert the following provision:

                Arab League Boycott of Israel (AUG 1999)

    (a) Definitions. As used in this provision:
    Foreign person means any person other than a United States person as 
defined below.
    United States person means any United States resident or national 
(other than an individual resident outside the United States and 
employed by other than a United States person), any domestic concern 
(including any permanent domestic establishment of any foreign concern), 
and any foreign subsidiary or affiliate (including any permanent foreign 
establishment) of any domestic concern which is controlled in fact by 
such domestic concern, as provided under the Export Administration Act 
of 1979, as amended.
    (b) Certification. By submitting this offer, the offeror certifies 
that it is not:
    (1) Taking or knowingly agreeing to take any action, with respect to 
the boycott of Israel by Arab League countries, which Section 8(a) of 
the Export Administration Act of 1979, as amended (50 U.S.C. 2407(a)) 
prohibits a United States person from taking; or,
    (2) Discriminating in the award of subcontracts on the basis of 
religion.

                           (End of provision)

[64 FR 43631, Aug. 11, 1999]



652.225-71  Section 8(a) of the Export Administration Act of 1979,
as Amended.

    As prescribed in 625.7002(b), insert the following clause:

 Section 8(a) of the Export Administration Act of 1979, as Amended (AUG 
                                  1999)

    (a) Section 8(a) of the U.S. Export Administration Act of 1979, as 
amended (50 U.S.C. 2407(a)), prohibits compliance by U.S. persons with 
any boycott fostered by a foreign country against a country which is 
friendly to the United States and which is not itself the object of any 
form of boycott pursuant to United States law or regulation. The Boycott 
of Israel by Arab League countries is such a boycott, and therefore, the 
following actions, if taken with intent to comply with, further, or 
support the Arab League Boycott of Israel, are prohibited activities 
under the Export Administration Act:
    (1) Refusing, or requiring any U.S. person to refuse to do business 
with or in Israel, with any Israeli business concern, or with any 
national or resident of Israel, or with any other person, pursuant to an 
agreement of, or a request from or on behalf of a boycotting country;
    (2) Refusing, or requiring any U.S. person to refuse to employ or 
otherwise discriminating against any person on the basis of race, 
religion, sex, or national origin of that person or of any owner, 
officer, director, or employee of such person;
    (3) Furnishing information with respect to the race, religion, or 
national origin of any U.S. person or of any owner, officer, director, 
or employee of such U.S. person;
    (4) Furnishing information about whether any person has, has had, or 
proposes to have any business relationship (including a relationship by 
way of sale, purchase, legal or commercial representation, shipping or 
other transport, insurance, investment, or supply) with or in the State 
of Israel, with any business concern organized under the laws of the 
State of Israel, with any Israeli national or resident, or with any 
person which is known or believed to be restricted from having any 
business relationship with or in Israel;
    (5) Furnishing information about whether any person is a member of, 
has made contributions to, or is otherwise associated with or involved 
in the activities of any charitable or fraternal organization which 
supports the State of Israel; and,
    (6) Paying, honoring, confirming, or otherwise implementing a letter 
of credit which contains any condition or requirement against doing 
business with the State of Israel.
    (b) Under Section 8(a), the following types of activities are not 
forbidden ``compliance with the boycott,'' and are therefore exempted 
from Section 8(a)'s prohibitions listed in paragraphs (a)(1)-(6) above:
    (1) Complying or agreeing to comply with requirements:
    (i) Prohibiting the import of goods or services from Israel or goods 
produced or services

[[Page 360]]

provided by any business concern organized under the laws of Israel or 
by nationals or residents of Israel; or,
    (ii) Prohibiting the shipment of goods to Israel on a carrier of 
Israel, or by a route other than that prescribed by the boycotting 
country or the recipient of the shipment;
    (2) Complying or agreeing to comply with import and shipping 
document requirements with respect to the country of origin, the name of 
the carrier and route of shipment, the name of the supplier of the 
shipment or the name of the provider of other services, except that no 
information knowingly furnished or conveyed in response to such 
requirements may be stated in negative, blacklisting, or similar 
exclusionary terms, other than with respect to carriers or route of 
shipments as may be permitted by such regulations in order to comply 
with precautionary requirements protecting against war risks and 
confiscation;
    (3) Complying or agreeing to comply in the normal course of business 
with the unilateral and specific selection by a boycotting country, or 
national or resident thereof, of carriers, insurance, suppliers of 
services to be performed within the boycotting country or specific goods 
which, in the normal course of business, are identifiable by source when 
imported into the boycotting country;
    (4) Complying or agreeing to comply with the export requirements of 
the boycotting country relating to shipments or transshipments of 
exports to Israel, to any business concern of or organized under the 
laws of Israel, or to any national or resident of Israel;
    (5) Compliance by an individual or agreement by an individual to 
comply with the immigration or passport requirements of any country with 
respect to such individual or any member of such individual's family or 
with requests for information regarding requirements of employment of 
such individual within the boycotting country; and,
    (6) Compliance by a U.S. person resident in a foreign country or 
agreement by such person to comply with the laws of that country with 
respect to his or her activities exclusively therein, and such 
regulations may contain exceptions for such resident complying with the 
laws or regulations of that foreign country governing imports into such 
country of trademarked, trade named, or similarly specifically 
identifiable products, or components of products for his or her own use, 
including the performance of contractual services within that country, 
as may be defined by such regulations.

                             (End of clause)

[64 FR 43631, Aug. 11, 1999]



652.228-70  Defense Base Act--Covered Contractor Employees.

    As prescribed in 628.309-70(a), insert the following provision:

        Defense Base Act--Covered Contractor Employees (FEB 2015)

    (a) Bidders/offerors shall indicate below whether or not any of the 
following categories of employees will be employed on the resultant 
contract, and, if so, the number of such employees:

----------------------------------------------------------------------------------------------------------------
              Category                               Yes/No                                Number
----------------------------------------------------------------------------------------------------------------
(1) United States citizens or
 residents
(2) Individuals hired in the United
 States, regardless of citizenship
(3) Local nationals or third         .....................................  Local nationals:
 country nationals where contract                                           __________
 performance takes place in a                                               Third country nationals:
 country where there are no local                                           __________
 workers' compensation laws.
(4) Local nationals or third         .....................................  Local nationals:
 country nationals where contract                                           __________
 performance takes place in a                                               Third country nationals:
 country where there are local                                              __________
 workers' compensation laws.
----------------------------------------------------------------------------------------------------------------

    (b) The contracting officer has determined that for performance in 
the country of [contracting officer insert country of performance and 
check the appropriate block below]
    
     Workers' compensation laws exist that will cover local nationals 
and third country nationals.
    
     Workers' compensation laws do not exist that will cover local 
nationals and third country nationals.
    (c) If the bidder/offeror has indicated ``yes'' in block (a)(4) of 
this provision, the bidder/offeror shall not purchase Defense Base Act 
insurance for those employees. However, the bidder/offeror shall assume 
liability toward the employees and their beneficiaries for war-hazard 
injury, death, capture, or detention, in accordance with the clause at 
FAR 52.228-4.

[[Page 361]]

                           (End of provision)

[71 FR 34841, June 16, 2006; 71 FR 41177, July 20, 2006; 80 FR 6932, 
Feb. 9, 2015]



652.228-71  Worker's Compensation Insurance (Defense Base Act)--Services.

    As prescribed in 628.309-70(b), insert the following clause:

 Workers' Compensation Insurance (Defense Base Act)--Services (FEB 2015)

    (a) This clause supplements FAR 52.228-3. For the purposes of this 
clause, ``covered contractor employees'' includes the following 
individuals:
    (1) United States citizens or residents;
    (2) Individuals hired in the United States or its possessions, 
regardless of citizenship; and
    (3) Local nationals and third country nationals where contract 
performance takes place in a country where there are no local workers' 
compensation laws.
    (b) The Contractor shall procure Defense Base Act (DBA) insurance 
directly from a Department of Labor (DOL) approved insurance provider. 
Approved providers can be found at the DOL Web site at http://
www.dol.gov/owcp/dlhwc/lscarrier.htm.''
    (c)(1) Section 16 of the State Department Basic Authorities Act (22 
U.S.C. 2680a), as amended, provides that the Defense Base Act shall not 
apply with respect to such contracts as the Secretary of State 
determines are contracts with persons employed to perform work for the 
Department of State on an intermittent basis for not more than 90 days 
in a calendar year. ``Persons'' includes individuals hired by companies 
under contract with the Department. The Procurement Executive has the 
authority to issue the waivers for Contractor employees who work on an 
intermittent or short-term basis.
    (2) The Contractor shall submit waiver requests to the contracting 
officer. The request shall contain the following information:
    (i) Contract number;
    (ii) Name of Contractor;
    (iii) Brief description of the services to be provided under the 
contract and country of performance;
    (iv) Name and position title of individual(s);
    (v) Nationality of individual(s) (must be U.S. citizen or U.S. 
resident);
    (vi) Dates (or timeframe) of performance at the overseas location; 
and,
    (vii) Evidence of alternative workers' compensation coverage for 
these employees (e.g., evidence that the State workers' compensation 
program covers workers on short-term foreign assignments).
    (3) The contracting officer shall provide to the Contractor the 
original of the approved or disapproved document and maintain a copy in 
the contract file.

                             (End of clause)

[71 FR 34841, June 16, 2006; 71 FR 41177, July 20, 2006; 80 FR 6924, 
Feb. 9, 2015]



652.229-70  Excise Tax Exemption Statement for Contractors Within
the United States.

    As prescribed in 629.401-70, insert the following clause:

Excise Tax Exemption Statement for Contractors Within the United States 
                               (JUL 1988)

    This is to certify that the item(s) covered by this contract is/are 
for export solely for the use of the U.S. Foreign Service Post 
identified in the contract schedule.
    The Contractor shall use a photocopy of this contract as evidence of 
intent to export. Final proof of exportation may be obtained from the 
agent handling the shipment. Such proof shall be accepted in lieu of 
payment of excise tax.

                             (End of clause)

[53 FR 26177, July 11, 1988, as amended at 64 FR 43632, Aug. 11, 1999]



652.229-71  Personal Property Disposition at Posts Abroad.

    As prescribed in 629.402-1-70, insert the following clause:

        Personal Property Disposition at Posts Abroad (AUG 1999)

    Regulations at 22 CFR Part 136 require that U.S. Government 
employees and their families do not profit personally from sales or 
other transactions with persons who are not themselves entitled to 
exemption from import restrictions, duties, or taxes. Should the 
contractor experience importation or tax privileges in a foreign country 
because of its contractual relationship to the United States Government, 
the contractor shall observe the requirements of 22 CFR part 136 and all 
policies, rules, and procedures issued by the chief of mission in that 
foreign country.

                             (End of clause)

[64 FR 43633, Aug. 11, 1999]

[[Page 362]]



652.232-70  Payment Schedule and Invoice Submission (Fixed-Price).

    As prescribed in 632.908(a), the contracting officer may insert a 
clause substantially the same as follows:

    Payment Schedule and Invoice Submission (Fixed-Price) (AUG 1999)

    (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 Section B of this contract.
[Use paragraph (b) only if partial payments apply. Otherwise, paragraph 
(a) above assumes the contractor will be paid in full amount upon 
completion of all contractural requirements.]
    (b) Payment Schedule. Payments will be made in accordance with the 
following partial payment schedule:

------------------------------------------------------------------------
                                  Specific      Delivery       Payment
     Partial payment No.        deliverable       date         amount
------------------------------------------------------------------------
1                              .............  ............  ............
2                              .............  ............  ............
3                              .............  ............  ............
------------------------------------------------------------------------

[Continue as necessary]

    (c) Invoice Submission. Invoices shall be submitted in an original 
and [contracting officer insert appropriate number of copies] to the 
office identified in Block 10 of the SF-26, Block 23 of the SF-33, or 
Block 18b of the SF-1449. To constitute a proper invoice, the invoice 
must include all items per FAR 52.232-25, ``Prompt Payment''.
    (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:

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

                             (End of clause)

[59 FR 66771, Dec. 28, 1994, as amended at 64 FR 43633, Aug. 11, 1999]



652.232-71  Voucher Submission (Cost-Reimbursement).

    As prescribed in 632.908(b), the contracting officer may insert a 
clause substantially the same as follows:

           Voucher Submission (Cost-Reimbursement) (AUG 1999)

    (a) General. The contractor shall submit, on a monthly basis 
[contracting officer may substitute a different time frame, if 
appropriate], an original and [contracting officer insert appropriate 
number] 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 office identified in Block 10 of the 
SF-26, Block 23 of the SF-33, or Block 18b of the SF-1449.
    (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:

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

                             (End of clause)

[59 FR 66772, Dec. 28, 1994, as amended at 64 FR 43633, Aug. 11, 1999]



652.232-72  Limitation of Funds.

    As prescribed in 632.706-70, insert the following clause:

                     Limitation of Funds (AUG 1999)

    (a) Of the total price in Section B (or the ``Prices'' section), 
only the amount stated on the contract award document or subsequent 
modifications is now available for payment and obligated under this 
contract. It is anticipated that from time to time, additional funds 
will be obligated under the contract until the total price of the 
contract is obligated.
    (b) The Government is not obligated to pay or reimburse the 
contractor more than the amount obligated pursuant to this clause. The 
contractor agrees to perform the contract up to the point at which the 
total amount paid and payable by the Government (including amounts 
payable for subcontracts and settlement costs if this contract is 
terminated for convenience) approximates but does not exceed the total 
amount obligated.
    (c)(1) It is contemplated that funds now obligated under this 
contract will cover the work to be performed until [contracting officer 
insert date].
    (2) If the contractor considers the funds obligated under this 
contract to be insufficient to cover the work to be performed until that 
date, or another date agreed to by the parties, the contractor shall 
notify the contracting officer in writing and indicate the date on which 
it expects expended funds to approximate 75 percent of the total amount 
obligated. The notice shall state the estimated amount of additional 
funds required to continue performance through the date

[[Page 363]]

specified in paragraph (c)(1) of this clause or another date agreed to 
by the parties.
    (3) If, after notification is provided pursuant to paragraph (c)(2) 
of this clause, additional funds are not obligated, or an earlier date 
than the date in paragraph (c)(1) of this clause is not agreed to, the 
contractor shall not be obligated to continue performance under this 
contract (including actions under the termination clause of this 
contract) beyond the funds obligated for contract performance.
    (d) When additional funds are obligated from time to time for 
continued performance of this contract, the contract shall be modified 
to increase the funds obligated and to indicate the period of 
performance for which funds are applicable. The contractor may notify 
the contracting officer as provided in paragraph (c)(2) of this clause 
regarding any additional funds obligated.
    (e) If the contractor incurs additional costs or is delayed in the 
performance of work under this contract, solely by reason of the 
Government's failure to obligate additional funds in amounts sufficient 
for the timely performance of this contract, an equitable adjustment may 
be made to the price, or time of delivery, or both.
    (f) This clause shall become inoperative upon obligation of funds 
sufficient to cover the full price stated in the contract, except for 
rights and obligations then existing under this clause.
    (g) Nothing in this clause shall affect the Government's right to 
terminate the contract for convenience or default.

                             (End of clause)

[64 FR 43633, Aug. 11, 1999, as amended at 81 FR 24707, Apr. 27, 2016]



652.236-70  Accident Prevention.

    As prescribed in 636.513, insert the following clause:

                     Accident Prevention (APR 2004)

    (a) General. The contractor shall provide and maintain work 
environments and procedures which will safeguard the public and 
Government personnel, property, materials, supplies, and equipment 
exposed to contractor operations and activities; avoid interruptions of 
Government operations and delays in project completion dates; and, 
control costs in the performance of this contract. For these purposes, 
the contractor shall:
    (1) Provide appropriate safety barricades, signs and signal lights;
    (2) Comply with the standards issued by any local government 
authority having jurisdiction over occupational health and safety 
issues; and,
    (3) Ensure that any additional measures the contracting officer 
determines to be reasonably necessary for this purpose are taken.
    (4) For overseas construction projects, the contracting officer 
shall specify in writing additional requirements regarding safety if the 
work involves:
    (i) Scaffolding;
    (ii) Work at heights above two (2) meters;
    (iii) Trenching or other excavation greater than one (1) meter in 
depth;
    (iv) Earth moving equipment;
    (v) Temporary wiring, use of portable electric tools, or other 
recognized electrical hazards. Temporary wiring and portable electric 
tools require the use of a ground fault circuit interrupter (GFCI) in 
the affected circuits; other electrical hazards may also require the use 
of a GFCI;
    (vi) Work in confined spaces (limited exits, potential for oxygen 
less than 19.5 percent or combustible atmosphere, potential for solid or 
liquid engulfment, or other hazards considered to be immediately 
dangerous to life or health such as water tanks, transformer vaults, 
sewers, cisterns, etc.);
    (vii) Hazardous materials--a material with a physical or health 
hazard including but not limited to, flammable, explosive, corrosive, 
toxic, reactive or unstable, or any operations which creates any kind of 
contamination inside an occupied building such as dust from demolition 
activities, paints, solvents, etc.; or
    (viii) Hazardous noise levels.
    (b) Records. The contractor shall maintain an accurate record of 
exposure data on all accidents incident to work performed under this 
contract resulting in death, traumatic injury, occupational disease, or 
damage to or theft of property, materials, supplies, or equipment. The 
contractor shall report this data in the manner prescribed by the 
contracting officer.
    (c) Subcontracts. The contractor shall be responsible for its 
subcontractors' compliance with this clause.
    (d) Written program. Before commencing work, the contractor shall:
    (1) Submit a written plan to the contracting officer for 
implementing this clause. The plan shall include specific management or 
technical procedures for effectively controlling hazards associated with 
the project; and,
    (2) Meet with the contracting officer to discuss and develop a 
mutual understanding relative to administration of the overall safety 
program.
    (e) Notification. The contracting officer shall notify the 
contractor of any non-compliance with these requirements and the 
corrective actions required. This notice, when delivered to the 
contractor or the contractor's representative on site, shall be deemed 
sufficient notice of the non-compliance and corrective action required. 
After receiving

[[Page 364]]

the notice, the contractor shall immediately take corrective action. If 
the contractor fails or refuses to promptly take corrective action, the 
contracting officer may issue an order suspending all or part of the 
work until satisfactory corrective action has been taken. The contractor 
shall not be entitled to any equitable adjustment of the contract price 
or extension of the performance schedule on any suspension of work order 
issued under this clause.

                             (End of clause)

[64 FR 43633, Aug. 11, 1999, as amended at 69 FR 19339, Apr. 13, 2004]



652.236-71  Foreign Service Buildings Act, as Amended.

    As prescribed in 636.570(a), insert the following provision:

          Foreign Service Buildings Act, as Amended (FEB 2015)

    (a) This solicitation is subject to Section 11 of the Foreign 
Service Buildings Act of 1926, as amended (22 U.S.C. 302). This statute 
limits competition under this solicitation to:
    (1) American-owned firms, as described in paragraph (b) of this 
provision; and,
    (2) Firms from countries that permit or agree to permit 
substantially equal access to American firms for comparable diplomatic 
and consular building projects.
    (b) To qualify as an American-owned firm for purposes of this 
solicitation, the bidder/offeror must demonstrate evidence of:
    (1) Performance of similar construction work in the United States or 
at a United States diplomatic or consular establishment abroad; and
    (2) Either--
    (i) Ownership in excess of 50% by U.S. citizens or permanent 
residents; or
    (ii) Incorporation in the United States for more than three (3) 
years and employment of U.S. citizens or permanent residents in more 
than half of the company's permanent full-time professional and 
managerial positions in the United States.
    (c) For purposes of determining competitive status, offers submitted 
by American-owned firms shall be reduced by ten (10) percent, provided 
that two responsible bidders/offerors submit a bid/offer.
    (d) Evidence of qualification. (1) Performance of similar 
construction work in the United States or at a United States diplomatic 
or consular establishment abroad. The bidder/offeror must describe below 
one or more similar projects completed in the United States or at a 
United States diplomatic or consular establishment abroad. For each 
project, provide the following information:

 Location:______________________________________________________________
 (City and State/Country)_______________________________________________
 Complexity:____________________________________________________________
________________________________________________________________________
(Office building, etc.)
 Type of construction:__________________________________________________
 Value of project:______________________________________________________
 Location:______________________________________________________________
 (City and State/Country)_______________________________________________
 Complexity:____________________________________________________________
________________________________________________________________________
(Office building, etc.)
 Type of construction:__________________________________________________
 Value of project:______________________________________________________
 Location:______________________________________________________________
 (City and State/Country)_______________________________________________
 Complexity:____________________________________________________________
________________________________________________________________________
(Office building, etc.)
 Type of construction:__________________________________________________
 Value of project:______________________________________________________
    If the bidder/offeror's participation was as a partner or co-
venturer, indicate the percentage of the project performed by the 
bidder/offeror: ___ %
    (2) Corporate location or ownership.
    (i) The bidder/offeror certifies that it 
     is 
     is not owned in excess of fifty (50) percent by United States 
citizens or permanent residents.
    (ii) The bidder/offeror certifies that it 
     has 
     has not been incorporated in the United States for more than three 
years and that it 
 employs 
 does not employ United States citizens or permanent residents in more 
than half of its permanent full-time professional and managerial 
positions in the United States.
    (e) By signing this bid/offer, the bidder/offeror certifies to the 
best of its knowledge, all of the representations and certifications 
provided in this provision are accurate, current and complete.

                           (End of provision)

[69 FR 19339, Apr. 13, 2004, as amended at 80 FR 6924, Feb. 9, 2015]



652.236-72  Statement of Qualifications for the Omnibus Diplomatic
Security and Antiterrorism Act.

    As prescribed in 636.570(b), insert the following provision:

  Statement of Qualifications for the Omnibus Diplomatic Security and 
                      Antiterrorism Act (FEB 2015)

    (a) This solicitation is subject to Section 402 of the Omnibus 
Diplomatic Security and Antiterrorism Act of 1986 (P.L. 99-399; 22 
U.S.C. 4852). The Act limits certain construction projects abroad to 
United States persons or United States joint venture persons. This 
Statement of Qualifications shall be used to determine if a bidder/
offeror meets

[[Page 365]]

the definition of a ``United States person'' or a ``United States joint 
venture person'' .
    (b) Definition. As used in this provision--
    U.S. person means a company, partnership, or joint venture that the 
Government determines, after consideration of all available information, 
including but not limited to that provided by the bidder/offeror in 
response to this solicitation, to be qualified pursuant to Section 402.
    (c) Representation. The bidder/offeror represents as part of its 
bid/offer that it 
 does 
 does not meet the qualifications as a U.S. person as set forth in 
Section 402 of the Act.
    [Complete a Statement of Qualifications for Purposes of Determining 
Status as a U.S. Person if the offeror represents that it is eligible. 
See paragraph (d) of this provision.]
    Warning: Any material misrepresentation made in the Statement of 
Qualifications may be the basis for disqualification of a bidder/offeror 
and reference for consideration of suspension or debarment or for 
prosecution under Federal law (cf. 18 U.S.C. 1001). Bidder/offeror 
qualifications will be determined primarily on the basis of information 
submitted in the Statement of Qualifications, including attachments 
thereto, but the Government may, at its discretion, rely on information 
contained elsewhere in the bidder's/offeror's bid/proposal or obtained 
from other sources.
    (d) Statement of Qualifications for Purposes of Determining Status 
as a U.S. Person (22 U.S.C. 4852). A bidder/offeror that represents that 
it is a U.S. person must provide the following information.
    Statement of Qualifications for Purposes of Determining Status as a 
U.S. Person (22 U.S.C. 4852)
Name and address of U.S. person organization providing this information:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

    Introduction. Section 402 of the Omnibus Diplomatic Security and 
Antiterrorism Act (Public Law 99-399) provides that a ``United States 
person'' or a ``qualified United States joint venture'' must meet 
certain requirements, listed in sections 402(c)(2) and (3) of the Act, 
to be eligible to compete. To assist business entities to determine 
whether they qualify as a U.S. person or U.S. joint venture person, 
guidance is hereby provided. For ease of reference, the statutory 
language is quoted immediately before the definitions that apply to it. 
Space for the required information is provided immediately following 
each definition.

    Note: The Statement of Qualifications shall provide information 
correctly applicable to the U.S. person whose qualifications are being 
certified, and shall not include information pertaining to corporate 
affiliates or subsidiaries. Organizations that wish to use the 
experience or financial resources of any other legally dependent 
organization or individual, including parent companies, subsidiaries, or 
other related organizations, must do so by way of a joint venture. A 
prospective bidder/offeror may be an individual organization or firm, a 
formal joint venture in which the co-venturers have reduced their 
arrangement to writing, or a de facto joint venture where no formal 
agreement has been reached, but the offering entity relies upon the 
experience of a related U.S. firm that guarantees performance. To be 
considered a ``qualified United States joint venture person,'' the joint 
venture must have at least one firm or organization that itself meets 
all the requirements of a U.S. person listed in Section 402. By signing 
this bid/proposal, the U.S. person co-venturer agrees to be individually 
responsible for performance of the contract, notwithstanding the terms 
of any joint venture agreement.

    1. Section 402(c)(2)(A): ``The term `United States person' means a 
person which--(A) is incorporated or legally organized under the laws of 
the United States, including the District of Columbia, and local laws.''
    Definitions for purposes of Section 402 determinations of 
eligibility--
    Incorporated means the successful de jure incorporation of a 
business organization pursuant to the laws of any United States 
jurisdiction or component thereof.
    Legally organized means the legally recognized existence of an 
organization other than a de jure corporation (e.g., a partnership) 
under the laws of any United States jurisdiction or component thereof. 
Only organizations that have a legal status, including the right to 
bring suit, to sign contracts, and to hold property under the law of the 
jurisdiction where they are doing business will qualify as legally 
organized. A natural person who is a United States citizen acting in his 
or her entrepreneurial capacity will be deemed to be a ``person legally 
organized'' within the scope of this definition, provided that the 
prospective bidder/offeror holds all required licenses to do business in 
the jurisdiction where he or she is located.
    United States means any jurisdiction that is one of the fifty 
States, the District of Columbia, a United States territory, a United 
States possession, or the Commonwealths of Puerto Rico and the Northern 
Mariana Islands.
    Question 1. The organization seeking eligibility under Section 402 
is incorporated or is legally organized under the laws of what 
jurisdiction?
________________________________________________________________________

    2. Section 402(c)(2)(B): ``The term `United States person' means a 
person which--(B) has its principal place of business in the United 
States.''
    Definitions for purposes of Section 402 determinations of 
eligibility--

[[Page 366]]

    Principal place of business means the main location of the 
prospective bidder/offeror. For purposes of this section, a prospective 
bidder/offeror shall identify only one principal place of business, and 
such location shall include at least the offices of the chief operating 
officer and headquarters staff. The named location must be a United 
States jurisdiction from which a tax return has been filed or will be 
filed during the calendar year in which the prospective bidder/offeror 
submits this bid/offer.
    United States means any jurisdiction that is one of the fifty 
States, the District of Columbia, a United States territory, a United 
States possession, or the Commonwealths of Puerto Rico and the Northern 
Mariana Islands.
    Question 2(a). The organization seeking eligibility has its 
principal place of business in what city and state?
________________________________________________________________________

    Question 2(b). What kind of tax return was or will be filed, and in 
what jurisdiction, during the current calendar year?
   (i) Jurisdiction:____________________________________________________
(e.g., federal, state, city)
    (ii) Type of return (e.g., income tax, franchise tax, etc.). Include 
all that apply:
________________________________________________________________________
________________________________________________________________________

    3. Section 402(c)(2)(C): ``The term `United States person' means a 
person which has been incorporated or legally organized in the United 
States--
    (i) for more than 5 (five) years before the issuance date of the 
invitation for bids or request for proposals with respect to a 
construction project under subsection (a)(1); and,
    (ii) for more than 2 (two) years before the issuance date of the 
invitation for bids or request for proposals with respect to a 
construction or design project abroad that involves technical security 
under subsection (a)(2).''
    Definitions for purposes of Section 402 determinations of 
eligibility--
    Has been incorporated or legally organized means that the 
organization can show continuity as an ongoing business. Organizations 
that have changed only their names meet the continuity requirement of 
this subsection. Organizations that have been bought, sold, merged, or 
otherwise substantially altered or enlarged their principal business 
activities will have the burden of proving that there have been ongoing 
operations by the same business entity for the required period of time. 
If the successor entity has acquired all of the assets and liabilities 
of the predecessor business and the predecessor business has no further 
existence, the successor may claim the incorporation date of the 
predecessor. In any other circumstance, the prospective bidder/offeror 
must show that the law of the jurisdiction in which it operates regards 
the prospective bidder/offeror as the complete successor in interest of 
the predecessor business for purpose of contractual obligations.
    Issuance date means the date in Block 3 of the Standard Form 1442 
accompanying this solicitation.
    Years means calendar years measured from day of the month to day of 
the month. For example, January 1, 2002 through December 31, 2002 is one 
calendar year, as is July 1, 2002 through July 1, 2003.
    Question 3:
    (i) On what date was the organization seeking eligibility 
incorporated or legally organized? ________
    (ii) If this date is less than the required number of years before 
the issuance date, on the basis of what documentation does the 
organization seeking eligibility claim that it has been in business for 
the requisite period of time?________________ (Identify, and forward 
copies as an Attachment to this Statement. This material may include 
such items as certificates of incorporation, partnership agreements, 
resolutions of boards of directors, etc.).
    4. Section 402(c)(2)(D): ``The term `United States person' means a 
person which has performed within the United States or at a United 
States diplomatic or consular establishment abroad administrative and 
technical, professional, or construction services similar in complexity, 
type of construction, and value to the contract being bid.''
    Definitions for purposes of Section 402 determination of 
eligibility--
    Administrative and technical, professional, or construction services 
means the kind of work in which the prospective bidder/offeror is 
interested. If the proposed contract is for construction management 
services, the prospective bidder/offeror will be expected to demonstrate 
construction management expertise. In general, ``administrative'' means 
the capacity or ability to manage; ``technical'' means the specific 
skills peculiar to the type of work required; ``professional'' means 
expert services resulting from advanced training in the type of work 
required; and ``construction'' experience if it has not directly 
performed all of the actual construction activities. Thus, an entity 
whose only construction work experience was performed by its legally 
distinct subsidiary or parent will not be considered to have 
construction experience.
    Complexity means the physical size and technical size and demands of 
the project. ``Performed'' means projects that have been fully completed 
by the prospective bidder/offeror and accepted by the owner or other 
party to the transaction. Projects still in progress have not yet been 
performed for purposes of this definition.

[[Page 367]]

    Type of construction means the overall nature of the facilities to 
be built, including the kinds of materials to be used. Thus, if the 
contract will require the construction of a multi-story office building, 
the prospective bidder/offeror will be expected to demonstrate 
experience with facilities of this type.
    Value means the total contract price of the project, not to the 
profit or loss to the bidder/offeror.
    Within the United States means a United States jurisdiction that is 
the place where the subject matter of the contract or other arrangement 
was in fact completed. It does not mean the place where the contract or 
other arrangement was negotiated or signed. The term ``United States'' 
means any jurisdiction that is one of the 50 states, the District of 
Columbia, a United States territory, a United States possession, or the 
Commonwealth of Puerto Rico and the Northern Mariana Islands.
    Question 4: List on this page, and an attachment (if necessary), one 
or more similar projects completed by the prospective bidder/offeror. 
For each project, provide the following information:
________________________________________________________________________
Location:
(City and State, or Country)
________________________________________________________________________
Type of service:
(administrative, etc.)
________________________________________________________________________
Complexity:
(office building, etc.)
________________________________________________________________________
Type of construction:
________________________________________________________________________
Value of project:

    If the prospective bidder/offeror's participation was as a partner 
or co-venturer, indicate the percentage of the project performed by the 
prospective offeror: ____ %
    5. Section 402(c)(2)(E): ``The term `United States person' means a 
person which--with respect to a construction project under subsection 
(a)(1)--has achieved a total business volume equal to or greater than 
the value of the project being bid in 3 years of the 5-year period 
before the date specified in subparagraph (C)(i).''
    Definitions of purposes of Section 402 determination of 
eligibility--
    3 years of the 5-year period before the date specified in 
subparagraph (C)(i) means the three to five calendar year period 
immediately preceding the issuance date of this solicitation.
    Total business volume means the U.S. dollar value of the gross 
income or receipts reported by the prospective bidder/offeror on its 
annual federal income tax returns.
    Years means the business year of the prospective bidder/offeror, as 
reflected on its annual federal income tax returns.
    Question 5: Please complete the information below for at least three 
of the five listed years.
    The gross receipts for the business year: (list year and amount).
    The gross receipts for the business year: (list year and amount).
    The gross receipts for the business year: (list year and amount).
    The gross receipts for the business year: (list year and amount).
    The gross receipts for the business year: (list year and amount).
    6. Section 402(c)(2)(F): ``The term `United States person' means a 
person which--(i) employs United States citizens in at least 80 percent 
of its principal management positions in the United States; (ii) employs 
United States citizens in more than half of its permanent, full-time 
positions in the United States; and (iii) will employ United States 
citizens in at least 80 percent of the supervisory positions on the 
foreign buildings office project site.''
    Definitions for purposes of Section 402 determinations of 
eligibility--
    In the United States refers to those positions that the prospective 
bidder/offeror maintains within all jurisdictions which are one of the 
50 states, the District of Columbia, a United States territory, a United 
States possession, or the Commonwealths of Puerto Rico and the Northern 
Mariana Islands.
    Permanent, full-time positions means positions with the prospective 
bidder/offeror that are intended to be indefinite, as opposed to 
limited, seasonal, or project-duration periods. The term `full-time' 
refers to positions in which the occupants are expected to and 
ordinarily work 40 hours a week. The term `permanent, full-time 
positions' covers the portion of the prospective bidder's/offeror's 
workforce that continues to be employed without regard to the 
fluctuating requirements of production or projects.
    Principal management positions refers to chief operating officer and 
those management officials reporting directly to him or her. In the case 
of a partnership, the term refers to every general partner. In the case 
of a corporation, the term refers to those officers of the corporation 
who are active in running its day-to-day operations. Members of 
corporation boards of directors who do not have operational 
responsibilities do not occupy ``principal management positions'' simply 
by virtue of their service on the board. In all cases, the term 
``principal management positions'' also includes the position or 
positions held by the individual or individuals who will have primary 
corporate management oversight responsibility for this contract if the 
prospective bidder/offeror is awarded the contract. Each prospective 
bidder/offeror is responsible for listing all of its

[[Page 368]]

principal management positions and identifying their current occupants 
by name and citizenship.
    Supervisory positions means all positions with significant authority 
to direct the work of others as well as those for which access to 
classified or controlled documents is required. Such positions will be 
identified in each contract.
    United States citizen means natural persons with United States 
citizenship by virtue either of birth or of naturalization.
    Question 6(a): The bidder/offeror has the following staff:
    (i) Principal management positions in the United States:

                        Chief Operating Officer:

________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
    (ii) For each individual reporting directly to the above-named Chief 
Operating Officer, list position, name, and citizenship:
________________________________________________________________________
Position:
________________________________________________________________________
Name:
________________________________________________________________________
Citizenship:
    (iii) Individual(s) expected to have primary management oversight 
responsibility for contract if it is awarded:
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
    Question 6(b): Number of permanent, full-time positions in the 
United States: ____
    Question 6(c): Number of United States citizens currently employed 
in permanent, full-time positions in the United States: ____
    Question 6(d): Certification of intent to employ U.S. citizens in a 
minimum of 80 percent of the supervisory positions identified by the 
Government on this project:
 I so certify:__________________________________________________________
(signature)
________________________________________________________________________
(name typed or printed)
________________________________________________________________________
(position)
________________________________________________________________________
(date)
    7. Section 402(c)(2)(G): ``The term `United States person' means a 
person which has the existing technical and financial resources in the 
United States to perform this contract.''
    Definitions for purposes of Section 402 determinations of 
eligibility--
    Existing technical and financial resources means the capability of 
the prospective bidder/offeror to mobilize adequate staffing and 
monetary arrangements from within the United States sufficient to 
perform the contract. Adequate staffing levels may be demonstrated by 
presenting the resumes of current United States citizens and resident 
aliens with skills and expertise necessary for the work in which the 
prospective bidder/offeror is interested or some other indication of 
available United States citizen or permanent legal resident human 
resources. Demonstration of adequate financial resources must be issued 
by entities that are subject to the jurisdiction of United States courts 
and have agents located within the United States for acceptance of 
service of process.
    Question 7: Submit, as an Attachment to this Statement, materials 
demonstrating existing technical and financial resources in the United 
States.
    8. Section 402(c)(3): ``The term `qualified United States joint 
venture person' means a joint venture in which a United States person or 
persons owns at least 51 percent of the assets of the joint venture.''
    Definitions for purposes of Section 402 determinations of 
eligibility--
    Assets means tangible and intangible things of value conveyed or 
made available to the joint venture by the co-venturers.
    Joint venture means a formal or de facto arrangement by and through 
which two or more persons or entities associate for the purpose of 
carrying out the prospective contract. Prospective bidders/offerors are 
advised that a joint venture may not be acceptable to projects requiring 
a Department of Defense facility security clearance because each co-
venturer may post particular problems in obtaining security clearances. 
To be acceptable, all members of a joint venture must be individually 
and severally liable for the full performance of and resolution of any 
and all matters arising out of the contract, notwithstanding any 
provision of the joint venture agreement of law of the jurisdiction 
under which the joint venture was created.
    Question 8(a): The bidder/offeror is is not a joint venture.
    Question 8(b): If the bidder/offeror is a joint venture, the U.S. 
person participant is:
________________________________________________________________________
(name)
________________________________________________________________________
(address)
    Question 8(c): If the bidder/offeror is a joint venture, the names 
and countries of citizenship for all co-venturers are as follows:
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)

[[Page 369]]

    Question 8(d): If the bidder/offeror is a joint venture, the U.S. 
person will own at least 51 percent of the assets of the joint venture.
 I so certify:__________________________________________________________
(signature)
________________________________________________________________________
(name typed printed)
________________________________________________________________________
(position)
________________________________________________________________________
(title)
    (e) Signature: By signing this document, the offeror indicates that 
to the best of his or her knowledge, all of the representations and 
certifications provided in response to the questions contained in this 
Statement of Qualifications are accurate, current, and complete and that 
the offeror is aware of the penalty prescribed in 18 U.S.C. 1001 for 
making false statements.

                           (End of provision)

[69 FR 19339, Apr. 13, 2004, as amended at 80 FR 6924, Feb. 9, 2015]



652.237-70  Compensatory time off.

    As prescribed in 637.110(a), insert the following clause:

                    Compensatory Time Off (DEC 1994)

    (a) Compensatory time off means time from work during the personal 
service contract employee's basic work week in exchange for performing 
an equal amount of irregular of occasional overtime work which is 
officially ordered or approved.
    (b) At the discretion of the Contracting Officer's Representative 
(COR), the contractor may earn compensatory time off in accordance with 
3 FAM Section 232.6--Compensatory Time Off. Compensation time off 
remaining to the credit of a personal services contract employee at the 
end of a 16-week period and/or at the end of the contract period shall 
be forfeited.
    (c) Compensatory time may not be converted to overtime.

                             (End of clause)

[59 FR 66772, Dec. 28, 1994]



652.237-71  [Reserved]



652.237-72  Observance of Legal Holidays and Administrative Leave.

    As prescribed in 637.110(b), insert the following clause:

    Observance of Legal Holidays and Administrative Leave (FEB 2015)

    (a) The Department of State 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 New Year's Day, Independence Day, Veterans Day or Christmas 
Day falls on a Sunday, the following Monday is observed; when it falls 
on Saturday, the preceding Friday is observed. Observance 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 the Department of State 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 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

[[Page 370]]

charged indirectly in accordance with the contractor's accounting 
policy.

                             (End of clause)

[59 FR 66772, Dec. 28, 1994, as amended at 64 FR 43634, Aug. 11, 1999; 
69 FR 19343, Apr. 13, 2004; 76 FR 20251, Apr. 12, 2011; 80 FR 6924, Feb. 
9, 2015]



652.237-73  Statement of Qualifications for Preference as a U.S. Person.

    As prescribed in 637.110(c), insert the following provision:

 Statement of Qualifications for Preference as a U.S. Person (APR 2004)

    (a) This solicitation is subject to Section 136 of the Foreign 
Relations Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 
4864). The Act encourages the participation of United States persons and 
qualified United States joint venture persons in the provision of local 
guard services overseas, and provides for a preference for eligible 
offers.
    (b) Definitions. As used in this provision--
    Eligible offer means an offer that (1) is otherwise responsive to 
the solicitation; and (2) contains a fully prepared Statement of 
Qualifications (see paragraph (d) of this provision), which upon review 
is determined by the Government to meet the requirements of Section 136 
for assignment of preference as a U.S. person.
    Preference means subtraction by the Government of ten percent (10%) 
from the total evaluated price of an offer.
    U.S. person means a company, partnership, or joint venture that the 
Government determines, after consideration of all available information, 
including but not limited to that provided by the offeror in response to 
the solicitation, to be qualified for assignment of preference pursuant 
to Section 136.
    (c) Representation. The offeror represents as part of its offer that 
it is, is not eligible for preference as a U.S. person. [Complete a 
Statement of Qualifications for Purposes of Obtaining Preference as a 
U.S. Person if the offeror represents that it is eligible. See paragraph 
(d) of this provision.]
    Warning: Any material misrepresentation made in the Statement of 
Qualifications may be the basis for disqualification of an offeror and 
reference for consideration of suspension or debarment or for 
prosecution under Federal law (cf. 18 U.S.C. 1001). The Government will 
determine offeror qualifications primarily on the basis of information 
submitted in the Statement of Qualifications, including Attachments 
thereto, but the Government may, at its discretion, rely on information 
contained elsewhere in the offeror's proposal or obtained from other 
sources.
    (d) Statement of Qualifications for Purposes of Obtaining Preference 
as a U.S. Person (22 U.S.C. 4864). An offeror that represents that it is 
eligible for preference as a U.S. person must provide the following 
information. This Statement of Qualifications must be a complete and 
certified document, and submitted as a separate Volume 5, with all 
necessary attachments, as defined in Section L of this solicitation.

 Statement of Qualifications for Purposes of Obtaining Preference as a 
                      U.S. Person (22 U.S.C. 4864)

Name and address of U.S. person or organization providing this 
information:
________________________________________________________________________
________________________________________________________________________

    Introduction. Section 136 of the Foreign Relations Authorization Act 
for Fiscal Years 1990 and 1991, Public Law 101-246 (22 U.S.C. 4864), as 
amended, provides that a ``United States person'' or a ``qualified 
United States joint venture'' must meet certain requirements, listed in 
the Act, to be eligible for the statutory preference. To assist business 
entities to determine whether they qualify as a U.S. person or U.S. 
joint venture person entitled to preference under Section 136, guidance 
is hereby provided. Only those prospective offerors submitting a 
properly completed and certified Volume 5 with their initial proposals 
will be considered in the determination of eligibility for assignment of 
preference as a U.S. person or U.S. joint venture person. For ease of 
reference, statutory language is quoted immediately before the 
definitions that apply to it. Space for the required information is 
provided immediately following each definition.

    Note: The Statement of Qualifications shall provide information 
correctly applicable to the U.S. person whose qualifications are being 
certified, and shall not include information pertaining to corporate 
affiliates or subsidiaries. Organizations that wish to use the 
experience or financial resources of another organization or individual, 
including parent companies, subsidiaries, or local, national or offshore 
organizations, must do so by way of a joint venture. The contract 
resulting from this solicitation shall not allow subcontracting. A 
prospective offeror may be a sole proprietorship, a formal joint venture 
in which the co-venturers have reduced their arrangement to writing, or 
a de facto joint venture with no written agreement. To be considered a 
``qualified joint venture person,'' the joint venture must have at least 
one firm or organization that itself meets all the requirements of a 
U.S. joint venture person listed in Section 136. By signing this 
proposal, the U.S. person co-venturer agrees to be individually 
responsible for performance of the contract, notwithstanding the terms 
of any joint venture agreement.


[[Page 371]]


    1. Section 136(d)(1): ``The term `United States person' means a 
person which--(A) is incorporated or legally organized under the laws of 
the United States, including the laws of any State, locality, or the 
District of Columbia.''
    Definitions for purposes of Section 136 determinations of 
eligibility--
    Incorporated means the state of legal recognition as an artificial 
person that may be afforded to a business entity pursuant to the laws of 
any United States jurisdiction or component thereof.
    Legally organized means the state of legal recognition that may be 
afforded to a business entity that is other than a corporation pursuant 
to the laws of any United States jurisdiction or component thereof. This 
is the least form of legal recognition that will qualify an offeror for 
this preference. Only those prospective offerors that have legal status, 
including the right to bring suit, to sign contracts, and to hold 
property under the law of the jurisdiction under which they are doing 
business will qualify as legally organized. A natural person who is a 
United States citizen acting in his or her entrepreneurial capacity will 
be deemed to be a ``person legally organized'' within the scope of this 
definition, provided that the prospective offeror holds all required 
licenses to do business in the jurisdiction where he or she is located.
    United States means any jurisdiction that is one of the fifty 
States, the District of Columbia, a United States territory, a United 
States possession, or the Commonwealth of Puerto Rico and the Northern 
Mariana Islands.
    Question 1. The organization seeking eligibility under Section 136 
is incorporated or is legally organized under the laws of what 
jurisdiction?
________________________________________________________________________

    2. Section 136(d)(1): ``The term `United States person' means a 
person that--(B) has its principal place of business in the United 
States.''
    Definitions for purposes of Section 136 determinations of 
eligibility--
    Principal place of business means the geographic location of the 
main office or seat of management of the prospective offeror. For 
purposes of this Statement, a prospective offeror shall identify only 
one principal place of business, and such location shall include at 
least the offices of the chief operating officer and headquarters staff. 
The named location must be a United States jurisdiction in which the 
prospective offeror may bring suit and be sued and in which service of 
process shall be accepted.
    Question 2(a). The organization seeking eligibility has its 
principal office in what city and state?
________________________________________________________________________
    Question 2(b). What kind of tax return was or will be filed, and in 
what jurisdiction, during the current calendar year? The jurisdiction 
identified herein need not be the same jurisdiction identified in 
Question 2(a).
________________________________________________________________________
    (i) Jurisdiction:
________________________________________________________________________
    (ii) Type of return (e.g., income tax, franchise tax, etc.). Include 
all that apply:
________________________________________________________________________

    3. Section 136(d)(1): ``The term `United States person' means a 
person which--(C) has been incorporated or legally organized in the 
United States--(i) for more than 2 (two) years before the issuance date 
of the invitation for bids or request for proposals with respect to the 
contract under subsection (c) of this section.''
    Definitions for purposes of Section 136 determinations of 
eligibility--
    Has been incorporated or legally organized means that the 
organization can show continuity as an ongoing business. Organizations 
that have changed only their names meet the continuity requirement of 
this subsection. Organizations that have been bought, sold, merged, or 
otherwise substantially altered or enlarged their principal business 
activities will have the burden of proving that there have been ongoing 
operations by the same business entity for the required period of time. 
If the successor entity has acquired all of the assets and liabilities 
of the predecessor entity and the predecessor entity has no further 
existence, the successor may claim the incorporation or legal 
organization date of the predecessor. In any other circumstance, the 
prospective offeror must show that the law of the jurisdiction in which 
it operates regards the prospective offeror as the complete successor in 
interest of the predecessor entity for purpose of contractual 
obligations.
    Issuance date means the date in Block 5 of the Standard Form 33 
accompanying this solicitation.
    Years means calendar years measured from day of the month to day of 
the month. For example, January 1, 2002 through December 31, 2002 is one 
calendar year, as is July 1, 2002 through July 1, 2003.
    Question 3:
    (i) On what date was the organization seeking eligibility 
incorporated or legally organized?
________________________________________________________________________
    (ii) If this date is less than two years before the issuance date, 
on the basis of what documentation does the organization seeking 
eligibility claim that it has been in business for the requisite period 
of time?
________________________________________________________________________
(Identify, and forward copies as an Attachment to this Statement).
    4. Section 136(d)(1): ``The term `United States person' means a 
person which--(D)

[[Page 372]]

has performed within the United States or overseas security services 
similar in complexity to the contract being bid.''
    Definitions for purposes of Section 136 determination of 
eligibility--
    Complexity means the physical size or extent of the effort, as 
described in Section B and Exhibit A of this solicitation; combined with 
the required quality of the effort as described in Sections C and H of 
this solicitation.
    Overseas means within any jurisdiction that is not a part of the 
United States as defined below.
    Performed means contracts that have been fully completed by the 
prospective offeror and accepted by the other party to the transaction. 
Contracts still in progress have been performed for purposes of this 
definition if performance in complexity to the contract being bid has 
been ongoing for at least one year. Contracts need not have been with 
the U.S. Government.
    Security services means work of a kind as to fall within or compare 
closely with those described in the Statement of Work in Section C of 
this solicitation. An entity whose only security services experience was 
performed by its legally distinct parent or subsidiary organization will 
not be considered to have security services experience.
    Within the United States means within the legal geographic 
boundaries of a United States jurisdiction that is the place where the 
subject matter (e.g., services) of the contract or other arrangement was 
in fact completed. The place where the contract or other arrangement was 
negotiated or signed is not relevant to this definition.
    Question 4: Describe in an Attachment to this Statement (see 
L.1.3.5), the qualifying similar contracts or other arrangements 
performed by the prospective offeror. Provide required information on a 
sufficient number of arrangements to show that similar services have 
been performed overseas or in the United States. The description must 
consist of the following information on each arrangement, which shall be 
submitted as an Attachment to this Statement:
    Location: (city and state or country).
    Type of service: (for example, stationary guards, roving patrol, 
quick-reaction force, etc.).
    Complexity: (type of facilities guarded, and number or extent of 
facilities, number of guards, etc.).
    5. Section 136(d)(1): ``The term `United States person' means a 
person which--(E) with respect to the contract under subsection (c) of 
this section, has achieved a total business volume equal to or greater 
than the value of the project being bid in 3 years of the 5-year period 
before the date specified in subparagraph (C).''
    Definitions of purposes of Section 136 determination of 
eligibility--
    3 years of the 5-year period before the date specified in 
subparagraph (C) means the three to five calendar year period 
immediately preceding the issuance date of this solicitation.
    Total business volume means the U.S. dollar value of the gross 
income or receipts reported by the prospective offeror on its annual 
federal income tax returns.
    Years means calendar years.
    Question 5: Describe in an Attachment to this Statement (see 
L.1.3.5), for at least three of the five twelve-month income tax periods 
(fiscal years) defined below, the gross receipts of the organization 
seeking eligibility.
    (i) The fiscal year ending during the calendar year that includes 
the date of this solicitation.
    (ii) The fiscal year ending in the calendar year immediately prior 
to the calendar year that includes the date of this solicitation.
    (iii) The fiscal year ending in the calendar year two years before 
the calendar year that includes the date of this solicitation.
    (iv) The fiscal year ending in the calendar year three years before 
the calendar year that includes the date of this solicitation.
    (v) The fiscal year ending in the calendar year four years before 
the calendar year that includes the date of this solicitation.
    An entity will be deemed to have met this requirement if the total 
cumulative business volume for the three years presented exceeds the 
contract price at time of award under this solicitation for the full 
term for which prices are solicited, including any option periods.
    6. Section 136(d)(1): ``The term `United States person' means a 
person which `` (F)(i) employs United States citizens in at least 80 
percent of its principal management positions in the United States; and 
(F)(ii) employs United States citizens in more than half of its 
permanent full-time positions in the United States.''
    Definitions for purposes of Section 136 determinations of 
eligibility--
    Full-time (positions) means those personnel positions in which the 
occupants are expected to and ordinarily work for 40 or more hours per 
week.
    In the United States refers to those personnel positions that are 
encumbered as of the date of this solicitation and that the prospective 
offeror maintains in geographic locations within the jurisdictions 
defined above as constituting the United States.
    Permanent (positions) means personnel positions that are intended to 
be indefinite as to length of employment, as opposed to limited, 
seasonal, or project-length personnel appointments.
    Permanent, full-time positions means that portion of the prospective 
offeror's workforce that continues to be employed without regard to the 
ordinary fluctuations of production or projects.

[[Page 373]]

    Principal management positions means those personnel positions 
including at least the chief executive officer (if any) and the chief 
operating officer (whether by title or by function) of the organization 
seeking eligibility, together with all those management officials who 
constitute the highest levels of management authority within the 
organization. In the case of a partnership, all general partners are 
deemed to hold principal management positions. In the case of a 
corporation, those officers of the corporation who are principally 
responsible for the day-to-day operation of the corporation. Members of 
corporation boards of directors do not occupy ``principal management 
positions'' simply by virtue of their service on the board. In all 
cases, the term ``principal management positions'' also includes the 
position or positions held by the individual or individuals in the 
United States who will have primary corporate management oversight 
responsibility for this contract if the prospective contractor is 
awarded the contract.
    United States citizen means natural persons with United States 
citizenship by virtue either of birth or of naturalization.
    Question 6(a): The organization seeking eligibility shall list all 
of its principal management positions and identify the current occupant 
of each listed position by name and citizenship. Provide the information 
as an Attachment to this Statement in the following format:
    (i) Principal management positions in the United States:
Chief Executive Officer (if any):
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
    Chief Operating Officer:
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
    (ii) For each additional corporate officer having principal 
responsibility for the day-to-day operations of the corporation, list 
position, name, and citizenship.
________________________________________________________________________
Position:
________________________________________________________________________
Name:
________________________________________________________________________
Citizenship:
    (iii) Individual(s) in the United States expected to have primary 
management oversight responsibility for contract if it is awarded:
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
    Question 6(b): Number of permanent, full-time, currently encumbered 
personnel positions that are located in the United States (good faith 
estimates acceptable): _____
    Question 6(c): Number of United States citizens currently employed 
in permanent, full-time positions that are located in the United States 
(good faith estimates acceptable): _____
    7. Section 136(d)(1): ``The term `United States person' means a 
person which--(G) has the existing technical and financial resources in 
the United States to perform the contract.''
    Definitions for purposes of Section 136 determinations of 
eligibility--
    Existing technical and financial resources means technical and 
financial capability within the United States to mobilize adequate 
staffing, equipment and organizational arrangements to perform the 
contract. Adequate technical resources may be demonstrated by presenting 
an organization chart, and resumes of current officers and employees in 
the United States who possess skills and expertise necessary to provide 
management and oversight of the work. Other indicia will be considered 
if offered to demonstrate that the prospective offeror has available 
resources in the United States adequate to provide home office 
management and oversight of the work. Adequate financial resources may 
be demonstrated by proof of possession of a combination of net worth, 
bank lines of credit, or bank guarantees. If lines of credit or bank 
guarantees are used to demonstrate adequate financial resources, they 
must be from entities within the United States.
    Question 7: Submit, as an Attachment to this Statement, materials 
demonstrating existing technical and financial resources in the United 
States (see L.1.3.5).
    8. Section 136(d)(2): ``The term `qualified United States joint 
venture person' means a joint venture in which a United States person or 
persons owns at least 51 percent of the assets of the joint venture.''
    Definitions for purposes of Section 136 determinations of 
eligibility--
    Assets means tangible and intangible things of value conveyed or 
made available to the joint venture by the co-venturers. To be qualified 
for U.S. preference, 51 percent of the assets of the joint venture must 
be owned by the U.S. person co-venturer(s).
    Joint venture means a formal or de facto association of two or more 
persons or entities to carry out a single business enterprise for 
profit, for which purpose they combine their property, money, effects, 
skills, and knowledge. To be acceptable, all members of a joint venture 
must be jointly and severally liable for full performance and resolution 
of matters arising out of the contract.
    Question 8(a): The prospective offeror is is not a joint venture.
    Question 8(b): If the prospective offeror is a joint venture, the 
U.S. person participant is:

[[Page 374]]

________________________________________________________________________
(name)
________________________________________________________________________
(address)
    Question 8(c): If the prospective offeror is a joint venture, the 
names and countries of citizenship for all co-venturers are as follows:
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
________________________________________________________________________
(name)
________________________________________________________________________
(citizenship)
    Question 8(d): If the prospective offeror is a joint venture, the 
U.S. person will own at least 51 percent of the assets of the joint 
venture.
________________________________________________________________________
I so certify: (name)
________________________________________________________________________
(position)
________________________________________________________________________
(title)
    (e) Signature: By signing this document, the offeror indicates that 
to the best of his or her knowledge, all of the representations and 
certifications provided in response to the questions contained in this 
Statement of Qualifications are accurate, current, and complete and that 
the offeror is aware of the penalty prescribed in 18 U.S.C. 1001 for 
making false statements.
________________________________________________________________________

                           (End of provision)

[69 FR 19343, Apr. 13, 2004, as amended at 76 FR 20251, Apr. 12, 2011]



652.239-70  Information Technology Security Plan and Accreditation.

    As prescribed in 639.107-70(a), insert the following provision:

    Information Technology Security Plan and Accreditation (SEP 2007)

    All offers/bids submitted in response to this solicitation must 
address the approach for completing the security plan and certification 
and accreditation requirements as required by the clause at 652.239-71, 
Security Requirements for Unclassified Information Technology Resources.

                           (End of provision)

[72 FR 51569, Sept. 10, 2007]



652.239-71  Security Requirements for Unclassified Information
Technology Resources.

    As prescribed in 639.107-70(b), insert the following clause:

Security Requirements for Unclassified Information Technology Resources 
                               (SEP 2007)

    (a) General. The Contractor shall be responsible for information 
technology (IT) security, based on Department of State (DOS) risk 
assessments, for all systems connected to a Department of State (DOS) 
network or operated by the Contractor for DOS, regardless of location. 
This clause is applicable to all or any part of the contract that 
includes information technology resources or services in which the 
Contractor has physical or electronic access to DOS's information that 
directly supports the mission of DOS. The term ``information 
technology'', as used in this clause, means any equipment, including 
telecommunications equipment, that is used in the automatic acquisition, 
storage, manipulation, management, movement, control, display, 
switching, interchange, transmission, or reception of data or 
information. This includes both major applications and general support 
systems as defined by OMB Circular A-130. Examples of tasks that require 
security provisions include:
    (1) Hosting of DOS e-Government sites or other IT operations;
    (2) Acquisition, transmission or analysis of data owned by DOS with 
significant replacement cost should the Contractor's copy be corrupted; 
and
    (3) Access to DOS general support systems/major applications at a 
level beyond that granted the general public; e.g., bypassing a 
firewall.
    (b) IT Security Plan. The Contractor shall develop, provide, 
implement, and maintain an IT Security Plan. This plan shall describe 
the processes and procedures that will be followed to ensure appropriate 
security of IT resources that are developed, processed, or used under 
this contract. The plan shall describe those parts of the contract to 
which this clause applies. The Contractor's IT Security Plan shall 
comply with applicable Federal laws that include, but are not limited 
to, 40 U.S.C. 11331, the Federal Information Security Management Act 
(FISMA) of 2002, and the E-Government Act of 2002. The plan shall meet 
IT security requirements in accordance with Federal and DOS policies and 
procedures, as they may be amended from time to time during the term of 
this contract that include, but are not limited to:
    (1) OMB Circular A-130, Management of Federal Information Resources, 
Appendix III, Security of Federal Automated Information Resources;

[[Page 375]]

    (2) National Institute of Standards and Technology (NIST) Guidelines 
(see NIST Special Publication 800-37, Guide for the Security 
Certification and Accreditation of Federal Information Technology 
Systems (http://csrc.nist.gov /publications /nistpubs /800-37 /SP800 -
37- final.pdf)); and
    (3) Department of State information security sections of the Foreign 
Affairs Manual (FAM) and Foreign Affairs Handbook (FAH) (http://
foia.state.gov/Regs/Search.asp), specifically:
    (i) 12 FAM 230, Personnel Security;
    (ii) 12 FAM 500, Information Security (sections 540, 570, and 590);
    (iii) 12 FAM 600, Information Security Technology (section 620, and 
portions of 650);
    (iv) 5 FAM 1060, Information Assurance Management; and
    (v) 5 FAH 11, Information Assurance Handbook.
    (c) Submittal of IT Security Plan. Within 30 days after contract 
award, the Contractor shall submit the IT Security Plan to the 
Contracting Officer and Contracting Officer's Representative (COR) for 
acceptance. This plan shall be consistent with and further detail the 
approach contained in the contractor's proposal or sealed bid that 
resulted in the award of this contract and in compliance with the 
requirements stated in this clause. The plan, as accepted by the 
Contracting Officer and COR, shall be incorporated into the contract as 
a compliance document. The Contractor shall comply with the accepted 
plan.
    (d) Accreditation. Within six (6) months after contract award, the 
Contractor shall submit written proof of IT security accreditation for 
acceptance by the Contracting Officer. Such written proof may be 
furnished either by the Contractor or by a third party. Accreditation 
must be in accordance with NIST Special Publication 800-37. This 
accreditation will include a final security plan, risk assessment, 
security test and evaluation, and disaster recovery plan/continuity of 
operations plan. This accreditation, when accepted by the Contracting 
Officer, shall be incorporated into the contract as a compliance 
document, and shall include a final security plan, a risk assessment, 
security test and evaluation, and disaster recovery/continuity of 
operations plan. The Contractor shall comply with the accepted 
accreditation documentation.
    (e) Annual verification. On an annual basis, the Contractor shall 
submit verification to the Contracting Officer that the IT Security Plan 
remains valid.
    (f) Warning notices. The Contractor shall ensure that the following 
banners are displayed on all DOS systems (both public and private) 
operated by the Contractor prior to allowing anyone access to the 
system:

                           Government Warning

                      **WARNING**WARNING**WARNING**

    Unauthorized access is a violation of U.S. law and Department of 
State policy, and may result in criminal or administrative penalties. 
Users shall not access other user's or system files without proper 
authority. Absence of access controls IS NOT authorization for access! 
DOS information systems and related equipment are intended for 
communication, transmission, processing and storage of U.S. Government 
information. These systems and equipment are subject to monitoring by 
law enforcement and authorized Department officials. Monitoring may 
result in the acquisition, recording, and analysis of all data being 
communicated, transmitted, processed or stored in this system by law 
enforcement and authorized Department officials. Use of this system 
constitutes consent to such monitoring.

                      **WARNING**WARNING**WARNING**

    (g) Privacy Act notification. The Contractor shall ensure that the 
following banner is displayed on all DOS systems that contain Privacy 
Act information operated by the Contractor prior to allowing anyone 
access to the system:
    This system contains information protected under the provisions of 
the Privacy Act of 1974 (Pub. L. 93-579). Any privacy information 
displayed on the screen or printed shall be protected from unauthorized 
disclosure. Employees who violate privacy safeguards may be subject to 
disciplinary actions, a fine of up to $5,000, or both.
    (h) Privileged or limited privileged access. Contractor personnel 
requiring privileged access or limited privileged access to systems 
operated by the Contractor for DOS or interconnected to a DOS network 
shall adhere to the specific contract security requirements contained 
within this contract and/or the Contract Security Classification 
Specification (DD Form 254).
    (i) Training. The Contractor shall ensure that its employees 
performing under this contract receive annual IT security training in 
accordance with OMB circular A-130, FISMA, and NIST requirements, as 
they may be amended from time to time during the term of this contract, 
with a specific emphasis on rules of behavior.
    (j) Government access. The Contractor shall afford the Government 
access to the Contractor's and subcontractor's facilities, 
installations, operations, documentation, databases and personnel used 
in performance of the contract. Access shall be provided to the extent 
required to carry out a program of IT inspection (to include 
vulnerability testing), investigation and audit to safeguard against 
threats and hazards to the integrity, availability and confidentiality 
of DOS data or to

[[Page 376]]

the function of information technology systems operated on behalf of 
DOS, and to preserve evidence of computer crime.
    (k) Subcontracts. The Contractor shall incorporate the substance of 
this clause in all subcontracts that meet the conditions in paragraph 
(a) of this clause.
    (l) Notification regarding employees. The Contractor shall 
immediately notify the Contracting Officer when an employee either 
begins or terminates employment when that employee has access to DOS 
information systems or data.
    (m) Termination. Failure on the part of the Contractor to comply 
with the terms of this clause may result in termination of this 
contract.

                             (End of clause)

[72 FR 51569, Sept. 10, 2007]



652.242-70  Contracting Officer's Representative (COR).

    As prescribed in 642.272(a), insert a clause substantially the same 
as follows:

          Contracting Officer's Representative (COR) (AUG 1999)

    (a) The Contracting Officer may designate in writing one or more 
Government employees, by name and position title, to take action for the 
Contracting Officer under this contract. Each designee shall be 
identified as a Contracting Officer's Representative (COR). Such 
designation(s) shall specify the scope and limitations of the authority 
so delegated; provided, that the designee shall not change the terms or 
conditions of the contract, unless the COR is a warranted Contracting 
Officer and this authority is delegated in the designation.
    (b) The COR is [insert job title of COR].

                             (End of clause)

[53 FR 26177, July 11, 1988, as amended at 59 FR 66772, Dec. 28, 1994; 
64 FR 43634, Aug. 11, 1999; 69 FR 19345, Apr. 13, 2004]



652.242-71-652.242-72  [Reserved]



652.242-73  Authorization and Performance.

    As prescribed in 642.272(b), insert a clause substantially the same 
as follows:

                Authorization and Performance (AUG 1999)

    (a) The contractor warrants the following:
    (1) That is has obtained authorization to operate and do business in 
the country or countries in which this contract will be performed;
    (2) That is has obtained all necessary licenses and permits required 
to perform this contract; and,
    (3) That it shall comply fully with all laws, decrees, labor 
standards, and regulations of said country or countries during the 
performance of this contract.
    (b) If the party actually performing the work will be a 
subcontractor or joint venture partner, then such subcontractor or joint 
venture partner agrees to the requirements of paragraph (a) of this 
clause.

                             (End of clause)

    Alternate I (AUG 1999). If the contract is for overseas local guard 
services, as prescribed in 642.272(b), substitute the following 
paragraphs (a)(1) and (a)(2) for paragraphs (a)(1) and (a)(2) of the 
basic clause:

    (a)(1) That it has obtained authorization to operate and do business 
in the country or countries in which this contract will be performed, or 
will obtain such authorization before performance of this contract 
begins;
    (a)(2) That it has obtained all necessary licenses and permits 
required to perform this contract, or will obtain such licenses and 
permits before performance of this contract begins;

[64 FR 43634, Aug. 11, 1999, as amended at 69 FR 19345, Apr. 13, 2004]



652.243-70  Notices.

    As prescribed in 643.104-70, insert the following clause:

                           Notices (AUG 1999)

    Any notice or request relating to this contract given by either 
party to the other shall be in writing. Said notice or request shall be 
mailed or delivered by hand to the other party at the address provided 
in the schedule of the contract. All modifications to the contract must 
be made in writing by the contracting officer.

                             (End of clause)

[64 FR 43634, Aug. 11, 1999]



652.245-70  Status of Property Management System.

    As prescribed in 645.107-70(a), insert the following provision:

[[Page 377]]

             Status of Property Management System (DEC 2013)

    (a) When used in this provision, government-furnished property, 
government property, and contractor-acquired property are as defined in 
FAR 45.101.
    (b) Offerors shall include in their quote or offer:
    (1) Whether the offeror's property management system that will be 
used on this contract to track government-furnished property and/or 
contractor-acquired property has been determined to be adequate by a 
Federal property manager;
    (2) The name, address, telephone number and email address of both 
the-
    (i) Cognizant Administrative Contracting Officer (ACO) responsible 
for review and determination of adequacy of the contractor's property 
system; and
    (ii) The cognizant contractor government property manager;
    (3) The voluntary consensus standard or industry leading practices 
and standards to be used in the management of government property, or 
existing property management plans, methods, practices or procedures for 
accountability of property.

                           (End of provision)

[78 FR 76076, Dec. 16, 2013]



652.245-71  Special Reports of Government Property.

    As prescribed in 645.107-70(b), insert the following clause:

            Special Reports of Government Property (FEB 2015)

    (a) Definitions. As used in this clause:
    Disposition means government property that has been removed from use 
on the contract.
    Highway motor vehicle means any vehicle, self propelled or drawn by 
mechanical power, designed and operated principally for highway 
transportation of property or passengers. (41 CFR 102-34.35).
    (b) The Contractor shall establish and maintain a property 
management system that is in accordance with the clause at FAR 52.245-1, 
Government Property. This clause supplements these requirements by 
specifying the U.S. Department of State capitalized property reporting 
requirements.
    (c) The Contractor shall submit electronically one report on an 
annual basis and three other reports on a quarterly basis for the 
following:
    (1) Where highway motor vehicles or aircraft, regardless of cost, 
are provided by the Government or acquired by the Contractor for the 
account of the Government;
    (2) Where software exceeding $500,000 in value, including labor cost 
to develop, is provided by the Government or acquired by the Contractor 
for the account of the Government; or
    (3) Where personal property greater than $25,000 (not in paragraph 
(c)(1) of this clause) is provided by the Government or acquired by the 
Contractor for the account of the Government. The personal property must 
be complete within itself; does not lose its identity or become a 
component part of other property when put into use; and is of a durable 
nature with an estimated useful life expectancy to exceed two years.
    (d) The Contractor shall submit all annual and quarterly reports in 
the following format, except as stated in paragraph (e) of this clause:
    (1) Property shall be grouped by the following property 
classifications:
    (i) Highway motor vehicles;
    (ii) Communications equipment;
    (iii) Information technology (formerly called automated data 
processing) equipment;
    (iv) Reproduction equipment;
    (v) Security equipment;
    (vi) Software;
    (vii) Software-in-development;
    (viii) Medical equipment;
    (ix) Aircraft property; and
    (x) Other depreciable personal property.
    (2) Data elements for each unit of property shall include:
    (i) Contract number: Federal Government contract or purchase order 
number;
    (ii) Task Order number;
    (iii) Property classification: From classification listed in 
paragraph (d)(1) of this clause;
    (iv) Denotation as either government-furnished property (GFP) or 
contractor-acquired property (CAP) (If from another DOS contract, or 
government agency, please specify);
    (v) Noun name of property (i.e., generator);
    (vi) Description of property;
    (vii) Manufacturer;
    (viii) Model;
    (ix) Serial number;
    (x) National Stock Number if applicable
    (xi) Unique-item identifier or equivalent: such as barcode label 
(tag number) or system-assigned number. For highway motor vehicles, this 
must be the vehicle identification number (VIN);
    (xii) Date received: Date contractor took possession;
    (xiii) Date placed in service;
    (xiv) Acquisition cost (As defined in FAR clause 52.245-1(a)): Use 
estimated fair-market value for property transferred or donated, at the 
time acquired, if actual cost is unknown;
    (xv) Estimated useful life in years: The period during which the 
property is expected to

[[Page 378]]

provide the service for which it was intended. This should normally be 
equivalent to the depreciation schedule;
    (xvi) Current location of the property: Country and city;
    (xvii) Disposal Date;
    (xviii) Disposal Method;
    (e) The Contractor shall submit a full property report, as described 
in this clause, including affirmation, for the report covering the first 
quarter of the base contract. Thereafter, submission of reports shall 
follow the time frames outlined in paragraph (h) below. Quarterly 
property reports, other than the annual report, may be either full 
property reports or only updates to the full property report. Quarterly 
reports do not require affirmations even when the Contractor chooses to 
submit a full property report. Affirmations are only required for the 
report covering the first quarter of the contract and the annual report 
for each subsequent option year of the contract. If the Contractor 
submits a full property report, dispositions subsequent to any previous 
report must also be identified in the report. If a Contractor submits a 
quarterly report in the form of an update, the update shall include 
acquisitions and dispositions.
    (f) The Contractor shall provide any required affirmation in the 
following format. The affirmation shall be signed by the Contractor's 
managerial personnel (as defined in FAR clause 52.245-1):

    ``I hereby affirm that a physical inventory of the government 
property (as defined in Federal Acquisition Regulation (FAR) 45.101) of 
Department of State contract number (insert contract number) has been 
completed as of (insert date), the inventory has been reconciled to our 
records and the property information in our report, and that to the best 
of my knowledge and belief, this inventory is accurate, current, and 
complete.
Signed:
________________________________________________________________________
Printed:
________________________________________________________________________
Title:
________________________________________________________________________
Date:
________________________________________________________________________

    (g) In addition to the information required above, the Contractor 
shall include in all property reports:
    (1) The current degree to which properly qualified Government 
personnel have evaluated the Contractor's property management system as 
being an adequate property management system;
    (2) The name, mailing address, telephone number, and email address 
of the qualified Government person(s) who performed the evaluation of 
the Contractor's property management system; and
    (3) The cognizant contractor government property manager.
    (h) Reports shall cover the following time periods and are due on 
the following dates:

------------------------------------------------------------------------
            Report                  Period covered          Due date
------------------------------------------------------------------------
1st Quarter Report............  For 1st quarter ending  January 15.
                                 December 31.
2nd Quarter Report (Annual      For 2nd quarter ending  April 30.
 Property Report).               March 31.
3rd Quarter Report............  For 3rd quarter ending  July 15.
                                 June 30.
4th Quarter Report............  For 4th quarter ending  October 8.
                                 September 30.
------------------------------------------------------------------------

    (i) The Contractor shall send a copy of all reports to the 
individuals listed below. The Contractor shall submit reports in 
electronic format as an attachment to an email. The affirmation 
described in paragraph (f) of this clause shall be in Adobe Acrobat 
(.pdf) format (including the signature), while the inventories, both 
quarterly and annual, shall be in Microsoft Excel format (Adobe Acrobat 
and Microsoft Excel versions shall be compatible with versions used by 
DOS). Send all reports to:
    (1) The contracting officer;
    (2) The Property Administrator;
    (3) The contracting officer's representative (COR);
    (4) [email protected];
    (5) [email protected]; and
    (6) All individuals listed below (if any):
[contracting officer shall list individuals, if any].
    (j) The Contractor shall cooperate by responding timely to all 
follow up questions and requests for supporting documentation whether 
requested by the Department or external auditors.

                             (End of clause)

[78 FR 76076, Dec. 16, 2013, as amended at 80 FR 6925, Feb. 9, 2015]



652.247-70  Notice of Shipments.

    As prescribed in 647.305-70, insert the following clause:

                     Notice of Shipments (FEB 2015)

    At the time of delivery of supplies to a carrier for onward 
transportation, the Contractor shall give notice of prepaid shipment to 
the consignee establishment, and to such

[[Page 379]]

other persons as instructed by the Contracting Officer. If the 
Contractor has not received such instructions by 24 hours prior to the 
delivery time, the Contractor shall contact the Contracting Officer and 
request instructions from the Contracting Officer concerning the notice 
of shipment to be given.

                             (End of clause)

[53 FR 26177, July 11, 1988, as amended at 64 FR 43634, Aug. 11, 1999. 
Redesignated and amended at 80 FR 6924, 6925, Feb. 9, 2015]



652.247-71  Shipping Instructions.

    As prescribed in 647.305-71, insert the following clause:

                    Shipping Instructions (FEB 2015)

    (a) Each packing box shall be of solid construction in accordance 
with best commercial practices and sufficiently strong in direct ratio 
to the weight of the contents to withstand excessively rough handling 
while in transit overseas. It shall be constructed of lumber that is 
well seasoned, reasonably sound, free from bad cross grain and from 
knots or knotholes that interfere with nailing or that occupy more than 
\1/3\ of the width of the piece of lumber. Box shall be constructed with 
three-way corners and diagonal bracing. All nails shall be cement-
coated, of correct size and properly spaced to avoid splitting or 
warping, and shall be driven into the grain of the wood. Dimension of 
lumber shall be in accordance with the following table, dependent upon 
the weight of the contents:

------------------------------------------------------------------------
                                        Minimum dimensions of lumber for
      Weight of box and contents           struts, frame members, and
                                             single diagonal braces
------------------------------------------------------------------------
Up to 45 kg...........................  19.05  x  57.15mm
46 to 113 kg..........................  22.23  x  73.03mm
114 to 181 kg.........................  22.23  x  98.43mm
182 to 272 kg.........................  22.23  x  123.83mm or 25.4  x
                                         98.43 mm
------------------------------------------------------------------------

    (b) Each box shall be lined with waterproof paper and shall be bound 
with 19.05mm" steel straps firmly stapled in position to prevent the 
straps from slipping off the box. Articles must be secured and braced 
inside the shipping container to prevent the articles from shifting.
    (c) Packing cases weighing 453.5kg and more must be equipped with 
skids. Each skid shall consist of two end sections of 50.8  x  152.4mm 
lumber placed flat and a center section of 50.8  x  101.6mm lumber 
placed flat and then arranged in line to provide 254mm forklift spaces 
between center and end sections. When goods are ready for shipment, the 
Contractor shall prepare four (4) copies of a packing list, indicating 
the contract and, if applicable, order numbers; case number; itemized 
list of contents; net and gross weights in kilograms; and outside 
dimensions, including all clears, of each shipping container. The 
Contractor shall provide three (3) copies of the packing list to the 
U.S. Despatch Agent as specified in the contract or order. The 
Contractor shall place the fourth copy of the packing list in packing 
case number one, which shall be marked as such so that it is easily 
identified by the consignee. Upon receipt of the packing list, the 
Despatch Agent will furnish export marks and instructions regarding 
shipment to the port specified, depending upon steamer services 
available at the time.
    (d) The export marks shall be stenciled on one side of each box 
reserved for that purpose, and the appropriate case number stenciled in 
the lower left-hand corner of the same side. The contract and, as 
necessary, order numbers, net and gross weights in kilograms shall be 
stenciled on the same side. However, if the size of the box is too small 
to accommodate all stenciling on one side, the contract and order 
numbers and weights may be stenciled on the side opposite that used for 
the export marks and case number.
    (e) The contract and, as necessary, order numbers must appear on all 
containers and papers relating to this clause.

                             (End of clause)

[53 FR 26177, July 11, 1988; 53 FR 36462, Sept. 20, 1988, as amended at 
59 FR 66772, Dec. 28, 1994; 64 FR 43634, Aug. 11, 1999. Redesignated and 
amended at 80 FR 6924, 6925, Feb. 9, 2015]



PART 653_FORMS--Table of Contents



Sec.
653.000  Scope of part.

                          Subpart 653.1_General

653.101  Requirements for use of forms.
653.101-70  Policy.
653.110  Continuation sheets.

                   Subpart 653.2_Prescription of Forms

653.200  Scope of subpart.
653.213  Simplified acquisition procedures (SF's 18, 30, 44, 1165, OF's 
          347, 348).
653.217  Special contracting methods.
653.217-70  DOS form DS-1921, Award/Modification of Interagency 
          Acquisition Agreement.
653.219  Small business programs.
653.219-70  DOS form DS-1910, Small Business Agency Review--Actions 
          Above the Simplified Acquisition Threshold.
653.219-71  DOS form DS-4053, Department of State Mentor-Protege Program 
          Application.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

[[Page 380]]


    Source: 53 FR 26180, July 11, 1988, unless otherwise noted.



653.000  Scope of part.

    This part prescribes DOSAR forms in addition to those provided in 
FAR Part 53.



                          Subpart 653.1_General



653.101  Requirements for use of forms.



653.101-70  Policy.

    The forms in FAR subpart 53.2 or in subpart 653.2 shall be used as 
precribed therein, except when the use of any form is prohibited by or 
inconsistent with local laws, or the supplies or services could not be 
obtained if the form were used. The contracting officer shall justify 
the exclusion of any form in accordance with FAR subpart 1.4 and 
601.470.

[53 FR 26180, July 11, 1988, as amended at 69 FR 19345, Apr. 13, 2004; 
72 FR 45696, Aug. 15, 2007]



653.110  Continuation sheets.

    The provisions of FAR 53.110 also apply to forms prescribed in the 
DOSAR.



                   Subpart 653.2_Prescription of Forms



653.200  Scope of subpart.

    This subpart prescribes or references optional and DOS forms for use 
in acquisition. Consistent with FAR 53.200, this subpart is arranged by 
subject matter, in the same order as and keyed to the parts of the DOSAR 
in which the form usage requirements are addressed.



653.213  Simplified acquisition procedures (SF's 18, 30, 44, 1165,
OF's 347, 348).



653.217  Special contracting methods.



653.217-70  DOS form DS-1921, Award/Modification of Interagency
Acquisition Agreement.

    As prescribed in 617.504-70(b)(5)(i), DS-1921 is prescribed for use 
when awarding or modifying Economy Act Interagency Acquisition 
Agreements where the Department is the requesting agency.

[59 FR 66773, Dec. 28, 1994]



653.219  Small business programs.



653.219-70  DOS form DS-1910, Small Business Agency Review--Actions
Above the Simplified Acquisition Threshold.

    As prescribed in 619.501(c), DS-1910 is prescribed for use in 
documenting set-aside decisions.

[64 FR 43634, Aug. 11, 1999]



653.219-71  DOS form DS-4053, Department of State Mentor-Protege
Program Application.

    As prescribed in 619.102-70(i), DS-4053 is prescribed for use in 
applying for an agreement under the Department of State Mentor-Protege 
Program.

[69 FR 19345, Apr. 13, 2004]

                        PARTS 654	699 [RESERVED]

[[Page 381]]



                              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 383]]



                    Table of CFR Titles and Chapters




                     (Revised as of October 1, 2017)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--599)
        VI  National Capital Planning Commission (Parts 600--699)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 2--199)
        II  Office of Management and Budget Guidance (Parts 200--
                299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300--
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
       VII  Agency for International Development (Parts 700--799)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
         X  Department of the Treasury (Parts 1000--1099)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1800--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Housing and Urban Development (Parts 2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)

[[Page 384]]

     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)
      XXIX  Department of Labor (Parts 2900--2999)
       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
     XXXVI  Office of National Drug Control Policy, Executive 
                Office of the President (Parts 3600--3699)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)
       LIX  Gulf Coast Ecosystem Restoration Council (Parts 5900--
                5999)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)

                   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  Office of Personnel Management and Office of the 
                Director of National Intelligence (Parts 1400--
                1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600--3699)

[[Page 385]]

    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
     XXXVI  Department of Homeland Security (Parts 4600--4699)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)

[[Page 386]]

     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 9000--9099)
   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (Parts 9600--
                9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
    XCVIII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)
      XCIX  Military Compensation and Retirement Modernization 
                Commission (Parts 9900--9999)
         C  National Council on Disability (Parts 10000--10049)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--199)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         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 Nutrition 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)
      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)

[[Page 387]]

         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)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      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 Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  National Institute of Food and Agriculture (Parts 
                3400--3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     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)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

[[Page 388]]

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 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, Department of 
                Agriculture (Parts 300--599)

                           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)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      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)
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)

[[Page 389]]

      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research (Parts 1600--1699)
      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)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    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--1199)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 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 Industry and Security, 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)

[[Page 390]]

        XI  National Technical Information Service, 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) [Reserved]

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             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  U.S. Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  U.S. Immigration and Customs Enforcement, Department 
                of Homeland Security (Parts 400--599) [Reserved]

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)

[[Page 391]]

       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  Office of Workers' Compensation Programs, 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 Service, 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)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (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  Millennium Challenge Corporation (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)

[[Page 392]]

        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)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        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, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         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)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799) [Reserved]
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)

[[Page 393]]

      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099) [Reserved]
       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--899)
         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 (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--End)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         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)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

[[Page 394]]

                            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 Standards, 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  Employee Benefits Security 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  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 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)
        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)

[[Page 395]]

        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 Investment Security, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

                      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)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       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)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army, Department 
                of Defense (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)

[[Page 396]]

        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Career, Technical and Adult Education, 
                Department of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599) 
                [Reserved]
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799) 
                [Reserved]
            Subtitle C--Regulations Relating to Education
        XI  [Reserved]
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             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)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  U.S. Copyright Office, Library of Congress (Parts 
                200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  National Institute of Standards and Technology, 
                Department of Commerce (Parts 400--599)

[[Page 397]]

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)
      VIII  Gulf Coast Ecosystem Restoration Council (Parts 1800--
                1899)

          Title 41--Public Contracts and Property Management

            Subtitle A--Federal Procurement Regulations System 
                [Note]
            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 Service, Department of 
                Labor (Parts 61-1--61-999)
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
  103--104  [Reserved]
       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)
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]

[[Page 398]]

            Subtitle E--Federal Information Resources Management 
                Regulations System [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) 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 (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
   ii--III  [Reserved]
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--699)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1099)

                   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 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (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 
                (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)

[[Page 399]]

       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)
        IX  Denali Commission (Parts 900--999)
         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  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Administration for Children and Families, 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 of Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      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 Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (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)

[[Page 400]]

        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)
         V  The First Responder Network Authority (Parts 500--599)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  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  Broadcasting Board of Governors (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)
        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)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        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) 
                [Reserved]

[[Page 401]]

        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (Parts 6100--6199)
        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  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (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 (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--1499) 
                [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   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 Fishing and Related Activities (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)

[[Page 402]]

        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

[[Page 403]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of October 1, 2017)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     5, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 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
  Food and Nutrition 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
  National Institute of Food and Agriculture      7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  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
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII

[[Page 404]]

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
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase from People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Career, Technical and Adult Education, Office of  34, IV
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazardous Investigation       40, VI
     Board
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X, XIII
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX
     for the District of Columbia
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II; 37, IV
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Technical Information Service          15, XI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Secretary of Commerce, Office of                15, Subtitle A
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 Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I
Defense Contract Audit Agency                     32, I
Defense Department                                2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I

[[Page 405]]

  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III; 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Denali Commission                                 45, IX
District of Columbia, Court Services and          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Career, Technical and Adult Education, Office   34, IV
       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
  Career, Technical, and Adult Education, Office  34, IV
       of
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
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                             2, IX; 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
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  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
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99
  National Drug Control Policy, Office of         2, XXXVI; 21, III
  National Security Council                       32, XXI; 47, 2

[[Page 406]]

  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 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
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 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                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
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
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
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
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission of                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Food and Drug Administration                      21, I
Food and Nutrition 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 Services Administration                   5, LVII; 41, 105

[[Page 407]]

  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  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
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Gulf Coast Ecosystem Restoration Council          2, LIX; 40, VIII
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X, XIII
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 5, XXXVI; 6, I; 8, 
                                                  I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing and Urban Development, Department of      2, XXIV; 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
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  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
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Immigration and Customs Enforcement Bureau        19, IV
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Independent Counsel, Offices of                   28, VI
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
   Secretary
[[Page 408]]

Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
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, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department                               2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  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
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Safety and Enforcement Bureau, Bureau of        30, II
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  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, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
Investment Security, Office of                    31, VIII
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                                2, XXVIII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Independent Counsel, Offices of                 28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  2, XXIX; 5, XLII
  Employee Benefits Security Administration       29, XXV
  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
[[Page 409]]

  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I, VII
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Royalty Board                         37, III
  U.S. Copyright Office                           37, II
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Military Compensation and Retirement              5, XCIX
     Modernization Commission
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV, VI
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    5, C; 34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              5, LXXXVI; 12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           2, XXXVI; 21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Geospatial-Intelligence Agency           32, I
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II; 37, IV
National Intelligence, Office of Director of      5, IV; 32, XVII
National Labor Relations Board                    5, LXI; 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                       2, XXV; 5, XLIII; 45, VI

[[Page 410]]

  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, IV, V
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI
Natural Resource Revenue, Office of               30, XII
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Patent and Trademark Office, United States        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                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 5, IV; 45, 
                                                  VIII
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory 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 Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
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
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Safety and Environmental Enforcement, Bureau of   30, II
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV

[[Page 411]]

Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 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                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               2, X;5, XXI; 12, XV; 17, 
                                                  IV; 31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, 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
U.S. Copyright Office                             37, II
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Wage and Hour Division                            29, V
Water Resources Council                           18, VI

[[Page 412]]

Workers' Compensation Programs, Office of         20, I, VII
World Agricultural Outlook Board                  7, XXXVIII

[[Page 413]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2012 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, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.fdsys.gov. For changes to this volume of the CFR 
prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 1964-
1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. The 
``List of CFR Sections Affected 1986-2000'' is available at 
www.fdsys.gov.

                                  2012

48 CFR
                                                                   77 FR
                                                                    Page
Chapter 4
422.70--452.222-7001 (Subpart 422.70)  Regulation at 76 FR 74723 
        withdrawn...................................................5714
Chapter 5
501.106  Amended.....................................................750
504.402  Revised...................................................59792
504.475  Revised...................................................59792
504.500  Removed...................................................59792
504.502  Revised...................................................59792
504.570  Removed...................................................59792
504.602-71  Redesignated as 504.605-70.............................59792
504.604  Added.....................................................59792
    (a)(3) correctly amended.......................................69768
504.605-70  Redesignated from 504.602-71; (a) amended..............59792
504.1103 (Subpart 504.11)  Added...................................59792
504.1301--504.1303 (Subpart 504.13)  Added.........................59793
519  Authority citation revised....................................10666
519.870-8  (a)(3) revised..........................................10666
532.905-70  Added...................................................6987
539  Regulation at 76 FR 34888 confirmed.............................750
552.204-9  Added...................................................59793
552.219-71  Clause amended.........................................10666
552.219-72  Clause amended.........................................10666
552.219-76  Clause amended.........................................10666
552.232-72  Revised.................................................6988
552.239-70  Regulation at 76 FR 34888 confirmed......................750
552.239-71  Regulation at 76 FR 34888 confirmed......................750
    Clause amended...................................................751

                                  2013

48 CFR
                                                                   78 FR
                                                                    Page
Chapter 6
645  Revised.......................................................76076
652  Authority citation revised....................................76076
652.245-70  Added..................................................76076
652.245-71  Added..................................................76076

                                  2014

48 CFR
                                                                   79 FR
                                                                    Page
Chapter 4
436.578  Added; interim............................................29370
452.236-78  Added; interim.........................................29370
Chapter 5
501.106  Table amended (OMB numbers)...............................14184
    Table amended...........................................62884, 63057
514  Authority citation revised....................................63057
514.201-7  Removed.................................................63057
537.110  (a) revised...............................................62884
538.273  (b)(3) added..............................................14184
552.212-71  Clause amended.........................................62884
552.214-71  Removed................................................63057
552.237-70  Removed................................................62885
552.238-74  Heading revised; clause amended........................21402

[[Page 414]]

    Corrected......................................................28448
552.238-81  Added..................................................14184
    Clause corrected...............................................20107
    Clause amended.................................................29136

                                  2015

48 CFR
                                                                   80 FR
                                                                    Page
Chapter 3
Chapter  3 Revised.................................................72151
Chapter 5
502  Removed........................................................1589
511.204  (b)(12) removed...........................................28849
523  Heading and authority citation revised........................36248
523.303--523.370 (Subpart 523.3)  Heading revised..................36248
523.303  Heading revised; (c) added................................36248
552.211-93  Removed................................................28849
552.212-72  Clause amended.........................................36248
552.223-73  Added..................................................36249
Chapter 6
601  Authority citation revised.....................................6913
601.106  Revised....................................................6913
601.301  (a) revised................................................6913
601.302  (b) revised................................................6913
601.601.601-70  Redesignated from 601.603-70; (a)(6) redesignated 
        as (b)(8); (b)(5) and new (8) revised; (c) added............6913
601.602-3  Added....................................................6914
601.602-3-70  Added.................................................6914
601.603  Heading revised............................................6914
601.603-1  Amended..................................................6914
601.603-3  (e) added................................................6914
601.603-70  Redesignated as 601.601-70..............................6913
603  Authority citation revised.....................................6913
603.104-4  (a) and (6) amended......................................6915
604  Authority citation revised.....................................6913
604.202 (Subpart 604.2)  Added......................................6915
604.802--604.805 (Subpart 604.8)  Added.............................6915
604.1300  Redesignated as 604.1301..................................6916
604.1301--604.1303-70 (Subpart 604.13)  Heading revised.............6916
604.1301  Redesignated as 604.1303; redesignated from 604.1300......6916
604.1301-70  Redesignated as 604.1303-70............................6916
604.1303  Redesignated from 604.1301................................6916
604.1303-70  Redesignated from 604.1301-70 and revised..............6916
604.1601 (Subpart 604.16)  Added....................................6916
604.7001--604.7002 (Subpart 604.70)  Added..........................6916
604.7101--604.7103 (Subpart 604.71)  Added..........................6916
604.7201 (Subpart 604.72)  Added....................................6916
605  Authority citation revised.....................................6913
605.202--605.207-70 (Subpart 605.2)  Heading revised................6917
605.207  Added......................................................6917
605.403  Heading revised............................................6918
606  Authority citation revised.....................................6913
606.202  Heading revised............................................6918
606.302-6  (c)(1) introductory text amended.........................6918
606.303  Heading added..............................................6918
606.303-2  Added....................................................6918
606.304  (a)(2) amended; (d) removed................................6918
606.304-70  Amended.................................................6918
606.370  (a) and (b) amended........................................6918
606.501  (a) and (b) amended........................................6918
606.501-70  Amended.................................................6918
606.570  Amended....................................................6918
607  Authority citation revised.....................................6913
607.102  Added......................................................6918
607.103  (d) and (j) added..........................................6918
607.105  Added......................................................6918
607.503 (Subpart 607.5)  Added......................................6918
608  Added..........................................................6918
609  Authority citation revised.....................................6913
609.402  Added......................................................6919
609.403  Amended....................................................6919
609.404  Revised....................................................6919
609.404-70  Revised.................................................6919
613  Authority citation revised.....................................6913
613.302  Added......................................................6919
613.302-1  Added....................................................6919
613.302-5  Added....................................................6919
613.302-5-70  Added.................................................6919
613.303-1  Added....................................................6919
613.303-6  Added....................................................6919
613.307  Added......................................................6919
613.307-70  Added...................................................6919
615  Authority citation revised.....................................6913
615.303  (a) amended................................................6920
615.404--615.404-4 (Subpart 615.4)  Added...........................6920
616  Authority citation revised.....................................6913
616.102--616.203 (Subpart 616.1)  Added.............................6920
616.505  (b)(5) amended.............................................6920
617  Authority citation revised.....................................6913
617.201  Removed....................................................6920

[[Page 415]]

617.201-70  Removed.................................................6920
619  Authority citation revised.....................................6913
619.201  (a), (b), (d)(18) and (f)(1) amended.......................6920
619.202-70  (e)(3), (j)(1), (2), (k)(1), (2), (m)(2), (3), (4), 
        (n)(1), (2) and (o)(1) amended..............................6920
619.402-70  Amended.................................................6920
619.506  (b) amended................................................6920
619.602--619.602-1 (Subpart 619.6)  Heading revised.................6920
619.602-1  Amended..................................................6920
619.705-4  Amended..................................................6920
619.705-6-70  (a) and (b) amended...................................6920
619.803-70  Amended.................................................6921
619.803-71  Introductory text, (b) and (d) amended..................6921
619.804-3-70  Heading revised.......................................6921
619.805-2  (b) amended..............................................6921
619.811-1  (d)(1) through (4) amended...............................6921
619.811-3  (d) amended..............................................6921
619.812  (d) amended................................................6921
619.870  Added......................................................6921
622  Authority citation revised.....................................6913
622.404  Heading revised............................................6921
622.404-3  Amended..................................................6921
622.406-8  (a) amended..............................................6921
622.604--622.604-2 (Subpart 622.6)  Heading revised.................6921
622.1305--622.1310 (Subpart 622.13)  Heading revised................6921
623  Authority citation revised.....................................6913
623.204 (Subpart 623.2)  Added......................................6921
623.302-70  Amended.................................................6921
623.400 (Subpart 623.4)  Heading revised............................6921
624  Authority citation revised.....................................6913
624.202  Redesignated as 624.203....................................6921
624.203  Redesignated from 624.202..................................6921
625  Authority citation revised.....................................6913
625.103--625.105 (Subpart 625.1)  Heading revised...................6921
625.202--625.204 (Subpart 625.2)  Heading revised...................6921
625.7002  Amended...................................................6921
627  Authority citation revised.....................................6913
627.203--627.203-6 (Subpart 627.2)  Heading revised.................6921
627.201  Redesignated from 627.203; heading revised.................6921
627.201-2  Redesignated from 627.203-6; existing text designated 
        as (e); heading and new (e) revised.........................6921
627.203  Redesignated as 627.201....................................6921
627.203-6  Redesignated as 627.201-2................................6921
627.303--627.304-4 (Subpart 627.3)  Heading revised.................6922
627.303  Amended....................................................6922
627.304-4  Redesignated from 627.304-5; amended.....................6922
627.304-5  Redesignated as 627.304-4................................6922
628  Authority citation revised.....................................6913
628.101--628.106-6 (Subpart 628.1)  Heading revised.................6922
628.203--628.203-7 (Subpart 628.2)  Heading revised.................6922
628.305  (c) removed................................................6922
628.309-70  (b) amended; (c) removed................................6922
631  Authority citation revised.....................................6913
631.205-6  (g)(3) redesignated as (g)(6)............................6922
632  Authority citation revised.....................................6913
632.006-3  Added....................................................6922
632.705  Redesignated as 632.706....................................6922
632.705-70  Redesignated as 632.706-70..............................6922
632.706  Redesignated from 632.705..................................6922
632.706-70  Redesignated from 632.705-70............................6922
633  Authority citation revised.....................................6913
633.103  (d)(4) amended.............................................6922
633.203  Existing text designated as (b); (c) added.................6922
633.214-70  (a), (c) introductory text, (2) and (d) amended.........6922
633.270  Removed....................................................6922
636  Authority citation revised.....................................6913
636.202  Removed....................................................6922
636.513  (a) amended................................................6922
636.570  (a)(3) amended.............................................6922
636.602-4  Added....................................................6922
636.606  Added......................................................6922
637  Authority citation revised.....................................6913
637.102  (c) added..................................................6922
637.103  Existing text designated as (a)(2); (e) added..............6922
637.104  Existing text designated as (e)............................6922
637.104-70  Heading revised.........................................6923
637.104-71  Added...................................................6923
637.601  Amended....................................................6923

[[Page 416]]

642  Authority citation revised.....................................6913
642.1406-2--642.1406-2-70 (Subpart 642.14)  Removed.................6923
642.1503-70  Revised................................................6923
644  Authority citation revised.....................................6913
644.302 (Subpart 644.3)  Heading revised............................6923
645  Authority citation revised.....................................6913
645.107-70  (a)(1) and (3) amended..................................6923
647  Authority citation revised.....................................6913
647.305--647.305-71 (Subpart 647.3)  Added..........................6923
649  Authority citation revised.....................................6913
649.106  Amended....................................................6923
649.111  Added......................................................6923
652  Authority citation revised.....................................6913
652.204-70  Revised.................................................6924
652.206-70  Heading revised; clause amended.........................6924
652.228-70  Clause amended..........................................6924
652.228-71  Clause amended; Alternate I removed.....................6924
652.228-72  Removed.................................................6924
652.228-73  Removed.................................................6924
652.228-74  Removed.................................................6924
652.236-71  Clause amended..........................................6924
652.236-72  Clause amended..........................................6924
652.237-72  Clause amended..........................................6924
652.242-71  Redesignated as 652.247-70..............................6924
652.242-72  Redesignated as 652.247-71..............................6924
652.245-71  Clause amended..........................................6924
652.247-70  Redesignated from 652.242-71; introductory text and 
        clause amended..............................................6924
652.247-71  Redesignated from 652.242-72; introductory text and 
        clause amended..............................................6924

                                  2016

48 CFR
                                                                   81 FR
                                                                    Page
Chapter 3
301  Policy statement..............................................58859
303  Policy statement..............................................58859
333  Policy statement..............................................58859
Chapter 4
436  Authority citation revised.....................................7480
436.578  Revised....................................................7480
452  Authority citation revised.....................................7480
452.236-78  Revised.................................................7480
Chapter 5
501.106  Table amended (OMB numbers)........................36425, 41136
501.403  (c) amended................................................1532
501.404  (c) amended................................................1532
503.1004  (a) revised..............................................68335
504  Authority citation revised.....................................1532
504.1103 (Subpart 504.11)  Heading revised..........................3731
504.1103  (1) through (4) redesignated as (a) through (d); new (a) 
        revised; new (b) and (d) amended............................1532
509.105-2  (c) amended..............................................1532
509.403  Amended....................................................1532
509.405-1  (a) introductory text, (b) and (c) amended...............1532
509.405-2  Amended..................................................1532
511.204  (b)(2) and (c) revised....................................36429
515  Authority citation revised.............................36425, 41136
    Authority citation corrected from revised to continues to read
                                                                   42265
515.204  Revised...................................................36425
515.204-1  Removed.................................................36425
515.204-2  Removed.................................................36425
515.209-70  (b) redesignated as (a)(9); (a) introductory text and 
        new (9) revised; new (b) added.............................36425
515.408  (a) introductory text, (2), (b) introductory text, (c) 
        introductory text, (d), (e) introductory text and (1) 
        revised....................................................41136
515.506 (Subpart 515.5)  Removed...................................36425
    Correctly removed..............................................42265
515.7002 (Subpart 515.7)  Removed..................................36425
516.506  (d) added.................................................41136
517.109 (Subpart 517.1)  Heading revised...........................36422
517.109  Introductory text amended.................................36422
517.200  Revised...................................................36422
517.202  (a)(1) introductory text, (2)(i) and (3) amended; 
        (a)(2)(ii) revised; (a)(2)(iv) and (v) removed.............36423
517.203  Removed...................................................36423
517.207  Revised...................................................36423
517.208  (a) amended...............................................36423
519.7006  (b) amended...............................................1532
519.7007  (a)(3) and (b) amended....................................1532
522.001  Removed....................................................1532
522.804-2  Amended..................................................1532

[[Page 417]]

522.805  (b) and (c) amended........................................1532
536  Authority citation revised.....................................1532
536.101  Revised....................................................4594
536.271  Removed....................................................4594
536.570-3  Removed..................................................4594
536.570-5  Removed..................................................4594
536.570-6  Removed..................................................4594
536.570-7  Removed..................................................4594
536.570-10  Removed.................................................4594
536.570-11  Removed.................................................4594
536.570-14  Removed.................................................4594
536.602-1  (b) amended..............................................1532
537.110  (a) amended................................................1532
538.270  Revised...................................................41136
538.270-1  Added...................................................41136
538.271  (a) revised; (c) removed..................................41137
538.272  Revised...................................................41137
538.273  (a)(2) and (b)(2) revised.................................36429
    (b) revised....................................................41137
    (b)(1) amended; (b)(2) revised.................................43957
538.7000--538.7004 (Subpart 538.70)  Heading revised...............36429
538.7000  (d) added................................................36429
538.7001  Amended..................................................36429
538.7002  (d) revised; (e), (f) and (g) added......................36429
538.7003  Introductory text revised................................36430
538.7004  Revised..................................................36430
538.7100--538.7104 (Subpart 538.71)  Removed.......................36430
552.211-85  Introductory text amended..............................36430
552.211-86  Introductory text amended..............................36430
552.211-87  Introductory text amended..............................36430
552.211-88  Introductory text amended..............................36430
552.211-89  Introductory text and clause amended...................36430
552.212-71  Clause amended.........................................41137
552.215-70  Introductory text amended...............................1533
    Introductory text revised; clause amended......................36425
552.216-72  Clause amended..........................................1533
552.216-74  Clause amended..........................................1533
552.216-75  Added..................................................41137
552.217-70  Clause amended.........................................36423
552.217-73  Added..................................................36425
552.219-71  Clause amended.........................................68335
552.219-72  Clause amended.........................................68336
552.228-5  Clause amended...........................................1533
552.232-1  Introductory text amended................................1533
552.236-72  Removed.................................................4594
552.236-74  Removed.................................................4594
552.236-75  Removed.................................................4594
552.236-76  Removed.................................................4594
552.236-79  Removed.................................................4594
552.236-80  Removed.................................................4594
552.236-83  Removed.................................................4594
552.238-17  Clause amended; Alternate I removed....................36430
552.238-74  Clause amended....................................1533, 3731
    Alternate I added..............................................41138
552.238-75  Clause amended; Alternate I removed....................36430
    Alternate II added.............................................41139
    Clause amended; Alternate I removed; Alternate II redesignated 
as new Alternate I.................................................43957
552.238-76  Removed................................................36430
552.238-77  Heading revised; clause amended........................36430
552.238-78  Clause amended; Alternate I removed....................36430
552.238-79  Heading revised; clause amended........................36431
552.238-80  Removed................................................36431
552.238-81  Alternate I amended; Alternate II added................41139
570  Authority citation revised.....................................1533
570.102  Amended....................................................1533
570.108  (a) amended................................................1533
570.701  Table amended..............................................1533
552.270-13  Clause amended.........................................68336
Chapter 6
601.602-1  (b) amended.............................................24707
606.304  (a)(2) amended............................................24707
606.501--606.570 (Subpart 606.5)  Heading revised..................24707
606.501  (b) amended...............................................24707
608.405--608.405-3 (Subpart 608.4)  Added..........................24707
609.403-70  Revised................................................51125
609.405-1  Amended.................................................51125
609.405-70  Redesignated as 649.101-70 and transferred to Part 649
                                                                   51125
609.406-3  (a), (b)(2) through (7), (c)(2) and (d) revised.........51126
609.407-3  (b)(2) and (d) amended..................................51126
615.205-70  Amended................................................24707
616.103  Heading revised...........................................24707
616.504  Added.....................................................24707
623.506  Existing text designated as (e)...........................24707
627.304-1  Amended.................................................24707

[[Page 418]]

633.214-70 (Subpart 633.214)  Heading added........................24707
    Heading correctly removed......................................33602
633.214  Heading correctly added...................................33602
633.214-70  Heading revised........................................24707
649.1-1  Added.....................................................51126
649.101-70  Redesignated from 609.405-70...........................51125
    Heading revised................................................51126
651.701  Redesignated as 651.7001..................................24707
651.7001  Redesignated from 651.701................................24707
652.100-70  (a) and (b) amended....................................24707
652.200--652.247-72 (Subpart 652.2)  Heading revised...............24707
652.232-72  Introductory text amended..............................24707

                                  2017

  (Regulations published from January 1, 2017, through October 1, 2017)

48 CFR
                                                                   82 FR
                                                                    Page
Chapter 5
504.604  Removed......................................................47
516.506  (b) revised; (d) redesignated as (e); new (d) added........2250
552.216-74  Clause amended..........................................2250
552.216-76  Added...................................................2250


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