[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31211]


[Federal Register: December 28, 1994]


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DEPARTMENT OF STATE

Office of the Procurement Executive
48 CFR Parts 601, 602, 603, 604, 605, 606, 608, 609, 610, 613, 614, 
615, 616, 617, 619, 622, 623, 625, 627, 628, 631, 632, 633, 634, 636, 
637, 639, 642, 643, 647, 649, 651, 652, 653, and 670
[Public Notice 2120]
RIN 1400-AA31


Department of State Acquisition Regulation (DOSAR)

AGENCY: Office of the Procurement Executive, Department of State.

ACTION: Final rule.

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SUMMARY: This rule makes final a proposed rule published for comment on 
September 16, 1994 (59 FR 47584) amending the Department of State 
Acquisition Regulation (DOSAR). The final rule also contains 
miscellaneous amendments and corrections not proposed on September 16, 
1994, as outlined below.

EFFECTIVE DATE: December 28, 1994.

FOR FURTHER INFORMATION CONTACT:
Gladys Gines, Senior Procurement Analyst, Department of State, Office 
of the Procurement Executive, 2201 C Street NW, Suite 603, State Annex 
Number 6, Washington, DC 20522-0602, telephone (703) 516-1691. This is 
not a toll-free number.

SUPPLEMENTARY INFORMATION:

I. Background

    On September 16, 1994 (59 FR 47584), the Department of State (DOS) 
proposed amendments to the DOSAR to reflect numerous miscellaneous 
changes, additions, and deletions dealing with internal or 
administrative matters. The proposed rule also set forth policies and 
procedures for implementing procurement integrity requirements, the DOS 
standardization program, the metric system for DOS procurements, the 
Governmentwide commercial purchase card, an affirmative procurement 
program for recovered materials, Defense Base Act insurance 
requirements, and alternative dispute resolution. Finally, it raised 
the threshold for major systems acquisitions from $10,000,000 to 
$30,000,000.
    Comments were received from an association during the public 
comment period, which ended on November 15, 1994. The comments were 
primarily editorial in nature, and most of the comments were 
incorporated. This rule makes final the amendments, as revised, 
proposed on September 16.

II. Disposition of Comments

    Comments received which were not editorial in nature dealt with the 
Department's determination to establish a threshold of $10 million for 
the public announcement of contract awards by the Office of Legislative 
Affairs and section 615.413 of the DOSAR authorizing the release of 
proposals outside the Government for evaluation purposes.
    With respect to the first comment, FAR 5.303(a) establishes a 
threshold of $3 million for public announcement unless agency 
regulations specify another dollar threshold. DOSAR 605.303(a) 
specified a threshold of $10 million. The commenter stated that the 
Department's $10 million threshold defeats a purpose of public 
announcement of contract awards, i.e., making information available to 
the taxpayer, Congress, and the companies interested in doing business 
with the winning contractor. However, we believe that companies 
interested in doing business with the winning contractor receive most 
of their information on contract awards through the Commerce Business 
Daily award synopsis. Since the Department's most visible contracts 
exceed $10 million, we believe that the threshold is appropriate.
    The commenter questioned the inclusion of DOSAR 615.413 in light of 
the recently enacted Federal Acquisition Streamlining Act, section 
6002, which places restrictions on the use of paying non-Government 
personnel to evaluate proposals. The commenter is correct; the Act 
states that the Government must determine that Government personnel 
with adequate training are not readily available. The commenter 
suggested that this section of the DOSAR be deferred until the proposed 
regulations implementing section 6002 are published. The DOSAR, as well 
as all other agency procurement regulations, will need to be revised 
when the regulations implementing the Federal Acquisition Streamlining 
Act are published. In light of this, we prefer to proceed with the 
implementation of this section, which will be revised, if necessary, 
along with other sections of the DOSAR to implement the requirements of 
the Act.

III. Amendments Not Contained in Proposed Rule

    The final rule also contains amendments or corrections to the 
proposed rule. These amendments are a result of several internal 
changes which have taken place during the comment period. They are as 
follows: 601.602-3-70(e) (to add language distinguishing ratifications 
under $1,000, which was inadvertently omitted from the proposed rule); 
601.603-70(a)(1) (to add language allowing the Procurement Executive, 
or designee, to delegate to a contracting officer, on a case-by-case 
basis, the authority to award a contract which exceeds the contracting 
officer's warrant authority); 601.603-70(a)(8) (to add the words ``as 
the HCA'' which were inadvertently omitted from the proposed rule); 
604.7002(a) (to clarify when options are to be reviewed by A/OPE); 
606.101-70 (to add language clarifying that a Commerce Business Daily 
synopsis is not required for domestic leases); 606.302-1 (to delete the 
language in paragraph (b)(1) of the proposed rule); 606.302-4 (to add 
language that clarifies that when guard services can only be obtained 
from the host government, the exemption under FAR 6.302-4, 
International Agreement, applies); 606.302-6 (to change the language to 
reflect current clearance points); 606.304(a)(2) (to clarify that the 
Department Competition Advocate must approve proposed contracts over 
$100,000 but not exceeding $1,000,000 for domestic contracting 
activities that do not have a competition advocate. This section also 
removes the requirement for approvals above the contracting officer for 
contracts under $100,000); 610.002-70(c) (to re-arrange the definitions 
in alphabetical order); 613.505-2 (to allow the use of the OF-206 and 
OF-206A for overseas contracting activities); 614.201-7-70(c), 615.106-
70 and 652.214-71 (to add DOSAR provision 614.214-71, Authorization to 
Perform. This was a previous DOSAR clause which had been deleted in the 
proposed rule. It has been decided to re-instate it as a solicitation 
provision as opposed to a contract clause); 623.302-70 (to clarify that 
only work which affects the safety/health of post personnel shall be 
required to comply with the Department's safety/health guidelines); 
623.480 (b), (d), (e), (f), (g), (h), and (i) (to add the words 
``solicitations and'' preceding the word ``contract''); 628.305, 
628.306, and 628.307 (to add the words ``or residents'' after the words 
``United States citizens'', which was inadvertently omitted from the 
proposed rule. Section 628.305(d) is also revised to add language 
pertaining to a recent waiver received from the Department of Labor for 
certain contract employees); 634.001(c) (to change the $10,000,000 
amount to $30,000,000 which was inadvertently omitted from the proposed 
rule); 652.228-71(c) (to clarify that the Department has obtained a 
waiver from the Department of Labor); 652.232-70 and 652.232-71 (to 
correct the introductory text as stated in the prescriptions); and, 
652.237-71 (to add language as to where contractors may submit packages 
when overseas). These amendments and corrections do not affect the 
public, and therefore good cause exists to publish the amendments for 
effect without first soliciting public comment because prior public 
comment is unnecessary. The amendments are for the purpose of 
implementing internal changes.

IV. Impact

    The Department of State certifies that this regulation will not 
have a significant economic impact on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

V. Paperwork Reduction Act

    The information collection requirements contained in this rule were 
approved under the Paperwork Reduction Act of 1980 by OMB, and were 
assigned control number 1405-0050.

List of Subjects in 48 CFR Parts 601, 602, 603, 604, 605, 606, 608, 
609, 610, 613, 614, 615, 616, 617, 619, 622, 623, 625, 627, 628, 
631, 632, 633, 634, 636, 637, 639, 642, 643, 647, 649, 651, 652, 
653, 670

    Government procurement, Department of State Acquisition Regulation 
(DOSAR).
    Accordingly, title 48, chapter 6 of the Code of Federal Regulations 
is amended as follows:
    1. The authority citation for 48 CFR Parts 601, 602, 603, 604, 605, 
606, 608, 609, 613, 614, 615, 616, 617, 619, 622, 623, 625, 628, 632, 
633, 634, 636, 637, 642, 643, 652, and 653 is revised to read as 
follows:

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

SUBCHAPTER A--GENERAL

PART 601--DEPARTMENT OF STATE ACQUISITION REGULATIONS


601.000  [Amended]

    2. Section 601.000 is amended by removing the last sentence.
    3. A new subpart 601.1, consisting of sections 601.101 and 601.105 
is added to read as follows:

Subpart 601.1--Purpose, Authority, Issuance

Sec.
601.101  Purpose.
601.105  OMB approval under the Paperwork Reduction Act.

Subpart 601.1--Purpose, Authority, Issuance

    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).


601.105  OMB Approval under the Paperwork Reduction Act.

    The Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520) requires 
that Federal agencies obtain approval from the Office of Management and 
Budget (OMB) before collecting information from ten (10) or more 
members of the public. The information and recordkeeping requirements 
contained in this regulation have been approved by OMB under OMB 
Control Number 1405-0050.
    4. Section 601.201-1 is amended by inserting the parenthetical 
``(A/OPE)'' after the phrase ``The Office of the Procurement 
Executive'' in the first sentence; by removing the word ``said'' and 
inserting ``a'' in its place in the second sentence; and by removing 
the words ``The Office of Procurement Executive'' and inserting the 
acronym ``A/OPE'' in their place in the third sentence.
    5. Section 601.301 is revised to read as follows:


601.301  Policy.

    (a)(1) The Assistant Secretary of State for Administration is the 
agency head for the purposes of FAR 1.301 (see Delegation of Authority 
No. 120 (34 FR 18095, October 30, 1969), as amended by Delegation of 
Authority No. 120-4 (59 FR 38022, July 26, 1994)). Under Delegation of 
Authority No. 120-5 (59 FR 62771, December 6, 1994), 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.
    (2) The Department's procurement directives system consists of the 
following components:
    (i) The DOSAR;
    (ii) Procurement Policy Directives (PPDs), which provide basic 
policy or procedural guidance and direction. PPDs are issued on an 
interim basis, and are subsequently incorporated into the next revision 
of the DOSAR; and
    (iii) Procurement Information Bulletins, which provide general 
information on topics of interest to contracting personnel.
    (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.
    6. Section 601.302 is amended in paragraph (a) by adding the phrase 
``and leases of real and personal property,'' after the words 
``including construction''; removing the comma after the word 
``construction''; and adding the following phrase to the end of the 
paragraph:'', or the Foreign Service Buildings Act of 1926, as amended 
(22 U.S.C. 292 et seq.).''
    7. Section 601.303 is amended by revising paragraph (c) to read as 
follows:


601.303  Publication and codification.

* * * * *
    (c) The DOSAR shall be referenced in the same manner as described 
at FAR 1.104-2(c).


601.403  [Amended]

    8. Section 601.403 is amended by removing the second sentence.


601.404  [Amended]

    9. Section 601.404 is amended by removing the second sentence.


601.405  [Amended]

    10. Section 601.405 is amended by removing the second sentence.


601.470  [Amended]

    11. Section 601.470 is amended by removing the second sentence.


601.471  [Amended]

    12. Section 601.471 is amended by removing the parenthetical ``(see 
601.603-70)'' in the first sentence of paragraph (a) introductory text; 
and by revising paragraphs (a)(1) and (b) to read as follows:


601.471  Procedures.

    (a) * * *
    (1) The nature of the deviation requested, including whether it is 
an individual or class deviation;
* * * * *
    (b) The head of the contracting activity shall also submit all 
pertinent documentation supporting the request.
* * * * *
    13. Section 601.570 is revised to read as follows:


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.
    14. Section 601.602-1 is amended in paragraph (a) by removing the 
word ``let'' and inserting the word ``awarded'' in its place; by 
removing the words ``including interagency agreements'' and inserting 
in their place the words ``including FAR-covered interagency 
acquisition agreements'' in the first sentence in paragraph (b); and by 
adding the words ``real and'' preceding ``personal property'' in 
paragraph (b) in the first instance of appearance.
    15. Section 601.602-3 is amended by adding at the end of paragraph 
(b)(1) the words ``, e.g., withdrawal of a contracting officer's 
warrant or a Contracting Officer's Representative delegation or 
collection action.''
    16. Section 601.602-3 is further amended by revising paragraph 
(b)(2) to read as follows; and by adding the following sentence to the 
end of paragraph (c) as follows:


601.602-3  Ratification of unauthorized commitments.

* * * * *
    (b) * * *
    (2) The head of the contracting activity is delegated the authority 
to serve as the ratifying official for unauthorized contractual 
commitments not exceeding $1,000. The head of the contracting activity 
may refer such actions to the Procurement Executive for ratification if 
he/she so chooses. All unauthorized commitments in excess of $1,000 
shall be ratified by the Procurement Executive.
* * * * *
    (c) * * * However, the contracting officer is encouraged to obtain 
legal concurrence if there is a question of proprietary or a legal 
issue.
    17. Section 601.602-3-70 is revised to read as follows:


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, 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, and 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.
    (2) When the person who made the unauthorized commitment 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 
which 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.
    (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 (c)(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.
    (f)(1) When a ratification is approved, the ratifying official 
shall prepare a letter to the contractor involved in the ratification. 
The letter shall state the reason(s) why the ratification was approved 
and provide cautionary language to the contractor regarding future 
instances of ratification actions.
    (2) When a ratification is not approved, the head of the 
contracting activity shall prepare a letter to the contractor advising 
that the ratification was not approved. The letter shall cite the 
reasons for the disapproval.
    18. Section 601.603-3 is revised to read as follows:


601.603-3  Appointment.

    (a) 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. 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) Contracting officers shall be appointed in accordance with the 
Procurement Career Management Guidebook, available from A/OPE.
    (c) Non-Federal employees. Only United States Government direct-
hire employees who are U.S. citizens shall be appointed as contracting 
officers. Personal services contractors, Foreign Service Nationals, and 
Third Country Nationals are not eligible for appointment as DOS 
contracting officers.
    19. Section 601.603-70 is revised to read as follows:


601.603-70  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; to sell personal property; and 
to lease real property. The Principal Officer, the Administrative 
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.
    (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 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 Foreign Buildings. The authority to enter into and 
administer contracts pursuant to the Foreign Service Buildings Act of 
1926, as amended (22 U.S.C. 292 et seq.), is delegated to the Deputy 
Assistant Secretary of State for Foreign Buildings and to the Director 
for Acquisitions as the HCA.
    (3) Office of Acquisition. The authority to enter into and 
administer contracts for the expenditure of funds involved in the 
acquisition of supplies and nonpersonal services is delegated to the 
Director and Deputy Director as the HCA.
    (4) 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.
    (5) 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.
    (6) 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.
    (7) Moscow Embassy Building Control Office. The authority to enter 
into and administer contracts for the planning, design, and 
construction of the embassy office building in Moscow is delegated to 
the Director, Moscow Embassy Building Control Office as the HCA.
    (8)  Diplomatic Telecommunication Service--Program Office. The 
authority to enter into and administer contracts for the leasing or 
purchase of telecommunications services, circuits, subsystems, and 
associated professional services is delegated to the Chief, Acquisition 
Branch as the HCA.
    (9) Regional Procurement Support Offices. (i) The authority to 
enter into and administer contracts for the expenditure of funds 
involved in the acquisition of supplies, equipment, publications, 
services, execute leases for real property, and to sell personal 
property on behalf of overseas posts is delegated to each Director, 
Regional Procurement Support Office (RPSO) as the HCA at the following 
locations:
    (A) RPSO Bonn in conjunction with Embassy Bonn;
    (B) RPSO Tokyo in conjunction with Embassy Tokyo;
    (C) RPSO Singapore in conjunction with Embassy Singapore; and,
    (D) RPSO Miami in conjunction with the Miami Regional Center.
    (ii) The RPSOs are under the purview and guidance of A/OPE.
    (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 Office of 
Acquisition. 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 schedule contracts 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 schedule contracts 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 schedule 
contracts 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 schedule contracts pursuant to section 5, Title 
I, of the Department of State Basic Authorities Act of 1956, as 
amended.
    (5) Bureau for Refugee Programs. The authority to enter into and 
administer simplified acquisition transactions under FAR Part 13 and 
orders against schedule contracts pursuant to the Migration and Refugee 
Assistance Act of 1962, as amended, and Executive Order 11077, dated 
January 22, 1963.
    (6) Bureau of International Narcotics Matters. The authority to 
enter into and administer simplified acquisition transactions under FAR 
Part 13, orders against schedule contracts 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, including any amendments thereto.
    20. Section 601.670 is added to read as follows:


601.670  Procurement Career Management Program.

    (a) Policy. The Department's Procurement Career Management Program 
is designed to improve the quality of contracting in the Department 
through the development and maintenance of professional contracting 
skills in accordance with the Federal Acquisition Institute's Contract 
Specialist Workbook and related guidance.
    (b) Procedures. Details of the Department's Procurement Career 
Management Program are described in the Department of State Procurement 
Career Management Guidebook. A/OPE shall provide guidance and 
oversight.

PART 602--DEFINITIONS OF WORDS AND TERMS


602.101-70  [Amended]

    21. In section 602.101-70, the definition of ``Consolidated 
Receiving Point'' is amended in the first sentence by removing the 
words ``packing firm employed by'' and inserting the words ``contractor 
under contract to'' in their place, and by removing the second 
sentence; the definition of ``Despatch Agency'' is amended by removing 
the words ``Office of Supply, Transportation and Procurement'' and 
inserting the words ``Office of Supply and Transportation'' in their 
place, by removing the word ``and'' preceding ``San Francisco, 
California'', and by adding the words ``; and, Seattle, Washington.'' 
to the end of the second sentence; and, the definition of ``Third 
Country Procurement'' is removed.

Subpart 602.2 (602.201 and 602.201-70) [Removed]

    22. Subpart 602.2, consisting of sections 602.201 and 602.201-70, 
is removed.

PART 603--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    23. Subpart 603.1 is added to read as follows:

Subpart 603.1--Safeguards

Sec.
603.104  Procurement integrity.
603.104-5  Disclosure, protection, and marking of proprietary and 
source selection information.
603.104-9-70  Certification requirements.
603.104-11  Processing violations or possible violations.

Subpart 603.1--Safeguards


603.104  Procurement integrity.


603.104-5  Disclosure, protection, and marking of proprietary and 
source selection information

    (d)(1) The head of the contracting activity is the agency head's 
designee for the purposes of FAR 3.104-5(d)(1).
    (2) The following classes of persons may be authorized access to 
proprietary or source selection information by the contracting officer 
or head of the contracting activity when such access is necessary to 
the conduct of a procurement:
    (i) Clerical personnel directly involved in the procurement;
    (ii) Supervisors in the contracting officer's chain of command;
    (iii) Contracting personnel involved in reviewing or approving the 
solicitation, contract, or contract modification; and
    (iv) Personnel in the following offices: Office of Small and 
Disadvantaged Business Utilization (A/SDBU), Office of the Legal 
Adviser (L/BA), Office of Legislative Affairs, Office of the Inspector 
General, the Small Business Administration, and the Office of Federal 
Contract Compliance Programs (Department of Labor).


603.104-9-70  Certification requirements.

    (b) Competing contractors are required to complete the 
``Certificate of Procurement Integrity'' and submit it with their bids 
under IFBs. For RFPs, the apparent successful offeror only need submit 
the certification. For RFPs, the contracting officer shall contact the 
apparent successful offeror before award and request that the 
certificate be submitted within five (5) working days if the 
certificate was not submitted with the initial proposal. A bid 
submitted under an IFB that lacks a signed certificate is 
nonresponsive, and an apparent successful offeror under an RFP who does 
not submit the required certificate is ineligible for award.


603.104-11  Processing violations or possible violations.

    (a) The contract specialist shall report any violation or possible 
violation of the procurement integrity requirements immediately to the 
contracting officer and the Office of the Inspector General. The 
contracting officer shall follow the procedures in FAR 3.104-11 
regarding such violations.


603.203  [Amended]

    24. Section 603.203 is amended by removing the parenthetical ``(see 
601.603-70)'' in the last sentence.


603.303  [Amended]

    25. Section 603.303 is amended by removing the parenthetical ``(see 
601.603-70)'' from the first sentence of paragraph (c).
    26. Section 603.601 is added to read as follows:


603.601  Policy.

    (a) It is Department policy not to award contracts to Federal 
employees, or businesses substantially owned or controlled by Federal 
employees.
    27. Section 603.670 is added to read as follows:


603.670  Solicitation provision and contract clause.

    The contracting officer shall insert the clause at 652.203-70, 
Prohibition Against the Use of Federal Employees, in all solicitations 
and contracts, and the provision at 652.203-71, Certification Regarding 
Federal Employment, in all solicitations.
    28. Subpart 603.7 is added to read as follows:

Subpart 603.7--Voiding and Rescinding Contracts

Sec.
603.704  Policy.
603.705  Procedures.

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.


603.705  Procedures.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 3.705.

PART 604--ADMINISTRATIVE MATTERS

    29. Section 603.202 is amended in the first sentence by revising 
the words ``Despatch Office'' to read ``Despatch Agent''; and, by 
adding the following sentence to the end of the section:


604.202  Agency distribution requirements.

    * * * Copies of contracts and modifications awarded as small 
business or 8(a) set-asides shall be sent to A/SDBU.
    30. Section 604.7002 is amended by revising paragraphs (a) and (b) 
to read as follows; and, by removing the words ``the Office of the 
Procurement Executive'' in paragraph (c) and substituting ``A/OPE'' in 
their place:


604.7002  Procedures.

    (a) Prior to issuance of a solicitation or a solicitation amendment 
which constitutes a substantive change, award of a contract, or 
execution of a contract modification, any of which is estimated to 
exceed the thresholds indicated below, the contracting officer shall 
forward the proposed contractual action to A/OPE for review. For 
contract modifications, the contracting officer shall submit such 
actions in accordance with 643.102-70(b). Modifications exercising 
contract options, where the options were part of the original 
solicitation/contract which was reviewed and approved by A/OPE, are 
exempt from this review requirement:
    (1) For domestic contracting activities, all actions over 
$5,000,000. There is no review threshold when the contracting 
activity's quality assurance plan has been approved by A/OPE;
    (2) For overseas posts with contracting officers who have been 
issued standard name warrants, all actions over $250,000, with the 
exception of those actions for local guard services, which require 
review at $100,000 and above; and
    (3) For overseas posts with contracting officers who have been 
issued provisional name warrants, all actions over $100,000.
    (4) When calculating the threshold for application of paragraphs 
(a)(1) through (3) of this section, include the value of the base year 
plus all option years.
    (b) A/OPE shall document the scope and extent of the review and 
shall submit written recommendations to the contracting officer on each 
proposed contract action reviewed. In the event the contracting officer 
and the reviewer cannot reach agreement on the recommendation(s), the 
contracting officer shall prepare an appeal file to be transmitted to 
the Procurement Executive. The appeal shall be approved by an 
individual one management level above the contracting officer prior to 
its transmission to the Procurement Executive. A resolution shall be 
worked out between the contracting activity and the Procurement 
Executive. For purposes of this section, the officer who may transmit 
the appeal file to the Procurement Executive shall not be the same 
individual who will sign the contractual document. For overseas posts, 
where the contracting officer is the head of the contracting activity, 
the approval authority shall be the Principal Officer.
* * * * *

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

PART 605--PUBLICIZING CONTRACT ACTIONS

    31. Section 605.202-70 is amended to add the phrase ``, and work is 
performed outside'' preceding the words ``the United States'' in the 
second sentence of paragraph (a); by revising paragraph (b); by 
amending paragraph (c)(1) to add the phrase ``or other agency'' after 
the words ``the requirements office'' in the first sentence; by 
amending paragraph (c)(2) introductory text to remove the parenthetical 
``(see 601.603-70)''; revising paragraphs (c)(2) (i) and (ii); by 
revising paragraph (d); and by adding new paragraph (e) to read as 
follows:


605.202-70  Foreign acquisitions.

* * * * *
    (b) Policy. Under certain conditions, waiver of the requirement to 
publish in the CBD notices of proposed procurement actions is necessary 
for acquisitions by overseas posts when these acquisitions are made 
from sources outside, and work is performed outside the United States, 
its possessions and Puerto Rico. This policy is pursuant to 41 U.S.C. 
416 et seq. and 15 U.S.C. 637 et seq. This policy applies only to DOS 
contracts and any contracts awarded in behalf of other Federal agencies 
using appropriated funds.
    (c) * * *
    (2) * * * (i) If the head of the contracting activity determines 
that publication of a CBD notice is appropriate and reasonable, the 
notice shall be published in accordance with FAR 5.2.
    (ii) If the head of the contracting activity determines that 
publication of a CBD notice is inappropriate or unreasonable, that 
official may waive the CBD notice requirements of FAR Subpart 5.1. 
Delay, due to poor acquisition planning, is not a sufficient reason to 
waive the CBD notice. This determination shall be in writing and made 
in consideration of such factors as overseas delivery, installation, 
maintenance or replacement requirements, special product of performance 
specifications, and security clearance requirements. The determination 
and findings shall be included in the contract file. Competition in 
such acquisitions, including the use of written solicitations, shall be 
obtained in all cases to the extent feasible and consistent with FAR 
Part 6 and DOSAR Part 606. 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. CBD waiver authority does not apply to guard 
service contracts that exceed $250,000. Guard service contracts that 
exceed $250,000 shall be synopsized in the CBD. Option year prices 
shall be included when computing the applicability of this threshold.
    (e) Limitations. If the head of the contracting activity waives the 
CBD synopsis on the basis of urgent or compelling reasons, the 
acquisition may only fulfill the immediate requirements. Therefore, 
option periods of performance, or quantities which exceed immediate 
needs, are not allowable.
    32. Section 605.207 is amended by adding a new paragraph (a)(1) to 
read as follows:


605.207  Preparation and transmittal of synopsis.

    (a)(1) Contracting officers at overseas posts shall submit synopses 
of proposed contract actions to A/OPE for electronic transmittal to the 
CBD.
    33. Subpart 605.3 is added to read as follows:

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 Office of Legislative Affairs 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.
    34. Section 605.403 is added to read as follows:


605.403  Requests from members of Congress.

    (a) The Procurement Executive is the agency head for the purposes 
of FAR 5.403(a).
    35. Section 605.502 is revised to read as follows:


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.

PART 606--COMPETITION REQUIREMENTS

    36. Section 606.101-70 is amended by revising the second sentence 
to read as follows:


606.101-70  Foreign acquisitions not synopsized.

    * * * A Commerce Business Daily synopsis is not required for 
domestic leases, pursuant to 48 CFR 505.202 and 570.202(a).
    37. Section 606.302-1 is added to read as follows:


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).
    38. Section 606.302-4 is added to read as follows:


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.
    39. Section 606.302-6 is added to read as follows:


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 E.O. 12356 and FAR 6.302-6 have been 
met. The Chief, Information Security Programs Division, Office of 
Information Security Technology, Bureau of Diplomatic Security, 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 E.O. 12356 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 Commerce 
Business Daily;
    (ii) Why the CBD synopsis 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 12356 and FAR 6.302-6''.
    (2) Any acquisition involving national security information shall 
be publicized in the Commerce Business Daily 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.


606.303-1  [Amended]

    40. Section 606.303-1 is amended by removing the words ``the Office 
of the Procurement Executive'' and inserting the acronym ``A/OPE'' in 
their place.
    41. Section 606.304 is amended by adding new paragraphs (a)(2) and 
(d) to read as follows:


606.304  Approval of the justification.

    (a) (2) The approval authority for a proposed contract over 
$100,000 but not exceeding $1,000,000 for domestic contracting 
activities that do not have a competition advocate is the Department 
Competition Advocate.
    (d) The estimated dollar value of all options shall be included in 
determining the approval level of a justification.
    42. Section 606.304-70 is revised to read as follows:


606.304-70  Acquisitions by overseas posts.

    The Departmental Competition Advocate 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.
    43. Section 606.370 is added to read as follows:


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. 
253(c)(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. 253(c)(1) 
shall be supported by the written justification described in FAR 6.303. 
The contracting officer, requirements office, procuring activity 
competition advocate, 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 Administrative Officer at each post is the procuring 
activity competition advocate 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 the standardization should 
be continued, revised or canceled.
    44. Section 606.501 is revised to read as follows:


606.501  Requirement.

    (a) The Procurement Executive is the head of the agency for the 
purposes of FAR 6.501 and designates the Department Competition 
Advocate.
    (b) Contracting activity competition advocates have been designated 
for A/FBO and A/OPR/ACQ. The Department Competition Advocate is the 
activity competition advocate for all other domestic contracting 
activities.
    45. Section 606.570 is added to read as follows:


606.570  Solicitation provision.

    The contracting officer shall insert the provision at 652.206-70, 
Competition Advocacy/Ombudsman, in all solicitations over the 
simplified acquisition limitation.

PART 608--REQUIRED SOURCES OF SUPPLIES AND SERVICES

Subpart 608.4 (608.402, 608.402-70)--[Removed]

    46. Subpart 608.4, consisting of sections 608.402 and 608.402-70, 
is removed.

PART 609--CONTRACTOR QUALIFICATIONS


609.202  [Amended]

    47. Section 609.202 is amended by removing the parenthetical ``(see 
601.603-70)''.


609.404  [Amended]

    48. Section 609.404 is amended by removing the words ``The Office 
of the Procurement Executive'' and inserting the acronym ``A/OPE'' in 
their place in the first sentence.
    49. Section 609.405 is revised to read as follows:


609.405  Effect of listing.

    (a) The Procurement Executive is the agency head's designee for the 
purposes of FAR 9.405(a).
    (d) In accordance with a FAR class deviation granted by the 
Procurement Executive, the following actions apply to actions awarded 
by DOS contracting activities:
    (1) (i) Contracting officers at overseas contracting activities may 
rely on the debarment certification submitted by bidders/offerors (FAR 
52.209-5) as proof of eligibility for award when access to the current 
``Lists of Parties Excluded from Procurement Programs'' is not 
reasonably available. For contracts which require A/OPE review and 
approval, the contracting officer should request that A/OPE perform the 
required review if the list is not available.
    (4) (i) For procurement actions (both domestic and overseas) that 
do not exceed the simplified acquisition limitation, contracting 
officers need not consult the ``List of Parties Excluded from 
Procurement Programs'' prior to award. The list should be consulted 
whenever the contracting officer has reason to believe that a proposed 
contractor may appear on the list.
    (ii) Contracting officers at domestic contracting activities shall 
review the ``List of Parties Excluded from Procurement Programs'', 
either in hard copy or electronic form, prior to award.
    50. Section 609.405-70 is amended by removing paragraph (c); by 
designating paragraphs (a) and (b) as (b) and (c), respectively; and by 
designating the introductory paragraph as paragraph (a) and revising it 
to read as follows:


609.405-70  Termination action decision.

    (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.
* * * * *
    51. Part 610 is added to subchapter B to read as follows:

PART 610--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE 
DESCRIPTIONS

Sec.
610.002  Policy.
610.002-70  Metric system implementation.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.


610.002  Policy.


610.002-70  Metric system implementation.

    (a) Policy. The Omnibus Trade and Competitiveness Act of 1988 (Pub. 
L. 100-418) requires Federal agencies to establish implementing 
guidelines pursuant to metric policy established under Sec. 5164 of the 
Act to adopt the metric system as the preferred system of weights and 
measurements for United States trade and commerce. This subsection 
establishes the Department of State metric conversion guidelines for 
transition from the traditional system to the metric system of weights 
and measurements.
    (b) Applicability. This subsection applies to all DOS procurements, 
except to the extent that such use is impractical or is likely to cause 
significant inefficiencies or loss of markets to United States firms.
    (c) Definitions.
    Dual systems 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 systems means the use of both traditional and hard metric 
values in specifications, standards, supplies and services. For 
example, an engine with internal parts in metric dimensions and 
external fittings or attachments in inch-pound dimensions.
    Measurement sensitive means any item whose application or meaning 
depends substantially on some measured quantity. For example, 
measurement sensitive items include product or performance criteria and 
standards binding on others, such as emission levels, size and weight 
limitations on items in commerce.
    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.
    Metric system means the International System of Units (Le System 
International d'Unites (SI)) of the International Bureau of Weights and 
Measures. The units are listed in Federal Standard 376A, Preferred 
Metric Units for General Use by the Federal Government.
    Soft metric means the result of mathematical conversion of inch-
pound measurements to metric equivalents in specifications, standards, 
supplies and services. 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 Pub. L. 100-418.
    (2) All DOS contracting activities shall use the metric system in 
procurement 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 
for the National Technical Information Service (#PB89-226922); and
    (ii) Contracting officers shall return all statements of work/
specifications that are not expressed in some form of metric terms to 
the requirements office that prepared the documents, if the contract is 
expected to exceed $500,000, unless the requirements office has 
forwarded to the contracting activity for approval, in a waiver format 
prescribed by the head of the contracting activity, a justification for 
the use of non-metric specifications/statements of work. Option year 
prices shall be considered when computing the $500,000 threshold.
    (4) Waivers are not required when ordering from Federal Supply 
Schedules, or if the contract is not expected to exceed $500,000.
    (5) Valid justifications for non-metric specifications/word 
statements include, but are not limited to:
    (i) Existing specifications and standards in inch-pound units, 
unless conversions is necessary or advantageous to the Government. 
Unnecessary retrofit of existing systems with new metric components 
shall be avoided if the total cost of the retrofit, including redesign 
costs, exceeds $25,000;
    (ii) When metric is not the accepted industry system with respect 
to a business-related activity, soft metric, hybrid or dual system may 
be used during transition to hard metric; and
    (iii) When the use of metric is impractical or is likely to cause 
significant inefficiencies or loss of markets to United States firms.
    (6) The contracting officer shall review and, if acceptable, 
approve the waiver prepared by the requirements office prior to the 
release of a solicitation that incorporates a specification that is not 
written in some form of metric, if the resultant contract is expected 
to exceed $500,000. 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.
    (7) The Department's direct in-house operating metric conversion 
costs shall be handled as normal operating expenses rather than as 
special one time costs or included as a budget line item. However, 
these costs are to 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.
    (10) Shipping allowances, bills of lading and other shipping 
documents shall be expressed in metric or dual units.

SUBCHAPTER C--SUBCONTRACTING METHODS AND CONTRACT TYPES

PART 613--SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES


613.103-70  [Amended]

    52. Section 613.103-70 is amended by removing paragraph (a) and 
removing the paragraph ``(b)'' designation from paragraph (b).
    53. Section 613.505-1 is added to read as follows:


613.505-1  Optional Form (OF) 347, Order for Supplies or Services, and 
Optional Form 348, Order for Supplies or Services--Continuation.

    The OF-347 and OF-348 shall be mandatory for use by domestic 
contracting activities for issuing simplified acquisitions and delivery 
orders, unless ordering against another Federal agency contract which 
stipulates a different form (e.g., DD-1155, Order for Supplies or 
Services). The OF-347 and OF-348 are the preferred forms for issuing 
simplified acquisitions and delivery orders by overseas contracting 
activities; however, use of the OF-206 is authorized until such time 
that electronic commerce requires use of the OF-347 or related form. 
The OF-347 may also be used as a voucher.
    54. Section 613.502-2 is revised to read as follows:


613.505-2  Agency order forms in lieu of Optional Forms 347 and 348.

    (a) In lieu of the OF-347 and OF-348, DOS overseas contracting 
activities may use the Optional Form 206, Purchase Order, Receiving 
Report and Voucher, and Optional Form 206A, Continuation Sheet 
(illustrated at 653.303-206 and 653.303-206A, respectively).
    (b) When using the OF-206, contracting activities may use Optional 
Form 127, Receiving and Inspection Report (illustrated at 653.303-127), 
for that purpose.
    55. Section 613.505-70 is added to read as follows:


613.505-70  File folders for simplified acquisitions, delivery orders, 
and blanket purchase agreements.

    Contracting officers shall use Forms DST-1918, Purchase Order File; 
DST-1919, Delivery Order File; and, DST-1920, Blanket Purchase 
Agreement (BPA) File, to record relevant data and document those 
purchases, respectively.
    56. Section 613.507-70 is amended by adding the following sentence 
at the end to read as follows:


613.507-70  DOSAR clauses.

* * * The DOSAR clauses may be incorporated without setting out full 
text.
    57. Subpart 613.6-70 is added to read as follows:

Subpart 613.6-70--Governmentwide Commercial Purchase Card Program


613.601-70  Policy.

    (a) Scope. This subsection sets forth policy for use of the 
Government purchase card when making small purchases.
    (b) Policy. It is the Department's policy that:
    (1) The purchase card shall be used in preference to other methods 
of procurement (particularly BPAs) for purchases up to $2,500;
    (2) The purchase card shall be issued primarily to personnel 
outside of procurement offices to purchase products and services up to 
ten percent of the small purchase threshold quickly with a minimum of 
paperwork and without having to send an individual requisition to a 
procurement office;
    (3) The purchase card may be used in procurement offices for 
purchases up to the small purchase limitation; and,
    (4) Open market purchases made with the purchase card shall be from 
small business, unless otherwise exempted by the FAR.
    (c) Procedures. Specific procedures for implementation shall be 
developed by each contracting activity that wishes to participate in 
the program. These procedures shall be approved by A/OPE prior to 
implementation.

Subpart 614--Sealed Bidding


614.201-7-70  [Amended]

    58. Section 614.201-7-70 is amended by removing paragraph (a)(1); 
by redesignating paragraph (a)(2) as paragraph (a); by deleting the 
clause number ``652.214-71'' and inserting ``652.214.-70'' in its place 
paragraph (b); by revising paragraph (c) to read as follows; and by 
removing paragraph (d):


614.201-7-70  DOSAR contract clauses.

    (a) * * *
    (b) * * *
    (c) When contracting by sealed bidding, the contracting officer 
shall insert the provision at 652.214-71, Authorization to Perform, in 
all solicitations for contracts to be awarded or performed overseas.


614.404-1  [Amended]

    59. Section 614.404-1 is amended by removing the parenthetical 
``(see 601.603-70)''.

PART 615--CONTRACTING BY NEGOTIATION


615.106-70  [Amended]

    60. Section 615.106-70 is amended by removing the phrase ``652.214-
70, Language Version,''; and by redesignating clause numbers 
``652.214.71'' and ``652.214-72'' to read ``652.214-70'' and ``652.214-
71'', respectively.
    61. Subparts 615.4 and 615.5 are added to read as follows:
Subpart 615.4--Solicitation and Receipt of Proposals and Quotations
Sec.
615.403  Solicitation mailing lists.
615.404  Presolicitation notices and conferences.
615.406  Preparing requests for proposals (RFP's) and requests for 
quotations (RFQ's).
615.406-1  Uniform contract format.
615.413  Disclosure and use of information before award.
615.413-2  Alternate II.

Subpart 615.4--Solicitation and Receipt of Proposals and Quotations


615.403  Solicitation mailing lists.

    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 submitted proposals is not releasable. Requests 
for information other than solicitation mailing lists shall be handled 
by the Department's Office of Freedom of Information.


615.404  Presolicitation notices and conferences.

    (c)(1) The Procurement Executive has approved a class deviation 
from the requirements of FAR 15.404(c)(1). Approval for presolicitation 
conferences at one level above the contracting officer is not required.


615.406  Preparing requests for proposals (RFP's) and requests for 
quotations (RFQ's).


615.406-1  Uniform contract format.

    (a) The uniform contract format shall be mandatory for all 
acquisitions outside the United States, its possessions, its 
territories, and Puerto Rico, with the exception of those contracts 
listed in FAR 15.406-1(a) (1) through (8), unless a waiver is granted 
by the Procurement Executive. The Procurement Executive is the agency 
head's designee for the purposes of FAR 15.406-1(a)(7).


615.413  Disclosure and use of information before award.


615.413-2  Alternate II.

    Contracting officers may determine to use the alternate procedures 
listed in FAR 15.413-2 in cases deemed appropriate. These procedures 
must be used when releasing proposals outside the Government for 
evaluation purposes.
    (e) Contracting officers shall place the notice specified in FAR 
15.413-2(e) on all proposals when using these alternate procedures.
    (f) Release of proposals outside the Government is authorized.
    (1) The Procurement Executive is the agency head's designee for the 
purposes of FAR 15.413-2(f)(1).

Subpart 615.5--Unsolicited Proposals

Sec.
615.504  Advance guidance.
615.506  Agency procedures.

Subpart 615.5--Unsolicited Proposals


615.504  Advance guidance.

    (a) The contact points for unsolicited proposals are the heads of 
the contracting activities.


615.506  Agency procedures.

    (a) The contact points shall ensure that unsolicited proposals are 
controlled, evaluated, safeguarded, and disposed of in accordance with 
FAR Subpart 15.5.
    62. Section 615.604 is added to read as follows:


615.604  Responsibilities.

    (a) The head of the contracting activity is the agency head's 
designee for the purposes of FAR 15.604(a).


615.607  [Amended]

    63. Section 615.607 is amended by removing the parenthetical ``(see 
601.603-70)'' in the first sentence, and by removing the words ``a 
legal review from'' and inserting ``the concurrence of'' in their place 
in the second sentence.


615.608  [Amended]

    64. Section 615.608 is amended by removing the parenthetical ``(see 
601.603-70)'' in the first sentence.

PART 616--TYPES OF CONTRACTS

    65. Section 616.102-70 is revised to read as follows:


616.102-70  Overseas posts.

    Pursuant to 601.603-70(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.
    66. Section 616.203-4 is amended by removing the words ``The 
contracting officer'' and inserting ``Contracting officers at domestic 
contracting activities'' in their place in the first sentence; and by 
adding the following sentences:


616.203-4  Contract clauses.

* * * 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.


616.301-3  [Amended]

    67. Section 616.301-3 is amended by removing the words ``and 
approved at a level above the contracting officer''.
    68. Section 616.306 is amended by removing the words ``, without 
power of redelegation,'' and by adding the following sentence:


616.306  Cost-plus-fixed-fee contracts.

* * * This authority may be redelegated.
    69. Section 616.603-2 is amended by adding the following sentence:


616.603-2  Application.

* * * For cases where the contracting officer is also the head of the 
contracting activity, the Procurement Executive shall approve the 
determination and findings.

PART 617--SPECIAL CONTRACTING METHODS


617.102-2  [Amended]

    70. Section 617.102-2 is amended by adding the words ``, unless 
approved by the Procurement Executive in accordance with DOSAR 
617.204(e).'' to paragraph (d).
    71. Section 617.102-3 is added to read as follows:


617.102-3  Objectives.

    (d)(3) The head of the contracting activity is the agency head's 
designee for the purposes of FAR 17.102-3(d)(3). For those cases where 
the contracting officer is also the head of the contracting activity, 
the Procurement Executive shall be the agency head's designee.
    72. Section 617.201-70 is amended by revising the definition of 
``Priced option'' to read as follows:


617.201-70  DOSAR definitions.

* * * * *
    Price option means an option where the amount for the option is 
specified in or is reasonably determinable from the terms of the basic 
contract, as described in FAR 17.207(f) (1) through (5).
* * * * *
    73. Section 617.204 is added to read as follows:


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.


617.207, 617.207-70  [Removed]

    74. Sections 617.207 and 617.207-70 are removed.


617.502  [Amended]

    75. Section 617.502 is amended by removing the parenthetical ``(see 
601.603-70)''.
    76. Section 617.504-70 is added to read as follows:


617.504-70  Ordering procedures.

    (a) Department deputy assistant secretaries 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 (illustrated in part 653), 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.

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

PART 619--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

    77. Part 619 is amended by revising the word ``Director'' to read 
``Operations Director'' wherever it appears in the text; and revising 
the acronym ``OSDBU'' to read ``A/SDBU'' wherever it appears in the 
text.


619.201  [Amended]

    78. Section 619.201 is amended by removing ``The Under Secretary 
for Management'' and inserting ``The Assistant Secretary of State for 
Administration'' in its place in paragraph (c); by removing ``$25,000'' 
and inserting ``the simplified acquisition limitation'' in its place in 
paragraph (d)(5); by removing the semicolon at the end of paragraph 
(d)(5) after the word ``set-asides'' and inserting a period in its 
place; and by adding the following sentences to paragraph (d)(5):


619.201  General policy.

* * * * *
    (d) * * * (5) * * * This includes proposed contract modifications 
for new or additional requirements which 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;
    79. Section 619.501 is added to read as follows:


619.501  General.

    (c) Contracting officers shall use Department of State Form DS-
1910, Small Business/Labor Surplus Area Review--Actions Above the Small 
Purchase Limitation, to document set-aside decisions.
    80. Section 619.506 is added to read as follows:


619.506  Withdrawing or modifying set asides.

    (b) The Procurement Executive shall resolve disagreements between 
the A/SDBU Operations Director and the contracting officer.
    81. Section 619.705-1 is added to read as follows:


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 business 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, and women-owned firms. Where funds are 
available, an incentive clause such as that found in FAR 52.219-10, 
Incentive Subcontracting Program for Small and Small Disadvantaged 
Business Concerns, is encouraged.
    82. Section 619.705-3 is amended by adding the following sentence:


619.705-3  Preparing the solicitation.

* * * To further promote the use of small, disadvantaged, and women-
owned firms by large prime contractors, contracting officers are 
encouraged to consider the adequacy of the subcontracting plans, and/or 
past performance in achieving negotiated subcontract goals, as part of 
the overall evaluation of the technical proposals.


619.705-6-70  [Amended]

    83. Section 619.705-6-70 is amended by removing the word 
``quarterly'' wherever it appears in paragraph (b) and inserting the 
words ``annually'' and ``annual'' in its place, respectively.
    84. Section 619.708-70 is added to read as follows:


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 and Small Disadvantaged Business Subcontracting Plan, is used.
    85. Section 619.801 is revised to read as follows:


619.801  Definitions.

    National buy requirements includes all 8(a) contracts performed 
outside the United States and processed by the Small Business 
Administration.
    86. Sections 619.810 and 619.812 are added to read as follows:


619.810  SBA appeals.

    The Procurement Executive is the agency head for the purposes of 
FAR 19.810.


619.812  Contract administration.

    (d) The Procurement Executive is the agency head for the purposes 
of FAR 19.812(d).
    87. Section 619.870 is amended in paragraph (b) by revising the 
first sentence and by adding a new second sentence to read as follows:


619.870  Acquisition of technical requirements.

    (a) * * *
    (b) The contracting officer has greater latitude in holding 
discussions with the concerns solicited under an 8(a) program 
acquisition if under the $3 million competitive threshold for 8(a) 
competition than under a non-8(a) program acquisition. Informal 
assessments of 8(a) concerns shall be within the parameters of 13 CFR 
124.308(g). * * *

PART 622--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

    88. Section 622.401 is added to read as follows:


622.401  Definitions.

    (b) Apprentices, trainees, helpers, and, in the case of contracts 
subject to the Contract Work Hours and Safety Standards Act, watchmen 
and guards. The terms ``apprentice'' and ``trainee'' are defined as 
follows:
    (1) Apprentice has the same definition as in FAR 22.401(b)(1).
    (2) Trainee has the same definition as in FAR 22.401(b)(2).
    (3) The definition for helper as described in FAR 22.401 paragraph 
(b)(3) of the definition of Laborers or mechanics is reserved.
    89. Section 622.404-6 is amended by adding a new paragraph (b)(6) 
to read as follows:


622.404-6  Modifications of wage determinations.

* * * * *
    (b)(6) The head of the contracting activity is the agency head's 
designee for the purposes of FAR 22.404-6(b)(6).
    90. Section 622.406-3 is added to read as follows:


622.406-3  Additional Classifications.

    (b)(4) FAR 22.406-3 paragraph (b)(4) is reserved.

PART 623--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-
FREE WORKPLACE

    91. Subparts 623.3 and 623.4 are added to read as follows:

Subpart 623.3--Hazardous Material Identification and Material 
Safety Data


623.302-70  Policy.

    Any work which 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.

Subpart 623.4--Use of Recovered Materials

Sec.
623.470  Affirmative procurement program for recovered materials.
623.471  Purpose.
623.472  Applicability.
623.473  Definitions.
623.474  EPA guidelines.
623.475  Responsibilities.
623.476  Preference programs for guideline items.
623.476-1  Preference program for the purchase of cement and 
concrete containing fly ash.
623.476-2  Preference program for building insulation products 
containing recovered materials.
623.476-3  Preference program for lubricating oils containing 
recovered materials.
623.476-4  Preference program for retread tires.
623.476-5  Preference program for paper and paper products 
containing recovered materials.
623.477  Promotion program.
623.478  Evaluation and certification.
623.479  Annual review and monitoring.
623.480  Solicitation provisions and contract clauses.

Subpart 623.4--Use of Recovered Materials


623.470  Affirmative procurement program for recovered materials.


623.471  Purpose.

    This section establishes the Department of State's Affirmative 
Procurement Program for Recovered Materials in accordance with Section 
6002 of the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 
6962, Pub. L. 94-580). Section 6002 requires that each agency develop 
an affirmative procurement plan to assure that items composed of 
recovered materials will be purchased to the maximum extent practical 
and which is consistent with Federal procurement law. It requires that 
preference be given in procurement programs to the purchase of items 
containing recycled materials identified in guidelines promulgated by 
the Environmental Protection Agency (EPA). Executive Order 12780, 
Federal Agency Recycling and the Council on Federal Recycling and 
Procurement Policy, directed implementation of cost effective 
affirmative procurement programs for recycled items.


623.472  Applicability.

    The affirmative procurement program is applicable to all domestic 
acquisition 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 made and/or performed outside the 
United States or its possessions.


623.473  Definitions.

    Affirmative procurement program is a program which ensures that 
items composed of recovered materials will be purchased to the maximum 
extent practicable, consistent with Federal procurement law. There are 
four components to an affirmative procurement program: (1) A preference 
program; (2) a promotion program; (3) procedures for requiring, 
obtaining and verifying estimates and certifications of recovered 
materials content; and, (4) an annual review and monitoring.
    Designated item is an item that has been designated in an EPA 
procurement guideline as an item that is or can be produced using 
recovered materials whose procurement will advance the purpose of RCRA.
    Minimum-content standard is the minimum content of recovered 
materials that a designated item must contain pursuant to 
specifications implementing the Department's preference program.
    Postconsumer recovered materials are waste materials recovered from 
retail stores, office buildings, homes, and so forth after they have 
passed through their end usage as a consumer item. Waste paper includes 
all items from the first two categories above in addition to forest 
residues, and manufacturing and other wastes.
    Procurement guidelines are guidelines issued by the EPA pursuant to 
Section 6002 of RCRA: (1) Identifying items that are or can be produced 
with recovered materials and where procurement will advance the 
objectives of the Act; and, (2) providing recommended practices for the 
procurement of such items.
    Recovered materials are waste materials and by-products that have 
been recovered or diverted from solid waste, not including those 
materials and by-products generated from, and commonly reused within, 
an original manufacturing process.
    Unreasonable price is the price for products containing recovered 
materials which exceeds alternatives made with virgin materials by 10 
percent or more, and which the requirements office initiating the 
acquisition substantiates as exorbitant.


623.474  EPA guidelines.

    (a) The EPA has published five guidelines that designate the 
following items that are or can be produced using recovered materials. 
Accordingly, contracting activities shall procure items produced using 
recovered materials to the maximum extent possible when procuring these 
designated items:
    (1) Cement and concrete containing fly ash, 40 CFR part 249;
    (2) Paper and paper products, 40 CFR part 250;
    (3) Lubricating oils, 40 CFR part 252;
    (4) Retread tires, 40 CFR part 253; and,
    (5) Building insulation products, 40 CFR part 248.
    (b) Copies of these guidelines, as well as future guidelines 
promulgated by EPA, may be obtained by calling EPA's Recycled Products 
Information Clearinghouse at (703) 941-4452.
    (c) These guidelines are applicable when the Department purchases 
more than $10,000 worth of a designated item, or if the cost of all 
such items purchased by the Department during the preceding Fiscal Year 
was $10,000 or more.


Sec. 623.475  Responsibilities.

    (a) The requirements office initiating an acquisition is 
responsible for determining whether recovered materials should be 
included in the specifications. Requirements offices may purchase items 
subject to the guidelines containing other than recovered materials 
only if:
    (1) The price of items with recovered materials is unreasonable;
    (2) The requirement for items produced with recovered materials 
results in inadequate competition or adversely affects small business 
or the Department's metrication program;
    (3) Obtaining items with recovered materials results in unusual and 
unreasonable delays; or
    (4) Items produced with recovered materials do not meet all 
reasonable performance specifications.
    (b) If the requirements office chooses to procure designated items 
that do not contain recovered materials, a written justification must 
be submitted to the contracting officer.


623.476  Preference programs for guideline items.


623.476-1  Preference program for the purchase of cement and concrete 
containing fly ash.

    Domestic contracts requiring the purchase of cement and concrete 
shall specify the performance requirements of the products required 
under the contract using appropriate standards/specifications when 
available. Consistent with such performance specifications, such 
contracts shall allow the contractor to deliver cement and concrete 
products that contain fly ash, a component of coal resulting from its 
combustion in electrical generating plants. Architects/Engineers shall 
specify performance requirements for the concrete to be supplied.


623.476-2  Preference program for building insulation products 
containing recovered materials.

    Minimum content standards for building insulation products have 
been established by EPA guidelines. Domestic contracts for the design 
of structures that will utilize building insulation products shall 
require that the Architect/Engineer include, as a design consideration, 
the Department preference for the use of building insulation produced 
with recovered materials. Such contracts shall require that the 
Architect/Engineer specify the type of building insulation products to 
be supplied and shall require the Architect/Engineer to justify, in 
writing, the basis of the selected product type if it is not in 
accordance with the EPA guideline.


623.476-3  Preference program for lubricating oils containing recovered 
materials.

    Contracts requiring the supply of lubricating oils, hydraulic 
fluids and gear oils shall require that products conform to the EPA 
guideline.


623.476-4  Preference program for retread tires.

    Contracts requiring replacement tires for automobiles, light and 
heavy trucks and trailers, and off-road tires shall specify that 
retreading services shall be obtained if the carcass is retreadable. If 
such retreading services are not practicable, replacement tires shall 
be procured in accordance with the EPA guideline.


623.476-5  Preference program for paper and paper products containing 
recovered materials.

    (a) All contracts requiring the purchase of paper and paper 
products shall require that paper and paper products delivered to the 
Department meet the EPA guideline for recycled paper.
    (b) Contracting officers shall require contractors to use recycled 
paper when submitting reports and other deliverables to the Department, 
when feasible.
    (c) Contracting officers shall require offerors/bidders to submit 
proposals/bids on recycled paper, double-sided copying to the maximum 
extent possible.


623.477  Promotion program.

    Items composed of recovered materials shall be purchased under all 
new domestic contracts to the maximum extent practicable. Contracting 
officers shall promote the fact that the Department is seeking to buy 
items containing recovered materials at pre-proposal and pre-bid 
conferences when appropriate.


623.478  Evaluation and certification.

    (a) Contracting officers shall ensure that vendors estimate in 
their offers/bids the percentage of recovered material of the total 
content of designated items to be used under the contract.
    (b) Contracting officers shall ensure that contractors certify the 
percentage of recovered materials contained in designated items 
actually supplied under the contract.


623.479  Annual review and monitoring.

    The effectiveness of the preference program shall be reviewed 
annually by A/OPE. An assessment will be made to determine if greater 
use of recovered material is possible for the existing requirements or 
if recovered materials are causing undue delay, lack of competition, 
unreasonable prices or an unacceptable level of performance.


623.480  Solicitation provisions and contract clauses.

    (a) The contracting officer shall insert the provision at 652.223-
70, Estimates of the Total Percentage of Recovered Materials to be 
Utilized in the Performance of the Contract, in all domestic 
contracting activity solicitations using recovered materials in the 
performance of the work.
    (b) The contracting officer shall insert the clause at 652.223-71, 
Certification of Minimum Content Actually Utilized in the Performance 
of the Contract, in all domestic solicitations and contracts requiring 
the use of recovered materials.
    (c) The contracting officer shall insert the provision at 652.223-
72, Use of Double-Sided Copying in the Submission of Bids or Proposals, 
in all domestic solicitations for supplies or services.
    (d) The contracting officer shall insert the clause at 652.223-73, 
Use of Double-Sided Copying in the Submission of Reports, in all 
domestic solicitations and contracts for supplies or services.
    (e) The contracting officer shall insert the clause at 652.233-74, 
Use of Fly Ash as a Partial Replacement for Cement and Concrete, in all 
domestic solicitations and contracts for Architect/Engineer services 
for the design of structures or works that will use cement and concrete 
products, unless the requirements office provides a written 
justification for using virgin materials.
    (f) The contracting officer shall insert the clause at 652.223-75, 
Use of Recovered Materials in Building Insulation Products, in all 
domestic solicitations and contracts for Architect/Engineer services 
for the design of structures or works that will utilize or incorporate 
building insulation products containing recovered materials, unless the 
program office provides a written justification for using virgin 
materials.
    (g) The contracting officer shall insert the clause at 652.223-76, 
Use of Lubricating Oils Containing Re-Refined Oils, in all domestic 
solicitations and contracts that require the delivery of lubricating 
oils, unless the program office provides a written justification for 
using virgin materials.
    (h) The contracting officer shall insert the clause at 652.223-77, 
Use of Retread Tires, in all domestic solicitations and contracts that 
require the replacement of tires for automobiles, light and heavy 
trucks and trailers, and off-road vehicles, unless the program office 
provides a written justification for not using retread tires. This 
clause does not apply to the purchase of original equipment tires.
    (i) The contracting officer shall insert the clause at 652.233-78, 
Use of Recovered Materials in Paper and Paper Products, in all domestic 
solicitations and contracts that require the delivery of reports or 
other paper products, unless the program office provides a written 
justification for the use of virgin materials.

PART 625--FOREIGN ACQUISITION

    92. Section 625.102 is revised to read as follows:


625.102  Policy.

    (a)(3) The authority to make the determination prescribed in FAR 
25.102(a)(3) is delegated, without power of redelegation, to the head 
of the contracting activity.
    (b)(2) The authority to make the determination prescribed in FAR 
25.102(b)(2) is delegated, without power of redelegation, to the head 
of the contracting activity.


625.108  [Amended]

    93. Section 625.108 is amended by removing the words ``The Office 
of the Procurement Executive'' and inserting the acronym ``A/OPE'' in 
their place.
    94. Section 625.202 is revised to read as follows:


625.202  Policy.

    (a)(2) The authority to make the determination prescribed in FAR 
25.202(a)(2) is delegated, without power of redelegation, to the head 
of the contracting activity.
    (b) The authority to make the determination prescribed in FAR 
25.202(b) is delegated, without power of redelegation, to the head of 
the contracting activity.
    95. Section 625.203 is added to read as follows:


625.203  Evaluating offers.

    The head of the contracting activity is the agency head for the 
purposes of FAR 25.203 (a) and (b).


625.304  [Amended]

    96. Section 625.304 is amended by adding after ``activity'' the 
words ``without power of redelegation.''
    97. Section 625.901 is revised to read as follows:


625.901  Omission of examination of records clause.

    (a) The Procurement Executive is the agency head for the purposes 
of FAR 25.901.
    (b) Each determination and findings to omit FAR clause 52.215-1, 
Examination of Records by Comptroller General, shall be prepared in 
writing by the contracting officer and submitted to the Procurement 
Executive for approval.
    (c) The Procurement Executive shall forward the approved 
determination and findings to the requesting contracting activity for 
inclusion in the contract file, or inform the contracting activity in 
writing if the determination and findings is not approved, as 
appropriate.
    (1)(ii) The report required by FAR 25.901(c)(1)(ii) shall be 
prepared and forwarded to the Assistant Secretary of State for 
Administration by the Procurement Executive.

Subpart 625.10  (625.1003)--[Removed]

    98. Subpart 625.10, consisting of section 625.1003, is removed.

PART 627--PATENTS, DATA, AND COPYRIGHTS

    99. Part 627 is added, to read as follows:

PART 627--PATENTS, DATA, AND COPYRIGHTS

Subpart 627.2--Patents

Sec.
627.203  Patent indemnification of Government by contractor.
627.203-6  Clause for Government waiver of indemnity.

Subpart 627.3--Patent Rights Under Government Contracts

627.303  Contract clauses.
627.304  Procedures.
627.304-1  General.
627.304-5  Appeals.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

Subpart 627.2--Patents


627.203  Patent indemnification of Government by contractor.


627.203-6  Clause for Government waiver of indemnity.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 27.203-6.

Subpart 627.3--Patent Rights Under Government Contracts


627.303  Contract clauses.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 27.303. Determinations issued by the Procurement 
Executive shall be reviewed by the Office of the Legal Adviser.


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 issued by the Procurement Executive shall be reviewed by 
the Office of the Legal Adviser.


627.304-5  Appeals.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 27.304-5. Questions regarding the appeals procedure as 
specified in FAR 27.304-5(b) shall be referred to A/OPE.

PART 628--BONDS AND INSURANCE

    100. Part 628 is amended by adding Subparts 628.1, 628.2, and 628.3 
to read as follows:

Subpart 628.1--Bonds

628.101  Bid guarantees.
628.101-1  Policy on use.
628.106-6  Furnishing information.

Subpart 628.2--Sureties

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.
628.306  Insurance under fixed-price contracts.
628.307  Insurance under cost-reimbursement contracts.
628.307-70  Insurance under labor-hour and time-and-materials 
contracts.

Subpart 628.1--Bonds


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


628.203  Acceptability of individual surety.

    (g) Evidence of possible criminal or fraudulent activities by an 
individual surety shall be referred to the Office of the Inspector 
General.


628.203-7  Exclusion of individual sureties.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 28.203-7.

Subpart 628.3--Insurance


628.305  Overseas workers' compensation and war-hazard insurance.

    (a) It is the Department's policy that acquisitions for services, 
including construction but excluding personal services contracts, which 
require 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 the 
purpose of this section only, ``contractor personnel'' includes 
individuals who are either:
    (1) United States citizens or residents, or
    (2) Hired in the United States or its possessions.
    (b) The Department of State has entered into a contract with an 
insurance broker and carrier to provide Defense Base Act insurance, at 
a fixed rate for services and construction, to cover DOS contracts 
which will require performance overseas by United States citizens, 
residents, or those employed in the United States. In countries where 
local nationals and/or third country nationals will be employed to 
perform the contract, such countries may be waived by the Secretary of 
Labor. Whenever such insurance is required under the contract, the 
contracting officer shall insert:
    (1) The clause at 652.228-71, Worker's Compensation Insurance 
(Defense Base Act)--Services;
    (2) The clause at 652.228-72, Worker's Compensation Insurance 
(Defense Base Act)--Construction; and,
    (3) The clause at 652.228-73, Waiver of Defense Base Act.
    (c) Upon award of a contract which requires Defense Base Act 
insurance, the contracting officer shall notify the successful offeror 
of the name of the insurance broker from which the contractor should 
acquire insurance.
    (d) The authority to request a waiver from the Secretary of Labor 
of a particular country, as set forth in FAR 28.305(d), is reserved to 
the Secretary of State. The Department has obtained blanket waivers 
from the Secretary of Labor for all contracts for services, including 
construction, awarded and/or performed overseas. The waivers apply to 
all individuals who are not employees hired in the United States, or 
who are not United States citizens or residents.


628.306  Insurance under fixed-price contracts.

    (a) The contracting officer shall insert the provision at:
    (1) 652.228-74, Defense Base Act Insurance Rates--Limitation--
Services, in solicitations for fixed-price service contracts to be 
performed outside the United States by United States citizens or 
residents and/or those hired in the United States; or
    (2) 652.228-75, Defense Base Act Insurance Rates--Limitation--
Construction, in solicitations for fixed-price construction contracts 
to be performed outside the United States by United States citizens or 
residents and/or those hired in the United States.


628.307  Insurance under cost-reimbursement contracts.

    The contracting officer shall insert the provision at 652.228-76, 
Defense Base Act Insurance Rates--Limitation--Cost-Reimbursement, in 
solicitations for cost-reimbursement type contracts to be performed 
outside the United States by United States citizens or residents and/or 
those hired in the United States.


628.307-70  Insurance under labor-hour and time-and-materials 
contracts.

    The contracting officer shall insert the provision at 652.228-77, 
Defense Base Act Insurance Rates--Limitation--Labor-Hour and Time-and-
Material, in solicitations for labor-hour or time-and-material type 
contracts to be performed outside the United States by United States 
citizens or residents and/or those hired in the United States.

PART 631--CONTRACT COST PRINCIPLES AND PROCEDURES

    101. Part 631 is added to read as follows:

PART 631--CONTRACT COST PRINCIPLES AND PROCEDURES

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

Subpart 631.1--Applicability


631.101  Objectives.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 31.101.

PART 632--CONTRACT FINANCING

Subpart 632.1 (632.111, 632.111-70)--[Removed]

    102. Subpart 632.1, consisting of sections 632.111 and 632.111-70, 
is removed.
    103. Section 632.402 is amended by designating the existing text as 
paragraph (c)(1)(iii), and by adding a new paragraph (b) to read as 
follows:


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.
* * * * *
    104. Section 632.407 is added to read as follows:


632.407  Interest.

    (d) The Procurement Executive is the agency head's designee for the 
purposes of FAR 32.407(d).
    105. Subparts 632.7 and 632.8 are added to read as follows:

Subpart 632.7--Contract Funding


632.703  Contract funding requirements.


632.703-3  Contracts crossing fiscal years.

    (a) The State Department Basic Authorities Act of 1956, as amended 
(22 U.S.C. 2696(e)), allows funds from annual appropriations to extend 
beyond the fiscal year in which the acquisition was funded. This 
authority may be used for acquisitions of supplies or services, 
regardless of dollar amount or contract type. Use of this authority 
requires that:
    (1) The acquisition normally would be considered severable (i.e., 
the services are repetitive and can be started or stopped any time; 
would normally be funded and performed within a fiscal year; and are 
not services integral to the creation of an end product. An example is 
janitorial services);
    (2) The base performance period is twelve months, begins in the 
current fiscal year, and crosses into the next fiscal year; and,
    (3) Full funding for twelve months is available in the current 
year.
    (b) If the acquisition involves more than one source of funds, the 
contract shall be priced to identify the source of funds (by allotment) 
with the relevant portion of the total supplies or services. For 
current Department contracts, bilateral modifications are authorized 
where necessary to convert to a performance period that crosses fiscal 
years, as long as the requisite funding is available as described in 
paragraph (a), and provided that the total contract length does not 
increase.
    (c) Use of this authority shall be documented in the contract file 
and be included as part of the Advance Acquisition Plan and Price 
Negotiation Memorandum. If neither document is relevant to the 
acquisition, the contracting officer shall prepare a written document 
to the file indicating compliance with this subsection.
    (d) For acquisitions conducted by overseas posts that are funded by 
another agency, the contracting officer shall ensure that funding for 
the full twelve-month period is available at time of award if the 
authority in 22 U.S.C. 2696(e) will be used.

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.

Subpart 632.9--Prompt Payment

    106. Section 632.908 is added to read a follows:


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.

PART 633--PROTESTS, DISPUTES AND APPEALS


633.104  [Amended]

    107. Section 633.104 is amended by removing the introductory text 
and the parenthetical ``(see 601.603-70'' in the first sentence of 
paragraph (a)(1); and by revising the phrase ``Deputy Assistant 
Secretary for Information Systems'' to read ``Deputy Assistant 
Secretary for Information Management'' in the second sentence of 
paragraph (a)(1).


633.105  [Amended]

    108. Section 633.105 is amended by removing the introductory text 
and by revising the phrase ``Deputy Assistant Secretary for Information 
Systems'' to read ``Deputy Assistant Secretary for Information 
Management'' in the first sentence of paragraph (a) and the second 
sentence of paragraph (c).
    109. Section 633.214-70 is added to read as follows:


633.214-70  Alternative dispute resolution.

    (a) Policy. The Department's goal is to resolve contract disputes 
before the issuance of a contracting officer's final decision under the 
Contract Disputes Act. 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.
    (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 ASBCA 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 ASBCA) 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. 
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 is available in Army Corps of Engineers IWR 
Pamphlet 91-ADR-P-3, Mediation, September 1991; and Administrative 
Conference of the U.S., Mediation: A Primer for Federal Agencies, 
available from A/OPE.
    (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 is available in Army 
Corps of Engineers IWR Pamphlet 91-ADR-P-2, Non-Binding Arbitration, 
September 1990, available from A/OPE.
    (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 is available in Army Corps of Engineers IWR 
Pamphlet 91-ADR-P-4, Partnering, December 1991, available from A/OPE.
    (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 limitation) for 50% 
of the agreed price, and the advisor would submit separate invoices 
(each for 50% of the price) to the Government and the contractor.

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

PART 634--MAJOR SYSTEMS ACQUISITION


634.001  [Amended]

    110. Section 634.001 is amended by removing ``$10,000,000'' and 
inserting ``$30,000,000'' in its place in paragraphs (b) and (c); and 
by removing the words ``agency head'' and inserting ``Under Secretary 
for Management'' in their place in the first sentence of paragraph (c).
    111. Section 634.001-70 is amended by adding the following 
definition:


634.001-70  Supplemental definitions.

* * * * *
    Major Acquisition Program Office (A/IM/MAPO) is located within the 
Office of Information Management. It has managerial and operational 
responsibilities relative to all major information resource 
acquisitions.
    112. Section 634.003 is amended by revising paragraph (a) to read 
as follows; and, by removing the words ``The Deputy Assistant Secretary 
for Operations'' and inserting ``The Under Secretary for Management'' 
in their place in paragraph (b):


634.003  Responsibilities.

    (a) The Procurement Executive is the agency head's designee for the 
purposes of FAR 34.003(a). Written procedures for acquiring Federal 
Information Processing (FIP) resources by A/IM/MAPO are contained in 
the ``Source Selection Procedures Guide'', issued by that Office.
* * * * *
    113. Sections 634.005 and 634.005-6 are added to read as follows:


634.005  General requirements.


634.005-6  Full production.

    The Deputy Secretary is the agency head for the purposes of FAR 
34.005-6.

PART 636--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS


636.101-70  [Amended]

    114. Section 636.101-70 is amended by removing the words ``are 
excepted'' and inserting the words ``may be excepted'' in their place.
    115. Section 636.602 is revised to read as follows:


636.602  Selection of firms for architect-engineer contracts.


636.602-4  Selection authority.

    (a) The final selection decision shall be made as designated by the 
Deputy Assistant Secretary for Foreign Buildings Operations for 
acquisitions issued by that office; the Director, Moscow Embassy 
Buildings Control Office, for Moscow chancery building(s) only; and, 
the appropriate head of the contracting activity for all other actions.


636.602-5  Short selection processes for contracts not to exceed the 
simplified acquisition limitation.

    The short selection process described in FAR 36.602-5 is authorized 
for use for contracts not expected to exceed the simplified acquisition 
limitation.

PART 637--SERVICE CONTRACTING


637.104  [Amended]

    116. Section 637.104-70 is amended by adding the words ``and the 
Moscow Embassy Control Office'' after ``For the Office of Foreign 
Buildings'' in paragraph (f).
    117. Section 637.106 is added to read as follows:


637.106  Funding and term of service contracts.

    The Department's statutory authority for authorizing contracts for 
services funded by annual appropriations to be performed in two fiscal 
years, if the total amount for such contracts is obligated in the 
earlier fiscal year, is 22 U.S.C. 2696(e). See DOSAR 632.703-3.
    118. Section 637.110 is revised to read as follows:


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 the clause at 652.237-71, 
Identification/Building Pass, in all solicitations and contracts where 
contractor personnel require frequent and continuing access to 
Department of State facilities.
    (c) 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.

Subpart 637.2 (637.204, 637.204-70, 637.270)--[Removed]

    119. Subpart 637.2, consisting of sections 637.204, 637.204-70, and 
637.270, is removed.

PART 639--ACQUISITION OF INFORMATION RESOURCES

    120. Part 639 is added to read as follows:

PART 639--ACQUISITION OF INFORMATION RESOURCES

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.


639.001-70  Policy.

    (a) The Assistant Secretary of State for Administration is the 
Department's Designated Senior Official as defined in the Federal 
Information Resources Management Regulation (FIRMR) 201-39.201.

SUBCHAPTER G--CONTRACT MANAGEMENT

PART 642--CONTRACT ADMINISTRATION

    121. Section 642.270 is revised to read as follows:


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.


642.271  [amended]

    122. Section 642.271 is amended to add the words ``a clause 
substantially the same as'' after the word ``insert''.

PART 643--CONTRACT MODIFICATIONS

    123. Section 643.102-70 is amended by revising paragraph (b) to 
read as follows:


643.102-70  Contract compliance and review.

    (a) * * *
    (b) Subpart 604.70 prescribes the review requirements for modifying 
contracts for supplies and services, including construction. The 
contracting officer shall submit such contract modifications to A/OPE 
when:
    (i) The modification itself exceeds the thresholds established in 
604.7002(a);
    (ii) The modification will cause the contract to exceed the 
thresholds established in 604.7002(a); or,
    (iii) Any proposed change under the modification results in an 
increase or decrease exceeding the thresholds in 604.7002(a) in any of 
the individual cost elements of the existing contract.

PART 647--TRANSPORTATION

    124. Part 647 is added to read as follows:

PART 647--TRANSPORTATION

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.


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.

PART 649--TERMINATION OF CONTRACTS

    125. Part 649 is added to read as follows:

PART 649--TERMINATION OF CONTRACTS

Subpart 649.1--General Principles

    649.106  Fraud or other criminal conduct.
    649.111  Review of proposed settlements.

    Authority: 40 U.S.C. 485(c); 22 U.S.C. 2658.

Subpart 649.1--General Principles.


649.106  Fraud or other criminal conduct.

    If the Termination Contracting Officer (TCO) suspects fraud or 
other criminal conduct related to the settlement of a terminated 
contract, the TCO shall discontinue negotiations and report the facts 
to the Office of the Inspector General.


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; 
and,
    (b) All proposed termination settlements from overseas contracting 
activities shall be approved by the Procurement Executive.

PART 651--USE OF GOVERNMENT SOURCES BY CONTRACTORS

    126. Part 651 is added to read as follows:

PART 651--USE OF GOVERNMENT SOURCES BY CONTRACTORS

    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


651.701  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. It also does not apply to 
contracts awarded by the Office of Language Services (A/OPR/LS).

SUBCHAPTER H--CLAUSES AND FORMS

PART 652--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


652.202-70  [Removed]

    127. Section 652.202-70 is removed.
    128. Section 652.203-70 is added to read as follows:


652.203-70  Prohibition Against the Use of Federal Employees.

    As prescribed in 603.670, insert the following clause:

Prohibition Against the Use of Federal Employees (Dec 1994)

    In accordance with Federal Acquisition Regulation 3.601, 
contracts are not to be awarded to Federal employees or a business 
concern or other organization owned or substantially owned or 
controlled by one or more Federal employees. For the purposes of 
this contract, this prohibition against the use of Federal employees 
includes any work performed by the contractor or any of its 
employees, subcontractors, or consultants.

(End of clause)

    129. Section 652.203-71 is added to read as follows:


652.203-71  Certification Regarding Federal Employment.

    As prescribed in 603.670, insert the following provision:

Certification Regarding Federal Employment (Dec 1994)

    By submitting an offer, the offeror hereby certifies that it is 
not owned or substantially owned or controlled by one or more 
Federal employees.

(End of provision)

    130. Section 652.206-70 is added to read as follows:


652.206-70  Competition Advocacy/Ombudsman.

    As prescribed in 606.570, insert the following provision:

Competition Advocacy/Ombudsman (Dec 1994)

    The Department of State's Competition Advocate is responsible 
for assisting industry in removing restrictive requirements from 
Department of State solicitations and removing barriers to full and 
open competition. If such a solicitation is considered competitively 
restrictive or does not appear properly conducive to competition and 
contracting practices, potential offerors are encouraged to first 
contact the contracting office for the respective solicitation 
identified elsewhere in this solicitation. If concerns are not 
adequately addressed, contact the Department of State Competition 
Advocate on (703) 516-1680, or write to: U.S. Department of State, 
Competition Advocate, Office of the Procurement Executive, A/OPE/CA, 
Suite 603, SA-6, Washington, DC 20522-0602.

(End of provision)


614.214-70  [Removed]


652.214-71  [Redesignated as 652.214-70]

    131. Section 652.214-70 is removed; section 652.214-71 is 
redesignated as 652.214-70, and the date for the clause at redesignated 
652.214-70 is revised from ``(JUL 1988)'' to ``(DEC 1994)''.


652.214-72  [Redesignated as 652.214-71]

    132. Section 652.214-72 is redesignated as 652.214-71; the date for 
the provision at redesignated 652.214-71 is revised from ``(JUL 1988)'' 
to ``(DEC 1994)''; the prescription is revised to read as follows; and, 
the parenthetical ``(End of clause)'' is revised to read ``(End of 
provision)'':


652.214-71  Authorization to Perform

    As prescribed in 614.201-7-70(c), insert the following 
provisions:
* * * * *
    133. Section 652.216-70 is amended by revising the clause to read 
as follows:


652.216-70  Ordering--Indefinite-Delivery Contracts.

* * * * *

Ordering--Indefinite-Delivery Contracts (Dec 1994)

    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,
    (b) The Optional Form 206, Purchase Order, Receiving Report and 
Voucher, and Optional Form 206A, Continuation Sheet.

(End of clause)

    134. Section 652.216-71 is added to read as follows:


652.216-71  Price Adjustment.

    As prescribed in 616.203-4, insert a clause substantially the same 
as follows:

Price Adjustment (Dec 1994)

    (a) The contract cost may be adjusted based on increases or 
decreases 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.
    (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 subsequent to the award 
date of the 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 direct cost 
of direct service labor under the contract.
    (c) The contractor shall present documentation that clearly 
supports any request for adjustment, including the calculation of 
the amount of adjustment requested. This documentation must identify 
and provide the appropriate portions of the text of the particular 
law from which the request is derived.
    (d) Any request for adjustment shall be certified by signature 
by an officer or general partner of the contractor having overall 
responsibility for the conduct of the contractor's affairs.
    (e) No adjustment shall be made to the contract price that 
relates to any overhead, fixed costs, profit or fee for the 
contractor. Only the amount charged to direct service labor cost 
shall be considered by the Government as basis for contract price 
adjustments.
    (f) No request by the contractor for an adjustment under this 
clause shall be allowed if asserted after final payment under this 
contract has been made.
    (g) This clause shall only apply to laws enacted by the [insert 
name of country] Government meeting the criteria set forth above in 
paragraph (a). No adjustments shall be made due to currency 
devaluations fluctuations in exchange rates.

(End of clause)

    135. Section 652.219-70 is added to read as follows:


652.219-70  Department of State Subcontracting Goals.

    As prescribed in 619.708-70, insert a provision substantially the 
same as follows:

Department of State Subcontracting Goals (Dec 1994)

    (a) The offeror shall provide a Small, Small Disadvantaged and 
Woman-Owned Enterprise Subcontracting Plan that details its approach 
to selecting and using Small, Small Disadvantaged, and Woman-Owned 
Business Enterprises as requested by the contracting officer.
    (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) Omnibus goals (if applicable):
    (i) 10% to minority business
     (ii) 10% to small business

(End of provision)

    136. Section 652.223-70 is added to read as follows:


652.223-70  Estimates of the Total Percentage of Recovered Materials to 
be Utilized in the Performance of the Contract.

    As prescribed in 623.480(a), insert the following provision:

Estimates of the Total Percentage of Recovered Materials to be Utilized 
in the Performance of the Contract (Dec 1994)

    (a) As required under Section 6002 of the Resource Conservation 
and Recovery Act, an officer or employee of the offeror shall 
estimate the total percentage of recovered material to be utilized 
in the performance of the contract.
    (b) I, (insert name of certifier) am an officer employee 
responsible for the preparation of this offer and hereby estimate 
the total percentage of recovered material to be utilized in the 
performance of the contract as follows:

------------------------------------------------------------------------
                                         Estimate of total percent of   
              Product                 recovered material to be utilized 
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
                                                                        
------------------------------------------------------------------------
                                                                        
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

(End of provision)

    137. Section 652.223-71 is added to read as follows:


652.223-71  Certification of Minimum Content Actually Utilized in the 
Performance of the Contract.

    As prescribed in 623.480(b), insert the following clause:

Certification of Minimum Content Actually Utilized in the Performance 
of the Contract (Dec 1994)

    (a) As required under Section 6002 of the Resource Conservation 
and Recovery Act, an officer or employee of the contractor shall 
execute the following certification:
    I, (insert name of certifier) am an officer or employee 
responsible for the performance of this contract and hereby certify 
the following minimum recovered material content was actually 
utilized in the performance of this contract:

------------------------------------------------------------------------
                                         Percent of minimum recovered   
              Product                     material actually utilized    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
                                                                        
                                                                        
------------------------------------------------------------------------
                                                                        
                                                                        
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------

    (b) The contractor shall submit this certification by January 31 
in each year during the period of performance of this contract. The 
period of the certification shall cover the preceding calendar year.

----------------------------------------------------------------------
Signature of the officer or employee

----------------------------------------------------------------------
Typed name of officer or employee

----------------------------------------------------------------------
Title

----------------------------------------------------------------------
Name of company, firm, or organization

----------------------------------------------------------------------
Date

(End of clause)

    138. Section 652.223-72 is added to read as follows:


652.223-72  Use of Double-Sided Copying in the Submissions of Bids or 
Proposals.

    As prescribed in 623.480(c), insert the following provision:

Use of Double-Sided Copying in the Submissions of Bids or Proposals 
(Dec 1994)

    (a) For the purposes of this provision, ``double-sided copying'' 
means copying two one-sided originals on to the front and back side 
of one sheet of paper.
    (b) Unless otherwise stated in the solicitation, offerors shall 
use double-sided copying to reproduce all bids or proposals in 
response to this solicitation.

(End of provision)

    139. Section 652.223-73 is added to read as follows:


652.223-73  Use of Double-Sided Copying in the Submission of Reports.

    As prescribed in 623.480(d), insert the following clause:

Use of Double-Sided Copying in the Submission of Reports (Dec 1994)

    (a) For the purposes of this clause, ``double-sided copying'' 
means copying two one-sided originals on to the front and back side 
of one sheet of paper.
    (b) Unless otherwise stated in this contract or otherwise 
directed by the contracting officer, the contractor shall use 
double-sided copying to reproduce any progress report, draft report, 
of final report produced under this contract.

(End of clause)

    140. Section 652.223-74 is added to read as follows:


652.223-74  Use of Fly Ash as a Partial Replacement for Cement and 
Concrete.

    As prescribed in 623.480(e), insert the following clause:

Use of Fly Ash as a Partial Replacement for Cement and Concrete (Dec 
1994)

    The Architect/Engineer shall specify the performance 
requirements of the cement and concrete products required under the 
contract using standard specifications when available. Consistent 
with such performance specifications, the Architect/Engineer shall 
specify the use of fly ash, a finely divided residue resulting from 
the combustion of coal, as a partial replacement for cement and 
concrete to the maximum extent practicable in accordance with ANSI/
ASTM Standards and all applicable codes.

(End of clause)

    141. Section 652.223-75 is added to read as follows:


652.223-75  Use of Recovered Materials in Building Insulation Products.

    As prescribed in 623.480(f), insert the following clause:

Use of Recovered Materials in Building Insulation Products (Dec 1994)

    (a) This clause applies to building insulation products used in 
the construction of ceilings, floors, foundations, and walls, and 
includes blanket, board, spray-in place and loose-fill insulations.
    (b) The Department's minimum content standard for recovered 
material in building insulation products is set forth below.

------------------------------------------------------------------------
             Material type                      Percent by weight       
------------------------------------------------------------------------
Cellulose loose-fill and spray on.....  75% post-consumer recovered     
                                         material.                      
Perlite composition board.............  23% post-consumer recovered     
                                         paper.                         
Plastic Rigid Foams--polyisocyanurate/                                  
 polyurethane:                                                          
    Rigid foam........................  9% recovered material.          
    Foam-in-place.....................  5% recovered material.          
    Glass fiber reinforced............  6% recovered material.          
Phenolic rigid foam...................  5% recovered material.          
Rock Wool.............................  75% recovered material.         
------------------------------------------------------------------------

    Note: The minimum content standards are based on the weight of 
the material (not volume) in the insulating core only.

    (c) The Architect/Engineer shall include as a design 
consideration the Department's preference for the use of building 
insulation produced with recovered materials. The Architect/Engineer 
shall specify the type of building insulation products to be 
supplied, and shall justify in writing the basis of the selected 
product type if it is listed above, or if any product listed above 
has a higher minimum content standard than the selected product.

(End of clause)

    142. Section 652.223-76 is added to read as follows:


652.223-76  Use of Lubricating Oils Containing Re-Refined Oils.

    As prescribed in 623.480(g), insert the following clause:

Use of Lubricating Oils Containing Re-Refined Oils (Dec 1994)

    (a) If the contractor is required to supply lubricating oils, 
hydraulic fluids, or gear oils under this contract, the contractor 
shall supply products conforming to the listed military 
specifications as set forth below unless the contracting officer 
determines that the listed products will not satisfy the 
Department's needs.

EPA Lubricating Oils Containing Re-Refined Oil

(1) Engine Lubricating Oils
    (i) MIL-L-46152 (or current version)--Lubricating Oil Internal 
Combustion Engine, Administrative Service
    (ii) API Engine Service Category SF-1980 Gasoline Engine 
Warranty Maintenance Service
    (iii) API Engine Service Category CC-Diesel Engine Service
    (iv) MIL-L-2104D (or current version)--Lubricating Oil Internal 
Combustion Engine, Tactical Service
    (v) API Engine Service Category CD-Diesel Engine Service
    (vi) MIL-L-21260D (or current version)--Lubricating Oil Internal 
Combustion Engine, Preservative and Break-In
    (vii) MIL-L-4617 (or current version)--Lubricating Oil, Internal 
Combustion Engine, Arctic
(2) Hydraulic Fluids
    (i) MIL-H-5606 (or current version)--Hydraulic Fluid, Petroleum 
Base: Aircraft, Missile, and Ordnance
    (ii) MIL-H-6083 (or current version)--Hydraulic Fluid, Petroleum 
Base: Preservation and Operation
(3) Gear Oils
    (i) MIL-L-2105d (or current version)--Lubricating Oil, Gear, 
Multipurpose

    (b) Copies of the above specifications may be obtained from: 
Standardization Document Order Desk, Building 4, Section D, 700 
Robbins Avenue, Philadelphia, PA 19111-5094.
    (c) Any lubricating oils, hydraulic fluids, or gear oils 
delivered under this contract that conform to the above listed 
military specifications shall contain a minimum of 25% re-refined 
oils.

(End of clause)

    143. Section 653.223-77 is added to read as follows:


652.223-77  Use of Retread Tires.

    As prescribed in 623.480(h), insert the following clause:

Use of Retread Tires (Dec 1994)

    (a) If the contractor is required to maintain or replace 
Government tires under this contract, the contractor shall to the 
maximum extent practicable obtain retreading services for existing 
tires, if the carcass is retreadable, from firms identified in the 
U.S. General Services Administration's Federal Supply Schedule 26 
II, Pneumatic Tires.
    (b) If such retreading services are not practicable, replacement 
retread tires shall be procured in accordance with GSA specification 
ZZ-T-381 for replacement tires.

(End of clause)

    144. Section 652.223-78 is added to read as follows:


652.223-78  Use of Recovered Materials in Paper and Paper Products.

    As prescribed in 623.480(i), insert the following clause:

Use of Recovered Materials in Paper and Paper Products (Dec 1994)

    (a) If the contractor is required under this contract to deliver 
any of the paper and paper products listed below, all such items 
delivered shall meet the minimum content standards for recovered 
materials, postconsumer recovered materials, or waste paper set 
forth in paragraph (b).
    (1) Recovered materials are defined as waste material and by-
products that have been recovered or diverted from solid waste, not 
including those materials and by-products generated from, and 
commonly reused within, an original manufacturing process.
    (2) Postconsumer recovered materials are defined as waste 
materials recovered from retail stores, office buildings, homes and 
so forth after they passed through their end usage as a consumer 
item.
    (3) Waste paper is defined as all items from the first two 
categories above in addition to forest residues, and manufacturing 
and other wastes.
    (b) Unless otherwise stated in this contract or otherwise 
directed by the contracting officer, the contractor shall use ``High 
Grade Bleached Printing and Writing Papers'' as defined in this 
clause to produce all progress reports, final reports, and any other 
products required to be delivered to the Government under this 
contract.

Minimum Content Standards for Selected Paper and Paper Products

Newsprint

40% minimum postconsumer recovered materials

High Grade Bleached Printing and Writing Papers

Offset printing--50% minimum waste paper
Mimeo and duplicator paper--50% minimum waste paper
Writing (stationery)--50% minimum waste paper
Office paper (e.g., note pads)--50% minimum waste paper
Paper for high speed copiers--50% minimum waste paper
Envelopes--50% minimum waste paper
Form bond including computer paper and carbonless--50% minimum waste 
paper
Book papers--50% minimum waste paper
Bond papers--50% minimum waste paper
Ledger--50% minimum waste paper
Cover stock--50% minimum waste paper
Cotton fiber papers--25% minimum recovered materials and 50% minimum 
waste paper

Tissue Products

Toilet tissue--20% minimum postconsumer recovered materials
Paper towels--40% minimum postconsumer recovered materials
Paper napkins--30% minimum postconsumer recovered materials
Facial tissue--5% minimum postconsumer recovered materials
Doilies--40% minimum postconsumer recovered materials
Industrial wipes--0% minimum postconsumer recovered materials

Unbleached Packaging

Corrugated boxes--35% minimum postconsumer recovered materials
Fiber boxes--35% minimum postconsumer recovered materials
Brown papers (e.g., bags)--5% minimum postconsumer recovered 
materials

Recycled Paperboard

Reclycled paperboard products--80% minimum postconsumer recovered 
materials
Pad backing--90% minimum postconsumer recovered materials

(End of clause)

    145. Section 652.228-71 is added to read as follows:


652.228-71  Worker's Compensation Insurance (Defense Base Act)--
Services.

    As prescribed in 628.305(b)(1), insert the following clause:

Worker's Compensation Insurance (Defense Base Act)--Services (Dec 1994)

    (a) This clause supplements FAR 52.228-3.
    (b) The contractor agrees to procure Defense Base Act (DBA) 
insurance pursuant to the terms of the contract between the 
Department of State and the Department's DBA insurance carrier 
unless the contractor has a DBA self-insurance program approved by 
the Department of Labor. The contractor shall submit a copy of the 
Department of Labor's approval to the contracting officer upon 
contract award.
    (c) Since the Department of State has secured a waiver of DBA 
coverage for contractor's employees who are not citizens of, 
residents of, or hired in the United States, the contractor agrees 
to provide such employees with worker's compensation benefits as 
required by the laws of the country in which the employees are 
working, or by the laws of the employee's native country, whichever 
offers greater benefits.
    (d) The contractor agrees to insert a clause substantially the 
same as this one in all subcontracts to which the DBA is applicable. 
Subcontractors shall be required to insert a similar clause in any 
of their subcontracts subject to the DBA.
    (e) The cost of DBA insurance is paid on an annual basis. If the 
period of performance of this contract extends beyond one year, the 
Department shall reimburse the contractor for any additional 
insurance cost on a reimbursable basis through a contract 
modification.
    (f) Should the rates for DBA insurance coverage increase during 
the performance of this contract, the Department shall reimburse the 
contractor for the increased cost through a contract modification. 
In the event the DBA insurance rates decrease during contract 
performance, the contractor shall reduce the reimbursable cost 
proportionately.

(End of clause)

    146. Section 652.228-72 is added to read as follows:


652.228-72  Worker's Compensation Insurance (Defense Base Act)--
Construction

    As prescribed in 628.305(b)(2), insert the following clause:

Worker's Compensation Insurance (Defense Base Act)--Construction (Dec. 
1994)

    (a) This clause supplements FAR 52.228-4.
    (b) The contractor agrees to procure Defense Base Act (DBA) 
insurance pursuant to the terms of the contract between the 
Department of State and the Department's DBA insurance carrier 
unless the contractor has a DBA self-insurance program approved by 
the Department of Labor. The contractor shall submit a copy of the 
Department of Labor's approval to the contracting officer upon 
contract award. The current rate under the Department of State 
contract is [contracting officer insert current rate] of 
compensation for construction.
    (c) Since the Department of State has secured a waiver of DBA 
coverage for contractor's employees who are not citizens of, 
residents of, or hired in the United States, the contractor agrees 
to provide such employees with worker's compensation benefits as 
required by the laws of the country in which the employees are 
working, or by the laws of the employee's native country, whichever 
offers greater benefits.
    (d) The contractor agrees to insert a clause substantially the 
same as this one in all subcontracts to which the DBA is applicable. 
Subcontractors shall be required to insert a similar clause in any 
of their subcontracts subject to the DBA.
    (e) Should the rates for DBA insurance coverage increase or 
decrease during the performance of this contract, the Department 
shall modify this contract accordingly.
    (f) The contractor shall demonstrate to the satisfaction of the 
contracting officer that the equitable adjustment as a result of the 
insurance increase or decrease does not include any reserve for such 
insurance. Adjustment shall not include any overhead, profit, 
general and administrative expense, etc.

(End of clause)

    147. Section 652.228-73 is added to read as follows:


652.228-73  Waiver of the Defense Base Act.

    As prescribed in 628.305(b)(3), insert the following clause:

Waiver of the Defense Base Act (Dec 1994)

    (a) Upon recommendation of the Secretary of State, the Secretary 
of Labor may waive the applicability of the Defense Base Act with 
respect to any contract, subcontract, or subordinate contract; work 
location; or classification of employees.
    (b) Either the contractor or the Department of State may request 
a waiver from coverage. Such a waiver may apply to any employees who 
are not U.S. citizens, not residents of, or are not hired in the 
United States. Waivers requested by the contractor shall be 
submitted to the contracting officer for approval and further 
submission to the contracting officer for approval and further 
submission to the Department of Labor. Application for a waiver 
shall be submitted on Department of Labor Form BEC-565. Where such 
waivers are granted from coverage under the DBA, the waiver is 
conditioned on providing other worker's compensation coverage to 
employees to which the waiver applies. Usually this takes the form 
of securing worker's compensation coverage of the country where work 
will be performed or of the employee's native country, whichever 
offers greater benefits. Information as to whether a DBA waiver has 
been obtained by the Department for a particular country may be 
obtained from the contracting officer.

(End of clause)

    148. Section 652.228-74 is added to read as follows:


652.228-74  Defense Base Act Insurance Rates--Limitation--Services.

    As prescribed in 628.306(a)(1), insert the following provision:

Defense Base Act Insurance Rates--Limitation--Services (Dec 1994)

    (a) The Department of State has entered into a contract with an 
insurance carrier to provide DBA insurance to Department of State 
contractors at a contracted rate. The rates for this insurance are 
as follows:
    Services @ [contracting officer insert current rate] of 
compensation.
    (b) Bidders/Offerors should compute the total compensation 
(direct salary plus differential, but excluding per diem, housing 
allowance and other miscellaneous post allowances) to be paid to 
employees who will be covered by DBA insurance and the cost of DBA 
insurance in their bid/proposal using the foregoing rate, and insert 
the totals in the spaces provided. The DBA insurance cost shall be 
included in the total fixed price. The DBA insurance costs shall be 
reimbursed directly to the contractor.

(1) Compensation of Covered Employees: ________________

(2) Defense Base Act Insurance Costs: ________________

(3) Total Cost: ________________

    (c) Bidders/Offerors shall include a statement as to whether or 
not local nationals or third country nationals will be employed on 
the resultant contract.

(End of provision)

    149. Section 652.228-75 is added to read as follows:


652.228-75  Defense Base Act Insurance Rates--Limitation--Construction.

    As prescribed in 628.306(a)(2), insert the following provision:

Defense Base Act Insurance Rates--Limitation--Construction (Dec 1994)

    (a) The Department of State has entered into a contract with an 
insurance carrier to provide DBA insurance to Department of State 
contractors at a contracted rate. The rates for this insurance are 
as follows:
    Construction @ [contracting officer insert current rate] of 
compensation.
    (b) Bidders/Offerors should compute the total compensation 
(direct salary plus differential, but excluding per diem, housing 
allowance and other miscellaneous post allowances) to be paid to 
employees who will be covered by DBA insurance and the cost of DBA 
insurance in their bid/proposal using the foregoing rate, and insert 
the totals in the spaces provided for the base year and each year 
thereafter, if applicable The DBA insurance cost shall be included 
in the total fixed price. The DBA insurance costs shall be 
reimbursed directly to the contractor.

(1) Compensation of Covered Employees: ________________

(2) Defense Base Act Insurance Costs: ________________

(3) Total Cost: ________________

(End of provision)

    150. Section 652.228-76 is added to read as follows:


652.228-76  Defense Base Act Insurance Rates--Limitation--Cost-
Reimbursement.

    As prescribed in 628.307, insert the following provision:

Defense Base Act Insurance Rates--Limitation--Cost-Reimbursement (Dec 
1994)

    (a) The Department of State has entered into a contract with an 
insurance carrier for Defense Base Act (DBA) insurance which applies 
to all contracts entered into by the Department which requires DBA 
insurance coverage. In preparing the cost proposal, the offeror 
shall use the following rates in computing the cost for such 
insurance:
    Services--[contracting officer insert current rate] of 
compensation (direct salary plus differential but excluding per 
diem, housing allowance, education allowance, and miscellaneous 
allowances); and
    (2) Construction--[contracting officer insert current rate] of 
compensation.
    (b) These rates apply to all job classifications in those 
particular categories. The successful offeror shall be advised of 
the name and address of the insurance broker who will process the 
DBA insurance coverage.
    (c) Should an offeror compute or include higher DBA insurance 
rates, the rates shall be disallowed.
    (d) Offerors shall include in their proposals a statement as to 
whether or not local nationals or third country nationals are 
proposed on this contract.

(End of provision)

    151. Section 652.228-77 is added to read as follows:


652.228-77  Defense Base Act Insurance Rates--Limitation--Labor-Hour 
and Time-and-Materials.

    As prescribed in 628.307-70, insert the following provision:

Defense Base Act Insurance Rates--Limitation--Labor-Hour and Time-and-
Materials (Dec 1994)

    (a) The Department of State has entered into a contract with an 
insurance carrier for Defense Base Act (DBA) insurance which applies 
to all contracts entered into by the Department which requires DBA 
insurance coverage. In preparing the cost proposal, the offeror 
shall use the following rates in computing the cost for such 
insurance:
    (1) Services--[contracting officer insert current rate] of 
compensation (direct salary plus differential but excluding per 
diem, housing allowance, education allowance, and miscellaneous 
allowances); and
    (2) Construction--[contracting officer insert current rate] of 
compensation.
    (b) These rates apply to all job classifications in those 
particular categories. The successful offeror shall be advised of 
the name and address of the insurance broker who will process the 
DBA insurance coverage.
    (c) Offerors shall include in their proposals a statement as to 
whether or not local nationals or third country nationals are 
proposed on this contract.

(End of provision)

    152. Section 652.232-70 is revised to read as follows:


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) (Dec 1994)

    (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] copies to the Office identified in Block 5 of the SF-26 or 
Block 7 of the SF-33. 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)

    153. Section 652.232-71 is revised to read as follows:


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) (Dec 1994)

    (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 5 of the SF-26 or Block 7 of the SF-33.
    (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)

    154. Section 652.237-70 is revised to read as follows:


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)

    155. Section 652.237-71 is added to read as follows:


652.237-71  Identification/Building Pass.

    As prescribed in 637.110(b), insert the following clause.

Identification/Building Pass (Dec 1994)

    (a) The contractor shall obtain a Department of State building 
pass for all employees performing under this contract who require 
frequent and continuing access to Department of State facilities. 
Passes shall be issued only to contractor employees who are United 
States citizens. Passes will be issued by the Bureau of Diplomatic 
Security, Office of Procedural Security, Domestic Facilities 
Division. They shall be used for the purpose of contractor 
performance only, and shall not be used for any other purpose.
    (b) The contractor shall submit an application in the form 
prescribed by the COR. The contractor shall also provide a letter on 
company letterhead to accompany the application containing the 
following information:
    (1) The purpose for which the pass is being requested;
    (2) The type of access the applicant requires;
    (3) Whether or not the applicant has a valid security clearance; 
and,
    (4) The contract number and period of performance of the 
contract.
    (c) The complete package, including the COR's approval 
memorandum, shall be delivered to the Building Pass Application 
Unit, Room 309, State Annex Number 1, Columbia Plaza, 2401 E Street, 
NW., Washington, DC; or, the post security officer, if the contract 
is performed at a U.S. owned or leased building overseas. The 
employee(s) for whom the pass(es) is/are being requested may be 
required to personally submit the application and to provide 
evidence of identity and United States citizenship.
    (d) All contractor employees shall wear the passes in plain 
sight at all times while in Department of State buildings. All 
contractor employees shall show their passes when entering these 
buildings and upon request.
    (e) All passes shall be returned to the COR upon separation of 
the employee, or expiration or termination of the contract. Final 
payment under this contract shall not be made until all passes are 
returned to the COR.

(End of clause)

    156. Section 652.237-72 is added to read as follows:


652.237-72  Observance of Legal Holidays and Administrative Leave.

    As prescribed in 637.110(c), insert the following clause:

Observance of Legal Holidays and Administrative Leave (Dec 1994)

    (a) The Department of State observes the following days as 
holidays:

New Year's Day
Martin Luther King's Birthday
Presidents' Day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans Day
Thanksgiving Day
Christmas Day

Any other day designated by Federal law, Executive Order, or 
Presidential Proclamation.
    (b) When any such day falls on a Saturday, the preceding Friday 
is observed; when any such day falls on a Sunday, the following 
Monday is observed. 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 charged indirectly in accordance with the contractor's 
accounting policy.

(End of clause)

    157. Section 652.242-70 is amended by revising the introductory 
text; by revising the date from ``(JUL 1988)'' to ``(DEC 1994)''; by 
designating the existing clause text as paragraph (a); and, by adding a 
new paragraph (b) to read as follows:


652.242-70  Contracting Officer's Representative (COR).

    As prescribed in 642.271, insert a clause substantially the same as 
follows:

Contracting Officer's Representative (COR) (Dec 1994)

     (a) * * *
     (b) the COR is [insert name of COR].

(End of clause)

    158. Section 652.242-72 is amended by revising the clause date from 
``(JUL 1988)'' to ``(DEC 1994)''; by revising the chart in paragraph 
(a) to read as set forth below; by removing the designation ``\3/4\'''' 
and inserting ``19.05mm'' in its place in paragraph (b); by removing 
the words ``1000 pounds'' and inserting the words ``453.5kg'' in their 
place in the first sentence of paragraph (c); by removing the words 
``2 x 6-inch'', ``2 x 4-inch'', and ``10-inch'' and inserting the words 
``50.8  x  152.4mm'', ``50.8  x  101.6mm'', and ``254mm'' in their 
place, respectively, in the second sentence in paragraph (c); by 
removing the words ``pounds and'' in the third sentence of paragraph 
(c); by removing the words ``pounds and'' from the second sentence in 
paragraph (d); and, by removing the parenthetical ``(One kilogram 
equals 2.2046 pounds avoirdupois.)'' from paragraph (d);


652.242-72  Shipping Instructions.

* * * * *

Shipping Instructions (Dec 1994)

     (a) * * *

------------------------------------------------------------------------
  Weight of box and     Minimum dimensions of lumber for struts, frame  
      contents                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           
------------------------------------------------------------------------

* * * * *

PART 653--FORMS

    159. Section 653.213-70 is revised to read as follows:


653.213-70  DOS forms (OF-206, OF-206A, DST-1918, DST-1919, DST-1920).

    As provided in 613.505-2 and 613.505-70,the following forms are 
prescribed for use in simplified acquisitions, delivery orders, and 
blanket purchase agreements:
    (a) Optional Form (OF) 206, Purchase Order, Receiving Report and 
Voucher, and Optional Form (OF) 206A, Continuation Sheet. OF-206 and 
OF-206A are prescribed for use by overseas contracting activities in 
lieu of the OF-347 and OF-348, as specified in 613.505-2(a).
    (b) Optional Form (OF) 127, Receiving and Inspection Report. OF/127 
is prescribed for use by overseas contracting activities as a receiving 
report when using the OF-206, as specified in 613.505-2(b).
    (c) DST-1918, Purchase Order File. DST-1918 is prescribed for use 
in recording and documenting relevant data pertaining to open market 
simplified acquisitions, as specified in 613.505-70.
    (d) DST-1919, Deliver Order File. DST-1919 is prescribed for use in 
recording and documenting relevant data pertaining to delivery orders 
issued against GSA mandatory and nonmandatory schedule contracts, as 
well as Department of State and other agency contracts, as specified in 
613.505-70.
    (e) DST-1920, Blanket Purchase Agreement (BPA) File. DST-1920 is 
prescribed for use in recording and documenting relevant data 
pertaining to Blanket Purchase Agreements, as specified in 613.505-70.
    160. Sections 653.217 and 653.217-70 are added to read as follows:


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.
    161. Sections 653.219 and 653.219-70 are added to read as follows:


653.219  Small business and small disadvantaged business concerns.


653.219-70  DOS form DS-1910, Small Business/Labor Surplus Agency 
Review--Actions Above the Small Purchase Limitation.

    As prescribed in 619.501(c), DS-1910 is prescribed for use in 
documenting set-aside decisions.


653.302  [Removed]

    162. Section 653.302 is removed.

SUBCHAPTER I--DOS SUPPLEMENTATIONS

PART 670--[REMOVED]

    163. Subchapter I, consisting of Part 670, is removed.

    Dated: December 14, 1994.
Lloyd W. Pratsch,
Procurement Executive.
[FR Doc. 94-31211 Filed 12-27-94; 8:45 am]
BILLING CODE 4710-24-M