[Federal Register Volume 60, Number 55 (Wednesday, March 22, 1995)]
[Proposed Rules]
[Pages 15220-15223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7120]




[[Page 15219]]

_______________________________________________________________________

Part VIII

Department of Defense

General Services Administration

National Aeronautics and Space Administration
8______________________________________________________________________



48 CFR Parts 12 and 52



Federal Acquisition Regulation (FAR); Subcontracts for Commercial 
Items; Proposed Rule

  Federal Register / Vol. 60, No. 55 / Wednesday, March 22, 1995 / 
Proposed Rules   
[[Page 15220]] 

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 12 and 52

[FAR Case 94-791]
RIN 9000-AG47


Federal Acquisition Regulations; Subcontracts for Commercial 
Items

agencies: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

action: Proposed rule.

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

summary: At 60 FR 11198, March 1, 1995, a proposed rule was published 
in the Federal Register to amend the Federal Acquisition Regulation 
(FAR) to implement portions of Title VIII of the Federal Acquisition 
Streamlining Act of 1994 (the Act) dealing with the acquisition of 
commercial items. The background and the regulatory text of that 
proposed rule stated that the list of laws and the list of clauses 
would be published at a later date. This case provides the complete 
list of laws determined to be inapplicable to Executive agency 
contracts and subcontracts for commercial items and the clauses 
determined to be applicable to subcontracts for the acquisition of 
commercial items. This regulatory action was subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993.

DATES: Comments should be submitted on or before May 22, 1995, to be 
considered in the formulation of a final rule.
    Public Meeting: April 3, 1995, 1 p.m. at: General Services 
Administration Auditorium, 18th & F Streets, NW, First Floor, 
Washington, DC 20405.
    Written and Oral Statements: Statements prepared for oral 
presentation must be sent to the FAR Secretariat at the address given 
below, not later than March 29, 1995.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (VRS), 18th & F 
Streets, NW, Room 4037, Washington, DC 20405.
    Please cite FAR case 94-791 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: Colonel Laurence M. Trowel, Commercial 
Items Team Leader, at (703) 695-3858 in reference to this FAR case. For 
general information, contact the FAR Secretariat, Room 4037, GS 
Building, Washington, DC 20405 (202) 501-4755. Please cite FAR case 94-
791.

SUPPLEMENTARY INFORMATION: 

A. Background

    The Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-355) 
provides authorities that streamline the acquisition process and 
minimize burdensome Government-unique requirements. Major changes that 
can be expected in the acquisition process as a result of 
implementation of the Act include changes in the areas of Commercial 
Item Acquisition, Simplified Acquisition Procedures, the Truth in 
Negotiations Act, and Introduction of the Federal Acquisition Computer 
Network (FACNET).
    This notice announces proposed revisions developed under FAR Case 
94-791, Subcontracts for Commercial Items. FAR Case 94-790, published 
as a proposed rule at 60 FR 11198, March 1, 1995, proposed revisions to 
the FAR to implement portions of Title VIII of the Federal Acquisition 
Streamlining Act of 1994. In the supplementary information, paragraph 
A, Background, and at the following three citations in that proposed 
rule, the Federal Register notice indicated that the list of laws 
determined to be inapplicable to subcontracts for the acquisition of 
commercial items in accordance with section 8003(a) of the Act and the 
list of clauses applicable to subcontracts for the acquisition of 
commercial items would be published in the Federal Register in a future 
proposed rule under FAR case 94-791:

--Proposed FAR 12.403, Applicability of certain laws to subcontracts 
for the acquisition of commercial items, at paragraphs (a), (b), and 
(c);
--Proposed FAR 52.212-5, Contract Terms and Conditions Required to 
Implement Statutes or Executive Orders--Commercial Items, at paragraph 
(d); and
--Proposed FAR 52.244-XX, Subcontracts for Commercial Items and 
Commercial Components, at paragraph (d).

    This proposed rule revises the earlier rule by providing the full 
list of laws determined to be inapplicable to prime contracts at 
12.402, and provides the list of laws determined to be inapplicable to 
subcontracts at 12.403. In addition, this proposed rule includes the 
clauses determined to be applicable to subcontracts for the acquisition 
of commercial items at 52.212-5 paragraph (d) and 522.244-XX, paragraph 
(d).
    An area of concern discussed extensively by the Team was the 
applicability of the Buy American Act (41 U.S.C. 10 (a)-(d)) and Trade 
Agreements Act (19 U.S.C. 2512(a)) to subcontracts. The Buy American 
Act requires that ``only such unmanufactured articles, materials, and 
supplies as have been mined or produced in the United States, and only 
such manufactured articles, materials, and supplies as have been 
manufactured in the United States substantially all from articles, 
materials, or supplies mined, produced, or manufactured, as the case 
may be, in the United States, shall be acquired for public use.'' The 
effect of this language is that prime contractors must consider the 
cost and origin of components in determining whether an end item 
manufactured in the United States meets the definition of a domestic 
end product. While the Act does not specifically use the terms 
``subcontract'' or ``subcontractors,'' concern was raised that 
including these two laws on the list of laws inapplicable to 
subcontractors would result in confusion regarding whether the cost and 
origin of subcontractor components needed to be considered for 
commercial items. Consequently, the decision was made to leave these 
two laws off the list at 12.403 and solicit further public comment on 
the issue.
    The proposed rule at 12.402 and 12.403 includes the full list of 
laws (Civilian and DOD-unique) determined to be inapplicable at both 
the prime and subcontractor level. Including the full list of laws in 
this case provides the public with a complete view of the Government's 
implementation of Section 8003. The final disposition of the DOD-unique 
laws, with respect to inclusion in the FAR, will be determined during 
the resolution of public comments.
    Public Meeting. The FAR Council is interested in an exchange of 
ideas and opinions on this rule. For that reason, the FAR Council is 
conducting a series of public meetings. A public meeting will be held 
on April 3, 1995, with respect to FAR Case 94-790, Acquisition of 
Commercial Items. This rule, FAR Case 94-791, will also be discussed at 
the April 3rd meeting. The public is encouraged to furnish its views; 
the Council anticipates that public comments will be very helpful in 
formulating final rules.
    Persons or organizations wishing to make presentations will be 
allowed 10 minutes each, provided they notify the FAR Secretariat at 
(202) 501-4755 and submit written statements of the presentation by 
March 29, 1995. Persons or organizations with similar positions 
[[Page 15221]] are encouraged to select a common spokesman for 
presentation of their views. This meeting, in conjunction with the 
Federal Register notice soliciting public comments on the rule, will be 
the only opportunity for the public to present its views.

B. Regulatory Flexibility Act

    This proposed rule will have a significant economic impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. This rule will have a 
beneficial impact by significantly limiting the flow down of 
Government-unique terms and conditions to subcontractors at all levels 
thereby minimizing the burden on a significant number of small 
businesses.
    An Initial Regulatory Flexibility Analysis (IRFA) was provided to 
the Chief Counsel for Advocacy for the Small Business Administration in 
conjunction with FAR Case 94-790, Acquisition of Commercial Items. That 
IRFA applies to this rule as well. A copy of the IRFA may be obtained 
from the FAR Secretariat. Comments are invited. Comments from small 
entities concerning the affected FAR subpart will be considered in 
accordance with 5 U.S.C. 610. Such comments must be submitted 
separately and should cite 5 U.S.C. 601 et seq. (FAR Case 94-791), in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose recordkeeping or information 
collection requirements, or collections of information from offerors, 
contractors, or members of the public which require the approval of the 
Office of Management and Budget under 44 U.S.C. 3501 et seq.

List of Subjects in 48 CFR Parts 12 and 52

    Government procurement.

    Dated: March 20, 1995.
Edward Loeb,
Deputy Project Manager for the Implementation of the Federal 
Acquisition Streamlining Act of 1994.
    Therefore, it is proposed that 48 CFR Parts 12 and 52 be amended as 
set forth below:
    1. The authority citation for 48 CFR Parts 12 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 12--ACQUISITION OF COMMERCIAL ITEMS

    2. In the table of contents, the title of Part 12 is revised as set 
forth above.
    3. Section 12.402 is revised to read as follows:


12.402  Applicability of certain laws to executive agency contracts for 
the acquisition of commercial items.

    (a) The following laws are not applicable to executive agency 
contracts for the acquisition of commercial items:
    (1) 41 U.S.C. 43, Walsh-Healey Act (see 48 CFR (FAR) part 22, 
subpart 22.6);
    (2) 41 U.S.C. 254(a) and 10 U.S.C. 2306(b), Contingent Fees (see 48 
CFR (FAR) 3.404);
    (3) 41 U.S.C. 416(a)(6), Minimum Response Time for Offers under 
Office of Federal Procurement Policy Act (see 48 CFR (FAR) 5.203);
    (4) 41 U.S.C. 701 et seq., Drug-Free Workplace Act of 1988 (see 48 
CFR (FAR) 23.501);
    (5) 10 U.S.C. 2384(b), Requirement to Identify Suppliers and 
Sources of Supply (see 48 CFR (DFARS) part 217, subpart 217.73);
    (6) 10 U.S.C. 2397, Reports by Employees or Former Employees of 
Defense Contractors;
    (7) 10 U.S.C. 2397c, Defense Contractor Requirements Concerning 
Former DoD Officials;
    (8) 10 U.S.C. 2408, Prohibition on Persons Convicted of Defense-
Related Felonies (see 48 CFR (DFARS) 203.57); and
    (9) 10 U.S.C. 2410b, Contractor Inventory Accounting System 
Standards (see 48 CFR (DFARS) part 242, subpart 242.72).
    (b) Certain requirements of the following laws have been eliminated 
for executive agency contracts for the acquisition of commercial items:
    (1) 33 U.S.C. 1368, Requirement for a certificate and clause under 
the Federal Walter Pollution Control Act (see 48 CFR (FAR) 23.105);
    (2) 40 U.S.C. 327 et seq., Requirement for a certificate and clause 
under the Contract Work Hours and Safety Standards Act (see 48 CFR 
(FAR) 22.305);
    (3) 41 U.S.C. 57(a) and (b), and 58, Requirement for a clause and 
certain other requirements related to the Anti-Kickback Act of 1986 
(see 48 CFR (FAR) 3.502);
    (4) 41 U.S.C. 423e(1)(B), Requirement for certain certifications 
under the Procurement Integrity Act (see 48 CFR (FAR) 3.104-9);
    (5) 42 U.S.C. 7606, Requirement for a certificate and clause under 
the Clean Air Act (see 48 CFR (FAR) 23.105); and
    (6) 49 U.S.C. 40118, Requirement for a certificate and clause under 
Fly American provisions (see 48 CFR (FAR) 47.405).
    (c) The applicability of the following laws have been modified in 
regards to executive agency contracts for the acquisition of commercial 
items:
    (1) 41 U.S.C. 253g and 10 U.S.C. 2402, Prohibition on Limiting 
Subcontractor Direct Sales to the United States (see 48 CFR (FAR) 
3.503);
    (2) 41 U.S.C. 254(d) and 10 U.S.C. 2306a, Truth in Negotiations Act 
(see 48 CFR (FAR) 15.804);
    (3) 41 U.S.C. 422, Cost Accounting Standards (see 48 CFR (FAR) Part 
99); and
    (4) 10 U.S.C. 2397b, Limits on Employment for Certain Former DoD 
Officials (see 48 CFR (FAR) 203.170).
    (d) The FAR prescription, provision or clause for each of these 
statutes has been revised in the appropriate part to reflect their 
proper application to the acquisition of commercial items.
    4. Section 12.403 is revised to read as follows:


12.403  Applicability of certain laws to subcontracts for the 
acquisition of commercial items.

    (a) The following laws are not applicable to subcontracts under 
either a contract for the acquisition of commercial items or a 
subcontract for the acquisition of commercial items:
    (1) 15 U.S.C. 644(d), Requirements relative to labor surplus areas 
under the Small Business Act (see 49 CFR (FAR) part 19, subpart 19.2);
    (2) 41 U.S.C. 43, Walsh-Healey Act (see 48 CFR (FAR) part 22, 
subpart 22.6);
    (3) 41 U.S.C. 253d, Validation of Proprietary Data Restrictions 
(see 48 CFR (FAR) part 27, subpart 27.4);
    (4) 41 U.S.C. 254(a) and 10 U.S.C. 2306(b), Contingent Fees (see 48 
CFR (FAR) part 3, subpart 3.4);
    (5) 41 U.S.C. 416(a)(6), Minimum Response Time for Offers under 
Office of Federal Procurement Policy Act (see 48 CFR (FAR) part 5, 
subpart 5.2);
    (6) 41 U.S.C. 418a, Rights in Technical Data (see 48 CFR (FAR) part 
27, subpart 27.4);
    (7) 41 U.S.C. 701 et seq., Drug-Free Workplace Act of 1988 (see 48 
CFR (FAR) 23.5);
    (8) 46 U.S.C. 1241(b), Transportation in American Vessels of 
Government Personnel and Certain Cargo (see 48 CFR (FAR) part 47, 
subpart 47.5);
    (9) 49 U.S.C. 40118, Fly American provisions (see 48 CFR (FAR) part 
47, subpart 47.4);
    (10) Pub. L. 90-469, William Langer Jewel Bearing Plant Special Act 
(see 48 CFR (FAR) part 8, subpart 8.2); [[Page 15222]] 
    (11) 10 U.S.C. 2301, note, as amended by Section 2091, Pub. L. 103-
355, Payment Protections for Subcontractors and Suppliers (see 48 CFR 
(FAR) part 28, subpart 28.1 and part 32, subpart 32.1);
    (12) 10 U.S.C. 2241, note (Pub. L. 102-396, Section 9005, as 
amended by Pub. L. 103-139, Section 8005), Limitations on Procurement 
of Food, Clothing, and Specialty Metals Not Produced in the United 
States (see 48 CFR (DFARS) part 225, subpart 225.70);
    (13) 10 U.S.C. 2320, Rights in Technical Data (see 48 CFR (DFARS) 
part 227, subpart 227.4);
    (14) 10 U.S.C. 2321, Validation of Proprietary Data Restrictions 
(see 48 CFR (DFARS) part 227, subpart 227.4);
    (15) 10 U.S.C. 2327, note (Pub. L. 103-160, Section 843), Reporting 
Requirement Regarding Dealings with Terrorist Countries (see 48 CFR 
(DFARS) part 209, subpart 209.1);
    (16) 10 U.S.C. 2391, note (Pub. L. 101-510, Section 4201(a)(1)(B)), 
Notification of Substantial Impact on Employment (see 48 CFR (DFARS) 
part 249, subpart 249.70);
    (17) 10 U.S.C. 2393, Prohibition Against Doing Business with 
Certain Offerors or Contractors (see 48 CFR (DFARS) part 209, subpart 
209.4);
    (18) 10 U.S.C. 2501, note (Pub. L. 103-160, Section 1372), 
Notification of Proposed Program Termination (see 48 CFR (DFARS) part 
249, subpart 249.70);
    (19) 10 U.S.C. 2534, Miscellaneous Limitations on the Procurement 
of Goods other than United States Goods (see 48 CFR (DFARS) part 225, 
subparts 225.7004, 225.7007, 225.7010, and 225.7016);
    (20) 10 U.S.C. 2631, Cargo Preference Act (see 48 CFR (DFARS) 
247.5); and
    (21) National Defense Authorization Acts, Appropriations Acts, and 
Other Statutory Restrictions on Foreign Purchases as follows: Pub. L. 
100-202, Section 8088, Polyacrylonitrile Based Carbon Fiber; Pub. L. 
101-511, Section 8041, Anchor and Mooring Chain; Pub. L. 102-172, 
Section 8111, Carbon, Alloy and Armor Steel Plates; Pub. L. 102-396, 
Section 9108, Four Ton Dolly Jacks; Pub. L. 102-484, Section 832, Anti 
friction Bearings; Pub. L. 103-139, Section 8090, Aircraft Fuel Cells; 
Pub. L. 103-139, Section 8124, Totally Enclosed Lifeboat Survival 
Systems; Pub. L. 103-335, Section 8023, Supercomputers; Pub. L. 103-
335, Section 8050, Multibeam Sonar Mapping Systems; Pub. L. 103-335, 
Section 8115, Ship Propellers; and Pub. L. 103-335, Section 8120, 120 
mm Mortars and Ammunition.
    (b) Certain requirements of the following laws have been eliminated 
for subcontracts under either a contract for the acquisition of 
commercial items or subcontract for the acquisition of commercial 
items:
    (1) 33 U.S.C. 1368, Requirement for a certificate and clause under 
the Federal Water Pollution Control Act (see 48 CFR (FAR) part 23, 
subpart 23.1);
    (2) 40 U.S.C. 327 et seq., Requirement for a certificate and clause 
under the Contract Work Hours and Safety Standards Act (see 48 CFR 
(FAR) part 22, subpart 22.3);
    (3) 41 U.S.C. 423e(1)(B), Requirement for certain certifications 
under the Procurement Integrity Act (see 48 CFR (FAR) part 3, subpart 
3.1); and
    (4) 42 U.S.C. 7606, Requirements for a certificate and clause under 
the Clean Air Act (see 48 CFR (FAR) part 23, subpart 23.1).
    (c) The applicability of the following laws have been modified in 
regards to subcontracts under either a contract for the acquisition of 
commercial items or a subcontract for the acquisition of commercial 
items:
    (1) 41 U.S.C. 253g and 10 U.S.C. 2402, Prohibition on Limiting 
Subcontractor Direct Sales to the United States (see 48 CFR (FAR) part 
3, subpart 3.5);
    (2) 41 U.S.C. 254(d) and 10 U.S.C. 2306a, Truth in Negotiations Act 
(see 48 CFR (FAR) part 15, subpart 15.8); and
    (3) 41 U.S.C. 422, Cost Accounting Standards (see 48 CFR (FAR) part 
99).
    (d) The FAR prescription, provision or clause for each of these 
statutes has been revised in the appropriate part to reflect their 
proper application to the acquisition of commercial items.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Section 52.212-5 is revised to read as follows:


52.212-5  Contract Terms and Conditions Required to Implement Statutes 
or Executive Orders--Commercial Items.

    As prescribed in 12.302(b)(4), insert the following clause:

Contract Terms and Conditions Required to Implement Statutes or 
Executive Orders--Commercial Items (XXX 1995)

    (a) The Contractor agrees to comply with the following FAR 
clauses, which are incorporated in this contract by reference, to 
implement provisions of law or executive orders applicable to 
acquisitions of commercial items:
    (1) 52.219-8, Utilization of Small Business Concerns and Small 
Disadvantaged Business Concerns (15 U.S.C. 637 (d)(2) and (3));
    (2) 52.222-3, Convict Labor (E.O. 11755); and
    (3) 52.233-3, Protest After Award (31 U.S.C. 3553 and 40 U.S.C. 
759).
    (b) The Contractor agrees to comply with the following FAR and 
FIRMR clauses in this paragraph (b) that are indicated as being 
incorporated in this contract by reference to implement provisions 
of law or executive orders applicable to acquisitions of commercial 
items or components:
    ____ (1) 52.203-6, Restrictions on Subcontractor Sales to the 
Government, with Alternate I (41 U.S.C. 253g and 10 U.S.C. 2402).
    ____ (2) 52.203-10, Price or Fee Adjustment for Illegal or 
Improper Activity (41 U.S.C. 423).
    ____ (3) 52.219-14, Limitation on Subcontracting (15 U.S.C. 
637(a)(14)).
    ____ (4) 52.222-26, Equal Opportunity (E.O. 11246).
    ____ (5) 52.222-35, Affirmative Action for Special Disabled and 
Vietnam Era Veterans (38 U.S.C. 2012).
    ____ (6) 52.222-36, Affirmative Action for Handicapped Workers 
(29 U.S.C. 793).
    ____ (7) 52.222-37, Employment Reports on Special Disabled 
Veterans and Veterans of the Vietnam Era (38 U.S.C. 2012).
    ____ (8) 52.225-3, Buy American Act--Supplies (41 U.S.C. 10).
    ____ (9) 52.225-9, Buy American Act--Trade Agreements Act--
Balance of Payments Program (41 U.S.C. 10, 19 U.S.C. 2501-2582).
    ____ (10) 52.225-17, Buy American Act--Supplies Under European 
Community Sanctions for End Products (E.O. 12849).
    ____ (11) 52.225-18, European Community Sanctions for End 
Products (E.O. 12849).
    ____ (12) 52.225-19, European Community Sanctions for Services 
(E.O. 12849).
    ____ (13) 52.225-21, Buy American Act--North American Free Trade 
Agreement Implementation Act--Balance of Payments Program (41 U.S.C. 
10, Pub. L. 103-187).
    ____ (14) 52.247-64, Preference for Privately Owned US Flagged 
Commercial Vessels (46 U.S.C. 1241).
    ____ (15) 201-39.5202-3, Procurement Authority (FIRMR).
    (This acquisition is being conducted under ______ delegation of 
GSA's exclusive procurement authority for FIP resources. The 
specific GSA DPA case number is ______.)
    (c) The Contractor agrees to comply with the following FAR 
clauses in this paragraph (c), applicable to commercial services, 
that are indicated as being incorporated in this contract by 
reference to implement provisions of law or executive orders 
applicable to acquisitions of commercial items or components:
    ____ (1) 52.222-41, Service Contract Act of 1965, as amended (41 
U.S.C. 351, et seq.).
    ____ (2) 52.222-42, Statement of Equivalent Rates for Federal 
Hires (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).
    ____ (3) 52.222-43, Fair Labor Standards Act and Service 
Contract Act--Price Adjustment (Multiple Year and Option Contracts) 
(29 U.S.C. 206 and 41 U.S.C. 351 et seq.).
    ____ (4) 52.222-44, Fair Labor Standards Act and Service 
Contract Act--Price Adjustment (29 U.S.C. 206 and 41 U.S.C. 351 et 
seq.).
    ____ (5) 52.222-47, SCA Minimum Wages and Fringe Benefits 
Applicable to Successor Contract Pursuant to Predecessor Contractor 
Collective Bargaining Agreement (CBA) (41 U.S.C. 351 et 
seq.). [[Page 15223]] 
    (d) Notwithstanding the requirements of the clauses in 
paragraphs (a), (b) or (c) of this clause, the Contractor is not 
required to include any FAR clause, other than those listed below, 
in a subcontract for commercial items or commercial components--
    (1) 52.222-26, Equal Opportunity (E.O. 11246);
    (2) 52.222-35, Affirmative Action for Special Disabled and 
Vietnam Era Veterans (38 U.S.C. 2012(a)); and
    (3) 52.222-36, Affirmative Action for Handicapped Workers (29 
U.S.C. 793).

(End of clause)

    6. Section 52.244-XX is added to read as follows:


52.244-XX  Subcontracts for Commercial Items and Commercial Components.

    As prescribed in 44.403, insert the following clause:

Subcontracts for Commercial Items and Commercial Components (XXX 1995)

    (a) Definition. Commercial item, as used in this clause, has the 
meaning contained in the clause at 52.202-1, Definitions.
    Subcontract, as used in this clause, includes a transfer of 
commercial items between divisions, subsidiaries, or affiliates of 
the Contractor or subcontractor.
    (b) To the maximum extent practicable, the Contractor shall 
incorporate, and require its subcontractors at all levels to 
incorporate, commercial items or nondevelopmental items other than 
commercial items, as components of items to be supplied under this 
contract.
    (c) If in awarding a subcontract for commercial items an 
exception under 15.804-1(a) does not apply, the subcontractor may be 
required to submit cost or pricing data and comply with the 
appropriate clauses prescribed in FAR Part 15.
    (d) Notwithstanding any other clause of this contract, the 
Contractor is not required to include any FAR provision or clause, 
other than those listed below and as may be required by paragraph 
(c) of this clause, in a subcontract for commercial items or 
commercial components:
    (1) 52.203-12, Limitation on Payments to Influence Certain 
Federal Transactions (31 U.S.C. 1352);
    (2) 52.222-26, Equal Opportunity (E.O. 11246);
    (3) 52.222-35, Affirmative Action for Special Disabled and 
Vietnam Era Veterans (38 U.S.C. 2012(a)); and
    (4) 52.222-36, Affirmative Action for Handicapped Workers (29 
U.S.C. 793).
    (e) The Contractor shall include the terms of this clause, 
including this paragraph (e), in subcontracts awarded under this 
contract.

(End of clause)

[FR Doc. 95-7120 Filed 3-21-95; 8:45 am]
BILLING CODE 6820-34-M