[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)]
[Rules and Regulations]
[Pages 7739-7751]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4480]



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DEPARTMENT OF DEFENSE

48 CFR Parts 202, 204, 209, 213, 215, 216, 217, 223, 225, 228, 232, 
235, 236, 242, 246, 252, 253, and Appendix G to Chapter 2

[Defense Acquisition Circular (DAC) 91-10]


Defense Federal Acquisition Regulation Supplement; Miscellaneous 
Amendments

AGENCY: Department of Defense (DoD).

ACTION: Final rules.

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SUMMARY: Defense Acquisition Circular (DAC) 91-10 amends the Defense 
Federal Acquisition Regulation Supplement (DFARS) to revise, finalize, 
or add language on undefinitized contract actions; warranties; 
institutions of higher education; should cost reviews; construction and 
architect-engineer contracts; sensitive conventional arms, ammunition, 
and explosives; international trade agreements; foreign offset 
agreements; tank and automotive forging items; progress payment rates; 
research and development contracting; contract administration; and 
foreign military sales.

EFFECTIVE DATE: February 29, 1996.

FOR FURTHER INFORMATION CONTACT:
Mrs. Susan Buckmaster, OUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131. Telefax 
(703) 602-0350.

SUPPLEMENTARY INFORMATION:

A. Background

    This Defense Acquisition Circular (DAC) 91-10 includes 17 rules and 
miscellaneous editorial amendments. Three of the rules in the DAC 
(Items VII, X, and XVII) were published previously in the Federal 
Register (61 FR 130, January 3, 1996; 61 FR 3600, February 1, 1996; and 
February 26, 1996; respectively) and thus are not included as part of 
this rulemaking notice. These three rules are being published in the 
DAC to conform the loose-leaf edition of DFARS to the previously 
published revisions.

B. Regulatory Flexibility Act

DAC 91-10, Items IV, XII, XIII, XIV, XV, and XVI

    The Regulatory Flexibility Act does not apply because these rules 
are not significant revisions within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq. However, comments from small 
entities will be considered in accordance with Section 610 of the Act. 
Please cite the applicable DFARS case number in correspondence.

DAC 91-10, Items I, III, V, VIII, IX, and XI

    DoD certifies that these rules will not have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act because:
    Item I--The rule primarily (1) pertains to internal Government 
considerations regarding use of warranties; and (2) consolidates and 
standardizes existing regulatory requirements pertaining to 
undefinitized contract actions.
    Item III--Contracts awarded to small entities normally are not 
subject to program or overhead should-cost reviews.
    Item V--The rule merely provides a standard method of implementing 
security requirements which already exist under DoD 5100.76-M.
    Item VIII--The rule retains the policy of acquiring tank and 
automotive forging items from domestic sources to the maximum extent 
practicable. The new exception only applies to forging items purchased 
as tank and automotive spare parts, when the end use of the spare parts 
is unknown.
    Item IX--The rule merely clarifies the scope of offset 
administrative costs that 

[[Page 7740]]
contractors may recover under foreign military sales contracts. Also, 
most companies involved in offset arrangements are not small 
businesses.
    Item XI--The reduction in the customary progress payment rate only 
applies to large businesses. While the rule also precludes the use of 
flexible progress payments for contracts resulting from solicitations 
issued on or after November 30, 1993, this change is not expected to 
have a significant economic impact on a substantial number of small 
entities, because the customary progress payment rates for small and 
small disadvantaged businesses generally are more favorable than a 
flexible progress payment rate with its associated terms and 
conditions.

DAC 91-10, Items II and VI

    The Regulatory Flexibility Act applies. A final regulatory analysis 
has been performed and is available by writing the Defense Acquisition 
Regulations Council, OUSD(A&T)DP(DAR), 3062 Defense Pentagon, 
Washington, DC 20301-3062

C. Paperwork Reduction Act

DAC 91-10, Items I, II, III, IV, VI, VIII, IX, XI, XII, XIII, XIV, XV, 
and XVI

    The Paperwork Reduction Act does not apply because these rules do 
not impose any information collection requirements which require the 
approval of OMB under 44 U.S.C. 3501 et seq.

DAC 91-10, Item V

    The Paperwork Reduction Act applies. OMB has approved the 
information collection requirement under OMB Control Number 0704-0385.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Defense Acquisition Circular (DAC) 91-10 amends the Defense Federal 
Acquisition Regulation Supplement (DFARS) 1991 edition. The amendments 
are summarized as follows:

Item I--Contract Award (DFARS Case 95-D702)

    This final rule (1) amends DFARS Parts 216 and 217 to implement 
Section 1505 of Pub. L. 103-355 and to clarify guidance on 
undefinitized contract actions (UCAs); (2) amends the guidance on 
warranties at 246.770 to implement Section 2402 of Pub. L. 103-355; and 
(3) adds a new clause on definitization of UCAs at 252.217-7027. The 
new clause is similar to, and will be used instead of, the clause as 
FAR 52.216-25, Contract Definitization, which was designed for use in 
letter contracts only.

Item II--Institutions of Higher Education (DFARS Case 94-D310)

    The interim rule published as Item IX of DAC91-9 is revised and 
finalized. The rule implements Section 558 of the Fiscal Year 1995 
Defense Authorization Act (Pub. L. 103-337). Section 558 provides that 
no funds available to DoD may be provided by grant or contract to any 
institution of higher education that has a policy of denying, or which 
effectively prevents the Secretary of Defense from obtaining for 
military recruiting purposes, entry to campuses, access to students on 
campuses, or access to directory information pertaining to students. 
The final rule differs from the interim rule in that it makes 
clarifying revisions at 209.470-1 and 252.209-7005, and adds language 
at 209.470-1(c) to state that, when specific subordinate elements of an 
institution of higher education, rather than the institution as a 
whole, have a prohibited policy or practice, the prohibition on use of 
DoD funds applies only to those subordinate elements.

Item III--Overhead Should Cost Reviews (DFARS Case 92-D010

    This final rule revises DFARS 215.810 to specify when DoD 
activities should consider performing an overhead should cost review of 
a contractor business unit. This DFARS rule supplements the FAR rule 
published as Item VIII of Federal Acquisition Circular 90-37 on January 
26, 1996. Both the FAR and the DFARS rules become effective on March 
26, 1996.

Item IV--Cost-Plus-Fixed-Fee Contracts for Military Construction (DFARS 
Case 95-D024)

    This final rule adds new sections at DFARS 216.306 and 232.703-70 
and revises 236.271 to expand guidance on statutory restrictions 
pertaining to the use of cost-plus-fixed-fee contracts for military 
construction.

Item V--Safeguarding Sensitive Conventional Arms, Ammunition, and 
Explosives (DFARS Case 95-D001)

    This final rule adds a new subpart at DFARS 223.72 and a new 
contract clause at 252.223-7007 to provide guidance on physical 
security requirements for contracts involving sensitive conventional 
arms, ammunition, and explosives. Section 204.202 is amended to specify 
additional requirements for distribution of contracts containing the 
clause at 252.223-7007.

Item VI--Applicability of Trade Agreements (DFARS Case 95-D022)

    This final rule amends DFARS 225.402 to provide that the value of 
an acquisition for purposes of determining the applicability of both 
the North American Free Trade Agreement Act and the Trade Agreements 
Act is the total value of all end products subject to the acts.

Item VII--Uruguay Round (1996 Agreement) (DFARS Case 95-D306)

    This final rule was issued by Departmental Letter 95-019, effective 
January 1, 1996. The rule amends DFARS 225.402 and the clause at 
252.225-7007 to implement the DoD-unique requirements of the 
renegotiated General Agreement on Tariffs and Trade (GATT) Government 
Procurement Agreement (1996 Code) (Uruguay Round), which became 
effective January 1, 1996. This agreement is implemented in statute by 
the Uruguay Round Agreement Act, Pub. L. 103-465, which amends the 
Trade Agreements Act of 1979.

Item VIII--Tank and Automotive Forging Items (DFARS Case 95-D003)

    This final rule amends DFARS Subpart 225.71 to add an exception to 
the foreign source restrictions on the acquisition of forgings. The 
rule excludes forging purchases as tank and automotive spare parts from 
foreign source restrictions, except when it is known that the parts are 
for use in tanks only.

Item IX--Offset Implementation Costs (DFARS Case 95-D019)

    This final rule amends DFARS 225.7303-2 to clarify that, under a 
foreign military sales contract, a contractor may recover costs 
incurred to implement its offset agreement with a foreign government or 
international organization, if the foreign military sale Letter of 
Offer and Acceptance is financed wholly with customer cash or repayable 
foreign military finance credits.

Item X--Alternatives to Miller Act Bonds (DFARS Case 95-D305)

    This interim rule was issued by Departmental Letter 96-001, 
effective February 1, 1996. The rule revises the interim rule which was 
published as Item XXIII of DAC 91-9 to provide alternative payment 
protections for construction contracts between $25,000 and $100,000, 
pending implementation of Section 4104(b)(2) of the Federal Acquisition 
Streamlining Act of 1994 (Pub. L. 103-355) in the FAR. This interim 
rule amends the guidance at 

[[Page 7741]]
DFARS 228.171 to require the contracting officer to specify two or more 
alternative payment protections when using the clause at 252.228-7007, 
and to give particular consideration to use of an irrevocable letter of 
credit as one of the specified alternatives. This rule also amends the 
clause at 252.228-7007 to exclude payment bonds from the payment 
protections under which the contracting officer may access funds.

Item XI--Reduction in Progress Payment Rates (DFARS Case 93-D305)

    The interim rule published as Item XXVII of DAC 91-6 is revised and 
finalized. The rule implements Section 8155 of the Fiscal Year 1994 
Defense Appropriations Act (Pub. L. 103-139). Section 8155 requires DoD 
to reduce the customary progress payment rate for large business 
concerns from 85 percent to 75 percent for contracts resulting from 
solicitations issued on or after November 11, 1993. The final rule 
differs from the interim rule in that it makes an editorial change in 
the table at 232.502-1-71, and amends the clause at 252.232-7004 to 
state that the 75 percent customary progress payment rate for large 
business concerns also applies to progress payments made under 
undefinitized contract actions.

Item XII--Streamlined Research and Development (R&D) Update (DFARS Case 
95-D036)

    This final rule amends DFARS Subpart 235.70 to update 
administrative information pertaining to the streamlined R&D 
contracting test program, and to revise the list of clauses in the 
streamlined R&D contracting format to conform to FAR and DFARS 
revisions which occurred since initiation of the test program.

Item XIII--Performance Evaluations for Construction and Architect-
Engineer Contracts (DFARS Case 95-D034)

    This final rule amends DFARS 236.201 and 236.604 to prescribe use 
of DD Forms 2626 and 2631 in lieu of Standard Forms 1420 and 1421, 
respectively. The forms are used to document contractor performance 
under construction and architect-engineer contracts. Copies of DD Forms 
2626 and 2631 are added to Subpart 253.3.

Item XIV--Magnitude of Construction Projects (DFARS Case 95-D031)

    This final rule adds a new section at DFARS 236.204 to provide 
additional price ranges for identifying the magnitude of construction 
projects in advance notices and solicitations.

Item XV--Flexible Contract Administration Services (DFARS Case 95-
D030)

    This final rule amends DFARS 242.203 to expand the conditions under 
which the Defense Contract Management Command may perform contract 
administration services on a military installation.

Item XVI--Military Assistance Program Address (MAPAD) Codes (DFARS Case 
95-D032)

    This final rule amends DFARS 253./213-70 to clarify instructions 
for inclusion of foreign military sale shipment information in Block 14 
of DD Form 1155.

Item XVII--Allowability of Costs (DFARS Case 95-D309)

    This interim rule was issued by Departmental Letter 96-002, 
effective February 26, 1996. The rule adds language at DFARS 231.205-6 
to implememt Section 8122 of the Fiscal Year 1996 Defense 
Appropriations Act (Pub. L. 104-61). Section 8122 prohibits DoD from 
using fiscal year 1996 funds to reimburse a contractor for costs paid 
by the contractor to an employee for a bonus or other payment in excess 
of the normal salary paid to the employee, when such payment is part of 
restructuring costs associated with a business combination.

Item XVIII--Small Disadvantaged Business Utilization Program 
(Information Item)

    On October 23, 1995, the Under Secretary of Defense for Acquisition 
and Technology suspended those sections of the DFARS which prescribe 
set-aside of acquisitions for small disadvantaged businesses. This 
suspension takes account of the Supreme Court's decision in Adarand 
Constructors, Inc. v. Pena, 63 U.S.L.W. 4523 (U.S. June 12, 1995), 
while an interagency Government-wide review of affirmative action 
programs is conducted. The suspended DFARS sections are 219.501(S-70), 
219.502-2-70, 219.502-4, 219.504(b)(i), 219.506, 219.508(e), 219.508-
70, and 252.219-7002. Although these sections, and references thereto, 
still appear in the DFARS text, use of these sections is suspended 
until further notice.

Item XIX--Editorial Revisions

    (a) DFARS 202.101 and Appendix G are amended to update activity 
names and addresses.
    (b) DFARS Part 213 is amended to update statutory references and to 
conform to revisions to FAR Part 13 published in Federal Acquisition 
Circular 90-29.
    (c) DFARS 228.106-4, 228.106-4-70, 228.106-6, and 252.228-7006 are 
deleted. The guidance in these sections has been superseded by the 
guidance in FAR 28.106-4(b), 28.106-6(d), and 52.228-12, published in 
Federal Acquisition Circular 90-32.
    (d) DFARS Part 253 is amended to update DD Forms 375, 375c, 428, 
1659, 2222, 2222-2, and 2604. (This amendment is being made only in the 
loose-leaf edition of the DFARS.)

Interim Rules Adopted as Final With Changes

PARTS 209 AND 252--[AMENDED]

    The interim rule published at 60 FR 13073 on March 10, 1995, and 
amended at 60 FR 61593 and 61600 on November 30, 1995, is adopted as 
final with a revision at section 209.470-1 and amendments at section 
252.209-7005.

PARTS 232 AND 252--[AMENDED]

    The interim rule published at 58 FR 62045 on November 24, 1993, and 
corrected at 58 FR 64363 on December 6, 1993, is adopted as final with 
amendments at section 252.232-7004.

List of Subjects in 48 CFR Parts 202, 204, 209, 213, 215, 216, 217, 
223, 225, 228, 232, 235, 236, 242, 246, 252, 253, and Appendix G to 
Chapter 2

    Government procurement.

Amendments to 48 CFR Chapter 2 (Defense Federal Acquisition Regulation 
Supplement)

    48 CFR Chapter 2 (the Defense Federal Acquisition Regulation 
Supplement) is amended as set forth below.
    1. The authority for 48 CFR Parts 202, 204, 209, 213, 215, 216, 
217, 223, 225, 228, 232, 235, 236, 242, 246, 252, 253, and Appendix G 
to Chapter 2 continues to read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 202--DEFINITIONS OF WORDS AND TERMS


202.101  [Amended]

    2. Section 202.101 is amended in the definition entitled 
``Contracting activity'' under the heading ``NAVY,'' by removing the 
two entries ``Ships Parts Control Center'' and ``Navy Aviation Supply 
Office'', by adding the entry ``Naval Inventory Control Point'' after 
the entry ``Naval Facilities Engineering Command''; and by revising the 
entry ``U.S. Marine Corps Research, Development, and Acquisition 
Command'' to read ``Marine Corps Systems Command''.

[[Page 7742]]


PART 204--ADMINISTRATIVE MATTERS

    3. Section 204.202 is amended by removing in paragraph (1)(iii) the 
word ``and''; by removing in paragraph (1)(iv) the period and adding 
``; and''; and by adding a new paragraph (1)(v) to read as follows:


204.202  Agency distribution requirements.

    (1) * * * 
    (v) One copy, or an extract of the pertinent information, to the 
cognizant Defense Investigative Service office listed in DoD 5100.76-M, 
Physical Security of Sensitive Conventional Arms, Ammunition, and 
Explosives, when the clause at 252.223-7007, Safeguarding Sensitive 
Conventional Arms, Ammunition, and Explosives, is included in the 
contract.
* * * * *

PART 209--CONTRACTOR QUALIFICATIONS

    4. Section 209.470-1 is revised to read as follows:


209.470-1  Policy.

    (a) Section 558 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337) provides that no funds available 
to DoD may be provided by grant or contract to any institution of 
higher education that has a policy of denying or that effectively 
prevents the Secretary of Defense from obtaining for military 
recruiting purposes--
    (1) Entry to campuses or access to students on campuses; or
    (2) Access to directory information pertaining to students.
    (b) Institutions of higher education that are determined under 32 
CFR part 216 to have the policy or practice in paragraph (a) of this 
subsection shall be listed as ineligible on the List of Parties 
Excluded from Federal Procurement Programs published by the General 
Services Administration (see FAR 9.404).
    (c) In cases where a determination is made under 32 CFR part 216 
that specific subordinate elements of an institution of higher 
education, rather than the institution as a whole, have the policy or 
practice in paragraph (a) of this subsection, 32 CFR part 216 provides 
that the prohibition on use of DoD funds applies only to those 
subordinate elements.
    5. Part 213 heading is revised to read as follows:

PART 213--SIMPLIFIED ACQUISITION PROCEDURES


213.000  [Amended]

    6. Section 213.000 is amended by revising the words ``small 
purchase'' to read ``simplified acquisition'' and by revising the 
threshold ``$100,000'' to read ``$200,000''.
    7. Section 213.101 is amended by revising the introductory text; by 
adding a comma in paragraph (1) between the word ``operations'' and the 
word ``or''; and by revising paragraph (2). The revisions read as 
follows:


213.101  Definitions.

    Contingency operation is defined in 10 U.S.C. 101(a)(13) as a 
military operation that--
* * * * *
    (2) Results in the call or order to, or retention on, active duty 
of members of the uniformed services under section 688, 12301(a), 
12302, 12304, 12305, or 12406 of Title 10, chapter 15 of Title 10, or 
any other provision of law during a war or during a national emergency 
declared by the President or Congress.


213.204  [Amended]

    8. Section 213.204 is amended by revising in paragraph (b) the 
phrase ``above the dollar threshold at FAR 13.000'' to read ``not using 
simplified acquisition procedures.''


213.402  [Amended]

    9. Section 213.402 is redesignated as 213.401.


213.403  [Amended]

    10. Section 213.403 is redesignated as 213.402.


213.404  [Amended]

    11. Section 213.404 is redesignated as 213.403. Newly designated 
Section 213.403 is amended by adding a period at the end of paragraph 
(c)(i)(B); and by revising in paragraph (c)(ii) the words ``small 
purchases'' to read ``simplified acquisitions.''


213.502-2  [Amended]

    12. Section 213.502-2 is redesignated as Section 213.505-1. Newly 
designated Section 213.505-1 is amended by revising the heading to read 
``Optional Form (OF) 347, Order for Supplies or Services, and Optional 
Form 348, Order for Supplies or Services Schedule-Continuation.''; by 
removing in the introductory text the hyphen between the words 
``Services'' and ``Schedule''; by adding a hyphen between the words 
``Schedule'' and ``Continuation'', by revising in paragraph (b)(i) the 
words ``small purchase'' to read ``simplified acquisition''; and by 
revising the sentence in paragraph (b)(i)(F)(3) to read ``A purchase 
order for acquisitions using simplified acquisition procedures.''
    13. Section 213.505-3 is amended by revising paragraph (b)(1) 
introductory text to read as follows:


213.505-3  Standard Form 44, Purchase Order-Invoice-Voucher.

    (b)(1) The micro-purchase limitation applies to all purchasers 
except that purchases up to the simplified acquisition threshold may be 
made for--
* * * * *
    14. Section 213.507 is amended by revising the heading; and by 
revising paragraph (a)(i) to read as follows:


213.507  Provisions and clauses.

    (a) * * *
    (i) Unilateral purchase orders--
    (A) FAR 52.252-2, Clauses Incorporated by Reference (required only 
if other clauses are incorporated by reference);
    (B) FAR 52.203-3, Gratuities;
    (C) FAR 52.211-16, Variation in Quantity;
    (D) FAR 52.222-3, Convict Labor (unless the order will be subject 
to the Walsh-Healey Public Contracts Act (see FAR subpart 22.6));
    (E) FAR 52.222-26, Equal Opportunity (unless exempt under FAR 
22.807);
    (F) FAR 52.225-3, Buy American Act-Supplies;
    (G) FAR 52.232,-1, Payments;
    (H) FAR 52.232-25, Prompt Payment;
    (I) FAR 52.232-28, Electronic Funds Transfer Payment Methods;
    (J) FAR 52.233-1, Disputes;
    (K) FAR 52.246-1, Contractor Inspection Requirements (except when 
an alternate level of quality assurance is necessary (see FAR 46.203 
and 46.204)); and
    (L) FAR 52.246-16, Responsibility for Supplies.
* * * * *

PART 215--CONTRACTING BY NEGOTIATION

    15. Section 215.810 is revised to read as follows:


215.810  Should-cost review.

    16. Section 215.810-2 is added to read as follows:


215.810-2  Program should-cost review.

    (b) DoD contracting activities should consider performing a program 
should-cost review before award of a definitive major systems contract 
exceeding $100 million.
    17. Section 215.810-3 is added to read as follows:
    
[[Page 7743]]



215.810-3  Overhead should-cost review.

    (a) Contact the DCMC/DLA Overhead Center, Fort Belvoir, VA 22060-
6221, at (703) 767-3387, for questions on overhead should-cost 
analysis.
    (b)(i) The Defense Contract Management Command/Defense Logistics 
Agency (DCMC/DLA), or the military department responsible for 
performing contract administration functions (e.g., Navy SUPSHIP), 
should consider, based on risk assessment, performing an overhead 
should-cost review of a contractor business unit (as defined in FAR 
31.001) when all of the following conditions exist:
    (A) Projected annual sales to DoD exceed $1 billion.
    (B) Projected DoD versus total business exceeds 30 percent;
    (C) Level of sole-source DoD contracts is high;
    (D) Significant volume of proposal activity is anticipated;
    (E) Production or development of a major weapon system or program 
is anticipated; and
    (F) Contractor cost control/reduction initiatives appear 
inadequate.
    (ii) The head of the contracting activity may request an overhead 
should-cost review for a business unit which does not meet the criteria 
in paragraph (b)(i) of this subsection.
    (iii) Overhead should-cost reviews are labor intensive. These 
reviews generally involve participation by the contracting, contract 
administration, and contract audit elements. The extent of availability 
of military department, contract administration, and contract audit 
resources to support DCMC/DLA-led teams should be considered when 
determining whether a review will be conducted. Overhead should-cost 
reviews generally shall not be conducted at a contractor business 
segment more frequently than every three years.

PART 216--TYPES OF CONTRACTS

    18. Section 216.306 is added to read as follows:


216.306  Cost-plus-fixed-fee contracts.

    (c) Limitations.
    (i) Annual military construction appropriations acts restrict the 
use of cost-plus-fixed-fee contracts that--
    (A) Are funded by a military construction appropriations act:
    (B) Are estimated to exceed $25,000; and
    (C) Will be performed within the United States, except Alaska.
    (ii) The Secretaries of the military departments are authorized to 
approve contracts described in paragraph (c)(i) of this section that 
are for environmental work only, provided the environmental work is not 
classified as construction, as defined by 10 U.S.C 2801.
    (iii) The Secretary of Defense or designee must specifically 
approve contracts described in paragraph (c)(i) of this section that 
are not environmental work only.
    19. Section 216.603-4 is revised to read as follows:


216.603-4  Contract clauses.

    (b)(2) See 217.7406(a) for additional guidance regarding use of the 
clause at FAR 52.216-24, Limitation of Government Liability.
    (3) Use the clause at 252.217-7027, Contract Definitization, in 
accordance with its prescription at 217.7406(b), instead of the clause 
at FAR 52.216-25, Contract Definitization.
    20. Section 216.703 is amended by revising paragraph (c) to read as 
follows:


216.703  Basic ordering agreements

    (c) Limitations. The period during which orders may be placed 
against a basis ordering agreement may not exceed three years. The 
contracting officer, with the approval of the chief of the contracting 
office, may grant extensions for up to two years. No single extension 
shall exceed one year. See subpart 217.74 for additional limitations on 
the use of undefinitized orders under basic ordering agreements.
* * * * *

PART 217--SPECIAL CONTRACTING METHODS

    21. Section 217.202 is amended by adding paragraph (3) to read as 
follows:


217.202  Use of options.

* * * * *
    (3) See subpart 217.74 for limitations on the use of undefinitized 
options.
    22. Section 217.7402 is amended by revising in the introductory 
text the term ``UCA's'' to read ``UCAs'' and by revising paragraph (b) 
to read as follows:


217.7402  Exceptions.

* * * * *
    (a) * * *
    (b) Purchases at or below the simplified acquisition threshold;
* * * * *


217.7404-3  [Amended]

    23. Section 217.7404-3 is amended by revising in the introductory 
text of paragraph (a) the word ``earliest'' to read ``earlier.''
    24. Section 217.7406 is revised to read as follows:


217.7406  Contract clauses.

    (a) Use the clause at FAR 52.216-24, Limitation of Government 
Liability, in all UCAs, solicitations associated with UCAs, basic 
ordering agreements, indefinite delivery contracts, and any other type 
of contract providing for the use of UCAs.
    (b) Use the clause at 252.217-7027, Contract Definitization, in all 
UCAs, solicitations associated with UCAs, basic ordering agreements, 
indefinite delivery contracts, and any other type of contract providing 
for the use of UCAs. Insert the applicable information in paragraphs 
(a), (b), and (d) of the clause. If, at the time of entering into the 
UCA, the contracting officer knows that the definitive contract action 
will meet the criteria of FAR 15.804-1 for not requiring submission of 
cost or pricing data, the words ``and cost or pricing data'' may be 
deleted from paragraph (a) of the clause.

PART 223--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-
FREE WORKPLACE

    25. A new Subpart 223.72 is added to read as follows:
Subpart 223.72--Safeguarding Sensitive Conventional Arms, Ammunition, 
and Explosives
Sec.
223.7200  Definition.
223.7201  Policy.
223.7202  Preaward responsibilities.
223.7203  Contract clause.

Subpart 223.72--Safeguarding Sensitive Conventional Arms, 
Ammunition, and Explosives


223.7200  Definition.

    ``Arms, ammunition, and explosives (AA&E),'' as used in this 
subpart, means those items within the scope (chapter 1, paragraph B) of 
DoD 5100.76-M, Physical Security of Sensitive Conventional Arms, 
Ammunition, and Explosives.


223.7201  Policy.

    (a) The requirements of DoD 5100.76-M, Physical Security of 
Sensitive Conventional Arms, Ammunition, and Explosives, shall be 
applied to contracts when--
    (1) AA&E will be provided to the contractor or subcontractor as 
Government-furnished property; or
    (2) The principal development, production, manufacture, or purchase 
of AA&E is for DoD use.
    (b) The requirements of DoD 5100.76-M need not be applied to 
contracts when-- 

[[Page 7744]]

    (1) The AA&E to be acquired under the contract is a commercial item 
within the meaning of FAR 2.101; or
    (2) The contract will be performed in a Government-owned 
contractor-operated ammunition production facility. However, if 
subcontracts issued under such a contract will meet the criteria of 
paragraph (a) of this section, the requirements of DoD 5100.76-M shall 
apply.


223.7202  Preaward responsibilities.

    When an acquisition involves AA&E, technical or requirements 
personnel shall specify in the purchase request--
    (a) That AA&E is involved; and
    (b) Which physical security requirements of DoD 5100.76-M apply.


223.7203  Contract clause.

    Under the clause at 252.223-7007, Safeguarding Sensitive 
Conventional Arms, Ammunition, and Explosives, in all solicitations and 
contracts to which DoD 5100.76-M applies, in accordance with the policy 
at 223.7201. Complete paragraph (b) of the clause based on information 
provided by cognizant technical or requirements personnel.

PART 225--FOREIGN ACQUISITION

    26. Section 225.402 is amended by revising paragraph (a) to read as 
follows:


225.402  Policy.

    (a) To estimate the value of the acquisition, use the total 
estimated value of end products subject to trade agreement acts (see 
225.403-70).
    (1) See 225.105 for evaluation of eligible products and U.S. made 
end products.
* * * * *
    27. Section 225.7102 is amended by revising the introductory text 
to read as follows:


225.7102  Policy.

    DoD requirements for the following, including acquisitions for 
items containing the following, shall be acquired from domestic sources 
(as described in the clause at 252.225-7025) to the maximum extent 
practicable--
* * * * *
    28. Section 225.7103 is amended by revising paragraph (e)(1); 
redesignating paragraph (e)(2) as (e)(3); and adding paragraph (e)(2) 
to read as follows:


225.7103  Exceptions.

* * * * *
    (e) * * *
    (1) Used for commercial vehicles or noncombat support military 
vehicles;
    (2) Purchased as tank and automotive spare parts (except when it is 
known that the spare parts are for use in tanks only); or
* * * * *
    29. Section 225.7303-2 is amended by revising paragraph (a)(3) to 
read as follows:


225.7303-2  Cost of doing business with a foreign government or an 
international organization.

    (a) * * *
    (3) Offset implementation costs.
    (i) A U.S. defense contractor may recover costs incurred to 
implement its offset agreement with a foreign government or 
international organization if the foreign military sale Letter of Offer 
and Acceptance is financed wholly with customer cash or repayable 
foreign military finance credits.
    (ii) The U.S. Government assumes no obligation to satisfy or 
administer the offset requirement or to bear any of the associated 
costs.
* * * * *

PART 228--BONDS AND INSURANCE


228.106-4, 228.106-4-70, and 228.106-6  [Removed]

    30. Sections 228.106-4, 228.106-4-70, and 228.106-6 are removed.

PART 232--CONTRACT FINANCING

    31. Section 232.703-70 is added to read as follows:


232.703-70  Military construction appropriations act restriction.

    Annual military construction appropriations acts restrict the use 
of funds appropriated by the acts for payments under cost-plus-fixed-
fee contracts (see 216.306(c)).

PART 235--RESEARCH AND DEVELOPMENT CONTRACTING

    32. Section 235.7003 is amended by adding a new paragraph (c)(6) to 
read as follows:


235.7003  Reporting requirements.

* * * * *
    (c) * * *
    (6) Number of actions removed from the test due to inability to 
comply with RDSS/C procedures, with a brief description of the 
reasons(s) for the inability to comply.
* * * * *
    33. Section 235.7004-3(d) is amended by revising ``Alternate III'' 
to read ``Alternate II.''
    34. Section 235.7006, Exhibit--Research and Development Streamlined 
Contracting Format, Part I--The Schedule, Section H, Special Contract 
Requirements, is amended by revising the designation ``(H.4)*'' to read 
``(H.4)'' and by revising the address in (H.4) and by adding (H.6)* to 
read as follows:


235.7006--  The research and development streamlined contracting 
format.

Exhibit--Research and Development Streamlined Contracting format

Part I--The Schedule

    Section H * * *
    (H.4) * * * Defense Technical Information Center, Attn: 
Registration Section (DTIC-BCS), 8725 John J. Kingman Road, Suite 
0944, Fort Belvoir, VA 22060-6218,(703) 767-8273, or 1-800-CAL-DITC 
(225-3842), menu selection 2.
* * * * *
    *(H.6) (Insert nonstandard clause approved in accordance with 
235.7006(c), if applicable.)
* * * * *
    35. Section 235.7006, Exhibit--Research and Development Streamlined 
Contracting Format, Part II--Contract Clauses, and Part IV, 
Representations and Instructions, are revised to read as follows:


                                            Part II--Contract Clauses                                           
                                                                                                                
                                           Section I, Contract Clauses                                          
                                                                                                                
(I.1)............................  52.252-2...................................  Clauses Incorporated by         
                                                                                 Reference.                     
(I.2)............................  52.202-1...................................  Definitions.                    
(I.3)............................  Reserved...................................                                  
(I.4)............................  52.203-3...................................  Gratuities.                     
(I.5)............................  52.203-5...................................  Covenant Against Contingent     
                                                                                 Fees.                          
(I.6)............................  52.203-7...................................  Anti-Kickback Procedures.       
(I.7)............................  52.203-10..................................  Price or Fee Adjustment for     
                                                                                 Illegal or Improper Activity.  
                                                                                 (Except educational            
                                                                                 institutions.)                 
(I.8)............................  52.209-6...................................  Protecting the Government's     
                                                                                 Interest When Subcontracting   
                                                                                 with Contractors Debarred,     
                                                                                 Suspended, or Proposed for     
                                                                                 Debarment.                     
(I.9)............................  Reserved...................................                                  
(I.10)...........................  Reserved...................................                                  

[[Page 7745]]
                                                                                                                
(I.11)...........................  Reserved...................................                                  
(I.12)...........................  52.215-26..................................  Integrity of Unit Prices.       
(I.13)...........................  52.215-33..................................  Order of Precedence.            
(I.14)...........................  52.216-7...................................  Allowable Cost and Payment.     
                                                                                 (Modified in accordance with   
                                                                                 16.307 as applicable.)         
(I.15)...........................  Reserved...................................                                  
(I.16)...........................  Reserved...................................                                  
(I.17)...........................  Reserved...................................                                  
(I.18)...........................  Reserved...................................                                  
(I.19)...........................  52.222-3...................................  Convict Labor.                  
(I.20)...........................  52.222-26..................................  Equal Opportunity.              
(I.21)...........................  52.222-35..................................  Affirmative Action for Special  
                                                                                 Disabled and Vietnam Era       
                                                                                 Veterans.                      
(I.22)...........................  52.222-36..................................  Affirmative Action for          
                                                                                 Handicapped Workers.           
(I.23)...........................  52.222-37..................................  Employment Reports on Special   
                                                                                 Disabled Veterans and Veterans 
                                                                                 of the Vietnam Era.            
(I.24)...........................  52.223-6...................................  Drug-Free Workplace.            
(I.25)...........................  52.225-11..................................  Restrictions on Certain Foreign 
                                                                                 Purchases.                     
(I.26)...........................  52.227-1...................................  Authorization and Consent--     
                                                                                 Alternate I.                   
(I.27)...........................  52.227-2...................................  Notice and Assistance Regarding 
                                                                                 Patent and Copyright           
                                                                                 Infringement.                  
(I.28)...........................  52.228-7...................................  Insurance--Liability to Third   
                                                                                 Persons.                       
(I.29)...........................  52.232-9...................................  Limitation on Withholding of    
                                                                                 Payments.                      
(I.30)...........................  52.232-23..................................  Assignment of Claims.           
(I.31)...........................  52.232-25..................................  Prompt Payment.                 
(I.32)...........................  52.232-28..................................  Electronic Funds Transfer       
                                                                                 Payment Methods.               
(I.33)...........................  52.233-1...................................  Disputes.                       
(I.34)...........................  52.233-3...................................  Protest After Award--Alternate  
                                                                                 I.                             
(I.35)...........................  52.242-1...................................  Notice of Intent to Disallow    
                                                                                 Costs.                         
(I.36)...........................  52.242-13..................................  Bankruptcy.                     
(I.37)...........................  52.244-2...................................  Subcontracts (Cost-Reimbursement
                                                                                 and Letter Contracts) Alternate
                                                                                 I.                             
(I.38)...........................  52.244-5...................................  Competition in Subcontracting.  
(I.39)...........................  52.247-1...................................  Commercial Bill of Lading       
                                                                                 Notations.                     
(I.40)...........................  52.249-14..................................  Excusable Delays.               
(I.41)...........................  52.253-1...................................  Computer-Generated Forms.       
*(I.42)..........................  52.203-9...................................  Requirement for Certificate of  
                                                                                 Procurement Integrity-         
                                                                                 Modification.                  
*(I.43)..........................  52.203-12..................................  Limitation on Payments to       
                                                                                 Influence Certain Federal      
                                                                                 Transactions.                  
*(I.44)..........................  52.204-2...................................  Security Requirements.          
*(I.45)..........................  52.204-2...................................  Security Requirements-Alternate 
                                                                                 I. (For educational            
                                                                                 institutions.)                 
*(I.46)..........................  52.215-22..................................  Price Reduction for Defective   
                                                                                 Cost or Pricing Data.          
*(I.47)..........................  52.215-23..................................  Price Reduction for Defective   
                                                                                 Cost or Pricing Data           
                                                                                 Modications.                   
*(I.48)..........................  52.215-24..................................  Subcontractor Cost or Pricing   
                                                                                 Data.                          
*(I.49)..........................  52.215-25..................................  Subcontractor Cost or Pricing   
                                                                                 Data-Modifications.            
*(I.50)..........................  52.215-27..................................  Termination of Defined Benefit  
                                                                                 Pension Plans. (Except         
                                                                                 educational institutions.)     
*(I.51)..........................  52.215-31..................................  Waiver of Facilities Capital    
                                                                                 Cost of Money. (Except         
                                                                                 educational institutions.)     
*(I.52)..........................  52.215-39..................................  Reversion or Adjustment of Plans
                                                                                 for Postretirement Benefits    
                                                                                 Other than Pension (PRB).      
*(I.53)..........................  52.216-8...................................  Fixed Fee.                      
*(I.54)..........................  52.216-10..................................  Incentive Fee.                  
*(I.55)..........................  52.216-11..................................  Cost Contract--No Fee.          
*(I.56)..........................  52.216-11..................................  Cost Contract--No Fee-Alternate 
                                                                                 I.                             
*(I.57)..........................  52.216-12..................................  Cost-Sharing Contract--No Fee.  
*(I.58)..........................  52.216-12..................................  Cost-Sharing Contract--No Fee-  
                                                                                 Alternate I.                   
*(I.59)..........................  52.216-15..................................  Predetermined Indirect Cost     
                                                                                 Rates.                         
*(I.59A).........................  252.216-7002...............................  Alternate. (For educational     
                                                                                 institutions only.)            
*(I.60)..........................  52.219-6...................................  Notice of Total Small Business  
                                                                                 Set-Aside.                     
*(I.61)..........................  52.219-6...................................  Notice of Total Small Business  
                                                                                 Set-Aside--Alternate I.        
(I.63)...........................  Reserved...................................                                  
*(I.64)..........................  52.219-14..................................  Limitations on Subcontracting.  
*(I.65)..........................  52.219-16..................................  Liquidated Damages--Small       
                                                                                 Business Subcontracting Plan.  
(I.66)...........................  Reserved...................................                                  
*(I.67)..........................  52.222-1...................................  Notice to the Government of     
                                                                                 Labor Disputes.                
*(I.68)..........................  52.222-2...................................  Payment for Overtime Premiums.  
*(I.69)..........................  52.222-28..................................  Equal Opportunity Preaward      
                                                                                 Clearance of Subcontracts.     
*(I.70)..........................  52.223-2...................................  Clean Air and Water.            
*(I.71)..........................  52.223-3...................................  Hazardous Material              
                                                                                 Identification and Material    
                                                                                 Safety Data.                   
*(I.72)..........................  52.223-7...................................  Notice of Radioactive Materials 
                                                                                 (21 Days).                     
*(I.73)..........................  52.226-1...................................  Utilization of Indian           
                                                                                 Organizations and Indiane-Owned
                                                                                 Economic Enterprises.          
*(I.74)..........................  52.227-10..................................  Filing of Patent Applications-- 
                                                                                 Classified Subject Matter.     
*(I.75)..........................  52.227-11..................................  Patent Rights--Retention by the 
                                                                                 Contractor (Short Form).       
*(I.76)..........................  52.227-12..................................  Patent Rights--Retention by the 
                                                                                 Contractor (Long Form).        
*(I.77)..........................  52.227-13..................................  Patent Rights--Acquisition by   
                                                                                 the Government.                
*(I.78)..........................  52.228-7...................................  Insurance--Liability to Third   
                                                                                 Persons--Alternate I.          
*(I.79)..........................  52.228-7...................................  Insurance--Liability to Third   
                                                                                 Persons--Alternate II.         
*(I.80)..........................  52.229-8...................................  Taxes--Foreign Cost-            
                                                                                 Reimbursement Contracts.       
*(I.81)..........................  52.229-10..................................  State of New Mexico Gross       
                                                                                 Receipts and Compensating Tax. 
*(I.82)..........................  52.230-2...................................  Cost Accounting Standards.      
                                                                                 (Except if exempted.)          
*(I.83)..........................  52.230-3...................................  Disclosure and Consistency of   
                                                                                 Cost Accounting Practices.     
                                                                                 (Except if exempted.)          
*(I.84)..........................  52.230-5...................................  Administration of Cost          
                                                                                 Accounting Standards. (Except  
                                                                                 educational institutions.)     
*(I.85)..........................  52.232-17..................................  Interest.                       
*(I.86)..........................  52.232-20..................................  Limitation of Cost.             

[[Page 7746]]
                                                                                                                
*(I.87)..........................  52.232-22..................................  Limitation of Funds.            
*(I.88)..........................  52.232-23..................................  Assignment of Claims--Alternate 
                                                                                 I.                             
*(I.89)..........................  52.233-1...................................  Disputes--Alternate I.          
*(I.90)..........................  52.237-2...................................  Protection of Government        
                                                                                 Buildings, Equipment and       
                                                                                 Vegetation.                    
*(I.91)..........................  52.242-10..................................  F.O.B. Origin-Government Bills  
                                                                                 of Lading or Prepaid Postage.  
*(I.92)..........................  52.242-11..................................  F.O.B. Origin-Government Bills  
                                                                                 of Lading or Indicia Mail.     
*(I.93)..........................  52.242-12..................................  Report of Shipment (REPSHIP).   
*(I.94)..........................  52.243-2...................................  Changes--Cost-Reimbursement-    
                                                                                 Alternate V.                   
*(I.95)..........................  52.243-6...................................  Change Order Accounting.        
*(I.96)..........................  52.243-7...................................  Notification of Changes (30     
                                                                                 Calendar Days).                
*(I.97)..........................  52.245-5...................................  Government Property (Cost-      
                                                                                 Reimbursement, Time-and-       
                                                                                 Material, or Labor-Hour        
                                                                                 Contracts).                    
*(I.98)..........................  52.245-5...................................  Government Property (Cost-      
                                                                                 Reimbursement, Time-and-       
                                                                                 Material, or Labor-Hour        
                                                                                 Contracts-Alternate I. (For    
                                                                                 educational institutions and   
                                                                                 nonprofit organizations.)      
*(I.99)..........................  52.245-19..................................  Government Property Furnished   
                                                                                 ``As Is''.                     
*(I.100).........................  52.246-23..................................  Limitation of Liability.        
*(I.101).........................  52.246-24..................................  Limitation of Liability-High    
                                                                                 Value Items.                   
*(I.102).........................  52.246-24..................................  Limitation of Liability-High    
                                                                                 Value Items-Alternate I.       
*(I.103).........................  52.246-25..................................  Limitation of Liability-        
                                                                                 Services.                      
*(I.104).........................  52.247-63..................................  Preference for U.S.-Flag Air    
                                                                                 Carriers.                      
*(I.105).........................  52.247-66..................................  Returnable Cylinder.            
*(I.106).........................  52.249-5...................................  Termination for Convenience of  
                                                                                 the Government (Educational and
                                                                                 Other Nonprofit Institutions). 
*(I.107).........................  52.249-6...................................  Termination (Cost-              
                                                                                 Reimbursement).                
*(I.108).........................  52.251-1...................................  Government Supply Sources.      
*(I.109).........................  252.201-7000...............................  Contracting Officer's           
                                                                                 Representative.                
*(I.110).........................  252.203-7001...............................  Special Prohibition on          
                                                                                 Employment.                    
*(I.111).........................  Reserved...................................                                  
*(I.112).........................  Reserved...................................                                  
*(I.113).........................  52.204-7003................................  Control of Government Personnel 
                                                                                 Work Product.                  
*(I.114).........................  252.209-7000...............................  Acquisition from Subcontractors 
                                                                                 Subject to On-Site Inspection  
                                                                                 under the Intermediate-Range   
                                                                                 Nuclear Forces (INF) Treaty.   
*(I.115).........................  252.225-7012...............................  Preference for Certain Domestic 
                                                                                 Commodities.                   
*(I.116).........................  252.225-7031...............................  Secondary Arab Boycott of       
                                                                                 Israel.                        
*(I.117).........................  Reserved...................................                                  
*(I.118).........................  Reserved...................................                                  
*(I.119).........................  Reserved...................................                                  
*(I.120).........................  252.227-7030...............................  Technical Data-Withholding of   
                                                                                 Payment.                       
*(I.121).........................  252.227-7037...............................  Validation of Restrictive       
                                                                                 Markings on Technical Data.    
*(I.122).........................  252.231-7000...............................  Supplemental Cost Principles.   
*(I.123).........................  252.232-7006...............................  Reduction or Suspension of      
                                                                                 Contract Payments Upon Finding 
                                                                                 of Fraud.                      
*(I.124).........................  252.242-7000...............................  Postaward Conference.           
*(I.125).........................  Reserved...................................                                  
*(I.126).........................  252.247-7023...............................  Transportation of Supplies by   
                                                                                 Sea.                           
*(I.127).........................  252.203-7000...............................  Statutory Prohibition on        
                                                                                 Compensation to Former         
                                                                                 Department of Defense          
                                                                                 Employees.                     
*(I.128).........................  252.203-7002...............................  Display of DoD Hotline Poster.  
*(I.129).........................  252.204-7000...............................  Disclosure of Information.      
*(I.130).........................  252.204-7002...............................  Payment for Subline Items Not   
                                                                                 Separately Priced.             
*(I.131).........................  252.205-7000...............................  Provision of Information to     
                                                                                 Cooperative Agreement Holders. 
*(I.132).........................  252.215-7000...............................  Pricing Adjustments.            
*(I.133).........................  252.215-7002...............................  Cost Estimating System          
                                                                                 Requirements.                  
*(I.134).........................  252.219-7001...............................  Notice of Partial Small Business
                                                                                 Set-Aside with Preferential    
                                                                                 Consideration for Small        
                                                                                 Disadvantaged Business         
                                                                                 Concerns.                      
*(I.135).........................  252.219-7002...............................  Notice of Small Disadvantaged   
                                                                                 Business Set-Aside.            
*(I.136).........................  252.219-7003...............................  Small Business and Small        
                                                                                 Disadvantaged Business         
                                                                                 Subcontracting Plan (DoD       
                                                                                 Contracts).                    
*(I.137).........................  252.219-7004...............................  Small Business and Small        
                                                                                 Disadvantaged Business         
                                                                                 Subcontracting Plan (Test      
                                                                                 Program).                      
*(I.138).........................  252.219-7005...............................  Incentive for Subcontracting    
                                                                                 with Small Businesses, Small   
                                                                                 Disadvantaged Businesses,      
                                                                                 Historically Black Colleges and
                                                                                 Universities and Minority      
                                                                                 Institutions. (. . . To be     
                                                                                 negotiated ________ %.)        
*(I.139).........................  252.219-7005...............................  Incentive for Subcontracting    
                                                                                 with Small Businesses, Small   
                                                                                 Disadvantaged Businesses,      
                                                                                 Historically Black Colleges and
                                                                                 Universities and Minority      
                                                                                 Institutions-Alternate I. (. . 
                                                                                 . To be negotiated ________ %.)
*(I.140).........................  252.219-7006...............................  Notice of Evaluation Preference 
                                                                                 for Small Disadvantaged        
                                                                                 Business Concerns.             
*(I.141).........................  252.223-7001...............................  Hazard Warning Labels.          
*(I.142).........................  252.223-7002...............................  Safety Precautions for          
                                                                                 Ammunitions and Explosives.    
*(I.143).........................  252.223-7003...............................  Change in Place of Performance- 
                                                                                 Ammunition and Explosives.     
*(I.144).........................  252.223-7004...............................  Drug-Free Work Force.           
*(I.145).........................  252.225-7014...............................  Preference for Domestic         
                                                                                 Specialty Metals.              
*(I.146).........................  252.225-7016...............................  Restriction on Acquisition of   
                                                                                 Antifriction Bearings.         
*(I.147).........................  252.225-7025...............................  Foregin Source Restrictions.    
*(I.148).........................  252.225-7026...............................  Reporting of Contract Outside   
                                                                                 the United States.             
*(I.149).........................  252.225-7032...............................  Waiver of United Kingdom Levies.
*(I.150).........................  252.226-7000...............................  Notice of Historically Black    
                                                                                 College or University and      
                                                                                 Minority Institution Set-Aside.
*(I.151).........................  252.227-7026...............................  Deferred Delivery of Technical  
                                                                                 Data or Computer Software.     
*(I.152).........................  252.227-7027...............................  Deferred Ordering of Technical  
                                                                                 Data or Computer Software.     
(I.153)..........................  Reserved...................................                                  
*(I.154).........................  252.227-7034...............................  Patent--Subcontracts.           

[[Page 7747]]
                                                                                                                
*(I.155).........................  252.227-7036...............................  Certification of Technical Data 
                                                                                 Conformity.                    
*(I.156).........................  252.227-7039...............................  Patents--Reporting of Subject   
                                                                                 Inventions.                    
(I.157)..........................  Reserved...................................                                  
*(I.158).........................  252.232-7000...............................  Advance Payment Pool. (For      
                                                                                 educational institutions and   
                                                                                 nonprofit organizations.)      
*(I.159).........................  252.233-7000...............................  Certification of Claims and     
                                                                                 Requests for Adjustment or     
                                                                                 Relief.                        
*(I.160).........................  252.235-7002...............................  Animal Welfare.                 
*(I.161).........................  252.242-7002...............................  Submission of Commercial Freight
                                                                                 Bills for Audit.               
*(I.162).........................  252.242-7003...............................  Application for U.S. Government 
                                                                                 Shipping Documentation/        
                                                                                 Instructions.                  
*(I.163).........................  252.242-7004...............................  Material Management and         
                                                                                 Accounting System.             
*(I.164).........................  252.245-7001...............................  Reports of Government Property. 
*(I.165).........................  252.247-7024...............................  Notification of Transportation  
                                                                                 of Supplies by Sea.            
*(I.166).........................  252.249-7001...............................  Notification of Substantial     
                                                                                 Impact on Employment.          
*(I.167).........................  252.251-7000...............................  Ordering From Government Supply 
                                                                                 Sources.                       
*(I.168).........................  252.223-7006...............................  Prohibition on Disposal of Toxic
                                                                                 and Hazardous Materials.       
*(I.169).........................  252.249-7002...............................  Notification of Program         
                                                                                 Termination or Reduction.      
(I.170)..........................  52.204-4...................................  Printing/Copying Double-Sided on
                                                                                 Recycled Paper.                
*(I.171).........................  52.208-8...................................  Helium Requirement Forecast and 
                                                                                 Required Sources for Helium.   
(I.172)..........................  52.215-2...................................  Audit and Records--Negotiation. 
*(I.173).........................  52.215-2...................................  Audit and Records--Negotiation, 
                                                                                 Alternate II.                  
(I.174)..........................  52.215-40..................................  Notification of Ownership       
                                                                                 Changes.                       
*(I.175).........................  52.215-42..................................  Requirements for Cost or Pricing
                                                                                 Data or Information Other Than 
                                                                                 Cost or Pricing Data--         
                                                                                 Modifications.                 
*(I.176).........................  52.215-42..................................  Requirements for Cost or Pricing
                                                                                 Data or Information Other Than 
                                                                                 Cost or Pricing Data--         
                                                                                 Modifications, Alternate II.   
*(I.177).........................  52.215-42..................................  Requirements for Cost or Pricing
                                                                                 Data or Information Other Than 
                                                                                 Cost or Pricing Data--         
                                                                                 Modifications, Alternate III.  
(I.178)..........................  52.219-8...................................  Utilization of Small, Small     
                                                                                 Disadvantaged and Women-Owned  
                                                                                 Small Business Concerns.       
*(I.179).........................  52.219-9...................................  Small, Small Disadvantaged and  
                                                                                 Women-Owned Small Business     
                                                                                 Subcontracting Plan.           
*(I.180).........................  52.242-3...................................  Penalties for Unallowable Costs.
(I.181)..........................  52.242-4...................................  Certification of Indirect Costs.
(I.182)..........................  52.244-6...................................  Subcontracts for Commercial     
                                                                                 Items and Commercial           
                                                                                 Components.                    
*(I.183).........................  52.247-67..................................  Submission of Commercial        
                                                                                 Transportation Bills to the    
                                                                                 General Services Administration
                                                                                 for Audit.                     
(I.184)..........................  52.223-14..................................  Toxic Chemical Release          
                                                                                 Reporting.                     
(I.185)..........................  252.235-7010...............................  Acknowledgement of Support and  
                                                                                 Disclaimer.                    
(I.186)..........................  252.235-7011...............................  Final Scientific or Technical   
                                                                                 Report.                        
*(I.187).........................  252.227-7013...............................  Rights in Technical Data--      
                                                                                 Noncommercial Items.           
*(I.188).........................  252.227-7013...............................  Rights in Technical Data--      
                                                                                 Noncommercial Items, Alternate 
                                                                                 I.                             
*(I.189).........................  252.227-7014...............................  Rights in Noncommercial Computer
                                                                                 Software and Noncommercial     
                                                                                 Computer Software              
                                                                                 Documentation.                 
*(I.190).........................  252.227-7014...............................  Rights in Nocommercial Computer 
                                                                                 Software and Noncommercial     
                                                                                 Computer Software              
                                                                                 Documentation, Alternate I.    
*(I.191).........................  252.227-7015...............................  Technical Data--Commercial      
                                                                                 Items.                         
*(I.192).........................  252.227-7016...............................  Rights in Bid or Proposal       
                                                                                 Information.                   
*(I.193).........................  252.227-7018...............................  Rights in Noncommercial         
                                                                                 Technical Data and Computer    
                                                                                 Software--Small Business       
                                                                                 Innovation Research Program.   
*(I.194).........................  252.227-7018...............................  Rights in Noncommercial         
                                                                                 Technical Data and Computer    
                                                                                 Software--Small Business       
                                                                                 Innovation Research Program,   
                                                                                 Alternate I.                   
*(I.195).........................  252.227-7019...............................  Validation of Asserted          
                                                                                 Restrictions--Computer         
                                                                                 Software.                      
*(I.196).........................  252.227-7025...............................  Limitations on the Use or       
                                                                                 Disclosure of Government-      
                                                                                 Furnished Information Marked   
                                                                                 with Restrictive Legends.      
*(I.197).........................  252.209-7005...............................  Military Recruiting on Campus   
                                                                                 (For educational institutions  
                                                                                 only.)                         
                                                                                                                
.                                                                                                               
                          *         *         *         *         *         *         *                         
                                    Part IV--Representations and Instructions                                   
                                                                                                                
             Section K. Representations, Certifications and Other Statements of Offerors or Quoters             
  The following solicitation provisions require representations, certifications or the submission of other      
information by offerors. They are mandatory, and are included by reference. Full text copies of these provisions
are available from the Contracting Officer and must be completed and certified before contract award.           
                                                                                                                
(K.1)............................  52.203-4...................................  Contingent Fee Representation   
                                                                                 and Agreement.                 
(K.2)............................  52.203-8...................................  Requirement for Certificate of  
                                                                                 Procurement Integrity-Alternate
                                                                                 I.                             
(K.3)............................  52.203-11..................................  Certification and Disclosure    
                                                                                 Regarding Payments to Influence
                                                                                 Certain Federal Transactions.  
(K.4)............................  52.204-3...................................  Taxpayer Identification.        
(K.5)............................  52.209-5...................................  Certification Regarding         
                                                                                 Debarment, Suspension, Proposed
                                                                                 Debarment, and Other           
                                                                                 Responsibility Matters.        
(K.6)............................  52.215-6...................................  Type of Business Organization.  
(K.7)............................  52.215-11..................................  Authorized Negotiators.         
(K.8)............................  52.215-20..................................  Place of Performance.           
(K.9)............................  52.215-30..................................  Facilities Capital Cost of Money
                                                                                 (Except educational            
                                                                                 institutions.)                 
(K.10)...........................  Reserved...................................                                  
(K.11)...........................  Reserved...................................                                  
(K.12)...........................  Reserved...................................                                  
(K.13)...........................  52.222-21..................................  Certification of Nonsegregated  
                                                                                 Facilities.                    
(K.14)...........................  52.222-22..................................  Previous Contracts and          
                                                                                 Compliance Reports.            
(K.15)...........................  52.222-25..................................  Affirmative Action Compliance.  

[[Page 7748]]
                                                                                                                
(K.16)...........................  52.223-1...................................  Clean Air and Water             
                                                                                 Certification.                 
(K.17)...........................  52.223-5...................................  Certification Regarding a Drug- 
                                                                                 Free Workplace.                
(K.18)...........................  52.227-6...................................  Royalty Information.            
(K.19)...........................  52.230-1...................................  Cost Accounting Standards       
                                                                                 Notices and Certification.     
(K.20)...........................  Reserved...................................                                  
(K.21)...........................  252.209-7002...............................  Disclosure of Ownership or      
                                                                                 Control by a Foreign           
                                                                                 Government.                    
(K.22)...........................  252.219-7000...............................  Small Disadvantaged Business    
                                                                                 Concern Representation (DOD    
                                                                                 Contracts).                    
(K.23)...........................  Reserved...................................                                  
(K.24)...........................  Reserved...................................                                  
(K.25)...........................  252.226-7001...............................  Hostirically Black College or   
                                                                                 University and Minority        
                                                                                 Institution Certification.     
(K.26)...........................  Reserved...................................                                  
(K.27)...........................  252.247-7022...............................  Representation of Extent of     
                                                                                 Transportation by Sea.         
(K.28)...........................  52.204-5...................................  Women-Owned Business.           
(K.29)...........................  252.209-7..................................  Organizational Conflicts of     
                                                                                 Interest Certificate--Marketing
                                                                                 Consultants.                   
(K.30)...........................  252.219-1..................................  Small Business Program          
                                                                                 Representation.                
(K.31)...........................  252.223-13.................................  Certification of Toxic Chemical 
                                                                                 Release Reporting.             
(K.32)...........................  252.209-7001...............................  Disclosure of Ownership or      
                                                                                 Control by the Government of a 
                                                                                 Terrorist Country.             
(K.33)...........................  252.209-7003...............................  Disclosure of Commercial        
                                                                                 Transactions with the          
                                                                                 Government of a Terrorist      
                                                                                 Country.                       
(K.34)...........................  252.209-7004...............................  Reporting of Commercial         
                                                                                 Transactions with the          
                                                                                 Government of a Terrorist      
                                                                                 Country.                       
(K.35)...........................  252.227-7017...............................  Identification and Assertion of 
                                                                                 Use, Release, or Disclosure    
                                                                                 Restrictions.                  
(K.36)...........................  252.227-7028...............................  Technical Data or Computer      
                                                                                 Software Previously Delivered  
                                                                                 to the Government.             
                                                                                                                
                     Section L. Instructions, Conditions, and Notices to Offerors or Quoters                    
                                                                                                                
(L.1)............................  52.252-1...................................  Solicitation Provisions         
                                                                                 Incorporated by Reference.     
(L.2)............................  Reserved...................................                                  
(L.3)............................  52.210-2...................................  Availability of Specifications  
                                                                                 and Standards Listed in the DoD
                                                                                 Index of Specifications and    
                                                                                 Standards (DODISS) and         
                                                                                 Descriptions Listed in DoD     
                                                                                 5010.12-L (Deviation).         
(L.4)............................  52.215-5...................................  Solicitation Definitions.       
(L.5)............................  52.215-7...................................  Unnecessarily Elaborate         
                                                                                 Proposals or Quotations.       
(L.6)............................  52.215-8...................................  Amendments to Solicitations.    
(L.7)............................  52.215-9...................................  Submission of Offers.           
(L.8)............................  52.215-10..................................  Late Submissions, Modifications,
                                                                                 and Withdrawals of Proposals.  
(L.9)............................  52.215-12..................................  Restriction on Disclosure and   
                                                                                 Use of Data.                   
(L.10)...........................  52.215-13..................................  Preparation of Offers.          
(L.11)...........................  52.215-14..................................  Explanation to Prospective      
                                                                                 Offerors.                      
(L.12)...........................  52.215-15..................................  Failure to Submit Offer.        
(L.13)...........................  52.215-16..................................  Contract Award.                 
(L.14)...........................  Reserved...................................                                  
(L.15)...........................  52.216-1...................................  Type of Contract (See           
                                                                                 235.7006(d)(B.1)).             
(L.16)...........................  52.222-24..................................  Preaward On-Site Equal          
                                                                                 Opportunity Compliance Review. 
(L.17)...........................  52.228-6...................................  Insurance-Immunity from Tort    
                                                                                 Liability.                     
(L.18)...........................  52.233-2...................................  Service of Protest (See         
                                                                                 235.7006(d)(A.1)(xvii)).       
(L.19)...........................  52.237-1...................................  Site Visit.                     
(L.20)...........................  52.252-5...................................  Authorized Deviations in        
                                                                                 Provisions.                    
(L.21)...........................  252.204-7001...............................  Commercial and Government Entity
                                                                                 (CAGE) Code Reporting.         
(L.22)...........................  Reserved...................................                                  
(L.23)...........................  52.215-16..................................  Contract Award--Alternate II.   
*(L.24)..........................  52.215-41..................................  Requirements for Cost or Pricing
                                                                                 Data or Information Other than 
                                                                                 Cost or Pricing Data.          
*(L.25)..........................  52.215-41..................................  Requirements for Cost or Pricing
                                                                                 Data or Information Other than 
                                                                                 Cost or Pricing Data, Alternate
                                                                                 I.                             
*(L.26)..........................  52.215-41..................................  Requirements for Cost or Pricing
                                                                                 Data or Information Other than 
                                                                                 Cost or Pricing Data, Alternate
                                                                                 II.                            
*(L.27)..........................  52.215-41..................................  Requirements for Cost or Pricing
                                                                                 Data or Information Other than 
                                                                                 Cost or Pricing Data, Alternate
                                                                                 III.                           
*(L.28)..........................  52.215-41..................................  Requirements for Cost or Pricing
                                                                                 Data or Information Other than 
                                                                                 Cost or Pricing Data, Alternate
                                                                                 IV.                            
(L.29 through L.100)  Reserved..................................................................................
(L.101) Government-Furnished Property.                                                                          
                                                                                                                
  No material, labor, or facilities will be furnished by the Government unless provided for in the solicitation.
                                                                                                                
(L.102) Proposal Preparation and Submission Instructions........................................................
                                                                                                                



[[Page 7749]]

    (i) Page limitation, format.
    (A) A proposal shall be prepared in separate volumes with the 
page limit and number of copies specified below. The table of 
contents and tabs are exempt from the page limits. No cross-
referencing between volumes for essential information is permitted 
except where specifically set forth herein. The following volumes of 
material will be submitted:

------------------------------------------------------------------------
                                                                 Maximum
             Title                           Copies                page 
                                                                  limits
------------------------------------------------------------------------
Cost...........................  As specified in solicitation        *50
                                  summary.                              
Technical......................  As specified in solicitation        100
                                  summary.                              
------------------------------------------------------------------------
*The 50-page cost proposal is a goal not a limit. The Contractor may use
  additional pages if necessary to comply with public law.              

    (B) Any technical proposal pages submitted which exceed the page 
limitations set forth above will not be read or evaluated. Proposal 
pages failing to meet paragraph D format will not be read or 
evaluated.
    (C) No program cost data or cross-reference to the cost proposal 
will be included in any other volume.
    (D) Format of the above proposal volumes shall be as follows:
    (1) Proposals will be prepared on 8\1/2\ x 11 inch paper except 
for foldouts used for charts, tables, or diagrams, which may not 
exceed 11 x 17 inches. Foldouts will not be used for text. Pages 
will have a one inch margin.
    (2) A page is defined as one face of a sheet of paper containing 
information. Two pages may be printed on one sheet.
    (3) Type size will be no smaller than 10 point character height 
(vertical size) and no more than an average 12 characters per inch. 
Use of type-setting techniques to reduce type size below 10 points 
or to increase characters beyond 12 per inch is not permitted. Such 
techniques are construed as a deliberate attempt to circumvent the 
intent of page limitations set forth above.
    (4) Proposal must lie flat when open, elaborate binding is not 
desirable.
    (5) No models, mockups or video tapes will be accepted.
    (6) Technical proposals will be prepared in the same sequence as 
the statement of work.
    (ii) Content.
    All proposals must be complete and respond directly to the 
requirements of the solicitation. The factors and subfactors listed 
in Section M of the solicitation shall be addressed. Cost and 
supporting data shall be included only in the cost volume. All other 
information shall be included in the technical volume.
* * * * *

PART 236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

    36. Section 236.201 is amended by revising paragraph (a) to read 
as follows:


236.201  Evaluation of contractor performance.

    (a) Preparation of performance evaluation reports. Use DD Form 
2626, Performance Evaluation (Construction), instead of SF 1420.
* * * * *
    37. Section 236.204 is added to read as follows:


236.204  Disclosure of the magnitude of construction projects.

    Additional price ranges are--
    (i) Between $10,000,000 and $25,000,000;
    (ii) Between $25,000,000 and $100,000,000;
    (iii) Between $100,000,000 and $250,000,000;
    (iv) Between $250,000,000 and $500,000,000; and
    (v) Over $500,000,000.
    38. Section 236.271 is revised to read as follows:


236.271  Cost-plus-fixed-fee contracts.

    Annual military construction appropriations acts restrict the use 
of cost-plus-fixed-fee contracts (see 216.306(c)).
    39. Section 236.604 is amended by adding paragraph (a) introductory 
text to read as follows:


236.604  Performance evaluation.

    (a) Preparation of performance reports. Use DD Form 2631, 
Performance Evaluation (Architect-Engineer), instead of SF 1421.
    (2) * * *
* * * * *

PART 242--CONTRACT ADMINISTRATION

    40. Section 242.203 is amended by removing at the end of paragraph 
(a)(i)(P) the word ``and''; by removing at the end of paragraph 
(a)(i)(Q) the period and adding a semicolon and the word ``and''; by 
revising paragraph (a)(ii); by removing paragraph (a)(iii); and by 
redesignating paragraphs (a)(iv) and (a)(v) as (a)(iii) and (a)(iv) 
respectively. The revision reads as follows:


242.203  Retention of contract administration.

    (a)(i) * * *
    (ii) Contract administration functions for base, post, camp, and 
station contracts on a military installation are normally the 
responsibility of the installation or tenant commander. However, the 
Defense Contract Management Command (DCMC) shall, upon request of the 
military department, and subject to prior agreement, perform contract 
administration services on a military installation.
* * * * *

PART 246--QUALITY ASSURANCE

    41. Section 246.770-2 is amended by redesignating paragraphs (b) 
and (c) as paragraphs (c) and (d) respectively; by adding a new 
paragraph (b); and by revising the newly designated paragraph (c) to 
read as follows:


246.770-2  Policy.

    (a) * * *
    (b) Contracting officers and program managers shall consider the 
following when developing and negotiating weapon system warranty 
provisions:
    (1) Warranties may not be appropriate in all situations, and a 
waiver should be sought if a warranty would not be cost-effective or 
would otherwise be inconsistent with the national defense. In drafting 
warranty provisions, the drafters must ensure they understand the 
planned operational, maintenance, and supply concepts of the weapon 
system to be fielded, and must structure a warranty that matches those 
concepts. A warranty plan should be prepared in consonance with 
development of the warranty provision early in the weapon system's life 
cycle. The plan should contain program warranty strategy, terms of the 
warranty, administration and enforcement requirements, and should be 
coordinated with the user and support activities.
    (2) A cost/benefit analysis must be accomplished in support of each 
warranty (see 246.770-7). The cost/benefit analysis compares all costs 
associated with the warranty to the expected benefits. An estimate 
shall be made of the likelihood of defects and the estimated cost of 
correcting such defects. Also, if substantive changes are required to 
the planned operational, maintenance, or supply concepts, any increased 
costs should be weighed against the expected benefits in deciding 
whether a warranty is cost-effective.
    (3) The Warranty Guidebook prepared by the Defense Systems 
Management College, Fort Belvoir, VA 22060-5426, is a valuable 
reference that can assist in the development, negotiation, and 
administration of an effective weapon system warranty.
    (c) Contracting officers may require warranties that provide 
greater coverage and remedies than specified in paragraph (a) of this 
subsection.
* * * * *

[[Page 7750]]

    42. Section 246.770-8 is amended by revising the introductory text 
of paragraph (a); by removing paragraph (b)(2); by redesignating 
paragraph (b)(3) as paragraph (b)(2), and by revising the introductory 
text of paragraphs (c) and (c)(2). The revised text reads as follows:


246.770-8  Waiver and notification procedures.

    (a) The Secretary of Defense has delegated waiver authority within 
the limits specified in 10 U.S.C. 2403. The waiving authority for the 
defense agencies is the Under Secretary of Defense (Acquisition and 
Technology). Submit defense agency waiver requests to the Director, 
Defense Procurement, for processing. The waiving authority for the 
military departments is the Secretary of the department with authority 
to redelegate no lower than an Assistant Secretary. The waiving 
authority may waive one or more of the weapon system warranties 
required by 246.770-2 if--
* * * * *
    (c) Departments and agencies shall issue procedures for processing 
waivers and notifications to Congress.
    (1) * * *
    (2) Notifications shall include--
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    43. Section 252.209-7005 is amended by revising the clause date to 
read ``(FEB 1996)''; and by revising paragraph (b) to read as follows:


252.209-7005  Military recruiting on campus.

* * * * *
    (b) General. An institution of higher education that has been 
determined, using procedures established by the Secretary of Defense 
at 32 CFR part 216: (1) to have a policy of denying, or (2) to 
effectively prevent the Secretary of Defense from obtaining for 
military recruiting purposes, entry to such institution's campuses, 
access to students on those campuses, or access to directory 
information pertaining to its students, is ineligible for contract 
award and payments under existing contracts. In addition, the 
Government shall terminate this contract for the Contractor's 
material failure to comply with the terms and conditions of award.
* * * * *
    44. Section 252.217-7027 is revised to read as follows:


252.217-7027  Contract Definitization.

    As prescribed in 217.7406(b), use the following clause:

CONTRACT DEFINITIZATION (FEB 1996)

    (a) A ______(insert specific type of contract action) is 
contemplated. The Contractor agrees to begin promptly negotiating 
with the Contracting Officer the terms of a definitive contract that 
will include (1) all clauses required by the Federal Acquisition 
Regulation (FAR) on the date of execution of the underfinitized 
contract action, (2) all clauses required by law on the date of 
execution of the definitive contract action, and (3) any other 
mutually agreeable clauses, terms, and conditions. The Contractor 
agrees to submit a ______(insert type of proposal; e.g., fixed-price 
or cost-and-fee) proposal and cost or pricing data supporting its 
proposal.
    (b) The schedule for definitizing this contract is as follows 
(insert target date for definitization of the contract action and 
dates for submission of proposed, beginning of negotiations, and, if 
appropriate, submission of the make-or-buy and subcontracting plans 
and cost or pricing data).

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

    (c) If agreement on a definitive contract action to supersede 
this undefinitized contract action is not reached by the target date 
in paragraph (b) of this clause, or within any extension of it 
granted by the Contracting Officer, the Contracting Officer may, 
with the approval of the head of the contracting activity, determine 
a reasonable price or fee in accordance with subpart 15.8 and part 
31 of the FAR, subject to Contractor appeal as provided in the 
Disputes clause. In any event, the Contractor shall proceed with 
completion of the contract, subject only to the Limitation of 
Government Liability clause.
    (1) After the Contracting Officer's determination of price or 
fee, the contract shall be governed by--
    (i) All clauses required by the FAR on the date of execution of 
this underfinitized contract action for either fixed-price or cost-
reimbursement contracts, as determined by the Contracting Officer 
under this paragraph (c);
    (ii) All clauses required by law as of the date of the 
Contracting Officer's determination; and
    (iii) Any other clauses, terms, and conditions mutually agreed 
upon.
    (2) To the extent consistent with paragraph (c)(1) of this 
clause, all clauses, terms, and conditions included in this 
undefinitized contract action shall continue in effect, except those 
that by their nature apply only to an undefinitized contract action.
    (d) The definitive contract resulting from this undefinitized 
contract action will include a negotiated ____________________ 
(insert ``cost/price ceiling'' or ``firm-fixed price'') in no event 
to exceed ____________________ (insert the not-to-exceed amount).

(End of clause)

    45. Section 252.223-7007 is added to read as follows:


252.223-7007  Safeguarding Sensitive Conventional Arms, Ammunition, and 
Explosives.

    As prescribed in 223.7203, use the following clause:

Safeguarding Sensitive Conventional Arms, Ammunition, and Explosives 
(Feb. 1996)

    (a) Definition.
    ``Arms, ammunition, and explosives (AA&E),'' as used in this 
clause, means those items within the scope (chapter 1, paragraph B) 
of DoD 5100.76-M, Physical Security of Sensitive Conventional Arms, 
Ammunition, and Explosives.
    (b) The requirements of DoD 5100.76-M apply to the following 
items of AA&E being developed, produced, manufactured, or purchased 
for the Government, or provided to the Contractor as Government-
furnished property under this contract:

------------------------------------------------------------------------
                                                  National              
                 Nomenclature                      stock     Sensitivity
                                                   number      category 
------------------------------------------------------------------------
                                                                        
                                                                        
------------------------------------------------------------------------

    (c) The Contractor shall comply with the requirements of DoD 
5100.76-M, as specified in the statement of work. The edition of DoD 
5100.76-M in effect on the date of issuance of the solicitation for 
this contract shall apply.
    (d) The Contractor shall allow representatives of the Defense 
Investigative Service (DIS), and representatives of other 
appropriate offices of the Government, access at all reasonable 
times into its facilities and those of its subcontractors, for the 
purpose of performing surveys, inspections, and investigations 
necessary to review compliance with the physical security standards 
applicable to this contract.
    (e) The Contractor shall notify the cognizant DIS field office 
of any subcontract involving AA&E within 10 days after award of the 
subcontract.
    (f) The Contractor shall ensure that the requirements of this 
clause are included in all subcontracts, at every tier--
    (1) For the development, production, manufacture, or purchase of 
AA&E or
    (2) When AA&E will be provided to the subcontractor as 
Government-furnished property.
    (g) Nothing in this clause shall relieve the Contractor of its 
responsibility for complying with applicable Federal, state, and 
local laws, ordinances, codes, and regulations (including 
requirements for obtaining licenses and permits) in connection with 
the performance of this contract.

(End of clause)


252.228-7006  [Removed and Reserved]

    46. Section 252.228-7006 is removed and reserved.


252.232-7004  [Amended]

    47. Section 252.232-7004 is amended by revising the clause date to 
read ``(FEB 1996)'' and by revising in paragraph (a), in the 
parenthetical phrase, the word 

[[Page 7751]]
``excepting'' to read ``including'' and the phrase ``Undefinitized 
Actions'' to read ``Undefinitized Contract Actions.''

PART 253--FORMS

    48. Section 253.213-70 is amended by revising paragraph (e)(14) to 
read as follows:


253.213-70--  Instructions for completion of DD Form 1155

* * * * *
    (e) * * *
    14  SHIP TO--
    If a single ship-to point applies to the entire order, enter the 
name and address of that point in this block and a DODAAD code in 
the code block. For FMS shipments, enter the MAPAD code in the code 
block and an instruction for the contractor to contact the 
transportation office of the administering activity to obtain a name 
and shipping address. Enter multiple ship-to points in the schedule 
and mark this block, ``See Schedule.''
* * * * *
    49. At the end of Part 253 ``253.303-2626, Performance Evaluation 
(construction)'' and ``253.303-2631, Performance Evaluation (Architect-
Engineer)'' are added to the DFARS Form List.

Appendix G to Chapter 2 [Amended]

    50-51. Appendix G to Chapter 2, Part 3, Navy Activity Address 
Numbers, is amended by revising activity address numbers N00019, 
N00023, N00024, N00030, N00039, N00104, N00383, and by adding activity 
address number N00391 to read as follows:

Appendix G--Activity Address Numbers

* * * * *

PART 3--NAVY ACTIVITY ADDRESS NUMBERS

* * * * *
N00019--Naval Air Systems Command
EF*, GU*--1421 Jefferson Davis Highway
EF0-9--Arlington, VA 22243-5120
* * * * *
N00023--Naval Supply Systems Command
4J*, L5*--1931 Jefferson Davis Highway
4J0-9--Arlington, VA 22241-5360
N00024--Naval Sea Systems Command
EH*, U0*--2531 Jefferson Davis Highway
EH0-9--Arlington, VA 22242-5160
* * * * *
N00030--Strategic Systems Programs
EK*--1931 Jefferson Davis Highway
EK0-9--Arlington, VA 22241-5362
* * * * *
N00039--Space and Naval Warfare Systems Command
NS*--2451 Crystal Drive
NS0-9--Arlington, VA 22245-5200
* * * * *
N00104--Naval Inventory Control Point
EP--5450 Carlisle Pike
EQ--Box 2020, Mechanicsburg, PA 17055-0788
* * * * *
N00383--Naval Inventory Control Point
GB--700 Robbins Avenue
GC--Philadelphia, PA 19111-5098
* * * * *
N00391--Naval Inventory Control Point
EP, EQ,--700 Robbins Avenue
GB, GC--Philadelphia, PA 19111-5098
* * * * *
    52. Appendix G to Chapter 2, Part 4, Marine Corps Activity Address 
Numbers, is amended by revising activity number M67854 to read as 
follows:

PART 4--MARINE CORPS ACTIVITY ADDRESS NUMBERS

* * * * *
M67854--Marine Corps Systems Command
(MAJ00027)--2033 Barnett Ave, Suite 315
MU6-9--Quantico, VA 22134-5010
* * * * *
    53. Appendix G, Chapter 2, Part 10, Miscellaneous Defense 
Activities Activity Address Numbers, is amended by revising activity 
number MDA946 to read as follows:

PART 10--MISCELLANEOUS DEFENSE ACTIVITIES ACTIVITY ADDRESS NUMBERS

* * * * *
MDA946--Real Estate and Facilities Directorate, Washington headquarters 
Services, 1155 Defense Pentagon, room 3C345, Washington, DC 20301-1155
* * * * *
[FR Doc. 96-4480 Filed 2-28-96; 8:45 am]
BILLING CODE 5000-04-M