[Federal Register Volume 62, Number 1 (Thursday, January 2, 1997)]
[Rules and Regulations]
[Pages 233-255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33206]


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DEPARTMENT OF DEFENSE
48 CFR Parts 1, 3, 4, 6, 8, 9, 12, 14, 16, 19, 23, 27, 29, 31, 32, 
36, 37, 42, 45, 47, 49, 52, and 53

[FAC 90-45; FAR Case 96-312; Item II]
RIN 9000-AH23


Federal Acquisition Regulation; Certification Requirements

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

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense

[[Page 234]]

Acquisition Regulations Council have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to remove particular 
certification requirements for contractors and offerors. This final 
rule implements Section 4301(b) of Public Law 104-106. This regulatory 
action was not subject to Office of Management and Budget review under 
Executive Order 12866, dated September 30, 1993, and is not a major 
rule under 5 U.S.C. 804.

EFFECTIVE DATE: January 1, 1997.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, Room 4037, GS Building, Washington, DC 20405, (202) 501-
4755. Please cite FAC 90-45, FAR case 96-312. E-mail correspondence 
submitted over the Internet should be addressed to: [email protected]

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule amends FAR Parts 1, 3, 4, 6, 8, 9, 12, 14, 16, 19, 
23, 27, 29, 31, 32, 36, 37, 42, 45, 47, 49, 52, and 53 to remove 
particular certification requirements for contractors and offerors. The 
rule implements Section 4301(b) of the Clinger-Cohen Act of 1996 
(Public Law 104-106). Section 4301(b) required the Administrator, 
Office of Federal Procurement Policy, to issue for public comment a 
proposal to remove from the FAR those certification requirements for 
contractors and offerors that are not specifically imposed by statute. 
A proposed rule was published in the Federal Register on September 12, 
1996 (61 FR 48354). Thirty comments were received from seven 
respondents. All comments were considered in the development of the 
final rule.
    In response to the public comments, FAR 52.242-4, Certification of 
Indirect Costs, was amended to reduce the scope of the certification 
requirement and to remove the requirement to certify under penalty of 
perjury. The requirement at FAR 32.304-8 to provide certificates also 
was removed, and an editorial change was made at FAR 52.215-35 to 
substitute the word ``offer'' for ``bid'' in paragraph (a).
    The certification at 52.213-1, Fast Payment, is being retained for 
several reasons: (a) One large industry trade organization, in its 
public comments, acknowledged that this certification is useful and 
potentially beneficial to industry; (b) The Government has higher 
confidence in the accuracy of the request for payment, since it is 
expected to receive a higher degree of scrutiny by the contractor 
before it is certified and submitted; and (c) The payment office is 
frequently separate and distinct from the contract administration 
office, and the certification provides the paying office with 
documentation that the items have been delivered independent of a 
separate source inspection documentation.
    Several certifications associated with Foreign Contracting had been 
proposed for elimination. However, upon consideration of public 
comments received in response to the proposed rule, these 
certifications were retained, because the self-policing discipline of a 
certification requirement is important to enforcing a national policy 
grounded in vital economic and security interests. The Government 
believes that elimination of these certification requirements would 
have created a need for offerors to submit more detailed information 
regarding the origin of offered products. Therefore, the certification 
is viewed as a less burdensome alternative. The certification required 
by 52.223-1, Clean Air and Water Certification, has been retained 
because the Government has concluded that the certification is the 
least burdensome and most effective way to avoid entering into a 
contract with a Clean Air Act or Clean Water Act violator. In the near 
future, we will be publishing for public comment a proposal to 
substitute a more limited clean air and water certification and a Clean 
Air and Water Act notification for commercial items. An associated 
change is made in FAR case 93-310, Item VI of this FAC. The 
certification required by 52.223-1, Clean Air and Water Certification, 
was also revised and retained because the Government concluded that it 
would be the least burdensome and most effective way to avoid entering 
into a contract with a Clean Air Act or Clean Water Act Violator. 
Interested parties are invited to submit comments on the retention of 
these certification requirements. Please cite Holding File 96-708-01, 
Regulatory Reform--Certifications, in correspondence. Comments should 
be limited to the retention of the following certifications for 
contractors and offerors which were proposed for elimination but have 
been retained as a result of the analysis of public comments.

----------------------------------------------------------------------------------------------------------------
                                               Clause/                                                          
                 FAR cite                   provision No.                          Title                        
----------------------------------------------------------------------------------------------------------------
22.810(a)(1).............................       52.222-21  Certification of Nonsegregated Facilities.           
23.105(a)................................        52.223-1  Clean Air and Water Certification.                   
25.109(a)................................        52.225-1  Buy American Certificate.                            
25.305...................................        52.225-6  Balance of Payments Program Certificate              
                                                 52.225-7  Balance of Payments Program.                         
25.408(a)(1).............................        52.225-8  Buy American Act--Trade Agreements--Balance of       
                                                            Payments Program Certificate.                       
25.408(a)(2).............................        52.225-9  Buy American Act--Trade Agreements--Balance of       
                                                            Payments Program.                                   
25.408(a)(3).............................       52.225-20  Buy American Act--North American Free Trade Agreement
                                                            Implementation Act--Balance of Payments Program     
                                                            Certificate (amended).                              
25.408(a)(4).............................       52.225-21  Buy American Act--North American Free Trade Agreement
                                                            Implementation Act--Balance of Payments Program.    
25.408(b)................................  ..............  Solicitation provisions and contract clauses.        
----------------------------------------------------------------------------------------------------------------

B. Regulatory Flexibility Act

    This final rule is expected to have a significant beneficial impact 
on a substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because it reduces 
the number of certifications that offerors and contractors must provide 
to the Government. A Final Regulatory Flexibility Analysis (FRFA) has 
been prepared and will be provided to the Chief Counsel for Advocacy of 
the Small Business Administration. A copy of the FRFA may be obtained 
from the FAR Secretariat. The analysis is summarized as follows: The 
objective and legal basis for this rule is Section 4301(b) of the 
Clinger-Cohen Act of 1996 (Public Law 104-106). The rule implements 
Section 4301(b) by amending the FAR to remove particular certification 
requirements for contractors and offerors.

[[Page 235]]

    There were no public comments received in response to the initial 
regulatory flexibility analysis. Several changes were made in the final 
rule as a result of public comments received in response to the 
proposed rule. All of the certifications required by FAR Part 25 have 
been retained. The certification required by FAR 52.223-1 was also 
retained. The Certification of Final Indirect Costs at FAR 52.242-4 was 
revised to remove the requirement to sign the certification under 
penalty of perjury, and the requirement to provide certificates was 
deleted from FAR 32.304-8.
    The rule will apply to all bidders or offerors, and contractors, 
large and small, whose direct economic interests would be affected by 
the award or failure to award a Government contract. The number of 
small entities to which the rule will apply is estimated to be between 
35,000 and 45,000. This rule does not impose any additional reporting, 
recordkeeping, or other compliance requirements.
    This rule is expected to have a beneficial impact on small entities 
by deleting existing certification requirements that are not required 
by statute.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Public Law 96-511) is deemed to apply 
because the final rule eliminates existing recordkeeping and 
information collection requirements approved by the Office of 
Management and Budget (OMB) under OMB Control Numbers 9000-0017, and 
9000-0111. A paperwork burden of 67,375 hours is eliminated.

List of Subjects in 48 CFR Parts 1, 3, 4, 6, 8, 9, 12, 14, 16, 19, 
23, 27, 29, 31, 32, 36, 37, 42, 45, 47, 49, 52, and 53

    Government procurement.

    Dated: December 24, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Parts 1, 3, 4, 6, 8, 9, 12, 14, 16, 19, 23, 27, 
29, 31, 32, 36, 37, 42, 45, 47, 49, 52, and 53 are amended as set forth 
below:
    1. The authority citation for 48 CFR Parts 1, 3, 4, 6, 8, 9, 12, 
14, 16, 19, 23, 27, 29, 31, 32, 36, 37, 42, 45, 47, 49, 52, and 53 
continues to read as follows:

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

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM


1.106  [Amended]

    2. Section 1.106 is amended in the table following the text by 
removing the following entries along with their control numbers: 8.203-
2, 9.5, and 52.208-1.

PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    3. Section 3.502-2(i)(1) is revised to read as follows:


3.502-2  Subcontractor kickbacks.

* * * * *
    (i) * * *
    (1) Have in place and follow reasonable procedures designed to 
prevent and detect violations of the Act in its own operations and 
direct business relationships (e.g., company ethics rules prohibiting 
kickbacks by employees, agents, or subcontractors; education programs 
for new employees and subcontractors, explaining policies about 
kickbacks, related company procedures and the consequences of 
detection; procurement procedures to minimize the opportunity for 
kickbacks; audit procedures designed to detect kickbacks; periodic 
surveys of subcontractors to elicit information about kickbacks; 
procedures to report kickbacks to law enforcement officials; annual 
declarations by employees of gifts or gratuities received from 
subcontractors; annual employee declarations that they have violated no 
company ethics rules; personnel practices that document unethical or 
illegal behavior and make such information available to prospective 
employers); and
* * * * *

PART 4--ADMINISTRATIVE MATTERS

    4. Section 4.102 is amended by revising the last sentence of 
paragraph (d) to read as follows:


4.102  Contractor's signature.

* * * * *
    (d) Joint ventures. * * * When a corporation is participating, the 
contracting officer shall verify that the corporation is authorized to 
participate in the joint venture.
* * * * *

PART 6--COMPETITION REQUIREMENTS


6.302-3  [Amended]

    5. Section 6.302-3 is amended in paragraph (b)(1)(vi) by inserting 
``or'' at the end; in paragraph (b)(1)(vii) by removing ``; or'' and 
inserting a period in its place; and by removing paragraph 
(b)(1)(viii).

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    6. Section 8.002 is amended by removing paragraph (a), 
redesignating paragraphs (b) through (f) as (a) through (e); and 
revising newly redesignated paragraphs (a) and (d) to read as follows:


8.002  Use of other Government supply sources.

* * * * *
    (a) Public utility services (see part 41);
* * * * *
    (d) Strategic and critical materials (e.g., metals and ores) from 
inventories exceeding Defense National Stockpile requirements (detailed 
information is available from the Defense National Stockpile Center, 
8725 John J. Kingman Rd., Suite 4528, Fort Belvoir, VA 22060-6223; and
* * * * *

Subpart 8.2  [Reserved]

    7. Subpart 8.2 is removed and reserved.

PART 9--CONTRACTOR QUALIFICATIONS


9.505-4  [Amended]

    8. Section 9.505-4(c) is amended by removing the last sentence.
    9. Section 9.506 is amended in paragraph (a) by revising the first 
sentence; in paragraph (d)(3) by replacing ``; and,'' with a period; 
and by removing paragraph (d)(4). The revised text reads as follows:


9.506  Procedures.

    (a) If information concerning prospective contractors is necessary 
to identify and evaluate potential organizational conflicts of interest 
or to develop recommended actions, contracting officers first should 
seek the information from within the Government or from other readily 
available sources. * * *
* * * * *


9.507-1  [Amended]

    10. Section 9.507-1 is amended by removing the paragraph (a) 
designation and removing paragraphs (b), (c), and (d).

PART 12--ACQUISITION OF COMMERCIAL ITEMS

    11. Section 12.503 is amended by revising paragraphs (b)(1) and 
(b)(4) to read as follows:

[[Page 236]]

12.503  Applicability of certain laws to Executive agency contracts for 
the acquisition of commercial items.

* * * * *
    (b) * * *
    (1) 33 U.S.C. 1368, Requirement for a clause under the Federal 
Water Pollution Control Act (see 23.105).
* * * * *
    (4) 42 U.S.C. 7606, Requirements for a clause under the Clean Air 
Act (see 23.105).
* * * * *


12.504  [Amended]

    12. Section 12.504 is amended by removing paragraph (a)(16).

PART 14--SEALED BIDDING


14.405  [Amended]

    13. Section 14.405(f) is amended by removing ``certifications'' and 
inserting ``representations'' in its place.

PART 16--TYPES OF CONTRACTS


16.306  [Amended]

    14. Section 16.306 is amended in the second sentence of paragraph 
(d)(2) by removing ``certification'' and inserting ``statement'' in its 
place.

PART 19--SMALL BUSINESS PROGRAMS


19.001  [Amended]

    15. At section 19.001, the definition ``Small disadvantaged 
business concern'' is amended in paragraph (b) by removing ``certify'' 
and inserting ``represent'' in its place.
    16. Section 19.301 is amended by revising the first sentence of 
paragraph (a) to read as follows:


19.301  Representation by the offeror.

    (a) To be eligible for award as a small business, an offeror must 
represent in good faith that it is a small business at the time of its 
written representation. * * *
* * * * *
    17. Section 19.303 is amended by revising the introductory text of 
paragraph (c)(2); in paragraph (c)(2)(vi) by removing ``certifying'' 
and inserting ``acknowledging'' in its place; and by revising the 
second sentence of paragraph (c)(3) to read as follows:


19.303  Determining product or service classifications.

* * * * *
    (c) * * *
    (2) The appeal shall be in writing and shall be addressed to the 
Office of Hearings and Appeals, Small Business Administration, 
Washington, DC 20416. No particular form is prescribed for the appeal. 
However, time limits and procedures set forth in SBA's regulations at 
13 CFR 121.11 are strictly enforced. The appellant shall submit an 
original and one legible copy of the appeal. In the case of telegraphic 
appeals, the telegraphic notice shall be confirmed by the next day 
mailing of a written appeal, in duplicate. By signing the submission, a 
party or its attorney attests that the statements and allegations in 
the submission are true to the best of its knowledge, and that the 
submission is not being filed for the purpose of delay or harassment. 
The appeal shall include--
* * * * *
    (3) * * * The contracting officer's response, if any, to the appeal 
must include appropriate argument and evidence, and must be filed with 
the Office of Hearings and Appeals no later than 5 business days after 
receipt of the appeal. * * *


19.501  [Amended]

    18. Section 19.501 is amended by removing paragraph (h).


19.508  [Amended]

    19. Section 19.508 is amended by removing paragraph (f).
    20. Section 19.703 is amended in paragraph (a)(2) by revising the 
second and fourth sentences to read as follows:


19.703  Eligibility requirements for participating in the program.

    (a) * * *
    (2) * * * Individuals who represent that they are members of named 
groups (Black Americans, Hispanic Americans, Native Americans, Asian-
Pacific Americans, Subcontinent-Asian Americans) may also represent 
themselves as socially and economically disadvantaged. * * * Concerns 
that are tribally owned entities or Native Hawaiian Organizations may 
represent themselves as socially and economically disadvantaged if they 
qualify under the requirements of 13 CFR 124.112 or 13 CFR 124.113, 
respectively. * * *
* * * * *

PART 23--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-
FREE WORKPLACE


23.102  [Amended]

    21. Section 23.102 is amended in paragraph (d) by removing the 
reference ``40 CFR part 15'' and inserting ``40 CFR part 32'' in its 
place.
    22. Section 23.302 is amended by revising paragraph (d)(1) to read 
as follows:


23.302  Policy.

* * * * *
    (d) * * *
    (1) By the apparent successful offeror prior to contract award if 
hazardous materials are expected to be used during contract 
performance.
* * * * *
    23. Section 23.601 is amended by revising paragraph (c) to read as 
follows:


23.601  Requirements.

* * * * *
    (c) The clause permits the contracting officer to waive the 
notification if the contractor states that the notification on prior 
deliveries is still current. The contracting officer may waive the 
notice only after consultation with cognizant technical 
representatives.
* * * * *

PART 27--PATENT, DATA, AND COPYRIGHTS

    24. Section 27.303(e) is amended by revising the first sentence to 
read as follows:


27.303  Contract clauses.

* * * * *
    (e) For those agencies excepted under paragraph (a)(1)(i) of this 
section, only small business firms or non-profit organizations qualify 
for the clause at 52.227-11. * * *
* * * * *
    25. Section 27.406 is amended by revising paragraph (c); in 
paragraph (d)(1) and (d)(2), and twice in (d)(3) by removing ``(C) 
certification'' and inserting ``(D) declaration''; and in paragraph 
(d)(2) by removing ``certify'' and inserting ``declare'' in its place. 
The revised text reads as follows:


27.406  Acquisition of data.

* * * * *
    (c) Acceptance of data. As required by 41 U.S.C. 418a(d)(7), 
acceptability of technical data delivered under a contract shall be in 
accordance with the appropriate contract clause as required by subpart 
46.3, and the clause at 52.227-21, Technical Data Declaration, 
Revision, and Withholding of Payment--Major Systems, when it is 
included in the contract. (See paragraph (d) of this section.)
* * * * *


27.409  [Amended]

    26. Section 27.409 is amended in paragraph (q) by removing 
``Certification'' and inserting ``Declaration'' in its place.

[[Page 237]]

PART 29--TAXES


29.302  [Amended]

    27. Section 29.302 is amended in the second sentence of paragraph 
(b) by revising the word ``Certificate'' to read ``Form''.
    28. Section 29.305 is amended in paragraph (a)(3) by revising the 
word ``Certificate'' to read ``Form''; and by revising paragraph (b)(3) 
to read as follows:


29.305  State and local tax exemptions.

* * * * *
    (b) * * *
    (3) Under a contract or purchase order that contains no tax 
provision, if--
    (i) Requested by the contractor and approved by the contracting 
officer or at the discretion of the contracting officer; and
    (ii) Either the contract price does not include the tax or, if the 
transaction or property is tax exempt, the contractor consents to a 
reduction in the contract price.

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

    29. Section 31.110 is amended by revising the first sentence of 
paragraph (a) to read as follows:


31.110  Indirect cost rate certification and penalties on unallowable 
costs.

    (a) Certain contracts require certification of the indirect cost 
rates proposed for final payment purposes. * * *
* * * * *


31.205-22  Lobbying and political activity costs.

    30. Section 31.205-22 is amended by removing paragraph (d) and 
redesignating paragraphs (e) and (f) as (d) and (e), respectively; and 
in the newly designated (d) by adding ``(see 42.703-2)'' after 
``unallowable''.

PART 32--CONTRACT FINANCING


32.304-8  Amended]

    31. Section 32.304-8 is amended in paragraph (b)(3) by revising the 
word ``certificates'' to read ``documentation''.


32.805  [Amended]

    32. Section 32.805 is amended in paragraph (a)(1)(iii) by removing 
``certified'' and inserting ``true'' in its place.

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

    33. Section 36.205 is amended by revising paragraph (b)(3) to read 
as follows:


36.205  Statutory cost limitations.

* * * * *
    (b) * * *
    (3) That the price on each schedule shall include an approximate 
apportionment of all estimated direct costs, allocable indirect costs, 
and profit.
* * * * *

PART 37--SERVICE CONTRACTING

    34. Section 37.402 is revised to read as follows:


37.402  Contracting officer responsibilities.

    Contracting officers shall obtain evidence of insurability 
concerning medical liability insurance from the apparent successful 
offeror prior to contract award and shall obtain evidence of insurance 
demonstrating the required coverage prior to commencement of 
performance.

PART 42--CONTRACT ADMINISTRATION


42.302  [Amended]

    35. Section 42.302 is amended in paragraph (a)(18) by revising the 
word ``certificates'' to read ``forms''.
    36. Section 42.703-2 is amended by revising paragraphs (a) and 
(c)(1); in paragraph (c)(2)(ii) by removing the word ``potentially''; 
in paragraph (d) by inserting the word ``final'' after ``of''; and by 
revising paragraph (f) to read as follows:


42.703-2  Certificate of indirect costs.

    (a) General. In accordance with 10 U.S.C. 2324(h) and 41 U.S.C. 
256(h), a proposal shall not be accepted and no agreement shall be made 
to establish final indirect cost rates unless the costs have been 
certified by the contractor.
* * * * *
    (c) * * *
    (1) If the contractor has not certified its proposal for final 
indirect cost rates and a waiver is not appropriate, the contracting 
officer may unilaterally establish the rates.
* * * * *
    (f) Contract clause. (1) Except as provided in paragraph (f)(2) of 
this subsection, the clause at 52.242-4, Certification of Indirect 
Costs, shall be incorporated into all solicitations and contracts which 
provide for establishment of final indirect cost rates.
    (2) The Department of Energy may provide an alternate clause in its 
agency supplement for its Management and Operating contracts.

PART 45--GOVERNMENT PROPERTY


45.606-1  [Amended]

    37. Section 45.606-1 is amended by removing the designation of 
paragraph (a); and by removing paragraph (b).


45.606-5  [Amended]

    38. Section 45.606-5 is amended in the parenthetical at the end of 
paragraph (a)(2) by revising ``45.606-1(a).)'' to read ``45.606-1.)''

PART 47--TRANSPORTATION

    39. Section 47.303-17 is amended by revising paragraph (d)(3)(ii) 
to read as follows:


47.303-17  Contractor-prepaid commercial bills of lading, small package 
shipments.

* * * * *
    (d) * * *
    (3) * * *
    (ii) The contractor agrees to furnish evidence of payment when 
requested by the Government.
* * * * *


47.305-11  [Amended]

    40. Section 47.305-11 is amended by removing the designation of 
paragraph (a) and adding the text to the end of the undesignated 
introductory paragraph which precedes it; by removing paragraph (b); 
and redesignating paragraphs (a)(1) through (3) as (a) through (c).
    41. Section 47.403-3 is amended in paragraph (a) by removing 
``certificate or''; and by revising paragraph (c) to read as follows:


47.403-3  Disallowance of expenditures.

* * * * *
    (c) The justification requirement is satisfied by the contractor's 
use of a statement similar to the one contained in the clause at 
52.247-63, Preference for U.S.-Flag Air Carriers. (See 47.405.)
    42. Section 47.404 is amended by revising paragraph (b)(2) to read 
as follows:


47.404  Air freight forwarders.

* * * * *
    (b) * * *
    (2) justification for the use of foreign-flag air carriers similar 
to the one shown in the clause at 52.247-63, Preference for U.S.-Flag 
Air Carriers.

PART 49--TERMINATION OF CONTRACTS

    43. Section 49.108-3 is amended by revising paragraph (b) to read 
as follows:


49.108-3  Settlement procedure.

* * * * *
    (b) Except as provided in 49.108-4, the TCO shall require that--

[[Page 238]]

    (1) All subcontractor termination inventory be disposed of and 
accounted for in accordance with part 45; and
    (2) The prime contractor submit, for approval or ratification, all 
termination settlements with subcontractors.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.208-1 and 52.208-2  [Removed and Reserved]

    44. Sections 52.208-1 and 52.208-2 are removed and reserved.
    45. Section 52.209-3 is amended in Alternate I by revising the date 
and paragraph (i) to read as follows:


52.209-3  First Article Approval--Contractor Testing.

* * * * *

Alternate I (JAN 1997). * * *

    (i) The Contractor shall produce both the first article and the 
production quantity at the same facility.
* * * * *
    46. Section 52.209-4 is amended by revising the date and paragraph 
(j) of Alternate I to read as follows:


52.209-4  First Article Approval--Government Testing.

* * * * *

Alternate I (JAN 1997). * * *

    (j) The Contractor shall produce both the first article and the 
production quantity at the same facility.
* * * * *


52.209-7 and 52.209-8  [Removed]

    47. Sections 52.209-7 and 52.209-8 are removed.
    48. Section 52.212-3 is amended by revising the provision date, 
paragraph (c)(2), the introductory text of (c)(6), and the last 
sentence of the introductory text of (c)(6)(ii) to read as follows:


52.212-3  Offeror Representations and Certifications--Commercial Items.

* * * * *

OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (JAN 1997)

* * * * *
    (c) * * *
    (2) Small disadvantaged business concern. The offeror represents 
that it {time}  is, {time}  is not a small disadvantaged business 
concern.
* * * * *
    (6) Small Business Size for the Small Business Competitiveness 
Demonstration Program and for the Targeted Industry Categories under 
the Small Business Competitiveness Demonstration Program. [Complete 
only if the offeror has represented itself to be a small business 
concern under the size standards for this solicitation.]
* * * * *
    (ii) * * * Offeror represents as follows:
* * * * *
    49. Section 52.214-30 is revised to read as follows:


52.214-30  Annual Representations and Certifications--Sealed Bidding.

    As prescribed in 14.201-6(u), insert the following provision:

ANNUAL REPRESENTATIONS AND CERTIFICATIONS--SEALED BIDDING (JAN 1997)

    The bidder has (check the appropriate block):
    {time}  (a) Submitted to the contracting office issuing this 
solicitation, annual representations and certifications dated 
____________ [insert date of signature on submission], which are 
incorporated herein by reference, and are current, accurate, and 
complete as of the date of this bid, except as follows [insert 
changes that affect only this solicitation; if ``none,'' so state]:

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    {time}  (b) Enclosed its annual representations and 
certifications.

    (End of provision)

    50. Section 52.215-35 is revised to read as follows:


52.215-35  Annual Representations and Certifications--Negotiation.

    As prescribed in 15.407(i), insert the following provision:

ANNUAL REPRESENTATIONS AND CERTIFICATIONS--NEGOTIATION (JAN 1997)

    The offeror has (check the appropriate block):
    {time}  (a) Submitted to the contracting office issuing this 
solicitation, annual representations and certifications dated 
____________ [insert date of signature on submission] which are 
incorporated herein by reference and are current, accurate, and 
complete as of the date of this offer, except as follows [insert 
changes that affect only this solicitation; if ``none,'' so state]:

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    {time}  (b) Enclosed its annual representations and 
certifications.

    (End of provision)


52.216-2  [Amended]

    51. Section 52.216-2 is amended by revising the clause date to read 
``(JAN 1997)''; and in paragraph (b) by removing the last sentence.


52.216-3  [Amended]

    52. Section 52.216-3 is amended by revising the clause date to read 
``(JAN 1997)''; and in paragraph (b) by removing the last sentence.


52.216-4  [Amended]

    53. Section 52.216-4 is amended by revising the clause date to read 
``(JAN 1997)''; and by removing paragraph (d) and redesignating 
paragraph (e) as (d).


52.219-1  [Amended]

    54. Section 52.219-1 is amended by revising the provision date to 
read ``(JAN 1997)''; and in paragraph (b)(1) by removing ``and 
certifies''.


52.219-15  [Removed and Reserved]

    55. Section 52.219-15 is removed and reserved,


52.219-18  [Amended]

    56. Section 52.219-18 is amended by revising the clause date to 
read ``(JAN 1997)''; and in paragraph (b) by removing ``certifies'' and 
inserting ``represents'' in its place.
    57. Section 52.219-19 is amended by revising the date and paragraph 
(b) of the provision to read as follows:


52.219-19  Small Business Concern Representation for the Small Business 
Competitiveness Demonstration Program.

* * * * *

SMALL BUSINESS CONCERN REPRESENTATION FOR THE SMALL BUSINESS 
COMPETITIVENESS DEMONSTRATION PROGRAM (JAN 1997)

* * * * *
    (b) [Complete only if the Offeror has represented itself under 
the provision at 52.219-1 as a small business concern under the size 
standards of this solicitation.]
    The Offeror {time}  is, {time}  is not an emerging small 
business.
* * * * *


52.219-21  [Amended]

    58. Section 52.219-21 is amended by revising the clause date to 
read (JAN 1997); in the parenthetical following the provision heading 
by removing ``certified'' and inserting ``represented'' in its place; 
and in the first paragraph of the provision by removing ``and 
certifies''.
    59. Section 52.223-3 is amended by revising the clause date and 
paragraphs (c) and (e) to read as follows:


52.223-3  Hazardous Material Identification and Material Safety Data.

* * * * *

HAZARDOUS MATERIAL IDENTIFICATION AND MATERIAL SAFETY DATA (JAN 1997)

* * * * *
    (c) This list must be updated during performance of the contract 
whenever the Contractor determines that any other material to be 
delivered under this contract is hazardous.
* * * * *
    (e) If, after award, there is a change in the composition of the 
item(s) or a revision to Federal Standard No. 313, which renders 
incomplete or inaccurate the data submitted under paragraph (d) of 
this clause, the Contractor shall promptly notify the Contracting 
Officer and resubmit the data.
* * * * *

[[Page 239]]

    60. Section 52.223-7 is amended by revising the clause date and 
paragraph (b)(2) to read as follows:


52.223-7  Notice of Radioactive Materials.

* * * * *

NOTICE OF RADIOACTIVE MATERIALS (JAN 1997)

* * * * *
    (b) * * *
    (2) State that the quantity of activity, characteristics, and 
composition of the radioactive material have not changed; and
* * * * *


52.227-12  [Amended]

    61. Section 52.227-12 is amended by revising the clause date to 
read ``(JAN 1997)''; and in paragraph (f)(7) by removing ``certifying'' 
wherever it appears and inserting ``stating'' in its place.


52.227-13  [Amended]

    62. Section 52.227-13 is amended by revising the clause date to 
read ``(JAN 1997)''; and in paragraph (e)(3) by removing ``certifying'' 
wherever it appears and inserting ``stating'' in its place.
    63. Section 52.227-21 is amended by revising the section and clause 
headings, the clause date, paragraph (b)(1), the first sentence of 
(b)(2), and (d)(1)(ii) to read as follows:


52.227-21  Technical Data Declaration, Revision, and Withholding of 
Payment--Major Systems.

* * * * *

TECHNICAL DATA DECLARATION, REVISION, AND WITHHOLDING OF PAYMENT--MAJOR 
SYSTEMS (JAN 1997)

* * * * *
    (b) Technical data declaration. (1) All technical data that are 
subject to this clause shall be accompanied by the following 
declaration upon delivery:

TECHNICAL DATA DECLARATION (JAN 1997)

    The Contractor, ____________, hereby declares that, to the best 
of its knowledge and belief, the technical data delivered herewith 
under Government contract No. ______ (and subcontract ____________, 
if appropriate) are complete, accurate, and comply with the 
requirements of the contract concerning such technical data.

(End of declaration)

    (2) The Government shall rely on the declarations set out in 
paragraph (b)(1) of this clause in accepting delivery of the 
technical data, and in consideration thereof may, at any time during 
the period covered by this clause, request correction of any 
deficiencies which are not in compliance with contract requirements. 
* * *
* * * * *
    (d) * * *
    (1) * * *
    (ii) Provide the declaration required by paragraph (b)(1) of 
this clause;
* * * * *
(End of clause)

    64. Section 52.228-5 is amended by revising the clause date and the 
first sentence of paragraph (b) to read as follows:


52.228-5  Insurance--Work on a Government Installation.

* * * * *

INSURANCE--WORK ON A GOVERNMENT INSTALLATION (JAN 1997)

* * * * *
    (b) Before commencing work under this contract, the Contractor 
shall notify the Contracting Officer in writing that the required 
insurance has been obtained. * * *
* * * * *
    65. Section 52.228-8 is amended by revising the clause date and the 
first sentence of paragraph (d) to read as follows:


52.228-8  Liability and Insurance--Leased Motor Vehicles.

* * * * *

LIABILITY AND INSURANCE--LEASED MOTOR VEHICLES (JAN 1997)

* * * * *
    (d) Before commencing work under this contract, the Contractor 
shall notify the Contracting Officer in writing that the required 
insurance has been obtained.
* * * * *
    66. Section 52.228-9 is amended by revising the clause date, the 
second sentence of paragraph (b), and paragraph (c)(2) to read as 
follows:


52.228-9  Cargo Insurance.

* * * * *

CARGO INSURANCE (JAN 1997)

    (a) * * *
    (b) * * * As evidence of insurance maintained, an authenticated 
copy of the cargo liability insurance policy or policies shall be 
furnished to ________ [insert name of contracting agency]. * * *
    (c) * * *
    (2) An authenticated copy of any renewal policy to ______ 
[insert name of contracting agency] not less than 15 days prior to 
the expiration of any current policy on file with ________ [insert 
name of contracting agency].

(End of clause)

    67. Section 52.237-7 is amended by revising the clause date and the 
first sentence of paragraph (d) to read as follows:


52.237-7  Indemnification and Medical Liability Insurance.

* * * * *

INDEMNIFICATION AND MEDICAL LIABILITY INSURANCE (JAN 1997)

* * * * *
    (d) Evidence of insurance documenting the required coverage for 
each health care provider who will perform under this contract shall 
be provided to the Contracting Officer prior to the commencement of 
services under this contract. * * *
* * * * *
    68. Section 52.242-4 is amended by revising the section heading, 
clause title and date; paragraphs (a)(1), (b), and (c); and the 
Certificate following paragraph (c). The revised text reads as follows:


52.242-4  Certification of Final Indirect Costs.

* * * * *

CERTIFICATION OF FINAL INDIRECT COSTS (JAN 1997)

    (a) * * *
    (1) Certify any proposal to establish or modify final indirect 
cost rates;
* * * * *
    (b) Failure by the Contractor to submit a signed certificate, as 
described in this clause, may result in final indirect costs at 
rates unilaterally established by the Contracting Officer.
    (c) The certificate of final indirect costs shall read as 
follows:

CERTIFICATE OF FINAL INDIRECT COSTS

    This is to certify that I have reviewed this proposal to 
establish final indirect cost rates and to the best of my knowledge 
and belief:
    1. All costs included in this proposal (identify proposal and 
date) to establish final indirect cost rates for (identify period 
covered by rate) are allowable in accordance with the cost 
principles of the Federal Acquisition Regulation (FAR) and its 
supplements applicable to the contracts to which the final indirect 
cost rates will apply; and
    2. This proposal does not include any costs which are expressly 
unallowable under applicable cost principles of the FAR or its 
supplements.

Firm:------------------------------------------------------------------

Signature:-------------------------------------------------------------

Name of Certifying Official:-------------------------------------------

Title:-----------------------------------------------------------------

Date of Execution:-----------------------------------------------------

(End of clause)

    69. Section 52.245-8 is amended by revising the introductory text, 
the clause date, and the fourth and fifth sentences of paragraph (f) to 
read as follows:


52.245-8  Liability for the Facilities.

    As prescribed in 45.302-6(b), insert the following clause:

LIABILITY FOR THE FACILITIES (JAN 1997)

* * * * *
    (f) * * * Documentation of insurance or an authenticated copy of 
such insurance shall be deposited promptly with the Contracting 
Officer. The Contractor shall, not less than 30 days before the 
expiration of such insurance, deliver to the Contracting Officer 
documentation of insurance or an authenticated copy of each renewal 
policy. * * *
* * * * *
(End of clause)


[[Page 240]]


    70. Section 52.247-2 is amended by revising the introductory 
paragraph, the clause date and paragraph (a) to read as follows:


52.247-2  Permits, Authorities, or Franchises.

    As prescribed in 47.207-1(a), insert the following clause:

PERMITS, AUTHORITIES, OR FRANCHISES (JAN 1997)

    (a) The offeror does {time} , does not {time} , hold 
authorization from the Federal Highway Administration (FHWA) or 
other cognizant regulatory body. If authorization is held, it is as 
follows:

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

(Name of regulatory body)

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

(Authorization No.)
* * * * *
[End of clause]


52.247-54  [Removed and Reserved]

    71. Section 52.247-54 is removed and reserved.
    72. Section 52.247-63 is amended by revising the clause date and 
the definition ``U.S.-flag air carrier''; in paragraph (b) by removing 
``49 U.S.C. 1517'' and inserting ``49 U.S.C. 40118''; and by revising 
paragraph (d) to read as follows:


52.247-63  Preference for U.S.-Flag Air Carriers.

* * * * *

PREFERENCE FOR U.S.-FLAG AIR CARRIERS (JAN 1997)

* * * * *
    (a) * * *
    U.S.-flag air carrier, as used in this clause, means an air 
carrier holding a certificate under 49 U.S.C. Chapter 411.
* * * * *
    (d) In the event that the Contractor selects a carrier other 
than a U.S.-flag air carrier for international air transportation, 
the Contractor shall include a statement on vouchers involving such 
transportation essentially as follows:

STATEMENT OF UNAVAILABILITY OF U.S.-FLAG AIR CARRIERS

    International air transportation of persons (and their personal 
effects) or property by U.S.-flag air carrier was not available or 
it was necessary to use foreign-flag air carrier service for the 
following reasons (see section 47.403 of the Federal Acquisition 
Regulation): [State reasons]: ________________

(End of statement)
* * * * *

PART 53--FORMS

    73. Section 53.214(e) is amended by revising the paragraph heading 
to read as follows:


53.214  Sealed bidding.

* * * * *
    (e) SF 129 (REV. 12/96), Solicitation Mailing List Application. * * 
*
* * * * *
    74. Section 53.215-1(f) is amended by revising the paragraph 
heading to read as follows:


53.215-1  Solicitation and receipt of proposals and quotations.

* * * * *
    (f) SF 129 (REV. 12/96), Solicitation Mailing List Application. * * 
*
* * * * *
    75. Section 53.222(g) is amended by revising the paragraph heading 
to read as follows:


53.222  Application of labor laws to Government acquisitions (SF's 99, 
308, 1093, 1413, 1444, 1445, 1446, WH-347).

* * * * *
    (g) SF 1445 (REV. 12/96), Labor Standards Interview. * * *
* * * * *
    76. Section 53.229 is amended by revising the paragraph heading to 
read as follows:


53.229  Taxes (SF's 1094, 1094-A).

    SF 1094 (REV. 12/96, U.S. Tax Exemption Form, and SF 1094-A (REV 
12/96), Tax Exemption Forms Accountability Record. * * *
    77. Section 53.245 is amended in paragraphs (c), (f), (g), (h), 
(i), and (j) by revising the paragraph headings to read as follows:


53.245  Government property.

* * * * *
    (c) SF 1423 (REV. 12/96), Inventory Verification Survey.
* * * * *
    (f) SF 1426 (REV. 12/96), Inventory Schedule A (Metals in Mill 
Product Form), and SF 1427 (REV. 7/89), Inventory Schedule A--
Continuation Sheet (Metals in Mill Product Form). * * *
    (g) SF 1428 (REV. 12/96), Inventory Schedule B, and SF 1429 (REV. 
7/89), Inventory Schedule B--Continuation Sheet. * * *
    (h) SF 1430 (REV. 12/96), Inventory Schedule C (Work-in-Process) 
and SF 1431 (REV. 7/89), Inventory Schedule C--Continuation Sheet 
(Work-in-Process). * * *
    (i) SF 1432 (REV. 12/96), Inventory Schedule D (Special Tooling and 
Special Test Equipment), and SF 1433 (REV. 7/89), Inventory Schedule 
D--Continuation Sheet (Special Tooling and Special Test Equipment). * * 
*
    (j) SF 1434 (REV. 12/96), Termination Inventory Schedule E (Short 
Form for Use with SF 38 Only). * * *


53.301-129  [Revised]

    78. Section 53.301-129 is revised to read as follows:


53.301-129  SF 129, Solicitation Mailing List Application.

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53.301-1094  [Revised]

    79. Section 53.301-1094 is revised to read as follows:


53.301-1094  SF 1094, U.S. Tax Exemption Form.

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53.301-1094A  [Revised]

    80. Section 53.301-1094A is revised to read as follows:


Sec. 53.301-1094A  SF 1094A, Tax Exemption Forms Accountability Record.

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53.301-1423  [Revised]

    81. Section 53.301-1423 is revised to read as follows:


53.301-1423  SF 1423, Inventory Verification Survey.

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53.301-1426  [Revised]

    82. Section 53.301-1426 is revised to read as follows:


53.301-1426  SF 1426, Inventory Schedule A (Metals in Mill Product 
Form).

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53.301-1428  [Revised]

    83. Section 53.301-1428 is revised to read as follows:


53.301-1428  SF 1428, Inventory Schedule B.

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53.301-1430  [Revised]

    84. Section 53.301-1430 is revised to read as follows:


53.301-1430  SF 1430, Inventory Schedule C (Work-in-Process).

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53.301-1432  [Revised]

    85. Section 53.301-1432 is revised to read as follows:


53.301-1432  SF 1432, Inventory Schedule D (Special Tooling and Special 
Test Equipment).

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53.301-1434  [Revised]

    86. Section 53.301-1434 is revised to read as follows:


53.301-1434  SF 1434, Termination Inventory

    Schedule E (Short Form For Use With SF 1438 Only).

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53.301-1445  [Revised]

    87. Section 53.301-1445 is revised to read as follows:


53.301-1445  SF 1445, Labor Standards Interview.

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[FR Doc. 96-33206 Filed 12-31-96; 8:45 am]
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