[Federal Register Volume 62, Number 175 (Wednesday, September 10, 1997)]
[Rules and Regulations]
[Pages 47569-47583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23883]
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OFFICE OF PERSONNEL MANAGEMENT
48 CFR Parts 1602, 1603, 1604, 1615, 1616, 1629, 1631, 1643, 1644,
1645, 1649, 1652, and 1653
RIN 3206-AH45
Federal Employees Health Benefits Program Acquisition Regulation;
Truth in Negotiations Act and Related Changes
AGENCY: Office of Personnel Management.
ACTION: Final rulemaking.
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SUMMARY: The Office of Personnel Management (OPM) is issuing a final
regulation amending the Federal Employees Health Benefits Acquisition
Regulation (FEHBAR) to implement those portions of the Federal
Acquisition Streamlining Act of 1994 (FASA) that impact on the FEHB
Program.
EFFECTIVE DATE: October 10, 1997.
FOR FURTHER INFORMATION CONTACT: Mary Ann Mercer, (202) 606-0004.
SUPPLEMENTARY INFORMATION: On June 24, 1996, OPM issued a proposed
regulation in the Federal Register [61 FR 32401] to inform Federal
Employees Health Benefits (FEHB) Program carriers, Federal agencies,
and the public how it intends to implement those portions of the
Federal Acquisition Streamlining Act of 1994 (FASA), Public Law 103-
355, effective October 13, 1994, affecting the FEHB Program. The
changes proposed also reflect how OPM intends to implement sections
4201 through 4204 of the Federal Acquisition Reform Act of 1996 (FARA),
Public Law 104-106, enacted on February 10, 1996.
OPM received comments from one private citizen and five
organizations: Two FEHBP carriers, a trade association representing
health maintenance organizations (HMOs), preferred provider
organizations (PPOs), and other network plans, an association that
represents FEHB Program fee-for-service carriers, and a contract law
group. We appreciate the observations and suggestions offered and have
taken them into consideration in these regulations.
The majority of the comments were favorable toward OPM's efforts to
[[Page 47570]]
implement the provisions of the Truth in Negotiations Act (TINA) as
amended by FASA to the extent that the regulation brings the FEHBAR
into conformance with the Federal Acquisition Regulation (FAR).
Nevertheless, there were a number of concerns regarding provisions on
the submission of cost or pricing data, as well as those concerning
Similarly Sized Subscriber Groups (SSSGs). These, as well as other
comments, are addressed as follows.
Effective Date of the Regulation
One of the comments concerned a perceived inconsistency in the
proposed effective date and the application of the regulation with
regard to SSSGs. The regulation will be applicable to the rate
instructions issued for the 1998 FEHB contract year. In the opinion of
the commenter, however, it appeared that OPM had already implemented
many of the changes administratively through the rate instructions for
the 1997 contract year. We would like to clarify any misconception that
OPM issues policy material in the FEHBP rate instructions. The rate
instructions contain guidance, clarifying information and examples that
elaborate on and describe how the policy in existing regulations is to
be implemented. The regulations introduce no changes in OPM's policy
with respect to SSSGs. The treatment of multi-year contracts and the
requirement that groups with point of service (POS) plans and separate
lines of business be included for consideration as SSSGs have been the
long standing practice under the SSSG concept.
Intent of FASA/TINA
Two commenters believe OPM has overlooked the intent of FASA to
minimize burdensome requirements, such as the requirement to submit
cost or pricing data, placed on Federal contractors. OPM understands
the commenters' concerns; however, we believe they overlook the fact
that Congress continues to recognize the need for cost or pricing data
where necessary to determine reasonableness of a price. Accordingly,
when the Government purchases a product or service that is not a
commercial item offered to the Government without modification and in
the same form in which it is sold in the commercial marketplace, it is
appropriate under the FAR and TINA to require cost or pricing data to
establish price reasonableness. As we stated in the preamble to the
proposed rule, with the complexities of the FEHB Program carriers'
rating systems, it is inaccurate to say that OPM is buying a commercial
off-the-shelf item or that the product that OPM purchases is purchased
at a market or catalog price. Thus, the FEHB Program community rated
contracts are neither contracts for commercial items, nor are they
catalog or market price contracts as those terms are intended by FASA,
FARA, and the FAR.
One commenter noted that the purchase of insurance and HMO services
is typically governed by State insurance regulators and that OPM, in
obtaining cost or pricing data, is not only acting as a purchasing
agent, but is also performing a regulatory function akin to that of a
State insurance regulator. The commenter believes that the application
of the principles embodied in the proposed regulation to the FEHB
Program contracts is the minimum that OPM should require of contractors
given the substantial responsibilities placed upon OPM to obtain the
best possible terms, conditions, price and value for the Government and
enrollees in the FEHB Program.
Cost or Pricing Data
Prior to the enactment of Public Law 100-517, the Health
Maintenance Organization Amendments of 1988, community rated contracts
resembled market price contracts. Consequently, for lack of a more
precise fit with any other contract type, OPM identified the community
rated contracts as market price contracts when it initially published
regulations to implement the Act. These regulations were effective
January 1, 1990, before OPM had been able to assess the impact of the
1988 amendments.
Historically, a community rate was more analogous to a market price
and services under FEHB Program contracts were more commonly thought of
as commercial items, because the community rate was often a single rate
that an HMO charged all of its groups. This is no longer true today.
The 1988 HMO amendments introduced a new level of complexity into the
community rating process. The 1988 HMO amendments authorized community
rated plans to use a new rating method called Adjusted Community Rating
(ACR). In spite of its name, ACR is actually a form of experience
rating, that is, prospective experience rating.
Determining the reasonableness of the rates under ACR requires cost
or pricing data. Moreover, cost or pricing data is fundamental to the
development of the FEHB Program premiums. OPM has a responsibility
under the FEHB law to ensure that the FEHB Program premiums
``reasonably and equitably reflect the cost of benefits provided'' [5
U.S.C. 8902(i)]. In carrying out this statutory mandate, OPM needs cost
or pricing data to achieve a fair and reasonable premium rate for
Federal enrollees. There are almost 400 plans in the Program, and the
premium is divided, with an average of 28% being paid by enrollees and
72% being paid from Government funds. Thus, both parties have a major
financial interest in the reasonableness of the rates.
Furthermore, we would like to point out that the FEHB Program
premiums, once transmitted to OPM, are placed in a trust and are trust
fund monies which OPM has a statutory mandate to protect. OPM places
the premium monies collected in the U.S. Treasury for payment to the
FEHB Program carriers. The FEHB law authorizes the Secretary of the
Treasury to invest and reinvest the monies, as well as the interest
earned on their investments. Because of the nature of these monies, OPM
has a fiduciary responsibility to ensure a reasonable and equitable
rate for Federal enrollees as well as for the Government. One of the
ways OPM accomplishes this is to require the same discounts for the
FEHB Program that are enjoyed by the SSSGs; and analyzing cost or
pricing data is the only way OPM can achieve accountability. The
practice of requesting the data is widely accepted in the insurance
industry and, although we have requested this data for over 20 years,
no FEHB Program carrier has advised us that it was burdensome.
By these regulations, we are implementing FASA, FARA, and the FAR
in the manner which best enables us to comply with the responsibility
that the FEHB law places on OPM. One has only to trace the FEHBAR
amendments over the years to understand that OPM has been trying, to
the maximum extent it could, to reconcile the Congressional intent
behind the HMO amendments with the FEHB law. OPM has attempted to fit
FEHB Program contracts into existing contract types under the FAR,
which lists contract types that were never entirely appropriate to our
situation. Accordingly, because of the unique nature of the FEHB
Program contracts, we are categorizing them as negotiated benefits
contracts to reflect more accurately their actual nature.
One commenter suggested that OPM require pricing data only, and
that cost analysis is not an aspect of establishing the price of health
benefits coverage with large group purchasers. We disagree. Cost data,
the most fundamental of which is claims data, prescription drug,
hospital, and office visit benefits utilization data, and trend
[[Page 47571]]
data, are essential in evaluating the rate under ACR (experience
rating). The same commenter believes that, traditionally, when OPM has
asked for cost information it has generally been to examine the
derivation of the price for a specific benefit or loading. Prior to the
1988 HMO amendments, this was true. To a certain extent, OPM's rate
review was fairly straightforward before the 1988 HMO amendments
authorized alternative methods of community rating. Before 1981,
community rating was relatively simple, in that a group's rates were
normally based on the same underlying capitation rate (i.e., per member
per month rate). But, even under this early version of community
rating, a group's rates could not properly be thought of as a market
price. This is because, from the enactment of the HMO Act of 1973
onward, the community rating theory has always allowed for various
demographic adjustments that caused each group's rates to be uniquely
related to the characteristics of the group.
In 1981, when the HMO Act of 1973 was amended to allow Federally
qualified plans to use Community Rating by Class (CRC), the situation
became much more complex. Under CRC, the plan could adjust the
community rates by a CRC factor which was derived by partitioning the
group into classes and applying so-called utilization factors, which
predicted differences in the use of HMO services by individuals or
families in each class.
But, in 1988, the 1988 HMO amendments radically altered the nature
of community rating by allowing Federally qualified plans to use
Adjusted Community Rating (ACR). In retrospect, we have come to realize
that no rate based on ACR can possibly be construed to be a market
price. After the legislation was enacted and OPM's 1990 regulations
were published, OPM began to experience difficulties in verifying the
carriers' community rate. We continue to ask for cost and pricing data
for computing the rates under Traditional Community Rating (TCR) and
CRC. And, for ACR, we ask for all of the data developed for both the
FEHB Program and the SSSGs, which includes cost data.
Contrary to the commenter's beliefs, these carriers using ACR do
not derive their rates from a single rate. Rather, these carriers base
their rate directly on the past experience of the Federal group. In no
sense can such a rate be considered a market price. The Act stated
that, under ACR, the rate for a particular group could be based on the
organization's revenue requirements for providing service to the group.
This means that ACR is a form of experience rating and, as such,
requires cost data. Thirty-five percent of the FEHB plans use ACR to
rate the Federal group, and the number of these plans is increasing
each year. Approximately thirty percent of the plans currently in the
FEHB Program use CRC to rate the Federal group.
Two commenters were concerned that proposed FEHBAR 1602.170-5 does
not define cost or pricing data, but simply refers to the rate
instruction package. One of these commenters believes that the list of
cost or pricing data should be identified in regulation because the FAR
does not give agencies authority to set price guidelines outside the
scope of the regulation.
In placing clarifying details in the rate instructions, OPM was
simply conforming to the principles of the Administration's National
Performance Review (NPR). A key element of the NPR is the replacing of
agency rules with policy directives and instructions, where
appropriate. Nevertheless, to assist the carriers in understanding what
OPM considers cost or pricing data, we have decided to cite in the
regulation some examples of the types of data that OPM considers to be
cost or pricing data. Like the examples listed in the FAR, the list is
illustrative and is not exhaustive. Additional data may be requested in
the rate instructions as deemed necessary by OPM for a particular
contract year. Again, this type of detail is merely clarifying
information and does not represent policy change. It conforms to the
definition of cost or pricing data in TINA and is information that OPM
has frequently requested in the past.
One commenter noted that in the Supplementary Information to the
proposed rule OPM included actuarial estimates in its description of
cost or pricing data. The commenter stated that actuarial estimates are
judgmental and not factual and suggested that OPM remove these from
consideration as cost or pricing data. We are aware that FAR 15.801
defines ``cost or pricing data'' as factual and not judgmental, and we
believe that we are in compliance with the definition. OPM uses
actuarial estimates not to question what judgment the carrier used in
its actuarial estimates, but to verify, for example, that if an
actuarial estimate of 10% increase in claims was used for the FEHBP
group, the methodology used to establish that estimate was also used in
setting the SSSGs rates. In other words, OPM is not questioning what
judgment the carrier has applied in its projections, but the facts upon
which its projections are based.
One commenter is concerned that the regulation will authorize OPM
to collect data that are difficult to collect and submit and that are
not directly related to OPM's responsibility to evaluate the
reasonableness of the prices given to the SSSGs. The respondent noted
that the FAR authorizes agencies to obtain ``other than cost or pricing
data,'' which the commenter believes is sufficient to verify prices. We
would like to reiterate that OPM will not ask for different data than
it currently requests in the rate setting process. However, the kind of
data that we ask for will be determined by the plan with regard to how
it chooses to rate its SSSGs. We look only at data directly related to
our responsibility under the FEHB law to evaluate a proposed rate in
order to ensure that the FEHBP rates accurately reflect the cost of
benefits provided. OPM neither requests nor desires information that is
irrelevant to this objective. Further, OPM disagrees with the commenter
that data other than cost or pricing data are sufficient to verify
prices.
SSSGs
One commenter is concerned that the legitimacy of a loading can be
based on non-SSSG rating practices. The commenter believes that this is
inconsistent with the SSSG concept. As stated in the OPM Reconciliation
Guidelines, the OPM audit staff may examine the rates and benefit
loadings of non-SSSG groups. The purpose of such analysis is to make
certain that the Federal group rates are fair in relation to the SSSG
rates. As one example (given in the guidelines), if an SSSG had a
special benefit not included in the Federal group benefit package, OPM
would compare what the plan charged the SSSG with what it charged non-
SSSG groups for the benefit. Only by examining the non-SSSG groups
would we be able to determine if the SSSG had been given a discount to
its overall rates via a discount to the special loading. We do,
however, agree with the commenter that another example given in the
guidelines pertaining to late payment loadings is not a good example to
justify the principle of examining non-SSSG groups. We will remove this
example from future guideline documents.
Another commenter believes that OPM fails to consider the contract
requirement that the FEHB rate be reconciled to the SSSG rates after
the contract period has begun. As part of the reconciliation process,
the contractor must provide information related to the rates offered to
the five groups closest in size to the Federal group. The commenter
believes that requiring cost
[[Page 47572]]
or pricing data for these contracts is entirely inconsistent with the
purpose of the reconciliation process.
For non-SSSGs, OPM simply asks the carriers to list the plans they
did not select as SSSGs. However, OPM may ask the carrier to explain
why it did not select one or more as an SSSG. OPM has stated over the
years that it reserves the right to examine the rate development of
non-SSSG groups. OPM looks at a carrier's other groups only if all the
necessary information is not in the SSSG. For example, verifying that
there is no group closer in size to the Federal group than the plan's
chosen SSSGs could require analysis of non-SSSG groups. OPM will verify
such things as differences in loading and whether the carrier has
hidden a discount in a loading. We want to emphasize that the sole
purpose of such analysis is to make certain that the Federal group's
rates are equivalent to the SSSGs' rates. However, if we find that the
SSSG is not closest in size or if an SSSG had a special benefit (e.g.,
dental benefit) not included in the Federal group benefit package, we
would compare what the carrier charged the SSSG with what it charged
other groups for this benefit. The purpose would be to verify that the
SSSG received no discount. Carriers need not be concerned that an OPM
review of a non-SSSG commercial group makes it a potential SSSG. We
would like to point out, though, that such comparisons with non-SSSGs
could work to the carrier's advantage as well as to its disadvantage if
a non-SSSG was not given a discount.
SSSGs/Regional Rating Areas
One of the commenters noted that a carrier may have to select an
SSSG from an entirely different area within a State even if that group
has no Federal employees in the rating area. This concerned the
commenter since the group rates in one regional rating area may be
significantly different than the rates in another area. The commenter
stated that it is unclear how OPM would adjust the rates of an SSSG in
one area to measure the Federal group in another area and suggests that
OPM limit its SSSG analysis to groups within a single FEHBP rating
area. This type of situation is not new to us. In such cases, we focus
on whether the carrier gave the groups a discount and whether it is
applying the rating method consistently. The rating method or benefit
structure may be entirely different and is, in fact, irrelevant.
SSSGs/Purchasing Alliances
One commenter suggested that OPM either remove the limitation on
the maximum number of employees allowable in a purchasing alliance, or
increase the number to 200, because some States offer voluntary
alliances in which the State may also dictate the rates. In addition,
two commenters believe that no State mandated purchasing alliance
should be treated as an SSSG because the alliances are not voluntary
and are usually a condition of doing business in the State, which
distinguishes them from the carriers' normal lines of business. After
considering the comments, we have adopted the suggestion that all
alliances be excluded from consideration as SSSGs where the State
mandates how the rate is set.
We are also confirming that POS plans whose rate-setting is
mandated by the State may be excluded from consideration as SSSGs.
However, a POS plan whose rate-setting is not State-mandated must be
considered as an SSSG, even though it is primarily experience rated.
Usually the plan uses ACR and should not be excluded, regardless of the
portion of its services provided out of plan. We have had comparable
experience with ACR plans since 1988, and the rate setting for POS
plans with a large percentage of out-of-plan services is no more
difficult to accomplish than ACR. As we have said before, experience
shows that we have to be inclusive in considering plans as SSSGs. OPM
has always recognized that the rating method for the Federal group is
not necessarily the same as its SSSGs.
OPM received a few plan-specific questions about SSSGs, which we
are reluctant to answer without more information. We will answer these
types of questions on an individual basis at the time of the rate
reconciliation.
One commenter believes that the regulations should establish audit
standards that restrict OPM's Inspector General (IG) auditors to
comparing the prices charged to the SSSGs and to reviewing the
information necessary to verify that the SSSGs are appropriate. By
statute, OPM's Inspector General operates independently of OPM, and OPM
is not authorized to regulate to restrict its authority. We would like
to point out, however, that the IG looks only at data directly related
to OPM's responsibility under the FEHB law to evaluate a proposed rate
in order to ensure that the rates accurately reflect the cost of
benefits provided. The kind of data that the auditors would look at
will be determined by the plan with respect to how it chooses to rate
its SSSGs.
SSSGs/Multi-year contracts
One commenter believes OPM should not be allowed to isolate a
specific year in a multi-year contract to determine that a discount
occurred. Our intent is that if a plan's rates are affected by the
length of time the group signs up with the plan, then we simply want to
be able to capture that data. If the rates are affected, then we have
to make our analysis based on all the years that affect the rate.
A commenter asked that OPM confirm its understanding that if the
aggregate revenues on a per member per month (PMPM) basis for the
Federal group are equivalent to or less than the corresponding
aggregate revenues for the SSSG, the carrier will be in compliance with
its community rating requirements with respect to that SSSG. OPM
confirms that under this scenario the carrier would be in compliance
with its community rating requirements.
The same commenter would also like clarification of OPM's policy
with regard to multi-year contracts in which the group has the option
of renewing the agreement in any given year and does not renew. OPM
considers the contracts to be single-year agreements if the group
terminates the contract.
Miscellaneous
We converted FAR clauses 52.229-6, Taxes--Foreign Fixed-Price
Contracts, 52.243-1, Changes--Fixed Price, 52.245-2, Government
Property (Fixed-Price Contracts), 52.249-2, Termination for Convenience
of the Government (Fixed-Price), and 52.249-8, Default (Fixed-Price
Supply and Service) to FEHBAR clauses and have deleted language that
does not apply to negotiated benefits contracts.
We have clarified the cost principle at 1631.205-75(b) pertaining
to selling costs to provide that personnel and related travel costs are
allowable for attendance at Open Season Health Fairs and other similar
activities where carriers give enrollees information about their
choices among health plans. Such events are not limited to those
sponsored by Government agencies, but may be sponsored by other groups
as well.
One comment concerned 1652.215-70(b)(1)(iii), which states that if
the contracting officer determines that a price or cost reduction
should be made, the carrier may not raise as a defense the argument
that the contract was based on an agreement about the total cost of the
contract and there was no agreement about the cost of each item
procured under the contract. The commenter states that community rated
contracts
[[Page 47573]]
are based on price, not cost, analysis and cites FAR 15.803(c), which
provides that price negotiation does not require that agreement be
reached on every element of cost. The commenter believes, therefore,
that individual components of cost should not be subject to revision on
audit. OPM classified its review as price analysis pursuant to the HMO
amendments because it had been working with a simplified form of price
analysis up to that point, although technically even these community
rated contracts included an element of cost. But, after we gained some
experience with ACR (experience rating), we began to look not only at
special benefits loadings, but also at elements of the basic community
rate, such as demographic factors. Our approach has been consistent
with the FAR definition of ``price,'' which states that price is cost
plus any fee or profit applicable to the contract type. For the reasons
stated earlier, OPM is no longer classifying FEHB contracts as market
price, and OPM will collect both cost and pricing data. The new
regulations reflect this fact by clarifying that community rated
contracts are based on a combination of cost and price analysis. FEHBAR
1652.216-70(b)(1)(iii) is taken verbatim from FAR 52.215-22(c)(1)(iii)
and is appropriate when both cost and pricing data are required.
The same commenter took exception to the requirement in 1652.215-
70(b)(2)(ii)(A), which restricts a carrier's right to claim an offset
to an audit finding when the understated data was known by the carrier
to be understated at the time the certificate of current cost or
pricing data was signed. The commenter believes this provision is
inconsistent with FEHBAR 1652.215-70(b)(2)(i)(B) which allows a carrier
to revise a price following an audit finding if it proves that the cost
or pricing data were available before the date of agreement on the
price of the contract and that the data were not submitted before such
date. We would like to point out that these provisions are not
inconsistent with the FAR. In fact, they are repeated verbatim from the
FAR. Section 1652.215-70(b)(2)(ii)(A) prohibits an offset if the
carrier deliberately understated the data at the time the certificate
of current cost or pricing data was signed. OPM would not allow an
offset under these circumstances. In FEHBAR 1652.215-70(b)(2)(i)(B),
however, the carrier is allowed to prove that the data were not
submitted before the date of agreement on the price because of a
mistake on its part. OPM would allow the offset if the proof offered by
the carrier was clear and convincing.
One commenter suggested that OPM increase the threshold for
preapproval of subcontracts to $200,000 to account for inflation since
the FEHBAR was first published in 1987. OPM has decided not to increase
the threshold at this time, but will consider doing so in a future
amendment to the FEHBAR.
We are withdrawing our proposal to insert FAR 52.222-25,
Affirmative Action Compliance, in the Matrix because the clause is a
preaward clause that is intended to be inserted in solicitations. FEHB
Program contracts, by law, are exempted from competitive bidding
requirements, and OPM uses alternative methods of inviting health
benefits carriers to apply for participation in the FEHB Program.
We are withdrawing our proposal to add a requirement in 1652.222-
70, Notice of Significant Events, that carriers should inform OPM at
the time of a novation or change of name, rather than after the
novation or change of name occurs. OPM has determined that FEHBAR
1642.1204 and 1642.1205 sufficiently address OPM's concerns that
carriers are required to notify OPM of a novation and/or a change of
name in a timely manner.
We have made a technical correction to 1652.232-71(c) that was
inadvertently omitted from OPM's interim regulation of April 20, 1992,
and published as a final rule on November 16, 1992 [57 FR 53981]. That
is, we have removed from the regulation the reference to the ability of
underwriters to make drawdowns from carriers' letter of credit (LOC)
accounts. OPM guidelines allow a carrier to delegate its authority to
make drawdowns from its LOC account to the underwriter of its plan.
We have also included in the final regulations minor technical and
editorial changes and minor changes to the definitions of ``Carrier''
and ``Health benefits plan'' to more closely align them with the
definitions contained in the National Association of Insurance
Commissioners (NAIC) guidelines.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities because all of the
small plan FEHB Program contracts fall below the threshold for
submitting cost or pricing data.
List of Subjects in 48 CFR Parts 1602, 1603, 1604, 1615, 1616,
1629, 1631, 1643, 1644, 1645, 1649, 1652, and 1653
Administrative practice and procedure, Government employees, Health
facilities, Health insurance, Health professions, Hostages, Iraq,
Kuwait, Lebanon, Reporting and recordkeeping requirements, Retirement.
Office of Personnel Management.
James B. King,
Director.
Accordingly, OPM is amending Chapter 16 of Title 48, Code of
Federal Regulations, as follows:
CHAPTER 16--OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH
BENEFITS ACQUISITION REGULATION
1. The authority citation for 48 CFR Parts 1602, 1603, 1604, 1615,
1616, 1631, 1644, 1649, 1652, and 1653 continues to read as follows:
Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.
PART 1602--DEFINITIONS OF WORDS AND TERMS
2. Section 1602.170-1 is revised to read as follows:
1602.170-1 Carrier.
Carrier means a voluntary association, corporation, partnership, or
other nongovernmental organization which is lawfully engaged in
providing, delivering, paying for, or reimbursing the cost of health
care services under group insurance policies or contracts, medical or
hospital service agreements, membership or subscription contracts,
including a health maintenance organization, a nonprofit hospital and
health service corporation, or any other entity providing a plan of
health insurance, health benefits or health services, in consideration
of premiums or other periodic charges payable to the carrier.
3. In Sec. 1602.170-2, paragraph (a) is revised to read as follows:
1602.170-2 Community rate.
(a) Community rate means a rate of payment based on a per member
per month capitation rate or its equivalent that applies to a
combination of the subscriber groups for a comprehensive medical plan
carrier. References in this subchapter to ``a combination of cost and
price analysis'' relating to the applicability of policy and contract
clauses refer to comprehensive medical plan carriers using community
rates.
* * * * *
[[Page 47574]]
4. Sections 1602.170-10 through 1602.170-12 are redesignated as
Secs. 1602.170-12 through 1602.170-14 respectively, Secs. 1602.170-5
through 1602.170-9 are redesignated as Secs. 1602.170-6 through
1602.170-10, new Secs. 1602.170-5 and 1602.170-11 are added, and newly
redesignated Secs. 1602.170-9 and 1602.170-13 are revised to read as
follows:
1602.170-5 Cost or pricing data.
(a) Experience rated carriers. Cost or pricing data for experience
rated carriers includes information such as claims data; actual or
negotiated benefits payments made to providers of medical services for
the provision of health care such as capitation not adjusted for
specific groups, per diems, and Diagnostic Related Group (DRG)
payments; cost data; utilization data; and administrative expenses and
retentions.
(b) Community rated carriers. Cost or pricing data for community
rated carriers is the specialized rating data used by carriers in
computing a rate that is appropriate for the Federal group and the
similarly sized subscriber groups (SSSGs). Such data include, but are
not limited to, capitation rates; prescription drug, hospital, and
office visit benefits utilization data; trend data; actuarial data;
rating methodologies for other groups; standardized presentation of the
carrier's rating method (age, sex, etc.) showing that the factor
predicts utilization; tiered rates information; ``step-up'' factors
information; demographics such as family size; special benefit loading
capitations; and adjustment factors for capitation.
* * * * *
1602.170-9 Health benefits plan.
Health benefits plan means a group insurance policy, contract,
medical or hospital service agreement, membership or subscription
contract, or similar group arrangements provided by a carrier for the
purpose of providing, arranging for, delivering, paying for, or
reimbursing any of the costs of health care services.
* * * * *
1602.170-11 Negotiated benefits contracts.
Negotiated benefits contracts are FEHBP contracts in which benefits
provided and subscription income are based on either community rating
or experience rating.
* * * * *
1602.170-13 Similarly sized subscriber groups.
(a) Similarly sized subscriber groups (SSSGs) are a comprehensive
medical plan carrier's two employer groups that:
(1) As of the date specified by OPM in the rate instructions, have
a subscriber enrollment closest to the FEHBP subscriber enrollment;
and,
(2) Use any rating method other than retrospective experience
rating; and,
(3) Meet the criteria specified in the rate instructions issued by
OPM.
(b) Any group with which an FEHB carrier enters into an agreement
to provide health care services is a potential SSSG (including separate
lines of business, government entities, groups that have multi-year
contracts, and groups having point-of-service products).
(c) Exceptions to the general rule stated in paragraph (b) of this
section are (and the following groups must be excluded from SSSG
consideration):
(1) Groups the carrier rates by the method of retrospective
experience rating;
(2) Groups consisting of the carrier's own employees;
(3) Medicaid groups, Medicare groups, and groups that have only a
stand alone benefit (such as dental only);
(4) A purchasing alliance whose rate-setting is mandated by the
State or local government.
(d) OPM shall determine the FEHBP rate by selecting the lower of
the two rates derived by using rating methods consistent with those
used to derive the SSSG rates.
PART 1603--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
Subpart 1603.70 [Amended]
5. In subpart 1603.70, sections 1603.701, 1603.702, and 1603.703
are redesignated as sections 1603.7001, 1603.7002, and 1603.7003
respectively.
PART 1604--ADMINISTRATIVE MATTERS
1604.705 [Amended]
6. In subpart 1604.7, section 1604.705 is amended by removing the
words ``Audit--Negotiation,'' and adding in its place ``Audit &
Records--Negotiation.''
PART 1615--CONTRACTING BY NEGOTIATION
7. Section 1615.802 is revised to read as follows:
1615.802 Policy.
Pricing of FEHB contracts is governed by 5 U.S.C. 8902(i), 5 U.S.C.
8906, and other applicable law. FAR subpart 15.8 shall be implemented
by applying the policies and procedures--to the extent practicable--as
follows:
(a) For both experience rated and community rated contracts for
which the FEHBP premiums for the contract term will be less than
$500,000, OPM shall not require the carrier to provide cost or pricing
data in the rate proposal for the following contract term.
(b) Cost analysis shall be used for contracts where premiums and
subscription income are determined on the basis of experience rating.
(c)(1) A combination of cost and price analysis shall be used for
contracts where premiums and subscription income are based on community
rates. For contracts for which the FEHBP premiums for the contract term
will be less than $500,000, OPM shall not require the carrier to
provide cost or pricing data. The carrier must submit only a rate
proposal and abbreviated utilization data for the applicable contract
year. OPM will evaluate the proposed rates by performing a basic
reasonableness test on the information submitted. Rates failing this
test will be subject to further review.
(2) For contracts with fewer than 1,500 enrollee contracts for
which the FEHBP premiums for the contract term will be $500,000 or
more, OPM shall require the carrier to submit its rate proposal,
utilization data, and the certificate of accurate cost or pricing data
required in 1615.804-70. In addition, OPM shall require the carrier to
complete the proposed rates form containing cost and pricing data, and
the Community Rate Questionnaire, but shall not require the carrier to
send these documents to OPM. The carrier shall keep the documents on
file for periodic auditor and actuarial review in accordance with
1652.204-70. OPM shall perform a basic reasonableness test on the data
submitted. Rates that do not pass this test shall be subject to further
OPM review.
(3) For contracts with 1,500 or more enrollee contracts for which
the FEHBP premiums for the contract term will be at least $500,000, OPM
shall require the carrier to provide the data and methodology used to
determine the FEHBP rates. OPM shall also require the data and
methodology used to determine the rates for the carrier's similarly
sized subscriber groups. The carrier shall provide cost or pricing data
required by OPM in its rate instructions for the applicable contract
period. OPM shall evaluate the data to ensure that the
[[Page 47575]]
rate is reasonable and consistent with the requirements in this
chapter. If necessary, OPM may require the carrier to provide
additional documentation.
(4) Contracts shall be subject to a downward price adjustment if
OPM determines that the Federal group was charged more than it would
have been charged using a methodology consistent with that used for the
SSSGs. Such adjustments shall be based on the lower of the two rates
determined by using the methodology (including discounts) the Carrier
used for the two SSSGs.
(5) FEHBP community rated carriers shall comply with SSSG criteria
provided by OPM in the rate instructions for the applicable contract
period.
(d) The application of FAR 15.802(b)(2) should not be construed to
prohibit the consideration of preceding year surpluses or deficits in
carrier-held reserves in the rate adjustments for subsequent year
renewals of contracts based, in whole or in part, on cost analysis.
8. Section 1615.804-70 is revised to read as follows:
1615.804-70 Certificate of cost or pricing data for community rated
carriers.
The contracting officer shall require a carrier with a contract
meeting the requirements in 1615.802(c)(2) or 1615.802(c)(3) to execute
the Certificate of Accurate Cost or Pricing Data contained in this
section. A carrier with a contract meeting the requirements in
1615.802(c)(2) shall complete the Certificate and keep it on file at
the carrier's place of business in accordance with 1652.204-70. A
carrier with a contract meeting the requirements in 1615.802(c)(3)
shall submit the Certificate to OPM along with its rate reconciliation,
which is submitted during the first quarter of the applicable contract
year.
Certificate of Accurate Cost or Pricing Data for Community Rated
Carriers
This is to certify that, to the best of my knowledge and belief:
(1) The cost or pricing data submitted (or, if not submitted,
maintained and identified by the carrier as supporting
documentation) to the Contracting Officer or the Contracting
Officer's representative or designee, in support of the __________*
FEHBP rates were developed in accordance with the requirements of 48
CFR Chapter 16 and the FEHBP contract and are accurate, complete,
and current as of the date this certificate is executed; and (2) the
methodology used to determine the FEHBP rates is consistent with the
methodology used to determine the rates for the carrier's Similarly
Sized Subscriber Groups.
Firm:------------------------------------------------------------------
Name:------------------------------------------------------------------
Signature:-------------------------------------------------------------
Date of Execution:-----------------------------------------------------
*Insert the year for which the rates apply. Normally, this will
be the year for which the rates are being reconciled.
(End of Certificate)
1615.804-7 [Removed and reserved]
9. Section 1615.804-71 is removed and reserved.
10. Section 1615.804-72 is revised to read as follows:
1615.804-72 Rate reduction for defective pricing or defective cost or
pricing data.
The clause set forth in section 1652.215-70 shall be inserted in
FEHBP contracts for $500,000 or more that are based on a combination of
cost and price analysis (community rated).
11. Paragraph (a) of section 1615.805-70 is revised to read as
follows:
1615.805-70 Carrier investment of FEHB funds.
(a) This paragraph does not apply to contracts based on a
combination of cost and price analysis (community rated).
* * * * *
PART 1616--TYPES OF CONTRACTS
12. Section 1616.102, is revised to read as follows:
1616.102 Policies.
All FEHBP contracts shall be negotiated benefits contracts.
Subpart 1616.2 [Removed]
13. Subpart 1616.2 is removed and subpart 1616.70 is added to read
as follows:
Subpart 1616.70--Negotiated Benefits Contracts
1616.7001 Clause--contracts based on a combination of cost and price
analysis (community rated).
The clause at section 1652.216-70 shall be inserted in all FEHBP
contracts based on a combination of cost and price analysis (community
rated).
1616.7002 Clause--contracts based on cost analysis (experience rated).
The clause at section 1652.216-71 shall be inserted in all FEHBP
contracts based on cost analysis (experience rated).
SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
14. In Subchapter E, part 1629 is added to read as follows:
PART 1629--TAXES
Subpart 1629.4--Contract Clauses
Sec.
1629.402 Foreign contracts.
Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.
Subpart 1629.4--Contract Clauses
1629.402 Foreign contracts.
The clause set forth in section 1652.229-70 shall be inserted in
all FEHBP contracts performed outside the United States, its
possessions, and Puerto Rico.
PART 1631--CONTRACT COST PRINCIPLES AND PROCEDURES
15. In subpart 1631.2, section 1631.205-75, paragraph (b), is
revised to read as follows:
1631.205-75 Selling costs.
* * * * *
(b) Selling costs are allowable costs to FEHBP contracts to the
extent that they are necessary for conducting annual contract
negotiations with the Government and for liaison activities necessary
for ongoing contract administration. Personnel and related travel costs
are allowable for attendance at Open Season Health fairs and other
similar activities at which carriers give enrollees information about
their choices among health plans (but see FAR 31.205-1 ``Public
relations and advertising costs'', and The Federal Employees Health
Benefits Handbook for Personnel and Payroll Offices, Subchapter S2-3(f)
``Controlling contacts between employees and carriers'').
SUBCHAPTER G--CONTRACT MANAGEMENT
16. In Subchapter G, part 1643 is added to read as follows:
PART 1643--CONTRACT MODIFICATIONS
Subpart 1643.2--Changes
Sec.
1643.205-70 Contract clause.
Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.
Subpart 1643.2--Changes
1643.205-70 Contract clause.
The clause set forth in section 1652.243-70 shall be inserted in
all FEHB Program contracts.
PART 1644--SUBCONTRACTING POLICIES AND PROCEDURES
17. In Subpart 1644.1, section 1644.170 is revised to read as
follows:
1644.170 Policy for FEHBP subcontracting consent.
For all experience rated FEHBP contracts, advance approval shall be
[[Page 47576]]
required on subcontracts or modifications to subcontracts when the
amount charged against the FEHBP contract exceeds $100,000 and is at
least 25 percent of the total cost of the subcontract.
18. In Subpart 1644.2, section 1644.270 is revised to read as
follows:
1644.270 FEHBP contract clause.
The clause set forth at section 1652.244-70 shall be inserted in
all experience rated FEHBP contracts.
19. Part 1645 is added to read as follows:
PART 1645--GOVERNMENT PROPERTY
Subpart 1645.3--Providing Equipment
Sec.
1645.303-70 Contract clause.
Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.
Subpart 1645.3--Providing Equipment
1645.303-70 Contract clause.
The clause set forth in section 1652.245-70 shall be inserted in
all FEHB Program contracts.
PART 1649--TERMINATION OF CONTRACTS
20. In subpart 1649.1, sections 1649.101-71 and 1649.101-72 are
added to read as follows:
1649.101-71 FEHBP termination for convenience clause.
The clause set forth in 1652.249-71 shall be inserted in all FEHBP
contracts.
1649.101-72 FEHBP termination for default clause.
The clause set forth in 1652.249-72 shall be inserted in all FEHBP
contracts.
SUBCHAPTER H--CLAUSES AND FORMS
PART 1652--CONTRACT CLAUSES
21. In part 1652, section 1652.000 is revised to read as follows:
1652.000 Applicable clauses.
The clauses of FAR subpart 52.2 shall be applicable to FEHBP
contracts as specified in the FEHBAR Clause Matrix in subpart 1652.3.
Section and Clause Title
52.202-1 Definitions.
52.203-3 Gratuities.
52.203-5 Covenant Against Contingent Fees.
52.203-7 Anti-Kickback Procedures.
52.203-12 Limitation on Payments to Influence Certain Federal
Transactions.
52.209-6 Protecting the Government's Interest When Subcontracting
With Contractors Debarred, Suspended, or Proposed for Debarment.
52.215-2 Audit and Records--Negotiation.
52.215-22 Price Reduction for Defective Cost or Pricing Data.
52.215-24 Subcontractor Cost or Pricing Data.
52.215-27 Termination of Defined Benefit Pension Plans.
52.215-30 Facilities Capital Cost of Money.
52.215-31 Waiver of Facilities Capital Cost of Money.
52.215-39 Reversion or Adjustment of Plans for Postretirement
Benefits Other Than Pensions (PRB).
52.219-8 Utilization of Small, Small Disadvantaged and Women-Owned
Small Business Concerns.
52.222-1 Notice to the Government of Labor Disputes.
52.222-3 Convict Labor.
52.222-4 Contract Work Hours and Safety Standards Act--Overtime
Compensation--General.
52.222-21 Certification of Nonsegregated Facilities.
52.222-26 Equal Opportunity.
52.222-28 Equal Opportunity Preaward Clearance of Subcontracts.
52.222-29 Notification of Visa Denial.
52.222-35 Affirmative Action for Special Disabled and Vietnam Era
Veterans.
52.222-36 Affirmative Action for Handicapped Workers.
52.222-37 Employment Reports on Special Disabled Veterans and
Veterans of the Vietnam Era.
52.223-2 Clean Air and Water.
52.223-6 Drug-Free Workplace.
52.227-1 Authorization and Consent.
52.227-2 Notice and Assistance Regarding Patent and Copyright
Infringement.
52.229-3 Federal, State,and Local Taxes.
52.229-4 Federal, State, and Local Taxes (Noncompetitive Contract).
52.229-5 Taxes--Contracts Performed in U.S. Possessions or Puerto
Rico.
52.230-2 Cost Accounting Standards.
52.230-3 Disclosure and Consistency of Cost Accounting Practices.
52.230-5 Administration of Cost Accounting Standards.
52.232-8 Discounts for Prompt Payment.
52.232-17 Interest.
52.232-23 Assignment of Claims.
52.232-33 Mandatory Information For Electronic Funds Transfer
Payment.
52.233-1 Disputes.
52.242-1 Notice of Intent to Disallow Costs.
52.242-3 Penalties for Unallowable Costs.
52.242-13 Bankruptcy.
52.244-5 Competition in Subcontracting.
52.244-6 Subcontracts for Commercial Items and Commercial
Components.
52.246-25 Limitation of Liability--Services.
52.247-63 Preference for U.S.-Flag Air Carriers.
52.251-1 Government Supply Sources.
52.232-2 Clauses Incorporated by Reference.
52.252-4 Alterations in Contract.
52.252-6 Authorized Deviations in Clauses.
22. In subpart 1652.2, section 1652.203-70 is amended by removing
the reference ``1603.703'' and adding in its place ``1603.7003,''
sections 1652.204-70 and 1652.215-70 are revised, section 1652.204-72
is amended by adding a date in the clause title.
1652.204-70 Contractor records retention.
As prescribed in 1604.705, the following clause shall be inserted
in all FEHBP contracts.
Contractor Records Retention (Jan 1998)
Notwithstanding the provisions of section 5.7 (FAR 52.215-2(f))
``Audit and Records-Negotiation,'' the Carrier shall retain and make
available all records applicable to a contract term that support the
annual statement of operations and, for contracts that exceed the
threshold at FAR 15.804-2(a)(1), the rate submission for that
contract term for a period of 5 years after the end of the contract
term to which the records relate, except that enrollee and/or
patient claim records shall be maintained for 3 years after the end
of the contract term to which the claim records relate.
(End of Clause)
* * * * *
Sec. 1652.204-72 Filing Health Benefit Claims/Court of Disputed Claims
* * * * *
Filing Health Benefit Claims/Court Review of Disputed Claims (Mar 1995)
* * * * *
1652.215-70 Rate Reduction for Defective Pricing or Defective Cost or
Pricing Data.
As prescribed in 1615.804-72, the following clause shall be
inserted in FEHBP contracts exceeding the threshold at FAR 15.804-
2(a)(1) that are based on a combination of cost and price analysis
(community rated):
Rate Reduction for Defective Pricing or Defective Cost or Pricing Data
(Jan 1998)
(a) If any rate established in connection with this contract was
increased because (1) the Carrier submitted, or kept in its files in
support of the FEHBP rate, cost or pricing data that were not
complete, accurate, or current as certified in the Certificate of
Accurate Cost or Pricing Data (FEHBAR 1615.804-70); (2) the Carrier
submitted, or kept in its files in support of the FEHBP rate, cost
or pricing data that were not accurate as represented in the rate
proposal documents; (3) the Carrier developed FEHBP rates with a
rating methodology and structure inconsistent with that used to
develop rates for similarly sized subscriber groups (see FEHBAR
1602.170-13) as certified in the Certificate of Accurate Cost or
Pricing Data for Community Rated Carriers; or (4) the Carrier
submitted or, or kept in its files in support of the FEHBP rate,
data or information of any description that were not complete,
accurate, and current--then, the rate shall be reduced in the amount
by which the price was increased because of the defective data or
information.
(b)(1) If the Contracting Officer determines under paragraph (a)
of this clause that a price
[[Page 47577]]
or cost reduction should be made, the Carrier agrees not to raise
the following matters as a defense:
(i) The Carrier was a sole source supplier or otherwise was in a
superior bargaining position and thus the price of the contract
would not have been modified even if accurate, complete, and current
cost or pricing data had been submitted or maintained and
identified.
(ii) The Contracting Officer should have known that the cost or
pricing data in issue were defective even though the Carrier took no
affirmative action to bring the character of the data to the
attention of the Contracting Officer.
(iii) The contract was based on an agreement about the total
cost of the contract and there was no agreement about the cost of
each item procured under the contract.
(iv) The Carrier did not submit or keep in its files a
Certificate of Current Cost or Pricing Data.
(2)(i) Except as prohibited by subdivision (b)(2)(ii) of this
clause, an offset in an amount determined appropriate by the
Contracting Officer based upon the facts shall be allowed against
the amount of a contract price reduction if--
(A) The Carrier certifies to the Contracting Officer that, to
the best of the Carrier's knowledge and belief, the Carrier is
entitled to the offset in the amount requested; and
(B) The Carrier proves that the cost or pricing data were
available before the date of agreement on the price of the contract
(or price of the modification) and that the data were not submitted
before such date.
(ii) An offset shall not be allowed if--
(A) The understated data was known by the Carrier to be
understated when the Certificate of Current Cost or Pricing Data was
signed; or
(B) The Government proves that the facts demonstrate that the
contract price would not have increased in the amount to be offset
even if the available data had been submitted before the date of
agreement on price.
(c) When the Contracting Officer determines that the rates shall
be reduced and the Government is thereby entitled to a refund, the
Carrier shall be liable to and shall pay the FEHB Fund at the time
the overpayment is repaid--
(1) Simple interest on the amount of the overpayment from the
date the overpayment was paid from the FEHB Fund to the Carrier
until the date the overcharge is liquidated. In calculating the
amount of interest due, the quarterly rate determinations by the
Secretary of the Treasury under the authority of 26 U.S.C.
6621(a)(2) applicable to the periods the overcharge was retained by
the Carrier shall be used; and,
(2) A penalty equal to the amount of overpayment, if the Carrier
knowingly submitted cost or pricing data which was incomplete,
inaccurate, or noncurrent.
(End of Clause)
23. Section 1652.215-71 is amended by removing ``(Jan 1991)'' from
the title Investment Income and adding in its place ``(Jan 1998)'' and
by revising paragraph (f) to read as follows:
1652.215-71 Investment Income.
* * * * *
(f) The Carrier shall credit the Special Reserve for income due
in accordance with this clause. All lost investment income payable
shall bear simple interest at the quarterly rate determined by the
Secretary of the Treasury under the authority of 26 U.S.C.
6621(a)(2) applicable to the periods in which the amount becomes
due, as provided in paragraphs (d) and (e) of this clause.
* * * * *
24. Section 1652.216-70 is revised to read as follows:
1652.216-70 Accounting and price adjustment.
As prescribed in section 1616.7001, the following clause shall be
inserted in all FEHBP contracts based on a combination of cost and
price analysis (community rated).
Accounting and Price Adjustment (JAN 1998)
(a) Annual Accounting Statement. The Carrier, not later than 90
days after the end of each contract period, shall furnish to OPM for
that contract period an accounting of its operations under the
contract. The accounting shall be in the form prescribed by OPM.
(b) Adjustment. (1) This contract is community rated as defined
in FEHBAR 1602.170-2.
(2) The subscription rates agreed to in this contract shall be
equivalent to the subscription rates given to the carrier's
similarly sized subscriber groups (SSSGs) as defined in FEHBAR
1602.170-13.
(3) If, at the time of the rate reconciliation, the subscription
rates are found to be lower than the equivalent rates for the lower
of the two SSSGs, the carrier may include an adjustment to the
Federal group's rates for the next contract period.
(4) If, at the time of the rate reconciliation, the subscription
rates are found to be higher than the equivalent rates for the lower
of the two SSSGs, the Carrier shall reimburse the Fund, for example,
by reducing the FEHB rates for the next contract term to reflect the
difference between the estimated rates and the rates which are
derived using the methodology of the lower rated SSSG.
(5) No upward adjustment in the rate established for this
contract will be allowed or considered by the Government or will be
made by the Carrier in this or in any other contract period on the
basis of actual costs incurred, actual benefits provided, or actual
size or composition of the FEHBP group during this contract period.
(6) In the event this contract is not renewed, neither the
Government nor the Carrier shall be entitled to any adjustment or
claim for the difference between the subscription rates prior to
rate reconciliation and the actual subscription rates.
(End of Clause)
25. In section 1652.216-71, the introductory sentence is revised to
read as follows:
1652.216-71 Accounting and Allowable Cost.
As prescribed in section 1616.7002, the following clause shall be
inserted in all FEHBP contracts based on cost analysis (experience
rated).
* * * * *
26. Section 1652.229-70 is added to read as follows:
1652.229-70 Taxes--Foreign Negotiated benefits contracts.
As prescribed in section 1629.402, the following clause shall be
inserted in all FEHBP contracts performed outside the United States,
its possessions, and Puerto Rico:
Taxes--Foreign Negotiated Benefits Contracts (Jan 1998)
(a) To the extent that this contract provides for performing
services outside the United States, its possessions, and Puerto
Rico, this clause applies in lieu of any Federal, State, and local
taxes clause of the contract.
(b) ``Contract date,'' as used in this clause, means the
effective date of this contract or modification.
``Country concerned,'' as used in this clause, means any
country, other than the United States, its possessions, and Puerto
Rico, in which expenditures under this contract are made.
``Tax'' and ``taxes,'' as used in this clause, include fees and
charges for doing business that are levied by the government of the
country concerned or by its political subdivisions.
``All applicable taxes and duties,'' as used in this clause,
means all taxes and duties, in effect on the contract date, that the
taxing authority is imposing and collecting on the transactions
covered by this contract, pursuant to written ruling or regulation
in effect on the contract date.
``After-imposed tax,'' as used in this clause, means any new or
increased tax or duty, or tax that was exempted or excluded on the
contract date but whose exemption was later revoked or reduced
during the contract period, other than excepted tax, on the
transactions covered by this contract that the Carrier is required
to pay or bear as the result of legislative, judicial, or
administrative action taking effect after the contract date.
``After-relieved tax,'' as used in this clause, means any amount
of tax or duty, other than an excepted tax, that would otherwise
have been payable on the transactions covered by this contract, but
which the Carrier is not required to pay or bear, or for which the
Carrier obtains a refund, as the result of legislative, judicial, or
administrative action taking effect after the contract date.
``Excepted tax,'' as used in this clause, means social security
or other employment taxes, net income and franchise taxes, excess
profits taxes, capital stock taxes, transportation taxes,
unemployment compensation taxes, and property taxes. ``Excepted
tax'' does not include gross income taxes levied on or measured by
sales or receipts from sales covered by this contract, or any tax
assessed on the Carrier's possession of, interest in, or use of
property, title to which is in the U.S. Government.
[[Page 47578]]
(c) Unless otherwise provided in this contract, the contract
price includes all applicable taxes and duties, except taxes and
duties that the Government of the United States and the government
of the country concerned have agreed shall not be applicable to
expenditures in such country by or on behalf of the United States.
(d) The contract price shall be increased by the amount of any
after-imposed tax or of any tax or duty specifically excluded from
the contract price by a provision of this contract that the Carrier
is required to pay or bear, including any interest or penalty, if
the Carrier states in writing that the contract price does not
include any contingency for such tax and if liability for such tax,
interest, or penalty was not incurred through the Carrier's fault,
negligence, or failure to follow instructions of the Contracting
Officer or to comply with the provisions of paragraph (i) below.
(e) The contract price shall be decreased by the amount of any
after-relieved tax, including any interest or penalty. The
Government of the United States shall be entitled to interest
received by the Carrier incident to a refund of taxes to the extent
that such interest was earned after the Carrier was paid by the
Government of the United States for such taxes. The Government of
the United States shall be entitled to repayment of any penalty
refunded to the Carrier to the extent that the penalty was paid by
the Government.
(f) The contract price shall be decreased by the amount of any
tax or duty, other than an excepted tax, that was included in the
contract and that the Carrier is required to pay or bear, or does
not obtain a refund of, through the Carrier's fault, negligence, or
failure to follow instructions of the Contracting Officer or to
comply with the provisions of paragraph (i) below.
(g) No adjustment shall be made in the contract price under this
clause unless the amount of the adjustment exceeds $250.
(h) If the Carrier obtains a reduction in tax liability under
the United States Internal Revenue Code (Title 26, U.S. Code)
because of the payment of any tax or duty that either was included
in the contract price or was the basis of an increase in the
contract price, the amount of the reduction shall be paid or
credited to the Government of the United States as the Contracting
Officer directs.
(i) The Carrier shall take all reasonable action to obtain
exemption from or refund of any taxes or duties, including interest
or penalty, from which the United States Government, the Carrier,
any subcontractor, or the transactions covered by this contract are
exempt under the laws of the country concerned or its political
subdivisions or which the governments of the United States and of
the country concerned have agreed shall not be applicable to
expenditures in such country by or on behalf of the United States.
(j) The Carrier shall promptly notify the Contracting Officer of
all matters relating to taxes or duties that reasonably may be
expected to result in either an increase or decrease in the contract
price and shall take appropriate action as the Contracting Officer
directs. The contract price shall be equitably adjusted to cover the
costs of action taken by the Carrier at the direction of the
Contracting Officer, including any interest, penalty, and reasonable
attorneys' fees.
(End of clause)
27. Section 1652.232-70 is amended by adding a date in the clause
title to read as follows:
1652.232-70 Payments--community rated contracts.
* * * * *
Payments (Jan 1989)
* * * * *
28. In section 1652.232-71, paragraph (c) is amended by removing
``and/or underwriter'' and the clause title is amended by adding a date
to read as follows:
1652.232-71 Payments--experience rated contracts.
* * * * *
Payments (May 1992)
* * * * *
29. Section 1652.243-70 is added to read as follows:
1652.243-70 Changes--Negotiated benefits contracts.
As prescribed in section 1643.205-70, the following clause shall be
inserted in all FEHBP contracts.
Changes--Negotiated Benefits Contracts (Jan 1998)
(a) The Contracting Officer may at any time, by written order,
and without notice to the sureties, if any, make changes within the
general scope of this contract in any one or more of the following:
(1) Description of services to be performed.
(2) Time of performance (i.e., hours of the day, days of the
week, etc.).
(3) Place of performance of the services.
(b) If any such change causes an increase or decrease in the
cost of, or the time required for, performance of any part of the
work under this contract, whether or not changed by the order, the
Contracting Officer shall make an equitable adjustment in the
contract price, the delivery schedule, or both, and shall modify the
contract.
(c) The Carrier must assert its right to an adjustment under
this clause within 30 days from the date of receipt of the written
order. However, if the Contracting Officer decides that the facts
justify it, the Contracting Officer may receive and act upon a
proposal submitted before final payment of the contract.
(d) Failure to agree to any adjustment shall be a dispute under
the Disputes clause. However, nothing in this clause shall excuse
the Carrier from proceeding with the contract as changed.
(End of clause)
30. Section 1652.244-70 is amended by revising the introductory
paragraph, clause date, and paragraph (a) of the clause to read as
follows:
1652.244-70 Subcontracts.
As prescribed by 1644.270, the following clause shall be inserted
in all FEHBP contracts based on cost analysis (experience rated):
Subcontracts (Jan 1998)
(a) The Carrier shall notify the Contracting Officer reasonably
in advance of entering into any subcontract, or any subcontract
modification, or as otherwise specified by this contract, if both
the amount of the subcontract or modification charged to the FEHB
Program exceeds $100,000 and is at least 25 percent of the total
cost of the subcontract.
* * * * *
31. Section 1652.245-70 is added to read as follows:
1652.245-70 Government property (negotiated benefits contracts).
As prescribed in section 1645.303-70, the following clause shall be
inserted in all FEHBP contracts.
Government Property (Negotiated Benefits Contracts) (Jan 1998)
(a) Government-furnished property. (1) The Government shall
deliver to the Carrier, for use in connection with and under the
terms of this contract, the Government-furnished property described
in this contract together with any related data and information that
the Carrier may request and is reasonably required for the intended
use of the property (hereinafter referred to as ``Government-
furnished property'').
(2) The delivery or performance dates for this contract are
based upon the expectation that Government-furnished property
suitable for use (except for property furnished ``as-is'') will be
delivered to the Carrier at the times stated in this contract or, if
not so stated, in sufficient time to enable the Carrier to meet the
contract's performance dates.
(3) If Government-furnished property is received by the Carrier
in a condition not suitable for the intended use, the Carrier shall,
upon receipt of it, notify the Contracting Officer, detailing the
facts, and, as directed by the Contracting Officer and at Government
expense, either repair, modify, return, or otherwise dispose of the
property. After completing the directed action and upon written
request of the Carrier, the Contracting Officer shall make an
equitable adjustment as provided in paragraph (h) of this clause.
(b) Changes in Government-furnished property. (1) The
Contracting Officer may, by written notice, (i) decrease the
Government-furnished property provided or to be provided under this
contract, or (ii) substitute other Government-furnished property for
the property to be provided by the Government, or to be acquired by
the Carrier for the Government, under this contract. The Carrier
shall promptly take such action as the Contracting Officer may
direct regarding the removal, shipment, or disposal of the property
covered by such notice.
(2) Upon the Carrier's written request, the Contracting Officer
shall make an equitable
[[Page 47579]]
adjustment to the contract in accordance with paragraph (h) of this
clause, if the Government has agreed in this contract to make the
property available for performing this contract and there is any--
(i) Decrease or substitution in this property pursuant to
subparagraph (b)(1) above; or
(ii) Withdrawal of authority to use this property, if provided
under any other contract or lease.
(c) Title in Government property. (1) The Government shall
retain title to all Government-furnished property.
(2) All Government-furnished property and all property acquired
by the Carrier, title to which vests in the Government under this
paragraph (collectively referred to as ``Government property''), are
subject to the provisions of this clause. Title to Government
property shall not be affected by its incorporation into or
attachment to any property not owned by the Government, nor shall
Government property become a fixture or lose its identity as
personal property by being attached to any real property.
(d) Use of Government property. The Government property shall be
used only for performing this contract, unless otherwise provided in
this contract or approved by the Contracting Officer.
(e) Property administration. (1) The Carrier shall be
responsible and accountable for all Government property provided
under this contract and shall comply with Federal Acquisition
Regulation (FAR) subpart 45.5, as in effect on the date of this
contract.
(2) The Carrier shall establish and maintain a program for the
use, maintenance, repair, protection, and preservation of Government
property in accordance with sound industrial practice and the
applicable provisions of subpart 45.5 of the FAR.
(3) If damage occurs to Government property, the risk of which
has been assumed by the Government under this contract, the
Government shall replace the items or the Carrier shall make such
repairs as the Government directs. However, if the Carrier cannot
effect such repairs within the time required, the Carrier shall
dispose of the property as directed by the Contracting Officer. When
any property for which the Government is responsible is replaced or
repaired, the Contracting Officer shall make an equitable adjustment
in accordance with paragraph (h) of this clause.
(4) The Carrier represents that the contract price does not
include any amount for repairs or replacement for which the
Government is responsible. Repair or replacement of property for
which the Carrier is responsible shall be accomplished by the
Carrier at its own expense.
(f) Access. The Government and all its designees shall have
access at all reasonable times to the premises in which any
Government property is located for the purpose of inspecting the
Government property.
(g) Risk of loss. Unless otherwise provided in this contract,
the Carrier assumes the risk of, and shall be responsible for, any
loss or destruction of, or damage to, Government property upon its
delivery to the Carrier. However, the Carrier is not responsible for
reasonable wear and tear to Government property or for Government
property properly consumed in performing this contract.
(h) Equitable adjustment. When this clause specifies an
equitable adjustment, it shall be made to any affected contract
provision in accordance with the procedures of the Changes clause.
When appropriate, the Contracting Officer may initiate an equitable
adjustment in favor of the Government. The right to an equitable
adjustment shall be the Carrier's exclusive remedy. The Government
shall not be liable to suit for breach of contract for--
(1) Any delay in delivery of Government-furnished property;
(2) Delivery of Government-furnished property in a condition not
suitable for its intended use;
(3) A decrease in or substitution of Government-furnished
property; or
(4) Failure to repair or replace Government property for which
the Government is responsible.
(i) Final accounting and disposition of Government property.
Upon completing this contract, or at such earlier dates as may be
fixed by the Contracting Officer, the Carrier shall submit, in a
form acceptable to the Contracting Officer, inventory schedules
covering all items of Government property (including any resulting
scrap) not consumed in performing this contract or delivered to the
Government. The Carrier shall prepare for shipment, deliver f.o.b.
origin, or dispose of the Government property as may be directed or
authorized by the Contracting Officer. The net proceeds of any such
disposal shall be credited to the contract price or shall be paid to
the Government as the Contracting Officer directs.
(j) Abandonment and restoration of Carrier's premises. Unless
otherwise provided herein, the Government--
(1) May abandon any Government property in place, at which time
all obligations of the Government regarding such abandoned property
shall cease; and
(2) Has no obligation to restore or rehabilitate the Carrier's
premises under any circumstances (e.g., abandonment, disposition
upon completion of need, or upon contract completion). However, if
the Government-furnished property is withdrawn or is unsuitable for
the intended use, or if other Government property is substituted,
then the equitable adjustment under paragraph (h) of this clause may
properly include restoration or rehabilitation costs.
(k) Communications. All communications under this clause shall
be in writing.
(l) Overseas contracts. If this contract is to be performed
outside of the United States of America, its territories, or
possessions, the words ``Government'' and ``Government-furnished''
(wherever they appear in this clause) shall be construed as ``United
States Government'' and ``United States Government-furnished'',
respectively.
(End of clause)
32. In Subpart 1652.2, new sections 1652.249-71 and 1652.249-72 are
added to read as follows:
1652.249-71 FEHBP termination for convenience of the government--
negotiated benefits contracts.
As prescribed in section 1649.101-71, the following clause shall be
inserted in all FEHBP contracts.
FEHBP Termination for Convenience of the Government--Negotiated
Benefits Contracts (Jan 1998)
(a) The Government may terminate performance of work under this
contract in whole or, from time to time, in part if the Contracting
Officer determines that a termination is in the Government's
interest. The Contracting Officer shall terminate by delivering to
the Carrier a Notice of Termination specifying the extent of
terminating and the effective date.
(b) After receipt of a Notice of Termination, and except as
directed by the Contracting Officer, the Carrier shall immediately
proceed with the following obligations, regardless of any delay in
determining or adjusting any amounts due under this clause:
(1) Stop work as specified in the notice.
(2) Place no further subcontracts except as necessary to
complete the continued portion of the contract.
(3) Terminate all subcontracts to the extent they relate to the
work terminated.
(4) Assign to the Government, as directed by the Contracting
Officer, all right, title, and interest of the Carrier under the
subcontracts terminated, in which case the Government shall have the
right to settle or to pay any termination settlement proposal
arising out of those terminations.
(5) With approval or ratification to the extent required by the
Contracting Officer, settle all outstanding liabilities and
termination settlement proposals arising from the termination of
subcontracts; the approval or ratification will be final for
purposes of this clause.
(6) As directed by the Contracting Officer, deliver to the
Government any data, reports, or studies that, if the contract had
been completed, would be required to be furnished to the Government.
(7) Complete performance of the work not terminated.
(c) After termination, the Carrier shall submit a final
termination settlement proposal to the Contracting Officer in the
form and with the certification prescribed by the Contracting
Officer. The Carrier shall submit the proposal promptly, but no
later than 1 year from the effective date of termination, unless
extended in writing by the Contracting Officer upon written request
of the Carrier within this 1-year period. However, if the
Contracting Officer determines that the facts justify it, a
termination settlement proposal may be received and acted on after 1
year or any extension. If the Carrier fails to submit the proposal
within the time allowed, the Contracting Officer may determine, on
the basis of information available, the amount, if any, due the
Carrier because of the termination and shall pay the amount
determined.
(d) Subject to paragraph (c) of this clause, the Carrier and the
Contracting Officer may agree upon the whole or any part of the
[[Page 47580]]
amount to be paid or remaining to be paid because of the
termination. The amount may include a reasonable allowance for
profit on work done. However, the agreed amount, whether under this
paragraph (d) or paragraph (e) of this clause, exclusive of costs
shown in subparagraph (e)(3) of this clause, may not exceed the
total contract price as reduced by (1) the amount of payments
previously made and (2) the contract price of work not terminated.
The contract shall be modified, and the Carrier paid the agreed
amount. Paragraph (e) of this clause shall not limit, restrict, or
affect the amount that may be agreed upon to be paid under this
paragraph.
(e) If the Carrier and the Contracting Officer fail to agree on
the whole amount to be paid because of the termination of work, the
Contracting Officer shall pay the Carrier the amounts determined by
the Contracting Officer as follows, but without duplication of any
amounts agreed on under paragraph (d) above:
(1) The contract price for completed services accepted by the
Government not previously paid for.
(2) The total of--
(i) The costs incurred in the performance of the work
terminated, including initial costs and preparatory expense
allocable thereto, but excluding any costs attributable to services
paid or to be paid under paragraph (e)(1) of this clause;
(ii) The cost of settling and paying termination settlement
proposals under terminated subcontracts that are properly chargeable
to the terminated portion of the contract if not included in
subdivision (e)(2)(i) of this clause; and
(iii) A sum, as profit on subdivision (e)(2)(i) of this clause,
determined by the Contracting Officer under 49.202 of the Federal
Acquisition Regulation, in effect on the date of this contract, to
be fair and reasonable.
(3) The reasonable costs of settlement of the work terminated,
including--
(i) Accounting, legal, clerical, and other expenses reasonably
necessary for the preparation of termination settlement proposals
and supporting data;
(ii) The termination and settlement of subcontracts (excluding
the amounts of such settlements); and
(f) The cost principles and procedures of part 31 of the Federal
Acquisition Regulation, in effect on the date of this contract,
shall govern all costs claimed, agreed to, or determined under this
clause.
(g) The Carrier shall have the right of appeal, under the
Disputes clause, from any determination made by the Contracting
Officer under paragraph (c), (e), or (i) of this clause, except that
if the Carrier failed to submit the termination settlement proposal
or request for equitable adjustment within the time provided in
paragraph (c) or (i), respectively, and failed to request a time
extension, there is no right of appeal.
(h) In arriving at the amount due the Carrier under this clause,
there shall be deducted--
(1) All unliquidated advance or other payments to the Carrier
under the terminated portion of this contract;
(2) Any claim which the Government has against the Carrier under
this contract; and
(i) If the termination is partial, the Carrier may file a
proposal with the Contracting Officer for an equitable adjustment of
the price(s) of the continued portion of the contract. The
Contracting Officer shall make any equitable adjustment agreed upon.
Any proposal by the Carrier for an equitable adjustment under this
clause shall be requested within 90 days from the effective date of
termination unless extended in writing by the Contracting Officer.
(j)(1) The Government may, under the terms and conditions it
prescribes, make partial payments and payments against costs
incurred by the Carrier for the terminated portion of the contract,
if the Contracting Officer believes the total of these payments will
not exceed the amount to which the Carrier will be entitled.
(2) If the total payments exceed the amount finally determined
to be due, the Carrier shall repay the excess to the Government upon
demand, together with interest computed at the rate established by
the Secretary of the Treasury under 50 U.S.C. App. 1215(b)(2).
Interest shall be computed for the period from the date the excess
payment is received by the Carrier to the date the excess is repaid.
(k) Unless otherwise provided in this contract or by statute,
the Carrier shall maintain all records and documents relating to the
terminated portion of this contract for 3 years after final
settlement. This includes all books and other evidence bearing on
the Carrier's costs and expenses under this contract. The Carrier
shall make these records and documents available to the Government,
at the Carrier's office, at all reasonable times, without any direct
charge. If approved by the Contracting Officer, photographs,
microphotographs, or other authentic reproductions may be maintained
instead of original records and documents.
(End of clause)
1652.249-72 FEHBP termination for default--negotiated benefits
contracts.
As prescribed in Sec. 1649.101-72, the following clause shall be
inserted in all FEHBP contracts.
FEHBP Termination for Default--Negotiated Benefits Contracts (Jan 1998)
(a) (1) The Government may, subject to paragraphs (c) and (d)
below, by written notice of default to the Carrier, terminate this
contract in whole or in part if the Carrier fails to--
(i) Perform the services within the time specified in this
contract or any extension;
(ii) Make progress, so as to endanger performance of this
contract (but see subparagraph (a)(2) below); or
(iii) Perform any of the other provisions of this contract (but
see subparagraph (a)(2) below).
(2) The Government's right to terminate this contract under
subdivisions (1)(ii) and (1)(iii) above, may be exercised if the
Carrier does not cure such failure within 10 days (or more if
authorized in writing by the Contracting Officer) after receipt of
the notice from the Contracting Officer specifying the failure.
(b) If the Government terminates this contract in whole or in
part, it may acquire, under the terms and in the manner the
Contracting Officer considers appropriate, supplies or service
similar to those terminated, and the Carrier will be liable to the
Government for any excess costs for those supplies or services.
However, the Carrier shall continue the work not terminated.
(c) Except for defaults of subcontractors at any tier, the
Carrier shall not be liable for any excess costs if the failure to
perform the contract arises from causes beyond the control and
without the fault or negligence of the Carrier. Examples of such
causes include (1) acts of God or of the public enemy, (2) acts of
the Government in either its sovereign or contractual capacity, (3)
fires, (4) floods, (5) epidemics, (6) quarantine restrictions, (7)
strikes, (8) freight embargoes, and (9) unusually severe weather. In
each instance the failure to perform must be beyond the control and
without the fault or negligence of the Carrier.
(d) If the failure to perform is caused by the default of a
subcontractor at any tier, and if the cause of the default is beyond
the control of both the Carrier and subcontractor, and without the
fault or negligence of either, the Carrier shall not be liable for
any excess costs for failure to perform, unless the subcontracted
supplies or services were obtainable from other sources in
sufficient time for the Carrier to meet the required delivery
schedule.
(e) If this contract is terminated for default, the Government
may require the Carrier to transfer title and deliver to the
Government, as directed by the Contracting Officer, any completed or
partially completed information and contract rights that the Carrier
has specifically produced or acquired for the terminated portion of
this contract.
(f) If, after termination, it is determined that the Carrier was
not in default, or that the default was excusable, the rights and
obligations of the parties shall be the same as if the termination
had been issued for the convenience of the Government.
(g) The rights and remedies of the Government in this clause are
in addition to any other rights and remedies provided by law or
under this contract.
(End of clause)
Subpart 1652.3--FEHBP Clause Matrix
33. In subpart 1652.3, Sec. 1652.370 paragraph (a) is amended by
removing the words ``established catalog or market price'' in the first
sentence and adding in its place the words ``a combination of cost and
price analysis;'' and by revising the FEHBP Clause Matrix to read as
follows:
1652.370 Use of the matrix.
* * * * *
[[Page 47581]]
FEHBP Clause Matrix
--------------------------------------------------------------------------------------------------------------------------------------------------------
Use with experience Use with community
Clause No. Text reference Title Use status rated contracts rated contracts
--------------------------------------------------------------------------------------------------------------------------------------------------------
FAR 52.202-1...................... FAR 2.2.............. Definitions.......... M T T
FAR 52.203-3...................... FAR 3.202............ Gratuities........... M T T
FAR 52.203-5...................... FAR 3.404(c)......... Covenant Against M T T
Contingent Fees.
FAR 52.203-7...................... FAR 3.502-3.......... Anti-Kickback M T T
Procedures.
FAR 52.203-12..................... FAR 3.808............ Limitation on M T T
Payments to
Influence Certain
Federal Transactions.
1652.203-70....................... 1603.703............. Misleading, M T T
Deceptive, or Unfair
Advertising.
1652.204-70....................... 1604.705............. Contractor Records M T T
Retention.
1652.204-71....................... 1604.7001............ Coordination of M T T
Benefits.
1652.204-72....................... 1604.7101............ Filing Health Benefit M T T
Claims/Court Review
of Disputed Claims.
FAR 52.209-6...................... FAR 9.409(b)......... Protecting the M T T
Government's
Interest When
Subcontracting With
Contractors
Debarred, Suspended,
or Proposed for
Debarment.
FAR 52.215-2...................... FAR 15.105-2(b)...... Audit & Records-- M T T
Negotiations.
FAR 52.215-22..................... FAR 15.804-8(a)...... Price Reduction for M T
Defective Cost or
Pricing Data.
FAR 52.215-24..................... FAR 15.804-8(c)...... Subcontractor Cost or M T
Pricing Data.
FAR 52.215-27..................... FAR 15.804-8(e)...... Termination of M T
Defined Benefit
Pension Plans.
FAR 52.215-30..................... FAR 15.904(a)........ Facilities Capital M T
Cost of Money.
FAR 52.215-31..................... FAR 15.904(b)........ Waiver of Facilities A T
Capital Cost of
Money.
FAR 52.215-39..................... FAR 15.804-8(f)...... Reversion or M T
Adjustment of Plans
for Post Retirement
Benefits Other Than
Pensions (PRB).
FAR 52.215-70..................... 1615.804-72.......... Rate Reduction for M ...................... T
Defective Pricing or
Defective Cost or
Pricing Data.
1652.215-71....................... 1615.805-71.......... Investment Income.... M T
1652.216-70....................... 1616.7001............ Accounting and Price M T
Adjustment.
1652.216-71....................... 1616.7002............ Accounting and M T
Allowable Cost.
FAR 52.219-8...................... FAR 19.708(a)........ Utilization of Small, M T T
Small Disadvantaged
and Women-Owned
Small Business
Concerns.
FAR 52.222-1...................... FAR 22.103-5(a)...... Notice to the M T T
Government of Labor
Disputes.
FAR 52.222-3...................... FAR 22.202........... Convict Labor........ M T T
FAR 52.222-4...................... FAR 22.305(a)........ Contract Work Hours M T T
and Safety Standards
Act--Overtime
Compensation--Genera
l.
FAR 52.222-21..................... FAR 22.810(a)(1)..... Certification of M T T
Nonsegregated
Facilities.
FAR 52.222-26..................... FAR 22.810(a)........ Equal Opportunity.... M T T
FAR 52.222-28..................... FAR 22.810(g)........ Equal Opportunity M T T
Preaward Clearance
of Subcontracts.
FAR 52.222-29..................... FAR 22.810(h)........ Notification of Visa A T T
Denial.
FAR 52.222-35..................... FAR 22.1308(a)....... Affirmative Action M T T
for Special Disabled
and Vietnam Era
Veterans.
[[Page 47582]]
FAR 52.222-36..................... FAR 22.1408(a)....... Affirmative Action M T T
for Handicapped
Workers.
FAR 52.222-37..................... FAR 22.1308(b)....... Employment Reports on M T T
Special Disability
Veterans of the
Vietnam Era.
1652.222-70....................... 1622.103-70.......... Notice of Significant M T T
Events.
FAR 52.223-2...................... FAR 23.105(b)........ Clean Air and Water.. A T T
FAR 52.223-6...................... FAR 23.505(b)........ Drug-Free Workplace.. A T T
1652.224-70....................... 1624.104............. Confidentiality of M T T
Records.
FAR 52.227-1...................... FAR 27.201-2(a)...... Authorization and M T T
Consent.
FAR 52.227-2...................... FAR 27.202-2......... Notice and Assistance M T T
Regarding Patent and
Copyright
Infringement.
FAR 52.229-3...................... FAR 29.401-3......... Federal, State and M T
Local Taxes.
FAR 52.229-4...................... FAR 29.401-4......... Federal, State and M T
Local Taxes
(Noncompetitive
Contract).
FAR 52.229-5...................... FAR 29.401-5......... Taxes--Contracts A T T
Performed in U.S.
Possessions or
Puerto Rico.
1652.229-70....................... FEHBAR 1629.402...... Taxes--Foreign A T T
Negotiated Benefits
Contracts.
FAR 52.230-2...................... FAR 30.201-4(a)(1)... Cost Accounting A T T
Standards.
FAR 52.230-3-..................... FAR 30.201-4(b)(1)... Disclosure and A T T
Consistency of Cost
Accounting Practices.
FAR 52.230-6...................... FAR 30.201-4(d)(1)... Administration of A T T
Cost Accounting
Standards.
FAR 52.232-8...................... FAR 32.111(c)(1)..... Discounts for Prompt M T T
Payment.
FAR 52.232-17..................... FAR 32.617(a) Interest............. M T T
Modification:
1632.617.
FAR 52.232-23..................... FAR 32.806(a)(1)..... Assignment of Claims. A T T
FAR 52.232-33..................... FAR 32.1103(a)&(c)... Mandatory Information M T T
for Electronic Funds
Transfer Payment.
1652.232-70....................... 1632.171............. Payments--Contracts A T
Without Letter of
Credit Payment
Arrangements.
1652.323-71....................... 1632.172............. Payments--Contracts A T
With Letter of
Credit Payment
Arrangements.
1652.232-72....................... 1632.772............. Non-Commingling of M T
FEHBP Funds.
1652.232-73....................... 1632.806-70.......... Approval for M T T
Assignment of Claims.
FAR 52.233-1...................... FAR 33.215........... Disputes............. M T T
FAR 52.242-1...................... FAR 42.802........... Notice of Intent to M T T
Disallow Costs.
FAR 52.242-3...................... FAR 42.709-6......... Penalties for M T
Unallowable Costs.
FAR 52.242-13..................... FAR 42.903........... Bankruptcy........... M T T
1652.243-70....................... 1643.205-70.......... Changes--Negotiated M T T
Benefits Contracts.
FAR 52.244-5...................... FAR 44.204(e)........ Competition in M T ......................
Subcontracting.
FAR 52.244-6...................... FAR 44.403........... Subcontracts for M T
Commercial Items and
Commercial
Components.
1652.244-70....................... 1644.270............. Subcontracts......... M T
1652.245-70....................... FAR 1645.303-70...... Government Property M T T
(Negotiated Benefits
Contracts).
[[Page 47583]]
FAR 52.246-25..................... FAR 46.805(a)(4)..... Limitation of M T
Liability--Services.
1652.246-70....................... 1646.301............. FEHB Inspection...... M T T
FAR 52.247-63..................... FAR 47.405........... Preference for U.S.- M T T
Flag Carriers.
1652.249-70....................... 1649.101-70.......... Renewal and M T T
Withdrawal of
Approval.
1652.249-71....................... 1649.101-71.......... FEHBP Termination for M T T
Convenience of the
Government--Negotiat
ed Benefits
Contracts.
1652.249-72....................... 1649.101-72.......... FEHBP Termination for M T T
Default--Negotiated
Benefits Contracts.
FAR 52.251-1...................... FAR 51.107........... Government Supply M T
Sources.
FAR 52.252-4...................... FAR 52.107(d)........ Alterations in M T T
Contract.
FAR 52.252-6...................... FAR 52.107(f)........ Authorized Deviations M T T
in Clauses.
--------------------------------------------------------------------------------------------------------------------------------------------------------
PART 1653--FORMS [AMENDED]
34. Part 1653 is amended by removing all references to Sec. 53.215-
2(b), Sec. 53.301-1412, and SF-1412 in the chart.
[FR Doc. 97-23883 Filed 9-9-97; 8:45 am]
BILLING CODE 6325-01-P