[Federal Register Volume 64, Number 131 (Friday, July 9, 1999)]
[Rules and Regulations]
[Pages 37200-37272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15961]



[[Page 37199]]

_______________________________________________________________________

Part II





General Services Administration





_______________________________________________________________________



48 CFR Chapter 5



General Services Administration Acquisition Regulation; Interim Rule

  Federal Register / Vol. 64, No. 131 / Friday, July 9, 1999 / Rules 
and Regulations  

[[Page 37200]]



GENERAL SERVICES ADMINISTRATION

48 CFR Chapter 5

RIN 3090-AE90


General Services Administration Acquisition Regulation

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Interim rule with request for comments.

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

SUMMARY: The General Services Administration (GSA) is revising the 
General Services Administration Acquisition Regulation (GSAR) in its 
entirety. GSA has rewritten the GSAR into plain English, included only 
regulatory material, and removed internal agency guidance. GSA has also 
updated the GSAR to reflect recent changes to the Federal Acquisition 
Regulation (FAR). GSA intends the reissued GSAR to be simpler to 
understand and less burdensome for contractors and offerors, GSA 
contracting personnel, and contracting personnel in other agencies 
delegated contracting authority subject to following GSAR procedures.

DATES: Effective Date: September 1, 1999. Comments should be submitted 
in writing to the address shown below on or before September 7, 1999.

ADDRESSES: Mail comments to General Services Administration, Office of 
Acquisition Policy, GSA Acquisition Policy Division (MVP), 1800 F 
Street, NW, Room 4012, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT: Gloria Sochon, GSA Acquisition Policy 
Division, (202) 208-6726.

SUPPLEMENTARY INFORMATION:

A. Background

    On January 28, 1992, the President directed agencies to evaluate 
their regulatory programs and eliminate certain rules that restrict the 
economy. On September 11, 1993, the President directed agencies to 
eliminate at least half of their internal management regulations. While 
these directives did not apply to GSA acquisition regulations, GSA 
initiated a review and rewrite of the GSAR following the same 
principles. The GSAR, as reissued--

--Uses plain English to improve clarity and understanding.
--Reduces the amount of regulatory material.
--Eliminates internal operating procedures that do not have a 
significant effect beyond GSA, or a significant cost or administrative 
impact on contractors or offerors.
--Eliminates guidance which merely implements or supplements the 
Federal Acquisition Regulation (FAR) without a significant cost or 
administrative impact on contractors or offerors, or an effect beyond 
GSA's internal operating procedures.
--In subparts 503, 515, 552, and 570, incorporates changes from the 
interim rule published in the Federal Register at 63 FR 18843, April 
16, 1998 (ADP 2800.12A, CHGE 79). GSA received no comments on this 
interim rule. The interim rule updated regulation procedures for 
acquisitions of leasehold interests in real property for consistency 
with FAR Part 15 where applicable. The interim rule is incorporated 
with editorial changes for plain language, more clear organization, and 
consistency in cross references.
--In subparts 504.5 and 505.1, provides guidance on use of GSA's 
Electronic Posting System for issuing synopses and solicitations.
--In subparts 511, 516, 542, and 552 incorporates changes from the 
interim rule published in the Federal Register at 64 FR 4788, February 
1, 1999 (ADP 2800.12A, CHGE 81). The interim rule clarified 
requirements for making deliveries under contracts that provide for 
delivery to both civilian and military locations, clarified the 
contracting activities authorized to place orders under Federal Supply 
Service (FSS) contracts, allowed Procuring Contracting Officers (PCOs) 
in FSS to authorize Administrative Contracting Officers (ACOs) to issue 
cure or show causes notices, revised the time for submission of close-
out reports under FSS multiple award contracts (MAS), and simplified 
the process for deleting items from FSS MAS contracts. Only the 
Department of Veterans Affairs (VA) submitted comments. VA requested 
that the authority to delete items without prior approval be optional 
for VA because of potential conflicts with its Prime Vendor system. VA 
also requested that publication requirements for supplemental price 
lists be clarified to reflect workdays and be based on calendar months. 
GSA adopts these comments. VA also requested that section 552.216-73 
identify a GSA contact for information on authorized schedule users. 
This comment is not adopted. Questions regarding authorized users 
should be referred to the contracting officer.
--In subparts 515.3, 537.2, and 552.237-73, provides guidance on use of 
outside evaluators. GSA published a proposed rule on disclosure and use 
of proprietary information in the Federal Register at 58 FR 42715, 
August 11, 1993. GSA received 18 comments from 5 respondents and 
considered all comments in preparing this interim rule. Two principal 
areas of concern from industry concerned adding a requirement for 
nongovernment evaluators to execute nondisclosure agreements directly 
with the owners of proposal information and clarification of available 
remedies for violations. GSA will not require nondisclosure agreements 
between outside evaluators and the owner of proposal information. Such 
a requirement would be impractical to administer and does not add to 
the protection afforded the owner of the information. The owner of 
proposal information has remedies under the Trade Secrets Act. The 
Government has contractual and legal remedies, including those defined 
at FAR 3.104, FAR 52.203-8 and 52.203-10, GSAR 552.237-73, and the 
termination provisions of the contract.
--In sections 532.71 and 552.232-1, allows automatic payment for 
recurring services (i.e., fixed roll payment).
--In sections 536.271 and 552.236-83, establishes procedures for using 
project labor agreements for large and significant Federal construction 
projects.
--Incorporates updates to remain consistent with the FAR through 
Federal Acquisition Circular (FAC) 97-10, including:
--Revises section 503.1 to eliminate references to certifications and 
parallel the organization of FAR section 3.1.
--In section 511.404(a)(1), updates the FAR reference from FAR 52.211-1 
to FAR 52.211-8.
--Reorganizes Part 513 to correspond to FAR Part 13.
--Eliminates certifications that are not based on statute, including 
section 514.303 (eliminating the requirement that the receipt for 
withdrawal of a bid certify the representative's authority), section 
528.301 (deleting the reference to certification of insurance and 
deferring to applicable FAR clauses), and sections 537.110 and 552.237-
72 (changing the certification regarding quasi-military armed forces to 
a prohibition).
--Reorganizes and updates Part 515 to correspond to FAR part 15.
--Makes conforming changes to rules on cost and pricing data and 
information other than cost or pricing data in Part 515.

[[Page 37201]]

--Updates subpart 519.8 and section 552.219-74, to conform to changes 
in FAC 97-05 and 97-06, and to add direct section 8(a) award authority 
based on a Memorandum of Understanding with the Small Business 
Administration.
--Updates subparts headings in Part 528 to correspond to subpart 
headings in the FAR.
--Implements agency protest procedures in sections 533.103 and 552.233-
70.
--Reorganizes Part 542 to correspond to FAR Part 42.
--Updates prescription citations in Part 552 to conform to the revised 
Parts 501-550 and 570.
--Deletes the following sections from Part 552, which are either 
obsolete or duplicate FAR provisions or clauses:

552.203-4  Contingent Fee Representation and Agreement
552.214-16  Minimum Bid Acceptance Period
552.214-74  Solicitation Copies
552.225-70  Buy American Act--Hand or Measuring Tools or Stainless 
Steel

Flatware

552.225-72  Eligible Products from Nondesignated Countries--Waiver
552.225-75  Buy American Act Notice--Construction Materials
552.228-70  Bid Guarantee and Bonds
552.228-71  Bid Guarantee
552.228-72  Performance Bond
552.228-73  Performance and Payment Bonds
552.233-70  Disputes (Utility Contract)
552.236-83  Furnishing Information and Records
552.270-40  Asbestos and Hazardous Waste Management.

--Renumbers section 552.211-1 to 552.211-8 for consistent cross-
numbering to the corresponding clause of FAR 52.211-8.
--Incorporates a clause at sections 552.212-71 and 552.238-78, 
Cancellation, required by the Federal Supply Service for multiple award 
schedule contracts.
--At section 552.212-71, Contract Terms and Conditions Applicable to 
GSA Acquisition of Commercial Items, separates provisions from clauses 
and updates references to revised provisions and clauses.
--At section 552.212-72, Contract Terms and Conditions Required to 
Implement Statutes or Executive Orders Applicable to GSA Acquisition of 
Commercial Items, separates provisions from clauses; adds 552.225-8, 
Buy American Act--Trade Agreements--Balance of Payments Program 
Certificate and 552.225-9, Buy American Act--Trade Agreements--Balance 
of Payments Program; and updates references to revised provisions and 
clauses.
--At section 552.216-70, Economic Adjustment--FSS Multiple Award 
Schedule Contracts, corrected the title of the clause for internal 
consistency.
--At section 552.225-8, Buy American Act--Trade Agreements--Balance of 
Payments Program Certificate, conforms the name to the related FAR 
provisions.
--At section 552.225-9, Buy American Act--Trade Agreements--Balance of 
Payments Program, conforms the name to the related FAR clause.
--At section 552.225-70, Buy American Act-Hand of Measuring Tools or 
Stainless Steel Flatware, updates GSAR references.
--At section 552.228-70, Workers' Compensation Laws, changes 
``workermen's'' to ``workers'' ' to conform to FAR references.
--At section 552.232-23, Assignment of Claims, deletes references to 
``delivery'' orders so that the clause covers both delivery and task 
orders.
--At section 552.232-70, Invoice Requirements, deletes references to 
``purchase'' and ``delivery'' orders so that the clause covers 
purchase, delivery, and task orders.
--At section 552.232-76, Electronic Funds Transfer Payment, updates the 
clause to conform the information required under leases for real 
property to FAR requirements for other contracts.
--At section 552.232-77, Payment by Credit Card, updates procedures for 
consistency with the new Government credit card contract and removes 
``delivery'' so that the clause covers both delivery and task orders.
--At section 552.236.77, Specifications and Drawings, corrects the 
reference to the FAR clause at 52.236-21, Specifications and Drawings 
for Construction.
--At section 552.236-78, Shop Drawings, Coordination Drawings, and 
Schedules, corrects the reference to the FAR clause at 52.236-21, 
Specifications and Drawings for Construction.
--At section 552.238-74, Contractor's Report of Sales, updates 
references to the clause at 552.238-76, Industrial Funding Fee and adds 
task orders in paragraph (a).
--At section 552.238-76, Industrial Funding Fee, updates references to 
the clause at 552.238-75, Contractor's Report to Sales.
--At section 552.243-71, Equitable Adjustments, revises a reference 
from ``workmen's'' to workers'' ' to conform to references in the FAR.
--At section 552.243-72, Modifications (Multiple Award Schedule), 
updates references to GSAR clauses.
--At section 552.246-70, Source Inspection by Quality Approved 
Manufacturer, corrects the numbering of subparagraphs in paragraph (b).
--At section 552.247-71, Diversion of Shipment Under F.O.B. Destination 
Contracts. The clause authorizes GSA to unilaterally direct shipment of 
an order to an alternate location. Prior to changes resulting from the 
Federal Acquisition Streamlining Act, FAR 52.243-1, Changes--Fixed 
Price, and 52.247-54, Diversion of Shipment Under F.O.B. Destination 
Contracts, provided the Government the right to unilaterally change the 
place of delivery and defined the basis for making related price 
adjustments GSA's Federal Supply Service (FSS) used these clauses to 
implement efficient inventory management in the Stock, SOP, and Single 
Award Schedule programs. The authority to divert shipment to certain 
volume orders allows FSS to maintain optimum inventory levels and 
minimize space, storage, handling, and related expenses. It also allows 
FSS to respond quickly to customer agency needs. FAR 52.212-4(c) allows 
changes ``only by written agreement of the parties.'' This requires FSS 
to process a bilateral modification for each order when directing 
shipment to an alternate location would be in the Government's best 
interest. This creates unacceptable delays in processing orders and 
responding to customer agencies' needs. It also cause FSS to maintain 
excessive stock levels and storage facilities in order to respond to 
unusual orders. This unnecessarily increases FSS costs, and in turn, 
costs to customer agencies. The ability to unilaterally direct 
shipments improves responsiveness and reduces costs in the Government's 
best interest.
--At section 552.225-5, Authorized Deviations in Provisions, conforms 
the provision to changes in FAR 52.252-5.
--At section 552.252-6, Authorized Deviations in Clauses, conforms the 
clause to changes in FAR 52.252-6.
--Revises the following clauses applicable to leases of real property 
to provide a common standard to measuring usable square feet based on 
the Building Owners and Managers Association definition:

552.270-2  Historic Preference.
552.270-4  Definitions
552.270-14  Changes
552.270-16  Adjustment for Vacant Premises

[[Page 37202]]

552.270-18  Default in Delivery--Time Extensions
552.270-20  Payment
552.270-29  Acceptance of Space

--Redesignates provisions and clauses so that they appear in the 
sequence referred to in parts 501-551 and 570.

------------------------------------------------------------------------
               Old section                          New section
------------------------------------------------------------------------
552.203-73...............................  552.203-70
552.203-70...............................  552.203-71
552.209-73...............................  552.209-70
552.209-74...............................  552.209-71
552.209-75...............................  552.209-72
552.209-76...............................  552.209-73
552.214-73...............................  552.214-70
552.214-75...............................  552.214-71
552.214-76...............................  552.214-72
552.216-71...............................  552.216-70
552.216-72...............................  552.216-71
552.216-73...............................  552.216-72
552.216-74...............................  552.216-73
552.219-71...............................  552.219-70
552.219-72...............................  552.219-71
552.219-73...............................  552.219-72
552.219-74...............................  552.219-73
552.223-71...............................  552.223-72
552.223-72...............................  552.223-71
552.225-71...............................  552.225-70
552.228-75...............................  552.228-70
552.229-72...............................  552.229-71
552.232-70...............................  552.232-74
552.232-71...............................  552.232-75
552.232-72...............................  552.232-70
552.232-73...............................  552.232-76
552.232-77...............................  552.232-73
552.232-78...............................  552.232-71
552.232-79...............................  552.232-72
552.232-80...............................  552.232-77
552.238-72...............................  552.238-74
552.238-74...............................  552.238-71
552.238-75...............................  552.238-72
552.238-76...............................  552.238-75
552.238-77...............................  552.238-76
552.246-71...............................  552.246-72
552.246-72...............................  552.246-71
552.270-4................................  552.270-2
552.270-6................................  552.270-3
552.270-10...............................  552.270-4
552.270-11...............................  552.270-5
552.270-12...............................  552.270-6
552.270-13...............................  552.270-7
552.270-15...............................  552.270-8
552.270-16...............................  552.270-9
552.270-17...............................  552.270-10
552.270-18...............................  552.270-11
552.270-19...............................  552.270-12
552.270-20...............................  552.270-13
552.270-21...............................  552.270-14
552.270-22...............................  552.270-15
552.270-25...............................  552.270-16
552.270-27...............................  552.270-17
552.270-28...............................  552.270-18
552.270-30...............................  552.270-19
552.270-31...............................  552.270-20
552.270-32...............................  552.270-21
552.270-33...............................  552.270-22
552.270-34...............................  552.270-23
552.270-35...............................  552.270-24
552.270-36...............................  552.270-25
552.270-37...............................  552.270-26
552.270-38...............................  552.270-27
552.270-39...............................  552.270-28
552.270-41...............................  552.270-29
------------------------------------------------------------------------

B. Executive Order 12866

    This rule was submitted to the Office of Management and Budget 
(OMB) under Executive Order 12866. This is not a major rule under 5 
U.S.C. 804.

C. Regulatory Flexibility Act

    This interim rule will not have a significant economic impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The guidance on 
disclosure and use of proprietary information implements agency 
procedures for releasing proposals outside the Government for 
evaluation and provide a contract clause to ensure that evaluation 
contractors protect proposal information appropriately. The agency 
protest procedures offer vendors an alternate forum which is quicker 
and less expensive than protests to the General Accounting Office or 
the Courts. The other revisions do not add any new requirements; but 
reduce the number of agency regulations, restate existing requirements 
in plain English, and provide consistency with the FAR. These revisions 
streamline GSA acquisition rules, provide greater flexibility, and 
promote understanding.

D. Paperwork Flexibility Act

    The reissued GSAR contains information collection requirements 
subject to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) which 
were approved previously by OMB and assigned the control numbers shown 
in section 501.106.

E. Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule under 5 U.S.C. 804. This rule was 
submitted to Congress and GAO under 5 U.S.C. 804.

F. Determination to Issue an Interim Rule

    Urgent and compelling reasons exist to promulgate this interim rule 
without prior opportunity for public comment. Many of the updates to 
consistency with the FAR are necessary to comply with statute or 
Executive Orders. For example, this rule implements Section 29 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 425), eliminating 
certifications not required by statute or approved by the Office of 
Federal Procurement Policy, and Executive Order 12979, Agency 
Procurement Protests, providing inexpensive, informal, simple, and 
quick resolution of protests. Other changes necessary for consistency 
with the FAR implement streamlined and innovative acquisitions 
procedures that benefit contractors, offerors, and GSA contracting 
personnel, such as GSA implementation of new FAR Part 15 source 
selection procedures. Further, the rule provides significant benefits 
to the Federal government, offerors, and contractors by:

--Reducing the number of agency regulations, which reduces 
administrative burden and promotes flexibility in the acquisition 
process.
--Restates requirements in plain English, which promotes understanding.
--Provides consistency with the FAR, which eliminates conflicts and 
reduces confusion.

    However, pursuant to Pub. L. 98-577 and FAR 1.501, GSA will 
consider public comments received in response to this interim rule in 
the formation of the final rule.

List of Subjects in 48 CFR Chapter 5

    Government procurement.

    Dated: June 16, 1999.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy.

    Accordingly, the General Services Administration revises 48 CFR 
Chapter 5, to read as follows:

CHAPTER 5--GENERAL SERVICES ADMINISTRATION

SUBCHAPTER A--GENERAL

Part
501  General Services Administration Acquisition Regulations System
502  Definitions of Words and Terms
503  Improper Business Practices and Personal Conflicts of Interest
504  Administrative Matters

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

505  Publicizing Contract Actions
509  Contractor Qualifications
511  Describing Agency Needs
512  Acquisition of Commercial Items

SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES

513  Simplified Acquisition Procedures
514  Sealed Bidding
515  Contracting by Negotiation
516  Types of Contracts
517  Special Contracting Methods

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

519  Small Business Programs
522  Application of Labor Laws to Government Acquisitions
523  Environment, Conservation, Occupational Safety and Drug-Free 
Workplace
525  Foreign Acquisition

[[Page 37203]]

SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS

527  Patents, Data, and Copyrights
528  Bonds and Insurance
529  Taxes
532  Contract Planning
533  Protests, Disputes, and Appeals

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

536  Construction and Architect-Engineer Contracts
537  Service Contracting
538  Federal Supply Schedule Contracting

SUBCHAPTER G--CONTRACT MANAGEMENT

542  Contract Administration and Audi Services
543  Contract Modifications
546  Quality Assurance
547  Transportation
549  Termination of Contracts

SUBCHAPTER H--CLAUSES AND FORMS

552  Solicitation Provisions and Contract Clauses
553  Forms

SUBCHAPTER I--SPECIAL CONTRACTING PROGRAMS

570  Acquiring Leasehold Interests in Real Property

SUBCHAPTER A--GENERAL

PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION 
SYSTEM

Subpart 501.1--Purpose, Authority, Issuance

Sec.
501.101  Purpose
501.103  Authority
501.104  Applicability
501.105  Issuance
501.105-1  Publication and code arrangement
501.105-2  Arrangement of regulations
501.105-3  Copies
501.106  OMB Approval under the Paperwork Reduction Act

Subpart 501.4--Deviations From the FAR and GSAR

501.402  Policy
501.403  Individual deviations
501.404  Class deviations

    Authority: 40 U.S.C. 486(c).

Subpart 501.1--Purpose, Authority, Issuance


501.101  Purpose.

    (a) The General Services Acquisition Regulation (GSAR) contains 
agency acquisition policies and practices, contract clauses, 
solicitation provisions, and forms that control the relationship 
between GSA and contractors and prospective contractors.
    (b) GSAR address rules directly to you, the contracting officer, 
unless otherwise indicated.


501.103  Authority.

    GSA's Senior Procurement Executive issues the GSAR under the 
authority of the Federal Property and Administrative Services Act of 
1949, as amended.


501.104  Applicability.

    (a) General. The GSAR applies to contracts for suppliers or 
services, including construction.
    (b) Acquisition of leasehold interests in real property. Part 570 
establishes rules for the acquisition of leasehold interests in real 
property. Other provisions of 48 CFR chapter 5 (GSAR) do not apply to 
leases of real property unless specifically cross-reference in part 
570.
    (c) Relationship to state. Some GSAR rules implement and interpret 
laws and other authorities affecting procurement. A GSAR rule 
specifically directed by statute has the force and effect of law.
    (d) GSAR/FAR Relationship. The GSAR may deviate from the Federal 
Acquisition Regulation (FAR) if authorized. If the GSAR does not 
implement the FAR, the FAR alone governs.


501.105  Issuance.


501.105-1  Publication and code arrangement.

    The GSAR is published in the following sources:
    (a) Daily issue of the Federal Register.
    (b) Annual Code of Federal Regulations (CFR), as Chapter 5 of Title 
48.
    (c) GSA Acquisition Manual distributed within GSA.
    (d) GSA Home Page at http://www/gas.gov. Click on either 
``Government Agencies'' or on ``Business and Industry,'' the click on 
``Acquisition.''


501.105-2  Arrangement of regulations.

    (a) The GSAR numbers and captions policies and procedures to 
correspond to how they appear in the FAR, e.g., 1.104 in the FAR is 
501.104 in the GSAR.
    (b) GSAR rules not implementing the FAR have numbers beginning with 
70, e.g., part 570, subsection 515.209-70.
    (c) The GSAR may have gaps in its numbering scheme because a FAR 
rule may not require GSAR implementation.


501.105-3  Copies.

    The GSAR in CFR form may be purchased from: Superintendent of 
Documents, Government Printing Office, Washington, DC 20402.


501.106  OMB approval under the Paperwork Reduction Act.

------------------------------------------------------------------------
                                                            OMB Control
                     GSAR Reference                             No.
------------------------------------------------------------------------
509.105-1(a)............................................       3090-0007
511.170-3(a)............................................       3090-0203
511.170-3(c)............................................       3090-0203
511.204(d)..............................................       3090-0246
511.404(a)(1)...........................................       3090-0204
511.404(a)(2)...........................................       3090-0204
511.404(a)(5)...........................................       3090-0204
514.201-7(a)............................................       3090-0200
516.203-4(a)(1).........................................       3090-0243
516.506.................................................       3090-0248
519.708(b)..............................................       3090-0252
522.406-6...............................................       1215-0149
523.370.................................................       3090-0205
532.111(c)..............................................       3090-0080
532.905-70..............................................       9000-0102
532.905-71..............................................       3090-0080
537.110(a)..............................................       3090-0197
537.110(b)..............................................       3090-0006
538.273(a)(1)...........................................       3090-0250
538.273(a)(3)...........................................       3090-0262
538.273(b)(1)...........................................       3090-0121
542.1107................................................       3090-0027
546.307-70..............................................       3090-0027
546.302-71..............................................       3090-0027
549.502(b)..............................................       3090-0027
552.211-8...............................................       3090-0204
552.211-70..............................................       3090-0203
552.211-77..............................................       3090-0246
552.211-78..............................................       3090-0204
552.211-82..............................................       3090-0204
552.214-71..............................................       3090-0200
552.216-70..............................................       3090-0243
552.216-72..............................................       3090-0248
552.216-73..............................................       3090-0248
552.219-72..............................................       3090-0252
552.223-72..............................................       3090-0205
552.232-72..............................................       3090-0080
552.237-70..............................................       3090-0197
552.237-71..............................................       3090-0006
552.238-70..............................................       3090-0250
552.238-72..............................................       3090-0262
552.238-74..............................................       3090-0121
552.242-70..............................................       3090-0027
552.246-70..............................................       3090-0027
552.246-71..............................................       3090-0027
552.249-71..............................................       3090-0227
GSA-72-A................................................       3090-0121
GSA-527.................................................       3090-0007
GSA-618-D...............................................       1215-0149
GSA-1142................................................       3090-0080
GSA-1364................................................       3090-0086
GSA-1678................................................       3090-0027
GSA-2419................................................       9000-0102
570.702(c)..............................................       3090-0086
------------------------------------------------------------------------

Subpart 501.4--Deviations From the FAR and GSAR


501.402  Policy.

    Uniformity is a goal of GSA's Acquisition Regulation System. 
Despite this desire for uniformity, a contracting activity may take any 
of the following actions:
    (a) Develop and test new procedures and techniques.
    (b) Adopt alternate procedures in the public interest for unique 
programmatic or managerial requirements

[[Page 37204]]

    (c) Deviate from a regulatory provision implementing a statutory 
requirement provided the deviation does not violate the underlying 
statute. Deviations must not be used to defeat the FAR and GSAR 
approval requirements.


501.403  Individual deviations.

    (a) The Contracting Director approves individual deviations from 
the FAR and GSAR.
    (b) If GSA delegates authority to another agency and requires 
compliance with the GSAR as a condition of the delegation, the 
Contracting Director in the agency receiving the delegation may approve 
individual deviations from the GSAR unless the agency head receiving 
the delegation designates another official.
    (c) Send a copy of each deviation to GSA's Senior Procurement 
Executive (MV).


501.404  Class deviations.

    (a) HCAs approve class deviations from the FAR and GSAR.
    (b) If GSA delegates authority to another agency and requires 
compliance with the GSAR as a condition of the delegation, the HCA in 
the agency receiving the delegation may approve class deviations from 
the GSAR unless the agency head receiving the delegation designates 
another official.
    (c) Send a copy of each deviation to GSA's Senior Procurement 
Executive (MV).
    (d) A request for class deviations must be supported by statements 
that fully describe the need for and the nature of the deviation.
    (e) Class deviations from the GSAR:
    (1) Expire in 12 months if not extended.
    (2) May be rescinded earlier by GSA's Senior Procurement Executive 
or by officials designated under paragraph (a) of this section without 
prejudice to any action taken previously.

PART 502--DEFINITIONS OF WORDS AND TERMS

    Authority: 40 U.S.C. 486(c).

Subpart 502.1--Definitions


502.101  Definitions.

    Agency competition advocate means the GSA Competition Advocate in 
the Office of Acquisition Policy.
    Assigned counsel means the attorney employed by the Office of 
General Counsel (including offices of Regional Counsel) assigned to 
provide legal review or assistance.
    Contracting activity competition advocate means the individual 
designated in writing by the head of the contracting activity (HCA). 
This authority may not be redelegated. The HCA must ensure that the 
designated competition advocate is not assigned any duty or 
responsibility that is inconsistent with the advocacy function. The 
identity of the designated official shall be communicated to procuring 
staff and the Senior Procurement Executive.
    Contracting director means:
    (a) Except in FSS, a director of a Central Office or Regional 
office Division responsible for performing contracting or contract 
administration functions.
    (b) In FSS, a director of a Commodity Center or FSS Bureau.
    Contracting officer's representative (COR), contracting officer's 
technical representative (COTR), or contract administrator means a 
Government employee designated in writing by the contracting officer to 
perform specific limited activities for the contracting officer, such 
as contract administration.
    Debarring official or suspending official means the Senior 
Procurement Executive or a designee.
    Head of the contracting activity means the Deputy Associate 
Administrator for Acquisition Policy (MV); Commissioners of the Federal 
Technology Service (FTS); Federal Supply Service (FSS), or Public 
Buildings Service (PBS); or Regional Administrators. The Deputy 
Associate Administrator for Acquisition Policy serves as the HCA for 
Central Office contracting activities outside of FTS, FSS, and PBS.
    Senior procurement executive means the Deputy Associate 
Administrator for Acquisition Policy.
    Senior program official means a person reporting to, and designated 
by, the HCA to have overall program responsibility for determining how 
the agency will meet its need. The official should have a position of 
authority over the participating offices. Examples include Assistant 
Regional Administrators or Deputy Commissioners.

PART 503--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

Subpart 503.1--Safeguards

Sec.
503.104  Procurement integrity
503.104-3  Definitions
503.104-9  Contract clauses

Subpart 503.2--Contractor Gratuities to Government Personnel

503.204  Treatment of violations

Subpart 503.4--Contingent Fees

503.404  Contract clause

Subpart 503.5--Other Improper Business Practices

503.570  Advertising
503.570-1  Policy
503.570-2  Contract clause

Subpart 503.7--Voiding and Rescinding Contracts

503.702  Definition
503.705  Procedures

    Authority: 40 U.S.C. 486(c).

Subpart 503.1--Safeguards


503.104  Procurement integrity.


503.104-3  Definitions.

    Federal agency procurement as used in FAR 3.104 and in this 
section, also means acquisitions of leasehold interests in real 
property.


503.104-9  Contract clauses.

Acquisitions of Leasehold Interests in Real Property

    Insert a clause substantially the same as the clause at 552.203-70, 
Price Adjustment for Illegal or Improper Activity, in solicitations and 
contracts for and modifications to leasehold interests in real property 
exceeding $100,000.

Subpart 503.2--Contractor Gratuities to Government Personnel


503.204  Treatment of violations.

    (a) The Senior Procurement Executive, or designee, makes 
determinations under FAR 3.204.
    The Senior Procurement Executive, or designee, takes all the 
following actions:
    (1) Coordinates with legal counsel.
    (2) Initiates proceedings under FAR 3.204(a) by notifying the 
contractor that GSA is considering action against the contractor for a 
violation of the Gratuities clause. Notice is sent by a certified 
letter to the last known address of the party, its counsel, or agent 
for service of process. In the case of a business, notice is sent to 
any partner, principal officer, director, owner or co-owner, or joint 
venture.
    (3) Presumes receipt if no return receipt is received within 10 
calendar days after mailing the notice.
    (b) The contractor has 30 calendar days to exercise its rights 
under FAR 3.204(b), unless the Senior Procurement Executive, or 
designee, grants an extension.
    (c) If there is a dispute of fact material to making a 
determination, the Senior Procurement Executive, or designee, may refer 
the matter to an agency fact-finding official designated by the

[[Page 37205]]

Chairman of the GSA Board of Contract Appeals. Referrals for fact-
finding are not made in cases arising from a conviction or indictment 
as defined in FAR 9.403. If a referral is made, the fact-finding 
official takes all the following actions:
    (1) Gives the contractor an opportunity to dispute material facts 
relating to the determinations under FAR 3.204(a)(1) and (2).
    (2) Conducts proceedings under rules consistent with FAR 3.204(b).
    (3) Schedules a hearing within 20 calendar days of receipt of the 
referral. The contractor or GSA may request an extension for good 
cause.
    (4) Delivers to the Senior Procurement Executive, or designee, 
written findings of fact (together with a transcription of the 
proceedings, if made) within 20 calendar days after the hearing record 
closes. The findings must resolve any material disputes of fact by a 
preponderance of the evidence.
    (d) The Senior Procurement Executive, or designee, may reject the 
findings of the fact-finding official only if the findings are clearly 
erroneous or arbitrary and capricious.
    (e) In cases arising from conviction or indictment, or in which 
there are no disputes of material fact, the Senior Procurement 
Executive, or designee, conducts the hearing required by FAR 3.204(b).
    (f) If the Gratuities clause was violated, the contractor may 
present evidence of mitigating factors to the Senior Procurement 
Executive, or designee, either orally or in writing, in accordance with 
a schedule the Senior Procurement Executive, or designee, establishes. 
The Senior Procurement Executive, or designee, exercises the 
Government's rights under FAR 3.204(c) only after considering 
mitigating factors.

Subpart 503.4--Contingent Fees


503.404  Contract clause.

    Insert 552.203-5, Covenant Against Contingent Fees, in 
solicitations and contracts for the acquisition of leasehold interests 
in real property expected to exceed $100,000.

Subpart 503.5--Other Improper Business Practices


503.570  Advertising.


503.570-1  Policy.

    GSA policy precludes contractors from referring to GSA contracts in 
commercial advertising in a manner that states or implies the 
Government approves or endorses the product or service or considers it 
superior to other products or services. The intent of this policy is to 
prevent the appearance of Government bias toward any product or 
service.


503.570-2  Contract clause.

    Insert the clause at 552.203-71, Restriction on Advertising, in 
solicitations and contracts, including acquisitions of leasehold 
interests in real property, if the contract amount is expected to 
exceed the simplified acquisition threshold.

Subpart 503.7--Voiding and Rescinding Contracts


503.702  Definition.

    Notice means a letter sent by certified mail with a return receipt 
requested to the last known address of a party, its counsel, or agent 
for service of process. In the case of a business, such notice may be 
sent to any partner, principal officer, director, owner or co-owner, or 
joint venturer. If no return receipt is received within 10 calendar 
days of mailing, receipt is presumed.
    Voiding and rescinding official means the Senior Procurement 
Executive or designee.


503.705  Procedures.

    (a) Contracting officer's actions:
    (1) If a contract is tainted by misconduct, consult with assigned 
counsel to determine if the Government has a common law remedy such as 
avoidance, rescission, or cancellation.
    (2) If the contractor has a final conviction for a violation under 
18 U.S.C. 201-224, you may refer the matter to the voiding and 
rescinding official under FAR 3.705.
    (i) In the referral, identify the final conviction and include the 
information required by FAR 3.705(d)(2) through (5).
    (ii) Coordinate the referral with the Office of Inspector General 
to determine whether to recommend debarment.
    (3) You may postpone a decision to exercise the Government's common 
law right to void, rescind, or cancel a contract until completion of 
legal proceedings against the contractor.
    (b) Voiding and rescinding official's actions:
    (1) The voiding and rescinding official reviews the referral and 
coordinates with assigned counsel and the contracting activity.
    (2) If the official decides to declare void and rescind a contract 
and to recover the amounts expended and the property transferred, the 
official takes both the following actions:
    (i) Issues the notice required by FAR 3.705.
    (ii) Conducts the hearing contemplated by FAR 3.705(c)(3).
    (3) In case of a dispute of material fact about the agency 
decision, the official refers the matter to the fact-finding official 
designated by the Chairman of the GSA Board of Contract Appeals. The 
voiding and rescinding official makes this referral if the dispute of 
fact relates to any of the following:
    (i) Contracts affected by the final conviction.
    (ii) Amounts expended and property transferred by the Government 
under the affected contracts.
    (iii) Identity and value of any tangible benefits received by the 
Government under the affected contracts.
    (4) The voiding and rescinding official issues GSA's final decision 
under FAR 3.705(e) after receiving the fact-finding official's report, 
if a referral was made. The voiding and rescinding official may reject 
the fact-finding official's findings only if they are clearly erroneous 
or arbitrary and capricious.
    (5) The official coordinates the final decision was the contracting 
activity and provides the activity a copy of the decision.
    (c) Fact-finding official's actions: The fact-finding official 
takes all the following actions:
    (1) Gives the contractor an opportunity to dispute material facts.
    (2) Conducts the proceedings under rules consistent with FAR 
3.705(c)(3).
    (3) Schedules a hearing within 20 calendar days after receiving the 
referral. The official may grant extensions for good cause at the 
request of the contractor or GSA.
    (4) Delivers written findings of fact to the voiding and rescinding 
official (together with a transcription of the proceeding, if made) 
within 20 calendar days after the hearing record closes. The findings 
must resolve any material disputes of fact by a preponderance of the 
evidence.

PART 504--ADMINISTRATIVE MATTERS

Subpart 504.4--Safeguarding Classified Information Within Industry

Sec.
504.402  General
504.475  Return of classified information

Subpart 504.5--Electronic Commerce in Contracting

504.500  Scope of subpart
504.502  Policy
504.570  Procedures for using the EPS

    Authority: 40 U.S.C. 486(c).

Subpart 504.4--Safeguarding Classified Information Within Industry


504.402  General.

    (a) This subpart:

[[Page 37206]]

    (1) Prescribes procedures for safeguarding classified information 
required to be disclosed to contractors in connection with the 
solicitation of offers, and the award, performance, and termination of 
contracts.
    (2) Implements the requirements of the Department of Defense's 
Industrial Security Regulation (ISR) and Industrial Security Manual for 
Safeguarding Classified Information (ISM). By agreement, the Department 
of Defense (DOD) will act for, and on behalf of, GSA in rendering 
security services required for safeguarding classified information 
released by GSA to U.S. industry.
    (b) As used in this subpart, the term:
    (1) ``Contractor(s)'' means prospective contractors, 
subcontractors, vendors, and suppliers.
    (2) ``U.S. industry'' means those industries (including educational 
and research institutions) located within the United States, its 
possessions, and the Commonwealth of Puerto Rico.


504.475  Return of classified information.

    (a) You must recover classified information unless it has been 
destroyed as provided in paragraph 19 of the ISM. The Government agency 
that provided classified information to a GSA contractor is responsible 
for the return of the information.
    (b) You must ensure that classified information furnished to 
prospective offerors, offerors, or contractors is returned immediately 
after any of the following:
    (1) After bid opening or closing date for receipt of proposals by 
non-responding offerors.
    (2) After contract award by unsuccessful offerors.
    (3) Upon termination or completion of the contract.
    (4) Upon notification that authorization to release classified 
information has been withdrawn.
    (5) After notification that a facility:
    (i) Does not have adequate means to safeguard classified 
information.
    (ii) Has had its security clearance revoked or inactivated.
    (6) Whenever otherwise instructed by the authority responsible for 
the security classification.

Subpart 504.5--Electronic Commerce in Contracting


504.500  Scope of subpart.

    This subpart provides policy and procedure for use of GSA's 
Electronic Posting System (EPS).


504.502  Policy.

    (a) The EPS is GSA's primary vehicle for disseminating synopses and 
written solicitations. GSA intends that the EPS will substitute for, 
not supplement, paper copies of solicitations. (Note that FAR 2.101 
defines ``in writing'' or ``written'' to include ``electronically 
transmitted and stored information.'')
    (b) This policy does not apply to orders placed against existing 
contracts, including Federal Supply Service schedule contracts.
    (c) Nothing in this policy limits your authority to obtain oral 
quotations or proposals as authorized by regulation (e.g., FAR 13.106-1 
or FAR 15.203(f)).


504.570  Procedures for using the EPS.

    (a) You must use the EPS to issue any synopsis required by FAR part 
5 or GSAR part 505.
    (b) You must issue each written solicitation on the EPS, except as 
provided in paragraphs (c)(2) and (d) of this section.
    (c) Although GSA intends that the EPS will substitute for paper 
copies of solicitations, web-based transactions are not practical in 
some industries or in some geographic areas at this time.
    (1) If you expect that electronic access to a solicitation will 
result in adequate competition, distribute the solicitation only 
through the EPS. Include the following notice in the related synopsis:

    GSA is issuing this solicitation only electronically. Interested 
parties may access the solicitation at http://www.eps.gov. This site 
provides instructions for downloading the solicitation file.

    (2) If you believe that distribution of paper copies is necessary 
to ensure adequate competition, document the file to justify 
distribution of paper copies. Include the notice in paragraph (c)(1) of 
this section in the related synopsis, leaving out the first sentence.
    (d) In some cases, release of construction drawings must be 
controlled to ensure adequate security. In other cases, an exhibit or 
attachment incorporated in a solicitation may not be available 
electronically. In either of these cases, you must explain in both the 
synopsis and the solicitation how interested parties may obtain a copy. 
In addition to the notice required by paragraph (c), include a notice 
substantially the same as follows in both the synopsis and 
solicitation. Tailor the notice as necessary for the particular 
acquisition.

    This solicitation incorporates documents which are not available 
electronically. See [Identify the solicitation section that lists 
the subject documents]. Interested parties may request copies of 
these documents by writing the Contracting Officer at the address in 
[Identify address block in the solicitation].

    (e) The Electronic Posting System Manual provides detailed 
instructions for using the EPS. The Manual is available at http://
www.eps.gov/buyer.html.

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

PART 505--PUBLICIZING CONTRACT ACTIONS

Subpart 501.1--Dissemination of Information

Sec.
505.101  Methods of disseminating information

Subpart 505.2--Synopses of Proposed Contract Actions

505.202  Exceptions
505.203  Publicizing and response time
501.270  Synopsis of amendments to solicitations

Subpart 505.5--Paid Advertisements

505.502  Authority

    Authority: 40 U.S.C. 486(c).

Subpart 505.1--Dissemination of Information


505.101  Methods of disseminating information.

    (a) In Regions with a Business Service Center (BSC), you may post 
the notice required by FAR 5.101(a)(2) at the BSC.
    (b) Use GSA's Electronic Posting System (EPS) to issue each 
synopsis required by FAR part 5 or GSAR part 505. When synopsizing a 
solicitation, include the appropriate notice(s) required by 504.570(c) 
and (d).
    (c) For acquisitions involving real property:

------------------------------------------------------------------------
                                                Then you must publicize
  If the acquisition is not exempt under FAR   the proposed acquisition--
         5.202 or GSAR 505.202, and--
------------------------------------------------------------------------
(1) The acquisition is for real property       (1) Either:
 appraisal services estimated to cost $25,000    (i) In local
 or more.                                       newspapers.
                                                 (ii) In the Commerce
                                                Business Daily through
                                                the EPS.

[[Page 37207]]

 
(2) The acquisition is for leasehold           (2) Either:
 interests in real property estimated to         (i) In local
 exceed 10,000 square feet (except lease        newspapers.
 construction on a preselected site).            (ii) In the Commerce
                                                Business Daily through
                                                the EPS.
(3) The acquisition is for a leasehold         (3) In the Commerce
 interest in a building to be constructed on    Business Daily through
 a preselected site.                            the EPS.
------------------------------------------------------------------------

    (d) You may publicize proposed leases of 10,000 square feet or less 
in local newspapers if it will serve to promote competition.

Subpart 505.2--Synopses of Proposed Contract Actions


505.202  Exceptions.

    The Administrator has determined under section 18(c)(3) of the 
Office of Federal Procurement Policy Act, as amended (41 U.S.C. 
416(c)(3)) and Section 8(g)(3) of the Small Business Act, as amended 
(15 U.S.C. 644(g)(3)) that:
    (a) Synopsizing in the CBD is not always appropriate for 
acquisitions of leasehold interests in real property (except lease 
construction on a designated site) or real property appraisal 
services.Your may publicize such contract actions following the 
procedures in 505.101 and 505.203.
    (b) It is not appropriate or reasonable to publish an advance 
notice of any of the following:
    (1) Acquisitions of works of art, including the design, execution 
and installation of the artwork, under the Art-in-Architecture Program.
    (2) Supplemental agreements to leases of real property involving 
any of the following:
    (i) Expansion requests within the scope of a lease (see 570.403).
    (ii) Lease extensions under the conditions defined in 570.405.
    (iii) Building alterations within the scope of a lease (see 570.5).


505.203  Publicizing and response time.

    (a) If you publicize in local newspapers under 505.101(c), ensure 
that the notice appears in local newspapers at least 3 calendar days 
before issuance of the solicitation. Except as provided in paragraph 
(B) of this section, allow at least these minimum response times:
    (1) For leasehold interests in real property, 20 calendar days 
between solicitation issuance and the date established for receipt of 
initial offers.
    (2) For real property appraisal services valued at less than either 
the Trade Agreements Act (TAA) threshold or the North American Free 
Trade Agreement (NAFTA) threshold, 10 calendar days between 
solicitation issuance and the date established for receipt of initial 
offers. The lower of the two thresholds governs.
    (3) For real property appraisal services valued at or over the TAA 
threshold or the NAFTA threshold, 40 calendar days from when the notice 
appears to receipt of initial offers. If the acquisition falls in a 
general category identified in an annual forecast, the period may be 
reduced to as few as 10 days. The lower of the two thresholds governs.
    (b) The following exceptions to the publicizing and response times 
in paragraph (a) of this section apply only to proposed acquisitions of 
leasehold interests in real property:
    (1) For a proposed acquisition conducted using simplified lease 
acquisition procedures (see 570.2), consider the individual acquisition 
and establish a reasonable response time.
    (2) In cases of urgency, provide as much time as possible and 
document the file.


505.270  Synopsis of amendments to solicitations.

    Synopsize in the CBD any solicitation amendment when the amendment 
either:
    (a) Increases the anticipated value of the proposed acquisition 
above the dollar threshold requiring synopsis.
    (b) Alters the scope of the proposed acquisition so that increased 
interest of contractors can be reasonably anticipated.

Subpart 505.5--Paid Advertisements


505.502  Authority.

    (a) Newspapers. The HCA, or designee, must approve publication of 
paid newspaper advertisements. Approval is not required if FAR 5.101 or 
505.101 requires publication. Document the contract file with the 
regulatory citation or written approval to support the use of paid 
newspaper advertisements.
    (b) Other media. Advance approval is not required to advertise in 
other media.

PART 509--Contractor Qualifications

Subpart 509.1--Responsible Prospective Contractors

Sec.
509.105 Procedures
509.105-1 Obtaining information
509.105-2 Determinations and documentation
509.106 Preaward surveys
509.106-2 Requests for preaward surveys

Subpart 509.2--Qualifications Requirements

509.206 Acquisitions subject to qualification requirements
509.206-2 Contract clause

Subpart 509.3--First Article Testing and Approval

509.306 Solicitation requirements
509.308 Contract clauses
509.308-1 Testing performed by the contractor
509.308-2 Testing performed by the Government

Subpart 509.4--Debarment, Suspension, and Ineligibility

509.401 Applicability
509.403 Definitions
509.405  Effect of listing
509.405-1 Continuation of current contracts
509.405-2 Restrictions on subcontracting
509.406 Debarment
509.406-1 General
509.406-3 Procedures
509.407 Suspension
509.407-1 General
509.407-3 Procedures

    Authority: 40 U.S.C. 486(c).

Subpart 509.1--Responsible Prospective Contractors


509.105  Procedures.


509.105-1  Obtaining information.

    (a) From a prospective contractor. In making a determination of 
responsibility, you may use the GSA Form 527, Contractor's 
Qualification and Financial Information, to obtain information 
regarding financial capability from a prospective contractor.
    (b) From Government personnel. Solicit and consider information 
from all appropriate activities, including legal counsel, quality 
control, contract management, credit and finance, and the auditor 
before determining that an offeror is responsible. ``Auditor'' is 
either:

[[Page 37208]]

    (1) The Assistant Inspector General for Auditing (Central Office 
only).
    (2) The Regional Inspector General for Auditing.
    (3) Chief, Credit and Finance Section, the Heartland Region (for an 
evaluation of a prospective contractor's financial competence and 
credit).


509.105-2   Determinations and documentation.

    (a) Provide written notification to a prospective contractor you 
determine not responsible. Include the basis for the determination. 
Notification provides the prospective contractor with the opportunity 
to correct any problem for future solicitation.
    (b) Due to the potential for de facto debarment, avoid making 
repeated determinations of nonresponsiblity based on the same past 
performance information.
    (c) To provide for timely consideration of the need to institute 
action to debar a contractor, submit a copy of each nonresponsibility 
determination, other than those based on capacity or financial 
capability, to the debarring official.


509.106   Preaward surveys.


509.106-2   Requests for preaward surveys.

    Federal Supply Service (FSS). Contracting activities in FSS may use 
GSA Form 353, Performance Evaluation & Facilities Report, in lieu of SF 
1403 through 1406. Complete Section I in accordance with instructions 
in 553.370-353-I.

Subpart 509.2--Qualifications Requirements


509.206   Acquisitions subject to qualification requirements.


509.206-2   Contract clause.

    Insert 552.209-70, Product Removal from Qualified Products List, in 
solicitations and contracts containing FAR 52.209-1, Qualification 
Requirements.

Subpart 509.3--First Article Testing and Approval


509.306   Solicitation requirements.

    (a) The clauses at FAR 52.209-3 and 52.209-4 do not cover all the 
solicitation requirements described in FAR 9.306. If a solicitation 
contains a testing and approval requirement, you must address the 
requirements in FAR 9.306 (d), (f), (g), (h), (i), and (j). For FSS, 
the clauses prescribed in 509.308 address the requirement in FAR 
9.306(h).
    (b) In FSS solicitations that contain FAR 52.209-3, First Article 
Approval--Contractor Testing, or FAR 52.209-4, First Article Approval--
Government Testing, insert 552.209-71, Waiver of First Article Testing 
and Approval Requirement.


509.308   Contract clauses.


509.308-1   Testing performed by the contractor.

    In FSS solicitations and contracts that will require the contractor 
to perform testing, insert 552.209-72, Supplemental Requirements for 
First Article Approval--Contractor Testing, and FAR 52.209-3, Alternate 
I.


509.308-2  Testing performed by the Government.

    In FSS solicitations and contracts that will have the Government 
responsible for first article testing, insert 552.209.73, Supplemental 
Requirements for First Article Approval--Government Testing, and FAR 
52.209-4, Alternate I.

Subpart 509.4--Debarment, Suspension, and Ineligibility


509.401   Applicability.

    This subpart applies to all the following:
    (a) Acquisitions of personal property, nonpersonal services 
(including construction), space in buildings, transportation services 
(Federal Property Management Regulations (FPMR) Subpart 101-40.4).
    (b) The purchase, sale, and disposal of real property.
    (c) Contracts for disposal of personal property (FPMR Subpart 101-
45.6).
    (d) Covered transactions as defined at General Services Property 
Management Regulations (GSPMR) 105-68.110(a).


509.403  Definitions.

    Fact-finding official, means the Chairman of the Debarment and 
Suspension Board within the GSA Board of Contract Appeals or a 
designee.
    Notice means a letter sent by certified mail, return receipt 
requested, to the last known address of a party, its counsel, or agent 
for service of process. In the case of a business, such notice may be 
sent to any partner, principal officer, director, owner or co-owner, or 
joint venturer. If no return receipt is received within 10 calendar 
days of mailing, receipt will then be presumed.


509.405  Effect of listing.


509.405-1  Continuation of current contracts.

    (a) Consider terminating a current contract under any of the 
following circumstances:
     (1) Any of the circumstances giving rise to the debarment or 
suspension also constitute a default in the contractor's performance of 
the contract.
    (2) The contractor presents a significant risk to the Government in 
completing the contract.
    (3) The conduct that provides the cause of the suspension, proposed 
debarment, or debarment involved a GSA contract.
    (b) Determine which of the following is in the Government's best 
interest:
    (1) Terminate the contract for either convenience or cause.
    (2) Cancel under appropriate contract clauses (e.g., 552.238-73, 
Cancellation).
    (3) Use other available alternatives under:
    (i) FAR 3.2 and 503.2.
    (ii) FAR 3.7 and 503.7.
    (c) Before making a decision, consult with legal counsel and 
consider these factors:
    (1) Seriousness of the cause for debarment or suspension.
    (2) Extent of contract performance.
    (3) Potential costs of termination and reprocurement.
    (4) Need for or urgency of the requirement, contract coverage, and 
the impact of delay for reprocurement.
    (5) Availability of other safeguards to protect the Government's 
interest until completion of the contract.
    (6) Availability of alternate competitive sources to meet the 
requirement (e.g., other multiple award contracts, readily available 
commercial items, etc.).
    (d) The debarring official is the designee under FAR 9.405-1(c).


509.405-2  Restrictions on subcontracting.

    The debarring official is the designee under FAR 9.405-2(a).


509.406  Debarment.


509.406-1  General.

    The debarring official is the designee under FAR 9.406-1(c).


509.406-3  Procedures.

    (a) Investigation and referral.
    (1) Refer to the debarring official matters involving serious 
contract improprieties or performance deficiencies. Performance 
deficiencies that continue over a period of time or apply to more than 
one contract may warrant debarment consideration.
    (2) Refer possible criminal or fraudulent activities to the Office 
of the Inspector General (OIG). See 5 CFR 6701.107, Reporting Waste, 
Fraud, Abuse, and Corruption. If, after investigation, the OIG believes 
a cause for debarment exists, it will refer the matter to the debarring 
official for consideration of debarment action.

[[Page 37209]]

    (b) Reports. Include in referrals to the debarring official a 
report that contains at least the following:
    (1) The recommendation and supporting rationale.
    (2) A list of parties to be considered for possible debarment, 
including the contractor, principals, and affiliates. Include last 
known home and business addresses, zip codes, and DUNS Number.
    (3) A statement of facts.
    (4) Copies of documentary evidence and a list of witnesses. Include 
addresses and telephone numbers. Determine their availability to appear 
at a fact-finding proceeding and identify the subject matter of their 
testimony.
    (5) GSA's acquisition history with the contractor. Include recent 
experience, copies of the pertinent contracts, and an explanation of 
impact debarment would have on GSA programs. OIG referrals do not 
require this explanation; the debarring official will obtain the 
information directly from the contracting activity(s).
    (6) A list of any known active or potential criminal 
investigations, criminal or civil proceedings, or administrative claims 
before the Board of Contract Appeals.
    (7) A statement regarding the impact of the debarment action on GSA 
programs. This statement is not required for referrals by the Inspector 
General; the debarring official will obtain a statement directly from 
the contracting activity(s).
    (c) Review. The debarring official will review the report, and 
after coordinating with assigned legal counsel, either:
    (1) Initiate debarment action.
    (2) Decline debarment action.
    (3) Request additional information.
    (4) Refer the matter to the OIG for further investigation and 
development of a case file.
    (d) Decisionmaking process.
    (1) The debarring official will provide:
    (i) Notice of declinations, proposed debarments, and decisions to 
the referring activity.
    (ii) Notice of proposed debarment to each party being considered 
for debarment.
    (iii) Decision notices to each party after considering information 
in the administrative record and information and argument submitted by 
the affected party or parties.
    (2) A party proposed for debarment:
    (i) Has 30 calendar days after receipt of the notice to respond to 
the debarring official or the debarment becomes final.
    (ii) May request and receive a copy of the administrative record 
that was the basis for the proposed debarment. If information is 
withheld, the party will be notified and provided the reason.
    (iii) May request the opportunity to present information and 
argument in person to the debarring official. The debarring official 
will schedule an oral presentation within 20 calendar days of receipt 
of the request, unless a longer period of time is requested by the 
party. An oral presentation is informal and a transcript usually is not 
made. The party may supplement the oral presentation with written 
information and arguments.
    (iv) May identify to the debarring official material facts in 
dispute and the bases. For an action other than one based on a 
conviction of civil judgment, a party may request review and a written 
finding by a fact-finding official.
    (3) The debarring official will determine whether there is a 
genuine dispute of material fact. If so, the debarring official refers 
the matter to a fact-finding official, who will take the following 
action as appropriate:
    (i) Schedule a hearing within 20 calendar days after receipt of a 
request to resolve disputed facts.
    (ii) Grant extensions for good cause.
    (iii) Provide notice of scheduled hearing.
    (iv) Conduct hearings under rules consistent with FAR 9.406-
3(b)(2).
    (v)Resolve facts in dispute and provide the debarring official with 
written findings of fact based on a preponderance of the evidence. The 
fact-finding official provides the written findings of fact (together 
with a transcription of the proceeding, unless waived) within 20 
calendar days after the hearing record closes.


509.407  Suspension.


Sec. 509.407-1  General.

    The suspending official is the designee under FAR 9.407-1(d).


Sec. 509.407-3  Procedures.

    (a) General. The procedures in 509.406-3 apply to suspension 
actions except as noted in paragraph (b) of this section.
    (b) Fact-finding.
    (1) Fact-finding will not be conducted in an action:
    (i) Based on an indictment.
    (ii) When the suspending official finds no genuine dispute of 
material facts.
    (2) If the action is not based on an indictment, the suspending 
official must coordinate with the Department of Justice or state 
prosecutorial authority through OIG. Based on the advice received, the 
suspending official will determine if fact-finding would impair 
substantial interests of the Federal or state Government. In an action 
not based on an indictment, a suspended party may:
    (i) Identify to the suspending official material facts in dispute 
and the bases.
    (ii) Request review and a written finding by a fact-finding 
official to resolve genuine disputes of material fact. For procedures 
involving a genuine dispute of material fact, see 509.406-3(d)(3).

PART 511--DESCRIBING AGENCY NEEDS

Subpart 511.1--Selecting and Developing Requirements Documents

Sec.
511.170  Use of brand name or equal product descriptions
511.170-3  Solicitation provisions

Subpart 511.2--Using and Maintaining Requirements Documents

511.204  Solicitation provisions and contract clauses

Subpart 511.4--Delivery or Performance Schedules

511.404  Contract clauses

    Authority: 40 U.S.C. 486(c).

Subpart 511.1--Selecting and Developing Requirements Documents


511.170  Use of brand name or equal product descriptions.


511.170-3  Solicitation provisions.

    (a) Include the following immediately after each brand name or 
equal item description, with instructions for the offeror to complete 
the information:

    Offering on:

Manufacturer's Name----------------------------------------------------

Brand------------------------------------------------------------------

Model or Part No.------------------------------------------------------

    (b) If the solicitation does not require samples for ``or equal'' 
offers, include the following notice in the list of brand name or equal 
items or component parts:

Notice

    If you offer other than brand name items identified in this 
solicitation, you must provide adequate information for GSA to 
determine the quality of the product(s) offered.

    (c) Include a provision substantially the same as the one at 
552.211-70, Brand Name or Equal, when you use a brand name or equal 
purchase description.
    (d) If you use brand name or equal descriptions for component parts 
of an end item and the provision at 552.211-70 is impractical for some 
or all of the components, you may either:
    (1) Not use the provision.
    (2) Limit its application to specified components.

[[Page 37210]]

Subpart 511.2--Using and Maintaining Requirements Documents


511.204  Solicitation provisions and contract clauses.

    (a) Construction services. Insert the clause at 552.211-71, 
Standard References, in solicitations and contracts for construction 
services when you expect the contract amount to exceed the simplified 
acquisition threshold, and the solicitation meets either of the 
following conditions:
    (1) The solicitation cites documents or publications not furnished 
with the solicitation.
    (2) The solicitation incorporates documents or publications by 
reference.
    (b) Federal specifications. Insert the clause at 552.211-72, 
Reference to Specifications in Drawings, in solicitations and contracts 
citing Federal specifications which contain drawings.
    (c) Supply contracts that exceed the simplified acquisition 
threshold.
    (1) Include the clause at 552.211-73, Marking, in solicitations and 
contracts for supplies when deliveries may be made to both civilian and 
military activities and the contract amount is expected to exceed the 
simplified acquisition threshold.
    (2) Include the clause at 552.211-74, Charges for Marking, in 
solicitations and contracts that include the clause at 552.211-73 or a 
similar clause.
    (3) Include the clause at 552.211-75, Preservation, Packaging and 
Packing, in solicitations and contracts for supplies expected to exceed 
the simplified acquisition threshold. You may also include the clause 
in contracts estimated to be at or below the simplified acquisition 
threshold when appropriate.
    (4) Insert a clause substantially the same as the clause at 
552.211-76, Charges for Packaging and Packing, in solicitations and 
contracts for supplies to be delivered to GSA distribution centers.
    (d) Supply contracts. Include the clause at 552.211-77, Packing 
List, in solicitations and contracts for supplies, including purchases 
over the micropurchase threshold.

Subpart 511.4--Delivery or Performance Schedules


511.404  Contract clauses.

    (a) Supply contracts.
    (1) Single award schedules. Insert 552.211-8, Time of Delivery, in 
solicitations and contracts instead of the clause at FAR 52.211-8. If 
you need to show different delivery times for different items or groups 
of items, use Alternate I.
    (2) Multiple award schedules. Insert 552.211-78, Commercial 
Delivery Schedule (Multiple Award Schedule), in solicitations issued 
and contracts awarded under the multiple award schedule program.
    (3) Shelf-life items. Use the following clauses in solicitations 
and contracts that require delivery of shelf-life items within a 
specified number of months from the date of manufacture or production 
(see 101-27.206-2 of the Federal Property Management Regulation):
    (i) Insert 552.211-79, Acceptable Age of Supplies, if the required 
shelf-life period is 12 months or less, and lengthy acceptance testing 
may be involved. For items having a limited shelf-life, substitute 
Alternate I when required by the director of the commodity center 
concerned.
    (ii) Insert 552.211-80, Age on Delivery, if the required shelf-life 
period is more than 12 months, or when source inspection can be 
performed within a short time period.
    (4) Stock replenishment contracts. Insert 552.211-81, Time of 
Shipment, in solicitations and stock replenishment contracts that do 
not include the Availability for Inspection, Testing and Shipment/
Delivery clause at 552.211-83 and require shipment within 45 calendar 
days after receipt of the order. If shipment is required in more than 
45 days, use Alternate I.
    (5) Notice of shipment. Include 552.211-82, Notice of Shipment, in 
solicitation and contracts for supplies when you need to have a notice 
of shipment from the contractor.
    (6) Indeterminate testing time. Insert 552.211-83, Availability for 
Inspection, Testing and Shipment/Delivery, in solicitations and 
contracts that provide for source inspection by Government personnel 
and that require lengthy testing for which time frames cannot be 
determined in advance. If the contract is for stock items, use 
Alternate I.
    (b) Construction contracts. Insert the clause at 552.211-84, Non-
Compliance with Contract Requirements, in solicitations and contracts 
for construction when you expect the contract amount to exceed the 
simplified acquisition threshold.

PART 512--ACQUISITION OF COMMERCIAL ITEMS

Subpart 512.3--Solicitation Provisions and Contract Clauses for the 
Acquisition of Commercial Items

Sec.
512.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items

    Authority: 40 U.S.C. 486(c).

Subpart 512.3--Solicitation Provisions and Contract Clauses for the 
Acquisition of Commercial Items


512.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (a) Solicitation provisions and clauses. Insert these provisions or 
clauses in solicitations or solicitations and contracts, respectively, 
in accordance with the instructions provided:
    (1) 552.212-70, Preparation of Offer (Multiple Award Schedule), in 
solicitations and contracts issued under the multiple award schedule 
program.
    (2) 552.213-71, Contract Terms and Conditions Applicable to GSA 
Acquisition of Commercial Items, when listed clauses apply. The clause 
provides for incorporation by reference of terms and conditions which 
are, to the maximum extent practicable, consistent with customary 
commercial practice. If necessary, tailor this clause.
    (3) 552.212-72, Contract Terms and Conditions Required to Implement 
Statutes of Executive Orders Applicable to GSA Acquisitions of 
Commercial Items, when listed clauses apply.
    (i) The clause provides for the incorporation by reference of terms 
and conditions required to implement provisions of law or executive 
orders that apply to commercial item acquisitions.
    (ii) As a result of the General Services Administration Board of 
Contract Appeals (GSBCA) decision in the protest of International 
Business Machines Corporation GSBCA 90-2 BCA P22,924, May 18, 1990, GSA 
solicitations and contracts will deviate from FAR 52.225-8, Buy 
American Act-Trade Agreements-Balance of Payments Program Certificate. 
Incorporate 552.225-8, Buy American Act-Trade Agreements-Balance of 
Payments Program Certificate, and 552.225-9, Buy American Act-Trade 
Agreements-Balance of Payments Program, in solicitations and contracts 
subject to the Trade Agreement Act. Use them instead of FAR 52.225-8 
and 52.225-9 (referenced in FAR 52.212-3 and 52.212-5 respectively).

[[Page 37211]]

    (4) 552.213-73, Evaluation-Commercial Items (Multiple Award 
Schedule), in multiple award schedule solicitations. Use this provision 
instead of FAR 52.212-2.
    (b) Use of required provisions and clauses. Use only those 
provisions and clauses prescribed in this part. Unless the use of a 
provision or clause prescribed elsewhere in the GSAR is consistent with 
customary commercial practice for the item being acquired, disregard 
contrary instructions. Provisions and clauses prescribed in this part 
will be revised to reflect the applicability of new statutes and 
executive orders.
    (c) Discretionary use of GSAR provisions and clauses. Consistent 
with the limitations contained in FAR 12.302(c), include in 
solicitations and contracts by addendum other GSAR provisions and 
clauses.
    (d) Use of additional provisions and clauses. The Senior 
Procurement Executive must approve the use of a provision or clause 
that is either not:
    (1) Prescribed in the FAR or GSAR for use in contracts for 
commercial items.
    (2) Consistent with customary commercial practice.

SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES

PART 513--SIMPLIFIED ACQUISITION PROCEDURES

Subpart 513.3--Simplified Acquisition Methods

Sec.
513.302  Purchase orders.
513.302-70  Purchase orders and related forms.
513.303  Blanket purchase agreements (BPAs).
513.303-3  Preparation of BPAs.
513.307  Forms.

    Authority: 40 U.S.C. 486(c).

Subpart 513.3--Simplified Acquisition Methods


513.302  Purchase orders.


513.302-70  Purchase order and related forms.

    (a) See GSA Order, Interim Guidance on Use of the Governmentwide 
Commercial Purchase Card Service (OAD 4200.8), for forms required for 
purchase card actions.
    (b) Use GSA Form 3000 or 300-1 (pin-feed format), Order for 
Supplies and Services, instead of OF 347, Order for Supplies or 
Services, when making purchases payable through the National Electronic 
Accounting and Reporting (NEAR) System.
    (1) This form may also be used to make other purchases when a 
specific form is not prescribed. It may be used as a delivery or task 
order instead of SF 1449, Solicitation/Contract/Order for Commercial 
Items.
    (2) Prepare and process GSA Form 300 following the instructions at 
553.370-300-I. Use GSA Form 300A or 300-A(1) (pin-feed format), order 
for Supplies or Services (continuation), if additional space is needed.
    (c) Use GSA Form 1458, Motor Vehicle Shop Work Order, Repair and 
Purchase Order, instead of the OF 347 when making purchases in 
connection with the maintenance, servicing or repair of GSA fleet 
management vehicles.
    (d) Use GSA Form 3186, Order for Supplies or Services or GSA Form 
3186-B, Order for Supplies or Services (EDI), instead of OF 347, Order 
for Supplies or Services, when making simplified acquisitions or 
placing orders against established contracts through the FSS-19 system.
    (1) Use GSA Form 3186 for mail orders placed against established 
contracts.
    (2) Document the file for a delivery, task, or purchase order 
transmitted to contractors electronically using Electronic Data 
Interchange (EDI) procedures by generating a GSA Form 3186-B.
    (e) Use GSA Form 8002B, Motor Vehicle Delivery Order, to order 
fleet management vehicles. Do not use this form as a purchase order for 
simplified acquisitions. Use GSA Form 8002A to notify the consignee of 
the status of motor vehicle requisitions.


513.303  Blanket purchase agreements (BPAs).


513.303-3  Preparation of BPAs.

    (a) Description of agreement. Describe limitations, if any, on the 
geographic area to be served.
    (b) Delivery tickets. Instruct the contractor to include the name 
of the individual placing the order on the delivery ticket. The 
individual receiving the item or service must sign and date the 
delivery or service ticket. Both the supplier and the receiving office 
must retain a copy of the delivery ticket.


513.307  Forms.

    You may use the GSA Form 3521, Blanket Purchase Agreement, to 
prepare a blanket purchase agreement.

PART 514--SEALED BIDDING

Subpart 514.2--Solicitation of Bids

Sec.
514.201  Preparation of invitations for bids.
514.201-1  Uniform contract format.
514.201-2  Part I--The Schedule.
514.201-6  Solicitation provisions.
514.201-7  Contract clauses.
514.202  General rules for solicitation of bids.
514.202-4  Bid samples.
514.203  Methods of soliciting bids.
514.203-1  Transmittal to prospective bidders.
514.270  Aggregate awards.
514.270-1  Definition.
514.270-2  Guidelines for use.
514.270-3  Evaluation factors for award.
514.270-4  Grouping line items for aggregate award.
514.270-5  Evaluation methodologies for aggregate awards.
514.270-6  Guidelines for using the weight factors method.
514.270-7  Guidelines for using the price list method.

Subpart 514.4--Opening of Bids and Award of Contract

514.407  Mistakes in bids.
514.407-3  Other mistakes disclosed before award.
514.407-4  Mistakes after award.

    Authority: 40 U.S.C. 486(c).

Subpart 514.2--Solicitation of Bids


514.201  Preparation of invitations for bids.


514.201-1  Uniform contract format.

    Include the following notice in each solicitation:

    The information collection requirements contained in this 
solicitation/contract, are either required by regulation or approved 
by the Office of Management and Budget pursuant to the Paperwork 
Reduction Act and assigned OMB Control No. 3090-0162.


514.201-2  Part I--The Schedule.

    (a) When you use Standard Form 33, Solicitation, Offer and Award, 
include the following cautionary notice:

    Notice to Bidders--Use Item 13 of the Standard Form 33, 
Solicitation, Offer and Award, to offer prompt payment discounts. 
The Prompt Payment clause of this solicitation sets forth payment 
terms. Do not insert any statement in Item 13 which requires payment 
sooner than the time stipulated in the Prompt Payment clause. 
Example: If you insert ``NET 20'' in Item 13, GSA will reject your 
offer as nonresponsive because the entry contradicts the 30 day 
payment terms specified in the Prompt Payment clause.

    (b) When you use any other authorized form (e.g., Standard Form 
1447, Solicitation/Contract), include the notice in paragraph (a) of 
this section. Change the reference to the form number, form title, and 
item number accordingly.


Sec. 514.201-6  Solicitation provisions.

    When you will consider all or none bids, insert the provision at 
552.214-70, ``All or None'' Offers, in the solicitation. For 
requirements or indefinite quantity

[[Page 37212]]

contracts, use Alternate I. Do not include this provision in 
solicitations when you require the bidder to submit bids on all items 
and will make only one award.


514.201-7  Contract clauses.

    (a) Stock replenishment contracts. For some stock replenishment 
contracts, individual contractors may be unable to furnish the 
Government's monthly requirements. You may determine that progressive 
awards will be more expedient. In such cases, insert a clause 
substantially the same as the clause 552.214-71, Progressive Awards and 
Monthly Quantity Allocations, in the solicitation and contract.
    (b) Examinations of Records.
    (1) Insert 552.214-70, Examination of Records by GSA, in 
solicitations and contracts for supplies or services that exceed 
$100,000, and acquisitions of leasehold interests in real property that 
exceed the simplified lease acquisition threshold, that meet at least 
one of the following conditions:
    (i) Involve the use or disposition of Government-furnished 
property.
    (ii) Provide for advance payments, progress payments based on cost, 
or guaranteed loan.
    (iii) Contain a price warranty or price reduction clause.
    (iv) Include an economic price adjustment clause where the 
adjustment is not based solely on an established, third party index.
    (v) Are requirements, indefinite-quantity, or letter contracts as 
defined in FAR part 16.
    (vi) Contain the provision at FAR 52.223-4, Recovered Materials 
Certification.
    (2) You may modify the clause to define the specific area of audit 
(e.g., the use or disposition of Government-furnished property). Legal 
Counsel and the Assistant Inspector General--Auditing or Regional 
Inspector General--Auditing, as appropriate, must concur in any 
modifications to the clause.


514.202  General rules for solicitation of bids.


514.202-4  Bid samples.

    (a) Solicitation requirements.
    (1) When you require bid samples, require bidders to submit samples 
produced by the manufacturer whose products will be supplied under the 
contract.
    (2) The FAR limits use of bid samples to cases where you cannot 
describe some characteristics of a product adequately in the 
specification or purchase description. This usually applies to 
subjective characteristics. You may determine that you need to examine 
objective characteristics of bid samples to determine the 
responsiveness of a bid. Base your determination on past experience or 
other valid considerations. In the solicitation, separately list 
``Subjective Characteristics'' and ``Objective Characteristics.''
    (3) A sample provision appears at 552.214-72, Bid Sample 
Requirements. You may use this provision as shown or modify it to fit 
the circumstances of a procurement.
    (b) Handling and disposition of samples.
    (1) Retain samples from accepted bids for the period of contract 
performance. If you have no outstanding claims regarding the contract, 
dispose of the samples at the end of the contract term following the 
bidder's instructions.
    (2) If you anticipate a claim regarding the contract, retain the 
bid samples until the claim is resolved.
    (3) Retain samples from unsuccessful bids until you make award. 
After award, dispose of these samples following the bidder's 
instructions.
    (c) Using bid samples. Include the information required by FAR 
14.202-4(e) in the solicitation. Provide the number, size, and full 
description of samples with instructions on how to submit bids. List 
the characteristics that you will examine. The list needs to include 
any aspect of the bid sample the acquisition team will examine to 
determine the product(s) acceptability.


514.203  Methods of soliciting bids.


514.203-1  Transmittal to prospective bidders.

    Prospective bidders, as used in FAR 14.203-1, include both the 
following:
    (a) The incumbent contractor, except when its written response to 
the notice of contract action under FAR subpart 5.2 states a negative 
interest.
    (b) Bidders that responded to recent solicitations for the same or 
similar items.


514.270  Aggregate awards.


514.270-1  Definition.

    Aggregate award means an arrangement whereby two or more 
separately-priced line items are combined for award to that bidder 
whose bid will result in the lowest overall cost to the Government for 
the line items as a group. The individual price for each item does not 
have to be the lowest bid received. (See also the definition of a 
``line item'' in FAR 3.302.)


514.270-2  Guidelines for use.

    (a) GSA usually solicits prices and reserves the right to make 
award for individual line items. In some cases it serves GSA's best 
interest to combine two or more line items for an aggregate award. Such 
cases include when:
    (1) Users desire uniformity of design, style, and finish (e.g., 
suites of household furniture).
    (2) The articles will be assembled and used as a unit, and 
different manufacturers' components may not be interchangeable.
    (3) Users have high demand for certain articles, but demand for 
related articles is insufficient to attract competitive bids (e.g., 
various sized of socket wrenches). Awarding the low-demand articles in 
conjunction with the high-demand articles may encourage competition.
    (4) One location (delivery point) has a large requirement, and 
another location has a requirement too small to individually attract 
competitive bids.
    (5) Awarding and administering numerous small contracts for similar 
articles or services is impractical.
    (b) Before deciding to combine items for aggregate award, consider 
the following factors:
    (1) The capability of bidders to furnish the types and quantities 
of supplies or services in the aggregate.
    (2) How grouping delivery points will affect bidders.
    (3) Which combinations will accurately project the lowest overall 
cost to the Government.
    (c) Do not use an aggregate award if it will significantly restrict 
the number of eligible bidders.


514.270-3  Evaluation factors for award.

    Clearly state in the solicitation the basis for evaluating bids for 
aggregate award. Require bidders to submit a price on each item within 
the group or a percentage to be added or subtracted from a list price. 
Advise bidders that failure to submit prices as required within a group 
makes a bid ineligible for award for that group.


514.270-4  Grouping line items for aggregate award.

    (a) Type of contract. While this section addresses supply contracts 
(articles and delivery points), the same principles apply to service 
contracts (types of services and service areas).
    (b) Effect on compeition. Provide for full and open competition 
when you group items for award. Grouping items for award may preclude a 
significant of firms from bidding. This occurs if firms are unable to 
provide all the types or quanities of supplies or services, or

[[Page 37213]]

make deliveries to the various delivery points included in the 
prospective aggregate group.
    (c) Grouping different articles. Include only related articles in 
an aggregate group. Related articles are those normally manufactured or 
produced by a majority of prospective bidders. Grouping unrelated 
articles often restricts competition unnecessarily.
    (d) Grouping geographic locations or delivery points. Consider the 
following guidelines before deciding to group different geographic 
locations or delivery points:
    (1) A delivery point may have sufficient requirements so that 
individual shipments involve economic production runs and carload or 
truckload quanities. In this case, list it as a separate line item.
    (2) The types of bidders (i.e., small or large firms, manufacturers 
or distributors, etc.) who respond to previous solicitations can 
provide important information. For example, if previous bidders are 
distributors with franchises in certain territories, grouping different 
territories could tend to restrict competition.
    (3) Transportation costs can affect competition and pricing. They 
may constitute a significant portion of the total delivered cost. 
Obtain the advice and assistance of transportation specialists before 
grouping geographic locations or delivery points. Depending upon the 
supplies being acquired:
    (i) Grouping widespread geographic locations or delivery points may 
reduce competition or result in higher prices. It can cause you to lose 
``area pricing'' advantages provided by a supplier with a single 
production point.
    (ii) Conversely, for many small commercial items (hand tools, 
locks, etc.), manufacturers may quote the same price for delivery 
anywhere in the U.S..
    (iii) Tariff boundaries can also affect how manufacturers price 
deliveries to different areas.


514.270-5  Evaluation methodologies for aggregate awards.

    (a) Definite quantity contracts without options. For definite 
quantity contracts without options, the evaluated bid price is the 
total bid price, as adjusted for any price-related factors identified 
in the solicitation. This reflects the actual cost to the Government 
and will identify the most advantageous bid.
    (b) Indefinite quantity contracts, requirements contracts, and 
options. Indefinite quantity and requirements contracts use estimated 
quantities. Options involve the probability of whether and when the 
options will be exercised. These situations may result in unbalanced 
bids (see FAR 15.404-1(g)), leading to inaccurate evaluation of the 
projected cost and award to other than the most advantageous bid. To 
avoid unbalanced bids, GSA has two preferred methods for evaluating 
bids for aggregate awards: weight factors and price list.
    (1) Weight factors method. Assign a weight to each item in a group. 
The weight is based on the portion of quantities that item represents. 
To evaluate bids, multiply each unit price by its weight factor, then 
total the results.
    (2) Price list method. Establish prices for bidders to use as a 
base for preparing their bids. Prepare a list that identifies a base 
price for each item in a group. Bidders bid a percentage factor to add 
to or subtract from the base price.


514.270-6  Guidelines for using the weight factors method.

    (a) Use the weight factors method when you have reliable estimates 
for the quantities needed in an acquisition. Reliable estimates of 
quantities form the foundation for:
    (1) Accurate evaluation of the projected cost of each bid.
    (2) An appropriate determination of which bid is most advantageous 
to the Government for the aggregate group.
    (b) Assign a weight factor to each item in a group. Develop the 
weight factor by calculating the portion of the total quantity in a 
defined group that each item represents.
    (c) To evaluate bid prices, first multiply the price bid for each 
item (unit price X quantity) by its weight factor. Then, add the 
subtotals together to project the cost for the aggregate group.
    (d) You may reduce estimated quantities to smaller numbers by a 
common denominator. This may help facilitate the computations involved 
in evaluating bids.
    (e) Consider all price-related factors you identified in the 
solicitation. Award to the responsive and responsible bidder with the 
lowest evaluated overall cost to the Government for the aggregate 
group. This represents the most advantageous bid.


514.270-7  Guidelines for using the price list method.

    (a) General. The price list method helps avoid unbalanced bidding 
when you need to make aggregate awards, but lack accurate estimates of 
anticipated quantities. This method establishes base prices for bidders 
to use in preparing their bids.
    (b) Solicitation requirements. When you use the price list methods, 
in the solicitation:
    (1) Include the price list.
    (2) Include an estimate of requirements.
    (3) Require the bidder to express its price as ``net'' or as a 
percentage added to or subtracted from the list prices for each group. 
Require the bidder to quote only one percentage factor for each group. 
This means that the bidder provides one percentage factor that applies 
to every item in a group; not a separate percentage for each item. 
``Net'' indicates the bidder chooses to submit the list prices as its 
bid.
    (4) Identify the percentage factor in paragraph (b)(3) of this 
section as a price related evaluation factor.
    (c) Developing list prices. You may develop price lists using one 
or more of the following sources:
    (1) Industry published prices.
    (2) Industry surveys.
    (3) Government cost estimates based on knowledge of the supplies or 
services and previous contract prices.
    (d) First time use for an item or service. The first time you use 
list prices for an item or service, give prospective bidders an 
opportunity to review the proposed list. Also provide information on 
how GSA will use the list prices. You may provide this information in a 
draft solicitation.
    (e) Balanced prices. Ensure that the list prices for the grouped 
items bear a reasonable and balanced relationship to one another. You 
may use prices from previous awards made using the weight factors 
method to develop price lists. Review those prices first to ensure they 
did not result from unbalanced bidding.
    (f) Evaluation and award. Consider all price-related factors 
identified in the solicitation. Award to the responsive and responsible 
bidder whose percentage factor produces the most favorable price to the 
Government. This represents the most advantageous bid.
    (g) Example. The following illustrates a bidding schedule 
arrangement for a group of items for aggregate award under the price 
list method:

[[Page 37214]]



 Drills, Twist, High Speed, Under Federal Specification (No. and Date), and Amendment (No. and Date), Amendment
                      (No. and Date) Wire Gauge Sizes, Straight Shank, Short Length, Type C
----------------------------------------------------------------------------------------------------------------
     Item No.        National Stock No.       Drill size       Est. quantity         Unit           List price
----------------------------------------------------------------------------------------------------------------
                                          Group 1 (Items 1 through 5)
----------------------------------------------------------------------------------------------------------------
1.................      5133-00-189-9246  1.................           2,800  Pkg...............          $11.16
2.................      5133-00-189-9247  2.................           2,400  Pkg...............           11.16
3.................      5133-00-189-9248  3.................           2,800  Pkg...............           10.44
4.................      5133-00-189-9249  4.................           1,600  Pkg...............           10.80
5.................      5133-00-189-9250  5.................           2,000  Pkg...............           10.80
----------------------------------------------------------------------------------------------------------------

    The bid on each item above is the list price shown minus/plus ____ 
percent. (Bidder, insert ``net'' or a single percentage amount in the 
blank space and cross out minus or plus, as appropriate.)
    (h) Special considerations for contracts for store stock items. 
Show estimated quantities only if estimates of demand for each item 
within a group can be derived from Government records or verified 
contractor sales reports. Use only current estimates. If you cannot 
estimate the Government's needs, the solicitation may include past 
orders. (See CG Decision, B-209037, 82-2 CPD para 323 (1982).)
    (i) Special considerations for repair and alteration contracts. In 
the solicitation:
    (1) List the estimated quantities for work to be performed during 
both normal working hours and outside of normal working hours.
    (2) State the percent of work anticipated to be performed during 
normal working hours.
    (3) List the unit prices for work to be performed during both 
normal working hours and outside of normal working hours.
    (4) Define ``normal'' in terms of hours and days of the week.
    (5) Advise bidders of the previous year's total expenditures or 
portions of that total attributable to the listed items.
    (6) If you provide quantity estimates, state that the estimates are 
for information only and do not constitute guarantees or commitments to 
order items under the contract.
    (7) Solicit two percentage factors for the line item unit prices 
listed: one for the unit prices for work performed during normal 
working hours and the second for the unit prices for work performed 
outside of normal working hours.
    (8) You may require multiple percentages when the solicitation 
further groups unit prices by trade or business category.
    (9) For the evaluated bid price, add together the following 
percentages:
    (i) The percentage of work performed during normal work hours 
multiplied by the total estimate adjusted by the bidder's percentage 
factor for that portion of the work, plus
    (ii) The percentage of work performed during other than normal 
working hours multiplied by the total estimate adjusted by the bidder's 
percentage factor for that portion of the work.
    (10) Consider other price-related factors identified in the 
solicitation. Make award to the responsible and responsive bidder 
submitting the lowest overall evaluated bid price for the aggregate 
group. This represents the most advantageous bid.

Subpart 514.4--Opening of Bids and Award of Contract


514.407  Mistakes in bids.


514.407-3  Other mistakes disclosed before award.

    (a) Delegation of authority by head of the agency. Under FAR 
14.407-3(e), contracting directors (see 502.101) are authorized, 
without power of redelegation, to make:
    (1) The determinations regarding corrections and withdrawals under 
FAR 14.407-3(a), (b), and (c).
    (2) The corollary determinations not to permit withdrawal or 
correction under FAR 14.407-3(d).
    (b) Legal review and approval. Assigned counsel must approve 
determinations by the contracting director and contracting officer 
regarding mistakes in bid.


514.407-4  Mistakes after award.

    The contracting director and assigned counsel review and approve 
your determinations under FAR 14.407-4(b) and (c).

PART 515--CONTRACTING BY NEGOTIATION

Sub part 515.2--Solicitation and Receipt of Proposals and Information

Sec.
515.204  Contract format
515.204-1  Uniform contract format
515.205  Issuing solicitations
515.209  Solicitation provisions and contract clauses
515.209-70  Examination of records by GSA clause

Subpart 515.3--Source Selection

515.305  Proposal evaluation
515.305-70 Use of outside evaluators

Subpart 515.4--Contract Pricing

515.408  Solicitation provisions and contract clauses

Subpart 515.5--Preaward, Award, and Postaward Notifications, Protests, 
and Mistakes

515.506  Postaward debriefing of offerors

Subpart 515.70--Use and Bid Samples

515.7002  Procedures

    Authority: 40 U.S.C. 486(c).

Subpart 515.2--Solicitation and Receipt of Proposals and 
Information


515.204  Contract format.


515.204-1  Uniform contract format.

    (a) The uniform contract format is not required for leases of real 
property.
    (b) Each solicitation and contract must include the two notices in 
paragraphs (b)(1) and (b)(2) of this section, except that acquisitions 
of interests in real property, must include only the notice in (b)(1):
    (1) ``The information collection requirements contained in this 
solicitation/contract are either required by regulation or approved by 
the Office of Management and Budget pursuant to the Paperwork Reduction 
Act and assigned OMB Control No. 3090-0163.''
    (2) ``GSA's hours of operation are 8:00 a.m. to 4:30 p.m. Requests 
for preaward debriefings postmarked or otherwise submitted after 4:30 
p.m. will be considered submitted the following business day. Requests 
for postaward debriefings delivered after 4:30 p.m. will be considered 
received and filed the following business day.''


515.205  Issuing solicitations.

    Potential sources, as used in FAR 15.205, include both of the 
following:
    (a) The incumbent contractor, except when its written response to 
the notice of contract action under FAR subpart 5.2 states a negative 
interest.

[[Page 37215]]

    (b) Offerors that responded to recent solicitations for the same or 
similar items.


515.209  Solicitation provisions and contract clauses.


515.209-70   Examination of records by GSA clause.

Clause for Other Than Multiple Award Schedules

    (a) For other than multiple award schedule (MAS) contracts, insert 
the clause at 552.215-70, Examination of Records by GSA, in 
solicitations and contracts over $100,000, including acquisitions of 
leasehold interests in real property, that meet any of the following 
conditions:
    (1) Involve the use or disposition of Government-furnished 
property.
    (2) Provide for advance payments, progress payments based on cost, 
or guaranteed loan.
    (3) Contain a price warranty or price reduction clause.
    (4) Involve income to the Government where income is based on 
operations under the control of the contractor.
    (5) Include an economic price adjustment clause where the 
adjustment is not based solely on an established, third party index.
    (6) Are requirements, indefinite-quantity, or letter type contracts 
as defined in FAR part 6.
    (7) Are subject to adjustment based on a negotiated cost escalation 
base.
    (8) Contain the provision of FAR 52.223-4, Recovered Material 
Certification.
    (b) You may modify the clause at 552.215-70 to define the specific 
area of audit (e.g., the use or disposition of Government-furnished 
property, compliance with the price reduction clause). Counsel and the 
Assistant Inspector General--Auditing or Regional Inspector General-- 
Auditing, as appropriate, must concur in any modifications to the 
clause.

Clause for Multiple Award Schedules

    (c) Insert the clause at 552.215-71, Examination of Records by GSA 
(Multiple Award Schedule), in solicitations and contracts for MAS 
contracts.
    (d) With the Senior Procurement's Executive approval, you may 
modify the clause at 552.215-71 to provide for post-award access to and 
the right to examine records to verify that the pre-award/modification 
pricing, sales or other data related to the supplies or services 
offered under the contract which formed the basis for the award/
modification was accurate, current, and complete. The following 
procedures apply:
    (1) Such a modification of the clause must provide for the right of 
access to expire 2 years after award or modification.
    (2) Before modifying the clause, you must make a determination that 
absent such access there is a likelihood of significant harm to the 
Government and submit it to the Senior Procurement Executive for 
approval.
    (3) The determinations under paragraph (d)(2) of this section must 
be made on a schedule-by-schedule basis.

Subpart 515.3--Source Selection


515.305  Proposal evaluation.

    (a) Restrictions placed on a proposal by the submitter. If you 
receive a proposal with more restrictive conditions than those in the 
provision at FAR 52.215-1(e), ask whether the submitter is willing to 
accept the conditions of the paragraph at FAR 52.215-1(e). If the 
submitter refuses, consult with legal counsel on whether to accept the 
proposal as marked or return it.
    (b) Actions before releasing proposal. Before releasing any 
proposal to an evaluator you must take all the following actions:
    (1) Obtain the signed original ``Conflict of Interest 
Acknowledgment and Nondisclosure Agreement'' from each Government and 
nongovernment individual serving as an evaluator. Use the 
Acknowledgment/Agreement in Figure 515.3-1.
    (i) For employees of other Executive agencies, replace the 
reference in paragraph (c) of the Acknowledgement/Agreement to GSA's 
supplemental standards with a reference to the applicable agency.
    (ii) for nongovernment evaluators, substitute paragraph (c) of the 
Acknowledgement/Agreement with the following language and delete 
paragraph (h):
    ``(c) I have read and understand the requirements of subsection 
27(a) and 27(b) of the Office of Federal Procurement Policy Act (41 
U.S.C. 423).
    (2) Attach to each proposal a cover page bearing the following 
notice:

Government Notice for Handling Proposals

    To anyone receiving this proposal or proposal abstract:
    (1) This proposal must be used and disclosed for evaluation 
purposes only.
    (2) You must apply a copy of this Government notice to any 
reproduction or abstract of this proposal.
    (3) You must comply strictly with any authorized restrictive 
notices which the submitter places on this proposal.
    (4) You must not disclose this proposal outside the Government 
for evaluation purposes except to the extent authorized by, and in 
accordance with, the procedures in 48 CFR 515.305-71.


515.305-70  Use of outside evaluators.

    (a) Conditions. To use outside evaluators, you must meet the 
restrictions in FAR 37.203 and 537.2.
    (b) Limitations on disclosing proposal information. You may 
disclose proposal information outside the Government before the 
Government's decision as to contract award only to the extent 
authorized in this section. Disclosure and handling must comply with 
FAR 3.1 and 503.1.
    (c) Solicitation notice. Include in the solicitation a notice 
substantially as follows:

Notice About Releasing Proposals

    (1) The Government intends to disclose proposals received in 
response to this solicitation to nongovernment evaluators.
    (2) Each evaluator will sign and provide to GSA a ``Conflict of 
Interest Acknowledgment and Nondisclosure Agreement.''

Figure 515.3-1--Conflict of Interest Acknowledgment and 
Nondisclosure Agreement

Conflict of Interest Acknowledgment and Nondisclosure Agreement

    For proposals submitted in response to GAS solicitation no. 
________, I agree to the following:
    (a) To the best of my knowledge and belief, no conflict of 
interest exists that may either:
    (1) Diminish my capacity to impartially review the proposals 
submitted.
    (2) Or result in a biased opinion or unfair advantage.
    (b) In making the above statement, I have considered all the 
following factors that might place me in a position of conflict, 
real or apparent, with the evaluation proceedings:
    (1) All my stocks, bonds, other outstanding financial interests 
or commitments.
    (2) All my employment arrangements (past, present, and under 
consideration).
    (3) As far as I know, all financial interests and employment 
arrangements of my spouse, minor children, and other members of my 
immediate household.
    (c) I have read and understand the requirements of the Standards 
of Ethical Conduct for Employees of the Executive Branch (5 CFR Part 
2635) and Supplemental Standards of Ethical Conduct for Employees of 
the General Service Administration (5 CFR Part 6701).
    (d) I have a continuing obligation to disclose any circumstances 
that may create an actual or apparent conflict of interest. If I 
learn of any such conflict, I will report it immediately to the 
Contracting Officer. I will perform no more duties related to 
evaluating proposals until I receive instructions on the matter.
    (e) I will use proposal information for evaluation purposes 
only. I understand that any authorized restriction on disclosure 
placed on the proposal by the prospective contractor, prospective 
subcontractor, or the Government applies to any reproduction or 
abstracted information of the proposal.

[[Page 37216]]

    (f) I will use my best efforts to safeguard proposal information 
physically. I will not disclose the contents of, nor release any 
information about, the proposals to anyone other than:
    (1) The Source Selection Evaluation Board or other panel 
assembled to evaluate proposals submitted in response to the 
solicitation identified above.
    (2) Other individuals designed by the contracting Officer.
    (g) After completing evaluation, I will return to the Government 
all copies of the proposals and any abstracts.
    (h) GSA Appropriations Act restriction: These restrictions are 
consistent with and do not supersede, conflict with or otherwise 
alter the employee obligations, rights, or liabilities created by 
Executive Order No. 12958; section 7211 of title 5, United States 
Code (governing disclosure of Congress); section 1034 of title 10, 
United States Code, as amended by the Military Whistleblower 
Protection Act (governing disclosure to Congress by members of the 
military); section 2302(b)(8) of title 5, United States Codes, as 
amended by the Whistleblower Protection Act (governing disclosures 
of illegality, waste, fraud, abuse or public health or safety 
threats); the Intelligence Identities Protection Act of 1982 (50 
U.S.C. 421 et seq.) (governing disclosures that could expose 
confidential Government agents); and the statutes which protect 
against disclosure that may compromise the national security, 
including sections 641, 793, 794, 798, and 952 of title 18, United 
States Code, and section 4(b) of the Subversive Activities Act of 
1950 (50 U.S.C. 783(b). The definitions, requirements, obligations, 
rights, sanctions, and liabilities created by said Executive order 
and listed statutes are incorporated into this agreement and are 
controlling.
----------------------------------------------------------------------
(Enter name of evaluator and organization)
----------------------------------------------------------------------
Date

Subpart 515.4--Contract Pricing


515.408  Solicitation provisions and contract clauses.

MAS Requests for Information Other Than Cost or Pricing Data

    (a) You should use Alternative IV of the FAR provision at 52.215-
20, Requirements for Cost or Pricing Data or Information Other than 
Cost or Pricing Data, for MAS contracts to provide the format for 
submission of information other than cost or pricing data for MAS 
contracts. To provide uniformity in request under the MAS program, you 
should insert the following in paragraph (b) of the provision:
    (1) An offer prepared and submitted in accordance with the clause 
at 552.212-70, Preparation of Offer (Multuiple Award Schedule).
    (2) Commercial sales practices. The Offeror shall submit 
information in the format provided in this solicitation in accordance 
with the instructions at Figure 515.4 of the GSA Acquisition Regulation 
(48 CFR 515-2), or submit information in the Offeror's own format.
    (3) Any additional supporting information requested by the 
Contracting Officer. The Contracting Officer may require additional 
supporting information, but only to the extent necessary to determine 
whether the price(s) offered is fair and reasonable.
    (4) By submission of an offer in response to this solicitation, the 
Offeror grants the Contracting Officer or an authorized representative 
the right to examine, at any time before initial award, books, records, 
documents, papers, and other directly pertinent records to verify the 
pricing, sales and other data related to the supplies or services 
proposed in order to determine the reasonableness of price(s). Access 
does not extend to Offeror's cost or profit information of other data 
relevant solely to the Offeror's determination of the prices to be 
offered in the catalog or marketplace.
    (b) Insert the following format for commercial sales practices in 
the exhibits or attachments section of the solicitation and resulting 
contract (see FAR 12.303).

Commercial Sales Practices Format

Name of Offeror __________ SIN(s) ______

    Note: Please refer to Clause 552.212-70, Preparation of Offer 
(Multiple Award Schedule), for additional information concerning 
your offer. Provide the following information for each SIN (or group 
of SINs or SubSIN for which information is the same).

    (1) Provide the dollar value of sales to the general public at 
or based on an established catalog or market price during the 
previous 12-month period or the offerors last fiscal year: 
$________. State beginning and ending of the 12 month period. 
Beginning ________ ending ________. In the event that a dollar value 
is not an appropriate measure of the sales, provide and describe 
your own measure of the sales of the item(s).
    (2) Show your total projected annual sales to the Government 
under this contract for the contract term, excluding options, for 
each SIN offered. If you currently hold a Federal Supply Schedule 
contract for the SIN the total projected annual sales should be 
based on your most recent 12 months of sales under that contract.

SIN ____________  $____________
SIN ____________  $____________
SIN ____________  $____________

    (3) Based on your written discounting policies (standard 
commercial sales practices in the event you do not have written 
discounting policies), are the discounts and any concessions which 
you offer the Government equal to or better than your best price 
(discount and concessions in any combination) offered to any 
customer acquiring the same items regardless of quantity or terms 
and conditions? YES____ NO____ (See definition of ``concession'' and 
``discount'' in 552.212-70.)
    (4)(a) Based on your written discounting policies (standard 
commercial sales practices in the event you do not have written 
discounting policies), provide information as requested for each SIN 
(or group of SINs for which the information is the same) in 
accordance with the instructions at Figure 515.4, which is provided 
in this solicitation for your convenience. The information should be 
provided in the chart below or in an equivalent format developed by 
the offeror. Rows should be added to accommodate as many customers 
as required.

----------------------------------------------------------------------------------------------------------------
                                                      Column 3 Quantity/                           Column 5
        Column 1 Customer          Column 2 Discount        Volume         Column 4 FOB Term      Concessions
----------------------------------------------------------------------------------------------------------------
 
 
 
----------------------------------------------------------------------------------------------------------------

    (b) Do any deviations from your written policies or standard 
commercial sales practices disclosed in the above chart ever result 
in better discounts (lower prices) or concessions than indicated? 
YES __ NO __. If YES, explain deviations in accordance with the 
instructions at Figure 515.4, which is provided in this solicitation 
for your convenience.
    (5) If you are a dealer/reseller without significant sales to 
the general public, you should provide manufacturers' information 
required by paragraphs (1) through (4) above for each item/SIN 
offered, if the manufacturer's sales under any resulting contract 
are expected to exceed $500,000. You must also obtain written 
authorization from the manufacturer(s) for Government access, at any 
time before award or before agreeing to a modification, to the 
manufacturer's sales records for the purpose of verifying the 
information submitted by the manufacturer. The information is 
required in order to enable the Government to make a determination 
that the offered price is fair and reasonable. To expedite the 
review and processing of offers, you should advise the 
manufacturer(s) of this requirement. The contracting officer may 
require the

[[Page 37217]]

information be submitted on electronic media with commercially 
available spreadsheet(s). The information may be provided by the 
manufacturer directly to the Government. If the manufacturer's 
item(s) is being offered by multiple dealers/resellers, only one 
copy of the requested information should be submitted to the 
Government. In addition, you must submit the following information 
along with a listing of contact information regarding each of the 
manufacturers whose products and/or services are included in the 
offer (include the manufacturer's name, address, the manufacturer's 
contact point, telephone number, and FAX number) for each model 
offered by SIN:
    (a) Manufacturer's Name.
    (b) Manufacturer's Part Number.
    (c) Dealer's/Reseller's Part Number.
    (d) Product Description.
    (e) Manufacturer's List Price.
    (f) Dealer's/Reseller's percentage discount from list price or 
net prices.

(End of Format)

    (c) Include the instructions for completing the commercial sales 
practices format in Figure 515.4 in solicitations issued under the MAS 
program.

Figure 515.4--Instructions for Commercial Sales Practices Format

    If you responded ``yes'' to question (3), on the Commercial 
Sales Practices Format in paragraph (b) of this section, complete 
the chart in question (4)(a) for the customer(s) who receive your 
best discount. If you responded ``no'', complete the chart in 
question (4)(a) showing your written policies or standard sales 
practices for all customers or customer categories to whom you sell 
at a price (discounts and concessions in combination) that is equal 
to or better than the price(s) offered to the Government under this 
solicitation or with which the Offeror has a current agreement to 
sell at a discount which equals or exceeds the discount(s) offered 
under this solicitation. Such agreement shall be in effect on the 
date the offer is submitted or contain an effective date during the 
proposed multiple award schedule contract period. If your offer is 
lower than your price to other customers or customers categories, 
you will be aligned with the customer or category of customer that 
receives your best price for purposes of the Price Reductions clause 
at 552.238-75. The Government expects you to provide information 
required by the format in accordance with these instructions that 
is, to the best of your knowledge and belief, current, accurate, and 
complete as of 14 calender days prior to its submission. You must 
also disclose any changes in your price list(s), discounts and/or 
discounting policies which occur after the offer is submitted, but 
before the close of negotiations. If your discount practices vary by 
model or product line, the discount information should be by model 
or product line as appropriate. You may limit the number of models 
or product lines reported to those which exceed 75% of actual 
historical Government sales (commercial sales may be substituted if 
Government sales are unavailable) value of the special item number 
(SIN).

Column 1--Identify the Applicable Customer or Category of Customer

    A ``customer'' is any entity, except the Federal Government, 
which acquires supplies or services from the Offeror. The term 
customer includes, but is not limited to original equipment 
manufacturers, value added resellers, state and local Governments, 
distributors, educational institutions (an elementary, junior high, 
or degree granting school which maintains a regular faculty and 
established curriculum and an organized body of students), dealers, 
national accounts, and end users. In any instance where the Offeror 
is asked to disclose information for a customer, the Offeror may 
disclose information by category of customer if the Offeror's 
discount policies or practices are the same for all customers in the 
category. (Use a separate line for each customer or category of 
customer.)

Column 2--Identify the Discount

    The term ``discount'' is as defined in solicitation clause 
552.212-70, Preparation of Offer (Multiple Award Schedule). Indicate 
the best discount (based on your written discounting policies or 
standard commercial discounting practices if you do not have written 
discounting policies) at which you sell to the customer or category 
of customer identified in column 1, without regard to quantity; 
terms and conditions of the agreements under which the discounts are 
given; and whether the agreements are written or oral. Net prices or 
discounts off of other price lists should be expressed as percentage 
discounts from the price list which is the basis of your offer. If 
the discount disclosed is a combination of various discounts (prompt 
payment, quantity, etc.), the percentage should be broken out for 
each type of discount. If the price lists which are the basis of the 
discounts given to the customers identified in the chart are 
different than the price list submitted upon which your offer is 
based, identify the type or title and date of each price list. The 
contracting officer may require submission of these price lists. To 
expedite evaluation, offerors may provide these price lists at the 
time of submission.

Column 3--Identify the Quantity or Volume of Sales

    Insert the minimum quantity or sales volume which the identified 
customer or category of customer must either purchase/order, per 
order or within a specified period, to earn a discount indicate the 
time period.

Column 4--Indicate the FOB Delivery Term for Each Identified Customer

    See FAR 47.3 for an explanation of FOB delivery terms.

Column 5--Indicate Concessions Regardless of Quantity Granted to the 
Identified Customer or Category of Customer

    Concessions are defined in solicitation clause 552.12-70, 
Preparation of Offers (Multiple Award Schedule). If the space 
provided is inadequate, the disclosure should be made on a separate 
sheet by reference.
    If you respond ``yes'' to question 4(b) in the Commercial Sales 
Practices Format, provide an explanation of the circumstances under 
which you deviate from your written policies or standard commercial 
sales practices disclosed in the chart on the Commercial Sales 
Practices Format and explain how often they occur. Your explanation 
should include a discussion of situations that lead to deviations 
from standard practice, an explanation of how often they occur, and 
the controls you employ to assure the integrity of your pricing. 
Examples of typical deviations may include, but are not limited to, 
one time goodwill discounts to charity organizations or to 
compensate an otherwise disgruntled customer; a limited sale of 
obsolete or damaged goods; the sale of sample goods to a new 
customer, or the sales of prototype goods for testing purposes.
    If deviations from your written policies or standard commercial 
sales practices disclosed in the chart on the Commercial Sales 
Practices Format are so significant and/or frequent that the 
Contracting Officer cannot establish whether the price(s) offered is 
fair and reasonable, then you may be asked to provide additional 
information. The Contracting Officer may ask for information to 
demonstrate that you have made substantial sales of the item(s) in 
the commercial market consistent with the information reflected on 
the chart on the Commercial Sales Practices Format, a description of 
the conditions surrounding those sales deviations, or other 
information that may be necessary in order for the Contracting 
Officer to determine whether your offered price(s) is fair and 
reasonable. In cases where additional information is requested the 
Contracting Officer will target the request in order to limit the 
submission of data to that needed to establish the reasonableness of 
the offered price.

(End of Figure)

    (d) Insert the clause at 452.215-72, Price Adjustment--Failure 
to Provide Accurate Information, in solicitations and contracts 
under the MAS program.
    (e) You should use Alternate IV of FAR 52.215-21, Requirements 
for Cost or Pricing Data or Information Other Than Cost or Pricing 
Data--Modifications, to provide for submission of information other 
than cost or pricing data for MAS contracts. To provide for 
uniformity in requests under the MAS program, you should insert the 
following in paragraph (b) of the clause:
    (1) Information required by the clause at 552.243-72, 
Modifications (Multiple Award Schedule).
    (2) Any additional supporting information requested by the 
Contracting Officer. The Contracting Officer may require additional 
supporting information, but only to the extent necessary to 
determine whether the price(s) offered is fair and reasonable.
    (3) By submitting a request for modification, the Contractor 
grants the Contracting Officer or an authorized representative the 
right to examine, at any time before agreeing to a modification, 
books, record, documents, papers, and other directly pertinent 
records to verify the pricing, sales and other data related to the 
supplies or services proposed in order to determine the

[[Page 37218]]

reasonableness of price(s). Access does not extent to Contractor's 
cost or profit information or other data related solely to the 
Contractor's determination of the prices to be offered in the 
catalog or marketplace.

Subpart 515.5--Preawared, Award, and Postaward Notifications, 
Protests, and Mistakes


515.506  Postaward debriefing of offerors.

    For purposes of determining the date of receipt of a request for 
a post award debriefing, GSA's hours of operation are 8:00 a.m. to 
4:30 p.m. Request received after 4:30 p.m. will be considered 
received the following business day.

Subpart 515.70--Use of Samples


515.7002  Procedures.

    (a) Unsolicited samples. The reference to FAR 14.404-2(d) in FAR 
14.202-4(g) does not apply.
    ``However, qualifications in the proposal that are at variance 
with the Government's requirements, constitute deficiencies. Resolve 
these as provided in FAR 15.306.''
    (b) Solicitation requirements.
    (1) Use the clause at FR 52.214-20. The second sentence in 
paragraph (c) of the clause does not apply. Substitute a sentence 
substantially as follows:

    Failure of the bid samples to conform to all the required 
characteristics listed in the solicitation constitutes a deficiency 
in the proposal (see FAR 15.306).

    (2) In addition to listing subjective characteristics that you 
cannot adequately describe in the specification, you may list and 
evaluate objective characteristics. To include objective 
characteristics, you must determine that examination of such 
characteristics is essential to the acquisition of any acceptable 
product. Base your determination on past experience or other valid 
considerations.
    (c) FAR 52.215-1(c)(3) applies to samples received after the time 
set for receipt of offers.

PART 516--TYPES OF CONTRACTS

Subpart 516.2--Fixed Price Contracts

Sec.
516.203-4 Contract clauses

Subpart 516.5--Indefinite-Delivery Contracts

516.506 Solicitation provisions and contract clauses

Subpart 516.6--Time-and-Materials, Labor-Hour, and Letter Contracts

516.603 Letter contracts
516.603-3 Limitations

    Authority: 40 U.S.C. 486(c).

Subpart 516.2--Fixed Price Contracts


516.203-4  Contract clauses.

    (a) Multiple award schedules. Do not use FAR 52.216-2, 52.216-3, or 
52.216-4 in negotiated acquisitions based on discounts from established 
commercial catalogs or pricelists. Instead, use:
    (1) 552.216-70, Economic Price Adjustment--FSS Multiple Award 
Schedule Contracts, in a 1-year solicitation or contract.
    (2) 552.216-70 (Alternate I) in multiyear solicitations and 
contracts.
    (b) Stock or Special Order Program Contracts. In multiyear 
solicitations and contracts, after making the determination required by 
FAR 16.203-2, use 552.216-71, Economic Price Adjustment-Stock and 
Special Order Program Contract, or a clause prepared as authorized in 
paragraph (a)(2)(ii) of this subsection.
    (1) If the contract includes one or more options to extend the term 
of the contract, use the clause with its Alternate I or a clause 
substantially the same as 552.216-71 with its Alternate I suitably 
modified.
    (2) In a contract requiring a minimum adjustment before the price 
adjustment mechanism is effectuated, use the basic clause with 
Alternate II or with Alternate I and Alternative II.
    (3) If the Producer Price Index is not an appropriate indicator for 
price adjustment, modify the clause to use an alternate indicator for 
adjusting prices. Similarly, if other aspects of 552.216-71 are not 
appropriate, use an alternate clause following established procedures.
    (c) Adjustments based on cost indexes of labor or material.
    (1) If you decide to provide for adjustments based on cost indexes 
of labor or material, prepare a clause that defines each of the 
following elements:
    (i) The type of labor and/or material subject to adjustment.
    (ii) The labor rates, including any fringe benefits and/or unit 
prices of materials that may be increased or decreased.
    (iii) The index(es) that will be used to measure changes in price 
levels and the base period or reference point from which changes will 
be measured.
    (iv) The period during which the price(s) will be subject to 
adjustment.
    (2) The contracting director must approve use of this clause.

Subpart 516.5--Indefinite-Delivery Contracts


516.506  Solicitation provisions and contract clauses.

    (a) In solicitations and contracts for stock or special order 
program items, when the contract authorizes FSS and other activities to 
issue delivery or task orders, insert the clause at 552.216-72, 
Placement of Orders. If only FSS will issue delivery or task orders, 
insert the clause with its Alternate I.
    (b) In solicitations and contracts for single or multiple award 
schedule program items, insert the clause at 552.216-72, Placement of 
Orders, with its Alternate II.
    (c) If the clause at 552.216-72 is prescribed, insert the provision 
at 552.216-73, Ordering Information, in solicitations for stock items 
and in other FSS solicitations. Use 552.216-73 Alternate I when 
552.216-72 Alternate I is prescribed. Use 552.216-73 Alternate II when 
552.72 Alternate II is prescribed.

Subpart 516.6--Time-and-Materials, Labor-Hour, and Letter Contracts


516.603  Letter contracts.


516.603-3  Limitations.

Architect-Engineer (A-E) Services

    (a) Requirement for a price proposal. Before you award a letter 
contract, the proposed A-E must provide a price proposal for the non-
design effort.
    (b) Contents of each letter contract. You must include the 
following information in the letter contract:
    (1) The scope. If you include the design effort, only authorize the 
A-E to perform those services that are independent of the design effort 
(for example, feasibility studies, existing facility surveys or site 
investigation, etc.). Do not authorize the A-E to begin the design 
effort before the letter contract is definitized.
    (2) A definitization schedule. Include dates for each of the 
following:
    (i) Submission of the design fee proposal.
    (ii) Start of negotiations.
    (iii) Definitization. This date must be no later than 90 days after 
the date of the letter contract.
    (3) A limitation on the Government's liability for the non-design 
effort to be performed under the contract. Insert this amount in FAR 
52.216-24, Limitation of Government Liability.
    (c) Unilateral price decision. If you must issue a unilateral price 
decision, the maximum contract amount must not exceed a reasonable 
price for the excludable items plus the 6 percent statutory fee 
limitation for the project.

PART 517--SPECIAL CONTRACTING METHODS

Subpart 517.1--Multiyear Contracting

Sec.
517.109  Contract clauses

[[Page 37219]]

Subpart 517.2--Options

17.202  Use of options
17.203  Solicitations
17.207  Exercise of options
17.208  Solicitation provisions and contract clauses

    Authority: 40 U.S.C. 486(c).

Subpart 517.1--Multiyear Contracting


517.109  Contract clauses.

    Use of FAR 52.217-2, Cancellation Under Multi-year Contracts, is 
optional in multiyear contracts authorized by 40 U.S.C. 490(a)(14) for 
maintenance and repair of fixed equipment in federally-owned buildings 
and services and 40 U.S.C. 481(a)(3) for public utility services.

Subpart 517.2--Options


517.200  Scope of subpart.

    (a) This subpart applies to all GSA contracts for supplies and 
services, including:
    (1) Services involving construction, alteration, or repair 
(including dredging, excavating, and painting) of buildings, bridges, 
roads, or other kinds of real property.
    (2) Architect-engineer services.
    (b) If a requirement in this subpart is inconsistent with FAR 17.2, 
this subpart takes precedence.


517.202  Use of options.

    (a) Supplies or services.
    (1) You should use options when they meet one or more of the 
following objectives:
    (i) Reduce procurement lead time and associated costs.
    (ii) Ensure continuity of contract support.
    (iii) Improve overall contractor performance.
    (iv) Facilitate longer term contractual relationships with those 
contractors that continually meet or exceed quality performance 
expectations.
    (2) An option is normally in the Government's interest in the 
following circumstances:
    (i) You anticipate a need for additional supplies or services 
during the contract term.
    (ii) Multiyear contracting authority is not available or its use is 
inappropriate and you anticipate a need for additional supplies or 
services beyond the initial contract term.
    (iii) There is a need for continuity of supply or service support.
    (iv) Funds are not available for the entirety of the Government's 
needs, but are likely to become available during the contract term.
    (v) The initial contract will be used to evaluate the performance 
of an emerging small business.
    (3) Do not use an option if the market price is likely to change 
substantially and an economic price adjustment clause inadequately 
protects the Government's interest.
    b Construction. For limitations on the use of options, see 536.213 
and 536.270.


517.203

Solicitations.

    A solicitation that includes an option to extend should inform 
offerors that the contract could result in a long term contractual 
relationship subject to both of the following conditions:
    (a) Continuing need by GSA.
    (b) Level of contract performance that at least meets GSA's quality 
performance expectations.


517.207  Exercise of options.

    Before exercising an option, you must:
    (a) Synopsize it unless you meet of the following conditions:
    (1) The option was evaluated as part of the original competition.
    (2) The contract action meets an exception in FAR 5.202.
    (b) Conclude that the contractor's performance under the contract 
met or exceeded the Government's expectation for quality performance, 
unless another circumstance justifies an extended contractual 
relationship.
    (c) Determine that the option price is fair and reasonable.


517.208

Solicitation provisions and contract clauses.

    (a) For solicitations under FSS's Stock or Special Order Program, 
insert a provision substantially the same as the provision at 552.217-
70, Evaluation of Options, if both of the following conditions apply:
    (1) The solicitation contains an option to extend the term of the 
contract.
    (2) The contract will be fixed price and contain an economic price 
adjustment clause.
    (b) Insert the provision at 552.217-71, Notice Regarding Option(s), 
or a similar provision, in solicitations that include an option for 
increased quantities of supplies or services or an option to extend.

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

PART 519--SMALL BUSINESS PROGRAMS

Subpart 519.5--Set-Asides for Small Business

Sec.
519.508  Soliciation provisions and contract clauses

Subpart 519.7--The Small Business Subcontracting Program

519.708  Soliciation provisions
519.708-70  Contract clauses

Subpart 519.8--Contracting with the Small Business Administration (The 
8(a) Program)

519.870  Direct 8(a) contracting
519.870-8  Contract clauses

Subpart 519.12--Small Disadvantaged Business Participation Program

519.1202  Evaluation factor or subfactor
519.1202-2  Applicability

    Authority: 40 U.S.C. 486(c).

Subpart 519.5--Set-Asides for Small Business


519.508  Solicitation provisions for contract clauses.

    Insert 552.219-70, Allocation of Orders--Partially Set-Asides 
Items, in solicitations and requirements type supply contracts that are 
partially set aside for small business.

Subpart 519.7--The Small Business Subcontracting Program


519.708  Contract clauses.

519.708-70  Solicitation provisions.

    Insert the following provisions as directed:
    (a) 552.219-71, Notice to Offerors of Subcontracting Plan 
Requirements, on the cover page of solicitations containing the clause 
at FAR 52.219-9, Small Business Subcontracting Plan.
    (b) 552.219-72, Preparation, Submission, and Negotiations of 
Subcontracting Plans, in solicitations requiring submission of the 
subcontracting plan with initial offers.
    (c) 552.219-73, Goals for Subcontracting Plan as follows:
    (1) Use the basic provision in sealed bid solicitations containing 
FAR 52.219-9 if you are able to establish realistic target goals.
    (2) Use Alternate I in:
    (i) sealed bid solicitations if you cannot establish target goals.
    (ii) Negotiated solicitations that include FAR 52.219-9, but do not 
include 552.219-72.

[[Page 37220]]

Subpart 519.8--Contracting With the Small Business Administration 
(The 8(a) Program)


519.870  Direct 8(a) contracting.


519.870-8  Contract clauses.

    (a) Insert the following clauses in solicitations, contracts, and 
orders issued under the MOU:
    (1) Insert the clause at 552.219-74, Section 8(a) Direct Award.
    (2) Insert the clause at FAR 52.219-14, Limitation on 
Subcontracting.
    (3) Insert the clause at FAR 52.219-18, Notification of Competition 
Limited to Eligible 8(a) Concerns, Substitute the following paragraph 
for paragraph (c) of the clause. Add the word ``Deviation'' at the end 
of the clause title.

    (c) Any award resulting from this solicitation will be made 
directly by the Contracting Officer to the successful 8(a) offeror 
selected through the evaluation criteria set forth in this 
solicitation.

    (b) Do not use the clauses at FAR 52.219-11, Special 8(a) Contract 
Conditions, FAR 52.219-12, Special 8(a) Subcontract Conditions, or FAR 
52.219-17, Section 8(a) Award.

Subpart 519.12--Small Disadvantaged Business Participation Program


519.1202  Evaluation factor or subfactor.


519.1202-2  Applicability.

    In addition to the exception in FAR 19.1202-2, do not evaluate the 
extent of participation of SDB concerns in performance of multiple 
award schedule contracts when all fair and reasonable offers from 
responsible sources are accepted.

PART 522--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

522.001  Defintion

Subpart 522.1--Basic Labor Policies

Sec.
522.101  Labor relations
522.101-1  General
522.10-3-5  Contract clauses

Subpart 522.4--Labor Standards for Contracts Involving Construction

522.406  Administration and enforcement
522.406-6  Payrolls and statements

Subpart 522.8--Equal Employment Opportunity

522.803  Responsibilities
522.804  Affirmative action programs
522.804-1  Nonconstruction
522.805  Procedures
522.807  Exemptions

    Authority: 40 U.S.C. 486(c).


522.001  Definition.

    Agency labor advisory, as used in this part, means the Director of 
the GSA Acquisition Policy Division, Office of Acquisition Policy.

Subpart 522.1--Basic Labor Policies


522.101  Labor relations.


522.101-1  General.

    (a) GSA personnel performing official duties must maintain GSA's 
impartiality in disputes between labor and contractor management by 
refraining from involvement in or expressing a position on:
    (1) Labor negotiations between contractors and unions.
    (2) The merits of any dispute between labor and a contractor's 
management.
    (b) The Office of General Counsel (OGC) and the agency labor 
advisor:
    (1) Serve as focal points on contractor labor relations.
    (2) Initiate contact on contractor labor relations matters with 
national offices of labor organizations, Government departments, 
agencies or other governmental organizations.
    (3) Serve as a clearinghouse for information on labor laws 
applicable to Government acquisitions.
    (4) Respond to questions involving FAR Part 22, this part, or other 
contractor labor relations matters concerning GSA acquisition programs. 
OGC determines the agency's legal position.


522.103-5  Contract clauses.

    Insert FAR 52.222-1, Notice to the Government of Labor Disputes, in 
solicitations and contracts for items on the DoD Master Urgency List.

Subpart 522.4--Labor Standards for Contracts Involving Construction


522.406  Administration and enforcement.


522.406-6  Payrolls and statements.

Statement From Prime Contractors or Subcontractors That Personally 
Perform Work

    (a) Weekly payrolls and statements of compliance with respect to 
payment of wages are not required from a prime contractor or a 
subcontractor that personally performs work.
    (b) Instead, a prime contractor or a subcontractor that personally 
performs work must submit weekly certified statements clearly showing 
the following information:
    (1) The individual's contractual relationship.
    (2) The scope and date(s) the individual performed the work.
    (3) The individual received no wages for the labor performed.
    (4) No mechanics or laborers were employed in the prosecution of 
the work.
    (c) Use GSA Form 618-D, Statement to be Submitted When Work is 
Performed Personally, to furnish this information.

Subpart 522.8--Equal Employment Opportunity


522.803  Responsibilities.

    Submit questions on the applicability of E.O. 11246 and 
implementing regulations to assigned legal counsel.


522.804  Affirmative action programs.


522.804-1  Nonconstruction.

    (a) The requirements of FAR 22.804 also apply to each contractor 
and subcontractor with 50 or more employees who either:
    (1) Serves as a depository of Government funds.
    (2) Is a financial institution serving as an issuing and paying 
agent for U.S. savings bonds and savings notes.
    (b) Contractors, subcontractors, and financial institutions must 
develop a written affirmative action compliance program for each of its 
establishments even if the amount held is less than $50,000.


522.805  Procedures.

    (a) To determine whether the contract meets the threshold in FAR 
22.805(a), include the value of the basic contract plus priced options. 
A contract modification exercising a priced option is not a contract 
award under FAR 22.805(a)(1)(ii) and does not a require a preaward 
clearance.
    (b) Submit preaward review requests directly.

Furnishing Information to Contractors

    (c) In addition to the poster required by FAR 22.805(b), provide 
each nonexempt contractor a copy of SF 100.


522.807  Exemptions.

    The agency labor advisor submits a request for exemption.

PART 523--ENVIORNMENT, CONSERVATION, OCCUPATIONAL SAFETY AND DRUG-
FREE WORKPLACE

Subpart 523.3--Hazardous Materials Identification and Material Safety 
Data

Sec.
523.303  Contract clause
523.370  Solicitation provision

    Authority: 40 U.S.C. 486(c).

[[Page 37221]]

Subpart 523.3--Hazardous Materials Identification and Material 
Safety Data


523.303  Contract clause.

    (a) Insert 552.223-70, Hazardous Substances, in solicitations and 
contracts for packaged items subject to the Federal Hazardous 
Substances Act and the Hazardous Materials Transportation Act.
    (b) Insert 552.223-71, Nonconforming Hazardous Materials, in 
solicitations and contracts for supplies that contain hazardous 
materials.


523.370  Solicitation provision.

    Insert 552.223-72, Hazardous Material Information, in any 
solicitation that provides for delivery of hazardous materials on an 
f.o.b. origin basis.

PART 525--FOREIGN ACQUISITION

Subpart 525.1--Buy American Act-Supplies

Sec.
525.105  Evaluating offers
525.105-70  Procurement of hand or measuring tools or stainless 
steel flatware for DOD
525.109  Solicitation provisions and contract clause

Subpart 525.3--Balance of Payments Program

525.302  Policy
525.302-70  Procurements for agencies under the Foreign Assistance 
Act

Subpart 525.4--Trade Agreements

525.402  Policy
525.408  Solicitation provision and contract clauses

    Authority: 40 U.S.C. 486(c).

Subpart 525.1--Buy American Act-Supplies


525.105  Evaluating offers.


525.105-70  Procurement of hand or measuring tools or stainless steel 
flatware for DOD.

    (a) ``Stainless steel flatware'' means special order and stock 
items of stainless steel flatware purchased for DOD, including, but not 
limited to, the following National Stock Numbers (NSN):

7340-00-060-6057
7340-00-205-3340
7340-00-205-3341
7340-00-241-8169
7340-00-241-8170
7340-00-241-8171
7340-00-559-8357
7340-00-688-1055
7340-00-721-6316
7340-00-721-6971

    (b) Purchases of hand or measuring tools or stainless steel 
flatware exceeding the simplified acquisition threshold by DOD must be 
domestic end products. In the case of stainless steel flatware, the 
Secretary of the Department concerned can make an exception. The 
individual must determine that a satisfactory quality and sufficient 
quantity produced in the United States or its possessions are not 
available when needed at domestic market prices.
    (c) If GSA solicitations of hand or measuring tools or stainless 
steel flatware include DOD requirements, GSA will apply the DOD 
restrictions. The bases for applying the DOD restriction to GSA 
acquisitions are:
    (1) DOD's restrictions apply to requisitions of such items from the 
GSA stock program.
    (2) The impracticality of establishing a dual supply system to 
satisfy the requirements of civilian and military agencies.
    (3) GSA may reject any offer when it is considered necessary for 
reasons of national interest.


525.109  Solicitation provisions and contract clause.

    If you include DOD requirements for hand or measuring tools or 
stainless steel flatware in the solicitation for an acquisition to 
exceed the simplified acquisition threshold, insert 552.225-70, Notice 
of Procurement Restriction--Hand or Measuring Tools or Stainless Steel 
Flatware, in the solicitation and resulting contract(s).

Subpart 525.3--Balance of Payments Program


525.302  Policy.


525.302-70  Procurements for agencies under the Foreign Assistance Act.

    GSA procurements made directly for other agencies of items to be 
used outside the United States are made the Balance of Payments 
Program. The only exception is if GSA contracts as the agent for an 
agency governed by the Foreign Assistance Act (22 U.S.C. 2151 et seq.). 
If this exception applies, the contract will be governed by the 
policies and procedures of the agency instead of FAR 25.3 and 525.3. 
For example, GSA sometimes acts as agent for the Agency for 
International Development and the Bureau of International Narcotics 
Matters.

Subpart 525.4--Trade Agreements


525.402  Policy.

    As a result of the General Services Administration Board of 
Contract Appeals (GSBCA) decision in the protest of International 
Business Machines Corporation, 90-2BCA P22,924, May 18. 1990, GSA 
solicitations and contracts will deviate from FAR 52.225-8, Buy 
American Act-Trade Agreements-Balance of Payments Program Certificate, 
and FAR 52.225-9, Buy American Act-Trade Agreements-Balance of payments 
Program.


525.408  Solicitation provision and contract clauses.

    Insert 552.225-8. Buy American Act-Trade Agreements-Balance of 
Payments Program Certificate, and 552.225-9, Buy American Act-Trade 
Agreements-Balance of Payments Program, in solicitations and contracts 
subject to the Trade Agreements Act. Use them instead of FAR 52.225-8 
and 52.225-9.

SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS

PART 527--PATENTS, DATA, AND COPYRIGHTS

Subpart 527.4--Rights in Data and Copyrights

Sec.
527.409 Solicitation provisions and contract clauses

    Authority: 40 U.S.C. 486(c).

Subpart 527.4--Rights in Data and Copyrights


527.409  Solicitation provisions and contract clauses.

Architect-Engineer Services and Construction Contracts Involving 
Architect-Engineer Services

    Insert the following in solicitations and contracts for architect-
engineer services and construction contracts involving architect-
engineer services:
    (a) Insert 552.227-70, Government Rights (Unlimited), instead of 
FAR 52.227-17, Rights in Data-Special Works, in contracts, except if 
552.227-71 is prescribed.
    (b) If the Government requires sole property rights and exclusive 
control over the design and data, insert 552.227-71, Drawings and Other 
Data to Become Property of Government, instead of FAR 52.227-17.

PART 528--BONDS AND INSURANCE

Subpart 528.2--Sureties and Other Security for Bonds

Sec.
528.202 Acceptability of corporate sureties

Subpart 528.3--Insurance

528.310 Contract clause for work on a Government installation

    Authority: 40 U.S.C. 486(c).

[[Page 37222]]

Subpart 528.2--Sureties and Other Security for Bonds


528.202  Acceptability of corporate sureties.

    Corporate surety bonds must be manually signed by the Attorney-in-
Fact or officer of the surety company and the corporate seal affixed. 
You may waive failure of the surety to affix the corporate seal as a 
minor informality. (See B-184120, July 2, 1975, 75-2 CPD 9.)

Subpart 528.3--Insurance


528.310  Contract clause for work on a Government installation.

    (a) Insert the clause at 552.228-70, Workers' Compensation Laws, in 
each solicitation and contract that meets all the following conditions:
    (1) The contract amount is expected to exceed the simplified 
acquisition threshold.
    (2) The contract will require work to be performed on Government 
property.
    (b) In the case of an owner-controlled insurance program, or wrap-
up insurance, the clause will be a part of the policy holder's 
requirements.

PART 529--TAXES

Subpart 529.4--Contract Clauses

Sec.
529.401 Domestic contracts
529.401-70 Purchases at or under the simplified acquisition 
threshold
529.401-71 Contracts for supplies and services usable by the DC 
Government

    Authority: 40 U.S.C. 486(c).

Subpart 529.4--Contract Clauses


529.401  Domestic contracts.


529.401-70  Purchases at or under the simplified acquisition threshold.

    Insert 552.229-70, Federal, State, and Local Taxes, in purchases 
and contracts estimated to exceed the micropurchase threshold, but not 
the simplified acquisition threshold.


529.401-71  Contracts for supplies and services usable by the DC 
Government.

    Insert 552.229-71, Federal Tax-DC Government, in solicitations and 
contracts that permit the District of Columbia Government to place 
orders.

PART 532--CONTRACT FINANCING

Subpart 532.1--Non-Commercial Item Purchase Financing

Sec.
532.111  Contract clauses for non-commercial purchases

Subpart 532.2--Commercial Item Purchase Financing

532.206  Solicitation provisions and contract clauses

Subpart 532.7--Contract Funding

532.705  Contract clauses
532.705-1  Clauses for contracting in advance of funds

Subpart 532.8--Assignment of Claims

532.806  Contract clauses

Subpart 532.9--Prompt Payment

532.902  Definitions
532-905  Invoice payments
532.905-70  Certification of payment to subcontractors and suppliers 
under fixed-price construction contracts
532.905-71  Final payment--construction and building service 
contracts
532.908  Contract clauses

Subpart 532.70--Authorizing Payment By Governmentwide Commercial 
Purchase Card

532.7001  Definition
532.7002  Solicitation requirements
532.7003  Contract clause

Subpart 532.71--Payments for Recurring Services

532.7101  Definitions
532.7102  Applicability
532.7104  Contract clauses

    Authority: 40 U.S.C. 486(c).

Subpart 532.1--Non-Commercial Item Purchase Financing


532.111  Contract clauses for non-commercial purchases.

    (a) Invoice requirements. Insert 552.232-70, Invoice Requirements, 
or something substantially the same, in all solicitations and contracts 
for supplies, services, construction, architect-engineer services, or 
the acquisition of leasehold interests in real property that require 
the submission of invoices for payment. Delete subparagraph (b) of the 
clause if an Accounting Control Transaction (ACT) number is not 
required for payment.
    (b) Adjusting payments. Insert 552.232-71, Adjusting Payments, in 
all solicitations and contracts for recurring building services 
expected to exceed the simplified acquisition threshold.
    (c) Final payment. Insert 552.232-72, Final Payment, in all 
solicitations and contracts for recurring building services expected to 
exceed the simplified acquisition threshold.

Subpart 532.2--Commercial Item Purchase Financing


532.206  Solicitation provisions and contract clauses.

    Discounts for prompt payment. Include 552.232-8, Discounts for 
Prompt Payments, in multiple award schedule solicitations and contracts 
insted of the clause at FAR 52.232-8.

Subpart 532.7--CONTRACT FUNDING


532.705  Contract clauses.


532.705-1  Clauses for contracting in advance of funds.

    Insert 552.232-73, Availability of Funds, in solicitations and 
contracts for services which are ``severable'' when both of the 
following conditions apply:
    (a) The contract, or a portion of the contract, will be chargeable 
to funds of the new fiscal year.
    (b) The circumstances described in the prescriptions for FAR 
52.232-18 or 52.232-19 do not apply.

Subpart 532.8--Assignment of Claims


532.806  Contract clauses.

    Insert the clause at 552.232-23, Assignment of Claims, in 
solicitations and requirements or indefinite quantity contracts under 
which more than one agency may place orders.

Subpart 532.9--Prompt Payment


532.902  Definitions.

    Full cycle electronic commerce means the use of electronic data 
interchange (EDI), Internet-based invoice processing, and electronic 
funds transfer (EFT):
    (a) By the Government, to place purchase, delivery, or task orders, 
receive invoices, and pay invoices.
    (b) By the Contractor, to accept and fill orders, submit invoices, 
and receive payment.


532.905  Invoice payments.

    (a) General and architect-engineer contracts. Before exercising the 
authority to modify the date for constructive acceptance or 
constructive approval of progress payments in the clauses listed in 
this section, you must prepare a written justification explaining why a 
longer period is necessary. An official one level above you must 
approve your justification. Determine the time needed on a case-by-case 
basis.
    (1) In subdivision (a)(6)(i) of the clause at FAR 52.232-25, Prompt 
Payment, do not specify a constructive acceptance period that exceeds 
30 days.
    (2) In subdivision (a)(4)(i)(A) of the clause at FAR 52.232-26, 
Prompt Payment for Fixed-Price Architect-

[[Page 37223]]

Engineer Contracts, do not specify a constructive acceptance period 
that exceeds 30 days.
    (3) In subdivision (a)(4)(i)(B) of the clause at FAR 52.232-26, 
Prompt Payment for Fixed-Price Architect-Engineer Contracts, do not 
specify a period for constructive approval of progress payments that 
exceeds 7 days.
    (b) Construction contracts.
    (1) Determine on a case-by-case basis the time specified for 
payment of progress payments in subdivision (a)(1)(i)(A) of the clause 
at FAR 52.232-27, Prompt Payment for Construction Contracts. Justify in 
writing periods longer than 14 days. An official one level above you 
must approve your justification. Under no circumstances may more than 
30 days be specified.
    (2) Determine the time to be specified in subdivision (a)(4)(i) of 
FAR clause 52.232-27, for constructive acceptance or approval, on a 
case-by-case basis. This time may not exceed 7 days unless you justify 
a longer period in writing, and obtain the approval of an official one 
level above you. Under no circumstances may more than 30 days be 
specified.
    (c) Federal Supply Service.
    (1) To increase efficiency and reduce costs to the Government, 
Federal Supply Service contracts under the Stock, Special Order, and 
Schedules Programs may authorize payment within 10 days of receipt of a 
proper invoice. The contract must meet all the following conditions:
    (i) The contractor agrees to full cycle electronic commerce.
    (ii) The contract includes FAR 52.232-33, Mandatory Information for 
Electronic Funds Transfer Payment.
    (2) The 10 day payment terms apply to each order that meets all the 
following conditions:
    (i) FSS places the order using EDI in accordance with the Trading 
Partner Agreement.
    (ii) The contractor submits EDI invoices in accordance with the 
Trading Partner Agreement or invoices through the GSA Finance Center 
Internet-based invoice process.
    (iii) A GSA Finance Center pays the invoices using EFT.
    (3) The 10 day payment terms do not apply to any order:
    (i) Placed by a GSA contracting activity other than FSS.
    (ii) Placed by or paid by another agency.


532.905-70  Certification of payment to subcontractors and suppliers 
under fixed-price construction contracts.

    The contractor may use GSA Form 2419, Certification of Progress 
Payments Under Fixed-Price Construction Contracts, for the 
certification required by FAR 52.232-5.


532.905-71  Final payment--construction and building service contracts.

    The following procedures apply to construction and building service 
contracts.
    (a) Do not process the final payment on construction or building 
service contracts until the contractor submits a properly executed GSA 
Form 1142, Release of Claims. If, after repeated attempts, you are 
unable to obtain a release of claims from the contractor, you may 
process the final payment with the approval of assigned legal counsel.
    (b) The amount of final payment must include, as appropriate, 
deductions to cover any of the following:
    (1) Liquidated damages for late completion.
    (2) Liquidated damages for labor violations.
    (3) Amounts withheld for improper payment of labor wages.
    (4) The amount of unilateral change orders covering defects and 
omissions.


532.908  Contract clauses.

    (a) Federal Supply Service. For FSS Stock, Special Order, and 
Schedules solicitations and contracts that provide payment in 10 days 
under 532.905(c):
    (1) If the contract will include FAR 52.212-4 insert the clause at 
552.232-74, Invoice Payments. GSA received a class deviation to allow 
use of 552.232-74 for commercial items.
    (2) If the contract will not include FAR 52.212-4, insert 552.232-
25, Prompt Payment, instead of FAR 552.232-25.
    (b) Leasehold Interests in Real Property.
    (1) Insert 552.232-75, Prompt Payment, in solicitations and 
contracts for acquiring leasehold interests in real property.
    (i) You may modify the date for constructive acceptance in 
subparagraph (b)(2) of the clause to specify a period longer than 7 
calendar days (but not to exceed 30 days) if necessary because of the 
nature of the services to be received, inspected or accepted by the 
Government. Prepare a written justification for specifying the longer 
period and obtain your contracting director's approval.
    (ii) Use Alternate I if the lease contract does not contain 
provisions for ordering alterations or overtime utility services.
    (2) Insert 552.232-76, Electronic Funds Transfer Payment, in 
solicitations and contracts for acquisition of leasehold interests in 
real property.

Subpart 532.70--Authorizing Payment by Governmentwide Commercial 
Purchase Card


532.7001  Definition.

    Governmentwide commercial purchase card has the same meaning as in 
FAR 13.101.


532.7002  Solicitation requirements.

    (a) In solicitations for supplies and services except 
telecommunications services (i.e., major systems such as the Federal 
Telecommunications System or DSN) and multiple award schedule 
solicitations, request offerors to indicate if they will accept payment 
by Government commercial credit card. Identify the credit card brand(s) 
under the GSA SmartPay program that may be used to make payments under 
the contract, on the cover page or in Section L of the solicitation.
    (b) For multiple award schedule contracts, identify the credit card 
brand(s) under the GSA SmartPay program that may be used to make 
payments under the contract in the contract award letter.
    (c) For orders placed by GSA, you may authorize payment by 
Government commercial credit card only for orders that do not exceed 
$100,000 (see GSA Order, Interim Guidance on Use of the Governmentwide 
Commercial Purchase Card Service (OAD 4200.8).
    (d) Consider requesting offerors to designate different levels for 
which they may accept payment by Government commercial credit card, for 
example:

    If awarded a contract under this solicitation, the offeror 
agrees to accept payment by commercial credit card for orders of:

____ $2,500 or less
____ $25,000 or less
____ $50,000 or less
____ $100,000 or less


532.7003  Contract clause.

    Insert the clause at 552.232-77, Payment By Credit Card, in 
solicitations and resultant contracts for supplies and services except 
telecommunications services (i.e., major systems such as the Federal 
Telecommunications System or DSN) to provide for payment by 
Governmentwide commercial purchase card as an alternative method of 
payment for orders.
    (a) Use the basic clause when only GSA will place orders under the 
contract.
    (b) Use Alternate I for solicitations and contracts under which 
other agencies may place orders directly.

[[Page 37224]]

Subpart 532.71--Payments for Recurring Services


532.7101  Definitions.

    Fixed roll payment means automatic payment of fixed amounts at 
regular intervals without submission of an invoice or receiving report.


532.7102  Applicability.

    You may use fixed roll payments in any contract that meets all four 
of the following conditions:
    (a) The contract provides for recurring services at a constant 
level for a period of at least two months.
    (b) The contract does not contain any discount items.
    (c) Payment is due 30 days following completion of the service 
month.
    (d) For a commercial item acquisition, fixed roll payments are 
consistent with customary commercial practice.


532.7104  Contract clauses.

    (a) Noncommercial item acquisitions. For solicitations and 
contracts to be paid by fixed roll payment, include the clause at 
552.232-1, Payments. Do not include the clauses at FAR 52.232-1, 
Payments, or 552,232-70, Invoice Requirements.
    (b) Commercial item acquisitions. For solicitations and contracts 
to be paid by fixed roll payment, tailor the clause at FAR 52.212-4 by 
an addendum as noted in paragraphs (b) (1) and (2) of this section. 
This tailoring is authorized by a deviation approved on January 5, 
1999.
    (1) Delete paragraph FAR 52.212-4(g), Invoice.
    (2) Add the following to paragraph FAR 52.212-4(i), Payment:

    The Government shall pay the Contractor, without submission of 
invoices or vouchers, 30 days after the service period, the prices 
stipulated in this contract for services rendered and accepted, less 
any deductions provided in this contract.

PART 533--PROTESTS, DISPUTES, AND APPEALS

Subpart 533.1--Protests

Sec.
533.103  Protests to the agency
533.103-72  Solicitation provisions

Subpart 533.2--Disputes and Appeals

533.211  Contracting officer's decision

    Authority: 40 U.S.C. 486(c).

Subpart 533.1--Protests


Sec. 533.103  Protests to the agency.


Sec. 533.103-72  Solicitation provisions.

    Include the provision at 552.233-70, Protests Filed Directly With 
the General Services Administration, in each solicitation for either:
    (a) Supplies, services, construction, or architect-engineer 
services expected to exceed the simplified acquisition threshold.
    (b) Acquisition of leasehold interests in real property expected to 
exceed the simplified lease acquisition threshold.

Subpart 533.2--Disputes and Appeals


Sec. 533.211  Contracting officer's decision.

    In addition to the information in FAR 33.211(a)(4)(v), advise the 
contractor in your written decision that a notice of appeal must:
    (a) Describe the nature of the dispute and the relief sought, the 
contract provisions involved, and any other additional information or 
comments relating to the dispute considered important.
    (b) Be signed personally by the appellant (the prime contractor 
making the appeal) or by an officer of the appellant corporation, or 
member of the appellant firm, or by the contractor's duly authorized 
representative or attorney.

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

PART 536--CONSTRUCTION AND ARCHITECT--ENGINEER CONTRACTS

Subpart 536.1--General

Sec.
536.101  Applicability

Subpart 536.2--Special Aspects of Contracting for Construction

536.213  Special procedures for sealed bidding in construction 
contracting
536.213-3  Invitations for bids
536.213-370  Bids that include alternates
536.213-371  Bids that include options
536.213-372  Bids that include both alternates and options
536.270  Exercise of options
536.271  Project labor agreements

Subpart 536.5--Contract Clauses

536.570  Supplemental provisions and clauses
536.570-1  Definitions
536.570-2  Authorities and limitations
536.570-3  Specialist
536.570-4  Basis of award--construction contract
536.570-5  Working hours
536.570-6  Use of premises
536.570-7  Measurements
536.570-8  Specifications and drawings
536.570-9  Shop drawings, coordination drawings, and schedules
536.570-10  Samples
536.570-11  Heat
536.570-12  Use of equipment by the Government
536.570-13  Subcontracts
536.570-14  Requirement for a project labor agreement

    Authority: 40 U.S.C. 486(c).

Subpart 536.1--General


536.101  Applicability.

    If a requirement in this part is inconsistent with a requirement in 
another GSAR part, this part takes precedence.

Subpart 536.2--Special Aspects of Contracting for Construction


536.213  Special procedures for sealed bidding in construction 
contracting.


536.213-3  Invitations for bids.


536.213-370  Bids that include alternates.

    (a) The base bid must include all features essential to a sound and 
adequate building design. If it appears that funds available for a 
project may be insufficient to include all desired features in the base 
bid, you may issue a solicitation for a base bid and include one or 
more alternates in the order of priority. Use alternates only if they 
are clearly justified and involve substantial amounts of work in 
relation to the base bid. Their use must be limited and should involve 
only ``add'' alternates.
    (b) Before opening bids that include alternates, determine, and 
record in the contract file, the amount of funds available for the 
project. The amount recorded must be announced at the beginning of the 
bid opening. The amount is the controlling factor in determining the 
low bidder. This amount may be increased later when determining the 
alternate items to award to the low bidder if the following condition 
is met: the award amount of the base bid plus the combination of 
alternate items does not exceed the amount offered for the base bid and 
the same combination of alternate items by any other responsible bidder 
whose bid conforms to the solicitation. This requirement prevents the 
displacement of the low bidder by manipulating the alternates to be 
used.


536.213-371  Bids that include options.

    (a) Subject to the limitations in paragraph (c) of this section, 
you may include options in contracts if it is in the Government's 
interest.
    (b) the appropriate use of options may include, but is not limited 
to, any of the following:
    (1) If additional work is anticipated but funds are not expected to 
be available at the time of award, and it would not be practicable to 
award a separate contract or to permit an additional contractor to work 
on the same site.
    (2) If fixed building equipment, e.g. elevators or escalators, will 
be installed under the construction contract and it is

[[Page 37225]]

advantageous to have the installer of the equipment maintain and 
service the equipment during the warranty period.
    (c) You must not use options under any of the following conditions:
    (1) the prospective option represents known firm requirements for 
which funds are available unless competition for the option quantity is 
impracticable once the initial contract is awarded.
    (2) The contractor will incur undue risks; e.g., the price or 
availability of necessary materials or labor is not reasonably 
foreseeable.
    (d) Solicitations containing option provisions must state the 
period within which the options may be exercised.
    (e) Solicitations must state whether the basis of award is 
inclusive or exclusive of the options. Before issuing a solicitation 
that includes evaluated options, you must determine that there is 
reasonable certainty that funds will be made available to permit 
exercise of the option.


536.213-372  Bids that include both alternates and options.

    (a) Solicitations may include both alternates and options if the 
conditions in 536.213-370, Bids that include alternates, and 536.213-
371, Bids that include options, are satisfied. In these solicitations, 
the low bidder for purposes of award is the responsible bidder offering 
the lowest aggregate price for the base bid and the alternates, in the 
order of priority listed in the solicitation, that provide the most 
work features within the funds available at bid opening, plus all 
options designated to be evaluated.
    (b) The basis of award may require the evaluation of options 
associated with alternates if the related alternate is selected.
    (c) Before opening bids that include both alternates and options, 
determine, and record in the contract file, the amount of funds 
available for the project (i.e., for the base bid and alternate work). 
The amount recorded must be announced at the beginning of the bid 
opening. This amount may be increased later when determining the 
alternate items to be awarded to the low bidder if the following 
condition is met: the award amount of the base bid and evaluated 
options plus the alternate items does not exceed the amount offered for 
the base bid, the evaluated options, and the same combination of 
alternate items by any other responsible bidder whose bid conforms to 
the solicitation.


536.270  Exercise of options.

    (a) If exercising an option, notify the contractor, in writing, 
within the time period specified in the contract.
    (b) Exercise options only after determining that all the following 
conditions exist:
    (1) Funds are available.
    (2) The requirement covered by the option fulfills an existing 
Government need.
    (3) Exercising the option is the most advantageous method of 
satisfying the Government's need, price and other factors considered.
    (c) Before exercising an option, you must determine that the action 
complies with the option's terms and this section's requirements. 
Include your written determination in the contract file.
    (d) The contract modification, or other written document which 
notifies the contractor of the exercise of the option, must cite the 
option clause as authority. If exercising an unpriced or unevaluated 
option, cite the statutory authority permitting the use of other than 
full and open competition (see FAR 6.302 and 517.207).


536.271  Project labor agreements.

    (a) Authority. This subpart implements the Presidential memorandum 
of June 5, 1997, on using project labor agreements (PLAs) on Federal 
construction projects. The Presidential memorandum authorizes executive 
departments and agencies to require PLAs on large and significant 
construction projects for facilities to be owned by a Federal 
department or agency.
    (b) Applicability. These policies and procedures apply to all GSA 
activities authorized to award contracts for construction of facilities 
to be owned by a Federal department or agency. You may use a PLA in 
leasehold arrangement, Federally funded projects, and other appropriate 
circumstances.
    (c) Definitions.
    Construction means construction, alteration, or repair (including 
dredging, excavating, and painting) of buildings, structures, or other 
real property. The terms buildings, structures, or other real property 
are defined further in Federal Acquisition Regulation (FAR) 36.102.
    Labor organization means a labor organization engaged in an 
industry affecting commerce, and any agent of such an organization, and 
includes any organization of any kind, and any agency, or employee 
representation committee, group, association, or plan so engaged in 
which employees participate and which exists for the purpose, in whole 
or in part, of dealing with employers concerning grievances, labor 
disputes, wages, rates of pay, hours, or other terms or conditions of 
employment, and any conference, general committee, joint or system 
board, or joint council so engaged which is subordinate to a national 
or international labor organization (42 U.S.C. 2000e(d)).
    Large and significant project means a Federal construction project 
with a total cost to the Federal Government of more than $5 million.
    Project Labor Agreement (PLA) means an agreement between the 
contractor, subcontractors, and the union(s) representing workers. 
Under a PLA, the contractor and subcontractors on a project and the 
union(s) agree on terms and conditions of employment for the project, 
establishing a framework for labor-management cooperation to advance 
the Government's procurement interest in cost, efficiency, and quality.
    (d) Policy.
    (1) You may, on a project-by-project basis, use a PLA on a large 
and significant project when both of the following conditions apply:
    (i) A PLA will advance the Government's procurement interests.
    (ii) No laws that apply to the specific construction project 
preclude the use of the PLA.
    (2) Do not require any contractor to enter into a PLA with any 
particular labor organization.
    (3) The use of a PLA is not intended to create any right or 
benefit, substantive or procedural enforceable by a nonfederal party 
against the United States, its departments, and agencies, its officers 
or employees, or any other person.
    (e) Procedures.
    (1) As part of procurement planning for construction projects with 
a total estimated cost to the Federal Government of more than $5 
million, you may consider requiring a PLA.
    (2) To require a PLA, you must determine whether use of a PLA will 
advance the Government's procurement interests in all the following 
areas:
    (i) Cost, efficiency, and quality.
    (ii) Promoting labor-management stability.
    (iii) Promoting compliance with applicable legal requirements 
governing safety and health, equal employment opportunity, labor and 
employment standards, and other matters.
    (3) In making the determination required by paragraph (b) of this 
section, consult with the agency project or program manager and obtain 
guidance from the Agency Labor Advisor and assigned legal counsel. You 
should consider the following factors:
    (i) Whether past experience with construction projects in the 
location where the project will be performed indicates that a PLA will 
be effective.

[[Page 37226]]

    (ii) Whether delays in performance of the construction contract 
would have significant adverse impact on the mission of the agency or 
operation of the installation or facility.
    (iii) Whether any law applies to the specific construction project 
that would impede use of a PLA.
    (iv) Whether the labor organizations in the area can provide a 
reliable source of skilled, experienced building trades workers in all 
crafts needed on the job site for the project's duration (taking into 
consideration other major construction work in the area).
    (v) Whether the Government can benefit from uniform work rules and 
working conditions and established procedures for resolving labor 
disputes, no strike/no lock-out protections.
    (vi) Whether the Government can benefit from increased stability 
and labor peace that derives from greater labor-management cooperation.
    (vii) Whether the requirements for a PLA will unreasonably restrict 
competition.
    (viii) Other relevant information.
    (4) Document the rationale supporting your decision to require a 
PLA in the contract file.
    (5) Provide the following information to the Agency Labor Advisor 
(GSA Acquisition Policy Division (MVP)):
    (i) A brief description of the project.
    (ii) The estimated cost.
    (iii) A copy of the document supporting your decision to require a 
PLA.
    (iv) A copy of the solicitation.

Subpart 536.5--Contract Clauses


536.570  Supplemental provisions and clauses.


536.570-1  Definitions.

    Insert 552.236-70, Definitions, in solicitations and contracts if 
construction, dismantling, demolition, or removal of improvements is 
contemplated.


536.570-2  Authorities and limitations.

    Insert 552.236-71, Authorities and Limitations, in solicitations 
and contracts if construction, dismantling, demolition, or removal of 
improvements is contemplated and the contract amount is expected to 
exceed the simplified acquisition threshold.


536.570-3  Specialist

    Insert 552.236-72, Specialist, in solicitations and contracts for 
construction if the technical sections of the contract require unusual 
experience or specialized facilities for adequate contract performance.


536.570-4  Basis of award--construction contract.

    (a) Insert a provision substantially the same as 552.236-73, Basis 
of Award--Construction Contract, in solicitations for fixed-price 
construction contracts except if any of the following conditions apply:
    (1) The solicitation requires the submission of a lump-sum bid 
only.
    (2) The solicitation is for an indefinite quantity contract.
    (3) The contract amount is not expected to exceed the simplified 
acquisition threshold.
    (b) Instructions for use.

------------------------------------------------------------------------
 If the solicitation requests
  the submission of a . . .                Then use the . . .
------------------------------------------------------------------------
(1) Base bid and unit prices.  Basic provision.
(2) Base bid and options.....  Provision with its Alternate I.
(3) Base bid and alternates..  Provision with its Alternate II.
(4) Base bid, alternates, and  Provision with its Alternate III.
 options.
------------------------------------------------------------------------

536.570-5  Working hours.

    Insert 552.236-74, Working Hours, in solicitations and contracts if 
construction, dismantling, demolition, or removal of improvements is 
contemplated and the contract amount is expected to exceed the 
simplified acquisition threshold.


536.570-6  Use of premises.

    Insert 552.236-75, Use of Premises, in solicitations and contracts 
if construction, dismantling, demolition, or removal of improvements is 
contemplated.


536.570-7  Measurements.

    Insert 552.236-76, Measurements, in solicitations and contracts if 
construction, dismantling, demolition, or removal of improvements is 
contemplated.


536.570-8  Specifications and drawings.

    Insert the clause at 552.236-77, Specifications and Drawings, in 
solicitations and contracts if construction, dismantling, demolition, 
or removal of improvements is contemplated and the contract amount is 
expected to exceed the simplified acquisition threshold.


536.570-9  Shop drawings, coordination drawings, and schedules.

    Insert the clause at 552.236-78, Shop Drawings, Coordination 
Drawings, and Schedules, in solicitations and contracts if construction 
is contemplated and the contract amount is expected to exceed the 
simplified acquisition threshold.


536.570-10  Samples.

    Insert the clause at 552.236-79, Samples, in solicitations and 
contracts for construction if the technical sections of the contract 
require the submission and approval of samples.


536.570-11  Heat.

    Insert the clause at 552.236-80, Heat, in solicitations and 
contracts if construction, dismantling, demolition, or removal of 
improvements is contemplated.


536.570-12  Use of equipment by the Government.

    Insert the clause at 552.236-81, Use of Equipment by the 
Government, in contracts requiring heating and air-conditioning of 
existing buildings if it may be necessary for the Government to operate 
all or part of the equipment before final acceptance of the contract.


536.570-13  Subcontracts.

    Insert 552.236-82, Subcontracts, in solicitations and contracts for 
construction if the contract amount is expected to exceed the 
simplified acquisition threshold.


536.570-14  Requirement for a project labor agreement.

    Insert a clause substantially the same as 552.236-83, Requirement 
for a Project Labor Agreement, in solicitations and contracts that will 
require a project labor agreement.

Part 537--Service Contracting

Subpart 537.1--Service Contracts--General

Sec.
537.101  Definitions
537.110  Solicitation provisions and contract clauses

Subpart 537.2--Advisory and Assistance Services

537.270  Contract clause
    Authority: 40 U.S.C. 486(c).


[[Page 37227]]



Subpart 537.1--Service Contracts--General


537.101  Definitions.

    ``Contracts for building services'' means contracts for services 
relating to the operation and maintenance of a building (for example, 
janitorial; window washing; snow removal; trash removal; lawn and 
grounds care; inspection, maintenance and repair of fixed equipment 
(e.g., elevators, air-conditioning, hearing systems)) and protection or 
guard service.


537.110  Solicitation provisions and contract clauses.

Contracts for Building Services

    The following provision and clauses apply to contracts for building 
services:
    (a) Insert 552.237-70, Qualifications of Offerors, in solicitations 
if the contract amount is expected to exceed the simplified acquisition 
threshold.
    (b) Insert 552.237-71, Qualifications of Employees, in 
solicitations and contracts if the contract amount is expected to 
exceed the simplified acquisition threshold. If needed, use 
supplemental provisions or clause to describe specific requirements for 
employees performing work on the contract.
    (c) Insert 552.237-72, Prohibition Regarding ``Quasi-Military Armed 
Forces,'' in solicitations and contracts for guard service.

Subpart 537.2--Advisory and Assistance Services


537.270  Contract clause.

    Insert the clause at 552.237-73, Restriction on Disclosure of 
Information, in solicitations and contracts for proposal evaluation and 
analysis services.

PART 538--FEDERAL SUPPLY SCHEDULE CONTRACTING

Subpart 538.2--Establishing and Administering Federal Supply Schedules

Sec.
538.270  Evaluation of multiple award schedule (MAS) offers
538.271  MAS contract awards
538.272  MAS price reductions
538.273  Contract clauses

    Authority: 40 U.S.C. 486(c).

Subpart 538.2--Establishing and Administering Federal Supply 
Schedules


538.270  Evaluation of multiple award schedule (MAS) offers.

    (a) The Government will seek to obtain the offeror's best price 
(the best price given to the most favored customer). However, the 
Government recognizes that the terms and conditions of commercial sales 
vary and there may be legitimate reasons why the best price is not 
achieved.
    (b) Establish negotiation objectives based on a review of relevant 
data and determine price reasonableness.
    (c) When establishing negotiation objectives and determining price 
reasonableness, compare the terms and conditions of the MAS 
solicitation with the terms and conditions of agreements with the 
offeror's commercial customers. When determining the Government's price 
negotiation objectives, consider the following factors:
    (1) Aggregate volume of anticipated purchases.
    (2) The purchase of a minimum quantity or a pattern of historic 
purchases.
    (3) Prices taking into consideration any combination of discounts 
and concessions offered to commercial customers.
    (4) Length of the contract period.
    (5) Warranties, training, and/or maintenance included in the 
purchase price or provided at additional cost to the product prices.
    (6) Ordering and delivery practices.
    (7) Any other relevant information, including differences between 
the MAS solicitation and commercial terms and conditions that may 
warrant differentials between the offer and the discounts offered to 
the most favored commercial customer(s). For example, an offeror may 
incur more expense selling to the Government than to the customer who 
receives the offeror's best price, or the customer (e.g., dealer, 
distributor, original equipment manufacturer, other reseller) who 
receives the best price may perform certain value-added functions for 
the offeror that the Government does not perform. In such cases, some 
reduction in the discount given to the Government may be appropriate. 
If the best price is not offered to the Government, you should ask the 
offeror to identify and explain the reason for any differences. Do not 
require offerors to provide detailed cost breakdowns.
    (d) You may award a contract containing pricing which is less 
favorable than the best price the offeror extends to any commercial 
customer for similar purchases if you make a determination that both of 
the following conditions exist:
    (1) The prices offered to the Government are fair and reasonable, 
even though comparable discounts were not negotiated.
    (2) Award is otherwise in the best interest of the Government.


538.271  MAS contract awards.

    (a) MAS awards will be for commercial items as defined in FAR 
2.101. Negotiate contracts as a discount from established catalog 
prices.
    (b) Before awarding any MAS contract, determine that the offered 
prices are fair and reasonable (see FAR subpart 15.4 and 538.270). 
Document the negotiation and your determination using FAR 15.406-3 as 
guidance.
    (c) State clearly in the award document the price/discount 
relationship between the Government and the identified commercial 
customer (or category of customers) on which the award is predicated.


538.272  MAS price reductions.

    (a) Section 552.238-75, Price Reductions, requires the contractor 
to maintain during the contract period the negotiated price/discount 
relationship (and/or term and condition relationship) between the 
Government and the offeror's customer or category of customers on which 
the contract award was predicated (see 538.271(c)). If a change occurs 
in the contractor's commercial pricing or discount arrangement 
applicable to the identified commercial customer (or category of 
customers) that results in a less advantageous relationship between the 
Government and this customer or category of customers, the change 
constitutes a ``price reduction.''
    (b) Make sure that the contractor understands the requirements of 
section 552.238-75 and agrees to report to you all price reductions as 
provided for in the clause.


538.273  Contract clauses.

    (a) Multiple award schedules. Insert in solicitations and 
contracts:
    (1) 552.238-70, Identification of Electronic Office Equipment 
Providing Accessibility for the Handicapped, if you include electronic 
office equipment items.
    (2) 552.238-71, Submission and Distribution of Authorized FSS 
Schedule Pricelists. If GSA is not prepared to accept electronic 
submissions for a particular schedule delete:
    (i) Subparagraphs (c)(1)(ii) and (c)(3).
    (ii) The subparagraph identifier ``(i)'' in (c)(1) and the word 
``and'' at the end of subparagraph (i).
    (3) 552.238-72, Identification of Energy-Efficient Office Equipment 
and Supplies Containing Recovered Materials or Other Environmental 
Attributes.

[[Page 37228]]

    (4) 552.238-73, Cancellation.
    (b) Multiple and single award schedules. Insert in solicitations 
and contracts:
    (1) 552.238-74, Contractor's Report of Sales.
    (2) 552.238-75, Price Reductions.
    (3) 552.238-76, Industrial Funding Fee.

SUBCHAPTER G--CONTRACT MANAGEMENT

PART 542--CONTRACT ADMINISTRATION AND AUDIT SERVICES

Subpart 542.11--Production Surveillance and Reporting

Sec.
542.1107  Contract clause.

Subpart 542.15--Contractor Performance Information

542.1503  Procedures.
542.1503-71  Information to collect.

    Authority: 40 U.S.C. 486(c).

Subpart 542.11--Production Surveillance and Reporting


542.1107  Contract clause.

FSS Stock or Special Order Program

    Insert 552.242-70, Status Report of Orders and Shipments, in 
solicitations and indefinite quantity and requirements contracts for 
stock or special order program items. You also may use the clause in 
indefinite delivery definite quantity contracts for stock or special 
order program items when close monitoring is necessary because numerous 
shipments are involved.

Subpart 542.15--Contractor Performance Information


542.1503  Procedures.


542.1503-71  Information to collect.

    The system for collecting contractor performance data should 
include, as appropriate:
    (a) Timeliness of delivery or performance, for example:
    (1) Adherence to contract delivery schedules.
    (2) Resolution of delays
    (3) Number of ``show cause'' letters and ``cure notices'' issued.
    (4) Number of delinquent deliveries.
    (5) Number of contract extensions resulting from contractor-caused 
delays.
    (6) Timely submission or performance or required tests.
    (b) Conformance of product or service to contract requirements, for 
example:
    (1) Quality of workmanship.
    (2) Reliability.
    (3) Adequacy of correction of defects.
    (4) Number of safety defects.
    (5) Number of product rejections.
    (6) Results of laboratory tests.
    (7) Number and extent of warranty problems.
    (c) Customer comments, for example:
    (1) Number and quality of positive comments.
    (2) Number and nature of complaints.
    (3) Adequacy of resolving customer complaints.
    (d) Terminations for default.
    (e) On-the-job safety performance record, including the number of 
lost or restricted workdays due to occupational injuries in comparison 
to the national average.
    (f) Adequacy of contractor's quality assurance system.
    (g) Compliance with other key contract provisions, for example:
    (1) Subcontracting program.
    (2) Labor standards.
    (3) Safety standards.
    (4) Reporting requirements.
    (h) Exhibiting customer-oriented behavior.
    (i) Other performance elements identified by the Service.

PART 543--CONTRACT MODIFICATIONS

Subpart 543.2--Change Orders

Sec.
543.205  Contract clauses

    Authority: 40 U.S.C. 486(c).

Subpart 543.2--Change Orders

543.205  Contract clauses.

    (a) Construction.
    (1) Insert 552.243-70, Pricing of Adjustments, in solicitations and 
contracts if the contract:
    (i) Amount is expected to exceed the simplified acquisition 
threshold.
    (ii) Will be other than a cost type.
    (2) Insert 552.243-71, Equitable Adjustments, in solicitations and 
contracts containing FAR 52.243-4.
    (b) Multiple award schedules (MAS). Insert 552.243-72, 
Modifications (Multiple Award Schedule), in MAS solicitations and 
contracts issued by GSA. For solicitations and contracts issued under 
Federal Supply Classification (FSC) 65 you may use the clause with its 
Alternate I for products ordered from authorized Prime Vendors.

PART 546--QUALITY ASSURANCE

Subpart 546.3--Contract Clauses

Sec.
546.302  Fixed-price supply contracts
546.302-70  Source inspection by Quality Approved Manufacturer
546.302-71  Source inspection
546.312  Construction contracts

Subpart 546.4--Government Contract Quality Assurance

546.470-2  Certification testing

Subpart 546.7--Warranties

546.708  Warranties of Data
546.710  Contract clauses

    Authority: 40 U.S.C. 486(c).

Subpart 546.3--Contract Clauses


546.302  Fixed-price supply contracts.


546.302-70  Source inspection by Quality Approved Manufacturer.

    For contracts and solicitations issued by FSS:
    (a) Insert the clause at 552.246-70, Source Inspection by Quality 
Approved Manufacturer, in solicitations and contracts that provide for 
source inspection, except:
    (1) Multiple award schedule contracts.
    (2) Motor vehicle contracts.
    (3) Contracts awarded by the FSS Services Acquisition Center, 
unless you decide, together with the Central Office Quality Assurance 
Division (FQA), that inspection by Government personnel is necessary.
    (b) You may authorize inspection and testing at manufacturing 
plants or other facilities located outside the United States, Puerto 
Rico, or the Virgin Islands, under paragraph (a)(1) of the clause at 
552.246-70 under any of the circumstances listed in this paragraph. 
Coordinate the authorization with FQA and document it in the file.
    (1) Inspection services are available from another Federal agency 
with primary inspection responsibility in the geographic area.
    (2) An inspection interchange agreement exists with another agency 
for inspection at a contractor's plant.
    (3) The procurement is for the Agency for International Development 
and specifies the area of source.
    (4) Other considerations will ensure more economical and effective 
inspection consistent with the Government's interest.


546.302-71  Source inspection.

    For solicitations and contracts issued by FSS, if Government 
personnel at the source will perform inspection, insert 552.246-71, 
Source Inspection by Government.


546.312  Construction contracts.

    Insert the clause at 552.246-72, Final Inspection and Tests, in 
solicitations and contracts for construction that include FAR 52.246-
12, Inspection of Construction.

[[Page 37229]]

Subpart 546.4--Government Contract Quality Assurance


546.470-2  Certification testing.

    Certification testing determines whether an item conforms with a 
specification for the purpose of executing a certificate of compliance 
required by the specification. The contractor has responsibility for 
certification testing.

Subpart 546.7--Warranties


546.708  Warranties of data.

    (a) Use warranties of data only when you meet both of the following 
conditions:
    (1) You decide the use of a warranty is in the Government's 
interest.
    (2) The contracting director concurs in your decision.
    (b) The technical or specification manager has responsibility for 
developing any warranties of data.


546.710  Contract clauses.

    (a) Insert the clause at 552.246-17, Warranty of Supplies of a 
Noncomplex Nature, instead of FAR 52.246-17 in solicitations and 
contracts. Use the following alternates as applicable:
    (1) Commercial item acquisitions other than multiple award 
schedules. Use the clause at 552.246-17 with its Alternate I.
    (2) Other than commercial items in Class 8010. Use the clause at 
552.246-17 with its Alternate II.
    (3) Other than commercial items in Class 8030 or 8040. Use the 
clause at 552.246-17 with its Alternate III. In addition, specify in 
the solicitation whether the items are ``noncritical end use items'' or 
``critical end use items''.
    (b) Multiple award schedules, except international schedules. 
Insert the clause at 552.246-73, Warranty--Multiple Award Schedule, in 
solicitations and contracts.
    (c) International multiple award schedules. Insert the clause at 
552.246-74, Warranty--International Multiple Award Schedule, in 
solicitations and contracts.
    (d) Construction contracts expected to exceed the simplified 
acquisition threshold. Insert the clause at 552.246-75, Guarantees, in 
solicitations and contracts.
    (e) Pesticides. Insert the clause at 552.246-76, Warranty of 
Pesticides, in solicitations and contracts involving the procurement of 
pesticides.

PART 547--TRANSPORTATION

Subpart 547.3--Transportation in Supply Contracts

Sec.
547.300  Scope of subpart
547.303  Standard delivery terms and contract clauses
547.303-1  F.o.b origin
547.304  Determination of delivery terms
547.304-5  Exceptions
547.305  Solicitation provisions, contract clauses, and 
transportation factors

    Authority: 40 U.S.C. 486(c).

Subpart 547.3--Transportation in Supply Contracts


547.300  Scope of subpart.

    This subpart applies to FSS acquisitions.


547.303  Standard delivery terms and contract clauses.


547.303-1  F.o.b origin.

Contractor Responsibilities

    The contractor must both:
    (a) Request a carrier routing from the applicable transportation 
zone office on all shipments weighing 10,000 pounds or more.
    (b) Mail the original of the commercial bill of lading (CBL), to 
the office that authorized the CBL (applies to shipment on a CBL). 
Ensure that the signature of the carrier's agent and the annotation 
required by FAR 52.247-1 appear on the original and all copies of the 
CBL.


547.304  Determination of delivery terms.


547.304-5  Exceptions.

    (a) Solicitations that provide for delivery to Alaska, Hawaii, or 
Puerto Rico. Include notice that the offeror may specify delivery 
f.o.b. origin; f.o.b. vessel, part of shipment; f.o.b. destination; or 
any combination of these. If appropriate, provide for other delivery 
terms.
    (b) Federal Supply Schedules. If f.o.b. destination is offered for 
delivery within CONUS, attempt to obtain the same delivery term for 
shipment to Alaska, Hawaii, or Puerto Rico.


547.305  Solicitation provisions, contract clauses, and transportation 
factors.

    (a) Insert 552.247-70, Placarding Railcar Shipments, in 
solicitations and contracts if it is essential that the railcar doors 
be especially positioned next to the unloading dock, platform, or 
warehouse door.
    (b) Insert 552.247-71, Diversion of Shipment Under f.o.b. 
Destination Contracts, in Stock, Special Order Program (SOP), and 
Single Award Schedule solicitations and contracts which provide for 
f.o.b. destination shipment.

PART 549--TERMINATION OF CONTRACTS

Subpart 549.5--Contract Termination Clauses

Sec.
549.502  Termination for convenience of the Government

    Authority: 40 U.S.C. 486(c).

Subpart 549.5--Contract Termination Clauses


549.502  Termination for convenience of the Government.

Acquisitions Funded Through the Information Technology (IT) Fund

    (a) You may use the clause at 552.249-70, Termination for 
Convenience of the Government (Fixed-Price) (Short Form), when 
appropriate, in solicitations and contracts for the acquisition and 
maintenance of telephone systems funded through the Information 
Technology (IT) Fund. Use this clause with FAR 52.249-1 or FAR 52.249-3 
and 52.249-4.
    (b) If you use the clause at 552.249-70, you must also insert 
552.249-71, Submission of Termination Liability Schedule, in the 
solicitation and contract.

SUBCHAPTER H CLAUSES AND FORMS

PART 552 SOLICITATION PROVISIONS AND CONTRACT CLAUSES

552.000  Scope of part

Subpart 552.1--Instructions for Using Provisions and Clauses

552.101-70  Using Part 552
552.102  Incorporating provisions and clauses
552.103  Identification of provisions and clauses
552.104  Procedures for modifying and completing provisions and 
clauses
552.105  Procedures for using alternates
552.107-70  Provisions and clauses prescribed in subpart 552.1

Subpart 552.2--Text of Provisions and Clauses

552.200  Scope of subpart
552.203-5  Covenant Against Contingent Fees
552.203-70  Price Adjustment for Illegal or Improper Activity
552.203-71  Restriction on Advertising
552.209-70  Product Removal from Qualified Products List
552.209-71  Waiver of First Article Testing and Approval Requirement
552.209-72  Supplemental Requirements for First Article Approval--
Contractor Testing
552.209-73  Supplemental Requirements for First Article Approval--
Government Testing

[[Page 37230]]

552.211-8  Time of Delivery
552.211-70  Brand Name or Equal
552.211-71  Standard References
552.211-72  Reference to Specifications in Drawings
552.211-73  Marking
552.211-74  Charges for Marking
552.211-75  Preservation, Packaging and Packing
552.211-76  Charges for Packaging and Packing
552.211-77  Packing List
552.211-78  Commercial Delivery Schedule (Multiple Award Schedule)
552.211-79  Acceptable Age of Supplies
552.211-80  Age on Delivery
552.211-81  Time of Shipment
552.211-82  Notice of Shipment
552.211-83  Availability for Inspection, Testing, and Shipment/
Delivery
552.211-84  Non-Compliance with Contract Requirements
552.212-70  Preparation of Offer (Multiple Award Schedule)
552.212-71  Contract Terms and Conditions Applicable to GSA 
Acquisition of Commercial Items
552.212-72  Contract Terms and Conditions Required to Implement 
Statutes or Executive Orders Applicable to GSA Acquisition of 
Commercial Items
552.212-73  Evaluation--Commerical Items (Multiple Award Schedule)
552.214-70  ``All or None'' Offers
552.214-71  Progressive Awards and Monthly Quantity Allocations
552.214-72  Bid Sample Requirements
552.215-70  Examination of Records by GSA
552.215-71  Examination of Records by GSA (Multiple Award Schedule)
552.215-72  Price Adjustment--Failure to Provide Accurate 
Information
552.216-70  Economic Price Adjustment--FSS Multiple Award Schedule 
Contracts
552.216-71  Economic Price Adjustment--Stock and Special Order 
Program Contracts
552.216-72  Placement of Orders
552.216-73  Ordering Information
552.217-70  Evaluation of Options
552.217-71  Notice Regarding Option(s)
552.219-70  Allocation of Orders--Partially Set-aside Items
552.219-71  Notice to Offerors of Subcontracting Plan Requirements
552.219-72  Preparation, Submission, and Negotiation of 
Subcontracting Plans
552.219-73  Goals for Subcontracting Plan
552.219-74  Section 8(a) Direct Award
552.223-70  Hazardous Substances
552.223-71  Nonconforming Hazardous Materials
552.223-72  Hazardous Material Information
552.225-8  Buy American Act--Trade Agreements--Balance of Payments 
Program Certificate
552.225-9  Buy American Act--Trade Agreements--Balance of Payments 
Program
552.225-70  Notice of Procurement Restriction--Hand or Measuring 
Tools or Stainless Steel Flatware
552.227-70  Government Rights (Unlimited)
552.227-71  Drawings and Other Data to Become Property of Government
552.228-70  Workers' Compensation Laws
552.229-70  Federal, State, and Local Taxes
552.229-71  Federal Excise Tax--DC Government
552.232-1  Payments
552.232-8  Discounts for Prompt Payment
552.232-23  Assignment of Claims
552.232-25  Prompty Payment
552.232-70  Invoice Requirements
552.232-71  Adjusting Payments
552.232-72  Final Payment
552.232-73  Availability of Funds
552.232-74  Invoice Payments
552.232-75  Prompt Payment
552.232-76  Electronic Funds Transfer Payment
552.232-77  Payment By Credit Card
552.233-70  Protests Filed Directly with the General Services 
Administration
552.236-70  Definitions
552.236-71  Authorities and Limitations
552.236-72  Specialist
552.236-73  Basis of Award--Construction Contract
552.236-74  Working Hours
552.236-75  Use of Premises
552.236-76  Measurements
552.236-77  Specifications and Drawings
552.236-78  Shop Drawings, Coordination Drawings, and Schedules
552.236-79  Samples
552.236-80  Heat
552.236-81  Use of Equipment by the Government
552.236-82  Subcontracts
552.236-83  Requirement for a Project Labor Agreement
552.237-70  Qualifications of Offerors
552.237-71  Qualifications of Employees
552.237-72  Prohibition Regarding ``Quasi-Military Armed forces.''
552.237-73  Restriction on Disclosure of Information
552.238-70  Identification of Electronic Office Equipment Providing 
Accessibility for the Handicapped
552.238-71  Submission and Distribution of Authorized FSS Schedule 
Pricelists
552.238-72  Identification of Energy-Efficient Office Equipment and 
Supplies Containing Recovered Materials or Other Environmental 
Attributes
552.238-73  Cancellation
552.238-74  Contractor's Report of Sales
552.238-75  Price Reductions
552.238-76  Industrial Funding Fee
552.242-70  Status Report of Orders and Shipments
552.243-70  Price of Adjustments
552.243-71  Equitable Adjustments
552.243-72  Modifications (Multiple Award Schedule)
552.246-17  Warranty of Supplies of a Noncomplex Nature
552.246-70  Source Inspection by Quality Approved Manufacturer
552.246-71  Source Inspection by Government
552.246-72  Final Inspection and Tests
552.246-73  Warranty--Multiple Award Schedule
552.246-74  Warranty--International Multiple Award Schedule
552.246-75  Guarantees
552.246-76  Warranty of Pesticides
552.247-70  Placarding Railcar Shipments
552.247-71  Diversion of Shipment Under f.o.b. Destination Contracts
552.249-70  Termination for Convenience of the Government (Fixed 
Price) (Short Form)
552.249-71  Submission of Termination Liability Schedule
552.252-5  Authorized Deviations in Provisions
552.252-6  Authorized Deviations in Clauses
552.270-1  Instructions to Offerors--Acquisition of Leasehold 
Interest in Real Property
552.270-2  Historic Preference
552.270-3  Parties to Execute Lease
552.270-4  Definitions
552.270-5  Subletting and Assignment
552.270-6  Maintenance of Building and Premises--Right of Entry
552.270-7  Fire and Casualty Damage
552.270-8  Compliance with Applicable Law
552.270-9  Inspection--Right of Entry
552.270-10  Failure in Performance
552.270-11  Successors Bound
552.270-12  Alterations
552.270-13  Proposals for Adjustment
552.270-14  Changes
552.270-15  Liquidated Damages
552.270-16  Adjustment for Vacant Premises
552.270-17  Delivery and Condition
552.270-18  Default in Delivery--Time Extensions
552.270-19  Progressive Occupancy
552.270-20  Payment
552.270-21  Effect of Acceptance and Occupancy
552.270-22  Default by Lessor During the Term
552.270-23  Subordination, Nondisturbance and Attornment
552.270-24  Statement of Lease
552.270-25  Substitution of Tenant Agency
552.270-26  No Waiver
552.270-27  Integrated Agreement
552.270-28  Mutuality of Obligation
552.270-29  Acceptance of Space


552.000  Scope of part.

    This part provides the text of provisions and clauses which are 
unique to GSA or supplement the FAR.

Subpart 552.1--Instructions for Using Provisions and Clauses


552.101-70  Using Part 552.

    (a) Definition. ``Clause,'' as used in this subpart, means 
provision or clause as defined in FAR 52.101(a).
    (b) Numbering.
    (1) Clauses which are ``substantially'' the same as FAR clauses and 
clauses to be used instead of FAR clauses are identified as follows:
    (i) The clause has the same title as a clause in the FAR.
    (ii) The number 5 precedes the clause.
    (iii) The clause appears under the same subsection number and 
caption as in the FAR.

[[Page 37231]]

    (2) Supplemental clauses are numbered in the same manner as the 
FAR, except:
    (i) The chapter number precedes the clause.
    (ii) The subsection numbers begin with 70.
    (iii) The clauses are sequentially numbered, e.g., 552.232-70, 
552.232-71, etc.


552.102  Incorporating provisions and clauses.

    You may incorporate clauses prescribed in the GSAR for 
solicitations and contracts by reference.


552.103  Identification of provisions and clauses.

    Deviations. If the GSAR prescribes a class deviation from a FAR 
clause, identify the clause by the GSAR citation (e.g., 552.232-8 
PROMPT PAYMENT DISCOUNT (NOV 1987) (DEVIATION FAR 552.232-8)).


552.104  Procedures for modifying and completing provisions and 
clauses.

    (a) The procedures in FAR 52.104 apply when you modify or complete 
a GSAR provision or clause. Provisions and clauses shall not be 
modified unless the GSAR authorizes their modification.
    (b) You do not need to identify modifications of clauses which 
result from negotiations unless you issue an amendment to the 
solicitation.
    (c) In general, you should modify FAR or GSAR clauses only for 
individual cases. If a contracting activity develops a modification for 
repeated use, furnish a copy to the Office of GSA Acquisition Policy 
(MV) for potential inclusion in the GSAR.


552.105  Procedures for using alternates.

    The procedures in FAR 52.105 apply to GSAR part 552.


552.107-70  Provisions and clauses prescribed in subpart 552.1.

    (a) Insert the provision at 552.252-5, Authorized Deviations in 
Provisions, in solicitation that include any FAR or GSAR clause with an 
authorized deviation. You must use this provision in lieu of the FAR 
provision at 552.252-5.
    (b) Insert the clause at 552.252-6, Authorized Deviations in 
Clauses, in solicitations and contracts that include any FAR or GSAR 
clause with an authorized deviation. You must use this clause in lieu 
of the FAR clause at 52.252-6.

Subpart 552.2--Text of Provisions and Clauses


552.200  Scope of subpart.

    This subpart sets forth the text of all GSAR provisions and 
clauses. It also cross-references the location in the GSAR that 
prescribes the use of each provision and clause.


552.203-5  Covenant Against Contingent Fees.

    As prescribed in 502.404, insert the following clause:

Convenant Against Contingent Fees (Feb 1990)

    (a) The Contractor warrants that no person or agency has been 
employed or retained to solicit or obtain this contract upon an 
agreement or understanding for a contingent fee, except a bona fide 
employee or agency. For breach or violation of this warrant, the 
Government shall have the right to annul this contract without 
liability or, in its discretion, to deduct from the contract price 
or consideration, or otherwise recover the full amount of the 
contingent fee.
    (b) ``Bona fide agency,'' as used in this clause, means an 
established commercial or selling agency (including licensed real 
estate agents or brokers), maintained by a Contractor for the 
purpose of securing business, that neither exerts nor proposes to 
exert improper influence to solicit or obtain Government contracts 
nor holds itself out as being able to obtain any Government contract 
or contracts through improper influence.
    ``Bona fide employee,'' as used in this clause, means a person, 
employed by a Contractor and subject to the Contractor's supervision 
and control as to time, place, and manner of performance, who 
neither exerts nor proposes to exert improper influence to solicit 
or obtain Government contracts nor holds out as being able to obtain 
any Government contract or contracts through improper influence.
    ``Contingent fee,'' as used in this clause, means any 
commission, percentage, brokerage, or other fee that is contingent 
upon the success that a person or concern has in securing a 
Government contract.
    ``Improper influence,'' as used in this clause, means any 
influence that induces or tends to induce a Government employee or 
officer to give consideration or to act regarding a Government 
contract on any basis other than the merits of the matter.

(End of clause)


552.203-70  Price Adjustment for Illegal or Improper Activity.

    As prescribed in 503.104-9, insert the following clause:

Price Adjustment for Illegal or Improper Activity (Sep 1999)

    (a) If the head of the contracting activity (HCA) or his or her 
designee determines that there was a violation of subsection 27(a) 
of the Office of Federal Procurement Policy Act, as amended (41 
U.S.C. 423), as implemented in the Federal Acquisition Regulation, 
the Government, at its election, may--
    (1) Reduce the monthly rental under this lease by 5 percent of 
the amount of the rental for each month of the remaining term of the 
lease, including any option periods, and recover 5 percent of the 
rental already paid;
    (2) Reduce payments for alterations not included in monthly 
rental payments by 5 percent of the amount of the alterations 
agreement; or
    (3) Reduce the payments for violations by a Lessor's 
subcontractor by an amount not to exceed the amount of profit or fee 
reflected in the subcontract at the time the subcontract was placed.
    (b) Prior to making a determination as set forth above, the HCA 
or designee shall provide to the Lessor a written notice of the 
action being considered and the basis therefor. The Lessor shall 
have a period determined by the agency head or designee, but not 
less than 30 calendar days after receipt of such notice, to submit 
in person, in writing, or through a representative, information and 
argument in opposition to the proposed reduction. The agency head or 
designee may, upon good cause shown, determine to deduct less than 
the above amounts from payments.
    (c) The rights and remedies of the Government specified herein 
are not exclusive, and are in addition to any other rights and 
remedies provided by law or under this lease.

(End of clause)


552.203-71  Restriction on Advertising.

    As prescribed in 503.570-2, insert the following clause:

Restriction on Advertising (Sep 1999)

    The Contractor shall not refer to this contract in commercial 
advertising or similar promotions in such a manner as to state or 
imply that the product or service provided is endorsed or preferred 
by the White House, the Executive Office of the President, or any 
other element of the Federal Government, or is considered by these 
entities to be superior to other products or services. Any 
advertisement by the Contractor, including price-off coupons, that 
refers to a military resale activity shall contain the following 
statement: ``This advertisement is neither paid for nor sponsored, 
in whole or in part, by any element of the United States 
Government.''

(End of clause)


552.209-70  Produce Removal from Qualified Products List.

    As prescribed in 509.206-2, insert the following clause:

Product Removal From Qualified Products List (Sep 1999)

    If, during the performance of this contract, the product being 
furnished is for any reason (except those outlined in paragraph 
3.1.1 of the applicable Federal or Interim Federal Specification for 
security cabinets, security vault doors and changeable combination 
padlocks) removed from the Qualified Products List, the Government 
may terminate this contract for default.

(End of clause)

[[Page 37232]]

552.209-71  Waiver of First Article Testing and Approval Requirement.

    As prescribed in 509.306, insert the following provision:

Waiver of First Article Testing and Approval Requirement (Sep 1999)


    (a) Offerors must submit an offer including testing and 
approval, however, an offeror may submit an alternate offer 
excluding testing and approval, provided the offeror satisfies the 
requirements for the waiving of first article testing.
    (b) Before a waiver of the first article testing requirement of 
this solicitation will be considered, the offeror is requested to 
identify the procurement under which the product offered was 
previously approved and accepted:

----------------------------------------------------------------------
(Offeror to insert both contract number and applicable national 
stock number.)

(End of provision)


552.209-72  Supplemental Requirements for First Article Approval--
Contractor Testing.

    As prescribed in 509.308-1, insert the following clause:

Supplemental Requirements for First Article Approval--Contractor 
Testing (Sep 1999)

    (a) The term ``Contracting Officer'' as used in FAR 52.209-3, 
First Article Approval--Contractor Testing, means the Administrative 
Contracting Officer (ACO).
    (b) The Contractor shall have either (1) the necessary 
inspection and test equipment at the Contractor's plant to perform 
first article testing, or (2) if the inspection and test equipment 
is not available, a letter of commitment from a laboratory 
acceptable to the Government to perform the inspection and testing.
    (c) When the Government elects to witness the first article 
testing, the Contractor shall conduct the testing between the hours 
of 7:00 AM and 5:00 PM, Monday thru Friday, unless a different time 
is agreed to by the ACO.
    (d) The first article test report shall contain:
    (1) The complete test data, the test method(s) used and date of 
test;
    (2) Signature and printed name of the individual who performed 
the inspection;
    (3) Applicable specification/CID and/or drawing numbers;
    (4) Name and type of test equipment used; and
    (5) All numerical values as a result of testing with each noted 
as to whether it passes or fails the contract test requirements.
    (e) The first article shall be retained by the Contractor as the 
manufacturing standard and will be kept in a secure area, under 
control of the Quality Assurance Specialist (QAS), to protest 
against possible changes or alterations for the life of the 
contract. If the first article sample is destroyed during testing or 
damaged to a point making it unusable as a standard, the Contractor, 
upon Government request, shall provide a second sample.
    (f) If the Contractor delivers the approved first article as 
part of the contract quantity, it shall be in the last scheduled 
delivery under the contract.

(End of clause)


552.209-73  Supplemental Requirements for First Article Approval--
Government Testing.

    As prescribed in 509.308-2, insert the following clause:

Supplemental Requirements for First Article Approval--Government 
Testing (Sep 1999)

    (a) The term ``Contracting Officer'' as used in FAR 52.209-4, 
First Article Approval--Government Testing, means the Administrative 
Contracting Officer (ACO).
    (b) The first article shall be retained by the Contractor as the 
manufacturing standard and will be kept in a secure area, under the 
control of the Quality Assurance Specialist (QAS) to protect against 
possible changes or alterations for the life of the contract. If the 
first article sample is destroyed during testing or damaged to a 
point making it unusable as a standard, the Contractor, upon 
Government request, shall provide a second sample.
    (c) If the Contractor deliver the approved first article as part 
of the contract quantity, it shall be in the last scheduled delivery 
under the contract.

(End of clause)


552.211-8  Time of Delivery.

    As prescribed in 511.404(a)(1) insert the following clause:

Time of Delivery (Sep 1999)

    (a) The time of delivery for each item means the time required 
after receipt of an order (1) to make delivery to a destination in 
the case of delivered prices, or (2) to place shipment in transit in 
the case of f.o.b. origin prices.
    (b) Delivery is required to be made at the point(s) specified 
within ______ days after receipt of order.

(End of clause)
    Alternate I (SEP 1999). It it is necessary to show different 
delivery times for different items or groups of items, the 
Contracting Officer may substitute the following paragraph (b) for 
paragraph (b) of the basis clause.
    (b) Delivery is required to be made at the point(s) specified 
within the number of calender days after receipt of order as 
indicated below:

------------------------------------------------------------------------
                                                               Required
     Items or groups of items  (Special Item Numbers or        delivery
                       Nomenclature)                          time (DAYS
                                                                 ARO)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

552.211-70  Brand Name or Equal.

    As prescribed in 511.170-3(c), insert the following provision:

Brand Name or Equal (Feb 1996)

(As used in this clause, the term ``brand name'' includes 
identification of products by make and model.)
    (a) Identification of items in this solicitation by a ``brand 
name or equal'' description is intended to indicate the quality and 
characteristics of products that will be satisfactory and is not 
intended to be restrictive. Offers of ``equal'' products (including 
products of the brand name manufacturer other than the one described 
by brand name) will be considered for award if such products are 
clearly identified in the offers and are determined by the 
Government to meet fully the salient characteristics requirements 
listed in the solicitation.
    (b) Unless clearly indicated in the offer than an ``equal'' 
product is offered, the offer shall be considered as offering a 
referenced brand name product.
    (c)(1) An offeror proposing to furnish an ``equal'' product 
shall insert the name of the product in the space provided in the 
solicitation or otherwise clearly the product. The Government's 
determination as to the acceptability of the ``equal'' product shall 
be based on information furnished or otherwise identified in the 
offer as well as other information reasonably available to the 
purchasing activity. CAUTION TO OFFERORS. The purchasing activity is 
not responsible for locating or securing any information not 
identified in the offer and reasonably available to the purchasing 
activity. Accordingly, to ensure that sufficient information is 
available, the offeror must furnish with its offer all descriptive 
material (such as cuts, illustrations, drawings, or other 
information) necessary for the purchasing activity to (i) determine 
whether the product offered meets the special salient 
characteristics, and (ii) establish exactly what the offeror 
proposes to furnish. The information furnished may include specific 
references to information previously furnished or otherwise 
reasonably available to the purchasing activity.
    (2) An offeror proposing to modify a product to make it conform 
to the requirements of the solicitation shall (i) include in its 
offer a clear description of the proposed modifications and (ii) 
clearly mark any descriptive material to show the proposed 
modifications.
    (3) In sealed bidding, modifications proposed after bid opening 
to make a product conform to a brand name product referenced in the 
solicitation will not be considered.

(End of provision)


552.211-71  Standard References.

    As prescribed in 511.204(a), insert the following clause:

Standard References (Sep 1999)

    (a) All documents and publications (such as, but not limited to, 
manuals, handbooks, codes, standards and specifications) cited in 
this contract for the purpose of establishing requirements 
applicable to equipment, materials, or workmanship under this 
contract, shall be deemed to be incorporated herein as fully as if 
printed and bound with the specifications of this contract, in 
accordance with the following:

[[Page 37233]]

    (1) Wherever reference is made to Standard Specifications of the 
Public Buildings Service, Interim Federal Specifications, Interim 
Amendments to Federal Specifications, Interim Federal Standards, or 
Interim Amendments to Federal Standards, the Contractor shall comply 
with the requirements set out in the issue or edition identified in 
this contract.
    (2) Wherever reference is made to any such document other than 
those specified in subparagraph (1) above, the Contractor shall 
comply with the requirements set out in the edition specified in 
this contract, or if not specified, the latest edition or revision 
thereof, as well as the latest amendment or supplement thereto, in 
effect on the date of the solicitation on this project, except as 
modified by, as otherwise provided in, or as limited to type, class 
or grade, by the specifications of this contract.
    (b) Upon request the Contractor shall make available at the job 
site within a reasonable time, a copy of each trade manual and 
standard which is incorporated by reference in this contract and 
which governs quality and workmanship.

(End of clause)


552.211-72  Reference to Specifications in Drawings.

    As prescribed in 511.204(b), insert the following clause:

References to Specifications in Drawings (Feb 1996)

    If military or other drawings are made a part of this contract, 
any reference in the drawings to Federal specifications or standards 
will be considered to be a reference to the date of such Federal 
specification or standard identified in the contract. If the date of 
the Federal specification or standard is not identified in the 
contract, the edition, including revisions thereto, in effect on the 
date the solicitation is issued will apply.

(End of clause)


552.211-73  Marking.

    As prescribed in 511.204(c)(1), insert the following clause:

Marking (Feb 1996)

    (a) General requirements. Interior packages, if any, and 
exterior shipping containers shall be marked as specified elsewhere 
in the contract. Additional marking requirements may be specified on 
delivery orders issued under the contract. If not otherwise 
specified, interior packages and exterior shipping containers shall 
be marked in accordance with the following standards:
    (1) Deliveries to civilian activities. Supplies shall be marked 
in accordance with Federal Standard 123, edition in effect on the 
date of issuance of the solicitation.
    (2) Deliveries to military activities. Supplies shall be marked 
in accordance with Military Standard 129, edition in effect on the 
date of issuance of the solicitation.
    (b) Improperly marked material. When Government inspection and 
acceptance are at destination, and delivered supplies are not marked 
in accordance with contract requirements, the Government has the 
right, without prior notice to the Contractor, to perform the 
required marking, by contract or otherwise, and charge the 
Contractor therefor at the rate specified elsewhere in this 
contract. This right is not exclusive, and is in addition to other 
rights or remedies provided for in this contract.

(End of clause)


552.211-74  Charges for Marking.

    As prescribed in 511.204(c)(2), insert a clause substantially as 
follows:

Charges for Marking (Feb 1996)

    The rate provided for in paragraph (b) of 552.211-73, Marking, 
is $________* per man-hour or fraction thereof.

(End of clause)
    *The rate to be inserted in the above clause shall be determined 
and published by the Commissioner, Federal Supply Service, or a 
designee.


552.211-75  Preservation, Packaging and Packing.

    As prescribed in 511.204(c)(3), insert the following clause:

Preservation, Packaging, and Packing (Feb 1996)

    Unless otherwise specified, all items shall be preserved, 
packaged, and packed in accordance with normal commercial practices, 
as defined in the applicable commodity specification. Packaging and 
packing shall comply with the requirements of the Uniform Freight 
Classification and the National Motor Freight Classification (issue 
in effect at time of shipment) and each shipping container of each 
item in a shipment shall be of uniform size and content, except for 
residual quantities. Where special or unusual packing is specified 
in an order, but not specifically provided for by the contract, such 
packing details must be the subject of an agreement independently 
arrived at between the ordering agency and the Contractor.

(End of clause)


552.211-76  Charges for Packaging and Packing.

    As prescribed in 511.204(c)(4), insert a clause substantially as 
follows:

Charges for Packaging and Packing (Feb. 1996)

    If supplies shipped to a GSA wholesale distribution center are 
not packaged and packed in accordance with contract requirements, 
the Government has the right, without prior notice to the 
Contractor, to perform the required repackaging/repacking, by 
contract or otherwise, and charge the Contractor therefore at the 
rate of $____*____ per man-hour or fraction thereof. The Contractor 
will also be charged for material costs, if incurred. This right is 
not exclusive, and is in addition to other rights or remedies 
provided for in this contract.

(End of clause)
    *The rate to be inserted in the above clause shall be determined 
by the Commissioner, Federal Supply Service, or a designee.


552.211-77  Packing List.

    As prescribed in 511.204(d), insert the following clause:

Packing List (Feb. 1996)

    (a) A packing list or other suitable shipping document shall 
accompany each shipment and shall indicate:
    (1) Name and address of the consignor;
    (2) Name and complete address of the consignee;
    (3) Government order or requisition number;
    (4) Government bill of lading number covering the shipment (if 
any); and
    (5) Description of the material shipped, including item number, 
quantity, number of containers, and package number (if any).
    (b) When payment will be made by Government commercial credit 
card, in addition to the information in (a) above, the packing list 
or shipping document shall include:
    (1) Cardholder name and telephone number and
    (2) The term ``Credit Card.''

(End of clause)


552.211-78  Commercial Delivery Schedule (Multiple Award Schedule).

    As prescribed in 511.404(a)(2), insert the following clause:

Commercial Delivery Schedule (Multiple Award Schedule) (Feb. 1996)

    (a) Time of Delivery. The Contractor shall deliver to 
destination within the number of calendar days after receipt of 
order (ARO) in the case of F.O.B. Destination prices, or to place of 
shipment in transit in the case of F.O.B. Origin prices, as set 
forth below. Offerors shall insert in the ``Time of Delivery (days 
ARO)'' column in the schedule of Items a definite number of calendar 
days within which delivery will be made. In no case shall the 
offered delivery time exceed the Contractor's normal commercial 
practice. The Government requires the Contractor's normal commercial 
delivery time, as long as it is less than the ``STATED'' delivery 
time(s) shown below. If the Offeror does not insert a delivery time 
in the schedule of items, the Offeror will be deemed to offer 
delivery in accordance with the Government's stated delivery time as 
stated below:

[[Page 37234]]



------------------------------------------------------------------------
                                           Government's    Contractor's
  Items or group of items (Special Item       stated          normal
         Number or Nomenclature)           delivery time    commercial
                                            (days ARO)     delivery time
------------------------------------------------------------------------
                                          ..............  ..............
                                          ..............  ..............
                                          ..............  ..............
------------------------------------------------------------------------

    (b) Expedited Delivery Times. For those items that can be 
delivered quicker than the delivery times in paragraph (a), above, 
the Offeror is requested to insert below, a time (hours/days ARO) 
that delivery can be made when expedited delivery is requested.

------------------------------------------------------------------------
                                                              Expedited
       Item or group of items (Special Item Number or          delivery
                       Nomenclature)                         time (HOURS/
                                                              DAYS ARO)
------------------------------------------------------------------------
                                                             ...........
                                                             ...........
                                                             ...........
------------------------------------------------------------------------

    (c) Overnight and 2-Day Delivery Times. Ordering activities may 
require overnight or 2-day delivery. The Offeror is requested to 
annotate its price list or by separate attachment identify the items 
that can be delivered overnight or within 2 days. Contractors 
offering such delivery services will be required to state in the 
cover sheet to its FSS price list details concerning this service.

(End of clause)


552.211-79  Acceptable Age of Supplies.

    As prescribed in 511.404(a)(3)(i), insert the following clause:

Acceptable Age of Supplies (Feb. 1996)

    The supplies furnished under this contract shall not be more 
than ____ months old, beginning with the first full month after the 
date of manufacture marked on the container. For the purpose of this 
clause, supplies shall be considered to be furnished (1) when they 
are offered to the Government for inspection and testing, or (2) on 
the date of shipment if shipment is authorized to be made without 
prior inspection by the Government. If the age of the supplies 
furnished under this contract is greater than the specified period, 
the Government may exercise its right to reject the supplies.

(End of clause)
    Alternate I (FEB 1996). For items having a limited shelf-life, 
the sentence below should be substituted for the first sentence of 
the basic clause when authorized:
    The supplies furnished under this contract shall not be more 
than ____ days old, beginning with the date of manufacture (month, 
day, year) marked on the container.


552.211-80  Age on Delivery.

    As prescribed in 511.404(a)(3)(ii) insert the following clause:

Age on Delivery (Feb. 1996)

    Included in the description of each shelf-life item is a 
statement regarding the ``age on delivery.'' The age of the item(s) 
shall not exceed the number of months shown in the item description, 
counted from the first day of the month after the month of 
manufacture to the date of delivery to the specified delivery 
point(s). If the age of the supplies delivered under this contract 
is greater than the number of months shown, the Government may 
exercise its right to reject the supplies.

(End of clause)


552.211-81  Time of Shipment.

    As prescribed in 511.404(a)(4), insert the following clause:

Time of Shipment (Feb. 1996)

    Shipment is required within ______ calendar days after receipt 
of order.

(End of clause)
    Alternate I (FEB 1996). If the contract will require shipment 
more than 45 calendar days after receipt of the order, the following 
paragraph should be added to the basic clause.
    Each delivery order will specify that shipment is required no 
later than the number of days shown above. If such order also states 
that ``Early Shipment is Precluded,'' the Contractor agrees to make 
shipment no sooner than ______ calendar days after receipt of order. 
Earlier shipments may result in nonacceptance of the supplies at the 
delivery point at the time of arrival.

(The second number to be inserted should be 15 calendar days less 
than the first number.)


552.211-82  Notice of Shipment.

    As prescribed in 511.404(a)(5), insert the following clause:

Notice of Shipment (Feb 1996)

    If specified in an order placed under this contract, the 
Contractor shall, at the time each shipment is made on such order, 
furnish a notice of shipment to either the consignee or the ordering 
office or both, as specified. This requirement may be satisfied by 
completion and return of appropriate forms furnished by the ordering 
office or by the furnishing of copies of bills of lading, freight 
bills, or similar documents in accordance with normal commercial 
practice if such document clearly identifies the order number, items 
and quantities shipped, date of shipment, point of origin, method of 
shipment and routing, and the name of initial carrier.

(End of clause)


552.211-83  Availability for Inspection, Testing, and Shipment/
Delivery.

    As prescribed in 511.404(a)(6), insert the following clause:

Availability for Inspection, Testing, and Shipment/Delivery (Feb 1996)

    (a) The Government requires that the supplies be made available 
for inspection and testing within ________*________ calendar days 
after receipt of [Insert ``Notice of Award'' or ``order''], and be 
[Insert ``shipped'' or ``delivered''] within ________*________ 
calendar days after receipt of (1) notice of approval and release by 
the Government inspector or (2) authorization to ship without 
Government inspection.
    (b) Failure to make supplies available for inspection and 
testing or to [Insert ``ship'' or ``deliver''] as required by this 
clause may result in termination of this contract for default.

(End of clause)
    Alternate I (Feb. 1996). If the contract is for stock items, the 
Contracting Officer shall insert ``shipped'' or ``ship'' in the 
basic clause, add the following paragraph (b) and redesignate 
paragraph (b) of the basic clause as paragraph (c).
    (b) If notice of approval and release by the Government 
inspector or authorization to ship without Government inspection is 
received before ________*________ calendar days after receipt of the 
[Insert ``Notice of Award'' or ``order''], receipt of such notice 
shall be deemed to be received on the ________*________ calendar day 
after receipt of [Insert ``Notice of Award'' or ``order'']. 
Shipments shall not be made before the ________*________ calendar 
day after receipt of the [Insert ``Notice of Award'' or ``order''] 
unless authorized in writing by the Contracting Officer.
    *Entries are normally the same number of days specified for 
availability.


552.211-84  Non-Compliance With Contract Requirements.

    As prescribed in 511.404(b), insert the following clause:

Non-Compliance With Contract Requirements (Feb 1996)

    In the event the Contractor, after receiving written notice from 
the Contracting Officer of non-compliance with any requirement of 
this contract, fails to initiate promptly such action as may be 
appropriate to comply with the specified requirement within a 
reasonable period of time, the Contracting Officer shall have the 
right to order the Contractor to stop any or all work under the 
contract until the Contractor has complied or has initiated such 
action as may be appropriate to comply within a reasonable period of 
time. The Contractor will not be

[[Page 37235]]

entitled to any extension of contract time or payment for any costs 
incurred as a result of being ordered to stop work for such cause.

(End of clause)


552.212-70  Preparation of Offer (Multiple Award Schedule).

    As prescribed in 512.301(a)(1), insert the following clause:

Preparation of Offer (Multiple Award Schedule) (Aug 1997)

    (a) Definitions. Concession, as used in this solicitation, means 
a benefit, enhancement or privilege (other than a discount), which 
either reduces the overall cost of a customer's acquisition or 
encourages a customer to consummate a purchase. Concessions include, 
but are not limited to freight allowance, extended warranty, 
extended price guarantees, free installation and bonus goods.
    Discount, as used in this solicitation, means a reduction to 
catalog prices (published or unpublished). Discounts include, but 
are not limited to, rebates, quantity discounts, purchase option 
credits, and any other terms or conditions other than concessions) 
which reduce the amount of money a customer ultimately pays for 
goods or services ordered or received. Any net price lower than the 
list price is considered a ``discount'' by the percentage difference 
from the list price to the net price.
    (b) For each Special Item Number (SIN) included in an offer, the 
Offeror shall provide the information outlined in paragraph (c). 
Offerors may provide a single response covering more than one SIN, 
if the information disclosed is the same for all products under each 
SIN. If discounts and concessions vary by model or product line, 
offerors shall ensure that information is clearly annotated as to 
item or items referenced.
    (c) Provide information described below for each SIN:
    (1) Two copies of the offeror's current published (dated or 
otherwise identified) commercial descriptive catalogs and/or price 
list(s) from which discounts are offered. If special catalogs or 
price lists are printed for the purpose of this offer, such 
descriptive catalogs or price lists shall include a statement 
indicating the special catalog or price list represent a verbatim 
extract from the Offeror's commercial catalog and/or price list and 
identify the descriptive catalog and/or price list from which the 
information has been extracted.
    (2) Next to each offered item in the commercial catalog and/or 
price list, the Offeror shall write the special item number (SIN) 
under which the item is being offered. Unless a special catalog or 
price list is submitted, all other items shall be marked 
``excluded,'' lined out, and initiated by the offeror.
    (3) The discount(s) offered under this solicitation. The 
description of discounts offered shall include all discounts, such 
as prompt payment discounts, quantity/dollar volume discounts 
(indicate whether models/products can be combined within the SIN or 
whether SINs can be combined to earn discounts), blanket purchase 
agreement discounts, or purchase option credits. If the terms of 
sale appearing in the commercial catalogs or price list on which an 
offer is based are in conflict with the terms of this solicitation, 
the latter shall govern.
    (4) A description of concessions offered under this solicitation 
which are not granted to other customers. Such concessions may 
include, but are not limited to, an extended warranty, a return/
exchange goods policy, or enhanced or additional services.
    (5) If the Offeror is a dealer/reseller or the Offeror will use 
dealers to perform any aspect of contract awarded under this 
solicitation, describe the functions, if any, that the dealer/
reseller will perform.

(End of clause)


552.212-71  Contract Terms and Conditions Applicable to GSA Acquisition 
of Commercial Items.

    As prescribed in 512.301(a)(2), insert the following clause:

Contract Terms and Conditions Applicable to GSA Acquisition of 
Commercial Items (Sep 1999)

    The Contractor agrees to comply with any provision or clause 
that is incorporated herein by reference to implement agency policy 
applicable to acquisition of commercial items or components. The 
provision or clause in effect based on the applicable regulation 
cited on the date the solicitation is issued applies unless 
otherwise stated herein. The following provisions and clauses are 
incorporated by reference:

[The contracting officer should either check the provisions and 
clauses that apply or delete the provisions and clauses that do not 
apply from the list. The contracting officer may add the date of the 
provision or clause if desired for clarity.
    (a) Provisions.

____ 552.237-70  Qualifications of Offerors

    (b) Clauses.

____ 552.203-71  Restriction on Advertising
____ 552.211-73  Marking
____ 552.2215-70  Examination of Records by GSA
____ 552.215-71  Examination of Records by GSA (Multiple Award 
Schedule)
____ 552.215-72  Price Adjustment--Failure to Provide Accurate 
Information
____ 552.219-70  Allocation of Orders--Partially Set-Aside Items
____ 552.228-70  Workers' Compensation Laws
____ 552.229-70  Federal, State, and Local Taxes
____ 552.232-8  Discounts for Prompt Payment
____ 552.232-23  Assignment of Claims
____ 552.232-71  Adjusting Payments
____ 552.232-72  Final Payment
____ 552.232-73  Availability of Funds
____ 552.237-71  Qualifications of Employees
____ 552.238-71  Submission and Distribution of Authorized FSS 
Schedule Price List
____ 552.238-74  Contractor's Report of Sales
____ 552.238-75  Price Reductions
____ 552.242-70  Status Report of Orders and Shipments
____ 552.243-72  Modifications (Multiple Award Schedule)
____ 552.246-73  Warranty--Multiple Award Schedule
____ 552.246-76  Warranty of Pesticides

(End of clause)


552.212-72  Contract Terms and Conditions Required To Implement 
Statutes or Executive Orders Applicable to GSA Acquisition of 
Commercial Items.

    As prescribed in 512.301(a)(3), insert the following clause:

Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders Applicable to GSA Acquisition of Commercial Items (Sep 
1999)

    The Contractor agrees to comply with any provision or clause 
that is incorporated herein by reference to implement provisions of 
law or Executive Orders applicable to acquisition of commercial 
items or components. The provision or clause in effect based on the 
applicable regulation cited on the date the solicitation is issued 
applies unless otherwise stated herein. The following provisions and 
clauses are incorporated by reference:

[The contracting officer should either check the provisions and 
clauses that apply or delete the provisions and clauses that do not 
apply from the list. The contracting officer may add the date of the 
provision or clause if desired for clarity.]
    (a) Provisions.

____ 552.223-72  Hazardous Material Information
____ 552.225-8  Buy American Act--Trade Agreements--Balance of 
Payments Program Certificate

    (b) Clauses.

____ 552.223-70  Hazardous Substances
____ 552.223-71  Nonconforming Hazardous Material
____ 552.225-9  Buy American Act--Trade Agreements--Balance of 
Payments Program
____ 552.238-70  Identification of Electronic Office Equipment 
Providing Accessibility for the Handicapped
____ 552.238-72  Identification of Energy-Efficient Office Equipment 
and Supplies Containing Recovered Materials or Other Environmental 
Attributes
____ 552.238-76  Industrial Funding Fee

(End of clause)


552.212-73  Evaluation--Commercial Items (Multiple Award Schedule).

    As prescribed in 512.301(a)(4), insert the following provision:

Evaluation--Commercial Items (Multiple Award Schedule) (Aug 1997)

    (a) The Government may make multiple awards for the supplies or 
services offered in response to this solicitation that meet the 
definition of a ``commercial item'' in FAR 52.202-1. Awards may be 
made to those responsible offerors that offer reasonable pricing, 
conforming to the solicitation, and will be most advantageous to the

[[Page 37236]]

Government, taking into consideration the multiplicity and 
complexity of items of various manufacturers and the differences in 
performance required to accomplish or produce required end results, 
production and distribution facilities, price, compliance with 
delivery requirements, and other pertinent factors. By providing a 
selection of comparable supplies or services, ordering activities 
are afforded the opportunity to fulfill their requirements with the 
item(s) that constitute the best value and that meet their needs at 
the lowest overall cost.
    (b) A written notice of award or acceptance of an offer, mailed 
or otherwise furnished to the offeror within the time for acceptance 
specified in the offer, shall result in a binding contract without 
further action by either party. Before the offer's specified 
expiration time, the Government may accept an offer (or part of an 
offer), whether or not there are negotiations after its receipt, 
unless a written notice of withdrawal is received before award.

(End of provision)
    Alternate I (AUG 1997). When anticipating competition of 
identical items, add the following paragraph after paragraph (b) of 
the basic provision.
    (c) The Government reserves the right to award only one contract 
for all or a part of a manufacturer's product line. When two or more 
offerors (e.g., dealers/resellers) offer the identical product, 
award may be made competitively to only one offeror on the basis of 
the lowest price. (Discounts for early payment will not be 
considered as an evaluation factor in determining the low offeror). 
During initial open season for an option period, any offers that are 
equal to or lower than the current contract price received for 
identical items will be considered. Current contractors will also be 
allowed to submit offers for identical items during this initial 
open season. The current contractor which has the identical item on 
contract will be included in the evaluation process. The Government 
will evaluate all offers and may award only one contract for each 
specified product or aggregate group.


552.214-70  ``All or None'' Offers.

    As prescribed in 514.201-6, insert the following provision:

``All or None'' Offers (Sep 1999)

    (a) Unless awards in the aggregate are specifically precluded in 
this solicitation, the Government reserves the right to evaluate 
offers and make awards on all ``all or none'' basis as provided 
below.
    (b) An offer submitted on an ``all or none'' or similar basis 
will be evaluated as follows: The lowest acceptable offer exclusive 
of the ``all or none'' offer will be selected with respect to each 
item (or group of items when the solicitation provides for aggregate 
awards) and the total cost of all items thus determined shall be 
compared with the total of the lowest acceptable ``all or none'' 
offer. Award will be made to result in the lowest total cost to the 
Government.

(End of provision)
    Alternate I (SEP 1999). For a requirements or indefinite 
quantity contract, the following paragraph (b) shall be substituted 
in the basic provision:
    (b) An offer submitted on an ``all or none'' or similar basis 
will not be considered unless the offer is low on each item to which 
the ``all or none'' offer is made applicable. The term ``each item'' 
as used in this provision refers either to an item that under the 
terms of the solicitation may be independently awarded, or to a 
group of items on which an award is to be made in the aggregate.


552.214-71  Progressive Awards and Monthly Quantity Allocations.

    As prescribed in 514.201-7(a), insert the following clause:

Progressive Awards and Monthly Quantity Allocations (Sep 1999)

    (a) Monthly quantity allocation.
    (1) Set forth below are the Government's estimated annual and 
monthly requirements for each stock item covered by this 
solicitation. Offerors shall indicate, in the spaces provided, the 
monthly quantity which they are willing to furnish of any item or 
group of items involving the use of the same production facilities. 
In making monthly allocations, offerors are urged to group as many 
items as possible. Such groupings will make it possible for the 
Government to make fullest use of the production capabilities of 
each offeror.
    (2) Offerors need not limit their monthly allocations to the 
Government's estimated monthly requirements, since additional 
unanticipated needs may occur during the period of the contract. If 
an offeror does not insert monthly allocation quantities, it will be 
deemed to offer to furnish all of the Government's requirements, 
even though they may exceed the stated estimated requirements.

------------------------------------------------------------------------
                                Estimated annual      Estimated monthly
    National stock number         requirements          requirements
------------------------------------------------------------------------
 
 
------------------------------------------------------------------------


                  Bidders Monthly Quantity Allocations
------------------------------------------------------------------------
                                                              Monthly
                Items or groups of items                    allocation
                                                             quantity
------------------------------------------------------------------------
 
 
------------------------------------------------------------------------

    (b) Progressive awards. If the low responsive offeror's monthly 
quantity allocation is less than the Government's estimated 
requirements, the Government may make progressive awards beginning 
with the low responsive offeror and including each next low 
responsive offeror to the extent necessary to meet the estimated 
requirements.
    (c) Ordering procedures. If progressive awards are made, orders 
will be placed first with the Contractor offering the lowest price 
on each item normally up to that Contractor's maximum quantity 
allocation and then, in the same manner, successively to other 
Contractors. When cumulative orders during any month, placed with a 
lower priced Contractor, equal or exceed 95 percent of its monthly 
quantity allocation, to avoid the placement of unduly small orders 
or the splitting of a subsequent order, the Government reserves the 
right to award the full quantity of the subsequent order to the next 
lower priced Contractor. In no case will orders be placed with any 
Contractor in excess of its monthly quantity allocation.

(End of clause)


552.214-72  Bid Sample Requirements.

    As prescribed in 514.202-4(a)(3), insert the following provision:

Bid Sample Requirements (Sep 1999)

    This provision supplements FAR 52.214-20, which is incorporated 
by reference. Samples shall be from the production of the 
manufacturer whose products will be supplied under resultant 
contracts.
    (a) Two bid samples are required for each of the following items 
in this solicitation:

----------------------------------------------------------------------
    (b) Two representative samples shall be submitted for each of 
the following items upon which a bid is submitted:

[[Page 37237]]



------------------------------------------------------------------------
            Items                  Acceptable representative samples
------------------------------------------------------------------------
 
 
------------------------------------------------------------------------

    Note:
    (1) Bidders {time}  are or {time}  are not authorized to re-
apply samples being retained by GSA in connection with previous 
solicitations and/or resultant contracts. When the block ``are'' is 
marked by the government, FAR 52.214-20, Alternate II, shall apply.
    (2) Bidders who propose to furnish an item or group of items 
from more than one manufacturer or production point must submit two 
samples from the production of each manufacturer or production 
point.
    (c) Samples will be evaluated to determine compliance with all 
characteristics listed below:

------------------------------------------------------------------------
        Subjective characteristics            Objective characteristics
------------------------------------------------------------------------
 
 
------------------------------------------------------------------------

    (d) Forward samples addressed to the Sample Room indicated 
below. Except for samples delivered by U.S. Mail, deliveries will be 
accepted between the hours of ____________________ Mondays through 
Fridays, official holidays excluded.
    Caution: Use proper address for method of shipment selected.

Mail and Parcel Post
    (Insert Address of Bid Sample Room)
Freight or Express
    (Insert address of Bid Sample Room)

(End of provision)


552.215-70  Examination of Records by GSA.

    As prescribed in 514.201-7(b) and 515.209-70(a) insert the 
following clause:

Examination of Records by GSA (Feb 1996)

    The Contractor agrees that the Administrator of General Services 
or any duly authorized representatives shall, until the expiration 
of 3 years after final payment under this contract, or of the time 
periods for the particular records specified in Subpart 4.7 of the 
Federal Acquisition Regulation (48 CFR 4.7), whichever expires 
earlier, have access to and the right to examine any books, 
documents, papers, and records of the Contractor involving 
transactions related to this contract or compliance with any clauses 
thereunder. The Contractor further agrees to include in all its 
subcontracts hereunder a provision to the effect that the 
subcontractor agrees that the Administrator of General Services or 
any authorized representatives shall, until the expiration of 3 
years after final payment under the subcontract, or of the time 
periods for the particular records specified in Subpart 4.7 of the 
Federal Acquisition Regulation (48 CFR 4.7), whichever expires 
earlier, have access to and the right to examine any books, 
documents, papers, and records of such subcontractor involving 
transactions related to the subcontract or compliance with any 
clauses thereunder. The term ``subcontract'' as used in this clause 
excludes (a) purchase orders not exceeding $100,000 and (b) 
subcontracts or purchase orders for public utility services at rates 
established for uniform applicability to the general public.

(End of clause)


552.215-71  Examination of Records by GSA (Multiple Award Schedule).

    As prescribed in 515.209-70(c), insert the following clause:

Examination of Records by GSA (Multiple Award Schedule) (Aug 1997)

    The Contractor agrees that the Administrator of General Services 
or any duly authorized representative shall have access to and the 
right to examine any books, documents, papers and records of the 
contractor involving transactions related to this contract for 
overbillings, billing errors, compliance with the Price Reduction 
clause and compliance with the Industrial Funding Fee clause of this 
contract. This authority shall expire 3 years after final payment. 
The basic contract and each option shall be treated as separate 
contracts for purposes of applying this clause.

(End of clause)


552.215-72  Price Adjustment--Failure to Provide Accurate Information.

    As prescribed in 515.408(d), insert the following clause:

Price Adjustment--Failure To Provide Accurate Information (Aug 1997)

    (a) The Government, at its election, may reduce the price of 
this contract or contract modification if the Contracting Officer 
determines after award of this contract or contract modification 
that the price negotiated was increased by a significant amount 
because the Contractor failed to:
    (1) Provide information required by this solicitation/contract 
or otherwise requested by the Government; or
    (2) Submit information that was current, accurate, and complete; 
or
    (3) Disclose changes in the Contractor's commercial 
pricelist(s), discounts or discounting policies which occurred after 
the original submission and prior to the completion of negotiations.
    (b) The Government will consider information submitted to be 
current, accurate and complete if the data is current, accurate and 
complete as of 14 calendar days prior to the date it is submitted.
    (c) If any reduction in the contract price under this clause 
reduces the price for items for which payment was made prior to the 
date of the modification reflecting the price reduction, the 
Contractor shall be liable to and shall pay the United States--
    (1) The amount of the overpayment; and
    (2) Simple interest on the amount of such overpayment to be 
computed from the date(s) of overpayment to the Contractor to the 
date the Government is repaid by the Contractor at the applicable 
underpayment rate effective each quarter prescribed by the Secretary 
of Treasury under 26 U.S.C. 6621(a)(2).
    (d) Failure to agree on the amount of the decrease shall be 
resolved as a dispute.
    (e) In addition to the remedy in paragraph (a) of this clause, 
the Government may terminate this contract for default. The rights 
and remedies of the Government specified herein are not exclusive, 
and are in addition to any other rights and remedies provided by law 
or under this contract.

(End of Clause)


552.216-70  Economic Price Adjustment--FSS Multiple Award Schedule 
Contracts.

    As prescribed in 516.203-4(a), insert the following clause:

Economic Price Adjustment--FSS Multiple Award Schedule Contracts (Sep 
1999)

    Price adjustments include price increases and price decreases. 
Adjustments will be considered as follows:
    (a) Contractors shall submit price decreases anytime during the 
contract period in which they occur. Price decreases will be handled 
in accordance with the provisions of the Price Reduction Clause.
    (b) Contractors may request price increases under the following 
conditions:
    (1) Increases resulting from a reissue or other modification of 
the Contractor's commercial catalog/pricelist that was used as the 
basis for the contract award.
    (2) Only three increases will be considered during the contract 
period.
    (3) Increases are requested after the first 30 days of the 
contract period and prior to the last 60 days of the contract 
period.
    (4) At least 30 days elapse between requested increases.
    (c) The aggregate of the increases in any contract unit price 
under this clause shall not exceed ______* percent of the original 
contract unit price. The Government reserves the right to raise this 
ceiling where changes in market conditions during the contract 
period support an increase.
    *Insert the percent appropriate at the time the solicitation is 
issued. This percentage should normally be 10 percent, unless based 
on a trend established by an appropriate index such as the Producer 
Prices and Price Index during the most recent 6-month period 
indicates that a different percentage is more appropriate. Any 
ceiling other than 10 percent must be approved by the contracting 
director.
    (d) The following material shall be submitted with the request 
for a price increase:
    (1) A copy of the commercial catalog/pricelist showing the price 
increase and the effective date for commercial customers.

[[Page 37238]]

    (2) Commercial Sales Practice format regarding the Contractor's 
commercial pricing practice relating to the reissued or modified 
catalog/price-list, or a certification that no change has occurred 
in the data since completion of the initial negotiation or a 
subsequent submission.
    (3) Documentation supporting the reasonableness of the price 
increase.
    (e) The Government reserves the right to exercise one of the 
following options:
    (1) Accept the Contractor's price increases as requested when 
all conditions of (b), (c), and (d) of this clause are satisfied;
    (2) Negotiate more favorable discounts from the new commercial 
prices when the total increase requested is not supported; or,
    (3) Remove the product(s) from contract involved pursuant to the 
Cancellation Clause of this contract, when the increase requested is 
not supported.
    (f) The contract modification reflecting the price adjustment 
shall be signed by the Government and made effective upon receipt of 
notification from the Contractor that the new catalog/pricelist has 
been mailed to the addresses previously furnished by the Contracting 
Officer, provided that in no event shall such price adjustment be 
effective prior to the effective date of the commercial price 
increases. The increased contract prices shall apply to delivery 
orders issued to the Contractor on or after the effective date of 
the contract modification.

(End of clause)
    * Insert the percent appropriate at the time the solicitation is 
issued. This percentage should normally be 10 percent, unless based 
on a trend established by an appropriate index such as the Producer 
Prices and Price Index during the most recent 6-month period 
indicates that a different percentage is more appropriate. Any 
ceiling other than 10 percent must be approved by the contracting 
director.
    Alternate I (SEP 1999). The following is substituted for 
paragraphs (b) and (c) of the clause:
    (b) Contractors may request price increases to be effective on 
or after the first 12 months of the contract period providing all of 
the following conditions are met:
    (1) Increases resulting from a reissue or other modification of 
the Contractor's commercial catalog/pricelist that was used as the 
basis for the contract award.
    (2) No more than three increases will be considered during each 
succeeding 12-month period of the contract. (For succeeding contract 
periods of less than 12 months, up to three increases will be 
considered subject to the other conditions of this subparagraph 
(b)).
    (3) Increases are requested before the last 60 days of the 
contract period.
    (4) At least 30 days elapse between requested increases.
    (c) In any contract period during which price increases will be 
considered, the aggregate of the increases during any 12-month 
period shall not exceed *________ percent of the contract unit price 
in effect at the end of the preceding 12-month period. The 
Government reserves the right to raise the ceiling when market 
conditions during the contract period support such a change.
    * Insert the percentage appropriate at the time the solicitation 
is issued. This percentage should be determined based on the trend 
established by an appropriate index such as the Producer Prices and 
Price Index. A ceiling of more than 10 percent must be approved by 
the Contracting Director.


552.216-71  Economic Price Adjustment--Stock and Special Order Program 
Contracts.

    As prescribed in 516.203-4(b), insert the following clause:

Economic Price Adjustment-Stock and Special Order Program Contracts 
(Sep 1999)

    (a) ``Producer Price Index'' (PPI), as used in this clause, 
means the originally released index, not seasonally adjusted, 
published by the Bureau of Labor Statistics, U.S. Department of 
Labor (Labor) for product code ________ found under Table ________.
    (b) During the term of the contract, the award price may be 
adjusted once upward or downward a maximum of *________ percent. Any 
price adjustment for the product code shall be based upon the 
percentage change in the PPI released in the month prior to the 
initial month of the contract period specified in the solicitation 
for sealed bidding or the month prior to award in negotiation (the 
base index) and the PPI released 12 months later (the updated 
index). The formula for determining the Adjusted Contract Price 
(ACP) applicable to shipments for the balance of the contract period 
is-
[GRAPHIC] [TIFF OMITTED] TR09JY99.000

    (c) If the PPI is not available for the month of the base index 
or the updated index, the month with the most recently published PPI 
prior to the month determining the base index or updated index shall 
be used.
    (d) If a product code is discontinued, the Government and the 
Contractor will mutually agree to substitute a similar product code. 
If Labor designates an index with a new title and/or code number as 
continuous with the product code specified above, the new index 
shall be used.
    (e) Unless the Contractor's written request for a price 
adjustment resulting from the application of the formula in (b) 
above is received by the Contracting Officer within 30 calendar days 
of the release of the updated index, the Contractor shall have 
waived its right to an upward price adjustment for the balance of 
the contract. Alternatively, the Contracting Officer will 
unilaterally adjust the award price downward when appropriate using 
the updated index defined in (b) above.
    (f) Price adjustments shall be effective upon execution of a 
contract modification by the Government or on the 31st day following 
the release of the updated index, whichever is later, shall indicate 
the updated index and percent of change as well as the ACP, and 
shall not apply to delivery orders issued before the effective date.

(End of clause)
    Alternate I (SEP 1999). As prescribed in 516.203-4(b) (1) and 
(2), substitute the following paragraphs (b), (e) and (f) for 
paragraphs (b), (e) and (f) of the basic clause:
    (b) In any option period, the contract price may be adjusted 
upward or downward a maximum of *________ percent.
    (1) For the first option period, any price adjustment for the 
product code shall be based upon the percentage change in the PPI 
released in the month prior to the initial month of the contract 
period specified in the solicitation for sealed bidding or the month 
prior to award in negotiation (the base index) and the PPI released 
in the third month before completion of the initial contract period 
stated in the solicitation (the updated index). This initial 
contract period may be less than 12 months. The formula for 
determining the Adjusted Contract Price (ACP) applicable to 
shipments during the first option period is--
[GRAPHIC] [TIFF OMITTED] TR09JY99.001

    (2) For any subsequent option period, the price adjustment shall 
be the percentage change between the previously updated index (the 
new base index) and the PPI released 12 months later (the most 
recent updated index). This percentage shall be applied to the 
Current Contract Price (CCP). The formula for determining the ACP 
applicable to shipments for the subsequent option period(s) is--
[GRAPHIC] [TIFF OMITTED] TR09JY99.002

    (e) Unless the Contractor's written request for a price 
adjustment resulting from the application of the formulas in (b) (1) 
or (2) above is received by the Contracting Officer within 30 
calendar days of the date of the Government's preliminary written 
notice of its intent to exercise the option, the Contractors shall 
have waived its right to an upward price adjustment for that option 
period. Alternatively, the Contracting Officer in its written notice 
shall exercise the option at the CCP or at a reduced price when 
appropriate using the formulas in (b) (1) or (2) above.
    (f) Price adjustments shall be effected by execution of a 
contract modification by the Government indicating the most recent 
updated index and percent of change and shall apply to delivery 
orders placed on or after the first day of the option period.

[[Page 37239]]

    Alternate II (SEP 1999). As prescribed in 516.203-4(b)(2), add 
the following paragraph (g) to the basic clause.
    (g) No price adjustment will be made unless the percentage in 
the PPI is at least **____ percent.
    *The appropriate percentage should be determined based upon the 
historical trend in the PPI for the product code. A ceiling of more 
than 10 percent must be approved by the Contracting Director.
    **The Contracting Officer should insert a lower percent than the 
maximum percentage stated in paragraph (b) of the clause.


552.216-72  Placement of Orders.

    As prescribed in 516.506, inset the following clause:

Placement of Orders (Sep 1999)

    (a) Delivery orders (orders) will be placed by:

[Contracting Officer insert names of Federal agencies]
    (b) Orders may be placed through Electronic Data Interchange 
(EDI) or mailed in paper form. EDI orders shall be placed using the 
American National Standards Institute (ANSI) X12 Standard for 
Electronic Data Interchange (EDI) format.
    (c) If the Contractor agrees, GSA's Federal Supply Service (FSS) 
will place all orders by EDI using computer-to-computer EDI. If 
computer-to-computer EDI is not possible, FSS will use an 
alternative EDI method allowing the Contractor to receive orders by 
facsimile transmission. Subject to the Contractor's agreement, other 
agencies may place orders by EDI.
    (d) When computer-to-computer EDI procedures will be used to 
place orders, the Contractor shall enter into one or more Trading 
Partner Agreements (TPA) with each Federal agency placing orders 
electronically in order to ensure mutual understanding by the 
parties of certain electronic transaction conventions and to 
recognize the rights and responsibilities of the parties as they 
apply to this method of placing orders. The TPA must identify, among 
other things, the third party provider(s) through which electronic 
orders are placed, the transaction sets used, security procedures, 
and guidelines for implementation. Federal agencies may obtain a 
sample format to customize as needed from the office specified in 
(g) below.
    (e) The Contractor shall be responsible for providing its own 
hardware and software necessary to transmit and receive data 
electronically. Additionally, each party to the TPA shall be 
responsible for the costs associated with its use of third party 
provider services.
    (f) Nothing in the TPA will invalidate any part of this contract 
between the Contractor and the General Services Administration. All 
terms and conditions of this contract that otherwise would be 
applicable to a mailed order shall apply to the electronic order.
    (g) The basic content and format of the TPA will be provided by:
    General Services Administration, Acquisition Operations and 
Electronic Commerce Center (FCS), Washington, DC 20406
    Telephone: [Contracting officer insert appropriate telephone 
numbers]
    FAX:

(End of clause)
    Alternate I (SEP 1999). As prescribed in 516.506, substitute the 
following paragraphs (a), (b), (c), and (d) for paragraphs (a), (b), 
(c), and (d) of the basic clause:
    (a) All delivery orders (orders) under this contract will be 
placed by the General Services Administration's Federal Supply 
Service (FSS). The Contractor is not authorized to accept orders 
from any other agency. Violation of this restriction may result in 
termination of the contract pursuant to the default clause of this 
contract.
    (b) All orders shall be placed by Electronic Data Interchange 
(EDI) using the American National Standards Institute (ANSI) X12 
Standard for Electronic Data Interchange (EDI) format.
    (c) If the Contractor agrees, transmission will be computer-to-
computer EDI. If computer-to-computer EDI is not possible, FSS will 
use an alternative EDI method allowing the Contractor to receive 
orders by facsimile transmission.
    (d) When computer-to-computer EDI procedures will be used to 
place orders, the Contractor shall enter into a Trading Partner 
Agreement (TPA) with FSS in order to ensure mutual understanding by 
the parties of certain electronic transaction conventions and to 
recognize the rights and responsibilities of the parties as they 
apply to this method of placing orders. The TPA must identify among 
other things, the third party provider(s) through which electronic 
orders are placed, the transaction sets used, security procedures, 
and guidelines for implementation.
    Alternate II (SEP 1999). As prescribed in 516.506(c), substitute 
the following paragraph (a) for paragraph (a) of the basic clause:
    (a) The organizations listed below may place orders under this 
contract. Questions regarding organizations authorized to use this 
schedule should be directed to the Contracting Officer.
    (1) Executive agencies.
    (2) Other Federal agencies.
    (3) Mixed-ownership Government corporations.
    (4) The District of Columbia.
    (5) Government contractors authorized in writing by a Federal 
agency pursuant to 48 CFR 51.1.
    (6) Other activities and organizations authorized by statute or 
regulation to use GSA as a source of supply.


552.216-73  Ordering Information.

    As prescribed in 516.506(c), insert the following provision:

Ordering Information (Sep 1999)

    (a) In accordance with the Placement of Orders clause of this 
solicitation, the offeror elects to receive orders placed by GSA's 
Federal Supply Service (FSS) by either {time}  facsimile 
transmission or {time}  computer-to-computer Electronic Data 
Interchange (EDI).
    (b) An offeror electing to receive computer-to-computer EDI is 
requested to indicate below the name, address, and telephone number 
of the representative to be contacted regarding establishment of an 
EDI interface.

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

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

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

    (c) An offeror electing to receive orders by facsimile 
transmission is requested to indicate below the telephone number(s) 
for facsimile transmission equipment where orders should be 
forwarded.

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

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

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

    (d) For mailed orders, the offeror is requested to include the 
postal mailing address(es) where paper form orders should be mailed.

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

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

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

(End of provision)
    Alternate I (SEP 1999). As prescribed in 516.506(b), delete 
paragraph (d) of the basic provision.
    Alternate II (SEP 1999). As prescribed in 516.506(b), add 
paragraph (e) to the basic provision.
    (e) Offerors marketing through dealers are requested to indicate 
below whether those dealers will be participating in the proposed 
contract.

Yes (  )    No (  )

    If ``yes'' is checked, ordering information to be inserted above 
shall reflect that in addition to offeror's name, address, and 
facsimile transmission telephone number, orders can be addressed to 
the offeror's name, c/o nearest local dealer. In this event, two 
copies of a list of participating dealers shall accompany this 
offer, and shall also be included in Contractor's Federal Supply 
Schedule pricelist.


552.217-70  Evaluation of Options.

    As prescribed in 517.208(a), insert the following provision:

Evaluation of Options (Aug 1990)

    (a) The Government will evaluate offers for award purposes by 
determining the lowest base period price. When option year pricing 
is based on a formula (e.g., changes in the Producer Price Index or 
other common standard); option year pricing is automatically' 
considered when evaluating the base year price, as any change in 
price will be uniformly related to changes in market conditions. All 
options are therefore considered to be evaluated. Evaluation of 
options will not obligate the Government to exercise the option(s).
    (b) The Government will reject the offer if exceptions are taken 
to the price provisions of the Economic Price Adjustment clause, 
unless the exception results in a lower maximum option year price. 
Such offers will be evaluated without regard to the lower option 
year(s) maximum. However, if the offeror offering a lower maximum is 
awarded a contract, the award will reflect the lower maximum.


552.217-71  Notice Regarding Option(s).

    As prescribed in 517.208(b), insert the following provision:

[[Page 37240]]

Notice Regarding Option(s) (Nov 1992)

    The General Services Administration (GSA) has included an option 
to [Insert ``purchase additional quantities of supplies or 
services'' or ``extend the term of this contract'' or ``purchase 
additional quantities of supplies or services and to extend the term 
of this contract''] in order to demonstrate the value it places on 
quality performance by providing a mechanism for continuing a 
contractual relationship with a successful Offeror that performs at 
a level which meets or exceeds GSA's quality performance 
expectations as communicated to the Contractor, in writing, by the 
Contracting Officer or designated representative. When deciding 
whether to exercise the option, the Contracting Officer will 
consider the quality of the Contractor's past performance under this 
contract in accordance with 48 CFR 517.207.

(End of provision)


552.219-70  Allocation of Orders--Partially Set-aside Items.

    As prescribed in 519.508, insert the following clause:

Allocation of Orders--Partially Set-Aside Items (Sep 1999)

    Where the set-aside portion of an item or group of items is 
awarded to a Contractor other than the one receiving the award on 
the corresponding non-set-aside portion, the Government will divide 
the requirements to be ordered between the two Contractors with the 
objective of achieving, as nearly as possible, a 50/50 division of 
the total value of orders placed after the award of the set-aside 
portion. In no case will this division vary by more than a 60/40 
division (with either the non-set-aside or set-aside Contractor 
receiving the larger portion) from the time of the award of the set-
aside portion.

(End of clause)


552.219-71  Notice to Offerors of Subcontracting Plan Requirements.

    As prescribed in 519.708, insert the following provision:

Notice to Offerors of Subcontracting Plan Requirements (Sep 1999)

    The General Services Administration (GSA) is committed to 
assuring that maximum practicable opportunity is provided to small, 
HUBZone small, small disadvantaged, and women-owned small business 
concerns to participate in the performance of this contract 
consistent with its efficient performance. GSA expects any 
subcontracting plan submitted pursuant to FAR 52.219-9, Small 
Business Subcontracting Plan, to reflect this commitment. 
Consequently, an offeror, other than a small business concern, 
before being awarded a contract exceeding $500,000 ($1,000,000 for 
construction), must demonstrate that its subcontracting plan 
represents a creative and innovative program for involving small, 
HUBZone small, small disadvantaged, and women-owned small business 
concerns as subcontractors in the performance of this contract.

(End of provision)


552.219-72  Preparation, Submission, and negotiation of Subcontracting 
Plans.

    As prescribed in 519.708(b), insert the following provision:

Preparation, Submission, and Negotiation of Subcontracting Plans (Sep 
1999)

    (a) An offeror, other than a small business concern, submitting 
an offer that exceeds $500,000 ($1,000,000 for construction) shall 
submit a subcontracting plan with its initial offer. The 
subcontracting plan will be negotiated concurrently with price and 
any required technical and management proposals, unless the offeror 
submits a previously-approved commercial products plan.
    (b) Maximum practicable utilization of small, HUBZone small, 
small disadvantaged, and women-owned small business concerns as 
subcontractors is a matter of national interest with both social and 
economic benefits. The General Services Administration (GSA) expects 
that an offeror's subcontracting plan will reflect a commitment to 
assuring that small, HUBZone small, small disadvantaged, and women-
owned small business concerns are provided the maximum practicable 
opportunity, consistent with efficient contract performance, to 
participate as subcontractors in the performance of the resulting 
contract. An offeror submitting a commercial products plan can 
reflect this commitment through subcontracting opportunities it 
provides that relate to the offeror's production generally; i.e., 
for both its commercial and Government business.
    (c) GSA believes that this potential contract provides 
significant opportunities for the use of small, HUBZone small, small 
disadvantaged, and women-owned small business concerns as 
subcontractors. Consequently, in addressing the eleven elements 
described at FAR 52.219-9(d) of the clause in this contract entitled 
Small Business Subcontracting Plan, the offeror shall:
    (1) Demonstrate that its subcontracting plan represents a 
creative and innovative program for involving small, HUBZone small, 
small disadvantaged, and women-owned small business concerns in 
performing the contract.
    (2) Include a description of the offeror's subcontracting 
strategies used in any previous contracts, significant achievements, 
and how this plan will build upon those earlier achievements.
    (3) Demonstrate through its plan that it understands the small 
business subcontracting program's objectives and GSA's expectations, 
and it is committed to taking those actions necessary to meet these 
goals or objectives.
    (d) In determining the acceptability of any subcontracting plan, 
the Contracting Officer will take each of the following actions:
    (1) Review the plan to verify that the offeror demonstrates an 
understanding of the small business subcontracting program's 
objectives and GSA's expectations with respect to the program and 
has included all the information, goals, and assurances required by 
FAR 52.219-9.
    (2) Consider previous goals and achievements of contractors in 
the small industry.
    (3) Consider information and potential sources obtained from 
agencies administering national and local preference programs and 
other advocacy groups in evaluating whether the goals stated in the 
plan adequately reflect the anticipated potential for subcontracting 
to small, HUBZone small, small disadvantaged, and women-owned small 
business concerns.
    (4) Review the offeror's description of its strategies, 
historical performance and significant achievements in placing 
subcontracts for the same or similar products or services with 
small, HUBZone small, small disadvantaged, and women-owned small 
business concerns. The offeror's description can apply to commercial 
as well as previous Government contracts.
    (e) Failure to submit an acceptable subcontracting plan and/or 
correct deficiencies in a plan within the time specified by the 
Contracting Officer shall make the offeror ineligible for award.

(End of provision)


552.219-73  Goals for Subcontracting Plan.

    As prescribed in 519.708(c), insert the following provision:

Goals for Subcontracting Plan (Sep 1999)

    (a) Maximum practicable utilization of small, HUBZone small, 
small disadvantaged, and women-owned small business concerns as 
subcontractors is a matter of national interest with both social and 
economic benefits.
    (1) The General Service Administration's (GSA's) commitment to 
ensuring that maximum practicable opportunity is provided to small, 
HUBZone small, small disdvantaged, and women-owned small business 
concerns to participate as subcontractors in the performance of this 
contract, consistent with its efficient performance, must be 
reflected in the offeror's subcontracting plan submitted pursuant to 
the clause of this contract at FAR 52.219-9, Small Business 
Subcontracting Plan.
    (2) In addressing the eleven elements described at FAR 52.219-
9(d), the offeror shall demonstrate that its subcontracting plan 
represents a creative and innovative program for involving small, 
HUBZone small, small disadvantaged, and women-owned small business 
concerns in performing this contract. An offeror submitting a 
commercial products plan can demonstrate its commitment in providing 
maximum practicable opportunities through subcontracting 
opportunities it provides to small, HUBZone small, small 
disadvantaged, and women-owned small business concerns that relate 
to the offeror's production generally; i.e., for both its commercial 
and Government business.
    (3) The subcontracting plan shall include a description of the 
offeror's subcontracting strategies used in previous contracts and 
significant achievements, with an explanation of how this plan will 
build upon those earlier achievements. Additionally, the offeror 
shall demonstrate through its plan

[[Page 37241]]

that it understands the small business subcontracting program's 
objectives, GSA's expectations, and is committed to taking those 
actions necessary to meet these goals or objectives.
    (b) GSA believes that this contract provides significant 
opportunities for the use of small, HUBZone small, small 
disadvantaged, and women-owned small business concerns as 
subcontractors. Accordingly, it is anticipated that an acceptable 
subcontracting plan will contain at least the following goals:


Small Business...........................  ______ percent.
HUBZone Small Business...................  ______ percent.
Small Disadvantaged Business.............  ______ percent.
Women-Owned Small Business...............  ______ percent.
 

    Note: Target goals are expressed as a percentage of planned 
subcontracting dollars.

    (c) In determining the acceptability of any subcontracting plan, 
the Contracting Officer will--
    (1) Review the plan to verify that the offeror has demonstrated 
an understanding of the small business subcontracting program's 
objectives and GSA's expectations with respect to the programs and 
has included all the information, goals, and assurances required by 
FAR 52.219-9;
    (2) Consider previous goals and achievements of contractors in 
the same industry;
    (3) Consider information and potential sources obtained from 
agencies administering national and local preference programs and 
other advocacy groups in evaluating whether the goals stated in the 
plan adequately reflect the anticipated potential for subcontracting 
to small, HUBZone small, small disadvantaged, and women-owned small 
business concerns; and
    (4) Review the offeror's description of its strategies, 
historical performance and significant achievements in placing 
subcontracts for the same or similar products or services with 
small, HUBZone small, small disadvantaged, and women-owned small 
business concerns. The offeror's description can apply to commercial 
as well as previous Government contracts.
    (d) Failure to submit an acceptable subcontracting plan and/or 
correct deficiencies in a plan within the time specified by the 
Contracting Officer shall make the offeror ineligible for award.

(End of provision)
    Alternate I (SEP 1999). As prescribed in 519.708(c)(2), delete 
paragraph (b) of the basic provision and redesignate paragraphs (c) 
and (d) as paragraphs (b) and (c).


552.219-74  Section 8(a) Direct Award.

    As prescribed in 519.870-8, insert the following clause:

Section 8(a) Direct Award (Sep 1999)

    (a) This contract is issued as a direct award between the 
contracting activity and the 8(a) Contractor pursuant to the 
Memorandum of Understanding between the Small Business 
Administration (SBA) and the General Services Administration. SBA 
retains the responsibility for 8(a) certifications, 8(a) eligibility 
determinations, and related issues, and will provide counseling and 
assistance to the 8(a) contractor under the 8(a) program. The 
cognizant SBA district office is:

[Complete at time of award]
    (b) The contracting activity is responsible for administering 
the contract and taking any action on behalf of the Government under 
the terms and conditions of the contract. However, the contracting 
activity shall give advance notice to SBA before it issues a final 
notice terminating performance, either in whole or in part, under 
the contract. The contracting activity shall also coordinate with 
SBA prior to processing any advance payments or novation agreements. 
The contracting activity may assign contract administration 
functions to a contract administration office.
    (c) The Contractor agrees:
    (1) To notify the Contracting Officer, simultaneous with its 
notification to SBA (as required by SBA's 8(a) regulations), when 
the owner or owners upon whom 8(a) eligibility is based plan to 
relinquish ownership or control of the concern. Consistent with 15 
U.S.C. 637(a)(21), transfer of ownership or control shall result in 
termination of the contract for convenience, unless SBA waives the 
requirement for termination prior to the actual relinquishing of 
ownership and control.
    (2) To the requirements of 52.219-14, Limitations on 
Subcontracting.

(End of clause)


552.223-70  Hazardouis Substances.

    As prescribed in 523.303(a), insert the following clause:

Hazardous Substances (May 1989)

    (a) If the packaged items to be delivered under this contract 
are of a hazardous substance and ordinarily are intended or 
considered to be for use as a household item, this contract is 
subject to the Federal Hazardous Materials Act, as amended (15 
U.S.C. 1261-1276), implementing regulations thereof (16 CFR Chapter 
II), and Federal Standard No. 123, Marking for Shipment (Civil 
Agencies), issue in effect on the date of this solicitation.
    (b) The packaged items to be delivered under this contract are 
subject to the preparation of shipping documents, the preparation of 
items for transportation, shipping container construction, package 
making, package labeling, when required, shipper's certification of 
compliance, and transport vehicle placarding in accordance with 
Parts 171 through 178 of 49 CFR and the Hazardous Materials 
Transportation Act.
    (c) The minimum packaging acceptable for packaging Department of 
Transportation regulated hazardous materials shall be those in 49 
CFR 173.

(End of clause)


552.223-71  Nonconforming Hazardous Materials.

    As prescribed in 523.303(b), insert the following clause:

Nonconforming Hazardous Materials (Sep 1999)

    (a) Nonconforming supplies that contain hazardous material or 
that may expose persons who handle or transport the supplies to 
hazardous material and which require replacement under the 
inspection and/or warranty clauses of this contract shall be 
reshipped to the Contractor at the Contractor's expense. The 
Contractor agrees to accept return of these nonconforming supplies 
and to pay all costs occasioned by their return.
    (b) ``Hazardous materials,'' as used in this clause, includes 
any material defined as hazardous under the latest version of 
Federal Standard No. 313 (including revisions adopted during the 
term of the contract).
    (c) If the Contractor fails to provide acceptable disposition 
instructions for the nonconforming supplies within 10 days from the 
date of the Government's request (or such longer period as may be 
agreed to between the Contracting Officer and the Contractor), or 
fails to accept return of the reshipped nonconforming supplies, such 
failure:
    (1) may be interpreted as a willful failure to perform,
    (2) may result in termination of the contract for default and
    (3) shall be considered by the Contracting Officer in 
determining the responsibility of the Contractor for any future 
award (see FAR 9.104-3(b) and 9.406-2).
    (d) Pending final resolution of any dispute, the Contractor 
shall promptly comply with the decision of the Contracting Officer.

(End of clause)


552.223-72  Hazardous Material Information.

    As prescribed in 523.370, insert the following provision:

Hazardous Material Information (Sep 1999)

    Offeror shall indicate for each national stock number (NSN) the 
following information:

----------------------------------------------------------------------------------------------------------------
                NSN                   DOT shipping name      DOT hazard class           DOT label required
----------------------------------------------------------------------------------------------------------------
                                                                                 Yes [  ]    No [  ]
                                                                                 Yes [  ]    No [  ]
                                                                                 Yes [  ]    No [  ]
----------------------------------------------------------------------------------------------------------------


[[Page 37242]]

(End of provision)


552.225-8  Buy American Act--Trade Agreements--Balance of Payments 
Program Certificate.

    As prescribed in 525.408, insert the following provision:

Buy American Act--Trade Agreements--Balance of Payments Program 
Certificate (Sep 1999) (Deviation FAR 52.225-8)

    (a) The Offeror, by signing this offer, certifies that each end 
product to be delivered under this contract is a U.S. made end 
product, a designated country end product, a Caribbean Basin country 
end product, a Canadian end product or a Mexican end product as 
defined in the clause entitled ``Buy American Act--Trade 
Agreements--Balance of Payments Program'' at 48 CFR 552.225-9.
    (b) Offers will be evaluated in accordance with Subpart 25.4 of 
the Federal Acquisition Regulation except that offers of U.S. made 
end products, designated country end products, Caribbean Basin end 
products, Canadian end products, or Mexican end products shall be 
evaluated without the restrictions of the Buy American Act or the 
Balance of Payments Program.

(End of provision)


552.225-9  Buy American Act--Trade Agreements--Balance of Payments 
Program.

    As prescribed in 525.408, insert the following clause.

Buy American Act--Trade Agreements--Balance of Payments Program (SEP 
1999) (Deviation FAR 52.225-9)

    (a) This clause implements the Trade Agreements Act of 1979 (19 
U.S.C. 2501-2582) by providing a preference for U.S. made end 
products, designated country end products, Caribbean Basin country 
end products, Canadian end products or Mexican end products over 
other products.
    ``Caribbean Basin country end products,'' as used in this 
clause, means an article that: (1) is wholly the growth, product, or 
manufacture of a Caribbean Basin country (as defined in section 
25.401 of the Federal Acquisition Regulation (FAR)), or (2) in the 
case of an article which consists in whole or in part of materials 
from another country or instrumentality, has been substantially 
transformed into a new and different article of commerce with a 
name, character, or use distinct from that of the article or 
articles from which it was so transformed. The term includes 
services (except transportation services) incidental to its supply; 
provided that the value of those incidental services does not exceed 
that of the product itself. It does not include service contracts as 
such. The term excludes products that are excluded from duty free 
treatment from Caribbean countries under the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(b)). These exclusions 
presently consist of (i) textiles and apparel articles that are 
subject to textile agreements; (ii) footwear, handbags, luggage, 
flat goods, work gloves, and leather wearing apparel not designated 
as eligible articles for the purpose of the Generalized System of 
Preference under title V of the Trade Act of 1974; (iii) tuna, 
prepared or preserved in any manner in airtight containers, (iv) 
petroleum, or any product derived from petroleum; and (v) watches 
and watch parts (including cases, bracelets and straps) of whatever 
type including, but not limited to, mechanical, quartz digital or 
quartz analog, if such watches or watch parts contain any material 
that is the product of any country to which the Tariff Schedule of 
the United States (TSUS) column 2 rates of duty apply.
    ``Designated country end product,'' as used in this clause, 
means an article that (1) is wholly the growth, product, or 
manufacture of the designated country (as defined in section 25.401 
of the Federal Acquisition Regulation (FAR)), or (2) in the case of 
an article which consists in whole or in part of materials from 
another country or instrumentality, has been substantially 
transformed into a new and different article of commerce with a 
name, character, or use distinct from that of the article or 
articles from which it was so transformed. The term includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
that of the product itself. It does not include service contracts as 
such.
    ``Canadian end product,'' as used in this clause, means an 
article that (1) is wholly the growth, product, or manufacture of 
Canada, or (2) in the case of an article which consists in whole or 
in part of materials from another country or instrumentality, has 
been substantially transformed in Canada into a new and different 
article of commerce with a name, character, or use distinct from 
that of the article or articles from which it was transformed. The 
term includes services (except transportation services) incidental 
to its supply; provided, that the value of those incidental services 
does not exceed that of the product itself. It does not include 
service contracts as such.
    ``Mexican end product,'' as used in this clause, means an 
article that (1) is wholly the growth, product, or manufacture of 
Mexico, or (2) in the case of an article which consists in whole or 
in part of materials from another country or instrumentality, has 
been substantially transformed in Mexico into a new and different 
article of commerce with a name, character, or use distinct from 
that of the article or articles from which it was so transformed. 
The term includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed that of the product itself. It 
does not include service contracts as such.
    ``End products,'' as used in this clause, means those articles, 
materials, and supplies to be acquired under this contract for 
public use.
    ``U.S. made end product,'' as used in this clause, means an 
article which (1) is wholly the growth, product, or manufacture of 
the United States, or (2) in the case of an article which consists 
in whole or in part of materials from another country or 
instrumentality, has been substantially transformed in the United 
States into a new and different article of commerce with a name, 
character, or use distinct from that of the article or articles from 
which it was so transformed.
    ``Nondesignated country end products,'' as used in this clause, 
means any end product which is not a U.S. made end product, 
designated country end product, Caribbean Basin Country end product, 
Canadian end product or Mexican end product.
    ``United States,'' as used in this clause, means the United 
States, its possessions, Puerto Rico, and any other place which is 
subject to its jurisdiction, but does not include leased bases or 
trust territories.
    (b) The Contractor agrees to deliver under this contract only 
U.S. made end products, designated country end products, Caribbean 
Basin country end products, Canadian end products or Mexican end 
products or, if a national interest waiver is granted under section 
302 of the Trade Agreements Act of 1979, nondesignated country end 
products. Only if such waiver is granted may a nondesignated country 
end product be delivered under the contract(s).
    (c) Offers will be evaluated in accordance with the policies and 
procedures of Part 25 of the FAR except that offers of U.S. made end 
products, designated country end products, Caribbean Basin end 
products, Canadian end products or Mexican end products shall be 
evaluated without the restrictions of the Buy American Act or the 
Balance of Payments Program.

(End of clause)


552.225-70  Notice of Procurement Restriction--Hand or Measuring Tools 
or Stainless Steel Flatware.

    As prescribed in 525.109, insert the following clause:

Notice of Procurement Restriction--Hand or Measuring Tools or Stainless 
Steel Flatware (Sep 1999)

    (a) Awards under this solicitation will only be made to offerors 
that will furnish hand or measuring tools or stainless steel 
flatware that are domestic end products. Pursuant to the 
requirements of the current Department of Defense Appropriations 
Act, GSA has determined, in accordance with Section 6-104.4 of the 
Armed Services Procurement Regulation (6/15/70)(32 CFR 6-104.4), 
that it is in the national interest to reject foreign products.
    As used in this clause, a ``domestic end product'' is--
    (1) Any hand or measuring tool, except for an electric or air-
motor driven hand tool, or stainless steel flatware, wholly produced 
or manufactured, including all components, in the United States or 
its possessions; or
    (2) Any electric or air-motor driven hand tool if the cost of 
its components produced or manufactured in the United States exceeds 
75 percent of the cost of all its components.
    (b) Tool kits or sets, being procured under this solicitation, 
will not be considered domestic end products if any individual tool 
classified in FSC Group 51 or 52 and included in a tool kit or set 
is not a domestic end product as defined in paragraph (a) of this 
clause. The restrictions of this clause do not apply to individual 
hand or measuring tools that are contained in the tool kit or set 
but are not classified in FSC Group 51 or 52.


[[Page 37243]]


(End of clause)


552.227-70  Government Rights (Unlimited).

    As prescribed in 527.409, insert the following clause:

Government Rights (Unlimited) (May 1989)

    The Government shall have unlimited rights in all drawings, 
designs, specifications, notes and other works developed in the 
performance of this contract, including the right to use same on any 
other Government design or construction without additional 
compensation to the Contractor. The Contractor hereby grants to the 
Government a paid-up license throughout the world to all such works 
to which he may assert or establish any claim under design patent or 
copyright laws. The Contractor for a period of three years after 
completion of the project agrees to furnish the original or copies 
of all such works on the request of the Contracting Officer.

(End of clause)


552.227-71  Drawings and Other Data to Become Property of Government.

    As prescribed in 527.409(b), substitute the following clause:

Drawings and Other Data to Become Property of Government (May 1989)

    All designs, drawings, specifications, notes and other works 
developed in the performance of this contract shall become the sole 
property of the Government and may be used on any other design or 
construction without additional compensation to the Contractor. The 
Government shall be considered the ``person for whom the work was 
prepared'' for the purpose of authorship in any copyrightable work 
under Section 201(b) of Title 17, United States Code. With respect 
thereto, the Contractor agrees not to assert or authorize others to 
assert any rights nor establish any claim under the design patent or 
copyright laws. The Contractor for a period of three years after 
completion of the project agrees to furnish all retained works on 
the request of the Contracting Officer. Unless otherwise provided in 
this contract, the Contractor shall have the right to retain copies 
of works beyond such period.

(End of clause)


552.228-70  Workers' Compensation Laws.

    As prescribed in 528.310(a), insert the following clause:

Workers' Compensation Laws (Sep. 1999)

    The Act of June 25, 1936, 49 Stat. 1938 (40 U.S.C. 290) 
authorizes the constituted authority of the several States to apply 
their workers' compensation laws to all lands and premises owned or 
held by the United States.

(End of clause)


552.229-70  Federal, State, and Local Taxes.

    As prescribed in 529.401-70, insert the following clause:

Federal, State, and Local Taxes (Apr 1984)

    The contract price includes all applicable Federal, State, and 
local taxes. No adjustment will be made to cover taxes which may 
subsequently be imposed on this transaction or changes in the rates 
of currently applicable taxes. However, the Government will, upon 
the request of the Contractor, furnish evidence appropriate to 
establish exemption from any tax from which the Government is exempt 
and which was not included in the contract price.

(End of clause)


552.229-71  Federal Excise Tax--DC Government.

    As prescribed in 529.401-71, insert the following clause:

Federal Excise Tax--DC Government (Sep 1999)

    If the District of Columbia cites an Internal Revenue Tax Exempt 
Certificate Number on orders placed under this contract, the 
Contractor shall bill shipments to the District of Columbia at 
prices exclusive of Federal excise tax and show the amount of such 
tax on the invoice.

(End of clause)


552.232-1  Payments.

    As prescribed in 532.7104, insert the following clause:

Payments (Apr 1984) (Deviation FAR 52.232-1)

    (a) The Government shall pay the Contractor, without submission 
of invoices or vouchers, 30 days after the service period, the 
prices stipulated in this contract for supplies delivered and 
accepted or services rendered and accepted, less any deductions 
provided in this contract.
    (b) Unless otherwise specified in this contract, the Government 
will make payment on partial deliveries accepted by the Government 
if either:
    (1) The amount due on the deliveries warrants it.
    (2) The Contractor requests it and the amount due on the 
deliveries is at least $1,000 or 50 percent of the total contract 
price.
    (c) When processing payment, GSA's Finance Office will 
automatically generate the 12 digit invoice number using the ACT 
number assigned to the contract, followed by an abbreviated month 
and year of service (e.g., 84261554JUN7, for June 1997). The ACT 
number appears on the contract award document.

(End of clause)


552.232-8  Discounts for Prompt Payment.

    As prescribed in 532.206, insert the following clause:

Discounts for Prompt Payment (Apr 1989) (Deviation FAR 52.232-8)

    (a) Discounts for early payment (hereinafter referred to as 
``discounts'' or ``the discount'') will be considered in evaluating 
the relationship of the offeror's concessions to the Government vis-
a-vis the offeror's concessions to its commercial customers, but 
only to the extent indicated in this clause.
    (b) Discounts will not be considered to determine the low 
offeror in the situation described in the ``Offers on Identical 
Products'' provision of this solicitation.
    (c) Uneconomical discounts will not be considered as meeting the 
criteria for award established by the Government. In this 
connection, a discount will be considered uneconomical if the 
annualized rate of return for earning the discount is lower than the 
``value of funds'' rate established by the Department of the 
Treasury and published quarterly in the Federal Register. The 
``value of funds'' rate applied will be the rate in effect on the 
date specified for the receipt of offers.
    (d) Agencies required to use the resultant schedule will not 
apply the discount in determining the lowest delivered price 
pursuant to the FPMR, 41 CFR 101-26.408, if the agency determines 
that payment will probably not be made within the discount period 
offered. The same is true if the discount is considered uneconomical 
at the time of placement of the order.
    (e) Discounts for early payment may be offered either in the 
original offer or on individual invoices submitted under the 
resulting contract. Discounts offered will be taken by the 
Government if payment is made within the discount period specified.
    (f) Discounts that are included in offers become a part of the 
resulting contracts and are binding on the Contractor for all orders 
placed under the contract. Discounts offered only on individual 
invoices will be binding on the Contractor only for the particular 
invoice on which the discount is offered.
    (g) In connection with any discount offered for prompt payment, 
time shall be computed from the date of the invoice. For the purpose 
of computing the discount earned, payment shall be considered to 
have been made on the date which appears on the payment check or the 
date on which an electronic funds transfer was made.

(End of clause)


552.232-23  Assignment of Claims.

    As prescribed in 532.806, insert the following clause:

Assignment of Claims (Sep 1999)

    Because this is a requirements or indefinite quantity contract 
under which more than one agency may place orders, paragraph (a) of 
the Assignment of Claims clause (FAR 52.232-23) is inapplicable and 
the following is substituted therefor:
    In order to prevent confusion and delay in making payment, the 
Contractor shall not assign any claim(s) for amounts due or to 
become due under this contract. However, the Contractor is permitted 
to assign separately to a bank, trust company, or other financial 
institution, including any Federal lending agency, under the 
provisions of the Assignment of Claims Act, as amended, 31 U.S.C. 
3727, 41 U.S.C. 15 (hereinafter referred to as ``the Act''), all 
amounts due or to become due under any order amounting to $1,000 or 
more issued by any Government agency under this contract. Any such 
assignment takes effect only if and when the assignee files written 
notice of the assignment together with a true copy of the instrument 
of assignment with the contracting officer issuing the order and the

[[Page 37244]]

finance office designated in the order to make payment. Unless 
otherwise stated in the order, payments to an assignee of any 
amounts due or to become due under any order assigned may, to the 
extent specified in the Act, be subject to reduction or set-off.

(End of clause)


552.232-25  Prompt Payment.

    As prescribed in 532.908(a)(2), insert the following clause:

Prompt Payment (Jul 1998) (Deviation FAR 52.232-25)

    Notwithstanding any other payment clause in this contract, the 
Government will make invoice payments and contract financing 
payments under the terms and conditions specified in this clause. 
Payment shall be considered as being made on the day a check is 
dated or the date of an electronic funds transfer. Definitions of 
pertinent terms are set forth in section 32.902 of the Federal 
Acquisition Regulation. All days referred to in this clause are 
calendar days, unless otherwise specified. (However, see 
subparagraph (a)(4) of this clause concerning payments due on 
Saturdays, Sundays, and legal holidays.)
    (a) Invoice payments.
    (1) The due date for making invoice payments by the designated 
payment office is:
    (i) For orders placed electronically by the General Services 
Administration (GSA) Federal Supply Service (FSS), and to be paid by 
GSA through electronic funds transfer (EFT), the later of the 
following two events:
    (A) The 10th day after the designated billing office receives a 
proper invoice from the Contractor. If the designated billing office 
fails to annotate the invoice with the date of receipt at the time 
of receipt, the invoice payment due date shall be the 10th day after 
the date of the Contractor's invoice; provided the Contractor 
submitted a proper invoice and no disagreement exists over quantity, 
quality, or Contractor compliance with contract requirements.
    (B) The 10th day after Government acceptance of supplies 
delivered or services performed by the Contractor.
    (ii) For all other orders, the later of the following two 
events:
    (A) The 30th day after the designated billing office receives a 
proper invoice from the Contractor. If the designated billing office 
fails to annotate the invoice with the date of receipt at the time 
of receipt, the invoice payment due date shall be the 30th day after 
the date ofthe Contractor's invoice; provided the Contractor 
submitted a proper invoice and no disagreement exists over quantity, 
quality, or Contractor compliance with contract requirements.
    (B) The 30th day after Government acceptance of supplies 
delivered or services performed by the Contractor.
    (iii) On a final invoice, if the payment amount is subject to 
contract settlement actions, acceptance occurs on the effective date 
of the contract settlement.
    (2) The General Services Administration will issue payment on 
the due date in (a)(1)(i) above if the Contractor complies with full 
cycle electronic commerce. Full cycle electronic commerce includes 
all the following elements:
    (i) The Contractor must receive and fulfill electronic data 
interchange (EDI) purchase orders (transaction set 850).
    (ii) The Contractor must generate and submit to the Government 
valid EDI invoices (transaction set 810) or submit invoices through 
the GSA Finance Center Internet-based invoice process. Internet-
based invoices must be submitted using procedures provided by GSA.
    (iii) The Contractor's financial institution must receive and 
process, on behalf of the Contractor, EFT payments through the 
Automated Clearing House (ACH) system.
    (iv) The EDI transaction sets in (i) through (iii) above must 
adhere to implementation conventions provided by GSA.
    (3) If any of the conditions in(a)(2) above do not occur, the 10 
day payment due dates in (a)(1) become 30 day payment due dates.
    (4) Certain food products and other payments.
    (i) Due dates on Contractor invoices for meat, meat food 
products, or fish; perishable agricultural commodities; and dairy 
products, edible fats or oils, and food products prepared from 
edible fats or oils are--
    (A) For meat or meat food products, as defined in section 
2(a)(3) of the Packers and Stockyard Act of 1921 (7 U.S.C. 182 (3)), 
and as further defined in Pub. L. 98-181, including any edible fresh 
or frozen poultry meat, any perishable poultry meat food product, 
fresh eggs, an any perishable egg product, as close as possible to, 
but not later than, the 7th day after product delivery.
    (B) For fresh or frozen fish, as defined in section 204(3) of 
the Fish and Seafood Promotion Act of 1986 (16 U.S.C. 4003(3)), as 
close as possible to, but not later than, the 7th day after product 
delivery.
    (C) For perishable agricultural commodities, as defined in 
section 1(4) of the Perishable Agricultural Commodities Act of 1930 
(7 U.S.C. 499a(4)), as close as possible to, but not later than, the 
10th day after product delivery, unless another date is specified in 
the contract.
    (D) For daily products, as defined in section 111(e) of the 
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502(e)), 
edible fats or oils, and food products prepared from edible fats or 
oils, as close as possible to, but not later than, the 10th day 
after the date on which a proper invoice has been received. Liquid 
milk, cheese, certain processed cheese products, butter, yogurt, ice 
cream, mayonnaise, salad dressing, and other similar products, fall 
within this classification. Nothing in the Act limits this 
classification to refrigerated products. When questions arise 
regarding the proper classification of a specific product, 
prevailing industry practices will be followed in specifying a 
contract payment due date. The burden of proof that a classification 
of a specific product is, in fact, prevailing industry practice is 
upon the Contractor making the representation.
    (ii) If the contract does not require submission of an invoice 
for payment (e.g., periodic lease payments), the due date will be as 
specified in the contract.
    (5) Contractor's invoice. The Contractor shall prepare and 
submit invoices to the designated billing office specified in the 
contract. Notwithstanding paragraph (g) of the clause at FAR 52.212-
4, Contract Terms and Conditions--Commercial Items, if the 
Contractor submits hard-copy invoices, submit only an original 
invoice. No copies of the invoice are required. A proper invoice 
must include the items listed in subdivisions (a)(5)(i) through 
(a)(5)(viii) of this clause. If the invoice does not comply with 
these requirements, it shall be returned within 7 days after the 
date the designated billing office received the invoice (3 days for 
meat, meat food products, or fish; 5 days for perishable 
agricultural commodities, edible fats or oils, and food products 
prepared from edible fats or oils), with a statement of the reasons 
why it is not a proper invoice. Untimely notification will be taken 
into account in computing any interest penalty owed the Contractor 
in the manner described in subparagraph (a)(5) of this clause.
    (i) Name and address of the Contractor.
    (ii) Invoice date. (The Contractor is encouraged to date 
invoices as close as possible to the date of the mailing or 
transmission.)
    (iii) Contract number or other authorization for supplies 
delivered or services preformed (including order number and contract 
line item number).
    (iv) Description, quantity, unit of measure, unit price, an 
extended prices of supplies delivered or services performed.
    (v) Shipping and payment terms (e.g., shipment number and date 
of shipment, prompt payment discount terms). Bill of lading number 
and weight of shipment will be shown for shipments on Government 
bills or lading.
    (vi) Name and address of Contractor official to whom payment is 
to be sent (must be the same as that in the contract or in a proper 
notice of assignment).
    (vii) Name (where practicable), title, phone number, and mailing 
address of person to be notified in the event of a defective 
invoice.
    (viii) Any other information or documentation required by the 
contract (such as evidence of shipment).
    (ix) While not required, the Contractor is strongly encouraged 
to assign an identification number to each invoice.
    (6) Interest penalty. An interest penalty shall be paid 
automatically by the designated payment office, without request from 
the Contractor, if payment is not made by the due date and the 
conditions listed in subdivisions (a)(6)(i) through (a)(6)(iii) of 
this clause are met, if applicable. However, when the due date falls 
on a Saturday, Sunday, or legal holiday when Federal Government 
offices are closed and Government business is not expected to be 
conducted, payment may be made on the following business day without 
incurring a late payment interest penalty.
    (i) A proper invoice was received by the designated billing 
office.
    (ii) A receiving report or other Government documentation 
authorizing payment was processed, and there was no disagreement 
over quantity, quality, or Contractor compliance with any contract 
term or condition.

[[Page 37245]]

    (iii) In the case of a final invoice for any balance of funds 
due the Contractor for supplies delivered or services performed, the 
amount was not subject to further contract settlement actions 
between the Government and the Contractor.
    (7) Computing penalty amount. The interest penalty shall be at 
the rate established by the Secretary of the Treasury under section 
12 of the Contract Disputes Act of 1978 (41 U.S.C. 611) that is in 
effect on the day after the due date, except where the interest 
penalty is prescribed by other governmental authority (e.g., 
tariffs). This rate is referred to as the ``Renegotiation Board 
Interest Rate,'' and it is published in the Federal Register 
semiannually on or about January 1 and July 1. The interest penalty 
shall accrue daily on the invoice principal payment amount approved 
by the Government until the payment date of such approved principal 
amount; and will be compounded in 30-day increments inclusive from 
the first day after the due date through the payment date. That is, 
interest accrued at the end of any 30-day period will be added to 
the approved invoice principal payment amount and will be subject to 
interest penalties if not paid in the succeeding 30-day period. If 
the designated billing office failed to notify the Contractor of a 
defective invoice within the periods prescribed in subparagraph 
(a)(5) of this clause, the due date on the corrected invoice will be 
adjusted by subtracting from such date the number of days taken 
beyond the prescribed notification of defects period. Any interest 
penalty owed the Contractor will be based on this adjusted due date. 
Adjustments will be made by the designated payment office for errors 
in calculating interest penalties.
    (i) For the sole purpose of computing an interest penalty that 
might be due the Contractor, Government acceptance shall be deemed 
to have occurred constructively on the 7th day (unless otherwise 
specified in this contract) after the Contractor delivered the 
supplies or performed the services in accordance with the terms and 
conditions of the contract, unless there is a disagreement over 
quantity, quality or Contractor compliance with a contract 
provision. In the event that actual acceptance occurs within the 
constructive acceptance period, the determination of an interest 
penalty shall be based on the actual date of acceptance. The 
constructive acceptance requirement does, not however, compel 
Government officials to accept supplies or services, perform 
contract administration functions, or make payment prior to 
fulfilling their responsibilities.
    (ii) The following periods of time will not be included in the 
determination of an interest penalty:
    (A) The period taken to notify the Contractor of defects in 
invoices submitted to the Government, but this may not exceed 7 days 
(3 days for meat, meat food products, or fish; 5 days for perishable 
agricultural commodities, dairy products, edible fats or oils, and 
food products prepared from edible fats or oils).
    (B) The period between the defects notice and resubmission of 
the corrected invoice by the Contractor.
    (C) For incorrect electronic funds transfer (EFT) information, 
in accordance with the EFT clause of this contract.
    (iii) Interest penalties will not continue to accrue after the 
filing of a claim for such penalties under the clause at 52.233-1, 
Disputes, or for more than 1 year. Interest penalties of less than 
$1 need not be paid.
    (iv) Interest penalties are not required on payment delays due 
to disagreement between the Government and the Contractor over the 
payment amount or other issues involving contract compliance or on 
amounts temporarily withheld or retained in accordance with the 
terms of the contract. Claims involving disputes, and any interest 
that may be payable, will be resolved in accordance with the clause 
at 52.233-1, Disputes.
    (8) Prompt payment discounts. An interest penalty also shall be 
paid automatically by the designated payment office, without request 
from the Contractor, if a discount for prompt payment is taken 
improperly. The interest penalty will be calculated as described in 
subparagraph (a)(7) of this clause on the amount of discount taken 
for the period beginning with the first day after the end of the 
discount period through the date when the Contractor is paid.
    (9) Additional interest penalty.
    (i) If this contract was awarded on or October 1, 1989, a 
penalty amount, calculated in accordance with subdivision 
(a)(9)(iii) of this clause, shall be paid in addition to the 
interest penalty amount if the Contractor--
    (A) Is owed an interest penalty of $1 or more;
    (B) Is not paid the interest penalty within 10 days after the 
date the invoice amount is paid; and
    (C) Makes a written demand to the designated payment office for 
additional penalty payment, in accordance with subdivision 
(a)(9)(ii) of this clause, postmarked not later than 40 days after 
the invoice amount is paid.
    (ii)(A) Contractors shall support written demands for additional 
penalty payments with the following data. No additional data shall 
be required. Contractors shall--
    (1) Specifically assert that late payment interest is due under 
a specific invoice, and request payment of all overdue late payment 
interest penalty and such additional penalty as may be required;
    (2) Attach a copy of the invoice on which the unpaid late 
payment interest was due; and
    (3) State that payment of the principal has been received, 
including the date of receipt.
    (B) Demands must be postmarked on or before the 40th day after 
payment was made, except that--
    (1) If the postmark is illegible or nonexistent, the demand must 
have been received and annotated with the date of receipt by the 
designated payment office on or before the 40th day after payment 
was made; or
    (2) If the postmark is illegible or nonexistent and the 
designated payment office fails to make the required annotation, the 
demand's validity will be determined by the date the Contractor has 
placed on the demand; provided such date is no later than the 40th 
day after payment was made.
    (iii)(A) The additional penalty shall be equal to 100 percent of 
any original late payment interest penalty, except--
    (1) The additional penalty shall not exceed $5,000;
    (2) The additional penalty shall never be less than $25; and
    (3) No additional penalty is owed if the amount of the 
underlying interest penalty is less than $1.
    (B) If the interest penalty ceases to accrue in accordance with 
the limits stated in subdivision (a)(5)(iii) of this clause, the 
amount of the additional penalty shall be calculated on the amount 
of interest penalty that would have accrued in the absence of these 
limits, subject to the overall limits on the additional penalty 
specified in subdivision (a)(7)(iii)(A) of this clause.
    (C) For determining the maximum and minimum additional 
penalties, the test shall be the interest penalty due on each 
separate payment made for each separate contract. The maximum and 
minimum additional penalty shall not be based upon individual 
invoices unless the invoices are paid separately. Where payments are 
consolidated for disbursing purposes, the maximum and minimum 
additional penalty determination shall be made separately for each 
contract therein.
    (D) The additional penalty does not apply to payments regulated 
by other Government regulations (e.g., payments under utility 
contracts subject to tariffs and regulation).
    (b) Contract financing payments.
    (1) Due dates for recurring financing payments. If this contract 
provides for contract financing, requests for payment shall be 
submitted to the designated billing office as specified in this 
contract or as directed by the Contracting Officer. Contract 
financing payments shall be made on the [insert day as prescribed by 
Agency head; if not prescribed, insert 30th day] day after receipt 
of a proper contract financing request by the designated billing 
office. In the event that an audit or other review of a specific 
financing request is required to ensure compliance with the terms 
and conditions of the contract, the designated payment office is not 
compelled to make payment by the due date specified.
    (2) Due dates for other contract financing. For advance 
payments, loans, or other arrangements that do not involve recurring 
submissions of contract financing requests, payment shall be in 
accordance with the corresponding contract terms or as directed by 
the Contracting Officer.
    (3) Interest penalty not applicable. Contract financing payments 
shall not be assessed an interest penalty for payment delays.
    (c) Fast payment procedure due dates. If this contract contains 
the clause at 52.213-1, Fast Payment Procedure, payments will be 
made within 15 days after the date of receipt of the invoice.
(End of clause)

552.232-70   Invoice Requirements.

    As prescribed in 532.111(a), insert the following clause:

[[Page 37246]]

Invoice Requirements (Sep 1999)

    (a) Invoices shall be submitted in an original only, unless 
otherwise specified, to the designated billing office specified in 
this contract or order.
    (b) Invoices must include the Accounting Control Transaction 
(ACT) number provided below or on the order.

ACT Number (Contracting Officer insert number)

    (c) In addition to the requirements for a proper invoice 
specified in the Prompt Payment clause on this contract or order, 
the following information or documentation must be submitted with 
each invoice:

(Contracting Officer list additional requirements.)

(End of clause)


552.232-71   Adjusting Payments.

    As prescribed in 532.111(b), insert the following clause:

Adjusting Payments (Sep 1999)

    (a) Under the Inspection of Services clause of this contract, 
payments may be adjusted if any services do not conform with 
contract requirements. The Contracting Office or a designated 
representative will inform the Contractor, in writing, of the type 
and dollar amount of proposed deductions by the 10th workday of the 
month following the performance period for which the deductions are 
to be made.
    (b) The Contractor may, within 10 working days of receipt of the 
notification of the proposed deductions, present to the Contracting 
Officer specific reasons why any or all of the proposed deductions 
are not justified. Reasons must be solidly based and must provide 
specific facts that justify reconsideration and/or adjustment of the 
amount to be deducted. Failure to respond within the 10-day period 
will be interpreted to mean that the Contractor accepts the 
deductions proposed.
    (c) All or a portion of the final payment may be delayed or 
withheld until the Contracting Officer makes a final decision on the 
proposed deduction. If the Contracting Officer determines that any 
or all of the proposed deductions are warranted, the Contracting 
Officer shall so notify the Contractor, and adjust payments under 
the contract accordingly.

(End of clause)


552.232-72  Final Payment.

    As prescribed in 532.111(c), insert the following clause:

Final Payment (Sep 1999)

    Before final payment is made, the Contractor shall furnish the 
Contracting Officer with a release of all claims against the 
Government relating to this contract, other than claims in stated 
amounts that are specifically excepted by the Contractor from the 
release. If the Contractor's claim to amounts payable under the 
contract has been assigned under Assignment of Claims Act of 1940, 
as amended (31 U.S. 3727, 41 U.S.C. 15), a release may also be 
required of the assignee.

(End of clause)


552.232-73   Availability of Funds.

    As prescribed in 532.705-1, insert the following clause:

Availability of Funds (Sep 1999)

    The authorization of performance of work under this contract 
during the initial contract period and any option or extension 
period(s) is contingent upon the appropriation of funds to procure 
this service. If the contract is awarded, extended, or option(s) 
exercised, the Government's obligation beyond the end of the fiscal 
year (September 30), in which the award or extension is made or 
option(s) exercised, is contingent upon the availability of funds 
from which payment for the contract services can be made. No legal 
liability on the part of the Government for payment of any money 
beyond the end of the each fiscal year (September 30) shall arise 
unless or until funds are made available to the Contracting Officer 
for this procurement and written notice of such availability is 
given to the Contractor.

(End of clause)


552.232-74  Invoice Payments.

    As prescribed in 532.908 (a)(1), insert the following clause:

Invoice Payments (Sep 1999)

    (a) The due date for making invoice payments by the designated 
payment office is:
    (1) For orders placed electronically by the General Services 
Administration (GSA) Federal Supply Service (FSS), and to be paid by 
GSA through electronic funds transfer (EFT), the later of the 
following two events:
    (i) The 10th day after the designated billing office receives a 
proper invoice from the Contractor. If the designated billing office 
fails to annotate the invoice with the date of receipt at the time 
of receipt, the invoice payment due date shall be the 10th day after 
the date of the Contractor's invoice; provided the Contractor 
submitted a proper invoice and no disagreement exists over quantity, 
quality, or Contractor compliance with contract requirements.
    (ii) The 10th day after Government acceptance of supplies 
delivered or services performed by the Contractor.
    (2) For all other orders, the later of the following two events:
    (i) The 30th day after the designated billing office receives a 
proper invoice from the Contractor. If the designated billing office 
fails to annotate the invoice with the date of receipt at the time 
of receipt, the invoice payment due date shall be the 30th day after 
the date of the Contractor's invoice; provided the Contractor 
submitted a proper invoice and on disagreement exists over quantity, 
quality, or Contractor compliance with contract requirements.
    (ii) The 30th day after Government acceptance of supplies 
delivered or services performed by the Contractor.
    (3) On a final invoice, if the payment amount is subject to 
contract settlement actions, acceptance occurs on the effective date 
of the contract settlement.
    (b) The General Services Administration will issue payment on 
the due date in (a)(1) above if the Contractor complies with full 
cycle electronic commerce. Full cycle electronic commerce includes 
all the following elements:
    (1) The Contractor must receive and fulfill electronic data 
interchange (EDI) purchase orders (transaction set 850).
    (2) The Contractor must generate and submit to the Government 
valid EDI invoices (transaction set 810) of submit invoices through 
the GSA Finance Center Internet-based invoice process. Internet-
based invoices must be submitted using procedures provided by GSA.
    (3) The Contractor's financial institution must receive and 
process, on behalf of the Contractor, EFT payments through the 
Automated Clearing House (ACH) system.
    (4) The EDI transaction sets in (b)(1) through (b)(3) above must 
adhere to implementation conventions provided by GSA.
    (c) If any of the conditions in (b) above do not occur, the 10-
day payment due dates in (a)(1) become 30-day payment due dates.
    (d) Notwithstanding paragraph (g) of the clause at FAR 52.212-4, 
Contract Terms and Conditions--Commercial Items, if the Contractor 
submits hard-copy invoices, submit only an original invoice. No 
copies of the invoice are required.
    (e) All other provisions of the Prompt Payment Act (31 U.S.C. 
3901 et seq.) and Office of Management and Budget (OMB) Circular A-
125, Prompt Payment, apply.

(End of clause)


552.232-75

    As prescribed in 532.908 (b)(1), insert the following clause:

Prompt Payment (Sep 1999)

    The Government will make payments under the terms and conditions 
specified in this clause. Payment shall be considered as being made 
on the day a check is dated or an electronic funds transfer is made. 
All days referred to in this clause are calendar days, unless 
otherwise specified.
    (a) Payment due date.
    (1) Rental Payments. Rent shall be paid monthly in arrears and 
will be due on the first workday of each month, and only as provided 
for by the lease.
    (i) When the date for commencement of rent falls on the 15th day 
of the month or earlier, the initial monthly rental payment under 
this contract shall become due on the first workday of the month 
following the month in which the commencement of the rent is 
effective.
    (ii) When the date for commencement of rent falls after the 15th 
day of the month, the initial monthly rental payment under this 
contract shall become due on the first workday of the second month 
following the month in which the commencement of the rent is 
effective.
    (2) Other payments. The due date for making payments other than 
rent shall be the later of the following two events:
    (i) The 30th day after the designated billing office has 
received a proper invoice from the Contractor.
    (ii) The 30th day after Government acceptance of the work or 
service. However,

[[Page 37247]]

if the designated billing office fails to annotate the invoice with 
the actual date of receipt, the invoice payment due date shall be 
deemed to be the 30th day after the Contractor's invoice is dated, 
provided a proper invoice is received and there is no disagreement 
over quantity, quality, or Contractor compliance with contract 
requirements.
    (b) Invoice and inspection requirements for payments other than 
rent.
    (1) The Contractor shall prepare and submit an invoice to the 
designated billing office after completion of the work. A proper 
invoice shall include the following items:
    (i) Names and address of the Contractor.
    (ii) Invoice date.
    (iii) Lease number.
    (iv) Government's order number or other authorization.
    (v) Description, price, and quantity of work or services 
delivered.
    (vi) Name and address of Contractor official to whom payment is 
to be sent (must be the same as that in the remittance address in 
the lease or the order).
    (vii) Name (where practicable), title, phone number, and mailing 
address of person to be notified in the event of a defective 
invoice.
    (2) The Government will inspect and determine the acceptability 
of the work performed or services delivered within 7 days after the 
receipt of a proper invoice or notification of completion of the 
work or services unless a different period is specified at the time 
the order is placed. If actual acceptance occurs later, for the 
purpose of determining the payment due date and calculation of 
interest, acceptance will be deemed to occur on the last day of the 
7 day inspection period. If the work or service is rejected for 
failure to conform to the technical requirements of the contract, 
the 7 days will be counted beginning with receipt of a new invoice 
or notification. In either case, the Contractor is not entitled to 
any payment or interest unless actual acceptance by the Government 
occurs.
    (c) Interest Penalty.
    (1) An interest penalty shall be paid automatically by the 
Government, without request from the Contractor, if payment is not 
made by the due date.
    (2) The interest penalty shall be at the rate established by the 
Secretary of the Treasury under Section 12 of the Contract Disputes 
Act of 1978 (41 U.S.C. 611) that is in effect on the day after the 
due date. This rate is referred to as the ``Renegotiation Board 
Interest Rate,'' and it is published in the Federal Register 
semiannually on or about January 1 and July 1. The interest penalty 
shall accrue daily on the payment amount approved by the Government 
and be compounded in 30-day increments inclusive from the first day 
after the due date through the payment date.
    (3) Interest penalties will not continue to accrue after the 
filing of a claim for such penalties under the clause at 52.233-1, 
Disputes, or for more than 1 year. Interest rates penalties of less 
than $1.00 need not be paid.
    (4) Interest penalties are not required on payment delays due to 
disagreement between the Government and Contractor over the payment 
amount or other issues involving contract compliance or on amounts 
temporarily withheld or retained in accordance with the terms of the 
contract. Claims involving disputes, and any interest that may be 
payable, will be resolved in accordance with the clause at 52.233-1, 
Disputes.

(End of clause)

    Alternate I (SEP 1999). If Alternate I is used, subparagraph 
(a)(1) of the basic clause should be designated as paragraph (a) and 
subparagraph (a)(2) and paragraph (b) should be deleted. Paragraph 
(c) of the basic clause should be redesignated (b).


552.232-76  Electronic Funds Transfer Payment.

    As prescribed in 532.908(b)(2), insert the following clause:

Electronic Funds Transfer Payment (Sep 1999)

    (a) The Government will make payments under this lease by 
electronic funds transfer (EFT). The Lessor must, no later than 30 
days before the first payment:
    (1) Designate a financial institution for receipt of EFT 
payments.
    (2) Submit this designation to the Contracting Officer or other 
Government official, as directed.
    (b) The Lessor must provide the following information:
    (1) The American Bankers Association 9-digit identifying number 
for wire transfers of the financing institution receiving payment if 
the institution has access to the Federal Reserve Communications 
System.
    (2) Number of account to which funds are to be deposited.
    (3) Type of depositor account (``C'' for checking, ``S'' for 
savings).
    (4) If the Lessor is a new enrollee to the EFT system, the 
Lessor must complete and submit a ``Payment Information Form,'' SF 
3881, before payment can be processed.
    (c) If the Lessor, during the performance of this contract, 
elects to designate a different financial institution for the 
receipt of any payment, the appropriate Government official must 
receive notice of such change and the required information specified 
above no later than 30 days before the date such change is to become 
effective.
    (d) The documents furnishing the information required in this 
clause must be dated and contain the:
    (1) Signature, title, and telephone number of the Lessor or the 
Lessor's authorized representative.
    (2) Lessor's name.
    (3) Lease number.
    (e) Lessor's failure to properly designate a financial 
institution or to provide appropriate payee bank account information 
may delay payments of amounts otherwise properly due.

(End of clause)


552.232-77  Payment By Credit Card.

    As prescribed in 532.7003, insert the following clause:

Payment By Credit Card (Sep. 1999)

    (a) Definitions. ``Government commercial credit card'' means the 
uniquely numbered credit card issued by a contractor under GSA's 
Governmentwide Contract for Fleet, Travel, and Purchase Card 
Services to named individual Government employees to pay for 
official Government purchases.
    ``Oral order'' means an order placed orally either in person or 
by telephone.
    (b) At the option of the Government and if agreeable to the 
Contractor, payments of ____*____ or less for oral or written orders 
may be made using the Government commercial credit card.
    (c) The Contractor shall not process a transaction for payment 
through the credit card clearinghouse until the purchased supplies 
have been shipped or services performed. Unless the cardholder 
requests correction or replacement of a defective or faulty item in 
accordance with other contract requirements, the Contractor shall 
immediately credit a cardholder's account for items returned as 
defective or faulty.
    (d) Payments made using the Government Commercial Credit Card 
are not eligible for any negotiated prompt payment discount. Payment 
made using a Government debit card will receive the applicable 
prompt payment discount.

(End of clause)
    * Enter amount not to exceed $100,000.
    Alternate I (SEP 1999). For solicitations and contracts under 
which other agencies may place orders directly, replace paragraph 
(b) of the basic clause with the following:
    (b) At the option of the Government and if agreeable to the 
Contractor, payments for oral or written orders may be made using 
the Government commercial purchase card. The dollar value of a 
purchase card action must not exceed the ordering agency's 
established limit.


552.233-70  Protests Filed Directly with the General Services 
Administration.

    As prescribed in 533.103-72, insert the following provisions:

Protests Filed Directly With the General Services Administration (Sep. 
1999)

    (a) The following definitions apply in this provision:
    ``Agency Protest Official for GSA'' means the official in the 
Office of Acquisition Policy designated to review ad decide 
procurement protests filed with GSA.
    ``Deciding official'' means the person chosen by the protester 
to decide the agency protest. The deciding official may be either 
the Contracting Officer or the Agency Protest Official.
    (b) The filing time frames in FAR 33.103(e) apply. An agency 
protest is filed when the protest complaint is received at the 
location the solicitation designates for serving protests. GSA's 
hours of operation are 8:00 a.m. to 4:30 p.m. Protests delivered 
after 4:30 p.m. will be considered received and filed the following 
business day.
    (c) A protest filed directly with the General Services 
Administration (GSA) must:
    (1) Indicate that it is a protest to the agency.
    (2) Be filed with the Contracting Officer.

[[Page 37248]]

    (3) State whether the protester chooses to have the Contracting 
Officer or the Agency Protest Official for GSA decide the protest. 
If the protest is silent on this matter, the Contracting Officer 
will decide the protest.
    (4) Indicate whether the protester prefers to make an oral 
presentation, a written presentation, or an oral presentation 
confirmed in writing, of arguments in support of the protest to the 
deciding official.
    (5) Include the information required by FAR 33.103(d)(2):
    (i) Name, address, fax number, and telephone number of the 
protester.
    (ii) Solicitation or contract number.
    (iii) Detailed statement of the legal and factual grounds for 
the protest, to include a description of resulting prejudice to the 
protester.
    (iv) Copies of relevant documents.
    (v) Request for a ruling by the agency.
    (vi) Statement as to the form of relief requested.
    (vii) All information establishing that the protester is an 
interested party for the purpose of filing a protest.
    (viii) All information establishing the timeliness of the 
protest (see paragraph (b) of this provision).
    (d) An interested party filing a protest with GSA has the choice 
of requesting either that the Contracting Officer or the Agency 
Protest Official for GSA decide the protest.
    (e) The decision by the Agency Protest Official for GSA is an 
alternative to a decision by the Contracting Officer. The Agency 
Protest Official for GSA will not consider appeals from the 
Contracting Officer's decision on an agency protest.
    (f) The deciding Official must conduct a scheduling conference 
with the protester within three (3) days after the protest is filed. 
The scheduling conference will establish deadlines for oral or 
written arguments in support of the agency protest and for agency 
officials to present information in response to the protest issues. 
The deciding official may hear oral arguments in support of the 
agency protest at the same time as the scheduling conference, 
depending on availability of the necessary parties.
    (g) Oral conferences may take place either by telephone or in 
person. Other parties (e.g., representatives of the program office) 
may attend at the discretion of the deciding official.
    (h) The following procedures apply to information submitted in 
support of or in response to an agency protest:
    (1) The protester and the agency have only one opportunity to 
support or explain the substance of the protest (either orally, in 
writing, or orally confirmed in writing).
    (2) GSA procedures do not provide for any discovery.
    (3) The deciding official has discretion to request additional 
information from either the agency or the protester. However, the 
deciding official will normally decide protests on the basis of 
information provided by the protester and the agency.
    (4) The parties are encouraged, but not required, to exchange 
information submitted to the Agency Protest Official for GSA.
    (5) Any written response by the agency to the protest must be 
filed with the deciding official within five (5) days after the 
filing of the protest.
    (6) Any additional information that either party wants to submit 
in writing after one-time oral arguments in support of the agency 
protest, must be received by the deciding official within two (2) 
days after the date of the oral arguments.
    (i) The deciding official will resolve the protest through 
informal presentations or meetings to the maximum extent 
practicable.
    (j) An interested party may represent itself or be represented 
by legal counsel. GSA will not reimburse the party for any legal 
fees related to the agency protest.
    (k) GSA will stay award or suspend contract performance in 
accordance with FAR 33.103(f). The stay or suspension, unless over-
ridden, remains in effect until the protest is decided, dismissed, 
or withdrawn.
    (l) The deciding official will make a best effort to issue a 
decision on the protest within twenty-eight (28) days after the 
filing date. The decision may be oral or written. If the decision is 
communicated orally to the protester, the deciding official will 
confirm in writing within three (3) days after the decision.
    (m) GSA may dismiss or stay proceedings on an agency protest if 
a protest on the same or similar basis is filed with a protest forum 
outside of GSA.

(End of provision)


552.236-70  Definitions.

    As prescribed in 536.570-1, insert the following clause:

Definitions (Apr 1984)

    The terms ``Administration'' and ``Service'' as used in this 
contract shall mean the General Services Administration (GSA) and 
the Public Buildings Service (PBS), respectively.

(End of clause)


552.236-71  Authorities and Limitations.

    As prescribed in 536.570-2, insert the following clause:

Authorities and Limitations (Apr 1984)

    (a) All work shall be performed under the general direction of 
the Contracting Officer, who alone shall have the power to bind the 
Government and to exercise the rights, responsibilities, authorities 
and functions vested in him by the contract documents, except that 
he shall have the right to designate authorized representatives to 
act for him. Wherever any provision in this contract specifies an 
individual (such as, but not limited to, Construction Engineer, 
Resident Engineer, Inspector or Custodian) or organization, whether 
governmental or private, to perform any act on behalf of or in the 
interests of the Government, that individual or organization shall 
be deemed to be the Contracting Officer's authorized representative 
under this contract but only to the extent so specified. The 
Contracting Officer may, at any time during the performance of this 
contract, vest in any such authorized representatives additional 
power and authority to act for him or designate additional 
representatives, specifying the extent of their authority to act for 
him; a copy of each document vesting additional authority in an 
authorized representative or designating an additional authorized 
representative shall be furnished to the Contractor.
    (b) The Contractor shall perform the contract in accordance with 
any order (including but not limited to instruction, direction, 
interpretation, or determination) issued by an authorized 
representative in accordance with his authority to act for the 
Contracting Officer; but the Contractor assumes all the risk and 
consequences of performing the contract in accordance with any order 
(including but not limited to instruction, direction, 
interpretation, or determination) of anyone not authorized to issue 
such order.

(End of clause)


552.236-72  Specialist.

    As prescribed in 536.570-3, insert the following clause:

Specialist (Apr 1984)

    The term ``Specialist,'' as used in the contract specification, 
shall mean an individual or firm of established reputation (or, if 
newly organized, whose personnel have previously established a 
reputation in the same field), which is regularly engaged in, and 
which maintains a regular force of workmen skilled in either (as 
applicable) manufacturing or fabricating items required by the 
contract, installing items required by the contract, or otherwise 
performing work required by the contract. Where the contract 
specification requires installation by a specialist, that term shall 
also be deemed to mean either the manufacturer of the item, an 
individual or firm licensed by the manufacturer, or an individual or 
firm who will perform the work under the manufacturer's direct 
supervision.

(End of clause)


552.236-73  Basis of Award--Construction Contract.

    As prescribed in 536.570-4, insert the following provision or the 
appropriate Alternate:

Basis of Award--Construction Contract (Apr 1985)

    (a) The low bidder for purposes of award is the responsible 
bidder offering the lowest price for the base bid (consisting of the 
lump sum bid and any associated unit price bids extended by the 
applicable number of units shown on the bid form). See Standard Form 
1442, Solicitation, Offer, and Award and the provision entitled 
``Contract Award--Sealed Bidding.''
    (b) A bid may be rejected as nonresponsive if the bid is 
materially unbalanced as to bid prices. A bid is unbalanced when the 
bid is based on prices significantly less than cost for some work 
and significantly overstated for other work.

(End of provision)

    Alternate I (APR 1985). if the solicitation includes a base bid 
and options, the Contracting Officer shall delete paragraph (a) of 
the basic provision and insert paragraph (a) substantially as 
follows:

[[Page 37249]]

    (a) The low bidder for purposes of award is the responsible 
bidder offering the lowest aggregate price for (1) the base bid 
(consisting of the lump sum bid and any associated unit price bids 
extended by the applicable number of units shown on the bid form) 
plus (2) all options designated to be evaluated. The evaluation of 
options will not obligate the Government to exercise the options. 
See Standard Form 1442, Solicitation, Offer, and Award and the 
provision entitled ``Contract Award--Sealed Bidding.''
    Alternate II (APR 1985). If the solicitation includes a base bid 
and alternates, the Contracting Officer shall delete paragraph (a) 
of the basic provision and insert paragraphs (a), (c), and (d) 
substantially as follows:
    (a) The low bidder for purposes of award is the responsible 
bidder offering the lowest aggregate price for (1) the base bid 
(consisting of the lump sum bid and any associated unit price bids 
extended by the applicable number of units shown on the bid form) 
plus (2) those alternates in the order of priority listed in the 
solicitation that provide the most features of work within the funds 
available at bid opening. See the provision entitled ``Contract 
Award--Sealed Bidding.''
    (c) Alternates will be added to the base bid in the order listed 
in the solicitation (see Standard Form 1442, Solicitation, Offer, 
and Award). If the addition of an alternate would make all bids 
exceed the funds available at bid opening, that alternate shall be 
skipped and the next subsequent alternate in a lower amount shall be 
added, provided that the aggregate of base bid and the selected 
alternates do not exceed the funds available at bid opening. For 
example, when the amount available is $100,000 and a bidder's base 
bid is $85,000, with its separate bids on four successive 
alternatives being $10,000, $8,000, $6,000, and $4,000, the 
aggregate amount of the bid for purposes of selecting the alternates 
would be $99,000 (base bid plus the first and four alternates). The 
second and third alternates are skipped because each of them would 
cause the aggregate of the base bid and alternates to exceed the 
$100,000 amount available when considered with the first alternate. 
All bids shall be evaluated on the basis of the same alternates.
    (d) After the low bidder has been determined in accordance with 
paragraph (a), an award may be made to that low bidder on the base 
bid, plus any combination of alternates for which funds are 
available at the time of award, but only if the award amount does 
not exceed the amount offered by any other responsible bidder. If 
the base bid plus the proposed combination of alternates exceed the 
amount offered by any other responsible bidder for the same 
combination of alternates, the award cannot be made on that 
combination of alternates.
    Alternate III (APR 1985). If the solicitation includes a base 
bid, alternates, and options, the Contracting Officer shall delete 
paragraph (a) of the basic provision and insert paragraphs (a), (c), 
and (d) substantially as follows:
    (a) The low bidder for purposes of award is the responsible 
bidder offering the lowest aggregate price for (1) the base bid 
(consisting of the lump sum bid and any associated unit price bids 
extended by the applicable number of units shown on the bid form) 
plus (2) those alternates in the order of priority listed in the 
solicitation that provide the most features of work within the funds 
available at bid opening plus (3) all options designated to be 
evaluated except those options associated with alternates which are 
skipped during the selection process outlined in paragraph (c) 
below. The evaluation of options will not obligate the Government to 
exercise the options. See the provision entitled ``Contract Award--
Sealed Bidding.''
    (c) Alternates will be added to the base bid in the order listed 
in the solicitation (see Standard Form 1442, Solicitation, Offer, or 
Award). If the addition of an alternate would make all bids exceed 
the funds available at bid opening, that alternate shall be skipped 
and the next subsequent alternate in a lower amount shall be added, 
provided that the aggregate of base bid and the selected alternates 
do not exceed the funds available at bid opening. For example, when 
the amount available is $100,000 and a bidder's base bid is $85,000, 
with its separate bids on four successive alternates being $10,000, 
$8,000, $6,000, and $4,000, the aggregate amount of the bid for 
purposes of selecting the alternates would be $99,000 (base bid plus 
the first and fourth alternates). The second and third alternates 
are skipped because each of them would cause the aggregate of the 
base bid and alternates to exceed the $100,000 amount available when 
considered with the first alternate. All bids shall be evaluated on 
the basis of the same alternates.
    (d) After the low bidder has been determined in accordance with 
paragraph (a), award may be made to that low bidder on the base bid 
and evaluated options plus any combination of alternates for which 
funds are available at the time of award, but only if that low 
bidder is still low on the sum thereof plus any previously 
unevaluated options designated to be evaluated which are associated 
with proposed alternates that were skipped during the selection 
under paragraph (c). If that low bidder is not still low, award 
cannot be made on the proposed combination of alternates.


552.236-74  Working Hours.

    As prescribed in 536.570-5, insert the following clause:

Working Hours (Apr 1984)

    (a) It is contemplated that all work will be performed during 
the customary working hours of the trades involved unless otherwise 
specified in this contract. Work performed by the Contractor at his 
own volition outside such customary working hours shall be at no 
additional expense to the Government.
    (b) Any requests received by the Contractor from occupants of 
existing buildings to change the hours of work shall be referred to 
the Contracting Officer for determination.

(End of clause)


552.236-75  Use of Premises.

    As prescribed in 536.570-6, insert the following clause:

Use of Premises (Apr 1984)

    (a) If the premises are occupied, the Contractor, his 
subcontractors, and their employees shall comply with the 
regulations governing access to, operation of, and conduct while in 
or on the premises and shall perform the work required under this 
contract in such a manner as not to unreasonably interrupt or 
interfere with the conduct of Government business.
    (b) Any request received by the Contractor from occupants of 
existing buildings to change the sequence of work shall be referred 
to the Contracting Officer for determination.
    (c) If the premises are occupied, the Contractor, his 
subcontractors and their employees shall not have access to or be 
admitted into any building outside the scope of this contract except 
with official permission.

(End of clause)


552.236-76  Measurements.

    As prescribed in 536.570-7, insert the following clause:

Measurements (Apr 1984)

    All dimensions shown of existing work and all dimensions 
required for work that is to connect with work now in place, shall 
be verified by the Contractor by actual measurement of the existing 
work. Any discrepancies between the contract requirements and the 
existing conditions shall be referred to the Contracting Officer 
before any work affected thereby has been performed.

(End of clause)


552.236-77  Specifications and Drawings

    As prescribed in 536.570-8, insert the following clause:

Specifications and Drawings (Sep 1999)

    The requirements of the clause entitled ``Specifications and 
Drawings for Construction'' at FAR 52.236-21, are supplemented as 
follows:
    (a) In case of difference between small and large-scale 
drawings, the large-scale drawings shall govern. Schedules on any 
contract drawing shall take precedence over conflicting information 
on that or any other contract drawing. On any of the drawings where 
a portion of the work is detailed or drawn out and the remainder is 
shown in outline, the parts detailed or drawn out shall apply also 
to all other like portions of the work.
    (b) Where the word ``similar'' occurs on the drawings, it shall 
have a general meaning and not be interpreted as being identical, 
and all details shall be worked out in relation to their location 
and their connection with other parts of the work.
    (c) Standard Details or Specification Drawings are applicable 
when listed, bound with the specifications, noted on the drawings or 
referenced elsewhere in the specifications. Where the notes on the 
drawings indicate modifications, such modifications shall govern.
    (d) In case of difference between Standard Details or 
Specification Drawings and the specifications, the specifications 
will govern. In case of difference between the Standard Details or 
Specification Drawings and their drawings prepared specifically for 
this contract, the later shall govern.


[[Page 37250]]


(End of clause)


552.236-78  Shop Drawings, Coordination Drawings, and Schedules.

    As prescribed in 536.570-9, insert the following clause:

Shop Drawings, Coordination Drawings, and Schedules (Sep 1999)

    The requirements, of the clause entitled ``Specifications and 
Drawings for Construction'' at FAR 52.236-21, are supplemented as 
follows:
    (a) The Contractor shall submit shop drawings, coordination 
drawings, and schedules for approval as required by the 
specifications or requested by the Contracting Officer as follows:
    (b) Show drawings shall include fabrication, erection and 
setting drawings, schedule drawings, manufacturers' scale drawings, 
wriring and control diagrams, cuts or entire catalogs, pamphlets, 
descriptive literature, and performance and test data.
    (c) Drawings and schedules, other than catalogs, pamphlets and 
similar printed material, shall be submitted in reproducible form 
with two prints made by a process approved by the Contracting 
Officer. Upon approval, the reproducible form will be returned to 
the Contractor who shall then furnish the number of additional 
prints, not to exceed 10, required by the specifications. The 
Contractor shall submit shop drawings in catalog, pamphlet and 
similar printed form in a minimum of four copies plus as many 
additional copies as the Contractor may desire or need for his use 
or use by subcontractors.
    (d) Before submitting shop drawings on the mechanical and 
electrical work, the Contractor shall submit and obtain the 
Contracting Officer's approval of such lists of mechanical and 
electrical equipment and materials as may be required by the 
specifications.
    (e) Each shop drawing or coordination drawing shall have a blank 
area 5 by 5 inches, located adjacent to the title block. The title 
block shall display the following:
Number and title of drawing
Date of drawing or revision
Name of project building or facility
Name of Contractor and (if appropriate) name of subcontractor 
submitting drawing
Clear identify of contents and location on the work
Project title and contract number

    (f) Unless otherwise provided in this contract, or otherwise 
directed by the Contracting Officer, shop drawings, coordination 
drawings and schedules shall be submitted to the Contracting 
Officer, with a letter in triplicate, sufficiently in advance of 
construction requirements to permit no less than 10 working days for 
checking and appropriate action.
    (g) Approval of drawings and schedules will be general and shall 
not be construed as permitting any departure from the contract 
requirements, or as approving departures from full-size details 
furnished by the Contracting Officer.

(End of clause)


552.236-79  Samples.

    As prescribed in 536.570-10, insert the following clause:

Samples (Apr 1984)

    (a) After the award of the contract, the Contractor shall 
furnish for the approval of the Contracting Officer samples required 
by the specifications or by the Contracting Officer. Samples shall 
be delivered to the Contracting Officer or to the Architect as 
specified or as directed. The Contractor shall prepay all shipping 
charges on samples. Materials or equipment for which samples are 
required shall not be used in the work until approved in writing by 
the Contracting Officer.
    (b) Each sample shall have a label indicating:
    (1) Name of project building or facility, project title and 
contract number.
    (2) Name of Contractor and, if appropriate, name of 
subcontractor.
    (3) Identification of material or equipment with specification 
requirement.
    (4) Place of origin.
    (5) Name of producer and brand (if any).
    Samples of finished materials shall have additional markings 
that will identify them under the finish schedules.
    (c) The Contractor shall mail under separate cover a letter in 
triplicate submitting each shipment of samples and containing the 
information required in paragraph (b) of this clause. He shall 
enclose a copy of this letter with the shipment and send a copy to 
the Government representative on the project. Approval of a sample 
shall be only for the characteristics or use named in such approval 
and shall not be construed to change or modify any contract 
requirement. Substitutions will not be permitted unless they are 
approved in writing by the Contracting Officer.
    (d) Approved samples not destroyed in testing will be sent to 
the Government representative at the project. Approved samples of 
hardware in good condition will be marked for identification and may 
be used in the work. Materials and equipment, incorporated in the 
work shall match the approved samples. Other samples not destroyed 
in testing or not approved will be returned to the Contractor at his 
expense if so requested at time of submission.
     (e) Failure of any material to pass the specified tests will be 
sufficient cause for refusal to consider, under this contract, any 
further samples of the same brand or make of that material or 
equipment which previously has proved unsatisfactory in service.
    (f) Samples of various materials or equipment delivered on the 
site or in place may be taken by the Government representative for 
testing. Samples failing to meet contract requirements, or there 
shall be a proper adjustment of the contract price as determined by 
the Contracting Officer.
    (g) Unless otherwise specified, when tests are required only one 
test of each sample proposed for use will be made at the expense of 
the Government. Samples which do not meet specification requirements 
will be rejected. Testing of additional samples will be made by the 
Government at the expense of the Contractor.

(End of clause)


552.236-80  Heat.

    As prescribed in 536.570-11, insert the following clause:

Heat (Apr 1984)

    Unless otherwise specified or unless already provided by the 
Government the Contractor shall;
    (a) Provide heat, as necessary to protect all work, materials, 
and equipment against injury from dampness and cold;
    (b) Protect, cover and/or heat as may be necessary, to provide 
and maintain a temperature of not less than 50 degrees Fahrenheit 
(1) in the concrete during the placing, setting and curing of 
concrete, and (2) in the plaster during the application, setting and 
curing of plaster; and
    (c) Provide heat as necessary in the area where work is to be 
done to provide the minimum temperature recommended by the supplier 
or manufacturer of the material, but in no case less than 50 degrees 
Fahrenheit, for a period beginning 10 days before placing or 
interior finishes and finish materials and continuing until 
completion or beneficial occupancy of the area, whichever is 
earlier.

(End of clause)


552.236-81  Use of Equipment by the Government.

    As prescribed in 536.570-12, insert the following clause:

Use of Equipment by the Government (Apr 1984)

    (a) The Government may take over and operate, with Government 
employees, such equipment as is necessary for heating or cooling 
such areas of the building as require the service, as soon as the 
installation is sufficiently complete.
    (b) The Contracting Officer will advise the Contractor by 
letter, prior to the use of equipment, which items of equipment will 
be operated, and the date and time such operation will begin.
    (c) Government operation of equipment will not relieve the 
Contractor of the one-year guarantee on materials and workmanship 
elsewhere provided for in this contract.
    (d) The guarantee period, elsewhere provided for in this 
contact, for each piece of equipment shall be in accordance with the 
``Guarantees'' clause of this contract.

(End of clause)


552.236-82  Subcontracts.

    As prescribed in 536.570-13, insert the following clause:

Subcontracts (Apr 1984)

    (a) Nothing contained in the contract shall be construed as 
creating any contractual relationship between any subcontractor and 
the Government. The divisions or sections of the specifications are 
not intended to control the Contractor in dividing the work among 
subcontractors, or to limit the work performed by any trade.
    (b) The Contractor shall be responsible to the Government for 
acts and omissions of his own employees and of subcontractors and

[[Page 37251]]

their employees. He shall also be responsible for the coordination 
of the work of the trades, subcontractors and suppliers.
    (c) The Government will not undertake to settle any differences 
between or among the Contractor, subcontractors, or suppliers.

(End of clause)


552.236-83  Requirement for a Project Labor Agreement.

    As prescribed in 536.570-14, insert a clause substantially the same 
as the following:

Requirement for a Project Labor Agreement (Sep 1999)

    (a) Definition. ``Project Labor Agreement'' (PLA) means an 
agreement between the contractor, subcontractors, and the union(s) 
representing workers. Under a PLA, the contractor and subcontractors 
on a project and the union(s) agree on terms and conditions of 
employment for the project, establishing a framework for labor-
management cooperation to advance the Government's procurement 
interest in cost, efficiency, and quality.
    (b) The Contractor shall, after contract award, enter into a PLA 
for performance of [Insert project or contract name]. The PLA binds 
the Contractor and subcontractors of whatever tier engaged in onsite 
construction work. The PLA shall include all the following terms:
    (1) Guarantees against strikes, lockouts, and similar work 
disruptions.
    (2) Effective, prompt and mutually binding procedures for 
resolving labor disputes arising during the project.
    (3) Other mechanisms for labor-management cooperation on matters 
of mutual interest and concern, including productivity, quality of 
work, safety, and health.
    (4) The PLA shall fully conform to all applicable statutes, 
regulations, and Executive Orders.
    (c) Any PLA reached under this clause shall not change the terms 
of this contract or provide for any pricing adjustment by the 
Government.
    (d) The Government shall not participate in the negotiations of 
any PLA.
    (e) Nothing in this clause precludes contractors or 
subcontractors from competing for contracts or subcontracts on this 
project without discrimination based on union or non-union status.

(End of clause)


552.237-70  Qualifications of Offerors.

    As prescribed in 537.110(a), insert the following provision:

Qualifications of Offerors (May 1989)

    (a) Offers will be considered only from responsible 
organizations or individuals now or recently engaged in the 
performance of building service contracts comparable to those 
described in this solicitation. In order to determine an Offeror's 
qualifications, the Offeror may be requested to furnish a narrative 
statement listing comparable contracts which it has performed; a 
general history of its operating organization; and its complete 
experience. An Offeror may also be required to furnish a statement 
of its financial resources; show that it has the ability to maintain 
a staff of regular employees adequate to ensure continuous 
performance of the work; and, demonstrate that its equipment and/or 
plant capacity for the work contemplated is sufficient, adequate, 
and suitable.
    (b) Competency in performing comparable building service 
contracts, demonstration of acceptable financial resources, 
personnel staffing, plant, equipment, and supply sources will be 
considered in determining whether an Offeror is responsible.
    (c) Prospective Offerors are advised that in evaluating these 
areas involving any small business concern(s), any negative 
determinations are subject to the Certificate of Competency 
procedures set forth in the Federal Acquisition Regulation.

(End of provision)


552.237-71  Qualifications of Employees.

    As prescribed in 537.110(b), insert the following clause:

Qualifications of Employees (May 1989)

    (a) The contracting officer or a designated representative may 
require the Contractor to remove any employee(s) from GSA controlled 
buildings or other real property should it be determined that the 
individual(s) is either unsuitable for security reasons or otherwise 
unfit to work on GSA controlled property.
    (b) The Contractor shall fill out and cause all of its employees 
performing work on the contract work to fill out, for submission to 
the Government, such forms as may be necessary for security or other 
reasons. Upon request of the Contracting Officer, the Contractor and 
its employees shall be fingerprinted.
    (c) Each employee of the Contractor shall be a citizen of the 
United States of America, or an alien who has been lawfully admitted 
for permanent residence as evidenced by Alien Registration Receipt 
Card Form I-151, or, who presents other evidence from the 
Immigration and Naturalization Service that employment will not 
affect his immigration status.

(End of clause)


552.237-72  Prohibition Regarding ``Quasi-Military Armed Forces.''

    As prescribed in 537.110(c), insert the following clause:

Prohibition Regarding ``Quasi-Military Armed Forces'' (Sep 1999)

    The Contractor must not, during the term of this contract, offer 
for hire ``Quasi-Military Armed Forces'' within the meaning of the 
court decision in United States ex. rel. Weinberger v. Equifax, 557 
F.2d 456 (5th Cir. 1977).

(End of clause)


552.237-73  Restriction on Disclosure of Information.

    As prescribed in 537.270, insert the following clause:

Restriction on Disclosure of Information (Sep 1999)

    (a) The Contractor shall, in the performance of this contract, 
keep all information contained in source documents or other media 
furnished by the Government in the strictest confidence. The 
Contractor shall not publish or otherwise divulge such information 
in whole or in part, in any manner or form, nor authorize or permit 
others to do so. The Contractor shall take such reasonable measures 
as are necessary to restrict access to such information, while in 
the Contractor's possession, to those employees needing such 
information to perform the work provided herein, i.e., on a ``need 
to know'' basis. The Contractor shall immediately notify, in 
writing, the Contracting Officer in the event that the Contractor 
determines or has reason to suspect a breach of this requirement.
    (b) The Contractor shall not disclose any information concerning 
the work under this contract to any person or individual unless the 
Contractor obtains prior written approval from the Contracting 
Officer.
    (c) The Contractor shall insert the substance of this clause in 
any consultant agreement or subcontract under this contract.
    (d) Any unauthorized disclosure of information may result in 
termination of this contract for cause.

(End of clause)


552.238-70  Identification of Electronic Office Equipment Providing 
Accessibility for the Handicapped.

    As prescribed in 538.273(a)(1), insert the following clause:

Identification of Electronic Office Equipment Providing Accessibility 
for the Handicapped (Sept 1991)

    (a) Definitions. ``Electronic office equipment accessiblity'' 
means the application/configuration of electronic office equipment 
(includes hardware, software and firmware) in a manner that 
accommodates the functional limitations of individuals with 
disabilities (i.e., handicapped individuals) so as to promote 
productivity and provide access to work related and/or public 
information resources.
    ``Handicapped individuals'' mean qualified individuals with 
impairments as cited in 29 CFR 1613.702(f) who can benefit from 
electronic office equipment accessibility.
    ``Special peripheral'' means a special needs aid that provides 
access to electronic equipment that is otherwise inaccessible to a 
handicapped individual.
    (b) The offeror is encouraged to identify in its offer, and 
include in any commercial catalogs and pricelists accepted by the 
Contracting Officer, office equipment, including any special 
peripheral, that will facilitate electronic office equipment 
accessibility for handicapped individuals. Identification should 
include the type of disability accommodated and how the users with 
that disability would be helped.

(End of clause)

[[Page 37252]]

552.238-71  Submission and Distribution of Authorized FSS Schedule 
Pricelists.

    As prescribed in 538.273(a)(2), insert the following clause:

Submission and Distribution of Authorized FSS Schedule Pricelists (Sep 
1999)

    (a) Definition. For the purposes of this clause, the Mailing 
List is [Contracting officer shall insert either: ``the list of 
addressees provided to the Contractor by the Contracting Officer'' 
or ``the Contractor's listing of its Federal Government 
customers''].
    (b) The Contracting Officer will return one copy of the 
Authorize FSS Schedule Pricelist to the Contractor with the 
notification of contract award.
    (c)(1) The Contractor shall provide to the GSA Contracting 
Officer:
    (i) Two paper copies of Authorized FSS Schedule Pricelist; and
    (ii) The Authorized FSS Schedule Pricelist on a common-use 
electronic medium.
    The Contracting Officer will provide detailed instructions for 
the electronic submission with the award notification. Some 
structured data entry in a prescribed format may be required.
    (2) The Contractor shall provide to each addressee on the 
mailing list either:
    (i) One paper copy of the Authorized FSS Schedule Price List; or
    (ii) A self-addressed, postage-paid envelope or postcard to be 
returned by addressee that want to receive a paper copy of the 
pricelist. The Contractor shall distribute price lists within 20 
calendar days after receipt of returned requests.
    (3) The Contractor shall advise each addressee of the 
availability of pricelist information through the on-line Multiple 
Award Schedule electronic data base.
    (d) The Contractor shall make all of the distributions required 
in paragraph (c) at least 15 calendar days before the beginning of 
the contract period, or within 30 calendar days after receipt of the 
Contracting Officer's approval for printing, whichever is later.
    (e) During the period of the contract, the Contractor shall 
provide one copy of its Authorized FSS Schedule Pricelist to any 
authorized schedule user, upon request. Use of the mailing list for 
any other purpose is not authorized.

(End of clause)


552.238-72  Identification of Energy-Efficient Office Equipment and 
Supplies Containing Recovered Materials or Other Environmental 
Attributes.

    As prescribed in 538.273(a)(3), insert the following clause:

Identification of Energy-Efficient Office Equipment and Supplies 
Containing Recovered Materials or Other Environmental Attributes (Sep. 
1999)

    (a) Definitions. ``Energy-efficient office equipment,'' as used 
in this clause, means office equipment that, in representative use, 
provides equivalent or better performance and value to users, but 
uses significantly less energy than most functionally equivalent 
models.
    ``Recovered materials,'' as used in this clause, means waste 
material and by-products which have been recovered or diverted from 
solid waste, but such term does not include those materials and by-
products generated from, and commonly reused, within an original 
manufacturing process (42 U.S.C. 6903(19)). For paper, it also 
includes postconsumer materials, and manufacturing and certain other 
wastes. (42 U.S.C. 6962(h)).
    ``Remanufactured products,'' as used in this clause, means 
equipment or parts that have been factory remanufactured or rebuilt 
to meet new equipment or part performance specifications and have 
had no use subsequent to their remanufacture.
    (b) The offeror shall identify in its offer and include in any 
commercial catalogs and pricelists and any resultant Government 
catalogs or pricelists submitted to the Contracting Officer, energy-
efficient office equipment and supplies that contain recovered 
material, remanufactured products, or other environmental 
attributes. Examples of energy-efficient office equipment are 
microcomputers and associated equipment that meet the requirements 
of the Environmental Protection Agency's (EPA's) Energy Star 
Computers Program. Supplies that contain recovered materials and 
other environmental attributes include, but are not limited to, 
products identified in EPA procurement guidelines (40 CFR Subchapter 
I) and products that are either degradable, ozone safe, recyclable, 
contain low volatile organic content compounds, contribute to source 
reduction, or otherwise are designed or manufactured to achieve 
environmental improvement. For example, an offeror can identify 
products that are safe or safer alternatives for more toxic or 
hazardous products and products that can be substituted for ones 
manufactured with toxic or hazardous materials. Such supplies shall 
satisfy the guidance contained in 16 CFR Part 260, Guides for the 
Use of Environmental Marketing Claims.
    (c) An offeror, in identifying an item with an environmental 
attribute, shall possess evidence or rely upon a reasonable basis to 
substantiate the claim (see 16 CFR 260.5). The Government will 
accept an offeror's claim of an item's environmental attribute on 
the basis of--
    (1) Participation in a Federal agency sponsored program, e.g., 
EPA's Energy Star Computer program;
    (2) Verification by an independent organization that specializes 
in certifying such claims; or
    (3) Possession of competent and reliable evidence. For any test, 
analysis, research, study or other evidence to be ``competent and 
reliable,'' it must have been conducted and evaluated in an 
objective manner by persons qualified to do so, using procedures 
generally accepted in the profession to yield accurate and reliable 
results.

(End of clause)


552.238-73  Cancellation.

    As prescribed in 538.273(a)(4), insert the following clause:

Cancellation (Sep 1999)

    Either party may cancel this contract in whole or in part by 
providing written notice. The cancellation will take effect 30 
calendar days after the other party receives the notice of 
cancellation. If the Contractor elects to cancel this contract, the 
Government will not reimburse the minimum guarantee.

(End of clause)


552.238-74  Contractor's Report of Sales.

    As prescribed in 538.273(b)(1), insert the following clause:

Contractor's Report of Sales (Sep 1999)

    (a) The Contractor must report the quarterly dollar value (in 
U.S. dollars and rounded to the nearest whole dollar) of all sales 
under this contract by calendar quarter (i.e., January-March, April-
June, July-September, and October-December). The dollar value of a 
sale is the price paid by the schedule user for products and 
services on a schedule contract task or delivery order, as recorded 
by the Contractor. The reported contract sales value must include 
the industrial funding fee (see Clause 552.238-76).
    (b) The Contractor must report the quarterly dollar value of 
sales on electronic GSA Form 72A, Contractor's Report of Sales, to 
the FSS Vendor Support Center (VSC) Website at Internet, http://
VSC.gsa.gov. The Contractor must report sales separately for each 
National Stock Number (NSN), Special Item Number (SIN), or subitem. 
If no sales occur, the Contractor must show zero on the report for 
each separate NSN, SIN, or subitem.
    (c) The Contractor must register with the VSC before using the 
automated reporting system. To register, the Contractor (or its 
authorized representative) must call the VSC at (703) 305-6235 and 
provide the necessary information regarding the company, contact 
name(s), and telephone number(s). The VSC will then issue a 72A 
specific password and provide other information needed to access the 
reporting system. Instructions for electronic reporting are 
available at the VSC Website or by calling the above phone number.
    (d) The Contractor must convert the total value of sales made in 
foreign currency to U.S. dollars using the ``Treasury Reporting 
Rates of Exchange,'' issued by the U.S. Department of Treasury, 
Financial Management Service. The Contractor must use the issue of 
the Treasury report in effect on the last day of the calendar 
quarter. The report is available from: Department of the Treasury, 
Financial Management Service, International Funds Branch, 3700 East-
West Highway, PGCII, Room 5A19, Hyattsville, MD 20782, Telephone: 
(202) 874-7994, Internet: http://www.fms.treas.gov/intn.html.
    (e) The report is due 30 days following the completion of the 
reporting period. The Contractor must also provide a close-out 
report within 120 days after the expiration of the contract. The 
contract expires upon physical completion of the last, outstanding 
task or delivery order of the contract. The close-out report must 
cover all sales not shown in the final quarterly report and 
reconcile all errors and credits. If the Contractor reported all 
contract sales and reconciled all errors and credits on the final 
quarterly report, then show zero sales in the close-out report.


[[Page 37253]]


(End of clause)


552.238-75  Price Reductions.

    As prescribed in 538.273(b)(2), insert the following clause:

Price Reductions (Sep 1999)

    (a) Before award of a contract, the Contracting Officer and the 
Offeror will agree upon (1) the customer (or category of customers) 
which will be the basis of award, and (2) the Government's price or 
discount relationship to the identified customer (or category of 
customers). This relationship shall be maintained through out the 
contract period. Any change in the Contractor's commercial pricing 
or discount arrangement applicable to the identified customer (or 
category of customers) which disturbs this relationship shall 
constitute a price reduction.
    (b) During the contract period, the Contractor shall report to 
the Contracting Officer all price reductions to the customer (or 
category of customers) that was the basis of award. The Contractor's 
report shall include an explanation of the conditions under which 
the reductions were made.
    (c)(1) A price reduction shall apply to purchases under this 
contract if, after the date negotiations conclude, the Contractor--
    (i) Revises the commercial catalog, pricelist, schedule or other 
document upon which contract award was predicated to reduce prices;
    (ii) Grants more favorable discounts or terms and conditions 
than those contained in the commercial catalog, pricelist, schedule 
or other documents upon which contract award was predicated; or
    (iii) Grants special discounts to the customer (or category of 
customers) that formed the basis of award, and the change disturbs 
the price/discount relationship of the Government to the customer 
(or category of customers) that was the basis of award.
    (2) The Contractor shall offer the price reduction to the 
Government with the same effective date, and for the same time 
period, as extended to the commercial customer (or category of 
customers).
    (d) There shall be no price reduction for sales--
    (1) To commercial customers under firm, fixed-price definite 
quantity contracts with specified delivery in excess of the maximum 
order threshold specified in this contract;
    (2) To Federal agencies; or
    (3) Caused by an error in quotation or billing, provided 
adequate documentation is furnished by the Contractor to the 
Contracting Officer.
    (e) The Contractor may offer the Contracting Officer a voluntary 
Governmentwide price reduction at any time during the contract 
period.
    (f) The Contractor shall notify the Contracting Officer of any 
price reduction subject to this clause as soon as possible, but not 
later than 15 calendar days after its effective date.
    (g) The contractor will be modified to reflect any price 
reduction which becomes applicable in accordance with this clause.

(End of clause)


552.238-76  Industrial Funding Fee.

    As prescribed in 538.273(b)(3), insert the following clause:

Industrial Funding Fee (Sep 1999)

    (a) The Contractor must pay the Federal Supply Service, GSA, an 
industrial funding fee (IFF). The Contractor must remit the IFF in 
U.S. dollars within 30 days after the end of each quarterly 
reporting period as established in clause 552.238-74, Contractor's 
Report of Sales. The IFF equals ________*________ of total quarterly 
sales reported. The IFF reimburses the GSA Federal Supply Service 
for the costs of operating the Federal Supply Schedules Program and 
recoups its operating costs from ordering activities. Offerors must 
include the IFF in their prices. The fee is included in the award 
price(s) and reflected in the total amount charged to ordering 
activities.
    (b) The Contractor must remit any monies due as a result of the 
close-out report required by Clause 552.238-74 at the time the 
close-out report is submitted to GSA.
    (c) The Contractor must pay the IFF amount due by check, or 
electronic funds transfer through the Automated Clearing House 
(ACH), to the ``General Services Administration.'' If the payment 
involves multiple special item numbers or contracts, the Contractor 
may consolidate the IFFs into one payment. To ensure that the 
payment is credited properly, the Contractor must identify the check 
or electronic transmission as an ``Industrial Funding Fee'' and 
include the following information: contract number(s); report 
amount(s); and report period(s). If the Contractor makes payment by 
check, provide this information on either the check, check stub, or 
other remittance material.
    (1) If paying the IFF by check, the Contractor must forward the 
check to the following address: General Services Administration, 
Accounts Receivable Branch, P.O. Box 70500, Chicago, IL 60673-0500.
    (2) If paying by electronic funds transfer through the ACH, the 
Contractor must call GSA, Financial Information Control Branch, 
Receivables, Collections and Sales Section (6BCDR) at [Contracting 
Officer to insert phone number] to make arrangements.
    (d) If the full amount of the IFF is not paid within 30 calendar 
days after the end of the applicable reporting period, it 
constitutes a contract debt to the United States Government under 
the terms of FAR 32.6. The Government may exercise all rights under 
the Debt Collection Act of 1982, including withholding or setting 
off payments and interest on the debt (see FAR 52.232-17, Interest).
    (e) If the Contractor fails to submit sales reports, falsifies 
sales report, or fails to pay the IFF In a timely manner, the 
Government may terminate or cancel this contract. Willful failure or 
refusal to furnish the required reports, falsification of sales 
reports, or failure to pay the IFF timely constitutes sufficient 
cause for terminating the Contractor for cause under the termination 
provisions of this contract.

(End of clause)
    *The Commissioner, Federal Supply Service or a designee 
determines and provides to contracting officers the percentage 
amount of the fee to insert in the above clause.


552.242-70  Status Report of Orders and Shipments.

    As prescribed in 542.1107, insert the following clause:

Status Report of Orders and Shipments (Apr 1992)

    (a) The Contractor shall furnish to the Administrative 
Contracting Officer (ACO) a report covering orders received and 
shipments made during each calendar month of contract performance. 
The information required by the Government shall be reported on GSA 
Form 1678, Status Report of Orders and Shipments, in accordance with 
instructions on the form. The information required by the GSA Form 
1678 may also be submitted in an automated printout form if 
authorized by the ACO. Alternatively, the required information may 
be reported by electronic data interchange using ANSI standards. For 
further information, contact GSA, Contract Administration Division 
[Insert appropriate telephone number of FQC] Reports shall be 
forwarded to the ACO no later than the seventh workday of the 
succeeding month.
    (b) An initial supply of GSA Form 1678 will be forwarded to the 
Contractor with the contract. Additional copies of the form, if 
needed, may be obtained from the ACO, or reproduced by the 
Contractor.

(End of clause)


552.243-70  Pricing of Adjustments.

    As prescribed in 543.205(a)(1), insert the following clause:

Pricing of Adjustments (Apr. 1989)

    When costs are a factor in any determination of a contract price 
adjustment, such costs shall be in accordance with the contract cost 
principles and procedures in Part 31 of the Federal Acquisition 
Regulation (48 CFR Part 31) in effect on the date of this contract.

(End of clause)


552.243-71  Equitable Adjustments.

    As prescribed in 543.205(a)(2), insert the following clause:

Equitable Adjustments (Apr 1984)

    (a) The provisions of the ``Changes'' clause prescribed by FAR 
52.243-4 are supplemented as follows:
    (1) Upon written request, the Contractor shall submit a 
proposal, in accordance with the requirements and limitations set 
forth in the ``Equitable Adjustments'' clause, for work involving 
contemplated changes covered by the request. The proposal shall be 
submitted within the time limit indicated in the request or any 
extension of such time limit as may be subsequently granted. The 
Contractor's written statement of the monetary extent of a claim for 
equitable adjustment shall be submitted in the following form:
    (i) Proposals totaling $5,000 or less shall be submitted in the 
form of a lump sum proposal with supporting information to

[[Page 37254]]

clearly relate elements of cost with specific items of work involved 
to the satisfaction of the Contracting Officer, or his/her 
authorized representative.
    (ii) For proposals in excess of $5,000, the claim for equitable 
adjustment shall be submitted in the form of a lump sum proposal 
supported with an itemized breakdown of all increases and decreases 
in the contract in at least the following detail:

Direct Costs

Material quantities by trades and unit costs

(Manufacturing burden associated with material fabrication performed 
will be considered to be part of the material costs of the 
fabricated item delivered to the job site)

Labor breakdown by trades and unit costs

(Identified with specific item of material to be placed or operation 
to be performed)

Construction equipment exclusively necessary for the change
Costs of preparation and/or revision to shop drawings resulting from 
the change
Workers' Compensation and Public Liability Insurance
Employment taxes under FICA and FUTA
Bond Costs--when size of change warrants revision

Overhead, Profit and Commission

    (2) The allowable overhead shall be determined in accordance 
with the contract cost principles and procedures in Part 31 of the 
Federal Acquisition Regulation (48 CFR Part 31) in effect on the 
date of this contract. The percentages for profit and commission 
shall be negotiated and may vary according to the nature, extent and 
complexity of the work involved, but in no case shall exceed the 
following unless the Contractor demonstrates entitlement to a higher 
percentage:

----------------------------------------------------------------------------------------------------------------
                                                                                      Profit        Commission
                                                        Overhead                     (percent)       (percent)
----------------------------------------------------------------------------------------------------------------
To Contractor on work performed by     .........................................  ..............              10
 other than his own forces.
To first tier subcontractor on work    .........................................  ..............              10
 performed by his subcontractors.
To Contractor and/or the               To be Negotiated.........................              10  ..............
 subcontractors for that portion of
 the work performed with their
 respective forces.
----------------------------------------------------------------------------------------------------------------

    Not more than four percentages will be allowed regardless of the 
number of tier subcontractors. The Contractor shall not be allowed a 
commission on the commission received by a first tier subcontractor. 
Equitable adjustments for deleted work shall include credits for 
overhead, profit and commission. On proposals covering both 
increases and decreases in the amount of the contract, the 
application of overhead and profit shall be on the net change in 
direct costs for the Contractor or subcontractor performing the 
work.
    (3) The Contractor shall submit with the proposal his request 
for time extension (if any), and shall include sufficient 
information and dates to demonstrate whether and to what extent the 
change will delay the contract in its entirety.
    (4) In considering a proposal, the Government shall make check 
estimates in detail, utilizing unit prices where specified or agreed 
upon, with a view to arriving at an equitable adjustment.
    (5) After receipt of a proposal the Contracting Officer shall 
act thereon, within 30 days; provided however, that when the 
necessity to proceed with a change does not allow time properly to 
check a proposal or in the event of failure to reach an agreement on 
a proposal, the Government may order the Contractor to proceed on 
the basis of price to be determined at the earliest practicable 
date. Such price shall not be more than the increase or less than 
the decrease proposed.
    (6) If a mutually acceptable agreement cannot be reached, the 
Contracting Officer may determine the price unilaterally.
    (b) The provisions of the ``Differing Site Conditions'' clause 
prescribed by FAR 52.236-2 are supplemented as follows: The 
Contractor shall submit all claims for equitable adjustment in 
accordance with, and subject to the requirements and limitations set 
out in paragraph (a) of this ``Equitable Adjustments'' clause.

(End of clause)


552.243-72  Modifications (Multiple Award Schedule).

    As prescribed in 543.205(b), insert the following clause:

Modifications (Multiple Award Schedule (Sep 1999)

    (a) General. The Contractor may request a contract modification 
by submitting a request to the Contracting Officer for approval, 
except as noted in paragraph (d) of this clause. At a minimum, every 
request shall describe the proposed change(s) and provide the 
rationale for the requested change(s).
    (b) Types of Modifications.
    (1) Additional items/additional SINs. When requesting additions, 
the following information must be submitted:
    (i) Information requested in paragraphs (1) and (2) of the 
Commercial Sales Practice Format to add SINs.
    (ii) Discount information for the new item(s) or new SIN(s). 
Specifically, submit the information requested in paragraphs 3 
through 5 of the Commercial Sales Practice Format. This information 
is the same as the initial award, a statement to that effect may be 
submitted instead.
    (iii) Information about the new item(s) or the item(s) under the 
new SIN(s) as described in 552.212-70, Preparation of Offer 
(Multiple Award Schedule) is required.
    (iv) Delivery time(s) for the new item(s) or the items under the 
new SIN(s) must be submitted in accordance with 552.211-78, 
Commercial Delivery Schedule (Multiple Award Schedule).
    (v) Production point(s) for the new item(s) or the item(s) under 
the new SIN(s) must be submitted if required by 52.215-6, Place of 
Performance.
    (vi) Hazardous material information (if applicable) must be 
submitted as required by 52.223-3 (ALT I), Hazardous Material 
Identification and Material Safety Data.
    (vii) Any information requested by 52.212-3(f), Offerors 
Representations and Certifications--Commercial Items, that may be 
necessary to assure compliance with 552.225-9, Buy American Act--
Trade Agreement--Balance of Payments Program.
    (2) Deletions. The Contractor shall provide an explanation for 
the deletion. The Government reserves the right to reject any 
subsequent offer of the same item or a substantially equal item at a 
higher price during the same contract period, if the contracting 
officer finds the higher price to be unreasonable when compared with 
the deleted item.
    (3) Price Reduction. The Contractor shall indicate whether the 
price reduction falls under item (i), (ii), or (iii) of paragraph 
(c)(1) of the Price Reductions clause at 552.238-75. If the price 
reduction falls under item (i), the Contractor shall submit a copy 
of the dated commercial price list. If the price reduction falls 
under item (ii) or (iii), the Contractor shall submit a copy of the 
applicable price list(s), bulletins or letters or customer 
agreements which outline the effective date, duration, terms and 
conditions of the price reduction.
    (c) Effective Dates. The effective date of any modification is 
the date specified in the modification, except as otherwise provided 
in the Price Reductions clause at 552.238-75.
    (d) Electronic File Updates. The Contractor shall update 
electronic file submissions to reflect all modifications. For 
additional items or SINs, the Contractor shall obtain the 
contracting officer's approval before transmitting changes. Contract 
modifications will not be made effective until the Government 
receives the electronic file updates. The Contractor may transmit 
price reductions, item deletions, and corrections without prior 
approval. However, the Contractor shall notify the contracting 
officer as set forth in the Price Reductions clause at 552.238-75.
    (e) Amendments to Paper Supply Schedule Price Lists.
    (1) The Contractor must provide supplements to its paper price 
lists, reflecting the most current changes. The Contractor may 
either:
    (i) Distribute a supplemental paper Federal Supply Schedule 
Price List within 15 workdays after the effective date of each 
modification.

[[Page 37255]]

    (ii) Distribute quarterly cumulative supplements. The period 
covered by a cumulative supplement is at the discretion of the 
Contractor, but may not exceed three calendar months from the 
effective date of the earliest modification. For example, if the 
first modification occurs in February, the quarterly supplement must 
cover February--April, and every 3 month period after. The 
Contractor must distribute each quarterly cumulative supplement 
within 15 workdays from the last day of the calendar quarter.
    (2) At a minimum, the Contractor shall distribute each 
supplement to those ordering activities that previously received the 
basic document. In addition, the Contractor shall submit two copies 
of each supplement to the contracting officer, and one copy to the 
FSS Schedule Information Center.

(End of clause)
    Alternate I (Sep 1999). As prescribed in 543.205(b), substitute 
the following paragraph (d) for paragraph (d) of the basic clause:
    (d) Electronic File Updates. The Contractor shall update 
electronic file submissions to reflect all modifications. For 
additional items or SINs, the Contractor shall obtain the 
contracting officer's approval before transmitting changes. Contract 
modifications will not be made effective until the Government 
receives the electronic file updates. The Contractor may transmit 
price reductions and corrections without prior approval. However, 
the Contractor shall notify the contracting officer as set forth in 
the Price Reductions clause at 552.238-75.


552.246-17  Warranty of Supplies of a Noncomplex Nature

    As prescribed in 546.710(a), insert the following clause:

Warranty of Supplies of a Noncomplex Nature (Dec 1990) (Deviation FAR 
52.246-17)

    (a) Definitions. ``Acceptance,'' as used in this clause, means 
the act of an authorized representative of the Government by which 
the Government assumes for itself, or as an agent of another, 
ownership of existing supplies, or approves specific services as 
partial or complete performance of the contract.
    ``Correction,'' as used in this clause, means the elimination of 
a defect.
    ``Supplies,'' as used in this clause, means the end item 
furnished by the Contractor and related services required under the 
contract. The word does not include ``data.''
    (b) Contractor's obligations.
    (1) Notwithstanding inspection and acceptance by the Government 
of supplies furnished under this contract, or any condition of this 
contract concerning the conclusiveness thereof, the Contractor 
warrants that for ________*________
    (i) All supplies furnished under this contract will be free from 
defects in material or workmanship and will conform with the 
requirements of this contract; and
    (ii) The preservation, packaging, packing, and marking, and the 
preparation for, and method of, shipment of such applies will 
conform with the requirements of this contract.
    (2) When return, correction, or replacement is required, the 
Contractor shall be responsible for all costs attendant to the 
return, correction or replacement of the nonconforming supplies. Any 
removal in connection with the above shall be done by the Contractor 
at its expense. However, the Contractor's liability for the 
transportation charges shall not exceed an amount equal to the cost 
of transportation by the usual commercial method of shipment between 
the place of delivery specified in the contract and the Contractor's 
plant, and return.
    (3) Any supplies or parts thereof, corrected or furnished in 
replacement under this clause, shall also be subject to the terms of 
this clause to the same extent as supplies initially delivered. The 
warranty, with respect to supplies or parts thereof, shall be equal 
in duration to that in paragraph (b)(1) of this clause and shall run 
from the date of delivery of the corrected or replaced supplies.
    (4) All implied warranties of merchantability and ``fitness for 
a particular purpose'' are excluded from any obligation contained in 
this contract.
    (c) Remedies available to the Government.
    (1) The Contracting Officer shall give written notice to the 
Contractor of any breach of warranties in paragraph (b)(1) of this 
clause with ________*________. This notice shall contain information 
concerning the deficiencies found, the location of the nonconforming 
supplies, and the quantity involved.
    (2) Within a reasonable time after the notice, the Contracting 
Officer may either--
    (i) Require, by written notice, the prompt correction or 
replacement of any supplies or parts thereof (including 
preservation, packaging, packing, and marking) that do not conform 
with the requirements of this contract within the meaning of 
paragraph (b)(1) of this clause; or
    (ii) Retain such supplies and reduce the contract price by an 
amount equitable under the circumstances. When the nature of the 
defect in the nonconforming item is such that the defect affects an 
entire batch or lot of material, then the equitable price adjustment 
shall apply to the entire batch or lot of material from which the 
nonconforming item was taken.
    (3)(i) If the contract provides for inspection of supplies by 
sampling procedures, conformance of supplies or components subject 
to warranty action shall be determined by the applicable sampling 
procedures in the contract. The Contracting Officer--
    (A) May, for sampling purposes, group any supplies delivered 
under this contract;
    (B) Shall require the size of the sample to be that required by 
sampling procedures specified in the contract for the quantity of 
supplies on which warranty action is proposed;
    (C) May project warranty sampling results over supplies in the 
same shipment or other supplies contained in other shipments even 
though all of such supplies are not present at the point of 
reinspection; provided, that the supplies remaining are reasonably 
representative of the quantity on which warranty action is proposed; 
and
    (D) Need not use the same lot size as on original inspection or 
reconstitute the original inspection lots.
    (ii) Within a reasonable time after notice of any breach of the 
warranties specified in paragraph (b)(1) of this clause, the 
Contracting Officer may exercise one or more of the following 
options:
    (A) Require an equitable adjustment in the contract price for 
any group of supplies.
    (B) Screen the supplies grouped for warranty action under this 
clause at the Contractor's expense and return all nonconforming 
supplies to the Contractor for correction or replacement.
    (C) Require the Contractor to screen the supplies at locations 
designated by the Government within the continental United States 
and to correct or replace all nonconforming supplies.
    (D) Return the supplies grouped for warranty action under this 
clause to the Contractor (irrespective of the f.o.b. point or the 
point of acceptance) for screening and correction or replacement. 
All costs incurred by the Government in returning the nonconforming 
supplies, including costs to the freight carrier resulting from the 
Contractor's refusal to accept their return, shall be for the 
Contractor's account.
    (4)(i) The Contracting Officer may, by contract or otherwise, 
correct or replace the nonconforming supplies with similar supplies 
from another source and charge to the Contractor the cost occasioned 
to the Government thereby if the Contractor--
    (A) Fails to make redelivery of the corrected or replaced 
supplies within the time established for their return; or
    (B) Fails either to accept return of the nonconforming supplies 
or fails to make progress after their return to correct or replace 
them so as to endanger performance of the delivery schedule, and in 
either of these circumstances does not cure such failure within a 
period of 10 days (or such longer period as the Contracting Officer 
may authorize in writing) after receipt of notice from the 
Contracting Officer specifying such failure.
    (ii) Instead of correction or replacement by the Government, the 
Contracting Officer may require an equitable adjustment of the 
contract price for all nonconforming supplies, including batch or 
lot materials which either have been consumed or other disposition 
has been made. In addition, if the Contractor fails to furnish 
timely disposition instructions, the Contracting Officer may return 
the supplies for screening and correction or replacement under 
subparagraph (c)(3)(ii)(D) above; store the nonconforming supplies 
for the Contractor's account; sell the nonconforming supplies to the 
highest bidder on the open market and apply the proceeds against the 
accumulated storage and other costs, including the cost of the sale; 
or otherwise dispose of the nonconforming supplies for the 
Contractor's account in a reasonable manner. The Government is 
entitled to reimbursement from the Contractor, or from the proceeds 
of such disposal, for the reasonable expenses of the care and 
disposition of the

[[Page 37256]]

nonconforming supplies, as well as for excess costs incurred or to 
be incurred.
    (5) The rights and remedies of the Government provided in this 
clause are in addition to and do not limit any rights afforded to 
the Government by any other clause of this contract.
    (6) Unless otherwise provided, this warranty is applicable both 
within and outside the continental limits of the United States.
    (7) In addition to other marking requirements of this contract, 
the Contractor shall stamp or mark the supplies delivered or 
otherwise furnish notice with the supplies of the existence of the 
warranty. The marking should briefly include (i) a statement that 
the warranty exists, (ii) the substance of the warranty, (iii) its 
duration, and (iv) whom to notify if the supplies are found to be 
defective.

(End of clause)
    * State the specific period of time after delivery or the 
specified event whose occurrence will terminate the warranty period; 
e.g., the number of miles or hours of use, or combination of any 
applicable event or periods of time.
    ** Insert specific period of time; e.g., ``45 days from the last 
delivery under this contract,'' or ``45 days after discovery of the 
defect.'' The number of days specified shall be no less than 30.
    Alternate I (DEC 1990). As prescribed in 546.710(a)(1), 
substitute the following for paragraph (b)(1) of the basic clause 
and delete paragraph (b)(4) of the basic clause.
    (1) Notwithstanding inspection and acceptance by the Government 
of supplies furnished under this contract, or any condition of this 
contract concerning the conclusiveness thereof, the Contractor 
warrants that for ________*________ all supplies furnished--
    (i) Are of a quality to pass without objection in the trade 
under the contract description;
    (ii) Are fit for the ordinary purposes for which the supplies 
are used;
    (iii) Are within the variations permitted by the contract, and 
are of an even kind, quality, and quantity within each unit and 
among all units;
    (iv) Are adequately contained, packaged, and marked as the 
contract may require; and
    (v) Conform to the promises or affirmations of fact made on the 
container.
    Alternate II (DEC 1990). As prescribed in 546.710(a)(2), 
substitute the following paragraph for paragraph (b)(1) of the basic 
clause:
    (1) Notwithstanding inspection and acceptance by the Government 
of supplies furnished under this contract, or any condition of this 
contract concerning the conclusiveness thereof, the Contractor 
warrants that for ________*________ all supplies furnished--
    (i) Conform to the specifications except that in the case of 
solvent systems, the viscosity may exceed the specified maximum by 
10 Kreb Units, unless otherwise specified elsewhere in this 
contract; and
    (ii) Are suitable for their intended purpose as stated in this 
contact.
    Alternate III (DEC 1990). As prescribed in 546.710(a)(3), 
substitute the following for paragraph (b)(1) of the basic clause, 
redesignate paragraph (c) of the basic clause as paragraph (d), and 
add the following as paragraph (c) in the basic clause:
    (1) Notwithstanding inspection and acceptance by the Government 
of supplies furnished under this contract, or any condition of this 
contract concerning the conclusiveness thereof, the Contractor 
warrants that for ________*________, beginning with the first day of 
the first full month following the month of manufacture marked on 
the container, all supplies furnished retain their original 
characteristics to the extent that the supplies remain suitable for 
the intended use as stated in this contract (i) under actual 
application conditions or (ii) when tested in accordance with 
requirements stated elsewhere in this contract.
    (c) Government surveillance and testing.
    (1) During this period, surveillance will be maintained on 
supplies warehoused in Government facilities; and the supplies will 
be tested periodically to determine their suitability for intended 
use. Sampling for surveillance testing will be in accordance with 
Military Standard No. 105, and such testing will be made after 
NORMAL MIXING, STIRRING, OR SHAKING, in accordance with directions 
either furnished with the supplies or as shown in the applicable 
specifications.
    (2) Surveillance testing will be based on storage stability 
requirements set forth in the contract specification, or purchase 
description on the basis of salient characteristics (e.g., viscosity 
or sag flow, curing time, strip adhesion or tensile shear, etc.) 
established by GSA as appropriate to determine suitability for 
intended use. In the case of brand name items not covered by 
detailed purchase descriptions, surveillance testing may be based on 
salient characteristics included in the manufacturer's data sheets. 
If storage stability requirements showing allowable variations are 
not included in applicable specifications or elsewhere in the 
contract, material will be considered suitable for intended use if 
the salient characteristics vary not more than 20 percent from the 
originally specified values (i.e., those applicable to acceptance 
testing of the supplies) for noncritical end-use items, and not more 
then 10 percent for critical end-use items.


552.246-7-0  Source Inspection by Quality Approved Manufacturer.

    As prescribed in 546.302-70, insert the following clause:

Source Inspection by Quality Approved Manufacturer (Sep 1999)

    (a) Inspection system and inspection facilities.
    (1) The inspection system maintained by the Contractor under the 
Inspection of Supplies--Fixed Price clause (FAR 52.246-2) of this 
contract shall be maintained throughout the contract period and 
shall comply with all requirements of editions in effect on the date 
of the solicitation of either Federal Standard 368 or the 
International Organization for Standardization (ISO) Standard 9001 
(ANSI/ASQC Q 91) (Quality Systems--Model for Quality Assurance in 
Design/Development, Production, Installation and Servicing), or ISO 
Standard 9002 (ANSI/ASQC Q 92) (Quality Systems--Model for Quality 
Assurance in Production and Installation). The ISO 9000 family of 
standards is a set of worldwide standards used to document, 
implement and demonstrate quality assurance systems. When using the 
ISO option the Contractor's quality system must be registered by a 
third party registrar accredited by either the Registrar 
Accreditation Board (RAB) or an organization recognized as 
equivalent. A written description of the inspection system shall be 
made available to the Government before contract award. The 
Contractor shall immediately notify the Contracting Officer and the 
designated GSA quality assurance office of any changes made in the 
inspection system during the contract period. As used herein, the 
term ``inspection system'' means the Contractor's own facility or 
any other facility acceptable to the Government that will be used to 
perform inspections or tests of materials and components before 
incorporation into end articles and for inspection of such end 
articles before shipment. When the manufacturing plant is located 
outside of the United States, the Contractor shall arrange delivery 
of the items from a plant or warehouse located in the United States 
(including Puerto Rico and the Virgin Islands) equipped to perform 
all inspections and tests required by the contract or specifications 
to evidence conformance therewith, or shall arrange with a testing 
laboratory or other facility in the United States, acceptable to the 
Government, to perform the required inspections and tests.
    (2) In addition to the requirements in Federal Standard 368, ISO 
9001 or ISO 9002 records shall include the date when inspection and 
testing were performed. These records shall be available for (i) 3 
years after final payment; or (ii) 4 years from the end of the 
Contractor's fiscal year in which the record was created, whichever 
period expires first.
    (3) Offerors are required to specify, in the space provided 
elsewhere in this solicitation, the name and address of each 
manufacturing plant or other facility where supplies will be 
available for inspection, indicating the item number(s) to which 
each applies.
    (4) Within 10 calendar days after receipt of the written notice 
of award, the Contractor shall provide the Administrative 
Contracting Officer with the name of the individual and an alternate 
that will be responsible for inspecting each shipment under this 
contract.
    (b) Inspection and receiving reports.
    (1) For each shipment released, one of the officials named by 
the Contractor under paragraph (a)(4) above shall sign a Quality 
Approved Manufacturer Certificate certifying that supplies have been 
inspected and found to comply with contract requirements. The 
certification shall read as follows:
    ``I certify that all items in this shipment have been listed 
herein, and have been inspected and found to comply with all 
requirements of the contract.''

[[Page 37257]]

Signature of Certifying Official

    (2) For shipments made to military facilities, the Contractor 
shall prepare and distribute the DD Form 250, Material Inspection 
and Receiving Report, or computer formatted equivalent of the form 
not later than the close of business the workday following shipment. 
The certification above shall be placed in block 16 on this form. 
The Contractor will be provided a supply of the DD Form 250 with 
complete instructions for preparation and distribution.
    (3) For shipments made to civilian facilities only, the 
Contractor shall prepare and distribute not later than the close of 
business the workday following shipment a certification of 
inspection and conformance for the identified items, in accordance 
with instructions furnished at the time of award. The Contractor may 
furnish the requisite information on the DD Form 250 or computer 
formatted equivalent, company letterhead, or invoice document.
    (c) Inspection by Government personnel.
    (1) Although the Government will normally rely upon the 
Contractor's certification as to the quality of supplies shipped, it 
reserves the right under the Inspection of Supplies--Fixed Price 
clause to inspect and test all supplies called for by this contract, 
before acceptance, at all times and places, including the point of 
manufacture. When the Government notifies the Contractor of its 
intent to inspect supplies before shipment, the Contractor shall 
notify or arrange for subcontractors to notify the designated GSA 
quality assurance office 7 workdays before the date when supplies 
will be ready for inspection. Shipment shall not be made until 
inspection by the Government is completed and shipment is authorized 
by the Government.
    (2) Government inspection responsibility will be assigned the 
GSA quality assurance office which has jurisdiction over the State 
in which the Contractor's or subcontractor's plant or other 
designated point for inspection is located.
    (3) During the contract period, a Government representative may 
periodically select samples of supplies produced under this contract 
for verification inspection and testing. Samples sent to a 
Government testing facility will be disposed of as follows: Samples 
from an accepted lot, not damaged in the testing process, will be 
returned promptly to the Contractor after completion of tests. 
Samples damages in the testing process will be disposed of as 
requested by the Contractor. Samples from a rejected lot will be 
returned to the Contractor or disposed of in a time and manner 
agreeable to both the Contractor and the Government.
    (d) Quality deficiencies.
    (1) Notwithstanding any other clause of this contract concerning 
the conclusiveness of acceptance by the Government, any supplies or 
production lots shipped under this contract found to be defective in 
material or workmanship, or otherwise not in conformity with the 
requirements of this contract within a period of ________*________ 
months after acceptance shall, at the Government's option, be 
replaced, repaired or otherwise corrected by the Contractor at no 
cost to the Government within 30 calendar days (or such longer 
period as the Government may authorize in writing) after receipt of 
notice to replace or correct. The Contractor shall remove, at its 
expense, supplies rejected or required to be replaced, repaired or 
corrected. When the nature of the defect affects an entire batch or 
lot of supplies, and the Contracting Officer determines that 
correction can best be accomplished by retaining the nonconforming 
supplies and reducing the contract price by an amount equitable 
under the circumstances, then the equitable price adjustment shall 
apply to the entire batch or lot of supplies from which the 
nonconforming item was taken.
    (2) If supplies in process, shipped, or awaiting shipment to 
fill Government orders are found not to comply with contract 
requirements, or if deficiencies in either plant quality or process 
controls are found, the Contractor may be issued a Quality 
Deficiency Notice (QDN). Upon receipt of a QDN, the Contractor shall 
take immediate corrective action and shall suspend shipment of the 
supplies covered by the QDN until such time as corrective action has 
been completed. The Contractor shall notify the GSA quality 
assurance office, within 5 workdays, of corrective action taken or 
to be taken to permit on site verification by a Government 
representative. Shipments of nonconforming supplies will be returned 
at the Contractor's expense and may constitute cause for 
termination. Delays due to the insurance of a QDN do not constitute 
excusable delay under the Default clause. Failure to complete 
corrective action in a timely manner may result in termination of 
this contract.
    (3) This contract may be terminated for default if subsequent 
Government inspection discloses that plant quality or process 
controls are not being maintained, supplies which do not meet the 
requirements of the specification are being shipped, or there is 
failure to comply with any other requirement of this clause.
    (e) Additional cost for inspection and testing. The Contractor 
will be charged for any additional cost of inspection/testing or 
reinspecting/retesting supplies for the reasons stated in paragraph 
(e) of FAR 52.246-2, Inspection of Supplies--Fixed Price. When 
inspection or testing is performed by or under the direction of GSA, 
charges will be at the rate of $________*________ per man-hour or 
fraction thereof if the inspection is at a GSA distribution center; 
$________*________ per man-hour or fraction thereof, plus travel 
costs incurred, if the inspection is at any other location; and 
$________*________ per man-hour or fraction thereof for laboratory 
testing, except that when a testing facility other than a GSA 
laboratory performs all or part of the required tests, the 
Contractor shall be assessed the actual cost incurred by the 
Government as a result of testing at such facility. When inspection 
is performed by or under the direction of any agency other than GSA, 
the charges indicated above may be used, or the agency may assess 
the actual cost of performing the inspection and testing.
    (F) Responsibility for rejected supplies. When the Contractor 
fails to remove or provide instructions for the removal of rejected 
supplies under paragraph (d) above, pursuant to the Contracting 
Officer's instructions, the Contractor shall be liable for all costs 
incurred by the Government in taking such measures as are expedient 
to avoid unnecessary loss to the Contractor. In addition to the 
remedies provided in FAR 52.246-2, supplies may be--
    (1) Stored for the Contractor's account;
    (2) Reshipped to the Contractor at its expense (any additional 
expense incurred by the Government or the freight carrier caused by 
the refusal of the Contractor to accept their return also shall be 
for the Contractor's account); or
    (3) Sold to the highest bidder on the open market and the 
proceeds applied against the accumulated storage and other costs, 
including the cost of the sale.
    (g) Subcontracting requirements. The Contractor shall insert in 
any subcontracts the inspection or testing provisions set forth in 
paragraphs (a) through (d) of this clause and the Inspection of 
Supplies--Fixed Price clause of this contract. The Contractor shall 
be responsible for compliance by any subcontractor with the 
provisions set forth in paragraphs (a) through (d) of this clause 
and the Inspection of Supplies--Fixed Price clause.

(End of clause)
    *Normally insert 12 months as the period during which defective 
or otherwise nonconforming supplies must be replaced. However, when 
the supplies being bought have a shelf life of less than 1 year, you 
should use the shelf-life period, or in the instance where you 
reasonably expect a longer period to be available, you should use 
the longer period.
    **The rates to be inserted are established by the Commissioner 
of the Federal Supply Service or a designee.


552.246-71  Source Inspection by Government.

    As prescribed in 546.302-71, insert the following clause:

Souce Inspection by Government (SEP 1999)

    (a) Inspection by Government personnel.
    (1) Supplies to be furnished under this contract will be 
inspected at source by the Government before shipment from the 
manufacturing plant or other facility designated by the Contractor, 
unless the Contractor is otherwise notified in writing by the 
Contracting Officer or a designated representative. Notwithstanding 
the foregoing, the Government may perform any or all tests contained 
in the contract specifications at a Government facility without 
prior written notice by the Contracting Officer before release of 
the supplies for shipment. Samples sent to a Government resting 
facility will be disposed of as follows: Samples from an accepted 
lot, not damaged in the testing process, will be returned promptly 
to the Contractor after completion of tests. Samples damaged in the 
testing process will be disposed of as requested by the Contractor. 
Samples from a rejected lot will be returned to the Contractor or 
disposed of in a time and manner agreeable to both the Contractor 
and the Government.

[[Page 37258]]

    (2) Government inspection responsibility will be assigned to the 
GSA quality assurance office which has jurisdiction over the State 
in which the Contractor's subcontractor's plant or other designated 
point for inspection is located. The Contractor shall notify or 
arrange for subcontractors to notify the designated GSA quality 
assurance office 7 workdays before the date when supplies will be 
ready for inspection. Shipment shall not be made until after 
inspection by the Government is completed and shipment is authorized 
by Government.
    (b) Inspection and receiving reports. For each shipment, the 
Contractor shall be responsible for preparation and distribution of 
inspection documents as follows: (1) DD Form 250, Material 
Inspection and Receiving Report, or computer formatted equivalent 
for deliveries to military agencies; or (2) GSA Form 308, Notice of 
Inspection for deliveries to GSA or other civilian agencies. When 
required, the Contractor will be furnished a supply of GSA Form 308 
and/or DD Form 250, and complete instructions for their reparation 
and distribution.
    (c) Inspection facilities.
    (1) The inspection system required to be maintained by the 
Contractor in accordance with FAR 52.246-2, Inspection of Supplies--
Fixed Price, may be the Contractor's own facilities or any other 
facilities acceptable to the Government. The facilities shall be 
utilized to perform all inspections and tests of materials and 
components before incorporation into end articles, and for the 
inspection of such end articles before shipment. The Government 
reserves the right to evaluate the acceptability and effectiveness 
of the Contractor's inspection system before award and periodically 
during the contract period.
    (2) Offerors are required to specify, in the spaces provided 
elsewhere in the solicitation, the name and address of each 
manufacturing plant or other facility where supplies will be 
available for inspection, indicating the item number(s) to which 
each applies.
    (3) The Contractor shall deliver the items specified in this 
contract from a plant or warehouse located within the United States 
(including Puerto Rico and the Virgin Islands) that is equipped to 
perform all inspections and tests required by this contract or 
specifications to evidence conformance therewith, or shall arrange 
with a testing laboratory or other facility in the United States, 
acceptable to the Government, to perform the required inspections 
and tests.
    (d) Availability of records.
    (1) In addition to any other requirement of this contract, the 
Contractor shall maintain records showing the following information 
for each order received under the contract: (i) order number; (ii) 
date order received by the Contractor; (iii) quantity ordered; (iv) 
date scheduled into production; (v) batch or lot number, if 
applicable; (vi) date inspected and/or tested; (vii) date available 
for shipment; (viii) date shipped or date service completed; and 
(ix) National Stock Number (NSN), or if none is provided in the 
contract, the applicable item number or other contractual 
identification.
    (2) These records should be maintained at the point of source 
inspection and shall be available to the Contracting Officer, or an 
authorized representative, for (i) 3 years after final payment; or 
(ii) 4 years from the end of the Contractor's fiscal year in which 
the record was created, whichever period expires first.
    (e) Additional cost for inspection and testing. The Contractor 
will be charged for any additional cost for inspecting/testing or 
reinspection/retesting supplies for the reasons stated in paragraph 
(e) of FAR 52.246-2, Inspection of Supplies--Fixed Price. When 
inspection or testing is performed by or under the direction of GSA, 
charges will be at the rate of $________*________ per man-hour or 
fraction thereof if the inspection is at a GSA distribution center; 
$________*________ per man-hour or fraction thereof, plus travel 
costs incurred, if the inspection is at any other location; and 
$________*________ per man-hour or fraction thereof for laboratory 
testing, except that when a testing facility other than a GSA 
laboratory performs all or part of the required tests, the 
Contractor shall be assessed the actual cost incurred by the 
Government as a result of testing at such facility. When inspection 
is performed by or under the direction of any agency other than GSA, 
the charges indicated above may be used, or the agency may assess 
the actual cost of performing the inspection and testing.
    (f) Responsibility for rejected supplies. When the Contractor 
fails to remove or provide instructions for the removal of rejected 
supplies under FAR 52.246-2(h) pursuant to the Contracting Officer's 
instructions, the Contractor shall be liable for all costs incurred 
by the Government in taking such measures as are expedient to avoid 
unnecessary loss to the Contractor. In addition to the remedies 
provided in FAR 52.246-2, supplies may be--
    (1) Stored for the Contractor's account;
    (2) Reshipped to the Contractor at its expense (any additional 
expense incurred by the Government or the freight carrier caused by 
the refusal of the Contractor to accept their return also shall be 
for the Contractor's account); or
    (3) Sold to the highest bidder on the open market and the 
proceeds applied against the accumulated storage and other costs, 
including the cost of the sale.

(End of clause)
    *The rates to be inserted are established by the Commissioner of 
the Federal Supply Service or a designee.


552.246-72  Final Inspection and Tests.

    As prescribed in 546.312, insert the following clause:

Final Inspection and Tests (Sep 1999)

    The Contractor shall give written notice to the Contracting 
Officer at least 10 calendar days before the date the work will be 
completed and ready for final inspection and tests. Final inspection 
and tests will begin within 10 calendar days after the date 
specified in the Contractor's notice unless the Contracting Officer 
determines that the work is not ready for final inspection and so 
informs the Contractor.

(End of clause)


552.246-73  Warranty--Multiple Award Schedule.

    As prescribed in 546.710(b), insert the following clause:

Warranty--Multiple Award Schedule (Feb 1996)

    Unless specified otherwise in this contract, the Contractor's 
standard commercial warranty as stated in the Contractor's 
commercial price list will apply to this contract.

(End of clause)


552.246-74  Warranty--International Multiple Award Schedule.

    As prescribed in 546.710(c), insert the following clause:

Warranty--International Multiple Award Schedule (May 1989)

    Unless specified otherwise in this contract, the Contractor's 
standard commercial warranty as stated in the commercial price list 
applies to this contract, except: (a) the Contractor shall provide, 
at a minimum, a warranty on all non-consumable parts for a period of 
90 days from the date that the Government accepts the product; (b) 
parts and labor required under the warranty provisions shall be 
supplied free of charge; (c) transportation costs of returning the 
products to and from the repair facility, or the costs involved with 
Contractor personnel traveling to the Government facility for the 
purpose of repairing the product onsite shall be borne by the 
Contractor during the 90-day warranty period.

(End of clause)


552.246-75  Guarantees.

    As prescribed in 546.710(d), insert the following clause:

Guarantees (May 1989)

    (a) Unless otherwise provided in the specifications, the 
Contractor guarantees all work to be in accordance with contract 
requirements and free from defective or inferior materials, 
equipment, and workmanship for 1 year after the date of final 
acceptance or the date the equipment or work was placed in use by 
the Government, whichever occurs first.
    (b)(1) If, within any guarantee period, the Contracting Officer 
finds that guaranteed work requires repair or change because of 
defective or inferior materials, equipment, or workmanship or is not 
in accordance with contract requirements, the Contracting Officer 
shall notify the Contractor in writing. The Contractor shall 
promptly, and without additional expense to the Government, correct:
    (i) All guaranteed work;
    (ii) All damage to equipment, the site, the building or its 
contents resulting from the unsatisfactory guaranteed work; and
    (iii) Any work, materials, and equipment that are disturbed in 
fulfilling the guarantee, including any disturbed work, materials, 
and equipment that may have been guaranteed under another contract.
    (2) If the Contractor fails to proceed promptly in accordance 
with the guarantee,

[[Page 37259]]

the Government may have such work performed at the expense of the 
Contractor.
    (c) Any special guarantees that may be required under the 
contract will be subject to paragraphs (a) and (b), insofar as they 
do not conflict with special guarantees.
    (d) The Contractor shall furnish to the Government: (1) Each 
transferable guarantee or warranty of equipment, materials, or 
installation furnished by any manufacturer, supplier, or installer 
in the ordinary course of business; (2) All information required to 
make such guarantee or warranty legally binding and effective; and 
(3) The information and the guarantee or warranty in sufficient time 
to permit the Government to meet any time limit specified in the 
guarantee or warranty or, if no time limit is specified, prior to 
completion and acceptance of all work under this contract.

(End of clause)


552.246-76  Warranty of pesticides.

    As prescribed in 546.710(e), insert the following clause:

Warranty of Pesticides (May 1989)

    (a) Notwithstanding acceptance of pesticides by the Government, 
the Contractor warrants that for 1 year after the date of shipment, 
all pesticides furnished under this contract shall meet the 
requirements of Pub. L. 92-516, as amended, and shall be registered 
with the Environmental Protection Agency (EPA).
    (b) If EPA takes action to stop sale, stop use, remove, seize, 
or cancel registration of a pesticide within 1 year after date of 
shipment, the Contractor shall immediately notify the Contracting 
Officer. The notification will include: (1) contract number; (2) 
identification of the pesticide; (3) reason for the EPA action 
against the pesticide; and (4) list of Government agencies and 
addresses to which it was delivered.

(End of clause)


552.247-70  Placarding Railcar Shipments.

    As prescribed in 547.305(a), insert the following clause:

Placarding Railcar Shipments (May 1989)

    When a railcar is loaded in such a manner that it can be or 
should be unloaded from only one side, the Contractor shall place on 
the appropriate railcar door a placard reading ``UNLOAD FROM THIS 
SIDE'' and on the opposite door a placard reading ``UNLOAD FROM 
OTHER SIDE.''

(End of clause)


552.247-71  Diversion of Shipment Under f.o.b. Destination Contracts.

    As prescribed in 547.305(b), insert the following clause:

Diversion of Shipment Under F.O.B. Destination Contracts (Sep 1999)

    (a) Notwithstanding paragraph (c) of the clause in this contract 
titled 52.212-4, Contract Terms and Conditions--Commercial Items, 
the Government has the unilateral right to make changes at any time 
within the general scope of this contract in either the:
    (1) Method of shipment or packing.
    (2) Place of delivery.
    (b) If any such change causes an increase or decrease in the 
cost of this contract, the Contracting Officer shall make an 
equitable adjustment in the contract price, the delivery schedule, 
or both. The Contractor must assert its right to an adjustment under 
this clause within 30 days from the date of receipt of a delivery 
order.
    (c) The Government shall make no adjustment when supplies are 
identically priced for delivery regionally or nationally and the 
place of delivery is changed within the area to which the identical 
price applies. In all other cases, adjustments for changes in 
transportation costs under this clause shall be determined as 
follows:
    (1) If the contractor ships by contract or common carrier, price 
adjustments shall be determined by comparing the cost of shipments 
to the new destination(s), as evidenced by copy of paid freight 
bills supplied by the Contractor with the invoice, to one of the 
following:
    (i) The cost of shipments to the standard contract destination, 
as evidenced by copy of appropriate paid freight bills supplied by 
the Contractor.
    (ii) If no shipments have been made to the standard contract 
destination, the cost as evidenced by the applicable rates of a 
common or contract carrier. If carrier rates are not publicly filed 
with a regulatory body (e.g., interstate shipments moving by rail 
piggyback service), the Contractor shall provide a copy of the 
contract, letter agreement, or other written communication from the 
carrier(s) quoting the rates/charges that would have applied for 
shipments to the standard contract destination.
    (2) If (i) shipments to the new destination are made by the 
Contractor's owned or leased trucks or (ii) shipments to the 
original destination were or would have been made by the 
Contractor's owned or leased trucks, the Government shall determine 
the adjustment by substituting a rate equal to 70 percent of the 
lowest applicable rate published in common carrier tariffs as of the 
date of shipment for the Contractor's actual rate or contemplated 
transportation costs.
    (d) If the copies of paid freight bills for a diverted shipment 
do not show, or make readily available, each of the following 
items,the Contractor shall supply a written statement showing the 
item(s):
    (1) Full name of each carrier in the routing.
    (2) Number of containers.
    (3) Gross shipping weight.
    (4) Actual date of shipping.
    (5) Freight description for the supplies as indicated in the 
``National Motor Freight Classification'' or the ``Uniform Freight 
Classification'' (Rail).

(End of clause)


552.249-70  Termination for Convenience of the Government (Fixed Price) 
(Short Form).

    As prescribed in 549.502(a) insert the following clause:

Termination for Convenience of the Government (Fixed-Price) (Short 
Form) (May 1988) (Deviation FAR 52.249-1 and 52.249-2)

    (a) If the Government terminates this contract for convenience, 
the rights of the Government and the Contractor shall be determined 
under paragraph (b) unless there is a termination liability 
schedule, in which case the rights of the parties shall be 
determined under paragraph (c).
    (b) The clause at [Contracting Officer inserts 52.249-1 or 
52.249-2, as applicable] of the FAR shall apply to the supply 
portion of the contract and the clauses at 52.249-4 of the FAR shall 
apply to the service portion of the contract.
    (c) If the Contractor specifies a schedule of termination 
liability charges that would be incurred by the Government if the 
Government terminates this lease contract without taking title to 
the equipment, the payment of such charges shall be the only 
responsibility of the Government to compensate the Contractor for 
such termination; except that, there shall be no termination 
liability for equipment installed after termination of this 
contract.

(End of clause)


552.249-71  Submission of Termination Liability Schedule.

    As prescribed in 549.502(b), insert the following clause:

Submission of Termination Liability Schedule (May 1989)

    (a) An offeror may submit, as part of its proposal, a 
termination liability schedule to be applied if any resultant 
contract is terminated by the Government for reasons other than 
default. The offeror shall provide and explain the amount and method 
of computation of the termination liability charge(s).
    (b) If submitted, the termination liability schedule will be 
incorporated into Part I, Section B of the contract document. If a 
termination liability schedule is not submitted and the Government 
terminates any resultant contract for its convenience, the rights of 
the parties shall be determined under paragraph (b) of the GSAR 
Termination for Convenience of the Government clause at 552.249-70.
    (c) Any termination liability charges existing at the end of the 
evaluated contract period will be considered in the evaluation of 
offers.

(End of clause)


552.252-5  Authorized Deviations in Provisions.

    As prescribed in 552.107-70(a), insert the following provision:

Authorized Deviations in Provisions (Deviation FAR 52.252-5) (Sep 1999)

    (a) Deviations to FAR provisions.
    (1) This solicitation indicates any authorized deviation to a 
Federal Acquisition Regulation (48 CFR Chapter 1) provision by the 
addition of ``(DEVIATION)'' after the date of the provision, if the 
provision is not published in the General Services

[[Page 37260]]

Administration Acquisition Regulation (48 CFR Chapter 5).
    (2) This solicitation indicates any authorized deviation to a 
Federal Acquisition Regulation (FAR) provision that is published in 
the General Services Administration Acquisition Regulation by the 
addition of ``(DEVIATION (FAR provision no.))'' after the date of 
the provision.
    (b) Deviations to GSAR provisions. This solicitation indicates 
any authorized deviation to a General Services Administration 
Acquisition Regulation provision by the addition of ``(DEVIATION)'' 
after the date of the provision.
    (c) ``Substantially the same as'' provisions. Changes in wording of 
provisions prescribed for use on a ``substantially the same as'' basis 
are not considered deviations.

(End of provision)


552.252-6  Authorized Deviations in Clauses.

    As prescribed in 552.107-70(b), insert the following clause:

Authorized Deviations in Clauses (Deviation FAR 52.252-6) (Sep 1999)

    (a) Deviations to FAR clauses.
    (1) This solicitation or contract indicates any authorized 
deviation to a Federal Acquisition Regulation (48 CFR Chapter 1) 
clause by the addition of ``(DEVIATION)'' after the date of the 
clause, if the clause is not published in the General Services 
Administration Acquisition Regulation (48 CFR Chapter 5).
    (2) This solicitation indicates any authorized deviation to a 
Federal Acquisition Regulation (FAR) clause that is published in the 
General Services Administration Acquisition Regulation by the 
addition of ``(DEVIATION (FAR clause no.))'' after the date of the 
clause.
    (b) Deviations to GSAR clauses: This solicitation indicates any 
authorized deviation to a General Services Administration 
Acquisition Regulation clause by the addition of ``(DEVIATION)'' 
after the date of the clause.
    (c) ``Substantially the same as'' clauses. Changes in wording of 
clauses prescribed for use on a ``substantially the same as'' basis 
are not considered deviations.

(End of clause)


552.270-1  Instructions to Offerors--Acquisition of Leasehold Interests 
in Real Property.

    As prescribed in 570.602, insert the following provision:

Instructions to Offerors--Acquisition of Leasehold Interests in Real 
Property (Mar 1998)

    (a) Definitions. As used in this provision--
    ``Discussions'' are negotiations that occur after establishment 
of the competitive range that may, at the contracting Officer's 
discretion, result in the offeror being allowed to revise its 
proposal.
    ``In Writing'' or ``Written'' means any worded or numbered 
expression which can be read, reproduced, and later communicated, 
and includes electronically transmitted and stored information.
    ``Proposal modification'' is a change made to a proposal before 
the solicitation's closing date and time, or made in response to an 
amendment, or made to correct a mistake at any time before award.
    ``Proposal revision'' is a change to a proposal made after the 
solicitation closing date, at the request of as allowed by a 
Contracting Officer as the result or of negotiations.
    ``Time,'' if stated as a number of days, is calculated using 
calendar days, unless otherwise specified, and will include 
Saturdays, Sundays, and legal holidays. However, if the last day 
falls on a Saturday, Sunday, or legal holiday, then the period shall 
include the next working day.
    (b) Amendments to solicitations. If this solicitation is 
amended, all terms and conditions that are not amended remain 
unchanged. Offerors shall acknowledge receipt of any amendment to 
this solicitation by the date and time specified in the 
amendment(s).
    (c) Submission, modification, revision, and withdrawal of 
proposals.
    (1) Unless other methods (e.g., electronic commerce or 
facsimile) are permitted in the solicitation, proposals and 
modifications to proposals shall be submitted in paper media in 
sealed envelopes or packages. Offers must be:
    (i) Submitted on the forms prescribed and furnished by the 
Government as a part of this solicitation or on copies of those 
forms, and
    (ii) Signed. The person signing an offer must initial each 
erasure or change appearing on any offer form. If the offeror is a 
partnership, the names of the partners composing the firm must be 
included with the offer.
    (2) Late proposals and revisions.
    (i) The Government will not consider any proposal received at 
the office designated in the solicitation after the exact time 
specified for receipt of offers unless it is received before the 
Government makes award and it meets at least one of the following 
conditions:
    (A) It was sent by registered or certified mail not later than 
the 5th calendar day before the date specified for receipt of offers 
(e.g., an offer submitted in response to solicitation requiring 
receipt of offers by the 20th of the month must have been mailed by 
the 15th).
    (B) It was sent by mail (or telegram or facsimile, if 
authorized) or hand-carried (including delivery by a commercial 
carrier) if it is determined by the Government that the late receipt 
was due primarily to Government mishandling after receipt at the 
Government installation.
    (C) It was sent by U.S. Postal Service Express Mail Next Day 
Service-Post Office to Addressee, not later than 5:00 p.m. at the 
place of mailing two working days prior to the date specified for 
receipt of proposals. The term ``working days'' excludes weekends 
and U.S. Federal holidays.
    (D) It was transmitted through an electronic commerce method 
authorized by the solicitation and was received at the initial point 
of entry of the Government infrastructure not later than 5:00 p.m. 
one working day prior to the date specified for receipt of 
proposals.
    (E) There is acceptable evidence to establish that it was 
received at the activity designated for receipt of offers and was 
under the Government's control prior to the time set for receipt of 
offers, and the Contracting Officer determines that accepting the 
late offer would not unduly delay the procurement.
    (F) It is the only proposal received.
    (ii) Any modification or revision of a proposal or response to 
request for information, including any final proposal revision, is 
subject to the same conditions as in subparagraphs (c)(2)(i)(A) 
through (c)(2)(i)(E) of this provision.
    (iii) The only acceptable evidence to establish the date of 
mailing of a late proposal or modification or revision sent either 
by registered or certified mail is the U.S. or Canadian Postal 
Service postmark both on the envelope or wrapper and on the original 
receipt from the U.S. or Canadian Postal Service. Both postmarks 
must show a legible date or the proposal, response to a request for 
information, or modification or revision shall be processed as if 
mailed late. ``Postmark'' means a printed, stamped, or otherwise 
placed impression (exclusive of a postage meter machine impression) 
that is readily identifiable without further action as having been 
supplied and affixed by employees of the U.S. or Canadian Postal 
Service on the date of mailing. Therefore, offerors or respondents 
should request the postal clerk to place a legible hand cancellation 
bull's eye postmark on both the receipt and the envelope or wrapper.
    (iv) Acceptable evidence to establish the time of receipt at the 
Government installation includes the time/date stamp of that 
installation on the proposal wrapper, other documentary evidence of 
receipt maintained by the installation, or oral testimony or 
statements of Government personnel.
    (v) The only acceptable evidence to establish the date of 
mailing of a late offer, modification or revision, or withdrawal 
sent by Express Mail Next Day Service-Post Office to Addressee is 
the date entered by the post office receiving clerk on the ``Express 
Mail Next Day Service-Post Office to Addressee'' label and the 
postmark on both the envelope or wrapper and on the original receipt 
from the U.S. Postal Service, ``Postmark'' has the same meaning as 
defined in paragraph (c)(2)(iii) of this provision, excluding 
postmarks of the Canadian Postal Service. Therefore, offerors or 
respondents should request the postal clerk to place a legible hand 
cancellation bull's eye postmark on both the receipt and the 
envelope or wrapper.
    (vi) Notwithstanding paragraph (c)(2)(i) of this provision, a 
late modification or revision of an otherwise successful proposal 
that makes its terms more favorable to the Government will be 
considered at any time it is received and may be accepted.
    (vii) An offeror may withdraw its proposal by written notice or 
telegram (including mailgram) received at any time before award. If 
the solicitation authorizes facsimile proposals, an offeror may 
withdraw its proposal via facsimile received at any time

[[Page 37261]]

before award, subject to the conditions specified in the provision 
entitled ``Facsimile Proposals.'' Proposals may be withdrawn in 
person by an offeror or an authorized representative, if the 
representative's identity is made known and the representative signs 
a receipt for the proposal before award.
    (viii) If an emergency or unanticipated event interrupts normal 
Government processes so that proposals cannot be received at the 
office designated for receipt of proposals by the exact time 
specified in the solicitation, and urgent Government requirements 
preclude amendment of the solicitation or other notice of an 
extension of the closing date, the time specified for receipt of 
proposals will be deemed to be extended to the same time of day 
specified in the solicitation on the first work day on which normal 
Government processes resume. If no time is specified in the 
solicitation, the time for receipt is 4:30 p.m., local time, for the 
designated Government office.
    (3) Any information given to a prospective offeror concerning 
this solicitation will be furnished promptly to all other 
prospective offerors, if that information is necessary in submitting 
offers or if the lack of it would be prejudicial to any other 
prospective offeror.
    (4) Offerors may submit modifications to their proposals at any 
time before the solicitation closing date and time, and may submit 
modifications in response to an amendment, or to correct a mistake 
at any time before award.
    (5) Offerors may submit revised proposals only if requested or 
allowed by the Contracting Officer.
    (6) The Government will construe an offer to be in full and 
complete with this solicitation unless the offer describes any 
deviation in the offer.
    (7) Offerors may submit proposals that depart from stated 
requirements. Such a proposal shall clearly identify why the 
acceptance of the proposal would be advantageous to the Government. 
The proposal must clearly identify and explicitly define any 
deviations from the terms and conditions of the solicitation, as 
well as the comparative advantage to the Government. The Government 
reserves the right to amend the solicitation to allow all offerors 
an opportunity to submit revised proposals based on the revised 
requirements.
    (d) Restriction on disclosure and use of data. An offeror that 
includes in its proposal data that it does not want disclosed to the 
public for any purpose, or use by the Government except for 
evaluation purposes, must meet both of the following conditions:
    (1) Mark the title page with the following legend:
    This proposal includes data that shall not be disclosed outside 
the Government and shall not be duplicated, used, or disclosed--in 
whole or in part--for any purpose other than to evaluate this 
proposal. If, however, a lease is awarded to this offeror as a 
result of--or in connection with--the submission of this data, the 
Government shall have the right to duplicate, use, or disclose the 
data to the extent provided in the resulting contract. This 
restriction does not limit the Government's right to use information 
contained in this data if it is obtained from another source without 
restriction. The data subject to this restriction are contained in 
sheets [insert numbers or other identification of sheets].
    (2) Mark each sheet of data it wishes to restrict with the 
following legend:
    Use or disclosure of data contained on this sheet is subject to 
the restriction on the title page of this proposal.
    (e) Lease award.
    (1) The Government intends to award a lease resulting from this 
solicitation to the responsible offeror whose proposal represents 
the best value after evaluation in accordance with the factors and 
subfactors in the solicitation.
    (2) The Government may reject any or all proposals if such 
action is in the Government's interest.
    (3) The Government may waive informalities and minor 
irregularities in proposals received.
    (4) The Government intends to evaluate proposals and award a 
lease after conducting discussions with offerors whose proposals 
have been determined to be within the competitive range. If the 
Contracting Officer determines that the number of proposals that 
would otherwise be in the competitive range exceeds the number at 
which an efficient competition can be conducted, the Contracting 
Officer may limit the number of proposals in the competitive range 
to the greatest number that will permit an efficient competition 
among the most highly rated proposals. Therefore, the offeror's 
initial proposal should contain the offeror's best terms from a 
price and technical standpoint.
    (5) Exchanges with offerors after receipt of a proposal do not 
constitute a rejection or counteroffer by the Government.
    (6) The Government may determine that a proposal is unacceptable 
if the price proposed are materially unbalanced between line terms 
or subline items. Unbalanced pricing exists when, despite an 
acceptable total evaluated price, the price of one or more contract 
line items is significantly overstated or understand as indicated by 
the application of cost or price analysis techniques. A proposal may 
be rejected if the Contracting Officer determines that the lack of 
balance poses an unacceptable risk to the Government.
    (7) The unconditional written acceptance of an offer establishes 
a valid contract.
    (8) The Government may disclose the following information in 
postaward debriefings to other offerors:
    (i) The overall evaluated cost or price and technical rating of 
the successful offeror;
    (ii) The overall making of all offerors, when any making was 
developed by the agency during source selection; and
    (iii) A summary of the rationale for award.

(End of provision)

    Alternate I (MAR 1998). As prescribed in 570.602, substitute the 
following paragraph for paragraph (c)(2)(i) of the basic provision:
    (i) Any offer received at the office designated in the 
solicitation after the exact time specified for receipt of final 
proposal revisions will not be considered unless it is received 
before award is made and it meets one of the following conditions--
    Alternate II (MAR 1998). As prescribed in 570.602, substitute 
the following paragraph for paragraph (e)(4) of the basic provision:
    (4) The Government intends to evaluate proposals and award a 
lease without discussions with offerors (except clarifications as 
described in FAR 15.306(a)). Therefore, the offeror's initial 
proposal should contain the offeror's best terms from a cost or 
price and technical standpoint. The Government reserves the right to 
conduct discussions if the Contracting Officer later determines them 
to be necessary. If the Contracting Officer determines that the 
number of proposals that would otherwise be in the competitive range 
exceeds the number at which an efficient competition can be 
conducted, the Contracting Officer may limit the number of proposals 
in the competitive range to the greatest number that will permit an 
efficient competition among the most highly rated proposals.


552.270-2  Historic Preference.

    As prescribed in 570.602, insert the following provision:

Historic Preference (Sep 1999)

    (a) The Government will give preference to offers of space in 
buildings on, or formally listed as eligible for inclusion in, the 
National Register of Historic Places and to historically significant 
buildings in historic districts listed in the National Register. 
This preference extends to historic buildings and will result in 
award if both of the following are met:
    (1) The offer for space meets the terms and conditions of this 
solicitation as well as any other offer received. The Contracting 
Officer has discretion to accept alternatives to certain 
architectural characteristics and safety features defined elsewhere 
in this solicitation to maintain the historical integrity of the 
building such as high ceilings, wooden floors, etc.
    (2) The rental is no more than 10 percent higher on a total 
annual usable square foot cost to the Government than the lowest 
otherwise acceptable offer.
    (b) If the Government receives more than one offer of an 
historic building and they meet the above criteria, the Government 
will award to the lowest priced historic property offered.

(End of provision)


552.270-3  Parties to Execute Lease.

    As prescribed in 570.602, insert the following provision:

Parties to Execute Lease (Sep 1999)

    (a) If the lease is executed by an attorney, agent, or trustee 
on behalf of the Lessor, an authenticated copy of his power of 
attorney, or other evidence to act on behalf of the Lessor, shall 
accompany the lease.
    (b) If the Lessor is a partnership, the lease shall be signed 
with the partnership name, followed by the name of the legally 
authorized partner signing the same, and, if requested by the 
Government, a copy of either the partnership agreement or current 
Certificate of Limited Partnership shall accompany the lease.
    (c) If the Lessor is a corporation, the lease shall be signed 
with the corporate name,

[[Page 37262]]

followed by the signature and title of the officer or other person 
signing the lease on its behalf, duly attested, and, if requested by 
the Government, evidence of this authority to so act shall be 
furnished.

(End of provision)


552.270-4 Definitions.

    As prescribed in 570.603, insert the following clause:

Definitions (Sep 1999)

    The following terms and phrases (except as otherwise expressly 
provided or unless the context otherwise requires) for all purposes 
of this lease shall have the respective meanings hereinafter 
specified:
    (a) ``Commencement Date'' means the first day of the term.
    (b) ``Contract'' and ``Contractor'' means ``Lease'' and 
``Lessor,'' respectively.
    (c) ``Contracting Officer'' means a person with the authority to 
enter into, administer, and/or terminate contracts and make related 
determinations and findings. The term includes certain authorized 
representatives of the Contracting Officer acting within the limits 
of their authority as delegated by the Contracting Officer.
    (d) ``Delivery Date'' means the date specified in or determined 
pursuant to the provisions of this lease for delivery of the 
premises to the Government, improved in accordance with the 
provisions of this lease and substantially complete, as such date 
may be modified in accordance with the provisions of this lease.
    (e) ``Delivery Time'' means the number of days provided by this 
lease for delivery of the premises to the Government, as such number 
may be modified in accordance with the provision so this lease.''
    (f) ``Excusable Delays'' means delays arising without the fault 
or negligence of Lessor and Lessor's subcontractors and suppliers at 
any tier, and shall include, without limitation:
    (1) acts of God or of the public enemy,
    (2) acts of the United States of America in either its sovereign 
or contractual capacity,
    (3) acts of another contractor in the performance of a contract 
with the Government,
    (4) fires,
    (5) floods,
    (6) epidemics,
    (7) quarantine restrictions,
    (8) strikes,
    (9) freight embargoes,
    (10) unusually severe weather, or
    (11) delays of subcontractors or suppliers at any tier arising 
from unforeseeable causes beyond the control and without the fault 
or negligence of both the Lessor and any such subcontractor or 
supplier.
    (g) ``Lessor'' means the sub-lessor if this lease is a sublease.
    (h) ``Lessor shall provide'' means the Lessor shall furnish and 
install at Lessor's expense.
    (i) ``Notice'' means written notice sent by certified or 
registered mail, Express Mail or Comparable service, or delivered by 
hand. Notice shall be effective on the date delivery is accepted or 
refused.
    (j) ``Premises'' means the space described in this lease.
    (k) ``Substantially complete'' and ``substantial completion'' 
means that the work, the common and other areas of the building, and 
all other things necessary for the Government's access to the 
premises and occupancy, possession, use and enjoyment thereof, as 
provided in this lease, have been completed or obtained, excepting 
only such minor matters as do not interfere with or materially 
diminish such access, occupancy, possession, use of enjoyment.
    (l) ``Usable square feet'' means the ANSI/BOMA Z65.1-1996 
definition for BOMA usable office area, which means ``The area where 
a tenant normally houses personnel and/or furniture, for which a 
measurement is to be computed.''
    (m) ``Work'' means all alterations, improvements, modifications, 
and other things required for the preparation or continued occupancy 
of the premises by the Government as specified in this lease.

(End of clause)


5512.270-5  Subletting and Assignment.

    As prescribed in 570.603, insert the following clause:

Subletting and Assignment (Sep 1999)

    The Government may sublet any part of the premises but shall not 
be relieved from any obligations under this lease by reason of any 
such subletting. The Government may at any time assign this lease, 
and be relieved from all obligations to Lessor under this lease 
excepting only unpaid rent and other liabilities, if any that have 
accrued to the date of said assignment. Any assignment shall be 
subject to prior written consent of Lessor, which shall not be 
unreasonably withheld.

(End of clause)


552.270-6  Maintenance of Building and Premises--Right of Entry.

    As prescribed in 570.603, insert the following clause:

Maintenance of Building and Premises--Right of Entry (Sep 1999)

    Except in case of damage arising out of the willful act or 
negligence of a Government employee, Lessor shall maintain the 
premises, including the building and all equipment, fixtures, and 
appurtenances furnished by the lessor under this lease, in good 
repair and condition so that they are suitable in appearance and 
capable of supplying such heat, air conditioning, light, 
ventilation, access and other things to the premises, without 
reasonably preventable or recurring disruption, as is required for 
the Government's access to, occupancy, possession, use and enjoyment 
of the premises as provided in this lease. For the purpose of so 
maintaining the premises, the Lessor may at reasonable times enter 
the premises with the approval of the authorized Government 
representative in charge.

(End of clause)


552.270-7  Fire and Casualty Damage.

    As prescribed in 570.603, insert the following clause:

Fire and Casualty Damage (Sep 1999)

    If the entire premises are destroyed by fire or other casualty, 
this lease will immediately terminate. In case of partial 
destruction or damage, so as to render the premises untenantable, as 
determined by the Government, the Government may terminate the lease 
by giving written notice to the Lessor within 15 calendar days of 
the fire or other casualty; if so terminated, no rent will accrue to 
the Lessor after such partial destruction or damage; and if not so 
terminated, the rent will be reduced proportionately by supplemental 
agreement hereto effective from the date of such partial destruction 
or damage. Nothing in this lease shall be construed as relieving 
Lessor from liability for damage to or destruction of property of 
the United States of America caused by the willful or negligent act 
or omission of Lessor.

(End of clause)


552.270-8  Compliance with Applicable Law.

    As prescribed in 570.603, insert the following clause:

Compliance With Applicable Law (Sep 1999)

    Lessor shall comply with all Federal, state and local laws 
applicable to the Lessor as owner or lessor, or both, of the 
building or premises, including, without limitation, laws applicable 
to the construction, ownership, alteration or operation of both or 
either thereof, and will obtain all necessary permits, licenses and 
similar items at Lessor's expense. The Government will comply with 
all Federal, state and local laws applicable to and enforceable 
against it as a tenant under this lease; provided that nothing in 
this lease shall be construed as a waiver of any sovereign immunity 
of the Government. This lease shall be governed by Federal law.

(End of clause)


552.270-9  Inspection--Right of Entry.

    As prescribed in 570.603, insert the following clause:

Inspection--Right of Entry (Sep 1999)

    (a) At any time and from time to time after receipt of an offer 
(until the same has been duly withdrawn or rejected), after 
acceptance thereof and during the term, the agents, employees and 
contractors of the Government may, upon reasonable prior notice to 
Offeror or Lessor, enter upon the offered premises or the premises, 
and all other areas of the building access to which is necessary to 
accomplish the purposes of entry, to determine the potential or 
actual compliance by the Offeror or Lessor with the requirements of 
the solicitation or this lease, which purposes shall include, but 
not be limited to:
    (1) Inspecting, sampling and analyzing suspected asbestos-
containing materials and air monitoring for asbestos fibers;
    (2) Inspecting the heating, ventilation and air conditioning 
system, maintenance records, and mechanical rooms for the offered 
premises or the premises;
    (3) Inspecting for any leaks, spills, or other potentially 
hazardous conditions which may

[[Page 37263]]

involve tenant exposure to hazardous or toxic substances; and
    (4) Inspecting for any current or past hazardous waste 
operations, to ensure that appropriate mitigative actions were taken 
to alleviate any environmentally unsound activities in accordance 
with Federal, State and local law.
    (b) Nothing in this clause shall be construed to create a 
Government duty to inspect for toxic materials or to impose a higher 
standard of care on the Government than on other lessees. The 
purpose of this clause is to promote the ease with which the 
Government may inspect the building. Nothing in this clause shall 
act to relieve the Lessor of any duty to inspect or liability which 
might arise as a result of Lessor's failure to inspect for or 
correct a hazardous condition.

(End of clause)


552.270-10  Failure in Performance.

    As prescribed in 570.603, insert the following clause:

Failure in Performance (Sep 1999)

    The covenant to pay rent and the covenant to provide any 
service, utility, maintenance, or repair required under this lease 
are interdependent. In the event of any failure by the Lessor to 
provide any service, utility, maintenance, repair or replacement 
required under this lease the Government may, by contract or 
otherwise, perform the requirement and deduct from any payment or 
payments under this lease, then or thereafter due, the resulting 
cost to the Government, including all administrative costs. If the 
Government elects to perform any such requirement, the Government 
and each of its contractors shall be entitled to access to any and 
all areas of the building, access to which is necessary to perform 
any such requirement, and the Lessor shall afford and facilitate 
such access. Alternatively, the Government may deduct from any 
payment under this lease, then or thereafter due, an amount which 
reflects the reduced value of the contract requirement not 
performed. No deduction from rent pursuant to this clause shall 
constitute a default by the Government under this lease. These 
remedies are not exclusive and are in addition to any other remedies 
which may be available under this lease or at law.

(End of clause)


552.270-11  Successors Bound.

    As prescribed in 570.603, insert the following clause:

Successors Bound (Sep 1999)

    This lease shall bind, and inure to the benefit of, the parties 
and their respective heirs, executors, administrators, successors 
and assigns.

(End of clause)


552.270-12  Alterations.

    As prescribed in 570.603, insert the following clause:

Alterations (Sep 1999)

    The Government shall have the right during the existence of this 
lease to make alterations, attach fixtures, and erect structures or 
signs in or upon the premises hereby leased, which fixtures, 
additions or structures so placed in, on, upon, or attached to the 
said premises shall be and remain the property of the Government and 
may be removed or otherwise disposed of by the Government. If the 
lease contemplates that the Government is the sole occupant of the 
building, for purposes of this clause, the leased premises include 
the land on which the building is sited and the building itself. 
Otherwise, the Government shall have the right to tie into or make 
any physical connection with any structure located on the property 
as is reasonably necessary for appropriate utilization of the leased 
space.

(End of clause)


552.270-13  Proposals for Adjustment.

    As prescribed in 570.603, insert the following clause:

Proposals for Adjustment (Sep 1999)

    (a) The Contracting Officer may, from time to time during the 
term of this lease, require changes to be made in the work or 
services to be performed and in the terms or conditions of this 
lease. Such changes will be required under the Changes clause.
    (b) If the Contracting Officer makes a change within the general 
scope of the lease, the Lessor shall submit, in a timely manner, an 
itemized cost proposal for the work to be accomplished or services 
to be performed when the cost exceeds $100,000. The proposal, 
including all subcontractor work, will contain at least the 
following details--
    (1) Material quantities and unit costs;
    (2) Labor costs (identified with specific item or material to be 
placed or operation to be performed);
    (3) Equipment costs;
    (4) Worker's compensation and public liability insurance;
    (5) Overhead;
    (6) Profit; and
    (7) Employment taxes under FICA and FUTA.
    (c) The following Federal Acquisition Regulation (FAR) 
provisions also apply to all proposals exceeding $500,000 in cost--
    (1) The Lessor shall provide cost or pricing data including 
subcontractor cost or pricing data (48 CFR 15.403-4); and
    (2) The Lessor's representative, all Contractors, and 
subcontractors whose portion of the work exceeds $500,000 must sign 
and return the ``Certificate of Current Cost or Pricing Data'' (48 
CFR 15.406-2).
    (d) Lessors shall also refer to 48 CFR Part 31, Contract Cost 
Principles, for information on which costs are allowable, 
reasonable, and allocable in Government work.

(End of clause)


552.270-14  Changes.

    As prescribed in 570.603, insert the following clause:

Changes (Sep 1999)

    (a) The Contracting Officer may at any time, by written order, 
make changes within the general scope of this lease in any one or 
more of the following:
    (1) Specifications (including drawings and designs).
    (2) Work or services.
    (3) Facilities or space layout.
    (4) Amount of space, provided the Lessor consents to the change.
    (b) If any such change causes an increase or decrease in 
Lessor's cost of or the time required for performance under this 
lease, whether or not changed by the order, the Contracting Officer 
shall modify this lease to provide for one or more of the following:
    (1) A modification of the delivery date.
    (2) An equitable adjustment in the rental rate.
    (3) A lump sum equitable adjustment.
    (4) An equitable adjustment of the annual operating costs per 
usable square foot specified in this lease.
    (c) The Lessor must assert its right to an adjustment under this 
clause within 30 days from the date of receipt of the change order 
and must submit a proposal for adjustment. Failure to agree to any 
adjustment shall be a dispute under the Disputes clause. However, 
nothing in this clause excuses the lessor from proceeding with the 
change as directed.
    (d) Absent such written change order, the Government is not 
liable to Lessor under this clause.

(End of clause)


552.270-15  Liquidated Damages.

    As prescribed in 570.603, insert the following clause:

Liquidated Damages (Sep 1999)

    In case of failure on the part of the Lessor to complete the 
work within the time fixed in the lease contract or letter of award, 
the Lessor shall pay the Government as fixed and agreed liquidated 
damages, pursuant to this clause, the sum $______ for each and every 
calendar day that the delivery is delayed beyond the date specified 
for delivery of all the space ready for occupancy by the Government. 
this remedy is not exclusive and is in addition to any other 
remedies which may be available under this lease or at law.

(End of clause)


552.270-16  Adjustment for Vacant Premises.

    As prescribed in 570.603, insert the following clause:

Adjustment for Vacant Premises (Sep 1999)

    (a) If the Government fails to occupy any portion of the leased 
premises or vacates the premises in whole or in part before the 
lease term expires, the rental rate will be reduced.
    (b) The rental rate will be reduced by that portion of the costs 
per usable square foot of operating expenses not required to 
maintain the space. The reduction takes effect 30 calendar days 
after the Government gives notice to the Lessor, and continues in 
effect until the Government occupies the premises or the lease 
expires or is terminated.

(End of clause)


552.270-17  Delivery and Condition.

    As prescribed in 570.603, insert the following clause:

[[Page 37264]]

Delivery and Condition (Sep 1999)

    (a) Unless the Government elects to have the space occupied in 
increments, the space must be delivered ready for occupancy as a 
complete unit. The Government reserves the right to determine when 
the space is substantially complete.
    (b) If the premises do not in every respect comply with the 
provisions of this lease the Contracting Officer may, in accordance 
with the Failure in Performance clause of this lease, elect to 
reduce the rent payments.

(End of clause)


552.270-18  Default in Delivery--Time Extensions.

    As prescribed in 570.603, insert the following clause:

Default In Delivery--Time Extensions (Sep 1999)

    (a) With respect to Lessor's obligation to deliver the premises 
substantially complete by the delivery date, time is of the essence. 
If the Lessor fails to work diligently to ensure its substantial 
completion by the delivery date or fails to substantially complete 
the work by such date, the Government may by notice to the Lessor 
terminate this lease. Such termination is effective when received by 
Lessor. The Lessor and the Lessor's sureties, if any, are jointly 
and severally liable for any damages to the Government resulting 
from such termination, as provided in this clause. The Government is 
entitled to the following damages:
    (1) The Government's aggregate rent, estimated real estate tax, 
and operating cost adjustments for the firm term and all option 
terms of its replacement lease or leases, in excess of the aggregate 
rent and estimated real estate tax and operating cost adjustments 
for the term. If the Government procures replacement premises for a 
term (including all option terms) in excess of this lease term, the 
Lessor is not liable for excess Government rent or adjustments 
during such excess lease term.
    (2) All administrative and other costs the Government incurs in 
procuring a replacement lease or leases.
    (3) Other, additional relief provided for in this lease, at law, 
or in equity.
    (b) Damages to which the Government is entitled under this 
clause are due and payable thirty (30) days following the date 
Lessor receives notice from the Contracting Officer specifying such 
damages.
    (c) Delivery by Lessor of less than the minimum usable square 
footage required by this lease shall in no event be construed as 
substantial completion, except as the Contracting Officer permits.
    (d) The Government shall not terminate this lease under this 
clause nor charge the Lessor with damages under this clause, if (1) 
the delay in substantially completing the work arises from excusable 
delays, and (2) the Lessor within 10 days from the beginning of any 
such delay (unless extended in writing by the Contracting Officer) 
provides notice to the Contracting Officer of the causes of delay. 
The Contracting Officer shall ascertain the facts and the extent of 
delay. If the facts warrant, the Contracting Officer shall extend 
the delivery date, to the extent of such delay at no additional 
costs to the Government. A time extension is the sole remedy of the 
Lessor.

(End of clause)


552.270-19  Progressive Occupancy.

    As prescribed in 570.603, insert the following clause:

Progressive Occupancy (Sep 1999)

    The Government shall have the right to elect to occupy the space 
in partial increments prior to the substantial completion of the 
entire leased premises, and the Lessor agrees to schedule its work 
so as to deliver the space incrementally as elected by the 
Government. The Government shall pay rent commencing with the first 
business day following substantial completion of the entire leased 
premise unless the Government has elected to occupy the leased 
premises incrementally. In case of incremental occupancy, the 
Government shall pay rent pro rata upon the first business day 
following substantial completion of each incremental unit. Rental 
payments shall become due on the first workday of the month 
following the month in which an increment of space is substantially 
complete, except that should an increment of space be substantially 
completed after the fifteenth day of the month, the payment due date 
will be the first workday of the second month following the month in 
which it was substantially complete. The commencement date of the 
firm lease term will be a complete determined from all rent 
commencement dates.

(End of clause)


552.270-20  Payment.

    As prescribed in 570.603, insert the following clause:

Payment (Sep 1999)

    (a) When space is offered and accepted, usable square footage 
delivered will be confirmed by either:
    (1) The Government's measurement of plans submitted by the 
successful offeror as approved by the Government, and an inspection 
of the space to verify that the delivered space conforms with such 
plans.
    (2) A mutual on-site measurement of the space if the Contracting 
Officer determines it necessary.
    (b) The Government will not pay for space in excess of the 
amount of usable square footage stated in the lease.
    (c) If the amount of usable square footage delivered is less 
than the amount agreed to in the lease, the lease will be modified 
to reflect the amount of usable space delivered and the annual 
rental will be adjusted as follows:
    Usable square feet (USF) not delivered multiplied by one plus 
the common area factor (CAF), multiplied by the rate per rentable 
square foot (RSF). That is:

USF X(1+CAF) X Rate per RSF=Reduction in Annual Rent.

(End of clause)


552.270-21  Effect of Acceptance and Occupancy.

    As prescribed in 570.603, insert the following clause:

Effect of Acceptance and Occupancy (Sep 1999)

    Neither the Government's acceptance of the premises for 
occupancy, nor the Government's occupancy thereof, shall be 
construed as a waiver of any requirement of or right of the 
Government under this Lease, or as otherwise prejudicing the 
Government with respect to any such requirement or right.

(End of clause)


552.270-22  Default by Lessor During the Term.

    As prescribed in 570.603, insert the following clause:

Default By Lessor During the Term (Sep 1999)

    (a) Each of the following shall constitute a default by Lessor 
under this lease:
    (1) Failure to maintain, repair, operate or service the premises 
as and when specified in this lease, or failure to perform any other 
requirement of this lease as and when required provided any such 
failure shall remain uncured for a period of thirty (30) days next 
following Lessor's receipt of notice thereof from the Contracting 
Officer or an authorized representative.
    (2) Repeated and unexcused failure by Lessor to comply with one 
or more requirements of this lease shall constitute a default 
notwithstanding that one or all such failures shall have been timely 
cured pursuant to this clause.
    (b) If a default occurs, the Government may, by notice to 
Lessor, terminate this lease for default and if so terminated, the 
Government shall be entitled to the damages specified in the Default 
in Delivery-Time Extensions clause.

(End of clause)


552.270-23  Subordination, Nondisturbance and Attornment.

    As prescribed in 570.603, insert the following clause:

Subordination, Nondisturbance and Attornment (Sep 1999)

    (a) Lessor warrants that it holds such title to or other 
interest in the premises and other property as is necessary to the 
Government's access to the premises and full use and enjoyment 
thereof in accordance with the provisions of this lease. Government 
agrees, in consideration of the warranties and conditions set forth 
in this clause, that this lease is subject and subordinate to any 
and all recorded mortgages, deeds of trust and other liens now or 
hereafter existing or imposed upon the premises, and to any renewal, 
modification or extension thereof. It is the intention of the 
parties that this provision shall be self-operative and that no 
further instrument shall be required to effect the present or 
subsequent subordination of this lease. Government agrees, however, 
within twenty (20) business days next

[[Page 37265]]

following the Contracting Officer's receipt of a written demand, to 
execute such instruments as Lessor may reasonably request to 
evidence further the subordination of this lease to any existing or 
future mortgage, deed of trust or other security interest pertaining 
to the premises, and to any water, sewer or access easement 
necessary or desirable to serve the premises or adjoining property 
owned in whole or in part by Lessor if such easement does not 
interfere with the full enjoyment of any right granted the 
Government under this lease.
    (b) No such subordination, to either existing or future 
mortgages, deeds of trust or other lien or security instrument shall 
operate to affect adversely any right of the Government under this 
lease so long as the Government is not in default under this lease. 
Lessor will include in any future mortgage, deed of trust or other 
security instrument to which this lease becomes subordinate, or in a 
separate nondisturbance agreement, a provision to the foregoing 
effect. Lessor warrants that the holders of all notes or other 
obligations secured by existing mortgages, deeds of trust or other 
security instruments have consented to the provisions of this 
clause, and agrees to provide true copies of all such consents to 
the Contracting Officer promptly upon demand.
    (c) In the event of any sale of the premises or any portion 
thereof by foreclosure of the lien of any such mortgage, deed of 
trust or other security instrument, or the giving of a deed in lieu 
of foreclosure, the Government will be deemed to have attorned to 
any purchaser, purchasers, transferee or transferees of the premises 
or any portion thereof and its or their successors and assigns, and 
any such purchasers and transferees will be deemed to have assumed 
all obligations of the Lessor under this lease, so as to establish 
direct privity of estate and contract between Government and such 
purchasers or transferees, with the same force, effect and relative 
priority in time and right as if the lease had initially been 
entered into between such purchasers or transferees and the 
Government; provided, further, that the Contracting Officer and such 
purchasers or transferees shall, with reasonable promptness 
following any such sale or deed delivery in lieu of foreclosure, 
execute all such revisions to this lease, or other writings, as 
shall be necessary to document the foregoing relationship.
    (d) None of the foregoing provisions may be deemed or construed 
to imply a waiver of the Government's rights as a sovereign.

(End of clause)


552.270-24  Statement of Lease.

    As prescribed in 570.603, insert the following clause:

Statement of Lease (Sep 1999)

    (a) The Contracting Officer will, within thirty (30) days next 
following the Contracting Officer's receipt of a joint written 
request from Lessor and a prospective lender or purchaser of the 
building, execute and deliver to Lessor a letter stating that the 
same is issued subject to the conditions stated in this clause and, 
if such is the case, that (1) the lease is in full force and effect; 
and (2) the date to which the rent and other charges have been paid 
in advance, if any; and (3) whether any notice of default has been 
issued.
    (b) Letters issued pursuant to this clause are subject to the 
following conditions:
    (1) That they are based solely upon a reasonably diligent review 
of the Contracting Officer's lease file as of the date of issuance;
    (2) That the Government shall not be held liable because of any 
defect in or condition of the premises or building;
    (3) That the Contracting Officer does not warrant or represent 
that the premises or building comply with applicable Federal, State 
and local law; and
    (4) That the Lessor, and each prospective lender and purchaser 
are deemed to have constructive notice of such facts as would be 
ascertainable by reasonable prepurchase and precommitment inspection 
of the Premises and Building and by inquiry to appropriate Federal, 
State and local Government officials.

(End of clause)


552.270-25  Substitution of Tenant Agency.

    As prescribed in 570.603, insert the following clause:

Substitution of Tenant Agency (Sep 1999)

    The Government may, at any time and from time to time, 
substitute any Government agency or agencies for the Government 
agency or agencies, if any, named in the lease.

(End of clause)


552.270-26  No Waiver.

    As prescribed in 570.603, insert the following clause:

No Waiver (Sep 1999)

    No failure by either party to insist upon the strict performance 
of any provision of this lease or to exercise any right or remedy 
consequent upon a breach thereof, and no acceptance of full or 
partial rent or other performance by either party during the 
continuance of any such breach shall constitute a waiver of any such 
breach of such provision.

(End of clause)


552.270-27  Integrated Agreement.

    As prescribed in 570.603, insert the following clause:

Integrated Agreement (Sep 1999)

    This Lease, upon execution, contains the entire agreement of the 
parties and no prior written or oral agreement, express or implied, 
shall be admissible to contradict the provisions of the Lease.

(End of clause)


552.270-28  Mutuality of Obligation.

    As prescribed in 570.603, insert the following clause:

Mutuality of Obligation (Sep 1999)

    The obligations and covenants of the Lessor, and the 
Government's obligation to pay rent and other Government obligations 
and covenants, arising under or related to this Lease, are 
interdependent. The Government may, upon issuance of and delivery to 
Lessor of a final decision asserting a claim against Lessor, set off 
such claim, in whole or in part, as against any payment or payments 
then or thereafter due the Lessor under this lease. No setoff 
pursuant to this clause shall constitute a breach by the Government 
of this lease.

(End of clause)


552.270-29  Acceptance of Space.

    As prescribed in 570.603, insert the following clause:

Acceptance of Space (Sep 1999)

    (a) When the Lessor has completed all alterations, improvements, 
and repairs necessary to meet the requirements of the lease, the 
Lessor shall notify the Contracting Officer. The Contracting Officer 
or designated representative shall promptly inspect the space.
    (b) The Government will accept the space and the lease term will 
begin after determining that the space is substantially complete and 
contains the required usable square footage as indicated in 
Paragraph 1.1, Amount and Type of Space, of this solicitation.

(End of clause)

PART 553 FORMS

Subpart 553.2 Illustrations of Forms


553.300  Scope of subpart.

    Standard and GSA forms prescribed or referenced in the text of this 
chapter are illustrated in and made a part of the General Services 
Administration Acquisition Manual. The forms are not illustrated in 
Title 48, Chapter 5, of the Code of Federal Regulations. Copies may be 
obtained from the Director of the Office of GSA Acquisition Policy 
(MVP), 1800 F Street, NW, Washington, DC 20405.

Subchapter I--Special Contracting Programs

PART 570  ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY

570.1  General
570.101  Applicability
570.102  Definitions
570.103  Authority to lease
570.104  Competition
570.105  Methods of contracting
570.105-1  Contracting by negotiation
570.105-2  Two-phase design-build selection procedures
570.105-3  Sealed bidding
570.106  Publicizing/Advertising
570.107  Oral presentation
570.108  Responsibility determination
570.109  Certifications
570.110  Cost or pricing data and information other than cost or 
pricing data
570.111  Inspection and acceptance
570.112  Awards to Federal employees
570.113  Disclosure of mistakes after award

[[Page 37266]]

570.114  Protests
570.2  Simplified Lease Acquisition Procedures
570.201  Purpose
570.202  Policy
570.203  Procedures
570.203-1  Market survey
570.203-2  Competition
570.203-3  Soliciting offers
570.203-4  Negotiation, evaluation, and award
570.3  Contracting Procedures for Leasehold Interests in Real 
Property
570.301  Market Survey
570.302  Description of requirements
570.303  Solicitation for offers
570.303-1  Preparing the SFO
570.303-2  Issuing the SFO
570.303-3  Late offers, modifications of offers, and withdrawals of 
offers
570.303-4  Changes to SFOs
570.304  General source selection procedures
570.305  Two-phase design-build selection procedures
570.306  Evaluating offers
570.307  Negotiations
570.308  Award
570.309  Debriefings
570.4  Special Aspects of Contracting for Continued Space 
Requirements
570.401  Renewal options
570.402  Succeeding leases
570.402-1  General
570.402-2  Publicizing/Advertising
570.402-3  Market survey
570.402-4  No potential acceptable locations
570.402-5  Potential acceptable locations
570.402-6  Cost-benefit analysis
570.403  Expansion requests
570.404  Superseding leases
570.405  Lease extensions
570.5  Special Aspects of Contracting for Lease Alterations
570.501  General
570.502  Alterations by the lessor
570.502-1  Justification and approval requirements
570.502-2  Procedures
570.503  Alterations by the Government or through a separate 
contract
570.6  Solicitation Provisions and Contract Clauses
570.601  FAR provisions and clauses
570.602  GSAR solicitation provisions
570.603  GSAR contract clauses
570.604  Deviations to provisions and clauses
570.7  Forms
570.701  Standard forms
570.702  GSA forms

SUBCHAPTER I--SPECIAL CONTRACTING PROGRAMS

PART 570 ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY

Subpart 570.1 General


570.101  Applicability.

    (a) This part applies to acquisitions of leasehold interests in 
real property except:
    (1) Leasehold interests acquired by the power of eminent domain or 
by donation.
    (2) Acquisition of leasehold interests in bare or unimproved land.
    (b) In addition, the GSAR rules in the following table apply. Other 
provisions of 48 CFR Chapter 5 (GSAR) do not apply to leases of real 
property unless specifically cross-referenced in this part 570.

  GSAR Rules Applicable to Acquisitions of Leasehold Interests in Real
                                Property
 
 
 
501                514.201-7(b)       517.207           533
502                514.407            519.7             536.271
503                515.204-1          519.12            537.2
504.5              515.209-70         522.8             552
505                515.305            532.1             553
509.4              517.202            532.908           ................
 

570.102  Definitions.

    Acquisition means the acquiring by lease of an interest in improved 
real property for use by the Federal Government, whether the space 
already exists or must be constructed.
    Contract means lease.
    Contractor means lessor.
    Landlord or lessor means any individual, firm, partnership, trust, 
association, State or local government, or other legal entity that 
leases real property to the Government.
    Lease or leasehold interest in real property means a conveyance to 
the Government of the right of exclusive possession of real property 
for a definite period of time by a landlord. It may include operational 
services provided by the landlord.
    Lessee or tenant means the United States of America.
    Operational services means services that support use of a leased 
property, such as heating, ventilation, air condition, utilities, and 
custodial services.
    Rent and related services means that consideration paid for the use 
of leased property plus the costs of operational services whether 
furnished by the lessor, the Government, or both.
    Simplified lease acquisition procedures mean the procedures for 
awarding leases at or below the simplified lease acquisition threshold.
    Simplified lease acquisition threshold Means $100,000 average 
annual rent for the term of the lease, including option periods and 
excluding the cost of operational services.
    Small business means a concern including affiliates, which is 
organized for profit, is independently-owned and operated, is not 
dominant in the field of leasing commercial real estate, and has annual 
average gross receipts of $15 million or less for the preceding three 
fiscal years.
    Solicitation for Offers (SFO) means invitation for bids in sealed 
bidding or request for proposals in negotiations.
    Space in buildings means the premises leased, or to be leased, 
including improvements. Its quantity is normally expressed in square 
feet. It does not include space acquired by the power of eminent 
domain, donation, or condemnation, nor acquisitions of bare or 
unimproved land.
    Substantially as follows or substantially the same as, when used in 
prescribing a provision or clause, means that you may prepare and use a 
variation of that provision or clause to accommodate requirements 
peculiar to an individual acquisition. The variation must include the 
salient features of the FAR or GSAR provision or clause. It must also 
be consistent with the intent, principle, and substance of the FAR or 
GSAR provision or clause and related coverage on the subject matter.


570.103  Authority to lease.

    (a) The Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 490(h)(1)), as amended, and Section 1 of the Reorganization 
Plan No. 18 of 1950 (40 U.S.C. 490 Note) authorize the Administrator of 
General Services to acquire leasehold interests in real property for 
use by Federal agencies. The authority is limited to leases for 
buildings and improvement that bind the Government for periods not 
exceeding 20 years.
    (b) You have exclusive authority to enter into and administer 
leases on the Government's behalf to the extent provided in your 
certificate of appointment as a contracting officer.


570.104  Competition.

    Unless you use the simplified procedures in subpart 570.2, the 
competition requirements of FAR part 6

[[Page 37267]]

apply to acquisition of leasehold interests in real property.


570.105  Methods of contracting.


570.105-1  Contracting by negotiation.

    Contracting by negotiation is usually appropriate for acquiring 
space in a building through a lease contract. You will usually need to 
conduct discussions with offerors about their proposals and consider 
factors other than price in making the award.


570.105-2  Two-phase design-build selection procedures.

    Unless you use another acquisition procedure authorized by law, you 
must use the two-phase design-build selection procedures in section 
303M of the Federal Property and Administrative Services Act of 1949, 
as amended, for lease construction projects. This includes lease 
construction projects with options to purchase the real property 
leased. Use the procedures in section 303M when you meet the conditions 
in paragraphs (a) and (b) of this section:
    (a) You anticipate the lease will involve the design and 
construction of a public building, facility, or work for lease to the 
Government.
    (b) You determine the procedures are appropriate for entering into 
a lease construction contract based on the following:
    (1) You expect to receive three or more offers.
    (2) Offerors will need to perform design work before developing a 
price.
    (3) Offerors will incur a substantial amount of expense in 
preparing offers.
    (4) You consider criteria such as the following:
    (i) The extent to which the project requirements have been 
adequately defined.
    (ii) The time constraints for delivery of the project.
    (iii) The capability and experience of potential contractors.
    (iv) The suitability of the project for use of the two-phase 
selection procedures.
    (v) The capability of the agency to manage the two-phase selection 
process.
    (vi) Other criteria established by the HCA.


570.105-3  Sealed bidding.

    For sealed bidding, use the procedures in FAR part 14. In most 
cases you should not use sealed bidding to acquire space in buildings 
unless you meet all the following conditions:
    (a) You have a preselected site.
    (b) A building will be constructed on the site using Government 
furnished plans and specifications.
    (c) The Government will lease the building.


570.106  Publicizing/Advertising.

    (a) Subparts 505.101, 505.202, and 505.203 define requirements for 
publicizing lease actions.
    (b) Instead of issuing separate advertisements for multiple, known 
leasing actions, you may include the actions in one consolidated 
advertisement.


570.107  Oral presentations.

    You may use oral presentations for acquisitions of leasehold 
interests in real property. Follow the procedures in FAR 15.102.


570.108  Responsibility determination.

    (a) Determine that the prospective awardee is responsible with 
respect to the lease under consideration. The standards in FAR 9.104 
apply. As part of the determination that a prospective contractor is 
otherwise qualified and eligible for award, review the List of Parties 
Excluded from Federal Procurement and Nonprocurement Programs.
    (b) Your signature on the contract is deemed an affirmative 
determination.
    (c) If you find an offeror nonresponsible, sign and place in the 
contract file a determination of nonresponsibility. State the basis for 
the determination.
    (d) If you find a small business concern nonresponsible, the 
procedures at FAR 19.6 apply. Place all documents and reports 
supporting a determination of responsibility or nonresponsibility in 
the lease file.


570.109  Certifications.

    Before awarding a lease, review applicable certifications for 
compliance with statute and regulations.


570.110  Cost or pricing data and information other than cost or 
pricing data.

    (a) The policies and procedures of FAR 15.403 apply to lease 
contract actions.
    (b) FAR 15.403-1 defines exceptions to and waivers for submitting 
cost or pricing data. Most leasing actions will have adequate price 
competition. For price analysis, you may use a market survey or an 
appraisal conducted using accepted real property appraisal procedures 
to establish a market price for comparison.
    (c) In exceptional cases, the requirement for submission of 
certified cost or pricing data may be waived under FAR 15.403-1(c)(4).
    (d) If cost or pricing data are required, follow the procedures in 
FAR 15.403-4 and 15.406-2.


570.111  Inspection and acceptance.

    Before you accept space, obtain an inspection to ensure that the 
space complies with the Government's requirements and specifications. 
Document the inspection and acceptance in the contract file.


570.112  Awards to Federal employees.

    If you receive an offer from an officer or employee of the 
Government, follow the procedures in FAR 3.6.


570.113  Disclosure of mistakes after award.

    If you discover a mistake in a lessor's offer after award, follow 
the procedures in FAR 14.407-4 and subpart 514.407-4.


570.114  Protests.

    FAR 33.1 and 533.1 apply to protests of lease acquisitions.

Subpart 570.2--Simplified Lease Acquisition Procedures


570.201  Purpose.

    This subpart prescribes simplified procedures for small leases. 
These procedures reduce administrative costs, while improving 
efficiency and economy, when acquiring small leasehold interests in 
real property.


570.202  Policy.

    Use simplified lease acquisition procedures to the maximum extent 
practicable for actions at or below the simplified lease acquisition 
threshold.


570.203  Procedures.


570.203-1  Market survey.

    Conduct a market survey to identify potential sources. Use 
information available in GSA or from other sources to identify 
locations that will meet the Government's requirements.


570.203-2  Competition.

    (a) Solicit at least three sources to promote competition to the 
maximum extent practicable. If you have repeated requirements for space 
in the same market, and if practicable, invite two sources not included 
in the most recent solicitation to submit offers.
    (b) If you solicit only one source, document the file to explain 
the lack of competition.


570.203-3  Soliciting offers.

    (a) Solicit offers by providing each prospective offeror a proposed 
short form lease or SFO. The short form lease or SFO must provide all 
the following information:
    (1) A description of the Government's requirements.

[[Page 37268]]

    (2) All award factors, including price or cost, and any significant 
subfactors you will consider in awarding the lease.
    (3) A statement of the relative importance of the evaluation 
factors and subfactors.
    (4) A statement of whether all evaluation factors other than cost 
or price, when combined, are either:
    (i) Significantly more important than cost or price.
    (ii) Approximately equal in importance to cost or price.
    (iii) Significantly less important than cost or price.
    (5) Either in full text or by reference, applicable FAR provisions 
and contract clauses required by 570.6.
    (b) As necessary, review with prospective offerors the Government's 
requirements, pricing matters, evaluation procedures and submissions of 
offers.


570.203-4  Negotiations, evaluation, and award.

    (a) If you need to conduct negotiations, use the procedures in 
570.307.
    (b) Evaluate offers in accordance with the solicitation. Evaluate 
prices and document the lease file to demonstrate whether the proposed 
contract prices are fair and reasonable.
    (c) If the total price, including options, exceeds $500,000, 
consider whether you need cost and pricing data to determine that the 
price is fair and reasonable. In most cases the exceptions at FAR 
15.403-1 will apply.
    (d) If the total contract value of the lease, including options, 
will exceed $500,000, the proposed awardee must provide an acceptable 
small business subcontracting plan. This requirement does not apply if 
the proposed awardee is a small business concern.
    (e) Make award to the responsible offeror whose proposal is most 
advantageous to the Government considering price and other factors 
included in the solicitation.

Subpart 570.3--Contracting Procedures for Leasehold Interests in 
Real Property


570.301  Market survey.

    Conduct a market survey to identify potential sources. Use 
information available in GSA or from other sources to identify 
locations capable of meeting the Government's requirements.


570.302  Description of requirements.

    (a) The description of requirements depends on the nature of the 
space the agency needs and the market available to satisfy that need.
    (b) The description of requirements must include all the following:
    (1) A statement of the purpose of the lease.
    (2) Functional, performance, or physical requirements.
    (3) Any special requirements.
    (4) The delivery schedule.
    (c) The description must promote full and open competition. Include 
restrictive provisions or conditions only to the extent necessary to 
satisfy the agency's needs or as authorized by law.


570.303  Solicitation for offers.


570.303-1  Preparing the SFO.

    The SFO forms the basis for the lease negotiation process and 
becomes part of the lease. Document each SFO in writing or 
electronically. Include the information necessary to enable prospective 
offerors to prepare proposals. Each SFO, at a minimum, must provide all 
the following:
    (a) Describe the Government's requirements.
    (b) State the method the Government will use to measure space.
    (c) Explain how to structure offers.
    (d) Specify a date, time, and place for submission of offers.
    (e) Explain how the Government will evaluate offers.
    (f) Describe the source selection procedures the Government will 
use.
    (g) Include a statement outlining the information the Government 
may disclose in debriefings.
    (h) Include appropriate forms prescribed in 570.7.


570.302-3  Issuing the SFO.

    Release the SFO to all prospective offerors at the same time.


570.303-3  Late offers, modifications of offers, and withdrawals of 
offers.

    Follow the procedures in FAR 15.208.


570.303-4  Changes to SFOs.

    (a) If the Government's requirements change, either before or after 
receipt of proposals, issue an amendment. Document the amendment using 
the same method as for the SFO, written or electronic.
    (b) If time is critical, you may provide information on SFO 
amendments orally.
    (1) Make a record of the information provided.
    (2) Provide, or attempt to provide, the notice to all offerors or 
prospective offerors on the same day.
    (3) Promptly confirm the information provided orally in a written 
amendment.
    (c) Distribute an amendment as follows:
    (1) If before the proposal due date, send the amendment to all 
prospective offerors who were sent a copy of the SFO.
    (2) If after proposal receipt, send the amendment to each offeror 
who submitted a proposal.
    (d) If an amendment is so substantial that it requires a complete 
revision of the SFO, cancel the SFO and issue a new one.


570.304  General source selection procedures.

    (a) These procedures apply to acquisitions of leasehold interests 
except if you use either:
    (1) Simplified lease acquisition procedures authorized by 570.2.
    (2) Two-phase design-build selection procedures authorized by 
570.105-2.
    (b) The contracting officer is designated as the source selection 
official unless the HCA appoints another individual for a particular 
leasing action or group of leasing actions.
    (c) You must include price or cost to the Government and past 
performance as evaluation factors in every case.
    (d) The SFO must comply with FAR 15.304 and either:
    (1) FAR 15.101-1 if you will use the tradeoff process.
    (2) FAR 15.101-2 if you will use the lowest price technically 
acceptable source selection process.


570.305  Two-phase design-build selection procedures.

    (a) These procedures apply to acquisitions of leasehold interests 
if you use the two-phase design-build selection procedures authorized 
by 570.105-2.
    (b) The SFO must include all the following information:
    (1) The scope of work.
    (2) The evaluation factors and subfactors to be used in evaluating 
phase-one proposals and their relative importance.
    (3) The maximum number of offerors to be selected to submit 
competitive proposals in phase-two.
    (4) The evaluation factors, including cost or price, and subfactors 
to be used in evaluating phase-two proposals and selecting the 
successful offeror, and their relative importance.
    (c) The following procedures apply to phase-one evaluation factors:
    (1) Phase one factors include:
    (i) Specialized experience and technical competence.
    (ii) Capability to perform.
    (iii) Past performance of the offeror's team (including architect-
engineer and construction members of the team).
    (iv) Other appropriate factors, such as site or location.

[[Page 37269]]

    (2) Do not require offerors to submit detailed design information 
or cost or price information in phase one. Do not use cost related or 
price related evaluation factors.
    (d) Set the maximum number of offerors to be selected for phase-two 
to not exceed five (5) unless you determine that a number greater than 
five is both:
    (1) In the government's interest.
    (2) Consistent with the purpose and objectives of the two-phase 
selection process.
    (e) In phase-two, require detailed technical and price proposals. 
Evaluate the proposals using the procedures in 570.306.


570.306  Evaluating offers.

    (a) You must evaluate offers solely in accordance with the factors 
and subfactors stated in the SFO.
    (b) Evaluate prices and document the lease file to demonstrate that 
the proposed contract price is fair and reasonable.
    (c) Evaluate past performance in accordance with FAR 15.305(a)(2).
    (d) Document the evaluation of award factors other than price 
listed in the solicitation. The file must include the basis for 
evaluation, an analysis of each offer, and a summary of findings.


570.307  Negotiations.

    (a) Follow the procedures in FAR 15.306 and 15.307 for exchanges 
(including clarifications, communications, negotiations, discussions, 
and revisions).
    (b) Place a written record of all exchanges in the lease file.
    (c) Provide prompt written notice to any offeror excluded from the 
competitive range or otherwise eliminated from the competition in 
accordance with FAR 15.503(a).


570.308  Award.

    (a) Make award to the responsible offeror whose proposal represents 
the best value after evaluation in accordance with the factors and 
subfactors in the SFO.
    (b) Make award in writing and in the timeframe specified in the 
SFO.
    (1) If you cannot make an award in that time, request in writing 
from each offeror an extension of the acceptance period through a 
specific date.
    (2) If time is critical, you may request the extensions orally. You 
must make a record of the requested and confirm it promptly in writing.
    (c) Notify unsuccessful offerors in writing or electronically in 
accordance with FAR 15.501 and 15.503(b).
    (d) The source selection authority may reject all proposals 
received in response to an SFO, if doing so is in the best interest of 
the Government.


570.309  Debriefings.

    The procedures of FAR 15.505 and 15.506 apply to leasing actions.

Subpart 570.4--Special Aspects of Contracting for Continued Space 
Requirements


570.401  Renewal options.

    (a) Exercise of options. Before exercising an option to renew, 
follow the procedures in 517.202 and 517.207. The contract must first 
provide the right to renew the lease.
    (b) Market survey. Before exercising an option to renew a lease, 
review current market information to ensure the rental rate in the 
option is fair and reasonable.


570.402  Succeeding leases.


570.402-1  General.

    (a) If a succeeding lease for the continued occupancy of space in a 
building does not exceed the simplified lease acquisition threshold, 
you may use the simplified procedures in 570.2. Explain the absence of 
competition in the contract file.
    (b) If a succeeding lease will exceed the simplified lease 
acquisition threshold, you may enter into the lease under either of the 
following conditions:
    (1) You do not identify any potential acceptable locations.
    (2) You identify potential acceptable locations, but a cost-benefit 
analysis indicates that award to an offeror other than the present 
lessor will result in substantial relocation costs or duplication of 
costs to the Government, and the Government cannot expect to recover 
such costs through competition.


570.402-2  Publicizing/Advertising.

    Publish a notice if required by 505.101(c). The notice should:
    (a) Indicate the Government's lease is expiring.
    (b) Describe the requirement in terms of type and quantity of 
space.
    (c) Indicate the Government is interested in considering 
alternative space if economically advantageous.
    (d) Advise prospective offerors that the Government will consider 
the cost of moving, alterations, etc., when deciding whether it should 
relocate.
    (e) Provide a contact person for those interested in providing 
space to the Government.


570.402-3  Market survey.

    Conduct a market survey following 570.301.


570.402-4  No potential acceptable locations.

    If you do not identify any potential acceptable locations through 
the advertisement or the market survey, you may prepare a justification 
to negotiate directly with the present lessor. Fully document the 
efforts to locate alternative sources. Prepare the justification and 
obtain approval following FAR 6.3 and 506.3.


570.402-5  Potential acceptable locations.

    If you identify potential acceptable locations through the 
advertisement or market survey, conduct a cost-benefit analysis 
following the procedures in 570.402-6. Based on the results of the 
cost-benefit analysis, take appropriate action as follows:
    (a) If the cost-benefit analysis indicates that the Government will 
recover relocation costs and duplication of costs through competition, 
develop an SFO and negotiate with all interested parties following 
570.3.
    (b) If the cost-benefit analysis indicates that the Government 
cannot expect to recover relocation costs and duplication of costs 
through competition, prepare a justification for approval in accordance 
with FAR 6.3 and 506.3. Explain both:
    (1) How you performed the cost-benefit analysis.
    (2) That the cost-benefit analysis indicates that award to any 
other offeror will likely result in substantial costs to the Government 
that the Government cannot expect to recover through competition.


570.402-6   Cost-benefit analysis.

    (a) The cost-benefit analysis must consider all the following:
    (1) The prices of other potentially available properties.
    (2) Relocation costs, including estimated costs for moving, 
telecommunications, and alterations, amortized over the firm term of 
the lease.
    (3) Duplication of costs to the Government.
    (4) Other appropriate considerations.
    (b) Establish the prices for other potentially available properties 
by requesting each prospective offeror to provide an informational 
quotation for standard space for comparison purposes.
    (1) Adjust the prices quoted for standard space for any special 
requirements.
    (2) You do not need a formal SFO to obtain the informational 
quotation. However, you must provide a general description of the 
Government's needs.

[[Page 37270]]

    (3) If you obtain oral quotations, document the following 
information, as a minimum:
    (i) Name and address of the firm solicited.
    (ii) Name of the firm's representative providing the quote.
    (iii) Price(s) quoted.
    (iv) Description of the space and services for which the quote is 
provided.
    (v) Name of the Government employee soliciting the quotation.
    (vi) Date of the conversation.
    (4) Compare the informational quotations to the present lessor's 
price, adjusted to reflect the anticipated price for a succeeding 
lease.


570.403   Expansion requests.

    (a) If the expansion space is in the general scope of the lease, 
you may acquire the space through a modification without further 
justification under FAR 6.3.
    (b) If the expansion space needed is outside the general scope of 
the lease, determine whether it is more prudent to provide the 
expansion space by supplemental agreement to the existing lease or to 
satisfy the requirement by competitive means.
    (1) Conduct a market survey to determine the availability of 
suitable alternative locations.
    (2) If you identify alternate locations that can satisfy the total 
requirement, perform a cost-benefit analysis to determine whether it is 
in the Government's best interest to relocate. Consider, as 
appropriate.
    (i) The cost of the alternate space compared to the cost of 
expanding at the existing location.
    (ii) The cost of moving.
    (iii) The cost of duplicating existing improvements.
    (iv) The cost of the unexpired portion of the firm lease term. If a 
termination is possible, use the actual cost of such an action.
    (v) the cost of disruption to the agency's operation.
    (c) If you determine not to use competitive procedures and the 
expansion space is outside the general scope of the lease:
    (1) If the estimated value of the acquisition does not exceed the 
simplified lease acquisition threshold, document the file as required 
by 570.203-2(b).
    (2) If the estimated value of the acquisition exceeds the 
simplified lease acquisition threshold, prepare a justification for 
approval under FAR 6.3 and 506.3.


570.404   Superseding leases.

    (a) Consider executing a superseding lease to replace an existing 
lease when the Government need numerous or detailed modifications to 
the space that would cause complications or substantially change the 
present lease.
    (b) If the value of the superseding lease exceeds the simplified 
lease acquisition threshold, the justification and approval 
requirements in FAR 6.3 and 506.3 apply. If the cost does not exceed 
the simplified lease acquisition threshold, you may use the simplified 
procedures in 570.2 and explain the absence of competition in the file.


570.405  Lease extensions.

    (a) This section applies to extension of the term of a lease to 
provide for continued occupancy on a short-term basis.
    (b) If the value of a lease extension will exceed the simplified 
lease acquisition threshold, the justification and approval 
requirements in FAR 6.3 and 506.3 apply. For extensions that will not 
exceed the simplified lease acquisition threshold, you may use the 
simplified procedures in 570.2 and explain the absence of competition 
in the file.
    (c) FAR 6.302-1 permits contracting without providing for full and 
open competition when the property or services needed by the agency are 
available from only one responsible source and no other type of 
property or services will satisfy the needs of the agency. This 
authority may apply to lease extensions in situations such as the 
following:
    (1) The agency occupying the leased space is scheduled to move into 
other Federally controlled space, but encounters unexpected delays in 
preparing the new space for occupancy.
    (2) The Government encounters unexpected delays outside of its 
control in acquiring replacement space.
    (3) The Government is consolidating various agencies occupying the 
leased space and you need to extend the terms of some leases to 
establish a common expiration date.

Subpart 570.5--Special Aspects of Contracting for Lease Alterations


570.501  General.

    (a) Acquire alterations through a modification to an existing lease 
if you meet all the following conditions:
    (1) The alterations fall in the general scope of the lease. 
Consider whether the work can be regarded as fairly and reasonably an 
inseparable part of the lease requirement originally contracted for.
    (2) The lessor is willing to perform the proposed alterations at a 
fair and reasonable price.
    (3) It is in the Government's interest to acquire the alterations 
from the lessor.
    (b) If proposed alterations are outside the general scope of the 
existing lease, decide whether to acquire the alterations through 
either:
    (1) A supplemental lease agreement, justified and approved under 
570.502-1.
    (2) Government performance or a separate contract. The lease must 
first provide the Government the right to perform alterations to the 
leased space.


570.502  Alterations by the lessor.

    These procedures apply to alterations you acquire directly from a 
lessor by modification or supplement lease agreement.


570.502-1  Justification and approval requirements.

    If the proposed alterations are outside the general scope of the 
lease and you plan to acquire them from the lessor without competition, 
the following justification and approval requirements apply:
    (a) If the alteration project will exceed the simplified lease 
acquisition threshold, the justification and approval requirements in 
FAR 6.3 and 506.3 apply.
    (b) If the alteration project will exceed $2,500, but not the 
simplified lease acquisition threshold, you may use simplified 
acquisition procedures and explain the absence of competition in the 
file.
    (c) If the alternation project will not exceed $2,500, no 
justification and approval is required.


570.502-2  Procedures.

    (a) Scope of work. Prepare a scope of work for each alteration 
project.
    (b) Independent Government estimate. Obtain an independent 
Government estimate for each alteration project, including changes to 
existing alteration agreements with the lessor.
    (c) Request for proposal.
    (1) Provide the scope of work to the lessor, including any plans 
and specifications, and request a proposal. Indicate in the request for 
proposal if the Government will make progress payments and provide for 
retainage, when appropriate.
    (2) Request sufficient cost or price information to permit a price 
analysis.
    (d) Audits. If you require cost or pricing data and the alteration 
project will exceed $500,000, request an audit.
    (3) Proposal evaluation.

[[Page 37271]]

    (1) Determine if the proposal meets the Government's requirements.
    (2) Analyze price or cost. At a minimum, compare the proposed cost 
to the independent estimate and, if applicable, any audit received.
    (3) Analyze profit following FAR 15.404-4.
    (4) Document your analysis under this paragraph and the resulting 
negotiation objectives.
    (f) Price negotiations.
    (1) Exercise sound judgment. You may make reasonable compromises as 
necessary.
    (2) The negotiated price should provide the lessor with the 
greatest incentive for efficient and economical performance.
    (3) Document negotiations in the contract file.
    (g) Award. Use GSA Form 276, Supplemental Lease Agreement. If the 
modification does not exceed the simplified acquisition threshold, you 
may use GSA Form 300, Order for Supplies or Services. Reference the 
lease on the form.
    (h) Inspection and payment. Do not make final payment for 
alterations until the work is:
    (1) Inspected by a qualified Government employee or independent 
Government contractor.
    (2) Confirmed as completed in a satisfactory manner.


570.503  Alterations by the Government or through a separate contract.

    (a) If the Government chooses to exercise its right to make the 
alterations rather than contracting directly with the lessor, the 
Government may either:
    (1) Have Federal employees perform the work.
    (2) Contract out the work using standard contracting procedures 
that apply to a construction contract performed on Federal property.
    (b) If the Government decides to contract for the work, invite the 
lessor, as well as all other prospective contractors, to submit an 
offer for the project.

Subpart 570.6--Solicitation Provisions and Contract Clauses


570.601  FAR provisions and clauses.

    Include provisions or clauses substantially the same as the 
following FAR provisions and clauses.

------------------------------------------------------------------------
           If . . .                        Then include . . .
------------------------------------------------------------------------
(a) the estimated value of     52.204-3  Taxpayer Identification.
 the acquisition exceeds       52.219-1  Small Business Program
 $2,500.                        Representations.
                               52.222-36  Affirmative Action for Workers
                                with Disabilities.
                               52.232-23  Assignment of Claims.
                               52.233-1  Disputes.
(b) the estimated value of     52.222-21  Prohibition of Segregated
 the acquisition exceeds        Facilities.
 $10,000.                      52.222-22  Previous Contracts and
                                Compliance Reports.
                               52.222-25  Affirmative Action Compliance.
                               52.222-26  Equal Opportunity.
                               52.222-35  Affirmative Action for
                                Disabled Veterans and Veterans of the
                                Vietnam Era.
                               52.222-37  Employment Reports on Disabled
                                Veterans and Veterans of the Vietnam
                                Era.
(c) the estimated value of     52.209-6  Protecting the Government's
 the acquisition exceeds        Interest when Subcontracting with
 $25,000.                       Contractors Debarred, Suspended, or
                                Proposed for Debarment.
(d) the estimated value of     52.203-11  Certification and Disclosure
 the acquisition exceeds        Regarding Payments to Influence Certain
 $100,000.                      Federal Transactions.
(e) the estimated value of     52.203-2  Certificate of Independent
 the acquisition exceeds the    Price Determination.
 simplified lease acquisition  52.203-7  Anti-Kickback Procedures.
 threshold.                    52.209-5  Certification Regarding
                                Debarment, Suspension, Proposed
                                Debarment, and Other Responsibility
                                Matters.
                               52.215-2  Audit and Records--Negotiation.
                               52.219-8  Utilization of Small Business
                                Concerns.
                               52.223-6  Drug-Free Workplace.
                               52.233-2  Service of Protest.
(f) the estimated value of     52.219-9  Small Business Subcontracting
 the acquisition exceeds        Plan.
 $500,000.                     52.219-16  Liquidated Damages--
                                Subcontracting Plan.
(g) the estimated value of     52.219-24  Small Disadvantaged Business
 the acquisition exceeds        Participation Program--Targets.
 $500,000 and the acquisition  52.219-25  Small Disadvantaged Business
 includes an evaluation         Participation Program--Disadvantaged
 factor that considers the      Status and Reporting.
 extent of participation of
 small disadvantaged business
 concerns in accordance with
 FAR 19.12.
(h) the estimated value of     52.222-24  Preaward On-Site Equal
 the acquisition exceeds $10    Opportunity Compliance Review.
 million.
(i) you require cost or        52.215-10  Price Reduction for Defective
 pricing data for work or       Cost or Pricing Data.
 services exceeding $500,000.  52.215-12  Subcontractor Cost or Pricing
                                Data.
(j) you authorize submission   52.215-5  Facsimile Proposals.
 of facsimile proposals.
(k) a negotiated acquisition   52.219-26  Small Disadvantaged Business
 provides monetary incentives   Participation Program--Incentive
 based on actual achievement    Subcontracting.
 of small disadvantaged
 business subcontracting
 targets under FAR 19.1203
 and 519.1203.
------------------------------------------------------------------------


[[Page 37272]]

570.602  GSAR solicitation provisions.

    Each SFO must include provisions substantially the same as the 
following, unless you determine that the provision is not appropriate:

552.270-1  Instructions to Offerors--Acquisition of Leasehold 
Interests in Real Property. Use Alternate I if you decide that it is 
advantageous to the Government to allow offers to be submitted up to 
the exact time specified for award. Use Alternate II if the 
Government intends to award without discussions. These two 
alternates are not exclusive.
552.270-2  Historic Preference.
552.270-3  Parties to Execute Lease.


570.603  GSAR contract clauses.

    Insert clauses substantially the same as the following in 
solicitations and contracts for leasehold interests in real property 
that exceed the simplified lease acquisition threshold, unless you 
determine that a clause is not appropriate. You do not require a 
deviation under 570.604 to determine that a clause in this section is 
not appropriate. Use the clauses at your discretion in actions at or 
below the simplified lease acquisition threshold.

552.270-4  Definitions. You must use this clause if you use 570.270-
28.
552.270-5  Subletting and Assignment.
552.270-6  Maintenance of Building and Premises--Right of Entry.
552.270-7  Fire and Casualty Damage.
552.270-8  Compliance with Applicable Law.
552.270-9  Inspection--right of Entry.
552.270-10  Failure in Performance.
552.270-11  Successors Bound.
552.270-12  Alterations.
552.270-13  Proposals for Adjustment.
552.270-14  Changes.
552.270-15  Liquidated Damages. Insert this clause in solicitations 
and contracts if you have a critical requirement to meet the 
delivery date and you cannot establish an actual cost for the loss 
to the Government resulting from late delivery.
552.270-16  Adjustment for Vacant Premises.
552.270-17  Delivery and Condition.
552.270-18  Default in Delivery--Time Extensions.
552.270-19  Progressive Occupancy.
552.270-20  Payment.
552.270-21  Effect of Acceptance and Occupancy.
552.270-22  Default by Lessor During the Term.
552.270-23  Subordination, Nondisturbance and Attornment
552.270-24  Statement of Lease.
552.270-25  Substitution of Tenant Agency.
552.270-26  No Waiver.
552.270-27  Integrated Agreement.
552.270-28  Mutuality of Obligation.
552.270-29  Acceptance of Space.


570.604  Deviations to provisions and clauses.

    (a) You need a deviation approved under 501.4 to omit any required 
provision or clause.
    (b) You also need an approved deviation to modify the language of a 
provision or clause mandated by statute (e.g., GSAR 552.203-5, Covenant 
Against Contingent Fees, FAR 52.215-2, Audit and Records--Negotiation). 
The authorizing statue must allow for a waiver.
    (c) Certain clauses required by non-GSA regulations require 
approval of the issuing agency before you can delete or modify them. 
For example, 52.222-26, Equal Opportunity; 52.222-35, Affirmative 
Action for Disabled Veterans and Veterans of the Vietnam Era; and 
52.222-36, Affirmative Action for Workers with Disabilities, require 
the approval of the Department of Labor's Office of Federal Contract 
Compliance Programs before they can be deleted from or modified in the 
SFO or lease.

Subpart 570.7 Forms


570.701  Standard forms.

    Use Standard Form 2, U.S. Government Lease for Real Property, to 
award leases unless you use GSA Form 3626 (see 570.702). Delete the 
reference to the Standard Form 2-A in paragraph 7.


570.702  GSA forms.

    (a) You may use GSA Form 3626, U.S. Government Lease for Real 
Property (Short Form), to award leases if you use the simplified 
leasing procedures in 570.2 or if you determine it advantageous to use.
    (b) You may use GSA Form 276, Supplemental Lease Agreement, for 
actions requiring the agreement of both parties. This includes actions 
such as amending an existing lease to acquire additional space, 
obtaining partial release of space, revising the terms of a lease, 
settling restoration claims, and acquiring alterations.
    (c) You may use GSA Form 1364, Proposal To Lease Space, to obtain 
offers from prospective offerors.
[FR Doc. 99-15961 Filed 7-8-99; 8:45 am]
BILLING CODE 6820-61-M