[Federal Register Volume 64, Number 154 (Wednesday, August 11, 1999)]
[Rules and Regulations]
[Pages 43618-43634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20556]


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DEPARTMENT OF STATE

48 CFR Parts 601, 602, 603, 604, 605, 606, 608, 609, 610, 611, 613, 
614, 615, 616, 617, 619, 622, 623, 625, 626, 628, 629, 630, 631, 
632, 633, 634, 636, 637, 639, 641, 642, 643, 644, 645, 646, 647, 
649, 652 and 653

[Public Notice #3025]
RIN 1400-AA71


Office of the Procurement Executive; Department of State 
Acquisition Regulation (DOSAR)

AGENCY: Office of the Procurement Executive, Department of State.

ACTION: Final rule.

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SUMMARY: This rule makes final a proposed rule published for comment on 
November 30, 1998 (63 FR 65728) amending the Department of State 
Acquisition Regulation (DOSAR). The final rule also contains several 
miscellaneous amendments and corrections not published on November 30, 
1998, as outlined below.

EFFECTIVE DATE: August 11, 1999.


[[Page 43619]]


FOR FURTHER INFORMATION CONTACT: Gladys Gines, Procurement Analyst, 
Department of State, Office of the Procurement Executive, 2201 C Street 
NW, Suite 603, State Annex Number 6, Washington, DC 20522-0602; 
telephone (703) 516-1691; e-mail address: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On November 30, 1998 (63 FR 65728), the Department of State 
proposed amendments to the DOSAR to reflect numerous miscellaneous 
changes, additions, and deletions dealing with internal or 
administrative matters. The proposed rule also eliminated certification 
requirements that were not specifically imposed by statute, and added 
one new certification required by statute and one new certification not 
required by statute but justified in accordance with section 29 of 
Public Law 104-106 (the Federal Acquisition Reform Act of 1996). 
Finally, the proposed rule eliminated internal coverage from the 
codified section of the DOSAR.
    No comments were received during the public comment period, which 
ended on January 29, 1999. This rule makes final the amendments, as 
revised, proposed on November 30, 1998.

II. Amendments Not Contained in Proposed Rule

    The final rule also contains several amendments and corrections to 
the proposed rule. These amendments are the result of several changes 
which have taken place during the comment period. They are as follows:
     DOSAR section 604.502 is revised to conform to FAR 
numbering changes made in FAC 97-9.
     DOSAR section 609.406-3(a)(1) is revised to reflect 
coordination through the Office of the Procurement Executive of Office 
of the Inspector General investigation reports that involve possible 
criminal or fraudulent activities by contractors.
     DOSAR sections 614.201-6, 614.201-6-70, 615.209, and 
615.209-70 are being removed. These sections contained the prescription 
for the provision at 652.214-71, Authorization to Perform. The 
Department has determined that this provision should be a contract 
clause, since it contains requirements that the successful offeror must 
adhere to following contract award, i.e., having the appropriate 
licenses, permits, etc. Since it is a contract clause, the prescription 
is moved to 642.271(b). The clause is renamed as ``Authorization and 
Performance'', revised slightly, and renumbered as 652.242-73.
     DOSAR section 617.105-1(d) is being revised to better 
reflect current Administration policy as set forth in OMB Circulars A-
11 and A-34. This section contained language regarding three options to 
finance cancellation costs of multiyear contracts. However, the current 
policy as stated in OMB Circulars A-11 and A-34 is to allow only the 
first option (cancellation costs incurred shall be paid from 
appropriations originally available for the performance of the 
contract). The policy is to fully fund usable segments and to obligate 
cancellation costs as part of the original contract, as currently 
stated in FAR 17.104(c). Therefore, DOSAR 617.105-1(d) is revised to 
state that every multiyear contract must comply with FAR 17.104(c) 
unless an exception is approved through the budget process in 
coordination with the cognizant comptroller.
     DOSAR 617.502 is removed, and a new section 617.503 is 
added, as the determination and findings requirements for Economy Act 
interagency agreements are now located in FAR 17.503.
     DOSAR 633.214-70(c)(4), (c)(5), and (c)(6)(iii) are 
revised to delete references to the Army Corps of Engineers IWR 
pamphlets and the Administrative Conference of the U.S. publication on 
mediation. These documents are no longer available in hard copy. 
Reference to an Internet site for obtaining information on alternative 
disputes resolution is provided instead.
     DOSAR 633.270-1, 633.270-2, and 633.270-3 are revised to 
reflect the transfer of certain appellate and review functions from the 
Armed Services Board of Contract Appeals to the General Services Board 
of Contract Appeals. Related reference changes are made to 633.214-
70(c) and (c)(2).
     DOSAR 637.104-70 is revised to add a new paragraph (i) 
describing the authority for the Bureau of Diplomatic Security to issue 
personal services contracts in accordance with section 206 of Pub. L. 
99-399, as amended by the Emergency Supplemental Appropriations Act of 
1998.
     DOSAR 642 is revised to correct the headings of Part 642 
and Subpart 642.2. A new paragraph (b) is added to 642.271, as 
discussed above.
    These amendments and corrections do not affect the public, and 
therefore good cause exists to publish the amendments for effect 
without first soliciting public comment because prior public comment is 
unnecessary. The amendments are for the purpose of implementing 
internal changes and making minor corrections.

III. Regulatory Flexibility Act

    The Department of State certifies that this regulation will not 
have a significant economic impact on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). A 
Regulatory Flexibility Analysis has, therefore, not been performed.

IV. Unfunded Mandates Act of 1995

    The Unfunded Mandates Act of 1995 requires agencies to prepare 
several analytical statements before proposing any rule that may result 
in annual expenditures of $100 million of State, local, and Indian 
tribal governments or the private sector. Since this final rule will 
not result in expenditures of this magnitude, the Department certifies 
that such statements are not necessary.

V. Executive Order 12866

    This final rule has been reviewed under Executive Order 12866 by 
the Office of Management and Budget.

VI. Paperwork Reduction Act

    The information collection requirements contained in this rule have 
been approved under the Paperwork Reduction Act of 1980 by OMB, and 
were assigned control number 1405-0050.

List of Subjects in 48 CFR Parts 601, 602, 603, 604, 605, 606, 608, 
609, 610, 611, 613, 614, 615, 616, 617, 619, 622, 623, 625, 626, 
628, 629, 630, 631, 632, 633, 634, 636, 637, 639, 641, 642, 643, 
644, 645, 646, 647, 649, 652 and 653

    Government procurement.

    Accordingly, title 48, chapter 6 of the Code of Federal Regulations 
is amended as follows:
    1. The authority citation for 48 CFR Parts 601, 602, 603, 604, 605, 
606, 608, 609, 610, 614, 616, 617, 619, 620, 622, 623, 625, 626, 628, 
629, 630, 631, 632, 633, 634, 636, 637, 639, 642, 643, 645, 646, 647, 
649, 652, 653 continues to read as follows:

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

SUBCHAPTER A--GENERAL

PART 601--DEPARTMENT OF STATE ACQUISITION REGULATION

    2. Section 601.105 is redesignated as section 601.106. New sections 
601.105 and 601.105-3, are added to read as follows:

[[Page 43620]]

601.105  Issuance.


601.105-3  Copies.

    The DOSAR is available on CD-ROM disks through the Department's 
INFOEXPRESS program, or through the Internet from A/OPE's Acquisition 
Website. The Internet address is: http://www.statebuy.gov/home.htm
    3. Newly designated section 601.106 is revised to read as follows:


601.106  OMB Approval under the Paperwork Reduction Act.

    The Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520) requires 
that Federal agencies obtain approval from the Office of Management and 
Budget before collecting information from ten (10) or more members of 
the public. Individuals are not required to respond to information 
collection unless the OMB number and burden estimate information is 
provided. Accordingly, the information and recordkeeping requirements 
contained in this regulation have been approved by OMB under OMB 
Control Number 1405-0050. The burden estimate is 225,302 hours.


601.301  [Amended]

    4. Section 601.301 is amended by redesignating paragraph (a)(1) as 
paragraph (a) and by removing paragraph (a)(2) in its entirety.


601.302  [Amended]

    5. Section 601.302 is amended in the first sentence of paragraph 
(a) by removing the words ``and leases of real and personal property''.


601.303  [Amended]

    6. Section 601.303 is amended by correcting the citation at the end 
of paragraph (c) to read ``FAR 1.105-2(c)''.


601.471  [Removed]

    7. Section 601.471 is removed.
    8. The heading of Subpart 601.6 is revised to read as follows:

Subpart 601.6--Career Development, Contracting Authority, and 
Responsibilities


601.602-3 and 601.602-3-70  [Removed]

    9. Section 601.602-3, and section 601.602-3-70, are removed.
    10. Section 601.603-3 is amended by adding a title to paragraph 
(a); by revising the second sentence of paragraph (a); by revising 
paragraph (b) in its entirety; and, by adding a new paragraph (d), to 
read as follows:


601.603-3  Appointment.

    (a) General. * * * The Procurement Executive appoints all DOS 
contracting officers, in conformance with FAR 1.603-3, with the one 
exception as noted in paragraph (b) of this section. * * *
    (b) Temporary warrants. The Chief of Mission is delegated the 
authority by the Procurement Executive to issue temporary contracting 
officer warrants for periods up to 90 calendar days in order to cover 
emergency, post-specific operational requirements (e.g., staffing gaps, 
medical evacuations, extended leave, etc.). These temporary 
appointments shall be executed on the Standard Form 1402, and a copy 
shall be furnished to A/OPE. The warrant shall contain both a dollar 
limitation of no more than $100,000 and a specific time period (not to 
exceed 90 days) during which the warrant is effective.
* * * * *
    (d) Personal services agreements. Individuals who may sign personal 
services agreements (PSAs) are limited to the following:
    (1) An individual, or class of individuals, granted authority by 
the Director, PER/OE; or
    (2) Individuals with contracting officer certificates of 
appointment.


601.603-70  Amended

    11. Section 601.603-70 is amended--
    (a) By adding a period after the words ``and services'' and 
removing the words ``; to sell personal property; and to lease real 
property.'' in the first sentence of paragraph (a)(1) introductory 
text;
    (b) By adding a period after the words ``Deputy Assistant Secretary 
of State for Foreign Buildings'' and removing the words ``and to the 
Director for Acquisitions as the HCA.'' in paragraph (a)(2);
    (c) By removing the heading ``Office of Acquisition'' and inserting 
``Office of Logistics Management; Office of Acquisition Management (A/
LM/AQM)'' in its place; and by removing the words ``and Deputy Director 
as the HCA'' and inserting ``or designee as the HCA'' in their place in 
paragraph (a)(3);
    (d) By removing the word ``and'' before the word ``construction'' 
and removing the word ``of'' after ``construction'' and by adding the 
words ``and supplies for'' after the word ``construction'' in paragraph 
(a)(7);
    (e) By adding the word ``supplies,'' after the word ``subsystems,'' 
in paragraph (a)(8);
    (f) By revising paragraph (a)(9) to read as indicated below;
    (g) By removing the words ``Office of Acquisition'' and inserting 
the acronym ``A/LM/AQM'' in their place in the second sentence of 
paragraph (b) introductory text;
    (h) By removing the words ``schedule contracts'' and inserting the 
words ``existing contracts up to the maximum ordering threshold or 
limitation'' in their place in paragraphs (b)(1) through (b)(6); and
    (i) By adding a new paragraph (b)(7), to read as follows:


601.603-70  Delegations of authority.

    (a) * * *
    (9) Regional Procurement Support Offices. The authority to enter 
into and administer contracts for the expenditure of funds involved in 
the acquisition of supplies, equipment, publications, and services on 
behalf of overseas posts is delegated to each Director, Regional 
Procurement Support Office (RPSO) as the HCA at the following 
locations:
    (i) RPSO Germany in conjunction with Embassy Bonn and Consulate 
General Frankfurt;
    (ii) RPSO Tokyo in conjunction with Embassy Tokyo;
    (iii) RPSO Singapore in conjunction with Embassy Singapore; and,
    (iv) RPSO Florida in conjunction with the Florida Regional Center.
    (b) * * *
    (7) Office of Small and Disadvantaged Business Utilization. The 
authority to enter into and administer 8(a) purchase orders and 
contracts as a third party pursuant to the Memorandum of Understanding 
signed with the Small Business Administration.


601.670  [Removed]

    12. Section 601.670 is removed.

PART 602--DEFINITIONS OF WORDS AND TERMS

    13. Section 602.101-70 is amended by removing the definition of 
``local procurement''; and by adding, in alphabetical order, a 
definition of ``major system'' to read as follows:


602.101-70  DOSAR definitions.

* * * * *
    Major system has the same definition as described in FAR 2.101; 
however, the Department of State's dollar threshold as defined in 
paragraph (b) is $30 million. The Under Secretary for Management is the 
head of the agency for the purposes of paragraph (c).
* * * * *

PART 603--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    14. Subpart 603.1 is revised to read as follows:

Subpart 603.1--Safeguards

Sec.
603.104  Procurement integrity.
603.104-5  Disclosure, protection, and marking of contractor bid or 
proposal information and source selection information.

[[Page 43621]]

603.104-10  Violations or possible violations.

Subpart 603.1--Safeguards


603.104  Procurement integrity.


603.104-5  Disclosure, protection, and marking of contractor bid or 
proposal information and source selection information.

    (a) The following classes of persons may be authorized to receive 
contractor bid or proposal information or source selection information 
by the contracting officer or head of the contracting activity, who is 
the agency head's designee, when such access is necessary to the 
conduct of an acquisition:
    (1) Individuals involved in the selection process, such as the 
Contracting Officer's Representative, technical evaluators, advisors, 
consultants, and the Source Selection Official;
    (2) Clerical personnel directly involved in the acquisition;
    (3) Supervisors in the contracting officer's chain of command;
    (4) Contracting personnel involved in reviewing or approving the 
solicitation, contract, or contract modification;
    (5) Individuals from offices who may be required to perform pre-
award audits, such as DCAA; and,
    (6) Personnel in the following offices: Office of Small and 
Disadvantaged Business Utilization (A/SDBU), Office of the Legal 
Adviser, Office of Legislative Affairs, Office of the Inspector 
General, Office of the Procurement Executive, the Small Business 
Administration, and the Office of Federal Contract Compliance Programs 
(Department of Labor).
    (c) All information which is considered proprietary or source 
selection information shall be marked to prevent its unauthorized 
disclosure before award. This may be performed by marking each page of 
proprietary or source selection material with the statement ``Source 
Selection Information--See FAR 3.104'' or ``Proprietary Information--
See FAR 3.104'', as applicable. Alternatively, this requirement may be 
met by attaching Forms DS-1926, Proprietary Information (Cover Page), 
and DS-1927, Source Selection Information (Cover Page), to any 
proprietary and source selection information. Individuals responsible 
for preparing derivative documents which reference, cite, or paraphrase 
proprietary or source selection information, are responsible for 
marking such documents as indicated in this paragraph. The required 
marking or cover page shall be included when technical proposals are 
submitted for evaluation and when an audit is requested. After award, 
the procedures governing the Freedom of Information Act and related 
laws/regulations shall be followed regarding release of proprietary or 
source selection information.


603.104-10  Violations or possible violations.

    (a)(1) The contracting officer shall report any violation or 
possible violation to the head of the contracting activity after he or 
she has reviewed the documentation and has concluded that there is no 
impact on the acquisition.
    (d)(2)(ii)(B) The Procurement Executive is the agency head's 
designee for the purposes of FAR 3.104-10(d)(2)(ii)(B).


603.203  [Removed]

    15. Section 603.203 is removed.

Subpart 603.3--[Removed]

    16. Subpart 603.3, consisting of section 603.303, is removed.
    17. Section 603.405 is added to read as follows:


603.405  Misrepresentations or violations of the Covenant Against 
Contingent Fees.

    (a) The contracting officer may request the Office of the Inspector 
General to develop further information if the facts available are 
deemed insufficient to determine whether an actual violation has 
occurred. The contracting officer may also obtain the advice of the 
Office of the Legal Adviser as to the legality and general propriety of 
any information disclosed.


603.408 and 603.408-1  [Removed]

    18. Section 603.408, and section 603.408-1, are removed.


603.670  [Removed]

    19. Section 603.670 is removed.
    20. Subpart 603.9 is added to read as follows:

Subpart 603.9--Whistleblower Protections for Contractor Employees

Sec.
603.905  Procedures for investigating complaints.
603.906  Remedies.

Subpart 603.9--Whistleblower Protections for Contractor Employees


603.905  Procedures for investigating complaints.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 3.905.


603.906  Remedies.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 3.906.

PART 604--ADMINISTRATIVE MATTERS

Subpart 604.2--[Removed]

    21. Subpart 604.2, consisting of section 604.202, is removed.

Subpart 604.4--[Removed]

    22. Subpart 604.4, consisting of sections 604.404 and 604.404-70, 
is removed.
    23. Subpart 604.5 is added to read as follows:

Subpart 604.5--Electronic Commerce in Contracting


604.502  Policy.

    The Assistant Secretary of State for Administration is the agency 
head for the purposes of FAR 4.502.

Subpart 604.70--[Removed]

    24. Subpart 604.70, consisting of sections 604.7001 and 604.7002, 
is removed.

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

PART 605--PUBLICIZING CONTRACT ACTIONS


605.202-70  [Amended]

    25. Section 605.202-70 is amended by removing the date ``June 15, 
1998'' and inserting the date ``May 19, 2001'' in its place in the last 
sentence of paragraph (a).


605.207  [Removed]

    26. Section 605.207 is removed.


605.303  [Amended]

    27. Section 605.303 is amended by inserting a comma and by adding 
the words ``upon request,'' after the word ``Affairs'' in the first 
sentence of paragraph (a).

PART 606--COMPETITION REQUIREMENTS

Subpart 606.1--[Removed]

    28. Subpart 606.1, consisting of sections 606.101 and 606.101-70, 
is removed.


606.302-6  [Amended]

    29. Section 606.302-6 is amended by removing ``E.O. 12356'' and 
``Executive Order 12356'' and inserting ``Executive Order 12958'' in 
its place wherever it appears in paragraphs (c)(1) introductory text 
and (c)(1)(vi).


606.304  [Amended]

    30. Section 606.304 is amended in paragraph (a)(2) by removing the

[[Page 43622]]

amounts ``$100,000'' and ``$1,000,000'' and inserting ``$500,000'' and 
``$10,000,000'' in their place, respectively.
    31. Section 606.501 is amended by revising the first sentence of 
paragraph (b) to read as follows:


606.501  Requirement.

* * * * *
    (b) A contracting activity competition advocate has been designated 
for A/LM/AQM. * * *
    32. Section 606.570 is revised to read as follows:


606.570  Solicitation provision.

    The contracting officer shall insert the provision at 652.206-70, 
Competition Advocate/Ombudsman, in all solicitations exceeding the 
simplified acquisition threshold.

PART 608--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    33. Part 608, consisting of subpart 608.3 and section 608.302, is 
removed.

PART 609--CONTRACTOR QUALIFICATIONS

    34. Section 609.206, and section 609.206-1, are added to read as 
follows:


609.206  Acquisitions subject to qualification requirements.


609.206-1  General.

    (b) The authority prescribed in FAR 9.206-1(b) is delegated, 
without power of redelegation, to the head of the contracting activity.
    35. Section 609.404 is amended by revising the section heading to 
read as follows:


Sec. 609.404   List of parties excluded from federal procurement and 
nonprocurement programs.

    36. Section 609.405 is amended by revising paragraphs (d)(4)(i) and 
(d)(4)(ii) to read as follows:


Sec. 609.405   Effect of listing.

* * * * *
    (d) * * *
    (4)(i) For procurement actions (both domestic and overseas) that do 
not exceed the simplified acquisition threshold, contracting officers 
need not consult the ``List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs'' prior to award. The list 
should be consulted whenever the contracting officer has reason to 
believe that a proposed contractor may appear on the list.
    (ii) Contracting officers at domestic contracting activities shall 
review the ``List of Parties Excluded from Federal Procurement and 
Nonprocurement Programs'', either in hard copy or electronic form, 
prior to awarding a procurement action exceeding the simplified 
acquisition threshold.
    37. Section 609.406-3 is amended in paragraph (a)(1) by adding the 
following two sentences to the end of the paragraph; and, in paragraph 
(b)(7) by removing the number ``10'' and inserting the number ``30'' in 
its place:


Sec. 609.406-3   Procedures.

    (a)(1) * * * The Office of the Inspector General shall provide to 
the Procurement Executive a copy of its investigation report. The 
contracting officer shall provide to the Procurement Executive a copy 
of his or her intended actions in response to the Office of the 
Inspector General report.
* * * * *
    38. Subpart 609.5 is amended by revising the heading to read as 
follows:

Subpart 609.5--Organizational and Consultant Conflicts of Interests

PART 610--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE 
DESCRIPTIONS

    39. Part 610, consisting of sections 610.002 and 610.002-70, is 
removed.
    40. Part 611 is added to subchapter B to read as follows:

PART 611--DESCRIBING AGENCY NEEDS

Sec.
611.002  Policy.
611.002-70  Metric system implementation.

Subpart 611.1--Selecting and Developing Requirements Documents

611.103  Market acceptance.

Subpart 611.5--Liquidated Damages

611.502  Policy.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

611.002   Policy.


611.002-70   Metric system implementation.

    (a) Policy. The Metric Conversion Act of 1975, as amended by the 
Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 205a, et 
seq.), requires Federal agencies to establish implementing guidelines 
pursuant to metric policy to adopt the metric system as the preferred 
system of weights and measurements for United States trade and 
commerce. This section establishes the Department of State's metric 
conversion guidelines.
    (b) Applicability. This section applies to all DOS acquisitions, 
except to the extent that such use is impractical or is likely to cause 
significant inefficiencies or loss of markets to U.S. firms.
    (c) Definitions. 
    Dual system means the use of both traditional and metric systems. 
For example, an item is designated, produced and described in inch-
pound values with soft metric values also shown for information or 
comparison.
    Hard metric means the use of only standard metric (SI) measurements 
in specifications, standards, supplies and services.
    Hybrid system means the use of both traditional and hard metric 
values in specifications, standards, supplies and services.
    Measurement sensitive means any item having an application or 
meaning depending substantially on some measured quantity. For example, 
measurement sensitive items include product or performance criteria and 
standards binding on others, such as emission levels, size and weight 
limitations, etc.
    Metric system means the International System of Units (Le System 
International d'Unites (SI)) of the International Bureau of Weights and 
Measures.
    Metrication means any act that increases metric system use, 
including metric training and initiation or conversion of measurement 
sensitive processes and systems to the metric system.
    Soft metric means the result of mathematical conversion of inch-
pound measurements to metric equivalents. The physical dimensions, 
however, are not changed.
    Traditional system of weights and measurements means the 
predominant weight and measurement system currently used in the United 
States, also referred to as the ``inch-pound system.'' The traditional 
system includes such commonly used units as inch, foot, yard, mile, 
pint, quart, gallon, bushel, ounce (fluid and avoirdupois), pound, 
degree Fahrenheit, ampere, candela, and second.
    (d) Procedures. (1) DOS contracting activities shall implement the 
metric system in a manner consistent with 15 U.S.C. 205a, et seq. 
    (2) All DOS contracting activities shall use the metric system in 
acquisition consistent with security, operations, economic, technical, 
logistical, training and safety requirements.
    (3) The Department shall encourage industry to adopt the metric 
system by acquiring commercially available metric products and services 
that meet the Department's needs whenever practical.

[[Page 43623]]

Toward this end, solicitations for DOS acquisitions shall:
    (i) State all measurement sensitive requirements in metric terms 
whenever possible. Alternatives to hard metric are soft, dual and 
hybrid metric terms. The Metric Handbook for Federal Officials 
regarding the selection of proper metric units and symbols is available 
from the National Technical Information Service; and
    (ii) For contracts expected to exceed $500,000 contracting officers 
shall return to the requirements office all specifications and 
statements of work that are not expressed in some form of metric terms 
unless the requirements office has prepared a justification, for the 
approval of the contracting officer, for the use of non-metric 
specifications or statements of work. The justification shall be in a 
format as prescribed by the head of the contracting activity. Option 
year prices shall be considered when computing the $500,000 threshold.
    (4) Waivers are not required when ordering from Federal Supply 
Schedules.
    (5) Valid justifications for non-metric specifications or 
statements of work include, but are not limited to:
    (i) Existing specifications or standards are in inch-pound units, 
unless conversion of the existing specifications or standards is 
necessary or advantageous to the Government. Unnecessary retrofit of 
existing systems with new metric components should be avoided if the 
total cost of the retrofit, including redesign costs, exceeds $50,000;
    (ii) Metric is not the accepted industry system with respect to a 
business-related activity; however, soft, hybrid, or dual systems may 
be used during the transition to hard metric;
    (iii) The use of metric is impractical or is likely to cause 
significant inefficiencies or loss of markets to U.S. firms.
    (6) The contracting officer shall review and, if acceptable, 
approve the waiver prior to the release of the solicitation. The waiver 
shall be placed in the contract file. If the waiver is not approved, 
the contracting officer shall return it to the requirements office with 
an explanation for the disapproval.
    (7) The in-house operating metric costs shall be identified. 
Identification includes, but is not limited to, the cost of metric 
aids, tools, equipment, training and increased cost to develop metric 
specifications. All contracting activities and requirements offices 
shall maintain a record of any costs and/or savings brought about by 
metric conversion.
    (8) Bulk (loose, unpacked) materials shall be specified and 
purchased in metric or dual units.
    (9) Measuring devices, shop and laboratory equipment shall be 
purchased in metric or dual units.
    (10) Shipping allowances, bills of lading and other shipping 
documents shall be expressed in metric or dual units.

Subpart 611.1--Selecting and Developing Requirements Documents


611.103 Market acceptance.

    (a) The head of the contracting activity is the agency head for the 
purpose of FAR 11.103(a).

Subpart 611.5--Liquidated Damages


611.502   Policy.

    (d) The head of the contracting activity is the agency head for the 
purpose of FAR 11.502(d).

SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES

    41. Part 613 is revised to read as follows:

PART 613--SIMPLIFIED ACQUISITION PROCEDURES

Sec.

Subpart 613.3--Simplified Acquisition Methods

613.303 Blanket purchase agreements (BPAs).
613.303-5  Purchases under BPAs.
613.305  Imprest funds and third party drafts.
613.305-3  Conditions for use.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

Subpart 613.3--Simplified Acquisition Methods


613.303  Blanket purchase agreements (BPAs).


613.303-5  Purchases under BPAs.

    (c) In accordance with FAR 13.303-5(c), BPAs shall be awarded to 
small businesses to the maximum extent practicable.


613.305   Imprest funds and third party drafts.


613.305-3   Conditions for use.

    The Procurement Executive is the agency head's designee for the 
purposes of FAR 13.305-3(a).

PART 614--SEALED BIDDING

    42. Subpart 614.2 is revised to read as follows:

Subpart 614.2--Solicitation of Bids


614.201   Preparation of Invitation for Bids (IFB).


614.201-70   Use of English language.

    Use of English language solicitations and contracts is mandatory 
unless a deviation has been approved by the Procurement Executive in 
accordance with 601.470. If any part of a contract is not written in 
the English language, the contracting officer shall attach an accurate 
English language translation of such part to the original and each copy 
of the contract, unless the contracting officer determines such action 
is infeasible.
    43. Section 614.404-1 is amended by adding a new paragraph (f) to 
read as follows:


614.404-1   Cancellation of invitations after opening.

* * * * *
    (f) The head of the contracting activity is the agency head for the 
purpose of FAR 14.404-1(f). This authority is not redelegable.


614.406, 614.406-3, and 614.406-4  [Redesignated as 614.407, 614.407-3, 
and 614.407-4]

    44. Sections 614.406, 614.406-3 and 614.406-4, are re-designated as 
``614.407'', ``614.407-3'', and ``614.407-4'', respectively.


614.407-3  [Amended]

    45. Newly designated section 614.407-3 is amended by correcting 
``FAR 14.406'' to read ``FAR 14.407'' where it appears in the first 
sentence; and, by correcting ``FAR 14.406-3(f)'' to read ``FAR 14.407-
3(f)'' where it appears in the second sentence.


614.407-4  [Amended]

    46. Newly designated section 614.407-4 is amended by correcting 
``FAR 14.406-4'' to read ``FAR 14.407-4'' where it appears in the first 
sentence; and, by correcting ``FAR 14.406-4(d)'' to read ``FAR 14.407-
4(d)'' where it appears in the second sentence.
    47. Part 615 is revised to read as follows:

PART 615--CONTRACTING BY NEGOTIATION

Sec.

Subpart 615.2--Solicitation and Receipt of Proposals and Information

615.204 Contract format.
615.205  Issuing solicitations.
615.205-70  Use of English language.

Subpart 615.3--Source Selection

615.303  Responsibilities.

[[Page 43624]]

Subpart 615.6--Unsolicited Proposals

615.604  Agency points of contact.

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

Subpart 615.2--Solicitation and Receipt of Proposals and 
Information


615.204   Contract format.

    (e) The Procurement Executive is the agency head's designee for the 
purposes of FAR 15.204(e).


615.205   Issuing solicitations.

    (a) Contracting officers shall release copies of solicitation 
mailing lists in accordance with FAR 14.205-5(a). However, the list of 
those firms which actually submit proposals is not releasable. Requests 
for information other than solicitation mailing lists shall be handled 
under the Freedom of Information Act.


615.205-70   Use of English language.

    The requirements of DOSAR 614.201-70 also apply when contracting by 
negotiation.

Subpart 615.3--Source Selection


615.303   Responsibilities.

    (a) The Procurement Executive is the agency head for the purposes 
of FAR 15.303(a).

Subpart 615.6--Unsolicited Proposals


615.604   Agency points of contact.

    (a)(4) The contact points for unsolicited proposals are the heads 
of the contracting activities.

PART 616--TYPES OF CONTRACTS

Subpart 616.1--[Removed]

    48. Subpart 616.1, consisting of sections 616.102 and 616.102-70, 
is removed.

Subpart 616.3--[Removed]

    49. Subpart 616.3, consisting of sections 616.301-3 and 616.306, is 
removed.
    50. Section 616.505 is re-designated as section 616.506, and the 
section heading is revised to read as follows:


616.506  Solicitation provisions and contract clauses.


616.505-70  [Redesignated as 616.506-70]

    51. Section 616.505-70 is re-designated as section 616.506-70.
    52. A new section 616.505 is added to read as follows:


616.505   Ordering.

    (b)(4) The Departmental Competition Advocate is designated the task 
and delivery order contract ombudsman.

Subpart 616.6--[Removed]

    53. Subpart 616.6, consisting of sections 616.603 and 616.603-2, is 
removed.

PART 617--SPECIAL CONTRACTING METHODS

    54. Subpart 617.1 is revised to read as follows:

Sec.

Subpart 617.1--Multiyear Contracting

617.104  General.
617.105  Policy.
617.105-1  Uses.
617.108  Congressional notification.

Subpart 617.1--Multiyear Contracting


617.104   General.

    (b) The Procurement Executive is the agency head for the purpose of 
FAR 17.104(b).


617.105   Policy.


617.105-1   Uses.

    (d) Every multiyear contract shall comply with FAR 17.104(c), 
unless an exception is approved through the budget process in 
coordination with the cognizant financial management office/
comptroller.


617.108   Congressional notification.

    (a) The Procurement Executive is the agency head for the purposes 
of FAR 17.108(a).


617.502  [Removed]

    55. Section 617.502 is removed.
    56. Section 617.503 is added to read as follows:


617.503   Determination and findings requirements.

    The authority to make the determination prescribed in FAR 17.503 is 
delegated to the head of the contracting activity.


617.504-70  [Amended]

    57. Section 617.504-70 is amended in paragraph (a) by adding the 
words ``or their equivalents'' after the words ``Department deputy 
assistant secretaries.''

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

PART 619--SMALL BUSINESS PROGRAMS

    58. Part 619 is amended by revising the heading to read as set 
forth above.
    59. Section 619.201 is amended in paragraph (d)(5) by removing the 
word ``limitation'' and adding the words ``threshold, including 
commercial items using the simplified procedures of FAR subpart 13.5,'' 
in its place; and, by revising paragraph (d)(18) to read as follows:


619.201   General policy.

* * * * *
    (d) * * *
    (18) Participating in interagency programs relating to small and 
small disadvantaged business matters as authorized by the A/SDBU 
Operations Director.


619.501  [Amended]

    60. Section 619.501 is amended by deleting the phrase ``/Labor 
Surplus Area'' from the title of the Form DS-1910.
    61. Section 619.505 is amended by revising the section heading to 
read as follows:


619.505   Rejecting Small Business Administration recommendations.

    62. Subpart 619.7 is amended by revising the subpart heading to 
read as follows:

Subpart 619.7--Subcontracting with Small Business, Small 
Disadvantaged Business and Women-Owned Small Business Concerns

    63. Section 619.705-3 is revised to read as follows:


619.705-3   Preparing the solicitation.

    To further promote the use of small, disadvantaged, and women-owned 
firms by large prime contractors, contracting officers are encouraged 
to consider the adequacy of the subcontracting plans, and/or past 
performance in achieving negotiated subcontract goals, as part of the 
overall evaluation of the technical proposals.
    64. Subpart 619.8 is revised to read as follows:

Subpart 619.8--Contracting with the Small Business Administration (The 
8(a) Program)

Sec.
619.800  General.
619.801  Definitions.
619.803  Selecting acquisitions for the 8(a) program.
619.803-70  Responsibilities of the Office of Small and 
Disadvantaged Business Utilization (A/SDBU).
619.803-71  Simplified procedures for 8(a) acquisitions under MOUs.
619.804  Evaluation, offering, and acceptance.
619.804-2  Agency offering.
619.804-3  SBA acceptance.
619.804-3-70  SBA acceptance under MOUs for acquisitions exceeding 
$100,000.
619.805  Competitive 8(a).
619.805-2  Procedures.
619.806  Pricing the 8(a) contract.
619.808  Contract negotiation.
619.808-1  Sole source.
619.810  SBA appeals.

[[Page 43625]]

619.811  Preparing the contracts.
619.811-1  Sole source.
619.811-2  Competitive.
619.811-3  Contract clauses.
619.812  Contract administration.

Subpart 619.8--Contracting with the Small Business Administration 
(The 8(a) Program)


619.800   General.

    (d) Utilizing Memoranda of Understanding (MOUs), the SBA has 
delegated its authority to contract directly with program participants 
under Section 8(a) of the Small Business Act to the Senior Procurement 
Executives of various Federal contracting activities. The Department of 
State has signed an MOU with SBA, effective May 6, 1998. Under the MOU, 
a contract may be awarded directly to an 8(a) firm on either a sole 
source or competitive basis. The SBA reserves the right to withdraw any 
delegation issued as a result of an MOU; however, any such withdrawal 
shall have no effect on contracts currently awarded under the MOU.


619.801   Definitions.

    National buy requirements includes all 8(a) contracts performed 
outside the United States and processed by the Small Business 
Administration.


619.803   Selecting acquisitions for the 8(a) program.


619.803-70   Responsibilities of the Office of Small and Disadvantaged 
Business Utilization (A/SDBU).

    A/SDBU shall review the capabilities of 8(a) concerns and 
disseminate that information to DOS program and contracting personnel. 
As necessary, A/SDBU shall obtain from the SBA or 8(a) concerns 
supplemental information for DOS program and contracting personnel.


619.803-71  Simplified procedures for 8(a) acquisitions under MOUs.

    Contracting activities may use the simplified acquisition 
procedures of FAR part 13 and DOSAR part 613 to issue purchase orders 
or contracts, not exceeding $100,000, to 8(a) participants. The 
$100,000 limitation for use of FAR part 13 simplified acquisition 
procedures applies to the acquisition of both commercial and non-
commercial items. The following applies to such acquisitions:
    (a) Neither offering letters to, nor acceptance letters from, the 
SBA are required.
    (b) The contracting activity shall use the SBA's PRO-Net database 
on the Internet (http://www.sba.gov) to establish that the selected 
8(a) firm is a current program participant.
    (c) Once an 8(a) contractor has been identified, the agency 
contracting officer shall establish the price with the selected 8(a) 
contractor.
    (d) The contracting officer shall issue the purchase order or 
contract directly to the 8(a) firm in accordance with the provisions of 
FAR part 13 and DOSAR part 613. The contracting officer shall insert 
FAR clause 52.219-14, Limitations on Subcontracting, and DOSAR clause 
652.219-71, Section 8(a) Direct Award, in all purchase orders and 
contracts awarded under this subsection. The contracting officer's 
title shall include the contracting activity, as follows: Contracting 
Officer for the Department of State [insert contracting activity]. In 
addition, in accordance with the MOU, A/SDBU staff who have been issued 
limited contracting officer warrants for this purpose, shall sign the 
purchase order or contract as a third party.
    (e) The contracting officer shall forward to the SBA District 
Office serving the 8(a) firm a copy of the purchase order or contract 
within five days after the order is issued.


619.804   Evaluation, offering, and acceptance.


619.804-2   Agency offering.

    (a) When applicable, this notification shall identify that the 
offering is in accordance with the MOU identified in 619.800.


619.804-3   SBA acceptance.


619.804-3-70   SBA acceptance under MOUs for acquisitions exceeding 
$100,000.

    (a) The SBA's decision whether to accept the requirement shall be 
transmitted to the contracting agency in writing within five working 
days of receipt of the offer.
    (b) The SBA may request, and the contracting agency may grant, an 
extension beyond the five-day limit.
    (c) SBA's acceptance letter should be faxed or e-mailed to the 
offering contracting agency.
    (d) If the offering contracting agency has not received an 
acceptance or rejection of the offering from SBA within five days of 
SBA's receipt of the offering letter, the contracting agency may assume 
that the requirement has been accepted and proceed with the 
acquisition.
    (e) The contents of the acceptance letter shall be limited to the 
eligibility of the recommended 8(a) contractor.


619.805   Competitive 8(a).


619.805-2   Procedures.

    (a) 8(a) acquisitions may also be conducted using simplified 
acquisition procedures (see FAR part 13). The award process is 
significantly streamlined where an MOU is in place.
    (c)(3) For requirements exceeding $100,000 processed under the MOU 
cited in 619.800, the contracting officer shall submit the name, 
address, and telephone number of the low offeror (in sealed bid 
acquisitions) or the apparent successful offeror (in negotiated 
acquisitions) to the SBA Business Opportunity Specialist at the field 
office servicing the identified 8(a) firm. The SBA shall determine the 
eligibility of the firm(s) and advise the contracting officer within 
two working days of the receipt of the request. If the firm is 
determined to be ineligible, the contracting officer shall submit 
information on the next low offeror or next apparent successful 
offeror, as applicable, to the cognizant SBA field office.


619.806   Pricing the 8(a) contract.

    (a) When required by FAR subpart 15.4, the contracting officer 
shall obtain certified cost or pricing data directly from the 8(a) 
contractor if the contract is being awarded under the MOU cited in 
619.800.


619.808   Contract negotiation.


619.808-1   Sole source.

    (a) If the acquisition is conducted under an MOU cited in 619.800, 
the 8(a) contractor is responsible for negotiating with the agency 
within the time established by the agency. If the 8(a) contractor does 
not negotiate within the established time and the agency cannot allow 
additional time, the agency may, after notification and approval by 
SBA, proceed with the acquisition from other sources.
    (b) If the acquisition is conducted under an MOU cited in 619.800, 
the agency is delegated the authority to negotiate directly with the 
8(a) participant; however, if requested by the 8(a) participant, the 
SBA may participate in the negotiations.


619.810   SBA appeals.

    (d) The Procurement Executive is the agency head for the purposes 
of FAR 19.812(d).


619.811   Preparing the contracts.


619.811-1   Sole source.

    (d) If the award is to be made under an MOU cited in 619.800, the 
contract to be awarded by the contracting activity to the 8(a) firm 
shall be

[[Page 43626]]

prepared in accordance with the contracting activity's normal 
procedures, given contract type and dollar amount, that the contracting 
activity would use for a similar, non-8(a) acquisition, except for the 
following:
    (1) The award form shall cite 41 U.S.C. 253(c)(5) or 10 U.S.C. 
2304(c)(5), as appropriate, and 15 U.S.C. 637(a) as the authority for 
use of other than full and open competition.
    (2) The contracting officer shall insert FAR 52.219-14, Limitations 
on Subcontracting, and DOSAR 652.219-71, Section 8(a) Direct Awards.
    (3) For acquisitions exceeding $100,000, the contracting activity 
shall include SBA's requirement number on the award document.
    (4) A single award document shall be used between the agency and 
the 8(a) contractor, i.e., an SBA signature will not be required. The 
title of the agency contracting officer shall include the contracting 
activity, as follows: Contracting Officer for the Department of State 
[insert contracting activity]. In addition, in accordance with the MOU, 
A/SDBU staff who have been issued limited contracting officer warrants 
for this purpose shall sign the contract as a third party. The 8(a) 
contractor's signature shall be placed on the award document as the 
prime contractor. The 8(a) contractor's name and address shall be 
placed in the ``Awarded to'' or ``Contractor name'' block on the 
appropriate form.


619.811-2   Competitive.

    (a) If the award is made under the delegation of 8(a) contracting 
authority, competitive contracts for 8(a) firms shall be prepared in 
accordance with the same standards as 8(a) sole source contracts. See 
619.811-1.
    (b) If the acquisition is conducted under the MOU cited in 619.800, 
the process for obtaining signatures shall be as specified in 619.811-
1(d)(4).


619.811-3   Contract clauses.

    (d)(3) The contracting officer shall insert the clause at FAR 
52.219-18, Notification of Competition Limited to Eligible 8(a) 
Concerns, with its Alternate III (Deviation), in competitive 
solicitations and contracts exceeding $100,000 when the acquisition is 
processed under the MOU cited in 619.800.
    (f) The contracting officer shall insert the clause at FAR 52.219-
14, Limitations on Subcontracting, and DOSAR 652.219-71, Section 8(a) 
Direct Awards, in all solicitations and contracts that are processed 
under the MOU cited at 619.800. The clauses at FAR 52.219-11, Special 
8(a) Contract Conditions; 52.219-12, Special 8(a) Subcontract 
Conditions; and, 52.219-17, Section 8(a) Award, shall not be used.


619.812   Contract administration.

    (d) The head of the contracting activity is the agency head for the 
purposes of FAR 19.812(d). Awards under the MOU cited in 619.800 are 
subject to 15 U.S.C. 637(a)(21). These contracts contain the clause at 
DOSAR 652.219-71, Section 8(a) Direct Awards, that requires the 8(a) 
contractor to notify the SBA and the contracting officer when ownership 
of the firm is being transferred.

PART 622--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


622.401  [Removed]

    65. Section 622.401 is removed.


622.406-3  [Removed]

    66. Section 622.406-3 is removed.
    67. Section 622.803 is added to read as follows:


622.803   Responsibilities.

    (c) The Procurement Executive is the agency head for the purpose of 
FAR 22.803(c).
    68. The heading of subpart 622.13 is revised to read as follows:

Subpart 622.13--Disabled Veterans and Veterans of the Vietnam Era

    69. The heading of subpart 622.14 is revised to read as follows:

Subpart 622.14--Employment of Workers With Disabilities

PART 623--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-
FREE WORKPLACE

    70. Subpart 623.4 is revised to read as follows:

Subpart 623.4--Use of Recovered Materials

Sec.
623.400  Scope of subpart.
623.404  Procedures.

Subpart 623.4--Use of Recovered Materials


623.400   Scope of subpart.

    The affirmative procurement program is applicable to all domestic 
acquisitions of items currently designated by an EPA guideline or by 
future guidelines promulgated by EPA. The requirements of this section 
are not applicable to acquisitions made and/or performed outside the 
United States or its possessions.


623.404   Procedures.

    (b)(2) The requirements office initiating an acquisition is 
responsible for determining whether recovered materials should be 
included in the specifications. Requirements offices may purchase EPA 
designated items containing other than recovered materials only if one 
of the exemptions listed in FAR 23.404(b)(3) applies. If the 
requirements office determines to acquire EPA designated items that do 
not contain recovered materials, a written justification must be 
submitted to the head of the contracting activity.
    (i) Contracts for the purchase of, or requiring the supply of, any 
EPA designated item shall require that the item conform to the EPA 
guidelines, unless an exception has been approved by the head of the 
contracting activity in accordance with FAR 23.404(b)(3) and DOSAR 
623.404(b)(3).
    (ii) Contracting officers shall promote the fact that the 
Department is seeking to buy items containing recovered materials at 
pre-bid and pre-proposal conferences, when appropriate. Other means of 
promotion may include a specific notice on a solicitation's cover 
letter, calling attention to the requirement for recovered materials.
    (iii) Contracting officers shall include FAR clause 52.223-9 to 
ensure that contractors estimate, certify, and verify the amount of 
recovered material used in the performance of the contract.
    (iv) The effectiveness of the program shall be reviewed annually by 
A/OPE. An assessment will be made to determine if greater use of 
recovered materials is possible for the existing requirements or if 
recovered materials are causing undue delay, lack of competition, 
unreasonable prices, or an unacceptable level of performance.
    (3) The head of the contracting activity is the agency head for the 
purpose of FAR 23.404(b)(3).

PART 625--FOREIGN ACQUISITION

Subpart 625.9 [Removed]

    71. Subpart 625.9, consisting of sections 625.901 and 625.903, is 
removed.
    72. Subpart 625.70 is added to read as follows:

Subpart 625.70--Arab League Boycott and Related Provisions

Sec.
625.7001  Policy.
625.7002  Solicitation provision and contract clause.

[[Page 43627]]

Subpart 625.70--Arab League Boycott and Related Provisions


625.7001   Policy.

    (a) Section 565 of the Fiscal Year 94/95 Foreign Relations 
Authorizations Act (Public Law 103-236) prohibits the Department of 
State from entering into any contract that expends funds appropriated 
to the Department of State:
    (1) With a foreign person that complies with the Arab League 
Boycott of Israel; or,
    (2) With any foreign or United States person that discriminates in 
the award of subcontracts on the basis of religion.
    (b) This authority has continuing effect. Section 565 requires 
specific language to be included in all Invitations for Bids and 
Requests for Proposals with respect to a contract subject to Section 
565's prohibitions.
    (c) Section 565 may be waived on a country-by-country basis if such 
a waiver is in the national interest and necessary to carry on 
diplomatic functions and is approved by the Secretary of State or his/
her designee.


625.7002   Solicitation provision and contract clause.

    Contracting officers shall include the following provision and 
clause in all solicitations and contracts exceeding the simplified 
acquisition threshold, unless a waiver has been granted in accordance 
with DOSAR 625.7001(c):
    (a) 652.225-70, Arab League Boycott of Israel; and.
    (b) 652.225-71, Section 8(a) of the Export Administration Act, as 
amended.
    73. Part 626 is added to subchapter D to read as follows:

PART 626--OTHER SOCIOECONOMIC PROGRAMS

Subpart 626.2--Minority Business Enterprise


626.200-70   Solicitation provision.

    The contracting officer shall insert the provision at 652.226-70, 
Certification of Status as a Minority Business Enterprise, in all 
solicitations issued by domestic contracting activities. If the 
solicitation is being issued using electronic commerce, the contracting 
officer shall use the provision with its Alternate I.

SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS

PART 628--BONDS AND INSURANCE

    74. Section 628.305 is amended by revising the second and third 
sentences of paragraph (b) introductory text and adding a fourth 
sentence to read as follows; and by removing paragraphs (b)(1), (b)(2), 
and (b)(3):


628.305   Overseas workers' compensation and war-hazard insurance.

* * * * *
    (b) * * * In countries where local nationals and/or third country 
nationals will be employed to perform the contract, such countries have 
been waived by the Secretary of Labor. Whenever such insurance is 
required under the contract, the contracting officer shall insert the 
clause at 652.228-71, Worker's Compensation Insurance (Defense Base 
Act)--Services. If the contract is for construction, the contracting 
officer shall insert the clause with its Alternate I.
* * * * *
    75. Section 628.306 is revised to read as follows:


628.306   Insurance under fixed-price contracts.

    The contracting officer shall insert the provision at 652.228-74, 
Defense Base Act Insurance Rates--Limitation--Fixed-Price, in 
solicitations for fixed-price or construction contracts to be performed 
outside the United States by United States citizens, residents, and/or 
those hired in the United States.
    76. Section 628.307 is revised to read as follows:


628.307   Insurance under cost-reimbursement contracts.

    The contracting officer shall insert the provision at 652.228-76, 
Defense Base Act Insurance Rates--Limitation--Cost-Reimbursement, 
Labor-Hour, and Time-and-Materials, in solicitations for cost-
reimbursement, labor-hour, or time-and-materials type contracts to be 
performed outside the United States by United States citizens, 
residents, and/or those hired in the United States.


628.307-70   [Removed]

    77. Section 628.307-70 is removed.

PART 629--TAXES

    78. Sections 629.402, 629.402-1 and 629.402-1-70 are added to read 
as follows:


629.402   Foreign contracts.


629.402-1   Foreign fixed-price contracts.


629.402-1-70   DOSAR contract clause.

    The contracting officer shall insert the clause at 652.229-71, 
Personal Property Disposition at Posts Abroad, in all solicitations and 
contracts performed overseas.

PART 630--COST ACCOUNTING STANDARDS

    79. Part 630 is removed.

PART 631--CONTRACT COST PRINCIPLES AND PROCEDURES

    80. Subpart 631.2 is added to read as follows:

Subpart 631.2--Contracts with Commercial Organizations


631.205   Selected costs.


631.205-6   Compensation for personal services.

    (g)(3) The head of the contracting activity is the agency head's 
designee for the purpose of FAR 31.205-6(g)(3).

PART 632--CONTRACT FINANCING

    81. Sections 632.006, 632.006-1, 632.006-2, and 632.006-4 are added 
to read as follows:


632.006   Reduction or suspension of contract payments upon finding of 
fraud.


632.006-1   General.

    The Procurement Executive is the agency head for the purpose of FAR 
32.006-1.


632.006-2   Definitions.

    Remedy coordination official means the Assistant Inspector General 
for Investigations.


632.006-4   Procedures.

    The Procurement Executive is the agency head for the purposes of 
FAR 32.006-4.
    82. Subpart 632.1 is added to read as follows:

Subpart 632.1--Non-Commercial Item Purchase Financing


632.114   Unusual contract financing.

    The Procurement Executive is the agency head for the purpose of FAR 
32.114.
    83. Subpart 632.2 is added to read as follows:

Subpart 632.2--Commercial Item Purchase Financing


632.201   Statutory authority.

    The head of the contracting activity is the agency head for the 
purpose of FAR 32.201.
    84. Section 632.404 is added to read as follows:


632.404   Exclusions.

    (a) Total advance payments may be authorized for the items listed 
in FAR 32.404(a), notwithstanding their designation as a commercial 
item and

[[Page 43628]]

acquisition under FAR part 12 procedures.
    85. Subpart 632.7 is revised to read as follows:

Subpart 632.7--Contract Funding

Sec.
632.702  Policy.
632.702-70  DOS policy.
632.703  Contract funding requirements.
632.703-3  Contracts crossing fiscal years.
632.705  Contract clauses.
632.705-70  DOSAR contract clause.

Subpart 632.7--Contract Funding


632.702   Policy.


632.702-70   DOS policy.

    The Department's policy is to provide full funding for all 
contracts, to the maximum extent practicable. FAR 32.704 and 32.705-2 
provide for incremental funding of cost-reimbursement contracts. Fixed-
price, labor-hour, and time-and-materials contracts for severable 
services may also be incrementally funded if full funding is not 
available at the time of contract award and the contracting officer 
executes a determination and findings, approved by the requirements 
office, justifying the need for incremental funding due to the 
unavailability of funds.


632.703   Contract funding requirements.


632.703-3   Contracts crossing fiscal years.

    (b) The head of the contracting activity is the agency head for the 
purpose of FAR 32.703-3(b).


632.705   Contract clauses.


632.705-70   DOSAR contract clause.

    The contracting officer shall insert the clause at 652.232-72, 
Limitation of Funds, in incrementally funded fixed-price, labor-hour, 
and time-and-materials solicitations and contracts for severable 
services.
    86. Section 632.803 is amended by adding the following sentence to 
the end of paragraph (b):


632.803   Policies.

    (b) * * * The Directors, Regional Procurement Support Offices may 
approve the assignment of claims for contracts under their 
administration after obtaining legal consultation.

PART 633--PROTESTS, DISPUTES AND APPEALS


633.102   [Amended]

    87. Section 633.102 is amended by removing the words ``or the 
General Services Administration Board of Contract Appeals (GSBCA)''.
    88. Section 633.103 is revised to read as follows:


633.103   Protests to the agency.

    (d)(4) The independent review as described in FAR 33.103(d)(4) 
shall be performed by the Departmental Competition Advocate.
    89. Section 633.104 is revised to read as follows:


633.104   Protests to GAO.

    (a) General procedures. The Office of the Assistant Legal Adviser 
for Buildings and Acquisitions (L/BA) coordinates the response of the 
Department of State to protests filed at the GAO. Contracting 
activities shall consult L/BA for guidance before taking any actions in 
response to a protest to GAO.


633.105   [Removed]

    90. Section 633.105 is removed.


633.211   [Removed]

    91. Section 633.211 is removed.
    92. Section 633.214-70 is amended in paragraph (c) introductory 
text and paragraph (c)(2) by removing the acronym ``ASBCA'' and 
inserting the acronym ``GSBCA'' in its place in the second sentence and 
first sentence, respectively; and, in paragraphs (c)(4), (c)(5), and 
(c)(6)(iii) by deleting the last sentence of each paragraph, and by 
inserting the following sentence in each paragraph in its place:


633.214-70   Alternative dispute resolution.

* * * * *
    (c) * * *
    (4) * * * Additional information on alternative dispute resolution 
and mediation resources is available at the following address on the 
Internet: http://www.adrr.com
    (5) * * * Additional information on alternative dispute resolution 
and mediation resources is available at the following address on the 
Internet: http://www.adrr.com
    (6) * * *
    (iii) * * * Additional information on alternative dispute 
resolution and mediation resources is available at the following 
address on the Internet: http://www.adrr.com
* * * * *


633.270-1   [Amended]

    93. Section 633.270-1 is amended by removing the words ``Armed 
Services Board of Contract Appeals'' and inserting the words ``General 
Services Board of Contract Appeals'' in their place.


633.270-2   [Amended]

    94. Section 633.270-2 is amended by removing the words ``Armed 
Services Board of Contract Appeals (ASBCA)'' and inserting the words 
``General Services Board of Contract Appeals (GSBCA)'' in their place 
in the first sentence; and, by removing the acronym ``ASBCA'' and 
inserting the acronym ``GSBCA'' in its place in the second sentence.


633.270-3   [Amended]

    95. Section 633.270-3 is amended by removing the acronym ``ASBCA'' 
and inserting the acronym ``GSBCA'' in its place at the end of the 
first sentence.

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

PART 634--MAJOR SYSTEM ACQUISITION


634.001, 634.001-70, and 634.002   [Removed]

    96. Sections 634.001, 634.001-70, and 634.002 are removed.


634.003   [Amended]

    97. Section 634.003 is amended in paragraph (a) by removing the 
second sentence.


634.005-6   [Amended]

    98. Section 634.005-6 is amended by removing the period at the end 
of the sentence and adding the following words to the end of the 
sentence ``with power of redelegation to the Under Secretary for 
Management.''

PART 636--CONSTRUCTION AND ARCHITECT-ENGINEERING CONTRACTS

    99. Section 636.101-70 is amended by adding the following sentence:


636.101-70   Exception.

    * * * The Deputy Assistant Secretary for Foreign Buildings 
Operations is authorized to waive the provisions of the FAR.
    100. Subpart 636.5 is added to read as follows:

Subpart 636.5--Contract Clauses


636.513   Accident prevention.

    (a) In accordance with a class deviation approved by the 
Procurement Executive, contracting officers at overseas contracting 
activities shall insert DOSAR 652.236-70, Accident Prevention, in lieu 
of FAR clause 52.236-13 when awarding construction contracts.
    101. Section 636.602-1 is added to read as follows:


636.602-1   Selection criteria.

    (b) The head of the contracting activity is the agency head's 
designee for the purpose of FAR 36.602-1(b).

[[Page 43629]]

PART 637--SERVICE CONTRACTING

    102. Section 637.104-70 is amended by revising the heading; by 
removing the word ``and'' at the end of paragraph (g); by removing the 
period and adding a semicolon and the word ``and'' to the end of 
paragraph (h); and by adding a new paragraph (i) to read as follows:


637.104-70   Personal services contracts.

* * * * *
    (i) For the Bureau of Diplomatic Security, section 206 of Public 
Law 99-399, as amended by the Emergency Supplemental Appropriations Act 
of 1998.


637.106   [Removed]

    103. Section 637.106 is removed.
    104. Section 637.110 is amended by adding the following sentence to 
the end of paragraph (c):


637.110   Solicitation provisions and contract clauses.

* * * * *
    (c) * * * Overseas contracting activities may add local holidays to 
the list included in paragraph (a) of the clause.
    105. Subpart 637.2 is added to read as follows:

Subpart 637.2--Advisory and Assistance Services


637.204   Guidelines for determining availability of personnel.

    The head of the contracting activity is the agency head for the 
purposes of FAR 37.204.

PART 639--ACQUISITION OF INFORMATION RESOURCES

    106. Part 639, consisting of section 639.001-70, is removed.
    107. Part 641 is added to subchapter F to read as follows:

PART 641--ACQUISITION OF UTILITY SERVICES

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

Subpart 641.2--Acquiring Utility Services 641.201 Policy.

    (d) The Procurement Executive is the agency head for the purposes 
of FAR 41.201(d)(2)(i) and FAR 41.201(d)(3).

SUBCHAPTER G--CONTRACT MANAGEMENT

PART 642--CONTRACT ADMINISTRATION AND AUDIT SERVICES

    108. Part 642 is amended by revising the heading to read as set 
forth above.
    109. The heading of subpart 642.2 is revised to read as follows:

Subpart 642.2--Contract Administration Services

    110. Section 642.271 is revised to read as follows:


642.271  DOSAR contract clauses.

    (a) The contracting officer shall insert a clause substantially the 
same as the clause at 652.242-70, Contracting Officer's Representative, 
in solicitations and contracts when appointment of a contracting 
officer's representative is anticipated.
    (b) The contracting officer shall insert a clause substantially the 
same as the clause at 652.242-73, Authorization and Performance, in all 
solicitations and contracts to be awarded and/or performed overseas. 
For overseas local guard contracts, the contracting officer shall use 
the clause with its Alternate I.
    111. Subpart 642.7 is added to read as follows:

Subpart 642.7--Indirect Cost Rates


642.703  General.


642.703-2  Certificate of indirect costs.

    (b) The head of the contracting activity is the agency head's 
designee for the purpose of FAR 42.703-2(b).

PART 643--CONTRACT MODIFICATIONS


643.102-7  [Amended]

    112. Section 643.102-70 is amended by removing paragraph (b) and by 
removing the paragraph designation in paragraph (a).
    113. Sections 643.104 and 643.104-70 are added to read as follows:


643.104  Notification of contract changes.


643.104-70  DOSAR contract clause.

    The contracting officer shall insert the clause at 652.243-70, 
Notices, in all solicitations and contracts exceeding the micro-
purchase threshold which are awarded and/or performed overseas.
    114. Part 644 is added to subchapter G to read as follows:

PART 644--SUBCONTRACTING POLICIES AND PROCEDURES

    Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

Subpart 644.3--Contractor's Purchasing System Reviews


644.302  Requirements.

    (a) The Procurement Executive is the head of the agency for the 
purpose of FAR 44.302(a).

PART 645--GOVERNMENT PROPERTY

    115. Subpart 645.4 is added to read as follows:

Subpart 645.4--Contractor Use and Rental of Government Property


645.403  Rental--Use and Charges clause.

    (a) The head of the contracting activity is the agency head's 
designee for the purpose of FAR 45.403(a).

PART 646--QUALITY ASSURANCE

    116. Part 646 is removed.

PART 647--TRANSPORTATION

    117. Subpart 647.2 is added to read as follows:

Subpart 647.2--Contracts for Transportation or for Transportation-
Related Services


647.207  Solicitation provisions, contract clauses, and special 
requirements.


647.207-7  Liability and insurance.

    (e) The Procurement Executive has approved a class deviation for 
paragraph (c) of FAR clause 52.247-23, Contractor Liability for Loss of 
and/or Damage to Household Goods. The contracting officer shall 
indicate that the contractor shall indemnify the owner of the goods at 
a rate of $5.00 per pound (or metric equivalent in local currency) 
based on the total net weight. The rate conforms with liability 
calculations found in International Through Government Bills of Lading 
(ITGBL).

PART 649--TERMINATION OF CONTRACTS


649.111  [Removed]

    118. Section 649.111 is removed.

SUBCHAPTER H--CLAUSES AND FORMS

PART 652--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


652.203-70  [Removed]

    119. Section 652.203-70 is removed.


652.203-71  [Removed]

    120. Section 652.203-71 is removed.


652.204-70  [Removed]

    121. Section 652.204-70 is removed.


652.204-71  [Removed]

    122. Section 652.204-71 is removed.
    123. Section 652.206-70 is revised to read as follows:


652.206-70  Competition Advocate/Ombudsman.

    As prescribed in 606.570, insert the following provision:

[[Page 43630]]

Competition Advocate/Ombudsman (Aug 1999)

    (a) The Department of State's Competition Advocate is 
responsible for assisting industry in removing restrictive 
requirements from Department of State solicitations and removing 
barriers to full and open competition and use of commercial items. 
If such a solicitation is considered competitively restrictive or 
does not appear properly conducive to competition and commercial 
practices, potential offerors are encouraged to first contact the 
contracting officer for the respective solicitation. If concerns 
remain unresolved, contact the Department of State Competition 
Advocate on (703) 516-1680, by fax at (703) 875-6155, or write to: 
Department of State, Competition Advocate, Office of the Procurement 
Executive (A/OPE), Suite 603, SA-6, Washington, DC 20522-0602.
    (b) The Department of State's Acquisition Ombudsman has been 
appointed to hear concerns from potential offerors and contractors 
during the preaward and postaward phases of this acquisition. The 
role of the ombudsman is not to diminish the authority of the 
contracting officer, the Technical Evaluation Panel or Source 
Evaluation Board, or the selection official. The purpose of the 
ombudsman is to facilitate the communication of concerns, issues, 
disagreements, and recommendations of interested parties to the 
appropriate Government personnel, and work to resolve them. When 
requested and appropriate, the ombudsman will maintain strict 
confidentiality as to the source of the concern. The ombudsman does 
not participate in the evaluation of proposals, the source selection 
process, or the adjudication of formal contract disputes. Interested 
parties are invited to contact the contracting activity ombudsman, 
[insert name], at [insert telephone and fax numbers]. For an 
American Embassy or overseas post, refer to the numbers below for 
the Department Acquisition Ombudsman. Concerns, issues, 
disagreements, and recommendations which cannot be resolved at a 
contracting activity level may be referred to the Department of 
State Acquisition Ombudsman at (703) 516-1680, by fax at (703) 875-
6155, or write to: Department of State, Acquisition Ombudsman, 
Office of the Procurement Executive (A/OPE), Suite 603, SA-6, 
Washington, DC 20522-0602.

(End of provision)


652.214-70  [Removed]

    124. Section 652.214-70 is removed.


652.214-71  [Removed]

    125. Section 652.214-71 is removed.
    126. Section 652.216-70 is amended by revising the introductory 
text to read as follows:


652.216-70 Ordering--Indefinite-delivery contract.

    As prescribed in 616.506-70, insert the following clause:
* * * * *
    127. Section 652.216-71 is revised to read as follows:


652.216-71  Price adjustment.

    As prescribed in 616.203-4, insert a clause substantially the same 
as follows:

Price Adjustment (Aug 1999)

    (a) The contract price may be increased or decreased in actual 
costs of direct service labor which result directly from laws 
enacted and effective during the term of this contract by the 
[insert name of country] Government. Direct service labor costs 
include only the costs of wages and direct benefits (such as social 
security, health insurance, unemployment compensation insurance) 
paid to or incurred for the direct benefit of personnel performing 
services under one of the categories listed in Section [identify 
section number] of this contract. Price adjustments will include 
only changes in direct service labor costs incurred in order to 
comply with the requirements of the law. No adjustment will be made 
under this clause with respect to labor costs of personnel not 
performing direct service labor under the categories of Section 
[identify section], nor for overhead, profit, general and 
administrative (G&A) costs, taxes or any other costs whatsoever.
    (b) For the contracting officer to consider any request for 
adjustment, the contractor shall demonstrate in writing:
    (1) That the change in the law occurred during the term of this 
contract and subsequent to the award date of this contract; and,
    (2) That the change in the law could not have been reasonably 
anticipated prior to contract award; and,
    (3) How the change in the law directly affects the contractor's 
costs under this contract.
    (c) The contractor shall present data that clearly supports any 
request for adjustment. This data shall be submitted no later than 
30 calendar days after the changes in the law have been made public. 
This data shall include, but not be limited to, the following:
    (1) The calculation of the amount of adjustment requested; and,
    (2) Documentation which identifies and provides the appropriate 
portions of the text of the particular law from which the request is 
derived.
    (d) In order to establish the change between the requested 
adjusted rate and the original rate, the contractor shall support 
the appropriate data and composition of the original rate and the 
requested adjusted rate. This shall include details regarding 
specific hourly rates paid to individual employees. For contracts 
paid in U.S. dollars, the contractor's request for price adjustment 
shall present data reflecting:
    (1) The exchange rate in effect on the date of the contractor's 
proposal that was accepted for the basic contract; and
    (2) The current exchange rate and its effect on payment of 
workers in local currency.
The allowable adjustment shall be limited to the extent to which 
increases in direct service labor costs due to host country law 
changes are not offset by exchange rate gains.
    (e) Only direct cost changes mandated by enacted laws shall be 
considered for adjustment under this contract. Changes for purposes 
of maintaining parity of pay between employees at the minimum 
mandated levels and employees already paid at levels above the newly 
mandated minimums shall not be considered. Therefore, if the 
contractor elects to increase payments to employees who are already 
being paid at or above the mandated amounts, such increased costs 
shall be borne solely by the contractor and shall not be 
justification for an increase in the hourly and monthly rates under 
this contract.
    (f) Any request for adjustment shall be presented by signature 
of an officer or general partner of the contractor having overall 
responsibility for the conduct of the contractor's affairs.
    (g) No adjustment shall be made to the contract price that 
relates to any indirect, overhead, or fixed costs, profit or fee. 
Only the changes in direct service labor wages (and any benefits 
based directly on wages) shall be considered by the U.S. Government 
as basis for contract price changes.
    (h) No request by the contractor for an adjustment under this 
clause shall be allowed if asserted after final payment has been 
made under this contract.
    (i) This clause shall only apply to laws enacted by the [insert 
name of country] Government meeting the criterion set forth above in 
paragraph (b). No adjustments shall be made due to currency 
fluctuations in exchange rates.

(End of clause)

    128. Section 652.219-71 is added to read as follows:


652.219-71  Section 8(a) direct awards.

    As prescribed in 619.811-3(f), insert the following clause:

Section 8(a) Direct Awards (Aug 1999)

    (a) This purchase order or 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 Department of State (DOS). SBA retains 
responsibility for 8(a) certification, 8(a) eligibility 
determinations and related issues, and provides counseling and 
assistance to the 8(a) contractor under the 8(a) program. The 
cognizant SBA district office is: [To be completed by the 
contracting officer at the time of award]
    (b) The DOS contracting officer is responsible for administering 
the purchase order or contract and taking any action on behalf of 
the Government under the terms and conditions of the purchase order 
or contract. However, the DOS contracting officer shall give advance 
notice to the SBA before it issues a final notice terminating 
performance, either in whole or in part, under the purchase order or 
contract. The DOS contracting officer shall also coordinate with SBA 
prior to processing any novation agreement. The DOS contracting 
officer may assign contract administration functions to a contract 
administration office.
    (c) The contractor agrees:
    (1) to notify the DOS contracting officer, simultaneous with its 
notification to SBA (as required by SBA's 8(a) regulations), when 
the

[[Page 43631]]

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; and,
    (2) to adhere to the requirements of FAR 52.219-14, Limitations 
on Subcontracting.

(End of clause)


652.223-70  [Removed]

    129. Section 652.223-70 is removed.


652.223-71  [Removed]

    130. Section 652.223-71 is removed.


652.223-72  [Removed]

    131. Section 652.223-72 is removed.


652.223-73  [Removed]

    132. Section 652.223-73 is removed.


652.223-74  [Removed]

    133. Section 652.223-74 is removed.


652.223-75  [Removed]

    134. Section 652.223-75 is removed.


652.223-76  [Removed]

    135. Section 652.223-76 is removed.


652.223-77  [Removed]

    136. Section 652.223-77 is removed.


652.223-78  [Removed]

    137. Section 652.223-78 is removed.
    138. Section 652.225-70 is added to read as follows:


652.225-70  Arab League Boycott of Israel.

    As prescribed in 625.7002(a), insert the following provision:

Arab League Boycott of Israel (Aug 1999)

    (a) Definitions. As used in this provision:
    Foreign person means any person other than a United States 
person as defined below.
    United States person means any United States resident or 
national (other than an individual resident outside the United 
States and employed by other than a United States person), any 
domestic concern (including any permanent domestic establishment of 
any foreign concern), and any foreign subsidiary or affiliate 
(including any permanent foreign establishment) of any domestic 
concern which is controlled in fact by such domestic concern, as 
provided under the Export Administration Act of 1979, as amended.
    (b) Certification. By submitting this offer, the offeror 
certifies that it is not:
    (1) Taking or knowingly agreeing to take any action, with 
respect to the boycott of Israel by Arab League countries, which 
Section 8(a) of the Export Administration Act of 1979, as amended 
(50 U.S.C. 2407(a)) prohibits a United States person from taking; 
or,
    (2) Discriminating in the award of subcontracts on the basis of 
religion.

(End of provision)

    139. Section 652.225-71 is added to read as follows:


652.225-71  Section 8(a) of the Export Administration Act of 1979, as 
amended.

    As prescribed in 625.7002(b), insert the following clause:

Section 8(a) of the Export Administration Act of 1979, as Amended (Aug 
1999)

    (a) Section 8(a) of the U.S. Export Administration Act of 1979, 
as amended (50 U.S.C. 2407(a)), prohibits compliance by U.S. persons 
with any boycott fostered by a foreign country against a country 
which is friendly to the United States and which is not itself the 
object of any form of boycott pursuant to United States law or 
regulation. The Boycott of Israel by Arab League countries is such a 
boycott, and therefore, the following actions, if taken with intent 
to comply with, further, or support the Arab League Boycott of 
Israel, are prohibited activities under the Export Administration 
Act:
    (1) Refusing, or requiring any U.S. person to refuse to do 
business with or in Israel, with any Israeli business concern, or 
with any national or resident of Israel, or with any other person, 
pursuant to an agreement of, or a request from or on behalf of a 
boycotting country;
    (2) Refusing, or requiring any U.S. person to refuse to employ 
or otherwise discriminating against any person on the basis of race, 
religion, sex, or national origin of that person or of any owner, 
officer, director, or employee of such person;
    (3) Furnishing information with respect to the race, religion, 
or national origin of any U.S. person or of any owner, officer, 
director, or employee of such U.S. person;
    (4) Furnishing information about whether any person has, has 
had, or proposes to have any business relationship (including a 
relationship by way of sale, purchase, legal or commercial 
representation, shipping or other transport, insurance, investment, 
or supply) with or in the State of Israel, with any business concern 
organized under the laws of the State of Israel, with any Israeli 
national or resident, or with any person which is known or believed 
to be restricted from having any business relationship with or in 
Israel;
    (5) Furnishing information about whether any person is a member 
of, has made contributions to, or is otherwise associated with or 
involved in the activities of any charitable or fraternal 
organization which supports the State of Israel; and,
    (6) Paying, honoring, confirming, or otherwise implementing a 
letter of credit which contains any condition or requirement against 
doing business with the State of Israel.
    (b) Under Section 8(a), the following types of activities are 
not forbidden ``compliance with the boycott,'' and are therefore 
exempted from Section 8(a)'s prohibitions listed in paragraphs 
(a)(1)-(6) above:
    (1) Complying or agreeing to comply with requirements:
    (i) Prohibiting the import of goods or services from Israel or 
goods produced or services provided by any business concern 
organized under the laws of Israel or by nationals or residents of 
Israel; or,
    (ii) Prohibiting the shipment of goods to Israel on a carrier of 
Israel, or by a route other than that prescribed by the boycotting 
country or the recipient of the shipment;
    (2) Complying or agreeing to comply with import and shipping 
document requirements with respect to the country of origin, the 
name of the carrier and route of shipment, the name of the supplier 
of the shipment or the name of the provider of other services, 
except that no information knowingly furnished or conveyed in 
response to such requirements may be stated in negative, 
blacklisting, or similar exclusionary terms, other than with respect 
to carriers or route of shipments as may be permitted by such 
regulations in order to comply with precautionary requirements 
protecting against war risks and confiscation;
    (3) Complying or agreeing to comply in the normal course of 
business with the unilateral and specific selection by a boycotting 
country, or national or resident thereof, of carriers, insurance, 
suppliers of services to be performed within the boycotting country 
or specific goods which, in the normal course of business, are 
identifiable by source when imported into the boycotting country;
    (4) Complying or agreeing to comply with the export requirements 
of the boycotting country relating to shipments or transshipments of 
exports to Israel, to any business concern of or organized under the 
laws of Israel, or to any national or resident of Israel;
    (5) Compliance by an individual or agreement by an individual to 
comply with the immigration or passport requirements of any country 
with respect to such individual or any member of such individual's 
family or with requests for information regarding requirements of 
employment of such individual within the boycotting country; and,
    (6) Compliance by a U.S. person resident in a foreign country or 
agreement by such person to comply with the laws of that country 
with respect to his or her activities exclusively therein, and such 
regulations may contain exceptions for such resident complying with 
the laws or regulations of that foreign country governing imports 
into such country of trademarked, trade named, or similarly 
specifically identifiable products, or components of products for 
his or her own use, including the performance of contractual 
services within that country, as may be defined by such regulations.

(End of clause)

    140. Section 652.226-70 is added to read as follows:


652.226-70  Certification of status as a minority business enterprise.

    As prescribed in 626.200-70, insert the following provision:

Certification of Status as a Minority Business Enterprise (Aug 1999)

    The Bidder/Offeror/Supplier certifies that it [  ] is [  ] is 
not [check one] a minority business enterprise which is defined as a 
business which is at least 51 percent owned

[[Page 43632]]

by one or more minority individuals or, in the case of a publicly 
owned business, at least 51 percent of its voting stock is owned by 
one or more minority individuals, and whose management and daily 
operations are controlled by one or more such individuals. For 
purposes of this definition, minority individuals are:

[Check the applicable block]
    [  ] Black Americans
    [  ] Hispanic Americans
    [  ] Native Americans
    [  ] Asian-Pacific Americans
    [  ] Other groups whose members are U.S. citizens and are found 
to be disadvantaged by the Small Business Administration pursuant to 
Section 8(d) of the Small Business Act, as amended (15 U.S.C. 
637(d)), or the Secretary of Commerce.

(End of provision)
Alternate I (Aug 1999).
Certification of Status as a Minority Business Enterprise (Alternate 
I) (Aug 1999)

    (a) If you are a minority-owned business, please indicate in the 
comments section of your quote/response the applicable minority 
designation from those listed below. If no comments are received, it 
shall be assumed that you are not a minority-owned business. This 
request for information is to assist the Department collect 
statistics on awards to minority-owned businesses and will not 
influence the award decision.
    (b) A minority business enterprise is defined as a business 
which is at least 51 percent owned by one or more minority 
individuals or, in the case of a publicly owned business, at least 
51 percent of its voting stock is owned by one or more minority 
individuals, and whose management and daily operations are 
controlled by one or more such individuals. For purposes of this 
definition, minority individuals are: Black Americans; Hispanic 
Americans; Native Americans; Asian-Pacific Americans; and, other 
groups whose members are U.S. citizens and are found to be 
disadvantaged by the Small Business Administration pursuant to 
Section 8(d) of the Small Business Act, as amended (15 U.S.C. 
637(d)), or the Secretary of Commerce.

(End of provision)

    141. Section 652.228-70 is amended by revising the introductory 
text to read as follows:


652.228-70  Indemnification.

    As prescribed in 628.7001(b), insert the following clause:
* * * * *
    142. Section 652.228-71 is revised to read as follows:


652.228-71  Worker's compensation insurance (Defense Base Act)--
Services

    As prescribed in 628.305(b), insert the following clause:

Worker's Compensation Insurance (Defense Base Act)--Services (Aug 1999)

    (a) This clause supplements FAR 52.228-3.
    (b) The contractor agrees to procure Defense Base Act (DBA) 
insurance pursuant to the terms of the contract between the 
Department of State and the Department's DBA insurance carrier 
unless the contractor has a DBA self-insurance program approved by 
the Department of Labor. The contractor shall submit a copy of the 
Department of Labor's approval to the contracting officer upon 
contract award. The current rate under the Department of State 
contract is [contracting officer insert rate] of compensation for 
services.
    (c) Since the Department of State has obtained a waiver of DBA 
coverage for contractor employees who are not citizens of, residents 
of, or hired in the United States, the contractor agrees to provide 
such employees with worker's compensation benefits as required by 
the laws of the country in which the employees are working, or by 
the laws of the employee's native country, whichever offers greater 
benefits.
    (d) The contractor agrees to insert a clause substantially the 
same as this one in all subcontracts to which the DBA is applicable. 
Subcontractors shall be required to insert a similar clause in any 
of their subcontracts subject to the DBA.
    (e) Should the rates for DBA insurance coverage increase or 
decrease during the performance of this contract, the Department 
shall modify this contract accordingly.
    (f) The contractor shall demonstrate to the satisfaction of the 
contracting officer that the equitable adjustment as a result of the 
insurance increase or decrease does not include any reserve for such 
insurance. Adjustment shall not include any overhead, profit, 
general and administrative expenses, etc.

(End of clause)
Alternate I (Aug 1999). If the contract is for construction, as 
prescribed in 628.305 (b), substitute the last sentence of paragraph 
(b) to read as follows: ``The current rate under the Department of 
State contract is [contracting officer insert rate] of compensation 
for construction.''


652.228-72  [Removed and reserved]

    143. Section 652.228-72 is removed and reserved.


652.228-73  [Removed and reserved]

    144. Section 652.228-73 is removed and reserved.
    145. Section 652.228-74 is revised to read as follows:


652.228-74 Defense Base Act insurance rates--Limitation--Fixed-price.

    As prescribed in 628.306, insert the following provision:

Defense Base Act Insurance Rates--Limitation--Fixed-Price (Aug 1999)

    (a) The Department of State has entered into a contract with an 
insurance carrier to provide DBA insurance to Department of State 
contractors at a contracted rate. The rates for this insurance are 
as follows:
    Services @ [contracting officer insert current rate] of 
compensation; or
    Construction @ [contracting officer insert current rate] of 
compensation.
    (b) Bidders/Offerors should compute the total compensation 
(direct salary plus differential, but excluding per diem, housing 
allowance and other miscellaneous post allowances) to be paid to 
employees who will be covered by DBA insurance and the cost of DBA 
insurance in their bid/proposal using the foregoing rate, and insert 
the totals in the spaces provided for the base year and each year 
thereafter, if applicable. The DBA insurance cost shall be included 
in the total fixed price. The DBA insurance costs shall be 
reimbursed directly to the contractor.
    (1) Compensation of Covered Employees: ____________________
    (2) Defense Base Act Insurance Costs: ____________________
    (3) Total Cost: ____________________
    (c) Bidders/offerors shall include a statement as to whether or 
not local nationals or third country nationals will be employed on 
the resultant contract.

(End of provision)


652.228-75  [Removed and reserved]

    146. Section 652.228-75 is removed and reserved.
    147. Section 652.228-76 is revised to read as follows:


652.228-76  Defense Base Act insurance rates--Limitation--Cost-
reimbursement, labor-hour, and time-and-materials.

    As prescribed in 628.307, insert the following provision:

Defense Base Act Insurance Rates--Limitation--Cost-Reimbursement, 
Labor-Hour, and Time-and-Materials (Aug 1999)

    (a) The Department of State has entered into a contract with an 
insurance carrier to provide DBA insurance to Department of State 
contractors at a contracted rate. In preparing the cost proposal, 
the offeror shall use the following rates in computing the cost for 
DBA insurance:
    Services @ [contracting officer insert current rate] of 
compensation (direct salary plus differential, but excluding per 
diem, housing allowance, education allowance, and miscellaneous 
allowances); or
    Construction @ [contracting officer insert current rate] of 
compensation.
    (b) These rates apply to all job classifications in those 
particular categories. The successful offeror shall be advised of 
the name and address of the insurance broker who will process the 
DBA insurance coverage.
    (c) Should an offeror compute or include higher DBA insurance 
rates, the rates shall be disallowed.
    (d) Offerors shall include a statement as to whether or not 
local nationals or third country nationals will be employed on the 
resultant contract.

(End of provision)


652.228-77  [Removed]

    148. Section 652.228-77 is removed.
    149. Section 652.229-70 is amended by revising the introductory 
text to read as follows:

[[Page 43633]]

652.229-70  Excise tax exemption statement for contractors within the 
United States.

    As prescribed in 629.401-70, insert the following clause:
* * * * *
    150. Section 652.229-71 is added to read as follows:


652.229-71  Personal property disposition at posts abroad.

    As prescribed in 629.402-1-70, insert the following clause:

Personal Property Disposition at Posts Abroad (Aug 1999)

    Regulations at 22 CFR Part 136 require that U.S. Government 
employees and their families do not profit personally from sales or 
other transactions with persons who are not themselves entitled to 
exemption from import restrictions, duties, or taxes. Should the 
contractor experience importation or tax privileges in a foreign 
country because of its contractual relationship to the United States 
Government, the contractor shall observe the requirements of 22 CFR 
Part 136 and all policies, rules, and procedures issued by the chief 
of mission in that foreign country.

(End of clause)

    151. Section 652.232-70 is amended by revising the clause heading 
and by revising the first sentence of paragraph (c) of the clause to 
read as follows:


652.232-70 Payment schedule and invoice submission--(Fixed-price)

* * * * *

Payment Schedule and Invoice Submission (Fixed-Price) (Aug 1999)

* * * * *
    (c) Invoice Submission. Invoices shall be submitted in an 
original and [contracting officer insert appropriate number of 
copies] to the office identified in Block 10 of the SF-26, Block 23 
of the SF-33, or Block 18b of the SF-1449. * * *
* * * * *
    152. Section 652.232-71 is amended by revising the clause heading 
and by revising the last sentence of paragraph (a) of the clause to 
read as follows:


652.232-71  Voucher submission (Cost-reimbursement).

* * * * *

Voucher Submission (Cost-Reimbursement) (Aug 1999)

    (a) * * * All vouchers shall be submitted to the office 
identified in Block 10 of the SF-26, Block 23 of the SF-33, or Block 
18b of the SF-1449.
* * * * *
    153. Section 652.232-72 is added to read as follows:


652.232-72  Limitation of funds.

    As prescribed in 632.705-70, insert the following clause:

Limitation of Funds (Aug 1999)

    (a) Of the total price in Section B (or the ``Prices'' section), 
only the amount stated on the contract award document or subsequent 
modifications is now available for payment and obligated under this 
contract. It is anticipated that from time to time, additional funds 
will be obligated under the contract until the total price of the 
contract is obligated.
    (b) The Government is not obligated to pay or reimburse the 
contractor more than the amount obligated pursuant to this clause. 
The contractor agrees to perform the contract up to the point at 
which the total amount paid and payable by the Government (including 
amounts payable for subcontracts and settlement costs if this 
contract is terminated for convenience) approximates but does not 
exceed the total amount obligated.
    (c)(1) It is contemplated that funds now obligated under this 
contract will cover the work to be performed until [contracting 
officer insert date].
    (2) If the contractor considers the funds obligated under this 
contract to be insufficient to cover the work to be performed until 
that date, or another date agreed to by the parties, the contractor 
shall notify the contracting officer in writing and indicate the 
date on which it expects expended funds to approximate 75 percent of 
the total amount obligated. The notice shall state the estimated 
amount of additional funds required to continue performance through 
the date specified in paragraph (c)(1) of this clause or another 
date agreed to by the parties.
    (3) If, after notification is provided pursuant to paragraph 
(c)(2) of this clause, additional funds are not obligated, or an 
earlier date than the date in paragraph (c)(1) of this clause is not 
agreed to, the contractor shall not be obligated to continue 
performance under this contract (including actions under the 
termination clause of this contract) beyond the funds obligated for 
contract performance.
    (d) When additional funds are obligated from time to time for 
continued performance of this contract, the contract shall be 
modified to increase the funds obligated and to indicate the period 
of performance for which funds are applicable. The contractor may 
notify the contracting officer as provided in paragraph (c)(2) of 
this clause regarding any additional funds obligated.
    (e) If the contractor incurs additional costs or is delayed in 
the performance of work under this contract, solely by reason of the 
Government's failure to obligate additional funds in amounts 
sufficient for the timely performance of this contract, an equitable 
adjustment may be made to the price, or time of delivery, or both.
    (f) This clause shall become inoperative upon obligation of 
funds sufficient to cover the full price stated in the contract, 
except for rights and obligations then existing under this clause.
    (g) Nothing in this clause shall affect the Government's right 
to terminate the contract for convenience or default.

(End of clause)

    154. Section 652.236-70 is added to read as follows:


652.236-70  Accident prevention.

    As prescribed in 636.513, insert the following clause:

Accident Prevention (Aug 1999)

    (a) General. The contractor shall provide and maintain work 
environments and procedures which will safeguard the public and 
Government personnel, property, materials, supplies, and equipment 
exposed to contractor operations and activities; avoid interruptions 
of Government operations and delays in project completion dates; 
and, control costs in the performance of this contract. For these 
purposes, the contractor shall:
    (1) Provide appropriate safety barricades, signs and signal 
lights;
    (2) Comply with the standards issued by any local government 
authority having jurisdiction over occupational health and safety 
issues; and,
    (3) Ensure that any additional measures the contracting officer 
determines to be reasonably necessary for this purpose are taken.
    (4) [The contracting officer shall specify additional 
requirements regarding safety if the work involves scaffolding or 
other work at heights above 2 meters, trenches or other excavation 
greater than 1 meter, earth moving equipment, electrical hazards, 
work in confined spaces (limited exits, potential for oxygen less 
than 19.5%, toxic or combustible atmosphere, potential for solid or 
liquid engulfment, or other hazards considered to be immediately 
dangerous to life or health such as water tanks, transformer vaults, 
sewers, cisterns, etc.), or hazardous materials (especially those 
used indoors, e.g., paints, solvents, etc.).]
    (b) Records. The contractor shall maintain an accurate record of 
exposure data on all accidents incident to work performed under this 
contract resulting in death, traumatic injury, occupational disease, 
or damage to or theft of property, materials, supplies, or 
equipment. The contractor shall report this data in the manner 
prescribed by the contracting officer.
    (c) Subcontracts. The contractor shall be responsible for its 
subcontractors' compliance with this clause.
    (d) Written program. Before commencing work, the contractor 
shall:
    (1) Submit a written plan for implementing this clause; and,
    (2) Meet with the contracting officer to discuss and develop a 
mutual understanding relative to administration of the overall 
safety program.
    (e) Notification. The contracting officer shall notify the 
contractor of any non-compliance with these requirements and the 
corrective actions required. This notice, when delivered to the 
contractor or the contractor's representative on site, shall be 
deemed sufficient notice of the non-compliance and corrective action 
required. After receiving the notice, the contractor shall 
immediately take corrective action. If the contractor fails or 
refuses to promptly take corrective action, the contracting officer

[[Page 43634]]

may issue an order suspending all or part of the work until 
satisfactory corrective action has been taken. The contractor shall 
not be entitled to any equitable adjustment of the contract price or 
extension of the performance schedule on any suspension of work 
order issued under this clause.

(End of clause)


652.237-71  [Amended]

    155. Section 652.237-71 is amended by revising the clause date to 
``(Aug 1999)''; and, in paragraph (c) of the clause by removing the 
words ``Building Pass Application Unit, Room 309, State Annex Number 1, 
Columbia Plaza., 2401 E Street, NW, Washington, DC'' and inserting the 
words ``Building Pass Application Unit, Room B266, Department of State, 
2201 C Street, NW, Washington, DC'' in their place.


652.237-72  [Amended]

    156. Section 652.237-72 is amended by revising the clause date to 
``(Aug 1999)''; and, in paragraph (a) of the clause by removing the 
words ``Presidents' Day'' from the list of designated holidays and 
inserting the words ``Washington's Birthday'' in their place.


652.242-70  [Amended]

    157. Section 652.242-70 is amended by revising the clause date to 
``(Aug 1999)''; and by deleting the parenthetical ``[insert name of 
COR]'' in paragraph (b) of the clause and inserting the words ``[insert 
job title of COR]'' in their place.
    158. Section 652.242-71 is amended by revising the introductory 
text to read as follows:


652.242-71  Notice of shipments.

    As prescribed in 642.1406-2-70(a), insert the following clause:
* * * * *
    159. Section 652.242-72 is amended by revising the introductory 
text to read as follows:


652.242-72  Shipping instructions.

    As prescribed in 642.1406-2-70(b), insert the following clause:
* * * * *
    160. Section 652.242-73 is added to read as follows:


652.242-73  Authorization and performance.

    As prescribed in 642.271(b), insert a clause substantially the same 
as follows:

Authorization and Performance (Aug 1999)

    (a) The contractor warrants the following:
    (1) That is has obtained authorization to operate and do 
business in the country or countries in which this contract will be 
performed;
    (2) That is has obtained all necessary licenses and permits 
required to perform this contract; and,
    (3) That it shall comply fully with all laws, decrees, labor 
standards, and regulations of said country or countries during the 
performance of this contract.
    (b) If the party actually performing the work will be a 
subcontractor or joint venture partner, then such subcontractor or 
joint venture partner agrees to the requirements of paragraph (a) of 
this clause.

(End of clause)
Alternate I (Aug 1999). If the contract is for overseas local guard 
services, as prescribed in 642.271(b), substitute the following 
paragraphs (a)(1) and (a)(2) for paragraphs (a)(1) and (a)(2) of the 
basic clause:
    ``(a)(1) That it has obtained authorization to operate and do 
business in the country or countries in which this contract will be 
performed, or will obtain such authorization before performance of 
this contract begins;
    ``(a)(2) That it has obtained all necessary licenses and permits 
required to perform this contract, or will obtain such licenses and 
permits before performance of this contract begins;''

    161. Section 652.243-70 is added to read as follows:


652.243-70  Notices.

    As prescribed in 643.104-70, insert the following clause:

Notices (Aug 1999)

    Any notice or request relating to this contract given by either 
party to the other shall be in writing. Said notice or request shall 
be mailed or delivered by hand to the other party at the address 
provided in the schedule of the contract. All modifications to the 
contract must be made in writing by the contracting officer.

(End of clause)


652.246-70  [Removed]

    162. Section 652.246-70 is removed.

PART 653--FORMS


653.213-70  [Removed]

    163. Section 653.213-70 is removed.
    164. Section 653.219 is amended by revising the section heading to 
read as follows:


653.219  Small business programs.

    165. Section 653.219-70 is revised to read as follows:


653.219-70  DOS form DS-1910, Small Business Agency Review--Actions 
Above the Simplified Acquisition Threshold.

    As prescribed in 619.501(c), DS-1910 is prescribed for use in 
documenting set-aside decisions.

    Dated: August 3, 1999.
Lloyd W. Pratsch,
Procurement Executive.
[FR Doc. 99-20556 Filed 8-10-99; 8:45 am]
BILLING CODE 4710-05-P