[Federal Register Volume 65, Number 192 (Tuesday, October 3, 2000)]
[Rules and Regulations]
[Pages 58921-58931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-25046]


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ENVIRONMENTAL PROTECTION AGENCY

48 CFR Parts 1511, 1515, 1517, 1519, 1523, 1528, 1535, 1542, 1545 
and 1552

[FRL-6878-9]


Acquisition Regulation; Administrative Amendments

AGENCY: Environmental Protection Agency (EPA).

ACTION: Interim rule with request for comments.

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SUMMARY: EPA is issuing this interim rule amending the EPA Acquisition 
Regulation (EPAAR) to add clauses to the EPAAR which have been 
repeatedly used in EPA procurements but which have not formally been 
incorporated into the EPAAR, make other administrative changes, and 
remove from the EPAAR unnecessary coverage that duplicates existing 
Federal Acquisition Regulation (FAR) coverage.

DATES: Effective Date: October 3, 2000.
    Comment Date: Interested parties should submit written comments to 
the address shown below on or before December 4, 2000 to be considered 
in the formulation of a final rule.

ADDRESSES: Submit written comments to: U.S. Environmental Protection 
Agency, Office of Acquisition Management, 1200 Pennsylvania Avenue, 
NW., Attention: Paul Schaffer, Mail Code (3802R), Washington, DC 20460. 
Comments and data may also be submitted electronically by sending 
electronic mail (E-mail) to: [email protected]. Electronic comments 
must be submitted as an ASCII file avoiding the use of special 
characters and any form of encryption. Comments and data will also be 
accepted on disks in Corel WordPerfect format or ASCII file format. No 
confidential business information (CBI) should be submitted through e-
mail. Electronic comments on this rule may be filed on-line at many 
Federal Depository Libraries.

FOR FURTHER INFORMATION CONTACT: Paul Schaffer, U.S. EPA, Office of 
Acquisition Management, Mail Code (3802R), 1200 Pennsylvania Avenue, 
NW, Washington, DC 20460, Telephone: (202) 564-4366.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule amends the EPA Acquisition Regulation (EPAAR) (48 
CFR Chapter 15) to publish for public comment EPA contract clauses 
which have not previously undergone formal Agency rulemaking subject to 
public review and comment because of the necessity of complying with 
FAR policies and procedures on a timely basis. As a result of recent 
procurement reform and streamlining initiatives, EPA has undertaken an 
extensive review of its procurement regulations. As part of this 
effort, EPA identified a number of clauses it has regularly used in its 
solicitations and contracts which had not previously undergone formal 
Agency rulemaking subject to public review and comment and which had 
not been incorporated into the EPAAR. This rulemaking action is to 
incorporate these existing EPA clauses into the EPAAR. EPA does not 
anticipate any adverse comments because, as stated above, these clauses 
have been regularly used in EPA solicitations and contracts for some 
time now without any objections or questions raised by entities 
responding to EPA procurements and/or contracting with the Agency.

B. Executive Order 12866

    This interim rule is not a significant regulatory action for the 
purposes of Executive Order 12866; therefore, no review is required by 
the Office of Information and Regulatory Affairs within the Office of 
Management and Budget (OMB).

C. Paperwork Reduction Act

    The information collection requirement in 1552.245-73, Government 
Property, is covered by OMB clearance number 9000-0075. The Paperwork 
Reduction Act does not apply to any other clause herein because this 
interim rule does not contain any new information collection 
requirements that require the approval of OMB under the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

D. Regulatory Flexibility Act (RFA), as Amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 
U.S.C. 601 et seq.

    The RFA generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to notice

[[Page 58922]]

and comment rulemaking requirements under the Administrative Procedure 
Act or any other statute unless the agency certifies that the rule will 
not have a significant economic impact on a substantial number of small 
entities. Small entities include small businesses, small organizations, 
and small governmental jurisdictions.
    For purposes of assessing the impact of today's rule on small 
entities, small entity is defined as: (1) A small business that meets 
the definition of a small business found in the Small Business Act and 
codified at 13 CFR 121.201; (2) a small governmental jurisdiction that 
is a government of a city, county, town, school district or special 
district with a population of less than 50,000; and (3) a small 
organization that is any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.
    After considering the economic impacts of today's interim rule on 
small entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. In 
determining whether a rule has a significant economic impact on a 
substantial number of small entities, the impact of concern is any 
significant adverse economic impact on small entities, since the 
primary purpose of the regulatory flexibility analyses is to identify 
and address regulatory alternatives ``which minimize any significant 
economic impact of the proposed rule on small entities.'' 5 U.S.C. 603 
and 604. Thus, an agency may certify that a rule will not have a 
significant economic impact on a substantial number of small entities 
if the rule relieves regulatory burden, or otherwise has a positive 
economic effect on all of the small entities subject to the rule. This 
interim rule merely incorporates existing EPA solicitation and contract 
provisions into the EPAAR and will have no adverse impact on small 
entities. The requirements under this interim rule impose no additional 
reporting, record-keeping, or compliance costs on small entities.

E. Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess 
their regulatory actions on State, local, and Tribal governments, and 
the private sector. This interim rule does not contain a Federal 
mandate that may result in expenditures of $100 million or more for 
State, local, and Tribal governments, in the aggregate, or the private 
sector in one year. Any private sector costs for this action relate to 
paperwork requirements and associated expenditures that are far below 
the level established for UMRA applicability. Thus, the rule is not 
subject to the requirements of sections 202 and 205 of the UMRA.

F. Executive Order 13045

    Executive Order 13045, Protection of Children from Environmental 
Health Risks and Safety Risks (62 FR 19885, April 23, 1997), applies to 
any rule that: (1) Is determined to be economically significant as 
defined under Executive Order 12866, and (2) concerns an environmental 
health or safety risk that EPA has reason to believe may have a 
disproportionate effect on children. If the regulatory action meets 
both criteria, the Agency must evaluate the environmental health or 
safety effects of the planned rule on children, and explain why the 
planned regulation is preferable to other potentially effective and 
reasonably feasible alternatives considered by the Agency.
    This rule is not subject to Executive Order 13045 because it is not 
an economically significant rule as defined by Executive Order 12866, 
and because it does not involve decisions on environmental health or 
safety risks.

G. Executive Order 13132

    Executive Order 13132 entitled, ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''
    Under section 6 of Executive Order 13132, EPA may not issue a 
regulation that has federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the Federal government provides the funds necessary to pay the direct 
compliance costs incurred by State and local governments, or EPA 
consults with State and local officials early in the process of 
developing the proposed regulation. EPA also may not issue a regulation 
that has federalism implications and that preempts State law, unless 
the Agency consults with State and local officials early in the process 
of developing the proposed regulation.
    This interim rule does not have federalism implications. It will 
not have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132. This interim rule merely 
incorporates existing EPA solicitation and contract provisions into the 
EPAAR. Thus, the requirements of section 6 of the Executive Order do 
not apply to this rule.

H. Executive Order 13084

    Under Executive Order 13084, EPA may not issue a regulation that is 
not required by statute, that significantly or uniquely affects the 
communities of Indian Tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by Tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, Executive Order 13084 
requires EPA to provide to the OMB, in a separately identified section 
of the preamble to the rule, a description of the extent of EPA's prior 
consultation with representatives of affected Tribal governments, a 
summary of the nature of their concerns, and a statement supporting the 
need to issue the regulation. In addition, Executive Order 13084 
requires EPA to develop an effective process permitting elected and 
other representatives of Indian Tribal government ``to provide 
meaningful and timely input in the development of regulatory policies 
on matters that significantly or uniquely affect their communities.''
    Today's rule does not significantly or uniquely affect the 
communities of Indian Tribal governments. Accordingly, the requirements 
of section 3(b) of Executive Order 13084 do not apply to this rule.

I. National Technology Transfer and Advancement Act of 1995

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTTAA), Public Law 104-113, section 12(d) (15 U.S.C. 272 
note), directs EPA to use voluntary consensus standards in its 
regulatory activities unless to do so would be inconsistent with 
applicable law or otherwise impractical. Voluntary consensus standards 
are technical standards (e.g., materials specifications, test methods, 
sampling procedures phaphaand business practices) that are developed or 
adopted by voluntary consensus standards bodies. The NTTAA directs

[[Page 58923]]

EPA to provide Congress, through OMB, explanations when the Agency 
decides not to use available and applicable voluntary consensus 
standards. This rule does not involve technical standards. Therefore, 
EPA did not consider the use of any voluntary consensus standards.

J. Submission to Congress and the General Accounting Office

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rules report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).

List of Subjects in 48 CFR Parts 1511, 1515, 1517, 1519, 1523, 
1528, 1535, 1542, 1545, and 1552

    Government procurement.

    Authority: The provisions of this regulation are issued under 5 
U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c); 
and 41 U.S.C. 418b. 48 CFR Chapter 15 is amended as follows:

    1. The authority citations for 48 CFR parts 1511, 1515, 1517, 1519, 
1523, 1528, 1535, 1542, 1545, and for part 1552 continue to read as 
follows:

    Authority: 5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended; 
40 U.S.C. 486(c); and 41 U.S.C. 418b.


    2. Section 1511.011-80 is added to read as follows:


1511.011-80  Data Standards for the transmission of laboratory 
measurement results.

    The contracting officer shall insert the clause at 1552.211-80 in 
all solicitations and contracts when the contract requires the 
electronic transmission of environmental measurements from laboratories 
to the Environmental Protection Agency (EPA).

    3. Section 1515.209 is amended by adding paragraph (c) to read as 
follows:


1515.209  Solicitation provisions and contract clauses.

* * * * *
    (c) The contracting officer shall insert the clause at 1552.215-75, 
Past Performance Information, or a clause substantially the same as 
1552.215-75, in all competitively negotiated acquisitions with an 
estimated value in excess of $100,000.

    4. Section 1517.208 is amended by removing paragraph (a) and 
redesignating paragraphs (b) through (g) as (a) through (f) 
respectively and adding paragraph (g) to read as follows:


Sec. 1517.208  Solicitation provisions and contract clauses.

* * * * *
    (g) The Contracting officer shall insert the clause at 1552.217-77, 
Option to Extend the Term of the Contract--Fixed Price, when 
applicable.

    5. Subpart 1519.2 is amended by adding section 1519.203 to read as 
follows:


Sec. 1519.203  Mentor protege.

    (a) The Contracting officer shall insert the clause at 1552.219-70, 
Mentor-Protege Program, in all contracts under which the Contractor has 
been approved to participate in the EPA Mentor-Protege Program.
    (b) The Contracting officer shall insert the provision at 1552.219-
71, Procedures for Participation in the EPA Mentor-Protege Program, in 
all solicitations valued at $500,000 or more which will be cost-plus-
award-fee or cost-plus fixed-fee contracts.

    6. Subpart 1519.2 is amended by adding section 1519.204 to read as 
follows:


Sec. 1519.204  Small disadvantaged business participation.

    (a) The Contracting officer shall insert the provision at 1552.219-
72, Small Disadvantaged Business Participation Program, or a provision 
substantially the same as 1552.219-72, in solicitations for 
acquisitions subject to FAR 19.12 that will evaluate the extent of the 
participation of Small Disadvantaged Business (SDB) concerns in the 
performance of a resulting contract.
    (b) The Contracting officer shall insert the clause at 1552.219-73, 
Small Disadvantaged Business Targets, or one substantially the same as 
1552.219-73, in solicitations and contracts for acquisitions subject to 
FAR 19.12 that evaluate the extent of participation of SDB concerns in 
the performance of the contract and which included solicitation 
provision 1552.219-72.
    (c) The Contracting officer shall insert the evaluation provision 
at 1552.219-74, Small Disadvantaged Business Participation Evaluation 
Factor, (and assign a value to it), or one substantially the same as 
1552.219-74, in solicitations for acquisitions subject to FAR 19.12 
that include the provision at 1552.219-72 and will evaluate the extent 
of participation of SDB concerns in the performance of the contract.

    7. section 1523.303-72 is added to read as follows:


Sec. 1523.303-72  Care of Laboratory Animals.

    Contracting officers shall insert the clause at 1552.223-72, Care 
of Laboratory Animals, in all contracts involving the use of 
experimental animals.
    8. Section 1523.7003 is amended by designating the existing text as 
paragraph (b) and adding a new paragraph (a) to read as follows:


Sec. 1523.7003  Contract clause.

    (a) Rehabilitation Act Notice.
    Contracting officers shall insert the clause at 1552.239-70, 
Rehabilitation Act Notice, or one substantially the same as this 
clause, in all solicitations and contracts where the contractor may be 
required to provide any type of support to EPA in connection with EPA 
programs and activities, including conferences, symposia, workgroups, 
meetings, etc.
    (b) * * *

    9. Part 1528 is added to read as follows:

PART 1528--INSURANCE

Subpart 1528.1--Insurance


1528.101  Insurance Liability to Third Persons.

    Contracting officers shall insert the clause at 1552,228-70, 
Insurance Liability to Third Persons, in cost-reimbursement 
solicitations and contracts, except those for construction and 
architect-engineer services. Note: This clause may be used in contracts 
awarded utilizing architect-engineer services such as requirements for 
Superfund cleanups (e.g., response action contracts). The clause does 
not apply to Superfund indemnification for third party pollution 
liability or coverage for commercial pollution liability insurance as 
prescribed by section 119 of CERCLA as amended by SARA.

    10. Section 1535.007-070 is amended by adding paragraph (g) to read 
as follows:


1535.007-070  Contract clauses.

* * * * *
    (g) Contracting officers shall insert the clause at 1552.235-80, 
Access to Confidential Business Information (CBI), in all types of 
contracts when it is possible that it will be necessary for the 
contractor to have access to CBI during

[[Page 58924]]

the performance of tasks required under the contract.
    11. Section 1542.705 is amended by designating the existing 
paragraph as (a) and adding paragraph (b) as follows:


1542.705  Final indirect cost rates.

    (a) * * *
    (b) Contracting officers shall insert the clause at 1552.242-72, 
Financial Administrative Contracting officers (FACO), in cost-
reimbursement contracts when the Environmental Protection Agency (EPA) 
is the cognizant federal agency and a FACO will be assigned.

    12. Section 1545.106 is amended by adding a new paragraph (d) to 
read as follows:


1545.106  Government property clauses.

* * * * *
    (d) Contracting officers shall insert the clause at 1552.245-73, 
Government Property, in all cost-type solicitations and contracts 
regardless of whether Government Property is initially provided, and in 
all fixed-price solicitations and contracts whenever Government 
furnished property is provided.
* * * * *
    13. Section 1552.208-70, Printing, is revised to read as follows:


1552.208-70  Printing.

    As prescribed in 1508.870, insert the following clause:

Printing

October 2000

    (a) Definitions.
    ``Printing'' is the process of composition, plate making, 
presswork, binding and microform; or the end items produced by such 
processes and equipment. Printing services include newsletter 
production and periodicals which are prohibited under EPA contracts.
    ``Composition'' applies to the setting of type by hot-metal 
casting, photo typesetting, or electronic character generating 
devices for the purpose of producing camera copy, negatives, a plate 
or image to be used in the production of printing or microform.
    ``Camera copy'' (or ``camera-ready copy'') is a final document 
suitable for printing/duplication.
    ``Desktop Publishing'' is a method of composition using 
computers with the final output or generation of camera copy done by 
a color inkjet or color laser printer. This is not considered 
``printing.'' However, if the output from desktop publishing is 
being sent to a typesetting device (i.e., Linotronic) with camera 
copy being produced in either paper or negative format, these 
services are considered ``printing''.
    ``Microform'' is any product produced in a miniaturized image 
format, for mass or general distribution and as a substitute for 
conventionally printed material. Microform services are classified 
as printing services and includes microfiche and microfilm. The 
contractor may make up to two sets of microform files for archival 
purposes at the end of the contract period of performance.
    ``Duplication'' means the making of copies on photocopy machines 
employing electrostatic, thermal, or other processes without using 
an intermediary such as a negative or plate.
    ``Requirement'' means an individual photocopying task. (There 
may be multiple requirements under a Work Assignment or Delivery 
Order. Each requirement would be subject to the photocopying 
limitation of 5,000 copies of one page or 25,000 copies of multiple 
pages in the aggregate per requirement).
    (b) Prohibition.
    The contractor shall not engage in, nor subcontract for, any 
printing in connection with the performance of work under this 
contract. Duplication of more than 5,000 copies of one page or more 
than 25,000 copies of multiple pages in the aggregate per 
requirement constitutes printing. The intent of the limitation is 
not to allow the duplication of final documents for use by the 
Agency. In compliance with EPA Order 2200.4a, EPA Publication Review 
Procedure, the Office of Communications, Education, and Media 
Relations is responsible for the review of materials generated under 
a contract published or issued by the Agency under a contract 
intended for release to the public.
    (c) Affirmative Requirements.
    (1) Unless otherwise directed by the contracting officer, the 
contractor shall use double-sided copying to produce any progress 
report, draft report or final report.
    (2) Unless otherwise directed by the contracting officer, the 
contractor shall use recycled paper for reports delivered to the 
Agency which meet the minimum content standards for paper and paper 
products as set forth in EPA's Web site for the Comprehensive 
Procurement Guidelines at: http://www.epa.gov/cpg/.
    (d) Permitted Contractor Activities.
    (1) The prohibitions contained in paragraph (b) do not preclude 
writing, editing, or preparing manuscript copy, or preparing related 
illustrative material to a final document (camera-ready copy) using 
desktop publishing.
    (2) The contractor may perform a requirement involving the 
duplication of less than 5,000 copies of only one page, or less than 
25,000 copies of multiple pages in the aggregate, using one color 
(black), so long as such pages do not exceed the maximum image size 
of 10\3/4\ by 14\1/4\ inches, or 11 by 17 paper stock. Duplication 
services below these thresholds are not considered printing. If 
performance of the contract will require duplication in excess of 
these limits, contractors must immediately notify the contracting 
officer in writing. EPA may then seek a waiver from the Joint 
Committee on Printing, U. S. Congress. The intent of the limitation 
is to allow ``incidental'' duplication (drafts, proofs) under a 
contract. The intent of the limitation is not to allow the 
duplication of copies of final documents for use by the Agency or as 
distributed as instructed by the Agency.
    (3) The contractor may perform a requirement involving the 
multi-color duplication of no more than 100 pages in the aggregate 
using color copier technology, so long as such pages do not exceed 
the maximum image size of 10\3/4\ by 14\1/4\ inches, or 11 by 17 
paper stock. Duplication services below these thresholds are not 
considered printing. If performance of the contract will require 
duplication in excess of these limits, contractors must immediately 
notify the contracting officer in writing. EPA may then seek a 
waiver from the Joint Committee on Printing, U. S. Congress.
    (4) The contractor may perform the duplication of no more than a 
total of 100 diskettes or CD-ROM's. Duplication services below these 
thresholds are not considered printing. If performance of the 
contract will require duplication in excess of these limits, 
contractors must immediately notify the contracting officer in 
writing. EPA may then seek a waiver from the Joint Committee on 
Printing, U. S. Congress.
    (e) Violations.
    The contractor may not engage in, nor subcontract for, any 
printing in connection with the performance of work under the 
contract. The cost of any printing services in violation of this 
clause will be disallowed, or not accepted by the Government.
    (f) Flowdown Provision.
    The contractor shall include in each subcontract which may 
involve a requirement for any printing/duplicating/copying a 
provision substantially the same as this clause.

(End of clause )


    14. In Section 1552.211-70, in the clause ``Reports of Work'' and 
in alternate I revise the OMB clearance expiration date of ``January 
31, 2000'' to read ``February 28, 2003.''

    15. Section 1552.211-79, is amended by removing paragraph (a)(5), 
revising the last sentence in paragraph (b)(3), and revising paragraph 
(d) to read as follows:


1552.211-79  Compliance with EPA policies for information resources 
management.

* * * * *

    (b)(3) * * * (This document may be found at: http:www.epa.gov/docs/etsdop/.)
    (c) * * *
    (d) Electronic access. A complete listing, including full text, 
of documents included in the 2100 Series of the Agency's Directive 
System is maintained on the EPA Public Access Server on the Internet 
at http://epa.gov/docs/irmpoli8/.

(End of clause)


    16. Section 1552 .211-80, Data Standards for the Transmission of 
Laboratory Measurement Results, is added to read as follows:

[[Page 58925]]

1552.211-80  Data standards for the transmission of laboratory 
measurement results.

    As prescribed in 1511.011-80, insert the following clause:

Data Standards for the Transmission of Laboratory Measurement Results

October 2000

    This contract requires the transmission of environmental 
measurements to EPA. The transmission of environmental measurements 
shall be in accordance with the provisions of EPA Order 2180.2, 
dated December 10, 1987, which is incorporated by reference in this 
contract. Copies of the Order may be obtained by written request to: 
Office of Information Resources Management, Information Management 
and Systems Division, Mail Code (3404), Ariel Rios Building, 1200 
Pennsylvania Avenue, NW, Washington, DC 20460.

(End of clause)

    17. Section 1552 .215-75, Past Performance Information, is added to 
read as follows:


1552.215-75  Past Performance Information.

    As prescribed in 1515.209(c), insert the following clause:

Past Performance Information

October 2000

    (a) Offerors shall submit the information requested below as 
part of their proposal for both the offeror and any proposed 
subcontractors for subcontracts expected to exceed $  *  . The 
information may be submitted prior to other parts of the proposal in 
order to assist the Government in reducing the evaluation period.
    (b) Offerors shall submit a list of all or at least   *   
contracts and subcontracts completed in the last   *   years, and 
all contracts and subcontracts currently in process, which are 
similar in nature to this requirement.
    (1) The contracts and subcontracts listed may include those 
entered into with Federal, State and local governments, and 
commercial businesses, which are of similar scope, magnitude, 
relevance, and complexity to the requirement which is described in 
the RFP. Include the following information for each contract and 
subcontract listed:
    (a) Name of contracting activity.
    (b) Contract number.
    (c) Contract title.
    (d) Contract type.
    (e) Brief description of contract or subcontract and relevance 
to this requirement.
    (f) Total contract value.
    (g) Period of performance.
    (h) Contracting officer, telephone number, and E-mail address 
(if available).
    (i) Program manager/project officer, telephone number, and E-
mail address (if available).
    (j) Administrative Contracting officer, if different from (h) 
above, telephone number, and E-mail address (if available).
    (k) List of subcontractors (if applicable).
    (l) Compliance with subcontracting plan goals for small 
disadvantaged business concerns, monetary targets for small 
disadvantaged business participation, and the notifications 
submitted under FAR 19.1202-4 (b), if applicable.
    (c) Offerors should not provide general information on their 
performance on the identified contracts and subcontracts. General 
performance information will be obtained from the references.
    (1) Offerors may provide information on problems encountered and 
corrective actions taken on the identified contracts and 
subcontracts.
    (2) References that may be contacted by the Government include 
the contracting officer, program manager/project officer, or the 
administrative contracting officer identified above.
    (3) If no response is received from a reference, the Government 
will make an attempt to contact another reference identified by the 
offeror, to contact a reference not identified by the offeror, or to 
complete the evaluation with those references who responded. The 
Government shall consider the information provided by the 
references, and may also consider information obtained from other 
sources, when evaluating an offeror's past performance.
    (4) Attempts to obtain responses from references will generally 
not go beyond two telephonic messages and/or written requests from 
the Government, unless otherwise stated in the solicitation. The 
Government is not obligated to contact all of the references 
identified by the offeror.
    (d) If negative feedback is received from an offeror's 
reference, the Government will compare the negative response to the 
responses from the offeror's other references to note differences. A 
score will be assigned appropriately to the offeror based on the 
information. The offeror will be given the opportunity to address 
adverse past performance information obtained from references on 
which the offeror has not had a previous opportunity to comment, if 
that information makes a difference in the Government's decision to 
include the offeror in or exclude the offeror from the competitive 
range. Any past performance deficiency or significant weakness will 
be discussed with offerors in the competitive range during 
discussions.
    (e) Offerors must send Client Authorization Letters (see Section 
J of the solicitation) to each reference listed in their proposal to 
assist in the timely processing of the past performance evaluation. 
Offerors are encouraged to consolidate requests whenever possible 
(i.e., if the same reference has several contracts, send that 
reference a single notice citing all applicable contracts). Offerors 
may send Client Authorization Letters electronically to references 
with copies forwarded to the contracting officer.
    (1) If an offeror has no relevant past performance history, an 
offeror must affirmatively state that it possesses no relevant past 
performance history.
    (2) Client Authorization Letters should be mailed or E-mailed to 
individual references no later than five (5) working days after 
proposal submission. The offeror should forward a copy of the Client 
Authorization Letter to the contracting officer simultaneously with 
mailing to references.
    (f) Each offeror may describe any quality awards or 
certifications that indicate the offeror possesses a high-quality 
process for developing and producing the product or service 
required. Such awards or certifications include, for example, the 
Malcolm Baldrige Quality Award, other Government quality awards, and 
private sector awards or certifications.
    (1) Identify the segment of the company (one division or the 
entire company) which received the award or certification.
    (2) Describe when the award or certification was bestowed. If 
the award or certification is over three years old, present evidence 
that the qualifications still apply.
    (g) Past performance information will be used for both 
responsibility determinations and as an evaluation factor for award. 
The Past Performance Questionnaire identified in section J will be 
used to collect information on an offeror's performance under 
existing and prior contracts/subcontracts for products or services 
similar in scope, magnitude, relevance, and complexity to this 
requirement in order to evaluate offerors consistent with the past 
performance evaluation factor set forth in section M. References 
other than those identified by the offeror may be contacted by the 
Government and used in the evaluation of the offeror's past 
performance.
    (h) Any information collected concerning an offeror's past 
performance will be maintained in the official contract file.
    (i) In accordance with FAR 15.305 (a) (2) (iv), offerors with no 
relevant past performance history, or for whom information on past 
performance is not available, will be evaluated neither favorably 
nor unfavorably on past performance.

* Indicates that the contracting officer inserts applicable dollar 
figure and number.

(End of clause)

    18. Section1552.217-77 is added to read as follows:


1552.217-77  [Added]

    As prescribed in 1517.208(g), insert the following clause:

Option to Extend the Term of the Contract Fixed Price

October 2000

    The Government has the option to extend the term of this 
contract for______additional period(s). If more than______days 
remain in the contract period of performance, the Government, 
without prior written notification, may exercise this option by 
issuing a contract modification. To exercise this option within the 
last______days of the period of performance, the Government must 
provide to the Contractor written notification prior to that last 
______-day period. This preliminary notification does not commit the 
Government to exercising the option. Use of an option will result in 
the following contract modifications:

[[Page 58926]]

    (a) The ``Period of Performance'' clause will be amended as 
follows to cover the Base and Option Periods:

------------------------------------------------------------------------
         Period                 Start date               End date
------------------------------------------------------------------------
                         .......................  ......................
------------------------------------------------------------------------
                         .......................  ......................
------------------------------------------------------------------------
                         .......................  ......................
------------------------------------------------------------------------
                         .......................  ......................
------------------------------------------------------------------------

    (b) During the option period(s) the Contractor shall provide the 
services described below:

------------------------------------------------------------------------
               Period                             Attachment
------------------------------------------------------------------------
                                     ...................................
------------------------------------------------------------------------
                                     ...................................
------------------------------------------------------------------------
                                     ...................................
------------------------------------------------------------------------
                                     ...................................
------------------------------------------------------------------------

    (c) The ``Consideration and Payment'' clause will be amended to 
reflect increased fixed prices for each option period as follows:

------------------------------------------------------------------------
            Fixed price                         Option period
------------------------------------------------------------------------
                                     ...................................
------------------------------------------------------------------------
                                     ...................................
------------------------------------------------------------------------
                                     ...................................
------------------------------------------------------------------------
                                     ...................................
------------------------------------------------------------------------

(End of clause)


    19. Section 1552.219-70 Mentor-Protege Program is added to read as 
follows:


1552.219-70  Mentor-Protege Program.

    As prescribed in 1519.203, insert the following clause:

Mentor-Protege Program

October 2000

    (a) The Contractor has been approved to participate in the EPA 
Mentor-Protege program. The purpose of the Program is to increase 
the participation of small disadvantaged businesses (SDBs) as 
subcontractors, suppliers, and ultimately as prime contractors; to 
establish a mutually beneficial relationship with SDB's and EPA's 
large business prime contractors (although small businesses may 
participate as Mentors); to develop the technical and corporate 
administrative expertise of SDBs which will ultimately lead to 
greater success in competition for contract opportunities; to 
promote the economic stability of SDBs; and to aid in the 
achievement of goals for the use of SDBs in subcontracting 
activities under EPA contracts.
    (b) The Contractor shall submit an executed Mentor-Protege 
agreement to the Contracting officer, with a copy to the Office of 
Small and Disadvantaged Business Utilization or the Small Business 
Specialist, within thirty (30) calendar days after the effective 
date of the contract. The Contracting officer will notify the 
Contractor within thirty (30) calendar days from its submission if 
the agreement is not accepted.
    (c) The Contractor as a Mentor under the Program agrees to 
fulfill the terms of its agreement(s) with the Protege firm(s).
    (d) If the Contractor or Protege firm is suspended or debarred 
while performing under an approved Mentor-Protege agreement, the 
Contractor shall promptly give notice of the suspension or debarment 
to the Office of Small and Disadvantaged Business Utilization and 
the Contracting officer.
    (e) Costs incurred by the Contractor in fulfilling their 
agreement(s) with the Protege firm(s) are not reimbursable on a 
direct basis under this contract.
    (f) In an attachment to Standard Form 294, Subcontracts Report 
for Individual Contracts, the Contractor shall report on the 
progress made under their Mentor-Protege agreement(s), providing:
    (1) The number of agreements in effect; and
    (2) The progress in achieving the developmental assistance 
objectives under each agreement, including whether the objectives of 
the agreement have been met, problem areas encountered, and any 
other appropriate information.

(End of clause)

    20. Section 1552.219-71, Procedures for Participation in the EPA 
Mentor-Protege Program, is added to read as follows:


1552.219-71    Procedures for Participation in the EPA Mentor-Protege 
Program.

    As prescribed in 1519.203, insert the following provision:

Procedures for Participation in the EPA Mentor-Protege Program

October 2000

    (a) This provision sets forth the procedures for participation 
in the EPA Mentor-Protege Program (hereafter referred to as the 
Program). The purpose of the Program is to increase the 
participation of small disadvantaged businesses (SDBs) as 
subcontractors, suppliers, and ultimately as prime contractors; to 
establish a mutually beneficial relationship with SDBs and EPA's 
large business prime contractors (although small businesses may 
participate as Mentors); to develop the technical and corporate 
administrative expertise of the SDBs which will ultimately lead to 
greater success in competition for contract opportunities; to 
promote the economic stability of SDBs; and to aid in the 
achievement of goals for the use of SDBs in subcontracting 
activities under EPA contracts. If the successful offeror is 
accepted into the Program they shall serve as a Mentor to a Protege 
(SDB) firm(s), providing developmental assistance in accordance with 
an agreement with the Protege firm(s).
    (b) To participate as a Mentor, the offeror must receive 
approval in accordance with paragraph (h).
    (c) A Protege must be a small disadvantaged business (SDB) as 
defined under Federal Acquisition Regulation (FAR) 19.001, and a 
small business for the purpose of the Small Business Administration 
(SBA) size standard applicable to the North American Industry 
Classification System (NAICS) code applicable to the contemplated 
supplies or services to be provided by the Protege firm to the 
Mentor firm. Further, consistent with EPA's 1993 Appropriation Act, 
socially disadvantaged individuals shall be deemed to include women.
    (d) Where there may be a concern regarding the Protege firm's 
eligibility to participate in the program, the protege's eligibility 
will be determined by the contracting officer after the SBA has 
completed any formal determinations.
    (e) The offeror shall submit an application in accordance with 
paragraph (k) as part of its proposal which shall include as a 
minimum the following information.
    (1) A statement and supporting documentation that the offeror is 
currently performing under at least one active Federal contract with 
an approved subcontracting plan and is eligible for the award of 
Federal contracts;
    (2) A summary of the offeror's historical and recent activities 
and accomplishments under their SDB program. The offeror is 
encouraged to include any initiatives or outreach information 
believed pertinent to approval as a Mentor firm;
    (3) The total dollar amount (including the value of all option 
periods or quantities) of EPA contracts and subcontracts received by 
the offeror during its two preceding fiscal years. (Show prime 
contracts and subcontracts separately per year);
    (4) The total dollar amount and percentage of subcontract awards 
made to all SDB firms under EPA contracts during its two preceding 
fiscal years. If recently required to submit a SF 295, provide 
copies of the two preceding year's reports;
    (5) The number and total dollar amount of subcontract awards 
made to the identified Protege firm(s) during the two preceding 
fiscal years (if any).
    (f) In addition to the information required by (e) above, the 
offeror shall submit as a part of the application the following 
information for each proposed Mentor-Protege relationship.
    (1) Information on the offeror's ability to provide 
developmental assistance to the identified Protege firm and how the 
assistance will potentially increase contracting and subcontracting 
opportunities for the Protege firm, including subcontract 
opportunities in industry categories where SDBs are not dominant in 
the offeror's vendor base.
    (2) A letter of intent indicating that both the Mentor firm and 
the Protege firm intend to enter into a contractual relationship 
under which the Protege will perform as a subcontractor under the 
contract resulting from this solicitation and that the firms will 
negotiate a Mentor-Protege agreement. Costs incurred by the offeror 
in fulfilling the

[[Page 58927]]

agreement(s) with the Protege firm(s) are not reimbursable as a 
direct cost under the contract. The letter of intent must be signed 
by both parties and contain the following information:
    (i) The name, address and phone number of both parties;
    (ii) The Protege firm's business classification, based upon the 
NAICS code(s) which represents the contemplated supplies or services 
to be provided by the Protege firm to the Mentor firm;
    (iii) A statement that the Protege firm meets the eligibility 
criteria;
    (iv) A preliminary assessment of the developmental needs of the 
Protege firm and the proposed developmental assistance the Mentor 
firm envisions providing the Protege. The offeror shall address 
those needs and how their assistance will enhance the Protege. The 
offeror shall develop a schedule to assess the needs of the Protege 
and establish criteria to evaluate the success in the Program.
    (v) A statement that if the offeror or Protege firm is suspended 
or debarred while performing under an approval Mentor-Protege 
agreement the offeror shall promptly give notice of the suspension 
or debarment to the EPA Office of Small Disadvantaged Business 
Utilization (OSDBU) and the contracting officer. The statement shall 
require the Protege firm to notify the Contractor if it is suspended 
or debarred.
    (g) The application will be evaluated on the extent to which the 
offeror's proposal addresses the items listed in (e) and (f). To the 
maximum extent possible, the application should be limited to not 
more than 10 single pages, double spaced. The offeror may identify 
more than one Protege in its application.
    (h) If the offeror is determined to be in the competitive range, 
the offeror will be advised by the Contracting officer whether their 
application is approved or rejected. The Contracting officer, if 
necessary, may request additional information in connection with the 
offeror's submission of its revised or best and final offer. If the 
successful offeror has submitted an approved application, they shall 
comply with the clause titled ``Mentor-Protege Program.''
    (i) Subcontracts of $1,000,000 or less awarded to firms approved 
as Proteges under the Program are exempt from the requirements for 
competition set forth in FAR 44.202-2(a)(5), 52.244-2(b)(2)(iii) and 
52.244-5. However, price reasonableness must still be determined and 
the requirements in FAR 44.202-2(a)(8) and 52.244-2(b)(2)(iv) for 
cost or price analysis continue to apply.
    (j) Costs incurred by the offeror in fulfilling their 
agreement(s) with a Protege firm(s) are not reimbursable as a direct 
cost under the contract. Unless EPA is the responsible audit agency 
under FAR 42.703-1, offerors are encouraged to enter into an advance 
agreement with their responsible audit agency on the treatment of 
such costs when determining indirect cost rates. Where EPA is the 
responsible audit agency, these costs will be considered in 
determining indirect cost rates.
    (k) Submission of Application and Questions Concerning the 
Program.
    The application for the Program shall be submitted to the 
contracting officer, and to the EPA OSDBU, at the following 
addresses for headquarters procurements: Socioeconomic Business 
Program Officer, Office of Small and Disadvantaged Business 
Utilization, U. S. Environmental Protection Agency, Ariel Rios 
Building (3801R), 1200 Pennsylvania Avenue, NW, Washington, DC 
20460, Telephone: (202) 564-4322, Fax: (202) 565-2473.
    The application for the Program shall be submitted to the 
Contracting officer, and to the Small Business Specialist, at the 
following address for RTP procurements: Small Business Program 
Officer, Contracts Management Division (MD-33), U.S. Environmental 
Protection Agency, Research Triangle Park, NC 27711, Telephone: 
(919) 541-2249, Fax: (919) 541-5539.
    The application for the Program shall be submitted to the 
Contracting officer, and to the Small Business Specialist, at the 
following address for Cincinnati procurements: Small and 
Disadvantaged Business Utilization Officer, Contracts Management 
Division, 26 West Martin Luther King Drive, Cincinnati, OH 45268, 
Telephone: (513) 487-2004, Fax: (513) 487-2342.

(End of provision)

    21. Section 1552.219-72, Small Disadvantaged Business Participation 
Program, is added to read as follows:


1552.219-72  Small disadvantaged business participation program.

    As prescribed in 1519.204(a), insert the following clause:

Small Disadvantaged Business Participation Program

October 2000

    (a) Section M of this solicitation contains a source selection 
factor or subfactor related to the participation of small 
disadvantaged business (SDB) concerns in the performance of the 
contract. The nature of the evaluation of an SDB offeror under this 
evaluation factor or subfactor is dependent upon whether the SDB 
concern qualifies for the price evaluation adjustment under the 
clause at FAR 52.219-23, Notice of Price Evaluation Adjustment for 
Small Disadvantaged Business Concerns and whether the SDB concern 
specifically waives this price evaluation adjustment.
    (b) In order to be evaluated under the source selection factor 
or subfactor, an offeror must provide, with its offer, the following 
information:
    (1) The extent of participation of SDB concerns in the 
performance of the contract in terms of the value of the total 
acquisition. Specifically, offerors must provide targets, expressed 
as dollars and percentages of the total contract value, for SDB 
participation in any of the Standard Industrial Classification (SIC) 
Major Groups as determined by the Department of Commerce. Total 
dollar and percentage targets must be provided for SDB participation 
by the prime contractor, including team members and joint venture 
partners. In addition, total dollar and percentage targets for SDB 
participation by subcontractors must be provided and listed 
separately;
    (2) The specific identification of SDB concerns to be involved 
in the performance of the contract;
    (3) The extent of commitment to use SDB concerns in the 
performance of the contract:
    (4) The complexity and variety of the work the SDB concerns are 
to perform; and
    (5) The realism of the proposal to use SDB concerns in the 
performance of the contract.
    (c) An SDB offeror who waives the price evaluation adjustment 
provided in FAR 52.219-23 shall provide, with their offer, targets, 
expressed as dollars and percentages of the total contract value, 
for the work that it intends to perform as the prime contractor in 
the applicable and authorized North American Industry Classification 
System (NAICS) Industry Subsectors as determined by the Department 
of Commerce. All of the offeror's identified targets described in 
paragraphs (b) and (c) of this clause will be incorporated into and 
made part of any resulting contract.

(End of provision)

    22. Section 1552.219-73, Small Disadvantaged Business Targets, is 
added to read as follows:


1552.219-73  Small Disadvantaged Business Targets.

    As prescribed in 1519.204(b), insert the following clause:

Small Disadvantaged Business Targets

October 2000

    (a) In accordance with FAR 19.1202-4(a) and EP 52.219-145, the 
following small disadvantaged business (SDB) participation targets 
proposed by the contractor are hereby incorporated into and made 
part of the contract:

----------------------------------------------------------------------------------------------------------------
                                                                                           Percentage of total
          Contractor targets            SIC/NAICS major group           Dollars               contract value
----------------------------------------------------------------------------------------------------------------
Total Prime Contractor Targets
 (including joint venture members and
 team members)
----------------------------------------------------------------------------------------------------------------
Total Subcontractor Targets
----------------------------------------------------------------------------------------------------------------

    (b) The following specifically identified SDB(s) was (were) 
considered under the Section M SDB participation evaluation factor 
or subfactor (continue on separate sheet if more space is needed):
(1)--------------------------------------------------------------------
(2)--------------------------------------------------------------------
(3)--------------------------------------------------------------------
(4)--------------------------------------------------------------------
(5)--------------------------------------------------------------------


[[Page 58928]]

-----------------------------------------------------------------------
The contractor shall promptly notify the contracting officer of any 
substitution of firms if the new firms are not SDB concerns.
    (c) In accordance with FAR 52.219-25, Small Disadvantaged 
Business Participation Program--Disadvantaged Status and Reporting, 
the contractor shall report on the participation of SDB concerns in 
the performance of the contract no less than thirty (30) calendar 
days prior to each annual contractor performance evaluation 
[contracting officer may insert the dates for each performance 
evaluation (i.e., every 12 months after the effective date of 
contract)] or as otherwise directed by the contracting officer.

(End of provision)

    23. Section 1552.219-74, Small Disadvantaged Business Participation 
Evaluation Factor, is added to read as follows:


1552.219-74  Small disadvantaged business participation evaluation 
factor.

    As prescribed in 1519.204(c), insert the following clause:

Small Disadvantaged Business Participation Evaluation Factor

October 2000

    Under this factor [or subfactor, if appropriate], offerors will 
be evaluated based on the demonstrated extent of participation of 
small disadvantaged business (SDB) concerns in the performance of 
the contract in each of the authorized and applicable North American 
Industry Classification System (NAICS) Industry Subsectors as 
determined by the Department of Commerce. As part of this 
evaluation, offerors will be evaluated based on:
    (1) The extent to which SDB concerns are specifically identified 
to participate in the performance of the contract;
    (2) The extent of the commitment to use SDB concerns in the 
performance of the contract (enforceable commitments will be weighed 
more heavily than nonenforceable commitments);
    (3) The complexity and variety of the work the SDB concerns are 
to perform under the contract;
    (4) The realism of the proposal to use SDB concerns in the 
performance of the contract; and
    (5) The extent of participation of SDB concerns, at the prime 
contractor and subcontractor level, in the performance of the 
contract (in the authorized and applicable NAICS Industry Subsectors 
in terms of dollars and percentages of the total contract value.

(End of provision)

    24. Section 1552.223-72, Care of Laboratory Animals, is added to 
read as follows:


1552.223-72  Care of Laboratory Animals.

    As prescribed in 1523.303-72, insert the following clause:

Care of Laboratory Animals

October 2000

    (a) Before undertaking performance of any contract involving the 
use of laboratory animals, the Contractor shall register with the 
Secretary of Agriculture of the United States in accordance with 
section 6, Public Law 89-544, Laboratory Animal Welfare Act, August 
24, 1966, as amended by Public Law 91-579, Animal Welfare Act of 
1970, December 24, 1970. The Contractor shall furnish evidence of 
such registration to the contracting officer.
    (b) The Contractor shall acquire animals used in research and 
development programs from a dealer licensed by the Secretary of 
Agriculture, or from exempted sources in accordance with the Public 
Laws enumerated in (a), above, of this provision.
    (c) In the care of any live animals used or intended for use in 
the performance of this contract, the Contractor shall adhere to the 
principles enunciated in the Guide for Care and Use of Laboratory 
Animals prepared by the Institute of Laboratory Animal Resources, 
National Academy of Sciences (NAS)--National Research Council (NRC), 
and the United States Department of Agriculture's (USDA) regulations 
and standards issued under Public Laws enumerated in (a) above. In 
case of conflict between standards, the higher standard shall be 
used. The Contractor's reports on portions of the contract in which 
animals were used shall contain a certificate stating that the 
animals were cared for in accordance with the principles enunciated 
in the Guide for Care and Use of Laboratory Animals prepared by the 
Institute of Laboratory Animals Resources (NAS-NRC), and/or in the 
regulations and standards as promulgated by the Agricultural 
Research Service, USDA, pursuant to the Laboratory Animal Welfare 
Act of August 24, 1966 as amended (Public Law 89-544 and Public Law 
91-579). NOTE: The Contractor may request registration of his 
facility and a current listing of licensed dealers from the Regional 
Office of the Animal and Plant Health Inspection Service (APHIS), 
USDA, for the region in which his research facility is located. The 
location of the appropriate APHIS Regional Office as well as 
information concerning this program may be obtained by contacting 
the Senior Veterinary, Animal Care Staff, USDA/APHIS, Federal Center 
Building, Hyattsville, MD 20782.

(End of clause)

    25. Section 1552.232-73 is amended by revising paragraph (b) (2), 
to read as follows:


1552.232-73  Payments--Fixed-Rate Services Contract.

* * * * *
    (b) Materials, other direct costs, and subcontracts.
* * * * *
    (2) Subcontracted effort may be included in the fixed hourly 
rates discussed in paragraph (a)(1) of this clause and will be 
reimbursed as discussed in that paragraph. Otherwise, the cost of 
subcontracts that are authorized under the subcontracts clause of 
this contract shall be reimbursable costs under this clause provided 
that the costs are consistent with subparagraph (3) of this clause. 
Reimbursable costs in connection with subcontracts shall be payable 
to subcontractors consistent with FAR 32.504 in the same manner as 
for items and services purchased directly for the contract under 
paragraph (a)(1) of this clause. Reimbursable costs shall not 
include any costs arising from the letting, administration, or 
supervision of performance of the subcontract, if the costs are 
included in the hourly rates payable under paragraph (a)(1) of this 
clause.
* * * * *

    26. Section 1552.228-70, Insurance Liability to Third Persons, is 
added to read as follows:


1552.228-70  Insurance Liability to Third Persons.

    As prescribed in 1528.101, insert the following clause:

Insurance--Liability to Third Persons

October 2000

    (a)(1) Except as provided in subparagraph (2) below, the 
Contractor shall provide and maintain workers' compensation, 
employer's liability, comprehensive general liability (bodily 
injury), and comprehensive automobile liability (bodily injury and 
property damage) insurance, and such other insurance as the 
Contracting officer may require under this contract.
    (2) The Contractor may, with the approval of the Contracting 
officer, maintain a self-insurance program; provided that, with 
respect to workers' compensation, the Contractor is qualified 
pursuant to statutory authority.
    (3) All insurance required by this paragraph shall be in a form 
and amount and for those periods as the Contracting officer may 
require or approve and with insurers approved by the Contracting 
officer.
    (b) The Contractor agrees to submit for the Contracting 
officer's approval, to the extent and in the manner required by the 
Contracting officer, any other insurance that is maintained by the 
Contractor in connection with the performance of this contract and 
for which the Contractor seeks reimbursement.
    (c) The Contractor shall be reimbursed for that portion of the 
reasonable cost of insurance allocable to this contract, and 
required or approved under this clause, in accordance with its 
established cost accounting practices.

(End of clause)

    27. Section 1552.235-80, Access to Confidential Business 
Information (CBI), is added to read as follows:


1552.235-80  Access to confidential business information.

    As prescribed in 1535.007-70(g), insert the following clause.

Access to Confidential Business Information

October 2000

    It is not anticipated that it will be necessary for the 
contractor to have access to confidential business information (CBI)

[[Page 58929]]

during the performance of tasks required under this contract. 
However, the following applies to any and all tasks under which the 
contractor will or may have access to CBI:
    The contractor shall not have access to CBI submitted to EPA 
under any authority until the contractor obtains from the Project 
Officer a certification that the EPA has followed all necessary 
procedures under 40 CFR part 2, subpart B (and any other applicable 
procedures), including providing, where necessary, prior notice to 
the submitters of disclosure to the contractor.

(End of clause)

    28. Section 1552.239-70, Rehabilitation Act Notice, is added to 
read as follows:


1552.239-70  Rehabilitation act notice.

    As prescribed in 1523.7003(a), insert the following clause.

Rehabilitation Act Notice

October 2000

    (a) EPA has a legal obligation under the Rehabilitation Act of 
1973, 29 U.S.C. 791, to provide reasonable accommodation to persons 
with disabilities who wish to attend EPA programs and activities. 
Under this contract, the contractor may be required to provide 
support in connection with EPA programs and activities, including 
conferences, symposia, workshops, meetings, etc. In such cases, the 
contractor shall, as applicable, include in its draft and final 
meeting announcements (or similar documents) the following notice:
    It is EPA's policy to make reasonable accommodation to persons 
with disabilities wishing to participate in the agency's programs 
and activities, pursuant to the Rehabilitation Act of 1973, 29 
U.S.C. 791. Any request for accommodation should be made to the 
specified registration contact for a particular program or activity, 
preferably one month in advance of the registration deadline, so 
that EPA will have sufficient time to process the request.
    (b) Upon receipt of such a request for accommodation, the 
contractor shall immediately forward the request to the EPA 
contracting officer, and provide a copy to the appropriate EPA 
program office. The contractor may be required to provide any 
accommodation that EPA may approve. However, in no instance shall 
the contractor proceed to provide an accommodation prior to 
receiving written authorization from the contracting officer.
    (c) The contractor shall insert in each subcontract or 
consultant agreement placed hereunder provisions that shall conform 
substantially to the language of this clause, including this 
paragraph, unless otherwise authorized by the contracting officer.

(End of clause)

    29. Section 1552.242-72, Financial administrative contracting 
officer, is added to read as follows:


1552.242-72  Financial administrative contracting officer.

    As prescribed in 1542.705 (b), insert the following clause:

Financial Administrative Contracting Officer

October 2000

    (a) A Financial Administrative Contracting Officer (FACO) is 
responsible for performing certain post-award functions related to 
the financial aspects of this contract when the EPA is the cognizant 
federal agency. These functions include the following duties:
    (1) Review the contractor's compensation structure and insurance 
plan.
    (2) Negotiate advance agreements applicable to treatment of 
costs and to Independent Research & Development/Bid and Proposal 
costs.
    (3) Negotiate changes to interim billing rates and establish 
final indirect cost rates and billing rates.
    (4) Prepare findings of fact and issue decisions related to 
financial matters under the Disputes clause, if appropriate.
    (5) In connection with Cost Accounting Standards:
    (A) Determine the adequacy of the contractor's disclosure 
statements;
    (B) Determine whether the disclosure statements are in 
compliance with Cost Accounting Standards and FAR Part 31;
    (C) Determine the contractor's compliance with Cost Accounting 
Standards and disclosure statements, if applicable; and
    (D) Negotiate price adjustments and execute supplemental 
agreements under the Cost Accounting Standards clauses at FAR 
52.230-3, 52.230-4, and 52.230-5.
    (6) Review, approve or disapprove, and maintain surveillance of 
the contractor's purchasing system.
    (7) Perform surveillance, resolve issues, and establish any 
necessary agreements related to the contractor's cost/schedule 
control system, including travel policies/procedures, allocation and 
cost charging methodology, timekeeping and labor distribution 
policies and procedures, subcontract payment practices, matters 
concerning relationships between the contractor and its affiliates 
and subsidiaries, and consistency between bid and accounting 
classifications.
    (8) Review, resolve issues, and establish any necessary 
agreements related to the contractor's estimating system.
    (b) The FACO shall consult with the contracting officer whenever 
necessary or appropriate and shall forward a copy of all agreements/
decisions to the contracting officer upon execution.
    (c) The FACO for this contract is:

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

(End of clause)

    30. Section 1552.245-73, Government Property, is added to read as 
follows:


1552.245-73  Government property.

    As prescribed in 1545.106(d), insert the following clause:

Government Property

October 2000

    (a) The contractor shall not fabricate or acquire, on behalf of 
the Government, either directly or indirectly through a subcontract, 
any item of property without written approval from the Contracting 
officer.
    (b) In accordance with paragraph (a) above, the contractor is 
authorized to acquire and/or fabricate the equipment listed below 
for use in the performance of this contract. The equipment is 
subject to the provisions of the ``Government Property'' clause.
    (c) The Government will provide the following item(s) of 
Government property to the contractor for use in the performance of 
this contract. This property shall be used and maintained by the 
contractor in accordance with the provisions of the ``Government 
Property'' clause.
    (d) The ``EPA Contract Property Administration Requirements'' 
provided below apply to this contract.

U.S. Environmental Protection Agency

Property Administration Requirements (PAR)

    1. Purpose. This document sets forth the requirements for 
Environmental Protection Agency (EPA) contractors in the performance 
of their Government property management responsibilities under 
contracts with EPA. These requirements supplement those contained in 
the Government property clause(s) in this contract, and part 45 of 
the Federal Acquisition Regulation (FAR).
    2. Delegation of Contract Property Administration. EPA has 
delegated much of its contract property management oversight to the 
Defense Contract Management Command (DCMC). Shortly after award of a 
contract, the EPA contracting officer (CO) delegates the functions 
of property administration and plant clearance (disposal) for the 
contract to DCMC. Upon acceptance of that delegation, DCMC will 
provide notification to the contractor, identifying the assigned 
property administrator (PA) and plant clearance officer (PLCO). If 
the contract is not delegated to DCMC for administration, any 
reference to PA and PLCO throughout this document shall be construed 
to mean CO. The DCMC PA is available to the contractor for 
assistance in all matters of property administration. 
Notwithstanding the delegation, as necessary, the contractor may 
contact their EPA CO. In the event of disagreement between the 
contractor and the DCMC PA, the contractor should seek resolution 
from the CO. Unless otherwise directed in the contract, or this 
document, all originals of written information or reports, except 
direct correspondence between the contractor and the DCMC PA, 
relative to Government property, should be forwarded to the 
administrative CO assigned to this contract.
    3. Requests for Government Property.
    a. In accordance with FAR 45.102, the contractor shall furnish 
all property required for performing Government contracts. If a 
contractor believes that Government facilities are required for 
performance of the contract, the contractor shall submit a written 
request to the CO. At a minimum, the request shall contain the 
following elements:
    1. Contract number for which the facilities are required.
    2. An item(s) description, quantity and estimated cost.

[[Page 58930]]

    3. Certification that no like contractor facilities exist which 
could be utilized.
    4. A detailed description of the task-related purpose of the 
facilities.
    5. Explanation of negative impact if facilities are not provided 
by the Government.
    6. If applicable, recommend the exception under FAR 45.302-1(a) 
or any applicable EPA class deviation (available upon request), and 
provide any other information which would support the furnishing of 
facilities, including contractor-acquired property (CAP).
    7. Except when the request is for material, a lease versus 
purchase analysis shall be furnished with the request to acquire 
property on behalf of the Government. The contractor may not proceed 
with acquisition of facilities on behalf of the Government until 
receipt of written authorization from the EPA CO.
    4. Transfer of Government Property. When the contractor receives 
Government-furnished property (GFP), the contractor should receive, 
from the transferor, (either EPA or another contractor) all of the 
applicable data elements (Attachment 1 of this clause) needed to 
maintain the required records. If this information is not provided 
at the time of receipt of the property, the contractor shall request 
it from the EPA CO. The CO will attempt to obtain the data from the 
previous property holder, or, if data does not exist, will assist 
the current property holder in estimating the elements. Prior to 
signing an acceptance document for the property, the receiving 
contractor should perform a complete inventory of the property. 
Responsibility, as well as accountability, passes with the signed 
acceptance. When, at the written direction of the EPA CO, the 
contractor transfers GFP to another contractor, or another Agency, 
the contractor shall provide the applicable data elements 
(Attachment 1 of this clause). Upon return of the property to EPA, 
the same data must be provided by the contractor to the EPA CO.
    5. Records of Government Property.
    a. In accordance with FAR 45.505 and 45.505-1, the contractor 
shall establish and maintain adequate property records for all 
Government property, regardless of value, including property 
provided to and in the possession of a subcontractor. Material 
(supplies) provided by the Government or acquired by the contractor 
and billed as a direct charge to the Government is Government 
property and records must be established as such.
    b. The contractor shall establish and maintain the official 
Government property record. (If the contract contains the FAR Clause 
52.245-1, the Government will maintain the official Government 
property records.) Such records shall contain the applicable data 
elements (Attachment 1 of this clause) for all items of Government 
property regardless of cost.
    c. The Contractor shall identify all Superfund property and 
designate it as such both on the item and on the official Government 
property record. If it is not practicable to tag the item, the 
contractor shall write the ID number on a tag, card or other entity 
that may be kept with the item or in a file.
    d. Support documentation used for posting entries to the 
property record shall provide complete, current and auditable data. 
Entries shall be posted to the record in a timely manner following 
an action.
    e. For Government vehicles, in addition to the data elements 
required by EPA, the contractor shall also comply with the General 
Services Administration (GSA) and Department of Energy (DOE) record 
and report requirements supplied with all EPA provided motor 
vehicles. If the above requirements were not provided with the 
vehicle, the contractor shall notify the EPA CO.
    f. When Government property is disclosed to be in the possession 
or control of the contractor but not provided under any contract, 
the contractor shall record and report the property in accordance 
with FAR 45.502(f) and (h).
    6. Inventories of Government Property. The contractor shall 
conduct a complete physical inventory of EPA property at least once 
per year, unless otherwise directed by the PA. Reconciliation shall 
be completed within 30 calendar days of inventory completion. The 
contractor shall report the results of the inventory, including any 
discrepancies, to the DCMC PA upon completion of the reconciliation. 
The contractor's records shall indicate the completion date of the 
inventory. See section 9 herein, Contract Closeout, for information 
on final inventories.
    7. Reports of Government Property. In accordance with FAR 
45.505-14, EPA requires an annual summary report, for each contract, 
by contract number, of Government property in the contractor's 
possession as of September 30 each year.
    a. For each classification listed in FAR 45.505-14(a), except 
material, the contractor shall provide the total acquisition cost 
and total quantity. If there are zero items in a classification, or 
if there is an ending balance of zero, the classification must be 
listed with zeros in the quantity and acquisition cost columns.
    b. For material, the contractor shall provide the total 
acquisition cost only.
    c. Property classified as facilities, special tooling, special 
test equipment, and agency peculiar must be reported on two separate 
lines. The first line shall include the total acquisition cost and 
quantity of all items or systems with a unit acquisition cost of 
$25,000 or more. The second line shall include the total acquisition 
cost and quantity of all items with a unit acquisition cost of less 
than $25,000.
    d. For items comprising a system, which is defined as ``a group 
of interacting items functioning as a complex whole,'' the 
contractor may maintain the record as a system noting all components 
of the system under the main component or maintain individual 
records for each item. However, for the annual report of Government 
property the components must be reported as a system with one total 
dollar amount for the system, if that system total is $25,000 or 
more.
    e. The reports are to be received at EPA and DCMC no later than 
October 31 of each year.
    f. Distribution shall be as follows:

Original to: EPA CO
1 copy: DCMC PA

    g. EPA Contractors are required to comply with GSA's and DOE's 
special reporting requirements for motor vehicles. A statement of 
these requirements will be provided by the EPA Facility Management 
and Services Division (FMSD) concurrent with receipt of each 
vehicle.
    h. The contractor shall provide detailed reports on an as-needed 
basis, as may be requested by the CO or the PA.
    8. Disposition of Government Property. The disposition process 
is composed of three distinct phases: identification of excess 
property, reporting of excess property, and final disposition.
    a. Identification of Excess Property. The disposition process 
begins with the contractor identifying Government property that is 
excess to its contract. Effective contractor property control 
systems provide for disclosing excesses as they occur. Once inactive 
Government property has been determined to be excess to the contract 
to which it is accountable, it must be screened against the 
contractor's other EPA contracts for further use. If the property 
may be reutilized, the contractor shall notify the CO in writing. 
Government property will be transferred to other contracts only when 
the COs on both the current contract and the receiving contract 
authorize such a transfer in writing.
    b. Reporting Excess Government Property. Excess Government 
property shall be reported in accordance with FAR Subpart 45.6. 
Inventory schedules A-E (SF Forms 1426-1434) provide the format for 
reporting of excess Government property. Instructions for completing 
the forms are located at FAR 45.606-5 and samples may be found in 
FAR 53.301-1426 thru 1434. Inventory schedules shall be forwarded to 
the DCMC PLCO with a copy to the EPA CO. The cover letter, which 
accompanies the inventory schedules, must include the EPA CO's name, 
address and telephone number. Inventory schedules must also contain 
a notification if the property is Superfund property. If the 
property is Superfund property, the contractor must also prominently 
include the following language on the inventory schedule: ``Note to 
PLCO: Reimbursement to the EPA Superfund is required.'' When 
requested, by the PLCO or the CO, the contractor will provide the 
fair market value for those items requested.
    c. Disposition Instructions. 
    1. If directed in writing by the EPA CO, the contractor will 
retain all or part of the excess Government property under the 
current contract for possible future requirements. The contractor 
shall request, from the PLCO, withdrawal from the inventory schedule 
of those items to be retained.
    2. If directed in writing by the EPA CO, the contractor shall 
transfer the property to another EPA contractor. The contractor will 
transfer the property by shipping it in accordance with the 
instructions provided by the CO. The contractor shall request, from 
the PLCO, withdrawal from the inventory schedule of those items to 
be transferred. Further, the contractor shall notify the CO when the 
transfer is complete.

[[Page 58931]]

    3. If directed in writing by the EPA CO, the contractor shall 
transfer the property to EPA. The contractor shall ship/deliver the 
property in accordance with the instructions provided by the CO. The 
contractor will request, from the PLCO, withdrawal from the 
inventory schedule of those items to be transferred to EPA. Further, 
the contractor shall notify the CO when the transfer is complete.
    4. The contractor will ship the property elsewhere if directed, 
in writing, by the PLCO.
    5. The PLCO will either conduct the sale or instruct the 
contractor to conduct a sale of surplus property. The contractor 
will allow prospective bidders access to property offered for sale.
    6. Property abandoned by the PLCO on the contractor's site must 
be disposed of in a manner that does not endanger the health and 
safety of the public.
    7. To effect transfer of accountability, the contractor shall 
provide the recipient of the property with the applicable data 
elements set forth in Attachment 1 of this clause. The contractor 
shall also obtain either a signed receipt from the recipient, or 
proof of shipment. The contractor shall update the official 
Government property record to indicate the disposition of the item 
and to close the record.
    9. Contract Closeout. The contractor shall complete a physical 
inventory of all Government property at contract completion and the 
results, including any discrepancies, shall be reported to the DCMC 
PA. In the case of a terminated contract, the contractor shall 
comply with the inventory requirements set forth in the applicable 
termination clause. The results of the inventory, as well as a 
detailed inventory listing, must be forwarded to the CO. For 
terminated contracts, the contractor will conduct and report the 
inventory results as directed by the CO. However, in order to 
expedite the disposal process, contractors may be required to, or 
may elect to submit to the CO, an inventory schedule for disposal 
purposes up to six (6) months prior to contract completion. If such 
an inventory schedule is prepared, the contractor must indicate the 
earliest date that each item may be disposed. The contractor shall 
update all property records to show disposal action. The contractor 
shall notify the DCMC PA, in writing, when all work has been 
completed under the contract and all Government property accountable 
to the contract has been disposed.

Attachment 1

    Required Data Elements. Where applicable (all elements are not 
applicable to material) the contractor is required to maintain, at a 
minimum, the information related to the following data elements for 
EPA Government property: Contractor Identification/Tag Number; 
Description; Manufacturer; Model; Serial Number; Acquisition Date; 
Date received; Acquisition Cost*; Acquisition Document Number; 
Location; Contract Number; Account Number (if supplied); Superfund 
(Yes/No); Inventory Performance Date; Disposition Date.
    * Acquisition cost shall include the price of the item plus all 
taxes, transportation and installation charges allocable to that 
item.


    Note: For items comprising a system which is defined as, ``a 
group of interacting items functioning as a complex whole,'' the 
contractor may maintain the record as a system noting all components 
of the system under the main component or maintain individual 
records for each item. However, for the Annual Report of Government 
Property, the components must be reported as a system with one total 
dollar amount for the system, if that system total is $25,000 or 
more.

(End of clause)

    Dated: September 21, 2000.
John C. Gherardini,
Acting Director, Office of Acquisition Management.
[FR Doc. 00-25046 Filed 10-2-00; 8:45 am]
BILLING CODE 6560-50-P