[Federal Register Volume 66, Number 7 (Wednesday, January 10, 2001)]
[Rules and Regulations]
[Pages 2117-2136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 13, 14, 15, 17, 19, 22, 
23, 24, 26, 27, 28, 29, 31, 32, 33, 34, 35, 36, 37, 39, 42, 43, 44, 
46, 47, 48, 49, 50, and 52

[FAC 97-22; FAR Case 1999-403; Item I]
RIN 9000-AJ08


Federal Acquisition Regulation; Definitions

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

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to clarify the 
applicability of definitions, eliminate redundant or conflicting 
definitions, and make definitions easier to find.

DATES: Effective Date: March 12, 2001.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC, 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Jeremy Olson, Procurement Analyst, at (202) 501-
3221. Please cite FAC 97-22, FAR case 1999-403.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule clarifies the applicability of definitions, 
eliminates redundant or conflicting definitions, and makes definitions 
easier to find. The Councils do not intend to make any substantive 
policy changes to the FAR by these amendments. Nevertheless, in view of 
the extensive scope of these FAR improvements, comments are invited in 
the event any substantial policy change appears to have been made 
inadvertently. The rule--
     Relocates definitions of terms that are used in more than 
one FAR part with the same meaning to 2.101;
     Relocates other definitions of terms to the 
``Definitions'' section of the highest level FAR division (part, 
subpart, or section) the term as defined is used in. For example, if a 
term was defined in a FAR section, but the term is used as defined in 
another section of that subpart, then the definition was moved to the 
``Definitions'' section of that subpart;
     Clarifies that a term, defined in FAR 2.101, has the same 
meaning throughout the FAR unless the context in which the term is used 
clearly requires a different meaning; or another FAR part, subpart, or 
section provides a different definition for that particular part, 
subpart, or section;
     Adds cross-references to definitions of terms in FAR 2.101 
that are defined differently in another part, subpart, or section of 
the FAR;
     Makes plain language revisions to the revised text in 
accordance with the White House memorandum, Plain Language in 
Government Writing, dated June 1, 1998; and
     Makes technical corrections throughout the FAR.
    This is not a significant regulatory action, and therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for public comments is not required. However, the Councils will 
consider comments from small entities concerning the affected FAR Parts 
in accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 601, et seq. (FAC 97-22, 
FAR case 1999-403), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 13, 
14, 15, 17, 19, 22, 23, 24, 26, 27, 28, 29, 31, 32, 33, 34, 35, 36, 
37, 39, 42, 43, 44, 46, 47, 48, 49, 50, and 52

    Government procurement.

    Dated: December 22, 2000.
Al Matera,
Acting Director, Federal Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 2, 3, 4, 5, 6, 
7, 8, 9, 11, 13, 14, 15, 17, 19, 22, 23, 24, 26, 27, 28, 29, 31, 32, 
33, 34, 35, 36, 37, 39, 42, 43, 44, 46, 47, 48, 49, 50, and 52 as set 
forth below:

[[Page 2118]]

    1. The authority citation for 48 CFR parts 1, 2, 3, 4, 5, 6, 7, 8, 
9, 11, 13, 14, 15, 17, 19, 22, 23, 24, 26, 27, 28, 29, 31, 32, 33, 34, 
35, 36, 37, 39, 42, 43, 44, 46, 47, 48, 49, 50, and 52 continues to 
read as follows:

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

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

    2. Amend section 1.401 in paragraph (a) by removing ``52.101(a)'' 
each time it is used (twice) and adding ``2.101'' in its place; and in 
paragraphs (c) and (d) revise the text in the parenthetical to read as 
follows:


1.401  Definition.

* * * * *
    (c) * * * (see definition of ``modification'' in 52.101(a) and 
definition of ``alternate'' in 2.101(a)).
    (d) * * * (see definitions in 2.101 and 52.101(a))
    * * *
* * * * *

PART 2--DEFINITIONS OF WORDS AND TERMS

    3a. Revise 2.000 to read as follows:


2.000  Scope of part.

    (a) This part--
    (1) Defines words and terms that are frequently used in the FAR;
    (2) Provides cross-references to other definitions in the FAR of 
the same word or term; and
    (3) Provides for the incorporation of these definitions in 
solicitations and contracts by reference.
    (b) Other parts, subparts, and sections of this regulation (48 CFR 
chapter 1) may define other words or terms and those definitions only 
apply to the part, subpart, or section where the word or term is 
defined (see the Index for locations).

    3b. Amend section 2.101 as follows:
    --Revise paragraphs (a) and (b);
    --Add, in alphabetical order, the following definitions:

``Acquisition planning,''
``Adequate evidence,''
``Alternate,''
``Architect-engineer services,''
``Assignment of claims,''
``Basic research,''
``Broad agency announcement,''
``Business unit,''
``Change-of-name agreement,''
``Change order,''
``Cognizant Federal agency,''
``Computer software,''
``Consent to subcontract,''
``Contract clause or clause,''
``Contract modification,''
``Conviction,''
``Cost or pricing data,''
``Cost realism,''
``Cost sharing,''
``Debarment,''
``Design-to-cost,''
``Drug-free workplace,''
``Effective date of termination,''
``Electronic data interchange (EDI),''
``Electronic Funds Transfer (EFT),''
``Federally Funded Research and Development Centers (FFRDCs),''
``Final indirect cost rate,''
``First article,''
``First article testing,''
``F.o.b.,''
``F.o.b. destination,''
``F.o.b. origin,
``F.o.b. . . .,''
``Forward pricing rate agreement,''
``Forward pricing rate recommendation,''
``Freight,''
``Full and open competition,''
``General and administrative (G&A) expense,''
``Historically black college or university,''
``HUBZone,''
``HUBZone small business concern,''
``Indirect cost,''
``Indirect cost rate,''
``Ineligible,''
``Information other than cost or pricing data,''
``Inherently governmental function,''
``Inspection,''
``Insurance,''
``Invoice,''
``Irrevocable letter of credit,''
``Labor surplus area,''
``Labor surplus area concern,''
``Latent defect,''
``List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs,''
``Make-or-Buy program,''
``Master solicitation,''
``Minority Institution,''
``Neutral person,''
``Novation agreement,''
``Option,''
``Organizational conflict of interest,''
``Overtime,''
``Overtime premium,''
``Ozone-depleting substance,''
``Performance-based contracting,''
``Personal services contract,''
``Power of attorney,''
``Preaward survey,''
``Preponderance of the evidence,''
``Pricing,''
``Procurement,''
``Procuring activity,''
``Projected average loss,''
``Proper invoice,''
``Purchase order,''
``Qualification requirement,''
``Qualified products list (QPL),''
``Residual value,''
``Responsible audit agency,''
``Responsible prospective contractor,''
``Segment,''
``Self-insurance,''
``Shipment,''
``Shop drawings,''
``Should,''
``Single, Governmentwide point of entry,''
``Small business subcontractor,''
``Small disadvantaged business concern,''
``Sole source acquisition,''
``Solicitation provision or provision,''
``Special competency,''
``State and local taxes,''
``Substantial evidence,''
``Substantially as follows or substantially the same as,''
``Supplemental agreement,''
``Surety,''
``Suspension,''
``Taxpayer Identification Number (TIN),''
``Unallowable cost,''
``Unique and innovative concept,''
``Unsolicited proposal,''
``Value engineering,''
``Value engineering change proposal (VECP),''
``Warranty,''
``Women-owned small business concern,''
``Writing or written,''
    --Amend the definitions listed below as follows:

------------------------------------------------------------------------
                                   Remove paragraph
      Definition/paragraph         designation(s) or   Add in its/their
                                         word                place
------------------------------------------------------------------------
``Contract administration         ``(a)'' and         ``(1)'' and
 office,''.                        ``(b)''.            ``(2)'',
                                                       respectively.
``Contracting officer,''........  ``(a)'' and         ``(1)'' and
                                   ``(b)''.            ``(2)'',
                                                       respectively.
``Federal Acquisition Computer    ``is''............  ``means''.
 Network (FACNET) Architecture''.
``Head of the contracting         ``includes''......  ``means''.
 activity''.
``Pollution prevention,''.......  ``(a)(1)'' and      ``(1)(i)'' and
                                   ``(2)''.            ``(ii)'',
                                                       respectively.
                                  ``(b)'' and         ``(2)'' and
                                   ``(c)''.            ``(3)'',
                                                       respectively.

[[Page 2119]]

 
``Virgin material,''............  ``(a)'' and         ``(1)'' and
                                   ``(b)''.            ``(2)'',
                                                       respectively.
------------------------------------------------------------------------

    --Revise the definitions ``Affiliates,'' ``Agency head or head of 
the agency,'' ``Commercial item,'' ``Contracting office,'' ``Head of 
the agency,'' ``In writing, writing, or written,'' ``Information 
technology,'' ``Major system,'' and ``Nondevelopmental item''. For the 
convenience of the user, the section is set out in its entirety to read 
as follows:


2.101  Definitions.

    (a) A word or a term, defined in this section, has the same meaning 
throughout this regulation (48 CFR chapter 1), unless--
    (1) The context in which the word or term is used clearly requires 
a different meaning; or
    (2) Another FAR part, subpart, or section provides a different 
definition for the particular part or portion of the part.
    (b) If a word or term that is defined in this section is defined 
differently in another part, subpart, or section of this regulation (48 
CFR chapter 1, the definition in--
    (1) This section includes a cross-reference to the other 
definitions; and
    (2) That part, subpart, or section applies to the word or term when 
used in that part, subpart, or section.
    Acquisition means the acquiring by contract with appropriated funds 
of supplies or services (including construction) by and for the use of 
the Federal Government through purchase or lease, whether the supplies 
or services are already in existence or must be created, developed, 
demonstrated, and evaluated. Acquisition begins at the point when 
agency needs are established and includes the description of 
requirements to satisfy agency needs, solicitation and selection of 
sources, award of contracts, contract financing, contract performance, 
contract administration, and those technical and management functions 
directly related to the process of fulfilling agency needs by contract.
    Acquisition planning means the process by which the efforts of all 
personnel responsible for an acquisition are coordinated and integrated 
through a comprehensive plan for fulfilling the agency need in a timely 
manner and at a reasonable cost. It includes developing the overall 
strategy for managing the acquisition.
    Adequate evidence means information sufficient to support the 
reasonable belief that a particular act or omission has occurred.
    Advisory and assistance services means those services provided 
under contract by nongovernmental sources to support or improve: 
organizational policy development; decision-making; management and 
administration; program and/or project management and administration; 
or R&D activities. It can also mean the furnishing of professional 
advice or assistance rendered to improve the effectiveness of Federal 
management processes or procedures (including those of an engineering 
and technical nature). In rendering the foregoing services, outputs may 
take the form of information, advice, opinions, alternatives, analyses, 
evaluations, recommendations, training and the day-to-day aid of 
support personnel needed for the successful performance of ongoing 
Federal operations. All advisory and assistance services are classified 
in one of the following definitional subdivisions:
    (1) Management and professional support services, i.e., contractual 
services that provide assistance, advice or training for the efficient 
and effective management and operation of organizations, activities 
(including management and support services for R&D activities), or 
systems. These services are normally closely related to the basic 
responsibilities and mission of the agency originating the requirement 
for the acquisition of services by contract. Included are efforts that 
support or contribute to improved organization of program management, 
logistics management, project monitoring and reporting, data 
collection, budgeting, accounting, performance auditing, and 
administrative technical support for conferences and training programs.
    (2) Studies, analyses and evaluations, i.e., contracted services 
that provide organized, analytical assessments/evaluations in support 
of policy development, decision-making, management, or administration. 
Included are studies in support of R&D activities. Also included are 
acquisitions of models, methodologies, and related software supporting 
studies, analyses or evaluations.
    (3) Engineering and technical services, i.e., contractual services 
used to support the program office during the acquisition cycle by 
providing such services as systems engineering and technical direction 
(see 9.505-1(b)) to ensure the effective operation and maintenance of a 
weapon system or major system as defined in OMB Circular No. A-109 or 
to provide direct support of a weapon system that is essential to 
research, development, production, operation or maintenance of the 
system.
    Affiliates means associated business concerns or individuals if, 
directly or indirectly--
    (1) Either one controls or can control the other; or
    (2) A third party controls or can control both.
    Agency head or head of the agency means the Secretary, Attorney 
General, Administrator, Governor, Chairperson, or other chief official 
of an executive agency, unless otherwise indicated, including any 
deputy or assistant chief official of an executive agency.
    Alternate means a substantive variation of a basic provision or 
clause prescribed for use in a defined circumstance. It adds wording 
to, deletes wording from, or substitutes specified wording for a 
portion of the basic provision or clause. The alternate version of a 
provision or clause is the basic provision or clause as changed by the 
addition, deletion, or substitution (see 52.105(a)).
    Architect-engineer services, as defined in 40 U.S.C. 541, means--
    (1) Professional services of an architectural or engineering 
nature, as defined by State law, if applicable, that are required to be 
performed or approved by a person licensed, registered, or certified to 
provide those services;
    (2) Professional services of an architectural or engineering nature 
performed by contract that are associated with research, planning, 
development, design, construction, alteration, or repair of real 
property; and
    (3) Those other professional services of an architectural or 
engineering nature, or incidental services, that members of the 
architectural and engineering professions (and individuals in their 
employ) may logically or justifiably perform, including studies, 
investigations, surveying and mapping, tests, evaluations, 
consultations, comprehensive planning, program management, conceptual 
designs, plans and specifications, value engineering,

[[Page 2120]]

construction phase services, soils engineering, drawing reviews, 
preparation of operating and maintenance manuals, and other related 
services.
    Assignment of claims means the transfer or making over by the 
contractor to a bank, trust company, or other financing institution, as 
security for a loan to the contractor, of its right to be paid by the 
Government for contract performance.
    Basic research means that research directed toward increasing 
knowledge in science. The primary aim of basic research is a fuller 
knowledge or understanding of the subject under study, rather than any 
practical application of that knowledge.
    Best value means the expected outcome of an acquisition that, in 
the Government's estimation, provides the greatest overall benefit in 
response to the requirement.
    Broad agency announcement means a general announcement of an 
agency's research interest including criteria for selecting proposals 
and soliciting the participation of all offerors capable of satisfying 
the Government's needs (see 6.102(d)(2)).
    Bundled contract means a contract where the requirements have been 
consolidated by bundling. (See the definition of bundling.)
    Bundling means--
    (1) Consolidating two or more requirements for supplies or 
services, previously provided or performed under separate smaller 
contracts, into a solicitation for a single contract that is likely to 
be unsuitable for award to a small business concern due to--
    (i) The diversity, size, or specialized nature of the elements of 
the performance specified;
    (ii) The aggregate dollar value of the anticipated award;
    (iii) The geographical dispersion of the contract performance 
sites; or
    (iv) Any combination of the factors described in paragraphs (1)(i), 
(ii), and (iii) of this definition.
    (2) ``Separate smaller contract'' as used in this definition, means 
a contract that has been performed by one or more small business 
concerns or that was suitable for award to one or more small business 
concerns.
    (3) This definition does not apply to a contract that will be 
awarded and performed entirely outside of the United States.
    Business unit means any segment of an organization, or an entire 
business organization that is not divided into segments.
    Change-of-name agreement means a legal instrument executed by the 
contractor and the Government that recognizes the legal change of name 
of the contractor without disturbing the original contractual rights 
and obligations of the parties.
    Change order means a written order, signed by the contracting 
officer, directing the contractor to make a change that the Changes 
clause authorizes the contracting officer to order without the 
contractor's consent.
    Cognizant Federal agency means the Federal agency that, on behalf 
of all Federal agencies, is responsible for establishing final indirect 
cost rates and forward pricing rates, if applicable, and administering 
cost accounting standards for all contracts in a business unit.
    Commercial component means any component that is a commercial item.
    Commercial item means--
    (1) Any item, other than real property, that is of a type 
customarily used for nongovernmental purposes and that--
    (i) Has been sold, leased, or licensed to the general public; or
    (ii) Has been offered for sale, lease, or license to the general 
public;
    (2) Any item that evolved from an item described in paragraph (1) 
of this definition through advances in technology or performance and 
that is not yet available in the commercial marketplace, but will be 
available in the commercial marketplace in time to satisfy the delivery 
requirements under a Government solicitation;
    (3) Any item that would satisfy a criterion expressed in paragraphs 
(1) or (2) of this definition, but for--
    (i) Modifications of a type customarily available in the commercial 
marketplace; or
    (ii) Minor modifications of a type not customarily available in the 
commercial marketplace made to meet Federal Government requirements. 
Minor modifications means modifications that do not significantly alter 
the nongovernmental function or essential physical characteristics of 
an item or component, or change the purpose of a process. Factors to be 
considered in determining whether a modification is minor include the 
value and size of the modification and the comparative value and size 
of the final product. Dollar values and percentages may be used as 
guideposts, but are not conclusive evidence that a modification is 
minor;
    (4) Any combination of items meeting the requirements of paragraphs 
(1), (2), (3), or (5) of this definition that are of a type customarily 
combined and sold in combination to the general public;
    (5) Installation services, maintenance services, repair services, 
training services, and other services if such services are procured for 
support of an item referred to in paragraphs (1), (2), (3), or (4) of 
this definition, and if the source of such services--
    (i) Offers such services to the general public and the Federal 
Government contemporaneously and under similar terms and conditions; 
and
    (ii) Offers to use the same work force for providing the Federal 
Government with such services as the source uses for providing such 
services to the general public;
    (6) Services of a type offered and sold competitively in 
substantial quantities in the commercial marketplace based on 
established catalog or market prices for specific tasks performed under 
standard commercial terms and conditions. This does not include 
services that are sold based on hourly rates without an established 
catalog or market price for a specific service performed;
    (7) Any item, combination of items, or service referred to in 
paragraphs (1) through (6) of this definition, notwithstanding the fact 
that the item, combination of items, or service is transferred between 
or among separate divisions, subsidiaries, or affiliates of a 
contractor; or
    (8) A nondevelopmental item, if the procuring agency determines the 
item was developed exclusively at private expense and sold in 
substantial quantities, on a competitive basis, to multiple State and 
local governments.
    Component means any item supplied to the Government as part of an 
end item or of another component, except that for use in 52.225-9 and 
52.225-11, see the definitions in 52.225-9(a) and 52.225-11(a).
    Computer software means computer programs, computer data bases, and 
related documentation.
    Consent to subcontract means the contracting officer's written 
consent for the prime contractor to enter into a particular 
subcontract.
    Construction means construction, alteration, or repair (including 
dredging, excavating, and painting) of buildings, structures, or other 
real property. For purposes of this definition, the terms ``buildings, 
structures, or other real property'' include, but are not limited to, 
improvements of all types, such as bridges, dams, plants, highways, 
parkways, streets, subways, tunnels, sewers, mains, power lines, 
cemeteries, pumping stations, railways, airport facilities, terminals, 
docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, 
levees, canals, and channels. Construction does not include the 
manufacture, production, furnishing, construction, alteration, repair, 
processing, or assembling of

[[Page 2121]]

vessels, aircraft, or other kinds of personal property.
    Contract means a mutually binding legal relationship obligating the 
seller to furnish the supplies or services (including construction) and 
the buyer to pay for them. It includes all types of commitments that 
obligate the Government to an expenditure of appropriated funds and 
that, except as otherwise authorized, are in writing. In addition to 
bilateral instruments, contracts include (but are not limited to) 
awards and notices of awards; job orders or task letters issued under 
basic ordering agreements; letter contracts; orders, such as purchase 
orders, under which the contract becomes effective by written 
acceptance or performance; and bilateral contract modifications. 
Contracts do not include grants and cooperative agreements covered by 
31 U.S.C. 6301, et seq. For discussion of various types of contracts, 
see part 16.
    Contract administration office means an office that performs--
    (1) Assigned postaward functions related to the administration of 
contracts; and
    (2) Assigned preaward functions.
    Contract clause or clause means a term or condition used in 
contracts or in both solicitations and contracts, and applying after 
contract award or both before and after award.
    Contract modification means any written change in the terms of a 
contract (see 43.103).
    Contracting means purchasing, renting, leasing, or otherwise 
obtaining supplies or services from nonfederal sources. Contracting 
includes description (but not determination) of supplies and services 
required, selection and solicitation of sources, preparation and award 
of contracts, and all phases of contract administration. It does not 
include making grants or cooperative agreements.
    Contracting activity means an element of an agency designated by 
the agency head and delegated broad authority regarding acquisition 
functions.
    Contracting office means an office that awards or executes a 
contract for supplies or services and performs postaward functions not 
assigned to a contract administration office (except for use in part 
48, see also 48.001).
    Contracting officer means a person with the authority to enter 
into, administer, and/or terminate contracts and make related 
determinations and findings. The term includes certain authorized 
representatives of the contracting officer acting within the limits of 
their authority as delegated by the contracting officer. 
``Administrative contracting officer (ACO)'' refers to a contracting 
officer who is administering contracts. ``Termination contracting 
officer (TCO)'' refers to a contracting officer who is settling 
terminated contracts. A single contracting officer may be responsible 
for duties in any or all of these areas. Reference in this regulation 
(48 CFR chapter 1) to administrative contracting officer or termination 
contracting officer does not--
    (1) Require that a duty be performed at a particular office or 
activity; or
    (2) Restrict in any way a contracting officer in the performance of 
any duty properly assigned.
    Conviction means a judgment or conviction of a criminal offense by 
any court of competent jurisdiction, whether entered upon a verdict or 
a plea, and includes a conviction entered upon a plea of nolo 
contendere. For use in subpart 23.5, see the definition at 23.503.
    Cost or pricing data (10 U.S.C. 2306a(h)(1) and 41 U.S.C. 254b) 
means all facts that, as of the date of price agreement or, if 
applicable, an earlier date agreed upon between the parties that is as 
close as practicable to the date of agreement on price, prudent buyers 
and sellers would reasonably expect to affect price negotiations 
significantly. Cost or pricing data are data requiring certification in 
accordance with 15.406-2. Cost or pricing data are factual, not 
judgmental; and are verifiable. While they do not indicate the accuracy 
of the prospective contractor's judgment about estimated future costs 
or projections, they do include the data forming the basis for that 
judgment. Cost or pricing data are more than historical accounting 
data; they are all the facts that can be reasonably expected to 
contribute to the soundness of estimates of future costs and to the 
validity of determinations of costs already incurred. They also include 
such factors as--
    (1) Vendor quotations;
    (2) Nonrecurring costs;
    (3) Information on changes in production methods and in production 
or purchasing volume;
    (4) Data supporting projections of business prospects and 
objectives and related operations costs;
    (5) Unit-cost trends such as those associated with labor 
efficiency;
    (6) Make-or-buy decisions;
    (7) Estimated resources to attain business goals; and
    (8) Information on management decisions that could have a 
significant bearing on costs.
    Cost realism means that the costs in an offeror's proposal--
    (1) Are realistic for the work to be performed;
    (2) Reflect a clear understanding of the requirements; and
    (3) Are consistent with the various elements of the offeror's 
technical proposal.
    Cost sharing means an explicit arrangement under which the 
contractor bears some of the burden of reasonable, allocable, and 
allowable contract cost.
    Day means, unless otherwise specified, a calendar day.
    Debarment means action taken by a debarring official under 9.406 to 
exclude a contractor from Government contracting and Government-
approved subcontracting for a reasonable, specified period; a 
contractor that is excluded is ``debarred.''
    Delivery order means an order for supplies placed against an 
established contract or with Government sources.
    Design-to-cost means a concept that establishes cost elements as 
management goals to achieve the best balance between life-cycle cost, 
acceptable performance, and schedule. Under this concept, cost is a 
design constraint during the design and development phases and a 
management discipline throughout the acquisition and operation of the 
system or equipment.
    Drug-free workplace means the site(s) for the performance of work 
done by the contractor in connection with a specific contract where 
employees of the contractor are prohibited from engaging in the 
unlawful manufacture, distribution, dispensing, possession, or use of a 
controlled substance.
    Effective date of termination means the date on which the notice of 
termination requires the contractor to stop performance under the 
contract. If the contractor receives the termination notice after the 
date fixed for termination, then the effective date of termination 
means the date the contractor receives the notice.
    Electronic commerce means electronic techniques for accomplishing 
business transactions including electronic mail or messaging, World 
Wide Web technology, electronic bulletin boards, purchase cards, 
electronic funds transfer, and electronic data interchange.
    Electronic data interchange (EDI) means a technique for 
electronically transferring and storing formatted information between 
computers utilizing established and published formats and codes, as 
authorized by the applicable Federal Information Processing Standards.
    Electronic Funds Transfer (EFT) means any transfer of funds, other 
than a transaction originated by cash, check, or similar paper 
instrument, that is

[[Page 2122]]

initiated through an electronic terminal, telephone, computer, or 
magnetic tape, for the purpose of ordering, instructing, or authorizing 
a financial institution to debit or credit an account. The term 
includes Automated Clearing House transfers, Fedwire transfers, and 
transfers made at automatic teller machines and point-of-sale 
terminals. For purposes of compliance with 31 U.S.C. 3332 and 
implementing regulations at 31 CFR part 208, the term ``electronic 
funds transfer'' includes a Governmentwide commercial purchase card 
transaction.
    End product means supplies delivered under a line item of a 
Government contract.
    Energy-efficient product means a product in the upper 25 percent of 
efficiency for all similar products or, if there are applicable Federal 
appliance or equipment efficiency standards, a product that is at least 
10 percent more efficient than the minimum Federal standard.
    Environmentally preferable means products or services that have a 
lesser or reduced effect on human health and the environment when 
compared with competing products or services that serve the same 
purpose. This comparison may consider raw materials acquisition, 
production, manufacturing, packaging, distribution, reuse, operation, 
maintenance, or disposal of the product or service.
    Executive agency means an executive department, a military 
department, or any independent establishment within the meaning of 5 
U.S.C. 101, 102, and 104(1), respectively, and any wholly owned 
Government corporation within the meaning of 31 U.S.C. 9101.
    Facsimile means electronic equipment that communicates and 
reproduces both printed and handwritten material. If used in 
conjunction with a reference to a document; e.g., facsimile bid, the 
terms refers to a document (in the example given, a bid) that has been 
transmitted to and received by the Government via facsimile.
    Federal Acquisition Computer Network (FACNET) Architecture is a 
Governmentwide system that provides universal user access, employs 
nationally and internationally recognized data formats, and allows the 
electronic data interchange of acquisition information between the 
private sector and the Federal Government. FACNET qualifies as the 
single, Governmentwide point of entry pending designation by the 
Administrator of the Office of Federal Procurement Policy (OFPP).
    Federal agency means any executive agency or any independent 
establishment in the legislative or judicial branch of the Government 
(except the Senate, the House of Representatives, the Architect of the 
Capitol, and any activities under the Architect's direction).
    Federally Funded Research and Development Centers (FFRDC's) means 
activities that are sponsored under a broad charter by a Government 
agency (or agencies) for the purpose of performing, analyzing, 
integrating, supporting, and/or managing basic or applied research and/
or development, and that receive 70 percent or more of their financial 
support from the Government; and--
    (1) A long-term relationship is contemplated;
    (2) Most or all of the facilities are owned or funded by the 
Government; and
    (3) The FFRDC has access to Government and supplier data, 
employees, and facilities beyond that common in a normal contractual 
relationship.
    Final indirect cost rate means the indirect cost rate established 
and agreed upon by the Government and the contractor as not subject to 
change. It is usually established after the close of the contractor's 
fiscal year (unless the parties decide upon a different period) to 
which it applies. For cost-reimbursement research and development 
contracts with educational institutions, it may be predetermined; that 
is, established for a future period on the basis of cost experience 
with similar contracts, together with supporting data.
    First article means a preproduction model, initial production 
sample, test sample, first lot, pilot lot, or pilot models.
    First article testing means testing and evaluating the first 
article for conformance with specified contract requirements before or 
in the initial stage of production.
    F.o.b. means free on board. This term is used in conjunction with a 
physical point to determine--
    (1) The responsibility and basis for payment of freight charges; 
and
    (2) Unless otherwise agreed, the point where title for goods passes 
to the buyer or consignee.
    F.o.b. destination means free on board at destination; i.e., the 
seller or consignor delivers the goods on seller's or consignor's 
conveyance at destination. Unless the contract provides otherwise, the 
seller or consignor is responsible for the cost of shipping and risk of 
loss. For use in the clause at 52.247-34, see the definition at 52.247-
34(a).
    F.o.b. origin means free on board at origin; i.e., the seller or 
consignor places the goods on the conveyance. Unless the contract 
provides otherwise, the buyer or consignee is responsible for the cost 
of shipping and risk of loss. For use in the clause at 52.247-29, see 
the definition at 52.247-29(a).
    F.o.b. * * * (For other types of F.o.b., see 47.303).
    Forward pricing rate agreement means a written agreement negotiated 
between a contractor and the Government to make certain rates available 
during a specified period for use in pricing contracts or 
modifications. These rates represent reasonable projections of specific 
costs that are not easily estimated for, identified with, or generated 
by a specific contract, contract end item, or task. These projections 
may include rates for such things as labor, indirect costs, material 
obsolescence and usage, spare parts provisioning, and material 
handling.
    Forward pricing rate recommendation means a rate set unilaterally 
by the administrative contracting officer for use by the Government in 
negotiations or other contract actions when forward pricing rate 
agreement negotiations have not been completed or when the contractor 
will not agree to a forward pricing rate agreement.
    Freight means supplies, goods, and transportable property.
    Full and open competition, when used with respect to a contract 
action, means that all responsible sources are permitted to compete.
    General and administrative (G&A) expense means any management, 
financial, and other expense which is incurred by or allocated to a 
business unit and which is for the general management and 
administration of the business unit as a whole. G&A expense does not 
include those management expenses whose beneficial or causal 
relationship to cost objectives can be more directly measured by a base 
other than a cost input base representing the total activity of a 
business unit during a cost accounting period.
    Head of the agency (see ``agency head'').
    Head of the contracting activity includes the official who has 
overall responsibility for managing the contracting activity.
    Historically black college or university means an institution 
determined by the Secretary of Education to meet the requirements of 34 
CFR 608.2. For the Department of Defense, the National Aeronautics and 
Space Administration,

[[Page 2123]]

and the Coast Guard, the term also includes any nonprofit research 
institution that was an integral part of such a college or university 
before November 14, 1986.
    HUBZone means a historically underutilized business zone that is an 
area located within one or more qualified census tracts, qualified 
nonmetropolitan counties, or lands within the external boundaries of an 
Indian reservation.
    HUBZone small business concern means a small business concern that 
appears on the List of Qualified HUBZone Small Business Concerns 
maintained by the Small Business Administration.
    In writing, writing, or written means any worded or numbered 
expression that can be read, reproduced, and later communicated, and 
includes electronically transmitted and stored information.
    Indirect cost means any cost not directly identified with a single, 
final cost objective, but identified with two or more final cost 
objectives or an intermediate cost objective.
    Indirect cost rate means the percentage or dollar factor that 
expresses the ratio of indirect expense incurred in a given period to 
direct labor cost, manufacturing cost, or another appropriate base for 
the same period (see also ``final indirect cost rate'').
    Ineligible means excluded from Government contracting (and 
subcontracting, if appropriate) pursuant to statutory, Executive order, 
or regulatory authority other than this regulation (48 CFR chapter 1) 
and its implementing and supplementing regulations; for example, 
pursuant to the Davis-Bacon Act and its related statutes and 
implementing regulations, the Service Contract Act, the Equal 
Employment Opportunity Acts and Executive orders, the Walsh-Healey 
Public Contracts Act, the Buy American Act, or the Environmental 
Protection Acts and Executive orders.
    Information other than cost or pricing data means any type of 
information that is not required to be certified in accordance with 
15.406-2 and is necessary to determine price reasonableness or cost 
realism. For example, such information may include pricing, sales, or 
cost information, and includes cost or pricing data for which 
certification is determined inapplicable after submission.
    Information technology means any equipment, or interconnected 
system(s) or subsystem(s) of equipment, that is used in the automatic 
acquisition, storage, manipulation, management, movement, control, 
display, switching, interchange, transmission, or reception of data or 
information by the agency.
    (1) For purposes of this definition, equipment is used by an agency 
if the equipment is used by the agency directly or is used by a 
contractor under a contract with the agency that requires--
    (i) Its use; or
    (ii) To a significant extent, its use in the performance of a 
service or the furnishing of a product.
    (2) The term ``information technology'' includes computers, 
ancillary equipment, software, firmware and similar procedures, 
services (including support services), and related resources.
    (3) The term ``information technology'' does not include any 
equipment that--
    (i) Is acquired by a contractor incidental to a contract; or
    (ii) Contains imbedded information technology that is used as an 
integral part of the product, but the principal function of which is 
not the acquisition, storage, manipulation, management, movement, 
control, display, switching, interchange, transmission, or reception of 
data or information. For example, HVAC (heating, ventilation, and air 
conditioning) equipment, such as thermostats or temperature control 
devices, and medical equipment where information technology is integral 
to its operation, are not information technology.
    Inherently governmental function means, as a matter of policy, a 
function that is so intimately related to the public interest as to 
mandate performance by Government employees. This definition is a 
policy determination, not a legal determination. An inherently 
governmental function includes activities that require either the 
exercise of discretion in applying Government authority, or the making 
of value judgments in making decisions for the Government. Governmental 
functions normally fall into two categories: the act of governing, 
i.e., the discretionary exercise of Government authority, and monetary 
transactions and entitlements.
    (1) An inherently governmental function involves, among other 
things, the interpretation and execution of the laws of the United 
States so as to--
    (i) Bind the United States to take or not to take some action by 
contract, policy, regulation, authorization, order, or otherwise;
    (ii) Determine, protect, and advance United States economic, 
political, territorial, property, or other interests by military or 
diplomatic action, civil or criminal judicial proceedings, contract 
management, or otherwise;
    (iii) Significantly affect the life, liberty, or property of 
private persons;
    (iv) Commission, appoint, direct, or control officers or employees 
of the United States; or
    (v) Exert ultimate control over the acquisition, use, or 
disposition of the property, real or personal, tangible or intangible, 
of the United States, including the collection, control, or 
disbursement of Federal funds.
    (2) Inherently governmental functions do not normally include 
gathering information for or providing advice, opinions, 
recommendations, or ideas to Government officials. They also do not 
include functions that are primarily ministerial and internal in 
nature, such as building security, mail operations, operation of 
cafeterias, housekeeping, facilities operations and maintenance, 
warehouse operations, motor vehicle fleet management operations, or 
other routine electrical or mechanical services. The list of commercial 
activities included in the attachment to Office of Management and 
Budget (OMB) Circular No. A-76 is an authoritative, nonexclusive list 
of functions that are not inherently governmental functions.
    Inspection means examining and testing supplies or services 
(including, when appropriate, raw materials, components, and 
intermediate assemblies) to determine whether they conform to contract 
requirements.
    Insurance means a contract that provides that for a stipulated 
consideration, one party undertakes to indemnify another against loss, 
damage, or liability arising from an unknown or contingent event.
    Invoice means a contractor's bill or written request for payment 
under the contract for supplies delivered or services performed (see 
also ``proper invoice'').
    Irrevocable letter of credit means a written commitment by a 
federally insured financial institution to pay all or part of a stated 
amount of money, until the expiration date of the letter, upon the 
Government's (the beneficiary) presentation of a written demand for 
payment. Neither the financial institution nor the offeror/contractor 
can revoke or condition the letter of credit.
    Labor surplus area means a geographical area identified by the 
Department of Labor in accordance with 20 CFR part 654, subpart A, as 
an area of concentrated unemployment or underemployment or an area of 
labor surplus.
    Labor surplus area concern means a concern that together with its 
first-tier

[[Page 2124]]

subcontractors will perform substantially in labor surplus areas. 
Performance is substantially in labor surplus areas if the costs 
incurred under the contract on account of manufacturing, production, or 
performance of appropriate services in labor surplus areas exceed 50 
percent of the contract price.
    Latent defect means a defect that exists at the time of acceptance 
but cannot be discovered by a reasonable inspection.
    List of Parties Excluded from Federal Procurement and 
Nonprocurement Programs means a list compiled, maintained, and 
distributed by the General Services Administration containing the names 
and other information about parties debarred, suspended, or voluntarily 
excluded under the Nonprocurement Common Rule or the Federal 
Acquisition Regulation, parties who have been proposed for debarment 
under the Federal Acquisition Regulation, and parties determined to be 
ineligible.
    Major system means that combination of elements that will function 
together to produce the capabilities required to fulfill a mission 
need. The elements may include hardware, equipment, software, or any 
combination thereof, but exclude construction or other improvements to 
real property. A system is a major system if--
    (1) The Department of Defense is responsible for the system and the 
total expenditures for research, development, test, and evaluation for 
the system are estimated to be more than $115,000,000 (based on fiscal 
year 1990 constant dollars) or the eventual total expenditure for the 
acquisition exceeds $540,000,000 (based on fiscal year 1990 constant 
dollars);
    (2) A civilian agency is responsible for the system and total 
expenditures for the system are estimated to exceed $750,000 (based on 
fiscal year 1980 constant dollars) or the dollar threshold for a 
``major system'' established by the agency pursuant to Office of 
Management and Budget Circular A-109, entitled ``Major System 
Acquisitions,'' whichever is greater; or
    (3) The system is designated a ``major system'' by the head of the 
agency responsible for the system (10 U.S.C. 2302 and 41 U.S.C. 403).
    Make-or-buy program means that part of a contractor's written plan 
for a contract identifying those major items to be produced or work 
efforts to be performed in the prime contractor's facilities and those 
to be subcontracted.
    Market research means collecting and analyzing information about 
capabilities within the market to satisfy agency needs.
    Master solicitation means a document containing special clauses and 
provisions that have been identified as essential for the acquisition 
of a specific type of supply or service that is acquired repetitively.
    May denotes the permissive. However, the words ``no person may * * 
*'' mean that no person is required, authorized, or permitted to do the 
act described.
    Micro-purchase means an acquisition of supplies or services (except 
construction), the aggregate amount of which does not exceed $2,500, 
except that in the case of construction, the limit is $2,000.
    Micro-purchase threshold means $2,500.
    Minority Institution means an institution of higher education 
meeting the requirements of section 1046(3) of the Higher Education Act 
of 1965 (20 U.S.C. 1067k), including a Hispanic-serving institution of 
higher education, as defined in section 316(b)(1) of the Act (20 U.S.C. 
1101a).
    Must (see ``shall'').
    National defense means any activity related to programs for 
military or atomic energy production or construction, military 
assistance to any foreign nation, stockpiling, or space.
    Neutral person means an impartial third party, who serves as a 
mediator, fact finder, or arbitrator, or otherwise functions to assist 
the parties to resolve the issues in controversy. A neutral person may 
be a permanent or temporary officer or employee of the Federal 
Government or any other individual who is acceptable to the parties. A 
neutral person must have no official, financial, or personal conflict 
of interest with respect to the issues in controversy, unless the 
interest is fully disclosed in writing to all parties and all parties 
agree that the neutral person may serve (5 U.S.C. 583).
    Nondevelopmental item means--
    (1) Any previously developed item of supply used exclusively for 
governmental purposes by a Federal agency, a State or local government, 
or a foreign government with which the United States has a mutual 
defense cooperation agreement;
    (2) Any item described in paragraph (1) of this definition that 
requires only minor modification or modifications of a type customarily 
available in the commercial marketplace in order to meet the 
requirements of the procuring department or agency; or
    (3) Any item of supply being produced that does not meet the 
requirements of paragraphs (1) or (2) solely because the item is not 
yet in use.
    Novation agreement means a legal instrument--
    (1) Executed by the--
    (i) Contractor (transferor);
    (ii) Successor in interest (transferee); and
    (iii) Government; and
    (2) By which, among other things, the transferor guarantees 
performance of the contract, the transferee assumes all obligations 
under the contract, and the Government recognizes the transfer of the 
contract and related assets.
    Offer means a response to a solicitation that, if accepted, would 
bind the offeror to perform the resultant contract. Responses to 
invitations for bids (sealed bidding) are offers called ``bids'' or 
``sealed bids'' responses to requests for proposals (negotiation) are 
offers called ``proposals'' responses to requests for quotations 
(negotiation) are not offers and are called ``quotes.'' For unsolicited 
proposals, see subpart 15.6.
    Option means a unilateral right in a contract by which, for a 
specified time, the Government may elect to purchase additional 
supplies or services called for by the contract, or may elect to extend 
the term of the contract.
    Organizational conflict of interest means that because of other 
activities or relationships with other persons, a person is unable or 
potentially unable to render impartial assistance or advice to the 
Government, or the person's objectivity in performing the contract work 
is or might be otherwise impaired, or a person has an unfair 
competitive advantage.
    Overtime means time worked by a contractor's employee in excess of 
the employee's normal workweek.
    Overtime premium means the difference between the contractor's 
regular rate of pay to an employee for the shift involved and the 
higher rate paid for overtime. It does not include shift premium, i.e., 
the difference between the contractor's regular rate of pay to an 
employee and the higher rate paid for extra-pay-shift work.
    Ozone-depleting substance means any substance the Environmental 
Protection Agency designates in 40 CFR part 82 as--
    (1) Class I, including, but not limited to, chlorofluorocarbons, 
halons, carbon tetrachloride, and methyl chloroform; or
    (2) Class II, including, but not limited to, 
hydrochlorofluorocarbons.
    Performance-based contracting means structuring all aspects of an 
acquisition around the purpose of the work to be performed as opposed 
to either the manner by which the work will be

[[Page 2125]]

performed or broad and imprecise statements of work.
    Personal services contract means a contract that, by its express 
terms or as administered, makes the contractor personnel appear to be, 
in effect, Government employees (see 37.104).
    Pollution prevention means any practice that--
    (1)(i) Reduces the amount of any hazardous substance, pollutant, or 
contaminant entering any waste stream or otherwise released into the 
environment (including fugitive emissions) prior to recycling, 
treatment, or disposal; and
    (ii) Reduces the hazards to public health and the environment 
associated with the release of such substances, pollutants, and 
contaminants;
    (2) Reduces or eliminates the creation of pollutants through 
increased efficiency in the use of raw materials, energy, water, or 
other resources; or
    (3) Protects natural resources by conservation.
    Possessions include the Virgin Islands, Johnston Island, American 
Samoa, Guam, Wake Island, Midway Island, and the Guano Islands, but 
does not include Puerto Rico, leased bases, or trust territories.
    Power of attorney means the authority given one person or 
corporation to act for and obligate another, as specified in the 
instrument creating the power; in corporate suretyship, an instrument 
under seal that appoints an attorney-in-fact to act in behalf of a 
surety company in signing bonds (see also ``attorney-in-fact'' at 
28.001).
    Preaward survey means an evaluation of a prospective contractor's 
capability to perform a proposed contract.
    Preponderance of the evidence means proof by information that, 
compared with that opposing it, leads to the conclusion that the fact 
at issue is more probably true than not.
    Pricing means the process of establishing a reasonable amount or 
amounts to be paid for supplies or services.
    Procurement (see ``acquisition'').
    Procuring activity means a component of an executive agency having 
a significant acquisition function and designated as such by the head 
of the agency. Unless agency regulations specify otherwise, the term 
``procuring activity'' is synonymous with ``contracting activity.''
    Projected average loss means the estimated long-term average loss 
per period for periods of comparable exposure to risk of loss.
    Proper invoice means a bill or written request for payment that 
meets the minimum standards specified in the clause at 52.232-25, 
Prompt Payment, 52.232-26, Prompt Payment for Fixed-Price Architect-
Engineer Contracts, or 52.232-27, Prompt Payment for Construction 
Contracts (also see 32.905(e)), and other terms and conditions 
contained in the contract for invoice submission.
    Purchase order, when issued by the Government, means an offer by 
the Government to buy supplies or services, including construction and 
research and development, upon specified terms and conditions, using 
simplified acquisition procedures.
    Qualification requirement means a Government requirement for 
testing or other quality assurance demonstration that must be completed 
before award of a contract.
    Qualified products list (QPL) means a list of products that have 
been examined, tested, and have satisfied all applicable qualification 
requirements.
    Recovered material means waste materials and by-products recovered 
or diverted from solid waste, but the term does not include those 
materials and by-products generated from, and commonly reused within, 
an original manufacturing process. For use in subpart 11.3 for paper 
and paper products, see the definition at 11.301.
    Residual value means the proceeds, less removal and disposal costs, 
if any, realized upon disposition of a tangible capital asset. It 
usually is measured by the net proceeds from the sale or other 
disposition of the asset, or its fair value if the asset is traded in 
on another asset. The estimated residual value is a current forecast of 
the residual value.
    Responsible audit agency means the agency that is responsible for 
performing all required contract audit services at a business unit.
    Responsible prospective contractor means a contractor that meets 
the standards in 9.104.
    Segment means one of two or more divisions, product departments, 
plants, or other subdivisions of an organization reporting directly to 
a home office, usually identified with responsibility for profit and/or 
producing a product or service. The term includes--
    (1) Government-owned contractor-operated (GOCO) facilities; and
    (2) Joint ventures and subsidiaries (domestic and foreign) in which 
the organization has--
    (i) A majority ownership; or
    (ii) Less than a majority ownership, but over which it exercises 
control.
    Self-insurance means the assumption or retention of the risk of 
loss by the contractor, whether voluntarily or involuntarily. Self-
insurance includes the deductible portion of purchased insurance.
    Senior procurement executive means the individual appointed 
pursuant to section 16(3) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 414(3)) who is responsible for management direction of 
the acquisition system of the executive agency, including 
implementation of the unique acquisition policies, regulations, and 
standards of the executive agency.
    Service-disabled veteran-owned small business concern--
    (1) Means a small business concern--
    (i) Not less than 51 percent of which is owned by one or more 
service-disabled veterans or, in the case of any publicly owned 
business, not less than 51 percent of the stock of which is owned by 
one or more service-disabled veterans; and
    (ii) The management and daily business operations of which are 
controlled by one or more service-disabled veterans or, in the case of 
a veteran with permanent and severe disability, the spouse or permanent 
caregiver of such veteran.
    (2) Service-disabled veteran means a veteran, as defined in 38 
U.S.C. 101(2), with a disability that is service-connected, as defined 
in 38 U.S.C. 101(16).
    Shall denotes the imperative.
    Shipment means freight transported or to be transported.
    Shop drawings means drawings submitted by the construction 
contractor or a subcontractor at any tier or required under a 
construction contract, showing in detail either or both of the 
following:
    (1) The proposed fabrication and assembly of structural elements.
    (2) The installation (i.e., form, fit, and attachment details) of 
materials or equipment.
    Should means an expected course of action or policy that is to be 
followed unless inappropriate for a particular circumstance.
    Signature or signed means the discrete, verifiable symbol of an 
individual which, when affixed to a writing with the knowledge and 
consent of the individual, indicates a present intention to 
authenticate the writing. This includes electronic symbols.
    Simplified acquisition procedures means the methods prescribed in 
part 13 for making purchases of supplies or services.
    Simplified acquisition threshold means $100,000, except that in the 
case of any contract to be awarded and performed, or purchase to be 
made, outside the United States in support of a contingency operation 
(as defined in

[[Page 2126]]

10 U.S.C. 101(a)(13)) or a humanitarian or peacekeeping operation (as 
defined in 10 U.S.C. 2302(8) and 41 U.S.C. 259(d)), the term means 
$200,000.
    Single, Governmentwide point of entry, means the one point of entry 
to be designated by the Administrator of OFPP that will allow the 
private sector to electronically access procurement opportunities 
Governmentwide.
    Small business subcontractor means a concern, including affiliates, 
that for subcontracts valued at--
    (1) $10,000 or less, does not have more than 500 employees; and
    (2) More than $10,000, does not have employees or average annual 
receipts exceeding the size standard in 13 CFR part 121 (see 19.102) 
for the product or service it is providing on the subcontract.
    Small disadvantaged business concern (except for 52.212-3(c)(2) and 
52.219-1(b)(2) for general statistical purposes and 52.212-3(c)(7)(ii), 
52.219-22(b)(2), and 52.219-23(a) for joint ventures under the price 
evaluation adjustment for small disadvantaged business concerns), means 
an offeror that represents, as part of its offer, that it is a small 
business under the size standard applicable to the acquisition; and 
either--
    (1) It has received certification as a small disadvantaged business 
concern consistent with 13 CFR part 124, subpart B; and
    (i) No material change in disadvantaged ownership and control has 
occurred since its certification;
    (ii) Where the concern is owned by one or more disadvantaged 
individuals, the net worth of each individual upon whom the 
certification is based does not exceed $750,000 after taking into 
account the applicable exclusions set forth at 13 CFR 124.104(c)(2); 
and
    (iii) It is identified, on the date of its representation, as a 
certified small disadvantaged business concern in the data base 
maintained by the Small Business Administration (PRO-Net); or
    (2) For a prime contractor, it has submitted a completed 
application to the Small Business Administration or a private certifier 
to be certified as a small disadvantaged business concern in accordance 
with 13 CFR part 124, subpart B, and a decision on that application is 
pending, and that no material change in disadvantaged ownership and 
control has occurred since it submitted its application. In this case, 
a contractor must receive certification as a small disadvantaged 
business by the Small Business Administration prior to contract award.
    Sole source acquisition means a contract for the purchase of 
supplies or services that is entered into or proposed to be entered 
into by an agency after soliciting and negotiating with only one 
source.
    Solicitation provision or provision means a term or condition used 
only in solicitations and applying only before contract award.
    Special competency means a special or unique capability, including 
qualitative aspects, developed incidental to the primary functions of 
the Federally Funded Research and Development Centers to meet some 
special need.
    State and local taxes means taxes levied by the States, the 
District of Columbia, Puerto Rico, possessions of the United States, or 
their political subdivisions.
    Substantial evidence means information sufficient to support the 
reasonable belief that a particular act or omission has occurred.
    Substantially as follows or substantially the same as, when used in 
the prescription and introductory text of a provision or clause, means 
that authorization is granted to prepare and utilize a variation of 
that provision or clause to accommodate requirements that are peculiar 
to an individual acquisition; provided that the variation includes the 
salient features of the FAR provision or clause, and is not 
inconsistent with the intent, principle, and substance of the FAR 
provision or clause or related coverage of the subject matter.
    Supplemental agreement means a contract modification that is 
accomplished by the mutual action of the parties.
    Supplies means all property except land or interest in land. It 
includes (but is not limited to) public works, buildings, and 
facilities; ships, floating equipment, and vessels of every character, 
type, and description, together with parts and accessories; aircraft 
and aircraft parts, accessories, and equipment; machine tools; and the 
alteration or installation of any of the foregoing.
    Surety means an individual or corporation legally liable for the 
debt, default, or failure of a principal to satisfy a contractual 
obligation. The types of sureties referred to are as follows:
    (1) An individual surety is one person, as distinguished from a 
business entity, who is liable for the entire penal amount of the bond.
    (2) A corporate surety is licensed under various insurance laws 
and, under its charter, has legal power to act as surety for others.
    (3) A cosurety is one of two or more sureties that are jointly 
liable for the penal sum of the bond. A limit of liability for each 
surety may be stated.
    Suspension means action taken by a suspending official under 9.407 
to disqualify a contractor temporarily from Government contracting and 
Government-approved subcontracting; a contractor that is disqualified 
is ``suspended.''
    Task order means an order for services placed against an 
established contract or with Government sources.
    Taxpayer Identification Number (TIN) means the number required by 
the IRS to be used by the offeror in reporting income tax and other 
returns. The TIN may be either a Social Security Number or an Employer 
Identification Number.
    Unallowable cost means any cost that, under the provisions of any 
pertinent law, regulation, or contract, cannot be included in prices, 
cost-reimbursements, or settlements under a Government contract to 
which it is allocable.
    Unique and innovative concept, when used relative to an unsolicited 
research proposal, means that--
    (1) In the opinion and to the knowledge of the Government 
evaluator, the meritorious proposal--
    (i) Is the product of original thinking submitted confidentially by 
one source;
    (ii) Contains new, novel, or changed concepts, approaches, or 
methods;
    (iii) Was not submitted previously by another; and
    (iv) Is not otherwise available within the Federal Government.
    (2) In this context, the term does not mean that the source has the 
sole capability of performing the research.
    United States, when used in a geographic sense, means the 50 States 
and the District of Columbia, except as follows:
    (1) For use in subpart 22.8, see the definition at 22.801.
    (2) For use in subpart 22.10, see the definition at 22.1001.
    (3) For use in part 25, see the definition at 25.003.
    (4) For use in subpart 47.4, see the definition at 47.401.
    Unsolicited proposal means a written proposal for a new or 
innovative idea that is submitted to an agency on the initiative of the 
offeror for the purpose of obtaining a contract with the Government, 
and that is not in response to a request for proposals, Broad Agency 
Announcement, Small Business Innovation Research topic, Small Business 
Technology Transfer Research topic, Program Research and Development 
Announcement, or any other Government-initiated solicitation or 
program.

[[Page 2127]]

    Value engineering means an analysis of the functions of a program, 
project, system, product, item of equipment, building, facility, 
service, or supply of an executive agency, performed by qualified 
agency or contractor personnel, directed at improving performance, 
reliability, quality, safety, and life-cycle costs (section 36 of the 
Office of Federal Procurement Policy Act, 41 U.S.C. 401, et seq.). For 
use in the clause at 52.248-2, see the definition at 52.248-2(b).
    Value engineering change proposal (VECP)-(1) means a proposal 
that--
    (i) Requires a change to the instant contract to implement; and
    (ii) Results in reducing the overall projected cost to the agency 
without impairing essential functions or characteristics, provided that 
it does not involve a change--
    (A) In deliverable end item quantities only;
    (B) In research and development (R&D) items or R&D test quantities 
that are due solely to results of previous testing under the instant 
contract; or
    (C) To the contract type only.
    (2) For use in the clauses at--
    (i) 52.248-2, see the definition at 52.248-2(b); and
    (ii) 52.248-3, see the definition at 52.248-3(b).
    Veteran-owned small business concern means a small business 
concern--
    (1) Not less than 51 percent of which is owned by one or more 
veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any 
publicly owned business, not less than 51 percent of the stock of which 
is owned by one or more veterans; and
    (2) The management and daily business operations of which are 
controlled by one or more veterans.
    Virgin material means--
    (1) Previously unused raw material, including previously unused 
copper, aluminum, lead, zinc, iron, other metal or metal ore; or
    (2) Any undeveloped resource that is, or with new technology will 
become, a source of raw materials.
    Warranty means a promise or affirmation given by a contractor to 
the Government regarding the nature, usefulness, or condition of the 
supplies or performance of services furnished under the contract.
    Waste reduction means preventing or decreasing the amount of waste 
being generated through waste prevention, recycling, or purchasing 
recycled and environmentally preferable products.
    Women-owned small business concern means a small business concern--
    (1) That is at least 51 percent owned by one or more women; or, in 
the case of any publicly owned business, at least 51 percent of the 
stock of which is owned by one or more women; and
    (2) Whose management and daily business operations are controlled 
by one or more women.
    Writing or written (see ``in writing'').

    3c. Revise section 2.201 to read as follows:


2.201  Contract clause.

    Insert the clause at 52.202-1, Definitions, in solicitations and 
contracts that exceed the simplified acquisition threshold. If the 
contract is for personal services, construction, architect-engineer 
services, or dismantling, demolition, or removal of improvements, use 
the clause with its Alternate I. The contracting officer may include 
additional definitions, provided they are consistent with the clause 
and the FAR.

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

    4. In section 3.302, add an introductory paragraph to read as 
follows:


3.302  Definitions.

    As used in this subpart--
* * * * *

    5. Amend section 3.401 by adding an introductory paragraph; and by 
removing ``, as used in this subpart,'' from the definitions ``Bona 
fide agency'', ``Bona fide employee'', ``Contingent fee'', and 
``Improper influence'' by. The added text reads as follows:


3.401  Definitions.

    As used in this subpart--
* * * * *

    6. In section 3.501-1, revise the introductory paragraph; and 
redesignate paragraphs (a) and (b) as (1) and (2), respectively. The 
revised text reads as follows:


3.501-1  Definition.

    Buying-in, as used in this section, means submitting an offer below 
anticipated costs, expecting to--
* * * * *

    7. Amend section 3.502-1 by adding an introductory paragraph; 
removing ``, as used in this section,'' from the definitions 
``Kickback'', ``Person'', ``Prime contract'', ``Prime Contractor'', 
``Prime Contractor employee'', and ``Subcontract''; removing ``, as 
used in this section, `` from the definition ``Subcontractor''; and 
redesignating paragraphs (a) and (b) as (1) and (2), respectively. The 
added text reads as follows:


3.502-1  Definitions.

    As used in this section--
* * * * *

    8. Add an introductory paragraph to section 3.901 to read as 
follows:


3.901  Definitions.

    As used in this subpart--
* * * * *

PART 4--ADMINISTRATIVE MATTERS


4.501  [Reserved]

    9. Remove and reserve section 4.501.


4.901  Definition.

    10. In section 4.901, revise the section heading as set forth 
above; and remove the definition ``Taxpayer Identification Number 
(TIN).''

PART 5--PUBLICIZING CONTRACT ACTIONS


5.202  [Amended]

    11. In section 5.202, amend paragraph (a)(8) by removing ``6.003'' 
and adding ``2.101'' in its place.

    12. Amend section 5.501, by adding an introductory paragraph; by 
removing ``, as used in this subpart,'' from the definitions 
``Advertisement'' and ``Publication''; and by redesignating paragraphs 
(a) and (b) in the definition ``Publication'' as (1) and (2), 
respectively. The added text reads as follows:


5.501  Definitions.

    As used in this subpart--
* * * * *

PART 6--COMPETITION REQUIREMENTS

    13. Revise section 6.000 to read as follows:


6.000  Scope of part.

    This part prescribes policies and procedures to promote full and 
open competition in the acquisition process and to provide for full and 
open competition, full and open competition after exclusion of sources, 
other than full and open competition, and competition advocates. This 
part does not deal with the results of competition (e.g., adequate 
price competition), that are addressed in other parts (e.g., part 15).


6.003  [Removed and Reserved]

    14. Remove and reserve section 6.003.

[[Page 2128]]


    15. Amend section 6.302-1 by revising paragraph (a)(2)(i)(A) to 
read as follows:


6.302-1  Only one responsible source and no other supplies or services 
will satisfy agency requirements.

    (a) * * *
    (2) * * *
    (i) * * *
    (A) Demonstrates a unique and innovative concept (see definition at 
2.101), or, demonstrates a unique capability of the source to provide 
the particular research services proposed;
* * * * *


6.302-3  [Amended]

    16. Amend section 6.302-3 in paragraph (a)(2)(iii) by removing 
``(see 33.201)''.

PART 7--ACQUISITION PLANNING

    17. Amend section 7.101 by adding an introductory paragraph; 
removing the definitions ``Acquisition planning'' and ``Design to 
cost''; and by removing ``, as used in this subpart,'' from the 
definitions ``Acquisition streamlining'', and ``Planner''. The added 
text reads as follows:


7.101  Definitions.

    As used in this subpart--
* * * * *


7.501  [Reserved]

    18. Remove and reserve section 7.501.

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    19. In section 8.501, add an introductory paragraph; and remove ``, 
as used in this subpart,'' from the definition ``Bureau of Land 
Management''. The added text reads as follows:


8.501  Definitions.

    As used in this subpart--
* * * * *

    20. In section 8.701, add an introductory paragraph; and amend the 
definitions ``Allocation'', ``Central nonprofit agency'', 
``Committee'', and ``Procurement List'' by removing ``, as used in this 
subpart,''. The added text reads as follows:


8.701  Definitions.

    As used in this subpart--
* * * * *

    21. Amend section 8.801 by adding an introductory paragraph; and '' 
removing ``, as used in this subpart,'' from the definition ``Related 
supplies''. The added text reads as follows:


8.801  Definitions.

    As used in this subpart--
* * * * *
    22. Amend section 8.1101 by adding an introductory paragraph; 
removing from the definition ``Leasing'' ``, as used in this 
subpart,''; and redesignating paragraphs (a) and (b) in the definition 
``Motor vehicle'' as (1) and (2), respectively. The added text reads as 
follows:


8.1101  Definitions.

    As used in this subpart--
* * * * *

PART 9--CONTRACTOR QUALIFICATIONS


9.101  [Amended]

    23. Amend section 9.101 by revising the section heading to read 
``Definition''; by removing the definitions ``Preaward survey'' and 
``Responsible prospective contractor''; and by adding ``, as used in 
this subpart,'' after the word ``activity'' in the definition 
``Surveying activity.''

    24. Amend section 9.201 by adding an introductory paragraph; and by 
removing the definitions ``Procuring activity'', ``Qualification 
requirement'', and ``Qualified products list (QPL).'' The added text 
reads as follows:


9.201  Definitions.

    As used in this subpart--
* * * * *


9.301  Definition.

    25. Amend section 9.301 by revising the section heading to read as 
set forth above; and by removing the definitions ``First article'' and 
``First article testing.''


9.400  [Amended]

    26. Amend section 9.400 in paragraph (a)(2) by removing ``9.403'' 
and adding ``2.101'' in its place.

    27. Amend section 9.403 as follows:
    a. Add an introductory paragraph;
    b. Remove the definitions ``Adequate evidence'', ``Conviction'', 
``Debarment'', ``Ineligible'', ``List of Parties Excluded from Federal 
Procurement and Nonprocurement
    Programs'', ``Preponderance of the evidence'', and ``Suspension'';
    c. In the definitions ``Affiliates'', ``Contractor'', ``Debarring 
official'', and ``Suspending official'', redesignate paragraphs (a) and 
(b) as (1) and (2), respectively;
    d. Amend the definitions ``Agency'', ``Contractor'', and ``Unfair 
trade practices'' by removing ``, as used in this subpart,'' and
    e. In the definition ``Indictment'' remove ``shall be'' and add 
``is'' in its place.
    The added text reads as follows:


9.403  Definitions.

    As used in this subpart--
* * * * *


9.501  Definition.

    28. Amend section 9.501 as follows:
    a. Revise the section heading as set forth above;
    b. In the definition ``Marketing consultant'' remove ``means'' and 
add 
``, as used in this subpart, means'' in its place; and redesignate 
paragraphs (a) through (d) as (1) through (4), respectively; and
    c. Remove the definition ``Organizational conflict of interest''.


9.601  [Amended]

    29. Amend section 9.601 in the definition ``Contractor team 
arrangement'' by adding ``, as used in this subpart,'' after the word 
``arrangement'' the first time it is used; and by redesignating 
paragraphs (a) and (b) as (1) and (2), respectively.


9.701  [Amended]

    30. Amend section 9.701 by redesignating paragraphs (a) and (b) as 
(1) and (2), respectively, and paragraphs (c) introductory text, 
(c)(1), and (c)(2) as (3), (3)(i), and (3)(ii), respectively.

PART 11--DESCRIBING AGENCY NEEDS

    31. Amend section 11.601 by adding an introductory paragraph; and 
by removing ``, as used in this subpart,'' from the definitions 
``Authorized program'', ``Controlled materials'', and ``Delegate 
Agency''. The added text reads as follows:


11.601  Definitions.

    As used in this subpart--
* * * * *

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.001  [Amended]

    32. Amend section 13.001 by removing the definition ``Purchase 
order''.


13.501  [Amended]

    33. Amend section 13.501 in paragraph (a)(1)(i) by removing 
``6.003'' and adding ``2.101'' in its place.

PART 14--SEALED BIDDING

    34. Revise section 14.203-3 to read as follows:

[[Page 2129]]

14.203-3  Master solicitation.

    The master solicitation is provided to potential sources who are 
requested to retain it for continued and repetitive use. Individual 
solicitations must reference the date of the current master 
solicitation and identify any changes. The contracting officer must--
    (a) Make available copies of the master solicitation on request; 
and
    (b) Provide the cognizant contract administration activity a 
current copy of the master solicitation.

PART 15--CONTRACTING BY NEGOTIATION

    35. Amend section 15.001 by adding, in alphabetical order, the 
definitions ``Deficiency'' and ``Weakness'' to read as follows:


15.001  Definitions.

    Deficiency is a material failure of a proposal to meet a Government 
requirement or a combination of significant weaknesses in a proposal 
that increases the risk of unsuccessful contract performance to an 
unacceptable level.
* * * * *
    Weakness means a flaw in the proposal that increases the risk of 
unsuccessful contract performance. A ``significant weakness'' in the 
proposal is a flaw that appreciably increases the risk of unsuccessful 
contract performance.


15.301  [Reserved]

    36. Remove and reserve section 15.301.
    37. Amend section 15.401 as follows:
    a. Add an introductory paragraph;
    b. Remove the definitions ``Cost or pricing data'', ``Cost 
realism'', ``Forward pricing rate agreement'', ``Forward pricing rate 
recommendation'', and ``Information other than cost or pricing data''; 
and
    c. Remove ``, as used in this subpart,'' from the definitions 
``Price'' and ``Subcontract''. The added text reads as follows:


15.401  Definitions.

    As used in this subpart--
* * * * *


15.402    [Amended]

    38. Amend section 15.402 as follows:
    a. In the introductory paragraph remove ``shall'' and add ``must'' 
in its place;
    b. In the introductory text of paragraph (a) remove ``shall'' each 
time it is used (twice) and add ``must'' in its place;
    c. In paragraph (a)(2)(ii) remove ``15.401'' and add ``2.101'' in 
its place; and
    d. In paragraph (a)(3), second sentence, remove ``shall'' and add 
``must'' in its place.


15.403-1  [Amended]

    39. Amend section 15.403-1 in the first sentence of paragraph 
(c)(3) by removing ``(c)(1) or (2)'' and adding ``(3)(i) or (ii)'' in 
its place.


15.403-4  [Amended]

    40. Amend section 15.403-4 in paragraph (c) by removing ``shall'' 
each time it is used (twice) and adding ``must'' in its place; and by 
removing ``15.401'' and adding ``2.101'' in its place.


15.406-2  [Amended]

    41. Amend section 15.406-2 paragraph (a) by removing ``shall'' each 
time it is used (twice) and adding ``must'' in its place; and by 
removing from the first sentence of the Certificate of Current Cost or 
Pricing Data ``15.401'' and adding ``2.101'' in its place.

    42. Amend section 15.407-2 by revising paragraph (b) to read as 
follows:


15.407-2  Make-or-buy programs.

* * * * *
    (b) Definition. Make item, as used in this subsection, means an 
item or work effort to be produced or performed by the prime contractor 
or its affiliates, subsidiaries, or divisions.
* * * * *


15.408  [Amended]

    43. In section 15.408, amend Table 15-2, which follows paragraph 
(m)(4), by adding a comma after the word ``title'' in paragraph A. (11) 
of the General Instructions; and by removing from paragraph C. 
``15.401'' and adding ``2.101'' in its place.


15.601  [Amended]

    44. Amend section 15.601 by removing the definition ``Unsolicited 
proposal.''


15.604  [Amended]

    45. Amend section 15.604 in the introductory text of paragraph (a), 
second sentence, by removing ``shall'' and adding ``must'' in its 
place; and in paragraph (a)(1) by removing ``15.601'' and adding 
``2.101'' in its place.

PART 17--SPECIAL CONTRACTING METHODS


17.103  [Amended]

    46. Amend section 17.103 in the definition ``Cancellation'' by 
redesignating paragraphs (a) and (b) as (1) and (2), respectively.


17.201  [Reserved]

    47. Remove and reserve section 17.201.


17.501  [Amended]

    48. In section 17.501, add ``, as used in this subpart,'' after the 
word ``acquisition''.

PART 19--SMALL BUSINESS PROGRAMS

    49. Amend section 19.001 as follows:
    a. Add an introductory paragraph;
    b. In the definitions ``Concern'', ``Fair market price'', and 
``Industry'' remove ``, as used in this part,''; and
    c. Remove the definitions ``HUBZone'', ``HUBZone small business 
concern'', ``Labor surplus area'', ``Labor surplus area concern'', 
``Small disadvantaged business concern'', and ``Women-owned small 
business concern''. The added text reads as follows:


19.001  Definitions.

    As used in this part--
* * * * *

    50. Amend section 19.101 as follows:
    a. Add an introductory paragraph;
    b. In the definition of ``Affiliates''--
     Remove ``As used in this subpart, business'' and add 
``Business'' in its place;
     Redesignate paragraphs (a) through (g) as (1) through (7), 
respectively;
     In the newly designated paragraph (3), redesignate 
paragraphs (1) through (3) as (i) through (iii), respectively;
     In the newly designated paragraph (6), redesignate 
paragraphs (1) through (3) as (i) through (iii), respectively;
     In the newly designated paragraph (7), redesignate 
paragraphs (1) through (5) as (i) through (v), respectively;
     In the newly designated paragraph (7)(i) redesignate 
paragraphs (i) and (ii) as (A) and (B), respectively;
     In the newly designated paragraph (7)(i)(B), redesignate 
paragraphs (A) and (B) as (1) and (2), respectively; and
     In the newly designated paragraph (7)(v), remove 
``(g)(1)(i) and (ii)'' and add ``(7)(i)(A) and (B)'' in its place; and
    c. In the definition ``Annual receipts'', redesignate paragraphs 
(1) and (2) as (i) and (ii), respectively; redesignate paragraphs (a) 
and (b) as (1) and (2), respectively; and in the newly designated 
paragraph (2) remove ``paragraph (a) above'' and add ``paragraph (1) of 
this definition'' in its place. The added text reads as follows:

[[Page 2130]]

19.101  Explanation of terms.

    As used in this subpart--
* * * * *
    51. In section 19.701, add an introductory paragraph; and remove 
the definition ``Small business subcontractor''. The added text reads 
as follows:


19.701  Definitions.

    As used in this subpart--
* * * * *


19.703  [Amended]

    52. Amend section 19.703 in paragraph (a)(1) by removing ``in 2.101 
or 19.001'' and adding ``(see 2.101 and 19.001)'' in its place.

    53. Amend section 19.902 by revising the section heading and the 
introductory paragraph to read as follows:


19.902  Designated SBA district.

    A designated SBA district is the geographic area served by any of 
the following SBA district offices:
* * * * *

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.103-1  Definition.

    54. Amend section 22.103-1 by revising the section heading to read 
as set forth above; in the definition ``Normal workweek'' by 
redesignating paragraphs (a) and (b) as (1) and (2), respectively; and 
by removing the definitions ``Overtime'', ``Overtime premium'', and 
``Shift premium''.

    55. Amend section 22.401 as follows:
    a. Add a new introductory paragraph;
    b. Remove ``, as used in this subpart,'' from the definitions 
``Building'' or ``work'', ``Construction, alteration, or repair'', 
``Public building'' or ``public work'', and ``Wages''.
    c. Amend the definition ``Laborers or mechanics'' as follows--
     Remove ``, as used in this subpart,'';
     Redesignate paragraphs (a) through (d) as (1) through (4), 
respectively;
     In the newly designated paragraph (2), redesignate 
paragraphs (1) and (2) as (i) and (ii), respectively; and redesignate 
paragraphs (i) and (ii) as (A) and (B), respectively; and
     In the newly designated paragraph (4), remove ``paragraph 
(c)'' and add ``paragraph (3)'' in its place; and
    d. Amend the definition ``Site of the work'' as follows:
     Remove ``, as used in this subpart,'';
     Redesignate paragraphs (a) through (c) as (1) through (3), 
respectively;
     In the newly designated paragraph (1), remove ``paragraph 
(b)'' and add ``paragraph (2)'' in its place; and
     In the newly designated paragraph (2), remove ``paragraph 
(c)'' and add ``paragraph (3)'' in its place. The added text reads as 
follows:


22.401  Definitions.

    As used in this subpart--
* * * * *

    56. Amend section 22.1001 by adding an introductory paragraph; 
revising the definition ``Act or Service Contract Act''; and removing 
``, as used in this subpart,'' from the definitions ``Contractor'', 
``Multiple year contracts'', ``Notice'', ``Service contract'', and 
``United States''. The added and revised text reads as follows:


22.1001  Definitions.

    As used in this subpart--
    Act or Service Contract Act means the Service Contract Act of 1965.
* * * * *


22.1102  [Amended]

    57. In the first sentence of section 22.1102, add ``, as used in 
this subpart,'' after ``Professional employee''.

    58. Amend section 22.1202, by adding an introductory paragraph; and 
removing ``as used in this subpart,'' from the definitions ``Building 
service contract'', ``Public building'' and ``Service employee''. The 
added text reads as follows:


22.1202  Definitions.

    As used in this subpart--
* * * * *

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

    59. Amend section 23.503 by adding an introductory paragraph; 
removing ``, as used in this subpart,'' from the definition 
``Controlled substance''; and removing the definition ``Drug-free 
workplace''. The added text reads as follows:


23.503  Definitions.

    As used in this subpart--
* * * * *


23.802  [Reserved]

    60. Remove and reserve section 23.802.


23.904  [Amended]

    61. In section 23.904, add ``, as used in this subpart,'' after 
``Toxic chemicals''.

PART 24--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

    62. Amend section 24.101 by adding an introductory paragraph; and 
by removing ``, as used in this subpart,'' from the definitions 
``Agency'', ``Individual'', ``Maintain'', ``Operation of a system of 
records'', ``Record'', and ``System of records on individuals''. The 
added text reads as follows:


24.101  Definitions.

    As used in this subpart--
* * * * *

PART 26--OTHER SOCIOECONOMIC PROGRAMS


26.301  [Reserved]

    63. Remove and reserve section 26.301.

PART 27--PATENTS, DATA, AND COPY RIGHTS

    64. Amend section 27.301 by adding an introductory paragraph; and 
by removing ``, as used in this subpart,'' from the definitions 
``Invention'', ``Made'', ``Nonprofit organization'', ``Practical 
application'', ``Small business firm'', and ``Subject invention''. The 
added text reads as follows:


27.301  Definitions.

    As used in this subpart--
* * * * *

    65. Amend section 27.401 by adding an introductory paragraph; 
removing the definition ``Computer software''; and removing ``, as used 
in this subpart,'' from the definitions ``Data'', ``Form, fit, and 
function data'', ``Limited rights'', ``Limited rights data'' (both 
definitions), ``Restricted computer software'', ``Restricted rights'', 
``Technical data'', and ``Unlimited rights''. The added text reads as 
follows:


27.401  Definitions.

    As used in this subpart--
* * * * *

PART 28--BONDS AND INSURANCE

    66. Amend section 28.001 as follows:
    a. Add an introductory paragraph;
    b. Remove ``, as used in this part,'' from the definition 
``Attorney-in-fact''; and in the parenthetical add ``at 2.101'' after 
the word ``attorney'';
    c. In the definition ``Bid guarantee'', redesignate paragraphs (a) 
and (b) as (1) and (2), respectively;
    d. In the definition ``Bond'', redesignate paragraphs (a) through 
(f) as (1) through (6), respectively; and
    e. Remove the definitions ``Insurance'', ``Irrevocable letter of 
credit

[[Page 2131]]

(ILC)'', ``Power of attorney'', and ``Surety''. The added text reads as 
follows:


28.001  Definitions.

    As used in this part--
* * * * *


28.308  [Amended]

    67. Amend section 28.308 in the first sentence of paragraph (a) by 
removing ``(see 31.001)''.

PART 29--TAXES


29.301  [Reserved]

    68. Remove and reserve section 29.301.

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

    69. Amend section 31.001 as follows:
    a. Add an introductory paragraph;
    b. Revise the definition ``Actual costs'';
    c. In the definition ``Actuarial cost method'', remove ``that 
uses'' and add ``which uses'', in its place;
    d. Remove the definition ``Business unit'';
    e. Revise the definitions ``Cost objective'' and ``Final cost 
objective'';
    f. Remove ``, as used in this part,'' from the definition ``Fiscal 
year'';
    g. Remove the definition ``General and administrative (G&A) 
expense'';
    h. Revise the definition ``Indirect cost pools'';
    i. Remove ``, as used in this part'' from the definitions ``Job''; 
Job class of employees''; and ``Labor market'';
    j. Remove the definition ``Pricing'';
    k. Revise the definition ``Profit center''; and
    l. Remove the definitions ``Projected average loss'', ``Residual 
value'', ``Segment'', ``Self-insurance'', and ``Unallowable cost''.
    The added text reads as follows:


31.001  Definitions.

    As used in this part--
* * * * *
    Actual costs means (except for subpart 31.6) amounts determined on 
the basis of costs incurred, as distinguished from forecasted costs. 
Actual costs include standard costs properly adjusted for applicable 
variances.
* * * * *
    Cost objective means (except for subpart 31.6) a function, 
organizational subdivision, contract, or other work unit for which cost 
data are desired and for which provision is made to accumulate and 
measure the cost of processes, products, jobs, capitalized projects, 
etc.
* * * * *
    Final cost objective means (except for subparts 31.3 and 31.6) a 
cost objective that has allocated to it both direct and indirect costs 
and, in the contractors accumulation system, is one of the final 
accumulation points.
* * * * *
    Indirect cost pools means (except for subparts 31.3 and 31.6) 
groupings of incurred costs identified with two or more cost objectives 
but not identified specifically with any final cost objective.
* * * * *
    Profit center means (except for subparts 31.3 and 31.6) the 
smallest organizationally independent segment of a company charged by 
management with profit and loss responsibilities.
* * * * *

    70. Amend section 31.205-17 as follows:
    a. Add an introductory paragraph;
    b. Remove the paragraph designation from paragraph ``(a)'';
    c. Redesignate paragraphs (b) through (d) as (1) through (3), 
respectively; and in newly designated paragraph (1), redesignate 
paragraphs (1) and (2) as (i) and (ii), respectively; and
    d. Remove ``, as used in this subsection,'' from the definitions 
``Costs of idle facilities or idle capacity'', ``Facilities'', ``Idle 
capacity'', and ``Idle facilities'';. The added text reads as follows:


31.205-17  Idle facilities and idle capacity costs.

    As used in this subsection--
* * * * *

    71. Amend section 31.205-18 in the heading of paragraph (a) by 
adding ``As used in this subsection--'' after the word 
``Definitions.''; removing ``, as used in this subsection,'' from the 
definitions ``Applied research'', ``Bid and proposal (B&P) costs'', 
``Company'', ``Development'', ``Independent research and development 
(IR&D)'' and ``Systems and other concept formulation studies''; and 
revising the definition ``Basic research'' to read as follows:


31.205-18  Independent research and development and bid and proposal 
costs.

    (a) * * *
    Basic research (see 2.101).
* * * * *


31.205-32  [Amended]

    72. Amend section 31.205-32 in the first sentence by removing ``are 
those'' and adding ``means costs'' in its place; and in the second 
sentence by removing ``Such'' and adding ``These'' in its place.


31.205-33  [Amended]

    73. Amend section 31.205-33 in the first sentence of paragraph (a) 
by removing ``subpart, are'' and adding ``subsection, means'' in its 
place.


31.205-39  [Amended]

    74. Amend the second sentence of section 31.205-39 by removing the 
word ``such''.


31.205-47  [Amended]

    75. Amend section 31.205-47 in the heading of paragraph (a) by 
adding ``As used in this subpart--'' after ``Definitions.'', and by 
removing the definition ``Conviction''; and in paragraph (f)(5) by 
redesignating paragraphs (i) & (ii) as (A) and (B), and (1) and (2) as 
(i) and (ii), respectively. The added text reads as follows:


31.205-47  Costs related to legal and other proceedings.

    (a) Definitions. As used in this subpart--
* * * * *

PART 32--CONTRACT FINANCING

    76. Amend section 32.001 by adding an introductory paragraph; 
adding, in alphabetical order, the definitions ``Commercial interim 
payment'', ``Delivery payment'', and ``Due date''; and removing ``, as 
used in this part,'' from the definition ``Contract action''. The added 
text reads as follows:


32.001  Definitions.

    As used in this part--
    Commercial interim payment means any payment that is not a 
commercial advance payment or a delivery payment. These payments are 
contract financing payments for prompt payment purposes (i.e., not 
subject to the interest penalty provisions of the Prompt Payment Act in 
accordance with subpart 32.9). A commercial interim payment is given to 
the contractor after some work has been done, whereas a commercial 
advance payment is given to the contractor when no work has been done.
* * * * *
    Delivery payment means a payment for accepted supplies or services, 
including payments for accepted partial deliveries. Commercial 
financing payments are liquidated by deduction from these payments. 
Delivery payments are invoice payments for prompt payment purposes.
    Due date means the date on which payment should be made.
* * * * *

[[Page 2132]]

32.006-2  Definition.

    77. Amend section 32.006-2 by revising the section heading
    to read as set forth above; by removing the introductory paragraph; 
by adding ``, as used in this section,'' after the word ``official'' in 
the definition ``Remedy coordination official''; and by removing the 
definition ``Substantial evidence''.


32.113  [Amended]

    78. Amend section 32.113 in paragraph (e) by removing ``part 6'' 
and adding ``2.101'' in its place.

    79. Amend section 32.202-2, by revising the first sentence in the 
definition ``Commercial advance payment''; and by revising the 
definitions ``Commercial interim payment'' and ``Delivery payment'' to 
read as follows:


32.202-2  Types of payments for commercial item purchases.

* * * * *
    Commercial advance payment, as used in this subsection, means a 
payment made before any performance of work under the contract. * * *
    Commercial interim payment (see 32.001).
    Delivery payment (see 32.001).


32.202-3  [Amended]

    80. Amend section 32.202-3 in paragraphs (d) and (e) by removing 
``32.202-2'' and adding ``32.001'' in its place.

    81. Amend section 32.301 by adding an introductory paragraph; and 
by removing ``, as used in this subpart,'' from the definitions 
``Borrower'', ``Guaranteed loan'' or ``V loan'', and ``Guaranteeing 
agency''. The added text reads as follows:


32.301  Definitions.

    As used in this subpart--
* * * * *


32.801  [Amended]

    82. Amend section 32.801 by removing the definition ``Assignment of 
claims''.
    83. Amend section 32.902 by adding an introductory paragraph; 
removing ``, as used in this subpart,'' from the definitions ``Contract 
financing payment'', ``Day'', ``Designated billing office,'' and 
``Invoice payment''; by removing the definitions ``Due date'', 
``Invoice'', and ``Proper invoice''; and by removing ``which'' from the 
definition ``Specified payment date'' the first time it appears and 
adding ``that'' in its place. The added text reads as follows:


32.902  Definitions.

    As used in this subpart--
* * * * *

    84. Amend section 32.1102 as follows:
    a. Add an introductory paragraph;
    b. Remove the definition ``Electronic Funds Transfer'';
    c. Remove from the definition ``EFT information'' ``EFT 
information'' and add ``Electronic Funds Transfer information (EFT)'' 
in its place; and
    d. Remove ``, as used in this part,'' from the definition 
``Governmentwide commercial purchase card''. The added text reads as 
follows:


32.1102  Definitions.

    As used in this subpart--
* * * * *

PART 33--PROTESTS, DISPUTES, AND APPEALS

    85. Amend section 33.101 as follows:
    a. Add an introductory paragraph;
    b. In the definition ``Day'' redesignate paragraphs (a) and (b) as 
(1) and (2), respectively; and in the newly designated paragraph (2), 
redesignate paragraphs (1) and (2) as (i) and (ii), respectively;
    c. Remove ``, as used in this subpart,'' from the definitions 
``Day'', ``Filed'', and ``Interested party for the purpose of filing a 
protest''; and
    d. Remove ``, as used in this subpart,'' from the definition 
``Protest'' and redesignate paragraphs (a) through (d), as (1) through 
(4), respectively. The added text reads as follows:


33.101  Definitions.

    As used in this subpart--
* * * * *

    86. Amend section 33.201 as follows:
    a. Add an introductory paragraph;
    b. Revise the first sentence of the definition ``Accrual of a 
claim'';
    c. Remove ``as used in this subpart,'' from the definitions 
``Claim'' and ``Defective certification'';
    d. Remove ``, as used in this part,'' from the definition 
``Misrepresentation of fact'';
    e. In the introductory paragraph of the definition ``Issue in 
controversy'' remove ``which'' and add ``that'' in its place; and
    f. Remove the definition ``Neutral person''.
    The added and revised text reads as follows:


33.201  Definitions.

    As used in this subpart--
    Accrual of a claim means the date when all events, that fix the 
alleged liability of either the Government or the contractor and permit 
assertion of the claim, were known or should have been known. * * *
* * * * *

PART 34--MAJOR SYSTEM ACQUISITION


34.001  [Amended]

    87. Amend section 34.001 in the definition ``Effective 
competition'' by removing ``which'' and adding ``that'' (twice) in its 
place.


34.101  [Amended]

    88. Amend section 34.101 in the definition ``Item of supply'' by 
removing ``for the purpose of'' and adding ``as used in'' in its place.

PART 35--RESEARCH AND DEVELOPMENT CONTRACTING


35.001  [Amended]

    89. Amend section 35.001 by removing the definitions ``Basic 
research'', ``Broad agency announcement'', ``Cost sharing'', and 
``Federally Funded Research and Development Centers (FFRDC's)''.

    90. Amend section 35.017 in paragraph (b) by adding an introductory 
paragraph; by removing ``, as used in this section,'' from the 
definitions ``Nonsponsor'' and ``Primary sponsor''; and by removing the 
definition ``Special competency''. The added text reads as follows:


35.017  Federally Funded Research and Development Centers.

* * * * *
    (b) Definitions. As used in this section--
* * * * *

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

    91. Amend section 36.102 as follows:
    a. Add an introductory paragraph;
    b. Remove ``, as used in this part'' from the definitions 
``Contract'', ``Design'', ``Design-bid-build'', ``Design-build'', 
``Firm'', ``Plans and specifications'', ``Record drawings'', and ``Two-
phase design-build selection procedures''; and
    c. Remove the definitions ``Architect-engineer services'', ``As-
built drawings'', and ``Shop drawings''.


36.102  Definitions.

    As used in this part--
* * * * *


36.601-3  [Amended]

    92. Amend section 36.601-3 in paragraph (d) by removing ``36.102'' 
and adding ``2.101'' in its place.

[[Page 2133]]

PART 37--SERVICE CONTRACTING

    93. Amend section 37.101 by adding an introductory paragraph; by 
removing the definitions ``Performance-based contracting'' and 
``Personal services contract''; and in the definition ``Service 
contract'' by redesignating paragraphs (a) through (i) as (1) through 
(9), respectively. The added text reads as follows:


37.101  Definitions.

    As used in this part--
* * * * *


37.103  [Amended]

    94. Amend section 37.103 in paragraph (a)(1) by removing ``in 
37.101'' and adding ``at 2.101 and 37.101'' in its place.


37.104  [Amended]

    95. Amend section 37.104 in the first sentence of paragraph (a) by 
removing ``As indicated in 37.101, a'' and adding ``A'' in its place.


37.201  [Amended]

    96. Amend section 37.201 by removing ``, as used in this subpart,'' 
from the definition ``Covered personnel''; and by redesignating 
paragraphs (a)(1) through (a)(6) as (a)(i) through (a)(vi), paragraphs 
(a) through (c) as (1) through (3), respectively.


37.502  [Amended]

    97. Amend section 37.502 in paragraph (a)(3) by removing ``36.102'' 
and adding ``2.101'' in its place.

PART 39--ACQUISITION OF INFORMATION TECHNOLOGY

    98. Amend section 39.002 as follows:
    a. Add an introductory paragraph;
    b. Remove ``, as used in this part,'' from the definitions 
``Modular contracting'' and ``National security system'';
    c. In the definition ``National security system'', redesignate 
paragraphs (a) through (e) as (1) through (5), respectively; and
    d. In the definition ``Year 2000 compliant'', remove ``as used in 
this part, means,'' and add ``means'' after the word ``technology,''.
    The added text reads as follows:


39.002  Definitions.

    As used in this part--
* * * * *

PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES


42.001  [Reserved]

    99. Remove and reserve section 42.001.


42.302  [Amended]

    100. Amend section 42.302 in the last sentence of the introductory 
text of paragraph (a) by removing ``(see 42.001)'' and adding ``(see 
2.101)'' in its place.


42.503-2  [Amended]

    101. Amend section 42.503-2 by removing ``(see 43.101)'' from the 
fourth sentence.


42.701  Definition.

    102. Amend section 42.701 as follows:
    a. Revise the section heading as set forth above;
    b. In the introductory paragraph of the definition ``Billing rate'' 
remove ``means'' and add ``as used in this subpart means'', and 
redesignate paragraphs (a) and (b) as (1) and (2), respectively; and
    c. Remove the definitions ``Business unit'', ``Final indirect cost 
rate'', ``Forward pricing rate agreement'', ``Indirect cost'', and 
``Indirect cost rate''.


42.1201  [Reserved]

    103. Remove and reserve section 42.1201.

PART 43--CONTRACT MODIFICATIONS

    104. Amend section 43.101 by adding an introductory paragraph; by 
removing the definitions ``Change order'', ``Contract modification'', 
and ``Supplemental agreement'', and the introductory text of the 
definition ``Effective date'' including the heading Effective date.
    The added text reads as follows:


43.101  Definitions.

    As used in this part--
* * * * *

    105. Amend section 43.103 by revising paragraph (b)(3) to read as 
follows:


43.103  Types of contract modifications.

* * * * *
    (b) * * *
    (3) Make changes authorized by clauses other than a changes clause 
(e.g., Property clause, Options clause, or Suspension of Work clause); 
and
* * * * *

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES

    106. Amend section 44.101 by adding an introductory paragraph; by 
removing the definition ``Consent to subcontract''; and by removing ``, 
as used in this part,'' from the definitions ``Contractor'', 
``Subcontract'', and ``Subcontractor''. The added text reads as 
follows:


44.101  Definitions.

    As used in this part--
* * * * *

PART 46--QUALITY ASSURANCE

    107. Amend section 46.101 by adding an introductory paragraph; by 
removing ``, as used in this part,'' from the definitions 
``Acceptance'' and ``Conditional acceptance''; and by removing the 
definitions ``Commercial item'', ``Inspection'', and ``Latent defect''. 
The added text reads as follows:


46.101  Definitions.

    As used in this part--
* * * * *


46.701  [Reserved]

    108. Remove and reserve section 46.701.

    109. Amend section 46.710 by adding a sentence to the end of 
paragraphs (a)(1) and (b)(1) to read as follows:


46.710  Contract clauses.

* * * * *
    (a)(1) * * * If the contractor's design rather than the 
Government's design will be used, insert the word ``design'' before 
``material'' in paragraph (b)(1)(i).
* * * * *
    (b)(1) * * * If the contractor's design rather than the 
Government's design will be used, insert the word ``design'' before 
``material'' in paragraph (b)(1).
* * * * *

PART 47--TRANSPORTATION

    110. Amend section 47.001 by adding an introductory paragraph; by 
removing ``as used in this part'' from the definition ``Common 
carrier'', and removing the definitions ``F.o.b.'', ``F.o.b. origin'', 
``F.o.b. destination'', ``Freight'', and ``Shipment''. The added text 
reads as follows:


47.001  Definitions.

    As used in this part--
* * * * *

    111. Amend section 47.201 by adding an introductory paragraph; and 
removing ``, as used in this subpart'' from the definitions ``General 
freight'', ``Household goods'', and ``Office

[[Page 2134]]

furniture''. The added text reads as follows:


47.201  Definitions.

    As used in this subpart--
* * * * *

    112. Amend section 47.401 by adding an introductory paragraph; and 
by removing ``, as used in this subpart,'' from the definition ``United 
States''. The added text reads as follows:


47.401  Definitions.

    As used in this subpart--
* * * * *

    113. Amend section 47.501 as follows:
    a. Add an introductory paragraph;
    b. Remove ``, as used in this subpart'' from the definitions 
``Government vessel'', ``Privately owned U.S.-flag commercial vessel'', 
and ``U.S.-flag vessel;
    c. In the definition ``Privately owned U.S.-flag commercial 
vessel'' redesignate paragraphs (a) through (d) as (1) through (4).
    The added text reads as follows:


47.501  Definitions.

    As used in this subpart--
* * * * *

PART 48--VALUE ENGINEERING

    114. Amend section 48.001 as follows:
    a. Add an introductory paragraph;
    b. Remove ``, as used in this part,'' from the definitions 
``Acquisition savings'', ``Collateral costs'', ``Collateral savings'', 
``Contracting office'', ``Contractor's development and implementation 
costs'', and ``Value engineering proposal'';
    c. In the definition ``Acquisition savings'' redesignate paragraphs 
(a) through (c) as (1) through (3), respectively;
    d. Revise the newly designated paragraph (1);
    e. In the newly designated paragraphs (2) and (3), remove ``which'' 
and add ``that'' in their places;
    f. In the definition ``Future unit cost reduction'', ``Instant 
contract'', ``Sharing base'', ``Sharing period'', and ``Unit'', remove 
``, as used in this part,'';
    g. In the definition ``Future unit cost reduction'', redesignate 
paragraphs (a) and (b) as (1) and (2), respectively; and in the newly 
designated paragraph (2) remove ``which'' and add ``that'' in its 
place;
    h. Revise the definition ``Government costs''; and
    i. Remove the definitions ``Value engineering'' and ``Value 
engineering change proposal (VECP)''.
    The added and revised text reads as follows:


48.001  Definitions.

    As used in this part--
* * * * *
    Acquisition savings * * *
    (1) Instant contract savings, that are the net cost reductions on 
the contract under which the VECP is submitted and accepted, and that 
are equal to the instant unit cost reduction multiplied by the number 
of instant contract units affected by the VECP, less the contractor's 
allowable development and implementation costs;
* * * * *
    Government costs means those agency costs that result directly from 
developing and implementing the VECP, such as any net increases in the 
cost of testing, operations, maintenance, and logistics support. The 
term does not include the normal administrative costs of processing the 
VECP or any increase in instant contract cost or price resulting from 
negative instant contract savings, except that for use in 52.248-3, see 
the definition at 52.248-3(b).
* * * * *

PART 49--TERMINATION OF CONTRACTS

    115. Amend section 49.001 as follows:
    a. Add an introductory paragraph;
    b. Remove ``, as used in this part,'' from the definitions 
``Claim'', ``Continued portion of the contract'', ``Other work'', and 
``Settlement proposal'';
    c. Remove the definitions ``Effective date of termination'' and 
``Termination contracting officer''; and
    d. Revise the definition ``Settlement agreement''.
    The added and revised text reads as follows:


49.001  Definitions.

    As used in this part--
* * * * *
    Settlement agreement means a written agreement in the form of a 
contract modification settling all or a severable portion of a 
settlement proposal.
* * * * *

PART 50--EXTRAORDINARY CONTRACTUAL ACTIONS

    116. Amend section 50.001 by adding an introductory paragraph; and 
removing ``, as used in this part,'' from the definitions ``Approving 
authority'' and ``Secretarial level''. The added text reads as follows:


50.001  Definitions.

    As used in this part--
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.101  [Amended]

    117. Amend section 52.101 in the heading of paragraph (a) by 
removing ``Definitions'' and adding ``Definition'' in its place; and by 
removing the definitions ``Alternate'', ``Contract clause'' or 
``clause'', ``Solicitation provision'' or ``provision'', and 
``Substantially as follows'' or ``substantially the same as''.

    118. Amend section 52.202-1 as follows:
    a. Revise the introductory paragraph, the date of the clause, and 
paragraphs (a) and (d) of the clause;
    b. Remove paragraph (f) and redesignate paragraph (e) as (f), and 
add a new paragraph (e);
    c. In the newly designated paragraph (f)(2), remove ``(e)(1)'' and 
add ``(f)(1)'' in its place; and in the newly designated (f)(3) remove 
``(e)(1) or (e)(2)'' and add ``(f)(1) or (f)(2)'' in its place; and
    d. In Alternate I of the clause, remove ``(Apr 1984)'' and add 
``(Mar 2001)'' in its place; and remove ``paragraph (c)'' and add 
``paragraph (g)'' in its place. The revised and new text reads as 
follows:


52.202-1  Definitions.

    As prescribed in section 2.201, insert the following clause:

DEFINITIONS (MAR 2001)

    (a) Agency head or head of the agency means the Secretary 
(Attorney General, Administrator, Governor, Chairperson, or other 
chief official, as appropriate) of the agency, unless otherwise 
indicated, including any deputy or assistant chief official of the 
executive agency.
* * * * *
    (d) Component means any item supplied to the Government as part 
of an end item or of another component, except that for use in 
52.225-9, and 52.225-11 see the definitions in 52.225-9(a) and 
52.225-11(a).
    (e) Contracting Officer means a person with the authority to 
enter into, administer, and/or terminate contracts and make related 
determinations and findings. The term includes certain authorized 
representatives of the Contracting Officer acting within the limits 
of their authority as delegated by the Contracting Officer.
* * * * *

(End of clause)


52.212-3  [Amended]

    119. Amend section 52.212-3 in the heading of the clause by 
removing ``(OCT 2000)'' and adding ``(MAR 2001)'' in its place; and in 
paragraph (a) in the definition ``Women-owned small business concern'' 
by removing from paragraph (1) ``Which'' and ``women or''

[[Page 2135]]

and adding ``That'' and ``women; or'' in their places, respectively.

    120. Amend section 52.214-21 by revising the date of the provision 
and the first sentence in paragraph (a).


52.214-21  Descriptive Literature.

* * * * *

DESCRIPTIVE LITERATURE (MAR 2001)

    (a) Descriptive Literature, as used in this provision, means 
information (e.g., cuts, illustrations, drawings, and brochures) 
that is submitted as part of a bid. * * *
* * * * *

    121. Amend section 52.215-1 by revising the date of the provision; 
and in paragraph (a) of the provision by revising the definition ``In 
writing'' or ``written'' to read as follows:


52.215-1  Instructions to Offerors--Competitive Acquisition.

* * * * *

INSTRUCTIONS TO OFFERORS--COMPETITIVE ACQUISITION (MAR 2001)

    (a) * * *
    In writing, writing, or written means any worded or numbered 
expression that can be read, reproduced, and later communicated, and 
includes electronically transmitted and stored information.

* * * * *


52.219-1  [Amended]

    122. Amend section 52.219-1 in the provision heading by removing 
``(OCT 2000)'' and adding ``(MAR 2001)'' in its place; and in paragraph 
(c) under the definition ``Women-owned small business concern'', by 
removing from paragraph (1) ``Which'' and ``women or'' and adding 
``That'' and ``women; or'' in their places, respectively.

    123. Amend section 52.219-23 by revising the date of the clause; 
and in paragraph (a) of the clause by revising the definition 
``Minority institution'' to read as follows:


52.219-23  Notice of Price Evaluation Adjustment for Small 
Disadvantaged Business Concerns.

* * * * *

NOTICE OF PRICE EVALUATION ADJUSTMENT FOR SMALL DISADVANTAGED BUSINESS 
CONCERNS (MAR 2001)

    (a) * * *
    Minority institution means an institution of higher education 
meeting the requirements of Section 1046(3) of the Higher Education 
Act of 1965 (20 U.S.C. 1067k, including a Hispanic-serving 
institution of higher education, as defined in Section 316(b)(1) of 
the Act (20 U.S.C. 1101a)).
* * * * *


52.223-6  [Amended]

    124.-125. Amend section 52.223-6 in the clause heading by removing 
``(JAN 1997)'' and adding ``(MAR 2001)'' in its place; and in the 
definition ``drug-free workplace'' by removing ``at which'' and adding 
``where'' in its place.

    126. Amend section 52.223-11 by revising the date of the clause and 
paragraph (a) of the clause to read as follows:


52.223-11  Ozone-Depleting Substances.

* * * * *

OZONE-DEPLETING SUBSTANCES (MAR 2001)

    (a) Definition. Ozone-depleting substance, as used in this 
clause, means any substance the Environmental Protection Agency 
designates in 40 CFR part 82 as--
    (1) Class I, including, but not limited to, chlorofluorocarbons, 
halons, carbon tetrachloride, and methyl chloroform; or
    (2) Class II, including, but not limited to, 
hydrochlorofluorocarbons.
* * * * *

    127. Revise section 52.226-2 to read as follows:


52.226-2  Historically Black College or University and Minority 
Institution Representation.

    As prescribed in 26.304, insert the following provision:

HISTORICALLY BLACK COLLEGE OR UNIVERSITY AND MINORITY INSTITUTION 
REPRESENTATION (MAR 2001)

    (a) Definitions. As used in this provision--
    Historically black college or university means an institution 
determined by the Secretary of Education to meet the requirements of 
34 CFR 608.2. For the Department of Defense, the National 
Aeronautics and Space Administration, and the Coast Guard, the term 
also includes any nonprofit research institution that was an 
integral part of such a college or university before November 14, 
1986.
    Minority institution means an institution of higher education 
meeting the requirements of Section 1046(3) of the Higher Education 
Act of 1965 (20 U.S.C. 1067k, including a Hispanic-serving 
institution of higher education, as defined in Section 316(b)(1) of 
the Act (20 U.S.C. 1101a)).
    (b) Representation. The offeror represents that it--
    [ ] is [ ] is not a historically black college or university;
    [ ] is [ ] is not a minority institution.

(End of provision)


52.232-25, 52.232-26, and 52.232-27  [Amended]

    128. Amend sections 52.232-25, 52.232-26, and 52.232-27 in the 
clause headings by removing ``(JUN 1997)'' and adding ``(MAR 2001)'' in 
its place; and in the third sentence of the undesignated introductory 
paragraph by removing ``section 32.902'' and adding ``sections 2.101 
and 32.902'' in its place.

    129. Amend section 52.242-3 in the clause heading by removing 
``(OCT 1995)'' and adding ``(MAR 2001)'' in its place; and by revising 
paragraph (c) to read as follows:


52.242-3  Penalties for Unallowable Costs.

* * * * *
    (c) The Contractor shall not include in any proposal any cost that 
is unallowable, as defined in Subpart 2.1 of the FAR, or an executive 
agency supplement to the FAR.
* * * * *

    130. Amend section 52.246-3 as follows:
    a. In the clause heading, remove ``(APR 1984)'' and add ``(MAR 
2001)'' in its place;
    b. In the heading of paragraph (a), add ``As used in this clause--
'' after the word ``Definitions'';
    c. In the definition ``Contractor's managerial personnel,'' remove 
``, as used in this clause,'', and in paragraph (2) remove ``at which'' 
and add ``where'' in its place; and
    d. In the definition ``Supplies,'' remove ``, as used in this 
clause,''.

    131. Amend section 52.246-6 as follows:
    a. In the clause heading, remove ``(Jan 1986)'' and add ``(Mar 
2001)'' in its place;
    b. In the heading of paragraph (a), add ``As used in this clause--
'' after the word ``Definitions.'';
    c. In the definition ``Contractor's managerial personnel,'' remove 
``, as used in this clause,'', and in paragraph (2) remove ``at which'' 
and add ``where'' in its place; and
    d. In the definition ``Materials,'' remove ``, as used in this 
clause,''.

    132. Amend section 52.246-8 as follows:
    a. In the clause heading, remove ``(Apr 1984)'' and add ``(Mar 
2001)'' in its place;
    b. In the heading of paragraph (a), add ``As used in this clause--
'' after the word ``Definitions.'';
    c. In the definition ``Contractor's managerial personnel,'' remove 
``, as used in this clause,'', and in paragraph (2) remove ``at which'' 
and add ``where'' in its place; and
    d. In the definition ``Work,'' remove ``, as used in this 
clause,''.

    133. Amend section 52.246-17 by revising the introductory 
paragraph, the date of the clause, and paragraph (a) of the clause to 
read as follows:

[[Page 2136]]

52.246-17  Warranty of Supplies of a Noncomplex Nature.

    As prescribed in 46.710(a)(1), insert a clause substantially as 
follows:

WARRANTY OF SUPPLIES OF A NONCOMPLEX NATURE (MAR 2001)

    (a) Definitions. As used in this clause--
    Acceptance means the act of an authorized representative of the 
Government by which the Government assumes for itself, or as an 
agent of another, ownership of existing supplies, or approves 
specific services as partial or complete performance of the 
contract.
    Supplies means the end items furnished by the Contractor and 
related services required under this contract. The word does not 
include ``data.''
* * * * *

    134. Amend section 52.246-18 by revising the introductory 
paragraph, the date of the clause, and paragraph (a) of the clause to 
read as follows:


52.246-18  Warranty of Supplies of a Complex Nature.

    As prescribed in 46.710(b)(1), insert a clause substantially as 
follows:

WARRANTY OF SUPPLIES OF A COMPLEX NATURE (MAR 2001)

    (a) Definitions. As used in this clause--
    Acceptance means the act of an authorized representative of the 
Government by which the Government assumes for itself, or as an 
agent of another, ownership of existing and identified supplies, or 
approves specific services rendered, as partial or complete 
performance of the contract.
    Supplies means the end items furnished by the Contractor and 
related services required under this contract. The word does not 
include ``data.''
* * * * *

    135. Amend section 52.246-19 by revising the introductory 
paragraph, the date of the clause, and paragraph (a) of the clause to 
read as follows:


52.246-19  Warranty of Systems and Equipment under Performance 
Specifications or Design Criteria.

    As prescribed in 46.710(c)(1), the contracting officer may insert a 
clause substantially as follows:

WARRANTY OF SYSTEMS AND EQUIPMENT UNDER PERFORMANCE SPECIFICATIONS OR 
DESIGN CRITERIA (MAR 2001)

    (a) Definitions. As used in this clause--
    Acceptance means the act of an authorized representative of the 
Government by which the Government assumes for itself, or as an 
agent of another, ownership of existing and identified supplies, or 
approves specific services rendered, as partial or complete 
performance of the contract.
    Defect means any condition or characteristic in any supplies or 
services furnished by the Contractor under the contract that is not 
in compliance with the requirements of the contract.
    Supplies means the end items furnished by the Contractor and 
related services required under this contract. Except when this 
contract includes the clause entitled Warranty of Data, supplies 
also mean ``data.''
* * * * *

    136. Amend section 52.246-20 by revising the introductory paragraph 
and the date of the clause; and in paragraph (a) of the clause by 
removing the paragraph heading ``Definitions'' and adding 
``Definition'' in its place; and by removing the definition 
``Correction''. The revised text reads as follows:


52.246-20  Warranty of Services.

    As prescribed in 46.710(d), insert a clause substantially as 
follows:

WARRANTY OF SERVICES (MAR 2001)

* * * * *

[FR Doc. 01-11 Filed 1-9-01; 8:45 am]
BILLING CODE 6820-EP-P