[Federal Register Volume 74, Number 15 (Monday, January 26, 2009)]
[Proposed Rules]
[Pages 4595-4632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-1096]



[[Page 4595]]

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Part IV





General Services Administration





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48 CFR Part 538



General Services Acquisition Regulation; GSAR Case 2006-G507; Rewrite 
of GSAR Part 538, Federal Supply Schedule Contracting; Proposed Rule

Federal Register / Vol. 74, No. 15 / Monday, January 26, 2009 / 
Proposed Rules

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GENERAL SERVICES ADMINISTRATION

48 CFR Part 538

[GSAR Case 2006-G507; Docket 2009-0013; Sequence 1]
RIN 3090-AI77


General Services Acquisition Regulation; GSAR Case 2006-G507; 
Rewrite of GSAR Part 538, Federal Supply Schedule Contracting

AGENCY: General Services Administration (GSA), Office of the Chief 
Acquisition Officer.

ACTION: Proposed rule.

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SUMMARY: The GSA is proposing to amend the General Services 
Administration Acquisition Regulation (GSAR) to revise sections of the 
GSAR that provide requirements for Federal Supply Schedule Contracting 
actions.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before March 27, 2009 to be considered in 
the formulation of a final rule.

ADDRESSES: Submit comments identified by GSAR Case 2006-G507 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov.
    Submit comments via the Federal eRulemaking portal by inputting 
``GSAR Case 2006-G507'' under the heading ``Comment or Submission''. 
Select the link ``Send a Comment or Submission'' that corresponds with 
GSAR Case 2006-G507. Follow the instructions provided to complete the 
``Public Comment and Submission Form''. Please include your name, 
company name (if any), and ``GSAR Case 2006-G507'' on your attached 
document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (VPR), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite GSAR Case 2006-
G507 in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Warren Blankenship at (202) 501-1900, or by e-mail at 
[email protected]. For information pertaining to the status or 
publication schedules, contact the Regulatory Secretariat (VPR), Room 
4041, GS Building, Washington, DC 20405, (202) 501-4755. Please cite 
GSAR Case 2006-G507.

SUPPLEMENTARY INFORMATION: 

A. Background

    The General Services Administration is amending the General 
Services Administration Acquisition Regulation (GSAR) to update the 
text addressing GSAR Part 538, Federal Supply Schedule Contracting: 
Subpart 538.1, Definitions; Subpart 538.4, Administrative Matters; 
Subpart 538.7, Acquisition Planning; Subpart 538.9, Contractor 
Qualifications; Subpart 538.12, Acquisition of Commercial Items--FSS; 
Subpart 538.15, Negotiation and Award of Contracts; Subpart 538.17, 
Administration of Evergreen Contracts; Subpart 538.19, FSS and Small 
Business Programs; Subpart 538.25, Requirements for Foreign Entities; 
Subpart 538.42, Contract Administration and Subpart 538.43, Contract 
Modifications. This rule is a result of the GSA Acquisition Manual 
(GSAM) rewrite initiative undertaken by GSA to revise the GSAM to 
maintain consistency with the Federal Acquisition Regulation (FAR) and 
to implement streamlined and innovative acquisition procedures that 
contractors, offerors, and GSA contracting personnel can use when 
entering into and administering contractual relationships. The GSAM 
incorporates the GSAR as well as internal agency acquisition policy.
    The GSA is in the process of rewriting each part of the GSAR and 
GSAM, and as each GSAR part is rewritten, will publish it in the 
Federal Register.
    This proposed rule covers the GSAR portion of Part 538. The 
information in Subpart 538.2 is being retained; however, the various 
sections have been redistributed to more appropriate subparts within 
the text. Subpart 538.9, Contractor Qualifications, is being added to 
define the roles and responsibilities of ``Contractor Partnering 
Arrangements (CPAs)'' for contractors. Subpart 538.12, Acquisition of 
Commercial Items, has been added to outline solicitation provisions and 
clauses. This subpart was formerly 538.273--Contract clauses, but was 
moved to 538.1203 so as to align with the FAR. Aside from individual 
prescriptions, GSA has also included an overarching prescription that 
directs the contracting officer to insert appropriate provisions and 
clauses, when applicable. Additionally, 96 provisions/clauses are now 
proposed for inclusion. Some of the provisions/clauses are new, some 
are being retained, and others are being relocated from other GSAM 
parts.
    Subpart 538.15, Negotiation and Award of Contracts, has been added 
to provide clarity to FSS contracting officers regarding contract 
evaluation and award. The current section 538.270, Evaluation of 
multiple award schedule (MAS) offers, has been relocated to Subpart 
538.15. It contains minor revisions within the text to clarify the 
contracting officer's role as well as a revised title and section, 
538.1504, Evaluation of commercial pricing practices. Also, 538.272, 
MAS price reductions, has been revised for clarity. More specifically, 
the term ``eligible ordering activity'' has been changed to 
``Government'' to bring clarity to the relationship between the 
Government and the contractor, and to ensure that the contractor 
understands the importance of maintaining this correlation of price 
relationship for the duration of the contract. The revision can be 
found at section 538.1508.
    Subpart 538.25, Requirements for Foreign Entities, is added to 
advise contractors to submit commercial price lists in English and to 
allow for payments in local currency. Subpart 538.42, Contract 
Administration, is being added to advise the contractor to abide by the 
terms and conditions of the Industrial Funding Fee (IFF) and Sales 
Reporting Requirements when entering into ``Contractor Partnering 
Arrangements (CPAs),'' and to explain the process and procedures that 
should be followed when cancelling a contract at the contractor's 
request. Subpart 538.43, Contract Modifications, is added to provide 
guidance to the contractor when initiating a modification request to 
the Government.
    There were 36 public comments received in response to the Advanced 
Notice of Proposed Rulemaking.
    The first commenter recommended suggestions in regard to GSAR 
552.238-75, Price Reductions (May 2004) clause, the Commercial Sales 
Practices Format (CSPF) in GSAR 515.408, and figure 515.4, Instructions 
that accompany the CSPF. First, the commenter indicated that the 
failure to identify the customer (or category of customers) that formed 
the basis of award in the Price Reductions clause needs to be 
corrected.
    Response: Though the rewrite team reviewed this comment as 
substantive, it was unable to be addressed at this time. The team will 
confer with the Multiple Award Schedule Advisory Panel for possible 
recommendations. Second, the commenter indicated that more consistent 
parameters were needed for the ``Commercial Sales Practices'' 
disclosure section. GSAM Part 505 includes a GSAM Form 3617, Record of 
Authorization of Access to

[[Page 4597]]

Proprietary or Source Selection Information, which the GSA contracting 
community will use to ensure that proprietary data is not released.
    The second commenter suggested that GSA be proactive in using GSAM 
Part 538 to address unresolved issues regarding GSA Schedule 
contracting. The GSA contractors have requested guidance and consistent 
policy on matters such as time and material task orders, and the extent 
to which G&A can be added to travel. Though some of these issues are 
addressed generally in the FAR, specific questions regarding 
application to Schedules contracting have remained unanswered, leading 
to inconsistent applications across the Schedules program.
    Response: The team's analysis of this comment is that it is outside 
the scope of this part. Currently, the Schedule's acquisition community 
uses FAR 52.232-7, Payments Under Time and Material, and FAR 31.205-46, 
Travel Costs, to address time and material task orders. However, 
specific guidance for contracting officers for time and material task 
orders is under internal review.
    The third commenter suggested that the GSAR should include coverage 
on Governmentwide Acquisition Contracts (GWACs) contracting and the use 
of GSA Assisted Service. Presently, the GSAR covers neither of these 
topics. Such areas of discussion, according to the commenter, should 
include criteria for establishing GWAC and/or assisted acquisition 
services, pricing objectives, and standard clauses. The commenter 
stated that adding GWAC coverage would enable the government to 
implement the best practices of individual offices across the entire 
program, afford GSA contractors an opportunity to streamline their 
internal corporate systems and processes, and result in better service 
and more cost efficient systems that may ultimately reflect in the 
Government's prices.
    Response: The Team's analysis of this comment is that it is outside 
the scope of this part. The team has referred this comment to the GSAM 
Part 516, Types of Contracts, team.
    The fourth commenter suggested that GSA resolve how the requirement 
to annually update the Central Contractor Registration (CCR) affects 
the position that small business size status is as of the time the 
offer is submitted. This problem stems from the number of corporate 
acquisitions and restructurings that continue to take place in the 
commercial marketplace. The commenter recommended that GSA rationalize 
the rules of FAR 42.12, GSAR 542.12 and the commercial item clause at 
FAR 52.212-4(p).
    Response: The team's analysis concludes that this comment is 
outside the scope of this part. This is a comment that would have 
Government-wide application.
    The fifth commenter suggested that the GSAR prescribe language to 
insert into GSA Schedule Price Lists on the topic of Size Status and 
the CCR. The language would inform agencies that, notwithstanding data 
in CCR, for purposes of ordering against the Schedule, a contractor is 
designated as small in size for the entire 5-year period of the 
Schedule contract. Schedule contractors are required to recertify size 
status at the time of renewal. Additionally, the commenter suggests 
that GSAR resolve how the requirement to annually update CCR affects 
the position that small business size status is currently determined at 
the time the offer is submitted.
    Response: The team's analysis concluded that guidance at FAR 
52.219-28, Post-Award Small Business Program Rerepresentation, 
appropriately addresses and provides guidance to the acquisition and 
contractor communities to ensure proper implementation of size 
considerations at various times during the contract. From time of 
submittal to award, offerors are required to maintain information in 
CCR as current and accurate.
    The sixth commenter suggested that GSA consider adding a section 
describing the purpose and objectives of Schedule contracting. Such a 
section would provide context and focus that could help improve 
consistency in the myriad of decisions that contracting officers have 
to make daily. For example, some contracting officers are attempting to 
compare prices offered by one company to prices of another for similar, 
but not identical, services and products. This process was found to be 
highly objectionable.
    Response: The team's analysis concludes that the rewrite of GSAM 
Part 538 will adequately provide contracting officers consistent 
guidance and policy.
    The seventh commenter suggested that GSA clarify the MAS pricing 
policy by deleting the term ``most favored customer (MFC)'' from this 
section of the GSAR.
    Response: The team does not concur with this comment because the 
convention of the term ``most favored customer'' still remains a viable 
practice across the FSS program.
    The eighth commenter suggested that the GSAR more specifically 
state the circumstances that warrant the Government getting a lower 
discount than commercial customers.
    Response: The team does not concur with this comment because 
section 538.1504, Evaluation of commercial pricing practices (formerly 
538.270), clearly outlines the criteria for the Government to seek a 
lower discount than commercial customers.
    The ninth commenter suggested that GSAR be revised to reflect that 
many MAS contracts are no longer awarded as a discount from catalog. 
This shift has occurred because more services have been introduced into 
the program.
    Response: The team concurs with this comment and has created a 
Commercial Sales Practices Format (CSP-2), GSAR 538.1203(c)(42) for 
``Professional Services'' to reflect contracts awarded for services.
    The tenth commenter suggested that the GSAR should limit (or give 
better guidance) as to the number of commercial customers that can be 
the basis of award.
    Response: The team does not concur with this comment. Current 
guidance as outlined in section 538.1504 allows the contracting officer 
the flexibility to analyze numerous factors to establish the customer 
for the basis of award.
    The 11th commenter suggested that GSA eliminate the Price 
Reductions Clause (552.238-75).
    Response: The team does not concur with this comment. In keeping 
with the philosophy of the FSS Program, this clause should remain. The 
team will await the results of the Multiple Award Schedule Advisory 
Panel's analysis and recommendations and will consider this when 
assessing the clause's validity within the program.
    The 12th commenter suggested that the GSAR should provide specific 
guidelines on the Schedule renewal process.
    Response: The team concurs with this comment and has added verbiage 
at GSAR 538.4202, Administration of Evergreen Contracts.
    The 13th commenter suggested that exceptions to the Price Reduction 
Clause be considered for situations where the Government is not 
negotiating discounts from a commercial price list; also, the commenter 
suggested that the Government give consideration to using price 
analysis and price acceptance from a vendor's average selling price.
    Response: The team partially concurs with this comment and has 
created a CSP-2 Format, GSAR 538.1203(c)(42) for ``Professional 
Services'' to reflect contracts awarded for services without a 
commercial price list. Also, the team will confer with the Multiple 
Award

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Schedule Advisory Panel for possible recommendations in this area.
    The 14th commenter recommended providing guidance on establishing 
relationships with dealers/distributors/ resellers under the FSS 
Program in terms of tracking customer selections.
    Response: The team does not concur with this comment. The Price 
Reductions Clause encompasses a mechanism for tracking customers in 
dealer/distributor/reseller situations. This can be accomplished under 
``category of customers.'' Further, the team will confer with the 
Multiple Award Schedule Advisory Panel for possible recommendations in 
this area.
    The 15th commenter suggested the addition of guidance on sales 
volume for vendor consideration under the FSS Program--Contract Award 
Sales Criteria Clause.
    Response: The team partially concurs with this comment. First, the 
team revised the Commercial Sales Practices Format (CSP-1) to bring 
clarity to the ``Instructions'' section, explaining that the 
contracting officer has the discretion to change offeror estimated 
sales to conform with the level of sales expectancy. The business 
decision will be based upon the contracting officer's analysis of the 
offeror's submission and a realistic evaluation of expected sales.
    The 16th commenter suggested adding guidance on how to handle 
teaming arrangements.
    Response: The team concurs with this comment and has added guidance 
on Teaming Arrangements, which will be entitled ``Contractor Partnering 
Arrangements (CPAs),'' and the team added guidance on the application 
of the CPAs to the Federal Supply Schedule Program.
    The 17th commenter suggested that FAR 52.212-4(s), Order of 
Precedence, be revised to resolve any inconsistencies discovered in the 
solicitation or resulting contract.
    Response: The team reviewed the comment and does not concur. This 
comment is deemed outside the scope of this part and should be resolved 
at the FAR level.
    The 18th commenter suggested adding the following verbiage to 
update GSAR 552.238-75, Price Reductions: ``The identified customer or 
category of customers may, but is not required to be, the Offeror's 
most-favored customer.'' The intent here is to clarify the 
misconception as to whether the tracking customer is required to be the 
MFC for a particular product or group of products or service.
    Response: The team does not concur with this comment, and feels 
that the addition of this verbiage would convolute the intent of the 
current Price Reductions Clause. Moreover, it would diminish the 
contracting officer's authority to establish a viable price/discount 
relationship with the offeror.
    The 19th commenter recommended that GSAR 552.238-75(a) be revised 
to be consistent with GSAR 538.272 to make clear that a change in the 
price/discount relationship between the eligible ordering activity and 
the tracking customer(s) does not trigger a price reduction under the 
clause unless that change also ``results in a less advantageous 
relationship'' for the Government.
    Response: The team does not concur with this comment and feels that 
the intent is clearly defined in the current Price Reduction Clause. 
Additionally, GSAR 538.272 has been proposed for deletion.
    The 20th commenter suggested deleting the verbiage ``with the same 
effective date and * * *'' from the Price Reductions Clause. The 
commenter suggested that this language be deleted because it is not 
feasible or realistic to require the contractor to make a revised price 
available to the Government with the ``same effective date'' as for the 
tracking customer.
    Response: The team reviewed the comment and does not concur. GSAR 
552.238-75 delineates as to the time period during which an FSS price 
reduction is required to be effective. It states that ``the contractor 
shall offer the price reduction to the Government with the same 
effective date, and for the same time period, as extended to the 
commercial customer (or category of customers).'' Thus, no change is 
warranted.
    The 21st commenter suggested that the GSAR be clarified to require 
that the parties express the relationship in the basis of award as a 
specific percentage or ratio, or any other objective measurement.
    Response: The team concurs with this comment and has added new 
verbiage to GSAR 538.1506-2, Price Negotiation Memorandum, which 
clarifies the relationship of the parties in terms of a percentage or 
ratio.
    The 22nd commenter stated that GSA sometimes requests commercial 
sales practices information from manufacturers of GSA resellers 
regardless of whether the reseller has significant sales to the general 
public, in an attempt to ascertain whether the reseller's proposed 
prices are fair and reasonable. Further, the commenter stated that, if 
the reseller has significant sales, the need for its manufacturer's 
sales information is negated. In this case, the commenter suggested 
that such requests for pricing information should be limited to pricing 
or other than cost and pricing information as provided by the reseller, 
who already has an existing competitive commercial sales practice. In 
the event that the reseller does not have significant commercial sales 
or otherwise lacks relevant pricing information, GSA may request other 
information from the reseller, such as the reseller's cost basis from 
the manufacturer, pricing information available under other GSA 
Schedules, or sales by other resellers of the manufacturer's products. 
Requiring pricing information from manufacturers is unnecessary and a 
source of considerable confusion within GSA and industry.
    Response: The team concurs with the commenter's scenarios in regard 
to resellers as offerors under the Federal Supply Schedule Program. If 
a reseller has significant sales to the general public for products 
and/or services being proposed by manufacturers which are represented 
by the resellers they represent, then they should follow the 
instructions provided in the CSP-1 with an established catalog price 
list. For resellers that do not have significant sales to the general 
public, the manufacturer's data shall be submitted in connection with 
the offer as documentation to support the contracting officer's 
determination of price reasonableness.
    The 23rd commenter suggests that GSA consider changing the way it 
administers the updates to the Federal Supply Schedules. Furthermore, 
the commenter suggests that the process is administratively burdensome 
for Schedule contractors and GSA contracting officers alike, and can 
create considerable confusion concerning which set of terms applies to 
a particular task or delivery order.
    Response: The team empathizes with the commenter; however, the FSS 
Program is constantly evolving. As new products and services are 
introduced as well as changes to any terms and conditions, the 
Government reserves the right to provide state-of-the-art technology to 
the end user. Therefore, spontaneous ``refreshment'' of solicitation 
and/or contract terms and conditions are inevitable and part of the 
acquisition process.
    The 24th commenter focused on section C.32 of the contract and GSAR 
552.246-73 (WARRANTY--MULTIPLE AWARD SCHEDULE (Mar 2000) (Alternate I--
May 2003)) as outlined in the Schedule 70 Solicitation. The commenter 
suggested that FAR 52.246-4 and FAR 52.246-6 are redundant with 
paragraph (a) of FAR 52.212-4.

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    Response: The team concurs with the commenter that the 
aforementioned clauses conflict, and that they should not be used in 
Schedule acquisitions. Adequate coverage can be found in FAR 52.212-4 
(Alternate I).
    Second, the commenter suggested that GSAR 552.246-73, which invites 
contractors to offer their commercial warranties to address post-
acceptance remedies, conflicts with the final sentence of paragraph (a) 
of 52.212-4.
    Response: The team concurs with this comment and believes that 
Schedule acquisitions should follow the procedures as outlined in FAR 
Part 12, Commercial Acquisitions, and GSAM Part 512, Acquisition of 
Commercial Items.
    Third, the commenter suggested that FAR 52.232-23 incorporated by 
reference and GSAR 552.232-23 should be removed because they conflict 
with FAR 52.212-4(b).
    Response: The team concurs with this comment because commercial 
acquisitions should use commercial terms and conditions as outlined in 
FAR Part 12, Commercial Acquisitions, and GSAM Part 512--Acquisition of 
Commercial Items.
    Fourth, this commenter focused on the ``Changes Clause'' at FAR 
52.212-4(c). Paragraph (c) of this clause does not make clear whether 
changes to the contract may be agreed to by an ordering activity and 
the contractor for purposes of a particular order.
    Response: The team does not concur with this comment. Subparagraph 
(c) indicates that all changes to the contract must be made only by 
written agreement between the parties. Commercial practices should be 
considered for incorporation into the solicitation/contract in 
accordance with FAR 12.213. If so indicated by market research that the 
aforementioned is appropriate for the acquisition of the particular 
item, an ordering activity may add additional terms and conditions to 
the order as long as the terms and conditions do not conflict with the 
base contract, as long as it is not precluded by law or executive 
order. Therefore, this requirement flows down to the task order level.
    The 25th commenter is concerned about excusable delays, more 
specifically, GSA's change to paragraph (f) of FAR 52.212-4 by 
substituting the words ``ordering activity'' for ``Government'' in the 
standard FAR version. Although this change is appropriate in other 
areas of the clause, it is not appropriate to describe force majeure 
events. Typically, a force majeure clause recognizes that a superseding 
event could arise from any part of the Government rather than solely 
from the ordering activity. Further, the commenter stated that the 
clause might be read to create automatic liability for default of the 
entire contract for a nonperformance event with a single order.
    Response: After careful review of this comment, the team was unable 
to clearly ascertain the rationale. It appears that GSA changed the 
text as mentioned above; however, without supporting documentation, the 
team could not provide a substantive response. ``The standard FAR text 
of paragraph (f) of 52.212-4 contains the word ``Government.'' Based on 
the comment, it appears that GSA deviated from this verbiage and 
substituted ``ordering activity.'' The team's interpretation of this 
comment is that the change was made to accommodate cooperative and 
recovery purchasing. The rationale is that a force majeure event can 
only be determined at the order level and would only apply to that 
order. It does not apply to the entire Schedule contract.
    The 26th commenter was concerned about contract invoicing. The 
commenter suggested that the unlabelled paragraph after (g)(1), but 
before (g)(2), of GSA's deviation to FAR 52.212-4 addresses electronic 
funds transfer. FAR 52.232-33 (PAYMENT BY ELECTRONIC FUNDS TRANSFER--
CENTRAL CONTRACTOR REGISTRATION (Oct 2003)) should be integrated within 
this portion of the clause to simplify the contract. The commenter 
recommended deleting FAR 52.232-33 and changing the relevant section of 
FAR 52.212-4 to more assertively and clearly incorporate FAR 52.232-33, 
unless an ordering activity indicates otherwise. Additionally, 
paragraph (d) of GSAR 552.232-74 (INVOICE PAYMENTS (Sep 1999)) changes 
the requirement in FAR 52.212-4(g)(1) from having to provide three 
copies of the invoice to having to provide only one original invoice.
    Response: The team concurs with the comment and agrees that FAR 
52.232-33 should not be included in MAS solicitations because FAR 
52.212-4 contains the appropriate invoicing information. The issue of 
the number of copies of invoices required is outside the scope of this 
part.
    The 27th commenter was concerned about risk of loss. The commenter 
recommends that GSA consider whether the various delivery and packaging 
requirements can be simplified to clearly require delivery and 
packaging that comports with the contractor's standard commercial 
practices.
    Response: The team concurs that the delivery requirements should be 
simplified. As such, the team determined that GSAR 552.211-75 and GSAR 
552.211-77 are not applicable under the MAS. However, the team believes 
that the MAS should include GSAR 552.211-78, which was deleted from 
GSAM Part 511 and added to this part.
    The 28th commenter stated that FAR clauses 52.229-1 (State and 
Local Taxes (Apr 1984) (Deviation--May 2003)), 52.229-3 (Federal, 
State, and Local Taxes (Apr 2003) (Deviation--May 2003)), 52.229-5 
(Taxes--Contracts Performed in U.S. Possessions or Puerto Rico (Apr 
1984)), and 52.229-71 (Federal Excise Tax--DC Government (Sep 1999)) 
appear to be in conflict.
    Response: The team, believes, however that a careful reading of the 
language makes clear GSA's apparent intent to exclude all applicable 
Federal, State, and local taxes and duties, except after imposed or 
relieved Federal taxes. Additionally, FAR 52.229-71, which is 
incorporated into the contract in section C.2 of the contract, is not 
reflected in current regulations. The team concurs that FAR 52.212-4(k) 
should not be modified. However, FAR 52.212-5 still remains a viable 
clause in the FSS program. Additionally, FAR 52.229-71 was cited 
incorrectly and should be noted as GSAR 552.229-71 (Federal Excise 
Tax--DC Government). This clause will remain as an incorporated by 
reference clause under GSAR 552.212-71.
    The 29th commenter suggested that GSA establish a central location 
for all contract clauses that it includes in FSS and GWAC contracts. 
The commenter's concern is that there is no single publication, Web 
site, or other resource where all of the different types of contract 
clauses can be reviewed. Publishing all of them in a central location, 
according to the commenter, will make the contract formation process 
more transparent and administratively less burdensome.
    Response: The team concurs with this comment. The GSA's rewrite of 
the GSAM will accomplish this feat by relocating all of the FSS's 
clauses and provisions from its current clause manual to GSAM Part 538. 
This is inclusive of other FSS clauses and provisions that are 
currently found in other GSAM parts. Consequently, this will bring 
consistency to the program, providing a one-stop approach to FSS policy 
and guidance.
    The 30th commenter suggested revisions to the GSAR to make it more 
consistent with the FAR and to eliminate inconsistencies and 
redundancies between the FAR and GSAR. Specifically, the commenter

[[Page 4600]]

focused on FAR clauses 52.246-4 (Inspection of Services--Fixed Price 
(Aug 1996) (Deviation--May 2003)) and 52.246-6 (Inspection-Time and 
Material and Labor-Hour (May 2001) (Deviation--May 2003)) as well as 
GSAR clause 552.246-73 (Warranty--Multiple Award Schedule (Mar 2000) 
(Alternate I--May 2003)). The commenter noted that the aforementioned 
clauses conflict and are redundant with paragraph (a) of FAR 52.212-4. 
Moreover, GSAR 552.246-73, which invites contractors to offer their 
commercial warranties to address post-acceptance remedies, according to 
the commenter, conflicts with the final sentence of paragraph (a) of 
FAR 52.212-4. The commenter suggested that the clauses be reconciled or 
deleted to the extent that they are redundant. As such, paragraph (a) 
could be limited in application to products under particular Special 
Identification Numbers (SINs)--as opposed to services--to easily 
alleviate the patent conflict between the FAR clauses as to the 
inspection and acceptance of services. Also, the final sentence of 
paragraph (a) should be changed to reference the post acceptance rights 
contemplated under the contractor's commercial warranty pursuant to 
GSAR 552.246-73. A suggested change might read as follows: ``The 
ordering activity must exercise any post acceptance rights pursuant to 
contractor's commercial warranty incorporated into this contract under 
C.32. If no such commercial warranty is incorporated, then the ordering 
activity must exercise its post acceptance rights (1) within a 
reasonable time after the defect was discovered or should have been 
discovered; and (2) before any substantial change occurs in the 
condition of the item, unless the change is due to the defect in the 
item.'' Alternatively, the commenter believes that the final sentence 
of paragraph (a) should be deleted altogether as the post acceptance 
rights to which it refers are unclear.
    Response: The team partially concurs with this comment. An attempt 
to revise paragraph (a) of FAR 52.212-4 would require a FAR Case and 
consensus from the Department of Defense (DoD) and Civilian agencies. 
This is outside the scope of this part. However, GSAR 552.246-73 is 
sufficient in supplementing the FAR because it provides policy 
regarding placement of the burden of defective items on the contractor 
for a specific timeframe (90 days) as opposed to FAR 52.212-4(a) which 
states ``within a reasonable time.'' This is inclusive of 
transportation to and from site as well as onsite repair.
    The 31st commenter raised a concern about GSAR 552.232-23 
(Assignment of Claims (Sep 1999)) conflicting with and supplementing 
paragraph (b) of FAR 52.232-23. The GSAR at 552.232-23 incorporates FAR 
52.232-23, but whereas FAR 52.232-23 permits assignment of any amount 
under the contract to a bank, trust company or financial institution, 
GSAR 552.232-23 changes the first paragraph of FAR 52.232-23 to permit 
assignment of amounts due under any order of $1000 or more. Although 
the GSAR clause refers to the indefinite delivery/indefinite quantity 
nature of the GSA Schedule Contract as a rationale, it is unclear if 
the $1000 limitation remains relevant today; the vast majority of 
orders are well above $1000. The change in nomenclature between the 
contract and order is appropriate and provides the parties more 
flexibility than a reference to the entire GSA Schedule Contract might. 
The recommendation here is that section C.21 of the contract should be 
deleted and paragraph (b) of FAR 52.232-23 should be changed to conform 
to the order concept. The GSAR clause 552.232-23, including the $1000 
limitation, should be eliminated. Thus, FAR paragraph 52.232-23(b) 
might read: ``The Contractor or its assignee may assign its rights to 
receive payment due as a result of performance of this contract, or any 
order hereunder, to a bank, trust company, or other financing 
institution, including any Federal lending agency in accordance with 
the Assignment of Claims Act (31 U.S.C. 3727).'' Nevertheless, when a 
third party makes payment (e.g., use of a credit card), the contractor 
may not assign its rights to receive payment under this contract.
    Response: The team does not concur with this comment. The $1000 
limitation would not apply to most orders, but still remains relevant 
when purchasing office supplies under the program. Further, the 
recommendation that section C.21 of the contract should be deleted and 
that paragraph (b) of FAR 52.232-23 be changed to conform to the order 
concept is outside the scope of this part. This would require a 
collaborative decision between DoD and GSA at the FAR level.
    The 32nd commenter noted that, on the topic of Termination for the 
Ordering Activity's Convenience, the clause is ambiguous due to the use 
of the word ``hereof.'' The commenter is concerned that it could be 
read to suggest that the ordering activity has the ability to terminate 
the underlying GSA Schedule contract, rather than merely the order. 
Thus, the commenter's recommendation is that the first sentence should 
be clarified, consistent with GSA's intent, to refer to an ``order'' 
rather than the GSA Schedule Contract, by changing the terms ``hereof'' 
to ``thereof'' and ``hereunder'' to ``thereunder.''
    Response: The team partially concurs with this comment. Though the 
change in verbiage would adequately distinguish ``contract'' from 
``order,'' this change is outside the scope of this part. It would 
require a collaborative decision between DoD and GSA at the FAR level.
    The 33rd commenter focused on FAR 52.212-4(m) addressing the topic 
of Termination for cause, particularly GSAR clause section C.34 
contract Default (I-FSS-249-B) (May 2000). The commenter is concerned 
that the use of the word ``hereof'' in this clause is somewhat 
ambiguous with regard to the ordering activity's ability to terminate 
the underlying GSA Schedule Contract, rather than merely the order. The 
commenter's suggestion is that the first sentence should be clarified 
so as to be consistent with GSA's intent by referring to an ``order'' 
rather than the GSA Schedule Contract and by changing the word 
``hereof'' to ``thereof.''
    Response: The team partially concurs with this comment. Though the 
change in verbiage would adequately distinguish ``contract'' from 
``order,'' this change is outside the scope of this part. It would 
require a collaborative decision between DoD and GSA at the FAR level.
    The 34th commenter focused on FAR 52.212-4(p) addressing Limitation 
of Liability. Of particular note was GSA's deviation to paragraph (p) 
which does not permit an exclusion of consequential damages for implied 
warranty claims. As the commenter notes, the FAR version of this clause 
does not include the language ``or implied warranty'' in the first 
sentence of the clause, thereby excluding consequential damages from 
implied warranty claims.
    Further, the commenter believes that there does not seem to be any 
reason for GSA's different approach, particularly because most 
companies exclude all implied warranties in their commercial warranty 
provisions--exclusions that GSA presumably accepts under GSAR 552.246-
73, which, as explained above, invited the contractor to provide its 
commercial warranty. The commenter's recommendation is that the clause 
should at least revert to the standard paragraph (p) at FAR 52.212-4--
GSA's deviation does not make sense in the context of GSAR 552.246-73. 
Moreover,

[[Page 4601]]

as suggested previously by the section, the limitation of the exclusion 
of consequential damages to only defects or deficiencies in accepted 
items provides a gap in coverage for unaccepted items, which is 
inconsistent with commercial practice and prior versions of the clause.
    Response: The team proposes maintaining clauses at FAR 52.212-4(p) 
and GSAR 552.246-73; they include the standard commercial warranty. A 
deviation is not necessary.
    The 35th commenter seeks clarification of the application of the 
Buy American Act (BAA) and the Trade Agreements Act (TAA). The 
commenter is concerned that contractors receive consistent treatment 
under the law and applicable regulations. Knowing when the BAA and TAA 
apply and how their respective tests will be applied to products or 
services is of great importance to contractors. Contractors selling 
commercial items to the Federal Government generally do not manufacture 
their products based on the origin of supplies or manufacturing 
location. The Government, however, requires such contractors to 
consider these things when they contract to sell commercial products to 
the Federal Government. Making it easier for contractors to know and 
understand how the rules will be applied can only improve the 
procurement system. This is particularly important because an 
inaccurate certification can result in loss of monies, contracts, 
serious civil and criminal penalties, or both. The commenter feels that 
there is uncertainty as to whether the BAA or TAA applies to a 
procurement. The TAA dollar-value applicability threshold, which is set 
out in FAR 25.402, can vary according to whether the country of origin 
is a Free Trade Agreement (FTA) country and whether the contract is for 
supplies, services, or construction. Generally, the BAA applies to 
contracts below the applicable TAA threshold, and the TAA waives 
application of the BAA to contracts at or above the applicable TAA 
threshold. But it is unclear whether the TAA threshold applies to the 
total contract value, the individual Contract Line Item value, or the 
delivery or task order value. FAR 25.402(b) and 25.403(b) identify the 
TAA and FTA thresholds and how they ought to apply to specific types of 
contracts, but it is the commenter's understanding that contracting 
officers routinely (and perhaps not reasonably) interpret these 
provisions differently. Is it GSA's belief that the TAA applies to each 
order regardless of order amount and what is the reason for this 
belief?
    Response: The team agrees that the TAA and BAA apply to the total 
value of the contract, regardless of individual order value. 
Specifically, as identified in FAR 25.403(b)(3), if, in any 12-month 
period, recurring or multiple awards for the same type of product or 
products are anticipated, the contracting officer is to use the total 
estimated value of these projected awards to determine whether the 
World Trade Organization (WTO), Government Procurement Agreement (GPA) 
or an FTA applies. Acquisitions should not be divided with the intent 
of reducing the estimated value of the acquisition below the dollar 
threshold of the WTO, GPA or an FTA.
    The 36th commenter was concerned about Alternate I of GSAR clause 
552.232-77 (Payment by Governmentwide Commercial Purchase Card), and 
GSAR clause 552.232-79 (Payment by Credit Card) and their impact on 
small businesses. The commenter states that, with the exception of FSS 
Schedule 70 (Information Technology) contracts, GSAR 532.7003 requires 
contracting officers to insert Alternate I of the clause at GSAR 
552.232-77 in FSS schedule solicitations and contracts. Moreover, for 
FSS Schedule 70 solicitations and contracts, GSAR 532.7003 requires 
contracting officers to include clause 552.232-79. The GSAR clause at 
552.232-77, without Alternate I, permits government orders using the 
Governmentwide commercial purchase card if agreeable to the contractor. 
Alternate I of that clause, however, provides that the FSS contractor 
must accept the Governmentwide commercial purchase card for payments 
equal to or less than the micro-purchase threshold ($2500). Likewise, 
clause 552.232-79 provides that Schedule 70 contractors must accept 
credit card orders (including the Governmentwide commercial purchase 
card) for payments equal to or less than the micro-purchase threshold. 
Consequently, the commenter felt that this mandate may be problematic 
for some companies. Through reports, it was outlined that credit card 
companies do not permit companies participating in their programs to 
discriminate by accepting their cards from some customers and not 
others. Consequently, the requirement contained in Alternate I of GSAR 
552.232-77 and in GSAR 552.232-79 for contractors to accept Government 
payment by the Governmentwide commercial purchase card may have the 
effect of compelling these contractors to accept credit card payments 
from all commercial customers as well. Therefore, the commenter 
recommends that GSA examine the current requirement in Alternate I of 
the clause to determine its impact and the burden it poses for 
contractors and potential contractors, especially small businesses that 
have chosen not to accept payment by credit card from their commercial 
customers in order to avoid the fees charged by the credit card 
companies.
    Response: The team does not concur with this comment. Under GSAR 
Clause 552.232-77, Alternate I, GSA mandates that the Contractor must 
accept use of the Governmentwide commercial credit card for payments 
equal to or less than the micro-purchase threshold as part of the FSS 
program. This mandate leverages the streamlined and more efficient 
transaction process use of the credit card. Offerors should consider 
this mandate before submitting an offer under the FSS program. The 
clause has been a final rule since March 2, 2000, and does not seem to 
have adversely impacted the number of small businesses under the FSS 
Program, as nearly 80 percent of FSS contractors are small business. 
According to the GSA purchase card Web site, the Government saves on 
administrative processing costs by using the purchase card rather than 
traditional purchase orders. Further, use of the purchase card ensures 
timely payment to merchants who do business with the Federal 
Government. Merchants are paid for credit card transactions within 48 
hours of submitting the transaction to the card network. This is a vast 
improvement to the lengthy invoicing and payment process without cards 
and improves cash flow to merchants most in need, especially small 
businesses. However, the team is currently coordinating with the GSA 
Purchase Card office to track any issues and/or concerns that may have 
arisen based on current requirements.
    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 changes may have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because the proposed rule will 
implement a number of provisions and clauses that are the same 
provisions and clauses currently in use in FSS solicitations and 
contracts. However, the provisions and clauses have never been vetted 
to the

[[Page 4602]]

public for comment, and must be approved by the Office of Management 
and Budget under the Paperwork Reduction Act.
    An Initial Regulatory Flexibility Analysis (IRFA) has been 
prepared. The analysis is summarized as follows:

    This Initial Regulatory Flexibility Analysis has been prepared 
consistent with the criteria of 5 U.S.C. 604.
    1. Description of the reasons why action by the agency is being 
considered.
    GSAM coverage in Part 538 does not currently include internal 
policy and guidance issued in other forms such as Acquisition 
Letters, Procurement Information Bulletins (PIBs), Procurement 
Information Notices (PINs), Instructional Letters and the Supply 
Operations Handbook (FAS P 2901.2A). This internal FSS guidance has 
never been fully vetted to the regulatory level for analysis, 
thereby bringing about conflict and overlap within the Program. 
Therefore, under conventions of the General Services 
Administration's (GSA) rewrite of the General Services 
Administration Manual (GSAM), the rule proposes to implement this 
policy and guidance for the Federal Supply Schedule (FSS) Program.
    2. Succinct statement of the objectives of, and legal basis for, 
the proposed rule.
    The objective of the proposed rule is to implement policy and 
guidance currently used in Federal Supply Schedule solicitations and 
contracts. Essentially, the goal of the new rule is to make the 
process more efficient by reducing duplication of effort and to 
ensure currency and consistency within the program for the 
acquisition of supplies and services.
    3. Description of, and where feasible, estimate of the number of 
small entities to which the proposed rule will apply.
    The proposed rule will affect large and small businesses, which 
are awarded GSA FSS contracts. The Program contains over 17,000 
long-term governmentwide contracts with commercial firms that 
provide over 11 million supplies and services. Approximately eighty-
one percent (13,770) of GSA FSS contracts are small businesses. Over 
$13 billion (37 percent) of sales under the Program in FY07 went to 
small businesses, which is well above the 23 percent governmentwide 
goal. There are a total of 39 Schedules, with 17 possessing an array 
of Special Item Numbers (SINs) set-aside for small businesses. 
Overall, small businesses have benefited from GSA providing 
education and access to the Federal marketplace via the Pre-award 
phase (Pathway to Success), the Post-award phase (New Contractor 
Orientation), and Contractor Assistance Visits (CAVs). Additionally, 
this proposed rule contains changes such as the addition of a 
Commercial Sales Practices Format for Supplies/Services without an 
Established Catalog Price, which will assist in facilitating ease-
of-use in the preparation of offers from prospective Contractors, 
inclusive of small business concerns. FSS contracts are negotiated 
as volume purchase agreements, with generally very favorable 
pricing. The ability of small businesses to be awarded under the FSS 
Program has enabled them to grow in the Federal marketplace as well 
as realize significant cost savings.
    4. Description of projected reporting, recordkeeping, and other 
compliance requirements of the proposed rule, including an estimate 
of the classes of small entities that will be subject to the 
requirement and the type of professional skills necessary for 
preparation of the report or record.
    This rule will not pose a significant economic impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the 
proposed rule will implement a number of provisions/clauses that are 
the same provisions/clauses currently in use in FSS solicitations 
and contracts. However, the provisions/clauses have never been 
vetted to the public for comment, and must be approved by the Office 
of Management and Budget under the Paperwork Reduction Act.
    5. Identification, to the extent practicable, of all relevant 
Federal rules that may duplicate, overlap or conflict with the 
proposed rule.
    The proposed rule when finalized does not duplicate, overlap, or 
conflict with any other Federal rules.
    6. Description of any significant alternatives to the proposed 
rule that accomplish the stated objectives of applicable statutes 
and that minimize any significant economic impact of the proposed 
rule on small entities.
    There are no practical alternatives that will accomplish the 
objective of this rule.

    The Regulatory Secretariat has submitted a copy of the IRFA to the 
Chief Counsel for Advocacy of the Small Business Administration. A copy 
of the IRFA may be obtained from the Regulatory Secretariat. The GSA 
will consider comments from small entities concerning the affected GSAR 
part 538 in accordance with 5 U.S.C. 610. Comments must be submitted 
separately and should cite 5 U.S.C 601, et seq. (GSAR Case 2006-G507), 
in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) 
addresses the collection of information by the Federal government from 
individuals, small businesses and state and local governments and seeks 
to minimize the burdens such information collection requirements might 
impose. A collection of information includes providing answers to 
identical questions posed to, or identical reporting or recordkeeping 
requirements imposed on ten or more persons, other than agencies, 
instrumentalities, or employees of the United States. In accordance 
with the requirements of the Paperwork Reduction Act, agencies may not 
conduct or sponsor, and the respondent is not required to respond to, 
an information collection unless it displays a currently valid Office 
of Management and Budget (OMB) control number.
    The Paperwork Reduction Act does apply; however, these changes to 
the GSAR do not impose additional information collection requirements 
to the paperwork burden previously approved under OMB Control Numbers 
3090-0243 (GSAR 552.216-70), 3090-0250 (GSAR 552.238-70 and 552.238-
74), 3090-0262 (GSAR 552.238-72), 3090-0121 (GSAR 552.238-75), and 
3090-0204 (GSAR 552.211-78).
    However, GSA is requesting comments on a proposed information 
collection. The proposed information collection is representative of 
required process of Federal Supply Schedule (FSS) solicitations in 
order to negotiate and award contracts. Offerors submit solicitations 
either by hard copy or electronically through GSA's eOffer system at 
http://www.gsa.gov/eoffer.
    The Regulatory Secretariat will submit a request for approval of a 
new information collection requirement concerning Federal Supply 
Schedule Contracting to the Office of Management and Budget under 44 
U.S.C. 3501, et seq.

Annual Reporting Burden

    552.238-10--Additional Offer Submission Instructions (Federal 
Supply Schedules) (SCP-FSS-001), 552.238-11--Additional Evaluation 
Factors for Award of Services (CI-FSS-151), and 552.238-90--Dealers and 
Suppliers (I-FSS-644). The burden for the three clauses is combined, 
thereby constituting a total of 8 burden hours collectively. FSS 
Offerors are at liberty to submit offers for both supplies and 
services, which may be inclusive of acting as a Dealer/Reseller.
    Number of Respondents: 4,000.
    Responses per Respondent: 1.
    Annual Responses: 4,000.
    Average Burden per Response: 8.
    Total Burden Hours: 32,000.
    Public reporting burden for this collection of information is 
estimated to average 8 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    552.238-65--Commercial Sales Practices Format--Supplies and/or 
Services with an Established Catalog Price (CSP-1) and 552.238-66--
Commercial Sales Practices Format--Supplies and/or Services with Market 
Pricing Without an Established Catalog Price (CSP-2).
    Number of Respondents: 18,000.
    Responses per Respondent: 3.5.

[[Page 4603]]

    Annual Responses: 63,000.
    Average Burden per Response: 5.
    Total Burden Hours: 315,000.
    Public reporting burden for this collection of information is 
estimated to average 5 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    552.238-71--Submission and Distribution of Authorized FSS Schedule 
Price Lists, 552.238-15--Contract Price Lists (I-FSS-600), 552.238-61--
Price Lists/Brochures for Non-Commercial Items (I-FSS-602), and 
552.238-92--Dissemination of Information by Contractor (I-FSS-680).
    Number of Respondents: 18,000.
    Responses per Respondent: 3.5.
    Annual Responses: 63,000.
    Average Burden per Response: 5.
    Total Burden Hours: 315,000.
    Public reporting burden for this collection of information is 
estimated to average 5 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    552.238-58--GSA Advantage![supreg] (I-FSS-597) and 552.238-59--
Electronic Commerce-FACNET (I-FSS-599).
    Number of Respondents: 16,634.
    Responses per Respondent: 3.5.
    Annual Responses: 58,219.
    Average Burden per Response: 2.
    Total Burden Hours: 116,438.
    Public reporting burden for this collection of information is 
estimated to average 2 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    552.238-69, Economic Price Adjustment--Supplies and/or Services 
with Market Prices without an Established Catalog Price (I-FSS-969).
    Number of Respondents: 11,000.
    Responses per Respondent: 1.
    Annual Responses: 11,000.
    Average Burden per Response: 1.
    Total Burden Hours: 11,000.
    Public reporting burden for this collection of information is 
estimated to average 1 hour per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.

D. Request for Comments Regarding Paperwork Burden

    Submit comments, including suggestions for reducing this burden, 
not later than March 27, 2009 to: GSA Desk Officer, OMB, Room 10102, 
NEOB, Washington, DC 20503, and a copy to the General Services 
Administration, Regulatory Secretariat (VPR), 1800 F Street, NW., Room 
4041, Washington, DC 20405.
    Public comments are particularly invited on: Whether this 
collection of information is necessary for the proper performance of 
functions of the GSAR, and will have practical utility; whether our 
estimate of the public burden of this collection of information is 
accurate, and based on valid assumptions and methodology; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways in which we can minimize the burden of the 
collection of information on those who are to respond, through the use 
of appropriate technological collection techniques or other forms of 
information technology.
    Requester may obtain a copy of the justification from the General 
Services Administration, Regulatory Secretariat (VPR), Room 4041, 
Washington, DC 20405, telephone (202) 208-7312. Please cite OMB Control 
Number 3090-XXXX, GSAR 2006-G507, Federal Supply Schedule Contracting, 
in all correspondence.

List of Subjects in 48 CFR Parts 538 and 552

    Government procurement.

    Dated: January 6, 2009.
Al Matera,
Director, Office of Acquisition Policy.

    Therefore, GSA proposes to amend 48 CFR parts 538 and 552 as set 
forth below:
    1. The authority citation for 48 CFR parts 538 and 552 continues to 
read as follows:

    Authority: 40 U.S.C. 121(c).

PART 538--FEDERAL SUPPLY SCHEDULE CONTRACTING

Subpart 538.2 [Removed]

    2. Remove Subpart 538.2, consisting of sections 538.270 through 
538.273.
    3. Add Subpart 538.9, consisting of section 538.906-3, to read as 
follows:

Subpart 538.9--Contractor Qualifications

Sec.
538.906-3 Roles and Responsibilities of a contractor partnering 
arrangement.


538.906-3  Roles and responsibilities of a contractor partnering 
arrangement.

    (a) The Contractor Partnering Arrangement document should outline 
all FSS partners. The lead partner is responsible for identifying FSS 
contract numbers, Contractor's point-of-contact information, and 
information about what each partner is responsible for at each phase of 
the project. Each partner is responsible for the terms and conditions 
of its respective FSS contract, including any proposed unit prices or 
hourly rates.
    (b) The CPA is solely between or among the partners and cannot 
conflict with the underlying terms and conditions of each partner 
member's Schedule contract.
    (c) Schedule Contractors are responsible for crafting the CPA 
document. The Government is not involved in this process.
    (d) The CPA document should acknowledge that any dispute involving 
the distribution of payment between the lead partner and the team 
members will be resolved by all partners, without any involvement by 
the Government.
    4. Add Subpart 538.12, consisting of section 538.1203, to read as 
follows:

Subpart 538.12--Acquisition of Commercial Items--FSS

Sec.
538.1203 Solicitation provisions and contract clauses.


538.1203  Solicitation provisions and contract clauses.

    (a) Multiple and single award schedules. The following provisions 
are required for all Federal Supply Schedules. As prescribed below, 
insert the following Cover Page language prior to the beginning of FSS 
solicitations:
    (1) 552.238-1, Cover Page for Worldwide Multiple Award Schedules 
(CP-FSS-1-C). This provision is for both supply and service 
solicitations. For supplies, complete the information required by this 
paragraph (a) and delete paragraph (b) of this section in its entirety. 
For services, complete the information required by paragraph (b) and 
delete (a) in its entirety. For solicitations containing both supplies 
and services, complete paragraphs (a) and (b).
    (2) 552.238-2, Significant Changes (CP-FSS-2). This provision 
outlines to Offerors the most recent solicitation revisions since its 
previous posting to the Government's point of entry.
    (3) 552.238-3, Pricing (CP-FSS-19). This provision notifies 
Offerors that separate pricing may be submitted for different 
countries, if offered commercially.
    (4) 552.238-4, Notice of Total Small Business Set-Aside (A-FSS-31). 
This provision notifies small business

[[Page 4604]]

Offerors which Special Item Numbers (SINs) are set-aside.
    (5) 552.238-5, Information Collection Requirements and Hours of 
Operation (A-FSS-41). This provision informs Offerors that only 
required regulations are contained in the solicitation and the hours of 
operation.
    (6) 552.238-6, Notice: Requests for Explanation or Information (CP-
FSS-3). This provision contains the contact information to address 
questions regarding the solicitation.
    (b) Multiple and single award Schedules. As prescribed below, 
insert the following provisions as an addendum to 52.212-1, 
Instructions to Offerors--Commercial Items, in solicitations issued 
under FSS, when applicable:
    (1) 552.238-7, Estimated Sales (B-FSS-96). This provision instructs 
Offerors to provide the estimated annual sales anticipated under the 
Schedule.
    (2) 552.238-8, Consideration of Offers Under Standing Solicitation 
(A-FSS-11). This provision outlines to Offerors the Government's 
contemplation of awards under a standing solicitation.
    (3) 552.238-9, Period for Acceptance of Offers (A-FSS-12-C). This 
provision instructs the Offeror to insert the number of days that the 
offered pricing is firm.
    (4) 552.238-10, Additional Offer Submission Instructions (Federal 
Supply Schedules) (SCP-FSS-001). This provision clarifies how to submit 
solicitation responses.
    (5) 552.238-11, Additional Evaluation Factors for Award of Services 
(I-FSS-151). This provision provides clarification to Offerors on how 
solicitation responses for services will be evaluated.
    (6) 552.238-12, Submission of Offers--Additional Instructions (CI-
FSS-002). This provision outlines to Offerors additional instructions 
on how to submit an offer under the Schedules Program.
    (7) 552.238-13, Impact of Mandatory Use on Quantities Ordered (B-
FSS-97). In conjunction with clause 552.238-51, Scope of Contract (I-
FSS-102), this provision requires that this contract is the first 
instance where GSA is the only agency listed as a mandatory user. This 
provision does not apply to the Department of Veterans Affairs.
    (8) 552.238-14, Introduction of New Supplies/Services (INSS) (L-
FSS-400). This provision is for use when establishing new services or 
supplies.
    (9) 552.238-15, Contract Price Lists (I-FSS-600). This provision 
provides instructions to Offerors on how to create the Authorized FSS 
Schedule Price List. For Schedule 70, use Alternate I.
    (10) 552.238-16, Ordering Information (Federal Supply Schedules). 
This provision outlines how Offerors will accept orders placed against 
the contract.
    (11) 552.238-17, Contractor's Remittance (Payment) Address. This 
provision instructs the Offeror on how to insert its remittance/payment 
address.
    (12) 552.238-18, Final Proposal Revision (L-FSS-101). This 
provision provides instructions to Offerors on how to prepare and 
submit a Final Proposal Revision (FPR) letter.
    (13) 552.238-19, Use of Non-Government Employees to Review Offers. 
This provision provides notification to Offerors that non-government 
employees may be utilized to review their solicitation response.
    (14) 552.238-20, Authorized Negotiators (K-FSS-1). This provision 
provides for the Offeror to outline its point-of-contact information 
for negotiations.
    (c) Multiple and single award schedules. As prescribed below, 
insert the following clauses as an addendum to clause 52.212-4, 
Contract Terms and Conditions--Commercial Items, in solicitations and 
contracts issued under FSS, when applicable:
    (1) 552.238-21, Authentication Supplies and Services (CI-FSS-52). 
This clause is to be used with Schedule 70 only and specifically 
corresponds to those Special Item Numbers (SINs) associated with the 
Homeland Security Presidential Directive-12 (HSPD-12).
    (2) 552.238-22, Indemnification and Liability (CI-FSS-053). This 
clause is to be used to protect the interest of the Government for loss 
or damage or anticipated loss for services related to hazardous 
substances or waste.
    (3) 552.238-23, Organizational Conflicts of Interest (CI-FSS-054). 
This clause is to be used when the nature of the work to be performed 
under a proposed ordering activity contract may either
    (i) Result in an unfair competitive advantage to the Contractor or 
its affiliates; or
    (ii) Impair the Contractor or its affiliates' objectively in 
performing contract work.
    (4) 552.238-24, Section 508 Compliance (CI-FSS-056). This clause 
instructs the Contractor to insert its Web site in a location where 
ordering activities can verify the 508 compliance for specific items.
    (5) 552.238-25, Characteristics of Electric Current (C-FSS-412). 
This clause is used for overseas orders when Contractors are supplying 
equipment which uses electrical current.
    (6) 552.238-26, Separate Charge for Performance Oriented Packaging 
(POP) (D-FSS-447). This clause is to be used when the Offeror is 
requested to quote a separate charge for preservation, packaging, 
packing and marking and labeling of domestic and overseas HAZMAT 
SURFACE SHIPMENTS.
    (7) 552.238-27, Special Packing (D-FSS-464). This clause instructs 
bidders to specify additional charges for preservation, packaging, and 
packing when other than the commercial standard is used.
    (8) 552.238-28, Export Packing (D-FSS-465). This clause instructs 
Offerors to quote in their price lists accompanying their offer (or by 
separate attachment), additional charges or net prices covering 
delivery of the items furnished with commercial and/or Government 
export packing. This clause only applies to Schedule 70 for Information 
Technology.
    (9) 552.238-29, Marking and Documentation Requirements Per Shipment 
(D-FSS-471). This clause is used when outlining the minimum information 
and documentation required for shipment.
    (10) 552.238-30, Inspection (E-FSS-521-D). This clause is for use 
when all items are to be inspected at a destination by a Government 
representative.
    (11) 552.238-31, Emergency/Expedited Delivery (CI-FSS-051). This 
applies to Schedule 51 V only, and is to be used when delivery terms 
and conditions deviate from normal delivery practices.
    (12) 552.238-32, Delivery Prices (F-FSS-202-G). This clause is for 
use in Indefinite Delivery/Indefinite Quantity contracts and describes 
delivery terms and conditions for the 48 Contiguous States and 
Washington, DC as well as additional destinations.
    (13) 552.238-33, Additional Service Charge for Delivery Within 
Consignee's Premises (F-FSS-244-B). This clause is for use when the 
Contractor charges a separate cost for each shipping container to be 
shipped (inclusive of items that are comparable in size and weight).
    (14) 552.238-34, Additional Service Charge for Delivery Within 
Consignee's Premises (Specification for Inside Delivery) (F-FSS-244-C). 
This clause is applicable to furniture acquisitions only and is to be 
used in accordance with FAR 52.247-35 when an additional charge is 
necessary beyond F.O.B Destination within Consignee's Premises.
    (15) 552.238-35, Shipping Points (F-FSS-712-B). This clause 
instructs the Offeror to provide shipping information,

[[Page 4605]]

inclusive of carrier and address, for F.O.B. Origin shipments.
    (16) 552.238-36, Contact for Contract Administration (G-FSS-900-C). 
This clause instructs Offerors to provide points of contact for 
domestic and/or overseas contact information for contract 
administration.
    (17) 552.238-37, Vendor Managed Inventory (VMI) Program (MAS) (G-
FSS-906). This clause instructs Contractors to monitor and maintain 
specified inventory levels for selected supplies at designated stocking 
points.
    (18) 552.238-38, Order Acknowledgement (G-FSS-907). This clause is 
only applicable to orders which state ``Order Acknowledgement 
Required'' and advises the Contractor of the receipt process within 10 
days of delivery.
    (19) 552.238-39, Urgent Requirements (I-FSS-140B). This clause is 
for use when a bona fide need exists for accelerated delivery.
    (20) 552.238-40, Post-Award Samples (H-FSS-505). This clause is for 
use with carpet acquisitions only and is used to instruct the 
Contractor on submission requirements.
    (21) 552.238-41, Guaranteed Minimum (I-FSS-106). This clause 
outlines the minimum guarantee that the Government agrees to order 
during the term of the contract.
    (22) 552.238-42, Restriction on the Acceptance of Orders (I-FSS-
107). This clause sets restrictions on orders and deliveries in 
connection with the United States Navy and the Military Sealift 
Command.
    (23) 552.238-43, Clauses for Overseas Coverage (I-FSS-108). The 
following clauses must be inserted, when applicable, in solicitations 
in full text for overseas acquisitions:
    (i) 52.214-34, Submission of Offers in the English Language.
    (ii) 52.214-35, Submission of Offers in U.S. Currency.
    (iii) 52.247-34, F.O.B. Destination.
    (iv) 52.247-38, F.O.B. Inland Carrier, Country of Exportation.
    (v) 52.247-39, F.O.B. Inland Point, Country of Importation.
    (vi) 552.238-25, Characteristics of Electric Current (C-FSS-412).
    (vii) 552.238-29, Marking and Documentation Requirements Per 
Shipment (D-FSS-471).
    (viii) 552.238-44, Transshipments (D-FSS-477). This clause is for 
use for transshipments and states the terms and conditions of the use 
of Department of Defense forms necessary for shipment.
    (ix) 552.238-45, Delivery Prices (F-FSS-202-F). This clause is for 
use for F.O.B. Destination in overseas deliveries.
    (x) 552.238-46, Foreign Taxes and Duties (I-FSS-314). This clause 
delineates which fees, taxes and other foreign governmental costs are 
exempt/non-exempt by the U.S. Government. The prices offered must be 
NET delivered F.O.B.
    (xi) 552.238-47, Parts and Service (I-FSS-594). This clause is used 
to ensure that the parts and services (including the performance of 
warranty or guarantee service) submitted by Offerors (dealers/
distributors) is good for the entire contract period.
    (24) 552.238-48, English Language and U.S. Dollar Requirements (I-
FSS-109). This clause is used to instruct Contractors that all 
documents shall be produced in the English language, including, but not 
limited to, price lists and catalogs.
    (25) 552.238-49, Geographic Area Address of Supply and Service 
Point. This clause outlines the intent for available means to maintain 
Government-owned items in satisfactory condition.
    (26) 552.238-50, Option to Extend the Term of the Contract 
(Evergreen) (I-FSS-163). This clause is for use when determining 
continued performance of a contract for the next option period.
    (27) 552.238-51, Scope of Contract (I-FSS-102). This clause is for 
use with single awards only and is used to outline the scope of 
delivery.
    (28) 552.238-52, Option to Extend the Term of Contract for Period 
of One Year (I-FSS-165). This clause is for use when determining 
continued performance of a contract for an additional 12 months, 
inclusive of the same terms and conditions as contained in the original 
contract.
    (29) 552.238-53, Option to Extend the Term of the Contract (I-FSS-
167). This clause is for single awards only and is used when 
determining continued performance of a contract not to exceed 60 days.
    (30) 552.238-54, Federal Excise Tax (I-FSS-311). This clause is for 
use with tire and tube acquisitions only and instructs ordering 
activities on the procedures for invoicing the Federal Excise Tax.
    (31) 552.238-55, Contractor Partnering Arrangements (CPAs) (I-FSS-
40). This clause instructs Contractors to abide by the terms and 
conditions of their respective contracts when participating in 
Contractor Partnering Arrangements. This clause is not applicable to 
the U.S. Department of Veterans Affairs.
    (32) 552.238-56, Performance Reporting Requirements (I-FSS-50). 
This clause outlines to the Contractor the performance requirements for 
contracts exceeding the simplified acquisition threshold.
    (33) 552.238-57, Guarantee (I-FSS-546). This clause outlines the 
guarantee afforded to the Government for a period of one year from the 
date of delivery.
    (34) 552.238-58, GSA Advantage![supreg] (I-FSS-597). This clause 
outlines to the Contractor that it must participate in the GSA 
Advantage![supreg] online shopping service. This clause is not 
applicable to the U.S. Department of Veterans Affairs.
    (35) 552.238-59, Electronic Commerce-FACNET (I-FSS-599). This 
clause outlines the use of electronic commerce/data interchange to 
conduct contract processes and procedures. This clause is not 
applicable to the U.S. Department of Veterans Affairs.
    (36) 552.238-60, Performance Incentives (I-FSS-60). This clause 
outlines performance incentives agreed upon between the ordering 
activity and the Contractor.
    (37) 552.238-61, Price Lists/Brochures for Non-Commercial Items (I-
FSS-602). This clause outlines the requirements for submission of price 
lists for non-commercial items.
    (38) 552.238-62, Office Copier Utilization Guidelines (I-FSS-624). 
This clause explains to ordering activities the guidelines for 
selecting the appropriate and most economical copying process.
    (39) 552.238-63, Preference for Small Business Concerns (I-FSS-90). 
This clause advises Offerors to prioritize the small business concerns 
where two or more items at the same delivered price will meet the 
ordering activity's needs.
    (40) 552.238-64, Imprest Funds (Petty Cash) (I-FSS-918). This 
clause outlines to the Contractor that it agrees to accept cash payment 
for purchases under the terms of the contract in accordance with FAR 
13.305.
    (41) 552.238-65, Commercial Sales Practices Format-Supplies and/or 
Services with an Established Catalog Price List (CSP-1). This clause 
provides instructions to the Offeror for completing the commercial 
sales practices format for supplies and services with an established 
catalog price list.
    (42) 552.238-66, Commercial Sales Practices Format-Supplies and/or 
Services with Market Pricing without an Established Catalog Price (CSP-
2). This clause provides instructions to the Offeror for completing the 
commercial sales practices format for supplies and/or services with 
market pricing without an established catalog price.
    (43) 552.238-67, Modifications (Multiple Award Schedule) (currently 
552.243-72). This clause instructs to the Contractor as to the types of 
contract

[[Page 4606]]

modifications and the procedures for requesting them.
    (44) 552.238-68, Economic Price Adjustment-Supplies and/or Services 
with an Established Catalog Price List (currently 552.216-70). This 
clause provides Contractors the procedures for submitting economic 
price adjustments for supplies and services with an established catalog 
price list.
    (45) 552.238-69, Economic Price Adjustment-Supplies and/or Services 
with Market Pricing without an Established Catalog Price (I-FSS-969). 
This clause provides the Contractor the procedures for submitting 
economic price adjustments for supplies and services with market 
pricing and without an established catalog price list.
    (46) 552.238-70, Identification of Electronic Office Equipment 
Providing Accessibility for the Handicapped. This clause instructs the 
Offeror to identify in its offer any special peripheral that will 
facilitate electronic office equipment accessibility for handicapped 
individuals.
    (47) 552.238-71, Submission and Distribution of Authorized FSS 
Schedule Price Lists. This clause provides to the Contractor the 
responsibility of printing and distributing its Authorized FSS Schedule 
Price List after award.
    (48) 552.238-72, Identification of Products that have Environmental 
Attributes. This clause provides to the ordering activity the 
requirement to purchase supplies that are not harmful to the 
environment.
    (49) 552.238-73, Cancellation. This clause provides to the 
Contractor the policy and procedures for cancelling a contract.
    (50) 552.238-74, Industrial Funding Fee and Sales Reporting. This 
clause provides to the Contractor the requirement to report all 
contract sales under the contract to GSA on a quarterly basis.
    (51) 552.238-75, Price Reductions. This clause provides to the 
Offeror the requirement to establish an agreed-upon price and discount 
relationship with the Government prior to award.
    (52) 552.238-77, Definition (Federal Supply Schedules). This clause 
defines eligible ordering activities authorized to place orders under 
FSS contracts.
    (53) 552.238-78, Scope of Contract (Eligible Ordering Activities). 
This clause outlines solicitations issued to establish contracts which 
may be used on a non-mandatory basis by designated ordering activities 
as a source of supply for supplies or services for domestic and/or 
overseas delivery.
    (54) 552.238-79, Use of Federal Supply Schedule Contracts by 
Certain Entities--Cooperative Purchasing. This clause outlines to 
ordering activities the procedures for use of Federal Supply Schedules 
by State and Local Governments.
    (55) 552.238-81, Placement of Orders by Eligible Ordering 
Activities. This clause instructs to eligible ordering activities the 
procedures for placing orders through the Electronic Data Interchange 
(EDI).
    (56) 552.238-82, Discounts for Prompt Payments (Federal Supply 
Schedule). This clause provides the Offeror the Government's 
consideration of discount for early payment.
    (57) 552.238-83, Contractor's Billing Responsibilities. This clause 
provides to the Contractor the requirements of billing 
responsibilities, particularly those associated with participating 
dealers.
    (58) 552.238-84, Payment by Credit Card. This clause provides to 
the Offeror the mandatory acceptance of payment of the Governmentwide 
Commercial Purchase Card.
    (59) 552.238-85, Payments by Non-Federal Ordering Activities. This 
clause provides to eligible non-federal ordering activities the 
procedures for payment under a State prompt payment law versus the 
Federal Prompt Payment Act.
    (60) 552.238-86, Warranty-Multiple Award Schedule (currently 
552.246-73). This clause provides, for domestic or overseas, the 
application of the Contractor's standard commercial warranty.
    (61) 552.238-87, Warranty (I-FSS-542-A). This clause provides 
procedures for the necessary adjustment of procured equipment when the 
Government is not at fault.
    (62) 552.238-88, Service Points (I-FSS-626). This clause instructs 
the Offeror to provide information in its price list addressing supply 
and service points.
    (63) 552.238-89, Contract Sales Criteria (I-FSS-639). This clause 
provides the anticipated sales expected to be generated by a contract 
and the Government's right to cancel the contract if they are not met.
    (64) 552.238-90, Dealers and Suppliers (I-FSS-644). This clause 
instructs Offerors that are other than the manufacturer the requirement 
to submit a letter of commitment to assure an uninterrupted source of 
supply to satisfy the Government's requirements.
    (65) 552.238-91, Blanket Purchase Agreements (BPAs) (I-FSS-646). 
This clause provides to the Contractor the procedures for entering into 
Blanket Purchase Agreements (BPAs) with ordering activities.
    (66) 552.238-92, Dissemination of Information by Contractor (I-FSS-
680). This clause provides to the Contractor the responsibility of 
distributing Authorized Federal Supply Schedule Price Lists to all 
authorized sales outlets.
    (67) 552.238-93, Purchase of Open Market Items (CI-FSS-055). This 
clause provides to the ordering activity the treatment of open market 
items under BPAs and individual task or delivery orders placed against 
a Federal Supply Multiple Award Schedule (MAS) contract.
    (68) 552.238-94, Contractor Tasks/Special Requirements (C-FSS-370). 
This clause provides to the Contractor special requirements that may be 
needed when completing various tasks.
    (69) 552.238-95, Commercial Delivery Schedule (Multiple Award 
Schedule) (currently 552.211-78). This clause provides to the Offeror 
the requirement to address normal commercial delivery times in its 
offer.
    (70) 552.238-96, Preparation of Offer (Multiple Award Schedule) 
(currently 552.212-70). This clause provides to the Offeror the 
requirement of including specified information used for evaluation 
purposes when preparing its offer.
    (71) 552.238-97, Examination of Records by GSA (Multiple Award 
Schedule) (currently 552.215-71). With the Senior Procurement 
Executive's approval, the contracting officer may modify the clause at 
552.238-97 to provide for post-award access to and the right to examine 
records to verify that the pre-award/modification pricing, sales or 
other data related to the supplies or services offered under the 
contract which formed the basis for the award/modification was 
accurate, current, and complete. The following procedures apply:
    (i) Such a modification of the clause must provide for the right of 
access to expire two years after award or modification.
    (ii) Before modifying the clause, the Contracting Officer must make 
a determination that absent such access there is a likelihood of 
significant harm to the Government and submit it to the Senior 
Procurement Executive for approval.
    (iii) The determinations under paragraph (d)(2) must be made on a 
schedule-by-schedule basis.
    (72) 552.238-98, Price Adjustment--Failure to Provide Accurate 
Information (currently 552.215-72).
    (i) Multiple and single award schedules. Insert the following 
alternate FAR clauses in solicitations and

[[Page 4607]]

contracts issued under FSS, when applicable:
    (A) Alternate IV of the FAR provision at 52.215-20, Requirements 
for Cost or Pricing Data or Information Other Than Cost or Pricing 
Data. The Contracting Officer should insert the following in paragraph 
(b) of the provision:
    (B) An offer prepared and submitted in accordance with the clause 
at 552.238-96, Preparation of Offer (Multiple Award Schedule) 
(currently 552.212-70).
    (C) The Offeror shall submit commercial sales practices in the 
format provided in this solicitation in accordance with the 
instructions in 552.238-65, Commercial Sales Practices Format--Supplies 
and/or Services with an Established Catalog Price List (CSP-1); or 
552.238-66, Commercial Sales Practices Format--Supplies and/or Services 
with Market Pricing Without an Established Catalog Price (CSP-2).
    (D) Any additional supporting information requested by the 
Contracting Officer. The Contracting Officer may require additional 
supporting information, but only to the extent necessary to determine 
whether the price(s) offered is fair and reasonable.
    (E) By submission of an offer in response to this solicitation, the 
Offeror grants the Contracting Officer or an authorized representative 
the right to examine, at any time before initial award, books, records, 
documents, papers, and other directly pertinent records to verify the 
pricing, sales and other data related to the supplies or services 
proposed in order to determine the reasonableness of price(s). Access 
does not extend to Offeror's cost or profit information or other data 
relevant solely to the Offeror's determination of the prices to be 
offered in the catalog or marketplace.
    (ii) Alternate IV of FAR 52.215-21, Requirements for Cost or 
Pricing Data or Information Other Than Cost or Pricing Data-
Modifications. The Contracting Officer should insert the following in 
paragraph (b) of the clause:
    (A) Information required by the clause at GSAR 552.238-67, 
Modifications (Multiple Award Schedule) (currently 552.243-72).
    (B) Any additional supporting information requested by the 
Contracting Officer. The Contracting Officer may require additional 
supporting information, but only to the extent necessary to determine 
whether the price(s) offered is fair and reasonable.
    (C) By submitting a request for modification, the Contractor grants 
the Contracting Officer or an authorized representative the right to 
examine, at any time before agreeing to a modification, books, records, 
documents, papers, and other directly pertinent records to verify the 
pricing, sales and other data related to the supplies or services 
proposed in order to determine the reasonableness of price(s). Access 
does not extend to Contractor's cost or profit information or other 
data relevant solely to the Contractor's determination of the prices to 
be offered in the catalog or marketplace.
    (73) 552.238-99, Task Order Period of Performance. This clause 
indicates that orders placed under a FSS contract which include priced 
options that were evaluated at the time the order was placed, allows 
those options to be exercised if the contract has expired.
    (74) 552.238-100, Deliveries Beyond the Contractual Period--Placing 
of Orders (G-FSS-910). This clause allows orders to be processed if 
they were received prior to the expiration of the contract.
    (75) 552.238-101, Award (L-FSS-59). This provision lets Offerors 
know that only a formal written notification from the Government can be 
interpreted as a notice of award.
    (76) 552.238-102, Interpretation of Contract Requirements (I-FSS-
965). This indicates that only written clarifications regarding 
interpretation of contract clauses may only be made by the Contracting 
Officer or his/her designated representative.
    5. Add Subpart 538.15, consisting of sections 538.1504 and 
538.1508, to read as follows:

Subpart 538.15--Negotiation and Award of Contracts

Sec.
538.1504 Evaluation of commercial pricing practices.
538.1508 Price reductions.


538.1504  Evaluation of commercial pricing practices.

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


538.1508   Price reductions.

    (a) Section 552.238-75, Price Reductions, requires the Contractor 
to maintain during the contract period the negotiated price/discount 
relationship (and/or term and condition relationship)

[[Page 4608]]

between the Government and the Offeror's customer or category of 
customers on which the contract award was predicated. If a change 
occurs in the Contractor's commercial pricing or discount arrangement 
applicable to the identified commercial customer (or category of 
customers) that results in a less advantageous relationship between the 
Government and this customer or category of customers, the change 
constitutes a ``price reduction.''
    (b) The contracting officer shall ensure that the Contractor 
understands the requirements of section 552.238-75 and agrees to report 
all price reductions as provided for in the clause to the Government.
    6. Add Subpart 538.25, consisting of section 538.2502, to read as 
follows:

Subpart 538.25--Requirement for Foreign Entities

Sec.
538.2502 English language and U.S. dollar requirements.


538.2502  English language and U.S. dollar requirements.

    (a) Offerors shall reprint their commercial price list in English 
if it is not published and disseminated commercially in English.
    (b) Overseas customers may make payments for supplies or services 
in local currencies.
    7. Add Subpart 538.42, consisting of sections 538.4201-3, 538.4206, 
and 538.4206-1, to read as follows:

Subpart 538.42--Contract Administration

Sec.
538.4201-3 IFF and Contractor partnering arrangements.
538.4206 Contractor cancellation of FSS contract.
538.4206-1 Processing cancellation of a Contractor request.


538.4201-3  IFF and Contractor partnering arrangements.

    Contractors participating in Contractor Partnering Arrangements 
must abide by all terms and conditions of their respective contracts, 
including compliance with clause 552.238-74, Industrial Funding Fee and 
Sales Reporting.


538.4206  Contractor cancellation of FSS contract.


538.4206-1  Processing cancellation at Contractor request.

    Contractor-requested cancellations shall be formalized by a 
contract modification, which incorporates the Contractor's letter and 
indicates the effective date of the cancellation (30 days after written 
notice). The contracting officer is responsible for ensuring that the 
modification distributed to the Contractor and the administrative 
contracting officer. The modification will provide a formal notice to 
the administrative contracting officer and an appropriate closure to 
the contract file. Contractors should be reminded that they are 
responsible for completion of any outstanding orders. The contracting 
officer must cancel the contract in FSS Online.
    8. Add Subpart 538.43, consisting of section 538.4303-3, to read as 
follows:

Subpart 538.43--Contract Modifications

Sec.
538.4303-3 Contractor initiated modifications.


538.4303-3  Contractor initiated modifications.

    All Contractor modification requests must adequately describe and 
justify the proposed changes. However, there are certain modification 
requests that require additional documentation before they can be 
evaluated and approved. Examples of such modification requests include 
economic price adjustments, price reductions, and the addition/deletion 
of items. The specific documentation required to be submitted for each 
of these actions is identified under the Modifications and/or Economic 
Price Adjustment clauses that are applicable to the contract. If any 
modification request fails to provide current, accurate, and complete 
information as required by the terms and conditions in the contract, 
the contracting officer should return the request and detail its 
deficiencies to the Contractor.

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


552.211-78  [Redesignated as 552.238-95]

    9. Redesignate section 552.211.78 as 552.238-95.


552.212-70  [Redesignated as 552.238-96]

    10. Redesignate section 552.212.70 as 552.238-96.


552.215-71  [Redesignated as 552.238-97]

    11. Redesignate section 552.215-71 as 552.238-97.


552.215-72  [Redesignated as 552.238-98]

    12. Redesignate section 552.215.72 as 552.238-98.


552.216-70  [Redesignated as 552.238-68]

    13. Redesignate section 552.216-70 as section 552.238-68.
    14. Add sections 552.238-1 through 552.238-66 to read as follows:


552.238-1  Cover Page for Worldwide Multiple Award Schedules (CP-FSS-1-
C).

    As prescribed in 538.1203(a)(1), insert the following provision:
WORLDWIDE FEDERAL SUPPLY SCHEDULE CONTRACT (CP-FSS-1-C) (DATE)

Solicitation No. *--------*

Federal Supply Schedule Contract for All Geographic Areas

    FSC Group *--------* Part *--------* Section *--------*.
    Supply: *--------*.
    FSC Class(es)/Product Code(s)/NAICS: *--------* and/or
    Service: *--------*.
    Service Code(s)/NAICS: *--------*.

    Any information that may be desired on this particular 
solicitation can be obtained from the issuing office; address shown 
herein.


(End of Provision)


552.238-2  Significant Changes (CP-FSS-2).

    As prescribed in 538.1203(a)(2), insert the following provision:
SIGNIFICANT CHANGES (CP-FSS-2) (DATE)
    The following changes have been made since the issuance of the 
solicitation for the supplies and/or services covered herein:
    *--------*.


(End of Provision)


552.238-3  Pricing (CP-FSS-19).

    As prescribed in 538.1203(a)(3), insert the following provision:
PRICING (CP-FSS-19) (DATE)
    Offerors are advised that separate pricing may be submitted for 
different countries if separate pricing is consistent with the 
Offeror's commercial sales practice.


(End of Provision)


552.238-4  Notice of Total Small Business Set-Aside (A-FSS-31).

    As prescribed in 538.1203(a)(4), insert the following provision:
NOTICE OF TOTAL SMALL BUSINESS SET-ASIDE (A-FSS-31) (DATE)
    The clause entitled ``Notice of Total Small Business Set-
Aside,'' applies to the following items in this solicitation: *----
----*.


(End of Provision)


552.238-5  Information Collection Requirements and Hours of Operation 
(A-FSS-41).

    As prescribed in 538.1203(a)(5), insert the following provision:

[[Page 4609]]

INFORMATION COLLECTION REQUIREMENTS AND HOURS OF OPERATION (A-FSS-41) 
(DATE)
    (a) ``The information collection requirements contained in this 
solicitation/contract are either required by regulation or approved 
by the Office of Management and Budget pursuant to the Paperwork 
Reduction Act and assigned OMB Control No. 3090-0163.''
    (b) ``GSA's hours of operation are 8:00 a.m. to 4:30 p.m. 
Requests for preaward debriefings postmarked or otherwise submitted 
after 4:30 p.m. will be considered submitted the following business 
day. Requests for postaward debriefings delivered after 4:30 p.m. 
will be considered received and filed the following business day.''


(End of Provision)


552.238-6  Notice: Requests for Explanation or Information (CP-FSS-3).

    As prescribed in 538.1203(a)(6), insert the following provision:
NOTICE: REQUESTS FOR EXPLANATION OR INFORMATION (CP-FSS-3) (DATE)
    Oral or written requests for explanation or information 
regarding this solicitation should be directed to:

General Services Administration

*--------*
*--------*
*--------*

or

Phone *--------*.

    Note: Important. Do not address offers, modifications or 
withdrawals to the address in this provision. The address designated 
for receipt of offers is contained elsewhere in this solicitation.



(End of Provision)


552.238-7  Estimated Sales (B-FSS-96).

    As prescribed in 538.1203(b)(1), insert the following provision:
ESTIMATED SALES (B-FSS-96) (DATE)
    The ``Estimated Sales'' column of the Schedule of Items shows 
(1) a twelve-month reading of purchases in dollars or purchases in 
units as reported by the previous Contractor(s), or (2) estimates of 
the anticipated dollar volume where the item is new. The absence of 
a figure indicates that neither reports of previous purchases nor 
estimates of sales are available.
    *--------*.


(End of Provision)


552.238-8  Consideration of Offers Under Standing Solicitation (A-FSS-
11).

    As prescribed in 538.1203(b)(2), insert the following provision:
CONSIDERATION OF OFFERS UNDER STANDING SOLICITATION (A-FSS-11) (DATE)
    (a) This solicitation is a standing solicitation from which the 
Government contemplates award of contracts for supplies/services 
listed in the Schedule of Items. This solicitation will remain in 
effect unless replaced by a refreshed solicitation.
    (b) There is no closing date for receipt of offers; therefore, 
offers may be submitted for consideration at any time.
    (c) Contracts awarded under this solicitation will be in effect 
for 5 years from the date of award, unless further extended, 
pursuant to clause 552.238-50/I-FSS-163, Option to Extend the Term 
of the Contract (Evergreen), canceled pursuant to the Cancellation 
clause, or terminated pursuant to the termination provisions of the 
contract.


(End of Provision)


552.238-9  Period for Acceptance of Offers (A-FSS-12-C).

    As prescribed in 538.1203(b)(3), insert the following provision:
PERIOD FOR ACCEPTANCE OF OFFERS (A-FSS-12-C) (DATE)
    Paragraph (c) of the provision 52.212-1, Instructions to 
Offerors--Commercial Items, is revised to read as follows: ``The 
Offeror agrees to hold the prices in its offer for *--------* 
calendar days from the date of the offer, within which the offer may 
be accepted.''


(End of Provision)


552.238-10  Additional Offer Submission Instructions (Federal Supply 
Schedules) (SCP-FSS-001).

    As prescribed in 538.1203(b)(4), insert the following provision:
ADDITIONAL OFFER SUBMISSION INSTRUCTIONS (FEDERAL SUPPLY SCHEDULES) 
(DATE)
    (a) All information provided by the Offeror shall be current, 
accurate, and complete, and shall demonstrate a thorough 
understanding of the scope of this solicitation and where 
applicable, described in the Statement of Work. By signing the 
offer, the Offeror attests that there have been no changes to the 
text of this solicitation. Proposed exceptions shall be stated in 
writing and submitted with Administration/Contract Data.
    (b) All offers must include the following, as applicable to the 
solicitation. Any deficiencies or omitted information may result in 
the offer being returned without further consideration.
    (c) Solicitation response/vendor response document. (1) If 
available, the preferred submission method is electronically via 
eOffer (http://eOffer.gsa.gov). Offerors must have a digital 
certificate, which is available at the eOffer Web site, to submit an 
electronic offer.
    (2) Alternately, submit the entire paper solicitation with a 
signed Standard Form 1449, unless otherwise directed in the 
solicitation. The most recent refresh of this solicitation can be 
viewed on FedBizOpps. Submissions of previous versions received more 
than thirty (30) calendar days after the issuing date of the current 
version of the solicitation will be rejected.
    (d) Exhibit I--Administrative/Contract Data. (1) ``Pathway to 
Success'' training certificate. ``Pathway to Success'' training is 
available through the Vendor Support Center Web site at http://vsc.gsa.gov. Click on the tab ``Vendor Training'' to access this 
free, Web-based training. The training session is less than two 
hours total and covers the major factors your organization should 
consider prior to submitting an offer to a FSS solicitation.
    (2) If a consultant or an agent, other than an employee of the 
company, is being used during or after award, submit an agent 
authorization letter signed by a company official.
    (3) A copy of the current and up-dated registration in Central 
Contractor Registry (CCR).
    (4) The complete Online Representations and Certifications 
Application (ORCA). The information is current, accurate, and 
complete, and reflects the North American Industrial Classification 
System (NAICS) code(s) for this solicitation.
    (5) A completed Open Ratings, Inc. (ORI) Past Performance 
Evaluation and Order Form (references).
    (6) When applicable, a Small Business Subcontracting Plan. A 
sample outline that may be used in preparing a subcontracting plan 
is included at FedBizOpps. (ref. FAR 19.704).
    (7) Offeror shall provide the current contract number(s) and 
price lists of any other FSS Schedule contract(s).
    (8) If other than the manufacturer, Offeror must provide 
guaranteed source of supply letters (letters of commitment).
    (9) Additional solicitation specific instructions: *--------*.
    (d) Exhibit II, Technical Offer. (1) Technical Offer for 
supplies--
    (i) Refer to 552.212-73.
    (ii) Other pertinent factors, if any: *--------*
    (2) Technical Offer for Services: The technical offer is 
comprised of three factors--Factor One (Corporate Experience), 
Factor Two (Relevant Project Experience), and Factor Three (Past 
Performance). All offers shall address these factors as instructed 
in this provision. If the Offeror is proposing multiple Special Item 
Numbers (SINs), they shall clearly identify each SIN with the 
corresponding technical information. Please provide a narrative for 
each of the following sections to demonstrate the company's 
capabilities in satisfying ALL underlying requirements as listed in 
this provision.
    (i) Factor One--Corporate Experience: Submit a (three page 
maximum) narrative describing the company's corporate experience in 
a market relevant to this solicitation, regardless of the number of 
SINs being offered. Company must have provided the offered services 
for at least two years. At a minimum, the narrative must include the 
following:
    (A) Number of years of corporate experience; to include quality 
control measures to facilitate high quality

[[Page 4610]]

performance. A brief history of the organization's activities 
contributing to experience in the field and to the development of 
expertise and capabilities.
    (B) If applicable, Offeror must submit a Professional 
Compensation Plan as defined by 29 CFR 541 and in accordance with 
clause 52.222-16 and a copy of the Offeror's policy that addresses 
uncompensated overtime in accordance with provision 52.237-10, 
Identification of Uncompensated Overtime.
    (C) Additional solicitation specific instructions: *--------*
    (ii) Factor Two--Relevant Experience. (A) For each SIN, the 
Offeror must provide descriptions (four page maximum) of two (2) 
contracts/agreements/projects, with similar scope and complexity to 
the work relevant to the scope of the solicitation. Each description 
must demonstrate how it is relevant to the SIN(s).
    (B) To be relevant, the service must either have been completed 
within the last two years or be on-going. Additional solicitation 
specific instructions: *--------*
    (C) Each contract/agreement/project description shall include 
the following customer reference information:
    (1) Contract/Agreement/Project name;
    (2) Project description, including any challenges, actions and 
resolutions;
    (3) Dollar amount of contract;
    (4) Project duration, which includes the original estimated 
completion date and the actual completion date; and
    (5) Point of contact, telephone number, and email address.
    (D) Substitution For Relevant Contract/ Agreement/Project 
Experience--If contract/agreement/project experience does not exist, 
the Offeror may substitute relevant contract/agreement/project of 
predecessor company(ies) and personnel that have a vested interest 
in the company (i.e., substantial financial interest). If the 
Offeror chooses to make such a substitution, the narratives must 
clearly identify the predecessor company(ies) and personnel. (Refer 
to FAR 15.305(a)(2) and Comptroller General Decision: B-296197 June 
30, 2005).
    (iii) Factor Three--Past Performance: The Offeror shall provide 
a Past Performance Evaluation from Open Ratings, Inc. (ORI) dated 
within 12-months of offer submission. Offerors are responsible for 
payment to ORI for the Past Performance Evaluation. See attached 
form.
    (e) Exhibit III--Price Offer. (1) For supplies and/or services 
based on an established catalog price, Offerors must submit:
    (i) The commercial catalog, price list, schedule, and/or other 
pricing document(s) used as the basis of the offer; and
    (ii) The proposed discount(s) and/or concession(s) offered under 
this solicitation.
    (2) For supplies and/or services based on market prices without 
an established catalog price, the Offeror must submit a document 
including description of line item, proposed pricing, concessions, 
terms and conditions offered under the solicitation. Travel cost 
shall not be included in the proposed pricing. Additional 
solicitation specific instructions: *--------*
    (3) Any deficiencies or omitted information may result in the 
offer being returned without further consideration.


(End of Provision)


552.238-11  Additional Evaluation Factors for Award of Services (CI-
FSS-151).

    As prescribed in 538.1203(b)(5), insert the following provision:
ADDITIONAL EVALUATION FACTORS FOR AWARD OF SERVICES (CI-FSS-151) (DATE)
    The Government will consider award for a responsible Offeror, 
whose offer conforms to all solicitation requirements, is determined 
technically acceptable, has acceptable past performance, and whose 
prices are determined fair and reasonable.
    (a) Exhibit II--Technical Offer. Technical Offer will be 
reviewed, evaluated and rated acceptable or unacceptable based on 
the three evaluation factors described in this provision. Award will 
be made on a SIN basis. A rating of ``unacceptable'' under any 
evaluation factor, by SIN, will result in an ``unacceptable'' rating 
overall for that SIN. Offers determined unacceptable for all 
proposed SIN(s) will be rejected.
    (1) Factor One--Corporate Experience. Failure to provide the 
information as described in the 552.238-10 will result in an 
``unacceptable'' rating for that SIN.
    (i) *--------* years corporate experience in the industry 
relevant to the scope of the solicitation.
    (ii) Description of quality control measure(s) evaluated as set 
forth in FAR 12.208 and FAR 46.4.
    (iii) Review the compensation plans as set forth in FAR 52.222-
46 Evaluation of Compensation for Professional Employees and FAR 
52.237-10 Identification of Uncompensated Overtime for 
acceptability.
    (iv) Additional solicitation specific evaluation factors: *----
----*
    (2) Factor Two--Relevant Experience. The Offeror must 
demonstrate the satisfactory completion of contracts/agreements/
projects, which are of a similar size and scope as anticipated under 
this contract.
    (i) Contracts/agreements/projects have been completed within two 
years of the submission of the offer.
    (ii) In order for the projects to be acceptable, the Offeror 
must demonstrate a commitment to customer service, timeliness, 
quality of services and personnel provided, and resolution of 
conflicts.
    (3) Factor Three--Past Performance. Past performance evaluation 
will be conducted as set forth in FAR 12.206 and FAR 15.3.
    (i) Open Ratings Past Performance Evaluation will be considered, 
along with other information available to the Contracting Officer in 
determining the past performance rating of the Offeror. The 
government reserves the right to consider any other pertinent 
information.
    (ii) The Government will evaluate the Offeror's performance in 
the following key areas: overall performance, reliability, order 
accuracy, delivery/timeliness, quality, business relations, 
personnel, customer support, and responsiveness. Those Offerors 
demonstrating a pattern of consistent acceptable performance will 
receive an acceptable rating.
    (iii) Those Offerors with no relevant performance history will 
received a neutral rating.
    (b) Exhibit III--Price Offer. (1) In order for the offer to be 
rated acceptable, the Contracting Officer must determine that the 
proposed pricing is fair, reasonable, and supportable, based on the 
submission of sufficient pricing information as outlined in the 
552.238-65/CSP-1 and/or 552.238-66/CSP-2.
    (2) The proposed pricing must be advantageous to the government. 
If the pricing offered is not ``equal to or lower than'' the lowest 
billable net rate, an acceptable justification must be provided.
    (3) Additional evaluation factors unique to this solicitation: 
*------------------------*
    (c) The government reserves the right to award without 
discussions. Therefore, the Offeror's initial offer should contain 
the best terms from a price and technical standpoint.


(End of Provision)


552.238-12  Submission of Offers--Additional Instructions (CI-FSS-002).

    As prescribed in 538.1203(b)(6), insert the following provision:
SUBMISSION OF OFFERS--ADDITIONAL INSTRUCTIONS (CI-FSS-002) (DATE)
    Offerors are requested to submit a signed original and *--------
* copies of SF 1449 together with all addenda and attachments 
complete in every respect with the exception of oversized 
blueprints, drawings, or similar documents attached to the 
solicitation. Oversized blueprints, drawings, or similar documents 
are not required to be duplicated for the purpose of submitting a 
duplicate copy of the offer.


(End of Provision)


552.238-13  Impact of Mandatory Use on Quantities Ordered (B-FSS-97).

    As prescribed in 538.1203(b)(7), insert the following provision:
IMPACT OF MANDATORY USE ON QUANTITIES ORDERED (B-FSS-97) (DATE)
    This solicitation represents the first instance where the 
General Services Administration is the only agency listed as a 
mandatory user. It is not known how this change will impact on the 
quantities ordered under this contract.


(End of Provision)


552.238-14  Introduction of New Supplies/Services (INSS) (L-FSS-400).

    As prescribed in 538.1203(b)(8), insert the following provision:
INTRODUCTION OF NEW SUPPLIES/SERVICES (INSS) (L-FSS-400) (DATE)
    (a) Definition. Introduction of New Supplies/Services Special 
Item Number (INSS SIN) means a new or improved supply or service 
within the scope of the Federal Supply Schedule (FSS), but not 
currently

[[Page 4611]]

available under any Federal Supply Service contract--that provides a 
new service, function, task, or attribute that may provide a more 
economical or efficient means for ordering activities to accomplish 
their missions. It may significantly improve an existing supply or 
service. It may be a supply or service existing in the commercial 
market, but not yet introduced to the Federal Government.
    (b) Offerors are encouraged to introduce new or improved 
supplies or services via INSS SIN at any time by clearly identify 
the INSS SIN item in the offer.
    (c) The Contracting Officer has the sole discretion to determine 
whether a supply or service will be accepted as an INSS SIN item. 
The Contracting Officer will evaluate and process the offer and may 
perform a technical review. The INSS SIN provides temporary 
placement until the Contracting Officer formally categorizes the new 
supply or service.
    (d) If the Contractor has an existing schedule contract, the 
Government may, at the sole discretion of the Contracting Officer, 
modify the existing contract to include the INSS SIN item in 
accordance with 552.238-67, Modifications (Multiple Award Schedule) 
(currently 552.243-72).


(End of Provision)


552.238-15  Contract Price List (I-FSS-600).

    As prescribed in 538.1203(b)(9), insert the following provision:
CONTRACT PRICE LIST (I-FSS-600) (DATE)
    (a) Electronic Contract Data. (1) At the time of award, the 
Contractor will be provided instructions and is responsible for 
submitting electronic contract data in a prescribed electronic 
format as required by clause 552.238-71, Submission and Distribution 
of Authorized FSS Schedule Price Lists.
    (2) The Contractor will have a choice to transmit its file 
submissions electronically through Electronic Data Interchange (EDI) 
in accordance with the Federal Implementation Convention (IC) or use 
the application made available at the time of award. The 
Contractor's electronic files must be complete; correct; readable; 
virus-free; and contain only those supplies and services, prices, 
and terms and conditions that were accepted by the Government. They 
will be added to GSA's electronic ordering system known as GSA 
Advantage![supreg], a menu-driven database system that provides 
online access to contract ordering information, terms and 
conditions, up-to-date pricing, and the option to create an 
electronic order. The Contractor's electronic files must be received 
no later than sixty (60) days after award, unless addition time is 
approved by the Contracting Officer. Contractors should refer to 
clause 552.238-58 GSA Advantage![supreg] (I-FSS-597) for further 
information.
    (3) Further details on EDI, ICs, and GSA Advantage![supreg] can 
be found in clause 552.238-59 Electronic Commerce--FACNET (I-FSS-
599).
    (4) The Contractor is encouraged to place the GSA identifier 
(logo) on their website for those supplies or services covered by 
this contract. The logo can link to the Contractor's FSS price list. 
The identifier URL is located at www.gsa.gov/logo. All resultant 
``web price lists'' shown on the Contractor's website must be in 
accordance with section (b)(3)(ii) of this clause and nothing other 
than what was accepted/awarded by the Government may be included. If 
the Contractor elects to use contract identifiers on its website 
(either logos or contact number) the website must clearly 
distinguish between those items awarded on the contract and any 
other items offered by the Contractor on an open market basis.
    (5) The Contractor is responsible for keeping all electronic 
catalog data up to date; e.g., prices, supply deletions and 
replacements.
    (b) FSS Price List. (1) When requested by an ordering activity, 
the Contractor must prepare, print, and distribute a paper FSS Price 
List as required by clause 552.238-71 Submission and Distribution of 
Authorized FSS Price Lists. This must be done as set forth in this 
paragraph (b).
    (2) When required, the Contractor must prepare a paper FSS Price 
List by either:
    (i) Using the commercial catalog, price list, schedule, or other 
document as accepted by the Government, showing accepted discounts, 
and removing all items, terms, and conditions not accepted by the 
Government by lining out those items or by a stamp across the face 
of the item stating ``NOT UNDER CONTRACT'' or ``EXCLUDED''; or
    (ii) Composing a price list in which only those items, terms, 
and conditions accepted by the Government are included, and which 
contain only net prices, based upon the commercial price list less 
discounts accepted by the Government. In this instance, the 
Contractor must show on the cover page the notation, ``Prices Shown 
Herein are Net (discount deducted)''.
    (3) The FSS Price List format must include the following 
information:
    (i) Cover page. The cover page should include the following 
information:
    (A) Authorized FSS Price List.
    (B) On-line access to contract ordering information, terms and 
conditions, up-to-date pricing, and the option to create an 
electronic delivery order are available through GSA 
Advantage![supreg], a menu-driven database system. The INTERNET 
address GSA Advantage![supreg] is: www.GSAAdvantage.gov.
    (C) Schedule Title.
    (D) FSC Group, Part, and Section.
    (E) FSC Class(es)/Product Code(s) and/or Service Codes (as 
applicable).
    (F) Contract number.
    (G) For more information on ordering from Schedules click on the 
link titled ``Schedules'' under Acquisition Solutions from at 
gsa.gov/fas.
    (H) Contract period.
    (I) Contractor's name, address, email, fax number and phone 
number (as applicable).
    (J) Contractor's internet address/website where schedule 
information can be found (as applicable). Contract administration 
source (if different from preceding entry).
    (K) Business size.
    (L) This price list is current through modification/refresh 
number: (sequentially numbered).
    (ii) Customer information. The following information should be 
placed under this heading in consecutively numbered paragraphs in 
the sequence set forth in this provision. If this information is 
placed in another part of the FSS Price List, a table of contents 
must be shown on the cover page that refers to the exact location of 
the information.
    1. Table of awarded special item number(s) with appropriate 
cross-reference to category descriptions.
    2. Maximum order.
    3. Minimum order.
    4. Geographic coverage (delivery area).
    5. Point(s) of Production (city, county, and State or foreign 
country). All items are Trade Agreement Act, as amended, compliant.
    6. Discount from list prices or statement of net price.
    7. Quantity discounts.
    8. Prompt payment terms.
    9a. Notification that payment by credit cards must be accepted 
at or below the micro-purchase threshold.
    9b. Notification whether payment by credit cards are accepted or 
not accepted above the micro-purchase threshold.
    10. Foreign items (list items by country of origin).
    11a. Time of delivery. (Contractor insert number of days.)
    11b. Expedited Delivery. The Contractor will insert the sentence 
``Items available for expedited delivery are noted in this price 
list.'' under this heading. The Contractor may use a symbol of its 
choosing to highlight items in its price lists that have expedited 
delivery.
    11c. Overnight and 2-day delivery. The Contractor will indicate 
whether overnight and 2-day delivery are available. Also, the 
Contractor will indicate that the schedule customer may contact the 
Contractor for rates for overnight and 2-day delivery.
    11d. Urgent Requirements. The Contractor will note in its price 
list the ``Urgent Requirements'' clause of its contract and advise 
agencies that they can also contact the Contractor's representative 
to effect a faster delivery.
    12. F.O.B. point(s).
    13a. Ordering address(es).
    13b. Ordering procedures: For supplies and services, the 
ordering procedures, information on Blanket Purchase Agreements 
(BPA's) are found in Federal Acquisition Regulation (FAR) 8.405-3.
    14. Payment address(es).
    15. Warranty provision.
    16. Export packing charges, if applicable.
    17. Terms and conditions of payment by credit cards acceptance 
(any thresholds above the micro-purchase level).
    18. Terms and conditions of rental, maintenance, and repair (if 
applicable).
    19. Terms and conditions of installation (if applicable).
    20. Terms and conditions of repair parts indicating date of 
parts price lists and any discounts from list prices (if 
applicable).
    20a. Terms and conditions for any other services (if 
applicable).
    21. List of service and distribution points (if applicable).
    22. List of participating dealers (if applicable).

[[Page 4612]]

    23. Preventive maintenance (if applicable).
    24a. Special attributes such as environmental attributes (e.g., 
recycled content, energy efficiency, and/or reduced pollutants).
    24b. If applicable, indicate that Section 508 compliance 
information is available on Electronic and Information Technology 
(EIT) supplies and services and show where full details can be found 
(e.g. Contractor's Web site or other location). The EIT standards 
can be found at: www.Section508.gov.
    25. Data Universal Number System (DUNS) number.
    26. Notification regarding registration in Central Contractor 
Registration (CCR) database.
    27a. Identification of the lowest priced model number and lowest 
unit price for that model for each special item number awarded in 
the contract. This price is the Government price based on a unit of 
one, exclusive of any quantity/dollar volume, prompt payment, or any 
other concession affecting price. Those contracts that have unit 
prices based on the geographic location of the customer, should show 
the range of the lowest price, and cite the areas to which the 
prices apply.
    27b. If the Contractor is proposing hourly rates, a description 
of all corresponding commercial job titles, experience, functional 
responsibility and education for those types of employees or 
subContractors who will perform services shall be provided. If 
hourly rates are not applicable, indicate ``Not applicable'' for 
this item.
    (4) When requested, the Contractor must provide, in the format 
requested by the Contracting Officer (electronic or paper) of the 
FSS Price Lists (including covering letters) within 30 days after 
the date of award. Accuracy of information and computation of prices 
is the responsibility of the Contractor. Note: The removal discussed 
in subdivision (b)(2) of this provision must be accomplished prior 
to the printing and distribution of the FSS Lists.
    (5) Inclusion of incorrect information (electronically or paper) 
will cause the Contractor to reprint/resubmit/correct and 
redistribute the FSS Price List, and may constitute sufficient cause 
for Cancellation, applying the provisions of 52.212-4, Contract 
Terms and Conditions (paragraph (m), Termination for Cause), and 
application of any other remedies as provided by law--including 
monetary recovery.
    (6) In addition, one copy of the FSS Price List must be 
submitted to the: GSA, Federal Acquisition Service, National 
Customer Service Center (QC0CC), Bldg. 4, 1500 E. Bannister 
Road, Kansas City, MO 64131-3009, Telephone: 1 (800) 488-3111.
    Alternate I--use for Schedule 70 only. Replace paragraph (b) of 
the base clause with the following paragraph (b) (Date):
    (b) FSS Price List. (1) When submitting a paper offer, the 
Offeror should prepare a paper Information Technology Schedule Price 
List in accordance with the Attachment titled ``Guidelines for 
Format and Content of Authorized Information Technology Schedule 
Price List''. Two (2) copies of the proposed Information Technology 
Schedule Price List shall be submitted with the Offeror's proposal.
    (2) The Contracting Officer will return one copy of the 
Authorized Information Technology Schedule Price List to the 
Contractor with the notification of contract award. In accordance 
with GSAR clause 552.238-71 the Contractor may print and distribute 
the awarded price list without written approval from the Contracting 
Officer. The price list must include all applicable terms and 
conditions of the cited contract. The Contractor will be responsible 
for the accuracy of the price list.
    (3) As an option, the Contractor may provide one (1) copy 
(including cover letter) of the Authorized Information Technology 
Schedule Price List to the Contracting Officer for review prior to 
distribution. Accuracy of information and computation of prices is 
the responsibility of the Contractor.
    (4) The Contractor may formally print and distribute the 
Authorized Information Technology Schedule Price List. Inclusion of 
incorrect information (electronically or in paper) will cause the 
Contractor to reprint/resubmit/correct and redistribute the price 
list, and may constitute sufficient cause for Cancellation, applying 
the provisions of 52.212-4, Contract Terms and Conditions (paragraph 
(m), Termination for Cause) and application of any other remedies as 
provided by law--including monetary recovery.
    (6) In addition, one copy of the Authorized Information 
Technology Schedule Price List must be submitted to the: GSA, 
Federal Acquisition Service, National Customer Service Center 
(QC0CC), Bldg. 4, 1500 E. Bannister Road, Kansas City, MO 
64131-3009, Telephone: 1 (800) 488-3111.


(End of Provision)


552.538-16  Ordering Information (Federal Supply Schedules).

    As prescribed in 538.1203(b)(10), insert the following provision:
ORDERING INFORMATION (FEDERAL SUPPLY SCHEDULES) (DATE)
    (a) In accordance with the Placement of Orders clause of this 
solicitation, the Offeror elects to receive orders placed by either 
[ ] facsimile transmission or [ ] computer-to-computer Electronic 
Data Interchange (EDI).
    (b) An Offeror electing to receive computer-to-computer EDI is 
requested to indicate the name, address, and telephone number of the 
representative to be contacted regarding establishment of an EDI 
interface:

Name:------------------------------------------------------------------
Address:---------------------------------------------------------------
Telephone number:------------------------------------------------------
    (c) An Offeror electing to receive orders by facsimile 
transmission is requested to indicate the telephone number(s) for 
facsimile transmission equipment where orders should be forwarded:

Telephone number:------------------------------------------------------
Telephone number:------------------------------------------------------
Telephone number:------------------------------------------------------

    (d) For mailed orders, the Offeror is requested to include the 
postal mailing address(es) where paper form orders should be mailed.
Name:------------------------------------------------------------------
Address:---------------------------------------------------------------
-----------------------------------------------------------------------

    .(e) Offerors marketing through dealers are requested to 
indicate whether those dealers will be participating in the proposed 
contract:

YES---- NO----

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


(End of Provision)


552.238-17  Contractor's Remittance (Payment) Address.

    As prescribed in 538.1203(b)(11), insert the following provision:
CONTRACTOR'S REMITTANCE (PAYMENT) ADDRESS (DATE)
    (a) Payment by electronic funds transfer (EFT) is the preferred 
method of payment. However, under certain conditions, the ordering 
activity may elect to make payment by check. The Offeror shall 
indicate the payment address to which checks should be mailed for 
payment of proper invoices submitted under a resultant contract:

Payment:---------------------------------------------------------------
Address:---------------------------------------------------------------

    (b) Offeror shall furnish by attachment to this solicitation, 
the remittance (payment) addresses of all authorized participating 
dealers receiving orders and accepting payment by check in the name 
of the Contractor in care of the dealer, if different from their 
ordering address(es) specified elsewhere in this solicitation. If a 
dealer's ordering and remittance address differ, both must be 
furnished and identified as such.
    (c) All Offerors are cautioned that if the remittance (payment) 
address shown on an actual invoice differs from that shown in 
paragraph (b) of this provision or on the attachment, the remittance 
address(es) in paragraph (b) of this provision or attached will 
govern. Payment to any other address, except as provided for through 
EFT payment methods, will require an administrative change to the 
contract.

    Note: All orders placed against a Federal Supply Schedule 
contract are to be paid by the individual ordering activity placing 
the order. Each order will cite the appropriate ordering activity 
payment address, and proper invoices should be sent to that address. 
Proper invoices should be sent to GSA only for orders placed by GSA. 
Any other ordering activity's invoices sent to GSA will only delay 
your payment.



(End of Provision)


552.238-18  Final Proposal Revision (L-FSS-101).

    As prescribed in 538.1203(b)(12), insert the following provision:

[[Page 4613]]

FINAL PROPOSAL REVISION (L-FSS-101) (DATE)
    (a) Upon the conclusion of discussions the Contracting Officer 
will request a final proposal revision. Oral requests will be 
confirmed in writing.
    (b) The request will include--
    (i) Notice that discussions are concluded;
    (ii) Notice that this is the opportunity to submit a final 
proposal revision;
    (iii) The specified cutoff date and time;
    (iv) A statement that any modification proposed as a result of 
the final proposal revision must be received by the date and time 
specified and will be subject to the Late Submissions, 
Modifications, and Withdrawals of Proposals provision of this 
solicitation.
    (c) The Contracting Officer will not reopen discussions after 
receipt of final proposal revisions unless it is clearly in the 
interests of the Government to do so. If discussions are reopened, 
the Contracting Officer will issue an additional request for final 
proposal revision.
    (d) It is the Contracting Officer's desire to conclude 
negotiations by *--------*.


(End of Provision)


552.238-19  Use of Non-Government Employees to Review Offers.

    As prescribed in 538.1203(b)(13), insert the following provision:
USE OF NON-GOVERNMENT EMPLOYEES TO REVIEW OFFERS (DATE)
    (a) The Government may employ individual technical consultants/
advisors/contractors from the listed organizations in this provision 
to review limited portions of the technical, management and price 
proposals to assist the government in both pre-award and post-award 
functions.

*--------------------------------------*

    (b) These representatives will be used to advise on specific 
technical, management, and price matters and shall not, under any 
circumstances, be used as voting evaluators. However, the Government 
may consider the advice provided in its evaluation process. In 
addition, contractor personnel may be used in specific contract 
administration tasks (e.g., administrative filing, review of 
deliverables, etc.).
    (c) If so utilized, personnel from these organizations will be 
required to execute a non-disclosure and organizational conflict of 
interest statements.


(End of Provision)


552.238-20  Authorized Negotiators (K-FSS-1).

    As prescribed in 538.1203(b)(14), insert the following provision:
AUTHORIZED NEGOTIATORS (K-FSS-1) (DATE)
    The offeror shall, in the spaces provided, fill in the names of 
all persons authorized to negotiate with the Government in 
connection with this request for proposals or quotations:
*--------------------------------------*
*--------------------------------------*
*--------------------------------------*

    (List the names, titles, telephone numbers and electronic mail 
address of the authorized negotiators.)


(End of Provision)


552.238-21  Authentication Supplies and Services (CI-FSS-52).

    ----As prescribed in 538.1203(c)(1), insert the following clause:
AUTHENTICATION SUPPLIES AND SERVICES (CI-FSS-52) (DATE)
    (a) General Background. (1) Authentication Supplies and Services 
provide for authentication of individuals for purposes of physical 
and logical access control, electronic signature, and performance of 
E-business transactions and delivery of Government services. 
Authentication Supplies and Services consist of hardware, software 
components and supporting services that provide for identity 
assurance.
    (2) Homeland Security Presidential Directive 12 (HSPD-12), 
``Policy for a Common Identification Standard for Federal Employees 
and Contractors'' establishes the requirement for a mandatory 
Governmentwide standard for secure and reliable forms of 
identification issued by the Federal Government to its employees and 
Contractor employees assigned to Government contracts in order to 
enhance security, increase Government efficiency, reduce identity 
fraud, and protect personal privacy. Further, the Directive requires 
the Department of Commerce to promulgate a Federal standard for 
secure and reliable forms of identification within six months of the 
date of the Directive. As a result, the National Institute of 
Standards and Technology (NIST) released Federal Information 
Processing Standard (FIPS) 201: Personal Identity Verification of 
Federal Employees and Contractors on February 25, 2005. FIPS 201 
requires that the digital certificates incorporated into the 
Personal Identity Verification (PIV) identity credentials comply 
with the X.509 Certificate Policy for the U.S. Federal PKI Common 
Policy Framework. In addition, FIPS 201 requires that Federal 
identity badges referred to as PIV credentials, issued to Federal 
employees and Contractors comply with the Standard and associated 
NIST Special Publications 800-73, 800-76, 800-78, and 800-79.
    (b) Special Item Numbers. The General Services Administration 
has established the E-Authentication Initiative (see URL: http://cio.gov/ eauthentication) to provide common infrastructure for the 
authentication of the public and internal federal users for logical 
access to Federal E-Government applications and electronic services. 
To support the government-wide implementation of HSPD-12 and the 
Federal E-Authentication Initiative, GSA is establishing the 
following Special Item Numbers (SINs):
     SIN 132-60: Access Certificates for Electronic Services 
(ACES) Program. This program provides identity management and 
authentication services and ACES digital certificates for use 
primarily by external end users to access Federal Government 
electronic services and transactions in accordance with the X.509 
Certificate Policy for the Federal ACES Program.
     SIN 132-61: PKI Shared Service Providers (PKI SSP) 
Program. This program provides PKI services and digital certificates 
for use by Federal employees and Contractors to the Federal 
Government in accordance with the X.509 Certificate Policy for the 
U.S. Federal PKI Common Policy Framework.
     SIN 132-62: HSPD-12 Supply and Service Components. SIN 
132-62 is established for supplies and services for agencies to 
implement the requirements of HSPD-12, FIPS-201 and associated NIST 
special publications. The HSPD-12 implementation components 
specified under this SIN are:

PIV Enrollment and Registration Services and Supplies Hardware and 
Software Supplies Deployment Services\Managed Service;
PIV Systems Infrastructure Services and Supplies Hardware and 
Software Supplies Deployment Services\Managed Service;
PIV Card Management and Production Services, and Supplies Hardware 
and Software Products Deployment Services\Managed Services;
PIV Card Finalization Services and Supplies Hardware and Software 
Products Deployment Services/Managed Services;
PIV System Integration Services, and Supplies (Bundled) ``Pure'' 
Integration Services Turn-Key Integrated Services and Supplies 
Managed Services;
Physical Access Control Supplies and Services;
Logical Access Control Supplies and Services; and
Approved FIPS 201-Compliant Supplies and Services.

    (c) Qualification Information. (1) All of the supplies and 
services for the SINs listed in paragraph (b) of this clause must be 
qualified as being compliant with Governmentwide requirements before 
they will be included on a FSS Information Technology (IT) Schedule 
contract. The Qualification Requirements and associated evaluation 
procedures against the Qualification Requirements for each SIN and 
the specific Qualification Requirements for HSPD-12 implementation 
components are presented at the following URL: http://www.idmanagement.gov.
    (2) In addition, the National Institute of Standards and 
Technology (NIST) has established the NIST Personal Identity 
Verification Program (NPIVP) to evaluate integrated circuit chip 
cards and supplies against conformance requirements contained in 
FIPS 201. FSS has established the FIPS 201Evaluation Program to 
evaluate other supplies needed for agency implementation of HSPD-12 
requirements where normative requirements are specified in FIPS 201 
and to perform card and reader interface testing for 
interoperability. Products that are approved as FIPS-201 compliant 
through these evaluation and testing programs may be offered 
directly through SIN 132-62 under the category ``Approved FIPS 201-
Compliant Products and services.
    (d) Qualification Requirements. Offerors proposing supplies and 
services under

[[Page 4614]]

Special Item Numbers (SINs) 132-60, 132-61 and 132-62 are required 
to provide the following:
    (1) Proposed items must be determined to be compliant with 
Federal requirements for that Special Item Number. Qualification 
Requirements and procedures for the evaluation of supplies and 
services are posted at the URL: http://www.idmanagement.gov. GSA 
will follow these procedures in qualifying Offeror's supplies and 
services against the Qualification Requirements applicable to SIN. 
Offerors must submit all documentation certification letter(s) for 
HSPD-12, SINs 132-60, 132-61 and 132-62 at the same time as 
submission of proposal. Award will be dependent upon receipt of 
official documentation from the Acquisition Program Management 
Office (APMO) listed in this clause verifying satisfactory 
qualification against the Qualification Requirements of the proposed 
SIN(s).
    (2) After award, Contractor agrees that certified supplies and 
services will not be offered under any other SIN on any FSS Multiple 
Award Schedule.
    (3)(i) If the Contractor changes the supplies or services 
previously qualified, GSA may require the Contractor to resubmit the 
supplies or services for re-qualification.
    (ii) If the Federal Government changes the qualification 
requirements or standards, Contractor must resubmit the supplies and 
services for re-qualification.
    (e) Demonstrating Conformance. The Federal Government has 
established Qualification Requirements for demonstrating conformance 
with the Standards. The following Web sites provide additional 
information regarding the evaluation and qualification processes:
    (1) For Access Certificates for Electronic Services (ACES) and 
PKI Shared Service Provider (SSP) Qualification Requirements and 
evaluation procedures: http://www.idmanagement.gov;
    (2) For HSPD-12 Product and Service Components Qualification 
Requirements and evaluation procedures: http://www.idmanagement.gov;
    (3) For FIPS 201 compliant supplies and services qualification 
and approval procedures: http://www.csrc.nist.gov/piv-project and 
http://www.smart.gov.
    (f) Acquisition Program Management Office (APMO). GSA has 
established the APMO to provide centralized technical oversight and 
management regarding the qualification process to industry partners 
and Federal agencies. Contact the following APMO for information on 
the E-Authentication Qualification process.
    (1) The Acquisition Program Management Office point-of-contact 
for Access Certificates for Electronic Services (ACES--SIN 132-60) 
is: Stephen P. Duncan, Program Manager, E-Authentication Program 
Management Office, 2011 Crystal Drive, Suite 911, Arlington, VA 
22202, [email protected], 703-872-8537.
    (2) The Acquisition Program Management Office Point-of-contact 
for Shared Services Provider (SSP) Program (SIN 132-61) is: Judith 
Spencer, Office of Electronic Gov't & Technology, 1800 F Street, 
NW., Room 2011, Washington, DC 20405, [email protected], 202-
208-6576.
    (3) The Acquisition Program Management Office point-of-contact 
for HSPD-12 Products and Services or bundled Solutions (SIN 132-62) 
is: Mike Brooks, Director, Center for Smartcard Solutions, Office of 
Center for Smartcard Solutions, 1800 F Street, NW., Room 5010, 
Washington, DC 20405, 202-501-2765 (telephone), 202-208-3133 (fax).
    (4) The Acquisition Program Management Office point-of-contact 
for FIPS 201 Evaluation Program Approved Products List (Sin 132-62) 
is: April Giles, FIPS 201 Evaluation Program Chief Architect, 
Identity Management Division, GSA Office of Governmentwide Policy, 
202-501-1123 (telephone).


(End of Provision)


552.238-22  Indemnification and Liability (CI-FSS-053).

    As prescribed in 538.1203(c)(2), insert the following clause:
INDEMNIFICATION AND LIABILITY (CI-FSS-053) (DATE)
    For services related to hazardous substances or wastes under 
this contract, it is understood that the General Services 
Administration (GSA) and/or Department of Veterans Affairs (VA) does 
not become an owner, operator, generator, arranger, or transporter 
of hazardous substances or wastes by executing a schedule contract 
or by the award of a task order by an ordering activity. As a 
result, GSA/VA shall not incur any liability under any environmental 
laws for contamination to the extent resulting from the negligent 
acts or omissions of a schedule Contractor performing the services. 
In addition, the Contractor shall be liable for, and shall indemnify 
and hold harmless the GSA/VA against, all actions or claims for loss 
of or damage to property or the injury or death of persons to the 
extent resulting from the fault, negligence, or wrongful act or 
omission of the Contractor, its agents, or employees. EXCEPTION: The 
aforementioned does not apply when GSA/VA is the ordering activity 
and is procuring the services for property it owns and/or has legal 
jurisdiction.


(End of Clause)


552.238-23  Organizational Conflicts of Interest (CI-FSS-054).

    As prescribed in 538.1203(c)(3), insert the following clause:
ORGANIZATIONAL CONFLICTS OF INTEREST (CI-FSS-054) (DATE)
    (a) Definitions.
    Contractor means the person, firm, unincorporated association, 
joint venture, partnership, or corporation that is a party to this 
contract.
    Contractor and its affiliates and Contractor or its affiliates 
refers to the Contractor, its chief executives, directors, officers, 
subsidiaries, affiliates, subcontractors at any tier, and 
consultants and any joint venture involving the Contractor, any 
entity into or with which the Contractor subsequently merges or 
affiliates, or any other successor or assignee of the Contractor.
    An Organizational conflict of interest exists when the nature of 
the work to be performed under a proposed ordering activity 
contract, without some restriction on ordering activities by the 
Contractor and its affiliates, may either (i) result in an unfair 
competitive advantage to the Contractor or its affiliates or (ii) 
impair the Contractor's or its affiliates' objectivity in performing 
contract work.
    (b) The Contractor shall promptly notify the Ordering Activity 
of any known or reasonably anticipated potential organizational 
conflicts of interest when submitting a quote or proposal in 
response to a solicitation for services, or once the conflict of 
interest becomes apparent, whichever circumstance arises first.
    (c) The Contractor shall not provide any personnel to perform 
services under this contract that it knows or reasonably anticipates 
will result in an individual conflict of interest. In the event that 
a conflict of interest arises involving the Contractor's personnel, 
the Contractor shall promptly notify the Ordering Activity of the 
facts and circumstances and take all necessary steps to mitigate or 
eliminate the conflict of interest while ensuring acceptable service 
delivery.
    (d) To avoid an organizational, individual or financial conflict 
of interest and to avoid prejudicing the best interests of the 
ordering activity, ordering activities may place restrictions on the 
Contractor(s), its affiliates, chief executives, directors, 
subsidiaries and subcontractors at any tier when placing orders 
against schedule contracts. Such restrictions shall be consistent 
with FAR 9.505 and shall be designed to avoid, neutralize, or 
mitigate organizational conflicts of interest that might otherwise 
exist in situations related to individual orders placed against the 
schedule contract. Examples of situations, which may require 
restrictions, are provided at FAR 9.508.


(End of Clause)


552.238-24  Section 508 Compliance (CI-FSS-056).

    As prescribed in 538.1203(c)(4), insert the following clause:
SECTION 508 COMPLIANCE (CI-FSS-056) (DATE)
    If applicable, Section 508 compliance information on the 
supplies and services in this contract are available in Electronic 
and Information Technology (EIT) at the following:

    Note: Contractor should insert the Contractor's Web site or 
other location where full details can be found.

    The EIT standard can be found at: www.Section508.gov.


(End of Clause)


552.238-25  Characteristics of Electric Current (C-FSS-412).

    As prescribed in 538.1203(c)(5), insert the following clause:

[[Page 4615]]

CHARACTERISTICS OF ELECTRIC CURRENT (C-FSS-412) (DATE)
    Contractors supplying equipment which uses electrical current 
are required to supply equipment suitable for the electrical system 
at the location at which the equipment is to be used as specified on 
the order.


(End of Clause)


552.238-26  Separate Charge For Performance Oriented Packaging (POP) 
(D-FSS-447).

    As prescribed in 538.1203(c)(6), insert the following clause:
SEPARATE CHARGE FOR PERFORMANCE ORIENTED PACKAGING (POP) (D-FSS-447) 
(DATE)
    (a) Offerors are requested to quote a separate charge for 
providing preservation, packaging, packing, and marking and labeling 
of domestic and overseas HAZMAT SURFACE SHIPMENTS in compliance with 
all requirements of the following:
    (1) International Maritime Dangerous Goods (IMDG) Code 
established by the International Maritime Organization (IMO) in 
accordance with the United Nations (UN) Recommendations on the 
Transportation of Dangerous Goods (Note: Marine pollutants must be 
labeled as required by the IMDG Code);
    (2) The performance oriented packaging requirements contained in 
the U. S. Department of Transportation (DOT) Hazardous Materials 
Regulations (HMR; 49 CFR Parts 171-180) effective October 1, 1991 
(Note: The ``Combustible'' and ``ORM'' classifications contained 
these requirements are not permitted by the IMDG Code and can not be 
used);
    (3) Occupational Safety and Health Administration (OSHA) 
Regulations 29 CFR Parts 1910.101-1910.120 and 1910.1000-1910.1500, 
relating to Hazardous and Toxic Substances; and
    (4) Any preservation, packaging, packing, and marking and 
labeling requirements contained elsewhere in the solicitation.
    (b) Offerors are requested to list the hazardous material item 
to which the separate charge applies in the spaces provided in this 
clause or on a separate attachment. These separate charges will be 
accepted as part of the award, if considered reasonable, and shall 
be included in the Contractor's published catalog and/or price list.

ITEMS (NSN'S, SIN'S or Descriptive Name of Articles, as appropriate) 
Packaging
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------

Charge for Performance Oriented
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------

    (c) Ordering activities will not be obligated to utilize the 
Contractor's services for Performance Oriented Packaging, and they 
may obtain such services elsewhere if desired. However, the 
Contractor shall provide items in Performance Oriented Packaging 
when such packing is specified on the delivery order. The 
Contractor's contract price and the charge for Performance Oriented 
Packaging will be shown as separate entries on the delivery order.
    (d) The test reports showing compliance with package 
requirements will be made available to contract administration/
management representatives upon request.


(End of clause)


552.238-27  Special Packing (D-FSS-464).

    As prescribed in 538.1203(c)(7), insert the following clause:
SPECIAL PACKING (D-FSS-464) (DATE)
    (a) Bidders are requested to furnish, in the spaces provided 
elsewhere in this invitation, additional charges for Level B and 
Level A preservation, packaging and packing (hereinafter referred to 
as ``packing'') in accordance with *--------*. These additional 
charges shall include any differentials in transportation and other 
costs incidental to handling and shipment of the items to 
destination.
    (b) Additional charges submitted for Level B and/or Level A 
packing will not be considered in evaluating bids. However, award 
will be made for such packing to the bidder receiving award on the 
basic item when the prices offered for the higher level of packing 
are considered reasonable.
    (c) Ordering activities will not be obligated to utilize the 
Contractor's services for special packing awarded under this 
invitation, and they may obtain such services elsewhere if desired. 
However, the Contractor shall fulfill all orders for items packed 
Level B or Level A at the accepted price when such packing is 
specified on the purchase order.


(End of clause)


552.238-28  Export Packing (D-FSS-465).

    As prescribed in 538.1203(c)(8), insert the following clause:
EXPORT PACKING (D-FSS-465) (DATE)
    (a) Offerors are requested to quote, in the price list 
accompanying their offer (or by separate attachment), additional 
charges or net prices covering delivery of the items furnished with 
commercial and/or Government export packing. Government export 
packing, if offered, shall be in accordance with *--------*. If 
commercial export packing is offered, the offer or price list shall 
include detailed specifications describing the packing to be 
furnished at the price quoted.
    (b) Ordering activities will not be obligated to utilize the 
Contractor's services for export packing accepted under this 
solicitation, and they may obtain such services elsewhere if 
desired. However, the Contractor shall furnish items export packed 
when such packing is specified on the purchase order.


(End of clause)


552.238-29  Marking and Documentation Requirements Per Shipment (D-FSS-
471).

    As prescribed in 538.1203(c)(9), insert the following clause:
MARKING AND DOCUMENTATION REQUIREMENTS PER SHIPMENT (D-FSS-471) (DATE)
    It shall be the responsibility of the ordering office to 
determine the full marking and documentation requirements necessary 
under the various methods of shipment authorized by the contract. 
Set forth in this clause is the minimum information and 
documentation that will be required for shipment. In the event the 
ordering office fails to provide the essential information and 
documentation, the Contractor shall, within three days after receipt 
of order, contact the ordering office and advise them accordingly. 
The Contractor shall not proceed with any shipment requiring 
transshipment via U.S. Government facilities without the stated 
prerequisites in this clause:
    Direct Shipments. The Contractor shall mark all items ordered 
against this contract with indelible ink, paint or fluid, as 
follows:
    (a) Traffic Management or Transportation Officer at FINAL 
destination.
    (b) Ordering Supply Account Number.
    (c) Account number.
    (d) Delivery Order or Purchase Order Number.
    (e) National Stock Number, if applicable; or Contractor's item 
number.
    (f) Box -------- of -------- Boxes.
    (g) Nomenclature (brief description of items).


(End of clause)


552.238-30  Inspection (E-FSS-521-D).

    As prescribed in 538.1203(c)(10), insert the following clause:
INSPECTION (E-FSS-521-D) (DATE)
    Inspection of all purchases under this contract will be made at 
destination by an authorized Government representative.


(End of clause)


552.238-31  Emergency/Expedited Delivery Times (I-FSS-051).

    As prescribed in 538.1203(c)(11), insert the following clause:
EMERGENCY/EXPEDITED DELIVERY TIMES (I-FSS-051) (DATE)
    In the case of an Emergency, ordering activities may require 24-
hour access or delivery. The Offeror is requested to annotate on the 
offer or by a separate attachment a willingness to provide this 
service and identify any additional cost associated with such 
request.
    (a) AbilityOne (formerly JWOD) (NIB/NISH) RETURN POLICY 
(Applicable to all AbilityOne (formerly JWOD) (NIB/NISH) 
distributors). The AbilityOne (formerly JWOD) Program stands behind 
the quality of its supplies and will replace or credit authorized 
AbilityOne (formerly JWOD) distributors 100% of the purchase price 
for any merchandise that is defective upon

[[Page 4616]]

receipt by the Contractor and/or its carrier. In such cases, the 
distributor should contact the AbilityOne (formerly JWOD) Program 
for instructions on whether to dispose of or return the defective 
supply to the manufacturing agency. NIB and NISH must be notified of 
damaged supply (s) within 48 hours of receipt of supply by the 
Contractor. Any defective merchandise must be identified and 
returned within one year of receipt.
    (b) In the case of damaged merchandise that was shipped FOB 
Destination, the distributor should contact the AbilityOne (formerly 
JWOD) Program for instructions on handling the damaged goods. 
Damaged goods must be identified in writing within five (5) days of 
signing the bill of lading and damage should be noted on the bill of 
landing before the receiving personnel sign for the shipment. For 
damaged merchandise that was shipped FOB Origin (using the 
distributor's freight carriers), the distributor must file a claim 
with the freight carrier.
    (c) In addition to paragraph (a) of this clause, the AbilityOne 
(formerly JWOD) Program allows returns on a limited basis for 
supplies that are not damaged or defective but unsold by wholesale 
or commercial distributors (see attached AbilityOne (formerly JWOD) 
Return Policy effective May 1, 2003.


(End of clause)


552.238-32  Delivery Prices (F-FSS-202-G).

    As prescribed in 538.1203(c)(12), insert the following clause:
DELIVERY PRICES (F-FSS-202-G) (DATE)
    (a) Prices offered must cover delivery as provided in this 
clause, to destinations located within the 48 contiguous States and 
the District of Columbia.
    (1) Delivery to the door of the specified Government activity by 
freight or express common carriers on articles for which store-door 
delivery is provided, free or subject to a charge, pursuant to 
regularly published tariffs duly filed with the Federal and/or State 
regulatory bodies governing such carrier; or, at the option of the 
Contractor, by parcel post on mailable articles, or by the 
Contractor's vehicle. Where store-door delivery is subject to a 
charge, the Contractor shall (a) place the notation ``Delivery 
Service Requested'' on bills of lading covering such shipments, and 
(b) pay such charge and add the actual cost thereof as a separate 
item to his invoice.
    (2) Delivery to siding at destinations when specified by the 
ordering office, if delivery is not covered under paragraph (a)(1) 
of this clause.
    (3) Delivery to the freight station nearest destination when 
delivery is not covered under paragraph (a)(1) or (a)(2) of this 
clause.
    (b) The Offeror is requested to indicate whether or not prices 
submitted cover delivery f.o.b. destination in Alaska, Hawaii, and 
the Commonwealth of Puerto Rico:

------------------------------------------------------------------------
                                                         (Yes)     (No)
------------------------------------------------------------------------
Alaska................................................  .......  .......
Hawaii................................................  .......  .......
Puerto Rico...........................................  .......  .......
------------------------------------------------------------------------

    (c) When deliveries are made to destinations outside the 
contiguous 48 States; i.e., Alaska, Hawaii, and the Commonwealth of 
Puerto Rico, and are not covered by paragraph (b) of this clause, 
the following conditions will apply:
    (1) Delivery will be f.o.b. inland carrier, point of exportation 
(FAR 52.247-38), with the transportation charges to be paid by the 
Government from point of exportation to destination in Alaska, 
Hawaii, or the Commonwealth of Puerto Rico, as designated by the 
ordering office. The Contractor shall add the actual cost of 
transportation to destination from the point of exportation in the 
48 contiguous States nearest to the designated destination. Such 
costs will, in all cases, be based upon the lowest regularly 
established rates on file with the Interstate Commerce Commission, 
the U.S. Maritime Commission (if shipped by water), or any State 
regulatory body, or those published by the U.S. Postal Service; and 
must be supported by paid freight or express receipt or by a 
statement of parcel post charges including weight of shipment.
    (2) The right is reserved to ordering agencies to furnish 
Government bills of lading.
-----------------------------------------------------------------------
-----------------------------------------------------------------------


(End of clause)


552.238-33  Additional Service Charge for Delivery Within Consignee's 
Premises (F-FSS-244-B).

    As prescribed in 538.1203(c)(13), insert the following clause:
ADDITIONAL SERVICE CHARGE FOR DELIVERY WITHIN CONSIGNEE'S PREMISES (F-
FSS-244-B) (DATE)
    (a) Offerors are requested to insert, in the spaces provided in 
this clause or by attachment hereto, a separate charge for 
``Delivery Within Consignee's Premises'' applicable to each shipping 
container to be shipped. (Articles which are comparable in size and 
weight, and for which the same charge is applicable, should be 
grouped under an appropriate item description.) These additional 
charges will be accepted as part of the award, if considered 
reasonable, and shall be included in the Contractor's published 
catalog and/or price list.
    (b) Ordering activities are not obligated to issue orders on the 
basis of ``Delivery Within Consignee's Premises,'' and Contractors 
may refuse delivery on that basis provided such refusal is 
communicated in writing to the ordering activity issuing such orders 
within 5 days of the receipt of such order by the Contractor and 
provided further, that delivery is made in accordance with the other 
delivery requirements of the contract. Failure of the Contractor to 
submit this notification within the time specified shall constitute 
acceptance to furnish ``Delivery Within Consignee's Premises'' at 
the additional charge awarded. When an ordering activity issues an 
order on the basis of ``Delivery Within Consignee's Premises'' at 
the accepted additional charge awarded and the Contractor accepts 
such orders on that basis, the Contractor will be obligated to 
provide delivery ``F.o.b. Destination, Within Consignee's Premises'' 
in accordance with FAR 52.247-35, which is then incorporated by 
reference, with the exception that an additional charge as provided 
herein is allowed for such services. Unless otherwise stipulated by 
the Offeror, the additional charges awarded hereunder may be applied 
to any delivery within the 48 contiguous States and the District of 
Columbia.
    (c) When exercising their option to issue orders on the basis of 
delivery service as provided herein, ordering activities will 
specify ``Delivery Within Consignee's Premises'' on the order, and 
will indicate the exact location to which delivery is to be made. 
The Contractor's delivery price and the additional charge(s) for 
``Delivery Within Consignee's Premises'' will be shown as separate 
entries on the order.

ITEMS (NSN's or Special Item Numbers or Descriptive Name of 
Articles)
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------

ADDITIONAL CHARGE (Per shipping container) FOR ``DELIVERY WITHIN 
CONSIGNEE'S PREMISES''
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------


552.238-34  Additional Service Charge for Delivery Within Consignee's 
Premises (Specification for Inside Delivery) (F-FSS-244-C).

    As prescribed in 538.1203(c)(14), insert the following clause:
ADDITIONAL SERVICE CHARGE FOR DELIVERY WITHIN CONSIGNEE'S PREMISES (F-
FSS-244-C) (DATE)
    The Government reserves the right to require ``delivery within 
consignee's premises'' on any order placed against this contract. 
When ``Inside Delivery'' is specified on the purchase order the 
Contractor will be required to provide delivery in accordance with 
FAR 52.247-35, which is then incorporated by reference, with the 
exception that an additional charge as provided herein is allowed 
for this service. The Contractor will be paid for this additional 
service at the following rates which will be shown as a separate 
item on the order:

------------------------------------------------------------------------
Number of units of *--------* to be
   delivered ``within consignee's                    Rate
             premises''
------------------------------------------------------------------------
      *----------------*                   *----------------*
      *----------------*                   *----------------*
      *----------------*                   *----------------*
      *----------------*                   *----------------*
------------------------------------------------------------------------



(End of clause)

[[Page 4617]]

552.238-35  Shipping Points (F-FSS-712-B).

    As prescribed in 538.1203(c)(15), insert the following clause:
SHIPPING POINTS (F-FSS-712-B) (DATE)
    Offerors submitting F.O.B. origin (or F.O.B. shipping point) 
prices shall indicate, in the spaces provided, the complete address 
(street, city, and State) from which the items offered will be 
shipped, and the name of the rail carrier serving plant (if any). If 
more than one shipping point is designated for an item, ordering 
activities will have the option of specifying the shipping point 
unless the Offeror otherwise qualifies his offer:

------------------------------------------------------------------------
    Item Nos.       Name of facility       Address        Rail carrier
------------------------------------------------------------------------
         ------             ------             ------            ------
         ------             ------             ------            ------
         ------             ------             ------            ------
------------------------------------------------------------------------



(End of clause)


552.238-36  Contact for Contract Administration (G-FSS-900-C).

    As prescribed in 538.1203(c)(16), insert the following clause:
CONTACT FOR CONTRACT ADMINISTRATION (G-FSS-900-C) (DATE)
    (a) Offerors should complete paragraphs (a) and (b) if providing 
both domestic and overseas delivery. Complete paragraph (a) if 
providing domestic delivery only. Complete paragraph (b) if 
providing overseas delivery only.
    (b) The Contractor shall designate a person to serve as the 
contract administrator for the contract both domestically and 
overseas. The contract administrator is responsible for overall 
compliance with contract terms and conditions. The contract 
administrator is also the responsible official for issues concerning 
552.238-74, Industrial Funding Fee and Sales Reporting (July 2003), 
including reviews of Contractor records. The Contractor's 
designation of representatives to handle certain functions under 
this contract does not relieve the contract administrator of 
responsibility for contract compliance. Any changes to the 
designated individual must be provided to the Contracting Officer in 
writing, with the proposed effective date of the change.
    (c) Domestic:

Name
Title
Address
Zip Code
Telephone No. (--------) Fax No.
E-Mail Address

    (d) Overseas: Overseas contact points are mandatory for local 
assistance with the resolution of any delivery, performance, or 
quality complaint from customer agencies. (Also, see the requirement 
in 552.238-47, Parts and Service (I-FSS-594).) At a minimum, a 
contact point must be furnished for each area in which deliveries 
are contemplated, e.g., Europe, South America, Far East, etc.

Name
Title
Address
Zip Code
Telephone No. (--------) Fax No.
E-Mail Address


(End of clause)


552.238-37  Vendor Managed Inventory (VMI) Program (MAS) (G-FSS-906).

    As prescribed in 538.1203(c)(17), insert the following clause:
VENDOR MANAGED INVENTORY (VMI) PROGRAM (MAS) (G-FSS-906) (DATE)
    (a) The term ``Vendor Managed Inventory'' describes a system in 
which the Contractor monitors and maintains specified inventory 
levels for selected items at designated stocking points. VMI enables 
the Contractor to plan production and shipping more efficiently. 
Stocking points benefit from reduced inventory but steady stock 
levels.
    (b) Contractors that commercially provide a VMI-type system may 
enter into similar partnerships with customers under a Blanket 
Purchase Agreement.


(End of clause)


552.238-38  Order Acknowledgement (G-FSS-907).

    As prescribed in 538.1203(c)(18), insert the following clause:
ORDER ACKNOWLEDGEMENT (G-FSS-907) (DATE)
    Contractors shall acknowledge only those orders which state 
``Order Acknowledgement Required.'' These orders shall be 
acknowledged within 10 days after receipt. Such acknowledgement 
shall be sent to the activity placing the order and contain 
information pertinent to the order, including the anticipated 
delivery date.


(End of clause)


552.238-39  Urgent Requirements (I-FSS-140-B).

    As prescribed in 538.1203(c)(19), insert the following clause:
URGENT REQUIREMENTS (I-FSS-140-B) (DATE)
    When the Federal Supply Schedule contract delivery period does 
not meet the bona fide urgent delivery requirements of an ordering 
agency, agencies are encouraged, if time permits, to contact the 
Contractor for the purpose of obtaining accelerated delivery. The 
Contractor shall reply to the inquiry within 3 workdays after 
receipt. (Telephonic replies shall be confirmed by the Contractor in 
writing.) If the Contractor offers an accelerated delivery time 
acceptable to the ordering agency, any order(s) placed pursuant to 
the agreed upon accelerated delivery time frame shall be delivered 
within this shorter delivery time and in accordance with all other 
terms and conditions of the contract.


(End of clause)


552.238-40  Post-Award Samples (H-FSS-505).

    As prescribed in 538.1203(c)(20), insert the following clause:
POST-AWARD SAMPLES (H-FSS-505) (DATE)
    (a) Within 20 days after approval of the brochure proof, 
Contractors who have received an award on carpet items are required 
to:
    (1) Furnish the Contracting Officer with 5 sets (by sets, not 
loosely packed) of samples approximately 12 by 12 inches of all 
patterns and/or colors awarded.
    (2) Furnish such additional sets of samples as may be requested 
during the contract period.
    (3) Furnish a set of small cuttings approximately 3 by 5 inches 
of each quality carpet awarded to all ordering activities to which 
brochures are mailed, except that such sample cuttings need not be 
furnished when the brochure distributed by the Contractor was fully 
swatched with all available colors for each quality carpet awarded.
    (4) Furnish sets of 3 by 5 inch samples to any agency when 
specifically requested to do so notwithstanding the fact that the 
brochure was fully swatched.
    (5) Furnish the Contracting Officer with one 18 inch by 24 inch 
sample of each quality carpet and in each color or pattern covered 
by the contract, with the clear understanding that the Government 
reserves the right at its option to request one additional 18 inch 
by 24 inch sample in any one or all qualities in each pattern and/or 
color specified, and the Contractor agrees to honor such request. 
These samples will be returned at the Contractor's expense after 
expiration of the contract provided they have not been consumed as a 
result of the Government's sample requirements.
    (b) Each individual sample, or cutting, shall bear the 
Contractor's name, manufacturer's name, brand or quality name, 
pattern or color number and name, and the National Stock Number.


(End of clause)

[[Page 4618]]

552.238-41  Guaranteed Minimum (I-FSS-106).

    As prescribed in 538.1203(c)(21), insert the following clause:
GUARANTEED MINIMUM (I-FSS-106) (DATE)
    The minimum that the Government agrees to order during the 
period of this contract is $2,500. If the Contractor receives total 
orders for less than $2,500 during the term of the contract, the 
Government will pay the difference between the amount ordered and 
$2,500:
    (a) Payment of any amount due under this clause shall be 
contingent upon the Contractor's timely submission of GSA Form 72A 
reports (see GSAR 552.238-74 ``Industrial Funding Fee and Sales 
Reporting'') during the period of the contract and receipt of the 
close-out sales report pursuant to GSAR 552.238-74.
    (b) The guaranteed minimum applies only if the contract expires 
or contract cancellation is initiated by the Government. The 
guaranteed minimum does not apply if the contract is terminated for 
cause or if the contract is canceled at the request of the 
Contractor.


(End of clause)


552.238-42  Restriction on the Acceptance of Orders (I-FSS-107).

    As prescribed in 538.1203(c)(22), insert the following clause:
RESTRICTION ON THE ACCEPTANCE OF ORDERS (I-FSS-107) (DATE)
    No orders shall be accepted from, and no deliveries shall be 
made to any ship of the United States Navy or the Military Sealift 
Command. This prohibition shall include all electrostatic copying 
equipment, supplies (toner, developer, fuser oil) for such 
equipment, repair or replacement parts for such equipment, and 
maintenance or repair service for such equipment.


(End of clause)


552.238-43  Clauses for Overseas Coverage (I-FSS-108).

    As prescribed in 538.1203(c)(23), insert the following clause:
CLAUSES FOR OVERSEAS COVERAGE (I-FSS-108) (DATE)
    The following clauses apply to overseas coverage:
    (a) 52.214-34, Submission of Offers in the English Language.
    (b) 52.214-35, Submission of Offers in U.S. Currency.
    (c) 52.247-34, FOB Destination.
    (d) 52.247-38, FOB Inland Carrier, Country of Exportation.
    (e) 52.247-39, FOB Inland Point, Country of Importation.
    (f) 552.238-25, Characteristics of Electric Current (C-FSS-412).
    (g) 552.238-29, Marking and Documentation Requirements Per 
Shipment (D-FSS-471).
    (h) 552.238-44, Transshipments (D-FSS-477).
    (i) 552.238-45, Delivery Prices (F-FSS-202-F).
    (j) 552.238-46, Foreign Taxes and Duties (I-FSS-314).
    (k) 552.238-47, Parts and Service (I-FSS-594).


(End of clause)


552.238-44  Transshipments (D-FSS-477).

    As prescribed in 538.1203(c)(23)(viii), insert the following 
clause:
TRANSSHIPMENTS (D-FSS-477) (DATE)
    The Contractor shall complete TWO DD Forms 1387, Military 
Shipment Labels and, if applicable, four copies of DD Form 1387--2, 
Special Handling/Data Certification--used when shipping chemicals, 
dangerous cargo, etc. Two copies of the DD Form 1387 will be 
attached to EACH shipping container delivered to the port 
Transportation Officer for subsequent transshipment by the 
Government as otherwise provided for under the terms of this 
contract. These forms will be attached to one end and one side (NOT 
on the top or bottom) of the container. The Contractor will complete 
the bottom line of these forms, which pertains to the number of 
pieces, weight and cube of each piece, using U.S. weight and cubic 
measures. Weights will be rounded off to the nearest pound. (One kg 
= 2.2 U.S. pounds; one cubic meter = 35.3156 cubic feet.) In 
addition, if the cargo consists of chemicals, or is dangerous, one 
copy of the DD Form 1387-2 will be attached to the container, and 
three copies will be furnished to the Transportation Officer with 
the Bill of Lading. DANGEROUS CARGO WILL NOT BE INTERMINGLED WITH 
NONDANGEROUS CARGO IN THE SAME CONTAINER. Copies of the forms and 
preparation instructions will be obtained from the Ordering Office 
issuing the Delivery Order. Reproduced copies of the forms are 
acceptable. FAILURE TO INCLUDE DD FORMS 1387 (AND DD FORM 1387-2, IF 
APPLICABLE) ON EACH SHIPPING CONTAINER WILL RESULT IN REJECTION OF 
SHIPMENT BY THE PORT TRANSPORTATION OFFICER.


(End of clause)


552.238-45  Delivery Prices (F-FSS-202-F).

    As prescribed in 538.1203(c)(23)(ix), insert the following clause:
DELIVERY PRICES (F-FSS-202-F) (DATE)
    (a) Prices offered must cover delivery to destinations as 
provided in this clause:
    (1) Direct delivery to consignee. F.O.B. Inland Point, Country 
of Importation (FAR 52.247-39). (Offeror should indicate countries 
where direct delivery will be provided.)
    (2) Delivery to overseas assembly point for transshipment when 
specified by the ordering office, if delivery is not covered under 
paragraph (a) of this clause.
    (3) Delivery to the overseas port of entry when delivery is not 
covered under paragraphs (a) or (b) of this clause.
    (b) Offerors are requested to furnish the geographic area(s)/
countries/zones which are intended to be covered:
-----------------------------------------------------------------------
-----------------------------------------------------------------------


(End of clause)


552.238-46  Foreign Taxes and Duties (I-FSS-314).

    As prescribed in 538.1203(c)(23)(x), insert the following clause:
FOREIGN TAXES AND DUTIES (I-FSS-314) (DATE)
    Prices offered must be net, delivered, F.O.B. to the 
destinations accepted by the Government.
    (a) The Offeror warrants that such prices do not include any 
tax, duty, customs fees, or other foreign Governmental costs, 
assessments, or similar charges from which the U.S. Government is 
exempt. The Offeror further warrants that any applicable taxes 
duties, customs fees, other Government costs, assessments or similar 
charges from which the U.S. Government is not exempt are included in 
the prices quoted and that such prices are not subject to increases 
for any such charges applicable at the time of acceptance of this 
offer by the Government.
    (b) Standard commercial export packaging, including 
containerization, if necessary, packaging, preservation, marking are 
included in the pricing offered and accepted by the Government.


(End of clause)


552.238-47  Parts and Service (I-FSS-594).

    As prescribed in 538.1203(c)(23)(xi), insert the following clause:
PARTS AND SERVICE (I-FSS-594) (DATE)
    (a) For equipment under items listed in the schedule of items or 
services on which offers are submitted, the Offeror certifies by 
submission of this offer that parts and services (including the 
performing of warranty or guarantee service) are now available from 
dealers or distributors serving the areas of ultimate overseas 
destination or that such facilities will be established and will be 
maintained throughout the contract period. If a new servicing 
facility is to be established, the facility shall be established no 
later than the beginning of the contract period.
    (b) Each Contractor shall be fully responsible for the services 
to be performed by the named servicing facilities, or by such 
facilities to be established, and fully guarantees performance of 
such services if the original service proves unsatisfactory.
    (c) Offerors are requested to include in the price list, the 
names and addresses of all supply and service points maintained in 
the geographic area in which the Contractor will perform. Please 
indicate opposite each point whether or not a complete stock of 
repair parts for items offered is carried at that point, and whether 
or not mechanical service is available.


(End of clause)

[[Page 4619]]

552.238-48  English Language and U.S. Dollar Requirements (I-FSS-109).

    As prescribed in 538.1203(c)(24), insert the following clause:
ENGLISH LANGUAGE AND U.S. DOLLAR REQUIREMENTS (I-FSS-109) (DATE)
    (a) All documents produced by the Contractor to fulfill 
requirements of this contract including, but not limited to, Federal 
Supply Schedule catalogs and price lists, must reflect all terms and 
conditions in the English language.
    (b) U.S. dollar equivalency, if applicable, will be based on the 
rates published in the ``Treasury Reporting Rates of Exchange'' in 
effect as of the date of the agency's purchase order or in effect 
during the time period specified elsewhere in this contract.


(End of clause)


552.238-49  Geographic Area Address of Supply and Service Point.

    As prescribed in 538.1203(c)(25), insert the following clause:
GEOGRAPHIC AREA ADDRESS OF SUPPLY AND SERVICE POINT (DATE)
    It is desired to have available means for maintaining 
Government-owned items in satisfactory operating condition and to 
receive service at least as good as that extended to commercial 
customers.


(End of clause)


552.238-50  Option To Extend the Term of the Contract (Evergreen) (I-
FSS-163).

    As prescribed in 538.1203(c)(26), insert the following clause:
OPTION TO EXTEND THE TERM OF THE CONTRACT (EVERGREEN) (I-FSS-163) 
(DATE)
    (a) The Government may require continued performance of this 
contract for an additional 5-year period when it is determined that 
exercising the option is advantageous to the Government considering 
price and other factors. The option clause may not be exercised more 
than three times. When the option to extend the term of this 
contract is exercised the following conditions are applicable:
    (1) It is determined that exercising the option is advantageous 
to the Government considering price and the other factors covered in 
paragraphs (a)(2) through (a)(4) of this clause).
    (2) The Contractor's electronic catalog/price list has been 
received, approved, posted, and kept current on GSA 
Advantage![supreg] in accordance with clause 552.238-15, Contract 
Price Lists (I-FSS-600).
    (3) Performance has been acceptable under the contract.
    (4) Subcontracting goals have been reviewed and approved.
    (b) The Contracting Officer may exercise the option by providing 
a written notice to the Contractor within 30 days, unless otherwise 
noted, prior to the expiration of the contract or option.
    (c) When the Government exercises its option to extend the term 
of this contract, prices in effect at the time the option is 
exercised will remain in effect during the option period, unless an 
adjustment is made in accordance with another contract clause (e.g., 
Economic Price Adjustment Clause or Price Reduction Clause).


(End of clause)


552.238-51  Scope of Contract (I-FSS-102).

    As prescribed in 538.1203(c)(27), insert the following clause:
SCOPE OF CONTRACT (I-FSS-102) (DATE)
    This solicitation is issued to establish contracts which may be 
used on a nonmandatory basis by the agencies and activities named in 
this clause, as a source of supply for the supplies or services 
described herein, for delivery within *--------* and Washington, DC.
    (a) All Federal agencies and activities in the executive, 
legislative, and judicial branches.
    (b) Government Contractors authorized in writing by a Federal 
agency pursuant to 48 CFR 51.1.
    (c) Mixed ownership Government corporations (as defined in the 
Government Corporation Control Act).
    (d) The Government of the District of Columbia.
    (e) Other activities and organizations authorized by statute or 
regulation to use GSA as a source of supply. (Questions regarding 
activities authorized to use this schedule should be directed to the 
Contracting Officer.)
    Articles or services may be ordered from time to time in such 
quantities as may be needed to fill any requirement, subject to the 
Order Limitations thresholds which will be specified in resultant 
contracts. Overseas activities may place orders directly with 
schedule Contractors for delivery to CONUS port or consolidation 
point.
    For orders received from activities within the executive branch 
of the Government, each Contractor is obligated to deliver all 
articles or services contracted for that may be ordered during the 
contract term, except as otherwise provided herein.
    The Contractor is not obligated to accept orders received from 
activities outside the executive branch; however, the Contractor is 
encouraged to accept such orders. If the Contractor is unwilling to 
accept such an order, the Contractor shall return it by mailing it 
or delivering it to the ordering office within 5 workdays from 
receipt. Failure to return an order shall constitute acceptance 
whereupon all provisions of the contract shall apply.
    The Government is obligated to purchase under each resultant 
contract a guaranteed minimum of one hundred dollars during the 
contract term.


(End of clause)


552.238-52  Option to Extend the Term of Contract for Period of One (1) 
Year (I-FSS-165).

    As prescribed in 538.1203(c)(28), insert the following clause:
OPTION TO EXTEND THE TERM OF CONTRACT FOR PERIOD OF ONE (1) YEAR (I-
FSS-165) (DATE)
    (a) The Government shall have the unilateral option of extending 
this contract for an additional twelve (12) months upon the same 
terms and conditions as are contained in this contract at the time 
said option is exercised. The total duration of this contract 
inclusive of the option period shall not exceed 24 months.
    (1) Said options shall be deemed to have been exercised upon 
formal written notification (mail or otherwise furnished) to the 
Contractor at least thirty (30) calendar days prior to the 
expiration of the contract. The Contracting Officer shall have given 
preliminary notice of the Government's intention to extend at least 
ninety (90) calendar days before this contract is to expire. (Such a 
preliminary notice will not be deemed to commit the Government to 
exercise the option.)
    (2) Offerors are cautioned that the exercise of the option is a 
Government prerogative, not a contractual right on the part of the 
Contractor. If the Government exercises the option, the Contractor 
shall be contractually bound to perform the services for the option 
period, or in the event it fails to perform, be subject to the 
termination for default provisions of this contract.
    (b) If the option to extend is exercised by the Government, the 
contract price(s) may be adjusted upward or downward at that time in 
accordance with Section (b) of this clause. The Government will 
notify the Contractor of the percentage change in the Bureau of 
Labor Statistics (BLS) Producer Price Index when it becomes aware of 
the adjusting price index.
    (1) Definitions. As used in this provision.
    (i) The price index for the purpose of price adjustment for the 
option period shall be the originally released Producer Price Index 
stated in this clause, not seasonally adjusted, published by the 
Bureau of Labor Statistics, U. S. Department of Labor. The 
applicable Producer Price Index under Table *--------* is:
    Code number *--------*.
    Commodity *--------*.
    (ii) The base price index for the purpose of price adjustment 
shall be the originally released index listed in paragraph (b)(1)(A) 
of this clause for the month of the contract date;
    (iii) The term ``contract date'' means:
    (A) The date of bid opening in the case of sealed bid 
solicitations;
    (B) The date of award in the case of negotiated solicitations, 
except that with respect to any set-aside portion (Combined Small 
Business-Labor Surplus Area, Labor Surplus Area, or Small Business) 
of this solicitation, the date of bid opening for the non-set-aside 
portion, if sealed bid, or the date of award for the non-set-aside 
portion, if negotiated; or
    (C) The effective date(s) of the contract modification(s) adding 
line items to the contract.

[[Page 4620]]

    (iv) The ``adjusting price'' index shall be the originally 
released index listed in (b)(1)(A) of this clause for the ninth 
month of any twelve month contract or, if the contract period is 
less than twelve months, the month which would occur three full 
months before contract performance ends.
    (2) The original unit prices for supplies, as of the contract 
date, shall be subject to adjustment upward or downward by the 
percent of difference between the base price index and the adjusting 
price index. This price adjustment shall become effective on the 
date performance under the option period begins. If orders are 
issued under the contract, the adjustment shall apply only to those 
orders mailed to the Contractor after the date performance under the 
option period begins.
    (3) If base price index data are not available for the month in 
which the contract date occurs or if adjusting price index data are 
not available as specified in this clause, the month with the most 
recently published data before the contract date or the option 
exercise date, as applicable, shall be the basis for adjustment.
    (4) If any of the BLS series specified in this clause are 
discontinued, the Government shall determine a substitute series. If 
BLS designates an index with a new title and/or code number as being 
continuous with one of the indexes cited in this clause, the new 
index will be used.
    (5) Price adjustments pursuant to this provision will be made by 
contract modification issued by the Contracting Officer which will 
show the base price index, the adjusting price index, the percent of 
difference and the new contract price.
    (6) No adjustment will be made under this provision unless the 
total change in the contract amount is *--------* or more.
    (7) Increases shall not exceed 10 percent of the contract price 
as of the contract date.


(End of clause)


552.238-53  Option To Extend the Term of the Contract (I-FSS-167).

    As prescribed in 538.1203(c)(29), insert the following clause:
OPTION TO EXTEND THE TERM OF THE CONTRACT (I-FSS-167) (DATE)
    (a) The Government may extend the term of this contract by 
written notice to the Contractor within the time specified in this 
clause; provided, that the Government shall give the Contractor a 
preliminary written notice of its intent to extend at least 60 days 
before the contract expires. The preliminary notice does not commit 
the Government to an extension.
    (b) If the Government exercises this option, the extended 
contract shall be considered to include this option provision.
    (c) The total duration of this contract, including the exercise 
of any options under this clause, shall not exceed 14 months.
    (d) Prices in effect at the end of the 12th month shall remain 
unchanged during the period of the extension.


(End of clause)


552.238-54  Federal Excise Tax (I-FSS-311).

    As prescribed in 538.1203(c)(30), insert the following clause:
FEDERAL EXCISE TAX (I-FSS-311) (DATE)
    Prices offered shall exclude Federal Excise Tax. Ordering 
agencies will be notified that the Federal Excise Tax will be 
invoiced and paid for by them as a separate item based upon 
published Rubber Manufacturer's Association average weights 
effective at time of delivery, unless the ordering activity is 
exempt from such tax.


(End of clause)


552.238-55  Contractor Partnering Arrangements (I-FSS-40).

    As prescribed in 538.1203(c)(31), insert the following clause:
CONTRACTOR PARTNERING ARRANGEMENTS (I-FSS-40) (DATE)
    Contractors participating in contractor partnering arrangements 
must abide by all terms and conditions of their respective 
contracts. This includes compliance with contract clause 552.238-74, 
Industrial Funding Fee and Sales Reporting, i.e., each Contractor 
(partner member) must report sales and remit the IFF for all 
supplies and services provided under its individual contract.


(End of clause)


552.238-56  Performance Reporting Requirements (I-FSS-50).

    As prescribed in 538.1203(c)(32), insert the following clause:
PERFORMANCE REPORTING REQUIREMENTS (I-FSS-50) (DATE)
    (a) This clause applies to all contracts estimated to exceed 
$100,000.
    (b) Unless notified otherwise in writing by the Contracting 
Officer, the Contractor may assume contract performance is 
satisfactory.
    (c) If negative performance information is submitted by customer 
agencies, the Contracting Officer will notify the Contractor in 
writing and provide copies of any complaints received. The 
Contractor will have 30 calendar days from receipt of this 
notification to submit a rebuttal and/or a report of corrective 
actions taken.


(End of clause)


552.238-57  Guarantee (I-FSS-546).

    As prescribed in 538.1203(c)(33), insert the following clause:
GUARANTEE (I-FSS-546) (DATE)
    The Contractor guarantees the equipment furnished will be free 
from defects in material and workmanship for a period of not less 
than 1 year from date of delivery. All parts found defective within 
that period shall be replaced, with the cost of replacement, 
including shipping charges, to be borne by the Contractor. Under no 
circumstances will any equipment covered by this guarantee be 
returned without (a) advance written notice to the Contractor, or 
(b) obtaining shipping instructions from the Contractor.


(End of clause)


552.238-58  GSA Advantage![supreg] (I-FSS-597).

    As prescribed in 538.1203(c)(34), insert the following clause:
GSA ADVANTAGE![supreg] (I-FSS-597) (DATE)
    (a) The Contractor must participate in the GSA 
Advantage![supreg] online shopping service. Information and 
instructions regarding Contractor participation are contained in 
clause 552.238-59, Electronic Commerce--FACNET (I-FSS-599).
    (b) The Contractor also should refer to contract clauses 
552.238-71, Submission and Distribution of Authorized FSS Schedule 
Price Lists (which provides for submission of price lists on a 
common-use electronic medium), 552.238-15, Contract Pricelists (I-
FSS-600) (which provides information on electronic contract data), 
and 552.238-67, Modifications (Multiple Award Schedule) (currently 
552.243-72) (which addresses electronic file updates).


(End of clause)


552.238-59  Electronic Commerce--FACNET (I-FSS-599).

    As prescribed in 538.1203(c)(35), insert the following clause:
ELECTRONIC COMMERCE--FACNET (I-FSS-599) (DATE)
    (a) General Background. The Federal Acquisition Streamlining Act 
(FASA) of 1994 establishes the Federal Acquisition Computer Network 
(FACNET) requiring the Government to evolve its acquisition process 
from one driven by paperwork into an expedited process based on 
electronic commerce/electronic data interchange (EC/EDI). EC/EDI 
means more than merely automating manual processes and eliminating 
paper transactions. It can and will help to move business processes 
(e.g., procurement, finance, logistics, etc.) into a fully 
electronic environment and fundamentally change the way 
organizations operate.
    (b) Trading Partners and Value-Added Networks (VAN's).
    (1) Within the FACNET architecture, electronic documents (e.g., 
orders, invoices, etc.) are carried between the Federal Government's 
procuring office and Contractors (now known as ``trading 
partners''). These transactions are carried by commercial 
telecommunications companies called Value-Added Networks (VAN's).
    (2) EDI can be done using commercially available hardware, 
software, and telecommunications. The selection of a VAN is a 
business decision Contractors must make. There are many different 
VAN's which provide a variety of electronic services and

[[Page 4621]]

different pricing strategies. If your VAN only provides 
communications services, you may also need a software translation 
package.
    (c) Registration Instructions. (1) DOD will require Contractors 
to register as trading partners to do business with the Government. 
This policy can be reviewed via the INTERNET at http://www.defenselink.mil/releases/1999/b03011999_bt079-99.html.
    (2) To do EDI with the Government, Contractors must register as 
a trading partner. Contractors will provide regular business 
information, banking information, and EDI capabilities to all 
agencies in this single registration. A central repository of all 
trading partners, called the Central Contractor Registration (CCR) 
http://www.ccr.gov/, has been developed. All Government procuring 
offices and other interested parties will have access to this 
central repository. The database is structured to identify the types 
of data elements which are public information and those which are 
confidential and not releasable.
    (3) To register, Contractors must provide their Dun and 
Bradstreet (DUNS) number. The DUNS number is available by calling 1 
(800) 333-0505. It is provided and maintained free of charge and 
only takes a few minutes to obtain. Contractors will need to provide 
their Tax Identification Number (TIN). The TIN is assigned by the 
Internal Revenue Service by calling 1 (800) 829-1040. Contractors 
will also be required to provide information about company bank or 
financial institution for electronic funds transfer (EFT).
    (4) Contractors may register through online at http://www.ccr.gov/ or through their Value Added Network (VAN) using an 
American National Standards Institute (ANSI) ASC X12 838 transaction 
set, called a ``Trading Partner Profile.'' A transaction set is a 
standard format for moving electronic data. VAN's will be able to 
assist Contractors with registration.
    (d) Implementation Conventions. All EDI transactions must comply 
with the Federal Implementation Conventions (IC's). Many VAN's and 
software providers have already built the IC requirements into their 
supplies. If you need to see the IC's, they are available on a 
registry maintained by the National Institute of Standards and 
Technology (NIST). It is accessible via the INTERNET at http://www.itl.nist.gov/lab/csl-pubs.htm. IC's are available for common 
business documents such as Purchase Order, Price Sales Catalog, 
Invoice, Request for Quotes, etc.
    (e) Additional Information. GSA has additional information 
available for Contractors who are interested in starting to use EC/
EDI. Contact the Contracting Officer for a copy of the latest 
handbook. Several resources are available to Contractors to assist 
in implementing EC/EDI; specific addresses are available in the 
handbook or from the Contracting Officer:
    (1) Electronic Commerce Resource Centers (ECRC's) are a network 
of U.S. Government sponsored centers that provide EC/EDI training 
and support to the Contractor community. They are found in over a 
dozen locations around the country.
    (2) Procurement Technical Assistance Centers (PTAC's) and Small 
Business Development Centers (SBDC's) provide management assistance 
to small business owners. Each state has several locations.
    (3) Most major U.S. cities have an EDI user group of companies 
who meet periodically to share information on EDI related subjects.
    (f) GSA Advantage![supreg]. (1) GSA Advantage![supreg] will use 
this FACNET system to receive catalogs, invoices and text messages; 
and to send purchase orders, application advice, and functional 
acknowledgments. GSA Advantage![supreg] enables customers to:
    (i) Perform database searches across all contracts by 
manufacturer; manufacturer's model/part number; Contractor; and 
generic supply categories:
    (ii) Generate their own EDI delivery orders to Contractors, 
generate EDI delivery orders from the Federal Supply Service to 
Contractors, or download files to create their own delivery orders; 
and
    (iii) Use the Federal IMPAC VISA.
    (2) GSA Advantage![supreg] may be accessed via the GSA Home 
Page. The Internet address is: http://www.gsa.gov, or http://www.fss.gsa.gov.


(End of clause)


552.238-60  Performance Incentives (I-FSS-60).

    As prescribed in 538.1203(c)(36), insert the following clause:
PERFORMANCE INCENTIVES (I-FSS-60) (DATE)
    (a) Performance incentives may be agreed upon between the 
Contractor and the ordering office on individual orders or Blanket 
Purchase Agreements under this contract in accordance with this 
clause.
    (b) The ordering office must establish a maximum performance 
incentive price for these services and/or total solutions, on 
individual orders or Blanket Purchase Agreements.
    (c) Incentives should be designed to relate results achieved by 
the Contractor to specified targets. To the maximum extent 
practicable, ordering offices shall consider establishing incentives 
where performance is critical to the agency's mission and incentives 
are likely to motivate the Contractor. Incentives shall be based on 
objectively measurable tasks.


(End of clause)


552.238-61  Price Lists/Brochures for Non-Commercial Items (I-FSS-602).

    As prescribed in 538.1203(c)(37), insert the following clause:
PRICE LISTS/BROCHURES FOR NON-COMMERCIAL ITEMS (I-FSS-602) (DATE)
    (a) Each Contractor shall furnish price lists containing 
reproductions of actual photograph(s) or line drawing(s) of the 
items awarded. These price lists are to be sent to the list of 
addressees which will be provided, after formal approval of the 
price list format, by the Contracting Officer.
    (b) Only those items awarded under this contract shall be shown 
in the price lists or catalogs for these items. Commercial 
advertising or sales promotional language is not permitted. As the 
price lists become one of the primary working tools of agencies, it 
is important that they accurately portray the contract items.
    (c) The cover page format, certification and distribution for 
these items shall be in accordance with paragraph (b) of 552.238-15, 
Contract Price Lists (I-FSS-600).


(End of clause)


552.238-62  Office Copier Utilization Guidelines (I-FSS-624).

    As prescribed in 538.1203(c)(38), insert the following clause:
OFFICE COPIER UTILIZATION GUIDELINES (I-FSS-624) (DATE)
    (a) Ordering offices using this Federal Supply Schedule should 
select the appropriate and most economical copier equipment and/or 
plans for the application intended. The selection process should 
include a review of the functional and financial advantage of all 
available copying processes. FAR 7.4, Equipment Lease or Purchase, 
provides guidance in determining whether equipment should be 
acquired by lease or purchase; (FAR 8.404 provides ordering 
procedures applicable to Federal Supply Schedules).
    (b) Pursuant to a recommendation of the General Accounting 
Office and in order to assist ordering offices in this evaluation, 
office copying machine Contractors are requested to include in their 
authorized price lists specific factual and objective information 
concerning the productivity and supply use associated with each 
copier. Such information should relate to the price of equipment 
and/or plans, price of supplies, rates of consumption, machine 
production rate, etc., and may include price-per-copy computations. 
The information furnished should be predicated upon equipment and 
supplies at prices awarded on the schedule contract. Supply costs 
should be based on the use of supplies offered by the Contractor for 
the specific model. Contractors should state all assumptions and the 
basis for their calculations.
    (c) The principal value of the information requested will be to 
expedite the selection of the appropriate and most economical 
equipment and/or plan. This will largely depend upon the clarity and 
reliability of the information furnished. The Contractor should 
state that all calculations are his own and that he is solely 
responsible for their accuracy.


(End of clause)


552.238-63  Preference for Small Business Concerns (I-FSS-90).

    As prescribed in 538.1203(c)(39), insert the following clause:
PREFERENCE FOR SMALL BUSINESS CONCERNS (I-FSS-90) (DATE)
    Offerors are advised that the following statement will be 
included in the resultant Federal Supply Schedule: Where two or more

[[Page 4622]]

items at the same delivered price will meet the ordering agency's 
needs equally well, selection should be based on preference for the 
item of a small business concern that is also a labor surplus area 
concern. In making a selection on that basis, the same order of 
priority shall be used as that established for processing equal low 
bids in FAR 14.408-6. In making such a selection, the information in 
the Federal Supply Schedule as to the business size status or points 
of production of Contractors may be used for preliminary, but not 
conclusive, determination as to whether small business policies 
might be furthered through preferential award of the order. The 
extent to which additional and current information is obtained by an 
ordering agency is left to the discretion of the agency which should 
take into account the size of the order and other factors which the 
agency considers pertinent.


(End of clause)


552.238-64  Imprest Funds (Petty Cash) (I-FSS-918).

    As prescribed in 538.1203(c)(40), insert the following clause:
IMPREST FUNDS (PETTY CASH) (I-FSS-918) (DATE)
    The Contractor agrees to accept cash payment for purchases made 
under the terms of the contract in conformance with Federal 
Acquisition Regulation (FAR) 13.305.


(End of clause)


552.238-65  Commercial Sales Practices Format--Supplies and/or Services 
With an Established Catalog Price (CSP-1).

    As prescribed in 538.1203(c)(41), insert the following clause:
COMMERCIAL SALES PRACTICES FORMAT--SUPPLIES AND/OR SERVICES WITH AN 
ESTABLISHED CATALOG PRICE (CSP-1) (DATE)
    (a) Instructions for completing the commercial sales practices 
format:
    (1) Provide information required in this clause in accordance 
with these instructions that is, to the best of your knowledge and 
belief, current, accurate, and complete on the date the offer is 
signed.
    (2) Notify the contracting officer of any changes to catalog 
price or practices for discounts and/or concessions which occur 
after the date the offer is signed but before the close of 
negotiations.
    (3) Provide discount information by model/supply line and/or 
service when discounts vary, as appropriate.
    (4) When proposed services are subject to the Service Contract 
Act (SCA) of 1965, as amended, and pricing is equal to or higher 
than the appropriate wage determination, follow the format under 
(c)(5) of this clause. All wage determinations are included within 
the solicitation and follow procedures under FAR 22.10. If 
commercial labor category titles and duties/functions do not match 
the wage determination titles and duties/functions, then provide a 
``cross walk'' to match up the titles and duties/functions.
    (5) The Contracting Officer may ask for additional information 
to demonstrate that the products and/or services offered meet the 
definition of a commercial item and/or to determine whether the 
offered price(s) is fair and reasonable. When additional information 
is requested, the Contracting Officer will limit the request to 
information needed to complete the review.
    (b) Guidance for completing (c)(5) is as follows:
    Column 1--Customer (e.g., a single customer or group).
    ``Customer'' or category of customer--The term customer 
includes, but is not limited to original equipment manufacturers 
(OEM), value added resellers (VARS), state and local Governments, 
distributors, educational institutions (an elementary, junior high, 
or degree granting school which maintains a regular faculty and 
established curriculum and an organized body of students), dealers, 
national accounts, and end users. As further clarification, 
distributors only sell to dealers/reseller/VARS; who only sell to 
end users.
    Column 2--Base/Standard discount (%).
    Indicate the best discount or range of discounts* given to the 
customer identified on column 1 (based on written discounting 
policies or standard commercial practices in the event they are not 
written discounting policies) and identify the catalog, price list, 
schedule, or other document the discount was given from without 
regard to quantity; terms and conditions of the agreements under 
which the discounts are given; and whether the agreements are 
written or oral.
    If the discount disclosed is a combination of various discounts 
(prompt payment, FOB, etc.), separate the percentage for each type 
of discount. If the pricing document from which the discount was 
given to the customer identified in column 1 is different than the 
pricing document submitted upon which the offer is based, provide a 
copy of the pricing document to expedite the evaluation process.

    Note: The intent is that the Offeror may have base/standard 
discounts, quantity/volume discounts, or both. Provide the discount 
information using the definitions of those columns as guidance.

    * If a range of discounts is offered commercially, provide an 
explanation.
    Column 3--Quantity/Volume Discount (%).
    Insert the minimum quantity or sales volume which the identified 
customer must either purchase/order, per order or within a specified 
time period, to earn the discount. In addition, provide the terms 
necessary to obtain the minimum quantity or sales volume.
    Column 4-FOB Term (Origin/Destination)
    See FAR 47.3 for an explanation of FOB delivery terms.
    For supplies, identify the shipping term necessary for the 
customer identified in column 1 to achieve the discount.
    For services, performance will be assumed to be at the 
government facility, unless otherwise stated.
    Column 5--Other Concessions (e.g., Prompt Payment, etc.)
    Identify other concessions and discounts offered to the customer 
identified in column 1 to include, but not limited to, prompt 
payment, freight allowances, extended warranties, extended price 
guarantees, free installation, bonus goods, rebates, purchase option 
credits, etc.
    Discounts and concessions are defined in solicitation clause 
552.212-70, Preparation of Offers (Multiple Award Schedule).
    If the space provided is inadequate, the disclosure should be 
made on a separate sheet by reference.
    (c) Commercial Sales Practices Format-Supplies and/or Services 
with an Established Catalog List.
    (1) Name of Offeror------------ (SINs) ------------

    Note: Provide the following information for each SIN (or SINs 
for which information is the same). If discount information is 
different for SINs offered, duplicate this format.

    (2) Provide the dollar value of sales to the general public at 
or based on an established catalog or market price during the 
previous 12-month period: $--------.
    State the beginning and ending of the 12 month period. 
Beginning--------, ending--------.
    (3) Show your total projected annual sales for each SIN offered. 
If a current Federal Supply Schedule Contractor for the SIN, use the 
previous 12 months of sales under the contract. If NOT a current 
Schedule Contractor, base projected sales on the previous 12 months 
of sales to the general public. Identify the basis of the projected 
sales.


SIN------------ $------------
SIN------------ $------------
SIN------------ $------------

    (4) Provide the discount, including concessions being offered in 
response to this solicitation:------------
    Based on written discounting policies (standard commercial 
practices in the event they are not written discounting policies), 
are the discounts and/or concessions, in any combination, which are 
being offered under this solicitation equal to or better than the 
best price offered to any customer acquiring the same items 
regardless of quantity or terms and conditions?

YES---- NO----
    If yes, provide, in its entirety the data in paragraph (c)(5) of 
this clause, ONLY for the commercial customer with the greatest 
discount, including concessions.
    If no, provide in its entirety, the data in paragraph (c)(5) of 
this clause, for ALL commercial customer(s) who receive the 
discounts and/or concessions, in any combination, that are equal to 
or greater than offered in response to this solicitation. In 
addition, provide an explanation of why the discounts and/or 
concessions are not being offered.
    (5) Based on written discounting policies (standard commercial 
practices in the event they are not written discounting policies), 
provide information as requested for each SIN (or group of SINs for 
which the information is the same), or in an equivalent format 
developed by the Offeror. Rows should be added to accommodate as 
many customers as required:

[[Page 4623]]



----------------------------------------------------------------------------------------------------------------
                                               Column 2 base/
                                                  standard
                                                discount (%)                                      Column 5 other
                                              (Note: if there                                    concessions and
                                                 is a base         Column 3       Column 4 FOB      discounts
 Column 1 customer (e.g., a single customer    discount and a  quantity/volume   term (origin/    (e.g., prompt
                  or group)                        volume        discount (%)     destination)    payment, etc.)
                                                 discount,                                            in any
                                               disclose both                                       combination.
                                                on the same
                                                   row.)
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------

    (6) Do any deviations from your written discounting policies 
(standard commercial practices in the event they are not written 
discounting policies), in any combination, disclosed in the (5) 
above ever result in better discounts (lower prices) or concessions 
than indicated? YES---- NO----. If yes, provide an explanation of 
the circumstances under which you deviate from your written policies 
or standard commercial sales practices disclosed in the chart and 
explain how often they occur.
    Your explanation should include a discussion of situations that 
lead to deviations from standard practice, an explanation of how 
often they occur (frequency), and the controls you employ to assure 
the integrity of your pricing. Examples of typical deviations may 
include, but are not limited to, one time goodwill discounts to 
charity organizations or to compensate an otherwise disgruntled 
customer; a limited sale of obsolete or damaged goods; the sale of 
sample goods to a new customer; or the sales of prototype goods for 
testing purposes.
    (d) If other than the manufacturer, i.e., dealer/reseller, 
without significant sales to the general public:
    (1) Provide manufacturers' information required by paragraphs 
(c)(1) through (6) of this clause for each item/SIN offered, if the 
manufacturer's sales under any resulting contract are expected to 
exceed $500,000.
    (2) Obtain written authorization from the manufacturer(s) that 
grants the Contracting Officer or an authorized government 
representative access, at any time before award or before agreeing 
to a modification, to the manufacturer's sales records for the 
purpose of verifying the information submitted by the manufacturer.
    (3) The contracting officer may require the information be 
submitted on electronic media with commercially available 
spreadsheet(s). The information may be provided by the manufacturer 
directly to the Government. If the manufacturer's item(s) is being 
offered by multiple dealers/resellers, only one copy of the 
requested information should be submitted to the Government, at a 
minimum, the commercial sales data must be updated annually.
    (4) The Offeror must submit the following pricing information 
along with a listing of contact information regarding each of the 
manufacturers whose products included in the offer (include the 
manufacturer's name, address, the manufacturer's contact point, 
telephone number, and FAX number) for each model offered by SIN:
    (i) Manufacturer's Name.
    (ii) Manufacturer's Part Number.
    (iii) Dealer's/Reseller's Part Number.
    (iv) Product Description.
    (v) Manufacturer's List Price.
    (vi) Dealer's/Reseller's percentage discount from list price or 
net prices.
    (vii) Proposed price excluding IFF.
    (viii) Proposed discount from manufacturer's list price.
    (ix) Proposed price including IFF (calculation: proposed price 
divided by (1 minus IFF rate)).


(End of clause)


552.238-66  Commercial Sales Practices Format--Supplies and/or Services 
with Market Pricing Without an Established Catalog Price (CSP-2).

    As prescribed in 538.71(c)(42), insert the following clause:
COMMERCIAL SALES PRACTICES FORMAT--SUPPLIES AND/OR SERVICES WITH MARKET 
PRICING WITHOUT AN ESTABLISHED CATALOG PRICE (CSP-2) (DATE)
    (a) Instructions for completing the commercial sales practices 
format.
    (1) Provide information required of this clause in accordance 
with these instructions that is, to the best of your knowledge and 
belief, current, accurate, and complete on the date the offer is 
signed.
    (2) Notify the contracting officer of any changes to pricing, 
terms or conditions that occur after the date the offer is signed, 
but before the close of negotiations.
    (3) If pricing varies by line item, the information must be 
submitted per line item.
    (4) When proposed line item(s) is subject to the Service 
Contract Act (SCA) of 1965, as amended, and pricing is equal to or 
higher than the appropriate wage determination, follow the format 
under paragraph (c)(4) of this clause. All wage determinations are 
included within the solicitation and follow procedures under FAR 
22.10. If commercial labor category titles and duties/functions do 
not match the wage determination titles and duties/functions, then 
provide a ``cross walk'' to match up the titles and duties/
functions.
    (5) The Contracting Officer may ask for additional information 
to demonstrate that the line item(s) offered meets the definition of 
a commercial item and/or to determine whether the offered price(s) 
is fair and reasonable. When additional information is requested, 
the Contracting Officer will limit the request to information needed 
to complete the review.
    (b)(1) Guidance for completing (b)(2) of this section, 
disclosures for supplies and/or services:
    Column 1--Customer.
    ``Customer'' or category of customer--The term customer 
includes, but is not limited to original equipment manufacturers 
(OEM), value added resellers (VARS), state and local Governments, 
distributors, educational institutions (an elementary, junior high, 
or degree granting school which maintains a regular faculty and 
established curriculum and an organized body of students), dealers, 
national accounts, and end users, as applicable. For Offerors 
proposing supplies, as further clarification, distributors only sell 
to dealers/resellers/VARS; who only sell to end users.
    Column 2--Contract/Agreement Number.
    Indicate the contract/agreement number that corresponds with the 
pricing information being provided.
    Columns 3--Type of Contract/Agreement.
    Indicate if the referenced contract/agreement is a firm, fixed 
price (FFP); firm, fixed price with economic price adjustment (FFP 
EPA), etc.
    Column 4--Contract/Agreement Period.
    Provide the initial award date and end date. If options were 
part of the original award, indicate the option(s) periods 
independently.
    Column 5--Acted as a Prime or a Sub on the Contract/Agreement.
    State in what capacity, prime or sub, the Offeror acted as on 
the referenced contract/agreement.
    Column 6--Customer Point of Contact and Contact Information.
    Provide the contact information for the purchaser/buyer for the 
referenced contract/agreement.
    (2) Previous commercial contract information:

[[Page 4624]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       Column 3 Type
                                                                         Column 2       of contract/       Column 4      Column 5 Acted      Column 6
                                                        Column 1        Contract/     agreement (ex.,     Contract/     as prime or sum   Customer point
                     Contract                           Customer        agreement        firm fixed       agreement       on contract     of contact and
                                                                          number        price, cost         period         agreement         contact
                                                                                        plus, etc.)                                        information
--------------------------------------------------------------------------------------------------------------------------------------------------------
1
--------------------------------------------------------------------------------------------------------------------------------------------------------
2
--------------------------------------------------------------------------------------------------------------------------------------------------------
3
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (c)(1) Guidance for completing (c)(2) of this section, 
disclosures for services ONLY:
    Column 1--Labor Category or Title.
    Provide the title of the labor category that is being proposed, 
as awarded under the referenced contract/agreement from (c)(4).
    Column 2-Experience/Education/Certification Level.
    Indicate the level of experience, education (degree) and/or 
certification associated with the proposed labor category or title. 
(e.g., 7-10 yrs/BA/BS/MBA/Level III).
    Columns 3A-3C Billed Rates.
    Indicate the lowest net billable rate offered to any commercial 
customer at Offeror site and/or other than Offeror site in the 
appropriate columns of this clause. ``Billed Rates'' means fully, 
loaded/burdened rates which may be indicated on the invoice to the 
customer listed in (c)(4). In the event the Offeror does not have 
significant commercial sales, provide disclosures for government 
sales. As used in this solicitation, ``commercial sales'' are 
defined as sales to the general public, including state and local 
government. Unit of measure is hourly rate.
    If the billable rates being offered to the government under this 
solicitation are equal to or lower than the lowest net billable rate 
offered to any commercial customer, then fill in column 3A only.
    If the billable rates being offered to the government under this 
solicitation are not equal to or lower than the lowest net billable 
rate offered to any commercial customer, provide an explanation and 
complete columns 3A, 3B and 3C.
    Column 4--Discount, If Offered.
    Insert the discount, if any, being offered off the lowest net 
billable rate.
    Column 5--Rate Offered to FSS (Excluding IFF).
    Insert the rate for the labor category/title that is being 
proposed. This does not include the Industrial Funding Fee.
    Column 6--Rate Offered to FSS (Including IFF).
    Insert the rate for the labor category/title that is being 
proposed. This includes the Industrial Funding Fee.
    Note: The correct method for calculating the IFF is:
    Proposed FSS rate/(1 minus the applicable IFF) = correct 
calculated proposed FSS Rate.
    Example: FSS rate = $100.00. IFF = 0.75%. $100.00 / (1-.0075) = 
$100.00 / .9925 = $100.7556 which rounds to $100.76.
    (2) Commercial Sales Practices Format--Services with Market 
Prices without an Established Catalog Price.
    (1) Name of Offeror ---------- SIN(s) ----------.
    Note: Provide the following information for each SIN (or SINs 
for which information is the same). For each SIN with different 
services, the Offeror must duplicate this format.
    (2) Provide the total dollar sales for all customers, including 
government, for the most recently available 12-month period: $.
    The beginning and ending of the 12-month period. Beginning ----
------, ending ----------.
    (3) For each SIN being proposed, provide the actual sales for 
the most recent available 12-month period:
    The beginning and ending of the 12-month period. Beginning ----
------, ending ----------.
SIN--------------------------------------------------------------------
Commercial Sales-------------------------------------------------------
Federal Government Sales-----------------------------------------------
    (4) Show your total projected annual sales for each SIN offered. 
If a current Federal Supply Schedule Contractor for the SIN, use the 
previous 12 months of sales under the contract. If NOT a current 
Schedule Contractor, base projected sales on the previous 12 months 
of sales to the general public. Identify the basis of the projected 
sales.
SIN------------ $------------
SIN------------ $------------
SIN------------ $------------
    LABOR RATE INFORMATION:
SIN(s):----------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------------------------------
        Column 1 Customer              Column 2        Column 3A        Column 3B        Column 3C         Column 4      Column 5 Rate    Column 6 Rate
----------------------------------   Experience/       Contract/        Contract/        Contract/       Discount, if    offered to FSS   offered to FSS
                                   education cert.    agreement 1      agreement 2      agreement 3        offered      (excluding IFF)  (including IFF)
                                        level         billed rates     billed rates     billed rates  --------------------------------------------------
                                  --------------------------------------------------------------------
     Labor category or title         Experience/     Offeror site/    Offeror site/    Offeror site/                     Offeror site/    Offeror site/
                                   education/cert.     other than       other than       other than      Percent (%)       other than       other than
                                        level         offeror site     offeror site     offeror site                      offeror site     offeror site
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 4625]]

    (d)(1) Guidance for completing (d)(2) of this section, 
disclosures for flat rate services and/or supplies ONLY:
    Column 1--Title of flat rate services and/or supplies.
    Under this solicitation, ``flat rate'' is defined as 
comprehensive, fixed pricing that includes all elements of the 
proposed supply and/or service and is not based on an established 
catalog price.
    Provide the title of the flat rate services and/or supplies that 
are being proposed, as awarded under the referenced contract/
agreement from (b).
    Column 2--Itemized description of tasks, outcome, or supply.
    Provide a concise description of the end deliverable, as awarded 
under the referenced contract/agreement from (b). This could include 
descriptive literature, reports, etc.
    Columns 3A-3C Contract/Agreement Billed Pricing.
    If offering flat rate services, indicate the lowest net billable 
price offered to any commercial customer at Offeror site and/or 
other than Offeror site in the appropriate columns of this clause, 
as awarded under the referenced contract/agreement from (b).
    If offering flat rate supplies, indicate the lowest net billable 
price offered to any commercial customer at FOB terms under the 
appropriate column, as awarded under the referenced contract/
agreement from (b).
    If the billable prices being offered to the government under 
this solicitation are equal to or lower than the lowest net billed 
price offered to any commercial customer, then fill in column 3A 
only.
    If the billable prices being offered to the government under 
this solicitation are not equal to or lower than the lowest net 
billable price offered to any commercial customer, provide an 
explanation and complete columns 3A, 3B and 3C.
    Column 4--Discount, If Offered.
    Insert the discount, if any, being offered off the lowest net 
billable rate.
    Column 5--Rate Offered to FSS (Excluding IFF).
    Insert the pricing for the service and/or supply that is being 
proposed. This does not include the Industrial Funding Fee.
    Column 6--Rate Offered to FSS (Including IFF).
    Insert the pricing for the service and/or supply that is being 
proposed. This includes the Industrial Funding Fee.
    Note: The correct method for calculating the IFF is:
    Proposed FSS pricing / (1 minus the applicable IFF) = correct 
calculated proposed FSS price.
Example:
    FSS pricing = $100.00.
    IFF = 0.75%.
    $100.00 / (1-.0075) = $100.00 / .9925 = $100.7556, which rounds 
to $100.76.
    (d)(2) Commercial Sales Practices Format--Flat Rate Services 
and/or Supplies with Market Prices without an Established Catalog 
Price.
    (1) Name of Offeror ------------ SIN(s) ------------.

    Note: Provide the following information for each SIN (or SINs 
for which information is the same). For each SIN with different 
services, the Offeror must duplicate this format.

    (2) Provide the total dollar sales for all customers, including 
government, for the most recently available 12-month period: $------
--. The beginning and ending of the 12-month period. Beginning ----
----, ending --------.
    (3) For each SIN being proposed, provide the actual sales for 
the most recent available 12-month period:
    The beginning and ending of the 12-month period. Beginning ----
----, ending --------.
SIN sales--------------------------------------------------------------
Commercial Sales-------------------------------------------------------
Federal Government Sales-----------------------------------------------
    (4) Show your total projected annual sales for each SIN offered. 
If a current Federal Supply Schedule Contractor for the SIN, use the 
previous 12 months of sales under the contract. If NOT a current 
Schedule Contractor, base projected sales on the previous 12 months 
of sales to the general public. Identify the basis of the projected 
sales.
SIN ------------ $ ------------
SIN ------------ $ ------------
SIN ------------ $ ------------
    (5) FLAT RATE SERVICES AND/OR SUPPLIES INFORMATION:
SIN(s): ------------.

BILLING CODE 6820-61-P

[[Page 4626]]

[GRAPHIC] [TIFF OMITTED] TP26JA09.000

BILLING CODE 6820-61-C

(End of clause)


552.243-72  [Redesignated as 552.238-67 and Revised]

    15. Redesignate section 552.243.72 as section 552.238-67 and revise 
it to read as follows:


552.238-67  MODIFICATIONS (MULTIPLE AWARD SCHEDULE).

    As prescribed in 538.1203(c)(43), insert the following clause:
    MODIFICATIONS (MULTIPLE AWARD SCHEDULE) (DATE)

    (a) General. The Contractor may request a contract modification 
by submitting a request to the Contracting Officer for approval, 
except as noted in paragraph (d) of this clause. At a minimum, every 
request shall describe the proposed change(s) and provide the 
rationale for the requested change(s).
    (b) Types of Modifications. (1) Additional items/additional 
SIN's. When requesting additions, the following information must be 
submitted:
    (i) Information requested in paragraphs (1) and (2) of the 
Commercial Sales Practice Format to add SIN's.
    (ii) Discount information for the new items(s) or new SIN(s). 
Specifically, submit the information requested in paragraphs 3 
through 5 of the Commercial Sales Practice Format. If this 
information is the same as the initial award, a statement to that 
effect may be submitted instead.
    (iii) Information about the new item(s) or the item(s) under the 
new SIN(s) as described in 552.238-96, Preparation of Offer 
(Multiple Award Schedule) is required.
    (iv) Delivery time(s) for the new item(s) or the item(s) under 
the new SIN(s) must be submitted in accordance with 552.238-95, 
Commercial Delivery Schedule (Multiple Award Schedule).
    (v) Production point(s) for the new item(s) or the item(s) under 
the new SIN(s) must be submitted if required by 52.215 6, Place of 
Performance.
    (vi) Hazardous Material information (if applicable) must be 
submitted as required by 52.223 3 (ALT I), Hazardous Material 
Identification and Material Safety Data.
    (vii) Any information requested by 52.212 3(f), Offeror 
Representations and Certifications--Commercial Items, that may be 
necessary to assure compliance with FAR 52.225 1, Buy American Act-
Balance of Payments Programs--Supplies.
    (2) Deletions. The Contractors shall provide an explanation for 
the deletion. The Government reserves the right to reject any 
subsequent offer of the same item or a substantially equal item at a 
higher price during the same contract period, if the Contracting 
Officer finds the higher price to be unreasonable when compared with 
the deleted item.
    (3) Price Reduction. The Contractor shall indicate whether the 
price reduction falls under the item (i), (ii), or (iii) of 
paragraph (c)(1) of the Price Reductions clause at 552.238-75. If 
the Price reduction falls under item (i), the Contractor shall 
submit a copy of the dated commercial price list. If the price 
reduction falls under item (ii) or (iii), the Contractor shall 
submit a copy of the applicable price list(s), bulletins or letters 
or customer agreements which outline the

[[Page 4627]]

effective date, duration, terms and conditions of the price 
reduction.
    (c) Effective dates. The effective date of any modification is 
the date specified in the modification, except as otherwise provided 
in the Price Reductions clause at 552.238-75.
    (d) Electronic File Updates. The Contractor shall update 
electronic file submissions to reflect all modifications. For 
additional items or SINs, the Contractor shall obtain the 
Contracting Officer's approval before transmitting changes. Contract 
modifications will not be made effective until the Government 
receives the electronic file updates. The Contractor may transmit 
price reductions, item deletions, and corrections without prior 
approval. However, the Contractor shall notify the Contracting 
Officer as set forth in the Price Reductions clause at 552.238-75.
    (e) Amendments to Paper Federal Supply Schedule Price Lists. (1) 
The Contractor must provide supplements to its paper price lists, 
reflecting the most current changes. The Contractor may either:
    (i) Distribute a supplemental paper Federal Supply Schedule 
Price List within 15 workdays after the effective date of each 
modification.
    (ii) Distribute quarterly cumulative supplements. The period 
covered by a cumulative supplement is at the discretion of the 
Contractor, but may not exceed three calendar months from the 
effective date of the earliest modification. For example, if the 
first modification occurs in February, the quarterly supplement must 
cover February-April, and every 3 month period after. The Contractor 
must distribute each quarterly cumulative supplement within 15 
workdays from the last day of the calendar quarter.
    (2) At a minimum, the Contractor shall distribute each 
supplement to those ordering activities that previously received the 
basic document. In addition, the Contractor shall submit two copies 
of each supplement to the Contracting Officer and one copy to the 
FSS Schedule Information Center.


(End of clause)

    16. Revise the newly designated section 552.238-68 to read as 
follows:


552.238-68  Economic Price Adjustment--Supplies and/or Services With an 
Established Catalog Price.

    As prescribed in 538.1203(c)(44), insert the following clause:
ECONOMIC PRICE ADJUSTMENT--SUPPLIES AND/OR SERVICES WITH AN ESTABLISHED 
CATALOG PRICE (DATE)
    Price adjustments include price increases and price decreases. 
Adjustments will be considered as follows:
    (a) Contractors shall submit price decreases anytime during the 
contract period in which they occur. Price decreases will be handled 
in accordance with the provisions of the Price Reduction Clause.
    (b) Contractors may request price increases providing all of the 
following conditions are met:
    (1) Increases resulting from a reissue or other modification of 
the Contractor's commercial catalog/price list that was used as the 
basis for the contract award.
    (2) Increases are requested before the last 60 days of the 
contract period.
    (3) At least 30 days elapse between requested increases.
    (c) The following material shall be submitted with the request 
for a price increase:
    (1) A copy of the commercial catalog/price list showing the 
price increase and the effective date for commercial customers.
    (2) Commercial Sales Practice format regarding the Contractor's 
commercial pricing practice relating to the reissued or modified 
catalog/price list, or a certification that no change has occurred 
in the data since completion of the initial negotiation or a 
subsequent submission.
    (3) Documentation supporting the reasonableness of the price 
increase.
    (d) The Government reserves the right to exercise one of the 
following options:
    (1) Accept the Contractor's price increases as requested when 
all conditions of (b), (c), and (d) of this clause are satisfied;
    (2) Negotiate more favorable discounts from the new commercial 
prices when the total increase requested is not supported; or
    (3) Remove the supply(s) from contract involved pursuant to the 
Cancellation Clause of this contract, when the increase requested is 
not supported.
    (e) The contract modification reflecting the price adjustment 
shall be made effective upon signature of the Contracting Officer, 
provided that in no event shall such price adjustment be effective 
prior to the effective date of the commercial price increases. The 
increased contract prices shall apply to delivery orders issued to 
the Contractor on or after the effective date of the contract 
modification.


(End of clause)

    Alternate I (Date), for the AbilityOne Schedule ONLY, add the 
following paragraph before paragraph (a) in this clause and renumber 
the paragraphs.
    (a) AbilityOne (formerly Javits-Wagner-O'Day (JWOD)) items are 
not covered by this Economic Price Adjustment Clause. The Committee 
for Purchase from People who are Blind or Severely Disabled is 
responsible for determining fair market prices are paid by the 
Government customers for AbilityOne (formerly JWOD) items, the 
Distributor must agree to charge prices that are acceptable to the 
Committee. The Committee for Purchase from People who are Blind or 
Severely Disabled will administer price changes on an annual basis.

    17. Add section 552.238-69 to read as follows:


552.238-69  Economic Price Adjustment--Supplies and/or Services With 
Market Pricing Without an Established Catalog Price (I-FSS-969).

    As prescribed in 538.1203(c)(45), insert the following clause:
ECONOMIC PRICE ADJUSTMENT-SUPPLIES AND/OR SERVICES WITH MARKET PRICING 
WITHOUT AN ESTABLISHED CATALOG PRICE (I-FSS-969) (DATE)
    Price adjustments include price increases and price decreases. 
Adjustments will be considered as follows:
    (a) Contractors shall submit price decreases anytime during the 
contract period in which they occur. Price decreases will be handled 
in accordance with the provisions of the Price Reduction Clause.
    (b) There are two types of economic price adjustments (EPAs) 
possible under the Schedules program for contracts not based on 
commercial catalogs or price lists as described in this clause. 
Price adjustments may be effective on or after the first 12 months 
of the contract period on the following basis:
    (1) Adjustments based on escalation rates negotiated prior to 
contract award. Normally, when escalation rates are negotiated, they 
result in a fixed price for the term of the contract. No separate 
contract modification will be provided when increases are based on 
negotiated escalation rates. Price increases will be effective on 
the 12-month anniversary date of the contract effective date, 
subject to paragraph (f) of this clause.
    (2) Adjustments based on an agreed-upon market indicator prior 
to award. The market indicator, as used in this clause, means the 
originally released public index, public survey or other public, 
based market indicator. The market indicator shall be the originally 
released index, survey or market indicator, not seasonally adjusted, 
published by the [to be negotiated] and made available at [to be 
identified]. Any price adjustment shall be based on the percentage 
change in the designated (i.e., indicator identification and date) 
market indicator from the initial award to the latest available as 
of the anniversary date of the contract effective date, subject to 
paragraph (e) of this clause. If the market indicator is 
discontinued or deemed no longer available or reliable by the 
Government, the Government and the Contractor will mutually agree to 
a substitute. The contract modification reflecting the price 
adjustment will be effective upon approval by the Contracting 
Officer, subject to paragraph (g) of this clause. The adjusted 
prices shall apply to orders issued to the Contractor on or after 
the effective date of the contract modification.
    (c) Notwithstanding the two economic price adjustments discussed 
in this clause, the Government recognizes the potential impact of 
unforeseeable major changes in market conditions. For those cases 
where such changes do occur, the Contracting Officer will review 
requests to make adjustments, subject to the Government's 
examination of industry-wide market conditions and the conditions in 
paragraphs (d) and (e) of this clause. If adjustments are accepted, 
the contract will be modified accordingly. The determination of 
whether or not extra-ordinary circumstances exist rests with the 
Contracting Officer. The determination of an appropriate mechanism 
of adjustment will be subject to negotiations.

[[Page 4628]]

    (d) Conditions of Price change requests under paragraphs (b)(2) 
and (c) of this clause:
    (1) No more than three increases will be considered during each 
succeeding 12-month period of the contract. (For succeeding contract 
periods of less than 12 months, up to three increases will be 
considered subject to the other conditions of subparagraph (b)).
    (2) Increases are requested before the last 60 days of the 
contract period, including options.
    (3) At least 30 days elapse between requested increases.
    (4) In any contract period during which price increases will be 
considered, the aggregate of the increases during any 12-month 
period shall not exceed *--------* percent (*--------* percent) of 
the contract unit price in effect at the end of the preceding 12-
month period. The Government reserves the right to raise the ceiling 
when market conditions during the contract period support such a 
change.
    (e) The following material shall be submitted with request for a 
price increase under paragraphs (b)(2) and (c) of this clause:
    (1) A copy of the index, survey or pricing indicator showing the 
price increase and the effective date.
    (2) Commercial Sales Practice format, per contract clause 
52.215-21 Alternate IV, demonstrating the relationship of the 
Contractor's commercial pricing practice to the adjusted pricing 
proposed or a certification that no change has occurred in the data 
since completion of the initial negotiation or a subsequent 
submission.
    (3) Any other documentation requested by the Contracting Officer 
to support the reasonableness of the price increase.
    (f) The Government reserves the right to exercise one of the 
following options:
    (1) Accept the Contractor's price increases as requested when 
all conditions of (b), (c), (d), and (e) of this clause are 
satisfied;
    (2) Negotiate more favorable prices when the total increase 
requested is not supported; or
    (3) Decline the price increase when the request is not 
supported. The Contractor may remove the item(s) from contract 
involved pursuant to the Cancellation Clause of this contract.
    (g) Effective Date of Increases: No price increase shall be 
effective until the Government receives the electronic file updates 
pursuant to GSAR 552.238-67, Modifications (Multiple Award Schedule) 
(Currently 552.243-72).
    (h) All MAS contracts remain subject to contract clauses GSAR 
552.238-75, ``Price Reductions''; and 552.238-98, ``Price 
Adjustment--Failure to Provide Accurate Information.'' In the event 
the application of an economic price adjustment results in a price 
less favorable to the Government than the price relationship 
established during negotiation between the MAS price and the price 
to the designated customer, the Government will maintain the price 
relationship to the designated customer.


(End of clause)


552.238-70  [Amended]

    18. Amend section 552.238-70 by removing from the introductory 
paragraph ``538.273(a)(1)'' and adding ``538.1203(c)(46)'' in its 
place.
    19. Revise section 552.238-71 to read as follows:


552.238-71  Submission and Distribution of Authorized FSS Schedule 
Price Lists.

    As prescribed in 538.1203(c)(47), insert the following clause:
SUBMISSION AND DISTRIBUTION OF AUTHORIZED FSS PRICE LISTS (DATE)
    (a)(1) The Contracting Officer will return one copy of the 
Authorized FSS Schedule Pricelist to the Contractor with the 
notification of contract award.
    (2) The Contractor may print and distribute the awarded price 
list without written approval from the Contracting Officer. The 
price list must include all terms and conditions of the cited 
contract. Note: It shall not absolve the Contractor from 
responsibility for the accuracy of the price list. Consequently, the 
Contractor would be required to revise the price list to correct any 
significant errors subsequently found by the Contracting Officer and 
reprint and distribute at the Contractor's expense. If significant 
pricing errors are found, the Government may cancel the contract and 
the Contractor may be liable for any price adjustments for 
overpricing.
    (b)(1) The Contractor shall provide to the GSA Contracting 
Officer:
    (i) Two paper copies of Authorized FSS Schedule Pricelist; and
    (ii) The Authorized FSS Schedule Pricelist on a common-use 
electronic medium.

    Note: The Contracting Officer will provide detailed instructions 
for the electronic submission with the award notification. Some 
structured data entry in a prescribed format may be required.

    (2) The Contractor shall provide to each addressee on the 
mailing list either:
    (i) One paper copy of the Authorized FSS Schedule Price List; or
    (ii) A self-addressed, postage-paid envelope or postcard to be 
returned by addressees that want to receive a paper copy of the 
price list. The Contractor shall distribute price lists within 20 
calendar days after receipt of returned requests.
    (3) The Contractor shall advise each addressee of the 
availability of price list information through the online Multiple 
Award Schedule electronic data base.
    (c) The Contracting Officer will provide detailed instructions 
for the electronic submission with the award notification. Some 
structured data entry in a prescribed format may be required.
    (d) During the period of the contract, the Contractor shall 
provide one copy of its Authorized FSS Schedule Pricelist to any 
authorized schedule user, upon request.


(End of clause)


552.238-72  [Amended]

    20. Amend section 552.238-72 by removing from the introductory 
paragraph ``538.273(a)(3)'' and adding ``538.1203(c)(48)'' in its 
place.


552.238-73  [Amended]

    21. Amend section 552.238-73 by removing from the introductory 
paragraph ``538.273(a)(4)'' and adding ``538.1203(c)(49)'' in its 
place.
    22. Revise section 552.238-74 to read as follows:


552.238-74  Industrial Funding Fee and Sales Reporting.

    As prescribed in 538.1203(c)(50), insert the following clause:
INDUSTRIAL FUNDING FEE AND SALES REPORTING (DATE)
    (a) Reporting Federal Supply Schedule Sales. The Contractor 
shall report all contract sales under this contract as follows:
    (1) The Contractor shall accurately report the dollar value, in 
U.S. dollars and rounded to the nearest whole dollar, of all sales 
under this contract by calendar quarter (January 1-March 31, April 
1-June 30, July 1-September 30, and October 1-December 31). The 
dollar value of a sale is the price paid by the Schedule ordering 
activity for supplies and/or services on a Schedule task or delivery 
order. The reported contract sales value shall include the 
Industrial Funding Fee (IFF). The Contractor shall maintain a 
consistent accounting method of sales reporting, based on the 
Contractor's established commercial accounting practice. The 
acceptable points at which sales may be reported include--
    (i) Receipt of order;
    (ii) Shipment or delivery, as applicable;
    (iii) Issuance of an invoice; or
    (iv) Payment.
    (2) Contract sales shall be rounded to the nearest whole dollar 
and reported within 30 calendar days following the completion of 
each reporting quarter. The Contractor shall electronically report 
the quarterly dollar value of sales, including ``zero'' sales, by 
utilizing the automated reporting system. Prior to using this 
automated system, the Contractor shall complete contract 
registration at the Vendor Support Center (VSC) website. The website 
address, as well as registration instructions and reporting 
procedures, will be provided at the time of award. The Contractor 
shall report sales separately for each Special Item Number (SIN) and 
shall continue to furnish quarterly reports through physical 
completion of the last outstanding task order or delivery order of 
the contract.
    (3) Reportable sales under the contract are those resulting from 
sales of contract items to authorized users unless the purchase was 
conducted pursuant to a separate contracting authority such as a 
Governmentwide Acquisition Contract (GWAC); a separately awarded FAR 
Part 12, FAR Part 13, FAR Part 14, or FAR Part 15 procurement; or a 
non-FAR contract. Sales made to state and local governments under 
Cooperative Purchasing, Recovery Purchasing, or other similar 
authority are reportable sales.
    (4) The Contractor shall convert the total value of sales made 
in foreign currency to U.S. dollars using the ``Treasury Reporting 
Rates of Exchange'' issued by the U.S. Department of Treasury, 
Financial Management Service. The Contractor shall

[[Page 4629]]

use the issue of the Treasury report in effect on the last day of 
the calendar quarter. The report is available from Financial 
Management Service, International Funds Branch, Telephone: (202) 
874-7994, Internet: http://www.fms.treas.gov/intn.html.
    (b) Remitting the Industrial Funding Fee (IFF). The Contractor 
shall remit the IFF at the rate set by GSA's FSS.
    (1) The Multiple Award Schedule Program recoups it operating 
costs by charging an Industrial Funding Fee (IFF) to ordering 
activities. GSA receives the IFF from ordering activities by 
including the fee in prices/rates of awarded schedule supplies and/
or services. The fee is collected by the Contractor and is passed to 
GSA. Offerors must include the IFF in their prices/rates. 
Contractors may NOT absorb the fee and the fee is non-negotiable. 
GSA will post notice of the current IFF rate at the Vendor Support 
Center.
    (2) The Contractor shall remit the IFF electronically, rounded 
to the nearest whole U.S. dollar. The IFF must be received by GSA 
within 30 calendar days after the end of the reporting quarter. 
Final payment must be received by GSA within 30 days after physical 
completion of the last outstanding task order or delivery order of 
the contract. Specific instructions for electronically remitting the 
IFF will be made available through the Vendor Support Center 
website.
    (3) The IFF represents a percentage of the total quarterly sales 
reported. This percentage is set at the discretion of GSA, with the 
unilateral right to change the percentage at any time, but not more 
than once per year. Reasonable notice prior to the effective date of 
the change will be provided.
    (4) Failure to remit the full amount of the IFF within 30 
calendar days after the end of the applicable reporting period 
constitutes a contract debt to the United States Government under 
the terms of FAR Subpart 32.6. The Government may exercise all 
rights under the Debt Collection Improvement Act of 1996, including 
withholding payments or interest on the debt (see FAR clause 52.232-
17, Interest). Should the Contractor fail to submit the required 
sales reports, falsify them, or fail to timely pay the IFF, this is 
sufficient cause for the Government to terminate the contract for 
cause.


(End of clause)


552.238-75  [Amended]

    23. Amend section 552.238-75 by removing from the introductory 
paragraph ``538.273(b)(2)'' and adding ``538.1203(c)(51)'' in its 
place.


552.238-77  [Amended]

    24. Amend section 552.238-77 by removing from the introductory 
paragraph ``538.7004(a)'' and adding ``538.1203(c)(52)'' in its place.


552.238-78  [Amended]

    25. Amend section 552.238-78 by--
    a. Removing from the introductory paragraph ``538.7004(b)'' and 
adding ``538.1203(c)(53)'' in its place; and
    b. Removing from Alternate I ``538.7104(b)'' and adding 
``538.1203(c)(53)'' in its place; and


552.238-79  [Amended]

    26. Amend section 552.238-79 by removing from the introductory 
paragraph ``538.7004(c)'' and adding ``538.1203(c)(54)'' in its place;
    27. Add sections 552.238-81 through 552.238-85 to read as follow:


552.238-81  Placement of Orders by Eligible Ordering Activities.

    As prescribed in 538.1203(c)(55) insert the following clause:
PLACEMENT OF ORDERS BY ELIGIBLE ORDERING ACTIVITIES (DATE)
    (a) See 552.238-78, Scope of Contract (Eligible Ordering 
Activities), for who may order under this contract.
    (b) Orders may be placed through Electronic Data Interchange 
(EDI) or mailed in paper form. EDI orders shall be placed using the 
American National Standards Institute (ANSI) X12 Standard for 
Electronic Data Interchange (EDI) format.
    (c) If the Contractor agrees, GSA's Federal Acquisition Service 
(FAS) will place all orders by EDI using computer-to-computer EDI. 
If computer-to-computer EDI is not possible, FAS will use an 
alternative EDI method allowing the Contractor to receive orders by 
facsimile transmission. Subject to the Contractor's agreement, other 
eligible ordering activities may place orders by EDI.
    (d) When computer-to-computer EDI procedures will be used to 
place orders, the Contractor shall enter into one or more Trading 
Partner Agreements (TPA) with each ordering activity placing orders 
electronically in order to ensure mutual understanding by the 
parties of certain electronic transaction conventions and to 
recognize the rights and responsibilities of the parties as they 
apply to this method of placing orders. The TPA must identify, among 
other things, the third party provider(s) through which electronic 
orders are placed, the transaction sets used, security procedures, 
and guidelines for implementation. Ordering activities may obtain a 
sample format to customize as needed from the office specified in 
paragraph (g) of this clause.
    (e) The Contractor shall be responsible for providing its own 
hardware and software necessary to transmit and receive data 
electronically. Additionally, each party to the TPA shall be 
responsible for the costs associated with its use of third party 
provider services.
    (f) Nothing in the TPA will invalidate any part of this contract 
between the Contractor and the General Services Administration. All 
terms and conditions of this contract that otherwise would be 
applicable to a mailed order shall apply to the electronic order.
    (g) The basic content and format of the TPA will be provided by: 
General Services Administration, Acquisition Operations and 
Electronic Commerce Center (FCS) Washington, DC 20406, Telephone: 
[Contracting Officer insert appropriate telephone numbers], FAX: 
[Contracting Officer insert appropriate telephone numbers].


(End of clause)

    Alternate I (Date). As prescribed in 538.1203(c)(55), substitute 
the following paragraphs (a), (c), and (d) for paragraphs (a), (c), 
and (d) of the basic clause:
    (a) See 552.238-78, Scope of Contract (Eligible Ordering 
Activities), Alternate I for who may order under this contract.
    (c) If the Contractor agrees, GSA's Federal Acquisition Service 
(FAS) will place all orders by EDI using computer-to-computer EDI. 
If computer-to-computer EDI is not possible, FAS will use an 
alternative EDI method allowing the Contractor to receive orders by 
facsimile transmission. Subject to the Contractor's agreement, other 
eligible ordering activities may place orders by EDI.
    (d) When computer-to-computer EDI procedures will be used to 
place orders, the Contractor shall enter into one or more Trading 
Partner Agreements (TPA) with each ordering activity placing orders 
electronically in order to ensure mutual understanding by the 
parties of certain electronic transaction conventions and to 
recognize the rights and responsibilities of the parties as they 
apply to this method of placing orders. The TPA must identify, among 
other things, the third party provider(s) through which electronic 
orders are placed, the transaction sets used, security procedures, 
and guidelines for implementation. Ordering activities may obtain a 
sample format to customize as needed from the office specified in 
paragraph (g) of this clause.
    Alternate II (Date). As prescribed in 538.1203(c)(55) substitute 
the following paragraphs (a), (c), and (d) for paragraphs (a), (c), 
and (d) of the basic clause:
    (a) See 552.238-78, Scope of Contract (Eligible Ordering 
Activities), Alternate II for who may order under this contract.
    (c) If the Contractor agrees, GSA's Federal Acquisition Service 
(FAS) will place all orders by EDI using computer-to-computer EDI. 
If computer-to-computer EDI is not possible, FAS will use an 
alternative EDI method allowing the Contractor to receive orders by 
facsimile transmission. Subject to the Contractor's agreement, other 
eligible ordering activities may place orders by EDI.
    (d) When computer-to-computer EDI procedures will be used to 
place orders, the Contractor shall enter into one or more Trading 
Partner Agreements (TPA) with each ordering activity placing orders 
electronically in order to ensure mutual understanding by the 
parties of certain electronic transaction conventions and to 
recognize the rights and responsibilities of the parties as they 
apply to this method of placing orders. The TPA must identify, among 
other things, the third party provider(s) through which electronic 
orders are placed, the transaction sets used, security procedures, 
and guidelines for implementation. Ordering activities may obtain a 
sample format to customize as needed from the office specified in 
paragraph (g) of this clause.


(End of clause)

[[Page 4630]]

552.238-82  Discounts for Prompt Payment (Federal Supply Schedule).

    As prescribed in 538.1203(c)(56), insert the following clause:
DISCOUNTS FOR PROMPT PAYMENT (FEDERAL SUPPLY SCHEDULES) (DATE)
    (a) Discounts for early payment (hereinafter referred to as 
``discounts'' or ``the discount'') will be considered in evaluating 
the relationship of the Offeror's concessions to the Government vis-
a-vis the Offeror's concessions to its commercial customers, but 
only to the extent indicated in this clause.
    (b) Discounts will not be considered to determine the low 
Offeror in the situation described in the ``Offers on Identical 
Products'' provision of this solicitation.
    (c) Uneconomical discounts will not be considered as meeting the 
criteria for award established by the Government. In this 
connection, a discount will be considered uneconomical if the 
annualized rate of return for earning the discount is lower than the 
``value of funds'' rate established by the Department of the 
Treasury and published quarterly in the Federal Register. The 
``value of funds'' rate applied will be the rate in effect on the 
date specified for the receipt of offers.
    (d) Discounts for early payment may be offered either in the 
original offer or on individual invoices submitted under the 
resulting contract. Discounts offered will be taken by the 
Government if payment is made within the discount period specified.
    (e) Discounts that are included in offers become a part of the 
resulting contracts and are binding on the Contractor for all orders 
placed under the contract. Discounts offered only on individual 
invoices will be binding on the Contractor only for the particular 
invoice on which the discount is offered.
    (f) In connection with any discount offered for prompt payment, 
time shall be computed from the date of the invoice. For the purpose 
of computing the discount earned, payment shall be considered to 
have been made on the date which appears on the payment check or the 
date on which an electronic funds transfer was made.


(End of clause)


552.238-83  Contractor's Billing Responsibilities.

    As prescribed in 538.1203(c)(57) insert the following clause:
CONTRACTOR'S BILLING RESPONSIBILITIES (DATE)
    (a) The Contractor is required to perform all billings made 
pursuant to this contract. However, if the Contractor has dealers 
that participate on the contract and the billing/payment process by 
the Contractor for sales made by the dealer is a significant 
administrative burden, the following alternative procedures may be 
used. Where dealers are allowed by the Contractor to bill ordering 
activities and accept payment in the Contractor's name, the 
Contractor agrees to obtain from all dealers participating in the 
performance of the contract a written agreement, which will require 
dealers to--
    (1) Comply with the same terms and conditions regarding prices 
as the Contractor for sales made under the contract;
    (2) Maintain a system of reporting sales under the contract to 
the manufacturer, which includes--
    (i) The date of sale;
    (ii) The ordering activity to which the sale was made;
    (iii) The service or supply/model sold;
    (iv) The quantity of each service or supply/model sold;
    (v) The price at which it was sold, including discounts; and
    (vi) All other significant sales data.
    (3) Be subject to audit by the Government, with respect to sales 
made under the contract; and
    (4) Place orders and accept payments in the name of the 
Contractor in care of the dealer.
    (b) An agreement between a Contractor and its dealers pursuant 
to this procedure will not establish privity of contract between 
dealers and the Government.


(End of clause)


552.238-84  Payment by Credit Card.

    As prescribed in 538.1203(c)(58) insert the following clause:
PAYMENT BY CREDIT CARD (DATE)
    (a) Definitions.
    Credit card means any credit card used to pay for purchases, 
including the Governmentwide Commercial Purchase Card.
    Governmentwide commercial purchase card means a uniquely 
numbered credit card issued by a Contractor under GSA's 
Governmentwide Contract for Fleet, Travel, and Purchase Card 
Services to named individual Government employees or entities to pay 
for official Government purchases.
    Oral order means an order placed orally either in person or by 
telephone.
    (b) The Contractor must accept the credit card for payments 
equal to or less than the micro-purchase threshold (see Federal 
Acquisition Regulation 2.101) for oral or written orders under this 
contract.
    (c) The Contractor and the ordering agency may agree to use the 
credit card for dollar amounts over the micro-purchase threshold, 
and the Government encourages the Contractor to accept payment by 
the purchase card. The dollar value of a purchase card action must 
not exceed the ordering agency's established limit. If the 
Contractor will not accept payment by the purchase card for an order 
exceeding the micro-purchase threshold, the Contractor must so 
advise the ordering agency within 24 hours of receipt of the order.
    (d) The Contractor shall not process a transaction for payment 
through the credit card clearinghouse until the purchased supplies 
have been shipped or services performed. Unless the cardholder 
requests correction or replacement of a defective or faulty item 
under other contract requirements, the Contractor must immediately 
credit a cardholder's account for items returned as defective or 
faulty.
    (e) Payments made using the Governmentwide commercial purchase 
card are not eligible for any negotiated prompt payment discount. 
Payment made using an ordering activity debit card will receive the 
applicable prompt payment discount.


(End of clause)


552.238-85  Payments by Non-Federal Ordering Activities.

    As prescribed in 538.1203(c)(59), insert the following clause:
PAYMENTS BY NON-FEDERAL ORDERING ACTIVITIES (DATE)
    If eligible non-federal ordering activities are subject to a 
State prompt payment law, the terms and conditions of the applicable 
State law apply to the orders placed under this contract by such 
activities. If eligible non-federal ordering activities are not 
subject to a State prompt payment law, the terms and conditions of 
the Federal Prompt Payment Act as reflected in Federal Acquisition 
Regulation clause 52.232-25, Prompt Payment, or 52.212-4, Contract 
Terms and Conditions--Commercial Items, apply to such activities in 
the same manner as to Federal ordering activities.


(End of clause)


552.246-73  [Redesignated as 552.238-86 and Revised]

    28. Redesignate section 552.246-73 as section 552.238-86 and revise 
it to read as follows:


552.238-86  Warranty-Multiple Award Schedule.

    As prescribed in 538.1203(c)(60), insert the following clause:
WARRANTY-MULTIPLE AWARD SCHEDULE (DATE)
    (a) Applicable to domestic locations. Unless specified otherwise 
in this contract, the Contractor's standard commercial warranty as 
stated in the Contractor's commercial price list applies to this 
contract.
    (b) Applicable to overseas destinations. Unless specified 
otherwise in this contract, the Contractor's standard commercial 
warranty as stated in the commercial price list applies to this 
contract, except as follows:
    (1) The Contractor must provide, at a minimum, a warranty on all 
non-consumable parts for a period of 90 days from the date that the 
ordering activity accepts the supply.
    (2) The Contractor must supply parts and labor required under 
the warranty provisions free of charge.
    (3) The Contractor must bear the transportation costs of 
returning the supplies to and from the repair facility, or the costs 
involved with Contractor personnel traveling to the ordering 
activity facility for the purpose of repairing the supply onsite, 
during the 90-day warranty period.


(End of clause)
    29. Add sections 552.238-87 through 552.238-94 to read as follows:


552.238-87  Warranty (I-FSS-542-A).

    As prescribed in 538.1203(c)(61), insert the following clause:

[[Page 4631]]

WARRANTY (I-FSS-542-A) (DATE)
    All necessary adjustments of equipment procured hereunder not 
occasioned by accident or misuse through fault or negligence by the 
Government shall be made by the Contractor at his own expense, 
including transportation costs, if any, during the 90-day period 
after acceptance by the Government. All equipment procured hereunder 
is guaranteed for a period of 1 year from date of acceptance. During 
the guarantee period all broken or defective parts not caused by 
accident or misuse through fault or negligence by the Government 
must be replaced, and all necessary equipment adjustment occasioned 
by such defective parts must be made, at the Contractor's expense, 
including labor, parts, and transportation cost, if any.


(End of clause)


552.238-88  Service Points (I-FSS-626).

    As prescribed in 538.1203(c)(62), insert the following clause:
SERVICE POINTS (I-FSS-626) (DATE)
    Offerors are required to include in their price lists the names 
and addresses of supply and service points and indicate whether they 
are stocking or service points, or both.


(End of clause)


552.238-89  Contract Sales Criteria (I-FSS-639).

    As prescribed in 538.1203(c)(63), insert the following clause:
CONTRACT SALES CRITERIA (I-FSS-639) (DATE)
    (a) A contract will not be awarded unless anticipated sales are 
expected to exceed $25,000 within the first 24 months following 
contract award, and are expected to exceed $25,000 in sales each 12-
month period thereafter.
    (b) The Government may cancel the contract in accordance with 
clause 552.238-73, Cancellation, unless reported sales are at the 
levels specified in paragraph (a) of this clause.


(End of clause)


552.238-90  Dealers and Suppliers (I-FSS-644).

    As prescribed in 538.1203(c)(64), insert the following clause:
DEALERS AND SUPPLIERS (I-FSS-644) (DATE)
    When requested by the Contracting Officer, if other than the 
manufacturer, the Offeror must submit prior to award of a contract, 
either (1) a letter of commitment from the manufacturer which will 
assure the Offeror of a source of supply sufficient to satisfy the 
Government's requirements for the contract period; or (2) evidence 
that the Offeror will have an uninterrupted source of supply from 
which to satisfy the Government's requirements for the contract 
period.


(End of clause)


552.238-91  Blanket Purchase Agreements (I-FSS-646).

    As prescribed in 538.1203(c)(65), insert the following clause:
BLANKET PURCHASE AGREEMENTS (I-FSS-646) (DATE)
    Blanket Purchase Agreements (BPAs) can reduce costs and save 
time because individual orders and invoices are not required for 
each procurement but can instead be documented on a consolidated 
basis. The Contractor agrees to enter into BPAs with ordering 
activities provided that:
    (a) The period of time covered by such agreements shall not 
exceed the period of the contract including option year period(s);
    (b) Orders placed under such agreements shall be issued in 
accordance with all applicable regulations and the terms and 
conditions of the contract; and
    (c) BPAs may be established to obtain the maximum discount 
(lowest net price) available in those schedule contracts containing 
volume or quantity discount arrangements.


(End of clause)


552.238-92  Dissemination of Information by Contractor (I-FSS-680).

    As prescribed in 538.1203(c)(66), insert the following clause:
DISSEMINATION OF INFORMATION BY CONTRACTOR (I-FSS-680) (DATE)
    The Government will provide the Contractor with a single copy of 
the resulting Federal Supply Schedule. However, it is the 
responsibility of the Contractor to furnish all sales outlets 
authorized to participate in the performance of the contract with 
the terms, conditions, pricing schedule, and other appropriate 
information.


(End of clause)


552.238-93  Purchase of Open Market Items (CI-FSS-055).

    As prescribed in 538.1203(c)(67), insert the following clause:
PURCHASE OF OPEN MARKET ITEMS (CI-FSS-055) (DATE)
    For administrative convenience, an ordering activity Contracting 
Officer may add items not on the Federal Supply Multiple Award 
Schedule (MAS)--referred to as open market items--to a Federal 
Supply Schedule blanket purchase agreement (BPA) or an individual 
task or delivery order, only if--
    (a) All applicable acquisition regulations pertaining to the 
purchase of the items not on the Federal Supply Schedule have been 
followed (e.g., publicizing (Part 5), competition requirements (Part 
6), acquisition of commercial items (Part 12), contracting methods 
(Parts 13, 14, and 15), and small business programs (Part 19));
    (b) The ordering activity Contracting Officer has determined the 
price for the items not on the Federal Supply Schedule is fair and 
reasonable;
    (c) The items are clearly labeled on the order as items not on 
the Federal Supply Schedule; and
    (d) All clauses applicable to items not on the Federal Supply 
Schedule are included in the order.

    Note: Open Market Items are also known as incidental items, 
noncontract items, non-Schedule items, and items not on a Federal 
Supply Schedule contract. ODCs (Other Direct Costs) are not part of 
this contract and should be treated as open market purchases. 
Ordering Activities procuring open market items must follow FAR 
8.402(f).



(End of clause)


552.238-94  Contractor Tasks/Special Requirements (C-FSS-370).

    As prescribed in 538.1203(c)(68), insert the following clause:
CONTRACTOR TASKS/SPECIAL REQUIREMENTS (C-FSS-370) (DATE)
    (a) Security Clearances: The Contractor may be required to 
obtain/possess varying levels of security clearances in the 
performance of orders issued under this contract. All costs 
associated with obtaining/possessing such security clearances should 
be factored into the price offered under the Multiple Award 
Schedule.
    (b) Travel: The Contractor may be required to travel in 
performance of orders issued under this contract. Allowable travel 
and per diem charges are governed by Pub. L. 99-234 and FAR Part 31, 
and are reimbursable by the ordering agency or can be priced as a 
fixed price item on orders placed under the Multiple Award Schedule. 
Travel in performance of a task order will only be reimbursable to 
the extent authorized by the ordering agency. The Industrial Funding 
Fee does NOT apply to travel and per diem charges.
    (c) Certifications, Licenses and Accreditations: As a commercial 
practice, the Contractor may be required to obtain/possess any 
variety of certifications, licenses and accreditations for specific 
FSC/service code classifications offered. All costs associated with 
obtaining/ possessing such certifications, licenses and 
accreditations should be factored into the price offered under the 
Multiple Award Schedule program.
    (d) Insurance: As a commercial practice, the Contractor may be 
required to obtain/possess insurance coverage for specific FSC/
service code classifications offered. All costs associated with 
obtaining/possessing such insurance should be factored into the 
price offered under the Multiple Award Schedule program.
    (e) Personnel: The Contractor may be required to provide key 
personnel, resumes or skill category descriptions in the performance 
of orders issued under this contract. Ordering activities may 
require agency approval of additions or replacements to key 
personnel.
    (f) Organizational Conflicts of Interest: Where there may be an 
organizational conflict of interest as determined by the ordering 
agency, the Contractor's

[[Page 4632]]

participation in such order may be restricted in accordance with FAR 
Part 9.5.
    (g) Documentation/Standards: The Contractor may be requested to 
provide supplies or services in accordance with rules, regulations, 
OMB orders, standards and documentation as specified by the agency's 
order.
    (h) Data/Deliverable Requirements: Any required data/
deliverables at the ordering level will be as specified or 
negotiated in the agency's order.
    (i) Government-Furnished Property: As specified by the agency's 
order, the Government may provide property, equipment, materials or 
resources as necessary.
    (j) Availability of Funds: Many Government agencies' operating 
funds are appropriated for a specific fiscal year. Funds may not be 
presently available for any orders placed under the contract or any 
option year. The Government's obligation on orders placed under this 
contract is contingent upon the availability of appropriated funds 
from which payment for ordering purposes can be made. No legal 
liability on the part of the Government for any payment may arise 
until funds are available to the ordering Contracting Officer.
    (k) Overtime: For professional services, the labor rates in the 
Schedule should not vary by virtue of the Contractor having worked 
overtime. For services applicable to the Service Contract Act (as 
identified in the Schedule), the labor rates in the Schedule will 
vary as governed by labor laws (usually assessed at time and a half 
of the labor rate).


(End of clause)


552.238-95  [Amended]

    30. Amend newly designated section 552.238-95 by removing from the 
introductory paragraph ``511.404(a)(2)'' and adding ``538.1203(c)(69)'' 
in its place.


552.238-96  [Amended]

    31. Amend newly designated section 552.238-96 by--
    a. Removing from the introductory paragraph ``512.301(a)(1)'' and 
adding ``538.1203(c)(70)'' in its place;
    b. Removing from the clause heading ``(Aug 1997)'' and adding 
``(Date)'' in its place;
    c. Removing from the introductory text of paragraph (b) 
``products'' and ``product'' and adding ``supplies'' and ``supply'' in 
its place, respectively; and
    d. Removing from paragraph (c)(2) ``offeror'' and adding 
``Offeror'' in its place.


552.238-97  [Amended]

    32. Amend the newly designated 552.238-97 by removing from the 
introductory paragraph ``515.209-70(c)'' and adding ``538.1203(c)(71)'' 
in its place.


552.238-98  [Amended]

    33. Amend the newly designated section by removing from the 
introductory paragraph ``515.408(d)'' and adding ``538.1203(c)(72)'' in 
its place.
    34. Add sections 552.238-99 through 552.238-102 to read as follows:


552.238-99  Task Order Period of Performance.

    As prescribed in 538.1203(c)(73), insert the following clause:
TASK ORDER PERIOD OF PERFORMANCE (DATE)
    The term for each order placed under the basic contract shall be 
specified in the individual order. Under no circumstances may an 
order be placed under the basic contract if the basic contract has 
expired, or has been terminated or cancelled by the government. No 
orders may exceed ten (10) years, inclusive of options, from the 
date that the order is placed; however, no orders may extend more 
than five (5) years after the expiration of the basic contract. 
Priced order options, if included in the initial evaluation and 
issuance of the order, may be exercised after the expiration date of 
the basic contract. Notwithstanding anything to the contrary clause, 
a multi-year order placed under the basic contract must be 
consistent with FAR Subpart 17.1 and any applicable funding 
restrictions.


(End of Clause)


552.238-100  Deliveries Beyond the Contractual Period--Placing of 
Orders (G-FSS-910).

    As prescribed in 538.1203(c)(74), insert the following clause:
DELIVERIES BEYOND THE CONTRACTUAL PERIOD--PLACING OF ORDERS (G-FSS-910) 
(DATE)
    In accordance with the Scope of Contract clause, this contract 
covers all requirements that may be ordered, as distinguished from 
delivered during the contract term. This is for the purpose of 
providing continuity of supply or operations by permitting ordering 
activities to place orders as requirements arise in the normal 
course of operations. Accordingly, any order mailed (or received, if 
forwarded by other means than through the mail) to the Contractor on 
or before the expiration date of the contract, and providing for 
delivery within the number of days specified in the contract, shall 
constitute a valid order.


(End of Clause)


552.238-101  Award (L-FSS-59).

    As prescribed in 538.1203(c)(75), insert the following provision:
AWARD (L-FSS-59) (DATE)
    Until a formal notice of award is issued, no communication by 
the Government, whether written or oral, shall be interpreted as a 
promise that an award will be made.


(End of Provision)


552.238-102  Interpretation of Contract Requirements (I-FSS-965).

    As prescribed in 538.1203(c)(76), insert the following provision:
INTERPRETATION OF CONTRACT REQUIREMENTS (I-FSS-965) (DATE)
    No interpretation of any provision of this contract, including 
applicable specifications, shall be binding on the Government unless 
furnished or agreed to in writing by the Contracting Officer or his 
designated representative.


(End of Provision)

 [FR Doc. E9-1096 Filed 1-23-09; 8:45 am]
BILLING CODE 6820-61-P