[Federal Register Volume 75, Number 72 (Thursday, April 15, 2010)]
[Rules and Regulations]
[Pages 19827-19863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7967]



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Part III





Department of the Interior





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48 CFR Chapter 14



Acquisition Regulation Rewrite; Interim Final Rule

Federal Register / Vol. 75, No. 72 / Thursday, April 15, 2010 / Rules 
and Regulations

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DEPARTMENT OF THE INTERIOR

Office of the Secretary

48 CFR Chapter 14

RIN 1093-AA11


Acquisition Regulation Rewrite

AGENCY: Office of the Secretary, Interior.

ACTION: Interim final rule.

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SUMMARY: The Department of the Interior (DOI) is taking interim final 
action on administrative changes to the Department of the Interior 
Acquisition Regulation (DIAR). This action revises the DIAR, 48 CFR 
Chapter 14, but does not impose any new requirements on DOI 
contractors. The revisions in this interim final rule will make minor 
corrections to and streamline DOI acquisition processes to be 
consistent with and non-duplicative of the Federal Acquisition 
Regulation (FAR). Some DIAR coverage is being revised and obsolete 
material is being removed. FAR clauses are now available that provide 
coverage for the DIAR clauses that are removed by this rule.

DATES: This rule is effective on May 17, 2010. Submit comments by June 
14, 2010.

ADDRESSES: You may submit comments on the rulemaking through the 
Federal eRulemaking Portal at http://www.regulations.gov. Please use 
the Regulation Identifier Number (RIN) 1093-AA11 in your message. 
Follow the instructions on the Web site for submitting comments.

FOR FURTHER INFORMATION CONTACT: Tiffany A. Schermerhorn, Senior 
Procurement Analyst, Office of Acquisition and Property Management, 
Office of the Secretary, telephone (202) 513-0747, fax (202) 219-4244, 
or e-mail [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    This rule revises the Department of the Interior Acquisition 
Regulation (DIAR) in order to update references to other federal and 
Departmental directives, remove obsolete material and references, and 
clarify and streamline internal policies and procedures.
    This rule is a result of the DIAR Rewrite Project. DOI is 
undertaking this project to revise the DIAR to maintain consistency 
with the FAR and make other administrative changes. No DOI clauses are 
being changed, with the exception of the removal of obsolete clauses. 
We view this as a noncontroversial amendment and anticipate no adverse 
comment. This rule does not impose any new requirements on DOI 
contractors. All changes are minor and are consistent with the FAR. We 
are providing an opportunity for the public to comment on this interim 
rule and will carefully consider and respond to any comments that we 
receive. We have found good cause to publish this rule without prior 
proposal. We have determined that it would be impracticable, 
unnecessary, and contrary to the public interest to delay publication 
of this rule in final form pending an opportunity for public comment.

II. Procedural Matters

1. Public Availability of Comments

Public availability of comments
    Before including your address, phone number, e-mail address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.

2. Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget under Executive Order 
12866.
    (1) This rule will not have an effect of $100 million or more on 
the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients.
    (4) This rule does not raise novel legal or policy issues.

3. The Regulatory Flexibility Act

    The Department of the Interior certifies that this rule will not 
have a significant economic effect on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
This rule will not impose any new requirements on small entities.

4. Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    a. Does not have an annual effect on the economy of $100 million or 
more.
    b. Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    c. Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

5. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments or the private sector of more than $100 million per 
year. The rule will not have a significant or unique effect on State, 
local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

6. Takings (Executive Order 12630)

    Under the criteria in Executive Order 12630, this proposed rule 
does not have significant takings implications. This rule does not 
impose conditions or limitations on the use of any private property; 
consequently, a takings implication assessment is not required.

7. Federalism (Executive Order 13132)

    Under the criteria in Executive Order 13132, this rule does not 
have Federalism implications. This rule does not substantially or 
directly affect the relationship between Federal and State governments 
or impose costs on States or localities. A Federalism Assessment is not 
required.

8. Civil Justice Reform (Executive Order 12988)

    This rule complies with the requirements of Executive Order 12988. 
Specifically, this rule:
    (a) Meets the criteria of section 3(a) requiring that all 
regulations be reviewed to eliminate errors and ambiguity and be 
written to minimize litigation; and
    (b) Meets the criteria of section 3(b)(2) of the Order.

9. Paperwork Reduction Act of 1995

    This rule does not contain an information collection, as defined by 
the Paperwork Reduction Act.

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10. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act of 1969 is not required.

11. Data Quality Act

    In developing this rule we did not conduct or use a study, 
experiment, or survey requiring peer review under the Data Quality Act 
(Pub. L. 106-554).

12. Effects on the Energy Supply

    This rule is not a significant energy action under the definition 
in Executive Order 13211. A Statement of Energy Effects is not 
required.

13. Clarity of This Regulation

    We are required by Executive Orders 12866 and 12988 and by the 
Presidential Memorandum of June 1, 1998, to write all rules in plain 
language. This means that each rule we publish must:
    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use clear language rather than jargon;
    (d) Be divided into short sections and sentences; and
    (e) Use lists and tables wherever possible.
    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us revise the rule, your comments should be as specific as 
possible. For example, you should tell us the numbers of the sections 
or paragraphs that you find unclear, which sections or sentences are 
too long, which sections where you feel lists or tables would be 
useful, etc.

List of Subjects in 48 CFR Chapter 14

    Government Procurement.

    Dated: March 22, 2010.
Pamela K. Haze,
Deputy Assistant Secretary, Budget, Finance, Performance and 
Acquisition.

0
For the reasons set out in the preamble, we are revising Chapter 14 of 
Title 48 Code of Federal Regulations to read as follows:
Title 48--Federal Acquisition Regulations System
CHAPTER 14--DEPARTMENT OF THE INTERIOR
SUBCHAPTER A--GENERAL
PART 1401--DEPARTMENT OF THE INTERIOR ACQUISITION REGULATION SYSTEM
PART 1402--DEFINITIONS OF WORDS AND TERMS
PART 1403--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST
PART 1404--ADMINISTRATIVE MATTERS
SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING
PART 1405--PUBLICIZING CONTRACT ACTIONS
PART 1406--COMPETITION REQUIREMENTS
PART 1407--ACQUISITION PLANNING
PART 1408--REQUIRED SOURCES OF SUPPLIES AND SERVICES
PART 1409--CONTRACTOR QUALIFICATIONS
PARTS 1410--1412 [RESERVED]
SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
PART 1413--SIMPLIFIED ACQUISITION PROCEDURES
PART 1414--SEALED BIDDING
PART 1415--CONTRACTING BY NEGOTIATION
PART 1416--TYPES OF CONTRACTS
PART 1417--SPECIAL CONTRACTING METHODS
PART 1418--[RESERVED]
SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
PART 1419--SMALL BUSINESS PROGRAMS
PARTS 1420--1421 [RESERVED]
PART 1422--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
PART 1423--[RESERVED]
PART 1424--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION
PART 1425--FOREIGN ACQUISITION
PART 1426--OTHER SOCIOECONOMIC PROGRAMS
SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
PART 1427--PATENTS, DATA, AND COPYRIGHTS
PART 1428--BONDS AND INSURANCE
PART 1429--TAXES
PART 1430--COST ACCOUNTING STANDARDS ADMINISTRATION
PART 1431--CONTRACT COST PRINCIPLES AND PROCEDURES
PART 1432--CONTRACT FINANCING
PART 1433--PROTESTS, DISPUTES, AND APPEALS
SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
PART 1434--[RESERVED]
PART 1435--RESEARCH AND DEVELOPMENT CONTRACTING
PART 1436--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
PART 1437--SERVICE CONTRACTING
PARTS 1438--1441 --[RESERVED]
SUBCHAPTER G--CONTRACT MANAGEMENT
PART 1442--CONTRACT ADMINISTRATION AND AUDIT SERVICES
PART 1443--CONTRACT MODIFICATIONS
PART 1444--[RESERVED]
PART 1445--GOVERNMENT PROPERTY
PART 1446--QUALITY ASSURANCE
PART 1447--[RESERVED]
PART 1448--VALUE ENGINEERING
PART 1449--TERMINATION OF CONTRACTS
PART 1450--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT
PART 1451--USES OF GOVERNMENT SOURCES BY CONTRACTORS
PART 1452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
SUBCHAPTER A--GENERAL

PART 1401--DEPARTMENT OF THE INTERIOR ACQUISITION REGULATION SYSTEM

Subpart 1401.1--Purpose, Authority, Issuance
Sec.
1401.105-3 Copies.
Subpart 1401.2--Administration
1401.201 Maintenance of the Federal Acquisition Regulation (FAR).
1401.201-1 The Civilian Agency Acquisition Council (CAAC).
Subpart 1401.3--Agency Acquisition Regulations
1401.301 Policy.
1401.301-70 Definitions.
1401.303 Publication and codification.
1401.304 Agency control and compliance procedures.
1401.370 Acquisition Managers' Partnership.
Subpart 1401.4--Deviations from the FAR and DIAR
1401.403 Individual deviations.
1401.404 Class deviations.
1401.405 Deviations pertaining to treaties and executive agreements.
Subpart 1401.6--Career Development, Contracting Authority, and 
Responsibilities
1401.601 General.
1401.602 Contracting officers.
1401.602-1 Authority.
1401.602-3 Ratification of unauthorized commitments.
1401.603 Selection, appointment and termination of appointment.
1401.603-1 General.
1401.603-2 Selection.
1401.603-3 Appointment.
1401.670 Contracting officers' representatives.
1401.670-1 Contract clause.
Subpart 1401.70--Acquisition Reviews
1401.7000 Scope of subpart.
1401.7001 Review and approval of contract actions.

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1401.7001-1 Review and approval by Assistant Secretaries.
1401.7001-2 Legal review by the Office of the Solicitor.
1401.7001-3 Administrative review and approval by bureaus and 
offices.
1401.7001-4 Acquisition performance measurement systems.
1401.7001-5 Acquisition Management Reviews (AMRs).

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

Subpart 1401.1--Purpose, Authority, Issuance


1401.105-3  Copies.

    Copies of the Department of the Interior Acquisition Regulation 
(DIAR) and Department-wide internal guidance may be obtained from the 
Office of Acquisition and Property Management, Office of the Secretary, 
U.S. Department of the Interior, 1849 C Street (MS 2607-MIB), NW., 
Washington, DC 20240. Additional information on DOI may be obtained on 
the Internet at http://www.doi.gov/pam.

Subpart 1401.2--Administration


1401.201  Maintenance of the Federal Acquisition Regulation (FAR).


1401.201-1  The Civilian Agency Acquisition Council (CAAC).

    The Department of the Interior is represented on the CAAC by a 
member of the Office of Acquisition and Property Management (PAM).

Subpart 1401.3--Agency Acquisition Regulations


1401.301  Policy.

    (a)(1) Subject to the authorities in paragraph (c) of this section, 
the Department issues acquisition regulations which implement or 
supplement the FAR under the DIAR System. The regulation, as part of 
the FAR system, is issued in accordance with the policy in FAR 
1.301(a)(1).
    (2) Subject to the authorities in paragraph (c) of this section, 
the Department also issues internal guidance and instructions under the 
DIAR System in accordance with the policy in FAR 1.301(a)(2).
    (b) Public participation in promulgating acquisition regulations, 
which are published in the Federal Register, shall follow the 
Department's rulemaking procedures prescribed in Part 318, Chapter 5 of 
the Departmental Manual (318 DM 5) and the procedures in FAR Subpart 
1.5.
    (c) Regulations and internal guidance under the DIAR System are 
issued pursuant to the authority of the Secretary of the Interior under 
5 U.S.C. 301 and 40 U.S.C. 486(c). This authority has been delegated to 
the Assistant Secretary--Policy, Management and Budget under Part 209, 
Chapter 4.1A of the Departmental Manual (209 DM 4.1A).


1401.301-70  Definitions.

    (a) ``Implement,'' as used in this subpart, means coverage that 
expands upon or specifically indicates the manner of compliance with 
related higher level coverage.
    (b) ``Supplement,'' as used in this subpart, means material for 
which there is no counterpart in higher-level coverage.


1401.303  Publication and codification.

    (a)(1) Implementing and supplementing regulations issued under the 
DIAR System are codified under Chapter 14 in Title 48, Code of Federal 
Regulations and shall parallel the FAR in format, arrangement, and 
numbering system.
    (2)(i) Department-wide regulations are assigned parts 1401 through 
1479 under 48 CFR, Chapter 14.
    (ii) Where material in the FAR requires no implementation, there 
will be no corresponding number in the DIAR. Thus, there are gaps in 
the DIAR sequence of numbers where the FAR, as written, is deemed 
adequate. Supplemental material shall be numbered as specified in FAR 
1.303.
    (3) Bureau-wide regulations are authorized for codification in 
Appendices to Chapter 14, as assigned by the Director, PAM, in 
accordance with 1401.304(a)(3).
    (b) Regulations implementing the FAR or DIAR are numbered using 
Parts 1401 through 1479. Supplemental material is numbered using Parts 
1480 through 1499. Numbers for implementing or supplementing 
regulations by bureaus/offices are preceded by a prefix to the number 
14 (indicating Chapter 14-DIAR) for the organization indicated by 
lettered appendices as follows:
    (1) Bureau of Indian Affairs--BIA
    (2) Bureau of Reclamation--WBR
    (3) National Business Center--NBC
    (4) Bureau of Land Management--LLM
    (5) U.S. Geological Survey--WGS
    (6) Office of Surface Mining Reclamation & Enforcement--LSM
    (7) Minerals Management Service--LMS
    (8) National Park Service--FNP
    (9) U.S. Fish and Wildlife Service--FWS
    (c) e.g., FAR 1.3 then DIAR 1401.3 [Department level] then in 
Appendix A, BIA 1401.3 [Bureau level].


1401.304  Agency control and compliance procedures.

    (a)(1) The DIAR System is under the direct oversight and control of 
the Director, PAM, who is responsible for reviewing and preparing the 
issuance of all Department-wide and bureau-wide acquisition regulations 
published in the Federal Register to ensure compliance with FAR Part 1. 
Review procedures are contained in Part 401 of the Departmental Manual 
(401 DM) and paragraph (a)(3) of this section. One copy of all material 
issued shall be furnished to the Director, PAM, at the time of 
issuance.
    (2) The Director, PAM, is also responsible for reviewing and 
issuing unpublished Department-wide internal guidance under the DIAR 
System.
    (3) A bureau wishing to issue bureau-wide regulations shall submit 
a request to the Director, PAM, for authority to proceed with the 
regulation. The request shall include a justification for the 
regulation and a proposed outline of the regulation and the significant 
contents of the coverage to be included. The Director, PAM, shall 
review the request to determine whether the regulation should be 
considered for inclusion in the DIAR or FAR. If a determination is made 
that the regulation is appropriate for inclusion in the DIAR or FAR, 
PAM will process the regulation accordingly. If a determination is made 
that the regulation is appropriate for inclusion in bureau-wide 
regulations only, the Director, PAM, shall assign an appendix to 48 CFR 
Chapter 14 and authorization shall be granted for the bureau to proceed 
with the regulation in accordance with the procedures referenced in 
1401.301(b). Rulemaking notices shall be submitted to the Director, 
PAM, for processing of AS/PMB approval under 401 DM 1.4C(3), before the 
appropriate program Assistant Secretary signs them.
    (4) HCAs are responsible for establishing and implementing formal 
procedures for oversight and control of all unpublished bureau-wide 
internal guidance issued to implement FAR or DIAR requirements. The 
Director, PAM, shall review and approve these procedures and they shall 
include:
    (i) Provisions for centralized issuance of all guidance and 
instructions using a directives system;
    (ii) Methods for periodic review and updating of all issuances;
    (iii) Distribution processes which ensure timely receipt by all 
affected contracting offices; and
    (iv) Provisions for maintaining compliance with FAR 1.304.
    (b) The Director, PAM, is responsible for evaluating coverage under 
the DIAR

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System to determine applicability to other agencies and for 
recommending coverage to the FAR Secretariat for inclusion in the FAR.


1401.370  Acquisition Managers' Partnership.

    (a) The Acquisition Managers' Partnership (AMP) is a forum for 
DOI's senior acquisition management community to work cooperatively and 
continuously to improve the management, efficiency and effectiveness of 
its procurement services in support of DOI's mission.
    (b) The AMP consists of the BPCs and representatives from PAM and 
OSDBU.
    (c) The AMP Charter provides that the Chairperson and Associate 
Chairperson are leadership roles that will rotate annually. The AMP 
Chairperson determines when the partnership will meet and develops 
meeting agendas. The Chairperson will distribute the meeting minutes to 
all members.

Subpart 1401.4--Deviations from the FAR and DIAR


1401.403  Individual deviations.

    (a) The Director, PAM, is authorized to approve deviations of FAR 
provisions (see FAR 1.4) or DIAR provisions which affect only one 
contracting action.
    (b) Requests for deviations under paragraph (a) of this section 
shall be submitted by the BPC and include justification for the 
deviation.
    (c) A copy of the approved deviation shall be included in the 
contract file.


1401.404  Class deviations.

    (a) The Director, PAM, is authorized to approve class deviations of 
FAR or DIAR provisions which affect more than one contracting action.
    (b) Requests for deviations under paragraph (a) of this section 
shall be submitted by the HCA and include justification for the 
deviation and the number of contracting actions which will be affected.
    (c) For a FAR class deviation the Director, PAM, shall consult with 
the CAAC, as required in FAR 1.404(a)(1), before authorizing the 
deviation.
    (d) A copy of each approved class deviation shall be referenced in 
the contract file.
    (e) Recommended revisions to the FAR and a copy of each approved 
class FAR deviation shall be transmitted to the FAR Secretariat by the 
Director, PAM, as required in FAR 1.404.


1401.405  Deviations pertaining to treaties and executive agreements.

    (a) The Director, PAM, is responsible for transmitting to the FAR 
Secretariat the information required in FAR 1.405(d).
    (b) For deviations not authorized by FAR 1.405(b) or (c), the 
Director, PAM, shall process the request for deviation through the FAR 
Secretariat.
    (c) Deviations authorized or requested under paragraph (d) or (e) 
of this section shall be submitted by the HCA to the Director, PAM for 
further action.

Subpart 1401.6--Career Development, Contracting Authority, and 
Responsibilities


1401.601  General.

    (a) The authority and responsibility vested in the Secretary to 
contract for authorized supplies and services is delegated to Assistant 
Secretaries.
    (b) The contracting authority and responsibility delegated to 
Assistant Secretaries may be redelegated to heads of bureaus and 
offices under their supervision in accordance with 200 DM 3. Such 
redelegations are published in bureau chapters of the Part 200 series 
of the Departmental Manual.
    (c) Bureau heads and assistant or associate heads thereof (known as 
HCAs as defined in 1402.1) may redelegate contracting authority only as 
prescribed in 1401.603.


1401.602  Contracting officers.


1401.602-1  Authority.

    Information on the limits of CO's authority shall be maintained by 
the HCA as required in FAR 1.602-1.


1401.602-3  Ratification of unauthorized commitments.

    (a) The HCA may redelegate ratification authority to the CCO as 
defined in Subpart 1402.1 and implemented in bureau procedures.
    (b) Legal concurrence is required prior to ratification of 
unauthorized actions for amounts greater than the micropurchase 
threshold.
    (c) Nonratifiable commitments shall be coordinated with the SOL.


1401.603  Selection, appointment and termination of appointment.


1401.603-1  General.

    BPCs are authorized to select and appoint COs and terminate their 
appointment as prescribed in the Department's Certificate of 
Appointment (COA) Manual. Copies of the manual may be obtained at 
http://www.doi.gov/pam/Acqworkfor.html.


1401.603-2  Selection.

    COs, regardless of series or organizational placement, must be 
certified at a level commensurate with their appointment level, as 
prescribed in the Department's Federal Acquisition Certification in 
Contracting (FAC-C) Program Manual. Director, PAM, is the approving 
authority for all new and reinstated FAC-C certifications. BPCs are 
authorized to approve renewal FAC-C certifications.


1401.603-3  Appointment.

    Purchase card holders may be appointed in writing or in accordance 
with the bureau/office procedures within the constraints of DOI 
Integrated Charge Card Program Policy Manual located at http://www.doi.gov/pam/chargecard. Additional guidance is available in the GSA 
Smart Pay program at http://www.gsa.gov/smartpay.


1401.670  Contracting officers' representatives.

    When a CO elects to appoint an individual to act as an authorized 
representative in the administration of a contract, such appointment 
must be made in accordance with the DOI Contracting Officers' 
Representative Manual available at http://www.doi.gov/pam/Acqworkfor.html.


1401.670-1  Contract clause.

    Insert the clause at 1452.201-70 in solicitations and contracts 
under which a COR or COTR will be appointed. Complete the fill-in 
before award.

Subpart 1401.70--Acquisition Reviews


1401.7000  Scope of subpart.

    This subpart sets forth requirements for review and approval of 
contract actions and the conduct of acquisition management reviews.


1401.7001  Review and approval of contract actions.


1401.7001-1  Review and approval by Assistant Secretaries.

    Contract actions shall be reviewed and approved by Assistant 
Secretaries as prescribed in 211-255 DM. Their approvals shall be 
obtained before requesting any other approvals prescribed in the DIAR.


1401.7001-2  Legal review by the Office of the Solicitor.

    The Office of the Solicitor (SOL) will review for legal sufficiency 
selected types and portions of contract actions from Bureaus and 
offices as required by the FAR, DIAR, and Department-wide policy. COs 
may request SOL advice or guidance on acquisition-related matters at 
any time. Matters related to legal sufficiency reviews that cannot be 
resolved between the respective CO and SOL Attorney-Advisor must be 
submitted for resolution to the HCA and the Assistant Solicitor for 
Acquisitions

[[Page 19832]]

and Intellectual Property, Washington, DC.


1401.7001-3  Administrative review and approval by bureaus and offices.

    (a) Administrative review and approval requirements for contract 
actions shall be established by the HCA and issued as internal bureau 
procedures. At a minimum, the review and approval requirements must 
address a representative percentage of the overall contract actions 
within a bureau/office. The procedures shall include:
    (1) Identifying the type and dollar amounts of the actions to be 
reviewed based on the volume and nature of the contracting office 
workload;
    (2) Designating the stage(s) in the acquisition process when the 
review(s) shall be performed;
    (3) Establishing review and approval levels based on the type and 
dollar amount of the action and the capabilities of the reviewing 
office;
    (4) Specifying what information is required to review the action, 
which includes creating a review and approval form and mechanism for 
following up on the correction of deficiencies noted in the review; and
    (5) Providing for periodic review of procedures and revision as 
required, to assure necessary controls are maintained.


1401.7001-4  Acquisition performance measurement systems.

    (a) The acquisition performance measurement system is a three-
pronged approach that includes self assessment, statistical data for 
validation and flexible quality reviews and assessment techniques. This 
system is required to:
    (1) Evaluate the effectiveness and efficiency of bureau and office 
acquisition systems;
    (2) Assess the adequacy of policies, procedures and regulations 
governing the acquisition process; and
    (3) Identify and implement changes necessary to improve the 
systems.
    (b) HCA's are responsible for ensuring contracting activity 
compliance with law and regulations through the review and oversight 
process.


1401.7001-5  Acquisition Management Reviews.

    Acquisition Management Reviews (AMRs) are to be conducted using the 
Government Accountability Office's (GAO) ``Framework for Assessing the 
Acquisition Function at Federal Agencies'' available at http://www.gao.gov/new.items/d05218g.pdf.

PART 1402--DEFINITIONS OF WORDS AND TERMS

Subpart 1402.1--Definitions
Sec.
1402.101 Definitions.
1402.170 Acronyms.

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

Subpart 1402.1--Definitions


1402.101  Definitions.

    As used in this part:
    Bureau procurement chief (BPC) is defined as the senior GS-1102 
official in a bureau or office. His/her authority may be delegated, 
unless specified otherwise, to the CCO. If the BPC is also the CO for 
an action requiring approval of the BPC, then approval shall be at the 
HCA level.
    Chief of the contracting office (CCO) is defined as the senior GS-
1102 within a contracting office unless otherwise specified by bureau/
office regulation. If the CCO is also the Contracting Officer (CO) for 
an action requiring approval of the CCO, then approval shall be at a 
level above the CCO in accordance with bureau procedures.
    Contracting activity is defined as an office with delegated 
procurement authority. Within the Office of the Secretary (OS), the 
Office of Inspector General (OIG) is a contracting activity. The 
National Business Center (NBC) contracts for the OS.
    Head of the agency (also called ``agency head'') is defined as the 
Secretary of the Interior and the Assistant Secretary--Policy, 
Management and Budget (AS/PMB).
    Head of the contracting activity (HCA) is defined as the assistant 
or associate administrative head of each bureau and office who has 
overall responsibility for managing contracting. In reference to the 
OS, the HCAs are the Assistant Inspector General for Management and 
Policy and the Director, NBC. The authority of the HCA may be 
redelegated to the BPC unless otherwise specified.
    Senior procurement executive is defined as the Director, Office of 
Acquisition and Property Management (PAM).


1402.170  Acronyms.

A&E Architect & Engineering
ACMIS Acquisition Career Management Information System
AMP Acquisition Manager's Partnership
AMR Acquisition Management Review
AS/PMB Assistant Secretary--Policy, Management and Budget
BPA Blanket Purchase Agreement
BPC Bureau Procurement Chief
BUDS Business Utilization Development Specialist
CA Competition Advocate
CAAC Civilian Agency Acquisition Council
CAS Cost Accounting Standards
CASB Cost Accounting Standards Board
CBCA Civilian Board of Contract Appeals
CCO Chief of the Contracting Office
CERCLA Comprehensive Environmental Response, Compensation and Liability 
Act
CFR Code of Federal Regulations
CIO Chief Information Officer
CO Contracting Officer
COA Certificate of Appointment
COI Conflicts of Interest
COR Contracting Officer's Representative
COTR Contracting Officer's Technical Representative
DISP Defense Industrial Security Program
DM Departmental Manual
DOI Department of the Interior
DOL Department of Labor
EC Electronic Commerce
FAR Federal Acquisition Regulation
FBMS Financial Business Management System
FPDS--NG Federal Procurement Data System--Next Generation
GAO Government Accountability Office
GIDEP Government-Industry Data Exchange Program
GPE Government Point of Entry
GPO Government Printing Office
GSA General Services Administration
GSBCA General Services Board of Contract Appeals
HCA Head of the Contracting Activity
IT Information Technology
IPMD Interior Property Management Directives
MBDA Minority Business Development Agency
OCIO Office of Chief Information Officer
OIG/IG Office of Inspector General/Inspector General
OFPP Office of Federal Procurement Policy
OHA Office of Hearings and Appeals
OMB Office of Management and Budget
OS Office of the Secretary
OSDBU Office of Small and Disadvantaged Business Utilization
PAM Office of Acquisition and Property Management
PMO Property Management Officer
PNM Procurement Negotiation Memorandum
SAT Simplified Acquisition Threshold
SBA Small Business Administration

[[Page 19833]]

SOL Office of the Solicitor
TFM Treasury Financial Manual
U.S.C. United States Code
VECP Value Engineering Change Proposal

PART 1403--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

Subpart 1403.1--Safeguards
Sec.
1403.101 Standards of conduct.
1403.101-3 Agency regulations.
1403.101-70 Technical evaluators and advisors.
1403.104 Procurement integrity.
1403.104-2 Applicability.
1403.104-4 Disclosure, protection and marking of contractor bid or 
proposal information and source selection information.
1403.104-7 Violations or possible violations.
Subpart 1403.2--Contractor Gratuities to Government Personnel
1403.203 Reporting suspected violations of the Gratuities clause.
1403.204 Treatment of violations.
Subpart 1403.3--Reports of Suspected Antitrust Violations
1403.303 Reporting suspected antitrust violations.
Subpart 1403.4--Contingent Fees
1403.405 Misrepresentations or violations of the Covenant Against 
Contingent Fees.
Subpart 1403.5--Other Improper Business Practices
1403.570 Restrictions on contractor advertising.
1403.570-1 Policy.
1403.570-2 Procedures.
1403.570-3 Contract clause.
Subpart 1403.6--Contracts With Government Employees or Organizations 
Owned or Controlled by Them
1403.602 Exceptions.
1403.603 Responsibilities of the contracting officer.
Subpart 1403.7--Voiding and Rescinding Contracts
1403.704 Policy.
1403.705 Procedures.
Subpart 1403.8--Limitation on the Payment of Funds to Influence Federal 
Transactions
1403.804 Policy.
1403.806 Processing suspected violations.
Subpart 1403.10--Contractor Code of Business Ethics and Conduct
1403.1004 Contract clause.

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

Subpart 1403.1--Safeguards


1403.101  Standards of conduct.


1403.101-3  Agency regulations.

    (a) Policy. DOI regulations governing the conduct and 
responsibilities of regular and special employees are contained in 43 
CFR Part 20. Additional guidance is contained in the DOI publication 
``Ethics Guide for Department of the Interior Employees.'' Copies of 
the Guide can be obtained from the Bureau/Office Ethics Office or on 
the Internet at http://www.doi.gov/ethics/. With regard to the 
provisions of 43 CFR Part 20, officials who participate personally and 
substantially in DOI procurements (as defined in FAR 3.104-3), may not 
solicit or accept any gift, gratuity, favor, entertainment, loan or 
anything of monetary value from a competing contractor during the 
conduct of a procurement.
    (b)(1) Officials may not accept or solicit from any competing 
contractor any services that involve the development of specifications, 
statements of work, evaluation criteria, or formal cost estimates to be 
used in a procurement unless such services are formally contracted for 
pursuant to the FAR and DIAR, and until the organizational COI 
provisions in FAR Subpart 9.5 have been fully addressed. This does not 
preclude COs from issuing formal Requests for Comment (RFC) or draft 
RFPs.
    (2) IT resources shall not be accepted, installed or utilized by 
the Department on a no cost, free of charge basis (this includes 
donated equipment but not public domain software), except as permitted 
by law.


1403.101-70  Technical evaluators and advisors.

    (a) Technical evaluators and advisors, including members of 
proposal evaluation committees, must render impartial, technically 
sound, and objective assistance and advice.
    (b) With the exception of contracting personnel, proposal 
evaluators and advisors are not required to file a Confidential 
Financial Disclosure Report (SF450) unless they occupy positions 
identified in 43 CFR 20.735.30(b). Therefore, when an individual is 
appointed as an evaluator or advisor, he/she must sign and return to 
the CO a Conflict of Interest Certificate in a format approved by the 
HCA. If a potential COI exists, the appointee must not be allowed to 
evaluate or advise on an offeror's proposal until the conflict has been 
resolved with the servicing Ethics Counselor.
    (c) During the evaluation process, each evaluator and advisor is 
responsible for ensuring that there are no financial or employment 
interests that conflict or give the appearance of conflicting with his 
or her duty to evaluate proposals impartially and objectively. Examples 
of situations that may be prohibited or represent a potential COI 
include:
    (1) Financial interest, including stocks and bonds, in a firm that 
submits, or is expected to submit, an offer in response to the 
solicitation;
    (2) Outstanding financial commitments to any actual or potential 
offeror;
    (3) Employment in any capacity, even if otherwise permissible, by 
any actual or potential offeror;
    (4) Employment within the last 12 months by an actual or potential 
offeror;
    (5) Any non-vested pension or re-employment rights, or interest in 
profit sharing or stock bonus plans arising out of past employment by 
an actual or potential offeror; or
    (6) Employment of any member of the immediate family by an actual 
or potential offeror.
    (d) Bureaus shall include a notice similar to the following in all 
correspondence notifying employees of appointments to serve as 
technical evaluators or advisors, formally called Technical Evaluation 
Panels (TEP) and/or Source Evaluation Boards (SEB):

    You shall not solicit or accept any gift, gratuity, favor, 
entertainment, loan, or anything of monetary value from a competing 
contractor involved in any action for which you participate 
personally and substantially under this delegation of authority. You 
are also reminded of other conduct prohibitions in FAR 3.104-3, 
including negotiating with competing contractors for future 
employment, disclosure of contractor bid or proposal information or 
source selection information, and post-Government employment 
restrictions.
    Such notice shall include an acknowledgement of receipt signed 
and returned by the employee.


1403.104  Procurement integrity.


1403.104-2  Applicability.

    Construction contracts (or subcontracts in such cases where the 
tribal contractor has subcontracted the activity) awarded under the 
authority of the Indian Self-Determination and Education Assistance 
Act, Public Law 93-638, as amended, are subject to the provisions 
promulgated under that Act.


1403.104-4  Disclosure, protection, and marking of contractor bid or 
proposal information and source selection information.

    (a) The following classes of persons may be authorized access to 
contractor

[[Page 19834]]

bid or proposal information and source selection information to the 
extent necessary to accomplish their requisite duties and 
responsibilities with respect to a particular procurement:
    (1) Individuals who generate contract requirements, including 
program and technical experts involved in the development of statements 
of work, specifications or similar documents;
    (2) Contracting personnel acting in support of the CO;
    (3) Secretarial, clerical and administrative personnel of the 
contracting activity directly involved in the procurement;
    (4) Supervisors in the CO's chain of command;
    (5) Attorneys in the SOL;
    (6) OIG contract auditors, and auditors of other agencies such as 
the Defense Contract Audit Agency (DCAA) and DHHS when requested to 
perform contract audits by the OIG;
    (7) Engineers and other technical support personnel who provide 
support to the CO;
    (8) Small Business Technical Advisors and BUDS;
    (9) SBA personnel responsible for reviewing determinations related 
to set-aside acquisitions, determining the small business status of 
offerors, processing applications for Certificates of Competency, 
reviewing subcontracting plans, or awarding contracts under the 8(a) 
program;
    (10) Personnel in DOL responsible for making eligibility 
determinations or for processing preaward EEO clearances;
    (11) Personnel who review bid protests in the GAO and the CBCA;
    (12) Personnel serving on technical evaluation boards or source 
selection evaluation boards;
    (13) Contract clearance personnel;
    (14) Departmental and bureau/office Competition Advocates;
    (15) Personnel in the Congressional liaison offices;
    (16) Agency ethics official and servicing Ethics Counselors;
    (17) Members of Congress and members of their staff. (See also DIAR 
1405.403.); and
    (18) Anyone specifically authorized by the CO.


1403.104-7  Violations or possible violations.

    (a)(1) The CO's determination that there is no impact on the 
procurement due to a possible violation of the Procurement Integrity 
Act and decision to proceed with contract award shall receive 
concurrence from an individual one level above the CO.
    (2) In case of nonconcurrence with the CO's determination, the HCA 
shall provide a copy of the reported violation and recommended action 
to the OIG in accordance with Part 111 DM 3. The CO, in consultation 
with the SOL and the OIG, must justify the compelling circumstances for 
immediate award and obtain approval to proceed from the BPC without the 
power of redelegation. Copies of the determination to proceed with the 
award will be sent to the Director, PAM, for submission to the AS/PMB.

Subpart 1403.2--Contractor Gratuities to Government Personnel


1403.203  Reporting suspected violations of the Gratuities clause.

    When suspected violations of the clause at FAR 52.203-3, 
Gratuities, become known to a Federal Government employee, the matter 
shall be reported, in writing, to the cognizant CO or the CO's 
supervisor, as appropriate. The report shall clearly state the alleged 
circumstances surrounding the incident or incidents in which the 
contractor offered or gave a gratuity to a Federal Government employee 
and intended to obtain a contract or favorable treatment under a 
contract because of the gratuity. The date(s), location(s) and name(s) 
of all parties involved in the incident shall be included in the 
report.


1403.204  Treatment of violations.

    (a) The CO will provide the contractor with a formal notice that 
summarizes the events involving the suspected violation and affords the 
contractor the opportunity to take the action(s) listed under FAR 
3.204(b). The notice shall contain a time limit for reply and shall be 
sent by certified mail return receipt requested. The CO will submit the 
report, additional documentary evidence and other pertinent information 
to the HCA for disposition with a recommended course of action. A copy 
of this submission must also be sent to the Deputy Assistant Inspector 
General for Investigations. In consultation with the SOL and the OIG, 
and based on the results of any further discussion with the contractor, 
its counsel or witnesses, the HCA may make a recommendation to the 
Director, PAM, pursuant to FAR 3.204(c) and shall provide formal notice 
to the contractor of such recommendation.
    (b) If the decision involves the termination of a contract (see FAR 
3.204(c)(1)), the CO will be responsible for implementing the decision.

Subpart 1403.3--Reports of Suspected Antitrust Violations


1403.303  Reporting suspected antitrust violations.

    (a) Reports on suspected violations of antitrust laws as required 
by FAR 3.303 shall be prepared by the CO, reviewed by the SOL, and 
submitted by the HCA directly to the Attorney General, Department of 
Justice. A copy of this submission must also be sent to the Deputy 
Assistant Inspector General for Investigations.
    (b) Depending on the nature of the suspected violation or the 
disposition of the matter, the HCA may recommend debarment or 
suspension in accordance with FAR 9.406-2(a)(2) or 9.407-2(a)(2) and 
Subpart 1409.4.

Subpart 1403.4--Contingent Fees


1403.405  Misrepresentation or violations of the Covenant Against 
Contingent Fees.

    (a) In addition to notifying the CO, the matter must also be 
reported to the Deputy Assistant Inspector General for Investigations 
and the HCA.
    (b) The HCA may recommend debarment and suspension in accordance 
with Subpart 1409.4.
    (c) The CCO shall consult with the SOL and OIG prior to forwarding 
a report of suspected fraudulent or criminal violations to the 
Department of Justice for action.

Subpart 1403.5--Other Improper Business Practices


1403.570  Restrictions on contractor advertising.


1403.570-1  Policy.

    Award of a contract does not signify endorsement of the supplies or 
services purchased, nor does it signify agreement with any views 
espoused by officials of the awardee. It is vital to the integrity of 
the procurement system to avoid even the appearance of an improper 
preference toward a particular vendor. Therefore, contractors shall not 
be permitted to publicize, or otherwise circulate, promotional 
materials that state or imply Governmental endorsement of a product, 
service or position which the contractor represents.


1403.570-2  Procedures.

    If a contractor requests a determination as to the propriety of 
such promotional material, the response shall be coordinated with the 
cognizant Public Affairs Office and Ethics Officer.


1403.570-3  Contract clause.

    CO's shall include the clause at 1452.203-70, Restriction on

[[Page 19835]]

Endorsements, in all solicitations, contracts and agreements which are 
not executed in accordance with FAR Parts 12 or 13.

Subpart 1403.6--Contracts With Government Employees or 
Organizations Owned or Controlled by Them


1403.602  Exceptions.

    The HCA, without the power of redelegation, is authorized to except 
a contract from the policy in FAR 3.601. However, no exceptions may be 
granted where the proposed contractor is owned or controlled by a 
Government employee or one or more members of the employee's immediate 
family and the employee or any subordinate is serving as a procurement 
official on the proposed contract.


1403.603  Responsibilities of the contracting officer.

    The CO shall prepare a written determination and findings for the 
signature of the HCA when requesting authorization to allow a contract 
award to a Government employee or business concern or other 
organization owned or substantially owned or controlled by one or more 
Government employees.

Subpart 1403.7--Voiding and Rescinding Contracts


1403.704  Policy.

    The HCA is authorized to declare void and rescind contracts in 
accordance with the procedures in FAR 3.705.


1403.705  Procedures.

    (a) Reporting. The facts concerning any final conviction for any 
violation of 18 U.S.C. 201-224 involving or relating to any contract 
awarded by a bureau or office shall be set forth in a report and 
submitted by the HCA to the Civil Division of the Department of the 
Justice. The report shall also contain a recommendation to initiate a 
debarment action. If debarment is recommended, the procedures in 
1409.406-3(a) shall be followed. Copies of the report shall be provided 
to Director, PAM, and the Deputy Assistant Inspector General for 
Investigations for informational purposes.
    (b) Notice of Proposed Action. Based upon review of the report in 
paragraph (a) of this section and after consultation with the SOL and 
the OIG, as appropriate, the HCA shall give notice of the proposed 
action to the contractor in accordance with the requirements of FAR 
3.704(c).
    (c) Final Agency Decision. The HCA shall make the final decision on 
voiding and rescinding contracts in accordance with the requirements of 
FAR 3.705(e).

Subpart 1403.8--Limitation on the Payment of Funds to Influence 
Federal Transactions


1403.804  Policy.

    The BPC shall receive copies of contractor disclosures and forward 
them to the Director, PAM, for submission to Congress.


1403.806  Processing suspected violations.

    Suspected violations shall be referred to the HCA. The HCA, in 
consultation with the SOL and OIG, shall act in accordance with FAR 
3.807.

Subpart 1403.10--Contractor Code of Business Ethics and Conduct


1403.1004  Contract clause.

    (a) In all awards expected to exceed $3,000,000, including options, 
for which performance is expected to exceed 120 days, except purchases 
conducted in accordance with FAR Part 12 and contracts to be performed 
entirely outside the United States, replace ``$5,000,000'' with 
``$3,000,000'' in paragraph (d) of FAR 52.203-14.
    (b) Insert the following into paragraph (b)(3) of the same clause: 
``Downloadable hotline posters as well as instructions for obtaining a 
hard copy poster are available at http://www.doioig.gov/hotline.''

PART 1404--ADMINISTRATIVE MATTERS

Subpart 1404.4--Safeguarding Classified Information within Industry
Sec.
1404.402 General.
1404.403 Responsibilities of contracting officers.
Subpart 1404.7--Contractor Records Retention
1404.702 Applicability.
Subpart 1404.8--Contract Files
1404.802 Contract files.
1404.804 Closeout of contract files.
1404.804-70 Release of claims.
1404.805 Disposal of contract files.
Subpart 1404.70--Deposit of Contract Publications
1404.7001 General.
1404.7002 Policy.
1404.7003 Exceptions.
1404.7004 Procedures.

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

Subpart 1404.4--Safeguarding Classified Information Within Industry


1404.402  General.

    (a) The DOI has entered into an agreement with the DOD to be 
covered by the National Industrial Security Program (NISP). The 
agreement is contained in 443 DM 1, Appendix 1.
    (b) Classified acquisitions or contracts (see FAR 4.401) shall be 
subject to the instructions contained in the DOD publications listed in 
FAR 4.402(b).


1404.403  Responsibilities of contracting officers.

    (a) For proposed solicitations that may require access to 
Departmental classified information, the CO shall consult with the 
Office of Managing Risk and Public Safety for guidance on NISP in 
accordance with 443 DM 1.
    (b) For proposed contracts where the contractor provides service 
for the handling and transmission of registered or certified mail at 
activities that customarily receive and transmit classified information 
(see FAR 4.401), the contractor shall be cleared to the degree of 
SECRET. This clearance shall be obtained through the Office of Managing 
Risk and Public Safety in accordance with 442 DM 8.
    (c) For proposed contracts where guard services are assigned to 
safeguard Department activities in possession of classified information 
(see FAR 4.401), review and approval shall be obtained from the Office 
of Managing Risk and Public Safety in accordance with 442 DM 8.

Subpart 1404.7--Contractor Records Retention


1404.702  Applicability.

    In addition to the clauses listed at FAR 4.702, the policies and 
procedures at FAR 4.7 shall also apply to records generated under 
contracts containing the clause at 1452.215-70, Examination of Records 
by the Department of the Interior.

Subpart 1404.8--Contract Files


1404.802  Contract files.

    In addition to the requirements in FAR 4.802, files shall also be 
maintained in accordance with the provisions of 380 DM 3.


1404.804  Closeout of contract files.


1404.804-70  Release of claims.

    (a) The CO shall insert the clause at 1452.204-70, Release of 
Claims, in all construction, architect and engineering, and cost-
reimbursement contracts that exceed the SAT. The Release of Claims

[[Page 19836]]

clause may be inserted in other types of contracts when the CO 
determines that the release is necessary to protect the interests of 
the Government.
    (b) Form DI-137, Release of Claims, shall be used to obtain a 
release of claims.


1404.805  Disposal of contract files.

    Disposition of files shall be accomplished in accordance with 384 
DM.

Subpart 1404.70--Deposit of Contract Publications


1404.7001  General.

    The DOI Departmental Library is responsible for maintaining a 
complete collection of Departmental publications. As used in this 
Subpart, the term ``Departmental publication'' means any publication or 
report produced under a DOI contract or Interagency agreement.


1404.7002  Policy.

    The CO shall direct the contractor, in the technical instructions, 
to acknowledge Federal sponsorship in the final report or publication 
by placing the following statement on the title page:
    ``This publication was funded by U.S. Department of the Interior, 
(Name of Bureau/Office), Washington, DC, under contract number--------
------.''


1404.7003  Exceptions.

    The following types of publications are excluded from the 
requirements of this Subpart:
    (a) Internal documents required for administrative or operational 
purposes that have no public interest, educational, scientific, or 
research value;
    (b) Classified publications and material otherwise marked 
prohibiting unauthorized disclosure;
    (c) Tentative drafts such as preliminary planning reports that will 
appear later in revised or final form;
    (d) Journal and magazine articles; or
    (e) Disclosure materials containing any description, specification, 
data, plan, or drawing of any unpatented invention upon which a patent 
application is likely to be filed, unless an opinion by the SOL, or 
his/her duly authorized designee, has been rendered which finds that 
the interests of the Government will not be prejudiced by disclosure of 
such materials.


1404.7004  Procedures.

    (a) The CO shall direct the contractor, in the technical 
instructions, to provide two copies of each publication or report 
produced under a contract to: U.S. Department of the Interior, 
Departmental Library, 1849 C Street, NW., MS-2258, Main Interior Bldg., 
Washington, DC 20240.
    (b) A transmittal letter shall accompany the copies and identify 
the sender and the publication(s). The bibliographic information 
required by 481 DM 1.3B(4) shall be also included with the submission 
of all translations.

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

PART 1405--PUBLICIZING CONTRACT ACTIONS

Subpart 1405.2--Synopses of Proposed Contract Actions
Sec.
1405.202 Exceptions.
1405.207 Preparation and transmittal of synopses.
Subpart 1405.3--Synopses of Contract Awards
1405.303 Announcement of contract awards.
Subpart 1405.4--Release of Information
1405.403 Requests from members of Congress.
1405.404 Release of long-range acquisition estimates.
1405.404-1 Release procedures.
Subpart 1405.5--Paid Advertisements
1405.502 Authority.

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

Subpart 1405.2--Synopses of Proposed Contract Actions


1405.202  Exceptions.

    The AS/PMB is authorized to approve the written determination 
documenting the reasons why a synopsis is not appropriate or 
reasonable. The CO shall prepare the determination, submit it to the 
HCA and then to the Director, PAM, for AS/PMB approval.


1405.207  Preparation and transmittal of synopses.

    In addition to the synopsis information generally required under 
FAR 5.207, as a best business practice, it is recommended each synopsis 
of a proposed contract action under other than full and open 
competition include the location where the offeror may obtain:
    (a) A description of specific qualifications the Government 
requires of the product or service to meet the Government's minimum 
needs; and
    (b) The factors the Government will use to evaluate the product or 
service information prospective contractors provide under the proposed 
contract action.

Subpart 1405.3--Synopses of Contract Awards


1405.303  Announcement of contract awards.

    (a) The CO shall report the following information to the cognizant 
bureau congressional affairs officer for notification to Congress 24 
hours prior to the award of a contract expecting to exceed $500,000:
    (1) Proposed award date;
    (2) Contractor name and address;
    (3) Geographical location of contract performance;
    (4) Description of the contracted work;
    (5) Dollar amount of contract; and
    (6) Contractor business size and whether the firm is minority-owned 
or is a disadvantaged business concern.
    (b) With the concurrence of the Office of Congressional and 
Legislative Affairs, the HCA may waive the announcement of sensitive 
awards.

Subpart 1405.4--Release of Information


1405.403  Requests from Members of Congress.

    For purposes of this subpart, the agency head is the HCA with the 
power of redelegation to the BPC.


1405.404  Release of long-range acquisition estimates.


1405.404-1  Release procedures.

    (a) The authority to release acquisition requirements anticipated 
in the coming year is delegated to the OSDBU and the HCA with 
redelegation limited to the BPC. The Government cost estimate shall not 
be revealed. The expected dollar values shall be advertised as falling 
within dollar ranges rather than specific dollar amounts.
    (b) Classified information shall only be released in accordance 
with the procedures in 442 DM.

Subpart 1405.5--Paid Advertisements


1405.502  Authority.

    (a) The CO shall obtain written authorization of the HCA before 
placing an advertisement in a newspaper to advertise a contracting 
opportunity.
    (b) Advertisements placed in media other than newspapers do not 
require advance authorization.

PART 1406--COMPETITION REQUIREMENTS

Subpart 1406.2--Full and Open Competition After Exclusion of Sources
Sec.
1406.202 Establishing or maintaining alternate sources.

[[Page 19837]]

Subpart 1406.3--Other Than Full and Open Competition
1406.302 Circumstances permitting other than full and open 
competition.
1406.302-1 Only one responsible source and no other supplies or 
services will satisfy agency requirements.
1406.302-7 Public interest.
1406.303 Justifications.
1406.303-70 Additional requirements.
1406.304 Approval of the justification.
Subpart 1406.5--Competition Advocates
1406.501 Requirement.
1406.502 Duties and responsibilities.

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

Subpart 1406.2--Full and Open Competition After Exclusion of 
Sources


1406.202  Establishing or maintaining alternative sources.

    HCAs are authorized to approve the determinations and findings 
(D&Fs) to establish or maintain an alternative source or sources for 
supplies or services.

Subpart 1406.3--Other Than Full and Open Competition


1406.302  Circumstances permitting other than full and open 
competition.


1406.302-1  Only one responsible source and no other supplies or 
services will satisfy agency requirements.

    For contracts that will be awarded using this authority, the 
notices required by FAR 5.201 shall have been published and any bids, 
proposals, quotations, or capability statements must have been 
considered.


1406.302-7  Public interest.

    The CO shall prepare the D&F and complete the justification to 
support use of public interest authority for other than full and open 
competition and submit it through the HCA to the Director, PAM, for 
further action.


1406.303  Justifications.


1406.303-70  Additional requirements.

    (a) If other than full and open competition is recommended by the 
office initiating an acquisition requirement, the recommendation shall:
    (1) Be in writing;
    (2) Accompany the requisition;
    (3) Contain the information required by FAR 6.303-2; and
    (4) Request the CO to conduct a market survey by issuing a synopsis 
of the proposed contract action (see 1405.207). The initiating office 
shall evaluate and document all responses to the notice. The CO shall 
prepare the D&F that only one source can meet the Government's needs 
based on the evaluation results. The evaluation results shall be 
included in the justification as required by FAR 6.303-2(a)(8) if it is 
determined that only one source can meet the Government's needs.
    (b) The procedure in paragraph (a) of this section is not required 
for proposed contract actions to be awarded under the authority in FAR 
6.302-2 when the CO determines that preparation and approval of the 
justification would unreasonably delay the acquisition. Under these 
circumstances, a justification may be prepared and approved after award 
in accordance with FAR 6.303-1(d).


1406.304  Approval of the justification.

    A class justification shall be approved in accordance with bureau 
procedures. Copies of approved class justifications shall be promptly 
transmitted to PAM.

Subpart 1406.5--Competition Advocates


1406.501  Requirement.

    (a) The competition advocate for DOI is located within PAM's staff. 
Applicable correspondence should be addressed to PAM, Attention: 
Competition Advocate.
    (b) Competition Advocates for each bureau and office shall be as 
designated by the CAO-AS/PMB.


1406.502  Duties and responsibilities.

    PAM is responsible for preparing and submitting the annual report 
required by FAR 6.502(b)(2). Bureau Competition Advocates shall furnish 
certain information, as may be required, to assist PAM in preparing the 
report.

PART 1407--ACQUISITION PLANNING

Subpart 1407.1--Acquisition Plans
1407.102 Policy.
Subpart 1407.3--Contractor Versus Government Performance
1407.301 Policy.
1407.307 Appeals.

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

Subpart 1407.1--Acquisition Plans


1407.102  Policy.

    DOI has implemented its acquisition planning system in 404 DM. This 
system meets the criteria prescribed in FAR Subpart 7.1, 375 DM, OCIO 
Program Management, and 376 DM, Automated Data Processing. Each of 
these addresses strategic planning for OCIO and planning for 
acquisition of federal information processing resources.

Subpart 1407.3--Contractor Versus Government Performance


1407.301  Policy.

    404 DM, Procurement Planning, addresses the requirements of OMB 
Circular A-76.


1407.307  Appeals.

    Department appeal procedures required by OMB Circular A-76 are 
codified in 43 CFR Part 4, Subpart M.

PART 1408--REQUIRED SOURCES OF SUPPLIES AND SERVICES

Subpart 1408.1--Excess Personal Property
Sec.
1408.102 Policy.
Subpart 1408.8--Acquisition of Printing and Related Supplies
1408.802 Policy.

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

Subpart 1408.1--Excess Personal Property


1408.102  Policy.

    Inquiries on available excess or surplus personal property should 
be directed to the PMO or the designee in each Bureau or Office.

Subpart 1408.8--Acquisition of Printing and Related Supplies


1408.802  Policy.

    (a) Duplicating is the mass reproduction of materials beyond the 
capabilities of typical office copiers. Volumes are of sufficient mass 
quantities up to 5,000 single-page and 25,000 production units in the 
aggregate of multiple pages. Such duplicating units shall require 
Departmental approval to be processed through the Department of the 
Interior Publishing Council (DOIPC).
    (b) Copying is distinguished from ``duplicating'' in that such work 
is administrative in nature, produced on office copying equipment and 
produced as necessary, in limited quantities. Volumes typically range 
from 1 to 500 single-pages to 2,500 production units in the aggregate 
of multiple pages. This volume standard is referred to as the ``500/
2500'' rule. Reproduction work exceeding the ``500/2500'' rule is 
duplicating, and requires a waiver from the nearest servicing GPO 
office. Employees should consult with their bureau printing officer or 
the DOIPC representative to secure such a waiver.
    (c) The DOIPC has been designated as the Department's liaison with 
the Joint Committee on Printing and GPO. Requirements for printing and 
related supplies shall be coordinated with the

[[Page 19838]]

DOIPC or the designated bureau publications liaison officer in 
accordance with 314 DM 1.

PART 1409--CONTRACTOR QUALIFICATIONS

Subpart 1409.2--Qualifications Requirements
Sec.
1409.202 Policy.
1409.206 Acquisitions subject to qualifications requirements.
1409.206-1 General.
Subpart 1409.4--Debarment, Suspension and Ineligibility
1409.403 Definitions.
1409.404 Excluded Parties List System (EPLS).
1409.405 Effect of listing.
1409.405-1 Continuation of current contracts.
1409.406 Debarment.
1409.406-1 General.
1409.406-3 Procedures.
1409.407 Suspension.
1409.407-1 General.
1409.407-3 Procedures.
Subpart 1409.5--Organizational and Consultant Conflicts of Interest
1409.503 Waiver.
1409.506 Procedures.

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

Subpart 1409.2--Qualifications Requirements


1409.202  Policy.

    (a) The HCA is the official responsible for establishing the 
qualification requirement in FAR 9.202(a)(1). This authority is not 
redelegable.
    (b) The HCA is the approval official referenced in FAR 9.202(e).


1409.206  Acquisitions subject to qualification requirements.


1409.206-1  General.

    The HCA is the approval official referenced in FAR 9.206-1(b).

Subpart 1409.4--Debarment, Suspension, and Ineligibility


1409.403  Definitions.

    As used in this subpart:
    Case Representative refers to the individual who prepares and 
forwards the action referral memorandum to the Debarring and Suspending 
Official and provides additional assistance in the course of action 
resolution. Debarment and Suspension actions may be referred to the 
Debarring and Suspending Official for consideration from different 
sources, as appropriate. The HCA, or designee, may refer matters. The 
Office of Inspector General (OIG) may also refer actions.
    Conviction, for the purposes of this subpart, means:
    (a) A judgment or any other determination of guilt of a criminal 
offense by any court of competent jurisdiction, whether entered upon a 
verdict or plea, including a plea of nolo contendere; or,
    (b) Any other resolution that is the functional equivalent of a 
judgment, including probation before judgment and deferred prosecution. 
A disposition without the participation of the court is the functional 
equivalent of a judgment only if it includes an admission of guilt.
    Debarring Official refers to the Director, PAM. The Debarring 
Official is the official authorized to impose debarment or suspension. 
The Debarring Official also may settle a debarment or suspension action 
at any time if it is in the best interest of the Government.
    Suspending Official refers to the Director, PAM.


1409.404  Excluded Parties List System (EPLS).

    (a) PAM is responsible for accomplishing the actions required in 
FAR 9.404(c).
    (b) COs should access the EPLS online at http://www.epls.gov.


1409.405  Effect of listing.

    When a CO finds that a compelling reason exists to conduct business 
with a contractor listed on the EPLS, the HCA shall submit the 
determination and findings to the Director, PAM, for approval.


1409.405-1  Continuation of current contracts.

    The HCA, without authority to redelegate, is authorized to take the 
actions listed in FAR 9.405-1.


1409.406  Debarment.


1409.406-1  General.

    The Director, PAM, is authorized to make the statement regarding 
debarment by another agency's debarring official under the conditions 
in FAR 9.406-1(c).


1409.406-3  Procedures.

    (a) Investigation and referral. Whenever a cause for debarment, as 
listed in FAR 9.406-2. becomes known to a DOI employee, the matter 
shall be referred by the case representative to the Debarring Official, 
in consultation, as appropriate, with the HCA involved, the SOL, and 
OIG. The case representative will review the matter and, as warranted, 
prepare and submit to the Debarring Official for consideration an 
Action Referral Memorandum (ARM) with supporting documentation.
    (b) Notice of Proposed Debarment. Based upon review of the ARM, as 
appropriate, the Debarring Official shall initiate proposed debarment 
by taking the actions listed in FAR 9.406-3(c) and advising the 
contractor of DOI's process for contesting the action.
    (c) Decision-making process.
    (1) For debarment actions based upon a conviction, civil judgment, 
or in which there is no genuine dispute over material facts, consistent 
with FAR 9.406-3(d)(1), the Debarring Official shall make a decision on 
the basis of the information in the administrative record, including 
any contractor submissions. Where the proceeding includes an oral 
presentation of matters in opposition (PMIO) to the Debarring Official, 
the PMIO will be conducted in an informal business meeting format and 
tape recorded for the administrative record.
    (2) For actions listed under FAR 9.406-3(b)(2), upon concluding 
from a contractor's information in response to the action notice that 
facts material to the existence of cause for debarment are genuinely in 
dispute, the Debarring Official may refer the disputed material facts 
to another official for fact-finding. The hearing shall be conducted in 
accordance with Debarment Program fact-finding procedures.
    (i) The fact-finding proceeding will be transcribed. The fact-
finding official will file the original copy of the transcript with the 
case record. The reporter's fees and other direct costs associated with 
the hearing shall be borne by the bureau or office initiating the 
debarment action, except in the case of actions initiated by the OIG. 
For actions initiated by the OIG, the costs will be borne by the 
bureau(s) and/or office(s) out of which the matter arose. A transcript 
of the proceedings shall be made available to the contractor as 
provided under FAR 9.406-3(b)(2)(ii).
    (ii) Subject to the provisions of 43 CFR Part 1, the contractor, 
and any specifically named affiliate, may be represented by counsel or 
any duly authorized representative. Witnesses may be called by either 
party. The proceedings shall be conducted expeditiously and in such a 
manner that each party will have a full opportunity to present all 
information considered pertinent to the proposed debarment. A 
transcript of the proceedings shall be made available to the contractor 
under the condition in FAR 9.406-3(b)(2)(ii).
    (iii) The fact-finding official will prepare findings of fact, 
certify the entire hearing record and provide said findings and record 
to the Debarring Official. The fact-finding official shall not make any 
recommendations unless the Debarring Official has expressly requested 
such recommendations in

[[Page 19839]]

writing. Following receipt of the findings of fact, the Debarring 
Official shall complete debarment proceedings and issue a written 
debarment decision.
    (d) Administrative Agreements. Matters may be resolved through 
administrative agreement at any stage of proceedings of a debarment 
action where a contractor agrees to appropriate terms. The specific 
effect of administrative agreements that incorporate terms regarding 
eligibility for DOI contracting will vary with the terms of the 
agreements. In general, such agreements resolve debarment concerns and 
thereby terminate any imposed or pending award ineligibility. In the 
event of an agreement, PAM will notify COs of the agreement and its 
terms.
    (e) Administrative Appeal. Administrative review of the Debarring 
Official's decision under FAR 9.406-3(e) may be sought as follows:
    (1) The contractor may within thirty (30) days of receipt of the 
decision, request the Debarring Official to reconsider the decision for 
clear material errors of fact or law which would change the outcome of 
the matter.
    (2) The Debarring Official may exercise his/her discretion and stay 
the debarment pending reconsideration review. The Debarring Official 
will notify the contractor in writing of the decision on 
reconsideration.
    (3) A review request under this section must be in writing, clearly 
state the specific findings believed to be in error and include the 
reasons or legal bases for the position.


1409.407  Suspension.


1409.407-1  General.

    The Director, PAM, is authorized to make the determination in FAR 
9.407-1(d).


1409.407-3  Procedures.

    (a) Investigation and referral. Whenever a cause for suspension, as 
listed in FAR 9.407-2, becomes known to a DOI employee, the matter 
shall be referred by the case representative to the Suspending 
Official, in consultation, as appropriate, with the HCA involved, the 
SOL, and the OIG. The case representative will review the matter and, 
if warranted, prepare and submit to the Debarring Official for 
consideration an Action Referral Memorandum (ARM) with supporting 
documentation.
    (b) Notice of Suspension. After review of the ARM, if appropriate, 
the Debarring Official shall initiate a suspension by taking the 
actions listed in FAR 9.407-3(c), and advising the contractor of the 
Department's process for contesting the action.
    (c) Decision making process.
    (1) For suspension actions based upon an indictment or equivalent 
charging document, or where there is no genuine dispute over material 
facts, consistent with FAR 9.407-3(d), or in which additional 
proceedings to determine disputed material facts have been denied on 
the basis of DOJ advice, the Suspending Official shall make a decision 
on the basis of the information in the administrative record, including 
any submission by the contractor. Where the proceeding includes an oral 
PMIO to the Suspending Official, the PMIO will be conducted in an 
informal business meeting format and tape recorded for the 
administrative record.
    (2) For actions listed under FAR 9.407-3(b)(2), when the Debarring 
Official concludes from information in a contractor's response to the 
proposed action notice that facts material to the existence of a cause 
for debarment are genuinely in dispute, the Suspending Official may 
refer the disputed material facts to another official for hearing and 
findings of fact.
    (i) The hearing shall be conducted in accordance with Suspension 
Program fact-finding procedures.
    (ii) The fact-finding proceeding will be transcribed. The 
reporter's fees and other direct costs associated with the hearing 
shall be borne by the bureau or office initiating the suspension 
referral, except in the case of actions initiated by the OIG. For 
actions initiated by the OIG, costs will be borne by Bureaus and/or 
offices out of which the matter arose. A transcript of the proceedings 
shall be made available to the contractor under the condition in FAR 
9.407-3(b)(2)(ii).
    (iii) Subject to the provisions of 43 CFR Part 1, the contractor, 
and any specifically named affiliates, may be represented by counsel or 
any duly authorized representative. Witnesses may be called by either 
party. The proceedings shall be conducted expeditiously and in such a 
manner that each party will have a full opportunity to present all 
information considered pertinent to the suspension.
    (iv) The fact-finding official will prepare findings of fact, 
certify the entire hearing record and provide said findings and record 
to the Suspending Official. The fact-finding official shall not make 
any recommendations unless the Suspending Official has expressly 
requested such recommendations in writing. Following receipt of the 
findings of fact, the Suspending Official shall complete suspension 
proceedings and issue a written decision. Matters may be resolved 
through an administrative agreement at any stage of the proceedings.
    (d) Administrative Agreements. Matters may be resolved through an 
administrative agreement at any stage of proceedings in resolution of a 
suspension action where a contractor agrees to appropriate terms. The 
specific effect of administrative agreements that incorporate terms 
regarding eligibility for DOI contracting will vary with the terms of 
the agreements. In general, such agreements resolve suspension concerns 
and thereby terminate award ineligibility. An administrative agreement 
resolving a suspension action may by its terms be an interim agreement. 
In the event of an agreement, PAM will notify COs of the agreement and 
its terms.
    (e) Administrative Appeal. Administrative review of the Suspending 
Official's decision under FAR 9.407-3(d) may be sought as follows:
    (1) The contractor may within thirty (30) days of receipt of the 
decision, ask the Suspending Official to reconsider the decision for 
clear material errors of fact or law which would change the outcome of 
the matter.
    (2) The Suspending Official may in the exercise of discretion stay 
the debarment pending reconsideration review. The Suspending Official 
will notify the contractor in writing of the decision on 
reconsideration.
    (3) A review request under this section must be submitted in 
writing; clearly state the specific findings believed to be in error, 
and include the reasons or legal bases for the position.

Subpart 1409.5--Organizational and Consultant Conflicts of Interest


1409.503  Waiver.

    (a) The Director, PAM, is authorized to waive any general rule or 
procedure in FAR Subpart 9.5, when such action is in the Government's 
interest.
    (b) Request for waivers shall be made by the HCA, through the 
appropriate SOL, to the Director, PAM. Each request shall include:
    (1) An analysis of the facts involving the potential or actual 
conflict, including benefits and detriments to the Government and 
prospective contractor(s);
    (2) A discussion of the factors which preclude avoiding, 
neutralizing or mitigating the conflict; and
    (3) Identification of the provision(s) in FAR Subpart 9.5 to be 
waived.


1409.506  Procedures.

    If the CO determines that contractor performance of the 
contemplated work

[[Page 19840]]

is likely to create an organizational conflict of interest, then the 
contracting officer shall refer the documentation of the potential 
conflict and proposed resolution prepared in accordance with 
7.105(b)(18) to the HCA for approval. Referrals to the HCA shall be 
initiated by the CO and reviewed by the SOL.

PARTS 1410-1412--[RESERVED]

SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES

PART 1413--SIMPLIFIED ACQUISITION PROCEDURES

Subpart 1413.2--Micro-Purchase
Sec.
1413.201 General.
1413.202-70 Policy.
Subpart 1413.3--Simplified Acquisition Methods
1413.305 Imprest Fund.
1413.305-2 Agency responsibilities.
1413.305-4 Procedures.
1413.306 Standard Form 44, Purchase order--invoice--voucher.

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

Subpart 1413.2--Micro-Purchase


1413.201  General.

    The procedures set forth in the Federal Supply Schedule for 
Government-wide Commercial Credit Card Services, Treasury Financial 
Manual, TFM 4-4500, and ``U.S. Department of Interior Handbook for 
Utilization of Government Wide Commercial Credit Card'' issued by PAM 
contain guidance on using Government-wide purchase card services.


1413.202-70  Policy.

    (a) The purchase card shall be used in preference to other methods 
of procurement for purchases up to $3,000. Other small purchase methods 
(BPAs, imprest funds, third-party drafts, SF-44 forms, and purchase 
orders) may be used in lieu of the Government purchase card when it is 
more cost-effective or practicable.
    (b) The purchase card shall be issued primarily to personnel 
outside of procurement offices to purchase products and services up to 
the micro-purchase threshold ($2,000 for construction).
    (c) The purchase card may be used in procurement offices for 
purchases up to the simplified acquisition threshold ($50,000 if not 
interim FACNET certified) not to exceed individual warrant limitations.
    (d) Each contracting activity shall develop more specific 
procedures for use of purchase cards.

Subpart 1413.3--Simplified Acquisition Methods


1413.305  Imprest fund.


1413.305-2  Agency responsibilities.

    Policy governing the use and administration of imprest funds within 
the Department are contained in 330 DM, in addition to the policies and 
regulations outlined in FAR 13.305-1. HCAs shall establish written 
procedures for designation, by name, of personnel authorized to approve 
requisitions and make purchases using imprest funds. The procedures 
shall include a periodic review of imprest fund transactions by 
acquisition personnel.


1413.305-4  Procedures.

    The individual authorized to make purchases using imprest funds 
shall be responsible for compliance with the procedures and 
documentation requirements of FAR 13.305-4.


1413.306  Standard Form 44, Purchase order-invoice-voucher.

    HCAs are responsible for establishing bureau procedures to control 
the use of the SF 44 and accounting for all purchases made using the 
form. Bureau procedures shall include instructions covering:
    (a) Maintenance of a list of designated individuals authorized to 
make purchases using the form;
    (b) Controls for issuing the form to authorized individuals; and
    (c) Review of purchase transactions using the form to assure 
compliance with authorized procedures.

PART 1414--SEALED BIDDING

Sec.
Subpart 1414.2--Solicitation of Bids
1414.201 Preparation of invitations for bids.
1414.201-70 Alternate bids.
Subpart 1414.4--Opening of Bids and Award of Contract
1414.404 Rejection of bids.
1414.404-1 Cancellation of invitations after opening.
1414.407 Mistakes in bids.
1414.407-3 Other mistakes disclosed before award.
1414.407-4 Mistakes after award.

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

Subpart 1414.2--Solicitation of Bids


1414.201  Preparation of invitation for bids.


1414.201-70  Alternate bids.

    (a) Solicitations for supplies or services (other than 
construction) shall specify whether alternate bids are permitted, 
provide instructions for submitting alternate bids and clearly indicate 
how alternate bids will be evaluated.
    (b) The clause set forth in 1452.236-71 may be used in non-
construction contracts where additive and deductive alternate bids will 
be permitted.

Subpart 1414.4--Opening of Bids and Award of Contract


1414.404  Rejection of bids.


1414.404-1  Cancellation of invitations after opening.

    The CCO is authorized to make the written determination to cancel 
the IFB before award but after bid opening.


1414.407  Mistakes in bids.


1414.407-3  Other mistakes disclosed before award.

    (a) The HCA is authorized to make the administrative determinations 
under FAR 14.407-3, except as set forth in paragraph (b) of this 
section. This authority is not redelegable.
    (b) The CCO has the authority outlined in FAR 14.407-3(c) to make 
the written determination permitting a bidder to withdraw a bid, after 
review by the SOL.
    (c) The CO shall submit a report on suspected or alleged mistakes 
in bids together with the supporting data to the BPC, who will forward 
it to the HCA. The CO may also include a report on bids where evidence 
of the intended bid is clear and convincing but the bidder has not 
requested permission to correct the bid. Incomplete reports may result 
in a delay in obtaining a determination.
    (d) The BPC is responsible for maintaining records of 
administrative determinations.


1414.407-4  Mistakes after award.

    The CO is authorized to make the administrative determinations 
outlined in 14.407-4 after receiving concurrence from the SOL.

PART 1415--CONTRACTING BY NEGOTIATION

Subpart 1415.2--Solicitation and Receipt of Proposals and Information
Sec.
1415.201 Exchanges with industry before receipt of proposals.
1415.207 Handling proposals and information.

[[Page 19841]]

1415.207-70 Department of the Interior proposal and information 
handling procedures.
1415.207-71 Confidentiality of proposal evaluation.
1415.209 Solicitation provisions and contract clauses.
1415.209-70 Examination of records by the Department of the 
Interior.
Subpart 1415.3--Source Selection
1415.303 Responsibilities.
1415.305 Proposal evaluation.
Subpart 1415.4--Contract Pricing
1415.404 Proposal analysis.
1415.404-2 Information to support proposal analysis.
1415.404-4 Profit.
1415.406 Documentation.
1415.406-70 Department of the Interior price negotiation memorandum 
(PNM).
Subpart 1415.6--Unsolicited Proposals
1415.606 Agency procedures.

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

Subpart 1415.2--Solicitation and Receipt of Proposals and 
Information


1415.201  Exchanges with industry before receipt of proposals.

    (a) Use of a presolicitation conference shall be approved at one 
level above the CO.
    (b) A CO may issue a solicitation for information or planning 
purposes without a written justification and without obtaining a higher 
level of approval.


1415.207  Handling proposals and information.


1415.207-70  Department of the Interior proposal and information 
handling procedures.

    (a) General. This section establishes procedures that must be used 
in addition to those prescribed in FAR 15.207, for the use and 
disclosure of trade secret information and confidential commercial and 
financial information contained in solicited proposals.
    (b) Marking of solicited proposals. A solicited proposal may 
contain trade secrets or confidential commercial or financial 
information which the offeror, or its subcontractors, prefers not to be 
disclosed to the public or used by the Government for any purpose other 
than evaluation of the proposal. To notify the Government of trade 
secrets and confidential commercial or financial information contained 
in a proposal, offerors must mark the cover page of the proposal and 
each affected page of the proposal with the legends specified in the 
solicitation provision at 1452.215-71, Use and Disclosure of Proposal 
Information--Department of the Interior. COs and other government 
personnel evaluating a proposal shall not refuse to consider the 
proposal because it contains information identified as trade secret 
information or confidential commercial or financial information.
    (c) Failure to mark. The Government assumes no liability for the 
disclosure or use of information contained in a proposal if not marked 
in accordance with 1452.215-71. If a request under the Freedom of 
Information Act is made for information in a proposal not marked in 
accordance with 1452.215-71, the offeror concerned shall be notified 
promptly of the request and given an opportunity to provide its 
position to the Government. However, failure of an offeror to mark 
information contained in a proposal as trade secret information or 
confidential commercial and financial information will be treated by 
the Government as evidence that the information is not exempt from 
disclosure under the Freedom of Information Act, absent a showing that 
the failure to mark was due to unusual or extenuating circumstances, 
such as a showing that the offeror had intended to mark, but that 
markings were omitted from the offeror's proposal due to clerical 
error.
    (d) Solicitation provision. The provision at 1452.215-71, Use and 
Disclosure of Proposal Information--Department of the Interior, shall 
be inserted in all requests for proposals and requests for quotations.


1415.207-71  Confidentiality of proposal evaluation.

    (a) The safeguarding of evaluation data and information, including 
proposals, is essential in order to preserve the integrity of the 
proposal evaluation process. During the selection process, no member or 
advisor of any committee appointed to evaluate proposals shall discuss 
or disclose any information on the number, identity or content of 
proposals received to any other party (including supervisors) without 
the written approval of the CO. 18 U.S.C. 1905 prohibits the 
unauthorized disclosure of business, confidential or trade secret 
information unless authorized by law.
    (b) At the initial meeting of the committee, the CO shall brief all 
members and advisors on the sensitivity of the evaluation process and 
the prohibition against unauthorized disclosure of information. At this 
meeting each member and advisor shall sign a Confidentiality 
Certificate. During the proposal evaluation process, all proposals, 
evaluation notes, scoring sheets, and other materials shall be locked 
in file cabinets or drawers when not in use by committee members and 
advisors.
    (c) The CO shall be the single point of contact regarding 
communications received from outside parties relating to the 
acquisition and the evaluation and selection process. Any committee 
member or advisor who receives a communication from any outside party 
shall, without discussion, immediately refer the party to the CO. The 
CO will then determine what further action shall be taken, if any, in 
responding to the communication. Requests for information made pursuant 
to the Freedom of Information Act shall be referred to the CO for 
reply. Proposal evaluation committee members and advisors shall not 
contact any offeror whose proposal is under evaluation. All 
communications with offerors shall be handled by the CO.
    (d) Bureaus and offices may only release proposals outside the 
Government for evaluation or advice in accordance with the following 
requirements:
    (1) Decisions to release proposals outside the Government for 
evaluation or advice shall be approved in writing by the HCA;
    (2) Outside evaluators and advisors shall sign a Conflict of 
Interest Certificate and a Confidentiality Certificate in a format 
approved by the HCA;
    (3) Any authorized restrictive legends placed on the proposal by 
the prospective contractor or subcontractor, or by the Government shall 
be applied to any reproduction or abstracted information made by the 
outside evaluator or advisor;
    (4) Upon completing the evaluation, all copies of the proposal, as 
well as any abstracts thereof, shall be returned to the Government 
office which initially furnished them for evaluation; and
    (5) All determinations to release the proposal outside the 
Government shall take into consideration requirements for avoiding 
individual conflicts of interest (see 1403.101) and organizational 
conflicts of interest (see 1409.5 and FAR Subpart 9.5), and the 
competitive relationship, if any, between the prospective contractor or 
subcontractor and the prospective outside evaluator.
    (e) If outside individuals will be voting members of the evaluation 
committee or otherwise participate in other than an advisory capacity, 
then the committee must be constituted as a Federal Advisory Committee 
in accordance with the Federal Advisory Committee Act (PL 92-463) and 
308 DM 2. Since the Secretary must appoint such committees in 
consultation with

[[Page 19842]]

the Office of Management and Budget, there should be very few occasions 
when use of outside individuals as voting members is justified.
    (f) Outside evaluators will usually serve as advisors to the 
proposal evaluation committee and as such, are consultants. Consultants 
may be appointed as special employees in accordance with 5 U.S.C. 3109 
or contracted for in accordance with 1437.1.
    (g) Additional restrictions on the disclosure of acquisition 
evaluation information are listed in FAR Subpart 5.4.


1415.209  Solicitation provisions and contract clauses.


1414.209-70  Examination of records by the Department of the Interior.

    The CO shall insert the clause at 1452.215-70, Examination of 
Records by the Department of the Interior, in all contracts requiring 
the clause at FAR 52.215-2 Audit and Records, Negotiation, as 
prescribed in FAR 15.209(b).

Subpart 1415.3--Source Selection


1415.303  Responsibilities.

    (a) The HCA shall determine when a formal source selection process 
will be used and shall establish implementing procedures.
    (b) The formal source selection procedures shall include 
designating the CO as the individual responsible for the proper control 
and appropriate release of proprietary and source selection information 
after source selection.


1415.305  Proposal evaluation.

    The CCO is authorized to make the determination to reject all 
proposals.

Subpart 1415.4--Contract Pricing


1415.404  Proposal analysis.


1415.404-2  Information to support proposal analysis.

    The CO shall initiate an audit by sending a completed form DI-1902, 
Request for Audit, to the Assistant Inspector General for Auditing, OIG 
(see 1453.215-70).
    (a) The CO shall allow at least 30 working days in assigning a 
realistic deadline for receipt of the audit report. In exceptional 
circumstances 20 working days may be allowed but the circumstances 
shall be documented in the contract file.
    (b) Upon receipt of a DI-1902, the OIG will conduct the audit or 
arrange for its conduct by the cognizant audit agency in accordance 
with 360 DM 3.7.
    (c) Upon receipt of the audit report, the CO and the price analyst 
(if assigned), shall discuss any questions regarding the report's 
contents with the cognizant auditor. If a question cannot be resolved 
or agreement cannot be reached on a recommendation in the report, the 
CO shall prepare a written statement for the contract file documenting 
the decision on the matter. A copy of the statement shall be promptly 
forwarded to the Assistant Inspector General for Auditing for 
information.


1415.404-4  Profit.

    (a) DOI's policy is to use a structured approach for determining 
the profit or fee prenegotiation objective in acquisition actions that 
require cost analysis based on the profit analysis factors in FAR 
15.905, as implemented and supplemented in this section.
    (b) In addition to the factors listed in FAR 15.404-4(d), one 
additional factor, ``Other Costs,'' will be used in evaluating and 
determining a weighted profit or fee. For further guidance also refer 
to the Armed Services Pricing Manual (ASPM No. 1). The ``Other Costs'' 
factor shall include the contribution of all other direct costs 
including travel, direct support and hiring of consultants for contract 
performance.
    (c) Form DI-1920, Structured Approach for Profit/Fee Objective-- 
Department of the Interior shall be used to calculate the profit or fee 
objective.


1415.406  Documentation.


1415.406-70  Department of the Interior price negotiation memorandum 
(PNM).

    (a) Policy. In addition to the information required in FAR 15.406-
3, the PNM prepared by the CO shall include the information in 
paragraph (c) of this section to the extent such information is 
applicable to the negotiation.
    (b) Applicability. (1) The CO shall prepare a PNM documenting the 
negotiation of the initial contract award and any subsequent 
modifications affecting price, cost or fee, including revisions to the 
prices of contracts awarded through sealed bidding procedures. A PNM is 
not required for unilateral modifications such as exercising fixed 
price options or issuing change orders. The memorandum is required for 
concluding changes and settlements of claims and for issuing orders 
under Blanket Ordering Agreements, task orders and delivery orders that 
involve the negotiation of prices, estimated quantities or amounts.
    (2) For simplified acquisitions conducted pursuant to FAR Part 13, 
the documentation requirements of 1413.106 and FAR 13.106 shall be 
followed.
    (c) Procedures. When the CO prepares the memorandum prescribed in 
FAR 15.406-3, the following additional information shall be included to 
the extent it applies to the contract action. Information already 
contained in the contract file or in a previous PNM shall be referenced 
by location:
    (1) A discussion of the reason(s) why sealed bidding is not 
appropriate as required by FAR 6.401 (or cross-reference the file 
location of the existing explanation);
    (2) A memorandum identifying the type of contract used and why it 
was selected as required by FAR 16.103(d). The file location of any 
required determination and findings authorizing use of this type of 
contract (see Part 1416);
    (3) A history of the contract action including: Whether the action 
was synopsized or the basis for exemption under FAR 5.202, and file 
location of the synopsis; consideration given to the use of set-asides 
and file location of DI-1886 (see Subpart 1419.2); solicitation 
issuance date, closing date for receipt of proposals and extensions; 
(iv) sources solicited (reference file location); late proposal or 
proposal modification information required by FAR 15.208; and the file 
location of ``Justification for Other Than Full and Open Competition,'' 
if applicable.
    (4) Evaluation of proposal(s), including: Evaluation factors used 
and weights (FAR 15.304); results of initial proposal evaluation (FAR 
15.305); determination of competitive range (FAR 15.306); results of 
written or oral discussions conducted (FAR 15.306); discussion of final 
proposal revisions received (FAR 15.307) and results of final proposal 
evaluation; and basis for source selection. For formal source selection 
procedures (see 1415.303), information on the source selection plan, 
and the source selection decision including supporting documentation 
required by FAR 15.308.
    (5) If cost or pricing data were not required, the cost or price 
analysis performed in accordance with FAR 15.404-1.
    (6) If cost or pricing data were required, the cost analysis (FAR 
15.404-1(c)) performed; and cost realism analysis (FAR 15.404-1(d)) and 
technical analysis (FAR 15.404-1(e)) performed, as applicable to the 
procurement.
    (7) If an audit report was required (FAR 15.404-2), COs shall 
specifically describe actions taken in response to significant audit 
findings, including the monetary value and decisions made

[[Page 19843]]

with regard to any of the audit's questioned costs; i.e., COs shall 
identify the value of the questioned costs, indicate whether they will 
allow or disallow them, and provide an explanation for their decisions. 
For purposes of this section, ``significant audit finding'' and 
``questioned cost'' are defined as those findings and/or costs cited or 
questioned in an external audit because of their relationship to 
unallowable costs claimed, a failure to comply with regulations or the 
terms of the contract, mathematical errors, and/or the duplication of 
costs. Questions and/or disagreements between the CO, price analyst (if 
assigned) and cognizant auditor as to an audit report's interpretation 
or recommendations regarding ``significant audit finding'' and/or 
``questioned costs'' shall be clarified or resolved and appropriately 
documented. If a disagreement cannot be resolved or agreement cannot be 
reached, the CO shall prepare a written statement in the PNM that 
discusses the issue(s) in question and supports a final decision on the 
matter.
    (8) The basis for determining profit or fee as prescribed in FAR 
Subpart 15.404-4 and form DI-1920 (or file location).
    (d) Approval. The PNM shall be signed and dated by the contract 
specialist or contract negotiator who conducted the negotiation and 
approved by the CO.
    (e) Distribution. Whenever field pricing support has been obtained, 
copies of related PNMs shall be forwarded to the Assistant Inspector 
General for Auditing, OIG, not later than 15 days after the execution 
of the resulting contract, modification or close-out action.

Subpart 1415.6--Unsolicited Proposals


1415.606  Agency procedures.

    The contact point for the receipt and coordination of unsolicited 
proposals is the contracting office, which will acknowledge and review 
the proposal contents and determine the proper activity within the 
bureau/office to evaluate and process the proposal. The policy or 
contracting office shall acknowledge unsolicited proposals and forward 
each one to the processing activity in an expeditious manner. Each 
bureau/office shall establish procedures for receipt, reproduction and 
disposition of unsolicited proposals consistent with the requirements 
of FAR 15.6.

PART 1416--TYPES OF CONTRACTS

Subpart 1416.2--Fixed-Price Contracts
Sec.
1416.203 Fixed-price contracts with economic price adjustment.
1416.203-4 Contract clauses.
Subpart 1416.4--Incentive Contracts
1416.405 Contract clauses.

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

Subpart 1416.2--Fixed-Price Contracts


1416.203  Fixed-price contracts with economic price adjustment.


1416.203-4  Contract clauses.

    An economic price adjustment clause based on actual cost of labor 
or material may be used after approval by the BPC, without the power of 
redelegation.

Subpart 1416.4--Incentive Contracts


1416.405  Contract clauses.

    The BPC, without the power of redelegation, is authorized to 
approve an award fee clause to use in a solicitation when a cost-plus-
award-fee contract is contemplated.

PART 1417--SPECIAL CONTRACTING METHODS

Subpart 1417.2--Options
Sec.
1417.203 Solicitations.
1417.206 Evaluation.
Subpart 1417.4--Leader Company Contracting
1417.402 Limitations.
Subpart 1417.5--Interagency Acquisitions Under the Economy Act
1417.502 General.
Subpart 1417.6--Management and Operating Contracts
1417.602 Policy.
1417.605 Award, renewal and extension.

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

Subpart 1417.2--Options


1417.203  Solicitations.

    Option quantities in excess of the 50 percent limit may, in unusual 
circumstances, be approved by the CCO.


1417.206  Evaluation.

    The determination in FAR 17.206(b) shall be approved by the CCO 
prior to soliciting offers.

Subpart 1417.4--Leader Company Contracting


1417.402  Limitations.

    Use of leader company contracting for a product, subject to the 
limitations in FAR 17.402, shall require advance discussion with the 
Director, PAM, prior to approval by the HCA. This authority may not be 
redelegated. Documentation shall include the circumstances requiring 
such action.

Subpart 1417.5--Interagency Acquisitions Under the Economy Act


1417.502  General.

    (a) The HCA, with authority to redelegate to the BPC, is authorized 
to make the determination prescribed in FAR 17.503 in accordance with 
the requirements in FAR 17.502. The CO shall prepare the determination, 
and for actions exceeding $100,000, obtain legal review from the SOL 
before submitting it to the HCA for signature. Class determinations may 
be utilized where appropriate.
    (b) Bureaus and offices shall develop procedures governing the use 
of interagency acquisitions under the Economy Act that are consistent 
with the FAR and this subpart 1417.5, and which adequately protect the 
Department's interests.

Subpart 1417.6--Management and Operating Contracts


1417.602  Policy.

    (a) The AS/PMB is authorized to approve the CO's determination to 
enter into, extend or renew any management and operating contract.
    (b) The CO shall prepared requests for authorization to enter into, 
extend or renew any management and operating contract shall be prepared 
by the CO and submitted by the HCA through the Director, PAM for 
approval by the AS/PMB. The request shall be submitted prior to 
solicitation for the requirement and shall:
    (1) Reference the statutory authority for the requirement;
    (2) Discuss the relationship between the requirement and the 
limitations in FAR 17.603;
    (3) Include a copy of the proposed contract schedule and evaluation 
factors for; and
    (4) If a noncompetitive procurement is proposed, include a copy of 
the Justification for Other than Full and Open Competition.
    (c) The HCA shall be responsible for conducting the reviews 
required by FAR 17.602(c) and taking required actions within the time 
limit prescribed.
    (d) The CO shall request authorization under paragraph (a) of this 
section for solicitation of offers for cost comparison purposes under 
OMB Circular A-76 (see FAR 7.3) for:
    (1) Operation, maintenance, or support of a Government-owned or

[[Page 19844]]

controlled special production or testing facility; or
    (2) Any other commercial or industrial service activity which, if 
performed by a contractor, would result in a management and operating 
contract as defined under FAR Subpart 17.6.


1417.605  Award, renewal and extension.

    The CO shall review each management and operating contract prior to 
any extension or exercise of a renewal option. Any extension or renewal 
of a management and operating contract shall first be authorized as 
required in 1417.602.

PART 1418--[RESERVED]

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

PART 1419--SMALL BUSINESS PROGRAMS

Subpart 1419.2--Policies
Sec.
1419.201 General policy.
1419.202 Specific policies.
1419.202-70 Acquisition screening and BUDS recommendations.
Subpart 1419.5--Set-Asides for Small Business
1419.503 Setting aside a class of acquisitions for small business.
1419.503-70 Class set-aside for construction acquisitions.
1419.505 Rejecting Small Business Administration recommendations.
1419.506 Withdrawing or modifying small business set-asides.
Subpart 1419.6--Certificates of Competency and Determinations of 
Responsibility
1419.602 Procedures.
1419.602-1 Referral.
Subpart 1419.7--The Small Business Subcontracting Program
1419.705 Responsibilities of the contracting officer under the 
subcontracting assistance program.
1419.705-2 Determining the need for a subcontracting plan.
1419.705-3 Preparing the solicitation.
1419.705-6 Postaward responsibilities of the contracting officer.
Subpart 1419.8--Contracting with the Small Business Administration (the 
8(A) program)
1419.803 Selecting acquisitions for the 8(a) program.
1419.810 SBA Appeals.
Subpart 1419.9--Contracting Opportunities for Women-Owned Small 
Businesses
1419.901 Policy.
Subpart 1419.10--Small Business Competitiveness Demonstration Program
1419.1003 Purpose.

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

Subpart 1419.2--Policies


1419.201  General policy.

    HCAs, without the power of redelegation, shall be responsible for 
the establishment of annual goals. The purpose of these goals is to 
increase participation of small business and small disadvantaged 
businesses in contract and subcontract opportunities. Goals for 
contract awards to minority business enterprises and women-owned 
businesses shall also be developed.
    (a) All program goals must comply with the criteria established by 
OSDBU and shall reflect improvement in participation of small 
businesses and small disadvantaged businesses. The goal setting process 
shall be conducted as follows:
    (1) Proposed goals are to be submitted by contracting activities to 
OSDBU by August 15th for the next fiscal year. To the greatest extent 
possible, the goals shall be based on advance acquisition plans (see 
Subpart 1407.1), budget justifications, and past performance.
    (2) OSDBU shall be responsible for consolidating bureau and office 
goals, performing trend analysis, and submitting proposed Departmental 
goals to SBA, and the Minority Business Development Agency (MBDA), 
Department of Commerce.
    (3) Bureau and office goals shall be negotiated and finalized with 
the OSDBU based on current plans and budget projections. OSDBU shall 
negotiate final Departmental goals with SBA, and MBDA.
    (4) Since goals are expressed as a percentage of planned 
acquisition dollars, final budget approvals may change specific dollar 
goals.
    (b) HCAs may request revision of goals from OSDBU when final budget 
approvals result in a change of plus or minus 15% in planned 
acquisition dollars or in instances when a disproportionate change in 
the mix of products or services is required. The goal setting process 
with the Bureau/Offices shall be completed by December 31st of each 
year.
    (c) In accordance with 111 DM 8, OSDBU is responsible for 
performing all functions and duties prescribed in FAR 19.201(d) and 
for:
    (1) Developing and maintaining policies, procedures, regulations, 
and guidelines for the effective administration of the Department's 
small business and small disadvantaged business programs; and,
    (2) Providing functional direction and policy guidance to personnel 
in the implementation of the programs under paragraph (c)(1) of this 
section.
    (d) HCAs without authority to redelegate shall:
    (1) Appoint a full-time BUDS (e.g., procurement analyst or other 
non-operational contract person), for each contracting office where:
    (i) Annual contract obligations regularly exceed $20 million or 
represent a substantial part of the bureau's total contracting program; 
and,
    (ii) The number, type, and size of contract transactions provide 
sufficient opportunities for small business and small disadvantaged 
business participation.
    (2) Appoint a part-time BUDS (e.g., procurement analyst or other 
non-operational contract person), for each contracting office where the 
nature of the contracting program requires such action to ensure 
accomplishment of annual program goals;
    (e) Each BUDS shall perform the duties listed at FAR 
19.201(d)(5)(6), and (10), 405 DM 1, and in the BUDS Standard Operating 
Procedures Handbook (405 DM 2).


1419.202  Specific policies.


1419.202-70  Acquisition screening and BUDS recommendations.

    (a) For open market acquisitions estimated to exceed the SAT, the 
DI Form 1886, ``Acquisition Screening and Review Form,'' shall be 
completed by the CO and signed as indicated in Block 20 of the form. 
The completed form shall be placed in the solicitation/contract file 
prior to requesting quotations, publication of a FedBizOpps 
solicitation notice, or publication of a notice of intent to award a 
sole source contract.
    (b) For open market acquisitions estimated to be greater than the 
micro-purchase threshold and less than the SAT that are not reserved 
for small business or proceeding under the 8(a) program, the DI Form 
1886 shall be completed as specified in paragraph (a) of this section.
    (c) Open market acquisitions, including charge card transactions, 
estimated to be less than the micro-purchase threshold are not 
routinely screened, but may be upon request by the purchaser.
    (d) For Federal Supply Schedule competitions estimated to exceed 
the SAT and for which the source list contains less than three small 
businesses, the DI Form 1886 shall be completed as specified in 
paragraph (a) of this section.
    (e) Federal Supply Schedule buys below the SAT are not routinely 
screened, but may be upon request by the CO.

[[Page 19845]]

    (f) If the proposed method of acquisition is non-competitive, the 
Justification for Other than Full and Open Competition shall be 
attached to the DI Form 1886.
    (g) Advance acquisition plans developed pursuant to FAR Part 7 
shall be attached to the DI Form 1886.
    (h) The CO shall document the rationale for not accepting a BUDS 
recommendation on DI Form 1886, under ``Notes.'' (See FAR 19.202.) 
Disagreements between the CO and the BUDS concerning the decision to 
use a set aside or the 8(a) program shall be resolved by the BPC. The 
BPC shall annotate the resolution, with signature, in the ``Notes'' 
section of the form. The BPC may consult with the OSDBU to obtain 
assistance in resolving the disagreement.

Subpart 1419.5--Set-Asides for Small Business


1419.503  Setting aside a class of acquisitions.


1419.503-70  Class set-aside for construction acquisitions.

    (a) Acquisitions for construction (as defined in FAR 2.101) 
estimated to cost $2 million or less shall be set-aside on a class 
basis for exclusive participation by small business concerns. This 
class set-aside does not apply when:
    (1) The acquisition is procured using simplified acquisition 
procedures;
    (2) Use of a set-aside is precluded by the Small Business 
Competitiveness Demonstration Program (SBCDP) (See FAR 19.10);
    (3) A non-competitive acquisition has been approved under the 
procedures of FAR 6.3;
    (4) Work is to be performed outside the U.S.; or
    (5) The BPC determines that adequate competition is not likely to 
be obtained if the acquisition is restricted to small business 
concerns, applying the requirements of FAR 19.202-2.
    (b) The use of such set-asides is contingent upon current policy in 
effect under application of the SBCDP (See FAR 19.10).


1419.505  Rejecting Small Business Administration recommendations.

    (a) A written justification in support of the CO's decision to 
reject the set-aside recommendation shall be approved by the HCA. It 
shall then be forwarded for sequential review through the Director, 
OSDBU and the Director, PAM, for action by the AS/PMB.
    (b) As prescribed in FAR 19.505, the AS/PMB is authorized to reply 
to the Administrator of SBA on any SBA appeal of a contracting 
officer's set-aside recommendation.


1419.506  Withdrawing or modifying small business set-asides.

    The HCA is authorized, without the power of redelegation, to 
resolve disagreements between the CO and the BUDS concerning 
withdrawals or modifications of individual or class set-asides as 
prescribed in FAR 19.506. OSDBU shall be provided timely notification 
of such disagreements and the recommendation of the BUDS in order to 
provide assistance in resolving the disagreement.

Subpart 1419.6--Certificates of Competency and Determinations of 
Responsibility


1419.602  Procedures.


1419.602-1  Referral.

    The CO shall obtain approval from the CCO for all determinations 
documenting a responsive small business' lack of responsibility prior 
to submission to the appropriate SBA office. A copy of the 
determination shall be sent to OSDBU.

Subpart 1419.7--The Small Business Subcontracting Program


1419.705  Responsibilities of the contracting officer under the 
subcontracting assistance program.


1419.705-2  Determining the need for a subcontracting plan.

    The CO's determination that no subcontract possibilities exist for 
a proposed contractual action shall be reviewed by the BUDS prior to 
the approval by a level above the CO, and a copy shall be forwarded to 
OSDBU within 5 working days of execution, but in no case later than the 
date of contract award. The BUDS may contact OSDBU and consider any 
comments or recommendations offered.


1419.705-3  Preparing the solicitation.

    In solicitations containing subcontract plan requirements, COs 
should consider evaluating offered subcontract plans and the offerors' 
past subcontracting compliance and accomplishments in the evaluation 
and selection of proposals. This would be particularly appropriate for 
acquisitions known to offer significant subcontracting opportunities 
for small, small disadvantaged, and women-owned businesses or which 
include work previously performed by a small business. When used, this 
factor must be evaluated in such a way that the relative ranking or 
scoring of small business offerors is not adversely affected by the 
lack of a subcontract plan.


1419.705-6  Postaward responsibilities of the contracting officer.

    In addition to the actions specified in FAR 19.705-6, the CO shall 
also be responsible for the following:
    (a) Forwarding a copy of each approved subcontracting plan to OSDBU 
within 10 working days after approval of the plan.
    (b) Ensuring that the contractor forwards the original copy of the 
Standard Form 295, Summary Contracting Report, to the Department of the 
Interior, Director, OSDBU, 18th & C Streets, NW., Washington, DC 20240, 
Rm. 2747.
    (c) Forwarding a copy of the Standard Form 294, Subcontracting 
Report for Individual Contracts, received from individual contractors, 
within 10 working days, to OSDBU.
    (d) Conducting on-site business and economic development program 
management reviews (see 405 DM 1) of a prime contractor's small and 
disadvantaged business subcontracting program. Reviews shall be 
conducted as required based on problems perceived such as insufficient 
progress in meeting subcontracting goals. The result of the review 
shall be documented in writing using the format shown at 1453.303-70. 
At the discretion of the CO, the BUDS may conduct the reviews. In 
addition to required bureau/office internal distribution, a copy of the 
review report shall be submitted to OSDBU within 60 calendar days after 
completion of the review.

Subpart 1419.8--Contracting with the Small Business Administration 
(The 8(a) Program)


1419.803  Selecting acquisitions for the 8(a) Program.

    The CO shall first screen the acquisition for suitability for award 
to SBA under the Section 8(a) program, before taking action under FAR 
19.501, 19.502 or 1419.503-70. After selecting acquisitions suitable 
for the 8(a) program, the contracting office shall provide SBA 
appropriate advance acquisition planning information for all 
acquisitions found to be suitable for the 8(a) program (See also 
1407.1).


1419.810  SBA appeals.

    AS/PMB, without the power of redelegation, is authorized to issue 
the decision on an SBA appeal of a CO's Section 8(a) decision.

[[Page 19846]]

Subpart 1419.9--Contracting Opportunities for Women-Owned Small 
Businesses


1419.901  Policy.

    In support of the Department's policy to facilitate, preserve, and 
strengthen women's business enterprises:
    (a) Annual goals for contract awards to women-owned businesses 
shall be established as prescribed in 1419.201(b); and
    (b) Small women-owned businesses shall be considered for 
subcontracting opportunities under FAR 19.702, and subcontract awards 
shall be reported as prescribed in FAR 19.704.
    (c) OSDBU, in accordance with 111 DM 8, is assigned the 
responsibility for carrying out the Department's women-owned business 
enterprise program.

Subpart 1419.10--Small Business Competitiveness Demonstration 
Program


1419.1003  Purpose.

    OSDBU is responsible for establishing the 10 targeted industry 
categories and monitoring DOI's participation.

PARTS 1420-1421--[RESERVED]

PART 1422--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

Subpart 1422.1--Basic Labor Policies
Sec.
1422.101 Labor relations.
1422.101-1 General.
1422.101-3 Reporting labor disputes.
1422.101-4 Removal of items from contractors' facilities affected by 
work stoppages.
1422.103 Overtime.
1422.103-4 Approvals.
Subpart 1422.3--Contract Work Hours and Safety Standards Act
1422.302 Liquidated damages and overtime pay.
Subpart 1422.4--Labor Standards for Contracts Involving Construction
1422.404 Davis-Bacon Act wage determinations.
1422.404-6 Modifications of wage determinations.
1422.406-8 Investigations.
1422.406-9 Withholding from or suspension of contract payments.
1422.406-13 Semiannual enforcement reports.
Subpart 1422.6--Walsh-Healey Public Contracts Act
1422.604 Exemptions.
1422.604-2 Regulatory exemptions.
Subpart 1422.8--Equal Employment Opportunity
1422.803 Responsibilities.
1422.804 Affirmative action programs.
1422.804-2 Construction.
1422.805 Procedures.
1422.807 Exemptions.
Subpart 1422.10--Service Contract Act of 1965, As Amended
1422.1003 Applicability.
1422.1003-4 Administrative limitations, variations, tolerances and 
exemptions.
Subpart 1422.13--Special Disabled Veterans, Veterans of the Vietnam 
Era, and Other Eligible Veterans
1422.1305 Waivers.
Subpart 1422.14--Employment of Workers with Disabilities
1422.1403 Waivers.

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

Subpart 1422.1--Basic Labor Policies


1422.101  Labor relations.


1422.101-1  General.

    The HCA may designate programs or requirements for which notice of 
labor disputes is necessary.


1422.101-3  Reporting labor disputes.

    Labor disputes that may interfere with contract performance shall 
be reported to the SOL and the HCA.


1422.101-4  Removal of items from contractors' facilities affected by 
work stoppages.

    Prior to initiating any action for removal of items from 
contractors' facilities, the CO shall obtain advice from SOL.


1422.103  Overtime.


1422.103-4  Approvals.

    The CO shall obtain approval for the use of overtime from the CCO 
after consultation with the cognizant program office.

Subpart 1422.3--Contract Work Hours and Safety Standards Act


1422.302  Liquidated damages and overtime pay.

    (a) HCAs are authorized to take the action in FAR 22.302(c)
    (b) Funds withheld or collected for liquidated damages shall be 
disposed of in accordance with procedures under 1422.406-9.

Subpart 1422.4--Labor Standards for Contracts Involving 
Construction


1422.404  Davis-Bacon Act wage determinations.


1422.404-6  Modifications of wage determinations.

    The HCA is authorized to request an extension for awards not made 
within 90 days after bid opening.


1422.406-8  Investigations.

    (a) Labor standards investigations required by FAR 22.406-8 shall 
be the responsibility of the CO.
    (b) The CO's report of violations shall be submitted to the HCA, 
who is authorized to take the actions prescribed in FAR 22.406-8(d).
    (c) The HCA shall forward all referrals through the OIG to the 
Attorney General.


1422.406-9  Withholding from or suspension of contract payments.

    HCAs shall establish procedures for collection and disposition of 
funds withheld under FAR 22.406-9, including liquidated damages.


1422.406-13  Semiannual enforcement reports.

    PAM is responsible for submitting the report required by FAR 
22.406-13 to DOL. In accordance with DOL memoranda, PAM requires 
bureaus to submit the required reports by April 15 and October 15 for 
the reporting periods of October 1 through March 31 and April 1 through 
September 30, respectively.

Subpart 1422.6--Walsh-Healey Public Contracts Act


1422.604  Exemptions.


1422.604-2  Regulatory exemptions.

    The AS/PMB is authorized to request the Secretary of Labor to 
exempt contracts from the Walsh-Healey Public Contracts Act under FAR 
22.604-2(b). A written finding justifying the exemption shall be 
prepared by the CO and submitted by the HCA to the Director, PAM for 
further action.

Subpart 1422.8--Equal Employment Opportunity


1422.803  Responsibilities.

    The CO shall forward matters involving the applicability of EO 
11246 to the HCA for resolution. This authority is granted to the HCA 
without the power of redelegation.


1422.804  Affirmative action programs.


1422.804-2  Construction.

    Bureau contracting offices are responsible for maintaining 
(including updates and revisions) lists of geographic areas subject to 
affirmative action requirements.


1422.805  Procedures.

    Copies of the poster ``Equal Employment Opportunity is the Law'' 
(National Stock No. 7690-00-926-8988) may be ordered from the GSA 
supply depot.

[[Page 19847]]

1422.807  Exemptions.

    (a) The Director, PAM shall make the determination that a contract 
is essential to the national security and that the award of the 
contract without complying with one of the requirements of FAR 22.8 is 
necessary to national security.
    (b) Requests for exemptions shall be submitted in writing by the 
CO, through the HCA, to the Director, PAM.

Subpart 1422.10--Service Contract Act of 1965, as Amended


1422.1003  Applicability.


1422.1003-4  Administrative limitations, variations, tolerances and 
exemptions.

    The CO shall submit requests for determination regarding 
application of the Service Contract Act and exemptions directly to DOL, 
Administrator of the Wage and Hour Division.

Subpart 1422.13--Special Disabled Veterans, Veterans of the Vietnam 
Era, and Other Eligible Veterans


1422.1305  Waivers.

    (a) The Director, PAM is authorized to:
    (1) Waive any or all terms of the clause at FAR 52.222-35, Equal 
Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, 
and Other Eligible Veterans, under the conditions prescribed in FAR 
22.1305(a), and
    (2) Waive any requirement in FAR Subpart 22.13 as prescribed in FAR 
22.1305(b).
    (b) Requests for waivers, under paragraph (a) of this section, 
shall be made in writing by the CO through the HCA to the Director, PAM 
for further action.

Subpart 1422.14--Employment of Workers with Disabilities


1422.1403  Waivers.

    The Director, PAM is authorized to waive any or all of the terms of 
the clause at FAR 52.222-36, Affirmative Action for Workers with 
Disabilities, under the conditions prescribed in FAR 22.1403(a), and 
waive any requirement in FAR Subpart 22.14 as prescribed in FAR 
22.1403(b). Requests for waivers shall be made in writing by the CO 
through the HCA to the Director, PAM.

PART 1423--[RESERVED]

PART 1424--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

Subpart 1424.1--Protection of Individual Privacy
Sec.
1424.102 General.
1424.103 Procedures.
1424.104 Contract clauses.
Subpart 1424.2--Freedom of Information Act.
1424.203 Policy.

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

Subpart 1424.1--Protection of Individual Privacy


1424.102  General.

    Procedures for implementing the Privacy Act of 1974 and 
Departmental regulations under 43 CFR Part 2, Subpart D, are contained 
in 383 DM.


1424.103  Procedures.

    When required by FAR 24.103(b)(2), the CO shall provide the 
contractor with a copy of the Department's Privacy Act regulations 
codified in 43 CFR Part 2, Subpart D.


1424.104  Contract clauses.

    The clause at FAR 52.224-1, Privacy Act Notification, as prescribed 
in FAR 24.104(a), shall be supplemented in accordance with 1452.224-1.

Subpart 1424.2--Freedom of Information Act


1424.203  Policy.

    (a) The Department's implementation of the Freedom of Information 
Act is codified in regulations under 43 CFR Part 2, Subparts A and B.
    (b) It is the policy of the Department to alert prospective 
contractors which place restrictions on the disclosure and use of 
proposal data that certain data may be subject to disclosure under a 
Freedom of Information Act request. (See 1415.207 and 1452.215-71.)

PART 1425--FOREIGN ACQUISITION

Sec.
1425.003 Definitions.
Subpart 1425.1--Buy American Act--Supplies
1425.103 Exceptions.
1425.105 Determining reasonableness of cost.
Subpart 1425.2--Buy American Act--Construction Materials
1425.202 Exceptions.
1425.206 Noncompliance.
Subpart 1425.7--Prohibited Sources
1425.701 Restriction on acquisition of supplies or services from 
prohibited sources.
Subpart 1425.10--Additional Foreign Acquisition Regulations
1425.1001 Waiver of right to examination of records.

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


1425.003  Definitions.

    Impracticable, as used in this subpart, includes reasons other than 
cost, and availability.
    Manufacture, as used in this subpart, means completion of an end 
product in the form required to meet specifications. It includes only 
direct incorporation of components into the end products to alter the 
original material and establish the identity/character of the end 
product, and excludes other supplies, materials, and requirements such 
as testing, manuals, related equipment, etc.

Subpart 1425.1--Buy American Act--Supplies


1425.103  Exceptions.

    (a) The AS/PMB is authorized to make the determination that a 
foreign end item will be acquired for Government use because preference 
for a U.S. item would be inconsistent with the public interest. Such 
determinations shall be prepared by the CO and submitted by the HCA to 
the Director, PAM for further action.
    (b) The Director, PAM is authorized to make the determination that 
an article, material or supply not included in the list under FAR 
25.104 is not mined, produced, or manufactured in the U.S. in 
sufficient and reasonably available commercial quantities of 
satisfactory quality. Determinations shall be prepared by the CO and 
submitted by the BPC for approval.
    (c) Contracting activities which have information justifying the 
removal of an item from the list under FAR 25.104 shall submit such 
information to the Director, PAM for further disposition.


1425.105   Determining reasonableness of cost.

    (a) In unusual circumstances, the Director, PAM may authorize the 
use of evaluation differentials other than those prescribed in FAR 
25.105 for a particular acquisition.
    (b) Requests for use of other evaluation differentials shall be 
submitted by the HCA to the Director, PAM for further action.

[[Page 19848]]

Subpart 1425.2--Buy American Act--Construction Materials


1425.202   Exceptions.

    (a)(1) The CO may determine the reasonableness of cost as 
determined by the formula in 1425.203-70.
    (2) The Director, PAM has the authority to make the determination 
that use of U.S. construction material would be impracticable. Failure 
of the Director, PAM to issue a determination within 30 days after 
receipt of a request will be deemed approval for use of the cited 
foreign material.
    (3) For items not on the list at FAR 25.108(d), the CCO may make 
the non-availability determination if the items cost less than the SAT. 
The HCA may make the non-availability determination when the cost of 
the items exceeds the SAT.
    (b) [Reserved]


1425.206   Noncompliance.

    The CO will report, in writing, any use of non-excepted, foreign 
construction materials by contractors, subcontractors and suppliers 
through the HCA to the Director, PAM for debarment action in accordance 
with Subpart 1409.4.

Subpart 1425.7--Prohibited Sources


1425.701   Restriction on acquisition of supplies or services from 
prohibited sources.

    The AS/PMB is authorized to request permission from the Office of 
Foreign Assets Control (OFAC) for DOI use of supplies and services from 
the sources described in FAR 25.701. Requests shall be prepared by the 
CO and submitted through the HCA to the Director, PAM.

Subpart 1425.10--Additional Foreign Acquisition Regulations


1425.1001   Waiver of right to examination of records.

    The Director, PAM is authorized to make the determinations 
prescribed in FAR 25.1001(b). Determinations shall be prepared by the 
CO and submitted through the HCA to the Director, PAM.

PART 1426--OTHER SOCIOECONOMIC PROGRAMS

Subpart 1426.70--Indian Preference
Sec.
1426.7000 Scope of subpart.
1426.7001 Definitions.
1426.7002 Statutory requirements.
1426.7003 Applicability and contract clause.
1426.7004 Compliance enforcement.
1426.7005 Tribal preference requirements.
Subpart 1426.71--Minority Business Reports
1426.7100 Scope of subpart.
1426.7101 Definitions.
1426.7102 Minority Business Development Agency (MBDA-91) Plan and 
Reports.
1426.7102-1 Statutory basis.
1426.7102-2 Requirements.
1426.7103 The Comprehensive Environmental Response, Compensation, 
and Liability Act (CERCLA) (Superfund Minority Contractors 
Utilization Report).
1426.7103-1 Statutory basis.
1426.7103-2 Requirements.

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

Subpart 1426.70--Indian Preference


1426.7000   Scope of subpart.

    This subpart prescribes policies and procedures for implementation 
of Section 7(b) of the Indian Self-Determination and Education 
Assistance Act (Pub. L. 93-638, 88 Stat. 2205, 25 U.S.C. 450e(b)).


1426.7001   Definitions.

    For purposes of this subpart the following definitions shall apply:
    Indian means a person who is a member of an Indian Tribe. If the 
contractor has reason to doubt that a person seeking employment 
preference is an Indian, the contractor shall grant the preference but 
shall require the individual within thirty (30) days to provide 
evidence from the Tribe concerned that the person is a member of the 
Tribe.
    Indian organization means that governing body of any Indian Tribe 
or entity established or recognized by such governing body in 
accordance with the Indian Financing Act of 1974 (88 Stat. 77; 25 
U.S.C. 1451).
    Indian-owned economic enterprise means any Indian-owned commercial, 
industrial, or business activity established or organized for the 
purpose of profit provided that such Indian ownership shall constitute 
not less than 51 percent of the enterprise.
    Indian reservation includes Indian reservations, public domain 
Indian allotments, former Indian reservations in Oklahoma, and land 
held by incorporated Native groups, regional corporations, and village 
corporations under the provisions of the Alaska Native Claims 
Settlement Act, (85 Stat. 688; 43 U.S.C. 1601 et seq.).
    Indian Tribe means an Indian Tribe, band, nation, or other 
recognized group or community, including any Alaska Native village or 
regional or village corporation as defined in or established pursuant 
to the Alaska Native Claims Settlement Act (85 Stat. 688; 43 U.S.C. 
1601), which is recognized as eligible for the special programs and 
services provided by the United States to Indians because of their 
status as Indians.
    On or near an Indian reservation means on a reservation or the 
distance within that area surrounding an Indian reservation(s) that a 
person seeking employment could reasonably be expected to commute to 
and from in the course of a work day.


1426.7002   Statutory requirements.

    Section 7(b) of the Indian Self-Determination and Education 
Assistance Act requires that any contract or subcontract entered into 
pursuant to that Act, the Act of April 16, 1934 (48 Stat. 596; 25 
U.S.C. 452), as amended (the Johnson-O'Malley Act), or any other Act 
authorizing contracts with Indian organizations or for the benefit of 
Indians shall require that, to the greatest extent feasible:
    (a) Preferences and opportunities for training and employment in 
connection with the administration of such contracts shall be given to 
Indians, and
    (b) Preference in the award of subcontracts in connection with the 
administration of such contracts shall be given to Indian organizations 
and to Indian-owned economic enterprises as defined in Section 3 of the 
Indian Financing Act of 1974 (Sec. 3, Pub. L. 93-262; 88 Stat. 77; 25 
U.S.C. 1452).


1426.7003   Applicability and contract clause.

    (a) The CO shall insert the clause at 1452.226-70, Indian 
Preference--Department of the Interior, in solicitations issued and 
contracts awarded by:
    (1) The Bureau of Indian Affairs;
    (2) A contracting activity other than the Bureau of Indian Affairs 
when the contract is entered into pursuant to an act specifically 
authorizing contracts with Indian organizations; and,
    (3) A contracting activity other than the Bureau of Indian Affairs 
where the work to be performed is specifically for the benefit of 
Indians and is in addition to any incidental benefits which might 
otherwise accrue to the general public.
    (b) The CO shall insert the clause at 1452.226-71, Indian 
Preference Program--Department of the Interior, in all solicitations 
issued and contracts awarded by a contracting activity which may exceed 
$50,000, which contain the clause required by paragraph (a) of this 
section and where it is determined by the CO, prior to solicitation, 
that the work under the contract will be performed in whole or in part 
on or near an Indian reservation(s). The Indian Preference Program 
clause may also be included in solicitations issued and

[[Page 19849]]

contracts awarded by a contracting activity which may not exceed 
$50,000, but which contain the clause required by paragraph (a) of this 
section and which, in the opinion of the CO, offer substantial 
opportunities for Indian employment, training or subcontracting.


1426.7004   Compliance enforcement.

    (a) The CO is responsible for conducting periodic reviews of the 
contractor to ensure compliance with the requirements of the clauses 
prescribed in 1426.7003. These reviews may be conducted with the 
assistance of the Indian Tribe(s) concerned.
    (b) Complaints of noncompliance with the requirements of the 
clauses prescribed under 1426.7003 received in writing by the 
contracting activity shall be promptly investigated by the CO. A 
written disposition of the complaint shall be prepared by the CO.


1426.7005   Tribal preference requirements.

    (a) Where the work under a contract is to be performed on an Indian 
reservation, the CO may supplement the clause at 1452.226-71, Indian 
Preference Program--Department of the Interior, by adding specific 
Indian preference requirements of the Tribe on whose reservation the 
work is to be performed. The supplemental requirements shall be jointly 
developed for the contract by the CO and the Tribe. Supplemental 
preference requirements must represent a further implementation of the 
requirements of Section 7(b) of Public Law 93-638 and must be approved 
by the SOL for legal sufficiency before being added to a solicitation 
and resultant contract. Any supplemental preference requirements to be 
added to the clause at 1452.226-71 shall be included in the 
solicitation and clearly identified in order to ensure uniform 
understanding of the additional requirements by all prospective bidders 
or offerors.
    (b) Nothing in this section shall be interpreted to preclude Tribes 
from independently developing and enforcing their own tribal preference 
requirements. Such independently developed tribal preference 
requirements shall not, except as provided in paragraph (a) of this 
section, become a requirement in contracts covered under this subpart 
1426.70 and must not hinder the Government's right to award contracts 
and to administer their provisions.

Subpart 1426.71--Minority Business Reports


1426.7100   Scope of subpart.

    This subpart sets forth reporting requirements established by 
Executive Order 12432 entitled ``Minority Business Enterprise 
Development'' and the Comprehensive Environmental Response, 
Compensation and Liability Act (CERCLA), also known as ``Superfund.''


1426.7101   Definitions.

    For purposes of this subpart the following definitions shall apply:
    Contract means a contract or subcontract awarded pursuant to the 
FAR, as well as federal financial assistance, including a subcontract, 
cooperative agreement, grant, subagreement or subgrant.
    Minority business enterprise means a business which is at least 51% 
owned by one or more minority individuals, or in the case of any 
publicly owned business, at least 51% of the voting stock is owned by 
one or more minority individuals. The daily business operations are 
likewise managed by the minority owner.
    Minority individual means a U.S. citizen who has been subjected to 
racial or ethnic prejudice or cultural bias because of their identity 
as members of this group without regard to their individual qualities. 
Such groups include, but are not limited to: Black Americans; Hispanic 
Americans; Native Americans; Asian-Pacific Americans; and other groups 
whose members are U.S. citizens and are found to be disadvantaged by 
the Small Business Administration pursuant to Section 8(d) of the Small 
Business Act as amended (15 U.S.C. 637(d)), or the Secretary of 
Commerce.
    (a) Native Americans are persons having origins in any of the 
original peoples of North America or the Hawaiian Islands; in 
particular, American Indians, Eskimos, Aleuts and Native Hawaiians.
    (b) Asian-Pacific Americans--persons having origins from Japan, 
China, the Philippines, Vietnam, Korea, Samoa, Guam, the U.S. Trust 
Territories of the Pacific, Northern Marianas, Laos, Cambodia, Taiwan, 
Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the 
Marshall Islands, or the Federated States of Micronesia.


1426.7102   Minority Business Development Agency (MBDA-91) Plan and 
Reports.


1426.7102-1   Statutory basis.

    Executive Order 12432, dated July 14, 1983, established the 
requirement for the Department of Commerce (i.e., MBDA) to collect 
information on acquisition and financial assistance awards to minority 
businesses, as well as credit assistance to such firms.


1426.7102-2   Requirements.

    (a) MBDA-91 Plan. The BPC is required to submit the Plan on form 
MBDA-91 to the OSDBU by no later than November 15 of each year. Section 
1 of the form, ``Procurement Program Activities,'' will be completed by 
OSDBU. Sections 2 through 5 must be completed by bureaus and offices.
    (b) MBDA-91 Reports. The BPC must submit reports to the OSDBU 
within 30 days following the end of a fiscal quarter. Reports are 
cumulative from October 1 of the reporting fiscal year, and monetary 
figures should be rounded to whole dollars in each section of the 
report.
    (c) ``Negative report'' means when the Bureau had no reportable 
activity during the quarter. Submit such a report using the MBDA-91 
report form.


1426.7103   The Comprehensive Environmental Response, Compensation, and 
Liability Act (CERCLA) (Superfund Minority Contractors Utilization 
Report).


1426.7103-1   Statutory basis.

    Paragraph 105 of CERCLA requires the President of the United States 
to consider the availability of qualified minority business enterprises 
in awarding contracts under the Act and report annually to Congress on 
the extent of such awards, including the efforts made to encourage the 
participation of such firms in programs carried out under the act. The 
Environmental Protection Agency has delegated responsibility for 
preparing the report, which includes contracts for Superfund hazardous 
waste clean-up awarded by other agencies.


1426.7103-2   Requirements.

    The contracting offices shall report designated projects funded 
with EPA monies, involving the actual award of contracts, subcontracts, 
financial assistance instruments, subagreements, etc. by DOI. Do not 
include Departmental projects covered by Superfund and funded solely 
with Departmental appropriations. The BPC must submit one of the 
following reports inclusive of all projects, as applicable, to the 
OSDBU by no later than November 8 of each year:
    (a) EPA Forms 6005-3 and 6005-3A for applicable Superfund contract 
awards, including partial awards to minority businesses.
    (b) EPA Form 6005-3A only, for applicable Superfund contract awards 
when no awards were made to minority firms, to report the efforts made 
to promote minority business participation in the designated projects.

[[Page 19850]]

    (c) ``Negative Report'' when the reporting Bureau did not award 
contracts using Superfund monies.

Subchapter E--General Contracting Requirements

PART 1427--PATENTS, DATA, AND COPYRIGHTS

Subpart 1427.2--Patents and Copyrights
Sec.
1427.201 Patent and copyright infringement liability.
1427.201-2 Contract clauses.
1427.202 Royalties.
1427.202-3 Adjustment of royalties.
Subpart 1427.3--Patent Rights Under Government Contracts
1427.303 Contract clauses.
1427.304 Procedures.
1427.304-1 General.
1427.304-4 Appeals.
1427.306 Licensing background patent rights to third parties.

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

Subpart 1427.2--Patents and Copyrights


1427.201  Patent and copyright infringement liability.


1427.201-2  Contract clauses.

    Approval to exempt specific United States patents from the patent 
indemnity clause shall be obtained from the CCO with legal review and 
concurrence.


1427.202  Royalties.


1427.202-3  Adjustment of royalties.

    The CO shall report to the Assistant Solicitor for Acquisitions and 
Intellectual Property the results of any action taken in compliance 
with FAR 27.202-3.

Subpart 1427.3--Patent Rights Under Government Contracts.


1427.303  Contract clauses.

    (a) The HCA is authorized to make the determination to sublicense 
foreign governments or international organizations, as prescribed in 
FAR 27.303(b)(3).
    (b) If one of the exceptions in FAR 27.303(e)(1) is used, then 
insert clause 1452.227-70, Appeals of Use of Exceptions. The exception 
in FAR 27.303(e)(1)(ii) to use alternative provisions restricting or 
eliminating a contractor's right to retain title to any subject 
invention shall be made by the HCA, after consultation with the 
Assistant Solicitor for Acquisitions and Intellectual Property.
    (c) Within 30 days after contract award the CO shall forward copies 
of determinations to use exceptions under FAR 27.303(e)(1) shall be 
forwarded to the Assistant Solicitor for Acquisitions and Intellectual 
Property for submission to the Secretary of Commerce and, if required, 
to the Chief Counsel for Advocacy of the Small Business Administration. 
The determinations shall include all supporting documentation.


1427.304  Procedures.


1427.304-1  General.

    (a)(1) Exceptions. The Associate Solicitor for the General Law 
Division shall issue a decision on the appeal of a small business 
concern or nonprofit organization of the use of exceptions under FAR 
27.303(e)(1).
    (2) If the Associate Solicitor for the General Law Division 
determines that the appeal notice raises a genuine dispute over the 
material facts, a fact-finding hearing shall be conducted by OHA. The 
hearing shall be conducted at a location convenient to the parties 
concerned as determined by the Director, OHA, and on a date and time 
stated. The contractor may be represented by counsel or any duly 
authorized representative. Witnesses may be called by either party. The 
proceedings shall be conducted expeditiously and in such a manner that 
each party will have a full opportunity to present all information 
considered pertinent to the determination. A transcribed record of the 
proceedings shall be made and shall be made available at cost to the 
contractor upon request, unless the requirement for the transcribed 
record is waived by mutual agreement of the contractor and OHA.
    (3) OHA shall prepare written findings of fact and transmit them to 
the Associate Solicitor for the General Law Division.
    (4) OHA may hear oral arguments after fact-finding provided that 
the contractor, its counsel or other duly authorized representative, is 
present in order to have the opportunity to make arguments and 
rebuttal. The Associate Solicitor for the General Law Division shall 
issue a decision.
    (b) Greater rights determinations. Determinations on requests for 
greater rights in subject inventions by contractors shall be made by 
the HCA after consultation with the Assistant Solicitor for 
Acquisitions and Intellectual Property. Appeals of such determinations 
shall be made to the CBCA.
    (c) Exercise of march-in-rights. After notification to the 
contractor of information warranting the exercise of march-in rights, 
the CO shall prepare a written notice to the contractor after 
consultation with the Assistant Solicitor for Acquisitions and 
Intellectual Property. The notice shall be prepared and signed by the 
Associate Solicitor for the General Law Division. Within the time 
constraints, if the Associate Solicitor for the General Law Division 
determines any information submitted by the contractor (assignee or 
exclusive licensee) after notice of march-in is received raises a 
genuine dispute over material facts, a fact-finding hearing shall be 
conducted by OHA. The Associate Solicitor for the General Law Division 
shall issue a final determination, after consideration of any further 
written or oral arguments from the parties. An unfavorable 
determination to a contractor (assignee or exclusive licensee) shall be 
subject to appeal.
    (d) Licenses and assignments under contracts with nonprofit 
organizations. COs may approve contractor requests for assignment of 
rights or exclusive licenses after obtaining the advice of the 
Assistant Solicitor for Acquisitions and Intellectual Property. 
Solicitations containing FAR clause 52.227-11 shall state that 
contractors should forward such requests to the CO.


1427.304-4  Appeals.

    (a) The CO is authorized to make any of the determinations listed 
after consultation with the Assistant Solicitor for Acquisitions and 
Intellectual Property.
    (b) Determinations made under paragraph (a) of this section shall 
be considered final decisions under the Contract Disputes Act and may 
be appealed to the CBCA in accordance with the procedures in DIAR 
Subpart 1433.2.


1427.306  Licensing background patent rights to third parties.

    Any proposed determination to be made to require third party 
licensing shall be submitted by the HCA through the Assistant Solicitor 
for Acquisitions and Intellectual Property for signature of the AS/PMB. 
The contractor may request a public hearing on the record prior to the 
above determination. In such cases, the proposed determination and the 
contractor's request for a hearing shall be referred to OHA. OHA shall 
conduct public hearings as set forth in 1427.304-1(a)(4) and shall 
forward its findings and recommendations to the AS/PMB for a final 
determination. The final determination shall inform the contractor of 
the right to judicial review within sixty (60) days of the AS/PMB 
determination.

[[Page 19851]]

PART 1428--BONDS AND INSURANCE

Subpart 1428.3--Insurance

Sec.
1428.301 Policy.
1428.306 Insurance under fixed-price contracts.
1428.306-70 Insurance for aircraft services contracts.
1428.311 Solicitation provision and contract clause on liability 
insurance under cost-reimbursement contracts.
1428.311-1 Contract clause.
1428.311-2 Agency solicitation provisions and contract clauses.

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

Subpart 1428.3--Insurance


1428.301  Policy.

    It is the policy of DOI to insure its own risks only when such 
action is in the best interest of the Government. Circumstances where 
contractors are required to carry insurance are listed under FAR 28.301 
and 28.306. In these circumstances, the CO shall insert the clause at 
1452.228-70, Liability Insurance-- Department of the Interior, in 
solicitations and contracts.


1428.306  Insurance under fixed-price contracts.


1428.306-70  Insurance for aircraft services contracts.

    (a) Policy. The CO shall insert minimum insurance requirements in 
aircraft services contracts in order to protect the Government and its 
contractors.
    (b) Applicability. The clauses prescribed in section 1428.311-2 are 
applicable to all fixed-price contracts involving use of aircraft with 
either a contractor-furnished or a Government-furnished pilot except 
for one-time charters when Government exposure is minimal and time 
limitations are present.


1428.311  Solicitation provision and contract clause on liability 
insurance under cost-reimbursement contracts.


1428.311-1  Contract clause.

    The CO shall modify the clause at FAR 52.228-7, Insurance--
Liability to Third Persons, in accordance with 1452.228-7, and insert 
in solicitations and contracts as prescribed in FAR 28.311-1.


1428.311-2  Agency solicitation provisions and contract clauses.

    The following DOI clauses shall be used as prescribed:
    (a) The CO shall insert the clause at 1452.228-71, Aircraft and 
General Public Liability Insurance--Department of the Interior, in 
solicitations and contracts when a fixed-price contract for operation 
of aircraft is anticipated and where the Government is using a 
contractor-furnished pilot.
    (b) The CO shall insert the clause at 1452.228-72, Liability for 
Loss or Damage--Department of the Interior, in solicitations and 
contracts when a fixed-price contract for use of aircraft is 
anticipated and where the Government does not have a property interest 
and is using a Government-furnished pilot.
    (c) The CO shall insert the clause at 1452.228-73, Liability for 
Loss or Damage (Property Interest)--Department of the Interior, in 
solicitations and contracts when a fixed-price contract for use of 
aircraft is anticipated and where the Government has a property 
interest in the aircraft and is using a Government-furnished pilot 
(e.g., a lease with purchase option).

PART 1429--TAXES

Subpart 1429.3--State and Local Taxes
Sec.
1429.303 Application of State and local taxes to Government 
contractors and subcontractors.

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

Subpart 1429.3--State and Local Taxes


1429.303  Application of State and local taxes to Government 
contractors and subcontractors.

    Contractors to be treated as agents of the Government for the 
purposes set forth in FAR 29.303(a) shall require the written review 
and approval of the AS/PMB. The HCA shall submit requests for approval 
through SOL, to the Director, PAM, for further action.

PART 1430--COST ACCOUNTING STANDARDS ADMINISTRATION

Subpart 1430.2--CAS Program Requirements
Sec.
1430.201 Contract requirements.
1430.201-5 Waiver.
1430.202 Disclosure requirements.
1430.202-2 Impracticality of submission.

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

Subpart 1430.2--CAS Program Requirements


1430.201  Contract requirements.


1430.201-5  Waiver.

    The CO shall prepare requests to waive contractor compliance with 
CAS prescribed in FAR 30.201-5 and 48 CFR 9903.201-5(e) (FAR Appendix). 
The CO shall submit the request for waiver to the Director, PAM, 
without the power of redelegation, for a determination. PAM must report 
any waivers granted on a fiscal year basis to the CASB in accordance 
with FAR 30.201-5(e).


1430.202  Disclosure requirements.


1430.202-2  Impracticality of submission.

    The CO shall prepare any request to award a contract without the 
required contractor submission of the Form No. CASB-DS-1, Disclosure 
Statement, and submit it through the HCA, to the Director, PAM, and to 
the Secretary for approval. The Secretary, without the power of 
redelegation, must file a report to CASB within 30 days in accordance 
with 48 CFR 9903.202-2 (FAR Appendix).

PART 1431--CONTRACT COST PRINCIPLES AND PROCEDURES

Subpart 1431.1--Applicability
Sec.
1431.101 Objectives.

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

Subpart 1431.1--Applicability


1431.101  Objectives.

    Individual deviations concerning cost principles and procedures 
shall require the approval of the cognizant Assistant Secretary, with 
further redelegation authorized. Redelegation is limited to the BPC.

PART 1432--CONTRACT FINANCING

Subpart 1432.1--Non-Commercial Item Purchase Financing
Sec.
1432.102 Description of contract financing methods.
Subpart 1432.3--Loan Guarantees for Defense Production
1432.304 Procedures.
1432.304-2 Certificate of eligibility.
Subpart 1432.4--Advance Payments for Non-Commercial Items
1432.402 General.
1432.407 Interest.
Subpart 1432.5--Progress Payments Based on Costs
1432.501 General.
1432.501-2 Unusual progress payments.
1432.502-2 Contract finance office clearance.
Subpart 1432.6--Contract Debts
1432.602 Responsibilities.
1432.610 Compromising debts.
Subpart 1432.9--Prompt Payment
1432.903 Responsibilities.

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

[[Page 19852]]

Subpart 1432.1--Non-Commercial Item Purchase Financing


1432.102  Description of contract financing methods.

    Use of progress payments based on a percentage or stage of 
completion are authorized for construction contracts. Progress payments 
for other than construction, alteration, and repair contracts require 
the CO to write a determination that:
    (a) Payments based on costs would be impracticable; and
    (b) Adequate measures exist for determining quality standards and 
the percentage of work accomplished.

Subpart 1432.3--Loan Guarantees for Defense Production


1432.304   Procedures.


1432.304-2   Certificate of eligibility.

    Guaranteed loan applications shall be authorized and transmitted to 
the Federal Reserve Board by the AS/PMB, in accordance with FAR 32.304-
2(h).

Subpart 1432.4--Advance Payments for Non-Commercial Items


1432.402   General.

    The HCA is authorized to approve determinations and findings, as 
well as contract terms, for advance payments. The CO shall submit a 
recommendation for approval or disapproval of the contractor's request 
to the HCA through the head of the bureau finance office.


1432.407   Interest.

    The HCA may authorize advance payments without interest pursuant to 
FAR 32.407.

Subpart 1432.5--Progress Payments Based on Costs


1432.501   General.


1432.501-2   Unusual progress payments.

    The CO shall obtain the advance approval of the HCA, or designee, 
before providing a progress payment rate higher than the customary 
rates as defined in FAR 32.501-1. Advance approval to provide progress 
payment rates higher than the customary rates shall not be delegated 
lower than the CCO.


1432.502-2  Contract finance office clearance.

    The CO shall obtain approval of the bureau finance office prior to 
taking actions listed in FAR 32.502-2.

Subpart 1432.6--Contract Debts


1432.602   Responsibilities.

    344 DM contains policy, standards, and guidelines for collection of 
debts within DOI. Each bureau and office is responsible for developing 
an internal debt collection system and prescribing internal procedures 
for collection of debts, including debts covered under FAR Subpart 
32.6.


1432.610  Compromising debts.

    The CO may recommend compromise of contractor actions pursuant to 
FAR 32.610, but shall consult 344 DM and SOL for further action.

Subpart 1432.9--Prompt Payment


1432.903   Responsibilities.

    The CO may modify the timing of payment specified in paragraph 
(a)(1)(i) and (ii) of the clause FAR 52.232-26, Prompt Payment for 
Fixed-Price Architect-Engineer Contracts, and/or paragraph (a)(1)(i) 
and (ii) of the clause at FAR 52.232-27, Prompt Payment for 
Construction Contracts, as appropriate, to provide for a period shorter 
than 30 days (but not less than 7 days) for making contract financing 
payments based on geographical site location, workload, contractor 
ability to submit a proper request for payment, or other factors. When 
considering a modification to these FAR standard(s), the CO should 
alert the finance and program officials involved in the payment process 
to ensure that such shorter contract payment terms to be specified in 
the solicitation and resulting contract will be met. A CO determination 
justifying a shorter payment period must be documented in writing, and 
incorporated into the solicitation/contract file.

PART 1433--PROTESTS, DISPUTES, AND APPEALS

Subpart 1433.1--Protests
Sec.
1433.102 General.
1433.103 Protests to the agency.
1433.104 Protests to GAO.
1433.106 Solicitation provisions and contract clauses.
Subpart 1433.2--Disputes and Appeals
1433.203 Applicability.
1433.209 Suspected fraudulent claims.
1433.211 Contracting officer's decision.
1433.213 Obligation to continue performance.
1433.214 Alternative dispute resolution (ADR).
1433.215 Contract clauses.

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

Subpart 1433.1--Protests


1433.102  General.

    For protests filed with GAO, the SOL shall be responsible for 
handling all bid protest matters. Any communications to GAO shall be 
coordinated with the regional and/or field solicitor and the Assistant 
Solicitor, Acquisitions and Intellectual Property.


1433.103  Protests to the agency.

    For protests filed with the agency, the CO shall coordinate with 
the regional and/or field solicitor and the Assistant Solicitor, 
Acquisitions and Intellectual Property, prior to making the protest 
decision and before suspending or terminating a contract award as a 
result of the protest. When a protest is denied by the CO, the decision 
issued shall advise the protester that the decision may be appealed to 
the GAO. All protest decisions must also contain a notice that appeals 
to GAO must include a copy of the CO's protest decision.


1433.104  Protests to GAO.

    (a) General procedure. (1) A protester shall furnish a copy of its 
complete protest simultaneously to the CO and the Assistant Solicitor, 
Acquisitions and Intellectual Property. Upon being telephonically 
advised by the GAO of the receipt of a protest, the SOL shall inform 
the appropriate contracting activity which shall immediately notify the 
CO. For protests concerning Federal Information Processing (FIP) 
acquisitions, the SOL shall also inform the Director, Office of 
Information Resources Management (PIR), who, in turn, shall notify the 
appropriate bureau Information Resources Management contact and GSA 
official. The CO shall prepare the protest report as required by FAR 
33.104(a)(3).
    (2) The SOL will furnish promptly GAO's written notice of the 
protest to the cognizant contracting activity which, in turn, shall 
promptly transmit copies to the CO. The CO shall begin notification as 
prescribed in FAR 33.104(a)(2). The notification letters shall contain 
a specified period of time for submission of comments and include 
instructions that any comments submitted to the GAO should also be 
submitted simultaneously to the CO and the Assistant Solicitor, 
Acquisitions and Intellectual Property. Copies of the CO's notification 
letters shall be sent concurrently to the Assistant Solicitor, 
Acquisitions and Intellectual Property.
    (3)(i) The contracting activity shall have no more than 15 working 
days from the date of telephonic notification by the SOL to deliver the 
protest report to the Assistant Solicitor, Acquisitions

[[Page 19853]]

and Intellectual Property. For reports involving use of the 10 working 
day express option, the SOL shall establish the report delivery date 
after consultation with the contracting activity.
    (ii) If required, the SOL shall make the request for an extension 
in the report due date.
    (iii) In addition to the requirements of FAR 33.104(a)(3), the 
report shall be appropriately titled and dated; shall cite the GAO file 
number; and shall be signed by the CO. Reports shall be prepared with 
the assistance of the local attorney-advisor of the SOL. A statement 
shall be included giving an estimate of the length of time an award may 
be delayed without significant expense or difficulty in performance. If 
appropriate, the report shall contain a statement regarding any urgency 
for the acquisition and the extent to which a delay in award may result 
in significant performance difficulties or additional expense to the 
Government. The contracting activity shall submit the CO's report to 
the Assistant Solicitor, Acquisitions and Intellectual Property, who 
will then submit it to GAO and provide a copy to each interested party 
who responded to the notification pursuant to FAR 33.104(a)(2).
    (b) Protests before award. (1) The finding to award, 
notwithstanding protest, shall be written by the CO, reviewed by the 
SOL, and approved by the HCA. A copy of the approved written finding 
shall be placed in the contract file.
    (2) The SOL shall be responsible for notifying GAO of the finding 
to award notwithstanding protest.
    (c) Protests after award. (1) The CO shall notify the SOL prior to 
suspending or terminating the awarded contract.
    (2) The written finding to authorize continued contract 
performance, notwithstanding protest, shall be written by the CO, 
reviewed by the SOL, and approved by the HCA.
    (3) The SOL shall be responsible for notifying GAO of the finding 
to continue contract performance not withstanding protest.
    (d) Notice to GAO. The CO shall prepare the report required by FAR 
33.104(g), and coordinate it with the Assistant Solicitor, Acquisitions 
and Intellectual Property, and the Director, PAM, prior to HCA 
signature (signature level not redelegable). For protests regarding FIP 
acquisitions, the CO shall also coordinate the report with the 
Director, PIR. After signature, the report shall be forwarded to the 
Assistant Solicitor for Acquisitions and Intellectual Property for 
transmission to GAO.


1433.106  Solicitation provisions and contract clauses.

    The provision at FAR 52.233-2, Service of Protest, as prescribed in 
FAR 33.106, shall be modified in accordance with the instructions in 
DIAR 1452.233-2.

Subpart 1433.2--Disputes and Appeals


1433.203  Applicability.

    (a) The CO shall prepare any determination that application of the 
Contract Disputes Act to contracts with a foreign or international 
organization would not be in the public interest and forward it to the 
HCA for review. The HCA shall be responsible for submitting the 
determination through the Director, PAM, to the AS/PMB for approval.
    (b) The CBCA is authorized by the Contract Disputes Act or by the 
Secretary to consider and determine an appeal from a decision of a CO 
on a claim arising under or relating to a contract made by DOI.


1433.209  Suspected fraudulent claims.

    The CO shall refer all matters relating to suspected fraudulent 
claims by a contractor or individual to the OIG for further action or 
investigation.


1433.211  Contracting officer's decision.

    The CO's decision shall reference the Civilian Board of Contract 
Appeals, 6th Floor, 1800 M Street, NW., Washington, DC 20036, and its 
rules of procedure at http://www.cbca.gsa.gov.


1433.213  Obligation to continue performance.

    If the CO considers financing continued contractor performance to 
be in the best interest of the Government, the CO shall prepare and 
forward a determination to the HCA for approval.


1433.214  Alternative dispute resolution (ADR).

    DOI strongly encourages the use of ADR in the resolution of 
disputes in lieu of litigation or adjudication. Efforts shall be made 
to resolve disputes in an expeditious and financially responsible 
manner.


1433.215  Contract clauses.

    The Disputes clause contained in FAR 52.233-1 shall be used with 
its Alternate I in all solicitations and contracts.

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

PART 1434--[RESERVED]

PART 1435--RESEARCH AND DEVELOPMENT CONTRACTING

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


1435.010  Scientific and technical reports.

    If a Research and Development (R&D) contract results involve 
classified or national security information, the CO shall follow the 
agency procedures prescribed in DIAR 1404.403 prior to making the 
results available. Copies of publications and reports are also required 
to be sent to the DOI Departmental Library, 1849 C Street, NW., MS-
2258, Main Interior Building, Washington, DC 20240.

PART 1436--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

Subpart 1436.2--Special Aspects of Contracting for Construction
Sec.
1436.209 Construction contracts with architect-engineer firms.
1436.270 Preparation of solicitations and contracts for 
construction.
1436.270-1 Uniform contract format.
1436.270-2 Part I--The Schedule.
1436.270-3 Part II--Contract clauses.
1436.270-4 Part III--Documents, exhibits and other attachments.
1436.270-5 Part IV--Representations and instructions.
Subpart 1436.5--Contract Clauses
1436.570 Prohibition against use of lead-based paint.
1436.571 Additive and deductive items.
Subpart 1436.6--Architect-Engineer Services


1436.602  Selection of firms for architect-engineer contracts.

1436.602-1 Selection criteria.
1436.602-2 Evaluation boards.
1436.602-3 Evaluation board functions.
1436.602-4 Selection authority.
1436.602-5 Short selection processes for contracts not to exceed the 
simplified acquisition threshold.
1436.603 Collecting data on and appraising firms' qualifications.

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

Subpart 1436.2--Special Aspects of Contracting for Construction


1436.209  Construction contracts with architect-engineer firms.

    Approval to award a contract for construction to a firm or its 
subsidiaries that designed the project shall be made by the HCA only 
after discussion with Director, PAM, and with legal

[[Page 19854]]

concurrence. The request for approval prepared by the CO shall include 
the reason(s) why award to the design firm is required; an analysis of 
the facts involving potential or actual organizational conflicts of 
interest, including benefits and detriments to the Government and the 
prospective contractor; and the measures which are to be taken to 
avoid, neutralize or mitigate conflicts of interest. A copy of the 
documentation shall be forwarded to PAM at the time of consultation.


1436.270  Preparation of solicitations and contracts for construction.


1436.270-1  Uniform contract format.

    (a) COs shall prepare solicitations and contracts for construction 
using the uniform contract format outlined in Table 1436-1.
    (b) If any section of the uniform contract format does not apply, 
the CO should so mark that section in the solicitation. Upon award, the 
CO shall not physically include Part IV in the resulting contract, but 
shall retain it in the contract file.

                  TABLE 1436-1--Uniform Contract Format
------------------------------------------------------------------------
              Section                               Title
------------------------------------------------------------------------
                          Part I--The Schedule
------------------------------------------------------------------------
A.................................  Solicitation/contract form.
B.................................  Bid schedule.
C.................................  Specifications/Drawings.
D.................................  Packaging and marking.
E.................................  Inspection and acceptance.
F.................................  Deliveries or performance.
G.................................  Contract administration data.
H.................................  Special contract requirements.
Part IV--Representations and Instructions...............................
------------------------------------------------------------------------
K.................................  Representations, certifications, and
                                     other statements of offerors.
L.................................  Instructions, conditions, and
                                     notices to offerors.
M.................................  Evaluation factors for award.
------------------------------------------------------------------------

1436.270-2   Part I--The Schedule.

    The CO shall prepare the Schedule as follows:
    (a) Section A, Solicitation/contract form. Use SF 1442, 
Solicitation, Offer, and Award (Construction, Alteration or Repair), as 
prescribed in FAR 36.701(a).
    (b) Section B, Bid schedule. Bid schedule.
    (c) Section C, Specifications/Drawings. Include specifications and 
drawings (See FAR Part 11) or reference other location in the uniform 
contract format (e.g. Section J, attachment ------).
    (d) Section D, Packaging and Marking. Not applicable.
    (e) Section E, Inspection and acceptance. Include inspection, 
acceptance, quality assurance, and reliability requirements (See FAR 
Part 46).
    (f) Section F, Deliveries or performance. Include Suspension of 
Work, Liquidated Damages, Commencement, Prosecution, and Completion of 
Work, Variation in Quantity clauses (See FAR Part 12).
    (g) Section G, Contract administration data. Include Contracting 
Officer's Representative/Technical Representative identification, and 
any required administration information (e.g., accounting and 
appropriation data).
    (h) Section H, Special contract requirements. Include any special 
contract requirements which are not included in other sections of the 
uniform contract format.


1436.270-3   Part II--Contract clauses.

    For Section I, Contract clause, include any clauses required by law 
or by the FAR (including Subpart 36.5), the DIAR (including Subpart 
1436.5), and any additional bureau-wide or local clauses expected to be 
included in any resulting contract which are not included in other 
sections of the uniform contract format.


1436.270-4   Part III--Documents, exhibits and other attachments.

    For Section J, List of documents, exhibits, and other attachments, 
include wage determinations (See FAR 22.404), SF-24--Bid Bond (See FAR 
28.101), and other attachments by listing the title, date and number 
for each document.


1436.270-5   Part IV--Representations and instructions.

    The CO shall prepare the representations and instructions as 
follows:
    (a) Section K, Representations, certifications, and other 
statements of offerors. Include provisions requiring representations, 
certifications, or submission of other information by an offeror.
    (b) Section L, Instructions, conditions, and notices to offerors. 
Include other provisions or instructions to offerors which are not 
included in other sections of the uniform contract (e.g., FAR 52.214-19 
if using sealed bidding).
    (c) Section M, Evaluation factors for award. Identify all factors 
that will be considered in awarding the contract (See, for example, FAR 
14.201-8 for sealed bidding; FAR 15.304 for competitive proposals).

Subpart 1436.5--Contract Clauses


1436.570   Prohibition against use of lead-based paint.

    (a) Definitions. As used in this section, ``residential 
structure:'' means any house, apartment, or structure intended for 
human habitation including any institutional structure where persons 
reside such as an orphanage, boarding school dormitory, day care 
center, or extended care facility.
    (b) The CO shall insert the clause at 1452.236-70, Prohibition 
Against Use of Lead-Based Paint, in solicitations and contracts when 
construction of residential structures or rehabilitation (including 
dismantling, demolition, or removal) of residential structures is 
contemplated.


1436.571   Additive and deductive items.

    If it appears that funds available for a construction project may 
be insufficient for all the desired features, the CO may provide in the 
solicitation for a base bid item covering the work as specified and for 
one or more additive or deductive bid items which add or omit specified 
features of the work in a stated order of priority. Such solicitations 
shall include a provision substantially as set forth in 1452.236-71, 
and the low bidder and the bid items to be awarded shall be determined 
as provided in the provision.

Subpart 1436.6--Architect-Engineer Services


1436.602   Selection of firms for architect-engineer contracts.


1436.602-1   Selection criteria.

    (a) The CO may include specific evaluation criteria to be used in 
the evaluation of potential contractors, in accordance with the 
requirements of FAR 36.602-1.
    (b) HCAs are authorized to approve the use of design competition.


1436.602-2   Evaluation boards.

    HCAs shall establish procedures for providing permanent or ad hoc 
architect-engineer evaluation boards. Bureau procedures shall provide 
for the appointment of private practitioners of architecture, 
engineering, or related professions when such action is determined by 
the HCA to be essential to meet the Government's minimum needs.


1436.602-3   Evaluation board functions.

    The selection report shall be prepared for HCA approval, in 
accordance with bureau/office procedures.

[[Page 19855]]

1436.602-4   Selection authority.

    The HCA is authorized to serve as the designated selection 
authority.


1436.602-5   Short selection processes for contracts not to exceed the 
simplified acquisition threshold.

    At each occurrence, CO approval shall be obtained prior to the 
utilization of either of the short selection processes used for 
architect-engineer contracts not expected to exceed the simplified 
acquisition threshold.


1436.603   Collecting data on and appraising firms' qualifications.

    HCAs who require architect-engineer services shall use their 
established procedures to collect data on and appraising firms' 
qualifications.

PART 1437--SERVICE CONTRACTING

Subpart 1437.1--Service Contracts--General
Sec.
1437.102 Policy.
1437.103 Contracting officer responsibility.
1437.170 Special service contract requirements.
Subpart 1437.70--Appraisal Services--(Real Property)
1437.7000 Scope of subpart.
1437.7001 Contractor qualification requirements.
1437.7002 Appraisal standards.
Subpart 1437.71--Information Collection Services
1437.7100 Scope of subpart.
1437.7101 General.
1437.7102 Clauses.

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

Subpart 1437.1--Service Contracts--General

1437.102 Policy.
    The HCA is responsible for establishing internal review and 
approval procedures for service contracts in accordance with OFPP 
Policy Letter 93-1, Management Oversight of Service Contracting. 
Special attention shall be directed to avoidance of contracting for 
inherently governmental functions, as well as contract administration 
in the area of incurred cost monitoring to complement work progress 
monitoring.


1437.103   Contracting officer responsibility.

    (a) While recognizing that program officials are responsible for 
accurately describing the need to be filled or the problem to be solved 
through the service contract, COs shall:
    (1) Award and administer contracts in a manner that will provide 
the customer with quality services on time and within budget;
    (2) Ensure that requirements are clearly defined and appropriate 
performance standards are included in the contract;
    (3) Utilize the checklist in paragraph (b) of this section, or 
bureau substitute, to ensure compliance with general policies and the 
specific guidance in OFPP Policy Letters 92-1, Inherently Governmental 
Functions, 91-2, Service Contracting, and 89-1, Conflicts of Interest 
Policies Applicable to Consultants;
    (4) Work in close collaboration with the beneficiaries of the 
services being purchased to ensure that contractor performance meets 
contract requirements and performance standards;.
    (b) Following is a checklist to aid analysis and review of 
requirements for service contracts.
    (1) General.
    (i) Is the statement of work complete, with a clear-cut division of 
responsibility between the contracting parties?
    (ii) Is it stated in terms the market can satisfy?
    (iii) Does the statement of work encompass all commercially 
available services that can meet the actual functional need (eliminates 
any nonessential preferences that may thwart full and open 
competition)?
    (iv) Is the statement of work performance-based to the maximum 
extent possible (i.e., is the acquisition structured around the purpose 
of the work to be performed, as opposed to either the manner by which 
the work is to be performed or a broad and imprecise statement of work? 
Does the statement of work follow OFPP Pamphlet IV, A Guide to Writing 
and Administering Performance Statements of Work for Service Contracts 
(Supplement 2 to OMB Circular A-76)?, as described in OFPP Pamphlet 
IV?)
    (2) Inherently Governmental Functions. If the response to the first 
question below is affirmative, the contract requirement is for an 
inherently Governmental function that Government officials must 
perform. If the response to the second question below is affirmative, 
the contract may be for an inherently governmental function.
    (i) Is the requirement for a function that is listed in Appendix A 
of OFPP Policy Letter 92-1?
    (ii) If the function is not listed in Appendix A, do any of the 
factors in the totality of the circumstances analysis discussed in 
section 7(b) of the Policy Letter 92-1 indicate that the function may 
be inherently governmental?
    (iii) Are Government employees currently performing the task to be 
contracted out? If so, has OMB Circular A-76 been consulted?
    (3) Cost Effectiveness. If the response to any of the following 
questions is negative, the agency may not have a valid requirement or 
not be obtaining the requirement in the most cost effective manner.
    (i) Is the statement of work written so that it supports the need 
for a specific service?
    (ii) Is the statement of work written so that it permits adequate 
evaluation of contractor versus in-house cost and performance?
    (iii) Are the choices of contract type, quality assurance plan, 
competition strategy, or other related acquisition strategies and 
procedures in the acquisition plan appropriate to ensure good 
contractor performance to meet the user's needs?
    (iv) If a cost reimbursement contract is contemplated, is the 
acquisition plan adequate to ensure that the contractor will have the 
incentive to control costs under the contract?
    (v) Is the acquisition plan adequate to address the cost 
effectiveness of using contractor support (either long-term or short-
term) versus in-house performance?
    (vi) Is the cost estimate, or other supporting cost information, 
adequate to enable the contracting office to effectively determine 
whether costs are reasonable?
    (vii) Is the statement of work adequate to describe the requirement 
in terms of what is to be performed as opposed to how the work is to be 
accomplished?
    (viii) Is the acquisition plan adequate to ensure that there is 
proper consideration given to quality and best value?
    (4) Control. If the response to any of the following questions is 
negative, there may be a control problem.
    (i) Are there sufficient resources to evaluate contractor 
performance when the statement of work requires the contractor to 
provide advice, analysis and evaluation, opinions, alternatives, or 
recommendations that could significantly influence agency policy 
development or decision-making?
    (ii) Does the quality assurance plan provide for adequate 
monitoring of contractor performance?
    (iii) Is the statement of work written so that it specifies a 
contract deliverable or requires progress reporting on contractor 
performance?
    (iv) Is agency expertise adequate to independently evaluate the 
contractor's approach, methodology, results,

[[Page 19856]]

options, conclusions or recommendations?
    (v) Is the requirement for a function or service absent from the 
list in Appendix B of OFPP Policy Letter 92-1? If it is similar to a 
function or service on that list, greater management scrutiny may be 
required.
    (5) Conflicts of Interest. If the response to any of the following 
questions is affirmative, there may be a conflict of interest.
    (i) Can the potential offeror perform under the contract in such a 
way as to devise solutions or make recommendations that would influence 
the award of future contracts to that contractor?
    (ii) If the requirement is for support services (such as system 
engineering or technical direction), were any of the potential offerors 
involved in developing the system design specifications or in the 
production of the system?
    (iii) Has a potential offeror participated in earlier work 
involving the same program or activity that is the subject of the 
present contract wherein the offeror had access to source selection or 
propriety information not available to other offerors competing for the 
contract?
    (iv) Will the contractor be evaluating a competitor's work?
    (v) Does the contract allow the contractor to accept its own 
products or activities on behalf of the Government?
    (vi) Will the work under this contract put the contractor in a 
position to influence government decision-making, e.g., developing 
regulations that will affect the contractor's current or future 
business?
    (vii) Will the work under this contract effect the interests of the 
contractor's other clients?
    (viii) Are any of the potential offerors, or their personnel who 
will perform the contract, former agency officials who--while employed 
by the agency--personally and substantially participated in the 
development of the requirement for, or the procurement of, these 
services within the past two years?
    (6) Competition. If the response to any of the following questions 
is negative, completion may be unnecessarily limited.
    (i) Is the statement of work defined so as to avoid overly 
restrictive specifications or performance standards?
    (ii) Is the contract formulated in such a way as to avoid creating 
a continuous and dependent arrangement with the same contractor?
    (iii) Is the use of an indefinite quantity or term contract 
arrangement appropriate to obtain the required services?
    (iv) Will the requirement be obtained through the use of full and 
open competition?


1437.170   Special service contract requirements.

    The following types of services shall be acquired as specified in 
the following Departmental regulations:
    (a) Aircraft-related services and maintenance shall be acquired as 
prescribed in 353 DM;
    (b) Audiovisual services, including motion pictures, slide shows 
and videotape recordings, shall be acquired as prescribed in 471 DM 1;
    (c) Information-technology services shall be acquired as prescribed 
in 376 DM 4;
    (d) Guard services for safeguarding classified information shall be 
acquired as prescribed in 442 DM 8;
    (e) Printing services shall be acquired as prescribed in 314 DM 1;
    (f) Contracts which require collection of identical information 
from ten or more members of the public shall be cleared as prescribed 
in 381 DM 12.

Subpart 1437.70--Appraisal Services (Real Property)


1437.7000   Scope of subpart.

    This subpart prescribes policies and procedures for acquiring real 
property appraisal services.


1437.7001   Contractor qualification requirements.

    (a) Prior to award of a contract for real property appraisal 
services when the services are required in support of court actions, 
the CO shall coordinate with the appropriate Solicitor's office and 
obtain written concurrence from the Assistant U.S. Attorney assigned to 
represent the Government in the matter that the source to be selected 
possesses the necessary qualifications for adequate contract 
performance. This requirement shall be treated as a special standard of 
responsibility (See FAR 9.104-2).
    (b) The CO shall include the requirements of paragraph (a) of this 
section in all solicitations for real property appraisal services which 
may be subject to future court action.


1437.7002   Appraisal standards.

    (a) All real property appraisals for condemnation purposes shall be 
consistent with requirements of the Interagency Land Acquisition 
Conference publication ``Uniform Appraisal Standards for Federal Land 
Acquisitions'' published by the Government Printing Office and 
available at http://www.gpoaccess.gov.
    (b) The standards in paragraph (a) of this section shall be made a 
part of all solicitations and resulting contracts for real property 
appraisal services procured for condemnation purposes.

Subpart 1437.71--Information Collection Services


1437.7100   Scope of subpart.

    This subpart prescribes policies and procedures for acquiring 
information collection services which are subject to the requirements 
of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.)


1437.7101  General.

    The Paperwork Reduction Act of 1980 requires that no federal agency 
shall conduct or sponsor the collection of information, upon identical 
items, from ten or more public respondents unless prior approval is 
obtained from OMB.


1437.7102  Clauses.

    The CO shall insert the clause at 1452.237-70, Information 
Collection--Department of the Interior, in all solicitations and 
contracts which are subject to the Paperwork Reduction Act of 1980.

PARTS 1438-1441--[RESERVED]

SUBCHAPTER G--CONTRACT MANAGEMENT

PART 1442--CONTRACT ADMINISTRATION AND AUDIT SERVICES

Subpart 1442.2--Contract Administration Services
Sec.
1442.202 Assignment of contract administration.
Subpart 1442.6--Corporate Administrative Contracting Officer
1442.602 Assignment and location.

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

Subpart 1442.2--Contract Administration Services


1442.202   Assignment of contract administration.

    (a) The decision to withhold normal individual contract 
administration functions is delegated to one level above the CO.
    (b) The delegation of authority to issue orders under provisioning 
procedures in existing contracts and under basic ordering agreements 
for items and services identified in the schedule must be approved at 
one level above the CO.

[[Page 19857]]

Subpart 1442.6--Corporate Administrative Contracting Officer


1442.602   Assignment and location.

    The BPC has the authority to approve the appointment of a Corporate 
Administrative Contracting Officer.

PART 1443--CONTRACT MODIFICATIONS

Subpart 1443.2--Change Orders
Sec.
1443.205 Contract clauses.

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

Subpart 1443.2--Change Orders


1443.205  Contract clauses.

    BPCs may establish procedures, when appropriate, for authorizing 
the CO to vary the 30-day period for submission of requests for 
adjustment in the clauses prescribed by FAR 43.205.

PART 1444--[RESERVED]

PART 1445--GOVERNMENT PROPERTY

Subpart 1445.3--Authorizing the Use and Rental of Government Property
Sec.
1445.302 Contracts with foreign governments or international 
organizations.

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

Subpart 1445.3--Authorizing the Use and Rental of Government 
Property


1445.302  Contracts with foreign governments or international 
organizations.

    The HCA, after coordinating with the cognizant PMO, shall establish 
procedures to recover use costs when foreign governments or 
international organizations request use of Government production and 
research property.

PART 1446--QUALITY ASSURANCE

Subpart 1446.1--General
Sec.
1446.170 Government-Industry Data Exchange Program (GIDEP).
Subpart 1446.4--Government Contract Quality Assurance
1446.401 General.
Subpart 1446.5--Acceptance
1446.501 General.
Subpart 1446.6--Material Inspection and Receiving Reports
1446.670 Inspection, receiving and acceptance reports.
1446.671 Inspection, receiving and acceptance certification.
Subpart 1446.7--Warranties
1446.704 Authority for use of warranties.
1446.708 Warranties of data.

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

Subpart 1446.1--General


1446.170  Government-Industry Data Exchange Program (GIDEP).

    (a) COs shall encourage contractors and subcontractors to 
participate in the GIDEP, a cooperative program managed and funded by 
the U.S. Government to exchange engineering, failure experience, 
metrology, product information, and reliability-maintain ability data 
on products, components (including construction materials), 
manufacturing processes, environmental issues associated with those 
manufacturing processes, recycling and waste prevention.
    (b) The GIDEP is managed for the U.S. Government by the Department 
of the Navy. GIDEP participants are not subject to any fees or 
assessments other than the costs associated with dissemination of 
information by other than electronic means.
    (c) An application to participate in the GIDEP may be obtained at 
http://www.gidep.org. COs shall include information on GIDEP in 
solicitation documents and during discussions at preaward and postaward 
conferences.

Subpart 1446.4--Government Contract Quality Assurance


1446.401  General.

    Inspection of supplies or services shall be documented as 
prescribed in DIAR Subpart 1446.6.

Subpart 1446.5--Acceptance


1446.501  General.

    Acceptance of supplies or services shall be documented as 
prescribed in DIAR Subpart 1446.6.

Subpart 1446.6--Material Inspection and Receiving Reports


1446.670  Inspection, receiving and acceptance reports.

    (a) Except for simplified acquisitions (See FAR 46.404) and unless 
otherwise prescribed by bureau procedures, the documentation in DIAR 
1446.671 shall be inserted on each commercial shipping document or 
packing list, whether by manual or electronic means, for supplies or 
services and shall be signed by the authorized Government 
representative as required in FAR 46.401(f) and Subpart 46.5.
    (b) The documentation required in paragraph (a) of this section 
shall be made at the place or places specified in the contract for 
performance of Government quality assurance (See FAR 46.401(b)) as 
prescribed in FAR 46.402 or FAR 46.403, as appropriate and for 
acceptance in accordance with FAR 46.503.
    (c) If the CO elects to use a contractor's certificate of 
conformance (See FAR 46.315) under the conditions prescribed in FAR 
46.504, the certificate may be used as the basis of Government 
acceptance.


Sec.  1446.671  Inspection, receiving and acceptance certification.

    As prescribed in DIAR 1446.670, the following documentation shall 
be completed via manual or electronic means for each delivery of 
supplies or services in accordance with Bureau procedures:

INSPECTION, RECEIVING AND ACCEPTANCE CERTIFICATION

    The listed items or services have been: -------- inspected, ------
-- received, and -------- accepted and they conform to the contract 
except as noted below or on attached documents.
    ------------ Signature and typed name of authorized Government 
representative.
    Date --------

Subpart 1446.7--Warranties


1446.704  Authority for use of warranties.

    The CCO is authorized to make the written determination to use a 
warranty in an acquisition.


1446.708  Warranties of data.

    Warranties of data shall only be used after consultation with the 
SOL.

PART 1447--[RESERVED]

PART 1448--VALUE ENGINEERING

Subpart 1448.1--Policies and Procedures
Sec.
1448.102 Policies.

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

Subpart 1448.1--Policies and Procedures


1448.102  Policies.

    The HCA shall establish procedures for processing and evaluating 
VECP's as prescribed in FAR Subpart 48.1 and 369 DM, Value Engineering.

PART 1449--TERMINATION OF CONTRACTS

Subpart 1449.1--General Principles
Sec.
1449.106 Fraud or other criminal conduct.

[[Page 19858]]

1449.107 Audit of prime contract settlement proposals and 
subcontract settlements.
1449.111 Review of proposed settlements.
Subpart 1449.4--Termination for Default
1449.402 Termination of fixed-price contracts for default.
1449.402-3 Procedure for default.

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

Subpart 1449.1--General Principles


1449.106  Fraud or other criminal conduct.

    When fraud or other criminal conduct is suspected, the CO will 
submit a report documenting the incident to the BPC for transmittal to 
the OIG. Informational copies will be forwarded to the HCA and the 
Director, PAM.


1449.107  Audit of prime contract settlement proposals and subcontract 
settlements.

    Requests for audits pursuant to FAR 49.107 shall be sent to the 
Assistant Inspector General for Auditing, in accordance with the 
procedures in 360 DM 2.3.


1449.111  Review of proposed settlements.

    All proposed settlement agreements shall be reviewed by the SOL and 
approved at one level above the CO. Settlement agreements of $250,000 
or more shall be approved by the BPC.

Subpart 1449.4--Termination for Default


1449.402  Termination of fixed-price contracts for default.


1449.402-3  Procedure for default.

    In addition to the requirements of FAR 49.402-3(g), the notice of 
termination shall contain instructions regarding the disposition of any 
Government property in the possession of the contractor, and, in the 
case of construction contracts, materials, appliances, and structures 
that may be on the construction site. The notice shall also contain a 
statement concerning the liability of the contractor or its surety for 
any liquidated damages (See FAR 49.402-7).

PART 1450--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT

Subpart 1450.1--Extraordinary Contractual Actions
Sec.p;
Sec.  1450.101 General.
Sec.  1450.101-2 Policy.
Sec.  1450.101-3 Records.
Sec.  1450.102 Delegation of and limitations on exercise of 
authority.
Sec.  1450.102-1 Delegation of authority.
Sec.  1450.103 Contract adjustments.
Sec.  1450.103-6 Disposition.
Sec.  1450.104 Residual powers.
Sec.  1450.104-2 General.
Sec.  1450.104-3 Special procedures for unusually hazardous or 
nuclear risks.

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

Subpart 1450.1--Extraordinary Contractual Actions


1450.101  General.


1450.101-2   Policy.

    Requests for extraordinary contractual actions shall be submitted 
by the HCA to the Director, PAM, for further action.


1450.101-3  Records.

    The records of actions taken under FAR Part 50 shall be maintained 
by the Director, PAM.


1450.102  Delegation of and limitations on exercise of authority.


1450.102-1  Delegation of authority.

    The AS/PMB shall approve all actions under FAR Part 50, except for 
actions in excess of $55,000, actions which increase the contract price 
without consideration, and indemnification actions, which shall be 
approved by the Secretary.


1450.103   Contract adjustments.


1450.103-6   Disposition.

    The CO shall submit the Memorandum of Decision including the 
contractor's request, contractor information in support of the request 
required by FAR 50.103-4, the results of the CO's investigation 
required by FAR 50.103-5, and the information required by FAR 50.103-6 
to the SOL for review. If the SOL concurs with the Memorandum of 
Decision, the Memorandum of Decision will be submitted through the HCA 
to the Director, PAM, for further action.


1450.104   Residual powers.


1450.104-2   General.

    Proposals for the exercise of residual powers shall be processed 
using the procedures referred to in FAR 50.104-2.


1450.104-3   Special procedures for unusually hazardous or nuclear 
risks.

    The CO shall submit the proposed Memorandum of Decision including 
the contractor's request for indemnification and the information 
required from the CO, to the SOL for review and approval. If the SOL 
approves the proposed Memorandum of Decision, it shall be submitted 
through the HCA, to the Director, PAM, for approval or disapproval by 
the Secretary.

PART 1451--USES OF GOVERNMENT SOURCES BY CONTRACTORS

Subpart 1451.1--Contractor Use of Government Supply Sources
Sec.
1451.102 Authorization to use Government supply sources.

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

Subpart 1451.1--Contractor Use of Government Supply Sources


1451.102   Authorization to use Government supply sources.

    If the CO decides to authorize a contractor to use Government 
supply sources under the conditions prescribed in FAR 51.102, a written 
request for a FEDSTRIP activity address code (See FPMR 101-26.203) 
shall be made through the acquisition office FEDSTRIP point of contact.

PART 1452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Sec.
1452.000 Scope of part.
Subpart 1452.2--Text of Provisions and Clauses
1452.200 Scope of subpart.
1452.203-70 Restrictions on Endorsements.
1452.204-70 Release of Claims.
1452.215-70 Examination of Records by the Department of the 
Interior.
1452.215-71 Use and Disclosure of Proposal Information--Department 
of the Interior.
1452.224-1 Privacy Act Notification.
1452.226-70 Indian Preference.
1452.226-71 Indian Preference Program.
1452.227-70 Appeals of Use or Exceptions.
1452.228-7 Insurance--Liability to Third Persons.
1452.228-70 Liability Insurance.
1452.228-71 Aircraft and General Public Liability Insurance.
1452.228-72 Liability for Loss or Damage--Department of the 
Interior.
1452.228-73 Liability for Loss or Damage (Property Interest).
1452.233-2 Service of Protest.
1452.236-70 Prohibition Against Use of Lead-based Paint.
1452.236-71 Additive or Deductive Items.
1452.237-70 Information Collection.
1452.237-71 Utilization of Woody Biomass.

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


1452.000   Scope of part.

    This part prescribes Department of the Interior provisions and 
clauses for use in acquisition.

[[Page 19859]]

Subpart 1452.2--Text of Provisions and Clauses


1452.200   Scope of subpart.

    This subpart sets forth the texts of all DIAR provisions and 
clauses. Consistent with the numbering scheme prescribed in FAR 52.101 
and the approach used in FAR Subpart 52.2, this subpart is arranged by 
subject matter, in the same order as, and keyed to, the parts of the 
DIAR in which provisions and clause requirements are addressed.


1452.203-70   Restrictions on Endorsements.

    As prescribed in 1403.570-3, insert the following clause:

RESTRICTION ON ENDORSEMENTS--DEPARTMENT OF THE INTERIOR (JUL 1996)

    The Contractor shall not refer to contracts awarded by the 
Department of the Interior in commercial advertising, as defined in 
FAR 31.205-1, in a manner which states or implies that the product 
or service provided is approved or endorsed by the Government, or is 
considered by the Government to be superior to other products or 
services. This restriction is intended to avoid the appearance of 
preference by the Government toward any product or service. The 
Contractor may request the Contracting Officer to make a 
determination as to the propriety of promotional material.


(End of clause)


1452.204-70   Release of Claims.

    As prescribed in 1404.804-70, insert the following clause:

RELEASE OF CLAIMS--DEPARTMENT OF THE INTERIOR (JUL 1996)

    After completion of work and prior to final payment, the 
Contractor shall furnish the Contracting Officer with a release of 
claims against the United States relating to this contract. The 
Release of Claims form (DI-137) shall be used for this purpose. The 
form provides for exception of specified claims from operation of 
the release.


(End of clause)


1452.215-70   Examination of Records by the Department of the Interior.

    As prescribed in 1415.209-70, insert the following clause:

EXAMINATION OF RECORDS BY THE DEPARTMENT OF THE INTERIOR (APR 1984)

    For purposes of the Examination of Records by the Comptroller 
General clause of this contract (FAR 52.215-1), the Secretary of the 
Interior, the Inspector General, and their duly authorized 
representative(s) from the Department of the Interior shall have the 
same access and examination rights as the Comptroller General of the 
United States.


(End of clause)


1452.215-71   Use and Disclosure of Proposal Information--Department of 
the Interior.

    As prescribed in 1415.207-70, insert the following provision:

USE AND DISCLOSURE OF PROPOSAL INFORMATION--DEPARTMENT OF THE INTERIOR 
(APR 1984)

    (a) Definitions. For the purposes of this provision and the 
Freedom of Information Act (5 U.S.C. 552), the following terms shall 
have the meaning set forth below:
    (1) ``Trade Secret'' means an unpatented, secret, commercially 
valuable plan, appliance, formula, or process, which is used for 
making, preparing, compounding, treating or processing articles or 
materials which are trade commodities.
    (2) ``Confidential commercial or financial information'' means 
any business information (other than trade secrets) which is exempt 
from the mandatory disclosure requirement of the Freedom of 
Information Act, 5 U.S.C. 552. Exemptions from mandatory disclosure 
which may be applicable to business information contained in 
proposals include exemption (4), which covers ``commercial and 
financial information obtained from a person and privileged or 
confidential,'' and exemption (9), which covers ``geological and 
geophysical information, including maps, concerning wells.''
    (b) If the offeror, or its subcontractor(s), believes that the 
proposal contains trade secrets or confidential commercial or 
financial information exempt from disclosure under the Freedom of 
Information Act, (5 U.S.C. 552), the cover page of each copy of the 
proposal shall be marked with the following legend:
    ``The information specifically identified on pages ------------ 
of this proposal constitutes trade secrets or confidential 
commercial and financial information which the offeror believes to 
be exempt from disclosure under the Freedom of Information Act. The 
offeror requests that this information not be disclosed to the 
public, except as may be required by law. The offeror also requests 
that this information not be used in whole or part by the government 
for any purpose other than to evaluate the proposal, except that if 
a contract is awarded to the offeror as a result of or in connection 
with the submission of the proposal, the Government shall have the 
right to use the information to the extent provided in the 
contract.''
    (c) The offeror shall also specifically identify trade secret 
information and confidential commercial and financial information on 
the pages of the proposal on which it appears and shall mark each 
such page with the following legend:
    ``This page contains trade secrets or confidential commercial 
and financial information which the offeror believes to be exempt 
from disclosure under the Freedom of Information Act and which is 
subject to the legend contained on the cover page of this 
proposal.''
    (d) Information in a proposal identified by an offeror as trade 
secret information or confidential commercial and financial 
information shall be used by the Government only for the purpose of 
evaluating the proposal, except that (i) if a contract is awarded to 
the offeror as a result of or in connection with submission of the 
proposal, the Government shall have the right to use the information 
as provided in the contract, and (ii) if the same information is 
obtained from another source without restriction it may be used 
without restriction.
    (e) If a request under the Freedom of Information Act seeks 
access to information in a proposal identified as trade secret 
information or confidential commercial and financial information, 
full consideration will be given to the offeror's view that the 
information constitutes trade secrets or confidential commercial or 
financial information. The offeror will also be promptly notified of 
the request and given an opportunity to provide additional evidence 
and argument in support of its position, unless administratively 
unfeasible to do so. If it is determined that information claimed by 
the offeror to be trade secret information or confidential 
commercial or financial information is not exempt from disclosure 
under the Freedom of Information Act, the offeror will be notified 
of this determination prior to disclosure of the information.
    (f) The Government assumes no liability for the disclosure or 
use of information contained in a proposal if not marked in 
accordance with paragraphs (b) and (c) of this provision. If a 
request under the Freedom of Information Act is made for information 
in a proposal not marked in accordance with paragraphs (b) and (c) 
of this provision, the offeror concerned shall be promptly notified 
of the request and given an opportunity to provide its position to 
the Government. However, failure of an offeror to mark information 
contained in a proposal as trade secret information or confidential 
commercial or financial information will be treated by the 
Government as evidence that the information is not exempt from 
disclosure under the Freedom of Information Act, absent a showing 
that the failure to mark was due to unusual or extenuating 
circumstances, such as a showing that the offeror had intended to 
mark, but that markings were omitted from the offeror's proposal due 
to clerical error.

(End of provision)


1452.224-1  Privacy Act Notification.

    (a) As prescribed in 1424.104, the clause at FAR 52.224-1, Privacy 
Act Notification, shall be modified before insertion into solicitations 
and contracts by--
    (1) Changing the title of the clause to read ``PRIVACY ACT 
NOTIFICATION (JUL 1996) (DEVIATION)''; and
    (2) Adding the following sentence to the end of the clause:
    ``Applicable Department of the Interior regulations concerning the 
Privacy Act are set forth in 43 CFR 2, Subpart D. The CFR is available 
for public inspection at the Departmental Library, Main Interior Bldg., 
1849 C St. NW, Washington DC, at each of the regional offices of 
bureaus of the Department and at many public libraries.''

[[Page 19860]]

    (b) As prescribed in FAR 52.103(a) and 52.107(f), the clause at FAR 
52.252-6, Authorized Deviation in Clauses, shall be inserted into 
solicitations and contracts containing the clause in paragraph (a) of 
this section.


1452.226-70  Indian Preference.

    As prescribed in 1426.7003(a), insert the following clause in 
solicitations issued and contracts awarded by the Bureau of Indian 
Affairs except those pursuant to Title I and to Indian Tribes and 
Indian Organizations under Title II of Public Law 93-638 (25 U.S.C. 450 
et seq. and 25 U.S.C. 455 et seq., respectively); a contracting 
activity other than the Bureau of Indian Affairs when the contract is 
entered into pursuant to an act specifically authorizing contracts with 
Indian organizations, and a contracting activity other than the Bureau 
of Indian Affairs when the work to be performed is specifically for the 
benefit of Indians and is in addition to any incidental benefits which 
might otherwise accrue to the general public.

INDIAN PREFERENCE--DEPARTMENT OF THE INTERIOR (APR 1984)

    (a) The Contractor agrees to give preferences to Indians who can 
perform the work required regardless of age (subject to existing 
laws and regulations), sex, religion, or tribal affiliation for 
training and employment opportunities under this contract and, to 
the extent feasible consistent with the efficient performance of 
this contract, training and employment preferences and opportunities 
shall be provided to Indians regardless of age (subject to existing 
laws and regulations), sex, religion, or tribal affiliation who are 
not fully qualified to perform under this contract. The Contractor 
also agrees to give preference to Indian organizations and Indian-
owned economic enterprises in the awarding of any subcontracts 
consistent with the efficient performance of this contract. The 
Contractor shall maintain such records as are necessary to indicate 
compliance with this paragraph.
    (b) In connection with the Indian employment preference 
requirements of this clause, the Contractor shall also provide 
opportunities for training incident to such employment. Such 
training shall include on-the-job, classroom, or apprenticeship 
training which is designed to increase the vocational effectiveness 
of an Indian employee.
    (c) If the Contractor is unable to fill its training and 
employment needs after giving full consideration to Indians as 
required by this clause, those needs may be satisfied by selection 
of persons other than Indians in accordance with the clause of this 
contract entitled ``Equal Opportunity.''
    (d) If no Indian organizations or Indian-owned economic 
enterprises are available for awarding of subcontracts in connection 
with the work performed under this contract, the Contractor agrees 
to comply with the provisions of this contract involving utilization 
of small business concerns, small business concerns owned and 
controlled by socially and economically disadvantaged individuals, 
or labor surplus area concerns.
    (e) As used in this clause:
    (1) ``Indian'' means a person who is a member of an Indian 
Tribe. If the Contractor has reason to doubt that a person seeking 
employment preference is an Indian, the contractor shall grant the 
preference but shall require the individual within thirty (30) days 
to provide evidence from the Tribe concerned that the person is a 
member of that Tribe.
    (2) ``Indian organization'' means the governing body of any 
Indian Tribe or entity established or recognized by such governing 
body in accordance with the Indian Financing Act of 1974 (88 Stat. 
77; 25 U.S.C. 1451); and
    (3) ``Indian-owned economic enterprise'' means any Indian-owned 
commercial, industrial, or business activity established or 
organized for the purpose of profit provided that such Indian 
ownership shall constitute not less than 51 percent of the 
enterprise.
    (4) ``Indian Tribe'' means an Indian Tribe, band, nation, or 
other organized group or community, including any Alaska Native 
village or regional or village corporation as defined in or 
established pursuant to the Alaska Native Claims Settlement Act (85 
Stat. 668; 43 U.S.C. 1601) which is recognized as eligible for the 
special programs and services provided by the United States to 
Indians because of their status as Indians.
    (f) The Contractor agrees to include the provisions of the 
clause including this paragraph (f) in each subcontract awarded 
under this contract.
    (g) In the event of noncompliance with this clause, the 
Contractor's right to proceed may be terminated in whole or in part 
by the Contracting Officer and the work completed in a manner 
determined by the Contracting Officer to be in the best interests of 
the Government.


(End of clause)


1452.226-71  Indian Preference Program.

    As prescribed in 1426.7003(b), insert the following clause in all 
solicitations and contracts awarded by the contracting activity that 
may exceed $50,000, contain the clause at 1452.226-70, and where it is 
determined by the Contracting Officer, prior to solicitation, that the 
work under the contract will be performed in whole or in part on or 
near an Indian reservation(s). The clause may also be included in 
solicitations issued and contracts awarded by a contracting activity 
not exceeding $50,000 that contain the clause at 1452.226-70 and which, 
in the opinion of the Contracting Officer, offer substantial 
opportunities for Indian employment, training, and subcontracting.

INDIAN PREFERENCE PROGRAM-- DEPARTMENT OF THE INTERIOR (APR 1984)

    (a) In addition to the requirements of the clause of this 
contract entitled ``Indian Preference--Department of the Interior,'' 
the Contractor agrees to establish and conduct an Indian preference 
program which will expand the opportunities for Indian organizations 
and Indian-owned economic enterprises to receive a preference in the 
awarding of subcontracts and which will expand opportunities for 
Indians to receive preference for training and employment in 
connection with the work to be performed under this contract. In 
this connection, the Contractor shall --
    (1) Designate a liaison officer who will:
    (i) Maintain liaison with the Government and Tribe(s) on Indian 
preference matters;
    (ii) Supervise compliance with the provisions of this clause; 
and
    (iii) Administer the Contractor's Indian preference program.
    (2) Advise its recruitment sources in writing and include a 
statement in all advertisements for employment that Indian 
applicants will be given preference in employment and training 
incident to such employment.
    (3) Not less than twenty (20) calendar days prior to 
commencement of work under this contract, post a written notice in 
the Tribal office of any reservations on which or near where the 
work under this contract is to be performed, which sets forth the 
Contractor's employment needs and related training opportunities. 
The notice shall include the approximate number and types of 
employees needed, the approximate dates of employment; the 
experience or special skills required for employment, if any; 
training opportunities available; and all other pertinent 
information necessary to advise prospective employees of any other 
employment requirements. The Contractor shall also request the 
Tribe(s) on or near whose reservation(s) the work is to be performed 
to provide assistance to the Contractor in filling its employment 
needs and training opportunities. The Contracting Officer will 
advise the Contractor of the name, location, and phone number of the 
Tribal officials to contact in regard to the posting of notices and 
requests for Tribal assistance.
    (4) Establish and conduct a subcontracting program which gives 
preference to Indian organizations and Indian-owned economic 
enterprises as subcontractors and suppliers under this contract. 
Consistent with the efficient performance of this contract, the 
Contractor shall give public notice of existing subcontracting 
opportunities by soliciting bids or proposals only from Indian 
organizations or Indian-owned economic enterprises. The Contractor 
shall request assistance and information on Indian firms qualified 
as suppliers or subcontractors from the Tribe(s) on or near whose 
reservation(s) the work under the contract is to be performed. The 
Contracting Officer will advise the Contractor of the name, 
location, and phone number of the Tribal officials to be contacted 
in regard to the request for assistance and information. Public 
notices and solicitations for existing subcontracting opportunities 
shall provide an equitable opportunity for Indian firms to submit 
bids or proposals by including--
    (i) A clear description of the supplies or services required 
including quantities,

[[Page 19861]]

specifications, and delivery schedules which facilitate the 
participation of Indian firms;
    (ii) A statement indicating the preference will be given to 
Indian organizations and Indian-owned economic enterprises in 
accordance with Section 7(b) of Public Law 93-638; (88 Stat. 2205; 
25 U.S.C. 450e(b));
    (iii) Definitions for the terms ``Indian organization'' and 
``Indian-owned economic enterprise'' as prescribed under the 
``Indian Preference--Department of the Interior'' clause of this 
contract;
    (iv) A representation to be completed by the bidder or offeror 
that it is an Indian organization or Indian-owned economic 
enterprise; and
    (v) A closing date for receipt of bids or proposals which 
provides sufficient time for preparation and submission of a bid or 
proposal. If after soliciting bids from Indian organizations and 
Indian-owned economic enterprises, no responsible bid is received, 
the Contractor shall comply with the requirements of paragraph (d) 
of the ``Indian Preference--Department of the Interior'' clause of 
this contract. If one or more responsible bids are received, award 
shall be made to the low responsible bidder if the bid price is 
determined to be reasonable. If the low responsive bid is determined 
to be unreasonable as to price, the Contractor shall attempt to 
negotiate a reasonable price and award a subcontract. If a 
reasonable price cannot be agreed upon, the Contractor shall comply 
with the requirements of paragraph (d) of the ``Indian Preference--
Department of the Interior'' clause of the contract.
    (5) Maintain written records under this contract which indicate:
    (i) The names and addresses of all Indians seeking employment 
for each employment position available under this contract;
    (ii) The number and types of positions filled by Indians and 
non-Indians, and the name, address and position of each Indian 
employed under this contract;
    (iii) For those positions where there are both Indian and non-
Indian applicants, and a non-Indian is selected for employment, the 
reason(s) why the Indian applicant was not selected;
    (iv) Actions taken to give preference to Indian organizations 
and Indian-owned economic enterprises for subcontracting 
opportunities which exist under this contract;
    (v) Reasons why preference was not given to Indian firms as 
subcontractors or suppliers for each requirement where it was 
determined by the Contractor that such preference would not be 
consistent with the efficient performance of the contract, and
    (vi) The names and addresses of all Indian organizations and 
Indian-owned economic enterprises contacted, and receiving 
subcontract awards under this contract.
    (6) The Contractor shall submit to the Contracting Officer for 
approval a semiannual report which summarizes the Contractor's 
Indian preference program and indicates the number and types of 
available positions filled and dollar amounts of all subcontracts 
awarded to Indian organizations and Indian-owned economic 
enterprises and all other firms.
    (7) Records maintained pursuant to this clause will be kept 
available for review by the Government until expiration of one (1) 
year after final payment under this contract, or for such longer 
period as may be required by any other clause of this contract or by 
applicable law or regulation.
    (b) For purpose of this clause, the following definitions of 
terms shall apply:
    (1) The terms ``Indian,'' ``Indian Tribe,'' ``Indian 
Organization, and ``Indian-owned economic enterprise'' are defined 
in the clause of this contract entitled ``Indian Preference.''
    (2) ``Indian reservation'' includes Indian reservations, public 
domain Indian allotments, former Indian reservations on Oklahoma, 
and land held by incorporated Native groups, regional corporations, 
and village corporations under the provisions of the Alaska Native 
Claims Settlement Act, (85 Stat. 688; 43 U.S.C. 1601 et seq.).
    (3) ``On or near an Indian Reservation'' means on a reservation 
or reservations or within that area surrounding an Indian 
reservation(s) where a person seeking employment could reasonably be 
expected to commute to and from in the course of a work day.
    (c) Nothing in the requirements of this clause shall be 
interpreted to preclude Indian Tribes from independently developing 
and enforcing their own Indian preference requirements. Such 
requirements must not hinder the Government's right to award 
contracts and to administer their provisions.
    (d) The Contractor agrees to include the provisions of this 
clause including this paragraph (d) in each subcontract awarded 
under this contract and to notify the Contracting Officer of such 
subcontracts.
    (e) In the event of noncompliance with this clause, the 
Contractor's right to proceed may be terminated in whole or in part 
by the Contracting Officer and the work completed in a manner 
determined by the Contracting Officer to be in the best interest of 
the Government.


(End of clause)


1452.227-70  Appeals of Use or Exceptions.

    As prescribed in 1427.303(d)(1), insert the following clause:

APPEALS OF USE OF EXCEPTIONS (JUL 1996)

    If the Contractor appeals the Contracting Officer determination 
to use one of the exceptions described in FAR 27.303(d)(1), such 
appeal shall be made by written notice specifically identifying the 
basis for the appeal within 30 working days from the receipt of the 
determination. Such appeal shall be mailed to the Associate 
Solicitor for General Law, U.S. Department of the Interior, 
Washington, DC 20240, who is designated as the appeals official.


(End of clause)


1452.228-7  Insurance--Liability to Third Persons.

    (a) As prescribed in 1428.311-2, the clause at FAR 52.228-7, 
Insurance--Liability to Third Persons, shall be modified before 
insertion into solicitations and contracts by:
    (1) changing the title of the clause to read: ``INSURANCE--
LIABILITY TO THIRD PERSONS (APR 1984) (DEVIATIONS)''; and
    (2) changing the first sentence in subparagraph (c)(2) of the 
clause to read:
    ``For certain liabilities (and expenses incidental to such 
liabilities) to third persons not compensated by insurance or otherwise 
but subject to the `Limitation of Cost' or `Limitation of Funds' clause 
of this contract.''
    (b) As prescribed in FAR 52.103(a) and 52.107(f), the clause at FAR 
52.252-6, Authorized Deviations in Clauses, shall be inserted into 
solicitations and contracts containing the clause in paragraph (a) of 
this section.


1452.228-70  Liability Insurance.

    As prescribed in 1428.301, insert the following clause:

LIABILITY INSURANCE--DEPARTMENT OF THE INTERIOR (JUL 1996)

    (a) The Contractor shall procure and maintain during the term of 
this contract and any extension thereof liability insurance in form 
satisfactory to the Contracting Officer by an insurance company 
which is acceptable to the Contracting Officer. The named insured 
parties under the policy shall be the Contractor and the United 
States of America. The amounts of the insurance shall be not less 
than as follows:

$------each person*
$------each occurrence*
$------property damage*
    (b) Each policy shall have a certificate evidencing the 
insurance coverage. The insurance company shall provide an 
endorsement to notify the Contracting Officer 30 days prior to the 
effective date of cancellation or termination of the policy or 
certificate; or modification of the policy or certificate which may 
adversely affect the interest of the Government in such insurance. 
The certificate shall identify the contract number, the name and 
address of the Contracting Officer, as well as the insured, the 
policy number and a brief description of contract services to be 
performed. The contractor shall furnish the Contracting Officer with 
a copy of an acceptable insurance certificate prior to beginning the 
work.

*These amounts to be set by the Contracting Officer.


(End of clause)


1452.228-71  Aircraft and General Public Liability Insurance.

    As prescribed in 1428.306-70(c)(1), insert the following clause:

AIRCRAFT AND GENERAL PUBLIC LIABILITY INSURANCE DEPARTMENT OF THE 
INTERIOR (MAR 1989)

    (a) The Contractor, at the Contractor's expense, agrees to 
maintain, during the continuance of this contract, aircraft 
liability and general public liability insurance with limits of 
liability for:

[[Page 19862]]

    (1) Bodily injury to or death of aircraft passengers of not less 
than $75,000 for any one passenger and a limit for each occurrence 
in any one aircraft of at least an amount equal to the sum produced 
by multiplying $75,000 by 75 percent of the total number of 
passenger seats installed in the aircraft;
    (2) Bodily injury to or death of persons (excluding passengers) 
of not less than $75,000 for any one person in any one occurrence 
and $300,000 for occurrence; and
    (3) Property damage of not less than $100,000 for each 
occurrence; or
    (4) a single limit of liability for each occurrence equal to or 
greater than the combined required minimums set forth in paragraphs 
(a)(1) through (3) of this clause.
    (b) The Contractor also agrees to maintain worker's compensation 
and other legally required insurance with respect to the 
Contractor's own employees and agents.


(End of clause)


1452.228-72  Liability for Loss or Damage--Department of the Interior.

    As prescribed in 1428.306-70(c)(2), insert the following clause:

LIABILITY FOR LOSS OR DAMAGE--DEPARTMENT OF THE INTERIOR (APR 1984)

    (a) The Contractor shall indemnify and hold the Government 
harmless from any and all loss or damage to the aircraft furnished 
under this contract except as provided in paragraph (d) of this 
clause. For the purpose of fulfilling its obligation under this 
clause, the Contractor shall procure and maintain during the term of 
this contract, and any extensions thereof, full insurance acceptable 
to the Contracting Officer. The Contractor's insurance coverage 
shall apply to pilots furnished by the Government who operate the 
aircraft. The contractor may request a list of Government pilots by 
name and qualification who are potential pilots.
    (b) Prior to the commencement of work hereunder, the Contractor 
shall furnish to the Contracting Officer a copy of the insurance 
policy or policies or a certificate of insurance issued by the 
underwriter(s) showing that the coverage required by this clause has 
been obtained.
    (c) Each policy or certificate evidencing the insurance shall 
contain an endorsement which provides that the insurance company 
will notify the Contracting Officer 30 days prior to the effective 
date of any cancellation or termination of any policy or certificate 
or any modification of a policy or certificate which adversely 
affects the interests of the Government in such insurance. The 
notice shall be sent by registered mail and shall identify this 
contract, the name and address of the contracting office, the 
policy, and the insured.
    (d) If the aircraft is damaged or destroyed while in the custody 
and control of the Government, the Government will reimburse the 
Contractor for the deductible stipulated in the insurance coverage 
(if any) as follows:
    (1) In-Motion Accidents--Up to 5 percent of the current insured 
value of the aircraft stated in the policy, or $10,000, whichever is 
less.
    (2) Not In-Motion Accidents--Up to $250 per accident. Such 
reimbursement shall not be made, however, for loss or damage to the 
aircraft resulting from:
    (i) Normal wear and tear,
    (ii) Negligence or fault in maintenance of the aircraft by the 
Contractor, or
    (iii) A defect in construction of the aircraft or a component 
thereof.
    (e) If damage to the aircraft is established to be the fault of 
the Government, rental payments to the Contractor during the repair 
period will be made as set forth elsewhere in this contract. The 
Government may, at its option, make necessary repairs or return the 
aircraft to the Contractor for repair. In the event the aircraft is 
lost, destroyed, or damaged so extensively as to be beyond repair, 
no rental payment will be made to the Contractor thereafter.
    (f) Any failure to agree as to the responsibility of the 
Government or the Contractor under this clause shall, after a final 
finding and determination by the Contracting Officer, be considered 
a dispute within the meaning of the ``Disputes'' clause of this 
contract.


(End of clause)


1452.228-73  Liability for Loss or Damage (Property Interest).

    As prescribed in 1428.311-2(c), insert the following clause:

LIABILITY FOR LOSS OR DAMAGE (PROPERTY INTEREST)--DEPARTMENT OF THE 
INTERIOR (APR 1984)

    (a) The Government assumes all risk and liability for damage to 
or loss of the aircraft for the term of this contract, while the 
aircraft is in the Government's possession, except for;
    (1) Normal wear and tear to the aircraft, or
    (2) Loss which occurs as a result of negligence or fault in 
maintenance of the aircraft by the Contractor, or
    (3) Loss resulting from a latent defect in the construction of 
the aircraft or a component thereof.
    (b) In the event of damage to the aircraft, the Government may, 
at its option, make the necessary repairs with its own facilities, 
or by contract, or pay the Contractor the reasonable cost of repair 
of the aircraft. if damage to the aircraft is established to be the 
fault of the Government, rental payments to the Contractor during 
the repair period will be made as set forth elsewhere in this 
contract.
    (c) In the event the aircraft is lost, destroyed, or damaged so 
extensively as to be beyond repair, no rental payment will be made 
to the Contractor thereafter, but the Government will pay to the 
Contractor a sum equal to the fair market value of the aircraft just 
prior to such loss, destruction, or extensive damage, less the 
salvage value of the aircraft.
    (d) The Contractor certifies that the contract price does not 
include any cost attributable to insurance or to any reserve fund it 
has established to protect its interests in or use of the aircraft, 
regardless of whether or not the insurance coverage applies for the 
period during which the Government has possession of the aircraft. 
If, in the event of loss or damage to the aircraft, the Contractor 
receives compensation for such loss or damage, in any form, from any 
source, the amount of such compensation shall be credited to the 
Government in determining the amount of the Government's liability 
under this clause; except that this shall not apply to proceeds of 
insurance received solely as an advance of insurance pending 
determination of Government liability, or for an increment of value 
of the aircraft beyond the value for which the Government is 
responsible.
    (e) In the event of loss or damage, the Government shall be 
subrogated to all rights of recovery by the Contractor against third 
parties for such loss or damage and such rights shall be immediately 
assigned to the Government. Except as the Contracting Officer may 
permit in writing, the Contractor shall neither release nor 
discharge any third party from liability for such loss or damage nor 
otherwise compromise or adversely affect the Government's 
subrogation or other rights hereunder. The Contractor shall 
cooperate with the Government in any suit or action undertaken by 
the Government against any such third party.
    (f) Any failure to agree as to the responsibility of the 
Government or the Contractor under this clause shall, after a final 
finding and determination by the Contracting Officer, be considered 
a dispute within the meaning of the ``Disputes'' clause of this 
contract.


(End of clause)


1452.233-2  Service of Protest.

    As prescribed in 1433.106, the provision at FAR 52.233-2, Service 
of Protest, shall be modified before insertion into solicitations and 
contracts by changing the title of the provision to read: ``SERVICE OF 
PROTEST DEPARTMENT OF THE INTERIOR (JUL 1996) (DEVIATION)''; and adding 
the following sentence to the end of the provision:
    ``(c) A copy of the protest served on the Contracting Officer shall 
be simultaneously furnished by the protester to the Department of the 
Interior Assistant Solicitor, Acquisitions and Intellectual Property, 
1849 C Street, NW., Room 6511, Washington, DC 20240.''


1452.236-70  Prohibition Against Use of Lead-based Paint.

    As prescribed in 1436.570(b), insert the following clause:

PROHIBITION AGAINST USE OF LEAD-BASED PAINT--DEPARTMENT OF THE INTERIOR 
(JUL 1996)

    Paint containing more than .06 percent by weight of lead in 
paint, or the equivalent measure of lead in the dried film of paint 
already applied, shall not be used in the construction or 
rehabilitation of residential structures under this contract or any 
resulting subcontracts.


(End of clause)


1452.236-71  Additive or Deductive Items.

    As prescribed in 1436.571, insert the following provision:

[[Page 19863]]

ADDITIVE OR DEDUCTIVE ITEMS--DEPARTMENT OF THE INTERIOR (JUL 1996)

    So that the Government may obtain the most desirable features of 
work within the limit of its funds available at time of bid 
evaluation, award may be made to the bidder having the lowest total 
of the base bid and a combination of additive and deductive items. 
All bids shall be evaluated on the basis of the same additive and 
deductive bid items using the order of priority of the items listed 
in the schedule.


(End of provision)


1452.237-70  Information Collection.

    As prescribed in 1437.7102, insert the following clause:

INFORMATION COLLECTION--DEPARTMENT OF THE INTERIOR (JUL 1996)

    If performance of this contract requires the contractor to 
collect information on identical items from ten or more public 
respondents, no action shall be taken or funds expended in the 
solicitation or collection of such information until the contractor 
has received from the Contracting Officer written notification that 
approval has been obtained from the Office of Management and Budget 
(OMB) pursuant to the Paperwork Reduction Act of 1980. The 
Contractor agrees to provide all information requested by the 
Contracting Officer which is necessary to obtain approval from OMB.


(End of clause)


1452.237-71  Utilization of Woody Biomass.

    As prescribed in Sec.  1437.7202, insert the following clause:

UTILIZATION OF WOODY BIOMASS (MAY 2005)

    (a) The contractor may remove and utilize woody biomass, if:
    (1) Project work is progressing as scheduled; and
    (2) Removal is completed before contract expiration.
    (b) To execute this option, the contractor must submit a written 
request to the Government.
    (c) Following receipt of the written request, and if 
appropriate, the Government and the contractor will negotiate and 
execute a separate timber/vegetative sales contract. Payment under 
the timber/vegetative sales contract must be at a price equal to or 
greater than the appraised value of the woody biomass. The 
contractor must make any appropriate payment specified in the 
related timber/vegetative sales contract before removal may be 
authorized.
    (d) If required by law, regulation or Bureau policy, the 
Government will prepare a timber/vegetative sales notice and/or 
prospectus, including volume estimates, appraised value and any 
appropriate special provisions.
    (e) The contractor must treat any woody biomass not removed in 
accordance with the specifications in the service contract.
    (f) The sales contract and service contract are severable; 
default or termination under either contract does not remove the 
contractor from payment or performance obligations under the other 
contract.
    (g) Definitions:
    Timber/vegetative sales contract and/or notice means the agency-
specific authorized contract instrument for the sale, barter, 
exchange, billing or other compensation for the payment, removal, 
and/or transportation of woody biomass material.
    Woody biomass means the trees and woody plants, including limbs, 
tops, needles, leaves, and other woody parts, grown in a forest, 
woodland, or rangeland environment, that are the by-products of 
management, restoration and/or hazardous fuel reduction treatment.

[FR Doc. 2010-7967 Filed 4-14-10; 8:45 am]
BILLING CODE P