[Federal Register Volume 79, Number 136 (Wednesday, July 16, 2014)]
[Proposed Rules]
[Pages 41511-41530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15695]


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DEPARTMENT OF EDUCATION

48 CFR Parts 3401, 3403, 3404, 3405, 3406, 3407, 3408, 3409, 3411, 
3413, 3414, 3415, 3416, 3417, 3419, 3422, 3425, 3427, 3428, 3430, 
3431, 3432, 3433, 3434, 3437, 3439, 3442, 3444, 3447, 3448, and 
3452

[Docket ID ED-2013-OCFO-0078]
RIN 1890-AA18


Department of Education Acquisition Regulation

AGENCY: Office of the Chief Financial Officer, Department of Education.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Secretary proposes to modify the Department of Education 
Acquisition Regulation (EDAR) in order to update it to accurately 
implement the current Federal Acquisition Regulation (FAR) and 
Department policies.

DATES: The Department must receive your comments on or before September 
15, 2014.

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ADDRESSES: Submit your comments through the Federal eRulemaking Portal 
or via postal mail, commercial delivery, or hand delivery. We will not 
accept comments submitted by fax or by email or those submitted after 
the comment period. To ensure that we do not receive duplicate copies, 
please submit your comments only once. In addition, please include the 
Docket ID at the top of your comments.
     Federal eRulemaking Portal: Go to www.regulations.gov to 
submit your comments electronically. Information on using 
Regulations.gov, including instructions for accessing agency documents, 
submitting comments, and viewing the docket, is available on the site 
under ``Are you new to the site?''
     Postal Mail, Commercial Delivery, or Hand Delivery: If you 
mail or deliver your comments about these proposed regulations, address 
them to Roscoe Price, U.S. Department of Education, 400 Maryland Avenue 
SW., Room 7172, PCP, Washington, DC 20202-4200.

    Privacy Note: The Department's policy is to make all comments 
received from members of the public available for public viewing in 
their entirety on the Federal eRulemaking Portal at 
www.regulations.gov. Therefore, commenters should be careful to 
include in their comments only information that they wish to make 
publicly available.


FOR FURTHER INFORMATION CONTACT: Roscoe Price, U.S. Department of 
Education, 400 Maryland Avenue SW., Room 7172, PCP, Washington, DC 
20202-4200. Telephone: (202) 245-6222 or by email: [email protected].
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: 

Invitation to Comment

    The Department invites you to submit comments regarding these 
proposed regulations. To ensure that your comments have maximum effect 
in developing the final regulations, the Department urges you to 
identify clearly the specific section or sections of the proposed 
regulations that each of your comments addresses and to arrange your 
comments in the same order as the proposed regulations.
    The Department invites you to assist us in complying with the 
specific requirements of Executive Order 12866 and 13563 and their 
overall requirement of reducing regulatory burden that might result 
from these proposed regulations. Please let us know of any further ways 
we could reduce potential costs or increase potential benefits while 
preserving the effective and efficient administration of the 
Department's programs and activities.
    During and after the comment period, you may inspect all public 
comments about these proposed regulations by accessing Regulations.gov. 
You may also inspect the comments in person in Room 7172, Potomac 
Center Plaza, 550 12th Street SW., Washington, DC, between 8:30 a.m. 
and 4:00 p.m., Washington, DC time, Monday through Friday of each week 
except Federal holidays. Please contact the person listed under FOR 
FURTHER INFORMATION CONTACT.
    Assistance to Individuals With Disabilities in Reviewing the 
Rulemaking Record: On request we will provide an appropriate 
accommodation or auxiliary aid to any individual with a disability who 
needs assistance to review the comments or other documents in the 
public rulemaking record for these proposed regulations. If you want to 
schedule an appointment for this type of accommodation or auxiliary 
aid, please contact the person listed under FOR FURTHER INFORMATION 
CONTACT.

Background

    The uniform regulation for the procurement of supplies and services 
by Federal Departments and Agencies, the FAR, was promulgated on 
September 19, 1983 (48 FR 42102). The FAR is codified in title 48, 
chapter 1, of the Code of Federal Regulations. The Department 
promulgated the EDAR to implement the FAR on May 23, 1988 (53 FR 
19119).
    The EDAR (title 48, chapter 34 of the Code of Federal Regulations) 
is prescribed under 5 U.S.C. 301 and the general authorization in FAR 
1.301. The last revision of the EDAR was published in the Federal 
Register on March 8, 2011 (76 FR 12796).

Significant Proposed Regulations

    We discuss substantive issues under the sections of the proposed 
regulations to which they pertain. Generally, we do not address 
proposed regulatory changes that are technical or otherwise minor in 
effect.
    These proposed regulations would amend the EDAR as follows:

SUBCHAPTER A--GENERAL

PART 3401--ED ACQUISITION REGULATION SYSTEM

    FAR: FAR Part 1 (Federal Acquisition Regulations System) sets 
forth the purpose, authority, and structure of the FAR, authorizes 
agency FAR supplements and deviations from the FAR, and discusses 
career development, contracting authority, and responsibilities.
    Current Regulations: The current EDAR contains delegations for 
deviation approvals that do not reflect optimal business operations. 
The current regulations do not correctly identify the individuals 
responsible for approving delegations and do not set forth 
procedures for obtaining approval of a deviation. The current 
regulations reflect numbering that has been changed by recent 
changes to the FAR.
    Proposed Regulations: In subpart 3401.4, ``Deviations,'' the 
proposed regulations would revise sections 3401.403 (Individual 
deviations) and 3401.404 (Class deviations) to designate the Head of 
the Contracting Activity (HCA) as the approving official for 
individual deviations and the Senior Procurement Executive (SPE) as 
the approving official for class deviations. The proposed 
regulations would also add section 3401.470 (Procedures) to provide 
procedures for requesting deviations from the FAR or the EDAR.
    In subpart 3401.6, ``Career Development, Contracting Authority, 
and Responsibilities,'' the proposed regulations would redesignate 
section 3401.670 as section 3401.604-70 and would further 
redesignate sections 3401.670-1, 3401.670-2, and 3401.670-3 as 
sections 3401.604-70.1, 3401.604-70.2, and 3401.604-70.3, 
respectively, to be consistent with the new FAR 1.604.
    Reasons: On March 16, 2011, section 1.604 was added to the FAR. 
This proposed change would update the EDAR to be consistent with the 
FAR numbering scheme. Also, the proposed change would identify the 
correct position for approving individual and class deviations as 
well as establish the procedures required for approval of deviations 
from the FAR or the EDAR.

PART 3403--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    FAR: FAR Part 3 (Improper Business Practices and Personal 
Conflicts of Interest) regulates standards of conduct, gratuities to 
Government personnel, reports of suspected antitrust violations, 
contingent fees, and contracts with Government employees or 
organizations owned or controlled by them.
    Current Regulations: The current EDAR requires Department 
personnel to report violations of the gratuities clause, antitrust 
violations, and misrepresentation or violation of the covenant 
against contingent fees.
    Proposed Regulations: The Department is proposing to add section 
3403.104-7 to identify the SPE as the agency head for the purposes 
of FAR 3.104-7(d)(2)(ii)(B) and to add section 3403.204, revise 
section 3403.602, and add sections 3403.7 and 3403.9 to identify the 
SPE as the agency head's designee for the purposes of FAR 3.204, 
3.602, 3.704, 3.705, 3.905, and 3.906.
    Reasons: The proposed revisions identify the official delegated 
the authority to provide exceptions and sign determinations 
identified in FAR 3.1, 3.2, 3.6, 3.7, and 3.9.

PART 3404--ADMINISTRATIVE MATTERS

    FAR: FAR Part 4 (Administrative Matters) sets forth requirements 
for contract execution, documentation, retention, and reporting.

[[Page 41513]]

    Current Regulations: The current EDAR does not address this FAR 
part.
    Proposed Regulations: The Department proposes to add PART 3404, 
``ADMINISTRATIVE MATTERS,'' to SUBCHAPTER A to consist of subpart 
3404.7 and section 3404.770 to prescribe the use of clause 3452.204-
70, ``Maintenance and Retention of Government-Owned/Contractor-Held 
Federal Records'' in all solicitations and contracts where 
contractors are in possession of Federal records.
    Reasons: This addition is necessary to provide contractors 
guidance on the handling of Federal records, often containing 
personally identifiable information, both during and after 
performance of contracts.

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

PART 3405--PUBLICIZING CONTRACT ACTIONS

    FAR: FAR Part 5 (Publicizing Contract Actions) sets forth 
requirements for publicizing actions in each phase of the 
acquisition process and the mandatory time required for actions to 
be published prior to action being taken by the Government.
    Current Regulations: The current EDAR sets forth specific 
statutory authorities provided to Federal Student Aid (FSA).
    Proposed Regulations: The Department is proposing to add subpart 
3405.4 to identify the SPE as the agency head's designee for the 
purposes of FAR 5.404-1(a) and (b).
    Reasons: The proposed revision identifies the official 
responsible for releasing long range estimates for the Department.

PART 3406--COMPETITION REQUIREMENTS

    FAR: FAR Part 6 (Competition Requirements) regulates how 
agencies compete various contract actions.
    Current Regulations: The current EDAR states that this part of 
the FAR does not apply to modular contracting performed by the 
Performance Based Organization (PBO) as a result of statutorily 
provided authority.
    Proposed Regulations: The proposed changes would add subpart 
3406.2 and section 3406.302-1 to identify the HCA as the agency head 
for the purposes of FAR 6.202 and 6.302-1(b)(4); would add section 
3406.302-2 to identify the SPE as the agency head's designee for the 
purposes of FAR 6.302-2(d)(2); would add section 3406.302-7 to 
identify the Secretary as having the exclusive authority to approve 
all public interest determinations for the purposes of FAR 6.302-
7(c); and would revise section 3406.501 to designate Competition 
Advocates for each contracting activity.
    Reasons: The proposed change would identify the agency head for 
the purposes of FAR 6.2 and 6.3 and the agency head's designee for 
the purposes of FAR 6.3, except to reserve public interest 
determinations for the Secretary of Education, and would identify 
the Competition Advocates for each Contracting Activity mandated in 
FAR 6.5.

PART 3407--ACQUISITION PLANNING

    FAR: FAR Part 7 (Acquisition Planning) sets forth requirements 
for presolicitation activities that must be addressed by the 
Government, identifies analysis of requirements for contractor 
versus Government performance, and identifies how to determine if 
work is inherently Governmental.
    Current Regulations: The current EDAR does not address this part 
of the FAR.
    Proposed Regulations: The Department proposes to add PART 3407, 
``ACQUISITIION PLANNING,'' to SUBCHAPTER B to consist of subpart 
3407.1 to identify the SPE as the agency head's designee for the 
purposes of FAR 7.103.
    Reasons: The proposed changes to the regulations would add the 
authority for promulgating the regulation and would clearly identify 
the appropriate official for making determinations under FAR 7.1.

PART 3408--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    FAR: FAR Part 8 (Required Sources of Supplies and Services) 
mandates certain sources and details how agencies must use those 
sources.
    Current Regulations: The current EDAR requires a printing clause 
in subpart 3408.8 (Acquisition of Printing and Related Supplies) and 
addresses paperwork reduction in PART 3427.
    Proposed Regulations: The proposed changes would revise section 
3408.870 to clarify when the printing clause at 3452.208-71 is 
required.
    Reasons: The proposed changes would update the EDAR to reflect 
mandatory use of the printing clause at 3452.208-71 in all 
solicitations and contracts where printing is anticipated.

PART 3409--CONTRACTOR QUALIFICATIONS

    FAR: FAR Part 9 (Contractor Qualifications) prescribes policies, 
standards, and procedures for determining whether prospective 
contractors are responsible.
    Current Regulations: The current EDAR identifies procedures for 
Debarment and Suspension and prescribes procedures for identifying 
conflicts of interest.
    Proposed Regulations: The Department proposes to add subpart 
3409.2 and amend subparts 3409.4 and 3409.5 by adding sections 
3409.405, 3409.405-1, 3409.405-2, 3409.406-1, 3409.407-1, and 
3409.503, respectively, to identify the SPE as the agency head's 
designee for the purposes of FAR 9.202(a)(1), 9.206-1(b), 9.405(a), 
9.405(d)(3), 9.405-1, 9.405-2, 9.406-1(c), 8.407-1(d), and 9.503.
    Reasons: The proposed changes would update the EDAR to identify 
the SPE as the agency head's designee for the purposes of FAR 
9.202(a)(1), 9.206-1(b), 9.405(a), 9.405(d)(3), 9.405-1, 9.405-2, 
9.406-1(c), 8.407-1(d), and 9.503.

PART 3411--DESCRIBING AGENCY NEEDS

    FAR: FAR Part 11 (Describing Agency Needs) includes sections on 
developing requirements documents, performance schedules, 
approaching liquidated damages, and variations in quantity.
    Current Regulations: The current EDAR does not address this part 
of the FAR.
    Proposed Regulations: The Department proposes to add PART 3411, 
``DESCRIBING AGENCY NEEDS,'' to SUBCHAPTER B to consist of subpart 
3411.1 and 3411.5. The proposed addition would identify the HCA as 
the agency head for the purposes of FAR 11.103(a) and 11.501(d).
    Reasons: The proposed changes to the regulations would update 
the EDAR to identify the appropriate official for making 
determinations under FAR 11.103(a) and 11.501(d).

SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES

PART 3413--SIMPLIFIED ACQUISITION PROCEDURES

    FAR: FAR Part 13 (Simplified Acquisition Procedures) allows and 
describes streamlined ways of purchasing goods and services below 
the simplified acquisition threshold.
    Current Regulations: The EDAR currently sets out FSA's authority 
to use simplified acquisition methods for commercial items at any 
value and noncommercial items up to $1 million.
    Proposed Regulations: The Department proposes to add subpart 
3413.2 and amend subpart 3413.3 to identify the SPE as the agency 
head for the purposes of FAR 13.201(g)(1) and 13.305-3(a).
    Reasons: The proposed changes to the regulations would clearly 
identify the appropriate official for making determinations under 
FAR 13.201(g)(1) and 13.305-3(a).

PART 3414--SEALED BIDDING

    FAR: FAR Part 14 (Sealed Bidding) describes the rules and 
requirements for using sealed bidding as a method of acquisition.
    Current Regulations: The current EDAR identifies the HCA as the 
official authorized to make determinations under FAR 14.407-3.
    Proposed Regulations: The Department proposes to revise subpart 
3414.4 to identify the HCA as the agency head for the purposes of 
FAR 14.404-1(c), 14.407-3, and 14.407-4.
    Reasons: The proposed changes to the regulations would clearly 
identify the appropriate official for making determinations under 
FAR 14.404-1(c), 14.407-3, and 14.407-4.

PART 3415--CONTRACTING BY NEGOTIATION

    FAR: FAR Part 15 (Contracting by Negotiation) sets forth 
procedures for acquiring goods and services through negotiated 
procurement.
    Current Regulations: The current EDAR contains the process for 
submitting unsolicited proposals and implements the use of a two-
phase procurement.
    Proposed Regulations: The Department proposes to add section 
3415.204 to identify the SPE as the agency head's designee for the 
purposes of FAR 15.204(e).
    Reasons: The proposed change to the regulation would clearly 
identify the appropriate official for making determinations under 
FAR 15.204(e).

PART 3416--TYPES OF CONTRACTS

    FAR: FAR Part 16 (Types of Contracts) describes the various 
contract types and

[[Page 41514]]

consideration in determining the type of contract to use for a 
particular acquisition.
    Current Regulations: The current EDAR incorrectly states that an 
award term that is earned is affected by unilateral modification.
    Proposed Regulations: The Department proposes to revise section 
3416.470(f)(2) to require bilateral contract modification to extend 
a contract for an earned award term period.
    Reasons: This revision of section 3416.470(f)(2) would correct 
the error in the current EDAR.

PART 3417--SPECIAL CONTRACTING METHODS

    FAR: FAR Part 17 (Special Contracting Methods) includes 
requirements for options and interagency acquisitions under the 
Economy Act.
    Current Regulations: The current EDAR includes requirements for 
options and the use of Modular Contracting.
    Proposed Regulations: The Department proposes to add section 
3417.208 to prescribe the appropriate use of clauses 3452.17-70, 
``Evaluation of Options to Include Award Terms,'' and 3452.17-71, 
``Option to Extend the Term of an Award Term Contract.'' 
Additionally, the Department proposes to add section 3417.104 and 
subpart 3417.6 to identify the SPE and Assistant Secretary for the 
Office of Management as the agency head for the purposes of FAR 
17.104(b) and 17.602, respectively.
    Reasons: The changes are necessary to prescribe when to include 
specific option-related clauses regarding Award Term Contracting and 
to clearly identify the appropriate official for making 
determinations under FAR 17.104(b) and 17.602.

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

PART 3419--SMALL BUSINESS PROGRAMS

    FAR: FAR Part 19 (Small Business Programs) describes 
requirements for and availability of contracting preference programs 
for small businesses.
    Current Regulations: The current regulations identify regulatory 
flexibilities afforded to FSA.
    Proposed Regulations: The Department proposes to add section 
3419.505 and subpart 3419.8 to include section 3419.810 to identify 
the SPE as the agency head for the purposes of FAR 19.505 and 
19.810, respectively. The Department proposes to add section 
3419.812 in subpart 3419.8 to identify the HCA as the agency head 
for the purposes of FAR 19.812(d). Additionally, the Department 
proposes to add section 3419.70 to prescribe when to include clause 
3452.219-70 in commercial item procurements.
    Reasons: The changes would clearly identify the appropriate 
official for making determinations under FAR 19.5 and 19.8 and 
include a clause to provide favorable price evaluation treatment for 
socioeconomic subcategories for which the Department has 
historically failed to meet prime award goals.

PART 3422--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

    FAR: FAR Part 22 (Application of Labor Laws to Government 
Acquisitions) describes various laws, policies, and prohibitions 
governing Federal acquisition.
    Current Regulations: The current regulations explain that the 
five-year limitation in the Service Contract Act of 1965, as amended 
(Service Contract Act), applies to each period of the contract 
individually, not to the cumulative period of base and option years, 
and that accordingly no Department contract will have a base or 
option period longer than five years.
    Proposed Regulations: The Department proposes to amend PART 
3422, ``APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS,'' to 
add section 3422.406-8 to identify the SPE as the agency head's 
designee for the purposes of FAR 22.406-8(d) and to add sections 
3422.604-2, 3422.803, 3422.807, 3422.1305, 3422.1310, 3422.1403, and 
3422.1408 to identify the SPE as the agency head for the purposes of 
FAR 22.604-2(b)(1), 22.803(c), 22.807(a)(1), 22.1305, 
22.1310(a)(1)(ii) and (a)(2), 22.1403, and 22.1408, respectively. 
The Department proposes to add section 3422.302 to identify the HCA 
as the agency head for the purposes of FAR 22.302(c) and to add 
section 3422.406-9 to identify the HCA as the authority to suspend 
contract payments pursuant to FAR 22.406-9(b). Additionally, the 
Department proposes to add section 3422.406-8 to identify the Chief 
of the Contracting Office as the responsible party for conducting 
labor standards investigations as prescribed in FAR 22.406-8(a).
    Reasons: The proposed changes to the regulations would clearly 
identify the appropriate official for making determinations or 
decisions under FAR 22.302(c), 22.406-8(a), 22.406-8(d), 22.406-
9(b), 22.604-2(b)(1), 22.803(c), 22.807(a)(1), 22.1305, 22.1310, 
22.1403, and 22.1408.

PART 3425--FOREIGN ACQUISITION

    FAR: FAR Part 25 (Foreign Acquisition) implements the Buy 
American Act.
    Current Regulations: The current EDAR designates the HCA as the 
approving official for determinations relating to the Buy American 
Act.
    Proposed Regulations: The Department proposes to amend PART 
3425, ``FOREIGN ACQUISITIONS,'' to add sections 3425.103, 3425.105, 
and 3425.202 to delegate authority to the HCA make the 
determinations prescribed in FAR 25.103(a), 25.105(a)(1) and 
25.202(a)(1). The Department proposes to add section 3425.204 to 
identify the HCA as the agency head for the purposes of FAR 
25.204(b) and to add section 3425.1001 to identify the SPE as the 
agency head for the purposes of FAR 25.1001(a)(2)(iii).
    Reasons: The Department has previously identified the approving 
official for one of the subparts in FAR 25; this change would 
clearly identify the appropriate official for making determinations 
under FAR 25.103(a), 25.105(a)(1), 25.202(a)(1), 25.204(b), and 
25.1001(a)(2)(iii).

SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS

PART 3427--PATENTS, DATA, AND COPYRIGHTS

    FAR: FAR Part 27 (Patents, Data, and Copyrights) regulates 
patents, copyrights, rights in data, and foreign license and 
technical agreements under Federal contracts.
    Current Regulations: The current EDAR includes in this part 
prescriptions for clauses on publication and publicity, advertising 
of awards, and paperwork reduction.
    Proposed Regulations: The Department proposes to add subpart 
3427.3 consisting of section 3427.303 to identify the SPE as the 
agency head's designee for the purposes of FAR 27.303.
    Reasons: The proposed change to the regulation would clearly 
identify the appropriate official for making determinations under 
FAR 27.303.

PART 3428--BONDS AND INSURANCE

    FAR: FAR Part 28 (Bonds and Insurance) regulates the appropriate 
use and requirements for bonds and insurance under Federal 
contracts.
    Current Regulations: The current EDAR includes in this part a 
prescription for a clause specifying when insurance is mandatory.
    Proposed Regulations: The Department proposes to add subpart 
3428.1 (Bonds and Other Financial Protections) to include section 
3428.101-1 and subpart 3428.2 to include section 3428.203-7 to 
identify the SPE as the agency head's designee for the purposes of 
FAR 28.101-1(c) and 28.203-7. The Department proposes to add section 
3428.106-6 to identify the HCA as the agency head's designee for the 
purposes of FAR 28.106-6(c). The Department proposes to add section 
3428.203 to identify the Assistant Inspector General for 
Investigations as the appropriate official to receive evidence of 
possible criminal or fraudulent activities by an individual surety.
    Reasons: The proposed change to the regulations would clearly 
identify the appropriate official for making determinations under 
FAR 28.101-1(c), 28.106-6(c), and 28.203-7 and to identify the 
official for receiving evidence under FAR 28.203.

PART 3430--COST ACCOUNTING STANDARDS ADMINISTRATION

    FAR: FAR Part 30 (Cost Accounting Standards Administration) 
includes sections on the administration of contractor financial 
systems and responsibility for disclosure.
    Current Regulations: The current EDAR does not address this part 
of the FAR.
    Proposed Regulations: The Department proposes to add PART 3430, 
``COST ACCOUNTING STANDARDS ADMINISTRATION,'' to include section 
3430.201-5 to identify the SPE as the head of the agency for the 
purposes of FAR 30.201-5(a) and (b).
    Reasons: The proposed change to the regulation would clearly 
identify the appropriate official for making determinations under 
FAR 30.201-5.

[[Page 41515]]

PART 3431--CONTRACT COST PRINCIPLES AND PROCEDURES

    FAR: FAR Part 31 (Contract Cost Principles and Procedures) 
includes sections regulating costs under contracts with commercial, 
educational, and nonprofit organizations.
    Current Regulations: The current EDAR does not address this part 
of the FAR.
    Proposed Regulations: The Department proposes to add PART 3431, 
``CONTRACT COST PRINCIPLES AND PROCEDURES,'' to add subpart 3431.1 
consisting of section 3431.101 to identify the SPE as the agency 
head's designee for the purposes of FAR 31.101 and add subpart 
3431.2 to include section 3431.205-6 to identify the HCA as the 
agency head's designee for the purposes of FAR 31.295-6(g)(3).
    The Department proposes to add section 3431.205-70 to prescribe 
the use of clause 3452.231-70 (Food Costs) to prohibit the use of 
contract funds to procure food unless authorized by the Contracting 
Officer (CO) in advance. The Department proposes to add section 
3431.205-71 to prescribe the use of clause 3452.231-71 (Travel 
Costs) to prohibit the use of contract funds to pay for 
noncontractor travel unless authorized by the Contracting Officer in 
advance.
    The Department proposes to add section 3431.205-72 to prescribe 
the clause at 3452.231-72 (Clearance of Conferences/Meetings) that 
requires Department contractors arranging conferences on behalf of 
the Department to seek the services of the Department's Event 
Services office or agreement from that office that the services may 
be subcontracted.
    Reasons: The proposed changes to the regulations would clearly 
identify the appropriate official for making determinations under 
FAR 31.101 and 31.205-6. The added clauses are required to ensure 
adequate control over contract funds for use to pay for 
noncontractor travel and meals and for Department conferences.

PART 3432--CONTRACT FINANCING

    FAR: FAR Part 32 (Contract Financing) regulates the types of 
financing the Government may make available to contractors, 
including advance payments.
    Current Regulations: The current EDAR designates the HCA as the 
official authorized to authorize types of financing in subpart 
3432.4 (Advance Payments) and section 3432.705-2 (Clauses for 
Limitation of Cost or Funds), which prescribes the use of clause 
3452.232-70 (Limitation of Cost or Funds) and the provision in 
clause 3452.232-71 (Incremental Funding).
    Proposed Regulations: The Department proposes to add subparts 
3432.0, 3432.1, 3432.2, and 3432.9 to PART 3432, ``CONTACT 
FINANCING.'' Sections 3432.006-1, 3432.006-4, and 3432.114 would 
identify the SPE as the agency head for the purposes of FAR 32.006-
1, 32.006-4, and 32.114, respectively. The Department proposes to 
add section 3432.006-3 to identify Department personnel 
responsibilities and procedures that must be followed when there is 
any suspected instance of fraud involved in payment requests.
    The Department proposes to add sections 3432.201, 3432.703-3, 
and 3432.906 to identify the HCA as the agency head for the purposes 
of FAR 32.201, 32.703-3(b), and 32.906(a), respectively. The 
Department proposes to add section 3432.006-2 to define the ``Remedy 
Coordination Official.''
    The Department proposes to add section 3432.902 to define 
``delivery date'' as the date on which products and services are 
deemed received.
    Reasons: The addition of section 3432.902 would provide 
clarification to potential vendors that may make delivery of 
products or services after 4:30 p.m., that those deliveries will be 
deemed to be received the next business day.
    The other proposed changes would identify the appropriate 
officials that have been designated to make determinations under 
various subparts of FAR 32 and identify the appropriate official and 
procedure to report requests for payments based on fraud.

PART 3433--PROTESTS, DISPUTES, AND APPEALS

    FAR: FAR Part 33 (Protests, Disputes, and Appeals) regulates the 
Government's actions when a protest is filed with the agency or the 
Government Accountability Office (GAO) and when disputes occur under 
contracts.
    Current Regulations: The current EDAR designates the HCA as the 
official authorized to approve a determination to continue with 
performance after receipt of a protest.
    Proposed Regulations: The Department proposes to revise section 
3433.103 to identify the Competition Advocate for the contracting 
activity as having responsibility for the independent review 
required by FAR 33.103(d)(4).
    The Department proposes to add section 3433.103(f)(1) and 
3433.103(f)(3) to identify the HCA as having responsibility for 
approving any determination to proceed with the contract award for 
protests filed and received before award and to continue performance 
after the receipt of an agency protest after award. We further 
clarify that in those cases where the Contracting Officer (CO) is 
also the HCA, the determination must be approved by the SPE. The 
Department proposes to add section 3433.104 to require contracting 
activities to seek guidance from the Office of the General Counsel 
(OGC) before taking action in response to a GAO protest. The 
Department proposes to add section 3433.203 to identify the SPE as 
the agency head for the purposes of FAR 33.203(b).
    The Department proposes to add section 3433.211 to require the 
Contracting Officer to obtain assistance, as appropriate, from OGC 
prior to issuing a final decision.
    Reasons: The Department proposes to revise section 3433.103 to 
clarify that there are two contracting activities, each with its own 
Competition Advocate. The Department proposes to add section 
3433.104 to identify the HCA as having the responsibility for 
determining if work should begin after a protest has been received. 
The Department proposes to add section 3433.203 to identify the SPE 
as the agency head for the purposes of FAR 33.203. The Department 
proposes to add section 3433.211 to require the Contracting Officer 
to confer with the OGC, when appropriate, prior to issuing any final 
determination.

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

PART 3434--MAJOR SYSTEM ACQUISITION

    FAR: FAR Part 34 (Major System Acquisition) describes 
acquisition policies and procedures for use in acquiring major 
systems consistent with OMB Circular No. A-109. FAR Part 34 also 
describes the use of an Earned Value Management System in 
acquisitions designated as major acquisitions consistent with OMB 
Circular A-11, Part 7.
    Current Regulations: The current EDAR does not address this part 
of the FAR.
    Proposed Regulations: The Department proposes to add PART 3434, 
``MAJOR SYSTEM ACQUISITION.'' Section 3434.003 would identify the 
SPE as the agency head's designee for the purposes of FAR 34.003(a). 
The Department proposes to add section 3434.003(b) to identify the 
SPE as the agency head for the purposes of FAR 34.003(c) and the 
acquisition executive for the purposes of OMB Circular No. A-109. 
Section 3434.005-6 would identify the SPE as the agency head's 
designee for the purposes of FAR 34.005-6.
    Reasons: These changes would identify the appropriate officials 
that have been designated to make determinations under various 
subparts of FAR 34.

PART 3437--SERVICE CONTRACTING

    FAR: FAR Part 37 (Service Contracting) regulates various types 
of service contracts and performance-based acquisition.
    Current Regulations: The EDAR currently contains section 
3437.270 (Services of Consultants Clauses), which prescribes the use 
of clause 3452.237-70 (Services of Consultants) in all cost-
reimbursement contracts and solicitations. This clause requires the 
contractor to obtain the Contracting Officer's written approval to 
use certain consultants under a cost-type contract.
    Proposed Regulations: The Department proposes to revise subpart 
3437.2 and add section 3437.601 to subpart 3437.6. Proposed section 
3437.204 would identify the HCA as the agency head for the purposes 
of FAR 37.204. The Department proposes to revise section 3437.270 to 
provide clarification on when the Contracting Officer must use 
clause 3452.237-70 (Services of Consultants). The Department 
proposes to add section 3437.601 to establish the Department's 
policy that all new service contracts be performance-based unless 
approved by the Departmental Competition Advocate.
    Reasons: These changes would clearly identify the official 
responsible for approving advisory contracts, clarify that the 
Services of Consultants clause is not applicable to FSA contracts, 
and establish the minimum requirements to be contained in any new 
service contract.

PART 3439--ACQUISITION OF INFORMATION TECHNOLOGY

    FAR: FAR Part 39 (Acquisition of Information Technology) 
regulates the acquisition of information technology.

[[Page 41516]]

    Current Regulations: The current EDAR contains multiple 
information technology initiatives and standards requirements for 
Internet Protocol Version 6 and security requirements.
    Proposed Regulations: The Department proposes to remove section 
3439.701 from subpart 3439.70 because the section is no longer 
needed. A FAR clause has been established to fulfill its purpose.
    Reasons: Current section 3439.701 has been replaced by a FAR 
clause and is obsolete.

SUBCHAPTER G--CONTRACT MANAGEMENT

PART 3442--CONTRACT ADMINISTRATION AND AUDIT SERVICES

    FAR: FAR Part 42 (Contract Administration and Audit Services) 
requires use of a contractor performance information system and 
contract monitoring; it also governs other contract administration 
functions.
    Current Regulations: The current EDAR contains sections on 
contract monitoring and the accessibility of meetings, conferences, 
and seminars to persons with disabilities.
    Proposed Regulations: The Department proposes to add subparts 
3442.6 and 3442.7 and to revise section 3442.7101 in subpart 
3442.71. We would add section 3442.602 to identify the SPE as the 
agency head's designee for the purposes of FAR 42.602(a) and add 
section 3443.703-2 to identify the HCA as the agency head's designee 
for the purposes of FAR 42.703-2(b). Additionally, the Department 
proposes to revise section 3442.7101 to clarify that the use of 
clause 3452.242-73 (Accessibility of meetings, conferences, and 
seminars to persons with disabilities) is mandatory in all 
solicitations and contracts where conferences are contemplated.
    Reasons: The current regulation is general in the application of 
the accessibility clause, and the proposed changes would clearly 
identify the appropriate official for making determinations under 
FAR 42.302.

PART 3444--SUBCONTRACTING POLICIES AND PROCEDURES

    FAR: FAR Part 44 (Subcontracting Policies and Procedures) 
includes sections that govern contracts requiring the Government's 
consent to subcontract, the review of a contractor's purchasing 
system, and subcontracts under commercial item purchases.
    Current Regulations: The current EDAR does not address this part 
of the FAR.
    Proposed Regulations: The Department proposes to add PART 3444, 
``SUBCONTRACTING POLICIES AND PROCEDURES.'' Section 3444.302 would 
identify the SPE as the head of the agency for the purposes of FAR 
44.302(a).
    Reasons: The proposed change to the regulation would clearly 
identify the appropriate official for making determinations under 
FAR 44.302.

PART 3447--TRANSPORTATION

    FAR: FAR Part 47 (Transportation) includes sections regulating 
transportation-related services, transportation in supply contracts, 
and transportation by U.S. flag carriers and vessels.
    Current Regulations: The current EDAR includes in section 
3447.701 a foreign travel provision for when the Contracting Officer 
must use clause 3452.247-70 (Foreign travel).
    Proposed Regulations: The Department proposes to revise 3447.701 
to clarify that the Contracting Officer must insert clause 3452.247-
70 (Foreign Travel) in all solicitations and resultant cost 
reimbursement contracts where foreign travel is contemplated.
    Reasons: This change would clarify when the Contracting Officer 
must use clause 3452.247-70.

PART 3448--VALUE ENGINEERING

    FAR: FAR Part 48 (Value Engineering) includes sections that 
identify the appropriate sharing methodologies for proposals that 
would generate savings on the instant acquisition through which a 
value engineering proposal is submitted, as well as sharing of 
savings on collateral contracts.
    Current Regulations: The current EDAR does not address this part 
of the FAR.
    Proposed Regulations: The Department proposes to add PART 3448, 
``VALUE ENGINEERING.'' Proposed sections 3448.102 and 3448.201 would 
delegate to the HCA, without power of redelegation, the authority 
regarding the exemptions prescribed in FAR 48.102(g) and 
48.201(a)(6), respectively.
    Reasons: The proposed regulations would clearly identify the 
appropriate official for making exemption determinations under FAR 
48.102(g) and 48.201(a)(6), respectively.

SUBCHAPTER H--CLAUSES AND FORMS

PART 3452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    FAR: FAR Part 52 (Solicitation Provisions and Contract Clauses) 
is the part of the FAR containing all FAR provisions and clauses 
required or recommended for inclusion in solicitations and 
contracts, as prescribed in the preceding parts of the FAR.
    Current Regulations: The current EDAR includes in PART 3452, 
``SOLICITATION PROVISIONS AND CONTRACT CLAUSES,'' text for 30 
provisions and clauses, all of which are prescribed in the preceding 
parts of the EDAR.
    Proposed Regulations: The Department proposes to add section 
3452.204-70 to implement guidance provided by the National Archives 
and Records Administration consistent with the requirements of the 
Department; revise section 3452.216-71(e) to require bilateral 
modifications rather than unilateral Government modifications in 
cases of earned award term periods; add section 3452.217-70 to 
include the evaluation of award term periods; add section 3452.219-
70 to allow evaluations to include socioeconomic categories; add 
section 3452.231-70 to preclude the procurement of food under a cost 
reimbursement contract unless authorized in advance by the CO; add 
section 3452.231-71 to identify invitational travel as an 
unallowable cost; add section 3431.231-72 to require contractors to 
work with the Event Services staff to establish any hotel contracts; 
and remove section 3452.239-70.
    Additionally, the Department proposes to add subpart 3452.3, 
consisting of section 3452.301 (Solicitation provisions and contract 
clauses (Matrix)), a clause matrix.
    Reasons: The proposed changes to this part of the EDAR are 
consistent with the changes to the prescriptive language in the 
preceding parts and would update the provisions and clauses to more 
accurately reflect current regulations and policy. Section 3452.239-
70 would be removed because it is obsolete. The addition of a clause 
matrix in section 3452.301 would provide an easy reference point for 
Contracting Officers to check.

Executive Orders 12866 and 13563

Regulatory Impact Analysis

    Under Executive Order 12866, the Secretary must determine 
whether this regulatory action is ``significant'' and, therefore, 
subject to the requirements of the Executive order and subject to 
review by the Office of Management and Budget (OMB). Section 3(f) of 
Executive Order 12866 defines a ``significant regulatory action'' as 
an action likely to result in a rule that may--
    (1) Have an annual effect on the economy of $100 million or 
more, or adversely affect a sector of the economy, productivity, 
competition, jobs, the environment, public health or safety, or 
State, local or tribal governments or communities in a material way 
(also referred to as an ``economically significant'' rule);
    (2) Create serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impacts of entitlement 
grants, user fees, or loan programs or the rights and obligations of 
recipients thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles stated in 
the Executive order.
    This proposed regulatory action is not a significant regulatory 
action subject to review by OMB under section 3(f) of Executive 
Order 12866.
    We have also reviewed these regulations under Executive Order 
13563, which supplements and explicitly reaffirms the principles, 
structures, and definitions governing regulatory review established 
in Executive Order 12866. To the extent permitted by law, Executive 
Order 13563 requires that an agency--
    (1) Propose or adopt regulations only upon a reasoned 
determination that their benefits justify their costs (recognizing 
that some benefits and costs are difficult to quantify);
    (2) Tailor its regulations to impose the least burden on 
society, consistent with obtaining regulatory objectives and taking 
into account--among other things and to the extent practicable--the 
costs of cumulative regulations;
    (3) In choosing among alternative regulatory approaches, select 
those approaches that maximize net benefits (including potential 
economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity);
    (4) To the extent feasible, specify performance objectives, 
rather than the behavior or manner of compliance a regulated entity 
must adopt; and

[[Page 41517]]

    (5) Identify and assess available alternatives to direct 
regulation, including economic incentives--such as user fees or 
marketable permits--to encourage the desired behavior, or provide 
information that enables the public to make choices.
    Executive Order 13563 also requires an agency ``to use the best 
available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible.'' The Office of 
Information and Regulatory Affairs of OMB has emphasized that these 
techniques may include ``identifying changing future compliance 
costs that might result from technological innovation or anticipated 
behavioral changes.''
    We are issuing these proposed regulations only on a reasoned 
determination that their benefits would justify their costs. In 
choosing among alternative regulatory approaches, we selected those 
approaches that would maximize net benefits. Based on the analysis 
that follows, the Department believes that these proposed 
regulations are consistent with the principles in Executive Order 
13563.
    We also have determined that this regulatory action would not 
unduly interfere with State, local, and tribal governments in the 
exercise of their governmental functions.
    In accordance with both Executive orders, the Department has 
assessed the potential costs and benefits, both quantitative and 
qualitative, of this regulatory action. The potential costs 
associated with this regulatory action are those resulting from 
statutory requirements and those we have determined as necessary for 
administering the Department's programs and activities.

Clarity of the Regulations

    Executive Order 12866 and the Presidential memorandum on ``Plain 
Language in Government Writing'' require each agency to write 
regulations that are easy to understand.
    The Secretary invites comments on how to make these proposed 
regulations easier to understand, including answers to questions 
such as the following:
     Are the requirements in the proposed regulations 
clearly stated?
     Do the proposed regulations contain technical terms or 
other wording that interferes with their clarity and create a 
barrier to contracting with the Department?
     Does the format of the proposed regulations (grouping 
and order of sections, use of headings, paragraphing, etc.) aid or 
reduce their clarity?
     Would the proposed regulations be easier to understand 
if we divided them into more (but shorter) sections?
     Could the description of the proposed regulations in 
the SUPPLEMENTARY INFORMATION section of this preamble be more 
helpful in making the proposed regulations easier to understand? If 
so, how?
     What else could the Department do to make the proposed 
regulations easier to understand and access?
    To send any comments that concern how the Department could make 
these proposed regulations easier to understand, see the 
instructions in the ADDRESSES section.

Regulatory Flexibility Act Certification

    The Secretary certifies that these proposed regulations would 
not have a significant economic impact on a substantial number of 
small entities.
    The proposed regulations would update the EDAR; they would not 
directly regulate any small entities. As a result, a regulatory 
flexibility analysis is not required and none has been prepared.

Paperwork Reduction Act of 1995

    These proposed regulations do not contain any information 
collection requirements.

Intergovernmental Review

    These regulations are not subject to Executive Order 12372 and 
the regulations in 34 CFR part 79.

Assessment of Educational Impact

    In accordance with section 441 of the General Education 
Provisions Act, 20 U.S.C. 1221e-4, the Secretary particularly 
requests comments on whether these proposed regulations would 
require transmission of information that any other agency or 
authority of the United States gathers or makes available.
    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) on request to the person listed under 
FOR FURTHER INFORMATION CONTACT.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
Internet access to the official edition of the Federal Register and 
the Code of Federal Regulations is available via the Federal Digital 
System at: www.gpo.gov/fdsys. At this site you can view this 
document, as well as all other documents of this Department 
published in the Federal Register, in text or Adobe Portable 
Document Format (PDF). To use PDF you must have Adobe Acrobat 
Reader, which is available free at the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents 
published by the Department.

(Catalog of Federal Domestic Assistance Number does not apply.)

List of Subjects in 48 CFR Parts 3401, 3403, 3404, 3405, 3406, 
3407, 3408, 3409, 3411, 3413, 3414, 3415, 3416, 3417, 3419, 3422, 
3425, 3427, 3428, 3430, 3431, 3432, 3433, 3434, 3437, 3439, 3442, 
3444, 3447, 3448, and 3452

    Government procurement.

    Dated: June 30, 2014.
Arne Duncan,
Secretary of Education.
    Accordingly, the Secretary proposes to amend title 48 of the Code 
of Federal Regulations, chapter 34 as follows:

PART 3401--ED ACQUISITION REGULATION SYSTEM

0
1. The authority citation for part 3401 continues to read as follows:

    Authority:  5 U.S.C. 301 and 20 U.S.C. 1018a.

0
2. Section 3401.403 is revised to read as follows:


3401.403  Individual deviations.

    An individual deviation from the FAR or the EDAR must be approved 
by the HCA.
0
3. Section 3401.404 is revised to read as follows:


3401.404  Class deviations.

    A class deviation from the FAR or the EDAR must be approved by the 
Senior Procurement Executive (SPE).
0
4. Section 3401.470 is added to read as follows:


3401.470  Procedures.

    (a) The HCA must submit to the SPE a written request for each 
deviation from the FAR or the EDAR. Each request for a deviation must 
include:
    (1) The nature of the deviation requested, including whether it is 
an individual or class deviation.
    (2) The FAR or EDAR regulation from which the deviation is 
requested.
    (3) The circumstances under which the deviation would be used.
    (4) The effect intended by the deviation.
    (5) The expiration date recommended for the deviation.
    (6) All pertinent documentation supporting the request.
    (b) The Contracting Officer must include in the contract file a 
copy of each authorized deviation that pertains to the acquisition.


Sections 3401.670, 3401.670-1, 3401.670-2, and 3401.670-
3.  [Redesignated as 3401.604-70, 3401.604-70.1, 3401.604-70.2, and 
3401.604-70.3]

0
5. Sections 3401.670, 3401.670-1, 3401.670-2, and 3401.670-3 are 
redesignated as sections 3401.604-70, 3401.604-70.1, 3401.604-70.2, and 
3401.604-70.3, respectively.

PART 3403--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

0
6. The authority citation for part 3403 continues to read as follows:

    Authority:  5 U.S.C. 301.

0
7. Sections 3403.104 and 3403.104-7 are added to read as follows:

[[Page 41518]]

3403.104  Procurement integrity.


3403.104-7  Violations or possible violations.

    (d)(2)(ii)(B) The SPE is the agency head for the purposes of FAR 
3.104-7(d)(2)(ii)(B).
0
8. Section 3403.204 is added to read as follows:


3403.204  Treatment of violations.

    (a) The SPE is the agency head's designee for the purposes of FAR 
3.204.
0
9. Section 3403.602 is revised to read as follows:


3403.602  Exceptions.

    The SPE is the agency head's designee for the purposes of FAR 
3.602.
0
10. Subpart 3403.7 is added to read as follows:
Subpart 3403.7--Voiding and Rescinding Contracts
Sec.
3403.704 Policy.
3403.705 Procedures.

Subpart 3403.7--Voiding and Rescinding Contracts


3403.704  Policy.

    (a) The SPE is the agency head's designee for the purposes of FAR 
3.704.


3403.705  Procedures.

    (a) The SPE is the agency head's designee for the purposes of FAR 
3.705.
0
11. Subpart 3403.9 is added to read as follows:
Subpart 3403.9--Whistleblower Protections for Contractor Employees
Sec.
3403.905 Procedures for investigating complaints.
3403.906 Remedies.

Subpart 3403.9--Whistleblower Protections for Contractor Employees


3403.905  Procedures for investigating complaints.

    (c) The SPE is the agency head's designee for the purposes of FAR 
3.905.


3403.906  Remedies.

    (a) The SPE is the agency head's designee for the purposes of FAR 
3.906.
0
12. A new part 3404 is added to subchapter A to read as follows:

PART 3404--ADMINISTRATIVE MATTERS

3404.7--Contractor Records Retention
Sec.
3404.770 Contract clause.

    Authority:  5 U.S.C. 301; 40 U.S.C. 121(c); and 41 U.S.C. 3102.

Subpart 3404.7--Contractor Records Retention


3404.770  Contract clause.

    The Contracting Officer must insert the clause at 3452.204-70, 
Maintenance and Retention of Government-Owned/Contractor-Held Federal 
Records, in all solicitations and contracts where contractors are in 
possession of Federal records.

PART 3405--PUBLICIZING CONTRACT ACTIONS

0
13. The authority citation for part 3405 continues to read as follows:

    Authority:  5 U.S.C. 301 and 20 U.S.C. 1018a.

0
14. Subpart 3405.4 is added to read as follows:
Subpart 3405.4--Release of Information
Sec.
3405.404 Release of long-range acquisition estimates.
3405.404-1 Release procedures.

Subpart 405.4--Release of Information


3405.404   Release of long-range acquisition estimates.


3405.404-1   Release procedures.

    (a) The SPE is the agency head's designee for the purposes of FAR 
5.404-1(a).
    (b) The SPE is the agency head for the purposes of FAR 5.404-1(b).

PART 3406--COMPETITION REQUIREMENTS

0
15. The authority citation for part 3406 continues to read as follows:

    Authority:  5 U.S.C. 301; 41 U.S.C. 418(a) and (b); and 20 
U.S.C. 1018a.

0
16. Subpart 3406.2 is added to read as follows:
Subpart 3406.2--Full and Open Competition After Exclusion of Sources
Sec.
3406.202 Establishing or maintaining alternate sources.

Subpart 3406.2--Full and Open Competition After Exclusion of 
Sources


3406.202   Establishing or maintaining alternate sources.

    The HCA is the agency head for the purposes of FAR 6.202.
0
17a. Sections 3406.302, 3406.302-1, and 3406.302-2 are added to read as 
follows:


3406.302  Circumstances permitting other than full and open 
competition.


3406.302-1   Only one responsible source and no other supplies or 
services will satisfy agency requirements.

    (b)(4) The HCA is the agency head for the purposes of FAR 6.302-
1(b)(4).


3406.302-2  Unusual and compelling urgency.

    (d)(2) The SPE is the agency head's designee for the purposes of 
FAR 6.302-2(d)(2).
0
17b. Section 3406.302-7 is added to read as follows:


3406.302-7   Public interest.

    The authority to approve the determination prescribed in FAR 6.302-
7(c) is reserved for the Secretary of Education.
0
18. Section 3406.501 is revised to read as follows:


3406.501   Requirement.

    The Competition Advocate for the Department and Contracts and 
Acquisitions Management (CAM) is the Deputy Director, CAM. The 
Competition Advocate for Federal Student Aid (FSA) is the Director, 
Strategic Initiatives.
0
19. A new part 3407 is added to subchapter B to read as follows:

PART 3407--ACQUISITION PLANNING

Subpart 3407.1--Acquisition Plans
Sec.
3407.103 Agency-head responsibilities.

    Authority:  5 U.S.C. 301.

Subpart 3407.1--Acquisition Plans


3407.103   Agency-head responsibilities.

    The SPE is the agency head's designee for the purposes of FAR 
7.103.

PART 3408--REQUIRED SOURCES OF SUPPLIES AND SERVICES

0
20. The authority citation for part 3408 continues to read as follows:

    Authority:  5 U.S.C. 301, unless otherwise noted.

0
21. Section 3408.870 is revised to read as follows:


3408.870   Printing clause.

    The Contracting Officer must insert the clause at 3452.208-71 
(Printing) in all solicitations and contracts for services where 
printing is anticipated.

PART 3409--CONTRACTOR QUALIFICATIONS

0
22. The authority citation for part 3409 continues to read as follows:

    Authority:  5 U.S.C. 301.


[[Page 41519]]


0
23. Subpart 3409.2 is added to read as follows:
Subpart 3409.2--Qualifications Requirements
Sec.
3409.202 Policy.
3409.206 Acquisitions subject to qualification requirements.
3409.206-1 General.

Subpart 3409.2--Qualifications Requirements


3409.202  Policy.

    (a)(1) The SPE is the agency head's designee for the purposes of 
FAR 9.202(a)(1).


3409.206   Acquisitions subject to qualification requirements.


3409.206-1   General.

    (b) The SPE is the agency head's designee for the purposes of FAR 
9.206-1(b).
0
24a. Sections 3409.405, 3409.405-1, and 3409.405-2 are added to read as 
follows:


3409.405   Effect of listing.

    (a) The SPE is the agency head's designee for the purposes of FAR 
9.405(a).
    (d)(3) The SPE is the agency head's designee for the purposes of 
FAR 9.405(d)(3).


3409.405-1   Continuation of current contracts.

    (a) The SPE is the agency head's designee for the purposes of FAR 
9.405-1.


3409.405-2   Restrictions on subcontracting.

    (a) The SPE is the agency head's designee for the purposes of FAR 
9.405-2.
0
24b. Section 3409.406-1 is added to read as follows:


3409.406-1   General.

    (c) The SPE is the agency head's designee for the purposes of FAR 
9.406-1(c).
0
24c. Section 3409.407-1 is added to read as follows:


3409.407-1  General.

    (d) The SPE is the agency head's designee for the purposes of FAR 
9.407-1(d).
0
25. Section 3409.503 is revised to read as follows:


3409.503  Waiver.

    The SPE is the agency head's designee for the purposes of FAR 
9.503.
0
26. In subchapter B, a new part 3411 is added to read as follows:

PART 3411--DESCRIBING AGENCY NEEDS

Subpart 3411.1--Selecting and Developing Requirements Documents
Sec.
3411.103 Market acceptance.

Subpart 3411.5--Liquidated Damages
Sec.
3411.501 Policy.


    Authority: 5 U.S.C. 301 and 20 U.S.C. 1018a.

Subpart 3411.1--Selecting and Developing Requirements Documents


3411.103  Market acceptance.

    (a) The HCA is the agency head for the purposes of FAR 11.103(a).

Subpart 3411.5--Liquidated Damages


3411.501  Policy.

    (d) The HCA is the agency head for the purposes of FAR 11.501(d).

PART 3413--SIMPLIFIED ACQUISITION PROCEDURES

0
27. The authority citation for part 3413 continues to read as follows:

    Authority: 5 U.S.C. 301 and 20 U.S.C. 1018a.

0
28. Subpart 3413.2 is added to read as follows:
Subpart 3413.2--Actions At or Below the Micro-Purchase Threshold
Sec.
3413.201 General.

Subpart 3413.2--Actions At or Below the Micro-Purchase Threshold


3413.201  General.

    (g)(1) The SPE is the agency head for the purposes of FAR 
13.201(g)(1).
0
29. Sections 3413.305 and 3413.305-3 are added to read as follows:


3413.305  Imprest funds and third party drafts.


3413.305-3  Conditions for use.

    (a) The SPE is the agency head for the purposes of FAR 13.305-3(a).

PART 3414--SEALED BIDDING

0
30. The authority citation for part 3414 continues to read as follows:

    Authority: 5 U.S.C. 301.

0
31. Subpart 3414.4 is revised to read as follows:
Subpart 3414.4--Opening of Bids and Award of Contract
Sec.
3414.404 Rejection of bids.
3414.404-1 Cancellation of invitations after opening.
3414.407 Mistakes in bids.
3414.407-3 Other mistakes disclosed before award.
3414.407-4 Mistakes after award.

Subpart 3414.4--Opening of Bids and Award of Contract


3414.404   Rejection of bids.


3414.404-1   Cancellation of invitations after opening.

    (c) The HCA is the agency head for the purposes of FAR 14.404-1(c).


3414.407   Mistakes in bids.


3414.407-3   Other mistakes disclosed before award.

    The HCA is the agency head for the purposes of making any 
determination called for by FAR 14.407-3.


3414.407-4   Mistakes after award.

    The HCA is the agency head for the purposes of making any 
determination called for by FAR 14.407-4.

PART 3415--CONTRACTING BY NEGOTIATION

0
32. The authority citation for part 3415 continues to read as follows:

    Authority: 5 U.S.C. 301 and 20 U.S.C. 1018a.

0
33. Section 3415.204 is added to read as follows:


3415.204  Contract format.

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

PART 3416--TYPES OF CONTRACTS

0
34. The authority citation for part 3416 continues to read as follows:

    Authority: 5 U.S.C. 301 and 20 U.S.C. 1018a.

0
35. In section 3416.470, paragraph (f)(2) is revised to read as 
follows:


3416.470  Award-term contracting.

* * * * *
    (f) * * *
    (2) The extension of the contract as a result of an earned award 
term period is affected by a bilateral contract modification.
* * * * *

PART 3417--SPECIAL CONTRACTING METHODS

0
36. The authority citation for part 3417 continues to read as follows:

    Authority: 31 U.S.C. 1535 and 20 U.S.C. 1018a.

0
37. Subpart 3417.1 is added to read as follows:

[[Page 41520]]

Subpart 3417.1--Multi-year Contracting
Sec.
3417.104 General.

Subpart 3417.1--Multi-year Contracting


3417.104  General.

    (b) The SPE is the agency head for the purposes of FAR 17.104(b).

0
38. Section 3417.208 is added to read as follows:


3417.208  Solicitation provisions and contract clauses.

    (c) Insert a clause substantially the same as the clause at 
3452.17-70, Evaluation of Options to Include Award Terms and 3452.17-
71, Option to Extend the Term of an Award Term Contract, in 
solicitations and contracts when the conditions at FAR 3417.208(c) 
exist and the use of an Award Term incentive is contemplated.
0
39. Subpart 3417.6 is added to read as follows:
Subpart 3417.6--Management and Operating Contracts
Sec.
3417.602 Policy.

Subpart 3417.6--Management and Operating Contracts


3417.602  Policy.

    (a) The Assistant Secretary for the Office of Management is the 
agency head for the purposes of FAR 17.602.

PART 3419--SMALL BUSINESS PROGRAMS

0
40. The authority citation for part 3419 continues to read as follows:

    Authority: 5 U.S.C. 301 and 20 U.S.C. 1018a.

0
41. Section 3419.505 is added to read as follows:


3419.505  Rejecting Small Business Administration recommendations.

    (d) The SPE is the agency head for the purposes of FAR 19.505.
0
42. Section 3419.70 is added to read as follows:


3419.70  Socioeconomic goals.

    When the Department has been unable to meet its goal for prime 
contractor awards in one or more socioeconomic categories in any of the 
last five fiscal years, the Contracting Officer may insert a clause 
substantially the same as 3452.219-70 in any procurement for a 
Commercial Item conducted under FAR Part 12 or 13 when the award is low 
price, technically acceptable.
0
43. Subpart 3419.8 is added to read as follows:
Subpart 3419.8--Contracting with the Small Business Administration
Sec.
3419.810 SBA appeals.
3419.812 Contract administration.

Subpart 3419.8--Contracting with the Small Business Administration


3419.810  SBA appeals.

    (a) The SPE is the agency head for the purposes of FAR 19.810.


3419.812  Contract administration.

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

PART 3422--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

0
44. The authority citation for part 3422 continues to read as follows:

    Authority: 5 U.S.C. 301 Subpart 3422.10--Service Contract Act of 
1965, as Amended
0
45a. Subparts 3422.3, 3422.4, 3422.6, and 3422.8 are added to read as 
follows:
Subpart 3422.3--Contract Work Hours and Safety Standards Act
Sec.
3422.302 Liquidated damages and overtime pay.
Subpart 3422.4--Labor Standards for Contracts Involving Construction
Sec.
3422.406 Administration and enforcement.
3422.406-8 Investigations.
3422.406-9 Withholding from or suspension of contract payments.
Subpart 3422.6--Walsh-Healy Public Contracts Act
Sec.
3422.604 Exemptions.
3422.604-2 Regulatory exemptions.
Subpart 3422.8--Equal Employment Opportunity
Sec.
3422.803 Responsibilities.
3422.807 Exemptions.

Subpart 3422.3--Contract Work Hours and Safety Standards Act


3422.302   Liquidated damages and overtime pay.

    (c) The HCA is the agency head for the purposes of FAR 22.302(c).

Subpart 3422.4--Labor Standards for Contracts Involving 
Construction


3422.406   Administration and enforcement.


3422.406-8   Investigations.

    (a) The Chief of the Contracting Office is responsible for 
conducting labor standards investigations as prescribed in FAR 22.406-
8(a).
    (d) The SPE is the agency head's designee for the purposes of FAR 
22.406-8(d).


3422.406-9   Withholding from or suspension of contract payments.

    (b) The authority to suspend contract payments pursuant to FAR 
22.406-9(b) is delegated, without power of redelegation, to the HCA.

Subpart 3422.6--Walsh-Healy Public Contracts Act


3422.604   Exemptions.


3422.604-2   Regulatory exemptions.

    (b)(1) The SPE is the agency head for the purposes of FAR 22.604-
2(b)(1).

Subpart 3422.8--Equal Employment Opportunity


3422.803   Responsibilities.

    (c) The SPE is the agency head for the purposes of FAR 22.803(c).


3422.807   Exemptions.

    (a)(1) The SPE is the agency head for the purposes of FAR 
22.807(a)(1).
0
45b. Add a heading for subpart 3422.10 to read as follows:

Subpart 3422.10--Service Contract Labor Standards

    Sections 3422.1002 and 3422.1002-1 [Designated as subpart 3422.10].
0
45c. Designate sections 3422.1002 and 3422.1002-1 as subpart 3422.10.
0
45d. Subparts 3422.13 and 3422.14 are added to read as follows:

Subpart 3422.13--Special Disabled Veterans, Veterans of the Vietnam 
Era, and Other Eligible Veterans
Sec.
3422.1305 Waivers.
3422.1310 Solicitation provision and contract clauses.
Subpart 3422.14--Employment of Workers with Disabilities
Sec.
3422.1403 Waivers.
3422.1408 Contract clause.

Subpart 3422.13--Special Disabled Veterans, Veterans of the Vietnam 
Era, and Other Eligible Veterans


3422.1305   Waivers.

    The SPE is the agency head for the purposes of FAR 22.1305.


3422.1310   Solicitation provision and contract clauses.

    The SPE is the agency head for the purposes of FAR 
22.1310(a)(1)(ii) and (a)(2).

[[Page 41521]]

Subpart 3422.14--Employment of Workers with Disabilities


3422.1403   Waivers.

    The SPE is the agency head for the purposes of FAR 22.1403.


3422.1408   Contract clause.

    The SPE is the agency head for the purposes of FAR 22.1408.

PART 3425--FOREIGN ACQUISITION

0
46. The authority citation for part 3425 continues to read as follows:

    Authority:  5 U.S.C. 301.

0
47. Revise subpart 3425.1 to read as follows:

Subpart 3425.1--Buy American Act--Supplies
Sec.
3425.103 Exceptions.
3425.105 Determining reasonableness of cost.

Subpart 3425.1--Buy American Act--Supplies


3425.103   Exceptions.

    (a) The authority to make the determination prescribed in FAR 
25.103(a) is delegated, without power of redelegation, to the HCA.


3425.105   Determining reasonableness of cost.

    (a)(1) The authority to make the determinations prescribed in FAR 
25.105(a)(1) is delegated, without power of redelegation, to the HCA.
0
48. Add subparts 3425.2 and 3425.10 to read as follows:

Subpart 3425.2--Buy American Act--Construction Materials
Sec.
3425.202 Exceptions.
3425.204 Evaluating offers of foreign construction material.
Subpart 3425.10--Additional Foreign Acquisition Regulations
Sec.
3425.1001 Waiver of right to examination of records.

Subpart 3425.2--Buy American Act--Construction Materials


3425.202   Exceptions.

    (a)(1) The authority to make the determination prescribed in FAR 
25.202(a)(1) is delegated, without power of redelegation, to the HCA.


3425.204   Evaluating offers of foreign construction material.

    (b) The HCA is the agency head for the purposes of FAR 25.204(b).

Subpart 3425.10--Additional Foreign Acquisition Regulations


3425.1001   Waiver of right to examination of records.

    (a)(2)(iii) The SPE is the agency head for the purposes of FAR 
25.1001(a)(2)(iii).

PART 3427--PATENTS, DATA, AND COPYRIGHTS

0
49. The authority citation for part 3427 continues to read as follows:

    Authority:  5 U.S.C. 301.

0
50. Add subpart 3427.3 to read as follows:

Subpart 3427.3--Patent Rights under Government Contracts
Sec.
3427.303 Contract clauses.

Subpart 3427.3--Patent Rights under Government Contracts


3427.303   Contract clauses.

    The SPE is the agency head's designee for the purposes of FAR 
27.303.

PART 3428--BONDS AND INSURANCE

0
51. The authority citation for part 3428 continues to read as follows:

    Authority:  5 U.S.C. 301.

0
52. Add subpart 3428.1 to read as follows:

Subpart 3428.1--Bonds and Other Financial Protections
Sec.
3428.101 Bid guarantees.
3428.101-1 Policy on use.
3428.106-6 Furnishing information.

Subpart 3428.1--Bonds and Other Financial Protections


3428.101   Bid guarantees.


3428.101-1   Policy on use.

    (c) The SPE is the agency head's designee for the purposes of FAR 
28.101-1(c).


3428.106-6   Furnishing information.

    (c) The HCA is the agency head's designee for the purposes of FAR 
28.106-6(c).
0
53. Add subpart 3428.2 to read as follows:

Subpart 3428.2--Sureties and Other Securities for Bonds
Sec.
3428.203 Acceptability of individual surety.
3428.203-7 Exclusion of individual sureties.

Subpart 3428.2--Sureties and Other Securities for Bonds


3428.203   Acceptability of individual surety.

    (g) Evidence of possible criminal or fraudulent activities by an 
individual surety must be referred to the Assistant Inspector General 
for Investigations.


3428.203-7   Exclusion of individual sureties.

    The SPE is the agency head's designee for the purposes of FAR 
28.203-7.
0
54. A new part 3430 is added to subchapter E to read as follows:

PART 3430--COST ACCOUNTING STANDARDS ADMINISTRATION

Subpart 3430.2--CAS Program Requirements
Sec.
3430.201 Contract requirements.
3430.201-5 Waiver.


    Authority:  5 U.S.C. 301; 40 U.S.C. 121(c); and 41 U.S.C. 3102.

Subpart 3430.2--CAS Program Requirements


3430.201   Contract requirements.


3430.201-5   Waiver.

    (a) The SPE is the head of the agency for the purposes of FAR 
30.201-5(a) and (b).
0
55. A new part 3431 is added to subchapter E to read as follows:

PART 3431--CONTRACT COST PRINCIPLES AND PROCEDURES

Subpart 3431.1--Applicability
Sec.
3431.101 Objectives.
Subpart 3431.2--Contracts with Commercial Organizations
Sec.
3431.205 Selected costs.
3431.205-6 Compensation for personal services.
3431.205-70 Noncontractor meals.
3431.205-71 Noncontractor travel.
3452.205-72 Clearance of conferences/meetings.


    Authority:  5 U.S.C. 301; 40 U.S.C. 121(c); and 41 U.S.C. 3102.

Subpart 3431.1--Applicability


3431.101   Objectives.

    The SPE is the agency head's designee for the purposes of FAR 
31.101.

[[Page 41522]]

Subpart 3431.2--Contracts with Commercial Organizations


3431.205   Selected costs.


3431.205-6   Compensation for personal services.

    (g)(3) The HCA is the agency head's designee for the purposes of 
FAR 31.205-6(g)(3).


3431.205-70   Noncontractor meals.

    Insert the clause at 3452.231-70 (Food Costs) in solicitations and 
contracts that include meetings/conferences where personnel other than 
Federal or contractor employees will participate.


3431.205-71   Noncontractor travel.

    Insert the clause at 3452.231-71 (Travel Costs) in solicitations 
and contracts where meetings/conferences where personnel other than 
Federal or contractor employees will participate.


3431.205-72   Clearance of conferences/meetings.

    Insert the clause at 3452.231-72 (Clearance of Conferences/
Meetings) in solicitations and contracts where meetings/conferences are 
contemplated to be arranged by the contractor.

PART 3432--CONTRACT FINANCING

0
56. The authority citation for part 3432 continues to read as follows:

    Authority:  5 U.S.C. 301.

0
57. Add subparts 3432.0, 3432.1, and 3432.2 to read as follows:
Subpart 3432.0--Scope of Part
Sec.
3432.006 Reduction or suspension of contract payments upon finding 
of fraud.
3432.006-1 General.
3432.006-2 Definitions.
3432.006-3 Responsibilities.
3432.006-4 Procedures.
Subpart 3432.1--Noncommercial Item Purchase Financing
Sec.
3432.114 Unusual contract financing.
Subpart 3432.2--Commercial Item Purchase Financing
Sec.
3432.201 Statutory authority.

Subpart 3432.0--Scope of Part


3432.006   Reduction or suspension of contract payments upon finding of 
fraud.


3432.006-1   General.

    The SPE is the agency head for the purposes of FAR 32.006-1.


3432.006-2   Definitions.

    ``Remedy Coordination Official'' means the SPE.


3432.006-3   Responsibilities.

    (b) Department personnel must report immediately and in writing any 
apparent or suspected instance where the contractor's request for 
advance, partial, or progress payments is based on fraud. The report 
must be made to the Contracting Officer and the Assistant Inspector 
General for Investigations. The report must outline the events, acts, 
or conditions which indicate the apparent or suspected violation and 
include all pertinent documents. The Assistant Inspector General for 
Investigations must investigate, as appropriate. If appropriate, the 
Office of the Inspector General will provide a report to the SPE.


3432.006-4   Procedures.

    The SPE is the agency head for the purposes of FAR 32.006-4.

Subpart 3432.1--Noncommercial Item Purchase Financing


3432.114   Unusual contract financing.

    The SPE is the agency head for the purposes of FAR 32.114.

Subpart 3432.2--Commercial Item Purchase Financing


3432.201   Statutory authority.

    The HCA is the agency head for the purposes of FAR 32.201.
0
58. Add sections 3432.703 and 3432.703-3 to read as follows:


3432.703   Contract funding requirements.


3432.703-3   Contracts crossing fiscal years.

    (b) The HCA is the agency head for the purposes of FAR 32.703-3(b).
0
59. Add subpart 3432.9 to read as follows:
Subpart 3432.9--Prompt Payment
Sec.
3432.902 Definitions.
3432.906 Making payments.

Subpart 3432.9--Prompt Payment


3432.902   Definitions.

    Delivery Date. The date on which a product or service is deemed 
received by the Government. Delivery of any product or service after 
4:30 p.m. local time will be deemed to have been received on the next 
calendar day for the purpose of computing the prompt payment date.


3432.906   Making payments.

    (a) General. The HCA is the agency head for the purposes of FAR 
32.906(a).

PART 3433--PROTESTS, DISPUTES, AND APPEALS

0
60. The authority citation for part 3433 continues to read as follows:

    Authority:  5 U.S.C. 301.

0
61. Revise section 3433.103 to read as follows:


3433.103   Protests to the agency.

    (d)(4) The independent review as described in FAR 33.103(d)(4) must 
be performed by the Competition Advocate for the contracting activity.
    (f) Action upon receipt of protest.
    (1) For protests filed with the Department and received before 
award, the contracting office must first obtain the advice of the 
Office of the General Counsel when determining to proceed with the 
contract award. The determination must be approved by the HCA. In those 
cases where the Contracting Officer is also the HCA, the determination 
must be approved by the SPE.
    (3) For protests filed with the Department and received after 
award, the Contracting Officer must first obtain the advice of OGC 
before determining that continued performance is justified. The 
determination must be approved by the HCA. In those cases where the 
Contracting Officer is also the HCA, the determination must be approved 
by the SPE.
0
62. Add section 3433.104 to read as follows:


3433.104   Protests to GAO.

    (a) General procedures. Contracting activities must consult OGC for 
guidance before taking any actions in response to a protest to GAO.
0
63. Add subpart 3433.2 to read as follows:

Subpart 3433.2--Disputes and Appeals
Sec.
3433.203 Applicability.
3433.211 Contracting Officer's decision.

Subpart 3433.2--Disputes and Appeals


3433.203   Applicability.

    The SPE is the agency head for the purposes of FAR 33.203(b).


3433.211  Contracting Officer's decision.

    Prior to issuing a Contracting Officer's final decision, the 
Contracting Officer should obtain assistance, when appropriate, from 
the Office of the General Counsel.
0
64. A new part 3434 is added to subchapter F to read as follows:

[[Page 41523]]

PART 3434--MAJOR SYSTEM ACQUISITION

Subpart 3434.0--General
Sec.
3434.003 Responsibilities.
3434.005 General requirements.
3434.005-6 Full production.

    Authority: 5 U.S.C. 301.

Subpart 3434.0--General


3434.003  Responsibilities.

    (a) The SPE is the agency head's designee for the purposes of FAR 
34.003(a).
    (b) The SPE is the agency head for the purposes of FAR 34.003(c) 
and the acquisition executive for the purposes of OMB Circular No. A-
109.


3434.005  General requirements.


3434.005-6  Full production.

    The SPE is the agency head's designee for the purposes of FAR 
34.005-6.

PART 3437--SERVICE CONTRACTING

0
65. The authority citation for part 3437 continues to read as follows:

    Authority: 5 U.S.C. 301 and 20 U.S.C. 1018a.

0
66. Revise subpart 3437.2 to read as follows:
Subpart 3437.2--Advisory and Assistance Services
Sec.
3437.204 Guidelines for determining availability of personnel.
3437.270 Services of consultants clause.

Subpart 3437.2--Advisory and Assistance Services


3437.204  Guidelines for determining availability of personnel.

    The HCA is the agency head for the purposes of FAR 37.204.


3437.270  Services of consultants clause.

    The Contracting Officer must insert the clause at 3452.237-70 
(Services of consultants) in all solicitations and resultant cost-
reimbursement contracts for consultant services that do not provide 
services to FSA.
0
67. Add section 3437.601 to read as follows:


3437.601  General.

    It is the Department's policy that all new service contracts be 
performance-based, with clearly defined deliverables and performance 
standards. Any deviations from this policy must be fully justified in 
writing and approved by the Departmental Department's Competition 
Advocate.

PART 3439--ACQUISITION OF INFORMATION TECHNOLOGY

0
68. The authority citation for part 3439 continues to read as follows:

    Authority: 5 U.S.C. 301 and 20 U.S.C. 1018a.


Section 3439.701  [Removed]

0
69. Remove section 3439.701.

PART 3442--CONTRACT ADMINISTRATION AND AUDIT SERVICES

0
70. The authority citation for part 3442 continues to read as follows:

    Authority: 5 U.S.C. 301.

0
71. Subpart 3442.6 is added to read as follows:
Subpart 3442.6--Corporate Administrative Contracting Officer
Sec.
3442.602 Assignment and location.

Subpart 3442.6--Corporate Administrative Contracting Officer


3442.602  Assignment and location.

    The SPE is the agency head's designee for the purposes of FAR 
42.602(a).
0
72. Subpart 3442.7 is added to read as follows:
Subpart 3442.7--Indirect Cost Rates
Sec.
3442.703 General.


3442.703-2  Certificate of indirect costs.

Subpart 3442.7--Indirect Cost Rates


3442.703  General.


3442.703-2  Certificate of indirect costs.

    (b) The HCA is the agency head's designee for the purposes of FAR 
42.703-2(b).
0
73. Revise section 3442.7101 to read as follows:


3442.7101  Policy and clause.

    (b) The Contracting Officer must insert the clause at 3452.242-73 
(Accessibility of meetings, conferences, and seminars to persons with 
disabilities) in all solicitations and contracts where conferences are 
contemplated.
0
74. A new part 3444 is added to subchapter G to read as follows:

PART 3444--SUBCONTRACTING POLICIES AND PROCEDURES

Subpart 3444.3--Contractor's Purchasing System Reviews
Sec.
3444.302 Requirements.

    Authority: 5 U.S.C. 301.

Subpart 3444.3--Contractor's Purchasing System Reviews


3444.302  Requirements.

    (a) The SPE is the head of the agency for the purposes of FAR 
44.302(a).

PART 3447--TRANSPORTATION

0
75. The authority citation for part 3447 continues to read as follows:

    Authority: 5 U.S.C. 301.

0
76. Section 3447.701 is revised to read as follows:


3447.701  Foreign travel clause.

    The Contracting Officer must insert the clause at 3452.247-70 
(Foreign travel) in all solicitations and resultant cost reimbursement 
contracts where foreign travel is contemplated.
0
77. A new part 3448 is added to subchapter G to read as follows:

PART 3448--VALUE ENGINEERING

Subpart 3448.1--Policies and Procedures
Sec.
3448.102 Policies.
Subpart 3448.2--Contract Clauses
Sec.
3448.201 Clauses for supply or service contracts.

    Authority: 5 U.S.C. 301.

Subpart 3448.1--Policies and Procedures


3448.102  Policies.

    (a) The authority to grant exemptions prescribed in FAR 48.102(a), 
or to extend future contract savings or sharing pursuant to FAR 
48.102(g), is delegated, without power of redelegation, to the HCA.

Subpart 3448.2--Contract Clauses


3448.201  Clauses for supply or service contracts.

    The authority to determine exemptions prescribed in FAR 
48.201(a)(6) is delegated, without power of redelegation, to the HCA.

PART 3452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
78. The authority citation for part 3452 continues to read as follows:

    Authority: 5 U.S.C. 301.

0
79. Add section 3452.204-70 to read as follows:


3452.204-70  Maintenance and retention of government-owned/contractor-
held Federal records.

    As prescribed in 3404.7001, insert the following clause:

[[Page 41524]]

Maintenance and Retention of Government-Owned/Contractor-Held Federal 
Records (April 2012)
    (a) Government-Owned/Contractor-Held Federal Records. ``Government-
Owned/Contractor-Held Federal Records'' include all records or data, 
regardless of format or media, created or produced under this contract, 
whether or not provided to the Government as a contract deliverable, 
that document contractor-operated Government activities and programs. 
Government-Owned/Contractor-Held Federal records may not include those 
Contractor records that relate exclusively to the contractor's internal 
business or are of a general nature not specifically related to the 
performance of work under the contract or to the underlying Government 
activity/program. The contractor's general policies, procedures, etc., 
that apply to the general conduct of its business do not fall under the 
purview of this clause. When in doubt, the Contractor must seek the 
Contracting Officer's determination as to which records are subject to 
this clause.
    (b) Records Maintenance and Retention. The contractor must create, 
maintain, safeguard, and ensure final disposition of all Government-
Owned/Contractor-Held Federal records generated in connection with this 
contract in accordance with the Federal Records Act, (44 U.S.C. 
Chapters 21, 29, 31, 33), National Archives and Records Administration 
(NARA) regulations (36 CFR parts 1220-1239), Records Management and the 
NARA-approved records disposition schedules including the Department's 
Records Retention and Disposition Schedules (OM:6-106, 11/16/2007) and 
the Department's Records and Information Management Program (OM:6-103, 
01/30/2007). Maintenance of Government Owned/Contractor-Held Federal 
records, includes, but is not limited to, storage in accordance with 
NARA storage requirements (regardless of whether stored in contractor-
owned or leased space), retrievability, and ensuring final disposition, 
including secure transfer of Federal records to a NARA-approved 
facility in a media neutral format and manner acceptable to NARA and 
the Department at the time of transfer. As directed by the Contracting 
Officer, the contractor must obtain prior approval from the Contracting 
Officer to destroy or remove records subject to this clause.
    (c) Segregation of Records. The contractor must ensure that 
Government-Owned/Contractor-Held Federal records are segregated from 
company-owned records and from nonrecord materials. This clause 
operates independently from and is not intended to affect, or be 
affected by, the contractor records provisions contained in FAR subpart 
4.7 and the clauses referenced therein.
    (d) Coordination with Records Manager. The contractor, through the 
Contracting Officer, must coordinate with the Program Records Officer 
(PRO) and the Department's Records Officer (RO), on matters requiring 
advice, such as marking and segregating such records, or technical 
assistance in all areas of management pertaining to such records.
    (e) Contract Completion or Termination. Upon contract completion or 
termination, the contractor must ensure final disposition of all 
Government-Owned/Contractor-Held Federal records to a Federal Record 
Center, NARA, to a successor contractor, its designee, or other 
destinations, as directed by the Contracting Officer. Contractor is 
responsible for the secure disposition of records, which include but is 
not limited to, the secure transport and temporary housing of all 
records.
    (f) Inspection and Audit. All Government-Owned/Contractor-Held 
Federal records are subject to inspection, copying and audit by the 
Government or its designee(s) at all reasonable times to ensure records 
are maintained in accordance with applicable records management laws 
and regulations. The contractor must afford the Government or its 
designee(s) reasonable facilities for such inspection, copying, and 
audit; provided, however, that upon request by the Contracting Officer, 
the contractor must deliver such records to a location specified by the 
Contracting Officer.
    (g) Applicability. This clause applies to all Government-Owned/
Contractor-Held Federal records maintained by the contractor without 
regard to the date or origination of such records including all records 
acquired from a predecessor contractor.
    (h) Subcontracts. The contractor must include the requirements of 
this clause in all subcontracts awarded in association with this 
contract.
0
80. In section 3452.216-71, revise paragraph (e) of the award-term 
clause to read as follows:


3452.216-71  Award-Term.

* * * * *
    (e) The contract term or ordering period requires bilateral 
modification to reflect the ATRB's decision to award and the 
contractor's agreement to accept an Award Term. If the contract term or 
ordering period has one year remaining, the operation of the contract 
Award Term feature will cease and the contract term or ordering period 
will not extend beyond the maximum term stated in the contract.
* * * * *
0
81. Add section 3452.217-70 to read as follows:


3452.217-70  Evaluation of options to include award terms.

    As prescribed in 3417.208(c), insert a provision substantially the 
same as the following:

EVALUATION OF OPTIONS TO INCLUDE AWARD TERMS (MAY 2013)

    This solicitation includes four optional periods of performance 
and up to four award terms. In accordance with the clause at 
3452.216.71, award terms must immediately follow the period in which 
the award term is earned, thereby pushing out remaining option 
periods each time an award term is earned. By identifying prices in 
Schedule B for periods of performance, the offeror agrees that 
subject prices apply to either the option periods of performance, or 
award terms, as appropriate.
    Except when it is determined not to be in the Government's best 
interest, the Government will evaluate offers for award purposes by 
adding the total price for all options and potential award term 
periods to the total price of the basic requirement. Evaluation of 
options and award terms will not obligate the Government to exercise 
the options, nor extend the award term if the conditions at EDAR 
3416.470(f) apply.

Schedule B

CLIN 0001 Base period of performance
CLIN 0002 Base + one year (option or award term)
CLIN 0003 Base + two years (option or award term)
CLIN 0004 Base + three years (option or award term)
CLIN 0005 Base + four years (option or award term)
CLIN 0006 Base + five years (option or award term)
CLIN 0007 Base + six years (option or award term)
CLIN 0008 Base + seven years (option or award term)
CLIN 0009 Base + eight years (option)
[END OF CLAUSE]

0
82. Add section 3452.219-70 to read as follows:


3452.219-70  Evaluation preference--targeted socioeconomic categories.

EVALUATION PREFERENCE--TARGETED SOCIOECONOMIC CATEGORIES (MAY 2013)

    As prescribed in 3419.70, insert a provision substantially the 
same as the following:
    This clause is to be read in harmony with any other evaluation 
clause incorporated. Preference provided under this clause takes 
precedence and all other clauses for the evaluation of offers hereby 
incorporate the

[[Page 41525]]

preference of the targeted socioeconomic categories contained 
herein.
    In order to help meet its socioeconomic goals, Offerors are 
advised that the Department of Education has identified this 
acquisition as one that has an evaluation preference for 
Historically Underutilized Business Zone (HUBZone) small businesses 
and Service-Disabled Veteran-Owned small businesses (SDVOSB). For 
evaluation purposes only, quotes received from HUBZone or SDVOSB 
small businesses will be reduced by 10 percent. Once reduced, all 
quotes or offers received as a result of this solicitation will be 
evaluated for award and award will be made to that offeror or quoter 
that offers the lowest evaluated price, technically acceptable 
solution.
[END OF CLAUSE]

0
83. Add section 3452.231-70 to read as follows:


3452.231-70  Food costs.

    As prescribed in 3431.205-70, insert a provision substantially the 
same as the following:

FOOD COSTS (MAY 2013)

    No food may be provided under this contract or in association 
with this contract unless consent is provided below. The cost of 
food under this contract is unallowable unless the contractor 
receives written consent from the Contracting Officer prior to the 
incurrence of the cost. If the contractor wishes to be reimbursed 
for a food cost, there must be a request in writing at least 21 days 
prior to the day that costs would be incurred. The contractor must 
include in its request the following: the purpose of the event at 
which the food will be served, why the food is integral to fulfill a 
Government requirement in the contract, and the proposed costs. The 
lack of a timely response from the Contracting Officer must not 
constitute constructive acceptance of the allowability of the 
proposed charge. Fill-in Consent is hereby given to the contractor 
to ----------.
[END OF CLAUSE]

0
84. Add section 3452.231-71 to read as follows:


3452.231-71  Travel costs.

    As prescribed in 3431.205-71, insert a provision substantially the 
same as the following:

TRAVEL COSTS (MAY 2013)

    No invitational travel (defined as: Official Government travel 
conducted by a non-Federal employee in order to provide a ``Direct 
Service'' [i.e., presenting on a topic, serving as a facilitator, 
serving on a Federal Advisory Committee Act, or advising in an area 
of expertise] to the Government) may be provided under this contract 
or in association with this contract unless consent is provided 
below. The cost of invitational travel under this contract is 
unallowable unless the contractor receives written consent from the 
Contracting Officer prior to the incurrence of the cost. If the 
contractor wishes to be reimbursed for a cost related to 
invitational travel, a request must be in writing at least 21 days 
prior to the day that costs would be incurred. The contractor must 
include in its request the following: Why the invitational travel 
cost is integral to fulfill a Government requirement in the 
contract, and the proposed cost that must be in accordance with 
Federal Travel Regulations. The lack of a timely response from the 
Contracting Officer must not constitute constructive acceptance of 
the allowability of the proposed charge.

Consent is hereby given to the contractor to ------------.
[END OF CLAUSE]

0
85. Add section 3452.231-72 to read as follows:


3452.231-72  Clearance of conferences/meetings.

    As prescribed in 3431.205-72, insert a provision substantially the 
same as the following:

CLEARANCE OF CONFERENCES/MEETINGS (MAY 2013)

    Any hotel/venue contract that the Contractor negotiates must be 
reviewed by and receive concurrence from an Event Services Team 
member prior to final agreement. The Event Services staff can be 
contacted at (202) 401-3679 or [email protected].
    Comps: The Contractors' efforts to obtain comps on behalf of the 
Department will focus primarily on meeting rooms, audio-visual 
equipment, etc. The Contractor does not have authority to negotiate 
or accept room upgrades for Department or Contractor staff.
    Dual Compensation: Contractors are prohibited from receiving 
compensation from both the Department and any other source for 
conference planning performed pursuant to the terms of this 
Contract. If the vendor receives any compensation from another 
source as a result of conference services performed for the 
Department, the Contractor will report this compensation to the 
Contracting Officer and offset its invoice to the Department in an 
equal amount.
[END OF CLAUSE]


Section 3452.239-70  [Removed]

0
86. Remove section 3452.239-70.
0
87. Add subpart 3452.3, to read as follows:
Subpart 3452.3--Provision and Clause Matrix
Sec.
3452.301 Solicitation provisions and contract clauses (Matrix).

Subpart 3452.3--Provision and Clause Matrix


3452.301  Solicitation provisions and contract clauses (Matrix).

    (a) The following matrix provides a summary of provisions and 
clauses contained in the EDAR and their appropriate use. For each 
provision or clause listed, the matrix provides--
    (1) Whether incorporation by reference is or is not authorized (see 
FAR 52.102);
    (2) The section of the Uniform Contract Format (UCF) in which it is 
to be located, if it is used in an acquisition that is subject to the 
UCF;
    (3) Its number;
    (4) The citation of the EDAR text that prescribes its use; and
    (5) Its title.
    (b) Because the matrix does not provide sufficient information to 
determine the applicability of a provision or clause in the ``required-
when-applicable'' and ``optional'' categories, contracting officers 
must refer to the EDAR text (cited in the matrix) that prescribes its 
use and the specific circumstances of the requirement being procured.

                                   Key
------------------------------------------------------------------------
       Type of contract                     Contract purpose
------------------------------------------------------------------------
P or C = Provision or Clause    R = Required.
IBR = Is Incorporation by       A = Required when Applicable.
 Reference Authorized?.         O = Optional.
UCF = Uniform Contract Format
 Section, When Applicable.
FP SUP = Fixed-Price Supply
CR SUP = Cost-Reimbursement
 Supply
FP R&D = Fixed-Price Research
 & Development
CR R&D = Cost-Reimbursement
 Research & Development
FP SVC = Fixed-Price Service
CR SVC = Cost-Reimbursement
 Service
FP CON = Fixed-Price
 Construction
CR CON = Cost-Reimbursement
 Construction
T&M LH = Time & Materials/
 Labor Hours
LMV = Leasing of Motor
 Vehicles

[[Page 41526]]

 
COM SVC = Communication
 Services
DDR = Dismantling, Demolition,
 or Removal of Improvements
A&E = Architect-Engineering
FAC = Facilities
IND DEL = Indefinite Delivery
TRN = Transportation
SAP = Simplified Acquisition
 Procedures (excluding micro-
 purchases)
UTL SVC = Utility Services
CI = Commercial Items
 
------------------------------------------------------------------------

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[FR Doc. 2014-15695 Filed 7-15-14; 8:45 am]
BILLING CODE 4000-01-C