[Federal Register Volume 83, Number 80 (Wednesday, April 25, 2018)]
[Proposed Rules]
[Pages 17979-17987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07130]


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DEPARTMENT OF VETERANS AFFAIRS

48 CFR Parts 829, 846, 847, 852, and 870

RIN 2900-AQ04


Revise and Streamline VA Acquisition Regulation

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) is proposing to amend 
and update its VA Acquisition Regulation (VAAR) in phased increments to 
revise or remove any policy superseded by changes in the Federal 
Acquisition Regulation (FAR), to remove procedural guidance internal to 
VA into the VA Acquisition Manual (VAAM), and to incorporate any new 
agency specific regulations or policies. These changes seek to 
streamline and align the VAAR with the FAR and remove outdated and 
duplicative requirements and reduce burden on contractors. The VAAM 
incorporates portions of the removed VAAR as well as other internal 
agency acquisition policy. VA will rewrite certain parts of the VAAR 
and VAAM, and as VAAR parts are rewritten, we will publish them in the 
Federal Register. VA will combine related topics, as appropriate. In 
particular, this rulemaking revises VAAR Parts 829--Taxes, 846--Quality 
Assurance, and 847--Transportation, as well as affected Parts 852--
Solicitation Provisions and Contract Clauses and 870--Special 
Procurement Controls.

DATES: Comments must be received on or before June 25, 2018 to be 
considered in the formulation of the final rule.

ADDRESSES: Written comments may be submitted through 
www.Regulations.gov; by mail or hand-delivery to Director, Regulation 
Policy and Management (00REG), Department of Veterans Affairs, 810 
Vermont Avenue NW, Room 1063B, Washington, DC 20420; or by fax to (202) 
273-9026 (this is not a toll-free number). Comments should indicate 
that they are submitted in response to ``RIN 2900-AQ04--Revise and 
Streamline VA Acquisition Regulation--Parts 829, 846, 847.'' Copies of 
comments received will be available for public inspection in the Office 
of Regulation Policy and Management, Room 1063B, between the hours of 
8:00 a.m. and 4:30 p.m., Monday through Friday (except holidays). 
Please call (202) 461-4902 for an appointment. (This is not a toll-free 
number.) In addition, during the comment period, comments may be viewed 
online through the Federal Docket Management System (FDMS) at 
www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mr. Rafael N. Taylor, Senior 
Procurement Analyst, Procurement Policy and Warrant Management 
Services, 003A2A, 425 I Street NW, Washington, DC 20001, (202) 382-
2787. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION:

Background

    This rulemaking is issued under the authority of the Office of 
Federal Procurement Policy (OFPP) Act, which provides the authority for 
an agency head to issue agency acquisition regulations that implement 
or supplement the FAR.
    VA is proposing to revise the VAAR to add new policy or regulatory 
requirements and to remove any redundant guidance and guidance that is 
applicable only to VA's internal operating processes or procedures. 
Codified acquisition regulations may be amended and revised only 
through rulemaking. All amendments, revisions, and removals have been 
reviewed and concurred with by VA's Integrated Product Team of agency 
stakeholders.
    The VAAR uses the regulatory structure and arrangement of the FAR 
and headings and subject areas are broken up consistent with the FAR 
content. The VAAR is divided into subchapters, parts (each of which 
covers a separate aspect of acquisition), subparts, sections, and 
sections.
    The Office of Federal Procurement Policy Act, as codified in 41 
U.S.C. 1707, provides the authority for the Federal Acquisition 
Regulation and for the issuance of agency acquisition regulations 
consistent with the FAR.
    When Federal agencies acquire supplies and services using 
appropriated funds, the purchase is governed by the FAR, set forth at 
Title 48 Code of Federal Regulations (CFR), chapter 1, parts 1 through 
53, and the agency regulations that implement and supplement the FAR. 
The VAAR is set forth at Title 48 CFR, chapter 8, parts 801 to 873.

Discussion and Analysis

    VA proposes to make the following changes to the VAAR in this phase 
of its revision and streamlining initiative. For procedural guidance 
cited below that is proposed to be deleted from the VAAR, each section 
cited for removal has been considered for inclusion in VA's internal 
agency operating procedures in accordance with FAR 1.301(a)(2). 
Similarly, delegations of authority that

[[Page 17980]]

are removed from the VAAR will be included in the VA Acquisition Manual 
(VAAM) as internal agency guidance.

VAAR Part 829--Taxes

    We propose to revise the part 829 authorities to include the 
applicable U.S. code citations where the Secretary of the Treasury has 
exempted spirits and alcohol purchases by the Federal government, 
pursuant to 26 U.S.C. 5214(a)(2), 26 U.S.C. 5271, and 26 U.S.C. 7510. 
We also propose to include an updated positive law codification of 
Title 41 authority--41 U.S.C.1303(a)(2), to reflect additional 
authority of VA as an executive agency to issue regulations that are 
essential to implement Government-wide policies and procedures, as well 
as to issue additional policies and procedures required to satisfy VA's 
specific needs.
    In subpart 829.2, Federal Excise Taxes, we propose to redesignate 
829.202-70, Tax exemptions for alcohol products, as 829.203-70, Tax 
exemptions for alcohol products. We propose to revise paragraphs (a), 
(b) and (c) to reflect updated legislative and regulatory citations, to 
include 26 U.S.C. 5214(a)(2), 26 U.S.C. 5271, and 27 CFR parts 1-39. We 
also propose to remove paragraph (d) since there is no free of tax 
provision for beer in the Department of the Treasury regulation. This 
revised structure would conform more closely to the FAR structure of 
part 29, and moves to the VAAM the internal procedural instructions to 
the contracting officer regarding obtaining new permits. We also 
propose to remove the number and title of 829.202, General exemptions, 
since its sole section is proposed for removal.
    We propose to remove 829.302, Application of State and local taxes 
to the Government, and move it to the VAAM as internal procedural 
guidance to the contracting officer.
    We propose to remove 829.302-70, Purchases made from patients' 
funds, which prescribes 852.229-70, Sales or Use Taxes, as obsolete and 
redundant of FAR 52.212-4, Contract Terms and Conditions--Commercial 
Items clause, paragraph (k), which requires contractors to include 
``all applicable Federal, State, and local taxes and duties.'' While VA 
uses the personal funds of patients to maintain fiscal controls and 
accountability, such controls are administrative in nature and 
unrelated to contracting.
    We propose to add 829.303, Application of State and local taxes to 
Government contractors and subcontractors, to delegate to the Head of 
the Contracting Activity (HCA), without power of redelegation, the 
authority to make the determination prescribed in FAR 29.303(a).

VAAR Part 846--Quality Assurance

    In new subpart 846.1, General, we propose to add 846.101, 
Definition, to explain the term ``rejected goods'' since that term is 
the subject of a revised clause at 852.246-71, Rejected goods.
    We propose to revise subpart 846.3, Contract Clauses, to remove 
846.302-70, Guarantee clause, which prescribes 852.246-70, Guarantee, 
because there are sufficient FAR warranty clauses that could be used, 
such as FAR clause 52.246-19, Warranty of Systems and Equipment under 
Performance Specifications or Design Criteria.
    We propose to remove 846.302, Fixed-price supply contracts, and add 
846.370, Clauses for supplies, equipment or perishable goods, as the 
current VAAR numbering convention for subpart 846.3, Contract Clauses, 
does not align with the FAR subpart 46.3, Contract Clauses.
    We propose to revise 846.312, Construction contracts, to remove a 
duplicate contract clause number.
    We propose to add 846.370, Clauses for supplies, equipment or 
perishable goods. The analysis of the current VAAR revealed that the 
present VAAR numbering convention for subpart 846.3, Contract Clauses, 
does not align with FAR subpart 46.3, Contract clauses. For example, 
FAR 46.302 deals solely with fixed-price supply contracts and the 
current sections which prescribe these clauses (e.g., 846.302-70, 
Guarantee clause; 846.302-71, Inspection; 846.302-72, Frozen processed 
foods; and 846.302-73. Noncompliance with packaging, packing and/or 
marking requirements) could include both cost and fixed price types of 
contracts. Therefore, it became necessary to remove these sections and 
move them to the proposed new section, 846.370, which supplements the 
FAR coverage at subpart 46.3. Accordingly, we propose to add the 
following sections prescribing clauses for cost and fixed-price type 
contracts:
    846.370-1, Rejected goods, (formerly 846.302-71, Inspection), which 
would prescribe the clause 852.246-71, Rejected Goods, and clarify a 
contractor's obligations to remove goods rejected by the Government.
    846.370-2, Frozen processed foods (formerly 846.302-72), which 
would prescribe clause 852.246-72, Frozen Processed Foods, and describe 
the requirements for safe handling of frozen foods.
    846.370-3, Noncompliance with packaging, packing and/or marking 
requirements (formerly 846.302-73), which would prescribe clause 
852.246-73, Noncompliance with Packaging, Packing and/or Marking 
Requirements, describing corrective steps for compensating the 
Government in the case of non-compliance.
    We propose to add 846.370-4, Purchase of Shellfish, formerly 
870.111-3, to conform to the FAR requirement to place clauses and their 
prescriptions in the appropriate parts, and would prescribe clause 
852.246-76, Purchase of Shellfish, and describe the requirements for 
safe handling of shellfish.
    We propose to revise subpart 846.4, Government Contract Quality 
Assurance.
    In section 846.408, Single-agency assignments of Government 
contract quality assurance (no text), we propose to remove the single 
title as it is unnecessary.
    We propose to amend 846.408-70, Inspection of subsistence, to 
remove paragraph (a) since FAR 46.408 identifies the Food and Drug 
Administration, the Department of Agriculture and the National Maritime 
Fisheries Service of the Department of Commerce as the entities to 
perform inspection. We also propose to remove paragraph (c) since it 
contains procedural guidance that is internal to VA and will be updated 
and moved to the VAAM, and to simplify the requirements in paragraph 
(d) that are the contractor's responsibilities, eliminating parts of 
paragraph (3) and all of (4). Paragraphs throughout the section will be 
appropriately renumbered.
    We propose to remove 846.408-71, Waiver of USDA inspection and 
specifications, since no other agencies, including the Department of 
Agriculture, still require this type of inspection for subsistence.
    We propose to remove the existing text of 846.471, Determination 
authority, since the authority it grants is provided to the contracting 
officer in 846.470. We propose to revise the title of 846.471, to now 
read, ``Food service equipment,'' formerly at 870.115. This conforms to 
the FAR requirement to place clauses and their prescriptions in the 
appropriate parts, and to require all dietetic food service equipment 
to meet National Sanitation Foundation (NSF) standards.
    We propose to remove 846.472, Inspection of repairs for properties 
under the Loan Guaranty Program and Direct Loan Programs, and its two 
sections, 846.472-1, Repairs of $1,000 or less, and 846.472-2, Repairs 
in excess of $1,000. Such sections are unnecessary given that a private

[[Page 17981]]

contractor performs such inspection and repair functions on VA's 
behalf. The contractor's authority to perform these functions is 
established by other provisions of law.
    In subpart 846.7, Warranties, we propose to remove 846.710, 
Contract clauses, since it redundantly prescribes a clause in FAR. We 
also propose to delete the two sections: 846.710-70, Special 
warranties, as repetitive of FAR clause coverage, and 846.710-71, 
Warranty for construction--guarantee period services, which has been 
replaced by 846.702-70, Guarantee period services and specifications.
    We propose to add 846.702-70, Guarantee period services and 
specifications, to state VA's policy regarding guarantee period 
services, and to prescribe a clause, 852.246-75, Warranty of 
Construction--Guarantee Period Services, in all solicitations and 
contracts for construction that include the FAR clause 52.246-21, 
Warranty of Construction.

VAAR Part 847--Transportation

    We propose to amend the authority citation for part 847 to add 41 
CFR part 102-117. This CFR reference pertains to ``Transportation 
Management'' and it has relevance to part 847.
    We propose to add subpart 847.2, Contracts for Transportation or 
for Transportation-Related Services. This new subpart would be 
comprised of new section 847.207, Solicitation provisions, contract 
clauses, and special requirements, and the following sections:
    847.207-8, Government responsibilities, which would provide 
guidance to contracting officers for VA transportation contracts and 
subsequent payments on those contracts, and 847.207-70, VA solicitation 
provisions, contract clauses, and special requirements, which would 
provide guidance on contractual requirements for insurance provisions 
and contractor personnel performing on VA transportation contracts.
    We propose to revise subpart 847.3, Transportation in Supply 
Contracts, by adding 847.302, Place of delivery--F.o.b. point. This 
section would specify delivery locations, in addition to referencing a 
new corresponding clause, to be inserted in supply contracts when it is 
necessary to specify delivery locations. This new section would help 
eliminate confusion by specifying exact delivery locations, so there 
would be a better representation of delivery scheduling and pricing.
    Under subpart 847.3, we propose to remove the following sections as 
they include internal guidance and will be considered for revision and 
placement in the VAAM:
    847.303, Standard delivery terms and contract clauses.
    847.303-1, F.o.b. origin.
    847.303-70, F.o.b. origin, freight prepaid, transportation charges 
to be included on the invoice.
    Under 847.305, Solicitation provisions, contract clauses, and 
transportation factors, we propose to add 847.305-10, Packing, marking, 
and consignment instructions. This new section would specify 
consignment instructions, and would prescribe new clauses to be 
included in VAAR Part 852. It would cover those areas of shipping and 
marking that may not otherwise be covered, and are not covered in the 
FAR. We propose to add new section 847.305-70, Potential destinations 
known but quantities unknown, which prescribes clause 852.247-70, 
Determining Transportation Costs for Evaluation of Offers, when the 
contracting officer contracts with multiple bidders to provide items 
directly to VA field installations, on an F.o.b. origin basis.
    We propose to add new section 847.305-71, VA contract clauses. This 
section references new clauses to the VAAR that are used for both free 
on board (F.o.b.) origin and F.o.b. destination, ensuring proper 
receipt and documentation of shipments.
    We propose to remove 847.306-70, Transportation payment and audit, 
and replace it with 847.306-70, Records of claims. This new section 
recommends that the contracting officer use an offeror's record of 
claims involving loss or damage as an evaluation factor or subfactor 
for VA transportation contracts.

VAAR Part 852--Solicitation Provisions and Contract Clauses

    In subpart 852.2, Texts of Provisions and Clauses, we propose to 
remove clause 852.229-70, Sales or Use Taxes, as obsolete and redundant 
of FAR clause 52.212-4, Contract Terms and Conditions--Commercial 
Items, paragraph (k), which would require contractors to include all 
applicable Federal, State, and local taxes and duties.
    We propose to remove 852.246-70, Guarantee, as redundant of the 
coverage of warranties by several clauses in FAR sections 52.246-17 
through 52.246-21, and to reserve the section number.
    We propose to revise 852.246-71, Inspection, to retitle it as 
``Rejected Goods'' to more accurately reflect the content; to revise 
the citation where it is prescribed; and to make other minor edits for 
clarity.
    We propose to revise 852.246-72, Frozen Processed Foods, to revise 
the prescription citation.
    We propose to revise 852.246-73, Noncompliance with Packaging, 
Packing, and/or Marking Requirements, to revise the prescription 
citation, and to make one minor edit.
    We propose to remove 852.246-74, Special Warranties, as redundant 
of the coverage of warranties by several clauses in FAR sections 
52.246-17 through 52.246-21, and to reserve the section number.
    We propose to amend 852.246-75, Warranty of Construction--Guarantee 
Period Services, to revise the prescription citation, and to make one 
minor edit for clarity.
    We propose to add 852.246-76, Purchase of Shellfish, formerly 
852.270-3, to conform to the FAR requirement to place clauses and their 
prescriptions in the appropriate parts, and to make one minor edit for 
clarity.
    We propose to amend 852.247-70 to revise its title to ``Determining 
Transportation Costs for Evaluation of Offers'' which would make it 
applicable to negotiated as well as sealed bid contracts.
    We propose to add 852.247-71, Delivery Location. This new clause 
would ensure that the proper delivery locations are included in the 
contract, for accountability, tracking, and delivery.
    We propose to add 852.247-72, Marking Deliverables. This new clause 
would ensure that packages are properly marked for tracking, delivery, 
and acceptance purposes.
    We propose to add 852.247-73, Packing for Domestic Shipment. This 
new clause would ensure acceptance by common carriers and safe delivery 
at destination.
    We propose to add 852.247-74, Advance Notice of Shipment. This new 
clause would be used when the F.o.b. point is destination, and special 
Government assistance is required in the delivery or receipt of the 
items.
    We propose to add 852.247-75, Bills of Lading, which would define 
when a commercial or Government bill of lading is to be used when 
shipments of deliverable items under this contract are F.o.b. origin.
    We propose to delete 852.270-2, Bread and Bakery Products--
Quantities, as unnecessary since variations in quantities is adequately 
covered in FAR subpart 11.7, Variation in Quantity, and in its related 
clauses.
    We propose to delete 852.270-3, Purchase of Shellfish, and move it 
to 852.246-76 to conform to the FAR

[[Page 17982]]

requirement to place clauses and their prescriptions in the appropriate 
parts.

VAAR Part 870--Special Procurement Controls

    We propose to delete 870.111-3, Contract clauses, since paragraph 
(a) prescribes the clause 852.270-2, Bread and Bakery Products--
Quantities, which is unnecessary since variations in quantities is 
adequately covered in FAR subpart 11.7 and in its related clauses, and 
paragraph (b), which prescribes the clause 852.270-3, Purchase of 
Shellfish, and which is proposed to be moved to new section 852.246-76 
to conform to the FAR requirement to place clauses and their 
prescriptions in the appropriate parts.
    We propose to remove 870.111-5, Frozen processed food products, 
which is proposed to be moved to 846.370-2.
    We propose to remove 870.115, Food service equipment, which is 
proposed to be moved to 846.471.
    We propose to reserve part 870 since all sections and sections have 
either been proposed for deletion or removal to other parts of the 
VAAR.

Effect of Rulemaking

    Title 48, Federal Acquisition Regulations System, Chapter 8, 
Department of Veterans Affairs, of the Code of Federal Regulations, as 
proposed to be revised by this rulemaking, would represent VA's 
implementation of its legal authority and publication of the VAAR for 
the cited applicable parts. Other than future amendments to this rule 
or governing statutes for the cited applicable parts, or as otherwise 
authorized by approved deviations or waivers in accordance with FAR 
subpart 1.4, Deviations from the FAR, and as implemented by VAAR 
subpart 801.4, Deviations from the FAR or VAAR, no contrary guidance or 
procedures would be authorized. All existing or subsequent VA guidance 
would be read to conform with the rulemaking if possible or, if not 
possible, such guidance would be superseded by this rulemaking as 
pertains to the cited applicable VAAR parts.

Executive Orders 12866, 13563 and 13771

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
E.O. 12866, Regulatory Planning and Review, defines ``significant 
regulatory action'' to mean any regulatory action that is likely to 
result in a rule that may: ``(1) Have an annual effect on the economy 
of $100 million or more or adversely affect in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, 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 set forth in 
this Executive order.''
    VA has examined the economic, interagency, budgetary, legal, and 
policy implications of this regulatory action, and it has been 
determined to be a significant regulatory action under E.O. 12866, 
because it raises novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order. VA's impact analysis can be found as a supporting 
document at http://www.regulations.gov, usually within 48 hours after 
the rulemaking document is published. Additionally, a copy of the 
rulemaking and its impact analysis are available on VA's website at 
http://www.va.gov/orpm by following the link for VA Regulations 
Published from FY 2004 Through Fiscal Year to Date. This proposed rule 
is not expected to be subject to the requirements of E.O. 13771 because 
this proposed rule is expected to result in no more than de minimis 
costs.

Paperwork Reduction Act

    This proposed rule contains no provisions constituting a collection 
of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3521).

Regulatory Flexibility Act

    This proposed rule would not have a significant economic impact on 
a substantial number of small entities as they are defined in the 
Regulatory Flexibility Act, 5 U.S.C. 601-612. The overall impact of the 
proposed rule would be of benefit to small businesses owned by Veterans 
or service-disabled Veterans as the VAAR is being updated to remove 
extraneous procedural information that applies only to VA's internal 
operating procedures. VA is merely adding existing and current 
regulatory requirements to the VAAR and removing any guidance that is 
applicable only to VA's internal operation processes or procedures. VA 
estimates no cost impact to individual business would result from these 
rule updates. This rulemaking does not change VA's policy regarding 
small businesses, does not have an economic impact to individual 
businesses, and there are no increased or decreased costs to small 
business entities. On this basis, the proposed rule would not have an 
economic impact on a substantial number of small entities as they are 
defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. Therefore, 
under 5 U.S.C. 605(b), this regulatory action is exempt from the 
initial and final regulatory flexibility analysis requirements of 
sections 603 and 604.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal Governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This proposed rule will have no such effect 
on State, local, and tribal Governments or on the private sector.

List of Subjects

48 CFR Part 829

    Government procurement, Taxes.

48 CFR Part 846

    Government procurement.

48 CFR Part 847

    Government procurement, Transportation.

48 CFR Part 852

    Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 870

    Asbestos, Frozen foods, Government procurement, Telecommunications.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs,

[[Page 17983]]

approved this document on September 1, 2017, for publication.

    Dated: April 3, 2018.
Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

    For the reasons set out in the preamble, VA proposes to amend 48 
CFR, chapter 8, parts 829, 846, 847, 852, and 870 as follows:

PART 829--TAXES

0
1. The authority citation for part 829 is revised to read as follows:

    Authority:  26 U.S.C. 5214(a), 5271, 7510; 40 U.S.C. 121(c); 41 
U.S.C. 1303(a)(2) and 48 CFR 1.301-1.304.

0
2. Subpart 829.2 is revised to read as follows:

Subpart 829.2--Federal Excise Taxes


829.203   Other Federal tax exemptions.


829.203-70   Tax exemptions for alcohol products.

    (a) General. (1) Pursuant to 26 U.S.C. 5214(a)(2) and 26 U.S.C. 
5271, VA may purchase spirits using a tax exemption as provided by 
Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau 
(TTB) regulations (see 27 CFR parts 1-39). As stated in 27 CFR 19.426, 
agencies of the United States Government that wish to obtain either 
specially denatured spirits or spirits free of tax for nonbeverage 
purposes must apply for and receive a permit on form TTB F 5150.33 or 
must have a previously issued permit on ATF Form 1444.
    (2) When purchasing spirits under a tax exemption, the contracting 
officer shall indicate in the contract document the basis for the 
exemption and make a copy of the permit available to the contractor. 
Upon receipt of the spirits, the contractor shall return the permit to 
the contracting officer unless future orders are anticipated or as 
directed by the contracting officer.
    (3) Department of Veterans Affairs activities that require spirits 
free of tax for beverage purposes under 26 U.S.C. 7510 must provide a 
proper purchase order signed by the head of the agency or an authorized 
designee.
    (b) Specially denatured spirits or spirits free of tax for 
nonbeverage purposes. Contracting officers may make purchases of excise 
tax-free spirits, including denatured alcohol and specially denatured 
alcohol only from qualified distillery plants or bonded dealers.
    (1) Permits previously issued on Alcohol, Tobacco, and Firearms 
(ATF) Form 1444, Tax-Free Spirits for Use of United States, remain 
valid until surrendered or cancelled.
    (2) A copy of the current ATF Form 1444 or TTB Form 5150.33 shall 
be made available to the supplier with the initial order. The permit 
number only needs to be referenced on any future orders with the same 
supplier.
    (c) Wine. No tax exemption form or ATF/TTB permit is required for 
the tax-free procurement of wine from bonded wine premises. The 
purchase order must show the kind, quantity, and alcohol content of the 
wine and must state the purpose for which wine is to be used (see 27 
CFR 24.293). An extra copy of a properly executed purchase order may be 
furnished to the bonded wine premises from which wine is purchased to 
facilitate record keeping. The order must be signed by the Head of 
Contracting Activity or designee.

0
3. Subpart 829.3 is revised to read as follows:

Subpart 829.3--State and Local Taxes


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

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

PART 846--QUALITY ASSURANCE

0
4. The authority citation for part 846 is revised to read as follows:

    Authority:  40 U.S.C. 121(c); 41 U.S.C. 1303; 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

0
5. Subpart 846.1 is added to read as follows:

Subpart 846.1--General


846.101   Definition.

    As used in this part--
    Rejected goods means supplies and/or equipment failing to meet 
contractual terms and conditions and/or generally accepted quality 
standards that may be returned by the Government at the contractor's 
risk and expense.

0
6. Subpart 846.3 is revised to read as follows:
Subpart 846.3--Contract Clauses
Sec.
846.312 Construction contracts.
846.370 Clauses for supplies, equipment or perishable goods.
846.370-1 Rejected goods.
846.370-2 Frozen processed foods.
846.370-3 Noncompliance with packaging, packing and/or marking 
requirements.
846.370-4 Purchase of shellfish.

Subpart 846.3--Contract Clauses


846.312   Construction contracts.

    The contracting officer shall insert the clause at 852.236-74, 
Inspection of Construction, in solicitations and contracts for 
construction that include the FAR clause at 52.246-12, Inspection of 
Construction.


846.370   Clauses for supplies, equipment or perishable goods.


846.370-1   Rejected goods.

    The contracting officer shall insert the clause at 852.246-71, 
Rejected Goods, in solicitations and contracts for the acquisition of 
supplies, equipment or perishable goods. Perishable goods include such 
items as packing house and dairy products, bread and bakery products, 
fresh and frozen fruits, and vegetables.


846.370-2   Frozen processed foods.

    (a) The contracting officer shall insert the clause at 852.246-72, 
Frozen Processed Foods, in solicitations and contracts for frozen 
processed foods.
    (b) The following frozen processed food products must contain a 
label that complies with the Federal Food, Drug and Cosmetic Act (21 
U.S.C. 301), which requires all ingredients be listed in accordance 
with their predominance order:
    (1) Frozen processed food products that contain meat, poultry, or a 
significant proportion of eggs.
    (2) Frozen processed food products that contain fish or fish 
products.
    (3) Frozen bakery products.
    (c) All procured frozen processed food products that contain meat, 
poultry or a significant proportion of eggs must meet the following 
requirements:
    (1) The products must be processed or prepared in plants operating 
under the supervision of the Department of Agriculture (USDA).
    (2) The product must be inspected and approved in accordance with 
USDA regulations governing meat, poultry, or egg inspection. A label or 
seal that indicates compliance with USDA regulations, affixed to the 
container, will be accepted as evidence of compliance.
    (d) All procured frozen processed food products that contain fish 
or fish products must meet the following requirements:
    (1) The product must be processed or prepared in plants operated 
under the supervision of the Department of Commerce (DOC). The products 
listed in DOC's publication ``Approved List of Sanitarily Inspected 
Fish

[[Page 17984]]

Establishments'' are processed in plants under Federal inspection of 
the National Marine Fisheries Service, National Oceanic and Atmospheric 
Administration, DOC. The inspected products packed under various labels 
bearing the brand names are produced in accordance with current U.S. 
Grade Standards or official product specifications, packed under 
optimum hygienic conditions, and must meet Federal, State, and city 
sanitation and health regulations. Such brand label or DOC seal 
indicating compliance with DOC regulations, affixed to a container, 
will be accepted as evidence of compliance.
    (2) If the condition in paragraph (d)(1) of this section was not 
met (e.g., no seal), the shipment may be lot-inspected by the DOC and 
containers stamped to indicate acceptance or a Certification of 
Inspection issued to accompany the shipment.
    (e) Producers of frozen bakery products that ship products in 
interstate commerce are required to comply with the Federal Food, Drug 
and Cosmetic Act. Therefore, the product must be verified as shipped 
interstate or that the producer ships products to other purchasers 
interstate.


846.370-3   Noncompliance with packaging, packing and/or marking 
requirements.

    The contracting officer shall insert the clause at 852.246-73, 
Noncompliance with Packaging, Packing, and/or Marking Requirements, in 
non-commercial item solicitations and contracts for supplies or 
equipment where there are special packaging, packing and/or marking 
requirements. The clause may be used in commercial item acquisitions if 
a waiver is approved in accordance with FAR 12.302(c).


846.370-4   Purchase of shellfish.

    (a) The U.S. Food and Drug Administration (FDA) at http://www.fda.gov provides quality assurance seafood safety guidelines.
    (b) The contracting officer shall insert the clause at 852.246-76, 
Purchase of Shellfish, in solicitations and contracts for shellfish.
0
7. Subpart 846.4 is revised to read as follows:
Subpart 846.4--Government Contract Quality Assurance
Sec.
846.408-70 Inspection of subsistence.
846.470 Use of commercial organizations for inspections and grading 
services.
846.471 Food service equipment.

Subpart 846.4--Government Contract Quality Assurance


846.408-70   Inspection of subsistence.

    (a) The contracting officer shall indicate the time and place of 
inspection in the solicitation.
    (b) The contracting office shall also provide in the solicitation 
that the contractor is responsible for all of the following:
    (1) Arranging and paying for inspection services.
    (2) Obtaining from the inspectors a certificate indicating that the 
product complies with specifications.
    (3) Assuring that the certificate, or copy, accompanies the 
shipment.
    (4) Furnishing samples for inspection at the contractor's expense.
    (5) Indicating the address where inspection will occur.
    (c) The contracting officer must furnish a copy of the purchase 
document to the inspecting activity.


846.470m   Use of commercial organizations for inspections and grading 
services.

    The contracting officer may use a commercial organization for 
inspection and grading services when the contracting officer determines 
that all of the following exist:
    (a) The results of a technical inspection or grading are dependent 
upon the application of scientific principles or specialized 
techniques.
    (b) VA is unable to employ the personnel qualified to properly 
perform the services and is unable to locate another Federal agency 
capable of providing the service.
    (c) The inspection or grading results issued by a private 
organization are essential to verify the acceptance or rejection of a 
special commodity.
    (d) The services may be performed without direct Government 
supervision.


846.471   Food service equipment.

    (a) All new food service equipment purchased for Dietetic Service 
through other than the Defense General Supply Center sources must meet 
requirements set forth by National Sanitation Foundation (NSF) at 
http://www.nsf.org.
    (b) The contracting officer will ensure that the following language 
is placed in the solicitation to assert that the equipment meets NSF 
standards:
    The Government will accept an affixed NSF label and/or 
documentation of the NSF Certification from the contractor as evidence 
that the subject equipment meets NSF Sanitation standards.
0
8. Subpart 846.7 is revised to read as follows:

Subpart 846.7--Warranties


846.702-70   Guarantee period services and specifications.

    (a) Guarantee period of services are associated with preserving and 
protecting a specified piece of contractor-installed equipment that is 
guaranteed under a construction contract. Specifications for certain 
high-dollar or traditionally troublesome equipment are designed to 
allow for the original installer of the equipment to service the 
equipment throughout the guaranty period.
    (b) Guarantee period services are not the same as the 1-year 
general construction guaranty clause found at FAR clause 52.246-21, 
Warranty of Construction.
    (c) The contracting officer may determine, when in the best 
interest of VA that guarantee period services, not to exceed a period 
of 5 years, are appropriate to protect the integrity of the installed 
equipment and ensure that the equipment performs as guaranteed.
    (d) When the determination is made under paragraph (c), the 
contracting officer shall include the guarantee period of services as a 
separately priced contract line item number (CLIN) in solicitations and 
contracts.
    (e) The contracting officer shall insert the clause at 852.246-75, 
Warranty of Construction--Guarantee Period Services, in solicitations 
and contracts for construction that include the FAR clause 52.246-21, 
Warranty of Construction, and that also include guarantee period 
services.
    (f) In accordance with the approved VA specifications, the 
following types of equipment contain the guarantee period services 
specifications. The following represents a sampling of these 
specifications.
    (1) Division 14--Conveying Equipment:
    (i) Electric Dumbwaiters Geared Traction and Winding Drum (VA 14 12 
11)
    (ii) Electric Traction Elevators (VA 14 21 00)
    (iii) Traction Cartlift (VA 14 21 11)
    (iv) Hydraulic Elevators (VA 14 24 00)
    (v) Hydraulic Cartlift (VA 14 24 11)
    (vi) Public Address and Mass Notification Systems (VA 27 51 16)
    (2) Division 27--Communications:
    Intercommunication and Program Systems (VA 27 51 23)
    (g) The construction contractor shall require the original 
installer of the equipment, which is normally a subcontractor to 
provide the guarantee period services.

[[Page 17985]]

PART 847--TRANSPORTATION

0
9. The authority citation for part 847 is amended to read as follows:

    Authority:  38 U.S.C. 513; 40 U.S.C. 121(c); 31 U.S.C. 1303; 41 
U.S.C. 1702; 41 CFR part 102-117; and 48 CFR 1.301-1.304.

0
10. Subpart 847.2 is added to read as follows:
Subpart 847.2--Contracts for Transportation or for Transportation-
Related Services
Sec.
847.207 Solicitation provisions, contract clauses, and special 
requirements.
847.207-8 Government responsibilities.
847.207-70 VA solicitation provisions, contract clauses, and special 
requirements.

Subpart 847.2--Contracts for Transportation or for Transportation-
Related Services


847.207   Solicitation provisions, contract clauses, and special 
requirements.


847.207-8   Government responsibilities.

    Transportation payments are audited by the Traffic Manager, to 
ensure that payment and payment mechanisms for agency transportation 
are uniform and appropriate in accordance with 41 CFR part 102-117.


847.207-70   VA solicitation provisions, contract clauses, and special 
requirements.

    (a) Insurance under patient transportation contracts. The 
contracting officer shall ensure that all the proper certificates of 
insurance are submitted to perform on the contract, as outlined in the 
solicitation, and subsequently included in the contract file. In 
accordance with 828.306, the contracting officer shall insert the 
provision at 852.228-71, Indemnification and Insurance, in 
solicitations when utilizing term contracts or contracts of a 
continuing nature for ambulance, automobile and aircraft service. When 
contracting for these services, consider using requirements language 
such as the following:
    (1) Written proof of Insurance coverage as required and outlined in 
the solicitation is required prior to award of any contract. Coverage 
must be maintained continually through the life of the contract.
    (2) Within 10 days of notification of acceptance and pending award 
of contract, the contractor shall furnish to the contracting officer a 
certificate of insurance which shall contain an endorsement to the 
effect that cancellation of, or any material change in, the policies 
which adversely affect the interests of the Government in such 
insurance shall not be effective unless a 30-day advance written notice 
of cancellation or change is furnished to the contracting officer.
    (3) Within 10 days of notification of acceptance and pending award 
of contract, and prior to award of a contract, the contractor shall 
furnish to the contracting officer a copy of the contractor's current 
and valid Worker's Compensation certificate.
    (b) Contractor personnel. The contracting officer shall ensure that 
the contractor personnel have the appropriate level of training, 
experience, licensure, and pertinent qualifications to ensure patient 
safety. When contracting for these services, consider using 
requirements language such as the following:
    (1) All contractor personnel performing contract services shall 
meet the qualifications as specified in the contract, as well as any 
qualifications required by Federal, State, county, and local government 
entities from the place in which they operate. Contractor personnel 
shall meet these qualifications at all times while performing contract 
services.
    (2) During the contract period of performance, if the contractor 
proposes to add-on, or replace personnel to perform contract services, 
the contractor shall submit required evidence of training, 
certifications, licensing, background, and security clearances, and any 
other applicable qualifications to the designated COR. At no time shall 
the contractor utilize add-on or replacement personnel to perform 
contract services who do not meet the qualifications under the terms 
and conditions of the contract.
    (3) Records of contractor personnel qualifications and eligibility 
to perform on the contract must be maintained current throughout the 
life of the contract, and be made available for inspection upon 
request. The contractor shall forward to the contracting officer, on an 
annual basis, a list of contractor employees listing the employees 
name, position(s), and licenses and/or certifications and their current 
certification number. This annual statement of driver competency must 
include any advanced certifications, such as Advanced Cardiac Life 
Support or specialized training to assist and secure patients by 
stretcher or wheelchair, as applicable.
    (4) Within seven (7) days after receipt of award notification, the 
contractor shall provide evidence of required training, certifications, 
licensing and any other qualifications of any personnel who will be 
performing services under the contract. The initial documentation shall 
be provided to the contracting officer and COR.
    (c) Contracts must include requirements to report vehicle accidents 
and incidents to the Contracting Officer with a formal accident report.
    (d) Contracts for ambulance services must require that the 
contractor meet the current specifications of Federal Specification 
KKK-A-1822E, ``Star of Life Ambulance'' standard.
    (e) Contracts must include requirements to ensure patient safety is 
maintained through the consistent practice of securing patient care 
equipment, other cargo, and vehicles, and ensure that security of 
patients in vehicles is established and observed when transportation 
needs are either primary or secondary in the actual performance of the 
contract. When contracting for these services, consider using 
requirements language to ensure that patient transportation meets 
industry standards for transporting patients based on the patient's 
condition/needs (e.g., wheelchair, ambulatory, on stretcher, etc.).

0
11. Subpart 847.3 is revised to read as follows:
Subpart 847.3--Transportation in Supply Contracts
847.302 Place of delivery--F.o.b. point.
847.305 Solicitation provisions, contract clauses, and 
transportation factors.
847.305-10 Packing, marking, and consignment instructions.
847.305-70 Potential destinations known but quantities unknown.
847.305-71 VA contract clauses.
847.306 Transportation factors in the evaluation of offers.
847.306-70 Records of claims.

Subpart 847.3--Transportation in Supply Contracts


847.302   Place of delivery--F.o.b. point.

    The contracting officer shall insert clause 852.247-71, Delivery 
Location, or a clause substantially the same as the clause at 852.247-
71, Delivery Location, in supply contracts when it is necessary to 
specify delivery locations. If appropriate, the clause may reference an 
attachment which lists various delivery locations and other delivery 
details (e.g., quantities to be delivered to each location, etc.).


847.305-10   Packing, marking, and consignment instructions.

    (a) The contracting officer shall insert clause 852.247-72, Marking 
Deliverables, or a clause substantially the same as 852.247-72 in 
solicitations and contracts if special marking on deliverables are 
required.
    (b) The contracting officer shall insert the clause at 852.247-73, 
Packing for

[[Page 17986]]

Domestic Shipment, in contracts when item(s) will be delivered for 
immediate use to a destination in the continental United States; when 
the material specification or purchase description does not provide 
preservation, packaging, packing, and/or marking requirements; and/or 
when the requiring activity has not cited a specific specification for 
packaging.


847.305-70   Potential destinations known but quantities unknown.

    When the contracting officer contracts with multiple bidders to 
provide items directly to VA field installations, on an f.o.b. origin 
basis, the evaluation of bids must follow specific procedures. In these 
instances, the contracting officer shall insert clause 852.247-70, 
Determining Transportation Costs for Evaluation of Offers, or a clause 
substantially the same as clause 852.247-70. By inserting this clause, 
each bid is placed on an equal basis, even though specific quantities 
required by each facility cannot be predetermined. The contracting 
officer must use an anticipated demand factor in proportion to the 
number of hospital beds or patient workload.


847.305-71   VA contract clauses.

    (a) The contracting officer shall insert clause 852.247-74, Advance 
Notice of Shipment, or a clause substantially as 852.247-74, in 
solicitations and contracts when the F.o.b. point is destination, and 
special Government assistance is required in the delivery or receipt of 
the items.
    (b) The contracting officer shall insert clause 852.247-75, Bills 
of Lading, or a clause substantially the same as clause at 852.247-75, 
in F.o.b. origin solicitations and contracts.


847.306-70   Records of claims.

    When contracting for transportation, and consistent with FAR 
15.304, contracting officers should consider using the following as an 
evaluation factor or subfactor: Record of claims involving loss or 
damage.

PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
12. The authority citation for part 852 continues to read as follows:

    Authority:  38 U.S.C. 8127-8128, and 8151-8153; 40 U.S.C. 
121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1303; 41 U.S.C 1702;.and 48 
CFR 1.301-1.304.


852.229-70   [Removed and reserved].

0
13. Section 852.229-70 is removed and reserved.


852.246-70   [Removed and reserved].

0
14. Section 852.246-70 is removed and reserved.
0
15. Section 852.246-71 is revised to read as follows:


852.246-71   Rejected Goods.

    As prescribed in 846.370-1, insert the following clause:

Rejected Goods (Date)

    (a) Supplies and equipment. Rejected goods will be held subject 
to Contractor's order for not more than 15 days, after which the 
rejected merchandise will be returned to the Contractor's address at 
the Contractor's risk and expense. Expenses incident to the 
examination and testing of materials or supplies that have been 
rejected will be charged to the Contractor.
    (b) Perishable supplies. The contractor shall remove rejected 
perishable supplies within 48 hours after notice of rejection. 
Supplies determined to be unfit for human consumption will not be 
removed without permission of the local health authorities. Supplies 
not removed within the allowed time may be destroyed. The Department 
of Veterans Affairs will not be responsible for, nor pay for, 
products rejected. The contractor will be liable for costs incident 
to examination of rejected products.

(End of clause)

0
16. Section 852.246-72 is revised to read as follows:


852.246-72   Frozen Processed Foods.

    As prescribed in 846.370-2, insert the following clause:

Frozen Processed Foods (Date)

    The products delivered under this contract shall be in excellent 
condition, shall not show evidence of defrosting, refreezing, or 
freezer burn and shall be transported and delivered to the consignee 
at a temperature of 0 degrees Fahrenheit or lower.

(End of clause)

0
17. Section 852.246-73 is revised to read as follows:


852.246-73   Noncompliance with Packaging, Packing, and/or Marking 
Requirements.

    As prescribed in 846.370-3, insert the following clause:

Noncompliance With Packaging, Packing and/or Marking Requirements 
(Date)

    Failure to comply with the packaging, packing and/or marking 
requirements indicated herein, or incorporated herein by reference, 
may result in rejection of the merchandise and request for 
replacement or repackaging, repacking, and/or marking. The 
Government reserves the right, without obtaining authority from the 
Contractor, to perform the required repackaging, repacking, and/or 
marking services and charge the Contractor at the actual cost to the 
Government for the same or have the required repackaging, repacking, 
and/or marking services performed commercially under Government 
order and charge the Contractor at the invoice rate. In connection 
with any discount offered, time will be computed from the date of 
completion of such repackaging, repacking and/or marking services.

(End of clause)

852.246-74   [Removed and reserved].

0
18. Section 852.246-74 is removed and reserved.
0
19. Section 852.246-75 is revised to read as follows:


852.246-75   Warranty of Construction--Guarantee Period Services.

    As prescribed in 846.702-70(e), insert the following clause:

Warranty of Construction--Guarantee Period Services (Date)

    The clause 52.246-21, Warranty of Construction, is supplemented 
as follows:
    Should the Contractor fail to complete the work or fail to 
proceed promptly to provide guarantee period services after 
notification by the Contracting Officer, the Government may, subject 
to the default clause contained at FAR 52.249-10, Default (Fixed-
Price Construction), and after allowing the Contractor 10 days to 
correct and comply with the contract, terminate the right to proceed 
with the work (or the separable part of the work) that has been 
delayed or unsatisfactorily performed. In this event, the Government 
may take over the work and complete it by contract or otherwise, and 
may take possession of and use any materials, appliances, and plant 
on the work site necessary for completing the work. The Contractor 
and its sureties shall be liable for any damages to the Government 
resulting from the Contractor's refusal or failure to complete the 
work within this specified time, whether or not the Contractor's 
right to proceed with the work is terminated. This liability 
includes any increased costs incurred by the Government in 
completing the work.

(End of clause)

0
20. Section 852.246-76 is added to read as follows:


852.246-76   Purchase of Shellfish.

    As prescribed in 846.370-4 insert the following clause:

Purchase of Shellfish (Date)

    The supplier certifies that oysters, clams, and mussels will be 
furnished only from plants approved by and operated under the 
supervision of shellfish authorities of States whose certifications 
are endorsed currently by the U.S. Public Health Service, and the 
names and certificate numbers of those shellfish dealers must appear 
on current lists published by the U.S. Public Health Service. These 
items shall be packed and delivered in approved containers, sealed 
in such manner that tampering is easily discernible, and marked with 
packer's certificate number

[[Page 17987]]

impressed or embossed on the side of such containers and preceded by 
the State abbreviation. Containers shall be tagged or labeled to 
show the name and address of the approved producer or shipper, the 
name of the State of origin, and the certificate number of the 
approved producer or shipper.

(End of clause)

0
21. Section 852.247-70 is revised to read as follows:


852.247-70   Determining Transportation Costs for Evaluation of Offers.

    As prescribed in 847.305-70, insert the following provision:

Determining Transportation Costs for Evaluation of Offers (Date)

    For the purpose of evaluating bids and for no other purpose, the 
delivered price per unit will be determined by adding the nationwide 
average transportation charge to the F.o.b. origin bid prices. The 
nationwide average transportation charge will be determined by 
applying the following formula: Multiply the guaranteed shipping 
weight by the freight, parcel post, or express rate, whichever is 
proper, to each destination shown below and then multiply the 
resulting transportation charges by the anticipated demand factor 
shown for each destination. Total the resulting weighted 
transportation charges for all destinations and divide the total by 
20 to give the nationwide average transportation charge.

                           Anticipated Demand
------------------------------------------------------------------------
                       Area destination                          Factor
------------------------------------------------------------------------
Oakland, California...........................................         3
Dallas, Texas.................................................         2
Omaha, Nebraska...............................................         3
 Fort Wayne, Indiana..........................................         4
Atlanta, Georgia..............................................         3
New York, New York............................................         5
                                                               ---------
  Total of factors............................................        20
------------------------------------------------------------------------

(End of provision)

0
22. Section 852.247-71 is added to read as follows:


852.247-71   Delivery Location.

    As prescribed in 847.302, insert a clause substantially as follows:

Delivery Location (Date)

    Shipment of deliverable items, other than reports, shall be to: 
__* Contracting Officer shall insert appropriate identifying data.

(End of clause)

0
23. Section 852.247-72 is added to read as follows:


852.247-72   Marking Deliverables.

    As prescribed in 847.305-10(a) insert a clause substantially the 
same as:

Marking Deliverables (Date)

    (a) The contract number shall be placed on or adjacent to all 
exterior mailing or shipping labels of deliverable items called for 
by the contract.
    (b) Mark deliverables, except reports, for: ________*.
    * Contracting Officer shall insert appropriate identifying data.

(End of clause)

0
24. Section 852.247-73 is added to read as follows:


852.247-73   Packing for Domestic Shipment.

    As prescribed in 847.305-10(b), insert the following clause:

Packing for Domestic Shipment (Date)

    Material shall be packed for shipment in such a manner that will 
insure acceptance by common carriers and safe delivery at 
destination. Containers and closures shall comply with regulations 
of carriers as applicable to the mode of transportation.

(End of clause)

0
25. Section 852.247-74 is added to read as follows:


852.247-74   Advance Notice of Shipment.

    As prescribed in 847.305-71(a), insert the following clause:

Advance Notice of Shipment (Date)

    [Insert number of work days] work days prior to shipping item(s)
    [Insert items to be shipped], the Contractor shall furnish the 
anticipated shipment date, bill of lading number (if applicable), 
and carrier identity to [Insert individual(s) to receive 
notification] and to the Contracting Officer.

(End of clause)

0
26. Section 852.247-75 is added to read as follows:


852.247-75   Bills of Lading.

    As prescribed in 847.305-71(b), insert the following clause:

Bills of Lading (Date)

    The purpose of this clause is to define when a commercial bill 
of lading or a government bill of lading is to be used when 
shipments of deliverable items under this contract are F.o.b. 
origin.
    (a) Commercial Bills of Lading. All domestic shipments shall be 
made via commercial bills of lading (CBLs). The Contractor shall 
prepay domestic transportation charges. The Government shall 
reimburse the Contractor for these charges if they are added to the 
invoice as a separate line item supported by the paid freight 
receipts. If paid receipts in support of the invoice are not 
obtainable, a statement as described below must be completed, signed 
by an authorized company representative, and attached to the 
invoice.
    ``I certify that the shipments identified below have been made, 
transportation charges have been paid by (company name), and paid 
freight or comparable receipts are not obtainable.
    Contract or Order Number: ________
    Destination: ________.''
    (b) Government Bills of Lading.
    (1) International (export) and domestic overseas shipments of 
items deliverable under this contract shall be made by Government 
bills of lading (GBLs). As used in this clause, ``domestic 
overseas'' means non-continental United States, i.e., Hawaii, 
Commonwealth of Puerto Rico, and possessions of the United States.
    (2) At least 15 days before shipment, the Contractor shall 
request in writing GBLs from: ________ [Insert name, title, and 
mailing address of designated transportation officer or other 
official delegated responsibility for GBLs]. If time is limited, 
requests may be by telephone: ________ [Insert appropriate telephone 
number]. Requests for GBLs shall include the following information.
    (i) Item identification/description.
    (ii) Origin and destination.
    (iii) Individual and total weights.
    (iv) Dimensional weight.
    (v) Dimensions and total cubic footage.
    (vi) Total number of pieces.
    (vii) Total dollar value.
    (viii) Other pertinent data.

(End of clause)

852.270-2   [Removed].

0
27. Section 852.270-2 is removed.


852.270-3   [Removed].

0
28. Section 852.270-3 is removed.

PART 870--SPECIAL PROCUREMENT CONTROLS


870   [Removed and reserved].

0
29. Part 870 is removed and reserved.

[FR Doc. 2018-07130 Filed 4-24-18; 8:45 am]
 BILLING CODE 8320-01-P