[Federal Register Volume 83, Number 185 (Monday, September 24, 2018)]
[Rules and Regulations]
[Pages 48257-48263]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20323]
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DEPARTMENT OF VETERANS AFFAIRS
48 CFR Parts 829, 846, 847, 852, and 870
RIN 2900-AQ04
VA Acquisition Regulation: Taxes; Quality Assurance;
Transportation; Solicitation Provisions and Contract Clauses; and
Special Procurement Controls
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: The Department of Veterans Affairs (VA) is amending and
updating 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revise or remove any policy superseded by changes in the Federal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streamline and align the VAAR with the FAR and remove outdated and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. In particular, this rulemaking revises VAAR
concerning Taxes; Quality Assurance; Transportation; Solicitation
Provisions and Contract Clauses; and Special Procurement Controls.
DATES: This rule is effective on October 24, 2018.
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: On April 25, 2018, VA published a proposed
rule in the Federal Register (83 FR 17979) which announced VA's intent
to amend regulations for VAAR Case RIN 2900-AQ04 (parts 829, 846, and
847). In particular, this final rule revises the 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; removes section 829.202-70, Tax exemptions for alcohol
products, updates and moves it to the VAAM; adds a new section to
provide the legislative authorities for withdrawal of distilled spirits
from bonded premises free of tax or without payment of tax by, and for
the use of, the VA; removes section 829.302, Application of State and
local taxes to the Government, to the VAAM; removes 829.302-70,
Purchases made from patients' funds, and the clause it prescribes,
852.229-70, Sales or Use Taxes.
In part 846, Quality Assurance, this rule adds a definition of
``rejected goods'' as used in a revised clause; revises subpart 846.3
to prescribe clauses 852.236-74, Inspection of Construction, 852.246-
71, Rejected Goods, 852.246-72, Frozen Processed Foods, 852.246-73,
Noncompliance with Packaging, Packing, and/or Marking Requirements, and
852.246-76, Purchase of Shellfish; it reduces subpart 846.4 to three
sections, 846.408-70, Inspection of subsistence, 846.470, Use of
commercial organizations for inspections and grading services, and
846.471, Food service equipment; it removes a warranty clause because
there are sufficient FAR warranty clauses that could be used; removes
policy requiring USDA inspections for subsistence since the Department
of Agriculture no longer requires this type of inspection; removes
coverage requiring inspection of repairs for properties under the Loan
Guaranty Program and Direct Loan Programs, as such sections are
unnecessary given that a private contractor performs such inspection
and repair functions on VA's behalf; and provides coverage to state
VA's policy regarding guarantee period services.
This rule adds guidance in part 847 to contracting officers for VA
transportation contracts and transportation-related services and
subsequent payments on those contracts; provides guidance on
contractual requirements for insurance provisions and contractor
personnel performing on VA transportation contracts; provides
consignment instructions; and adds a clause providing packing
instructions to ensure acceptance by common carriers and safe delivery
at destination.
This rule also removes all remaining sections of part 870 as the
guidance included therein was either moved to other parts, out of date,
or duplicative of the FAR.
VA provided a 60-day comment period for the public to respond to
the proposed rule. The comment period for the proposed rule ended on
June 25, 2018 and VA received no comments. This document adopts as a
final rule the proposed rule published in the Federal
[[Page 48258]]
Register on April 25, 2018, with minor formatting and/or grammatical
edits. This final rule has Federal Register administrative format
changes in the amendatory text which make no substantive text changes
at the affected sections.
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 final rule will have no such effect on
State, local, and tribal Governments or on the private sector.
Paperwork Reduction Act
This final 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 final rule will 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. This final rule will
generally be small business neutral. The overall impact of the rule
will 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 businesses will 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 final rule will 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.
Executive Orders 12866, 13563 and 13771
Executive Orders (E.O.) 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 not be a significant regulatory action under E.O. 12866
because it does not 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'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 final rule is
not subject to the requirements of E.O. 13771 because this final rule
is expected to result in no more than de minimis costs.
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 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. Robert L.
Wilkie, Secretary, Department of Veterans Affairs, approved this
document on August 24, 2018, for publication.
Dated: September 14, 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 amends 48 CFR 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)(2), 5271, 7510; 40 U.S.C. 121(c);
41 U.S.C. 1303(a)(2); 41 U.S.C. 1702 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 through 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
[[Page 48259]]
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 the
contracting activity or their 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 or vessels,
sanitarily inspected, approved, and certified by the United States
Department of Commerce (USDC). The products are listed in USDC's
publication ``USDC Approved Establishments'' under U.S. Establishments
Approved for Sanitation and for Producing USDC Inspected Fishery
Products. 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 USDC seal indicating
compliance with USDC regulations, affixed to a container, will be
accepted as evidence of compliance.
(2) If the conditions in paragraph (d)(1) of this section were not
met (e.g., no seal), the shipment may be lot-inspected by the USDC 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).
[[Page 48260]]
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 officer 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.
846.470 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 NSF International (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) of this
section, 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).
(2) Division 27--Communications. (i) Public Address and Mass
Notification Systems (VA 27 51 16).
(ii) 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.
PART 847--TRANSPORTATION
0
9. The authority citation for part 847 is revised to read as follows:
Authority: 38 U.S.C. 513; 40 U.S.C. 121(c); 41 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 102-118.
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
[[Page 48261]]
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
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 contracting officer's
representative (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 current and maintained 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 Solicitation provisions, contract clauses, and transportation
factors.
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 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 the same 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.
[[Page 48262]]
(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 Transportation factors in the evaluation of offers.
847.306-70 Records of claims.
When contracting for transportation, and consistent with FAR
15.304, contracting officers should consider using offerors' record of
claims involving loss or damage as an evaluation factor or subfactor.
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 (Oct 2018)
(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 (Oct 2018)
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 (Oct
2018)
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 (Oct 2018)
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 (OCT 2018)
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 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 (Oct 2018)
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
[[Page 48263]]
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 (Oct 2018)
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 (Oct 2018)
(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 (Oct 2018)
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 (Oct 2018)
__ [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 (Oct 2018)
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--[REMOVED AND RESERVED]
0
29. Under the authority of 48 CFR 1.301 through 1.304, part 870 is
removed and reserved.
[FR Doc. 2018-20323 Filed 9-21-18; 8:45 am]
BILLING CODE 8320-01-P