[Federal Register Volume 84, Number 30 (Wednesday, February 13, 2019)]
[Rules and Regulations]
[Pages 3714-3723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01565]
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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 501, 511, 517, 532, 536, 543, 546, and 552
[GSAR Change 98; GSAR Case 2015-G503; Docket No. 2016-0015; Sequence
No. 1]
RIN 3090-AJ63
General Services Administration Acquisition Regulation (GSAR);
Construction Contract Administration
AGENCY: Office of Acquisition Policy, General Services Administration
(GSA).
ACTION: Final rule.
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SUMMARY: This final rule amends the General Services Administration
Acquisition Regulation (GSAR) coverage on construction contracts,
including provisions and clauses for solicitations and resultant
contracts, to clarify, update, and incorporate existing construction
contract administration procedures. This final rule includes new
information collection requirements that will be submitted to OMB for
review and approval.
DATES: Effective Date: This final rule is effective on March 15, 2019.
FOR FURTHER INFORMATION CONTACT: For clarification about content,
contact Mr. Tony O. Hubbard, Acquisition Policy Division, by phone at
202-357-5810 or by email at [email protected]. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat division by mail at 1800 F Street NW, Washington, DC 20405,
or by phone at 202-501-4755. Please cite the GSAR Case 2015-G503,
Construction Contract Administration.
SUPPLEMENTARY INFORMATION:
I. Background
GSA published a proposed rule in the Federal Register at 81 FR
62434 on September 9, 2016 to revise sections of GSAR part 536,
Construction and Architect-Engineer Contracts, and related parts, to
maintain consistency with the Federal Acquisition Regulation (FAR) and
to clarify, update and incorporate existing construction contract
administration guidance previously implemented through internal Public
Building Service (PBS) policies. No comments were submitted on the
proposed rule.
II. Discussion and Analysis
Beyond a minor technical correction, no changes were made to the
rule. The minor technical correction regards GSAR Clause 552.243-71
Equitable Adjustments. The proposed rule discussion and analysis
section noted incorrectly that only the prescription for this existing
clause changed. The text of the clause in addition to the prescription
is revised to include the changes clause for simplified acquisitions
and the differing site conditions clause. The CFR amendments to the
clause prescription and clause text identified in the proposed rule
were correct.
III. Executive Orders 12866 and 13563
Executive Order (E.O.) 12866 of September 30, 1993, Regulatory
Planning and Review, directs agencies to assess all costs and benefits
of
[[Page 3715]]
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). Section 6(b) of the E.O. requires
the OMB Office of Information and Regulatory Affairs (OIRA) to review
regulatory actions that have been identified as significant regulatory
actions by the promulgating agency or OIRA. This rule is not a
significant regulatory action and was therefore not subject to OIRA
review. This rule is not a ``major rule,'' as defined by 5 U.S.C. 804.
IV. Executive Order 13771
This final rule is not subject to E.O. 13771, because this rule is
not a significant regulatory action under E.O. 12866.
V. Regulatory Flexibility Act
GSA does not expect this final rule to have a significant economic
impact on a substantial number of small entities within the meaning of
the Regulatory Flexibility Act, at 5 U.S.C. 601, et. seq., because the
rule will incorporate clauses that are currently in use in GSA
construction solicitations and contracts and contractors are familiar
with and are currently complying with these practices. However, a Final
Initial Regulatory Flexibility Analysis (FRFA) has been prepared. There
were no comments submitted in response to the initial regulatory
flexibility analysis provided in the proposed rule.
The FRFA has been prepared consistent with the criteria of 5 U.S.C.
604 and is summarized as follows:
This final rule amends the General Services Administration
Acquisition Regulation (GSAR) coverage on construction contracts,
including provisions and clauses for solicitations and resultant
contracts, to clarify, update, and incorporate existing construction
contract administration procedures.
The objective of this rule is to amend the GSAR to revise
sections of GSAR Part 536, Construction and Architect-Engineer
Contracts, and related parts, to maintain consistency with the FAR
and to incorporate existing agency guidance previously implemented
through internal PBS policies.
There were no comments submitted and therefore no significant
issues raised by the public in response to the initial regulatory
flexibility analysis provided in the proposed rule.
The final rule changes will apply to approximately 3,900 GSA
construction contracts. Of these, approximately 3,500 (90 percent)
construction contracts are held by small businesses. The rule is
unlikely to affect small businesses awarded GSA construction
contracts as it implements clauses currently in use in construction
solicitations and contracts. The rule does not pose any new
reporting, recordkeeping or other compliance requirements.
The Regulatory Secretariat Division has submitted a copy of the
FRFA to the Chief Counsel for Advocacy of the Small Business
Administration. Interested parties may obtain a copy of the FRFA from
the Regulatory Secretariat Division.
VI. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. Chapter 35) does apply
because the final rule contains six clauses and provisions with
information collection requirements. However, five of these clauses and
provisions do not impose additional information collection requirements
to the paperwork burden previously approved under existing OMB Control
Numbers. Only one of the six involves information collection
requirements that have not previously been approved by OMB.
Clauses and Provisions Already Covered by Existing Information
Collections
The new clause at GSAR 552.211-13 Time Extensions requires the
contractor to submit a written request detailing an analysis to justify
a time extension. However, the clause does not add burden to what is
already estimated for FAR Clause 52.243-4 Changes under OMB Control
Number 9000-0026 Change Order Accounting.
The new clause at GSAR 552.211-70 Substantial Completion requires
the contractor to submit a written notice of proposed substantial
completion date for the construction work. However, the clause does not
add burden to what is already estimated for FAR Clause 52.236-15
Schedules for Construction Contracts under OMB Control Number 9000-0058
Schedules for Construction Contracts.
The new clause at GSAR 552.232-5 Payments under Fixed-Price
Construction Contracts requires the contractor to use certain GSA forms
to submit the information necessary for a complete payment request.
However, the clause does not add burden to what is already estimated
for GSAR 532.905-70 Final Payment--Construction and Building Service
Contracts, FAR Clause 52.232-5 Payments under Fixed-Price Construction
Contracts, and FAR Clause 52.232-27 Prompt Payment for Construction
Contracts under OMB Control Numbers 3090-0080 Contract Financing Final
Payment, 9000-0070 Payments, and 9000-0102 Prompt Payment.
The new clause at GSAR 552.236-15 Schedules for Construction
Contracts requires the contractor to identify a schedule of values, to
provide updates specifically weekly or monthly, and to follow a
critical path method in some cases. However, the clause does not add
burden to what is already estimated for FAR Clause 52.236-15 Schedules
for Construction Contracts under OMB Control Number 9000-0058 Schedules
for Construction Contracts.
The new provision at GSAR 552.236-76 Basis of Award-Sealed Bidding
Construction removes the use of alternates in sealed bidding. The
provision was previously GSAR 552.236-73 Basis of Award-Construction
Contracts. The provision title and prescription are revised to provide
clarity, and the provision regulations are simplified. This provision
change will reduce the complexity to businesses during contract
solicitation as bid sheet line items will be more clearly understood
for pricing. The provision does not add burden to what is already
estimated under OMB Control Number 3090-0163 Information Specific to a
Contract or Contracting Action.
Clauses and Provisions Not Covered by Existing Information Collections
The new clause at GSAR 552.236-72 Submittals involves an existing
information collection requirement that has never been previously
approved by OMB. The information collected is used by PBS to evaluate a
contractor's proposals, negotiate contract modifications, evaluate a
contractor's progress, and review payment requests during contract
administration. The clause was previously GSAR 552.236-78 Shop
Drawings, Coordination Drawings, and Schedules. The clause is
simplified, including removing the requirement for a specific number of
prints and copies of various submittals. This simplification will ease
the compliance burden for the contractor during contract administration
from the current state.
Public reporting burden for GSAR 552.236-72 Submittals is estimated
to average 8 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information.
The annual public reporting burden is estimated as follows:
Respondents: 3,758.
Responses per respondent: 1.
Total annual responses: 3,758.
Preparation hours per response: 8.
Total response burden hours: 30,064.
Cost per hour: $54.30.
[[Page 3716]]
Estimated cost burden to the public: $1,632,475.
The estimated cost of $54.30 per hour is based on the task being
accomplished by mid-level contractor personnel equivalent to a GS-12,
Step 5 salary (Base Pay and Rest of US Locality Pay) (Salary Table
2018-GS, Effective January 2018), with fringe of 36.25 percent (OMB
Memo M-08-13).
Government burden for GSAR 552.236-72 Submittals is estimated to
average 2 hours per response, including the time to review the
submittal documents.
The annual government burden is estimated as follows:
Total annual responses: 3,758.
Review hours per response: 2.
Total review time: 7,516.
Cost per hour: $54.30.
Estimated cost burden to the public: $408,119.
The estimated cost of $54.30 per hour is based on the task being
accomplished by mid-level government personnel equivalent to a GS-12,
Step 5 salary (Base Pay and Rest of US Locality Pay) (Salary Table
2018-GS, Effective January 2018), with fringe of 36.25 percent (OMB
Memo M-08-13).
GSA solicited public comments on this information collection
requirement at the proposed rule stage. There were no public comments
received. GSA will submit to OMB a request to review and approve this
new information collection requirement. For a copy of the information
collection documents, contact the Regulatory Secretariat Division by
mail at 1800 F Street NW, Washington, DC 20405, or by phone at 202-501-
4755. Please cite OMB Control Number 3090-0308, Construction Contract
Administration.
List of Subjects in 48 CFR Parts 501, 511, 517, 532, 536, 543, 546,
and 552.
Government procurement.
Dated: February 4, 2019.
Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of
Government-wide Policy, General Services Administration.
For the reasons described in the preamble, GSA amends 48 CFR parts
501, 511, 517, 532, 536, 543, 546, and 552 as set forth below:
PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION
SYSTEM
0
1. The authority citation for 48 CFR part 501 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
0
2. Amend section 501.106 in the table by--
0
a. Removing the entry for ``532.111(c)'';
0
b. Revising the entry for ``532.905-70'';
0
c. Removing the entry for ``532.905-71''; and
0
d. Adding, in numerical sequence, entries for ``552.211-13(a)'',
``552.211-70(b)'', ``552.232-5'', ``552.236-15'' and ``552.236-72''.
The revision and additions read as follows:
501.106 OMB approval under the Paperwork Reduction Act.
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GSAR reference OMB Control No.
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* * * * *
532.905-70........................ 3090-0080
* * * * *
552.211-13(a)..................... 9000-0026
552.211-70(b)..................... 9000-0058
* * * * *
552.232-5......................... 3090-0080, 9000-0070, and 9000-0102
* * * * *
552.236-15........................ 9000-0058
552.236-72........................ 3090-0308
* * * * *
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PART 511--DESCRIBING AGENCY NEEDS
0
3. The authority citation for 48 CFR part 511 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
0
4. Revise section 511.404 to read as follows:
511.404 Contract clauses.
(a) Supplies or services--(1) Shelf-life items. The contracting
officer shall use the following clauses in solicitations and contracts
that require delivery of shelf-life items within a specified number of
months from the date of manufacture or production:
(i) The contracting officer shall insert 552.211-79, Acceptable Age
of Supplies, if the required shelf-life period is 12 months or less,
and lengthy acceptance testing may be involved. For items having a
limited shelf-life, substitute Alternate I when required by the program
director.
(ii) The contracting officer shall insert 552.211-80, Age on
Delivery, if the required shelf-life period is more than 12 months, or
when source inspection can be performed within a short time period.
(2) Stock replenishment contracts. The contracting officer shall
insert 552.211-81, Time of Shipment, in solicitations and stock
replenishment contracts that do not include the Availability for
Inspection, Testing, and Shipment/Delivery clause at 552.211-83 and
require shipment within 45 calendar days after receipt of the order. If
shipment is required in more than 45 days, the contracting officer
shall use Alternate I of 552.211-81.
(3) Indeterminate testing time. The contracting officer shall
insert 552.211-83, Availability for Inspection, Testing, and Shipment/
Delivery, in solicitations and contracts that provide for source
inspection by Government personnel and that require lengthy testing for
which time frames cannot be determined in advance. If the contract is
for stock items, the contracting officer shall use Alternate I of
552.211-83.
(4) Stock program supply delivery time. The contracting officer
shall insert the clause at 552.211-94, Time of Delivery, in
solicitations and contracts for supplies for the Stock Program when
neither of the FAR delivery clauses (FAR 52.211-8 or 52.211-9) is
suitable.
(b) Construction. (1) The contracting officer shall insert the
clause at 552.211-10, Commencement, Prosecution, and Completion of
Work, in solicitations and contracts when a fixed-price construction
contract is contemplated.
(2) The contracting officer shall insert the clause at 552.211-70,
Substantial Completion in solicitations and contracts when a fixed-
price construction contract is contemplated.
0
5. Add subpart 511.5 to read as follows:
Subpart 511.5--Liquidated Damages
511.504 Contract clauses.
(a) The contracting officer shall insert the clause at 552.211-12,
Liquidated Damages-Construction, in solicitations and contracts for
construction, other than cost-plus-fixed-fee, when the contracting
officer determines that liquidated damages are appropriate (see FAR
11.501(a)).
(b) The contracting officer shall insert the clause at 552.211-13,
Time Extensions, in solicitations and contracts for construction that
use the clause at 552.211-12, Liquidated Damages-Construction.
PART 517--SPECIAL CONTRACTING METHODS
0
6. The authority citation for 48 CFR part 517 is revised to read as
follows:
Authority: 40 U.S.C. 121(c).
0
7. Revise sections 517.200 and 517.202 to read as follows:
[[Page 3717]]
517.200 Scope of subpart.
(a) Except as provided in paragraph (b) of this section, this
subpart applies to contracts for supplies and services, including
architect-engineer services.
(b) Policies and procedures for the use of options in solicitation
provisions and contract clauses for services involving construction,
alteration, or repair (including dredging, excavating, and painting) of
buildings, bridges, roads, or other kinds of real property are
prescribed in 536.270. FAR subpart 17.2 and this subpart do not apply
to the use of options in solicitation provisions and contract clauses
for services involving construction, alteration, or repair (including
dredging, excavating, and painting) of buildings, bridges, roads, or
other kinds of real property.
517.202 Use of options.
(a) Options may be used when they meet one or more of the following
objectives:
(1) Reduce procurement lead time and associated costs.
(2) Ensure continuity of contract support.
(3) Improve overall contractor performance.
(4) Facilitate longer term contractual relationships with those
contractors that continually meet or exceed quality performance
expectations.
(b) An option is normally in the Government's interest in the
following circumstances:
(1) There is an anticipated need for additional supplies or
services during the contract term.
(2) When there is both a need for additional supplies or services
beyond the basic contract period and the use of multi-year contracting
authority is inappropriate.
(3) There is a need for continuity of supply or service support.
(c) An option shall not be used if the market price is likely to
change substantially and an economic price adjustment clause
inadequately protects the Government's interest.
PART 532--CONTRACT FINANCING
0
8. The authority citation for 48 CFR part 532 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
0
9. Revise section 532.111 to read as follows:
532.111 Contract clauses for non-commercial purchases.
Insert the clause at 552.232-5, Payments under Fixed-Price
Construction Contracts, in solicitations and contracts when a fixed-
price construction contract is contemplated.
PART 536--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
0
10. The authority citation for 48 CFR part 536 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
0
11. Revise subparts 536.2 and 536.5 to read as follows:
Subpart 536.2--Special Aspects of Contracting for Construction
Sec.
536.270 Options in construction contracting.
536.270-1 Use of options.
536.270-2 Solicitations.
536.270-3 Evaluation.
536.270-4 Exercise of options.
536.270-5 Solicitation provisions and contract clauses.
536.270 Options in construction contracting.
536.270-1 Use of options.
(a) Subject to the limitations in this section, contracting
officers may include options in contracts when it is in the
Government's interest.
(b) The scope of work in the base contract at award shall require
the contractor to provide a discrete and fully functional deliverable.
Options shall not be used to incrementally deliver work required to
fulfill the requirements of the scope of work for the base contract.
(c) Contracting officers shall justify in writing the use of
options.
(d) Including an option may be in the Government's interest when,
in the judgment of the contracting officer:
(1) Additional work beyond the base contract is reasonably
foreseeable;
(2) It would not be advantageous to award a separate contract;
(3) It would not be advantageous to permit an additional contractor
to work on the same site;
(4) Services arising out of or relating to the underlying
construction contract may be required during or after substantial
completion of the scope of work. For instance, if building equipment
(e.g., mechanical and electrical equipment) will be installed under the
construction contract, it may be advantageous to have the construction
contractor maintain and service the equipment. In such an instance, the
services performed may be included as an option to the underlying
construction contract. Contracting officers shall ensure that the
applicable clauses are included in any such option (e.g., Service
Contract Act); or
(5) It is otherwise justified.
(e) Options for construction work may provide for an economic price
adjustment based on cost or price indexes of labor or materials (see
FAR 16.203-4(d)). Subject to the approval of the Head of the
Contracting Activity (HCA), the contracting officer may develop and
insert a project-specific price adjustment clause into the
solicitation.
536.270-2 Solicitations.
Solicitations containing options shall:
(a) Include appropriate option provisions and clauses when
resulting contracts will provide for the exercise of options (see
536.270-5);
(b) State the period within which the options may be exercised; and
(c) State whether the basis of evaluation is inclusive or exclusive
of the options (if exclusive, see 536.270-4(c)).
536.270-3 Evaluation.
For sealed bidding that includes options:
(a) The low bidder for purposes of award is the responsible bidder
offering the lowest aggregate price for the base bid and all options
designated to be evaluated.
(b) Before opening bids that include options, the contracting
officer must determine, and record in the contract file, the amount of
funds available for the project. The amount recorded must be announced
at the beginning of the bid opening. This amount may be increased later
when determining the items to be awarded to the low bidder if the
following condition is met: The award amount of the base bid and
evaluated options does not exceed the amount offered for the base bid,
the evaluated options, and the same combination of items by any other
responsible bidder whose bid conforms to the solicitation. This
requirement prevents the displacement of the low bidder by manipulating
the options to be used.
536.270-4 Exercise of options.
(a) The contracting officer shall exercise options in writing
within the time period specified in the contract.
(b) The contracting officer may exercise options only after
determining, in writing, that all the following conditions exist:
(1) Funds are available.
(2) The requirement covered by the option fulfills an existing
Government need.
(3) Exercising the option is the most advantageous method of
satisfying the Government's need, price and other factors considered.
(4) The contractor is not listed in the System for Award Management
Exclusions (see FAR 9.405-1).
[[Page 3718]]
(5) The contractor's performance under the contract met or exceeded
the Government's expectation for quality performance, unless another
circumstance justifies an extended contractual relationship.
(6) Exercising the option is in accordance with the terms of the
option.
(7) The option price is fair and reasonable, unless already
determined as such (e.g., at time of award).
(c) The contract modification, or other written document which
notifies the contractor of the exercise of the option, must cite the
option clause as authority. If exercising an unpriced or unevaluated
option, cite the statutory authority permitting the use of other than
full and open competition (see FAR 6.302).
(d) When the contract provides for economic price adjustment and
the contractor requests a revision of the price, the contracting
officer shall determine the effect of the adjustment on prices under
the option before the option is exercised.
536.270-5 Solicitation provisions and contract clauses.
(a) Insert a provision substantially the same as the provision at
552.236-74, Evaluation of Options, in solicitations for fixed-price
construction contracts when the solicitation contains an option clause
and options will be included in the evaluation for award purposes.
(b) Insert a provision substantially the same as the provision at
552.236-75, Evaluation Exclusive of Options, in solicitations for
fixed-price construction contracts when the solicitation includes an
option clause and options will not be included in the evaluation for
award purposes.
(c) Insert a provision substantially the same as the provision at
552.236-76, Basis of Award-Sealed Bidding Construction, in
solicitations for fixed-price construction contracts when contracting
by sealed bidding. Use the provision with its Alternate I when the
solicitation contains an option clause.
(d) Insert a clause substantially the same as the clause at
552.236-77, Government's Right to Exercise Options, in solicitations
and contracts for construction that include options.
Subpart 536.5--Contract Clauses
Sec.
536.506 Superintendence by the contractor.
536.511 Use and possession prior to completion.
536.515 Schedules for construction contracts.
536.521 Specifications and drawings for construction.
536.570 Authorities and limitations.
536.571 Contractor responsibilities.
536.572 Submittals.
536.573 Subcontracts.
536.506 Superintendence by the contractor.
Insert the clause at 552.236-6, Superintendence by the Contractor,
in solicitations and contracts if construction, dismantling,
demolition, or removal of improvements is contemplated.
536.511 Use and possession prior to completion.
Insert the clause at 552.236-11, Use and Possession Prior to
Completion, in solicitations and contracts if construction,
dismantling, demolition, or removal of improvements is contemplated.
536.515 Schedules for construction contracts.
Insert the clause at 552.236-15, Schedules for Construction
Contracts, in solicitations and contracts if construction, dismantling,
demolition, or removal of improvements is contemplated. Use the
clause--
(a) With its Alternate I when the contract amount is expected to be
above the simplified acquisition threshold and a design-bid-build
project delivery method will be followed; or
(b) With its Alternate II when the contract amount is expected to
be above the simplified acquisition threshold and a design-build
project delivery method will be followed.
536.521 Specifications and drawings for construction.
Insert the clause at 552.236-21, Specifications and Drawings for
Construction, in solicitations and contracts if construction,
dismantling, demolition, or removal of improvements is contemplated.
Use the clause with its Alternate I when a design-build project
delivery method will be followed.
536.570 Authorities and limitations.
Insert the clause at 552.236-70, Authorities and Limitations, in
solicitations and contracts if construction, dismantling, demolition,
or removal of improvements is contemplated.
536.571 Contractor responsibilities.
Insert the clause at 552.236-71, Contractor Responsibilities, in
solicitations and contracts if construction, dismantling, demolition,
or removal of improvements is contemplated. Use the clause with its
Alternate I when a design-build project delivery method will be
followed.
536.572 Submittals.
Insert the clause at 552.236-72, Submittals, in solicitations and
contracts if construction, dismantling, demolition, or removal of
improvements is contemplated. Use the clause with its Alternate I when
a design-build project delivery method will be followed.
536.573 Subcontracts.
Insert the clause at 552.236-73, Subcontracts, in solicitations and
contracts if construction, dismantling, demolition, or removal of
improvements is contemplated.
PART 543--CONTRACT MODIFICATIONS
0
12. The authority citation for 48 CFR part 543 is revised to read as
follows:
Authority: 40 U.S.C. 121(c).
0
13. Revise section 543.205 to read as follows:
543.205 Contract clauses.
The contracting officer shall insert 552.243-71, Equitable
Adjustments, in solicitations and contracts containing FAR 52.243-4,
Changes, FAR 52.243-5, Changes and Changed Conditions, or FAR 52.236-2,
Differing Site Conditions.
PART 546--QUALITY ASSURANCE
0
14. The authority citation for 48 CFR part 546 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
0
15. Add section 546.704 to read as follows:
546.704 Authority for use of warranties.
FAR clause 52.246-21, Warranty of Construction, is approved by the
agency for use in solicitations and contracts when a fixed-price
construction contract is contemplated.
PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
16. The authority citation for 48 CFR part 552 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
0
17. Add sections 552.211-10, 552.211-12, 552.211-13 and 552.211-70 to
read as follows:
552.211-10 Commencement, Prosecution, and Completion of Work.
As prescribed in 511.404, insert the following clause:
[[Page 3719]]
Commencement, Prosecution, and Completion of Work (Mar 2019)
FAR 52.211-10, Commencement, Prosecution, and Completion of
Work, is supplemented as follows:
(a) The Contractor shall not commence work until the Contracting
Officer issues a notice to proceed.
(b) Notwithstanding paragraph (a) of this clause, the Contractor
must submit any required safety plans before commencing any
construction work.
(c) The Contractor shall diligently prosecute the work so as to
achieve substantial completion of the work within the time specified
in the contract. If the contract specifies different completion
dates for different phases or portions of the work, the Contractor
shall diligently prosecute the work so as to achieve substantial
completion of such phases or portions of the work within the times
specified.
(End of clause)
552.211-12 Liquidated Damages-Construction.
As prescribed in 511.504, insert the following clause:
Liquidated Damages (Mar 2019)
FAR 52.211-12, Liquidated Damages-Construction, is supplemented
as follows:
(a) If the Contractor fails to achieve substantial completion of
the work within the time specified in the contract, the Contractor
shall be liable to the Government for liquidated damages at the rate
specified for each calendar day following the required completion
date that the work is not substantially complete.
(b) If the contract requires different completion dates for
different phases or portions of the work, the Contractor shall be
liable for liquidated damages at the specified rate for each
calendar day following the required completion date that the phase
or portion of work is not substantially complete. If a single rate
is specified, the specified rate shall be apportioned between the
different phases or portions of the work.
(c) If the Government elects to accept any portion of the work
not specifically designated as a phase or portion of work with its
own required completion date, the liquidated damage rate shall be
apportioned between accepted work and uncompleted work, and the
Contractor's liability for liquidated damages shall be computed
accordingly.
(End of clause)
552.211-13 Time Extensions.
As prescribed in 511.504, insert the following clause:
Time Extensions (Mar 2019)
FAR 52.211-13, Time Extensions, is supplemented as follows:
(a) If the Contractor requests an extension of the time for
substantial completion, the Contractor shall base its request on an
analysis of time impact using the project schedule as its baseline,
and shall propose as a new substantial completion date to account
for the impact. The Contractor shall submit a written request to the
Contracting Officer setting forth facts and analysis in sufficient
detail to enable the Contracting Officer to evaluate the
Contractor's entitlement to an extension of time.
(b) The Contractor shall only be entitled to an extension of
time to the extent that--
(1) Substantial completion of the work is delayed by causes for
which the Contractor is not responsible under this contract; and
(2) The actual or projected substantial completion date is later
than the date required by this contract for substantial completion.
(c) The Contractor shall not be entitled to an extension of time
if the Contractor has not updated the project schedule in accordance
with the contract.
(d) The Government shall not be liable for any costs to mitigate
time impacts incurred by the Contractor that occur less than 30
calendar days after the date the Contractor submits a request for
extension of time in compliance with this clause.
(End of clause)
552.211-70 Substantial Completion.
As prescribed in 511.404, insert the following clause:
Substantial Completion (Mar 2019)
(a) General. (1) For the purposes of FAR 52.211-10,
Commencement, Prosecution and Completion of Work, and FAR 52.211-12,
Liquidated Damages-Construction, the work shall be deemed complete
when it is ``substantially complete.''
(2) There may be different completion dates required for
different phases or portions of the work, as established in the
contract. However, the work shall be deemed ``substantially
complete'' if and only if the Contractor has completed the work and
related contract obligations in accordance with the contract
documents, such that the Government may enjoy the intended access,
occupancy, possession, and use of the entire work without impairment
due to incomplete or deficient work, and without interference from
the Contractor's completion of remaining work or correction of
deficiencies in completed work.
(3) In no event shall the work be deemed ``substantially
complete'' if all fire and life safety systems are not tested and
accepted by the authority having jurisdiction, where such acceptance
is required under the contract.
(4) Unless otherwise specifically noted, or otherwise clear from
context, all references in the contract to ``acceptance'' shall
refer to issuance of a written determination of substantial
completion by the Contracting Officer.
(b) Notice of Substantial Completion. (1) With reasonable
advance notice, the Contractor shall submit to the Contracting
Officer a written proposal recommending a substantial completion
date.
(2) If the Contracting Officer takes exception to the notice of
substantial completion, the Contractor shall be entitled to a
written notice of conditions precluding determination of substantial
completion. The Contractor shall only be entitled to an extension of
time to address such conditions if, and to the extent that, the
Contracting Officer provides notice of such conditions more than 30
calendar days after receipt of the notice of substantial completion.
(c) Acceptance of Substantial Completion. (1) The Contracting
Officer shall conduct inspections and make a determination of
substantial completion within a reasonable time.
(2) Substantial Completion shall be established by the
Contracting Officer's issuance of a written determination specifying
the date upon which the work is substantially complete.
(d) Contract Completion. (1) The Contract is complete if and
only if the Contractor has completed all work and related contract
obligations, corrected all deficiencies and all punch list items,
and complied with all conditions for final payment.
(2) The Contractor shall not be entitled to final payment or
release of any retainage held by the Government until after contract
completion. If the Contractor does not achieve contract completion
within the time required by this contract, the Government shall be
entitled, after providing notice to the Contractor, to complete any
work remaining unfinished. The Contractor shall be liable to the
Government for all costs incurred by the Government to complete such
work.
(End of clause)
0
18. Add section 552.232-5 to read as follows:
552.232-5 Payments under Fixed-Price Construction Contracts.
As prescribed in 532.111, insert the following clause:
Payments Under Fixed-Price Construction Contracts (Mar 2019)
FAR 52.232-5, Payments under Fixed-Price Construction Contracts,
is supplemented as follows:
(a) Before submitting a request for payment, the Contractor
shall, unless directed otherwise by the Contracting Officer, attend
pre-invoice payment meetings, as scheduled, with the designated
Government representative for the purpose of facilitating review and
approval of payment requests. Payment meetings will be conducted and
may be in person. The Contractor shall provide documentation to
support the prospective payment request.
(b) The Contractor shall submit its invoices to the Contracting
Officer, unless directed otherwise by the Contracting Officer.
Separate payment requests shall be submitted for progress payments,
payments of retainage, and partial or final payments.
(c) The Contractor shall use GSA Form 2419 Certification of
Progress Payments Under Fixed-Price Construction Contracts to
provide the certification required under FAR 52.232-5(c).
(d) The Contractor shall use GSA Form 1142 Release of Claims to
provide the certification required under FAR 52.232-5(h).
(e) If an invoice does not meet the requirements of FAR 52.232-
27 and GSAM
[[Page 3720]]
552.232-27, the Contracting Officer may return the invoice to the
Contractor without payment for correction. If the Contracting
Officer disputes the requested payment amount, the Government may
pay the portion of the requested payment that is undisputed.
(f) GSA will not be obligated to issue final payment unless the
Contractor has furnished to the Contracting Officer a release of
claims against the Government relating to the contract, and
submitted all required product warranties, as-built drawings,
operating manuals, and other items as specified in the contract. The
Contractor may reserve from the release specific claims only if such
claims are explicitly identified with stated claim amounts.
(End of clause)
0
19. Add sections 552.236-6, 552.236-11, 552.236-15, and 552.236-21 to
read as follows:
552.236-6 Superintendence by the Contractor.
As prescribed in 536.506, insert the following clause:
Superintendence by the Contractor (Mar 2019)
The requirements of the clause entitled ``Superintendence by the
Contractor'' at FAR 52.236-6, are supplemented as follows:
(a) The Contractor shall employ sufficient management and
contract administration resources, including personnel responsible
for project management, field superintendence, change order
administration, estimating, coordination, inspection, and quality
control, to ensure the proper execution and timely completion of the
contract. The Contractor shall designate a principal of the firm or
other senior management official to provide executive oversight and
problem resolution resources to the project for the life of the
contract.
(b) The Contractor shall employ, and require its subcontractors
to employ, qualified personnel to perform the contract. The
Government reserves the right to exclude, or remove from the site or
building, any personnel for reasons of incompetence, carelessness,
or insubordination, who violate rules and regulations concerning
conduct on federal property, or whose continued employment on the
site is otherwise deemed by the Government to be contrary to the
public interest.
(c) The Contractor shall be responsible for coordinating all
activities of subcontractors, including all of the following
activities:
(1) Preparation of shop drawings produced by different
subcontractors where their work interfaces or may potentially
conflict or interfere.
(2) Scheduling of work by subcontractors.
(3) Installation of work by subcontractors.
(4) Use of the project site for staging and logistics.
(d) Repeated failure or excessive delay to meet the
superintendence requirements by the Contractor may be deemed a
default for the purposes of the termination for default clause.
(End of clause)
552.236-11 Use and Possession Prior to Completion.
As prescribed in 536.511, insert the following clause:
Use and Possession Prior to Completion (Mar 2019)
Exercise by the Government of the right conferred by FAR 52.236-
11 shall not relieve the Contractor of responsibility for completing
any unfinished components of the work.
(End of clause)
552.236-15 Schedules for Construction Contracts.
As prescribed in 536.515, insert the following clause:
Schedules for Construction Contracts (Mar 2019)
The requirements, of the clause entitled ``Schedules for
Construction Contracts'' at FAR 52.236-15, are supplemented as
follows:
(a) Purpose. The project schedule shall be a rational,
reasonable, and realistic plan for completing the work, and conform
to the requirements specified in this clause and elsewhere in the
contract. The Contractor understands and acknowledges that the
preparation and proper management of the project schedule is a
material component of the contract.
(b) Use of the schedule. The Contracting Officer shall be
entitled, but not required, to rely upon the project schedule to
evaluate the Contractor's progress, evaluate entitlement to
extensions of time, and determine the criticality or float of any
activities described in such project schedule.
(c) Submission. Prior to notice to proceed, or such other time
as may be specified in the contract, the Contractor shall submit the
project schedule.
(d) Milestones. The project schedule shall incorporate milestone
events specified in the contract, including, as applicable, notice
to proceed, substantial completion, and milestones related to
specified work phases and site restrictions. The project schedule
shall also include Contractor-defined milestones to identify target
dates for critical events, based upon the Contractor's chosen
sequence of work.
(e) Activities. The project schedule shall depict all major
activities necessary to complete the work.
(f) Schedule of values. (1) The Contractor shall prepare and
submit for approval a cost breakdown of the Contract price, to be
referred to as the ``schedule of values'', assigning values to each
major activity necessary to complete the work.
(2) Values must include all direct and indirect costs, although
a separate value for bond costs may be established.
(3) The schedule of values must contain sufficient detail to
enable the Contracting Officer to evaluate applications for payment.
(g) Conflicting terms. (1) If at any time the Contracting
Officer finds that the project schedule does not comply with any
contract requirement, the Contracting Officer will provide written
notice to the Contractor.
(2) Within 30 calendar days of written notice, or such other
time as may be specified, from the Contracting Officer, the
Contractor shall take one of the following actions:
(i) Revise the project schedule.
(ii) Adjust activity progress.
(iii) Provide sufficient information demonstrating compliance.
(3) If the Contractor fails to sufficiently address the
Contracting Officer's exceptions to the project schedule, the
Contracting Officer may--
(i) Withhold retainage until the project is substantially
complete or until such time as the Contractor has complied with
project schedule requirements; or
(ii) Terminate the contract for default.
(h) Revisions to the schedule. If the Contractor revises the
project schedule after initial approved submission, the Contractor
shall provide in writing a narrative describing the substance of the
revision, the rationale for the revision, and the impact of the
revision on the projected substantial completion date and the
available float for all activities. The addition of detail to
prospective activities shall not be deemed a revision if the overall
duration of the detailed activity does not change.
(i) Updates. Unless a different period for updates is specified
elsewhere, the Contractor shall update the project schedule weekly
to reflect actual progress in completing the work, and submit the
updated project schedule by the following Monday.
(End of clause)
Alternate I (Mar 2019). As prescribed in 536.515(a), substitute the
following paragraphs (c), (e), (h), and (i) for paragraphs (c), (e),
(h), and (i) of the basic clause:
(c) Submission. Within 30 calendar days of notice to proceed, or
such other time as may be specified in the contract, the Contractor
shall submit the project schedule, together with a written narrative
describing the major work activities, activities on the critical
path, and major constraints underlying the sequence and logic of the
project schedule.
(e) Activities. (1) The Contractor shall use a critical path
method project schedule to plan, coordinate, and perform the work.
(2) The project schedule shall depict all activities necessary
to complete the work, including, as applicable, all submittal and
submittal review activities, all procurement activities, and all
field activities, including mobilization, construction, start-up,
testing, balancing, commissioning, and punchlist.
(3) Activities shall be sufficiently detailed and limited in
duration to enable proper planning and coordination of the work,
effective evaluation of the reasonableness and realism of the
project schedule, accurate monitoring of progress, and reliable
analysis of schedule impacts.
(4) Activity durations shall be based upon reasonable and
realistic allocation of the resources required to complete each
activity, given physical and logistical constraints on the
performance of the work. All logic shall validly reflect physical or
logistical constraints on relationships between
[[Page 3721]]
activities. Except for the first and last activities in the project
schedule, each activity shall have at least one predecessor and one
successor relationship to form a logically connected network plan
from notice to proceed to the contract completion date.
(h) Revisions to the schedule. (1) The Contractor should
anticipate that the initial submittal of the project schedule will
be subject to review and may require revision. The Contractor shall
devote sufficient resources for meetings, revisions, and
resubmissions of the project schedule to address any exceptions
taken to the initial submittal. The Contractor understands and
acknowledges that the purpose of the initial review and resolution
of exceptions is to maximize the usefulness of the project schedule
for contract performance.
(2) If the Contractor revises the project schedule after initial
approved submission, the Contractor shall provide in writing a
narrative describing the substance of the revision, the rationale
for the revision, and the impact of the revision on the projected
substantial completion date and the available float for all
activities. The addition of detail to prospective activities shall
not be deemed a revision if the overall duration of the detailed
activity does not change.
(i) Updates. Unless a different period for updates is specified
elsewhere, the Contractor shall update the project schedule monthly
to reflect actual progress in completing the work, and submit the
updated project schedule within 5 working days of the end of each
month.
Alternate II (Mar 2019). As prescribed in 536-515(b), substitute
the following paragraphs (c), (e), and (i) for paragraphs (c), (e), and
(i) of the basic clause:
(c) Submission. (1) Within 30 calendar days of notice to
proceed, or such other time as may be specified in the contract, the
Contractor shall submit the project schedule, together with a
written narrative describing the major design and construction
activities. The project schedule may indicate construction
activities in summary form prior to completion of final design
documents.
(2) Within 30 calendar days of completion of final design
documents, the Contractor shall submit a revised project schedule
depicting all activities necessary to complete construction work
activities, together with a written narrative describing the major
work activities, activities on the critical path, and major
constraints underlying the sequence and logic of the project
schedule.
(e) Activities. (1) The Contractor shall use a critical path
method project schedule to plan, coordinate, and perform the work.
(2) Activities shall be sufficiently detailed and limited in
duration to enable proper planning and coordination of the work,
effective evaluation of the reasonableness and realism of the
project schedule, accurate monitoring of progress, and reliable
analysis of schedule impacts.
(3) Activity durations shall be based upon reasonable and
realistic allocation of the resources required to complete each
activity, given physical and logistical constraints on the
performance of the work. All logic shall validly reflect physical or
logistical constraints on relationships between activities. Except
for the first and last activities in the project schedule, each
activity shall have at least one predecessor and one successor
relationship to form a logically connected network plan from notice
to proceed to the contract completion date.
(i) Updates. Unless a different period for updates is specified
elsewhere, the Contractor shall update the project schedule monthly
to reflect actual progress in completing the work, and submit the
updated project schedule within 5 working days of the end of each
month.
552.236-21 Specifications and Drawings for Construction.
As prescribed in 536.521, insert the following clause:
Specifications and Drawings for Construction (Mar 2019)
The requirements of the clause entitled ``Specifications and
Drawings for Construction'' at FAR 52.236-21, are supplemented as
follows:
(a) In case of difference between small and large-scale
drawings, the large-scale drawings shall govern.
(b) Schedules on any contract drawing shall take precedence over
conflicting information on that or any other contract drawing.
(c) On any of the drawings where a portion of the work is
detailed or drawn out and the remainder is shown in outline, the
parts detailed or drawn out shall apply also to all other like
portions of the work.
(d) Where the word ``similar'' occurs on the drawings, it shall
have a general meaning and not be interpreted as being identical,
and all details shall be worked out in relation to their location
and their connection with other parts of the work.
(e) Standard details or specification drawings are applicable
when listed, bound with the specifications, noted on the drawings,
or referenced elsewhere in the specifications.
(1) Where notes on the specification drawings indicate
alterations, such alterations shall govern.
(2) In case of difference between standard details or
specification drawings and the specifications, the specifications
shall govern.
(3) In case of difference between the standard details or
specification drawings and the drawings prepared specifically for
this contract, the drawings prepared specifically for this contract
shall govern.
(f) Different requirements within the contract documents shall
be deemed inconsistent only if compliance with both cannot be
achieved.
(g) Unless otherwise noted, the drawings shall be interpreted to
provide for a complete construction, assembly, or installation of
the work, without regard to the detail with which material
components are shown in the drawings.
(End of clause)
Alternate I (Mar 2019). As prescribed in 536.521, add the following
paragraph to the basic clause:
(h) For the purposes of this clause, specifications and drawings
refer only to those included among the contract documents, and not
to those produced by the Contractor pursuant to its responsibilities
under the contract.
552.236-70 [Removed]
0
20. Remove section 552.236-70.
552.236-71 [Redesignated as 552.236-70 and Amended]
0
21. Redesignate section 552.236-71 as section 552.236-70 and revise
newly redesignated section 552.236-70 to read as follows:
552.236-70 Authorities and Limitations.
As prescribed in 536.570, insert the following clause:
Authorities and Limitations (Mar 2019)
(a) All work shall be performed under the general direction of
the Contracting Officer. The Contracting Officer alone shall have
the power to bind the Government and to exercise the rights,
responsibilities, authorities and functions vested in him by the
contract documents. The Contracting Officer may designate
contracting officer's representatives (CORs) to act for him.
Wherever any provision in this contract specifies an individual
(such as, but not limited to, Construction Engineer, Resident
Engineer, Inspector or Custodian) or organization, whether
Governmental or private, to perform any act on behalf of or in the
interests of the Government, that individual or organization shall
be deemed to be the COR under this contract but only to the extent
so specified. The Contracting Officer may, at any time during the
performance of this contract, vest in any such COR additional power
and authority to act for him or designate additional CORs,
specifying the extent of their authority to act for him. A copy of
each document vesting additional authority in a COR or designating
an additional COR shall be furnished to the Contractor.
(b) The Contractor shall perform the contract in accordance with
any order (including but not limited to instruction, direction,
interpretation, or determination) issued by a COR in accordance with
his authority to act for the Contracting Officer; but the Contractor
assumes all the risk and consequences of performing the contract in
accordance with any order (including but not limited to instruction,
direction, interpretation, or determination) of anyone not
authorized to issue such order.
(c) If the Contractor receives written notice from the
Contracting Officer of non-compliance with any requirement of this
contract, the Contractor must initiate action as may be appropriate
to comply with the specified requirement as defined in the notice.
In the event the Contractor fails to initiate such action within a
reasonable period of time as defined in the notice, the Contracting
Officer shall have the right to order the Contractor to stop any or
all work under the contract until the Contractor has complied or has
initiated such action as may
[[Page 3722]]
be appropriate to comply within a reasonable period of time. The
Contractor will not be entitled to any extension of contract time or
payment for any costs incurred as a result of being ordered to stop
work for such cause.
(End of clause)
0
22. Add new section 552.236-71 to read as follows:
552.236-71 Contractor Responsibilities.
As prescribed in 536.571, insert the following clause:
Contractor Responsibilities (Mar 2019)
(a) The Contractor shall be responsible for compliance with
applicable codes, standards and regulations pertaining to the health
and safety of personnel during performance of the contract.
(b) Unless expressly stated otherwise in the contract, the
Contractor shall be responsible for all means and methods employed
in the performance of the contract.
(c) The Contractor shall immediately bring to the Contracting
Officer's attention any hazardous materials or conditions not
disclosed in the contract documents discovered by or made known to
the Contractor during the performance of the contract.
(d) The Contractor shall be responsible for providing
professional design services in connection with performance of the
work or portions of the work only if this responsibility is
expressly stated in the contract, and the contract documents provide
the performance and design criteria that such services will be
required to satisfy. In the performance of such work, the Contractor
shall be responsible for retaining licensed design professionals,
who shall sign and seal all drawings, calculations, specifications
and other submittals that the licensed professional prepares. The
Contractor shall be responsible for, and GSA shall be entitled to
rely upon, the adequacy and completeness of all professional design
services provided under the contract.
(e) Where installation of separate work components as shown in
the contract will result in conflict or interference between such
components or with existing conditions, including allowable
tolerances, it is the Contractor's responsibility to bring such
conflict or interference to the attention of the Contracting Officer
and seek direction before fabrication, construction, or installation
of any affected work. If the Contractor fabricates, constructs, or
installs any work prior to receiving such direction, the Contractor
shall be responsible for all cost and time incurred to resolve or
mitigate such conflict or interference.
(f) Where drawings show work without specific routing,
dimensions, locations, or position relative to other work or
existing conditions, and such information is not specifically
defined by reference to specifications or other information supplied
in the contract, the Contractor is responsible for routing,
dimensioning, and locating such work in coordination with other work
or existing conditions in a manner consistent with contract
requirements.
(g) It is not the Contractor's responsibility to ensure that the
contract documents comply with applicable laws, statutes, building
codes and regulations. If it comes to the attention of the
Contractor that any of the contract documents do not comply with
such requirements, the Contractor shall promptly notify the
Contracting Officer in writing. If the Contractor performs any of
the work prior to notifying and receiving direction from the
Contracting Officer, the Contractor shall assume full responsibility
for correction of such work, and any fees or penalties that may be
assessed for non-compliance.
(End of clause)
Alternate I (Mar 2019). As prescribed in 536.571, delete paragraphs
(d), (e), (f), and (g) of the basic clause, and insert paragraphs (d),
(e), (f), and (g) as follows:
(d) The Contractor shall be responsible for providing
professional design services unless this responsibility is expressly
excluded from the contract. In the performance of such work, the
Contractor shall be responsible for retaining licensed design
professionals, who shall sign and seal all drawings, calculations,
specifications and other submittals that the licensed professional
prepares. The Contractor shall be responsible for, and GSA shall be
entitled to rely upon, the adequacy and completeness of all
professional design services provided under the contract.
(e) The Contractor's responsibilities include the
responsibilities of the Architect-Engineer Contractor, as specified
in FAR 52.236-23.
(f) The Contractor shall include in all subcontracts that
require professional design services express terms establishing GSA
as a third party beneficiary. No other person shall be deemed a
third party beneficiary of the contract.
(g) The Contractor shall determine whether the information
contained in the contract documents complies with applicable laws,
statutes, building codes and regulations. If it comes to the
attention of the Contractor that any of the contract documents do
not comply with such requirements, the Contractor shall promptly
notify the Contracting Officer in writing. If the Contractor
performs any of the work prior to notifying and receiving direction
from the Contracting Officer, the Contractor shall assume full
responsibility for correction of such work, and any fees or
penalties that may be assessed for non-compliance.
0
23. Add section 552.236-72 to read as follows:
552.236-72 Submittals.
As prescribed in 536.572, insert the following clause:
Submittals (Mar 2019)
(a) The Contractor shall prepare and submit all submittals as
specified in the contract or requested by the Contracting Officer.
(1) Submittals may include: safety plans, schedules, shop
drawings, coordination drawings, samples, calculations, product
information, or mockups.
(2) Shop drawings may include fabrication, erection and setting
drawings, manufacturers' scale drawings, wiring and control
diagrams, cuts or entire catalogs, pamphlets, descriptive
literature, and performance and test data.
(b) Unless otherwise provided in this contract, or otherwise
directed by the Contracting Officer, submittals shall be submitted
to the Contracting Officer.
(c) The Contractor shall be entitled to receive notice of action
on submittals within a reasonable time, given the volume or
complexity of the submittals and the criticality of the affected
activities to substantial completion as may be indicated in the
project schedule.
(d) Review of submittals will be general and shall not be
construed as permitting any departure from the contract
requirements.
(e) The Contractor shall not proceed with construction work or
procure products or materials described or shown in submittals until
the submittal is reviewed. Any work or activity undertaken prior to
review shall be at the Contractor's risk. Should the Contracting
Officer subsequently determine that the work or activity does not
comply with the contract, the Contractor shall be responsible for
all cost and time required to comply with the Contracting Officer's
determination. The Contracting Officer shall have the right to order
the Contractor to cease execution of work for which submittals have
not been reviewed. The Government shall not be liable for any cost
or delay incurred by the Contractor attributable to the proper
exercise of this right.
(f) The Contractor shall identify, in writing, all deviations or
changes in resubmitted submittals. In the absence of such written
notice, review of a resubmission shall not include or apply to such
deviations or changes.
(End of clause)
Alternate I (Mar 2019) As prescribed in 536.572, add the following
paragraph to the basic clause:
(g) The Contractor shall submit design documents for review in
accordance with PBS-P100. The Government shall review submittals for
the limited purpose of verifying that the documents conform to the
design criteria expressed in the contract documents.
552.236-73 through 552.236-81 [Removed]
0
24. Remove sections 552.236-73 through 552.236-81.
552.236-82 [Redesignated as 552.236-73 and Amended]
0
25. Redesignate section 552.236-82 as section 552.236-73 and revise the
introductory text of newly redesignated section 552.236-73 to read as
follows:
552.236-73 Subcontracts.
As prescribed in 536.573, insert the following clause:
* * * * *
0
26. Add new sections 552.236-74 through 552.236-77 to read as follows:
[[Page 3723]]
552.236-74 Evaluation of Options.
As prescribed in 536.270-5(a), insert the following provision:
Evaluation of Options (Mar 2019)
The Government will evaluate offers for award purposes by adding
the total price for all options to the total price for the basic
requirement. Evaluation of options will not obligate the Government
to exercise the option(s).
(End of provision)
552.236-75 Evaluation Exclusive of Options.
As prescribed in 536.270-5(b), insert the following provision:
Evaluation Exclusive of Options (Mar 2019)
The Government will evaluate offers for award purposes by
including only the price for the basic requirement. Options will not
be included in the evaluation for award purposes.
(End of provision)
552.236-76 Basis of Award--Sealed Bidding Construction
As prescribed in 536.270-5(c), insert the following provision:
Basis of Award--Sealed Bidding Construction (Mar 2019)
A bid may be rejected as nonresponsive if the bid is materially
unbalanced as to bid prices. A bid is unbalanced when the bid is
based on prices significantly less than cost for some work and
significantly overstated for other work.
(End of provision)
Alternate I (Mar 2019). As prescribed in 536.270-5(c), designate
the basic provision as paragraph (a) and add the following paragraph to
the basic provision:
(b)(1) The low bidder for purposes of award is the responsible
bidder offering the lowest aggregate price for:
(i) The base requirement; plus
(ii) All options designated to be evaluated.
(2) The evaluation of options will not obligate the Government
to exercise the options.
552.236-77 Government's Right to Exercise Options.
As prescribed in 536.270-5(d), insert the following clause:
Government's Right to Exercise Options (Mar 2019)
(a) The Government may exercise any option in writing in
accordance with the terms and conditions of the contract within ___
[insert the period of time within which the Contracting Officer may
exercise the option]. Unless otherwise specified, options may be
exercised within 90 calendar days of contract award.
(b) If the Government exercises the option, the contract shall
be considered to include this option clause.
(End of clause)
0
27. Amend section 552.243-71 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a) ``FAR 52.243-4,'' and adding ``FAR
52.243-4, the ``Changes and Changed Conditions'' clause prescribed by
FAR 52.243-5,'' in its place; and
0
c. Revising paragraph (c).
The revisions read as follows:
552.243-71 Equitable Adjustments.
* * * * *
Equitable Adjustments (Mar 2019)
* * * * *
(c) The proposal shall be submitted within the time specified in
the ``Changes'', ``Changes and Changed Conditions'', or ``Differing
Site Conditions'' clause, as applicable, or such other time as may
reasonably be required by the Contracting Officer.
* * * * *
[FR Doc. 2019-01565 Filed 2-12-19; 8:45 am]
BILLING CODE 6820-61-P